SB 1014: California Clean Miles Standard and Incentive Program: zero-emission vehicles.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-09-13
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. Existing law establishes the Air Quality Improvement Program, which is administered by the state 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. 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.
This bill would establish the California Clean Miles Standard and Incentive Program, which would require, by January 1, 2020, that the state board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis, as provided. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop a greenhouse gas emissions reduction plan that includes proposals on how to meet the targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The bill would require the state board to work with transportation network companies, including their affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. Existing law establishes the Air Quality Improvement Program, which is administered by the state 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. 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.
This bill would establish the California Clean Miles Standard and Incentive Program, which would require, by January 1, 2020, that the state board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis, as provided. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop a greenhouse gas emissions reduction plan that includes proposals on how to meet the targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The bill would require the state board to work with transportation network companies, including their affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. Existing law establishes the Air Quality Improvement Program that Program, which is administered by the state 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. 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.
This bill would establish the California Clean Miles Standard and Incentive Program, which would require, by January 1, 2020, that the state board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. basis, as provided. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop a greenhouse gas emissions reduction plan that includes proposals on how to meet the targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The bill would require the state board to work with transportation network companies, including their affiliates or entities contracting with transportation network companies with zero-emission vehicles, affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. Existing law establishes the Air Quality Improvement Program that is administered by the state 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. 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.
This bill would require, would establish the California Clean Miles Standard and Incentive Program, which would require, by January 1, 2020, that the state board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger mile passenger-mile driven on behalf of a transportation network company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop a greenhouse gas emissions reduction plan that includes proposals on how to meet the targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. The bill would require the commission to solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The bill would require the state board to work with transportation network companies, including their affiliates, affiliates or entities contracting with transportation network companies with zero-emission vehicles, and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. Existing law establishes the Air Quality Improvement Program that is administered by the state 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. 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.
This bill would require, by January 1, 2020, that the state board establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions of greenhouse gases per passenger mile driven on behalf of a transportation network company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop a greenhouse gas emissions reduction plan that includes proposals on how to meet the targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. The bill would require the commission to solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The bill would require the state board to work with transportation network companies, their affiliates, or entities contracting with transportation network companies with zero-emission vehicles, and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. 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.
This bill would require, by January 1, 2020, that the state board establish an emissions baseline for a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets and goals starting in 2023 for the reduction under that baseline for emissions per of greenhouse gases per passenger mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. company. The bill would require that the targets and goals meet specified requirements. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an a greenhouse gas emissions reductions reduction plan that includes proposals on how to meet the emissions reduction targets and goals for reducing emissions of greenhouse gases that would be established pursuant to the bill. The bill would require the commission to solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. 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.
This bill would require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
Existing law requires the State Air Resources Board (state board) to achieve the maximum degree of emissions reduction possible from vehicular and other mobile sources to accomplish the attainment of state standards at the earliest practicable date. 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.
This bill would require the commission to establish the California Clean Miles Standard Program for zero-emission vehicles used to provide prearranged transportation services for compensation from transportation network companies with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 20% of the passenger miles are provided by zero-emission vehicles by December 31, 2023, and 50% of the passenger miles are provided by zero-emission vehicles by December 31, 2026. The bill would require the commission to establish quarterly targets for the portion of vehicle or passenger miles traveled by zero-emission vehicles on behalf of a transportation network company. require, by January 1, 2020, that the state board establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The bill would require, by January 1, 2021, that the state board establish, and the commission implement, annual targets starting in 2023 for the reduction under that baseline for emissions per mile driven on behalf of a transportation network company, including annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles. The bill would require, by January 1, 2022, and every 2 years thereafter, that each transportation network company develop an emissions reductions plan that includes proposals on how to meet the emissions reduction targets that would be established pursuant to the bill. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation for a from transportation network company companies with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 20% of the passenger miles are provided by zero-emission vehicles by December 31, 2023, and 50% of the passenger miles are provided by zero-emission vehicles by December 31, 2026. The bill would require the commission to establish quarterly targets for the portion of vehicle or passenger miles traveled by zero-emission vehicles on behalf of a transportation network company. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation for a transportation network company with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 20% of the passenger miles are provided by zero-emission vehicles by December 31, 2020, 2023, and 50% of the passenger miles are provided by zero-emission vehicles by December 31, 2023. 2026. The bill would require the commission to establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation for a transportation network company with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100% 20% of the passenger miles are provided by zero-emission vehicles by December 31, 2028. 2020, and 50% of the passenger miles are provided by zero-emission vehicles by December 31, 2023. The bill would require the commission to establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. The bill would require, beginning January 1, 2030, that 100% of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company be zero-emission vehicles. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission, in consultation with the State Air Resources Board (state board), commission to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles, as defined, vehicles used by participating drivers to provide prearranged transportation services for compensation for a transportation network company with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100% of the passenger miles are provided by zero-emission vehicles by December 31, 2028. The bill would require the commission, in consultation with the state board, commission to establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
Existing law establishes the Air Quality Improvement Program that is administered by the state 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.This bill would require the state board, out of any future appropriation for the Clean Vehicle Rebate Project, to reserve up to $300,000,000 for rebates or other incentives for applicants purchasing zero-emission vehicles who certify as to a vehicle that the vehicle will be used to provide prearranged transportation services using a transportation network companys online-enabled application or platform to connect with passengers, and that the zero-emission vehicle will replace a vehicle that is powered by burning fossil fuels.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission, in consultation with the State Air Resources Board (state board), to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles, as defined, used by participating drivers to provide prearranged transportation services for compensation for a transportation network company with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100% of the passenger miles are provided by zero-emission vehicles by December 31, 2028. The bill would require the commission, in consultation with the state board, to establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
Existing law establishes the Air Quality Improvement Program that is administered by the state 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.
This bill would require the state board, out of any future appropriation for the Clean Vehicle Rebate Project, to reserve up to $30,000,000 $300,000,000 for rebates or other incentives for applicants purchasing zero-emission vehicles who certify as to a vehicle that the vehicle will be used to provide prearranged transportation services using a transportation network companys online-enabled application or platform to connect with passengers, and that the zero-emission vehicle will replace a vehicle that is powered by burning fossil fuels.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Passenger Charter-party Carriers Act, provides for the regulation of charter-party carriers of passengers by the Public Utilities Commission, and makes it unlawful for a charter-party carrier to operate without first obtaining a permit or certificate from the commission, except as specified. The act includes specified requirements for liability insurance coverage for transportation network companies, as defined, and their participating drivers. Under existing law, a violation of the act or an order or direction of the commission pursuant to the act is a crime.
This bill would require the commission, in consultation with the State Air Resources Board (state board), to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles, as defined, used by participating drivers to provide prearranged transportation services for compensation for a transportation network company with the goal to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100% of the passenger miles are provided by zero-emission vehicles by December 31, 2028. The bill would require the commission, in consultation with the state board, to establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. Because the violation of a commission order or direction implementing the bills provisions would be a crime, the bill would impose a state-mandated local program.
Existing law establishes the Air Quality Improvement Program that is administered by the state 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.
This bill would require the state board, out of any future appropriation for the Clean Vehicle Rebate Project, to reserve up to $30,000,000 for rebates or other incentives for applicants purchasing zero-emission vehicles who certify as to a vehicle that the vehicle will be used to provide prearranged transportation services using a transportation network companys online-enabled application or platform to connect with passengers, and that the zero-emission vehicle will replace a vehicle that is powered by burning fossil fuels.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of the smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through the coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and the removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 11 (commencing with Section 44125) of Chapter 5 of Part 5 of Division 26 of the Health and Safety Code) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantaged communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuel and Vehicle Technology Program (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to the adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)Investor-owned utilities can help support the increased deployment of zero-emission vehicles.
(p)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 44274.4 is added to the Health and Safety Code, to read:44274.4.(a)For purposes of this section, the following terms have the following meanings:
(1)California Clean Miles Standard and Incentive Program means the program established pursuant to Section 5450 of the Public Utilities Code.
(2)Clean Vehicle Rebate Project means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.
(3)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(4)Zero-emission vehicle has the same meaning as defined in Section 44258.
(b)The state board shall work with transportation network companies, including their affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
SEC. 3.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 4.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. For purposes of this section, emissions per-passenger-mile traveled means the estimated emissions from all vehicles miles traveled in periods 1, 2, and 3, as those terms are used by the commission, including miles driven with no passenger in the vehicles, divided by the total number of passenger miles resulting from transport by those vehicles in period 3, including facilitation of walking, biking, and other modes of active or zero-emission transportation. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger-miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero-Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission shall include, but is not limited to, all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The board and commission shall review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)Advance the goals of the California Clean Miles Standard and Incentive Program in reviewing utility transportation electrification applications filed pursuant to subdivision (b) of Section 740.12 and encourage collaboration between electric vehicle charging companies, investor-owned utilities, fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms, entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms, and transportation network companies on investments that would support the California Clean Miles Standard and Incentive Program, consistent with subdivision (b) of Section 740.12 and Executive Order B-48-18.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of the smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through the coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and the removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 11 (commencing with Section 44125) of Chapter 5 of Part 5 of Division 26 of the Health and Safety Code) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantaged communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuel and Vehicle Technology Program (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to the adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)Investor-owned utilities can help support the increased deployment of zero-emission vehicles.
(p)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 44274.4 is added to the Health and Safety Code, to read:44274.4.(a)For purposes of this section, the following terms have the following meanings:
(1)California Clean Miles Standard and Incentive Program means the program established pursuant to Section 5450 of the Public Utilities Code.
(2)Clean Vehicle Rebate Project means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.
(3)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(4)Zero-emission vehicle has the same meaning as defined in Section 44258.
(b)The state board shall work with transportation network companies, including their affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
SEC. 3.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 4.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. For purposes of this section, emissions per-passenger-mile traveled means the estimated emissions from all vehicles miles traveled in periods 1, 2, and 3, as those terms are used by the commission, including miles driven with no passenger in the vehicles, divided by the total number of passenger miles resulting from transport by those vehicles in period 3, including facilitation of walking, biking, and other modes of active or zero-emission transportation. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger-miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero-Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission shall include, but is not limited to, all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The board and commission shall review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)Advance the goals of the California Clean Miles Standard and Incentive Program in reviewing utility transportation electrification applications filed pursuant to subdivision (b) of Section 740.12 and encourage collaboration between electric vehicle charging companies, investor-owned utilities, fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms, entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms, and transportation network companies on investments that would support the California Clean Miles Standard and Incentive Program, consistent with subdivision (b) of Section 740.12 and Executive Order B-48-18.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of the smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through the coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and the removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 11 (commencing with Section 44125) of Chapter 5 of Part 5 of Division 26 of the Health and Safety Code) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantaged communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuel and Vehicle Technology Program (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to the adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)Investor-owned utilities can help support the increased deployment of zero-emission vehicles.
(p)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 44274.4 is added to the Health and Safety Code, to read:44274.4.(a)For purposes of this section, the following terms have the following meanings:
(1)California Clean Miles Standard and Incentive Program means the program established pursuant to Section 5450 of the Public Utilities Code.
(2)Clean Vehicle Rebate Project means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.
(3)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(4)Zero-emission vehicle has the same meaning as defined in Section 44258.
(b)The state board shall work with transportation network companies, including their affiliates or entities contracting with transportation network companies with zero-emission vehicles, affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
SEC. 3.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 4.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. For purposes of this section, emissions per-passenger-mile traveled means the estimated emissions from all vehicles miles traveled in periods 1, 2, and 3, as those terms are used by the commission, including miles driven with no passenger in the vehicles, divided by the total number of passenger miles resulting from transport by those vehicles in period 3, including facilitation of walking, biking, and other modes of active or zero-emission transportation. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger-miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero-Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to support the program shall be limited to annual reports of information necessary to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission, based upon commission shall include, but is not limited to, all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The board and commission shall review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)Advance the goals of the California Clean Miles Standard and Incentive Program in reviewing utility transportation electrification applications filed pursuant to subdivision (b) of Section 740.12 and encourage collaboration between electric vehicle charging companies, investor-owned utilities, fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms, entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms, and transportation network companies on investments that would support the California Clean Miles Standard and Incentive Program, consistent with subdivision (b) of Section 740.12 and Executive Order B-48-18.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of the smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through the coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and the removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) (Article 11 (commencing with Section 44125) of Chapter 5 of Part 5 of Division 26 of the Health and Safety Code) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage disadvantaged communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels Fuel and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) (Article 2 (commencing with Section 44272) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to the adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)Investor-owned utilities can help support the increased deployment of zero-emission vehicles.
(o)(p)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning, planning and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 44274.4 is added to the Health and Safety Code, to read:44274.4.(a)For purposes of this section, the following terms have the following meanings:
(1)California Clean Miles Standard and Incentive Program means the program established pursuant to Section 5450 of the Public Utilities Code.
(2)Clean Vehicle Rebate Project means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.
(3)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(4)Zero-emission vehicle has the same meaning as defined in Section 44258.
(b)The state board shall work with transportation network companies, including their affiliates, affiliates or entities contracting with transportation network companies with zero-emission vehicles, and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
SEC. 3.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 4.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger miles passenger-miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero Emission Zero-Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to support the program shall be limited to annual reports of information necessary to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission, based upon all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding the usage of zero-emission vehicles by transportation network companies. The board and commission shall review the available data related to barriers to expanding the usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)(A)Solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies through an existing or new proceeding, and consistent with subdivision (b) of Section 740.12, to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. These proposals shall do both of the following:(i)Prioritize deploying electric vehicle charging infrastructure in low-income communities.(ii)Include plans to install make-ready infrastructure to support the installation of electric vehicle charging equipment that will be available to participating drivers for transportation network companies and the public.(B)An electrical corporation may own and operate the make-ready infrastructure for the electric vehicle charging infrastructure in its proposal, if the commission determines that it is consistent with Section 740.12. The commission shall review, modify if appropriate, and decide whether to approve a proposal filed by an electrical corporation.(4)Advance the goals of the California Clean Miles Standard and Incentive Program in reviewing utility transportation electrification applications filed pursuant to subdivision (b) of Section 740.12 and encourage collaboration between electric vehicle charging companies, investor-owned utilities, and transportation network companies on investments that would support the California Clean Miles Standard and Incentive Program, consistent with subdivision (b) of Section 740.12 and Executive Order B-48-18.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 44274.4 is added to the Health and Safety Code, to read:44274.4.(a)For purposes of this section, the following terms have the following meanings:
(1)California Clean Miles Standard and Incentive Program means the program established pursuant to Section 5450 of the Public Utilities Code.
(2)Clean Vehicle Rebate Project means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.
(3)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(4)Zero-emission vehicle has the same meaning as defined in Section 44258.
(b)The board shall work with transportation network companies, their affiliates, or entities contracting with transportation network companies with zero-emission vehicles, and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
SEC. 2.SEC. 3.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 3.SEC. 4.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to support the program shall be limited to annual reports of information necessary to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission, based upon all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop a greenhouse gas emissions reduction plan. A transportation network company greenhouse gas emissions reduction plan shall include proposals on how to meet the targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that the program complements and supports the sustainable land-use objectives contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)(A)Solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies through an existing or new proceeding, and consistent with subdivision (b) of Section 740.12, to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. These proposals shall do both of the following:
(i)Prioritize deploying electric vehicle charging infrastructure in low-income communities.
(ii)Include plans to install make-ready infrastructure to support the installation of electric vehicle charging equipment that will be available to participating drivers for transportation network companies and the public.
(B)An electrical corporation may own and operate the make-ready infrastructure for the electric vehicle charging infrastructure in its proposal, if the commission determines that it is consistent with Section 740.12. The commission shall review, modify if appropriate, and decide whether to approve a proposal filed by an electrical corporation.
SEC. 4.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Brown issued Executive Order B-48-18 that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.(p)(o)In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(3)This section applies to transportation providers regulated by the commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b)(1)By January 1, 2020, the board shall establish an emissions baseline for a baseline for emissions of greenhouse gases for vehicles used on the online-enabled applications or platforms by transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, targets and goals, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or of greenhouse gases per passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage and goals shall include annual goals for increasing passenger miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero Emission Vehicle Action Plan, be consistent with the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, and be based upon data reported by the transportation network companies to the commission.
(3)The data required of transportation network companies to support the program shall be limited to annual reports of information necessary to determine average emissions of greenhouse gases per passenger-mile to be calculated by the board and commission, based upon all of the following:
(A)The total miles completed by drivers.
(B)The percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and zero-emission vehicles.
(C)Miles-weighted average network-wide grams of carbon dioxide per mile to produce an estimate of the emissions of greenhouse gases.
(D)Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(3)(4)The board shall delay adoption, and the commission shall delay implementation, of the targets and goals pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop an a greenhouse gas emissions reductions reduction plan. A transportation network company greenhouse gas emissions reductions reduction plan shall include proposals on how to meet the emissions reduction targets and goals for reducing emissions of greenhouse gases established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. commission, the board, and the Energy Commission shall ensure that ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of the California Clean Miles Standard and Incentive Program. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that ride-hailing services complement and support the program complements and supports the sustainable land-use objectives of sustainable communities strategies prepared pursuant to contained in Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
(4)(A)Solicit and facilitate pilot program proposals between electrical corporations, zero-emission vehicle charging companies, and transportation network companies through an existing or new proceeding, and consistent with subdivision (b) of Section 740.12, to promote the operation and use of zero-emission vehicles by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of zero-emission vehicles by participating drivers and the general public. These proposals shall do both of the following:
(i)Prioritize deploying electric vehicle charging infrastructure in low-income communities.
(ii)Include plans to install make-ready infrastructure to support the installation of electric vehicle charging equipment that will be available to participating drivers for transportation network companies and the public.
(B)An electrical corporation may own and operate the make-ready infrastructure for the electric vehicle charging infrastructure in its proposal, if the commission determines that it is consistent with Section 740.12. The commission shall review, modify if appropriate, and decide whether to approve a proposal filed by an electrical corporation.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness illnesses and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in vehicle charging infrastructure and removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating that created a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(h)In 2018, Governor Browns Brown issued Executive Order B-48-18 creating that created an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission vehicle charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.
(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(o)A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.
(p)In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(b)(1)By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.
(3)The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.(e)(d)In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in charging infrastructure and removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In October 2016, the Governors Interagency Working Group on Zero-Emission Vehicles released the 2016 ZEV Action Plan, updating the 2013 ZEV Action Plan, and those action plans have served as the states roadmap to achieve the goal of 1.5 million zero-emission vehicles on Californias roads by 2025.
(g)(h)In 2018, Governor Browns issued Executive Order B-48-18 creating an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(h)(i)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(i)(j)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(j)(k)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.
(k)(l)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(l)(m)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a smartphone. technology-based platform. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(m)(n)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(n)(o)A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.
(o)(p)In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission, in a new or existing proceeding, shall establish the California Clean Miles Standard Program for zero-emission vehicles used to provide prearranged transportation services for compensation from transportation network companies pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies.(b)The commission shall establish quarterly targets for the portion of vehicle or passenger miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle or passenger miles traveled shall be provided by zero-emission vehicles:(1)Twenty percent by December 31, 2023.(2)Fifty percent by December 31, 2026.5450.(a)(1)The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2)For purposes of this section, board means the State Air Resources Board.
(b)(1)By January 1, 2020, the board shall establish an emissions baseline for transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2)By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets shall be consistent with the Zero Emission Vehicle Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.
(3)The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c)By January 1, 2022, and every two years thereafter, each transportation network company shall develop an emissions reductions plan. A transportation network company emissions reductions plan shall include proposals on how to meet the emissions reduction targets established pursuant to subdivision (b) based upon the following:
(1)Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2)Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3)Decreased gram-per-mile greenhouse gas emissions rates.
(4)Increased passenger-miles in proportion to overall vehicle-miles.
(3)(d)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.
(c)(e)In implementing this section, the commission shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles. The commission shall additionally do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)The transportation sector accounts for almost 50 percent of the emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sectors emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
(b)California continues to have some of the most polluted air in the nation. According to the American Lung Associations 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
(c)Air pollution creates health impacts. The American Lung Association estimated that California suffered fifteen billion dollars ($15,000,000,000) in health costs in 2015 due to air pollution, including increases in respiratory illness and premature deaths.
(d)Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of greenhouse gases, set by the State Air Resources Board, through coordination of land use and transportation planning.
(e)The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires the State Air Resources Board and the State Energy Resources Conservation and Development Commission to pursue transportation electrification, including increasing access to zero-emission vehicles for low- and moderate-income communities, through investments in charging infrastructure and removal of regulatory barriers.
(f)In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating a goal of 1.5 million zero-emission vehicles on the road by 2025.
(g)In 2018, Governor Browns issued Executive Order B-48-18 creating an additional target of 5 million zero-emission vehicles by 2030. That order also sets zero-emission vehicle infrastructure goals of 200 hydrogen fueling stations and 250,000 zero-emission vehicle chargers, including 10,000 direct current fast chargers, by 2025.
(h)The State Air Resources Board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program (Article 3 (commencing with Section 44274.3) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code), to subsidize the purchase of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles, with a priority and an augmented funding amount for low-income drivers.
(i)Additionally, the State Air Resources Board has established the Enhanced Fleet Modernization Program (Article 2 (commencing with Section 2620) of Chapter 13 of Division 3 of Title 13 of the California Code of Regulation) and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, zero-emission vehicles by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to nine thousand five hundred dollars ($9,500) toward the purchase of an advanced technology vehicle.
(j)In 2017, the State Air Resources Board approved the first cycle of investment from the Volkswagen Settlement, which plans to invest eight hundred million dollars ($800,000,000) over a 10-year period in zero-emission charging infrastructure, public outreach on zero-emission vehicles, and investments in projects, such as car-sharing programs, that will increase access to zero-emission vehicles for all consumers in the state, including those in lower-income and disadvantage communities.
(k)The State Energy Resources Conservation and Development Commission administers the Alternative and Renewable Fuels and Vehicle Technology Program (Chapter 8.9 (commencing with Section 44271) of Part 5 of Division 26 of the Health and Safety Code) which invests up to one hundred million dollars ($100,000,000) annually in zero-emission vehicle fueling and charging infrastructure throughout the state.
(l)Ride-hailing services, known formally as transportation network companies, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a smartphone. As more Californians use ride-hailing services, transportation network companies are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize zero-emission vehicles, promoting and encouraging shared rides, and helping to reduce congestion.
(m)Zero-emission vehicles not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. Transportation network company drivers with high vehicle miles traveled are ideal candidates for zero-emission vehicles because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of zero-emission vehicles by transportation network companies include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
(n)A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time transportation network company driver working 50 hours a week can save an average of five-thousand two hundred dollars ($5,200) per year in total vehicle expenses with an electric vehicle as compared to a gas combustion vehicle.
(o)In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
SECTION 1.SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 2.SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission commission, in a new or existing proceeding, shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation from transportation network companies pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies.
(b)The commission shall establish quarterly targets for the portion of vehicle or passenger miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle or passenger miles traveled shall be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2023.
(2)Fifty percent by December 31, 2026.
(3)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, vehicle fleet means 10 or more vehicles under common ownership or operation.
(c)In implementing this section, the commission shall do all the following:
(1)Ensure minimal negative impact on low-income and moderate-income drivers.
(2)Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Section 65080 of the Government Code.
(3)Support the goals of clean mobility for low- and moderate-income individuals.
SEC. 3.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 2.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies.
(b)The commission shall establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle miles traveled shall be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2020. 2023.
(2)Fifty percent by December 31, 2023. 2026.
(3)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company shall be zero-emission vehicles.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 2.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100 percent of the passenger miles are provided by zero-emission vehicles by December 31, 2028. companies.
(b)The commission shall establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle miles traveled shall be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2020.
(2)Fifty percent by December 31, 2023.
(3)One hundred percent by December 31, 2028.(3)Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company shall be zero-emission vehicles.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle means a personal vehicle that produces no emissions of criteria pollutants, toxic air contaminants, and greenhouse gases when stationary or operating, as determined by the State Air Resources Board. has the same meaning as in Section 44258 of the Health and Safety Code.
SEC. 3.SEC. 2.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission, in consultation with the State Air Resources Board, commission shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100 percent of the passenger miles are provided by zero-emission vehicles by December 31, 2028.
(b)The commission, in consultation with the State Air Resources Board, commission shall establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle miles traveled be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2020.
(2)Fifty percent by December 31, 2023.
(3)One hundred percent by December 31, 2028.
(c)The commission, in consultation with the State Air Resources Board, shall establish a mechanism for the state board to verify whether a person applying for incentives pursuant to the Clean Vehicle Rebate Project established as part of the Air Quality Improvement Program pursuant to Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code, is a driver providing prearranged transportation services for compensation pursuant to this article.SEC. 4.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)For purposes of this section, the following terms have the following meanings:
(1)Future appropriation for the Clean Vehicle Rebate Project means an appropriation to the state board to be used for the Clean Vehicle Rebate Program that is made subsequent to the one hundred forty million dollars ($140,000,000) appropriated for that program to the State Air Resources Board by Item 3900-101-3228 of Section 2.00 of the Budget Act of 2017, made by Chapter 254 of the Statutes of 2017.
(2)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(b)Out of any future appropriation for the Clean Vehicle Rebate Project, established as part of the Air Quality Improvement Program, the state board shall reserve up to thirty three hundred million dollars ($30,000,000) ($300,000,000) for rebates or other incentives for applicants purchasing zero-emission vehicles who certify as to a vehicle both of the following:
(1)The vehicle will be used to provide prearranged transportation services using a transportation network companys online-enabled application or platform to connect with passengers.
(2)The vehicle will be used to replace a vehicle that is powered by burning fossil fuels for those purposes.
SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle means a personal vehicle that produces no emissions of criteria pollutants, toxic air contaminants, and greenhouse gases when stationary or operating, as determined by the State Air Resources Board.
SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission, in consultation with the State Air Resources Board, shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100 percent of the passenger miles are provided by zero-emission vehicles by December 31, 2028.
(b)The commission, in consultation with the State Air Resources Board, shall establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle miles traveled be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2020.
(2)Fifty percent by December 31, 2023.
(3)One hundred percent by December 31, 2028.
(c)The commission, in consultation with the State Air Resources Board, shall establish a mechanism for the state board to verify whether a person applying for incentives pursuant to the Clean Vehicle Rebate Project established as part of the Air Quality Improvement Program pursuant to Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code, is a driver providing prearranged transportation services for compensation pursuant to this article.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)For purposes of this section, the following terms have the following meanings:
(1)Future appropriation for the Clean Vehicle Rebate Project means an appropriation to the state board to be used for the Clean Vehicle Rebate Program that is made subsequent to the one hundred forty million dollars ($140,000,000) appropriated for that program to the State Air Resources Board by Item 3900-101-3228 of Section 2.00 of the Budget Act of 2017, made by Chapter 254 of the Statutes of 2017.
(2)Transportation network company has the same meaning as defined in Section 5431 of the Public Utilities Code.
(b)Out of any future appropriation for the Clean Vehicle Rebate Project, established as part of the Air Quality Improvement Program, the state board shall reserve up to thirty million dollars ($30,000,000) for rebates or other incentives for applicants purchasing zero-emission vehicles who certify as to a vehicle both of the following:
(1)The vehicle will be used to provide prearranged transportation services using a transportation network companys online-enabled application or platform to connect with passengers.
(2)The vehicle will be used to replace a vehicle that is powered by burning fossil fuels for those purposes.
SEC. 2.Section 5431 of the Public Utilities Code is amended to read:5431.For purposes of this article, the following terms have the following meanings:
(a)Participating driver or driver means any person who uses a vehicle in connection with a transportation network companys online-enabled application or platform to connect with passengers.
(b)Personal vehicle means a vehicle that is used by a participating driver to provide prearranged transportation services for compensation that meets all of the following requirements:
(1)Has a passenger capacity of eight persons or less, including the driver.
(2)Is owned, leased, rented for a term that does not exceed 30 days, or otherwise authorized for use by the participating driver.
(3)Meets all inspection and other safety requirements imposed by the commission.
(4)Is not a taxicab or limousine.
(c)Transportation network company means an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
(d)Transportation network company insurance means a liability insurance policy that specifically covers liabilities arising from a drivers use of a vehicle in connection with a transportation network companys online-enabled application or platform.
(e)Zero-emission vehicle means a personal vehicle that produces no emissions of criteria pollutants, toxic air contaminants, and greenhouse gases when stationary or operating, as determined by the State Air Resources Board.
SEC. 3.Section 5450 is added to the Public Utilities Code, to read:5450.(a)The commission, in consultation with the State Air Resources Board, shall establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation pursuant to this article. The goal of the program is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of transportation network companies so that 100 percent of the passenger miles are provided by zero-emission vehicles by December 31, 2028.
(b)The commission, in consultation with the State Air Resources Board, shall establish quarterly targets for the portion of vehicle miles traveled by zero-emission vehicles on behalf of a transportation network company. These targets shall be established to ensure reasonable progress in each of the intervening years so that not less than the following percentages of vehicle miles traveled be provided by zero-emission vehicles:
(1)Twenty percent by December 31, 2020.
(2)Fifty percent by December 31, 2023.
(3)One hundred percent by December 31, 2028.
(c)The commission, in consultation with the State Air Resources Board, shall establish a mechanism for the state board to verify whether a person applying for incentives pursuant to the Clean Vehicle Rebate Project established as part of the Air Quality Improvement Program pursuant to Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code, is a driver providing prearranged transportation services for compensation pursuant to this article.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Sep 13, 2018 | Chaptered by Secretary of State. Chapter 369, Statutes of 2018. |
| Sep 13, 2018 | Approved by the Governor. |
| Sep 6, 2018 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 31, 2018 | Assembly amendments concurred in. (Ayes 23. Noes 13.) Ordered to engrossing and enrolling. |
| Aug 30, 2018 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 30, 2018 | Read third time. Passed. Ordered to the Senate. |
| Aug 24, 2018 | Read third time and amended. |
| Aug 20, 2018 | Read second time. Ordered to third reading. |
| Aug 16, 2018 | From committee: Do pass. (Ayes 12. Noes 5.) (August 16). |
| Aug 8, 2018 | August 8 set for first hearing. Placed on suspense file. |
| Aug 6, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jul 5, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jun 27, 2018 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 26, 2018 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 4.) (June 25). |
| Jun 21, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS. |
| Jun 20, 2018 | From committee: Do pass and re-refer to Com. on TRANS. (Ayes 8. Noes 3.) (June 20). Re-referred to Com. on TRANS. |
| Jun 11, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on C. & C. |
| Jun 7, 2018 | Referred to Coms. on C. & C. and TRANS. |
| May 31, 2018 | In Assembly. Read first time. Held at Desk. |
| May 31, 2018 | Read third time. Passed. (Ayes 24. Noes 12.) Ordered to the Assembly. |
| May 29, 2018 | Read second time. Ordered to third reading. |
| May 25, 2018 | From committee: Do pass as amended. (Ayes 5. Noes 2.) (May 25). |
| May 18, 2018 | Set for hearing May 25. |
| May 14, 2018 | May 14 hearing: Placed on APPR. suspense file. |
| May 4, 2018 | Set for hearing May 14. |
| Apr 26, 2018 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 25, 2018 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 3.) (April 24). |
| Apr 23, 2018 | Re-referred to Com. on T. & H. |
| Apr 20, 2018 | Set for hearing April 24 in T. & H. pending receipt. |
| Apr 19, 2018 | Read second time and amended. Re-referred to Com. on EQ. |
| Apr 18, 2018 | From committee: Do pass as amended and re-refer to Com. on EQ. (Ayes 7. Noes 3.) (April 17). |
| Apr 9, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U. & C. |
| Apr 6, 2018 | Set for hearing April 18 in EQ. pending receipt. |
| Apr 4, 2018 | Set for hearing April 17. |
| Apr 3, 2018 | April 3 set for first hearing canceled at the request of author. |
| Mar 22, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U. & C. |
| Mar 12, 2018 | Set for hearing April 3. |
| Feb 14, 2018 | Referred to Coms. on E., U. & C., EQ., and T. & H. |
| Feb 7, 2018 | From printer. May be acted upon on or after March 9. |
| Feb 6, 2018 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2018 | Unfinished Business SB1014 Skinner Concurrence | Senate Floor |
Passed |
|
| Aug 30, 2018 | SB 1014 Skinner Senate Third Reading By TING | Assembly Floor |
Passed |
|
| Aug 16, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2018 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Transportation |
Passed |
|
| Jun 20, 2018 | Do pass and be re-referred to the Committee on [Transportation] | Assembly Standing Committee on Communications and Conveyance |
Passed |
|
| May 31, 2018 | Senate 3rd Reading SB1014 Skinner | Senate Floor |
Passed |
|
| May 25, 2018 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 14, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 24, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Transportation and Housing |
Passed |
|
| Apr 17, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Environmental Quality] | Senate Standing Committee on Energy, Utilities and Communications |
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
|
|---|---|---|
| 350 Bay Area | ** Support | Aug 30, 2018 |
| According to the Senate Appropriations Committee: | ** Support | May 30, 2018 |
| Amalgamated Transit Union | * Neutral | Apr 24, 2018 |
| American Lung Association in California | ** Support | Aug 30, 2018 |
| background | ** Support | May 30, 2018 |
| Borrego Solar | ** Support | Aug 30, 2018 |
| Cal CCA | ** Support | Apr 17, 2018 |
| Cal Star | * Support | Apr 24, 2018 |
| California Chamber Of Commerce | ** Against | Jun 22, 2018 |
| California Democratic Party | ** Support | Aug 30, 2018 |
| California Electric Transportation Coalition | ** Support | Aug 30, 2018 |
| California Environmental Justice Alliance | ** Support | Aug 30, 2018 |
| California Interfaith Power & Light | ** Support | Aug 30, 2018 |
| California Labor Federation | * Neutral | Apr 24, 2018 |
| California New Car Dealers Association | ** Against | Apr 2, 2018 |
| California Teamsters | ** Neutral | Apr 24, 2018 |
| Calstart | ** Support | Apr 25, 2018 |
| City of Emeryville | ** Support | Aug 30, 2018 |
| Clean Air Campaign | * Support | Apr 24, 2018 |
| Clean Power Campaign | ** Support | Aug 30, 2018 |
| Coalition For Clean Air | ** Support | Aug 30, 2018 |
| congress of racial equality | ** Against | Jun 22, 2018 |
| East Bay Community Energy | ** Support | Aug 30, 2018 |
| Electric Vehicle Charging Association | ** Support | Aug 30, 2018 |
| Energy for the Silicon Valley | * Against | Apr 17, 2018 |
| Environment California | ** Support | Aug 30, 2018 |
| fiscal effect: appropriation: no fiscal com.: yes local: yes | ** Support | May 30, 2018 |
| Fossil Free California | ** Support | Aug 30, 2018 |
| Friends Committee On Legislation Of California | ** Support | Aug 30, 2018 |
| Friends Of The Earth | ** Support | Aug 30, 2018 |
| Ibew Local Union 11 | ** Support | Aug 30, 2018 |
| Interfaith Movement for Human Integrity | ** Against | Jun 22, 2018 |
| Internet Association | ** Against | Jun 22, 2018 |
| Local Government Commission | ** Support | Aug 30, 2018 |
| Los Angeles Area Metropolitan Churches | ** Against | Jun 22, 2018 |
| Lyft | ** Against | Jun 22, 2018 |
| Marin Clean Energy | ** Support | Aug 30, 2018 |
| mayor darrell steinberg, city of sacramento | ** Support | Aug 30, 2018 |
| Metropolitan Transportation Commission | ** Support | Aug 30, 2018 |
| National Action Network | ** Against | Jun 22, 2018 |
| National Asian American Coalition | ** Against | Jun 22, 2018 |
| National Diversity Coalition | ** Against | Jun 22, 2018 |
| Natural Resources Defence Council | * Support | Apr 24, 2018 |
| Natural Resources Defense Council | ** Support | Aug 30, 2018 |
| Oakland African-American Chamber Of Commerce | ** Against | Jun 22, 2018 |
| Office of Ratepayer Advocates | ** Support | Aug 30, 2018 |
| Office Of Ratepayer Advocates - Cpuc | ** Support | Jun 19, 2018 |
| Office Of Ratepayer Advocates - Puc | ** Support | Jun 22, 2018 |
| Peninsula Clean Energy | ** Support | Aug 30, 2018 |
| Plug In America | ** Support | Aug 30, 2018 |
| PRIOR LEGISLATION | ** Support | May 30, 2018 |
| San Francisco African-American Chamber Of Commerce | ** Against | Jun 22, 2018 |
| San Francisco Department of the Environment | ** Support | Aug 30, 2018 |
| Silicon Valley Leadership Group | ** Against | Jun 22, 2018 |
| Sonoma Clean Power | ** Support | Aug 30, 2018 |
| Southern Christian Leadership Conference | ** Against | Jun 22, 2018 |
| TechMet | * Against | Apr 17, 2018 |
| Technet | ** Against | Jun 22, 2018 |
| Uber | ** Against | Jun 22, 2018 |
| Union Of Concerned Scientists | ** Support | Aug 30, 2018 |
| University of California Davis - Institute of Transportation Studies | * Support | Apr 24, 2018 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 1014
:
SENATE ENERGY, U. & C. COMMITTEE: 7-3, 4/17/18
AYES: Hueso, Bradford, Hertzberg, Hill, McGuire, Skinner, Stern
NOES: Morrell, Cannella, Vidak
NO VOTE RECORDED: Wiener
SENATE TRANS. & HOUSING COMMITTEE: 8-3, 4/24/18
AYES: Beall, Allen, Dodd, Galgiani, McGuire, Roth, Skinner, Wiener
NOES: Cannella, Gaines, Vidak
NO VOTE RECORDED: Morrell, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/25/18
AYES: Lara, Beall, Bradford, Hill, Wiener
NOES: Bates, Nielsen
SENATE FLOOR: 24-12, 5/31/18
AYES: Allen, Atkins, Beall, Bradford, De León, Dodd, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Skinner, Stern, Wiener
NOES: Anderson, Bates, Berryhill, Cannella, Gaines, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak, Wilk
NO VOTE RECORDED: Fuller, Newman, Wieckowski
ASSEMBLY FLOOR: 47-24, 8/30/18 - See last page for vote
SUBJECT: California Clean Miles Standard and Incentive Program: zero-emission vehicles
DIGEST:
This bill requires the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB) and California Energy Commission (CEC), to establish the California Clean Miles Standard and Incentive Program (CCMSIP) to increase the use of zero-emission vehicles (ZEVs) by ride-hailing companies, including transportation network companies (TNCs).
Assembly Amendments
clarify the goal of the CCMSIP, delete a goal to make 100 percent of TNC vehicles ZEVs by 2030 and the interim targets to reach the goal, and add new language requiring TNCs to establish plans to achieve meaningful reductions in GHG emissions from TNC vehicles based on goals and targets established by the ARB and CPUC.
Existing law:
- Establishes the CPUC and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
- Defines passenger stage corporation as every corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of any passenger stage over any public highway in the state between fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations. (Public Utilities Code §§226 and 1031 et seq.)
- Defines "charter-party carrier of passengers" as every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers. (Public Utilities Code §5351)
- Establishes the Air Quality Improvement Program that is administered by the ARB for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the Clean Vehicle Rebate Program to promote the production and use of ZEVs by providing rebates for the purchase of ZEVs. (Health and Safety Code §44274 et seq.)
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG) and requires all monies collected by ARB as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. (Health and Safety Code §§38500 et seq. and 39710 et seq.)
This bill:
- Establishes the CCMSIP to accelerate the adoption of ZEVs by online-enabled transportation providers, including TNCs, autonomous vehicles, and other rideshare providers. The CPUC must implement the program in collaboration with the ARB and CEC.
- Requires the ARB to establish a per-passenger, per-mile GHG emission baseline for TNC vehicles by January 1, 2020. The bill specifies requirements for calculating the baseline, including the TNC data that must be included in calculations.
- Requires the ARB to adopt by 2021, targets and goals to reduce TNC vehicles’ GHG emissions below the baseline by 2023. These targets and goals must be feasible and consistent with existing state ZEV deployment goals, and they must include annual goals for increasing the use of ZEVs in TNC travel.
- Requires the ARB and CPUC to delay implementation of the targets and goals if the ARB or CPUC finds that unanticipated barriers exist to expanding the use of ZEVs by TNCs. The ARB and CPUC must review data related to ZEV expansion barriers at least every two years.
- Requires each TNC to develop a GHG emissions reduction plan every two years, starting in 2022. This plan must include proposals for how to meet the emissions reduction targets and goals for TNCs established by the ARB and CPUC. The proposals must be based on specified methods for reducing GHG emissions, including increased use of ZEVs.
- Requires the CPUC, CEC, and ARB to ensure that ongoing planning and funding efforts aimed at accelerating ZEV adoption and charging infrastructure must consider the goals of the CCMSIP. The CPUC must also do the following:
- Advance the goals of the CCMSIP when reviewing utilities’ transportation electrification applications.
- Encourage collaboration between stakeholders.
- Ensure that the program complements existing state policy regarding land use.
- Ensure that low to moderate income individuals experience minimal negative impacts while supporting clean mobility for these individuals.
- Makes a number of findings and declarations concerning the greenhouse gas emissions and criteria air pollution associated with the transportation sector, the state’s policies and goals related to deploying ZEVs, and the opportunity for ride-hailing services to contribute to the state’s ZEV efforts.
- Requires the ARB to work with stakeholders evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project Incentives with the Clean Miles Standard and Incentive Program.
Background
ZEV climate goals. Transitioning California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014), which sets a goal and policies to achieve 1,000,000 ZEVs and near-ZEVs by 2023. In January 2018, Governor Brown issued another Executive Order which calls for a new target of five million ZEVs on California’s roads by 2030. The Executive Order also proposes a $2.5 plan to fund ZEV infrastructure and vehicle rebates for consumers.
TNC Emissions Impacts. Recent studies have found that the adoption and use of ride-hailing services are attracting passengers away from public transit, biking, and walking while increasing the number of carbon-combustion vehicles on the road. According to data from the ARB, the transportation sector accounts for 39 percent of California’s total GHG emissions; light duty vehicles, such as passenger cars, light duty trucks, and motorcycles contribute approximately 69 percent of the transportation sector’s emissions.
In an April 2018 report titled Electrifying the Ride-Sourcing Sector in California, the CPUC identified the TNC sector as the biggest opportunity to reduce emissions from transportation providers regulated by the commission. Between November 2016 and October 2017, TNC operations produced carbon dioxide emissions equivalent to the annual energy use of approximately 100,000 households. The report stated that increased TNC use of electric vehicles (EVs) would advance the state’s overall EV deployment goals. The report noted the “sizeable, untapped potential to increase EV awareness through interactions with TNC EV drivers and passengers during the millions of trips being arranged on TNC platforms.”
This bill attempts to address concerns that the growth of TNCs will increase California’s emissions. The bill requires the ARB to use specific data to calculate a baseline of emissions produced by TNC vehicles and develop annual targets and goals to reduce TNC vehicle emissions below that baseline. These targets and goals must be feasible and consistent with existing state policy for deploying ZEVs. The bill requires the CPUC implement the targets and goals.
TNC ZEV deployment faces unique barriers. Driver income, driver turnover, and ZEV infrastructure limitations may limit the degree to which ZEVs are used through TNCs. Many TNC drivers have limited income and ability to finance a new vehicle, even with available state incentives. According to the Silicon Valley Leadership Group, the majority of TNC drivers identify as low-income. Turnover of TNC drivers may also lead to fluctuations in the availability of specific vehicles. Additionally, ZEV battery range and the availability of charging infrastructure can influence the availability of TNC drivers operating ZEVs.
Approaches to addressing TNC ZEV Barriers. Multiple approaches exist to addressing barriers to accelerating TNCs’ use of ZEVs. Fees can be assessed to increase access to carbon-free transportation options, incentives can be provided to increase ZEV adoption, and requirements can be established to reduce emissions from TNC vehicles. This bill requires TNCs to create emissions reduction plans and update these plans every two years. These plans must include proposals on how to meet the targets and goals established by the ARB and CPUC to reduce GHG emissions. Requiring plans from TNCs will likely create aspirational, non-binding goals. However, information provided by TNCs to develop emissions reductions baselines and proposals to reduce emissions will help inform CPUC, CEC, and ARB decision-making regarding ZEV deployment and acceleration of ZEV infrastructure installation and ensure that public investments are maximized and do not duplicate any private investments by TNCs.
Related/Prior Legislation
AB 1184 (Ting, 2018) authorizes the City and County of San Francisco to establish a tax on TNC rides originating in San Francisco to fund transportation operations and infrastructure within the City and County. The bill is currently pending consideration in the Senate Committee on Governance and Finance.
SB 350 (De León, Chapter 547, Statutes of 2015), among the many provisions of the bill, included provisions related to supporting electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to be administered by the ARB, in consultation with the CEC, air pollution control and air quality management districts, and the public. The bill states that the goals of the initiative are to, among other things, place in service at least 1,000,000 ZEVs and near-ZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and near-ZEVs.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee:
- Ongoing annual costs in the range of $525,000 to $725,000 (special fund) to ARB during the fiscal years 2018-19 through 2020-21 to establish emissions baseline, adopt targets, and coordinate with the CPUC. ARB’s annual costs after the 2020-21 fiscal year – that is, after ARB has established the GHG emissions baseline of TNCs and adopted GHG emissions reduction targets – will continue but should diminish.
- Ongoing annual costs of approximately $100,000 (special fund) to CPUC to develop a rulemaking to implement GHG emissions targets and to oversee program implementation.
350 Bay Area
American Lung Association in California
Borrego Solar
California Democratic Party
California Electric Transportation Coalition
California Environmental Justice Alliance
California Interfaith Power & Light
City of Emeryville
Clean Power Campaign
Coalition for Clean Air
East Bay Community Energy
Electric Vehicle Charging Association
Environment California
Fossil Free California
Friends Committee on Legislation of California
Friends of the Earth
IBEW Local Union 11
Local Government Commission
Marin Clean Energy
Mayor Darrell Steinberg, City of Sacramento
Metropolitan Transportation Commission
Natural Resources Defense Council
Office of Ratepayer Advocates
Peninsula Clean Energy
Plug In America
San Francisco Department of the Environment
Sonoma Clean Power
Union of Concerned Scientists
OPPOSITION: (Verified 8/30/18)
Engine
ARGUMENTS IN SUPPORT: According to the author, “TNCs are responsible for more and more of the vehicle miles travelled in California communities, driving approximately 570,000 vehicle miles per weekday in San Francisco. As California continues to create policies and regulations to clean up our dirty air, the state must ensure that TNCs are driving cleaner miles on our roads.”
ARGUMENTS IN OPPOSITION: Engine opposes SB 1014 because it believes that the bill mandates that all TNC vehicles on ridesharing platforms be 100 percent zero-emission by 2028. However, the bill has been amended to remove the goal of making 100 percent of TNC vehicles ZEVs by 2030.
ASSEMBLY FLOOR: 47-24, 8/30/18
AYES: Aguiar-Curry, Arambula, Baker, Berman, Bloom, Bonta, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chiu, Chu, Cooley, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Grayson, Holden, Jones-Sawyer, Kalra, Kamlager-Dove, Levine, Limón, Low, McCarty, Mullin, Muratsuchi, Nazarian, Reyes, Rivas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Bigelow, Brough, Chávez, Chen, Choi, Cunningham, Flora, Fong, Gallagher, Gray, Harper, Kiley, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte, Patterson, Steinorth, Voepel, Waldron
NO VOTE RECORDED: Cooper, Dahle, Daly, Irwin, Medina, O'Donnell, Quirk, Quirk-Silva, Rubio
8/30/18 20:54:35
**** END ****
SENATE THIRD READING
STR Bill Id:SB 1014
Author:(Skinner)
As Amended Ver:August 24, 2018
Majority vote
SENATE VOTE: 24-12
Committee | Votes | Ayes | Noes |
Communications | 8-3 | Santiago, Bonta, Cervantes, Eduardo Garcia, Holden, Kamlager-Dove, Low, Rodriguez | Obernolte, Maienschein, Quirk-Silva |
Transportation | 8-4 | Frazier, Aguiar-Curry, Baker, Berman, Chu, Friedman, Gipson, Medina | Fong, Harper, Mathis, O'Donnell |
Appropriations | 12-5 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Brough, Fong, Gallagher, Obernolte |
SUMMARY: Establishes the California Clean Miles Standard and Incentive Program with the goal of decreasing greenhouse gas (GHG) emissions from vehicles used by drivers of transportation network companies (TNCs). Specifically, this bill:
- Requires the California Air Resources Board (CARB), by January 1, 2020, to establish a baseline, based on the year 2018, for per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Starting on January 1, 2022, and every two years thereafter, requires each TNC to develop a GHG emissions reduction plan, based on the following specified elements: a) increased proportion of participating drivers with zero-emission vehicles (ZEV) using TNCs; b) increased proportion of vehicle-miles completed by ZEVs relative to all vehicle-miles, decreased gram-per-mile GHG emissions rates; and c) increased passenger-miles in proportion to overall vehicle-miles.
- By January 1, 2021, requires CARB to adopt, and the California Public Utilities Commission (CPUC) to implement, annual targets and goals, beginning in 2023, for the reduction of per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Directs CARB to delay adoption, and CPUC to delay implementation, of the specified program targets and goals if either finds there to be unanticipated barriers to expanding usage of ZEVs by TNCs.
- Requires the CPUC to a) ensure minimal negative impact on low-income and moderate-income drivers; b) ensure that the specified program complements and supports specified sustainable land-used objectives; c) support the goals of clean mobility for low- and moderate-income individuals; and d) advance the goals of the specified program in reviewing utility transportation electrification applications and encourage collaboration between specified stakeholders that would support the specified program.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would have the following costs:
- Ongoing annual costs in the range of $525,000 to $725,000 to CARB during the fiscal years 2018-19 through 2020-21 to establish emissions baseline, adopt targets, and coordinate with the CPUC. CARB's annual costs after the 2020-21 fiscal year – that is, after CARB has established the GHG emissions baseline of TNCs and adopted GHG emissions reduction targets – will continue but should diminish.
- Ongoing annual costs of approximately $100,000 to the CPUC to develop a rulemaking to implement GHG emissions targets and to oversee program implementation.
COMMENTS:
- Authors Statement: According to the author, "Tailpipe emissions from fossil fueled vehicle are still the largest source of air and climate pollution; SB 1014 enlists ride-hailing services in our statewide efforts to increase electric and other [ZEVs] on our roads."
- Background: Reducing carbon emissions from the transportation sector is a critical step needed in order to meet California's climate goals and clean air standards. ZEVs run on electricity stored in batteries instead of fossil fuels, such as plug-in electric vehicles (EVs), plug in hybrid EVs, and hydrogen fuel cell EVs. The CPUC has regulatory authority over charter-party carriers (CPCs) which are charter vehicles that offer transportation services on a prearranged basis for the exclusive use of an individual or group. Charges are based on either, or a combination of, mileage or time of use. TNCs are companies that offer prearrange transportation services through an app on their smartphone or computer, and are considered CPCs regulated by the CPUC.
- TNCs & ZEVs: In January 2018, Governor Brown issued an executive order (B-48-18) directing all state entities to work with the private sector and all appropriate levels of government to put at least five million ZEVs on California roads by 2030. The CPUC has explored the possibility of reducing GHG emission from TNC drivers through the use of alternative fuels. This bill establishes the California Clean Miles Standard and Incentive Program, which requires CARB to adopt, and the CPUC to implement, annual targets and goals, for the reduction of per-mile GHG emissions of vehicles used by TNC drivers.
Although TNCs have certain vehicle and safety requirements that must be met before becoming a TNC driver, TNCs do not own the vehicles and not all TNC drivers are, or can afford, a ZEV. If TNCs drivers were obligated to purchase more costly ZEVs – it could preclude employment for potential TNC drivers who do not have, and cannot afford to purchase a ZEV absent some form of incentive to make ZEVs ownership more cost-effective for them.
Analysis Prepared by: Edmond Cheung / C. & C. / (916) 319-2637 FN: 0004806
SENATE THIRD READING
STR Bill Id:
Author:()
As Ver:
SENATE VOTE:
Committee | Votes | Ayes | Noes |
Communications | 8-3 | Santiago, Bonta, Cervantes, Eduardo Garcia, Holden, Kamlager-Dove, Low, Rodriguez | Obernolte, Maienschein, Quirk-Silva |
Transportation | 8-4 | Frazier, Aguiar-Curry, Baker, Berman, Chu, Friedman, Gipson, Medina | Fong, Harper, Mathis, O'Donnell |
Appropriations | 12-5 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Brough, Fong, Gallagher, Obernolte |
SUMMARY: Establishes the California Clean Miles Standard and Incentive Program with the goal of decreasing greenhouse gas (GHG) emissions from vehicles used by drivers of transportation network companies (TNCs). Specifically, this bill:
- Requires the California Air Resources Board (CARB), by January 1, 2020, to establish a baseline, based on the year 2018, for per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Starting on January 1, 2022, and every two years thereafter, requires each TNC to develop a GHG emissions reduction plan, based on the following specified elements: a) increased proportion of participating drivers with zero-emission vehicles (ZEV) using TNCs; b) increased proportion of vehicle-miles completed by ZEVs relative to all vehicle-miles, decreased gram-per-mile GHG emissions rates; and c) increased passenger-miles in proportion to overall vehicle-miles.
- By January 1, 2021, requires CARB to adopt, and the California Public Utilities Commission (CPUC) to implement, annual targets and goals, beginning in 2023, for the reduction of per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Limits the frequency and type of data that may be collected by CARB and the CPUC to support the specified program.
- Directs CARB to delay adoption, and CPUC to delay implementation, of the specified program targets and goals if either finds there to be unanticipated barriers to expanding usage of ZEVs by TNCs.
- Requires the CPUC to a) ensure minimal negative impact on low-income and moderate-income drivers; b) ensure that the specified program complements and supports specified sustainable land-used objectives; c) support the goals of clean mobility for low- and moderate-income individuals; and d) advance the goals of the specified program in reviewing utility transportation electrification applications and encourage collaboration between specified stakeholders that would support the specified program.
FISCAL EFFECT: According to the Assembly Appropriations Committee this bill would have the following costs:
- Ongoing annual costs in the range of $525,000 to $725,000 to CARB during the fiscal years 2018-19 through 2020-21 to establish emissions baseline, adopt targets, and coordinate with the CPUC. CARB's annual costs after the 2020-21 fiscal year – that is, after CARB has established the GHG emissions baseline of TNCs and adopted GHG emissions reduction targets – will continue but should diminish.
- Ongoing annual costs of approximately $100,000 to the CPUC to develop a rulemaking to implement GHG emissions targets and to oversee program implementation.
COMMENTS:
- Authors Statement: According to the author, "Tailpipe emissions from fossil fueled vehicle are still the largest source of air and climate pollution; SB 1014 enlists ride-hailing services in our statewide efforts to increase electric and other [ZEVs] on our roads."
- Background: Reducing carbon emissions from the transportation sector is a critical step needed in order to meet California's climate goals and clean air standards. ZEVs run on electricity stored in batteries instead of fossil fuels, such as plug-in electric vehicles (EVs), plug in hybrid EVs, and hydrogen fuel cell EVs. The CPUC has regulatory authority over charter-party carriers (CPCs) which are charter vehicles that offer transportation services on a prearranged basis for the exclusive use of an individual or group. Charges are based on either, or a combination of, mileage or time of use. TNCs are companies that offer prearrange transportation services through an app on their smartphone or computer, and are considered CPCs regulated by the CPUC. For the most part, TNCs do not own their own fleet of vehicles used by their drivers.
- TNCs & ZEVs: In January 2018, Governor Brown issued an executive order (B-48-18) directing all state entities to work with the private sector and all appropriate levels of government to put at least five million ZEVs on California roads by 2030. The CPUC has explored the possibility of reducing GHG emission from TNC drivers through the use of alternative fuels. This bill establishes the California Clean Miles Standard and Incentive Program, which requires CARB to adopt, and the CPUC to implement, annual targets and goals, for the reduction of per-mile GHG emissions of vehicles used by TNC drivers.
Although TNCs have certain vehicle and safety requirements that must be met before becoming a TNC driver, TNCs do not own the vehicles and not all TNC drivers are, or can afford, a ZEV. If TNCs drivers were obligated to purchase more costly ZEVs – it could preclude employment for potential TNC drivers who do not have, and cannot afford to purchase a ZEV absent some form of incentive to make ZEVs ownership more cost-effective for them.
Analysis Prepared by: FN: 0004149
Date of Hearing: August 8, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 1014
Author:(Skinner) – As Amended Ver:August 6, 2018
Policy Committee: | Communications and Conveyance | Vote: | 8 - 3 |
Transportation | 8 - 4 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill creates the California Clean Miles Standard and Incentive Program with the goal of decreasing greenhouse gas (GHG) emissions from vehicles used by drivers of transportation network companies (TNCs), such as Lyft and Sidecar. Specifically, this bill:
- Requires the Air Resources Board (ARB), by January 1, 2020, to establish a baseline, based on the year 2018, for per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Starting on January 1, 2022, and every two years thereafter, requires each TNC to develop a GHG emissions reduction plan, based on the following specified elements: (a) increased proportion of participating drivers with zero-emission vehicles (ZEV) using TNCs, (b) increased proportion of vehicle-miles completed by ZEVs relative to all vehicle-miles, decreased gram-per-mile GHG emissions rates, and (c) increased passenger-miles in proportion to overall vehicle-miles.
- By January 1, 2023, requires ARB to adopt, and the California Public Utilities Commission (CPUC) to implement, annual targets and goals, beginning in 2023, for reduction of per-passenger-mile GHG emissions of vehicles used by TNC drivers.
- Limits the frequency and type of data that may be collected by ARB and CPUC to support the program.
- Directs ARB to delay adoption, and CPUC to delay implementation, of program targets and goals if either finds there to be unanticipated barriers to expanding usage of ZEVs by TNCs.
FISCAL EFFECT:
- Ongoing annual costs in the range of $525,000 to $725,000 (special fund) to ARB during the fiscal years 2018-19 through 2020-21 to establish emissions baseline, adopt targets, and coordinate with the CPUC. ARB’s annual costs after the 2020-21 fiscal year—that is, after ARB has established the GHG emissions baseline of TNCs and adopted GHG emissions reduction targets—will continue but should diminish.
- Ongoing annual costs of approximately $100,000 (special fund) to CPUC to develop a rulemaking to implement GHG emissions targets and to oversee program implementation.
COMMENTS:
- Purpose. The author notes that roughly 40% of the state’s emissions of GHG come from the transportation sector. The author contends TNCs, which represent increasing proportions of the state vehicle miles travelled, should contribute to reducing the state’s emissions of GHGs. The author intends this bill to obligate the TNCs to reduce their GHG emissions, in part by increasing use of ZEVs by their drivers.
- Background. TNCs connect passengers with drivers through use of internet-based platforms to provide taxi-like ride services. TNC service differs from traditional taxi service in several ways. Significantly, TNCs, unlike taxis, tend not to own a fleet of vehicles used by their drivers. Rather, TNC arrange with operators of private vehicles to provide ride services. Also significant and differing from traditional taxi service, the services offered by TNCs are not regulated by local governments; rather, their services are regulated by the CPUC.
Several local governments have imposed environmental requirements on taxis operating within their jurisdictions. For example, San Francisco has GHG reduction goals applicable to taxis operating within the city and reports that nearly all taxis in the municipality are alternative-fueled vehicles or ZEVs. Local governments, however, cannot as easily obligate TNCs to reduce GHGs or operate certain types of vehicles. The CPUC, however, presumably can. In fact, the CPUC has explored in a white paper the possibility of reducing GHG emissions from TNC drivers through use of alternative fuels.
As noted above, TNC drivers—not the TNCs themselves—generally own the vehicles in which they provide TNC service. The CPUC has placed certain safety and insurance requirements on the TNC drivers. Admittedly, those requirements impose costs on TNC drivers; however, the requirements are meant to ensure the vehicles are safe to be in and around and the drivers are prepared to cover financial consequences of vehicle operation, in other words, basic standards for vehicle operation. This bill, too, could cost TNC drivers, if those drivers were obligated to purchase more-costly ZEVs. Similarly, it could preclude employment for potential TNC drivers who do not have, and cannot afford to purchase, a ZEV. However, the bill does not prescribe how a TNC is to achieve the goals of its GHG emissions reduction plan. Conceivably, a TNC could offer incentives that make ZEV ownership cost-effective from the driver’s perspective. And the bill does require the CPUC to ensure the program has minimal negative impact on low-income and moderate-income drivers.
- Why Restrict Data? The bill limits the program data required of TNC to annual reports of information necessary to determine average emissions of GHG per passenger mile. Certain TNCs have vigorously resisted regulators efforts to access TNC data. It is unclear why the bill proscribes the ability of regulators to obtain data from TNCs.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: June 25, 2018
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SBPCA Bill Id:SB 1014
Author:(Skinner) – As Amended Ver:June 21, 2018
SENATE VOTE: 24-12
SUBJECT: California Clean Miles Standard and Incentive Program: zero-emission vehicles
SUMMARY: Requires the Air Resources Board (ARB) to adopt, and the Public Utilities Commission (PUC) to implement annual targets for the reduction of greenhouse gas (GHG) emissions driven on behalf of a Transportation Network Company (TNC). Specifically, this bill:
- Establishes the California Clean Miles Standard and Incentive Program, and requires ARB to establish an emissions baseline for TNCs on a per-vehicle-mile or per-passenger-mile basis by January 1, 2020.
- Requires ARB to use data from 2018 to establish the baseline.
- Requires ARB to adopt annual targets, by January 1, 2021, and PUC to implement those annual targets, beginning in 2023, for the reduction under the specified baseline of emissions per vehicle-mile or passenger-mile driven on behalf of a TNC.
- Requires ARB, when developing these targets:
- To be consistent with the Zero Emission Vehicle (ZEV) Action Plan;
- Include annual targets for increasing vehicle or passenger miles traveled using ZEVs; and,
- Use vehicle and mileage data reported by TNCs to PUC.
- To be consistent with the Zero Emission Vehicle (ZEV) Action Plan;
- Requires ARB to delay adoption, and PUC to delay implementation, of the specified targets if ARB or PUC finds that unanticipated barriers exist to expanding usage of ZEVs by TNCs.
- Requires ARB and PUC to review available data related to barriers to expanding usage of ZEVs by TNCs at least every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
- Requires each TNC, by January 1, 2022, and every two years thereafter, to develop an emissions reduction plan.
- Requires a TNC emissions reductions plan to include proposals on how to meet the emissions reduction targets based upon the following:
- Increased proportion of participating drivers with ZEVs using TNCs;
- Increased proportion of vehicle-miles completed by ZEVs relative to all vehicle-miles driven on behalf of a TNC;
- Decreased gram-per-mile GHG emissions rates; and,
- Increased passenger-miles in proportion to overall vehicle-miles driven on behalf of a TNC.
- Requires PUC to consult with ARB and the California Energy Commission (CEC) to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of ZEVs; and requires PUC to do all the following:
- Ensure minimal negative impact on low-income and moderate income drivers;
- Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies; and,
- Support the goals of clean mobility for low- and moderate-income individuals.
- Defines “zero-emission vehicle” as a vehicle that produces no emissions of criteria pollutants, toxic air contaminants, and GHGs when stationary or operating.
- Makes various findings and declarations.
EXISTING LAW:
- Establishes PUC to regulate privately owned public utilities and common carriers in California.
- Establishes PUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers (CPC).
- Establishes TNC as a subset of CPCs and defines a TNC as an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
- Designates ARB as the air pollution control agency in California and requires ARB to control emissions from mobile sources.
- Requires ARB, pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Núñez and Pavley), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020, and to ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030.
- 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 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.
- Establishes the Air Quality Improvement Program (AQIP) that is administered by the ARB for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the Clean Vehicle Rebate Project (CVRP) to promote the production and use of ZEVs by providing rebates for the purchase of new ZEVs.
- Requires PUC, in consultation with the ARB and CEC, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, as specified, and reduce emissions of GHG to 40 percent below 1990 levels by 2030, and to 80 percent below 1990 levels by 2050. Programs proposed by electrical corporations shall seek to minimize overall costs and maximize overall benefits. Requires PUC to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, via a reasonable cost recovery mechanism, as specified, do not unfairly compete with nonutility enterprises as specified, include performance accountability measures, and are in the interests of ratepayers, as specified.
- Requires each metropolitan planning organizations to develop a sustainable communities strategy, as part of its regional transportation plan, to coordinate transportation and land-use planning to meet the regional target for the reduction of GHG emissions.
FISCAL EFFECT: Unknown
COMMENTS: TNCs provide pre-arranged transportation services for compensation using smart phone apps or a computer to connect drivers with passengers. Typically, a passenger hails a ride through their mobile device to a pre-determined location and a participating driver using their personal vehicle provides the ride. Payment is processed through the mobile device and the TNC receives a commission on each trip. Drivers have the flexibility to work on a full-time or part-time basis by simple “logging on and off” the mobile app. TNC drivers typically work part-time. The most commonly known TNCs are Uber and Lyft.
Recognizing the need to regulate TNCs and their similarities with taxis and CPCs, PUC commenced an ongoing rulemaking to determine the proper oversight and corresponding rules that are needed to regulate this industry. In 2013, PUC determined that TNCs are a type of CPC, similar to tour buses and limousines, as they provide pre-arranged transportation services. Taxis, on the other hand, need not be pre-arranged and can be hailed from the curb. Taxis are regulated at a local level by cities and counties. In order to operate in the state, TNCs must obtain a permit from the PUC and comply with the requirements established through its ongoing rulemaking. For five years now, PUC has adopted various regulations to provide public safety and customer protection, and is on its third phase of its rulemaking proceeding.
The TNC sector has grown tremendously in the past several years and the impacts of these services raise questions around increased vehicle miles traveled (VMTs), the associated environmental effects of using gas-powered TNC vehicles, the effects on transit, and the ability to support our state goals. To reduce mobile source pollution and GHGs, the state is reducing its reliance on gasoline-powered cars and promoting efforts to advance the deployment of ZEVs and NZEVs, which run on electricity and have very small or no tailpipe emissions. California has looked to expand the sale and use of ZEVs by setting specific goals through legislation and executive orders. In 2012, Governor Brown issued EO B-16-2012 which established the milestone of placing 1.5 million ZEVs on California roadways by 2025. The EO also established ZEV purchase targets for state agencies and required the integration of plug-in electric vehicle charging into the state’s electricity grid by 2020. To continue the momentum initiated by the 2012 EO, the Governor's Office convened an interagency working group, led by ARB and others, that culminated in the release of the 2012 ZEV Action Plan. The ZEV Action Plan, which was updated in 2016, established goals for the advancement of ZEVs and outlined strategies to achieve those goals. This year, Governor Brown announced a new goal and issued B-48-2018 which orders the deployment of 5 million ZEVs on California roads by 2030.
To complement our goals, legislation along with regulations promulgated by ARB have led to the establishment of a number of EV-related programs at ARB, including the ZEV Mandate (that set the requirement that manufacture’s make and sell a certain number of ZEVs based on a specified credit requirement). ARB has created a number of incentive programs to encourage consumers to purchase and use these vehicles. Examples of these incentive programs include the Clean Vehicle Rebate Program (CVRP) that provides rebates (ranging from $1,500-$7,000, depending on the purchasers' income status) on the purchase of new ZEVs. There is also a component of CVRP that includes a set aside program to provide rebates for public fleets purchasing ZEVs. In addition, programs such as the Enhanced Fleet Modernization Program (EFMP) and EFMP-Plus Up, while not exclusively a ZEV program, offers incentives for individuals to retire their old, high-polluting vehicles with additional incentives for those individuals who replace their vehicles with ZEVs. In addition to other EV market acceleration investment programs throughout California state agencies, in 2015 the Legislature passed
SB 350 (de León) Chapter 547, Statutes of 2015, which set 2030 GHG reduction targets to be achieved through a variety of measures, including widespread transportation electrification. In 2015, the CPUC directed California’s three investor owned utilities (IOUs) to submit applications proposing projects aimed at achieving the transportation electrification goals in
SB 350.
On April 2018, recognizing the increasing VMTs attributed to vehicles under the TNC platform and the potential role TNCs can play in the deployment of cleaner cars, the PUC released a whitepaper, Electrifying the Ride-Sourcing Sector in California: Assessing the Opportunity, to “(1) serve as a useful starting point for the PUC to assess the opportunity for GHG reduction in the TNC sector through increased use of EVs, (2) offer framework for comparison of available regulatory options, and (3) identify key questions for the PUC to consider, should it choose to initiate regulatory changes”. Using very limited data and noting a major analytical gap, the report found that for the month of October 2017, Uber and Lyft total VMT amounted to 2% of the total VMT traveled on the California state highway system (approximately 17.22 billion miles). In comparison, ARB has estimated that the state needs to reduce VMT by 7% below the projected VMT levels to meet our 2030 climate goals.
Ultimately this preliminary discussion document concluded that EV use in the TNC sector can advance the state’s overall EV deployment goals, increase awareness of these vehicles and pose significant challenges for drivers including both EV acquisition and use on TNC platforms (e.g. vehicle price, access to vehicle charging), and reasoned that more data is needed to explore options such as, incentives, mandates or market based mechanisms to increase EV use in the this sector. Additionally, as part of Phase III, the commissioner overseeing the TNC rulemaking proceedings, released an updated scoping memo in which she noted: “In view of currently pending legislation on ZEVs, I intend to hold a workshop on ZEVs and TNCs after the legislative session ends.”
One of the best ways to reduce VMTs, congestion, and emissions, especially in populated dense areas, is to promote transit ridership, and provide transportation options and services that complement transit. The effects of TNCs on transit are unclear and may vary from jurisdiction to jurisdiction. For example, a study conducted by UC Davis, which considered seven major metropolitan areas (Boston, Chicago, Los Angeles, New York, the San Francisco Bay Area, Seattle, and Washington D.C.), found that, on average, TNC use is associated with a net 6 % reduction in overall transit use in these cities. However, other studies have concluded that TNC use complements public transit and that riders are more likely to substitute personal vehicle trips than public transit travel. In fact, many regions that are adopting sustainable community strategies to better provide transit service and reduce VMTs have looked to use TNC rides as a way to complement transit service, address first- and last mile transportation, and incentivize shared mobility.
TNC services are most comparable to taxi services and due to their popularity have significantly displaced taxis. At a local level, regions are allowed to adopt emission standards for taxis. California major cities such as San Francisco, San Diego, and Los Angeles, have all adopted some form of vehicle emission standard for the taxi fleets operating in their jurisdiction. However, it is important to note that there is a major distinction between taxi and TNC vehicle ownership. Taxi companies typically own and operate vehicles in their fleet making it easier to respond to such regulations. TNCs, however, cannot own vehicles operated on their platforms making it difficult to influence the deployment and purchase of personally-owned clean vehicles.
The author has introduced this bill to establish the Clean Miles Standard and Incentive Program and states, “Tailpipe emissions from fossil-fueled vehicles are still the largest source of air and climate pollution; SB 1014 enlists ride-hailing services (TNCs) in our state wide efforts to increase electric and other ZEVs on our roads”. The author also contends that existing incentives can help finance the goals of this bill. However, this bill does not provide any monetary incentives to meet such goals.
Committee Comments and Concerns: This bill requires the ARB to establish a 2018 emissions baseline for TNCs on a per-vehicle-mile or per-passenger-mile basis and requires PUC to implement annual targets to reduce such emissions. Progress is measured by VMTs or the amount of passengers transported in a given ride. The goal is to reduce GHG emissions by requiring TNCs to develop plans that would reduce emissions, increase ZEVs usage, and promote pooling efforts from vehicles providing transportation on the TNC platform.
While well-intended, this bill may have unintended consequences for TNCs and drivers providing transportation service under their platform. As noted by the TNCs, rides are most often provided by low-income individuals using their own car to supplement their income. By imposing targets on these drivers’ vehicles, the burden will ultimately fall on the drivers to comply. There are many practical barriers that make it difficult for someone who is low-income to comply with emission reduction targets; including relatively higher costs associated with the purchase of a clean vehicle, long recharging times for EVs, and limited charging opportunities for those who commute long distances for work. These drivers may only be able to afford one vehicle and may live in multi-unit dwellings with limited charging infrastructure. Additionally, if a current driver is unable to comply with these reduction plans, it is unclear if they would be forced out of the TNC platform and TNCs may be unable to retain drivers for this reason. Economically, both parties may be negatively affected.
Proposed Amendments: Concerns with this bill remain and the author has agreed to the following amendments to remove opposition from the bill:
- In Section 1 (a) modify the language as follows:
The transportation sector accounts for almost 50 percent of the greenhouse gas emissions of greenhouse gases in California, with light-duty vehicles making up 70 percent of the sector’s emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
- In Section 1, remove (o) from the declarations and findings.
- In Section 1 (p) modify the language as follows:
(p) In furtherance of state, regional, and local goals to align pollution and greenhouse gas emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low- and moderate-income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of zero-emission vehicles throughout the state, and particularly by transportation network companies, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
- In Section 3, modify the language as follows:
(a) (1) The program established pursuant to this section shall be known as the California Clean Miles Standard and Incentive Program.
(2) For purposes of this section, “board” means the State Air Resources Board.
(3) For purposes of this section, these provisions shall apply to transportation providers regulated by the Commission that provide prearranged transportation services for compensation using an online-enabled application or platform to connect passengers, including autonomous vehicles, charter-party carriers, and new modes of ridesharing technology that may arise through innovation and subsequent regulation.
(b) (1) By January 1, 2020, the board shall establish an greenhouse gas emissions baseline for vehicles used on the online-enabled applications or platforms of transportation network companies on a per-vehicle-mile or per-passenger-mile basis. The board shall use 2018 as the baseline year.
(2) By January 1, 2021, the board shall adopt, and the commission shall implement, annual targets, beginning in 2023, for the reduction under the baseline established pursuant to paragraph (1) of greenhouse gas emissions per vehicle-mile or passenger-mile driven on behalf of a transportation network company. These targets and goals shall include annual goals for increasing passenger miles traveled using zero-emission vehicles. These targets and goals shall be consistent with the Zero Emission Vehicle Action Plan, the stated goals detailed in Executive Order B-48-18, be technically and economically feasible, shall include annual targets for increasing vehicle or passenger miles traveled using zero-emission vehicles, and shall be based upon vehicle and mileage data reported by the transportation network companies to the commission.
The data required of transportation network companies to support this program shall be limited to annual reports of information necessary to determine average greenhouse gas emissions per passenger-mile to be calculated by the board and commission, based upon:
(A) Total miles completed by drivers;
(B) Percent share of miles completed by qualified zero-emission means, including miles completed by vehicle, walking, biking, other modes of active transportation, and ZEVs;
(C) Miles-weighted average network-wide grams of CO2 per mile to produce an estimate of greenhouse gas emissions; and
(D) Total passenger-miles completed using an average passengers-per-trip estimate to account for trips where exact passenger head count data was not captured.
(3) The board shall delay adoption, and the commission shall delay implementation, of the targets pursuant to paragraph (2) if the board or commission finds that unanticipated barriers exist to expanding usage of zero-emission vehicles by transportation network companies. The board and commission shall review available data related to barriers to expanding usage of zero-emission vehicles by transportation network companies no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
(c) By January 1, 2022, and every two years thereafter, each transportation network company shall develop an greenhouse gas emissions reductions plan. A transportation network company greenhouse gas emissions reductions plan shall include proposals on how to meet the greenhouse gas emissions reduction targets established pursuant to subdivision (b) based upon the following:
(1) Increased proportion of participating drivers with zero-emission vehicles using transportation network companies.
(2) Increased proportion of vehicle-miles completed by zero-emission vehicles relative to all vehicle-miles.
(3) Decreased gram-per-mile greenhouse gas emissions rates.
(4) Increased passenger-miles in proportion to overall vehicle-miles.
(d) In implementing this section, the commission, the board and the Energy Commission shall ensure ongoing state planning efforts and funding programs that are intended to accelerate the adoption of zero-emission vehicles and charging infrastructure shall consider the goals of shall consult with the board and the Energy Commission to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of zero-emission vehicles .The commission shall additionally do all the following:
(1) Ensure minimal negative impact on low-income and moderate-income drivers.
(2) Ensure that ride-hailing services the program complements and supports the sustainable land-use objectives of sustainable communities strategies prepared pursuant to contained in Section 65080 of the Government Code.
(3) Support the goals of clean mobility for low- and moderate-income individuals.
(4)(A) Solicit and facilitate pilot program proposals between electrical corporations, ZEV charging companies, and transportation network companies through the existing SB 350 proceeding, and consistent with section 740.12(b), to promote the operation and use of ZEVs by participating drivers and the increase of electric vehicle charging infrastructure that would support increased adoption of ZEVs by participating drivers and the general public. These proposals shall:
(i) Prioritize deploying electric vehicle charging infrastructure in low-income communities.
(ii) Include plans to install make-ready infrastructure to support the installation of electric vehicle charging equipment that will be available to participating drivers for transportation network companies and the public.
(B) An electrical corporation may own and operate the make-ready infrastructure for the electric vehicle charging infrastructure in their proposal, if the commission determines that it meets the statutory requirements under SB 350. The commission shall review, modify if appropriate, and decide whether to approve a proposal filed by an electrical corporation.
- Adds a new section to the bill to read: The board shall work with transportation network companies, and their affiliates, or entities contracting with TNCs with ZEVs, and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.
Double Referral: This bill passed out of the Assembly Communications and Conveyance Committee on June 20, 2018, with an 8-3 vote.
Previous Legislation: SB 32 (Pavley), Chapter 249, Statutes of 2016, sets a target of reducing statewide GHG emissions by 40% below 1990 levels by 2030.
SB 350 (de León), Chapter 547, Statutes of 2015, set GHG reduction targets to be achieved by 2030 through a variety of measures, including supporting electrification of the transportation system and established requirements of the CPUC in adopting EV charging proposals from the IOUs.
AB 2293 (Bonilla), Chapter 389, Statutes of 2014, defined TNCs as a form of charter-party carrier and established insurance coverage guidelines for TNCs.
SB 1275 (de León), Chapter 530, Statutes of 2014, establishes the Charge Ahead California Initiative to be administered by ARB to place in service at least 1 million ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 375 (Steinberg), Chapter 728, Statutes of 2008, aligns transportation planning, land use and housing to reshape development in communities to help achieve the state’s climate goals by requiring ARB to set regional targets for GHG emissions reductions from passenger vehicle use.
AB 118 (Núñez), Chapter 750, Statutes of 2007, established the AQIP.
AB 32 (Núñez), Chapter 488, Statutes of 2006, requires ARB to adopt a statewide GHG emissions limit equivalent to the statewide GHG emissions levels in 1990 to be achieved by 2020 and adopt GHG emissions reduction measures by regulation.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Bay Area
American Lung Association
Borrego Solar
California Electric Transportation Coalition
California Environmental Justice Alliance
City of Emeryville
Clean Power Campaign
Coalition for Clean Air
East Bay Community Energy
Electric Vehicle Charging Association
Friends Committee on Legislation of California
Friends of the Earth
Fossil Free California
Local Government Commission
Marin Clean Energy
Metropolitan Transportation Commission
Peninsula Clean Energy
Plug In America
San Francisco Department of the Environment
Office of Ratepayer Advocates - PUC
Opposition
California Chamber of Commerce (unless amended)
Congress of Racial Equality
Interfaith Movement for Human Integrity
Internet Association (unless amended)
Los Angeles Area Metropolitan Churches
Lyft (unless amended)
National Action Network
National Asian American Coalition
National Diversity Coalition
Oakland African-American Chamber of Commerce
San Francisco African-American Chamber of Commerce
Silicon Valley Leadership Group (unless amended)
Southern Christian Leadership Conference
TechNet (unless amended)
Uber (unless amended)
Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093
Date of Hearing: June 20, 2018
ASSEMBLY COMMITTEE ON COMMUNICATIONS AND CONVEYANCE
Miguel Santiago, Chair
SBPCA Bill Id:SB 1014
Author:(Skinner) – As Amended Ver:June 11, 2018
SENATE VOTE: 24-12
SUBJECT: California Clean Miles Standard and Incentive Program: zero-emission vehicles
SUMMARY: Requires the California Air Resources Board (CARB) to adopt, and the California Public Utilities Commission (CPUC), to implement annual targets for the reduction of greenhouse gas (GHG) emissions driven on behalf of a Transportation Network Company (TNC). Specifically, this bill:
- Establishes the California Clean Miles Standard and Incentive Program, by requiring CARB, by January 1, 2020, to establish an emissions baseline for TNCs on a per-vehicle-mile or per-passenger-mile basis. CARB shall use 2018 as the baseline year.
- Requires CARB, by January 1, 2021, to adopt, and the CPUC to implement, annual targets, beginning in 2023, for the reduction under the specified baseline of emissions per vehicle-mile or passenger-mile driven on behalf of a TNC. These targets shall be consistent with the Zero Emission Vehicle (ZEV) Action Plan, shall include annual targets for increasing vehicle or passenger miles traveled using ZEVs, and shall be based upon vehicle and mileage data reported by the TNCs to the CPUC.
- Requires CARB to delay adoption, and the CPUC to delay implementation, of the specified targets if CARB or the CPUC finds that unanticipated barriers exist to expanding usage of ZEVs by TNCs. CARB and the CPUC shall review available data related to barriers to expanding usage of ZEVs by TNCs no less often than every two years, including data relative to current and future electric transportation adoption rates and charging infrastructure utilization rates.
- Requires each TNC, by January 1, 2022, and every two years thereafter, to develop an emissions reductions plan. A TNC emissions reductions plan shall include proposals on how to meet the emissions reduction specified targets based upon the following:
- Increased proportion of participating drivers with ZEVs using TNCs;
- Increased proportion of vehicle-miles completed by ZEVs relative to all vehicle-miles;
- Decreased gram-per-mile GHG emissions rates; and,
- Increased passenger-miles in proportion to overall vehicle-miles.
- Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a TNC, an affiliate of a TNC, or any other operator of a vehicle fleet, as specified, for the purposes of providing transportation services on behalf of a TNC shall be ZEVs.
- Requires the CPUC to consult with CARB and the California Energy Commission (CEC) to ensure that the California Clean Miles Standard and Incentive Program complements ongoing state planning efforts and funding programs intended to accelerate the adoption of ZEVs. The CPUC shall additionally do all the following:
- Ensure minimal negative impact on low-income and moderate income drivers;
- Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies, as specified; and,
- Support the goals of clean mobility for low- and moderate-income individuals.
- Makes the following finding and declarations:
- The transportation sector accounts for almost 50 percent of the emissions of GHGs in California, with light-duty vehicles making up 70 percent of the sector’s emissions. Additionally, approximately 80 percent of smog that continues to plague our state comes from the tailpipes of cars.
- California continues to have some of the most polluted air in the nation. According to the American Lung Association’s 19th Annual Air Quality Report, seven of the 10 most polluted cities in the nation are in California.
- Air pollution creates health impacts. The American Lung Association estimated that California suffered $15,000,000,000 in health costs in 2015 due to air pollution, including increases in respiratory illness and premature deaths.
- Senate Bill No. 375 (Chapter 728 of the Statutes of 2008) requires local governments to meet regional targets for reducing emissions of GHGs, set by CARB, through coordination of land use and transportation planning.
- The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) establishes a state policy of encouraging transportation electrification and requires CARB and the CEC to pursue transportation electrification, including increasing access to ZEVs for low and moderate income communities, through investments in charging infrastructure and removal of regulatory barriers.
- In 2012, Governor Edmund G. Brown issued Executive Order B-16-2012 creating a goal of 1.5 million ZEVs on the road by 2025.
- In October 2016, the Governor’s Interagency Working Group on ZEVs released the “2016 ZEV Action Plan,” updating the “2013 ZEV Action Plan,” and those action plans have served as the state’s roadmap to achieve the goal of 1.5 million ZEVs on California’s roads by 2025.
- In 2018, Governor Brown’s issued Executive Order B-48-18 creating an additional target of 5 million ZEVs by 2030. That order also sets ZEV infrastructure goals of 200 hydrogen fueling stations and 250,000 ZEV chargers, including 10,000 direct current fast chargers, by 2025.
- CARB has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to subsidize the purchase of ZEVs by providing rebates for the purchase of new ZEVs, with a priority and an augmented funding amount for low-income drivers.
- Additionally, CARB has established the Enhanced Fleet Modernization Program and the Financing Assistance for Lower-Income Consumers (Financing Assistance Pilot Project) program to subsidize the purchase of, and provide for low-cost financing for, ZEVs by low-income drivers. Under the Enhanced Fleet Modernization Plus Up Pilot program, a low-income individual can be eligible for up to $9,500 toward the purchase of an advanced technology vehicle.
- In 2017, CARB approved the first cycle of investment from the Volkswagen Settlement, which plans to invest $800,000,000 over a 10-year period in zero-emission charging infrastructure, public outreach on ZEVs, and investments in projects, such as car-sharing programs, that will increase access to ZEVs for all consumers in the state, including those in lower income and disadvantage communities.
- The CEC administers the Alternative and Renewable Fuels and Vehicle Technology Program which invests up to $100,000,000 annually in ZEV fueling and charging infrastructure throughout the state.
- Ride-hailing services, known formally as TNCs, are services that offer on-demand rides by connecting drivers using their personal vehicles with passengers hailing a ride through a technology-based platform. As more Californians use ride-hailing services, TNCs are well positioned to help state and local governments meet pollution and emission reduction goals, advance sustainable land-use objectives, and help meet goals to increase access to clean mobility options for low- and moderate-income individuals, by increasing use of ride-hailing services that utilize ZEVs, promoting and encouraging shared rides, and helping to reduce congestion.
- ZEVs not only have environmental benefits, but are significantly cheaper to operate than gas combustion vehicles. TNC drivers with high vehicle miles traveled are ideal candidates for ZEVs because they drive more miles each year than the average driver and will save on fuel costs and maintenance costs. Barriers to adoption of ZEVs by TNCs include limited driving range and increased fueling time, but improvements in vehicle and fueling technology continue to reduce these barriers.
- A recent Rocky Mountain Institute study (Richard Li Garrett Fitzgerald (March 29, 2018) Ride-Hailing Drivers Are Ideal Candidates for Electric Vehicles) concluded that a full-time TNC driver working 50 hours a week can save an average of $5,200 per year in total vehicle expenses with an electric vehicle (EV) as compared to a gas combustion vehicle.
- In furtherance of state, regional, and local goals to align pollution and emissions reduction from light-duty vehicles with sustainable land-use planning, and to promote access to clean mobility for all, including low and moderate income individuals, it is the intent of the Legislature to support transportation decarbonization and the widespread deployment of ZEVs throughout the state, and particularly by TNCs, in a manner that promotes accessible, good quality jobs, sustainable land use, reduced congestion, and increased mobility for all Californians.
EXISTING LAW:
- Establishes the “Passenger Charter-Party Carriers Act,” which authorizes the CPUC to supervise and regulate every charter-party carrier of passengers (CPC) in the State and may do all things, necessary and convenient in the exercise of such power and jurisdiction, including issuing permits or certificates, investigating complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations. (Public Utilities Code (PUC) Section Code 5381 et seq.)
- Defines a “Transportation network company” to mean an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle. (PUC Section 5431)
- Requires the CPUC, in consultation with the CARB and CEC, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, as specified, and reduce emissions of GHG to 40 percent below 1990 levels by 2030, and to 80 percent below 1990 levels by 2050. Programs proposed by electrical corporations shall seek to minimize overall costs and maximize overall benefits. Requires the CPUC to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, via a reasonable cost recovery mechanism, as specified, do not unfairly compete with nonutility enterprises as specified, include performance accountability measures, and are in the interests of ratepayers, as specified. (PUC Section 740.12 (b))
- Provides CARB with primary responsibility for control of mobile source air pollution, including adoption of rules for reducing vehicle emissions and the specification of vehicular fuel composition. (Health and Safety Code (HSC) Section 39000, et seq., and Section 39500, et seq.)
- Requires CARB to adopt rules and regulations that would reduce the states GHG emission levels to 1990 levels by 2020. (HSC Section 38500 et seq.)
- Establishes the Air Quality Improvement Program that is administered by the CARB for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the Clean Vehicle Rebate Project to promote the production and use of ZEVs by providing rebates for the purchase of new ZEVs. (HSC Section 44274 et seq.)
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.
COMMENTS:
- Authors Statement: According to the author, “Tailpipe emissions from fossil fueled vehicle are still the largest source of air and climate pollution; SB 1014 enlists ride-hailing services in our statewide efforts to increase electric and other [ZEVs] on our roads.”
- Background: The transportation sector represents 50 percent of the California’s GHG emissions and 80 percent of nitrogen oxides. Reducing carbon emissions from the transportation sector is a critical step needed in order to meet California’s climate goals and clean air standards. ZEVs run on electricity stored in batteries instead of fossil fuels, such as plug-in EVs, plug in hybrid EVs, and hydrogen fuel cell EVs. ZEVs are a vital component of the state’s effort to reach its GHG emission reduction goals. The availability of new vehicle models, improved battery technology resulting in greater driving range, increase availability of electric charging infrastructure, and federal and state incentives have all contributed to expanding the ZEV market.
- California’s ZEV Action Plan: In 2012, Governor Brown signed Executive Order B-16-12 which directed the CPUC and other state agencies to help accelerate the market for ZEVs to support the adoption of 1.5 million ZEVs on California roads by 2025 and the integration of plug-in EV charging into the state’s electricity grid by 2020. In October 2016, the Governor’s Interagency Working Group on ZEVs released its 2016 ZEV Action Plan, which provides an updated roadmap towards reaching the states ZEV goals. The plan highlighted certain priorities for ZEV development and adoption including, raising consumer awareness and education about ZEVs; ensuring ZEVs are accessible to a broad range of Californians, making ZEV technologies commercially viable in targeted sectors, and aiding ZEV market growth beyond California.
In January 2018, Governor Brown issued a new executive order (B-48-18) directing all state entities to work with the private sector and all appropriate levels of government to put at least five million ZEVs on California roads by 2030. The executive order directed all state entities to spur the construction and installation of ZEV charging and fueling infrastructure, find ways to streamline ZEV infrastructure installation processes, and carry out additional programs and actions to reach the goal.
- California’s ZEV Investments: As technology continues to improve ZEVs will be able to travel farther, charge faster, and become more affordable. Since 2012, California’s ZEV market has grown significantly through the expansion of federal and state incentives and programs. This includes support by the Legislature through the passage of a number of legislation. Amongst them includes SB 1275 (De Leon) Chapter 530, Statutes of 2014, which created the California Charge Ahead Initiative that sets a goal and policies to achieve the goal of one million ZEVs vehicles on the road by 2023; and AB 118 (Nunez) Chapter 750, Statutes of 2007, which established the Alternative and Renewable Fuels and Vehicle Technology program, the Enhanced Fleet Modernization Program, and the Air Quality Improvement Program to promote vehicle and fuel technology to reduce air pollution and GHG emissions.
In addition, to other EV market acceleration investment programs throughout California state agencies, in 2015 the Legislature passed SB 350 (De Leon) Chapter 547, Statutes of 2015, which set 2030 GHG reduction targets to be achieved through a variety of measures, including widespread transportation electrification. In 2015, the CPUC directed California’s three investor owned utilities (IOUs) to submit applications proposing projects aimed at achieving the transportation electrification goals in SB 350. The CPUC has since proposed two decision authorizing utility investments in transportation electrification, including in November 2017, authorizing the three IOUs to spend up to $42.8 million on 15 pilot projects aimed at accelerating EV adoption, improving air quality and reducing GHG emissions; and in March 2018 approving four IOU projects, totaling approximately $589 million, aimed at installing EV charging infrastructure.
- Transportation Network Companies: The CPUC has regulatory and safety oversight authority over CPCs, such as limousines, airport shuttles, tour buses, sightseeing services, and charter, party buses. CPCs are charter vehicles that offer transportation services on a prearranged basis for the exclusive use of an individual or group. Charges are based on either, or a combination of, mileage or time of use. TNCs are companies that offer prearrange transportation services through an app on their smartphone or computer. Although TNCs do not neatly fall into the conventional definition of a CPC, the CPUC believes that TNCs fall under its existing jurisdiction over certain transportation services because they are providing passengers’ transportation for compensation.
- TNCs & ZEVs: With the growing number of TNCs on California roads, there have been concerns that TNC vehicles are contributing to congestion and increased localized air pollution and GHG emissions. This bill requires CARB to adopt, and the CPUC, to implement annual targets for the reduction of GHG emissions driven on behalf of a TNC. The bill seeks to find ways to incentivize TNC drivers to use more ZEVs. As part of SB 350, both Southern California Edison and San Diego Gas & Electric submitted separate proposals to the CPUC to incentivize TNC drivers to use ZEVs. Both applications were denied by the CPUC, however, the CPUC has express interest in exploring the issue of ZEVs and TNC. The CPUC’s Policy and Planning Divisions has released a white paper (Electrifying the Ride-Souring Sector in California) to assess the opportunities for GHG emissions reduction in the TNC sector through the increase use of ZEVs, and is planning to hold future workshops on ZEVs and TNCs to explore the issue.
Furthermore, although the number of ZEVs has continued to rise, TNC drivers generally have limited income and drive for TNCs as a way to supplement their income. Although TNCs have certain vehicle requirements that must be met before becoming a TNC driver, TNCs do not own the vehicles and not all TNC drivers are, or can afford, a ZEV. In addition, limited battery range, and charging infrastructure for ZEVs creates further barriers for ZEV adoption. By requiring ZEVs to be used by TNCs, the pool of available vehicles and drivers may be reduced, limiting the ability of prospective drivers to become TNC drivers. This bill requires 100 percent of TNC vehicles to be ZEVs by 2030. Although a laudable goal, the goal runs counter to the bills requirements tasking the CARB and the CPUC to adopt annual targets consistent with the California’s ZEV Action Plan.
The author may wish to consider an amendment strike the requirement for 100 percent of TNCs vehicles to be ZEVs by 2030.
- Arguments in Support: According to Plug in America, “Encouraging the TNC companies to increase the number of vehicles miles travelled by ZEVs is appropriate not only to put more [plug-in electric vehicles (PEV)] on the road through this bill, but also to promote education and awareness of these vehicles. One of the biggest barriers to greater adoption of PEVs in California is the lack of education programs and funding for PEVs. Despite having purchase incentives and other supportive policies for PEVs, unless the consumer knowns about the cars, the adoption will not occur.”
- Arguments in Opposition: According to a coalition of industry groups, “While we support greater adoption of [EVs] and reduction of emissions from our member companies in California, we must oppose this bill unless amendments are taken to make this a more workable proposal. Practically, this bill is an unfunded mandate and continues to impose the most aggressive emissions reduction requirements on a more vulnerable group of Californians working as rideshare drivers. This bill must not only set achievable targets, but address the structural barriers that restrict a more rapid transition to a shared, electric transportation future access to affordable EVs, lack of battery range in current ZEVs, insufficient DC faster charging infrastructure in cities, and other economic disadvantages that EV rideshare drivers face today.”
- Suggested Amendments:
5450 (d) Beginning January 1, 2030, 100 percent of the vehicles that are purchased, leased, owned, or contracted for by a transportation network company, an affiliate of a transportation network company, or any other operator of a vehicle fleet for the purposes of providing transportation services on behalf of a transportation network company shall be zero-emission vehicles. For purposes of this section, “vehicle fleet” means 10 or more vehicles under common ownership or operation.
- Previous Legislation: SB 350 (De Leon) of 2015 set GHG reduction targets to be achieved by 2030 through a variety of measures, including supporting electrification of the transportation system and established requirements of the CPUC in adopting EV charging proposals from the IOUs. Status: Chaptered by the Secretary of State, Chapter 547, Statutes of 2015.
SB 1275 (De Leon) of 2014 established the Charge Ahead California Initiative to be administered by the CARB, in consultation with the CEC, air pollution control and air quality management districts, and the public. Specifies that the goals of the initiative is to, among other things, place in service at least one million ZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs. Status: Chaptered by the Secretary of State, Chapter 530, Statutes of 2014.
SB 1204 (Lara and Pavley) of 2014 created the California Clean, Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, to be administered by CARB and funded with cap and trade revenues to develop zero and near zero emission truck, bus, and off-road vehicle and equipment technologies and related projects. Status: Chaptered by the Secretary of State, Chapter 524, Statutes of 2014.
- Double-referral: This bill is double referred, and if passed by this Committee, will be referred to the Assembly Committee on Transportation.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Bay Area
American Lung Association
Borrego Solar
California Electric Transportation Coalition
California Environmental Justice Alliance
City of Emeryville
Clean Power Campaign
Coalition for Clean Air
East Bay Community Energy
Electric Vehicle Charging Association
Environment California
Friends Committee on Legislation of California
Friends of the Earth
Fossil Free California
Local Government Commission
Marin Clean Energy
Peninsula Clean Energy
Plug In America
San Francisco Department of the Environment
Office of Ratepayer Advocates - CPUC
Opposition
California Chamber of Commerce (unless amended)
Congress of Racial Equality
Interfaith Movement for Human Integrity
Internet Association (unless amended)
Los Angeles Area Metropolitan Churches
Lyft (unless amended)
National Action Network
National Asian American Coalition
National Diversity Coalition
Oakland African-American Chamber of Commerce
San Francisco African-American Chamber of Commerce
Silicon Valley Leadership Group (unless amended)
Southern Christian Leadership Conference
TechNet (unless amended)
Uber (unless amended)
Analysis Prepared by: Edmond Cheung / C. & C. / (916) 319-2637
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 1014
Amended: 5/25/18
SENATE ENERGY, U. & C. COMMITTEE: 7-3, 4/17/18
AYES: Hueso, Bradford, Hertzberg, Hill, McGuire, Skinner, Stern
NOES: Morrell, Cannella, Vidak
NO VOTE RECORDED: Wiener
SENATE TRANS. & HOUSING COMMITTEE: 8-3, 4/24/18
AYES: Beall, Allen, Dodd, Galgiani, McGuire, Roth, Skinner, Wiener
NOES: Cannella, Gaines, Vidak
NO VOTE RECORDED: Morrell, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/25/18
AYES: Lara, Beall, Bradford, Hill, Wiener
NOES: Bates, Nielsen
DIGEST:
This bill requires the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB), to establish the Clean Miles Standard Program (CCMSP) for zero-emission vehicles (ZEVs) used to provide rides by ride-hailing companies, known as transportation network companies (TNC), with the goal of having 100 percent of the vehicle fleet owned, or contracted for, to be ZEVs by January 1, 2030.
Existing law:
- Establishes the CPUC and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
- Defines passenger stage corporation as every corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of any passenger stage over any public highway in the state between fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations. (Public Utilities Code §§226 and 1031 et seq.)
- Defines "charter-party carrier of passengers" as every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers. (Public Utilities Code §5351)
- Establishes the Air Quality Improvement Program that is administered by the ARB for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the Clean Vehicle Rebate Program to promote the production and use of ZEVs by providing rebates for the purchase of new zero-emission vehicles (NZEVs). (Health and Safety Code §44274 et seq.)
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG) and requires all monies collected by ARB as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. (Health and Safety Code §§38500 et seq. and 39710 et seq.)
This bill:
- Makes a number of findings and declarations concerning the greenhouse gas emissions and criteria air pollution associated with the transportation sector, the state’s policies and goals related to deploying ZEVs, and the opportunity for ride-hailing services to contribute to the state’s ZEV efforts.
- Requires the CPUC, in consultation with the ARB, to establish the California CCMSP for ZEVs used to provide transportation services by TNCs.
- Establishes the goal of the CCMSP is to increase the percentage of passenger miles provided by ZEVs used on behalf of TNCs.
- Requires the CPUC to establish quarterly targets for the portion of vehicle or passenger miles traveled by ZEVs on behalf of a TNC, with the following goals in the intervening years:
- 20 percent by December 31, 2023.
- 50 percent by December 31, 2026.
- 100 percent by January 1, 2030 of the vehicles owned, leased, or contracted for by a TNC, or an operator of a vehicle fleet (10 or more vehicles) for TNCs.
- Requires the CPUC in implementing this bill to:
- Ensure minimal negative impact on low-income and moderate-income drivers.
- Ensure that ride-hailing services complement and support the sustainable land-use objectives of sustainable communities strategies prepared pursuant to Government Code Section 65080.
- Support the goals of clean mobility for low- and moderate-income individuals.
Background
Enter TNCs. While most closely related to a taxicab, TNCs prearrange transportation services via an online application on a smartphone or computer. Patrons request a ride to a predetermined location, and the application connects them with a TNC driver. Payment is processed through the application so that no physical financial transaction occurs between the patron and driver and the TNC takes a commission on each trip. TNCs enjoy differing regulations as compared to taxicabs, including the ability to set their own fares, flexibility to increase supply, and, generally less stringent requirements – including those related to vehicle inspections, driver background checks, insurance coverage, driver training and in some cities requirements for ZEVs or NZEVs within their fleets. Whereas taxicabs are regulated by locals, TNCs are regulated at the state level by the CPUC. Commonly known as ride-hailing companies, TNCs have grown dramatically in numbers within the short time since they first came on the scene. One TNC reported 120,000 drivers across the state, according to their testimony to this committee. [Uber testimony. Joint Hearing of the Senate Energy, Utilities and Communications and Transportation and Housing Committees. Leveling the Playing Field: Ride-hailing disruption. February 2016.] The entrance of TNCs into the transportation for-hire market has disrupted the sector.
ZEVs. ZEVs run on electricity stored in batteries instead of fossil fuels. ZEV technologies include hydrogen fuel cell electric vehicles and plug-in electric vehicles, which include both pure battery electric vehicles and plug-in hybrid electric vehicles.
ZEV climate goals. With transportation accounting for about 37 percent of California’s GHG emissions, transforming California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which sets a goal and policies to achieve 1,000,000 ZEVs and NZEVs by 2023. In January of this year, Governor Brown issued another Executive Order which calls for a new target of five million ZEVs on California’s roads by 2030. The Executive Order also proposes a $2.5 billion eight-year investment plan to fund infrastructure and vehicle rebates for consumers.
SB 1014. This bill proposes to establish a mandate on TNCs to achieve a goal of 100 percent of the vehicles owned, or contracted for by TNCs, to be ZEVs by 2030. TNC ride-hailing services are very popular with consumers. The growing number of TNCs on California roads has raised concerns that the vehicles are contributing to congestion on city streets and increasing localized air pollution and GHG emissions. While there is limited data, some studies have found that the adoption and use of ride-hailing services are attracting passengers away from public transit, biking, and walking. This bill attempts to address concerns that the growth of TNCs will increase California’s emissions. As with the renewable portfolio standard, this bill proposes TNC companies meet escalating specified percentage of ZEVS by their fleet over a specified time horizon.
Driver impacts. By requiring ZEVs to be used by TNCs, the pool of available vehicles and drivers may be reduced. As acknowledged by the companies, most TNC drivers are “everyday people just trying to make ends meet with their personally owned vehicles.” TNC companies have notoriously denied that the drivers are their employees, but rather characterize them as independent contractors, since the TNC is just a platform. Furthermore, the majority of the drivers, more than 50 percent, according to the Silicon Valley Leadership Group, identify as low-income. In fact, a recent Massachusetts Institute of Technology (MIT) study initially found that the majority of TNC drivers are earning below minimum wage. However, the companies took issue with the study and MIT has revised its findings to drivers earning on average $8-10 per hour. Nonetheless, TNC drivers generally seem to have limited income and ability to finance a new vehicle, even with available state incentives. Moreover, turnover of drivers seems to be particularly common with the TNC services. Therefore, TNC driver today may not be one tomorrow. Additionally, the battery range and charging infrastructure limitations for ZEVs may also further reduce the available TNC vehicles and drivers, this may be particularly acute in suburban and rural areas.
Another approach. As the author notes, there are some efforts in some cities to help clean up the TNC vehicle fleet. One effort of particular note is in London whereby Uber is assessing a fee on all rides to fund incentives for clean vehicles for drivers. The approach there seems to be voluntary by the company, and one that could be replicated in California.
TNC goal of 100 percent ZEVs by 2030. This bill attempts to address the unintended effects on drivers of a ZEV mandate on TNCs. Specifically, the ultimate goal of 100 percent ZEVs is required of the TNC entity, rather than the drivers. The bill requires that any vehicles purchased, leased, owned by a TNC or contracted for by a TNC, as may be the case with the use of autonomous vehicles, to be ZEVs. However, the intervening goals, 20 percent by 2023 and 50 percent by 2026, are largely on the miles driven by TNC drivers.
Related/Prior Legislation
SB 350 (De León, Chapter 547, Statutes of 2015), among the many provisions of the bill, included provisions related to supporting electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to be administered by the state board, in consultation with the California Energy Commission, air pollution control and air quality management districts, and the public. The bill states that the goals of the initiative are to, among other things, place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- Ongoing costs of approximately $170,000 annually (Transportation Reimbursement Account) for one position to manage the proceeding where interim requirements are adopted, and to collect and analyze VMT data from TNCs to monitor compliance.
- Potential enforcement costs (General Fund, special fund) depending upon, if and how, the bill is implemented and enforced.
350 Bay Area
American Lung Association in California
Borrego Solar
California Electric Transportation Coalition
California Environmental Justice Alliance
City of Emeryville
Clean Power Campaign
Coalition for Clean Air
East Bay Community Energy
Electric Vehicle Charging Association
Environment California
Fossil Free California
Friends Committee on Legislation of California
IBEW Local Union 11
Local Government Commission
Marin Clean Energy
Metropolitan Transportation Commission
Natural Resources Defense Council
Plug In America
OPPOSITION: (Verified 5/24/18)
Congress of Racial Equality
Engine
Interfaith Movement for Human Integrity
Internet Association
Los Angeles Area Metropolitan Churches
Lyft
National Action Network
National Asian American Coalition
National Diversity Coalition
Oakland African-American Chamber of Commerce
San Francisco African-American Chamber of Commerce
Silicon Valley Leadership Group
Southern Christian Leadership Conference
TechNet
ARGUMENTS IN SUPPORT: According to the author, “TNCs are responsible for more and more of the vehicle miles travelled in California communities, driving approximately 570,000 vehicle miles per weekday in San Francisco. As California continues to create policies and regulations to clean up our dirty air, the state must ensure that TNCs are driving cleaner miles on our roads.”
ARGUMENTS IN OPPOSITION: The Silicon Valley Leadership Group opposes the mandates proposed in this bill and states that they generally prefer the framework of incentives for achieving ZEV miles driven goals due to several reasons, including that the TNCs are not made up of professional drivers who are going out to buy cars, more than 50 percent of the TNC drivers in California identify as low-income, and others. In opposing the bill, Lyft expresses a similar sentiment to the above concerns and adds that the existing limitations on availability of ZEV charging infrastructure hinders the ability of TNCs to meet the proposed goals in the bill.
5/30/18 16:36:47
**** END ****
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 1014 (Skinner) - Zero-emission vehicles
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
SB 1014 requires that 100 percent of the vehicle miles traveled (VMTs) on behalf of transportation network companies (TNC) in California are by zero-emission vehicles (ZEVs) and specifies interim the following minimum percentages of VMTs on behalf of TNCs be in ZEVs by the specified dates: 20 percent by December 31, 2023 and 50 percent by December 31, 2026. The bill also requires the California Public Utilities Commission (CPUC) to establish quarterly interim requirements that ensure adequate progress toward the minimums established in the bill.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 25, 2018
Fiscal Impact:
- Ongoing costs of approximately $170,000 annually (Transportation Reimbursement Account) for one position to manage the proceeding where interim requirements are adopted, and to collect and analyze VMT data from TNCs to monitor compliance.
- Potential enforcement costs (General Fund, special fund) depending upon, if and how, the bill is implemented and enforced.
Author Amendments:
Amendments revise the program to apply to vehicle or passenger miles traveled. In addition, author amendments add clarifying statements and a definition for fleets, add several findings and declarations, and add conditions on the program to:
- Ensure minimal impacts to low-income TNC drivers
- Support and complement sustainable community strategies
-- END --
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 1014 (Skinner) - Zero-emission vehicles
Version: April 26, 2018 | Policy Vote: E., U., & C. 7 - 3, T. & H. 8 - 3 |
Urgency: No | Mandate: Yes |
Hearing Date: May 14, 2018 | Consultant: Narisha Bonakdar |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
- SB 1014 requires that 100 percent of the vehicle miles traveled (VMTs) on behalf of transportation network companies (TNC) in California are by zero-emission vehicles (ZEVs) and specifies interim the following minimum percentages of VMTs on behalf of TNCs be in ZEVs by the specified dates: 20 percent by December 31, 2023 and 50 percent by December 31, 2026. The bill also requires the California Public Utilities Commission (CPUC) to establish quarterly interim requirements that ensure adequate progress toward the minimums established in the bill.
Fiscal Impact:
- Ongoing costs of approximately $170,000 annually (Transportation Reimbursement Account) for one position to manage the proceeding where interim requirements are adopted, and to collect and analyze VMT data from TNCs to monitor compliance.
- Unknown enforcement costs (General Fund, special fund) depending upon, if and how, the bill is enforced.
- Unknown, likely minor, ongoing costs to the Air Resources Board for consultation.
- Unknown potential cost pressures, likely in the hundreds of thousands of dollar, to provide incentives for TNC fleet vehicle or displaced TNC drivers who cannot independently afford to purchase a ZEV, but would like to continue driving for TNCs .
Background: California’s Climate Goals, Zero-Emissions Vehicles (ZEVs), and the programs to accelerate their adoption. Transportation accounts for about 37 percent of California’s greenhouse gas (GHG) emissions. As such, transforming California’s transportation system away from gasoline to zero-emission vehicles (purely battery operated or plug-in hybrid hydrogen fuel cell electric vehicles and plug-in electric vehicles) is a critical to achieving the state’s goal to reduce GHG emissions to 40 percent below 1990 levels by 2030. The state has undergone a significant public process and Is in the process to set rate for this upcoming year (2019).
In 2012, Governor Brown issued Executive Order B-16-12 which calls for 1.5 million ZEVs in California by 2025 and establishes several milestones. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones outlined in the Executive Order. The Legislature supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which set a goal and policy to achieve one million zero and near-zero emission vehicles by 2023.
Concern about the limited range per charge (about 100 miles) is often cited as a main hurdle to more widespread adoption of EVs. The higher purchase price/difficulty obtaining financing relative to their carbon-emitting counterpart as well as other practical considerations such as the lack of charging infrastructure throughout the state, long charging times (up to several hours), and the inability to install at home (for example in multifamily housing) were found to similarly dissuade potential purchasers. To address these concerns, policymakers have enacted several laws that address access and cost issues to encourage the purchase of ZEVs.
The CPUC, in consultation with relevant state and local government entities and impacted private entities, was directed to take steps to remove barriers to the widespread use of plug-in hybrid and electric vehicles and to implement policies that promote the infrastructure development necessary for the widespread deployment of low-emission vehicles. Additionally, state law requires electrical corporations to file applications for programs and investments to accelerate transportation electrification to help achieve state air quality standards and GHG emissions reduction goals. Now, a robust incentive infrastructure is in place to make ZEV ownership more attractive. Funding and plans are in place to install EV charging infrastructure throughout the state to address concerns about the cars’ range. Additionally, ZEV owners enjoy financial incentives (such as rebates and tax credits) that can reduce purchase price by as much as $10,000, and convenience benefits like use of carpool lanes by single-passenger ZEVs and no- or low-cost parking and charging in certain parking structures.
Now that barriers to ZEV ownership have been addressed…Enter the TNC. Commonly known as ride-hailing companies, the number of TNC drivers has grown dramatically within the short time since they disrupted the for-hire vehicle market less than a decade ago. Whether due to the convenience, lower cost per trip, or ultra-hip marketing, TNCs have attracted droves of riders who would not have otherwise used their seemingly distant relative, the taxicab. The proliferation of TNCs, responsible for between one and 20 percent of vehicle miles traveled (nationwide and in San Francisco, respectively) has not only displaced taxicabs, but also appears to be reducing the need for or driving of personal vehicles.
Proposed Law: This bill:
- Defines “Zero-emission vehicle” by referencing Section 44258 of the Health and Safety Code.
- Requires the CPUC to establish the California Clean Miles Standard and Incentive Program for zero-emission vehicles used by participating drivers to provide prearranged transportation services for compensation
- States that the program goal is to increase the percentage of passenger miles provided by zero-emission vehicles used on behalf of TNCs.
- Requires the CPUC to establish quarterly targets for the portion of vehicle miles traveled by ZEVs on behalf of a TNCs to ensure reasonable progress in meeting the following percentages:
- Twenty percent by December 31, 2023.
- Fifty percent by December 31, 2026.
- 100 percent by January 1, 2030
- States that no reimbursement is required as a result of the state mandate.
Related Legislation:
SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to be administered by the state board, in consultation with the CEC, air pollution control and air quality management districts, and the public. The bill states that the goals of the initiative are to, among other things, place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) among the many provisions of the bill included provisions related to supporting electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
Staff Comments:
According to the author, “As more and more Californians rely on TNCs to get around town, it makes sense that these vehicles be green. Electrifying rideshare vehicles cleans the air and protects our climate.”
This bill is a work in progress. This bill was heard in the Senate’s Energy and Transportation policy committees, each of which highlights specific concerns about the feasibility of the proposed program (summarized below). Staff notes and generally concurs with these concerns. Staff also notes potential state costs or cost pressures on ZEV programs to facilitate TNC vehicles (whether privately-owned or fleet vehicles) transition vehicle to ZEV to avoid displacing drivers. The state could similarly experience pressure on other funds resulting from loss of income for individuals who cannot or find it impractical to purchase a ZEV (currently representing a large portion of the population due to driving needs and costs, among other reasons.)
The Senate Transportation and Housing Committee comments. As suggested by Transportation committee, the bill is unclear about how is bill is intended to encourage increased use of electric vehicles (EV) by TNCs and their drivers. Progress is measured by the percentage of miles traveled by the vehicles on the TNC platform that are zero emission. It isn’t clear whether this only includes miles for which a passenger is paying (e.g. revenue miles) or total miles traveled by the TNC driver, including when they are seeking a fare. Either way, tracking this metric will require the cooperation of the TNCs, who don’t report this information today.
The committee analysis points to practical limitation of EV deployment in a TNC setting, such as their relatively high cost, long recharging times, and limited range. The committee also discussed limitations why TNC drivers may not be the ideal market given they are often part-time drivers supplanting their low-moderate incomes, using their only car and limited access to a garage. Also many commute to their driving location making the EVs limited range of EVs problematic. The analysis concludes that, at least in the near term it is likely that requiring EVs may make the TNC gig uneconomic for some drivers, and suggests the author direct the appropriate state entity to convene a stakeholder group to think of potential alternative mechanisms for encouraging EV use by TNC drivers, such as higher incentives. The CPUC could create an incentive program to pay EV TNC drivers a higher rate to compensate for the additional cost. The timeline in the current bill represent the extended timeline committee recommended.
The Senate Committee on Energy, Utilities, and Communications had similar comments, stating citing the Silicon Valley Leadership Group statement that more than 50 percent identify as low-income and an Massachusetts Institute of Technology (MIT) study that found the average income earned driving for a TNC is between $8 and $10. Nonetheless, TNC drivers generally seem to have limited income and ability to finance a new vehicle, even with state incentives. This Moreover, turnover of drivers seems to be particularly common with the TNC services. Therefore, TNC driver today may not be one tomorrow. Additionally, the battery range and charging infrastructure limitations for ZEVs may also further reduce the available TNC vehicles and drivers, this may be particularly acute in suburban and rural areas. As this bill moves forward, the author may wish to consider how to balance the desire for ZEVs on California roads and the unintended impacts to potential TNC drivers and the availability of the service.
Another approach. As the author notes, there are some efforts in some cities to help clean up the TNC vehicle fleet. One of particular note is an effort in London whereby Uber is assessing a fee on all rides to fund incentives for clean vehicles for drivers in London. The approach there seems to be voluntary by the company, and one that could be replicated in California.
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 4/24/2018
Author: | Skinner | ||
Version: | 4/19/18 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Randy Chinn | ||
SUBJECT:
DIGEST: This bill requires the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB), to establish minimum vehicle miles traveled by zero-emission vehicles (ZEVs) on behalf of a Transportation Network Company (TNC).
ANALYSIS:
Existing law:
- Authorizes the CPUC to regulate TNCs.
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG).
- Establishes many programs to support the purchase of electric vehicles (EVs) and promote the deployment of associated charging infrastructure, such as the Clean Vehicle Rebate Program.
This bill:
- Requires the CPUC, in consultation with the ARB, to establish the California Clean Miles Standard and Incentive Program (CCMSIP) to increase the number of ZEV vehicle miles traveled (VMT) on behalf of a TNC.
- Establishes that the goal of the CCMSIP is to increase the percentage of passenger miles provided by ZEVs used on behalf of TNCs so that 100% of the passenger miles are provided by ZEVs by December 31, 2028.
- Requires the CPUC to establish quarterly targets for the portion of VMT by ZEVs on behalf of a TNC, and requires that not less than the following percentages of vehicle miles traveled be provided by ZEVs:
- 20% by December 31, 2020.
- 50% by December 31, 2023.
- Requires that 100% of VMT be ZEV for vehicles owned and operated by a TNC beginning in 2030.
COMMENTS
- Author’s Statement. “As more and more Californians rely on TNCs to get around town, it makes sense that these vehicles be green. Electrifying rideshare vehicles cleans the air and protects our climate.”
- What’s a TNC? Similar to taxis, TNCs, such as Lyft and Uber, provide rides for a fee. Unlike taxis, TNCs are regulated by the CPUC, not local governments. TNCs consider their drivers to be independent contractors; they drive with their personal vehicles. Most TNC drivers work part time.
- ZEV Programs. Virtually all ZEVs are powered exclusively by electricity; they have no tailpipe emissions. California has many programs and policies to support ZEVs. 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 the Clean Vehicle Rebate Program, which subsidizes the purchase of EVs, and help bring 250,000 vehicle charging stations and 200 hydrogen fueling stations to California by 2025. Several other programs support the deployment of EV charging infrastructure.
- How Far. This bill is intended to encourage increased use of electric vehicles (EV) by TNCs and their drivers. Progress is measured by the percentage of miles traveled by the vehicles on the TNC platform that are zero emission. It isn’t clear whether this only includes miles for which a passenger is paying (e.g. revenue miles) or total miles traveled by the TNC driver, including when they are seeking a fare. Either way, tracking this metric will require the cooperation of the TNCs, who don’t report this information today.
- Can This Work? There are practical reasons that will limit EV deployment in a TNC setting, such as their relatively high cost, long recharging times, and limited range. EV manufacturers are making progress at overcoming these barriers, but it’s difficult to see enough progress being made for the TNCs to meet the first EV VMT target, which is currently only two and a half years away. In the last hearing on this bill the author committed to extending the time for meeting the 20% and 50% targets. The author may wish to consider extending the 20% and 50% timelines by three years, to 2023 and 2026 respectively, to provide time for the EV industry, both vehicle manufacturers and charging infrastructure companies, to develop new offerings which make EVs a more economic choice for more people.
Another concern is that most TNC drivers are part-time, using the TNC gig as a way to supplement their income. Their TNC car is likely their only car, which is not the ideal target market for EVs. Some may be renters, or living in multi-family dwellings, which limits access to charging stations. Some may be moderate- or lower-income, making it hard to afford the currently more-costly EVs. Some may commute into urban areas to pick up rides, making the limited range of EVs problematic. The practical barriers to EVs for lower-income drivers will hopefully be resolved as California’s supportive EV policies take effect and manufacturers continue improving their EV products. Extending the target dates by three years, as suggested above, will help. But at least in the near term it is likely that requiring EVs may make the TNC gig uneconomic for some drivers.
- An Alternative. There are alternative mechanisms for encouraging EV use by TNC drivers. The CPUC could create an incentive program to pay EV TNC drivers a higher rate to compensate for the additional cost. Creative minds might unearth suitable funding sources. There may be alternative market-based mechanisms, such as allowing TNC customers to request EV rides. Determining the mechanics and details of such appropriate programs will require data, analysis and study. The author may wish to consider having the CPUC, or some other appropriate agency, convene stakeholders to think through and recommend such a program.
- Conforming amendment. The 100% goal applies to miles traveled by vehicles owned or operated by the TNC, not to miles driven by TNC drivers using their own vehicles. This is inconsistent with the goal of the program established in the bill (Section 5450(a)). The author may wish to harmonize those provisions.
- Double Referral. This bill passed the Senate Energy, Utilities and Communications Committee on April 17, 2018 on a 7-3 vote.
Related Legislation:
SB 1275 (De León, Chapter 530, Statutes of 2014) — established the Charge Ahead California Initiative to be administered by the state board. Establishes goals to place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) — supported electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 18, 2018.)
SUPPORT:
CALSTART
Electric Vehicle Charging Association
IBEW Local Union 11
(The Senate Energy, Utilities and Communications Committee lists the following support: American Lung Association in California, Electric Vehicle Charging Association, Marin Clean Energy, Plug In America)
OPPOSITION:
Lyft
(The Senate Energy, Utilities and Communications Committee lists the following opposition: California Labor Federation, California Teamsters, Internet Association, Lyft, Silicon Valley Leadership Group, TechNet)
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: SB 1014 Hearing Date: 4/24/2018
Author: | Skinner | ||
Version: | 4/19/18 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Randy Chinn | ||
SUBJECT: Zero-emission vehicles
DIGEST: This bill requires the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB), to establish minimum vehicle miles traveled by zero-emission vehicles (ZEVs) on behalf of a Transportation Network Company (TNC).
ANALYSIS:
Existing law:
- Authorizes the CPUC to regulate TNCs.
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG).
- Establishes many programs to support the purchase of electric vehicles (EVs) and promote the deployment of associated charging infrastructure, such as the Clean Vehicle Rebate Program.
This bill:
- Requires the CPUC, in consultation with the ARB, to establish the California Clean Miles Standard and Incentive Program (CCMSIP) to increase the number of ZEV vehicle miles traveled (VMT) on behalf of a TNC.
- Establishes that the goal of the CCMSIP is to increase the percentage of passenger miles provided by ZEVs used on behalf of TNCs so that 100% of the passenger miles are provided by ZEVs by December 31, 2028.
- Requires the CPUC to establish quarterly targets for the portion of VMT by ZEVs on behalf of a TNC, and requires that not less than the following percentages of vehicle miles traveled be provided by ZEVs:
- 20% by December 31, 2020.
- 50% by December 31, 2023.
- Requires that 100% of VMT be ZEV for vehicles owned and operated by a TNC beginning in 2030.
COMMENTS
- Author’s Statement. “As more and more Californians rely on TNCs to get around town, it makes sense that these vehicles be green. Electrifying rideshare vehicles cleans the air and protects our climate.”
- What’s a TNC? Similar to taxis, TNCs, such as Lyft and Uber, provide rides for a fee. Unlike taxis, TNCs are regulated by the CPUC, not local governments. TNCs consider their drivers to be independent contractors; they drive with their personal vehicles. Most TNC drivers work part time.
- ZEV Programs. Virtually all ZEVs are powered exclusively by electricity; they have no tailpipe emissions. California has many programs and policies to support ZEVs. 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 the Clean Vehicle Rebate Program, which subsidizes the purchase of EVs, and help bring 250,000 vehicle charging stations and 200 hydrogen fueling stations to California by 2025. Several other programs support the deployment of EV charging infrastructure.
- How Far. This bill is intended to encourage increased use of electric vehicles (EV) by TNCs and their drivers. Progress is measured by the percentage of miles traveled by the vehicles on the TNC platform that are zero emission. It isn’t clear whether this only includes miles for which a passenger is paying (e.g. revenue miles) or total miles traveled by the TNC driver, including when they are seeking a fare. Either way, tracking this metric will require the cooperation of the TNCs, who don’t report this information today.
- Can This Work? There are practical reasons that will limit EV deployment in a TNC setting, such as their relatively high cost, long recharging times, and limited range. EV manufacturers are making progress at overcoming these barriers, but it’s difficult to see enough progress being made for the TNCs to meet the first EV VMT target, which is currently only two and a half years away. In the last hearing on this bill the author committed to extending the time for meeting the 20% and 50% targets. The author may wish to consider extended the 20% and 50% timelines by three years, to 2023 and 2026 respectively, to provide time for the EV industry, both vehicle manufacturers and charging infrastructure companies, to develop new offerings which make EVs a more economic choice for more people.
Another concern is that most TNC drivers are part-time, using the TNC gig as a way to supplement their income. Their TNC car is likely their only car, which is not the ideal target market for EVs. Some may be renters, or living in multi-family dwellings, which limits access to charging stations. Some may be moderate- or lower-income, making it hard to afford the currently more-costly EVs. Some may commute into urban areas to pick up rides, making the limited range of EVs problematic. The practical barriers to EVs for lower-income drivers will hopefully be resolved as California’s supportive EV policies take effect and manufacturers continue improving their EV products. Extending the target dates by three years, as suggested above, will help. But at least in the near term it is likely that requiring EVs may make the TNC gig uneconomic for some drivers.
- An Alternative. There are alternative mechanisms for encouraging EV use by TNC drivers. The CPUC could create an incentive program to pay EV TNC drivers a higher rate to compensate for the additional cost. Creative minds might unearth suitable funding sources. There may be alternative market-based mechanisms, such as allowing TNC customers to request EV rides. Determining the mechanics and details of such appropriate programs will require data, analysis and study. The author may wish to consider having the CPUC, or some other appropriate agency, convene stakeholders to think through and recommend such a program.
- Conforming amendment. The 100% goal applies to miles traveled by vehicles owned or operated by the TNC, not to miles driven by TNC drivers using their own vehicles. This is inconsistent with the goal of the program established in the bill (Section 5450(a)). The author may wish to harmonize those provisions.
- Double Referral. This bill passed the Senate Energy, Utilities and Communications Committee on April 17, 2018 on a 7-3 vote.
Related Legislation:
SB 1275 (De León, Chapter 530, Statutes of 2014) — established the Charge Ahead California Initiative to be administered by the state board. Establishes goals to place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) — supported electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 18, 2018.)
SUPPORT:
CALSTART
Electric Vehicle Charging Association
IBEW Local Union 11
(The Senate Energy, Utilities and Communications Committee lists the following support: American Lung Association in California, Electric Vehicle Charging Association, Marin Clean Energy, Plug In America)
OPPOSITION:
Lyft
(The Senate Energy, Utilities and Communications Committee lists the following opposition: California Labor Federation, California Teamsters, Internet Association, Lyft, Silicon Valley Leadership Group, TechNet)
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 4/24/2018
Author: | Skinner | ||
Version: | 4/19/18 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Randy Chinn | ||
SUBJECT:
DIGEST: This bill requires the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB), to establish minimum vehicle miles traveled by zero-emission vehicles (ZEVs) on behalf of a Transportation Network Company (TNC).
ANALYSIS:
Existing law:
- Authorizes the CPUC to regulate TNCs.
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG).
- Establishes many programs to support the purchase of electric vehicles (EVs) and promote the deployment of associated charging infrastructure, such as the Clean Vehicle Rebate Program.
This bill:
- Requires the CPUC, in consultation with the ARB, to establish the California Clean Miles Standard and Incentive Program (CCMSIP) to increase the number of ZEV vehicle miles traveled (VMT) on behalf of a TNC.
- Establishes that the goal of the CCMSIP is to increase the percentage of passenger miles provided by ZEVs used on behalf of TNCs so that 100% of the passenger miles are provided by ZEVs by December 31, 2028.
- Requires the CPUC to establish quarterly targets for the portion of VMT by ZEVs on behalf of a TNC, and requires that not less than the following percentages of vehicle miles traveled be provided by ZEVs:
- 20% by December 31, 2020.
- 50% by December 31, 2023.
- Requires that 100% of VMT be ZEV for vehicles owned and operated by a TNC beginning in 2030.
COMMENTS
- Author’s Statement. “As more and more Californians rely on TNCs to get around town, it makes sense that these vehicles be green. Electrifying rideshare vehicles cleans the air and protects our climate.”
- What’s a TNC? Similar to taxis, TNCs, such as Lyft and Uber, provide rides for a fee. Unlike taxis, TNCs are regulated by the CPUC, not local governments. TNCs consider their drivers to be independent contractors; they drive with their personal vehicles. Most TNC drivers work part time.
- ZEV Programs. Virtually all ZEVs are powered exclusively by electricity; they have no tailpipe emissions. California has many programs and policies to support ZEVs. 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 the Clean Vehicle Rebate Program, which subsidizes the purchase of EVs, and help bring 250,000 vehicle charging stations and 200 hydrogen fueling stations to California by 2025. Several other programs support the deployment of EV charging infrastructure.
- How Far. This bill is intended to encourage increased use of electric vehicles (EV) by TNCs and their drivers. Progress is measured by the percentage of miles traveled by the vehicles on the TNC platform that are zero emission. It isn’t clear whether this only includes miles for which a passenger is paying (e.g. revenue miles) or total miles traveled by the TNC driver, including when they are seeking a fare. Either way, tracking this metric will require the cooperation of the TNCs, who don’t report this information today.
- Can This Work? There are practical reasons that will limit EV deployment in a TNC setting, such as their relatively high cost, long recharging times, and limited range. EV manufacturers are making progress at overcoming these barriers, but it’s difficult to see enough progress being made for the TNCs to meet the first EV VMT target, which is currently only two and a half years away. In the last hearing on this bill the author committed to extending the time for meeting the 20% and 50% targets. The author may wish to consider extended the 20% and 50% timelines by three years, to 2023 and 2026 respectively, to provide time for the EV industry, both vehicle manufacturers and charging infrastructure companies, to develop new offerings which make EVs a more economic choice for more people.
Another concern is that most TNC drivers are part-time, using the TNC gig as a way to supplement their income. Their TNC car is likely their only car, which is not the ideal target market for EVs. Some may be renters, or living in multi-family dwellings, which limits access to charging stations. Some may be moderate- or lower-income, making it hard to afford the currently more-costly EVs. Some may commute into urban areas to pick up rides, making the limited range of EVs problematic. The practical barriers to EVs for lower-income drivers will hopefully be resolved as California’s supportive EV policies take effect and manufacturers continue improving their EV products. Extending the target dates by three years, as suggested above, will help. But at least in the near term it is likely that requiring EVs may make the TNC gig uneconomic for some drivers.
- An Alternative. There are alternative mechanisms for encouraging EV use by TNC drivers. The CPUC could create an incentive program to pay EV TNC drivers a higher rate to compensate for the additional cost. Creative minds might unearth suitable funding sources. There may be alternative market-based mechanisms, such as allowing TNC customers to request EV rides. Determining the mechanics and details of such appropriate programs will require data, analysis and study. The author may wish to consider having the CPUC, or some other appropriate agency, convene stakeholders to think through and recommend such a program.
- Conforming amendment. The 100% goal applies to miles traveled by vehicles owned or operated by the TNC, not to miles driven by TNC drivers using their own vehicles. This is inconsistent with the goal of the program established in the bill (Section 5450(a)). The author may wish to harmonize those provisions.
- Double Referral. This bill passed the Senate Energy, Utilities and Communications Committee on April 17, 2018 on a 7-3 vote.
Related Legislation:
SB 1275 (De León, Chapter 530, Statutes of 2014) — established the Charge Ahead California Initiative to be administered by the state board. Establishes goals to place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) — supported electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 18, 2018.)
SUPPORT:
CALSTART
Electric Vehicle Charging Association
IBEW Local Union 11
(The Senate Energy, Utilities and Communications Committee lists the following support: American Lung Association in California, Electric Vehicle Charging Association, Marin Clean Energy, Plug In America)
OPPOSITION:
Lyft
(The Senate Energy, Utilities and Communications Committee lists the following support: California Labor Federation, California Teamsters, Internet Association, Lyft, Silicon Valley Leadership Group, TechNet)
-- END --
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2017 - 2018 Regular
Bill No: SB 1014 Hearing Date: 4/17/2018
Author: | Skinner | ||
Version: | 4/9/2018 As Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Nidia Bautista | ||
SUBJECT: Zero-emission vehicles
DIGEST: This bill would require the CPUC, in consultation with the ARB, to establish the CCMSIP for ZEVs used to provide rides by drivers of TNC with the goal of having 100 percent of the passenger miles provided by ZEVs by December 31, 2028.
ANALYSIS:
Existing law:
- Establishes the California Public Utilities Commission (CPUC) and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
- Defines passenger stage corporation as every corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of any passenger stage over any public highway in the state between fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations. (Public Utilities Code §§226 and 1031 et seq.)
- Defines "charter-party carrier of passengers" as every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers. (Public Utilities Code §5351)
- Establishes the Air Quality Improvement Program (AQIP) that is administered by the California Air Resources Board (ARB) for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the Clean Vehicle Rebate Program (CVRP) to promote the production and use of zero-emission vehicles (ZEVs) by providing rebates for the purchase of new zero-emission vehicles (NZEVs). (Health and Safety Code §44274 et seq.)
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG) and requires all monies collected by ARB as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund (GGRF) and to be available upon appropriation. (Health and Safety Code §§38500 et seq. and 39710 et seq.)
This bill:
- Requires the CPUC, in consultation with the ARB, to establish the California Clean Miles Standard and Incentive Program (CCMSIP) for ZEV used by participating drivers to provide transportation services.
- Establishes the goal of the CCMSIP is to increase the percentage of passenger miles provided by ZEVs used on behalf of transportation network companies (TNCs) so that 100 percent of the passenger miles are provided by ZEVs by December 31, 2028.
- Requires the CPUC to establish quarterly targets for the portion of vehicle miles traveled by ZEVs on behalf of a TNC, and requires that not less than the following percentages of vehicle miles traveled by provide by ZEVs:
- 20 percent by December 31, 2020.
- 50 percent by December 31, 2023.
- 100 percent by December 31, 2028.
Background
Enter TNCs. Commonly known as ride-hailing companies, TNCs have grown dramatically in numbers within the short time since they first came on the scene. One TNC reported 120,000 drivers across the state, according to their testimony to this committee[1]. The entrance of TNCs into the transportation for-hire market has disrupted the sector. While most closely related to a taxicab, TNCs prearrange transportation services via an online application on a smartphone or computer. Patrons request a ride to a predetermined location, and the application connects them with a TNC driver. Payment is processed through the application so that no physical financial transaction occurs between the patron and driver and the TNC takes a commission on each trip. TNCs enjoy differing regulations as compared to taxicabs, including the ability to set their own fares, flexibility to increase supply, and, generally less stringent requirements – including those related to vehicle inspections, driver background checks, insurance coverage, driver training and in some cities requirements for zero- or near-zero emission vehicles within their fleets. Whereas taxicabs are regulated by locals, TNCs are regulated at the state level by the CPUC.
Zero-emission vehicles. ZEVs run on electricity stored in batteries instead of fossil fuels. ZEV technologies include hydrogen fuel cell electric vehicles (FCEVs) and plug-in electric vehicles (PEVs), which include both pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
ZEV climate goals. With transportation accounting for about 37 percent of California’s GHG emissions, transforming California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which sets a goal and policies to achieve 1,000,000 ZEVs and NZEVs by 2023. In January of this year, Governor Brown issued another Executive Order which calls for a new target of five million ZEVs on California’s roads by 2030. The Executive Order also proposes $2.5 billion eight-year investment plan to fund infrastructure and vehicle rebates for consumers.
This bill. This bill proposes to establish a mandate on TNCs to achieve a goal of 100 percent passenger vehicle miles traveled by ZEVs by 2028. TNC ride-hailing services are very popular with consumers. The growing number of TNCs on California roads has raised concerns that the vehicles are contributing to congestion on city streets and increasing localized air pollution and GHG emissions. While there is limited data, some studies have found that the adoption and use of ride-hailing services are attracting passengers away from public transit, biking, and walking. This bill attempts to address concerns that the growth of TNCs will increase California’s emissions. As with the renewable portfolio standard (RPS), this bill proposes TNC companies meet escalating specified percentage of ZEVS by their fleet over a specified time horizon.
Driver impacts. By requiring ZEVs to be used by TNCs, the pool of available vehicles and drivers may be reduced. As acknowledged by the companies, most TNC drivers are “everyday people just trying to make ends meet with their personally owned vehicles.” TNC companies have notoriously denied that the drivers are their employees, but rather independent contractors since the TNC is just a platform. Furthermore, the majority of the drivers, more than 50 percent, according to the Silicon Valley Leadership Group, identify as low-income. In fact, a recent Massachusetts Institute of Technology (MIT) study initially found that the majority of TNC drivers are earning below minimum wage. However, the companies took issue with the study and MIT has revised its results to $8-10 per hour. Nonetheless, TNC drivers generally seem to have limited income and ability to finance a new vehicle, even with state incentives. Moreover, turnover of drivers seems to be particularly common with the TNC services. Therefore, TNC driver today may not be one tomorrow. Additionally, the battery range and charging infrastructure limitations for ZEVs may also further reduce the available TNC vehicles and drivers, this may be particularly acute in suburban and rural areas. As this bill moves forward, the author may wish to consider how to balance the desire for ZEVs on California roads and the unintended impacts to potential TNC drivers and the availability of the service.
Another approach. As the author notes, there are some efforts in some cities to help clean up the TNC vehicle fleet. One of particular note is an effort in London whereby Uber is assessing a fee on all rides to fund incentives for clean vehicles for drivers in London. The approach there seems to be voluntary by the company, and one that could be replicated in California.
Amendments needed. In recognition of the unintended effects on drivers, the author has requested, and the committee may consider, to amend this bill to strike the provision requiring 100 percent ZEVs by 2028 and instead require that 100 percent of any vehicles purchased, leased, or owned by a TNC or contracted for by a TNC (as may be the case with autonomous vehicles) be ZEV.
Triple referral. Should this bill be approved by this committee, it will be re-referred to the Senate Committees on Environmental Quality and Transportation and Housing for their consideration.
Prior/Related Legislation
SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to be administered by the state board, in consultation with the CEC, air pollution control and air quality management districts, and the public. The bill states that the goals of the initiative are to, among other things, place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) among the many provisions of the bill included provisions related to supporting electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT:
American Lung Association in California
Electric Vehicle Charging Association
Marin Clean Energy
Plug In America
OPPOSITION:
California Labor Federation
California Teamsters
Internet Association
Lyft
Silicon Valley Leadership Group
TechNet
ARGUMENTS IN SUPPORT: According to the author:
“TNCs are responsible for more and more of the vehicle miles travelled in California communities, driving approximately 570,000 vehicle miles per weekday in San Francisco. As California continues to create policies and regulations to clean up our dirty air, the state must ensure that TNCs are driving cleaner miles on our roads.”
ARGUMENTS IN OPPOSITION: The Silicon Valley Leadership Group opposes the mandates proposed in this bill and state they generally prefer the framework of incentives for achieving ZEV miles driven goals due to several reasons, including that the TNCs are not made up of professional drivers who are going out to buy cars, more than 50 percent of the TNC drivers in California identify as low-income, and others.
-- END --
Uber testimony. Joint Hearing of the Senate Energy, Utilities and Communications and Transportation and Housing Committees. Leveling the Playing Field: Ride-hailing disruption. February 2016. ↑
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2017 - 2018 Regular
Bill No: SB 1014 Hearing Date: 4/3/2018
Author: | Skinner | ||
Version: | 3/22/2018 As Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Nidia Bautista | ||
SUBJECT: Zero-emission vehicles
DIGEST: This bill would require the California Public Utilities Commission (CPUC), in consultation with the California Air Resources Board (ARB), to establish the California Clean Miles Standard and Incentive Program (CCMSIP) for zero-emission vehicles (ZEVs) used to provide rides by drivers of transportation network companies (TNC) with the goal of having 100 percent of the passenger miles provided by zero-emission vehicles by December 31, 2028. This bill would also require the ARB to reserve up to $300 million from the Clean Vehicle Rebate Project (CVRP) for rebates for ZEVs to applicants who certify they will use the vehicle to drive for a TNC.
ANALYSIS:
Existing law:
- Establishes the CPUC and empowers it to regulate privately owned public utilities and common carriers in California. (Article XII of the California Constitution; Public Utilities Code §301 et seq.)
- Defines passenger stage corporation as every corporation or person engaged as a common carrier, for compensation, in the ownership, control, operation, or management of any passenger stage over any public highway in the state between fixed termini or over a regular route, not including those exclusively operating within a local jurisdiction or school buses. Establishes the CPUC’s authority to regulate, require license or permit to operate, require vehicles used are in safe operating condition, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations. (Public Utilities Code §§226 and 1031 et seq.)
- Defines "charter-party carrier of passengers" as every person engaged in the transportation of persons by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state and includes any person, corporation, or other entity engaged in the provision of a hired driver service when a rented motor vehicle is being operated by a hired driver. Establishes the CPUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, require vehicles are in safe operating condition, take appropriate enforcement action and other provisions related to charter-party carrier of passengers. (Public Utilities Code §5351)
- Establishes the Air Quality Improvement Program (AQIP) that is administered by the ARB for the purposes of funding projects related to the reduction of criteria air pollutants and improvement of air quality and establishes the CVRP to promote the production and use of ZEVs by providing rebates for the purchase of new zero-emission vehicles (NZEVs). (Health and Safety Code §44274 et seq.)
- Designates ARB as the state agency charged with monitoring and regulating sources of emissions of greenhouse gas (GHG) and requires all monies collected by ARB as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund (GGRF) and to be available upon appropriation. (Health and Safety Code §§38500 et seq. and 39710 et seq.)
This bill:
- Requires the CPUC, in consultation with the ARB, to establish the CCMSIP for ZEV used by participating drivers to provide transportation services.
- Establishes the goal of the CCMSIP is to increase the percentage of passenger miles provided by ZEVs used on behalf of TNCs so that 100 percent of the passenger miles are provided by ZEVs by December 31, 2028.
- Requires the CPUC, in consultation with the ARB, to establish quarterly targets for the portion of vehicle miles traveled by ZEVs on behalf of a TNC, and requires that not less than the following percentages of vehicle miles traveled by provide by ZEVs:
- 20 percent by December 31, 2020.
- 50 percent by December 31, 2023.
- 100 percent by December 31, 2028.
- Requires the CPUC, in consultation with the ARB, to establish a mechanism for the ARB to verify whether a person applying for incentives from the CVRP is a driver for a TNC.
- Requires the ARB to reserve up to $300 million from future AQIP CVRP for rebates or other incentives for applicants purchasing ZEVs who certify as to a vehicle both of the following:
- The vehicle will be used to provide prearranged transportation services using a TNC’s online-enabled application or platform to connect with passengers.
- The vehicle will be used to replace a vehicle that is powered by burning fossil fuels for those purposes.
- Defines “zero-emission vehicle” to mean a personal vehicle that produces no emissions of criteria pollutants, toxic air contaminants, and GHGs, as determined by the ARB.
- Defines “future appropriation for the CVRP” to mean an appropriation to the ARB to be used for CVRP that is made subsequent to the 140 million dollars appropriated for that program to the ARB by the Budget Act of 2017.
Background
Enter TNCs. Commonly known as ride-hailing companies, TNCs have grown dramatically within the short period of time since when they first hit the road. One TNC reported 120,000 drivers across the state, according to their testimony to this committee[1]. The entrance of TNCs into the transportation for-hire market has disrupted the sector. While most closely related to a taxicab, TNCs prearrange transportation services via an online application on a smartphone or computer. Patrons request a ride to a predetermined location, and the application connects them with a TNC driver. Payment is processed through the application so that no physical financial transaction occurs between the patron and driver and the TNC takes a commission on each trip. TNCs enjoy differing regulations as compared to taxicabs, including the ability to set their own fares, flexibility to increase supply, and, generally less stringent requirements – including those related to vehicle inspections, driver background checks, insurance coverage, driver training and in some cities requirements for zero- or near-zero emission vehicles within their fleets. Whereas taxicabs are regulated by locals, TNCs are regulated at the state level by the CPUC.
Zero-Emission Vehicles. ZEVs run on electricity stored in batteries instead of fossil fuels. ZEV technologies include hydrogen fuel cell electric vehicles (FCEVs) and plug-in electric vehicles (PEVs), which include both pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
ZEV Climate Goals. With transportation accounting for about 37 percent of California’s GHG emissions, transforming California’s transportation system away from gasoline to ZEVs is a fundamental part of the state’s efforts to reduce GHG emissions and help meet the state’s goals to reduce GHG emissions 40 percent below 1990 levels by 2030. In 2012, Governor Brown issued Executive Order B-16-12 directing state government to help accelerate the market for ZEVs in California. This Executive Order calls for 1.5 million ZEVs in California by 2025 and establishes several milestones on the pathway toward this target. The Administration’s 2013 ZEV Action Plan then identified specific actions state government would take to meet the milestones of the Executive Order. The Legislature has also supported these efforts with passage of the California Charge Ahead Initiative via SB 1275 (De León, Chapter 530, Statutes of 2014) which sets a goal and policies to achieve 1,000,000 ZEVs and NZEVs by 2023. In January of this year, Governor Brown issued another Executive Order which calls for a new target of five million ZEVs on California’s roads by 2030. The executive order also proposes $2.5 billion eight-year investment plan to fund infrastructure and vehicle rebates for consumers.
Clean Vehicle Rebate Project (CVRP). California currently provides financial incentives to support the widespread adoption of ZEVs, along with those provided by the federal government, and, in some cases, by local air districts. Additionally, the state provides non-monetary incentives, such as carpool lane access. AB 118 (Núñez, Chapter 750, Statutes of 2007), established the Alternative and Renewable Fuels and Vehicle Technology (ARFVT) program, the Enhanced Fleet Modernization Program (EFMP), and the AQIP to promote vehicle and fuel technology to reduce air pollution and GHG emissions. Pursuant to its authority under AQIP, ARB developed CVRP, which is intended to encourage and accelerate the purchase and use of ZEVs and NZEVs to help improve air quality and reduce GHG emissions. CVRP is administered by ARB’s contractor, the California Center for Sustainable Energy. Since CVRP was launched in 2010, over 227,000 rebates have been issued at a cost of just over $500 million. CVRP is oversubscribed with demand outpacing funding nearly every year. When the funding is exhausted in a given year, applicants are "waitlisted" and are issued rebates in the order they applied when monies are allocated in the next funding cycle.
This bill. This bill proposes to establish a mandate on TNCs to achieve a goal of 100 percent passenger vehicle miles traveled by ZEVs by 2028. TNC ride-hailing services are proving to be very popular with consumers. However, the increasing number of TNCs on California’s roads have raised concerns that the vehicles are contributing to congestion on city streets, increasing localized air pollution and GHG emissions. While there is limited usable data, some studies are finding that the adoption and use of these ride-hailing services are attracting passengers away from public transit, biking, and walking. This bill attempts to address concerns that the growth of TNCs will increase California’s emissions. As with the renewable portfolio standard (RPS), this bill proposes TNC companies meet escalating specified percentage of ZEVS by their fleet over a specified time horizon. The dates proposed do not seem to be based on any particular rationale, beyond achieving the 100 percent goal by 2028. The author may wish to adjust these dates and tether them to related state policies, such as California’s overall GHG emission reductions goals.
This bill also proposes to provide $300 million for TNCs from the CVRP. While well-intentioned, the allocation of CVRP funds, especially $300 million raises significant concerns. In the first place, $300 million from CVRP represents 60 percent of the funds that have been used since CVRP was started in 2010 – which would be a disproportionate share of California’s vehicles fleet. Additionally, this bill requires TNC drivers to demonstrate they will be TNC drivers in order to access CVRP funds. However, today any California resident can access CVRP funds for the purchase of a qualifying clean vehicle. It would seem unnecessary to provide such a generous allocation for TNCs, when the program is already oversubscribed and all California residents can apply for the rebates. Furthermore, this bill’s requirement that the driver certify that it is a TNC driver and will continue to be onerous requirement on these drivers. As acknowledged by the companies, most TNC drivers are “everyday people just trying to make ends meet with their personally owned vehicles.” TNC companies have notoriously denied that the drivers are their employees, but rather independent contractors since the TNC is a just a platform. Furthermore, the majority of the drivers, more than 50 percent, according to the Silicon Valley Leadership Group, identify as low-income. In fact, a recent Massachusetts Institute of Technology study initially found that the majority of TNC drivers are earning below minimum wage. However, the companies took issue with the study and MIT is revising its study. Nonetheless, TNC drivers generally seem to have limited income and ability to finance a new vehicle, even with state incentives. Moreover, turnover of drivers seems to be particularly common with the TNC services. Therefore, TNC driver today may not be one tomorrow.
Another approach. As the author notes, there are some efforts in some cities to help clean up the TNC vehicle fleet. One of particular note is an effort in London whereby Uber is assessing a fee on all rides to fund incentives for clean vehicles for drivers in London. The approach there seems to be voluntary by the company, and one that could be replicated in California. In consideration of the issues noted above, the author and committee may wish to strike out the portions of this bill related to CVRP and the $300 million funding allocation.
Triple Referral. Should this bill be approved by this committee, it will be re-referred to the Senate Committees on Environmental Quality and Transportation and Housing for their consideration.
Prior/Related Legislation
SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to be administered by the state board, in consultation with the CEC, air pollution control and air quality management districts, and the public. The bill states that the goals of the initiative are to, among other things, place in service at least 1,000,000 ZEVs and NZEVs by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to ZEVs and NZEVs.
SB 350 (De León, Chapter 547, Statutes of 2015) among the many provisions of the bill included provisions related to supporting electrification of the transportation system and established requirements of the CPUC in adopting electric vehicle charging proposals from the electric utilities.
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 EFMP, AQIP, ARFVTP, and specified other ARB programs that support the production, distribution, and sale of alternative fuels and vehicle technologies, as well as air emissions reduction efforts. It also suspends until 2024 ARB’s authority to require through regulation any fuel supplier to provide hydrogen fueling stations and instead allocates up to $220 million of these fee funds to construct and operate retail hydrogen fueling stations. AB 8 also extended the authority of local air districts to impose vehicle registration surcharges in their areas to achieve air emission reductions from vehicles and off-road engines.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT:
Office of Ratepayer Advocates
Plug In America
OPPOSITION:
Amalgamated Transit Union
California Labor Federation
California New Car Dealers Association
California Teamsters
Internet Association
Silicon Valley Leadership Group
TechNet
ARGUMENTS IN SUPPORT: According to the author:
“TNCs are responsible for more and more of the vehicle miles travelled in California communities, driving approximately 570,000 vehicle miles per weekday in San Francisco. As California continues to create policies and regulations to clean up our dirty air, the state must ensure that TNCs are driving cleaner miles on our roads.”
ARGUMENTS IN OPPOSITION: The Silicon Valley Leadership Group opposes the mandates proposed in the bill and state they generally prefer the framework of incentives for achieving ZEV miles driven goals due to several reasons, including that the TNCs are not made up of professional drivers who are going out to buy cars, more than 50 percent of the TNC drivers in California identify as low-income, and others.
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Uber testimony. Joint Hearing of the Senate Energy, Utilities and Communications and Transportation and Housing Committees. Leveling the Playing Field: Ride-hailing disruption. February 2016. ↑
Discussed in Hearing
1MIN
Senate Floor
2MIN
Assembly Floor
1H
Assembly Standing Committee on Appropriations
12MIN
Senate Floor
22MIN
Senate Standing Committee on Transportation and Housing
21MIN
Senate Standing Committee on Energy, Utilities and Communications
Bill Author
Bill Co-Author(s):