AB 1851: Vehicular air pollution: reduction incentives.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-04-13
(1)Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses.
The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles.
The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
This bill, as part for purposes of the Clean Vehicle Rebate Project, would require the state board board, until January 1, 2026, to provide specified rebate amounts for battery electric vehicles, fuel-cell vehicles, and plug-in hybrid electric vehicles; to limit rebates to vehicles with a manufacturers suggested retail price of $60,000 or less; vehicles and to implement a process to allow eligible applicants to obtain prompt preapproval from the state board prior to purchasing an eligible vehicle, as specified. The bill bill, until January 1, 2026, would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation under those provisions and would authorize moneys available for allocation to disadvantaged communities to be available, upon appropriation, for allocations under those provisions to low- and moderate-income residents of those communities.
This bill also would require the state board board, until January 1, 2026, to issue specified rebates up to the costs associated with the purchase and the installation of an electric vehicle charging station to a property owner or lessee, as specified. The bill would authorize authorize, until January 1, 2026, moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation for those rebates.
(2)Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state measured by sales price. The Sales and Use Tax Law defines the terms gross receipts and sales price.
This bill would exclude exclude, until January 1, 2026, from the terms gross receipts and sales price for these purposes the value of a motor vehicle traded in for a qualified motor vehicle, as defined, if the value of the trade-in motor vehicle is separately stated on the motor vehicle invoice or bill of sale or similar document provided by the purchaser. The bill would authorize authorize, until January 1, 2026, moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation to reimburse counties and cities for any revenue losses caused by those sales and use tax exemptions.
(3)Existing federal law, until September 30, 2017, authorizes a state to allow specified labeled vehicles to use lanes designated for high-occupancy vehicles (HOVs). Existing law authorizes the Department of Transportation to designate certain lanes for the exclusive use of HOVs. Under existing law, until January 1, 2019, until federal authorization expires, or until the Secretary of State receives a specified notice, those lanes may be used by certain vehicles not carrying the requisite number of passengers otherwise required for the use of an HOV lane if the vehicle displays a valid identifier issued by the Department of Motor Vehicles (DMV). Existing law authorizes the DMV to issue no more than 85,000 of those identifiers.
This bill would no longer limit the amount of identifiers issued by the DMV.
(1)Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses.
The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles.
The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
This bill, as part of the Clean Vehicle Rebate Project, would require the state board to provide specified rebate amounts for battery electric vehicles, fuel-cell vehicles, and plug-in hybrid electric vehicles; to limit rebates to vehicles with a manufacturers suggested retail price of $60,000 or less; and to implement a process to allow eligible applicants to obtain prompt preapproval from the state board prior to purchasing an eligible vehicle, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation under those provisions and would authorize moneys available for allocation to disadvantaged communities to be available, upon appropriation, for specified allocations. allocations under those provisions to residents of those communities.
This bill also would require the state board to issue specified rebates for up to the costs associated with the purchase and the installation of an electric vehicle charging station to a property owner or lessee, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation for those rebates.
(2)Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, state measured by sales price. The Sales and Use Tax Law defines the terms gross receipts and sales price.
This bill would exclude from the terms gross receipts and sales price for these purposes the value of a motor vehicle traded in for a qualified motor vehicle, as defined, if the value of the trade-in motor vehicle is separately stated on the motor vehicle invoice or bill of sale or similar document provided by the purchaser. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation to reimburse counties and cities for any revenue losses caused by those sales and use tax exemptions.
(3)Existing federal law, until September 30, 2017, authorizes a state to allow specified labeled vehicles to use lanes designated for high-occupancy vehicles (HOVs). Existing law authorizes the Department of Transportation to designate certain lanes for the exclusive use of HOVs. Under existing law, until January 1, 2019, until federal authorization expires, or until the Secretary of State receives a specified notice, those lanes may be used by certain vehicles not carrying the requisite number of passengers otherwise required for the use of an HOV lane if the vehicle displays a valid identifier issued by the Department of Motor Vehicles (DMV). Existing law authorizes the DMV to issue no more than 85,000 of those identifiers.
This bill would no longer limit the amount of identifiers issued by the DMV.
(1)Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses.
The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles.
The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
This bill, as part of the Clean Vehicle Rebate Project, would require the state board to provide specified rebate amounts for battery electric vehicles, fuel-cell vehicles, and plug-in hybrid electric vehicles; to limit rebates to vehicles with a manufacturers suggested retail price of $60,000 or less; and to implement a process to allow eligible applicants to obtain prompt preapproval from the state board prior to purchasing an eligible vehicle, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation under those provisions and would authorize moneys available for allocation to disadvantaged communities to be available, upon appropriation, for specified allocations.
This bill also would require the state board to issue specified rebates for the installation of an electric vehicle charging station to a property owner or lessee, as specified. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation for those rebates.
(2)Existing sales and use tax laws impose taxes on retailers measured by gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law defines the terms gross receipts and sales price.
This bill would exclude from the terms gross receipts and sales price for these purposes the value of a motor vehicle traded in for a qualified motor vehicle, as defined, if the value of the trade-in motor vehicle is separately stated on the motor vehicle invoice or bill of sale or similar document provided by the purchaser. The bill would authorize moneys from the Greenhouse Gas Reduction Fund to be available, upon appropriation, for allocation to reimburse counties and cities for any revenue losses caused by those sales and use tax exemptions.
(3)Existing federal law, until September 30, 2017, authorizes a state to allow specified labeled vehicles to use lanes designated for high-occupancy vehicles (HOVs). Existing law authorizes the Department of Transportation to designate certain lanes for the exclusive use of HOVs. Under existing law, until January 1, 2019, until federal authorization expires, or until the Secretary of State receives a specified notice, those lanes may be used by certain vehicles not carrying the requisite number of passengers otherwise required for the use of an HOV lane if the vehicle displays a valid identifier issued by the Department of Motor Vehicles (DMV). Existing law authorizes the DMV to issue no more than 85,000 of those identifiers.
This bill would no longer limit the amount of identifiers issued by the DMV.
Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Existing law requires, until January 1, 2024, that a portion of the registration fees for motor vehicles and vessels be deposited into the Air Quality Improvement Fund and, upon appropriation, be expended for the implementation of the program.
This bill would make technical, nonsubstantive changes to those provisions.
Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Existing law requires, until January 1, 2024, that a portion of the registration fees for motor vehicles and vessels be deposited into the Air Quality Improvement Fund and, upon appropriation, be expended for the implementation of the program.
This bill would make technical, nonsubstantive changes to those provisions.
The Legislature finds and declares all of the following:
(a)California is at the forefront of battling climate change, and a main pillar of the states climate strategy is reducing greenhouse gas emissions to 1990 levels.
(b)To help achieve this greenhouse gas emissions goal, the State Air Resources Board has required large vehicle manufacturers to produce a certain amount of zero-emission vehicles as a percentage of the overall number of vehicles the manufacturer makes for sale in the state. The present mandate is 15.4 percent of new vehicles delivered for sale by 2025.
(c)To reinforce this mandate, Governor Brown issued Executive Order B-16-2012, which set a long-term target of 1,500,000 zero-emission vehicles on the road by 2025, with the hope and expectation that the market for these vehicles will become mainstream and self-sustaining for individuals, businesses, and public fleets.
(d)The widespread adoption and purchase of zero-emission vehicles can help the environment and further the states goals by mitigating emissions and easing air pollution.
(e)To be effective in cutting emissions and cleaning up air pollution, zero-emission and partial-zero-emission vehicles must attract consumers who would otherwise choose a traditional gasoline-fueled car.
(f)The current market for zero-emission vehicles has excessive barriers, including the high relative purchase price associated with zero-emission vehicles, limited range capability, inadequate charging infrastructure, resale value, length of commute, and existing low gas prices.
(g)In 2015, Californias new car dealers sold over 2,000,000 new vehicles with a combined 3.1 percent of those sales comprising zero-emission vehicles and partial-zero-emission vehicles. That represents a drop in market share for these vehicles, which was 3.2 percent in 2014.
(h)Using last years 2,000,000 new vehicle sales as an estimate of 2025 vehicle sales by covered manufacturers, the 15.4 percent mandate by the State Air Resources Board would require 308,000 zero-emission vehicles and partial-zero-emission vehicles be delivered for sale in the state that year. If the current 41.5 percent of new vehicle sales will continue to be made up of sport utility vehicles, pickups, and vans, over 25 percent of the remaining 1,201,000 passenger vehicles delivered for sale just nine years from now must be electric or plug-in electric vehicles.
(i)California has long focused on increasing disadvantaged communities access to environmentally-friendly technologies and green transportation options to benefit the health of residents and to enhance air quality.
(j) Compared to gasoline-fueled vehicles, alternative-fueled vehicles reduce the countrys dependence on foreign oil and substantially lower consumers fuel costs.
(k)Automakers and new car dealers face numerous inherent market challenges when introducing and retailing the alternative-fueled vehicles required by the State Air Resources Boards vehicle mandates, including complex incentives, uncertain policy support, purchase price disparity, lengthy sales transactions, low gasoline prices, poor after-sale electric vehicle infrastructure, and sophisticated, constantly-changing technology.
(l)Incentives, such as rebates, tax credits, and high occupancy vehicle lane access for zero- and partial-emission vehicles, are crucial for continuing consumer interest in these vehicles, but greater investments are needed to significantly affect consumer buying behavior and the overall alternative-fueled vehicle marketplace, especially when it comes to economically disadvantaged communities.
(m)Increased incentives have been deployed with great success in other countries and have resulted in a large-scale consumer migration from traditional gas-fueled vehicles to cleaner modes of transportation.
(n)Accordingly, it is the intent of the Legislature in enacting this act to provide more realistic incentives that will move customer demand of zero-emission vehicles and achieve the adoption of alternative-fueled vehicles to meet the states greenhouse gas emissions goals.
SEC. 2.Chapter 8.1 (commencing with Section 44257.1) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.1.Zero-Emission Vehicle Incentives44257.1.For purposes of this chapter, the following terms have the following meanings:
(a)Battery electric vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered entirely by an electric motor drawing current from rechargeable storage batteries.
(b)Clean Vehicle Rebate Project has the same meaning as established pursuant to Section 44274.
(c)Disadvantaged community means a community identified pursuant to Section 39711.
(d)Fuel-cell vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered by an electric motor drawing current from compressed hydrogen into a fuel cell.
(e)New motor vehicle dealer has the same meaning as in Section 426 of the Vehicle Code.
(f)Plug-in hybrid electric vehicle means a vehicle that meets the states enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
44257.3.(a)(1)Beginning January 1, 2017, as part of for the purposes of the Clean Vehicle Rebate Project, the state board shall provide the following incentive amounts:
(1)
(A)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 10 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(2)
(B)For a vehicle qualified as a battery electric vehicle, an amount equal to 15 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(3)
(C)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 25 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(2)The incentive amounts provided pursuant to this subdivision shall be applicable only for the first sixty thousand dollars ($60,000) of the manufacturers suggested retail price or the final sales price, whichever is lower.
(b)(1)Notwithstanding subdivision (a), beginning January 1, 2017, as part of for the purposes of the Clean Vehicle Rebate Project, the state board shall provide for low- and moderate-income residents of a disadvantaged community the following incentive amounts:
(1)
(A)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 40 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(2)
(B)For a vehicle qualified as a battery electric vehicle, an amount equal to 45 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(3)
(C)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 55 percent of the manufacturers suggested retail price. price or the final sales price, whichever is lower.
(2)The incentive amounts provided pursuant to this subdivision shall be applicable only for the first sixty thousand dollars ($60,000) of the manufacturers suggested retail price or the final sales price, whichever is lower.
(c)(1)Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (a).
(2)Moneys available for allocation to disadvantaged communities shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (b).
44257.5.In addition to the current criteria and other requirements for the Clean Vehicle Rebate Project, beginning January 1, 2017, the state board shall limit eligible vehicles to those vehicles with a manufacturers suggested retail price of sixty thousand dollars ($60,000) or less.
44257.7.44257.5.(a)(1)The state board shall implement a process to allow eligible applicants under the Clean Vehicle Rebate Project to obtain prompt preapproval from the state board prior to purchasing or leasing a vehicle. The process shall provide the applicant a unique identifiable number, which the applicant can present to a new motor vehicle dealer, and shall enable the unique identifiable number to be verified by a new motor vehicle dealer at the time of purchase or lease.
(2)The state board shall implement a process to allow a new motor vehicle dealer to be refunded any Clean Vehicle Rebate Project incentive amount applied to the applicants conditional sales contract or other vehicle purchase or lease agreement in no fewer than seven days.
(b)Upon the implementation of subdivision (a), a new motor vehicle dealer may apply the Clean Vehicle Rebate Project incentive amount to the applicants conditional sales contract or other vehicle purchase or lease agreement as a downpayment or amount due at lease signing or delivery.
(c)The state board shall suspend the preapproval process described in paragraph (1) of subdivision (a) if inadequate funding is available to award incentives under the Clean Vehicle Rebate Project. If the state board suspends the preapproval process, it shall provide dealers and consumers no less than 30 days advance notice.
44257.9.44257.7.The state board shall adopt regulations implementing this chapter.
44257.9.This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date.
SEC. 3.Section 44258.4 of the Health and Safety Code is amended to read:44258.4.(a)Any moneys utilized pursuant to this chapter from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be consistent with the appropriations processes and criteria established by the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act (Chapter 4.1 (commencing with Section 39710) of Part 2).
(b)The Charge Ahead California Initiative is hereby established and shall be administered by the state board. The goals of this initiative are to place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, to establish a self-sustaining California market for zero-emission and near-zero-emission vehicles in which zero-emission and near-zero-emission vehicles are a viable mainstream option for individual vehicle purchasers, businesses, and public fleets, to increase access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles, and to increase the placement of those vehicles in those communities and with those consumers to enhance the air quality, lower greenhouse gases, and promote overall benefits for those communities and consumers.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, districts, and the public, shall do all of the following:
(1)(A)Include, commencing with the funding plan for the 201617 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9), a funding plan that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years commensurate with meeting the goals of this chapter. Funding needs may be described as a range that identifies the projected high and low funding levels needed for the two-year forecast period to contribute to technology advancement, market readiness, and consumer acceptance of zero- and near-zero-emission vehicle technologies. The funding plan shall include a market and technology assessment for each funded zero- and near-zero-emission vehicle technology to inform the appropriate funding level, incentive type, and incentive amount. The forecast shall include an assessment of when a self-sustaining market is expected and how existing incentives may be modified to recognize expected changes in future market conditions.
(B)Projects included in the forecast may include, but are not limited to, any of the following:
(i)The Clean Vehicle Rebate Project, established pursuant to Section 44274.
(ii)Light-duty zero-emission and near-zero-emission vehicle deployment projects eligible under the Alternative and Renewable Fuel and Vehicle Technology Program, established pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.
(iii)Programs adopted pursuant to paragraph (4).
(2)Update the plan required pursuant to paragraph (1) at least every three years through January 1, 2023.
(3)No later than June 30, 2015, and consistent with Chapter 8.1 (commencing with Section 44257.1), adopt revisions to the criteria and other requirements for the Clean Vehicle Rebate Project, established pursuant to Section 44274, to ensure the following:
(A)Eligibility is limited based on income.
(B)Consideration of methods to increase participation rates.
(4)(A)Establish programs that further increase access to and direct benefits for disadvantaged, low-income, and moderate-income communities and consumers from electric transportation, including, but not limited to, any of the following:
(i)Financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.
(ii)Car sharing programs that serve disadvantaged communities and utilize zero-emission and near-zero-emission vehicles.
(iii)Deployment of charging infrastructure in multiunit dwellings in disadvantaged communities to remove barriers to zero-emission and near-zero-emission vehicle adoption by those who do not live in detached homes. This clause does not preclude the Public Utilities Commission from acting within the scope of its jurisdiction.
(iv)Additional incentives for zero-emission, near-zero-emission, or high-efficiency replacement vehicles or a mobility option available to participants in the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5.
(B)Programs implemented pursuant to this paragraph shall provide adequate outreach to disadvantaged, low-income, and moderate-income communities and consumers, including partnering with community-based organizations.
SEC. 4.Chapter 8.8 (commencing with Section 44269) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.8.Electric Vehicle Charging Station Rebates44269.(a)The state board shall issue a rebate up to the costs associated with the purchase and installation of an electric vehicle charging station to a property owner or lessee in the following amounts:
(1)Two thousand dollars ($2,000) for the first year of installation.
(2)One thousand five hundred dollars ($1,500) following the first year of installation.
(3)One thousand dollars ($1,000) following the second year of installation.
(b)The property owner or lessee shall first place the electric vehicle charging station in service during the calendar year for which the rebate is claimed.
(c)The property owner or lessee shall maintain the electric vehicle charging station for a minimum period of 60 months. If the property owner or lessee does not maintain the electric vehicle charging station for a minimum period of 60 months, the state board shall seek reimbursement for the entire amount of the rebates previously issued pursuant to subdivision (a) from the property owner or lessee who had received those rebates.
(d)The property owner or lessee may not claim a rebate pursuant to subdivision (a) for the installation of an electric vehicle charging station if an existing electric vehicle charging station has been removed from the property within the preceding 12 months.
(e)(1)The property owner or lessee may receive rebates for the installation of up to two electric vehicle charging stations for use on a residential property located in a disadvantaged community, as identified pursuant to Section 39711.
(2)The property owner or lessee may receive rebates for the installation of up to 10 electric vehicle charging stations for use on a commercial or multifamily property.
(f)The state board shall limit eligible electric vehicle charging stations to level 2 charging and rapid charging ports.
(g)The state board shall adopt regulations implementing this chapter.
44269.5.Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to this chapter.
44269.7.This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date.
SEC. 5.Section 6011 of the Revenue and Taxation Code is amended to read:6011.(a)Sales price means the total amount for which tangible personal property is sold or leased or rented, as the case may be, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold.
(2)The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(b)The total amount for which the property is sold or leased or rented includes all of the following:
(1)Any services that are a part of the sale.
(2)Any amount for which credit is given to the purchaser by the seller.
(3)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(c)Sales price does not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The amount charged for labor or services rendered in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property, measured by a stated percentage of sales price or gross receipts, whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the purchase of the property is made.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
(d)This section shall remain in effect only until January 1, 2026, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date.
SEC. 6.Section 6011 is added to the Revenue and Taxation Code, to read:6011.(a)Sales price means the total amount for which tangible personal property is sold or leased or rented, as the case may be, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold.
(2)The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(b)The total amount for which the property is sold or leased or rented includes all of the following:
(1)Any services that are a part of the sale.
(2)Any amount for which credit is given to the purchaser by the seller.
(3)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(c)Sales price does not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The amount charged for labor or services rendered in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property, measured by a stated percentage of sales price or gross receipts, whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use, or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the purchase of the property is made.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid to the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
(d)This section shall become operative on January 1, 2026.
SEC. 6.SEC. 7.Section 6012 of the Revenue and Taxation Code is amended to read:6012.(a)Gross receipts mean the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold. However, in accordance with any rules and regulations as the board may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his or her vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business. If that deduction is taken by the retailer, no refund or credit will be allowed to his or her vendor with respect to the sale of the property.
(2)The cost of the materials used, labor or service cost, interest paid, losses, or any other expense.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(4)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(b)The total amount of the sale or lease or rental price includes all of the following:
(1)Any services that are a part of the sale.
(2)All receipts, cash, credits and property of any kind.
(3)Any amount for which credit is allowed by the seller to the purchaser.
(c)Gross receipts do not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)Sale price of property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The price received for labor or services used in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property measured by a stated percentage of sales price or gross receipts whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the sale of the property is made to the purchaser.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid to the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the satisfaction of the board that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed. Section 1656.1 of the Civil Code shall apply in determining whether or not the retailers have absorbed the sales tax.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
(d)This section shall remain in effect only until January 1, 2026, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date.
SEC. 8.Section 6012 is added to the Revenue and Taxation Code, to read:6012.(a)Gross receipts mean the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold. However, in accordance with any rules and regulations as the board may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his or her vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business. If that deduction is taken by the retailer, no refund or credit will be allowed to his or her vendor with respect to the sale of the property.
(2)The cost of the materials used, labor or service cost, interest paid, losses, or any other expense.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(4)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(b)The total amount of the sale or lease or rental price includes all of the following:
(1)Any services that are a part of the sale.
(2)All receipts, cash, credits, and property of any kind.
(3)Any amount for which credit is allowed by the seller to the purchaser.
(c)Gross receipts do not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)Sale price of property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The price received for labor or services used in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property measured by a stated percentage of sales price or gross receipts whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use, or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the sale of the property is made to the purchaser.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid to the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the satisfaction of the board that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed. Section 1656.1 of the Civil Code shall apply in determining whether or not the retailers have absorbed the sales tax.
(d)This section shall become operative on January 1, 2026.
SEC. 7.SEC. 9.Section 5205.5 of the Vehicle Code is amended to read:5205.5.(a)For the purposes of implementing Section 21655.9, the department shall make available for issuance, for a fee determined by the department to be sufficient to reimburse the department for the actual costs incurred pursuant to this section, distinctive decals, labels, and other identifiers that clearly distinguish the following vehicles from other vehicles:
(1)A vehicle that meets Californias super ultra-low emission vehicle (SULEV) standard for exhaust emissions and the federal inherently low-emission vehicle (ILEV) evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations.
(2)A vehicle that was produced during the 2004 model year or earlier and meets Californias ultra-low emission vehicle (ULEV) standard for exhaust emissions and the federal ILEV standard.
(3)A vehicle that meets Californias enhanced advanced technology partial zero-emission vehicle (enhanced AT PZEV) standard or transitional zero-emission vehicle (TZEV) standard.
(b)The department shall include a summary of the provisions of this section on each motor vehicle registration renewal notice, or on a separate insert, if space is available and the summary can be included without incurring additional printing or postage costs.
(c)The Department of Transportation shall remove individual HOV lanes, or portions of those lanes, during periods of peak congestion from the access provisions provided in subdivision (a), following a finding by the Department of Transportation as follows:
(1)The lane, or portion thereof, exceeds a level of service C, as discussed in subdivision (b) of Section 65089 of the Government Code.
(2)The operation or projected operation of the vehicles described in subdivision (a) in these lanes, or portions thereof, will significantly increase congestion.
(3)The finding shall also demonstrate the infeasibility of alleviating the congestion by other means, including, but not limited to, reducing the use of the lane by noneligible vehicles or further increasing vehicle occupancy.
(d)The State Air Resources Board shall publish and maintain a listing of all vehicles eligible for participation in the programs described in this section. The board shall provide that listing to the department.
(e)(1)For the purposes of subdivision (a), the Department of the California Highway Patrol and the department, in consultation with the Department of Transportation, shall design and specify the placement of the decal, label, or other identifier on the vehicle. Each decal, label, or other identifier issued for a vehicle shall display a unique number, which shall be printed on or affixed to the vehicle registration.
(2)Decals, labels, or other identifiers designed pursuant to this subdivision for a vehicle described in paragraph (3) of subdivision (a) shall be distinguishable from the decals, labels, or other identifiers that are designed for vehicles described in paragraphs (1) and (2) of subdivision (a).
(f)[Reserved]
(g)If the Metropolitan Transportation Commission, serving as the Bay Area Toll Authority, grants toll-free and reduced-rate passage on toll bridges under its jurisdiction to a vehicle pursuant to Section 30102.5 of the Streets and Highways Code, it shall also grant the same toll-free and reduced-rate passage to a vehicle displaying an identifier issued by the department pursuant to paragraph (1) or (2) of subdivision (a).
(h)(1)Notwithstanding Section 21655.9, and except as provided in paragraph (2), a vehicle described in subdivision (a) that displays a decal, label, or identifier issued pursuant to this section shall be granted a toll-free or reduced-rate passage in high-occupancy toll lanes as described in Section 149.7 of the Streets and Highways Code unless prohibited by federal law.
(2)(A)Paragraph (1) does not apply to the imposition of a toll imposed for passage on a toll road or toll highway that is not a high-occupancy toll lane as described in Section 149.7 of the Streets and Highways Code.
(B)On or before March 1, 2014, paragraph (1) does not apply to the imposition of a toll imposed for passage in lanes designated for tolls pursuant to the federally supported value pricing and transit development demonstration program operated pursuant to Section 149.9 of the Streets and Highways Code for State Highway Route 10 or 110.
(C)Paragraph (1) does not apply to the imposition of a toll charged for crossing a state-owned bridge.
(i)If the Director of Transportation determines that federal law does not authorize the state to allow vehicles that are identified by distinctive decals, labels, or other identifiers on vehicles described in subdivision (a) to use highway lanes or highway access ramps for high-occupancy vehicles regardless of vehicle occupancy, the Director of Transportation shall submit a notice of that determination to the Secretary of State.
(j)This section shall become inoperative on January 1, 2019, or the date the federal authorization pursuant to Section 166 of Title 23 of the United States Code expires, or the date the Secretary of State receives the notice described in subdivision (i), whichever occurs first, and, as of January 1, 2019, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2019, deletes or extends the dates on which it becomes inoperative and is repealed.
The Legislature finds and declares all of the following:
(a)California is at the forefront of battling climate change, and a main pillar of the states climate strategy is reducing greenhouse gas emissions to 1990 levels.
(b)To help achieve this greenhouse gas emissions goal, the State Air Resources Board has required large vehicle manufacturers to produce a certain amount of zero-emission vehicles as a percentage of the overall number of vehicles the manufacturer makes for sale in the state. The present mandate is 15.4 percent of new vehicles delivered for sale by 2025.
(c)To reinforce this mandate, Governor Jerry Brown issued Executive Order B-16-2012, which set a long-term target of 1,500,000 zero-emission vehicles on the road by 2025, with the hope and expectation that the market for these vehicles will become mainstream and self-sustaining for individuals, businesses, and public fleets.
(d)The widespread adoption and purchase of zero-emission vehicles can help the environment and further the states goals by mitigating emissions and easing air pollution.
(e)To be effective in cutting emissions and cleaning up air pollution, zero-emission and partial-zero-emission vehicles must attract consumers who would otherwise choose a traditional gasoline-fueled car.
(f)The current market for zero-emission vehicles has excessive barriers, including the high relative purchase price associated with zero-emission vehicles, limited range capability, inadequate charging infrastructure, resale value, length of commute, and existing low gas prices.
(g)In 2015, Californias new car dealers sold over 2,000,000 new vehicles with a combined 3.1 percent of those sales comprising zero-emission vehicles and partial-zero-emission vehicles. That represents a drop in market share for these vehicles, which was 3.2 percent in 2014.
(h)Using last years 2,000,000 new vehicle sales as an estimate of 2025 vehicle sales by covered manufacturers, the 15.4 percent mandate by the State Air Resources Board would require 308,000 zero-emission vehicles and partial-zero-emission vehicles be delivered for sale in the state that year. If the current 41.5 percent of new vehicle sales will continue to be made up of sport utility vehicles, pickups, and vans, over 25 percent of the remaining 1,201,000 passenger vehicles delivered for sale just nine years from now must be electric or plug-in electric vehicles.
(i)California has long focused on increasing disadvantaged communities access to environmentally-friendly technologies and green transportation options to benefit the health of residents and to enhance air quality.
(j) Compared to gasoline-fueled vehicles, alternative-fueled vehicles reduce the countrys dependence on foreign oil and substantially lower consumers fuel costs.
(k)Automakers and new car dealers face numerous inherent market challenges when introducing and retailing the alternative-fueled vehicles required by the State Air Resources Boards vehicle mandates, including complex incentives, uncertain policy support, purchase price disparity, lengthy sales transactions, low gasoline prices, poor after-sale electric vehicle infrastructure, and sophisticated, constantly-changing technology.
(l)Incentives, such as rebates, tax credits, and high occupancy vehicle lane access for zero- and partial-emission vehicles, are crucial for continuing consumer interest in these vehicles, but greater investments are needed to significantly affect consumer buying behavior and the overall alternative-fueled vehicle marketplace, especially when it comes to economically disadvantaged communities.
(m)Increased incentives have been deployed with great success in other countries and have resulted in a large-scale consumer migration from traditional gas-fueled vehicles to cleaner modes of transportation.
(n)Accordingly, it is the intent of the Legislature in enacting this act to provide more realistic incentives that will move customer demand of zero-emission vehicles and achieve the adoption of alternative-fueled vehicles to meet the states greenhouse gas emissions goals.
SEC. 2.Chapter 8.1 (commencing with Section 44257.1) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.1.Zero-Emission Vehicle Incentives44257.1.For purposes of this chapter, the following terms have the following meanings:
(a)Battery electric vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered entirely by an electric motor drawing current from rechargeable storage batteries.
(b)Clean Vehicle Rebate Project has the same meaning as established pursuant to Section 44274.
(c)Disadvantaged community means a community identified pursuant to Section 39711.
(d)Fuel-cell vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered by an electric motor drawing current from compressed hydrogen into a fuel cell.
(e)New motor vehicle dealer has the same meaning as in Section 426 of the Vehicle Code.
(f)Plug-in hybrid electric vehicle means a vehicle that meets the states enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
44257.3.(a)Beginning January 1, 2017, as part of the Clean Vehicle Rebate Project, the state board shall provide the following incentive amounts:
(1)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 10 percent of the manufacturers suggested retail price.
(2)For a vehicle qualified as a battery electric vehicle, an amount equal to 15 percent of the manufacturers suggested retail price.
(3)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 25 percent of the manufacturers suggested retail price.
(b)Notwithstanding subdivision (a), beginning January 1, 2017, as part of the Clean Vehicle Rebate Project, the state board shall provide for residents of a disadvantaged community the following incentive amounts:
(1)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 40 percent of the manufacturers suggested retail price.
(2)For a vehicle qualified as a battery electric vehicle, an amount equal to 45 percent of the manufacturers suggested retail price.
(3)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 55 percent of the manufacturers suggested retail price.
(c)(1)Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (a).
(2)Moneys available for allocation to disadvantaged communities shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (b).
44257.5.In addition to the current criteria and other requirements for the Clean Vehicle Rebate Project, beginning January 1, 2017, the state board shall limit eligible vehicles to those vehicles with a manufacturers suggested retail price of sixty thousand dollars ($60,000) or less.
44257.7.(a)(1)The state board shall implement a process to allow eligible applicants under the Clean Vehicle Rebate Project to obtain prompt preapproval from the state board prior to purchasing or leasing a vehicle. The process shall provide the applicant a unique identifiable number, which the applicant can present to a new motor vehicle dealer, and shall enable the unique identifiable number to be verified by a new motor vehicle dealer at the time of purchase or lease.
(2)The state board shall implement a process to allow a new motor vehicle dealer to be refunded any Clean Vehicle Rebate Project incentive amount applied to the applicants conditional sales contract or other vehicle purchase or lease agreement in no fewer than seven days.
(b)Upon the implementation of subdivision (a), a new motor vehicle dealer may apply the Clean Vehicle Rebate Project incentive amount to the applicants conditional sales contract or other vehicle purchase or lease agreement as a downpayment or amount due at lease signing or delivery.
(c)The state board shall suspend the preapproval process described in paragraph (1) of subdivision (a) if inadequate funding is available to award incentives under the Clean Vehicle Rebate Project. If the state board suspends the preapproval process, it shall provide dealers and consumers no less than 30 days advance notice.
44257.9.The state board shall adopt regulations implementing this chapter.
SEC. 3.Section 44258.4 of the Health and Safety Code is amended to read:44258.4.(a)Any moneys utilized pursuant to this chapter from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be consistent with the appropriations processes and criteria established by the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act (Chapter 4.1 (commencing with Section 39710) of Part 2).
(b)The Charge Ahead California Initiative is hereby established and shall be administered by the state board. The goals of this initiative are to place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, to establish a self-sustaining California market for zero-emission and near-zero-emission vehicles in which zero-emission and near-zero-emission vehicles are a viable mainstream option for individual vehicle purchasers, businesses, and public fleets, to increase access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles, and to increase the placement of those vehicles in those communities and with those consumers to enhance the air quality, lower greenhouse gases, and promote overall benefits for those communities and consumers.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, districts, and the public, shall do all of the following:
(1)(A)Include, commencing with the funding plan for the 201617 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9), a funding plan that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years commensurate with meeting the goals of this chapter. Funding needs may be described as a range that identifies the projected high and low funding levels needed for the two-year forecast period to contribute to technology advancement, market readiness, and consumer acceptance of zero- and near-zero-emission vehicle technologies. The funding plan shall include a market and technology assessment for each funded zero- and near-zero-emission vehicle technology to inform the appropriate funding level, incentive type, and incentive amount. The forecast shall include an assessment of when a self-sustaining market is expected and how existing incentives may be modified to recognize expected changes in future market conditions.
(B)Projects included in the forecast may include, but are not limited to, any of the following:
(i)The Clean Vehicle Rebate Project, established pursuant to Section 44274.
(ii)Light-duty zero-emission and near-zero-emission vehicle deployment projects eligible under the Alternative and Renewable Fuel and Vehicle Technology Program, established pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.
(iii)Programs adopted pursuant to paragraph (4).
(2)Update the plan required pursuant to paragraph (1) at least every three years through January 1, 2023.
(3)No later than June 30, 2015, and consistent with Chapter 8.1 (commencing with Section 44257.1), adopt revisions to the criteria and other requirements for the Clean Vehicle Rebate Project, established pursuant to Section 44274, to ensure the following:
(A)Eligibility is limited based on income.
(B)Consideration of methods to increase participation rates.
(3)
(4)(A)Establish programs that further increase access to and direct benefits for disadvantaged, low-income, and moderate-income communities and consumers from electric transportation, including, but not limited to, any of the following:
(i)Financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.
(ii)Car sharing programs that serve disadvantaged communities and utilize zero-emission and near-zero-emission vehicles.
(iii)Deployment of charging infrastructure in multiunit dwellings in disadvantaged communities to remove barriers to zero-emission and near-zero-emission vehicle adoption by those who do not live in detached homes. This clause does not preclude the Public Utilities Commission from acting within the scope of its jurisdiction.
(iv)Additional incentives for zero-emission, near-zero-emission, or high-efficiency replacement vehicles or a mobility option available to participants in the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5.
(B)Programs implemented pursuant to this paragraph shall provide adequate outreach to disadvantaged, low-income, and moderate-income communities and consumers, including partnering with community-based organizations.
SEC. 4.Chapter 8.8 (commencing with Section 44269) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.8.Electric Vehicle Charging Station Rebates44269.(a)The state board shall issue a rebate for the up to the costs associated with the purchase and installation of an electric vehicle charging station to a property owner or lessee in the following amounts:
(1)Two thousand dollars ($2,000) for the first year of installation.
(2)One thousand five hundred dollars ($1,500) following the first year of installation.
(3)One thousand dollars ($1,000) following the second year of installation.
(b)The property owner or lessee shall first place the electric vehicle charging station in service during the calendar year for which the rebate is claimed.
(c)The property owner or lessee shall maintain the electric vehicle charging station for a minimum period of 60 months. If the property owner or lessee does not maintain the electric vehicle charging station for a minimum period of 60 months, the state board shall seek reimbursement for the entire amount of the rebates previously issued pursuant to subdivision (a) from the property owner or lessee who had received those rebates.
(d)The property owner or lessee may not claim a rebate pursuant to subdivision (a) for the installation of an electric vehicle charging station if an existing electric vehicle charging station has been removed from the property within the preceding 12 months.
(e)(1)The property owner or lessee may receive rebates for the installation of up to two electric vehicle charging stations for use on a residential property. property located in a disadvantaged community, as identified pursuant to Section 39711.
(2)The property owner or lessee may receive rebates for the installation of up to 10 electric vehicle charging stations for use on a commercial or multifamily property.
(f)The state board shall limit eligible electric vehicle charging stations to level 2 charging and rapid charging ports.
(f)
(g)The state board shall adopt regulations implementing this chapter.
44269.5.Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to this chapter.
SEC. 5.Section 6011 of the Revenue and Taxation Code is amended to read:6011.(a)Sales price means the total amount for which tangible personal property is sold or leased or rented, as the case may be, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold.
(2)The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(b)The total amount for which the property is sold or leased or rented includes all of the following:
(1)Any services that are a part of the sale.
(2)Any amount for which credit is given to the purchaser by the seller.
(3)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(c)Sales price does not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The amount charged for labor or services rendered in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property, measured by a stated percentage of sales price or gross receipts, whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the purchase of the property is made.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
SEC. 6.Section 6012 of the Revenue and Taxation Code is amended to read:6012.(a)Gross receipts mean the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold. However, in accordance with any rules and regulations as the board may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his or her vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business. If that deduction is taken by the retailer, no refund or credit will be allowed to his or her vendor with respect to the sale of the property.
(2)The cost of the materials used, labor or service cost, interest paid, losses, or any other expense.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(4)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(b)The total amount of the sale or lease or rental price includes all of the following:
(1)Any services that are a part of the sale.
(2)All receipts, cash, credits and property of any kind.
(3)Any amount for which credit is allowed by the seller to the purchaser.
(c)Gross receipts do not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)Sale price of property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The price received for labor or services used in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property measured by a stated percentage of sales price or gross receipts whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the sale of the property is made to the purchaser.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid to the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the satisfaction of the board that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed. Section 1656.1 of the Civil Code shall apply in determining whether or not the retailers have absorbed the sales tax.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
SEC. 7.Section 5205.5 of the Vehicle Code is amended to read:5205.5.(a)For the purposes of implementing Section 21655.9, the department shall make available for issuance, for a fee determined by the department to be sufficient to reimburse the department for the actual costs incurred pursuant to this section, distinctive decals, labels, and other identifiers that clearly distinguish the following vehicles from other vehicles:
(1)A vehicle that meets Californias super ultra-low emission vehicle (SULEV) standard for exhaust emissions and the federal inherently low-emission vehicle (ILEV) evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations.
(2)A vehicle that was produced during the 2004 model year or earlier and meets Californias ultra-low emission vehicle (ULEV) standard for exhaust emissions and the federal ILEV standard.
(3)A vehicle that meets Californias enhanced advanced technology partial zero-emission vehicle (enhanced AT PZEV) standard or transitional zero-emission vehicle (TZEV) standard.
(b)The department shall include a summary of the provisions of this section on each motor vehicle registration renewal notice, or on a separate insert, if space is available and the summary can be included without incurring additional printing or postage costs.
(c)The Department of Transportation shall remove individual HOV lanes, or portions of those lanes, during periods of peak congestion from the access provisions provided in subdivision (a), following a finding by the Department of Transportation as follows:
(1)The lane, or portion thereof, exceeds a level of service C, as discussed in subdivision (b) of Section 65089 of the Government Code.
(2)The operation or projected operation of the vehicles described in subdivision (a) in these lanes, or portions thereof, will significantly increase congestion.
(3)The finding shall also demonstrate the infeasibility of alleviating the congestion by other means, including, but not limited to, reducing the use of the lane by noneligible vehicles or further increasing vehicle occupancy.
(d)The State Air Resources Board shall publish and maintain a listing of all vehicles eligible for participation in the programs described in this section. The board shall provide that listing to the department.
(e)(1)For the purposes of subdivision (a), the Department of the California Highway Patrol and the department, in consultation with the Department of Transportation, shall design and specify the placement of the decal, label, or other identifier on the vehicle. Each decal, label, or other identifier issued for a vehicle shall display a unique number, which shall be printed on or affixed to the vehicle registration.
(2)Decals, labels, or other identifiers designed pursuant to this subdivision for a vehicle described in paragraph (3) of subdivision (a) shall be distinguishable from the decals, labels, or other identifiers that are designed for vehicles described in paragraphs (1) and (2) of subdivision (a).
(f)[Reserved]
(g)If the Metropolitan Transportation Commission, serving as the Bay Area Toll Authority, grants toll-free and reduced-rate passage on toll bridges under its jurisdiction to a vehicle pursuant to Section 30102.5 of the Streets and Highways Code, it shall also grant the same toll-free and reduced-rate passage to a vehicle displaying an identifier issued by the department pursuant to paragraph (1) or (2) of subdivision (a).
(h)(1)Notwithstanding Section 21655.9, and except as provided in paragraph (2), a vehicle described in subdivision (a) that displays a decal, label, or identifier issued pursuant to this section shall be granted a toll-free or reduced-rate passage in high-occupancy toll lanes as described in Section 149.7 of the Streets and Highways Code unless prohibited by federal law.
(2)(A)Paragraph (1) does not apply to the imposition of a toll imposed for passage on a toll road or toll highway that is not a high-occupancy toll lane as described in Section 149.7 of the Streets and Highways Code.
(B)On or before March 1, 2014, paragraph (1) does not apply to the imposition of a toll imposed for passage in lanes designated for tolls pursuant to the federally supported value pricing and transit development demonstration program operated pursuant to Section 149.9 of the Streets and Highways Code for State Highway Route 10 or 110.
(C)Paragraph (1) does not apply to the imposition of a toll charged for crossing a state-owned bridge.
(i)If the Director of Transportation determines that federal law does not authorize the state to allow vehicles that are identified by distinctive decals, labels, or other identifiers on vehicles described in subdivision (a) to use highway lanes or highway access ramps for high-occupancy vehicles regardless of vehicle occupancy, the Director of Transportation shall submit a notice of that determination to the Secretary of State.
(j)This section shall become inoperative on January 1, 2019, or the date the federal authorization pursuant to Section 166 of Title 23 of the United States Code expires, or the date the Secretary of State receives the notice described in subdivision (i), whichever occurs first, and, as of January 1, 2019, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2019, deletes or extends the dates on which it becomes inoperative and is repealed.
The Legislature finds and declares all of the following:
(a)California is at the forefront of battling climate change, and a main pillar of the states climate strategy is reducing greenhouse gas emissions to 1990 levels.
(b)To help achieve this greenhouse gas emissions goal, the State Air Resources Board has required large vehicle manufacturers to produce a certain amount of zero-emission vehicles as a percentage of the overall number of vehicles the manufacturer makes for sale in the state. The present mandate is 15.4 percent of new vehicles delivered for sale by 2025.
(c)To reinforce this mandate, Governor Jerry Brown issued Executive Order B-16-2012, which set a long-term target of 1,500,000 zero-emission vehicles on the road by 2025, with the hope and expectation that the market for these vehicles will become mainstream and self-sustaining for individuals, businesses, and public fleets.
(d)The widespread adoption and purchase of zero-emission vehicles can help the environment and further the states goals by mitigating emissions and easing air pollution.
(e)To be effective in cutting emissions and cleaning up air pollution, zero-emission and partial-zero-emission vehicles must attract consumers who would otherwise choose a traditional gasoline-fueled car.
(f)The current market for zero-emission vehicles has excessive barriers, including the high relative purchase price associated with zero-emission vehicles, limited range capability, inadequate charging infrastructure, resale value, length of commute, and existing low gas prices.
(g)In 2015, Californias new car dealers sold over 2,000,000 new vehicles with a combined 3.1 percent of those sales comprising zero-emission vehicles and partial-zero-emission vehicles. That represents a drop in market share for these vehicles, which was 3.2 percent in 2014.
(h)Using last years 2,000,000 new vehicle sales as an estimate of 2025 vehicle sales by covered manufacturers, the 15.4 percent mandate by the State Air Resources Board would require 308,000 zero-emission vehicles and partial-zero-emission vehicles be delivered for sale in the state that year. If the current 41.5 percent of new vehicle sales will continue to be made up of sport utility vehicles, pickups, and vans, over 25 percent of the remaining 1,201,000 passenger vehicles delivered for sale just nine years from now must be electric or plug-in electric vehicles.
(i)California has long focused on increasing disadvantaged communities access to environmentally-friendly technologies and green transportation options to benefit the health of residents and to enhance air quality.
(j) Compared to gasoline-fueled vehicles, alternative-fueled vehicles reduce the countrys dependence on foreign oil and substantially lower consumers fuel costs.
(k)Automakers and new car dealers face numerous inherent market challenges when introducing and retailing the alternative-fueled vehicles required by the State Air Resources Boards vehicle mandates, including complex incentives, uncertain policy support, purchase price disparity, lengthy sales transactions, low gasoline prices, poor after-sale electric vehicle infrastructure, and sophisticated, constantly-changing technology.
(l)Incentives, such as rebates, tax credits, and high occupancy vehicle lane access for zero- and partial-emission vehicles, are crucial for continuing consumer interest in these vehicles, but greater investments are needed to significantly affect consumer buying behavior and the overall alternative-fueled vehicle marketplace, especially when it comes to economically disadvantaged communities.
(m)Increased incentives have been deployed with great success in other countries and have resulted in a large-scale consumer migration from traditional gas-fueled vehicles to cleaner modes of transportation.
(n)Accordingly, it is the intent of the Legislature in enacting this act to provide more realistic incentives that will move customer demand of zero-emission vehicles and achieve the adoption of alternative-fueled vehicles to meet the states greenhouse gas emissions goals.
SEC. 2.Chapter 8.1 (commencing with Section 44257.1) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.1.Zero-Emission Vehicle Incentives44257.1.For purposes of this chapter, the following terms have the following meanings:
(a)Battery electric vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered entirely by an electric motor drawing current from rechargeable storage batteries.
(b)Clean Vehicle Rebate Project has the same meaning as established pursuant to Section 44274.
(c)Disadvantaged community means a community identified pursuant to Section 39711.
(d)Fuel-cell vehicle means a vehicle that meets the states super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations, as that part read on January 1, 2016, and is powered by an electric motor drawing current from compressed hydrogen into a fuel cell.
(e)New motor vehicle dealer has the same meaning as in Section 426 of the Vehicle Code.
(f)Plug-in hybrid electric vehicle means a vehicle that meets the states enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
44257.3.(a)Beginning January 1, 2017, as part of the Clean Vehicle Rebate Project, the state board shall provide the following incentive amounts:
(1)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 10 percent of the manufacturers suggested retail price.
(2)For a vehicle qualified as a battery electric vehicle, an amount equal to 15 percent of the manufacturers suggested retail price.
(3)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 25 percent of the manufacturers suggested retail price.
(b)Notwithstanding subdivision (a), beginning January 1, 2017, as part of the Clean Vehicle Rebate Project, the state board shall provide for residents of a disadvantaged community the following incentive amounts:
(1)For a vehicle qualified as a plug-in hybrid electric vehicle, an amount equal to 40 percent of the manufacturers suggested retail price.
(2)For a vehicle qualified as a battery electric vehicle, an amount equal to 45 percent of the manufacturers suggested retail price.
(3)For a vehicle qualified as a fuel-cell vehicle, an amount equal to 55 percent of the manufacturers suggested retail price.
(c)(1)Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (a).
(2)Moneys available for allocation to disadvantaged communities shall be available, upon appropriation by the Legislature, for allocation pursuant to subdivision (b).
44257.5.In addition to the current criteria and other requirements for the Clean Vehicle Rebate Project, beginning January 1, 2017, the state board shall limit eligible vehicles to those vehicles with a manufacturers suggested retail price of sixty thousand dollars ($60,000) or less.
44257.7.(a)(1)The state board shall implement a process to allow eligible applicants under the Clean Vehicle Rebate Project to obtain prompt preapproval from the state board prior to purchasing or leasing a vehicle. The process shall provide the applicant a unique identifiable number, which the applicant can present to a new motor vehicle dealer, and shall enable the unique identifiable number to be verified by a new motor vehicle dealer at the time of purchase or lease.
(2)The state board shall implement a process to allow a new motor vehicle dealer to be refunded any Clean Vehicle Rebate Project incentive amount applied to the applicants conditional sales contract or other vehicle purchase or lease agreement in no fewer than seven days.
(b)Upon the implementation of subdivision (a), a new motor vehicle dealer may apply the Clean Vehicle Rebate Project incentive amount to the applicants conditional sales contract or other vehicle purchase or lease agreement as a downpayment or amount due at lease signing or delivery.
(c)The state board shall suspend the preapproval process described in paragraph (1) of subdivision (a) if inadequate funding is available to award incentives under the Clean Vehicle Rebate Project. If the state board suspends the preapproval process, it shall provide dealers and consumers no less than 30 days advance notice.
44257.9.The state board shall adopt regulations implementing this chapter.
SEC. 3.Section 44258.4 of the Health and Safety Code is amended to read:44258.4.(a)Any moneys utilized by this act pursuant to this chapter from the Greenhouse Gas Reduction Fund, established created pursuant to Section 16428.8 of the Government Code, shall be consistent with the appropriations processes and criteria established by the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act (Chapter 4.1 (commencing with Section 39710) of Part 2).
(b)The Charge Ahead California Initiative is hereby established and shall be administered by the state board. The goals of this initiative are to place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, to establish a self-sustaining California market for zero-emission and near-zero-emission vehicles in which zero-emission and near-zero-emission vehicles are a viable mainstream option for individual vehicle purchasers, businesses, and public fleets, to increase access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles, and to increase the placement of those vehicles in those communities and with those consumers to enhance the air quality, lower greenhouse gases, and promote overall benefits for those communities and consumers.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, districts, and the public, shall do all of the following:
(1)(A)Include, commencing with the funding plan for the 201617 fiscal year of the Air Quality Improvement Program funding plan for the 201617 fiscal year, (Article 3 (commencing with Section 44274) of Chapter 8.9), a funding plan that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years commensurate with meeting the goals of this chapter. Funding needs may be described as a range that identifies the projected high and low funding levels needed for the two-year forecast period to contribute to technology advancement, market readiness, and consumer acceptance of zero- and near-zero-emission vehicle technologies. The funding plan shall include a market and technology assessment for each funded zero- and near-zero-emission vehicle technology to inform the appropriate funding level, incentive type, and incentive amount. The forecast shall include an assessment of when a self-sustaining market is expected and how existing incentives may be modified to recognize expected changes in future market conditions.
(B)Projects included in the forecast may include, but are not limited to, any of the following:
(i)The Clean Vehicle Rebate Project, established pursuant to Section 44274.
(ii)Light-duty zero-emission and near-zero-emission vehicle deployment projects eligible under the Alternative and Renewable Fuel and Vehicle Technology Program, established pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.
(iii)Programs adopted pursuant to paragraph (4).
(2)Update the plan required pursuant to paragraph (1) at least every three years through January 1, 2023.
(3)No later than June 30, 2015, adopt revisions to the criteria and other requirements for the Clean Vehicle Rebate Project, established pursuant to Section 44274, to ensure the following:
(A)Rebate levels can be phased down in increments based on cumulative sales levels as determined by the state board.
(B)Eligibility is limited based on income.
(C)Consideration of the conversion to prequalification and point-of-sale rebates or other methods to increase participation rates.
(4)
(3)(A)Establish programs that further increase access to and direct benefits for disadvantaged, low-income, and moderate-income communities and consumers from electric transportation, including, but not limited to, any of the following:
(i)Financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.
(ii)Car sharing programs that serve disadvantaged communities and utilize zero-emission and near-zero-emission vehicles.
(iii)Deployment of charging infrastructure in multiunit dwellings in disadvantaged communities to remove barriers to zero-emission and near-zero-emission vehicle adoption by those who do not live in detached homes. This clause does not preclude the Public Utilities Commission from acting within the scope of its jurisdiction.
(iv)Additional incentives for zero-emission, near-zero-emission, or high-efficiency replacement vehicles or a mobility option available to participants in the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5.
(B)Programs implemented pursuant to this paragraph shall provide adequate outreach to disadvantaged, low-income, and moderate-income communities and consumers, including partnering with community-based organizations.
SEC. 4.Chapter 8.8 (commencing with Section 44269) is added to Part 5 of Division 26 of the Health and Safety Code, to read:8.8.Electric Vehicle Charging Station Rebates44269.(a)The state board shall issue a rebate for the installation of an electric vehicle charging station to a property owner or lessee in the following amounts:
(1)Two thousand dollars ($2,000) for the first year of installation.
(2)One thousand five hundred dollars ($1,500) following the first year of installation.
(3)One thousand dollars ($1,000) following the second year of installation.
(b)The property owner or lessee shall first place the electric vehicle charging station in service during the calendar year for which the rebate is claimed.
(c)The property owner or lessee shall maintain the electric vehicle charging station for a minimum period of 60 months. If the property owner or lessee does not maintain the electric vehicle charging station for a minimum period of 60 months, the state board shall seek reimbursement for the entire amount of the rebates previously issued pursuant to subdivision (a) from the property owner or lessee who had received those rebates.
(d)The property owner or lessee may not claim a rebate pursuant to subdivision (a) for the installation of an electric vehicle charging station if an existing electric vehicle charging station has been removed from the property within the preceding 12 months.
(e)(1)The property owner or lessee may receive rebates for the installation of up to two electric vehicle charging stations for use on a residential property.
(2)The property owner or lessee may receive rebates for the installation of up to 10 electric vehicle charging stations for use on a commercial or multifamily property.
(f)The state board shall adopt regulations implementing this chapter.
44269.5.Moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation pursuant to this chapter.
SEC. 5.Section 6011 of the Revenue and Taxation Code is amended to read:6011.(a)Sales price means the total amount for which tangible personal property is sold or leased or rented, as the case may be, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold.
(2)The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(b)The total amount for which the property is sold or leased or rented includes all of the following:
(1)Any services that are a part of the sale.
(2)Any amount for which credit is given to the purchaser by the seller.
(3)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(c)Sales price does not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)The amount charged for property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The amount charged for labor or services rendered in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 or 4091 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property, measured by a stated percentage of sales price or gross receipts, whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the purchase of the property is made.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
SEC. 6.Section 6012 of the Revenue and Taxation Code is amended to read:6012.(a)Gross receipts mean the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:
(1)The cost of the property sold. However, in accordance with any rules and regulations as the board may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his or her vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business. If that deduction is taken by the retailer, no refund or credit will be allowed to his or her vendor with respect to the sale of the property.
(2)The cost of the materials used, labor or service cost, interest paid, losses, or any other expense.
(3)The cost of transportation of the property, except as excluded by other provisions of this section.
(4)The amount of any tax imposed by the United States upon producers and importers of gasoline and the amount of any tax imposed pursuant to Part 2 (commencing with Section 7301) of this division.
(b)The total amount of the sale or lease or rental price includes all of the following:
(1)Any services that are a part of the sale.
(2)All receipts, cash, credits and property of any kind.
(3)Any amount for which credit is allowed by the seller to the purchaser.
(c)Gross receipts do not include any of the following:
(1)Cash discounts allowed and taken on sales.
(2)Sale price of property returned by customers when that entire amount is refunded either in cash or credit, but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. For the purpose of this section, refund or credit of the entire amount shall be deemed to be given when the purchase price less rehandling and restocking costs are refunded or credited to the customer. The amount withheld for rehandling and restocking costs may be a percentage of the sales price determined by the average cost of rehandling and restocking returned merchandise during the previous accounting cycle.
(3)The price received for labor or services used in installing or applying the property sold.
(4)(A)The amount of any tax (not including, however, any manufacturers or importers excise tax, except as provided in subparagraph (B)) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
(B)The amount of manufacturers or importers excise tax imposed pursuant to Section 4081 or 4091 of the Internal Revenue Code for which the purchaser certifies that he or she is entitled to either a direct refund or credit against his or her income tax for the federal excise tax paid or for which the purchaser issues a certificate pursuant to Section 6245.5.
(5)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California upon or with respect to retail sales of tangible personal property measured by a stated percentage of sales price or gross receipts whether imposed upon the retailer or the consumer.
(6)The amount of any tax imposed by any city, county, city and county, or rapid transit district within the State of California with respect to the storage, use or other consumption in that city, county, city and county, or rapid transit district of tangible personal property measured by a stated percentage of sales price or purchase price, whether the tax is imposed upon the retailer or the consumer.
(7)Separately stated charges for transportation from the retailers place of business or other point from which shipment is made directly to the purchaser, but the exclusion shall not exceed a reasonable charge for transportation by facilities of the retailer or the cost to the retailer of transportation by other than facilities of the retailer. However, if the transportation is by facilities of the retailer, or the property is sold for a delivered price, this exclusion shall be applicable solely with respect to transportation which occurs after the sale of the property is made to the purchaser.
(8)Charges for transporting landfill from an excavation site to a site specified by the purchaser, either if the charge is separately stated and does not exceed a reasonable charge or if the entire consideration consists of payment for transportation.
(9)The amount of any motor vehicle, mobilehome, or commercial coach fee or tax imposed by and paid to the State of California that has been added to or is measured by a stated percentage of the sales or purchase price of a motor vehicle, mobilehome, or commercial coach.
(10)(A)The amount charged for intangible personal property transferred with tangible personal property in any technology transfer agreement, if the technology transfer agreement separately states a reasonable price for the tangible personal property.
(B)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the price at which the tangible personal property was sold, leased, or offered to third parties shall be used to establish the retail fair market value of the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(C)If the technology transfer agreement does not separately state a price for the tangible personal property, and the tangible personal property or like tangible personal property has not been previously sold or leased, or offered for sale or lease, to third parties at a separate price, the retail fair market value shall be equal to 200 percent of the cost of materials and labor used to produce the tangible personal property subject to tax. The remaining amount charged under the technology transfer agreement is for the intangible personal property transferred.
(D)For purposes of this paragraph, technology transfer agreement means any agreement under which a person who holds a patent or copyright interest assigns or licenses to another person the right to make and sell a product or to use a process that is subject to the patent or copyright interest.
(11)The amount of any tax imposed upon diesel fuel pursuant to Part 31 (commencing with Section 60001).
(12)(A)The amount of tax imposed by any Indian tribe within the State of California with respect to a retail sale of tangible personal property measured by a stated percentage of the sales or purchase price, whether the tax is imposed upon the retailer or the consumer.
(B)The exclusion authorized by subparagraph (A) shall only apply to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the satisfaction of the board that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed. Section 1656.1 of the Civil Code shall apply in determining whether or not the retailers have absorbed the sales tax.
(13)(A)The value of a motor vehicle traded in for a qualified motor vehicle if the value of the trade-in motor vehicle is separately stated on the qualified motor vehicle invoice or bill of sale or similar document provided to the purchaser.
(B)For purposes of this paragraph, qualified motor vehicle means a motor vehicle that meets either of the following:
(i)Californias super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016.
(ii)Californias enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
(C)Consistent with Section 2230, moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be available, upon appropriation by the Legislature, for allocation to reimburse counties and cities for any revenue losses resulting from the application of this paragraph.
SEC. 7.Section 5205.5 of the Vehicle Code is amended to read:5205.5.(a)For the purposes of implementing Section 21655.9, the department shall make available for issuance, for a fee determined by the department to be sufficient to reimburse the department for the actual costs incurred pursuant to this section, distinctive decals, labels, and other identifiers that clearly distinguish the following vehicles from other vehicles:
(1)A vehicle that meets Californias super ultra-low emission vehicle (SULEV) standard for exhaust emissions and the federal inherently low-emission vehicle (ILEV) evaporative emission standard, as defined in Part 88 (commencing with Section 88.101-94) of Title 40 of the Code of Federal Regulations.
(2)A vehicle that was produced during the 2004 model year or earlier and meets Californias ultra-low emission vehicle (ULEV) standard for exhaust emissions and the federal ILEV standard.
(3)A vehicle that meets Californias enhanced advanced technology partial zero-emission vehicle (enhanced AT PZEV) standard or transitional zero-emission vehicle (TZEV) standard.
(b)The department shall include a summary of the provisions of this section on each motor vehicle registration renewal notice, or on a separate insert, if space is available and the summary can be included without incurring additional printing or postage costs.
(c)The Department of Transportation shall remove individual HOV lanes, or portions of those lanes, during periods of peak congestion from the access provisions provided in subdivision (a), following a finding by the Department of Transportation as follows:
(1)The lane, or portion thereof, exceeds a level of service C, as discussed in subdivision (b) of Section 65089 of the Government Code.
(2)The operation or projected operation of the vehicles described in subdivision (a) in these lanes, or portions thereof, will significantly increase congestion.
(3)The finding shall also demonstrate the infeasibility of alleviating the congestion by other means, including, but not limited to, reducing the use of the lane by noneligible vehicles or further increasing vehicle occupancy.
(d)The State Air Resources Board shall publish and maintain a listing of all vehicles eligible for participation in the programs described in this section. The board shall provide that listing to the department.
(e)(1)For the purposes of subdivision (a), the Department of the California Highway Patrol and the department, in consultation with the Department of Transportation, shall design and specify the placement of the decal, label, or other identifier on the vehicle. Each decal, label, or other identifier issued for a vehicle shall display a unique number, which shall be printed on, on or affixed to, to the vehicle registration.
(2)Decals, labels, or other identifiers designed pursuant to this subdivision for a vehicle described in paragraph (3) of subdivision (a) shall be distinguishable from the decals, labels, or other identifiers that are designed for vehicles described in paragraphs (1) and (2) of subdivision (a).
(f)(1)Except as provided in paragraph (2), for purposes of paragraph (3) of subdivision (a), the department shall issue no more than 85,000 distinctive decals, labels, or other identifiers that clearly distinguish a vehicle specified in paragraph (3) of subdivision (a).
(2)The department may issue a decal, label, or other identifier for a vehicle that satisfies all of the following conditions:
(A)The vehicle is of a type identified in paragraph (3) of subdivision (a).
(B)The owner of the vehicle is the owner of a vehicle for which a decal, label, or other identifier described in paragraph (1) was previously issued and that vehicle for which the decal, label, or other identifier was previously issued is determined by the department, on the basis of satisfactory proof submitted by the owner to the department, to be a nonrepairable vehicle or a total loss salvage vehicle.
(C)The owner of the vehicle applied for a decal, label, or other identifier pursuant to this paragraph within six months of the date on which the vehicle for which a decal, label, or other identifier was previously issued is declared to be a nonrepairable vehicle or a total loss salvage vehicle.
(f)[Reserved]
(g)If the Metropolitan Transportation Commission, serving as the Bay Area Toll Authority, grants toll-free and reduced-rate passage on toll bridges under its jurisdiction to a vehicle pursuant to Section 30102.5 of the Streets and Highways Code, it shall also grant the same toll-free and reduced-rate passage to a vehicle displaying an identifier issued by the department pursuant to paragraph (1) or (2) of subdivision (a).
(h)(1)Notwithstanding Section 21655.9, and except as provided in paragraph (2), a vehicle described in subdivision (a) that displays a decal, label, or identifier issued pursuant to this section shall be granted a toll-free or reduced-rate passage in high-occupancy toll lanes as described in Section 149.7 of the Streets and Highways Code unless prohibited by federal law.
(2)(A)Paragraph (1) does not apply to the imposition of a toll imposed for passage on a toll road or toll highway, highway that is not a high-occupancy toll lane as described in Section 149.7 of the Streets and Highways Code.
(B)On or before March 1, 2014, paragraph (1) does not apply to the imposition of a toll imposed for passage in lanes designated for tolls pursuant to the federally supported value pricing and transit development demonstration program operated pursuant to Section 149.9 of the Streets and Highways Code for State Highway Route 10 or 110.
(C)Paragraph (1) does not apply to the imposition of a toll charged for crossing a state-owned bridge.
(i)If the Director of Transportation determines that federal law does not authorize the state to allow vehicles that are identified by distinctive decals, labels, or other identifiers on vehicles described in subdivision (a) to use highway lanes or highway access ramps for high-occupancy vehicles regardless of vehicle occupancy, the Director of Transportation shall submit a notice of that determination to the Secretary of State.
(j)This section shall become inoperative on January 1, 2019, or the date the federal authorization pursuant to Section 166 of Title 23 of the United States Code expires, or the date the Secretary of State receives the notice described in subdivision (i), whichever occurs first, and, as of January 1, 2019, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2019, deletes or extends the dates on which it becomes inoperative and is repealed.
SECTION 1.Section 44274 of the Health and Safety Code is amended to read:44274.(a)The Air Quality Improvement Program is hereby created. The program shall be administered by the state board, in consultation with the districts. The state board shall develop guidelines to implement the program. Prior to the adoption of the guidelines, the state board shall hold at least one public hearing. In addition, the state board shall hold at least three public workshops with at least one workshop in northern California, one in the central valley, and one in southern California. The purpose of the program shall be to fund, upon appropriation by the Legislature, air quality improvement projects relating to fuel and vehicle technologies. The primary purpose of the program shall be to fund projects to reduce criteria air pollutants, improve air quality, and provide funding for research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.
(b)The state board shall provide preference in awarding funding to those projects with higher benefit-cost scores that maximize the purposes and goals of the Air Quality Improvement Program. The state board also may give additional preference based on the following criteria, as applicable, in funding awards to projects:
(1)Proposed or potential reduction of criteria or toxic air pollutants.
(2)Contribution to regional air quality improvement.
(3)Ability to promote the use of clean alternative fuels and vehicle technologies as determined by the state board, in coordination with the commission.
(4)Ability to achieve climate change benefits in addition to criteria pollutant or air toxic emissions reductions.
(5)Ability to support market transformation of Californias vehicle or equipment fleet to utilize low carbon or zero-emission technologies.
(6)Ability to leverage private capital investments.
(c)The program shall be limited to competitive grants, revolving loans, loan guarantees, loans, and other appropriate funding measures that further the purposes of the program. Projects to be funded shall include only the following:
(1)Onroad and off-road equipment projects that are cost effective.
(2)Projects that provide mitigation for off-road gasoline exhaust and evaporative emissions.
(3)Projects that provide research to determine the air quality impacts of alternative fuels and projects that study the life-cycle impacts of alternative fuels and conventional fuels, the emissions of biofuel and advanced reformulated gasoline blends, and air pollution improvements and control technologies for use with alternative fuels and vehicles.
(4)Projects that augment the University of Californias agricultural experiment station and cooperative extension programs for research to increase sustainable biofuels production and improve the collection of biomass feedstock.
(5)Incentives for small off-road equipment replacement to encourage consumers to replace internal combustion engine lawn and garden equipment.
(6)Incentives for medium- and heavy-duty vehicles and equipment mitigation, including all of the following:
(A)Lower emission schoolbus programs.
(B)Electric, hybrid, and plug-in hybrid onroad and off-road medium- and heavy-duty equipment.
(C)Regional air quality improvement and attainment programs implemented by the state or districts in the most impacted regions of the state.
(7)Workforce training initiatives related to advanced energy technology designed to reduce air pollution, including state-of-the-art equipment and goods, and new processes and systems. Workforce training initiatives funded shall be broad-based partnerships that leverage other public and private job training programs and resources. These partnerships may include, but are not limited to, employers, labor unions, labor-management partnerships, community organizations, workforce investment boards, postsecondary education providers including community colleges, and economic development agencies.
(8)Incentives to identify and reduce emissions from high-emitting light-duty vehicles.
(d)(1)Beginning January 1, 2011, the state board shall submit to the Legislature a biennial report to evaluate the implementation of the Air Quality Improvement Program established pursuant to this chapter.
(2)The report shall include all of the following:
(A)A list of projects funded by the Air Quality Improvement Account.
(B)The expected benefits of the projects in promoting clean, alternative fuels and vehicle technologies.
(C)The improvement in air quality and public health, greenhouse gas emissions reductions, and the progress made toward achieving these benefits.
(D)The impact of the projects in making progress toward the attainment of state and federal air quality standards.
(E)Recommendations for future actions.
(3)The state board may include the information required to be reported pursuant to paragraph (1) in an existing report to the Legislature as the state board deems appropriate.
(a)The Air Quality Improvement Program is hereby created. The program shall be administered by the state board, in consultation with the districts. The state board shall develop guidelines to implement the program. Prior to the adoption of the guidelines, the state board shall hold at least one public hearing. In addition, the state board shall hold at least three public workshops with at least one workshop in northern California, one in the central valley, and one in southern California. The purpose of the program shall be to fund, upon appropriation by the Legislature, air quality improvement projects relating to fuel and vehicle technologies. The primary purpose of the program shall be to fund projects to reduce criteria air pollutants, improve air quality, and provide funding for research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.
(b)The state board shall provide preference in awarding funding to those projects with higher benefit-cost scores that maximize the purposes and goals of the Air Quality Improvement Program. The state board also may give additional preference based on the following criteria, as applicable, in funding awards to projects:
(1)Proposed or potential reduction of criteria or toxic air pollutants.
(2)Contribution to regional air quality improvement.
(3)Ability to promote the use of clean alternative fuels and vehicle technologies as determined by the state board, in coordination with the commission.
(4)Ability to achieve climate change benefits in addition to criteria pollutant or air toxic emissions reductions.
(5)Ability to support market transformation of Californias vehicle or equipment fleet to utilize low carbon or zero-emission technologies.
(6)Ability to leverage private capital investments.
(c)The program shall be limited to competitive grants, revolving loans, loan guarantees, loans, and other appropriate funding measures that further the purposes of the program. Projects to be funded shall include only the following:
(1)Onroad and off-road equipment projects that are cost effective.
(2)Projects that provide mitigation for off-road gasoline exhaust and evaporative emissions.
(3)Projects that provide research to determine the air quality impacts of alternative fuels and projects that study the life-cycle impacts of alternative fuels and conventional fuels, the emissions of biofuel and advanced reformulated gasoline blends, and air pollution improvements and control technologies for use with alternative fuels and vehicles.
(4)Projects that augment the University of Californias agricultural experiment station and cooperative extension programs for research to increase sustainable biofuels production and improve the collection of biomass feedstock.
(5)Incentives for small off-road equipment replacement to encourage consumers to replace internal combustion engine lawn and garden equipment.
(6)Incentives for medium- and heavy-duty vehicles and equipment mitigation, including all of the following:
(A)Lower emission schoolbus programs.
(B)Electric, hybrid, and plug-in hybrid onroad and off-road medium- and heavy-duty equipment.
(C)Regional air quality improvement and attainment programs implemented by the state or districts in the most impacted regions of the state.
(7)Workforce training initiatives related to advanced energy technology designed to reduce air pollution, including state-of-the-art equipment and goods, and new processes and systems. Workforce training initiatives funded shall be broad-based partnerships that leverage other public and private job training programs and resources. These partnerships may include, though but are not limited to, employers, labor unions, labor-management partnerships, community organizations, workforce investment boards, postsecondary education providers including community colleges, and economic development agencies.
(8)Incentives to identify and reduce emissions from high-emitting light-duty vehicles.
(d)(1)Beginning January 1, 2011, the state board shall submit to the Legislature a biennial report to evaluate the implementation of the Air Quality Improvement Program established pursuant to this chapter.
(2)The report shall include all of the following:
(A)A list of projects funded by the Air Quality Improvement Account.
(B)The expected benefits of the projects in promoting clean, alternative fuels and vehicle technologies.
(C)Improvement The improvement in air quality and public health, greenhouse gas emissions reductions, and the progress made toward achieving these benefits.
(D)The impact of the projects in making progress toward the attainment of state and federal air quality standards.
(E)Recommendations for future actions.
(3)The state board may include the information required to be reported pursuant to paragraph (1) in an existing report to the Legislature as the state board deems appropriate.
|
Date
|
Status
|
|---|---|
| Feb 10, 2016 | Read first time. To print. |
| Feb 11, 2016 | From printer. May be heard in committee March 12. |
| Mar 17, 2016 | Referred to Com. on TRANS. |
| Mar 18, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar 28, 2016 | Re-referred to Com. on TRANS. |
| Apr 4, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Apr 5, 2016 | Re-referred to Com. on TRANS. |
| Apr 12, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on REV. & TAX. (Ayes 10. Noes 5.) (April 11). |
| Apr 13, 2016 | Read second time and amended. |
| Apr 14, 2016 | Re-referred to Com. on REV. & TAX. |
| Apr 18, 2016 | In committee: Set, first hearing. Referred to REV. & TAX. suspense file. |
| Apr 19, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 3.) (April 18). Re-referred to Com. on APPR. |
| May 11, 2016 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 27, 2016 | In committee: Held under submission. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 18, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
|
| Apr 11, 2016 | Do pass as amended and be re-referred to the Committee on [Revenue and Taxation] | Assembly Standing Committee on Transportation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Alliance Of Automobile Manufacturers Inc. | ** Support | Apr 11, 2016 |
| California New Car Dealers Association | ** Support | Apr 11, 2016 |
| California Taxpayers' Association | ** Against | Apr 11, 2016 |
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1851
Author:(Gray) – As Amended Ver:April 13, 2016
Policy Committee: | Transportation | Vote: | 10 - 5 |
Revenue and Taxation | 6 - 3 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill creates and expands a broad array of incentives to increase the sales of clean air vehicles. Specifically, this bill:
- Requires the Air Resources Board, beginning January 1, 2017, until January 1, 2026, to provide the following Clean Vehicle Rebate Program (CVRP) rebates, on the first $60,000 of the manufacturer's suggested retail price (MSRP) or the final sales price, whichever is lower:
- 10% qualified plug-in hybrid electric vehicles;
- 15% for qualified plug-in battery-electric vehicles; and,
- 25% for qualified fuel cell vehicles;
- Requires the following rebates, as in (1), for residents of disadvantaged communities:
- 40% for qualified plug-in hybrid electric vehicles;
- 45% for qualified plug-in battery-electric vehicles; and,
- 55% for qualified fuel cell vehicles.
- Requires the ARB to suspend the CVRP pre-approval process if there are insufficient funds available to award CVRP incentives and to provide dealers and consumers with no less than
30-days advanced notice if the pre-approval process is to be suspended. - Requires the ARB, until January 1, 2026, to issue rebates to a property owner or lessee for the purchase and installation of up to two electric vehicle (EV) charging stations on residential properties, for residents of disadvantaged communities, and up to 10 EV charging stations on commercial or multifamily properties, with rebates provided as follows:
- $2,000 for the first year of installation;
- $1,500 following the first year of installation; and,
- $1,000 following the second year of installation.
- Requires that monies in the Greenhouse Gas Reduction Fund (GGRF) be available, upon appropriation by the Legislature, for the enhanced CVRP rebates and the charging station rebates.
- Removes the cap on the green sticker program, thereby allowing an unlimited number of qualifying vehicles (plug-in electric hybrid vehicles) access to high-occupancy vehicle lanes with single occupants.
- Excludes until January 1, 2026, from the sales price or gross receipts on which Sales and Use Tax (SUT) is imposed, the value of a motor vehicle traded in for a "qualified motor vehicle" (QMV), which is defined as meeting either:
- California's super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016; or,
- California's enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
- Provides that moneys from the GGRF, upon appropriation of the Legislature, are available to reimburse counties and cities for any SUT revenue losses resulting from the SUT exclusion.
FISCAL EFFECT:
- To create and expand various incentive programs, annual administrative costs to the ARB will be around $800,000 ongoing for five full-time positions plus part-time legal support. [GGRF]
- CVRP Enhancements. The potential cost of the increased rebate amounts will put substantial funding pressure on the CVRP. The total cost will depend on the number, type, and MSRP of vehicles for which rebates are obtained and the proportion of vehicles sold to resident of disadvantage communities and thus eligible for the much higher rebates. According to the ARB, the current CRVP could fund rebates for up to 55,000 in 2015-16 at a cost of $123 million. (In the 12 months ending March 31, 2016, almost 48,000 rebates were issued at cost of $103 million.) Based on assumptions about the factors discussed above, providing rebates pursuant to this bill for 55,000 vehicles could cost over $500 million. [GGRF]
- Charging Stations. Cost are unknown, but likely in the tens of millions of dollars annually. [GGRF]
- Tax Exemption. The General Fund revenue loss associated with the SUT exemption is estimated at $40 million in 2017-18, and would likely increase slightly each year assuming increase sales of qualifying vehicles. Of this amount, about $21 million would be a revenue loss to cities and counties, which, subject to an appropriation, could be backfilled by the GGRF.
COMMENTS:
- Purpose. According to the author, "…California's consumers are not purchasing ZEVs [zero emission vehicles] at a rate that will meet the California Air Resources Board's ZEV mandate of 15.4% of new vehicles delivered for sale by 2025. In 2015, California's new car dealers sold more than two million new vehicles with a combined 3.1% of those sales comprising ZEVs and plug-in hybrid vehicles. The market share for these vehicles dropped from 3.2% in 2015. We estimate that 308,000 ZEVs must be delivered for sale in California by 2025; in just nine years this represents 25% of all vehicles other than SUVs, pickups and vans. This would be an unprecedented adoption rate for new technology in automotive history.
"Nations throughout Europe provide massive incentives up to 50 percent of the vehicle's MSRP. In these countries the adoption rate for alternative fueled vehicles is much more favorable than in the US, including California." (It should be noted that European countries tend to have much higher gasoline prices than in the U.S.)
- Additional Price Incentives. Under the existing CRVP, ZEV hydrogen fuel cell vehicles qualify for a $5,000 rebate; ZEV battery electric vehicles qualify for a $2,500 rebate; and plug-in hybrid electric vehicles qualify for a $1,500 rebate. There is also a federal tax credit of $2,500 to $7,500 for the purchase of an electric vehicle depending on its battery capacity.
This bill would increase the above rebates substantially. For example, individuals purchasing a Chevy Volt currently receive a $1,500 rebate. Under this bill, the consumer would receive a $3,300 rebate (or $13,000 for disadvantaged community residents). For battery electric vehicles (such as a Nissan LEAF) for which current rebates are set at $2,500, this bill would provide rebates of $4,350, or $13,050 for disadvantaged community residents.
As discussed in the Assembly Transportation Committee's analysis of this bill, "If the state wishes to meet its clean air and climate goals, it must definitely help complete the transformation of the passenger fleet from traditional petroleum fuel vehicles to zero- and near-zero-emission vehicles. Yet despite spending millions of dollars, lagging sales of ZEVs leaves one wondering if the efforts have been for not or if additional effort, and expense, should be imparted. This is a complex question with even more complex answers and it is unclear if incentives alone, no matter how much money is spent, will encourage buyers to adopt ZEVs, particularly when gas prices are low and the cost of conventional vehicles is competitive or lower than ZEVs."
- Related Legislation. AB 1964 (Bloom), pending in the Assembly, creates a green sticker program (upon expiration of the existing program) to allow plug-in hybrid electric vehicles access to HOV lanes for a three-year period, regardless of vehicle occupancy level.
AB 1965 (Cooper), pending on this committee's Suspense file, expands the Enhanced Fleet Modernization Program Plus-Up (EFMP Plus-Up) in disadvantaged communities and in additional areas with poor air quality.
AB 1691 (Gipson), on today's committee agenda, requires the ARB to enhance EFMP guidelines to ensure that the program is not misused and that priority is given to replacement of the oldest, high-mileage vehicles. .
AB 1710 (Calderon), also on today's agenda, requires the ARB to establish a comprehensive incentive program for purchase of (ZEVs) or near zero-emission vehicles (NZEVs), and provides specified sales tax and personal income tax exemptions for purchase of such vehicles.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
ABPCA Bill Id:AB 1851 (
Author:Gray) – As Amended Ver:April 13, 2016
Majority vote. Fiscal committee.
SUBJECT: Vehicular air pollution: reduction incentives
SUMMARY: Creates and expands a broad array of incentive programs to increase the sales and use of certain clean air vehicles, funded by the Greenhouse Gas Reduction Fund (GGRF), including increasing rebates offered by the Clean Vehicle Rebate Project (CVRP), issuing rebates for the purchase and installation of electric vehicle (EV) charging stations, removing the cap on green high-occupancy vehicle (HOV) lane stickers, and providing a partial Sales and Use Tax (SUT) exclusion for the purchase of a qualified motor vehicle (QMV). Specifically, the tax-related provisions of this bill:
- Exclude, from the sales price or gross receipts on which SUT is imposed, the value of a motor vehicle traded in for a QMV.
- Specify that the value of the trade-in motor vehicle must be separately stated on the QMV invoice, bill of sale, or similar document in order for the SUT exclusion to apply.
- Define a QMV as a motor vehicle that meets either of the following:
- California's super ultra-low emission vehicle standard for exhaust emissions and the federal inherently low-emission vehicle evaporative emission standard, as defined in Part 88 of Title 40 of the Code of Federal Regulations as that part read on January 1, 2016; or,
- California's enhanced advanced technology partial zero-emission vehicle standard or transitional zero-emission vehicle standard.
- Provide that moneys from the GGRF, upon appropriation of the Legislature, are available to reimburse counties and cities for any SUT revenue losses resulting from the SUT exclusion.
- Provide that the SUT exclusion will remain in effect until January 1, 2026, and is repealed as of that date.
EXISTING LAW:
- Imposes a SUT on the sale of, or the storage, use, or other consumption of, tangible personal property (TPP), unless specifically exempted.
- Provides that the SUT must be computed based on the sales price or gross receipts of the TPP, unless specifically excluded.
- Specifies that a portion of the SUT fund city and county government, and authorizes cities and counties to impose additional Transactions and Use Taxes (TUTs).
- Grants the California Air Resources Board (CARB) authority for monitoring and regulating sources emitting greenhouse gases (GHGs), including the use of market-based compliance mechanisms (cap-and-trade).
- Requires all moneys, except for fines and penalties, collected by CARB from cap-and-trade, be deposited into the GGRF to be available upon appropriation by the Legislature.
- Establishes the Air Quality Improvement Program (AQIP) administered by CARB for funding projects related to the reduction of air pollutants and improvement of air quality. Pursuant to the AQIP, CARB established the CVRP to promote the production and use of zero-emission vehicles (ZEVs) and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to help California fleets purchase hybrid and zero-emission trucks and buses.
- Specifies goals, pursuant to the Charge Ahead California Initiative administered by CARB, to place in service at least one million ZEVs and near-zero-emission vehicles by January 1, 2023.
FISCAL EFFECT: The State Board of Equalization's (BOE) fiscal estimate for this bill is currently pending.
COMMENTS:
- Author's Statement: The author has provided the following statement in support of this bill:
California is at the forefront of battling climate change and reducing greenhouse gas emissions. To achieve the desired greenhouse gas emission reductions that policy makers are striving to reach, a massive increase in zero emission vehicles (ZEVs) sold by California's new car dealers must also take place. Unfortunately California's consumers are not purchasing ZEVs at a rate that will meet the California Air Resources Board's ZEV mandate of 15.4 percent of new vehicles delivered for sale by 2025.
In 2015, California's new car dealers sold more than two million new vehicles with a combined 3.1 percent of those sales comprising ZEVs and plug-in hybrid vehicles. The market share for these vehicles dropped from 3.2 percent in 2015. We estimate that 308,000 ZEVs must be delivered for sale in California by 2025; in just nine years this represents 25 percent of all vehicles other than SUVs, pickups and vans. This would be an unprecedented adoption rate for new technology in automotive history.
Nations throughout Europe provide massive incentives up to 50 percent of the vehicle's MSRP. In these countries the adoption rate for alternative fueled vehicles is much more favorable than in the US, including California.
- Arguments in Support: Proponents of this bill state that "the best way to break through to grab a customer's attention is to address the vehicle's price" and that "incentives in the automotive industry always work best when a customer sees the rebate applied to the purchase or lease of their vehicle at the dealership." As a result, this bill would "accelerate customer demand" and "help make ZEVs more affordable."
- Scope of This Bill: This bill provides a partial SUT exclusion for QMVs, and defines "QMVs" generally as vehicles that qualify for either the white or green HOV lane stickers (battery electric, hydrogen fuel cell, and certified compressed natural gas vehicles, or plug-in hybrid electric vehicles, respectively). Some car models considered QMVs include the Tesla Model S, BMW i3, Nissan Leaf, and the Chevrolet Volt. According to the author's office, the intent of this bill is to only provide a SUT exclusion on the sale or lease of new QMVs.
- SUT Exclusion for QMVs: This bill provides a partial SUT exclusion if a consumer trades in an older vehicle at the time of purchasing a QMV. The exclusion is calculated by subtracting the trade-in value of the older vehicle from the purchase price of the QMV. For example, the Tesla Model S has a manufacturer's suggested retail price (MSRP) of $70,000. If a consumer trades in their old BMW and receives $15,000 for the car, then $15,000 would be excluded for SUT purposes. The consumer would only pay SUT on the differential value, in this case $55,000. Under the 7.5% SUT rate in California, assuming the Tesla Model S is purchased in a local jurisdiction where additional local TUT is not imposed, the consumer would pay $4,125 instead of $5,250 in SUT, a savings of $1,125.
- What Is a "Tax Expenditure"? Existing law provides various credits, deductions, exclusions, and exemptions for particular taxpayer groups. In the late 1960s, United States Treasury officials began arguing that these features of the tax law should be referred to as "expenditures," since they are generally enacted to accomplish some governmental purpose and there is a determinable cost associated with each (in the form of forgone revenues). This bill would enact a new tax expenditure program in the form of a partial SUT exclusion for QMVs.
- Tax Expenditure vs. Direct Expenditure: As the Department of Finance notes in its annual Tax Expenditure Report, there are several key differences between tax expenditures and direct expenditures. First, tax expenditures are reviewed less frequently than direct expenditures once they are put in place. This can offer taxpayers greater certainty, but it can also result in tax expenditures remaining part of the tax code without demonstrating any public benefit. Second, there is generally no control over the amount of revenue losses associated with any given tax expenditure. Finally, it should also be noted that, once enacted, it takes a two-thirds vote to rescind an existing tax expenditure absent a sunset date.
This bill includes a sunset date of January 1, 2026 for both the non-tax related rebate portions of the bill and the SUT exclusion. However, this Committee typically recommends a five-year sunset date on tax expenditures to evaluate whether the benefits outweigh the costs. With regard to ZEVs, gas price increases and technological efficiencies that improve vehicle performance and reduce MSRP may naturally stimulate more demand without need for a long-term tax expenditure. The Committee may wish to consider whether to shorten the sunset date for the SUT exclusion.
- One More Incentive: Federal, state, and local governments provide a myriad of subsidies for alternative fuel vehicles. There is a federal tax credit of $2,500 to $7,500 for the purchase of an EV depending on its battery capacity. Under the CVRP, ZEV hydrogen fuel cell vehicles qualify for a $5,000 rebate; ZEV battery electric vehicles qualify for a $2,500 rebate; and plug-in hybrid electric vehicles qualify for a $1,500 rebate. Non-cash incentives such as unrestricted access to California HOV lanes, reduced reliance on gas, and free parking and recharging at businesses and workplaces also motivate alternative fuel vehicle consumers.
In addition to the SUT exclusion, this bill expands on existing rebate and HOV lane incentives, and creates a new incentive for installation of EV charging stations to help alleviate range anxiety, a commonly cited concern deterring more widespread adoption of ZEVs. Although it is unclear what the marginal benefit may be in creating one more incentive for purchasing a ZEV, making the SUT exclusion contingent on trading in an older vehicle may at least help take conventional vehicles associated with high GHG emissions off the road. Similar to how the value of existing tax credit and rebate programs increases with the environmental benefits of the vehicle, the Committee may wish to consider limiting application of the SUT exclusion to transactions in which the traded-in vehicle emits above-average GHG pollutants.
- Appropriation from the GGRF: The GGRF provides funding for a multitude of state policy priorities including CVRP, energy and water efficiency projects, affordable housing, and mass transit. This bill proposes to add reimbursement of city and county revenue losses resulting from the SUT exclusion to the list, in addition to funding this bill's other provisions. Under existing law, SUT is collected on a 7.5% statewide base rate with a state allocation and a local allocation for cities and counties, with some cities and counties levying additional TUT on top of the base rate. In reducing the sales price of a ZEV, this bill would otherwise cause cities and counties to get a cut of a smaller revenue pool. Although the SUT exclusion would also result in state General Fund revenue loss, this bill does not propose state reimbursement from the GGRF.
The California New Car Dealers Association estimates that annual expenditures for all the provisions of this bill could range from $750 to $2 billion annually. It is important to note that the Governor's proposed fiscal year (FY) 2016-2017 budget includes a $3.1 billion cap-and-trade plan, $1.2 billion of which is already subject to continuous appropriation. Since expenditures from the GGRF for this bill alone may exceed the account's capacity, the Committee may wish to consider whether alternative or additional funding sources should be identified for the tax expenditure proposed in this bill.
- Double Referral: This bill was double-referred to the Assembly Committee on Transportation, which passed this bill on April 11, 2016, with a vote of 10-5. For additional discussion of the Clean Vehicle Rebate Program, rebates for EV charging stations, and HOV lane stickers related to this bill, please refer to the analysis prepared by the Assembly Committee on Transportation.
- Related Legislation: AB 1710 (Calderon) would provide a partial SUT exclusion and a Personal Income Tax credit and deduction for purchasing near-zero or ZEVs. AB 1710 is scheduled to be heard by this Committee today.
AB 945 (Ting) would have provided a partial SUT exemption for specified QMVs. This bill was held by the Assembly Committee on Appropriations.
REGISTERED SUPPORT / OPPOSITION:
Support
Alliance of Automobile Manufacturers
California New Car Dealers Association
Opposition
None on file
Analysis Prepared by: Irene Ho / REV. & TAX. / (916) 319-2098
Date of Hearing: April 11, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
ABPCA Bill Id:AB 1851 (
Author:Gray) – As Amended Ver:April 4, 2016
SUBJECT: Vehicular air pollution: reduction incentives
SUMMARY: Creates and expands a broad array of incentive programs to increase the sales and use of certain clean air vehicles. Specifically, this bill:
- Makes findings regarding California's climate change goals and declares the intent of the Legislature to provide more realistic incentives to move customer demand for zero-emission-vehicles (ZEV) to meet the state's greenhouse gas (GHG) emission reduction goals.
- Requires California Air Resources Board (ARB), beginning on January 1, 2017, to limit Clean Vehicle Rebate Program (CVRP) rebates to vehicles with an manufacturer's suggested retail price (MSRP) of $60,000.
- Requires the ARB, beginning January 1, 2017, to provide CVRP rebates in the following amounts:
- 10% of the MSRP for qualified plug-in hybrid electric vehicles;
- 15% of the MSRP for qualified plug-in battery-electric vehicles; and,
- 25% of the MSRP for qualified fuel cell vehicles;
- Requires ARB, beginning January 1, 2017, to increase CVRP rebates to provide the following incentive amounts for residents of a disadvantaged community:
- 40% of the MSRP for qualified plug-in hybrid electric vehicles;
- 45% of the MSRP for qualified plug-in battery-electric vehicles; and,
- 55% of the MSRP for qualified fuel cell vehicles.
- Requires ARB to implement a process to allow eligible CVRP applicants to obtain prompt pre-approval prior to purchasing or leasing a qualifying vehicle and to implement a process that allows new motor vehicle dealers to be refunded any CVRP incentive amount applied to the applicant's conditional sales contract or other vehicle purchase or lease agreement in no fewer than seven days.
- Authorizes a new car dealer to apply the CVRP incentive amount to the applicant's conditional sales contract or other vehicle purchase or lease agreement as a down payment or amount due at lease sign or delivery.
- Requires ARB to suspend the CVRP pre-approval process if there are insufficient funds available to award CVRP incentives to provide dealers and consumers with no less than
30-days advanced notice if the pre-approval process is suspended. - Requires ARB to adopt regulations implementing the enhanced CVRP rebates and related provisions.
- Requires that GGRF monies, be available upon appropriation by the Legislature, for the enhanced CVRP rebates.
- Requires ARB to issue rebates to a property owner or lessee for the purchase and installation of up to two electric vehicle (EV) charging stations on residential properties for residents of disadvantaged communities and up to 10 EV charging stations on commercial or multifamily properties, with rebates provided as follows:
- $2,000 for the first year of installation;
- $1,500 following the first year of installation; and,
- $1,000 following the second year of installation.
- Requires, to qualify for the EV charging station rebate, that the EV charging station be in service during the calendar year in which the rebate is claimed.
- Requires that the property owner or lessee who receives rebates for the installation of an EV charging system maintain the charging station for a minimum of 60 months.
- Requires ARB to verify that EV charging systems that are installed using the rebates remain operative for a minimum of five years. Failure to meet this requirement would result in the rebate amount being reclaimed by ARB.
- Requires that the rebate recipient not claim a rebate for the installation of an EV charging station if an existing EV charging station has been removed from the property in the previous 12 months.
- Provides that ARB shall limit eligible EV charging station rebates to Level 2 stations
(220 volt chargers) and rapid charging ports. - Requires ARB to issue regulations with regard to EV charging station rebates.
- Requires that GGRF monies be available, upon appropriation by the Legislature, for allocation for EV charging system incentives.
- Requires, for the purposes of calculating sales and use tax (SUT) that the value of a trade-in vehicle be deducted from the sales price of a qualifying clean air vehicle and that GGRF funds be used, upon appropriation by the Legislature, to reimburse counties and cities for any revenue losses that may result.
- Removes the cap on the green high-occupancy vehicle (HOV) lane stickers thereby allowing an unlimited number of qualifying vehicles (plug-in electric hybrid vehicles) access to HOVs with single occupants.
- Makes related, clarifying amendments.
- Defines a variety of terms.
EXISTING LAW:
- Requires ARB, pursuant to AB 32 (Núñez), Chapter 488, Statutes of 2006, to develop a plan to reduce GHG emissions to 1990 levels by 2020. Under AB 32, ARB is authorized to include the use of market-based mechanisms to comply with these regulations (cap and trade).
- Established the GGRF in the State Treasury and requires all funds collected pursuant to cap and trade, with certain limited exceptions, be deposited into the fund for appropriation by the Legislature.
- Created the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP), pursuant to AB 118 (Núñez), Chapter 750, Statutes of 2007, and extended by AB 8 (Perea), Chapter 401, Statutes of 2013, which requires the California Energy Commission (Commission) to fund projects that develop and deploy technologies and alternative and renewable fuels in the marketplace to help meet the state's climate change goal including, but not necessarily limited to, expanding alternative fueling infrastructure such as EV charging systems.
- Created the Air Quality Improvement Program (AQIP), administered by ARB and the Commission, in consultation with local air districts, to fund specified air quality improvement projects which includes the CVRP, administered by ARB, to promote the production and use of ZEVs.
- Requires, pursuant to SB 535 (de León), Chapter 830, Statutes of 2013, that a minimum of 25% of the available monies in the GGRF go to projects that provide benefits to identified disadvantaged communities and that a minimum of 10% of the available monies in the fund go to projects located within identified disadvantaged communities.
- Established the Charge Ahead California Initiative pursuant to SB 1275 (de León), Chapter 530, Statutes of 2014, that, among other things, included the goal of placing into service at least one million ZEVs and near-zero emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and near-zero-emission vehicles.
- Authorizes a local jurisdiction to impose SUT on the sale of, storage, use, or other consumption of tangible personal property unless specifically exempted.
- Established, pursuant to Executive Order B-16-2012, the goal of placing 1.5 million ZEVs on California's roadways by 2025.
- Adopted, pursuant to ARB's Advanced Clean Cars Program, a variety of strategies to convert the passenger fleet to zero- and near-zero emission vehicles by advancing vehicle emission standards for vehicles which included the requirement that by 2025, ZEV sales would represent 15% of sales in 2025.
- Allows certain qualifying ZEVs to utilize HOV lanes regardless of occupancy level to incentivize the purchase and use of these clean vehicles.
FISCAL EFFECT: Unknown
COMMENTS: With the passage of AB 32, California committed to reducing GHG emissions. Given that the transportation sector contributes nearly 40% of emissions, it makes sense why so many emissions reduction programs target the transportation sector. While AB 1851 focuses solely on the light-duty (or passenger) fleet, it is important to recognize that the light-duty vehicle sector is only one component of a much larger transportation system that includes ports, trucking, maritime, and rail industries, each of which is a significant contributor of criteria pollutants and GHG emissions. It is also important to recognize that the freight sector (which includes heavy-duty trucks, ports, highway infrastructure, and rail) has some of the greatest adverse effects on disadvantaged communities because these communities tend to border freight corridors and associated facilities such as warehouses and freight hubs.
This bill focuses on much-needed state efforts to convert the existing light-duty or passenger fleet from predominant use of higher polluting, internal combustion engine (ICE) vehicles to cleaner cars such as zero- and near-zero-emission vehicles. The author points out that recent goals and mandates related to converting the passenger fleet, set forth by the Legislature, the Governor, and ARB, have put increasing pressure on the auto industry to produce and sell these vehicles. Specifically, the author points to ARB's Advanced Clean Cars Program, which requires manufacturers to sell certain percentages of ZEVs. The author contends that while these goals are intended to create pressure and increase adoption of ZEVs, that the mechanisms currently available to dealers to get buyers to consider these vehicles are not working. He specifically points to the current suite of incentives such as CVRP and HOV access as not providing enough incentives for consumers to take action. He notes that market forces outside of a car dealer's control, such as low gas prices, also has an impact on whether or not buyers opt to purchase or lease ZEVs. To illustrate this point, he points to sales data that show in 2015 ZEVs represented 3.1% of new cars sold in California, far from the 25% goal set by the ZEV Mandate for sales in 2025.
The author introduced this bill to provide significant financial incentives to purchase certain clean air vehicles. The author points out that this method has been successfully implemented in Norway where incentives were set at nearly 50% of a qualifying vehicles' price. He notes that these programs have substantially increased sales and improved market penetration. It should also be noted, however, that along with substantial incentives, countries like Norway have also created substantial "disincentives" for purchasing conventional vehicles including increased taxes on these vehicles. This, along with the relatively high cost of fuel and shorter driving distances create circumstances that are substantially different from those in California.
The contention that substantially increasing rebates will automatically spur consumer purchases is likely correct given that rebates would be increased by several orders of magnitude over the current program. For example, individuals purchasing a Chevy Volt currently receive a $1,500 rebate. Under this bill, the consumer would receive a $3,300 or $13,000 for disadvantaged community residents. For battery electric vehicles (such as a Nissan LEAF) for which current rebates are set at $2,500, this bill would provide rebates of $4,350 or $13,050 for disadvantaged community residents. For fuel cell vehicles, where rebates are currently set $5,000, increased rebates pursuant to AB 1851 would be $14,375 or $31,625 for disadvantaged community residents). The important question is whether or not these purchasing habits will be sustained after the program ends. In the state of Georgia, when successful incentive programs were eliminated, electric car sales in the state plummeted by 90%, leaving it open to question whether incentives actually create a lasting effect on buyer behavior or if the incentives only temporarily affect buyer choice insomuch as decision making is influenced solely by the rebate. Overall, the California New Car Dealers Association (CNCDA) estimates that annual expenditures for this program would be in the vicinity of $750 million to $2 billion annually
Vehicle charging incentives: There is little question that EV owners need to have the confidence that they will be able to locate and use EV charging stations so that they can confidently operate their vehicles. Without this assurance, many will simply choose not to purchase EVs. To address these concerns, the author included provisions in this bill that would provide additional incentives for the installation of EV charging stations in single family homes, multi-unit dwellings, and commercial buildings. Specifically, this bill would authorize up to $4,500 in incentive funding, paid over a period of several years, for individuals in disadvantaged communities who wish to install up to two (Level 2 or fast) charging systems. For commercial developments and multi-unit dwelling, individuals would be authorized to receive a $4,500 rebate (per charging system) for the installation of up to ten (Level 2 or fast) EV charging systems. The funding for these rebates would come from the GGRF, upon appropriation by the Legislature. To ensure that the systems are installed and utilized as intended, this bill would require that ARB ensure that the EV charging systems are installed maintained for at least 5 years and, if they are not, ARB would be required to seek reimbursement of the incentive amount from the incentive program recipient.
While the availability of EV charging systems can be an impediment to EV adoption, it is unclear whether incentive programs for the installation of home, commercial, and multi-unit dwelling charging systems are needed. For example, studies show that most EV owners use a standard, 110 outlet to charge their vehicles at home overnight. Given that the program only qualifies individuals for Level 2 or fast charging systems, many may not feel compelled to utilize the incentive funding.
Multi-unit dwellings and commercial buildings present a unique set of challenging circumstances with respect to EV charging system installation. For example, retrofitting a building to accommodate increased loads on the electrical system as can be very costly. Additionally, unless these systems include a payment collection system, many landlords or commercial property owners may pass on installing EV charging systems to avoid these increased costs.
Manufacturer's suggested retail price cap: In an effort to limit rebate amounts, the author has included an MSRP "cap" of $60,000 which would effectively limit buyers who wish to use incentives to vehicles with an MSRP of $60,000 or less. On one hand, it is wise to institute a cap as a mechanism to limit annual program expenditures; however, instituting an MSRP cap would exclude a number of vehicles that would otherwise qualifying (namely Tesla and some Cadillac models). With substantial incentive amounts at stake, it is likely that buyers would steer away from purchases of these higher-priced vehicles. While it could be argued that this could further encourage auto manufactures to lower their price point, it could also be argued that this could harm California-based companies and the dealers that sell these high-priced vehicles.
It is important to note that a similar MSRP cap was suggested by ARB in 2014 as part of proposed CVRP program revisions to address growing concerns incentives were mostly being used by the affluent to purchase expensive vehicles. After receiving numerous complaints about the potential adverse impacts of the cap on the CVRP program and California's economy, as well as concerns as about how the proposal could stifle competition and innovation, ARB ultimately opted not to implement the MSRP cap in the CVRP. While this same argument could be made for the MSRP cap in AB 1851, because incentive amounts are based on a qualifying vehicle's MSRP, eliminating the MSRP cap in this bill would serve to further increase incentive amounts for vehicles and undoubtedly place an increased burden on the GGRF.
Sales tax exemption: The author proposes to increase incentives for the purchase of certain ZEVs by providing that, for the purposes of calculating SUT, that the value of a trade-in vehicle be deducted from the sales price of a qualifying ZEV. This bill addresses potential loss of revenue to local jurisdictions by requiring that they be reimbursed using GGRF revenues. While it is true that ZEVs are comparatively more costly than traditional vehicles, resulting in an increased tax burden on the consumer, these vehicles also provide substantial cost savings to buyers in terms of lower maintenance costs and reduced fueling costs. It is likely these savings, especially over time, would far outweigh the amount that would be offset by the SUT exemption. Additionally, while lowering the tax burden on the buyer would provide a benefit, the pass-through costs to the GGRF could prove substantial.
HOV sticker program incentives: Under current law, green HOV access stickers are available for 85,000 plug-in hybrid electric vehicles that meet certain requirements. To date, the 85,000 has been met meaning that no new green stickers can be issued. The white sticker program, which provides HOV access to battery-electric and fuel cell vehicles, does not have a cap on the number of stickers that can be issued. The green stickers, as well as the white stickers, provide plug-in electric hybrid vehicles with access to HOV lanes and freeway ramps, regardless of occupancy level, until 2019.
To further incentivize the purchase of ZEVs the author has included a provision that would lift the cap on green HOV sticker program, thereby providing that an unlimited number of vehicles that qualify for the green sticker program can access HOV lanes. While it is true that HOV access provides a low-overhead and popular method by which to incentivize the purchase of HOVs, providing an unlimited number of qualifying vehicles access to HOV lanes could result in increased HOV lane congestion thereby decreasing their utility for ZEV owners and carpoolers alike. It is also important to point out that this bill conflicts with AB 1964 (Bloom), that recently passed out of this committee in that AB 1964 provides plug-in hybrid electric vehicles access to HOV lanes for only a three year period upon execution of the existing program in 2019.
Writing in support, CNCDA writes that in 2015, California's new car dealers sold more than two million new vehicles but of this number, only 3.1% were ZEV and plug-in hybrid vehicles. CNCDA states unequivocally that drastic measures need to be taken immediately to improve ZEV adoption rates if the states goals and mandates are to be achieved. CDNA notes that while existing incentive programs have been successful, they clearly are not creating enough of an incentive to get buyers to purchase these cars. CNCDA feels strongly that substantially increased subsidies, such as those provided in countries like Norway, are needed to get buyers' attention.
Committee concerns: If the state wishes to meet its clean air and climate goals, it must definitely help complete the transformation of the passenger fleet from traditional petroleum fuel vehicles to zero- and near-zero-emission vehicles. Yet despite spending millions of dollars, lagging sales of ZEVs leaves one wondering if the efforts have been for not or if additional effort, and expense, should be imparted. This is a complex question with even more complex answers and it is unclear if incentives alone, no matter how much money is spent, will encourage buyers to adopt ZEVs, particularly when gas prices are low and the cost of conventional vehicles is competitive or lower than ZEVs.
Therefore, this bill stands on the premise that increasing incentives (to up to half the value of a vehicle) is what is needed to convert the fleet, but given the cost of nearly $2 billion annually, it is important to evaluate whether or not other projects, in the transportation sector or otherwise, would achieve more gains with similar, or fewer, expenditures of increasingly popular GGRF revenues.
This bill along with AB 1710 (Calderon) would make changes to the CVRP and other programs to provide additional incentive funding to encourage ZEV adoption. While this bill is more prescriptive in that it outlines specific program parameters, AB 1710 aims to achieve similar outcomes by directing ARB to develop a the program based specified parameters. In addition, this bill, along with many others would, draw heavily on GGRF revenues, much of which is already subject to continuous appropriation by the Legislature.
Suggested amendments: This bill does not currently provide an "exit strategy" whereby incentive funding could be discontinued should the program prove too costly or be unsuccessful, nor is it clear whether this program would supplant existing CVRP rebates or add to them. Further, as written, AB 1851 would provide substantially higher rebates for persons who live in a disadvantaged community, without regard to the individual's income and could potentially incentivize manufactures to keep vehicle prices high.
To address these concerns, the author has agreed to take amendments in the Assembly Transportation Committee that would:
- Limit incentives to the first $60,000 of a vehicle's MSRP or the final sales price of the vehicle, whichever is lower;
- Include a provision to sunset the program on January 1, 2026;
- Include a provision clarifying that only low- and moderate-income individuals in disadvantaged communities would qualify for the enhanced rebates; and,
- Clarifies that the incentives provided in this bill would replace, not be added to, existing incentives provided pursuant to CVRP.
Double referral: This bill will be referred to the Assembly Natural Resources Committee should it pass out of this committee.
Related legislation: AB 1964 (Bloom), creates a new program (upon expiration of the existing program) to allow plug-in hybrid electric vehicles access to HOV lanes for a three-year period, regardless of vehicle occupancy level. AB 1964 passed out of this committee on April 4, 2016, with a 14 to 2 vote and is currently awaiting a hearing in the Assembly Appropriations Committee.
AB 1710 (Calderon), requires ARB, in coordination with the Commission, on or before January 1, 2019, to develop and implement a comprehensive program to promote advanced-technology light-duty vehicle deployment in the state to drastically increase the use of ZEVs to meet the state's emissions reduction goals. AB 1710 is scheduled to be heard by this committee on April 11, 2016.
AB 1965 (Cooper), requires ARB to expand the Enhanced Fleet Modernization Plus Up Program in disadvantaged communities and in areas with poor air quality to increase retirement of high polluting vehicles and replace them with cleaner cars. AB 1965 is scheduled to be heard by this committee on April 11, 2016.
Previous legislation: SB 1275 (de León), Chapter 530, Statutes of 2014, established the Charge Ahead California Initiative that, among other things, set the goal of placing one million zero- and near-zero-emission vehicles into service on California's roadways by January 1, 2023, and increasing access to these vehicles for disadvantaged, low-, and moderate-income communities and consumers.
AB 8 (Perea), Chapter 401, Statutes of 2013, extended until January 1, 2024, extra fees on vehicle registrations, boat registrations, and tire sales in order to fund the programs that support the production, distribution, and sale of alternative fuels and vehicle technologies, as well as air emissions reduction efforts.
SB 535 (de León), Chapter 830, Statutes of 2013, required that a minimum of 25% of the available moneys in the GGRF go to projects that provide benefits to identified disadvantaged communities and that a minimum of 10% of the available moneys in the fund to projects located within identified disadvantaged communities.
AB 945 (Ting) of 2015, would have provided a partial SUT exemption for the purchase and use of a qualified vehicle. AB 945 was held on the Assembly Appropriations Committee suspense file.
AB 1077 (Ting and Muratsuchi), of the 2013-14 Legislative Session, provided a partial SUT exemption for QMV, as specified, and reduced the amount of vehicle license fee imposed on an owner of a QMV. AB 1077 was held on the Assembly Appropriation Committee suspense file.
AB 118 (Núñez), Chapter 750, Statutes of 2007, created the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 that required the Commission to implement the ARFVTP and provide funding measures to specified entities to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies.
AB 32 (Núñez), Chapter 488, Statutes of 2006, required the ARB to develop a plan of how to reduce emissions to 1990 levels by the year 2020 and also required ARB to ensure that, to the extent feasible, GHGs reduction requirement and programs direct public and private investment toward the most disadvantaged communities.
AB 1007 (Pavley), Chapter 371, Statutes of 2005, required ARB and the Commission to develop a plan to increase alternative fuels use in California.
REGISTERED SUPPORT / OPPOSITION:
Support
Alliance of Automobile Manufacturers
California New Car Dealers Association
Opposition
California Taxpayers Association
Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093
Discussed in Hearing
13MIN
Senate Standing Committee on Transportation and Housing
Bill Co-Author(s):