AB 2663 — Use fuel tax: dimethyl ether: fuel blend.

Summary

(1) Existing law requires the Department of Food and Agriculture to establish specifications for automotive spark-ignition engine fuels, as prescribed. Existing law requires the antiknock index for gasoline and gasoline-oxygenate blends to not be less than 87. Existing law makes a violation of the provisions relating to weights and measures, including fuels and lubricants, a crime. This bill would define "dimethyl ether-propane fuel blend" and require dimethyl ether-propane fuel blends for use as motor vehicle fuel to meet the latest specifications set forth by the ASTM International, and, if no specifications exist, the bill would require the Secretary of Food and Agriculture to establish interim specifications by regulation. The bill would additionally require the antiknock index for dimethyl ether-propane fuels blends to not be less than 87. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program. (2) Existing law requires, with certain specified exceptions, every person offering for sale or selling any motor fuel to the public from any place of business to display, as prescribed, on the premises the total prices of the three major grades of motor vehicle fuel offered for sale. This bill would exempt a dimethyl ether-propane fuel blend, as defined, from these requirements. (3) The Use Fuel Tax Law imposes a state excise tax at specified rates, generally $0.18 per gallon, on the use of fuel, as defined. The Use Fuel Tax imposes a state excise tax upon liquefied petroleum gas at the rate of $0.06 per gallon. The Use Fuel Tax Law provides that the owner or operator, except an interstate user, of a vehicle propelled by a system using liquefied petroleum gas, liquid natural gas, or compressed natural gas may pay the fuel tax for the use of those fuels by paying an annual flat rate fuel tax according to a prescribed schedule. Existing law makes a violation of the Use Fuel Tax Law a crime. This bill would, on or after July 1, 2021, set the state excise tax under the Use Fuel Tax Law upon a dimethyl ether-liquefied petroleum gas fuel blend and upon dimethyl ether at the rate of $0.06 for each gallon used. Commencing July 1, 2021, the bill would add dimethyl ether and a dimethyl ether-liquefied petroleum gas fuel blend to the categories of fuels for which an owner or operator may pay an annual flat rate fuel tax in lieu of the per gallon fuel tax. The bill would exempt from excise taxes under the Use Fuel Tax Law the use of dimethyl ether and a dimethyl ether-liquefied petroleum gas fuel blend in a vehicle during any period of time for which the owner or operator of the vehicle has instead paid the applicable annual flat rate fuel tax. The bill would also provide that to the extent that an owner or operator has provided written representation to a fuel seller that the owner or operator has prepaid the annual flat rate fuel tax for dimethyl ether or for a dimethyl ether-liquefied petroleum gas fuel blend, the owner or operator shall be solely responsible for paying the applicable fuel taxes under the Use Fuel Tax Law, and the fuel seller shall not be liable for collecting and remitting those taxes. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 09/24/20 - Chaptered Current pdf September 24, 2020
• Enrolled 09/01/20 - Enrolled pdf September 01, 2020
• Amended 07/30/20 - Amended Senate pdf July 30, 2020
• Amended 06/04/20 - Amended Assembly pdf June 04, 2020
• Amended 05/05/20 - Amended Assembly pdf May 05, 2020
• Introduced 02/20/20 - Introduced pdf February 20, 2020
• AB2663 View text html

Action History

1. September 24, 2020

   Chaptered by Secretary of State - Chapter 117, Statutes of 2020.

2. September 24, 2020

   Approved by the Governor.

3. September 11, 2020

   Enrolled and presented to the Governor at 3 p.m.

4. August 30, 2020

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 5315.).

5. August 28, 2020

   In Assembly. Concurrence in Senate amendments pending.

6. August 28, 2020

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 4383.).

7. August 25, 2020

   Ordered to special consent calendar.

8. August 20, 2020

   Read second time. Ordered to third reading.

9. August 20, 2020

   From committee: Do pass. (Ayes 7. Noes 0.) (August 20).

10. August 13, 2020

    In committee: Referred to APPR. suspense file.

11. August 04, 2020

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (August 4). Re-referred to Com. on APPR.

12. July 30, 2020

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on TRANS.

13. July 01, 2020

    Referred to Com. on TRANS.

14. June 11, 2020

    In Senate. Read first time. To Com. on RLS. for assignment.

15. June 11, 2020

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4832.)

16. June 08, 2020

    Read second time. Ordered to third reading.

17. June 04, 2020

    Read second time and amended. Ordered returned to second reading.

18. June 03, 2020

    From committee: Amend, and do pass as amended. (Ayes 18. Noes 0.) (June 3).

19. June 02, 2020

    In committee: Set, first hearing. Referred to APPR. suspense file.

20. May 22, 2020

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 19. Noes 0.) (May 21). Re-referred to Com. on APPR.

21. May 06, 2020

    Re-referred to Com. on B. & P.

22. May 05, 2020

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

23. March 12, 2020

    Referred to Coms. on B. & P. and REV. & TAX.

24. February 21, 2020

    From printer. May be heard in committee March 22.

25. February 20, 2020

    Read first time. To print.

Sponsors

• Robert Garcia · Primary

Votes

Subjects