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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill would require the state board, for the purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project and, until January 1, 2022, to prioritize rebate payments to low-income applicants.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill would require the state board, for the purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project and, until January 1, 2022, to prioritize rebate payments to low-income applicants.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill would require the state board, for the purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project and and, until January 1, 2022, to prioritize rebate payments to low-income applicants.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill would instead require the state board, for the purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project and to prioritize rebate payments to both low-income applicants and applicants that have eligible vehicles registered in low-income communities. applicants.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill, beginning January 1, 2019, bill would instead require the state board, for the purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project and to prioritize rebate payments to both low-income applicants and applicants that have eligible vehicles registered in low-income communities.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, and prioritize rebate payments for low-income applicants.

This bill, beginning January 1, 2019, would instead require the state board, for purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and disadvantaged low-income communities to increase consumer awareness of the rebate project and to prioritize rebate payments to both low-income applicants and applicants that have eligible vehicles registered in disadvantaged communities, with the highest priority to be granted to applicants who are low-income and with the second highest priority to be granted to applicants who have eligible vehicles registered in disadvantaged communities. low-income communities.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until July January 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income, increase rebate payments by $500 for low-income applicants, provide outreach to low-income households to increase consumer awareness of the rebate project, increase rebate payments by $500 for low-income applicants, as defined, and prioritize rebate payments for low-income applicants.

This bill would additionally bill, beginning January 1, 2019, would instead require the state board board, for purposes of the Clean Vehicle Rebate Project, to provide outreach to low-income households and disadvantaged communities, as defined. The bill would increase rebate payments by $500 for eligible applicants with vehicles registered in disadvantaged communities and $1,000 for applicants who are both low income and have an eligible vehicle registered in a disadvantaged community. The bill would require the state board communities to increase consumer awareness of the rebate project and to prioritize rebate payments to both low-income applicants and applicants that have eligible vehicles registered in disadvantaged communities, with the highest priority to be granted to applicants who meet both conditions. are low-income and with the second highest priority to be granted to applicants who have eligible vehicles registered in disadvantaged communities.

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 its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until July 1, 2019, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, provide outreach to low-income households to increase consumer awareness of the rebate project, increase rebate payments by $500 for low-income applicants, as defined, and prioritize rebate payments for low-income applicants.

This bill would additionally require the state board to provide outreach to disadvantaged communities, as defined. The bill would increase rebate payments by $500 for eligible applicants with vehicles registered in disadvantaged communities and $1,000 for applicants who are both low income and have an eligible vehicle registered in a disadvantaged community. The bill would require the state board to prioritize rebate payments to both low-income applicants and applicants that have eligible vehicles registered in disadvantaged communities, with the highest priority to be granted to applicants who meet both conditions.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2885

Author:(Rodriguez)

As Amended Ver:August 21, 2018

Majority vote

Original Committee Reference: TRANS.

SUMMARY: Requires the California Air Resources Board (ARB), for purposes of the Clean Vehicle Rebate Project (CVRP), to provide outreach to low-income households and low-income communities to increase awareness of the CVRP, and, until January 1, 2022, to prioritize rebate payments to low-income applicants.

The Senate amendments:

1. Remove the requirement that ARB prioritize rebate payments to applicants with eligible vehicles registered in low-income communities and makes other technical changes.
2. Add a sunset date of January 1, 2022, on the requirement that ARB prioritize rebate payments to low-income applicants.

AS PASSED BY THE ASSEMBLY, this bill:

1. Required ARB for purposes of the CVRP to:
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of the CVRP; and,
   2. Prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in low-income communities.
2. Defined "low-income communities" as census tracts with median household incomes at or below 80% of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development's list of state income limits.
3. Defined "low-income" as a resident of the state whose household income is less than or equal to 300% of the federal poverty level.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state cost.

COMMENTS: Pursuant to their authority under the Air Quality Improvement Program (AQIP), ARB developed CVRP. CVRP is intended to encourage and accelerate the purchase and use of zero-emission vehicles (ZEVs) and near-zero emission vehicles (NZEVs) to help improve air quality, reduce greenhouse gas (GHG) emissions, and achieve the Legislature's goal of placing 1 million ZEVs on California's roadways by 2023, the Governor's 2012 goal of placing 1.5 million ZEVs on California's roadways by 2025 (Executive Order B-16-12) and the Governor's new goal of 5 million ZEVs on the road by 2030 (Executive Order B-48-18).

As of June 30, 2017, CVRP has provided rebates for 205,007 vehicles since the project's launch in 2010. The program offers vehicle rebates on a first-come, first-served basis and has been typically oversubscribed each year. When the funding is exhausted, applicants are "waitlisted" and are issued rebates in the order they applied when monies are allocated in the next funding cycle.

While CVRP has been effective in creating a market for ZEVs, it has come under increasing criticism that the majority of individuals receiving rebates are wealthy, living in affluent communities that, comparatively, experience better air quality than other areas of the state.

To address these concerns, SB 1275 (De León), Chapter 530, Statutes of 2014, called upon ARB to establish CVRP rebate eligibility based on income. In response, ARB established income caps and, in 2016, the Legislature approved a budget trailer bill [SB 859 (Budget and Fiscal Review Committee), Chapter 368, Statutes of 2016] that established an income cap for the CVRP of $150,000 for single filers, $204,000 for head-of-household filers and $300,000 for joint filers and exempted fuel-cell electric cars rebates from the new income cap. SB 859 also required ARB to conduct outreach to low- income communities, offer additional rebate payments of $500 for low-income applicants, and prioritize rebate payments for low-income applicants. SB 859 had a sunset date of July 1, 2017, and AB 615 (Cooper), Chapter 631, Statutes of 2017, extended the sunset date to January 1, 2019.

To ensure that CVRP is reaching its goal of ZEV market acceleration, AB 615 also required the ARB, by December 1, 2018, to prepare and submit to the Legislature a report on the impact the CVRP has had on the state's zero-emission vehicle market. In developing the report, ARB is required to consider the impact of income caps, increased rebates for low-income consumers, and increased outreach on the electric vehicle market, as well as a quantification of emissions reductions attributable to CVRP.

Through CVRP, ARB offers a rebate of $5,000 for hydrogen electric, $2,500 for battery electric, and $1,500 for plug-in hybrid electric vehicles, and an additional $2,000 for low income drivers (above the minimum $500 stated in law). These rebates are a crucial part of the Governor's new Executive Order and new eight-year initiative to accelerate sales of ZEVs. As part of this initiative, the administration is proposing a total of $200 million annually from the Greenhouse Gas Reduction Fund (GGRF) through 2025, which includes $175 million for CVRP and $25 for additional incentives for low-income consumers. As the number of clean vehicles purchased increases over time, ARB has indicated that it will revise the program's income eligibility requirements to target moderate and low-income consumers that are most influenced by the availability of rebates. Additionally, ARB is planning to continue to grow their existing efforts of outreach and public education to low-income and disadvantaged communities by partnering with community based organizations, developing educational materials, and coordinating ZEV test drives.

The author believes that by providing outreach and prioritizing certain applicants, post January 1, 2019, the CVRP will more effectively target communities that need it most.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093 FN: 0004921

 THIRD READING  

Bill No: AB 2885

Author:

Amended: 8/21/18 in Senate

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 6/6/18

AYES: Wieckowski, Stone, Gaines, Hill, Skinner

NO VOTE RECORDED: Lara, Stern

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 6/26/18

AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Morrell, Roth, Skinner, Vidak, Wiener

NO VOTE RECORDED: Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 69-0, 5/21/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires the Air Resources Board (ARB), beginning January 1, 2019, under CVRP, to (1) provide outreach to low-income households and low-income communities to increase consumer awareness of CVRP, as specified, and (2) prioritize rebate payments to low-income applicants.

Senate Floor Amendments of 8/21/18 sunset the prioritization of rebate payments to low-income applicants on January 1, 2022, rather than extend this legislative direction indefinitely.

ANALYSIS: Existing federal law sets, through the Federal Clean Air Act (FCAA) and its implementing regulations, National Ambient Air Quality Standards (NAAQS) for six criteria pollutants, designates air basins that do not achieve NAAQS as nonattainment, allows only California to set vehicular emissions standards stricter than the federal government, and allows other states to adopt either the federal or California vehicular emissions standards. (42 U.S.C. §7401 et seq.)

Existing state law:

1. Establishes ARB as the air pollution control agency in California and requires the ARB, among other things, to control emissions from a wide array of mobile sources and implement the FCAA. (Health and Safety Code (HSC) §39500 et seq.)
   
2. Establishes Sections 1962.1, 1962.2, and 1962.3 of Title 13 of the California Code of Regulations (Zero-Emission Vehicle (ZEV) Mandate) that requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs, as specified.
   
3. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies. (HSC §44274 et seq.)
   Establishes the Clean Vehicle Rebate Project (CVRP) under the AQIP.
   
4. Requires ARB, among other things, as a part of CVRP, to do the following, until January 1, 2019:
   
   1. Increase the rebate payment by five hundred dollars ($500) for a low-income applicant (defined to be a resident of the state whose household income is less than or equal to 300% of the federal poverty level) for all eligible vehicle types.
      
   2. Provide outreach to low-income households to increase consumer awareness of the rebate project.
      
   3. Prioritize rebate payments to low-income applicants.
      

This bill:

1. Defines “low income” to mean a resident of the state whose household income is less than or equal to 300% of the federal poverty level.
   
2. Uses the definition of “low-income communities” in HSC §39713, which are census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low income, as specified.
   
3. Requires ARB, beginning January 1, 2019, under CVRP, to do both of the following:
   
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of CVRP.
      
   2. Prioritize rebate payments to low-income applicants.

Background

1. Air quality standards. The FCAA passed in 1963 and has been revised many times thereafter. The FCAA and its implementing regulations are intended to protect public health and environmental quality by limiting and reducing pollution from various sources. Under the FCAA, the United States Environmental Protection Agency (US EPA) establishes National Ambient Air Quality Standards (NAAQS) that apply to outdoor air throughout the country.
   
   In 1969 and 1971, ARB set the first air quality standards for ozone, Particulate Matter (PM), oxides of nitrogen (NOx), oxides of sulfur (SOx), and carbon monoxide due to their negative impacts on public health above specified concentrations.
   
   The federal government followed suit and set NAAQS for six “criteria pollutants.” These included ground-level ozone, PM, NOx, SOx, carbon monoxide, and added lead. Now, the US EPA reviews each NAAQS at five-year intervals to ensure that the standards are based on the most recent scientific information.
   
   Regions that do not meet the national standards for any one of the standards are designated “nonattainment areas.” The FCAA sets deadlines for attainment based on the severity of nonattainment and requires states to develop comprehensive plans, known as the state implementation plan (SIP), to attain and maintain air-quality standards for each area designated nonattainment for an NAAQS.
   
2. Vehicles and air pollution. Vehicles are one of the primary sources of air pollution nationally. As such, the FCAA authorizes US EPA to establish and regulate emissions standards for mobile sources.
   
   California, due to its preexisting vehicle-emission standards and severe motor vehicle air pollution problems, is authorized under the FCAA to implement separate mobile emission standards from the federal government. Other states may choose to follow either the national standard or the stricter California standards.
   
   State law assigns the ARB with primary responsibility for control of mobile-source air pollution, including adoption of rules for reducing vehicle emissions, the specification of vehicular fuel composition, emissions control devices, and engine standards.
   
   As a result of California’s successful actions regulating air pollution, vehicles today are over 99% cleaner than they were when the state began regulating mobile source emissions. Despite this success, mobile sources are still responsible for approximately 40% of all emissions in the state. This reduction in mobile source emission has, however, made emissions from other sources easier to observe. Reducing or eliminating emissions from those sources will begin to become equally as important as regulating emissions from vehicles as vehicular emissions decline.
   
3. Clean Vehicle Rebate Project (CVRP). The CVRP is funded by ARB and administered by the Center for Sustainable Energy, in order to promote the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval.
   
   CVRP provides a rebate of up to $5,000 for purchasing or leasing a new zero-emission vehicle or plug-in hybrid electric vehicle. Specifically, a consumer may obtain a $5,000 rebate for a hydrogen fuel-cell vehicle; a $2,500 rebate for a zero-emission, battery electric vehicle; a $1,500 voucher for a plug-in hybrid electric vehicle; or, a $900 rebate for a neighborhood electric vehicle or a zero-emission motorcycle. There is no cap on the number of rebates that may be issued, but rebates are subject to funding availability and the program has more than once been forced to stop issuing rebates and create a waiting list due to funds running out.
   
   CVRP was initially designed to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012 and will likely be a key tool to achieving executive order B-48-2018, which requires 5 million ZEVs on the road 2030.
   
4. Zero Emission Vehicle (ZEV) regulation. The ZEV regulation requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs (such as battery electric and fuel cell vehicles), clean plug-in hybrids, clean hybrids and clean gasoline vehicles with near-zero tail pipe emissions. In general, the ZEV regulation requires that 15% of new car sales be ZEVs by 2025. This target is intended to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012.
   
   Under the FCAA, other states may choose to adopt California’s air quality standards. Currently, 10 states (including California) follow California’s rules, which include the ZEV regulation.

Comments

1. Purpose of Bill. According to the author, “residents of disadvantaged and low-income communities suffer disproportionately from the impacts of poor air quality. As climate mitigation programs and policies are created, we must ensure residents in these communities are receiving their share of funding and incentives. For too long, this has not been the case. For many residents in disadvantaged and low-income communities, the decision to purchase a new vehicle does not come lightly. Buying a new vehicle is often a long-term financial commitment lasting, at times, several decades. Without added incentives, consumers are likely to be drawn towards cheaper, gas-burning vehicles instead of environmentally friendlier options that are more cost-efficient over the life of the vehicle. Providing additional rebate incentives, prioritization and outreach efforts will increase the proliferation of environmentally friendly vehicles in areas where they are needed the most.”

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/6/18)

Community Action to Fight Asthma

San Diego Gas & Electric Company

Santa Barbara Women’s Political Committee

Southern California Edison

OPPOSITION: (Verified 8/6/18)

None received

ASSEMBLY FLOOR: 69-0, 5/21/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Fong, Frazier, Friedman, Gallagher, Gipson, Gloria, Gonzalez Fletcher, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Eggman, Flora, Cristina Garcia, Eduardo Garcia, Gray, Harper, Melendez, Obernolte

Prepared by:

8/22/18 14:39:14

**** END ****

 THIRD READING  

Bill No: AB 2885

Author:

:

Vote:

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-0, 6/6/18

AYES: Wieckowski, Stone, Gaines, Hill, Skinner

NO VOTE RECORDED: Lara, Stern

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 6/26/18

AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Morrell, Roth, Skinner, Vidak, Wiener

NO VOTE RECORDED: Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 69-0, 5/21/18 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires the Air Resources Board (ARB), beginning January 1, 2019, under CVRP, to (1) provide outreach to low-income households and low-income communities to increase consumer awareness of CVRP, as specified, and (2) prioritize rebate payments to low-income applicants.

ANALYSIS: Existing federal law sets, through the Federal Clean Air Act (FCAA) and its implementing regulations, National Ambient Air Quality Standards (NAAQS) for six criteria pollutants, designates air basins that do not achieve NAAQS as nonattainment, allows only California to set vehicular emissions standards stricter than the federal government, and allows other states to adopt either the federal or California vehicular emissions standards. (42 U.S.C. §7401 et seq.)

Existing state law:

1. Establishes ARB as the air pollution control agency in California and requires the ARB, among other things, to control emissions from a wide array of mobile sources and implement the FCAA. (Health and Safety Code (HSC) §39500 et seq.)
   
2. Establishes Sections 1962.1, 1962.2, and 1962.3 of Title 13 of the California Code of Regulations (Zero-Emission Vehicle (ZEV) Mandate) that requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs, as specified.
   
3. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies. (HSC §44274 et seq.)
   Establishes the Clean Vehicle Rebate Project (CVRP) under the AQIP.
   
4. Requires ARB, among other things, as a part of CVRP, to do the following, until January 1, 2019:
   
   1. Increase the rebate payment by five hundred dollars ($500) for a low-income applicant (defined to be a resident of the state whose household income is less than or equal to 300% of the federal poverty level) for all eligible vehicle types.
      
   2. Provide outreach to low-income households to increase consumer awareness of the rebate project.
      
   3. Prioritize rebate payments to low-income applicants.
      

This bill:

1. Defines “low income” to mean a resident of the state whose household income is less than or equal to 300% of the federal poverty level.
   
2. Uses the definition of “low-income communities” in HSC §39713, which are census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low income, as specified.
   
3. Requires ARB, beginning January 1, 2019, under CVRP, to do both of the following:
   
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of CVRP.
      
   2. Prioritize rebate payments to low-income applicants.

Background

1. Air quality standards. The FCAA passed in 1963 and has been revised many times thereafter. The FCAA and its implementing regulations are intended to protect public health and environmental quality by limiting and reducing pollution from various sources. Under the FCAA, the United States Environmental Protection Agency (US EPA) establishes National Ambient Air Quality Standards (NAAQS) that apply to outdoor air throughout the country.
   
   In 1969 and 1971, ARB set the first air quality standards for ozone, Particulate Matter (PM), oxides of nitrogen (NOx), oxides of sulfur (SOx), and carbon monoxide due to their negative impacts on public health above specified concentrations.
   
   The federal government followed suit and set NAAQS for six “criteria pollutants.” These included ground-level ozone, PM, NOx, SOx, carbon monoxide, and added lead. Now, the US EPA reviews each NAAQS at five-year intervals to ensure that the standards are based on the most recent scientific information.
   
   Regions that do not meet the national standards for any one of the standards are designated “nonattainment areas.” The FCAA sets deadlines for attainment based on the severity of nonattainment and requires states to develop comprehensive plans, known as the state implementation plan (SIP), to attain and maintain air-quality standards for each area designated nonattainment for an NAAQS.
   
2. Vehicles and air pollution. Vehicles are one of the primary sources of air pollution nationally. As such, the FCAA authorizes US EPA to establish and regulate emissions standards for mobile sources.
   
   California, due to its preexisting vehicle-emission standards and severe motor vehicle air pollution problems, is authorized under the FCAA to implement separate mobile emission standards from the federal government. Other states may choose to follow either the national standard or the stricter California standards.
   
   State law assigns the ARB with primary responsibility for control of mobile-source air pollution, including adoption of rules for reducing vehicle emissions, the specification of vehicular fuel composition, emissions control devices, and engine standards.
   
   As a result of California’s successful actions regulating air pollution, vehicles today are over 99% cleaner than they were when the state began regulating mobile source emissions. Despite this success, mobile sources are still responsible for approximately 40% of all emissions in the state. This reduction in mobile source emission has, however, made emissions from other sources easier to observe. Reducing or eliminating emissions from those sources will begin to become equally as important as regulating emissions from vehicles as vehicular emissions decline.
   
3. Clean Vehicle Rebate Project (CVRP). The CVRP is funded by ARB and administered by the Center for Sustainable Energy, in order to promote the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval.
   
   CVRP provides a rebate of up to $5,000 for purchasing or leasing a new zero-emission vehicle or plug-in hybrid electric vehicle. Specifically, a consumer may obtain a $5,000 rebate for a hydrogen fuel-cell vehicle; a $2,500 rebate for a zero-emission, battery electric vehicle; a $1,500 voucher for a plug-in hybrid electric vehicle; or, a $900 rebate for a neighborhood electric vehicle or a zero-emission motorcycle. There is no cap on the number of rebates that may be issued, but rebates are subject to funding availability and the program has more than once been forced to stop issuing rebates and create a waiting list due to funds running out.
   
   CVRP was initially designed to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012 and will likely be a key tool to achieving executive order B-48-2018, which requires 5 million ZEVs on the road 2030.
   
4. Zero Emission Vehicle (ZEV) regulation. The ZEV regulation requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs (such as battery electric and fuel cell vehicles), clean plug-in hybrids, clean hybrids and clean gasoline vehicles with near-zero tail pipe emissions. In general, the ZEV regulation requires that 15% of new car sales be ZEVs by 2025. This target is intended to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012.
   
   Under the FCAA, other states may choose to adopt California’s air quality standards. Currently, 10 states (including California) follow California’s rules, which include the ZEV regulation.

Comments

1. Purpose of Bill. According to the author, “residents of disadvantaged and low-income communities suffer disproportionately from the impacts of poor air quality. As climate mitigation programs and policies are created, we must ensure residents in these communities are receiving their share of funding and incentives. For too long, this has not been the case. For many residents in disadvantaged and low-income communities, the decision to purchase a new vehicle does not come lightly. Buying a new vehicle is often a long-term financial commitment lasting, at times, several decades. Without added incentives, consumers are likely to be drawn towards cheaper, gas-burning vehicles instead of environmentally friendlier options that are more cost-efficient over the life of the vehicle. Providing additional rebate incentives, prioritization and outreach efforts will increase the proliferation of environmentally friendly vehicles in areas where they are needed the most.”

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/6/18)

Community Action to Fight Asthma

San Diego Gas & Electric Company

Santa Barbara Women’s Political Committee

Southern California Edison

OPPOSITION: (Verified 8/6/18)

None received

ASSEMBLY FLOOR: 69-0, 5/21/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Fong, Frazier, Friedman, Gallagher, Gipson, Gloria, Gonzalez Fletcher, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Eggman, Flora, Cristina Garcia, Eduardo Garcia, Gray, Harper, Melendez, Obernolte

Prepared by:

8/8/18 9:54:49

**** END ****

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: AB 2885 Hearing Date: 6/26/2018

SUBJECT: Air Quality Improvement Program: Clean Vehicle Rebate Project

DIGEST: This bill requires the California Air Resources Board (ARB) to, when implementing the Clean Vehicle Rebate Project (CVRP), provide outreach and prioritize rebates to low income applicants.

ANALYSIS:

Existing law:

1. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
   
2. Creates the CVRP under the AQIP; requires ARB, as a part of CVRP, to do the following, until January 1, 2019:
   
   1. Offer rebates only to individuals with incomes less than $150,000 or to joint filers with incomes less than $300,000
   2. Increase the rebate payment by five hundred dollars ($500) for a low-income applicant (defined to be a resident of the state whose household income is less than or equal to 300% of the federal poverty level) for all eligible vehicle types.
      
   3. Provide outreach to low-income households to increase consumer awareness of the rebate project.
      
   4. Prioritize rebate payments to low-income applicants.
      

This bill:

1. Requires ARB, when administering the CVRP, to provide outreach to low-income households and low-income communities, and to prioritize rebates to low-income applicants.
2. Defines “low income” as a household with income less than or equal to 300% of the federal poverty level.

COMMENTS

1. Author’s Statement. Residents of disadvantaged and low-income communities suffer disproportionately from the impacts of poor air quality. As climate mitigation programs and policies are created, we must ensure residents in these communities are receiving their share of funding and incentives. For too long, this has not been the case. For many residents in disadvantaged and low-income communities, the decision to purchase a new vehicle does not come lightly. Buying a new vehicle is often a long-term financial commitment lasting, at times, several decades. Without added incentives, consumers are likely to be drawn towards cheaper, gas-burning vehicles instead of environmentally friendlier options that are more cost-efficient over the life of the vehicle. Providing additional rebate incentives, prioritization and outreach efforts will increase the proliferation of environmentally friendly vehicles in areas where they are needed most.
2. CVRP. CVRP provides rebates to incentivize the purchase or lease of clean vehicles: $5,000 for a hydrogen fuel cell vehicle; $2,500 for a battery electric vehicle; $1,500 for a plug-in hybrid electric vehicle; or $900 for a zero-emission motorcycle. An individual can apply for a rebate within 18 months of purchase or lease. If an individual’s gross annual income is above specified limits ($150,000 for single filers, $204,000 for head of household filers, or $300,000 for joint filers), he or she cannot obtain a CVRP rebate, but can obtain a carpool lane sticker. An individual with income below the specified limits can obtain both a CVRP rebate and a carpool lane sticker. In addition, individuals with household incomes below 300% of the federal poverty level are eligible for an additional CVRP rebate of $500.

There is no cap on the number of rebates that may be issued, but rebates are subject to funding availability and the program has occasionally been forced to stop issuing rebates and create a wait list due to lack of funds. The program is currently accepting applications. As of April 11, 2018, CVRP had issued 232,169 rebates ($514 million), primarily in the Bay Area and South Coast air districts. Of the total rebates issued, 7,117 ($28.6 million) were increased rebates to low-income applicants, which first became available on March 29, 2016.

1. Expiring Income Caps. The CVRP income limits exclude only about the richest 2% of all households from the CVRP rebate. Whether a $2500 credit will influence the purchase of an EV in a household making $300,000 annually is debatable, while that same credit is much more likely to make a difference for a household making $60,000. Now that new ZEVs are going for $30,000 and used ZEVs much less, it would seem to be more effective to focus our limited CVRP funds to middle- and lower-income households. The income limits on the CVRP expire at the end of this year and are not reestablished by this bill. By the end of this year, the ARB is required to submit a report to the Legislature on the effectiveness of the CVRP and the impact of the income caps.
2. Zero-Emission Vehicle (ZEV) Goals. Executive Order B-16-12 of 2012 established a goal of 1.5 million ZEVs on California’s roads by 2025. SB 1275 (De León, Chapter 530, Statutes of 2014) builds on this goal by establishing the Charge Ahead California Initiative, which aims to place one million electric cars, trucks, and buses on California’s roads by 2023. The ZEV regulation, commonly known as the ZEV mandate, sets a goal for ZEVs and near-ZEVs to comprise 15% of new cars sold in California by 2025. If a manufacturer fails to meet its ZEV requirement, it is subject to financial penalties. In addition, Executive Order B-48-18, signed by Governor Brown on January 26, 2018, establishes a new target of five million ZEVs in the state by 2030. The Governor is also proposing a new eight-year, $2.5 billion budget initiative to continue CVRP rebates and help bring 250,000 vehicle charging stations and 200 hydrogen fueling stations to California by 2025.
3. Double Referral. This bill was heard by the Environmental Quality Committee on June 6, 2018 and passed 5-0.

Related Legislation:

AB 2006 (Eggman, 2018) — expands existing agricultural worker vanpool programs to include low-income communities. This bill is pending in the Senate Appropriations Committee.

AB 615 (Cooper), Chapter 631, Statutes of 2017) — extended the sunset date on the CVRP provisions of SB 859 of 2016 to January 1, 2019.

SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016) — among other things, required outreach to low-income households for CVRP and set the following income caps for CVRP eligibility: $150K for applicants that file taxes as a single individual, $204K for those that file head of household, and $300K for those that file jointly. These provisions sunset on July 1, 2017.

SB 1275 (de León, Chapter 530, Statutes of 2014) —established the Charge Ahead California Initiative to place in service at least 1.0 million zero-emission and near-zero-emission vehicles by January 1, 2023, with a focus on disadvantaged and low-and-moderate-income communities.

AB 118 (Núñez, Chapter 750, Statutes of 2007) — established the EFMP, ARFVTP, and the AQIP.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

Assembly votes:

Transportation: 14-0

Appropriations: 16-0

Floor: 69-0

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 20, 2018.)

SUPPORT:

San Diego Gas and Electric

Southern California Edison

OPPOSITION:

None received.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 2885

SUBJECT: Air Quality Improvement Program: Clean Vehicle Rebate Project

ANALYSIS:

Existing federal law:

1. Sets, through the Federal Clean Air Act (FCAA) and its implementing regulations, National Ambient Air Quality Standards (NAAQS) for six criteria pollutants, designates air basins that do not achieve NAAQS as nonattainment, allows only California to set vehicular emissions standards stricter than the federal government, and allows other states to adopt either the federal or California vehicular emissions standards. (42 U.S.C. §7401 et seq.)
   

Existing state law:

1. Establishes the Air Resources Board (ARB) as the air pollution control agency in California and requires the ARB, among other things, to control emissions from a wide array of mobile sources and implement the FCAA. (Health and Safety Code (HSC) §39500 et seq.)
   
2. Establishes Sections 1962.1, 1962.2, and 1962.3 of Title 13 of the California Code of Regulations (Zero-Emission Vehicle (ZEV) Mandate) that requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs, as specified.
   
3. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies. (HSC §44274 et seq.)
   
   1. Establishes the Clean Vehicle Rebate Project (CVRP) under the AQIP.
      
4. Requires ARB, among other things, as a part of CVRP, to do the following, until January 1, 2019:
   
   1. Increase the rebate payment by five hundred dollars ($500) for a low-income applicant (defined to be a resident of the state whose household income is less than or equal to 300% of the federal poverty level) for all eligible vehicle types.
      
   2. Provide outreach to low-income households to increase consumer awareness of the rebate project.
      
   3. Prioritize rebate payments to low-income applicants.
      

This bill:

1. Defines “low income” to mean a resident of the state whose household income is less than or equal to 300% of the federal poverty level.
   
2. Uses the definition of “low-income communities” in HSC §39713, which are census tracts with median household incomes at or below 80% of the statewide median income or with median household incomes at or below the threshold designated as low income, as specified.
   
3. Requires ARB, beginning January 1, 2019, under CVRP, to do both of the following:
   
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of CVRP.
      
   2. Prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in low-income communities.
      

Background

1. Air quality standards. The Federal Clean Air Act (FCAA) passed in 1963 and has been revised many times thereafter. The FCAA and its implementing regulations are intended to protect public health and environmental quality by limiting and reducing pollution from various sources. Under the FCAA, the United States Environmental Protection Agency (US EPA) establishes National Ambient Air Quality Standards (NAAQS) that apply to outdoor air throughout the country.
   
   In 1969 and 1971, ARB set the first air quality standards for ozone, Particulate Matter (PM), oxides of nitrogen (NOx), oxides of sulfur (SOx), and carbon monoxide due to their negative impacts on public health above specified concentrations.
   
   The federal government followed suit and set NAAQS for six “criteria pollutants.” These included ground-level ozone, PM, NOx, SOx, carbon monoxide, and added lead. Now, the US EPA reviews each NAAQS at five-year intervals to ensure that the standards are based on the most recent scientific information.
   
   Regions that do not meet the national standards for any one of the standards are designated “nonattainment areas.” The FCAA sets deadlines for attainment based on the severity of nonattainment and requires states to develop comprehensive plans, known as the state implementation plan (SIP), to attain and maintain air-quality standards for each area designated nonattainment for an NAAQS.
   
2. Vehicles and air pollution. Vehicles are one of the primary sources of air pollution nationally. As such, the FCAA authorizes US EPA to establish and regulate emissions standards for mobile sources.
   
   California, due to its preexisting vehicle-emission standards and severe motor vehicle air pollution problems, is authorized under the FCAA to implement separate mobile emission standards from the federal government. Other states may choose to follow either the national standard or the stricter California standards.
   
   State law assigns the ARB with primary responsibility for control of mobile-source air pollution, including adoption of rules for reducing vehicle emissions, the specification of vehicular fuel composition, emissions control devices, and engine standards.
   
   As a result of California’s successful actions regulating air pollution, vehicles today are over 99% cleaner than they were when the state began regulating mobile source emissions. Despite this success, mobile sources are still responsible for approximately 40% of all emissions in the state. This reduction in mobile source emission has, however, made emissions from other sources easier to observe. Reducing or eliminating emissions from those sources will begin to become equally as important as regulating emissions from vehicles as vehicular emissions decline.
   
3. Clean Vehicle Rebate Project (CVRP). The CVRP is funded by ARB and administered by the Center for Sustainable Energy, in order to promote the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval.
   
   CVRP provides a rebate of up to $5,000 for purchasing or leasing a new zero-emission vehicle or plug-in hybrid electric vehicle. Specifically, a consumer may obtain a $5,000 rebate for a hydrogen fuel-cell vehicle; a $2,500 rebate for a zero-emission, battery electric vehicle; a $1,500 voucher for a plug-in hybrid electric vehicle; or, a $900 rebate for a neighborhood electric vehicle or a zero-emission motorcycle. There is no cap on the number of rebates that may be issued, but rebates are subject to funding availability and the program has more than once been forced to stop issuing rebates and create a waiting list due to funds running out.
   
   CVRP was initially designed to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012 and will likely be a key tool to achieving executive order B-48-2018, which requires 5 million ZEVs on the road 2030.
   
4. Zero Emission Vehicle (ZEV) regulation. The Zero Emission Vehicle (ZEV) Regulation requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs (such as battery electric and fuel cell vehicles), clean plug-in hybrids, clean hybrids and clean gasoline vehicles with near-zero tail pipe emissions. In general, the ZEV regulation requires that 15% of new car sales be ZEVs by 2025. This target is intended to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012.
   
   Under the FCAA, other states may choose to adopt California’s air quality standards. Currently, 10 states (including California) follow California’s rules, which include the ZEV regulation.
   

Comments

1. Purpose of Bill. According to the author, “residents of disadvantaged and low-income communities suffer disproportionately from the impacts of poor air quality. As climate mitigation programs and policies are created, we must ensure residents in these communities are receiving their share of funding and incentives. For too long, this has not been the case. For many residents in disadvantaged and low-income communities, the decision to purchase a new vehicle does not come lightly. Buying a new vehicle is often a long-term financial commitment lasting, at times, several decades. Without added incentives, consumers are likely to be drawn towards cheaper, gas-burning vehicles instead of environmentally friendlier options that are more cost-efficient over the life of the vehicle. Providing additional rebate incentives, prioritization and outreach efforts will increase the proliferation of environmentally friendly vehicles in areas where they are needed the most.”
   
2. Minor amendment. As written, AB 2885 requires ARB to “prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in low-income communities.” (Emphasis added.)
   
   If the goal of the Legislature is to ensure that low-income applicants are prioritized under CVRP, then the emphasized language is problematic. It is a fact that not all residents of low-income communities are themselves low-income. Indeed, it is possible for very wealthy people to live, or have residences, in low-income communities. Additionally, as AB 2885 is written, nothing in law would stop a wealthy person from purchasing a CVRP-eligible vehicle and registering it at an address in a low-income community while not living in, or operating the vehicle, in the community in which the vehicle is registered.
   
   In order to ensure the prioritization of low-income applicants and to avoid creating a loophole, an amendment is needed to strike the emphasized language above.
   

Related/Prior Legislation

AB 118 (Núñez, Chapter 750, Statutes of 2007) established the EFMP, ARFVTP, and the AQIP.

SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016), among other things, required outreach to low-income households for CVRP and set the following income caps for CVRP eligibility: $150K for applicants that file taxes as a single individual, $204K for those that file head of household, and $300K for those that file jointly.

SB 1275 (de León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to place in service at least 1.0 million zero-emission and near-zero-emission vehicles by January 1, 2023, with a focus on disadvantaged and low-and-moderate-income communities.

AB 1851 (Gray, 2016) would have created and expanded a broad array of incentive programs to increase the sale and use of certain clean air vehicles. AB 1851 died in the Assembly Appropriations Committee.

AB 1710 (Calderon, 2016) would have required ARB, in coordination with the California Energy 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 increase the use of ZEVs to meet the state’s emissions reduction goals. AB 1710 died in the Assembly Appropriations Committee.

AB 2564 (Cooper, 2016) would have required ARB to adopt regulations for CVRP to lower CVRP income limits, prioritize rebate payments for low-income consumers, increase rebate payments for low-income applicants, and increase outreach to low-income households. AB 2564 died in the Senate Environmental Quality Committee.

DOUBLE REFERRAL:

If this measure is approved by the Senate Environmental Quality Committee, the do pass motion must include the action to re-refer the bill to the Senate Transportation and Housing Committee.

SOURCE:

Author

SUPPORT:

San Diego Gas & Electric Company

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2885

Author:(Rodriguez)

As Amended Ver:May 17, 2018

Majority vote

SUMMARY: Requires the California Air Resources Board (ARB), for purposes of the Clean Vehicle Rebate Project (CVRP), to provide outreach and prioritize rebate payments to low income applicants and applicants in low-income communities.

Specifically, this bill:

1. Requires ARB for purposes of the CVRP to:
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of the CVRP; and
   2. Prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in low-income communities.
2. Defines "low-income communities" as census tracts with median household incomes at or below 80% of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development's list of state income limits.
3. Defines "low-income" as a resident of the state whose household income is less than or equal to 300% of the federal poverty level.

FISCAL EFFECT: According to the Assembly Appropriations Committee, likely minor and absorbable costs for ARB to update the parameters of the CVRP program when the existing statutory parameters sunset and the parameters established in this bill take effect. Because the CVRP was created under authority given to ARB as part of the Air Quality Improvement Program (AQIP), this bill does not appear to impact the continuance of the CVRP program or its funding levels.

COMMENTS: Pursuant to their authority under AQIP, ARB developed CVRP. CVRP is intended to encourage and accelerate the purchase and use of zero-emission vehicles (ZEVs) and near-zero emission vehicles (NZEVs) to help improve air quality, reduce greenhouse gas (GHG) emissions, and achieve the Legislature's goal of placing 1 million ZEVs on California's roadways by 2023, the Governor's 2012 goal of placing 1.5 million ZEVs on California's roadways by 2025 (Executive Order B-16-12) and the Governor's new goal of 5 million ZEVs on the road by 2030 (Executive Order B-48-18).

As of June 30, 2017, CVRP has provided rebates for 205,007 vehicles since the project's launch in 2010. The program offers vehicle rebates on a first-come, first-served basis and has been typically oversubscribed each year. When the funding is exhausted, applicants are "waitlisted" and are issued rebates in the order they applied when monies are allocated in the next funding cycle.

While CVRP has been effective in creating a market for ZEVs, it has come under increasing criticism that the majority of individuals receiving rebates are wealthy, living in affluent communities that, comparatively, experience better air quality than other areas of the state.

To address these concerns, SB 1275 (De Leon), Chapter 530, Statutes of 2014, called upon ARB to establish CVRP rebate eligibility based on income. In response, ARB established income caps and, in 2016, the Legislature approved a budget trailer bill [SB 859 (Budget and Fiscal Review Committee), Chapter 368, Statutes of 2016] that established an income cap for the CVRP of $150,000 for single filers, $204,000 for head-of-household filers and $300,000 for joint filers and exempted fuel-cell electric cars rebates from the new income cap. SB 859 also required ARB to conduct outreach to low- income communities, offer additional rebate payments of $500 for low-income applicants, and prioritize rebate payments for low-income applicants. SB 859 had a sunset date of July 1, 2017, and AB 615 (Cooper), Chapter 631, Statutes of 2017, extended the sunset date to January 1, 2019.

To ensure that CVRP is reaching its goal of ZEV market acceleration, AB 615 also required the ARB, by December 1, 2018, to prepare and submit to the Legislature a report on the impact the CVRP has had on the state's zero-emission vehicle market. In developing the report, ARB is required to consider the impact of income caps, increased rebates for low-income consumers, and increased outreach on the electric vehicle market, as well as a quantification of emissions reductions attributable to CVRP.

Through CVRP, ARB offers a rebate of $5,000 for hydrogen electric, $2,500 for battery electric, and $1,500 for plug-in hybrid electric vehicles, and an additional $2,000 for low income drivers (above the minimum $500 stated in law). These rebates are a crucial part of the Governor's new Executive Order and new eight-year initiative to accelerate sales of ZEVs. As part of this initiative, the administration is proposing a total of $200 million annually from the Greenhouse Gas Reduction Fund (GGRF) through 2025, which includes $175 million for CVRP and $25 for additional incentives for low-income consumers. As the number of clean vehicles purchased increases over time, ARB has indicated that it will revise the program's income eligibility requirements to target moderate and low-income consumers that are most influenced by the availability of rebates. Additionally, ARB is planning to continue to grow their existing efforts of outreach and public education to low-income and disadvantaged communities by partnering with community based organizations, developing educational materials, and coordinating ZEV test drives.

The author believes that by providing outreach and prioritizing certain applicants, post January 1, 2019, the CVRP will more effectively target communities that need it most.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093 FN: 0002945

ASSEMBLY THIRD READING

ATR Bill Id:AB 2885

Author:(Rodriguez)

As Amended Ver:April 25, 2018

Majority vote

SUMMARY: Requires the California Air Resources Board (ARB), for purposes of the Clean Vehicle Rebate Project (CVRP), to provide outreach and prioritize rebate payments to low income applicants and applicants in low-income communities.

Specifically, this bill:

1. Requires ARB for purposes of the CVRP to:
   1. Provide outreach to low-income households and low-income communities to increase consumer awareness of the rebate project.
   2. Prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in low-income communities.
2. Defines "low-income communities" as census tracts with median household incomes at or below 80% of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development's list of state income limits.
3. Defines "low-income" as a resident of the state whose household income is less than or equal to 300% of the federal poverty level.

FISCAL EFFECT: According to the Assembly Appropriations Committee, likely minor and absorbable costs for ARB to update the parameters of the CVRP program when the existing statutory parameters sunset and the parameters established in this bill take effect. Because the CVRP was created under authority given to ARB as part of the Air Quality Improvement Program (AQIP), this bill does not appear to impact the continuance of the CVRP program or its funding levels.

COMMENTS: Pursuant to their authority under Air Quality Improvement Program (AQIP), ARB developed CVRP. CVRP is intended to encourage and accelerate the purchase and use of zero-emission vehicles (ZEVs) and near-zero emission vehicles (NZEVs) to help improve air quality, reduce GHG emissions, and achieve the Legislature's goal of placing 1 million ZEVs on California's roadways by 2023, the Governor's 2012 goal of placing 1.5 million ZEVs on California's roadways by 2025 (Executive Order B-16-12) and the Governor's new goal of 5 million ZEVs on the road by 2030 (Executive Order B-48-18).

As of June 30, 2017, CVRP has provided rebates for 205,007 vehicles since the project's launch in 2010. The program offers vehicle rebates on a first-come, first-served basis and has been typically oversubscribed each year. When the funding is exhausted, applicants are "waitlisted" and are issued rebates in the order they applied when monies are allocated in the next funding cycle.

While CVRP has been effective in creating a market for ZEVs, it has come under increasing criticism that the majority of individuals receiving rebates are wealthy, living in affluent communities that, comparatively, experience better air quality than other areas of the state.

To address these concerns, SB 1275 (De Leon), Chapter 530, Statutes of 2014, called upon ARB to establish CVRP rebate eligibility based on income. In response, ARB established income caps and, in 2016, the Legislature approved a budget trailer bill [SB 859 (Budget and Fiscal Review Committee), Chapter 368, Statutes of 2016] that established an income cap for the CVRP of $150,000 for single filers, $204,000 for head-of-household filers and $300,000 for joint filers and exempted fuel-cell electric cars rebates from the new income cap. SB 859 also required ARB to conduct outreach to low- income communities, offer additional rebate payments of $500 for low-income applicants, and prioritize rebate payments for low-income applicants. SB 859 had a sunset date of July 1, 2017, and AB 615 (Cooper), Chapter 631, Statutes of 2017, extended the sunset date to January 1, 2019.

To ensure that CVRP is reaching its goal of ZEV market acceleration, AB 615 also required the ARB, by December 1, 2018, to prepare and submit to the Legislature a report on the impact the CVRP has had on the state's zero-emission vehicle market. In developing the report, ARB is required to consider the impact of income caps, increased rebates for low-income consumers, and increased outreach on the electric vehicle market, as well as a quantification of emissions reductions attributable to CVRP.

Through CVRP, ARB offers a rebate of $5,000 for hydrogen electric, $2,500 for battery electric, and $1,500 for plug-in hybrid electric vehicles, and an additional $2,000 for low income drivers (above the minimum $500 stated in law). These rebates are a crucial part of the Governor's new Executive Order and new eight-year initiative to accelerate sales of ZEVs. As part of this initiative, the administration is proposing a total of $200 million annually from GGRF through 2025, which includes $175 million for CVRP and $25 for additional incentives for low-income consumers. As the number of clean vehicles purchased increases over time, ARB has indicated that it will revise the program's income eligibility requirements to target moderate and low-income consumers that are most influenced by the availability of rebates. Additionally, ARB is planning to continue to grow their existing efforts of outreach and public education to low-income and disadvantaged communities by partnering with community based organizations, developing educational materials, and coordinating ZEV test drives.

The author believes that by providing outreach and prioritizing certain applicants, post January 1, 2019, the CVRP will more effectively target communities that need it most.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093 FN: 0002932

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2885

Author:(Rodriguez) – As Amended Ver:April 25, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Air Resources Board (ARB), for purposes of the Clean Vehicle Rebate Project (CVRP), to provide outreach and prioritize rebate payments to low income applicants and applicants in low-income communities, beginning January 1, 2019.

FISCAL EFFECT:

Likely minor and absorbable costs for ARB to update the parameters of the CVRP program when the existing statutory parameters sunset and the parameters established in this bill take effect. Because the CVRP was created under authority given to ARB as part of the Air Quality Improvement Program (AQIP), this bill does not appear to impact the continuance of the CVRP program or its funding levels.

COMMENTS:

1. Background. AB 118 (Nunez), Chapter 750, Statutes of 2007, established the AQIP and gave ARB authority to create and administer programs as part of AQIP. Pursuant to the statutory authority provided in AB 118, ARB created the CVRP, which it has operated since 2010 to provide rebates to California residents who purchase or lease plug-in electric hybrid, battery electric, and fuel cell vehicles. Since the CVRP’s inception, ARB has provided rebates to about 230,000 residents for a total of $514 million. SB 859 (Committee on Budget and Fiscal Review), Chapter 368, Statutes of 2016 sets certain parameters for the CVRP including capping eligibility for the program based on income. The parameters established in SB 859 were set to sunset on July 1, 2017, but were extended to January 1, 2019, by AB 615 (Cooper), Chapter 631, Statutes of 2017.
2. Purpose. This bill continues some of the statutory parameters for CVRP that are set to expire on January 1, 2019, and expands certain parameters relative to the existing requirements. This bill will ensure that ARB continues to prioritize CVRP rebates for low-income applicants.

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: April 23, 2018

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2885 (

Author:Rodriguez) – As Amended Ver:April 2, 2018

SUBJECT: Air Quality Improvement Program: Clean Vehicle Rebate Project.

SUMMARY: Requires the California Air Resources Board (ARB), for purposes of the Clean Vehicle Rebate Project (CVRP), to provide outreach and prioritize rebate payments to low income applicants and applicants in disadvantaged communities, beginning January 1, 2019. Specifically, this bill:

1. Requires ARB, beginning January 1, 2019, for purposes of the CVRP, to:
2. Provide outreach to low-income households and disadvantaged communities to increase consumer awareness of the rebate project.
3. Prioritize rebate payments to low-income applicants and applicants with eligible vehicles registered in disadvantaged communities.
4. Give highest priority to applicants who are low-income and the second highest priority to applicants who have an eligible vehicle registered in a disadvantage community.
5. Defines “disadvantaged community” as a community identified by the California Environmental Agency’s (CalEPA) CalEnviroScreen tool.
6. Defines “low-income” as a resident of the state whose household income is less than or equal to 300% of the federal poverty level.

EXISTING LAW:

1. Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Núñez), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020 and to use market-based mechanisms (cap-and-trade) to achieve compliance with these regulations.
2. Requires, pursuant to SB 32 (Pavley), Chapter 249, Statutes of 2016, that ARB ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030.
3. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund and requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop, as specified, an investment plan for the moneys deposited in the GGRF.
4. Establishes the Charge Ahead California Initiative pursuant to SB 1275 (de León), Chapter 530, Statutes of 2014, that, among other things, includes the goal of placing at least one million zero-emission vehicles (ZEV) and near-zero emission vehicles (NZEV) into service by January 1, 2023, and increasing access to these vehicles for disadvantaged, low-income, and moderate-income communities and consumers.
5. Requires CalEPA to develop a methodology that identifies disadvantaged communities and requires that these areas be identified based on specified geographic, socioeconomic, and environmental hazard criteria. To meet this requirement CalEPA developed the CalEnviroScreen tool.
6. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
7. Establishes the CVRP, as part of AQIP, to provide incentives, in the form of rebates toward the purchase of certain new, light-duty ZEVs. Rebates are provided on a first-come, first-served basis.
8. Requires ARB , beginning November 1, 2016, and until January 1, 2019, to:
   1. Offer rebates on battery electric and plug-in hybrid vehicles to applicants whose income does not exceed the following:
9. $150,000 for single filers;
   
   • • 1. $204,000 for head-of-household filers; or,
       2. $300,000 for joint filers.
   1. Provide an additional $500 to low-income applicants for all eligible vehicle types.
   2. Offer rebates only for plug-in hybrid vehicles that have an electric range of at least 20 miles.
   3. Provide outreach to low-income households to increase consumer awareness of the CVRP.
   4. Prioritize rebate payments to low-income applicants.
10. Requires ARB, by December 31, 2018, to work with, and contract with, either the University of California or the California State University to prepare and submit to the Legislature a report on the impact of the CVRP on the state’s zero-emission vehicle market and requires ARB to include in the report an evaluation of the impact of income caps, increased rebates for low-income consumers, and increased outreach on the electric vehicle market, as well as a quantification of emissions reductions attributable to the CVRP.
11. Requires the Department of Finance, by July 1, 2018, to submit to the Legislature a report evaluating the fiscal impact of CVRP rebates.
12. Defines “low-income communities” as census tracts with median household incomes at or below 80% of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits.

FISCAL EFFECT: Unknown

COMMENTS: Pursuant to their authority under AQIP, ARB developed CVRP. CVRP is intended to encourage and accelerate the purchase and use of ZEVs and NZEVs to help improve air quality, reduce GHG emissions, and achieve the Legislature's goal of placing 1 million ZEVs on California's roadways by 2023, the Governor’s 2012 goal of placing 1.5 million ZEVs on California's roadways by 2025 (Executive Order B-16-12) and the Governor’s new goal of 5 million ZEVs on the road by 2030 (Executive Order B-48-18).

As of June 30, 2017, CVRP has provided rebates for 205,007 vehicles since the project’s launch in 2010. The program offers vehicle rebates on a first-come, first-served basis and has been typically oversubscribed each year. When the funding is exhausted, applicants are "waitlisted" and are issued rebates in the order they applied when monies are allocated in the next funding cycle.

While CVRP has been effective in creating a market for ZEVs, it has come under increasing criticism that the majority of individuals receiving rebates are wealthy, living in affluent communities that, comparatively, experience better air quality than other areas of the state.

To address these concerns, SB 1275 called upon ARB to establish CVRP rebate eligibility based on income. In response, ARB established income caps and, in 2016, the Legislature approved a budget trailer bill [AB 859 (Committee on Budget), Chapter 368, Statutes of 2016] that established an income cap for the CVRP of $150,000 for single filers, $204,000 for head-of-household filers and $300,000 for joint filers and exempted fuel-cell electric cars rebates from the new income cap. AB 859 also required ARB to conduct outreach to low- income communities, offer additional rebate payments of $500 for low-income applicants, and prioritize rebate payments for low-income applicants. AB 859 had a sunset date of July 1, 2017, and
AB 615 (Cooper), Chapter 631, Statutes of 2017, extended the sunset date to January 1, 2019.

To ensure that CVRP is reaching its goal of ZEV market acceleration, AB 615 also required the ARB, by December 1, 2018, to prepare and submit to the Legislature a report on the impact the CVRP has had on the state's zero-emission vehicle market. In developing the report, ARB is also required to consider the impact of income caps, increased rebates for low-income consumers, and increased outreach on the electric vehicle market, as well as a quantification of emissions reductions attributable to CVRP.

Through CVRP, ARB offers a rebate of $5,000 for hydrogen electric, $2,500 for battery electric, and $1,500 for plug-in hybrid electric vehicles, and an additional $2,000 for low income drivers (above the minimum $500 stated in law). These rebates are a crucial part of the Governor’s new Executive Order and new eight-year initiative to accelerate sales of ZEVs. As part of this initiative, the administration is proposing a total of $200 million annually from GGRF through 2025, which includes $175 million for CVRP and $25 for additional incentives for low-income consumers. As the number of clean vehicles purchased increases over time, ARB has indicated that it will revise the program’s income eligibility requirements to target moderate and low-income consumers that are most influenced by the availability of rebates. Additionally, ARB is planning to continue to grow their existing efforts of outreach and public education to low-income and disadvantaged communities by partnering with community based organizations, developing educational materials, and coordinating ZEV test drives.

CalEPA developed the CalEnviroScreen tool, using environmental, health, and socioeconomic information from every census tract in the state, to identify disadvantaged communities that are most effected by pollution. As reported in the March 2016, Annual Report to the Legislature on California Climate Investments Using Cap-and Trade Proceeds, about 6 percent of the CVRP funding has been spent in these types of communities. However, with the recent income eligibility changes, it is expected that funding in these communities will increase. The author believes that by providing outreach and prioritizing applicants from disadvantaged communities and low-income applicants, post January 1, 2019, the CVRP will more effectively target communities that need it most.

Suggested Committee Amendments: Although the state uses the CalEnviroScreen tool to identify “disadvantaged communities” that are most affected by pollution, this term may not be suitable for the prioritization of purchase incentives and may lead to higher income residents that live in these communities to be prioritized over others. In order to capture communities with specified concentrations of low-income residents, the committee suggests the author amend the bill to strike out all references to “disadvantaged community” or “disadvantaged communities” and instead replace the references with “low-income communities”.

Previous legislation: AB 615 (Cooper), Chapter 631, Statutes of 2017, among other things, extended the sunset on the income restrictions for CVRP from July 1, 2017 to January 1, 2019.

AB 2564 (Cooper) of 2016, would have required ARB to adopt regulations for CVRP to lower CVRP income limits, prioritize rebate payments for low-income consumers, increase rebate payments for low-income applicants, and increase outreach to low-income households. AB 2564 failed passage in the Senate Environmental Quality Committee.

SB 32 (Pavley), Chapter 249, Statute of 2016, required ARB to ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by 2030.

SB 859 (Committee on Budget), Chapter 368, Statutes of 2016, among other things, imposed specified income eligibility limits on CVRP.

SB 1275 (de León), Chapter 530, Statutes of 2014, established the Charge Ahead California Initiative to provide incentives that increase the availability of ZEV and NZEV vehicles, particularly in disadvantaged and low-and-moderate-income communities.

SB 535 (de León), Chapter 830, Statutes of 2012, among other things, required the California Environmental CalEPA to identify disadvantaged communities for investment opportunities and required disadvantaged communities to be identified based on geographic, socioeconomic, public health, and environmental hazard criteria.

AB 32 (Núñez), Chapter 488, Statutes of 2006, required ARB to develop and implement regulations necessary to reduce emissions to 1990 levels by the year 2020.

AB 118 (Núñez), Chapter 750, Statutes of 2007, established the AQIP.

REGISTERED SUPPORT / OPPOSITION:

Support

San Diego Gas & Electric Company

Opposition

None on file

Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093