Use fuel tax: dimethyl ether: fuel blend.

(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.