SB 1403: California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-09-13
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects.
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. The Charge Ahead California Initiative requires the state board, in consultation with the State Energy Resources Conservation and Development Commission, to include a funding plan for the Air Quality Improvement Program for a fiscal year and a forecast of estimated funding needs for the subsequent 2 fiscal years commensurate with meeting certain goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023.
This bill, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program, would require the state board to include a 3-year investment strategy for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting certain goals. The bill would require the funding plan to include information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding.
(2)This bill would incorporate additional changes to Section 39719.2 of the Health and Safety Code proposed by AB 2145 to be operative only if this bill and AB 2145 are enacted and this bill is enacted last.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects.
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. The Charge Ahead California Initiative requires the state board, in consultation with the State Energy Resources Conservation and Development Commission, to include a funding plan for the Air Quality Improvement Program for a fiscal year and a forecast of estimated funding needs for the subsequent 2 fiscal years commensurate with meeting certain goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023.
This bill, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program, would require the state board to include a 3-year investment strategy for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting certain goals. The bill would require the funding plan to include information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding.
(2)This bill would incorporate additional changes to Section 39719.2 of the Health and Safety Code proposed by AB 2145 to be operative only if this bill and AB 2145 are enacted and this bill is enacted last.
The
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects.
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. The Charge Ahead California Initiative requires the state board, in consultation with the State Energy Resources Conservation and Development Commission, to include a funding plan for the Air Quality Improvement Program for a fiscal year and a forecast of estimated funding needs for the subsequent 2 fiscal years commensurate with meeting certain goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023.
This bill, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program, would require the state board to include a 3-year investment strategy for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting certain goals. The bill would require the funding plan to include information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding.
(2)This bill would incorporate additional changes to Section 39719.2 of the Health and Safety Code proposed by AB 2145 to be operative only if this bill and AB 2145 are enacted and this bill is enacted last.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects. Existing law requires the state board, when funding a specified class of projects, to allocate, until January 1, 2020, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board state board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. The Charge Ahead California Initiative requires the state board, in consultation with the State Energy Resources Conservation and Development Commission Commission, to include a funding plan for the Air Quality Improvement Program for a fiscal year and a forecast of estimated funding needs for the subsequent 2 fiscal years commensurate with meeting certain goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023.
This bill instead would require the state board, when funding a specified class of projects, to allocate, until December 31, 2030, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology. The bill, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program, would require the state board to include a three-year 3-year investment strategy for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting certain goals. The bill would require the funding plan to include information related to milestones achieved by the states school bus schoolbus incentive programs and the projected need for funding.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects. Existing law requires the state board, when funding a specified class of projects, to allocate, until January 1, 2020, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. The Charge Ahead California Initiative requires the state board, in consultation with the State Energy Resources Conservation and Development Commission to include a funding plan for the Air Quality Improvement Program for a fiscal year and a forecast of estimated funding needs for the subsequent 2 fiscal years commensurate with meeting certain goals, including the goal of placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023.
This bill instead would require the state board, when funding a specified class of projects, to allocate, until December 31, 2030, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology. The bill, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program, would require the state board to include a three-year investment strategy for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting certain goals. The bill would require the funding plan to include information related to milestones achieved by the states school bus incentive programs and the projected need for funding.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, including, among others, projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions. projects. Existing law requires the state board, when funding a specified class of projects, to allocate, until January 1, 2020, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
This bill instead would require the state board, when funding a specified class of projects, to allocate, until December 31, 2030, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology. The bill would additionally include demonstration projects for integrated storage and charging management and efficient zero- and near-zero emission fueling and charging strategies as projects eligible for funding under the program.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified. Existing law specifies projects eligible for funding under the program including those including, among others, projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including advanced intelligent transportation, autonomous vehicles, and other freight information and operations technologies. reductions. Existing law requires the state board, when funding a specified class of projects, to allocate, until January 1, 2020, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
This bill instead would require the state board, when funding a specified class of projects, to allocate, until December 31, 2030, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology. The bill would additionally include demonstration projects for integrated storage and charging management and efficient zero- and near-zero emission fueling and charging strategies as projects eligible for funding under the program.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.
The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified. Existing law specifies projects eligible for funding under the program including those that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including advanced intelligent transportation, autonomous vehicles, and other freight information and operations technologies.
This bill would additionally include demonstration projects for integrated storage and charging management and efficient zero- and near-zero emission fueling and charging strategies as projects eligible for funding under the program.
Existing law establishes the Office of Health Information Integrity within the California Health and Human Services Agency to ensure the enforcement of state law mandating confidentiality of medical information and to impose administrative fines for the unauthorized use of medical information. Existing law authorizes the director of the office to adopt regulations to ensure all approved health information exchange service participants and demonstration project participants follow rules, and work within parameters, as defined by the office, that are consistent for the exchange of information.Existing law sets forth procedures relating to the adoption of those regulations.This bill would make a nonsubstantive change in those provisions.Existing law establishes the Office of Health Information Integrity within the California Health and Human Services Agency to ensure the enforcement of state law mandating confidentiality of medical information and to impose administrative fines for the unauthorized use of medical information. Existing law authorizes the director of the office to adopt regulations to ensure all approved health information exchange service participants and demonstration project participants follow rules, and work within parameters, as defined by the office, that are consistent for the exchange of information.
Existing law sets forth procedures relating to the adoption of those regulations.
This bill would make a nonsubstantive change in those provisions.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 1.5.Section 39719.2 of the Health and Safety Code is amended to read:39719.2.(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, grid integration and integrated storage solutions, charging management demonstration and analytics, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)(A)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(B)The State Energy Resources Conservation and Development Commission shall advise the state board on how to allocate money for vehicle charging infrastructure consistent with the commissions investment plan strategies on charging infrastructure.
(3)Promote projects that assist the state in reaching its climate goals beyond 2030, consistent with Section 38566.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713 or communities with a community emissions reduction program implemented pursuant to Section 44391.2.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 39719.2 of the Health and Safety Code proposed by both this bill and Assembly Bill 2145. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 39719.2 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 2145, in which case Section 1 of this bill shall not become operative.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 1.5.Section 39719.2 of the Health and Safety Code is amended to read:39719.2.(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, grid integration and integrated storage solutions, charging management demonstration and analytics, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)(A)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(B)The State Energy Resources Conservation and Development Commission shall advise the state board on how to allocate money for vehicle charging infrastructure consistent with the commissions investment plan strategies on charging infrastructure.
(3)Promote projects that assist the state in reaching its climate goals beyond 2030, consistent with Section 38566.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713 or communities with a community emissions reduction program implemented pursuant to Section 44391.2.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 39719.2 of the Health and Safety Code proposed by both this bill and Assembly Bill 2145. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 39719.2 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 2145, in which case Section 1 of this bill shall not become operative.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 1.5.Section 39719.2 of the Health and Safety Code is amended to read:39719.2.(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement goods movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, andgrid integration and integrated storage solutions, charging management demonstration and analytics, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)(A)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(B)The State Energy Resources Conservation and Development Commission shall advise the state board on how to allocate money for vehicle charging infrastructure consistent with the commissions investment plan strategies on charging infrastructure.
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, 2030, consistent with Sections 38550 and 38551. Section 38566.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713. 39713 or communities with a community emissions reduction program implemented pursuant to Section 44391.2.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In the implementation of implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states schoolbus incentive programs and the projected need for funding taking into consideration the states schoolbus inventory, turnover, and useful life.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 39719.2 of the Health and Safety Code proposed by both this bill and Assembly Bill 2145. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 39719.2 of the Health and Safety Code, and (3) this bill is enacted after Assembly Bill 2145, in which case Section 1 of this bill shall not become operative.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2030, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding need needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states school bus schoolbus incentive programs and the projected need for funding taking into consideration the states school bus schoolbus inventory, turnover, and useful life.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2030, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(h)(1)In addition to the requirements of Section 44258.4, commencing with the funding plan for the 201920 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and forecast of estimated funding need for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and investment needed.
(C)Provide a description of the state boards portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the states school bus incentive programs and the projected need for funding taking into consideration the states school bus inventory, turnover, and useful life.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2030, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, demonstration projects for integrated storage and charging management, efficient zero- and near-zero fueling and charging strategies, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2020, 2030, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, demonstration projects for integrated storage and charging management, efficient zero- and near-zero fueling and charging strategies, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In the implementation of implementing this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods-movement corridors. Until December 31, 2020, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, demonstration projects for integrated storage and charging management, efficient zero- and near-zero fueling and charging strategies, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide significant greenhouse gas reduction and air quality benefits.
(2)Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3)Promote projects that assist the state in reaching its climate goals beyond 2020, consistent with Sections 38550 and 38551.
(4)Promote investments in medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713.
(2)The ability to leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In the implementation of this section, the state board, in consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may utilize existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, zero- and near-zero-emission means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. Zero- and near-zero-emission may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel technologies for trucks and off-road equipment.
SECTION 1.Section 130278 of the Health and Safety Code is amended to read:130278.Before adopting regulations pursuant to Section 130277, the office shall adopt the following standards:(a)At least 45 days prior to adoption, the office shall post a proposed regulation on its Internet Web site. Public comment shall be accepted by the office for at least 30 days after the proposed regulation is posted. If a member of the public requests a public hearing during the 30-day review period, the hearing shall be held prior to adoption of the regulation. The process described in this subdivision shall apply to the adoption of new regulations and to changes to existing regulations.(b)Adoption of, and changes to, regulations adopted pursuant to this division shall not be subject to the rulemaking requirements of Section 11343.4 and Article 5 (commencing with Section 11346) and Article 6 (commencing with Section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code.(c)The director shall file any regulation adopted pursuant to Section 130277 with the Office of Administrative Law for filing with the Secretary of State and publication in the California Code of Regulations. Any regulation filed with the Office of Administrative Law pursuant to this subdivision shall include a citation to this section and any other applicable state or federal laws as providing authority for the adoption of the regulation.(1)Any regulation adopted pursuant to Section 130277 shall become effective on the date it is filed with the Secretary of State unless the director prescribes a later date in the regulation or in a written instrument filed with the regulation.(2)Any regulation adopted pursuant to Section 130277 shall expire on the date that this division is repealed.Before adopting regulations pursuant to Section 130277, the office shall adopt the following standards:
(a)At least 45 days prior to adoption, the office shall post a proposed regulation on its Internet Web site. Public comment shall be accepted by the office for at least 30 days after the proposed regulation is posted. If a member of the public requests a public hearing during the 30-day review period, the hearing shall be held prior to adoption of the regulation. The process described in this subdivision shall apply to the adoption of new regulations and to changes to existing regulations.
(b)Adoption of, and changes to, regulations adopted pursuant to this division shall not be subject to the rulemaking requirements of Section 11343.4 and Article 5 (commencing with Section 11346) and Article 6 (commencing with Section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code.
(c)The director shall file any regulation adopted pursuant to Section 130277 with the Office of Administrative Law for filing with the Secretary of State and publication in the California Code of Regulations. Any regulation filed with the Office of Administrative Law pursuant to this subdivision shall include a citation to this section and any other applicable state or federal laws as providing authority for the adoption of the regulation.
(1)Any regulation adopted pursuant to Section 130277 shall become effective on the date it is filed with the Secretary of State unless the director prescribes a later date in the regulation or in a written instrument filed with the regulation.
(2)Any regulation adopted pursuant to Section 130277 shall expire on the date that this division is repealed.
|
Date
|
Status
|
|---|---|
| Sep 13, 2018 | Chaptered by Secretary of State. Chapter 370, Statutes of 2018. |
| Sep 13, 2018 | Approved by the Governor. |
| Sep 6, 2018 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 30, 2018 | Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 29, 2018 | Ordered to special consent calendar. |
| Aug 28, 2018 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 28, 2018 | Read third time. Passed. Ordered to the Senate. |
| Aug 23, 2018 | Read third time and amended. |
| Aug 20, 2018 | Read second time. Ordered to third reading. |
| Aug 16, 2018 | From committee: Do pass. (Ayes 17. Noes 0.) (August 16). |
| Aug 16, 2018 | Joint Rule 62(a) suspended. |
| Aug 15, 2018 | August 15 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. |
| Jun 26, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (June 25). Re-referred to Com. on APPR. |
| Jun 19, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jun 19, 2018 | From committee: Do pass and re-refer to Com. on NAT. RES. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (June 18). Re-referred to Com. on NAT. RES. |
| Jun 11, 2018 | Referred to Coms. on TRANS. and NAT. RES. |
| May 31, 2018 | In Assembly. Read first time. Held at Desk. |
| May 30, 2018 | Read third time. Passed. (Ayes 36. Noes 0.) Ordered to the Assembly. |
| May 29, 2018 | Read second time. Ordered to third reading. |
| May 25, 2018 | From committee: Do pass as amended. (Ayes 7. Noes 0.) (May 25). |
| May 18, 2018 | Set for hearing May 25. |
| Apr 30, 2018 | April 30 hearing: Placed on APPR. suspense file. |
| Apr 20, 2018 | Set for hearing April 30. |
| Apr 18, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 18). Re-referred to Com. on APPR. |
| Apr 11, 2018 | Read second time and amended. Re-referred to Com. on EQ. |
| Apr 10, 2018 | From committee: Do pass as amended and re-refer to Com. on EQ. with recommendation: To consent calendar. (Ayes 13. Noes 0.) (April 10). |
| Apr 6, 2018 | Set for hearing April 18 in EQ. pending receipt. |
| Apr 6, 2018 | Set for hearing April 10. |
| Apr 4, 2018 | Re-referred to Coms. on T. & H. and EQ. |
| Mar 22, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 8, 2018 | Referred to Com. on RLS. |
| Feb 20, 2018 | From printer. May be acted upon on or after March 22. |
| Feb 16, 2018 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 28, 2018 | SB 1403 Lara Senate Third Reading By REYES | Assembly Floor |
Passed |
|
| Aug 16, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2018 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Natural Resources |
Passed |
|
| Jun 18, 2018 | Do pass and be re-referred to the Committee on [Natural Resources] with recommendation: To Consent Calendar | Assembly Standing Committee on Transportation |
Passed |
|
| May 30, 2018 | Senate 3rd Reading SB1403 Lara | Senate Floor |
Passed |
|
| May 25, 2018 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 30, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
|
| Apr 10, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Environmental Quality] with the recommendation: To Consent Calendar | Senate Standing Committee on Transportation and Housing |
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.
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 1403
: 8/23/18
SENATE TRANS. & HOUSING COMMITTEE: 13-0, 4/10/18
AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Morrell, Roth, Skinner, Vidak, Wieckowski, Wiener
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 4/18/18
AYES: Wieckowski, Stone, Gaines, Hill, Lara, Skinner, Stern
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SENATE FLOOR: 36-0, 5/30/18
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Cannella, De León, Skinner
ASSEMBLY FLOOR: 79-0, 8/28/18 - See last page for vote
DIGEST:
This bill requires the state Air Resources Board (ARB) to adopt a three-year investment strategy for zero- and near zero-emission heavy-duty vehicles, as specified.
Assembly Amendments require ARB to adopt an investment strategy for zero- and near zero-emission heavy-duty vehicles, as specified, and address chaptering issues.
Existing law:
- Requires ARB, pursuant to AB 32 (Núñez and Pavley, Chapter 488, Statutes of 2006), to develop a plan to reduce emissions to 1990 levels by 2020. It also requires ARB to ensure programs that reduce greenhouse gas (GHG) emissions are targeted, to the extent feasible, to the most disadvantaged communities in the state. Pursuant to AB 32, ARB adopted a cap-and-trade program that caps allowable statewide GHG emissions and provides for the auctioning of emission credits, the proceeds of which are deposited quarterly into the Greenhouse Gas Reduction Fund (GGRF) for appropriation by the Legislature.
- Sets a target of reducing statewide GHG emissions, pursuant to Executive Order B-30-2015 (issued by the Governor in 2015), to 80% below 1990 levels by 2050, and an interim statewide GHG emissions reduction target of 40% below 1990 levels by 2030. SB 32 (Pavley, Chapter 249, Statutes of 2016) codified the 2030 GHG emissions reduction target in Executive Order B-30-2015.
- Makes numerous and substantive changes to AB 32, pursuant to AB 398 (E. Garcia, Chapter 135, Statutes of 2017), including a provision specifically authorizing the cap-and-trade program until December 31, 2030.
- Establishes the Charge Ahead California Initiative, administered by ARB, which among other things, includes the goal of placing at least one million zero- and near zero-emission light duty vehicles into service by January 1, 2023, establishing a self-sustaining market and increasing access to these vehicles for disadvantaged, low-income, and moderate-income communities and consumers. Requires ARB to develop a three-year funding plan to meet the goals of Charge Ahead.
- Establishes, pursuant to SB 1204 (Lara, Chapter 524, Statutes of 2014), a program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. The Clean Truck Program is funded with GGRF monies as part of the umbrella of Low Carbon Transportation programs under ARB. At least 20% of the funding for the Clean Truck Program must go to early commercial development of existing zero- and near-zero-emission heavy-duty truck technology.
This bill:
- Requires ARB to adopt a three-year investment strategy zero- and near zero-emission heavy-duty vehicles and equipment, as follows:
- Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
- Provide an assessment of available funding and the investment needed.
- Provide a description of ARB’s portfolio of investments.
- Requires ARB, in consultation with the California Energy Commission, to include in the investment strategy information related to the milestones achieved by the state’s schoolbus incentive programs and the projected need for funding, taking into consideration the state’s schoolbus inventory, turnover, and useful life.
Background
The intent of SB 1204 was to establish a single, overarching program to ensure that the state is providing sufficient incentives for development and deployment of clean heavy-duty vehicles. The Clean Truck Program complements other heavy-duty vehicle programs; for example, while the Clean Truck Program focuses on development and deployment of clean truck technology, the Hybrid and Zero Emission Truck and Bus Voucher Incentive Project, also funded by the GGRF, provides vouchers to reduce the cost of purchasing a hybrid or zero-emission truck.
ARB and the California Energy Commission administer a number of programs aiming to clean up and replace older, high-emitting school buses. For example, ARB administers the Lower-Emission School Bus Program, which provides grant funding for new, safer school buses and for air pollution control equipment (i.e., retrofit devices) for buses that are already on the road. The Energy Commission’s School Bus Replacement Program funds retrofit and replacement of old diesel school buses in disadvantaged and low-income communities.
Comments
- Purpose. The author states that while the state has made much progress to clean up its heavy-duty trucks and buses, heavy-duty technologies often lag behind that of light-duty cars. Several recent projects showcase the potential for improvements in the heavy duty sector, including hydrogen fueling demonstration projects at the Port of Long Beach, near-zero truck adoption within the freight sector, and the establishment of two new electric truck models in the marketplace. For California’s annual investments to have the most impact, they must be part of the broader investment strategy. This bill adds important planning elements to the ongoing three-year investment strategy plans developed by ARB to facilitate investments in zero- and near zero-emission heavy-duty vehicles and equipment. In particular, inclusion of school bus date can help inform the many programs that invest in lower-emission school buses throughout the state.
- Clean Truck Program. The Clean Truck Program officially commenced on July 1, 2015. ARB released $80 million in competitive solicitations in 2015 and 2016; these solicitations were significantly oversubscribed, with funding requests totaling $290 million. SB 1204 also provides funding for Advanced Technology Demonstration Projects (ATDP) to help support technologies and vehicles that are on the cusp of commercialization. In 2016-17, ARB allocated $34 million for demonstration projects and released two competitive solicitations for both on-road and off-road demonstration projects. Again, the solicitations were heavily oversubscribed, with funding requests totaling nearly $90 million. In 2017-18, ARB allocated $190 million for ATDP, of which $150 million was reserved for Zero- and Near-Zero-Emission Freight Facilities (including warehouses) and $40 million for the Zero-Emission Off-Road Freight Voucher Incentive Project.
- Amendments. When this bill passed off the Senate Floor earlier this year, it extended the sunset on the set-aside within the Clean Truck Program. It was amended in the Assembly to instead require ARB to adopt an overall, three-year investment strategy for zero- and near zero-emission heavy-duty vehicles, similar to the three-year funding plan it is already required to adopt for light-duty vehicles.
Related/Prior Legislation
AB 1073 (E. Garcia, Chapter 632, Statutes of 2017) extended the sunset on the set-aside within the Clean Truck Program for early commercial development of existing zero- and near-zero-emission heavy-duty trucks, from January 1, 2018, to December 31, 2020.
AB 2415 (E. Garcia, 2016) would have increased the set-aside within the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. The bill was held on suspense in the Assembly Appropriations Committee.
AB 857 (Perea, 2015) would have increased the set-aside in the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. The bill was held on suspense in the Assembly Appropriations Committee and subsequently amended to address a different topic.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee:
- Costs of about $345,000 (special funds) for ARB to hire two positions to complete the required reporting workload.
None received
OPPOSITION: (Verified 8/27/18)
None received
ASSEMBLY FLOOR: 79-0, 8/28/18
AYES: Acosta, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rivas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Aguiar-Curry
8/28/18 21:27:59
SENATE THIRD READING
STR Bill Id:SB 1403
Author:(Lara)
As Amended Ver:August 23, 2018
Majority vote
SENATE VOTE: 36-0
Committee | Votes | Ayes | Noes |
Transportation | 12-0 | Frazier, Fong, Baker, Berman, Chu, Daly, Friedman, Gipson, Harper, Mathis, Medina, Nazarian |
|
Natural Resources | 10-0 | Muratsuchi, Acosta, Chau, Eggman, Flora, Limón, McCarty, Melendez, Mark Stone, Reyes |
|
Appropriations | 17-0 | Gonzalez Fletcher, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Nazarian, Obernolte, Quirk, Reyes |
|
SUMMARY: Requires the Air Resources Board (ARB) to adopt a three-year investment strategy for zero- (ZEV) and near-zero-emission (NZEV) heavy-duty vehicles and equipment to correspond to its investment strategy for light-duty vehicles, and adds provisions from AB 2145 (Reyes) to avoid chaptering out conflicts.
EXISTING LAW:
- Designates the Air Resources Board (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), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020, adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions and authorizes ARB to use market-based compliance mechanisms, to comply with GHG reduction regulations.
- Requires ARB to ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030.
- Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the GGRF and be available for appropriation by the Legislature.
- Establishes the Air Quality Improvement Program (AQIP), administered by ARB, to fund projects that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
- Establishes the Clean Truck Program, administered by ARB in conjunction with California Energy Commission (CEC), to use GGRF funds for development, demonstration, pre-commercial pilot, and early commercial deployment of ZEV and NZEV truck, bus, and off-road vehicle and equipment technologies.
- Establishes the Charge Ahead California Initiative, administered by ARB, which among other things, includes the goal of placing at least one million ZEV and NZEV into service by January 1, 2023, establishing a self-sustaining market and increasing access to these vehicles for disadvantaged, low-income, and moderate-income communities and consumers. Requires ARB to develop a three-year funding plan to meet the goals of the Charge Ahead California Initiative.
FISCAL EFFECT: According to the Assembly Appropriations Committee, costs of about $345,000 (special funds) for ARB to hire two positions to complete the required reporting workload.
COMMENTS: In 2014, the Clean Truck Program was established, to be administered by ARB in conjunction with CEC, with the intent to create a single, overarching program to develop and deploy ZEV and NZEV truck, bus, and off-road vehicle and equipment technologies. Specifically, the Clean Truck Program provides GGRF funds for projects that develop technology, as well as demonstrate and pilot pre-commercial and early-commercial deployment of ZEV and NZEV emission medium- and heavy-duty technologies. Within the Clean Truck Program, funding priority is generally given to projects that benefit disadvantaged communities, address technology and market barriers not addressed by other programs and benefit multiple technology pathways.
Under the Clean Truck Program, ARB is required to create an annual plan. ARB has developed an annual funding plan for clean transportation incentives, including the Clean Truck Program, and added a three-year investment strategy for heavy-duty incentives. Similarly, ARB is required to adopt a three-year funding plan for its light-duty investments tied to the Charge Ahead California Initiative.
According to the author, "The health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero-emission heavy-duty trucks and buses, and the state needs to continue accelerating their deployment. These investments are important for the health of Californians who live along transportation corridors and are exposed to significant levels of diesel pollution. This bill provides certainty that heavy-duty investments will continue to be prioritized and effective."
Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093 FN: 0004663
SENATE THIRD READING
STR Bill Id:SB 1403
Author:(Lara)
As Amended Ver:August 6, 2018
Majority vote
SENATE VOTE: 36-0
Committee | Votes | Ayes | Noes |
Transportation | 12-0 | Frazier, Fong, Baker, Berman, Chu, Daly, Friedman, Gipson, Harper, Mathis, Medina, Nazarian | |
Natural Resources | 10-0 | Muratsuchi, Acosta, Chau, Eggman, Flora, Limón, McCarty, Melendez, Mark Stone, Reyes | |
Appropriations | 17-0 | Gonzalez Fletcher, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Nazarian, Obernolte, Quirk, Reyes |
|
SUMMARY: Requires the Air Resources Board (ARB) to adopt a three-year investment strategy for zero- (ZEV) and near-zero-emission (NZEV) heavy-duty vehicles and equipment to correspond to its investment strategy for light-duty vehicles.
EXISTING LAW:
- Designates the Air Resources Board (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), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (GHG) emissions limit equivalent to 1990 levels by 2020, adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions and authorizes ARB to use market-based compliance mechanisms, to comply with GHG reduction regulations.
- Requires ARB to ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030.
- Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the GGRF and be available for appropriation by the Legislature.
- Establishes the Air Quality Improvement Program (AQIP), administered by ARB, to fund projects that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
- Establishes the Clean Truck Program, administered by ARB in conjunction with California Energy Commission (CEC), to use GGRF funds for development, demonstration, pre-commercial pilot, and early commercial deployment of ZEV and NZEV truck, bus, and off-road vehicle and equipment technologies.
- Establishes the Charge Ahead California Initiative, administered by ARB, which among other things, includes the goal of placing at least one million ZEV and NZEV into service by January 1, 2023, establishing a self-sustaining market and increasing access to these vehicles for disadvantaged, low-income, and moderate-income communities and consumers. Requires ARB to develop a three-year funding plan to meet the goals of the Charge Ahead California Initiative.
FISCAL EFFECT: According to the Assembly Appropriations Committee, costs of about $345,000 (special funds) for ARB to hire two positions to complete the required reporting workload.
COMMENTS: In 2014, the Clean Truck Program was established, to be administered by ARB in conjunction with CEC, with the intent to create a single, overarching program to develop and deploy ZEV and NZEV truck, bus, and off-road vehicle and equipment technologies. Specifically, the Clean Truck Program provides GGRF funds for projects that develop technology, as well as demonstrate and pilot pre-commercial and early-commercial deployment of ZEV and NZEV emission medium- and heavy-duty technologies. Within the Clean Truck Program, funding priority is generally given to projects that benefit disadvantaged communities, address technology and market barriers not addressed by other programs and benefit multiple technology pathways.
Under the Clean Truck Program, ARB is required to create an annual plan. ARB has developed an annual funding plan for clean transportation incentives, including the Clean Truck Program, and added a three-year investment strategy for heavy-duty incentives. Similarly, ARB is required to adopt a three-year funding plan for its light-duty investments tied to the Charge Ahead California Initiative.
According to the author, "The health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero-emission heavy-duty trucks and buses, and the state needs to continue accelerating their deployment. These investments are important for the health of Californians who live along transportation corridors and are exposed to significant levels of diesel pollution. This bill provides certainty that heavy-duty investments will continue to be prioritized and effective."
Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093 FN: 0004136
Date of Hearing: August 15, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 1403
Author:(Lara) – As Amended Ver:August 6, 2018
Policy Committee: | Transportation | Vote: | 12 - 0 |
Natural Resources | 10 - 0 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the Air Resources Board (ARB) to include a three-year investment strategy for heavy-duty zero emission vehicles (ZEVs) and near-zero emission-vehicles (NZEVs) and equipment for the Air Quality Improvement Program funding plan.
FISCAL EFFECT:
Costs of about $345,000 (special funds) for ARB to hire two positions to complete the required reporting workload.
COMMENTS:
Background and purpose. SB 1204 (Lara), Chapter 524, Statutes of 2014, established the Clean Truck Program, which is administered by ARB. The intent of SB 1204 was to create a single, overarching program to develop and deploy heavy-duty vehicles primarily because the author felt that heavy-duty vehicles were not adequately addressed in existing incentive programs. The program works to develop zero-and near-zero-emission technologies for specified vehicles and equipment, not only for trucks, but also for buses, off-road vehicles, and equipment at the ports, as well as in agricultural, marine, and rail sectors. SB 1204 required ARB to create an annual funding plan for the Clean Truck Program. This bill requires ARB to develop a three-year investment strategy for the Clean Truck Program as part of the overall Air Quality Improvement Program.
Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081
Date of Hearing: June 25, 2018
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Al Muratsuchi, Acting Chair
SBPCA Bill Id:SB 1403
Author:(Lara) – As Amended Ver:June 19, 2018
SENATE VOTE: 36-0
SUBJECT: California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program
SUMMARY: Extends by 10 years, until January 1, 2030, the requirement that the California Air Resources Board (ARB) dedicate 20% of California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Clean Truck Program) funds to support early commercial deployment of existing zero- and near-zero-emission heavy-duty trucks. Requires ARB to adopt a three-year investment strategy for zero- and near-zero-emission heavy duty vehicles and equipment to correspond to its investment strategy for light-duty vehicles.
EXISTING LAW:
- Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the Cap-and-Trade Program adopted by ARB under AB 32) to be deposited in the GGRF and available for appropriation by the Legislature.
- Establishes the Clean Truck Program pursuant to SB 1204 (Lara), Chapter 524, Statutes of 2014, to use GGRF funds for development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies including, but not necessarily limited to, medium- and heavy-duty trucks, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, port equipment, agricultural equipment, marine equipment, and rail equipment.
- Requires, until December 31, 2020, that no less than 20% of funding for the Clean Truck Program support commercial deployment of existing zero- and near-zero-emission heavy-duty trucks.
- Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund projects that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
FISCAL EFFECT: According to the Senate Appropriations Committee (prior version):
- Future cost pressures, potentially over $10 million annually from 2020 until 2030, by extending the requirement to use 20% of specified program funds to support deployment of existing heavy-duty truck technology, to the extent the ARB would have otherwise allocated funds for other purposes. (GGRF)
- Minor one-time ARB costs to adapt existing GHG emission reduction quantification methodologies for the new project types specified in the bill. (GGRF)
COMMENTS:
- Background. In 2014, SB 1204 (Lara) established the Clean Truck Program, which is administered by ARB. The intent of SB 1204 was to create a single, overarching program to develop and deploy heavy-duty vehicles primarily because the author felt that heavy-duty vehicles were not being adequately addressed in existing incentive programs. The Program works to develop zero-and near-zero emission technologies for specified vehicles and equipment not only for trucks, but also for buses, off-road vehicles, and equipment at the ports, as well as in agricultural, marine, and rail sectors. Within the Program, funding priority is generally given to projects that demonstrate benefits to disadvantaged communities, the ability to leverage additional public and private funding, and provide the potential for co-benefits.
ARB carries out the Clean Truck Program in concert with the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which provides point-of-sale voucher discounts to fleet owners, and the Zero-Emission Truck and Bus Pilot Commercial Deployment Project, which provides funding for large scale deployments of medium- and heavy-duty trucks and buses, as well as accompanying fueling infrastructure and supporting vehicle service and repair facility upgrades.
SB 1204 required ARB to create an annual plan for the Clean Truck Program. ARB has developed an annual funding plan for clean transportation incentives, including the Clean Truck Program, and added a three-year investment strategy for heavy duty incentives.
- Author's statement:
The current clean truck program has a 20% floor for investment in existing technologies. This provision sunsets in 2020. Existing law requires that the ARB prepare a 3-year investment report to guide the annual appropriations. This requirement allows the ARB to plan for new technologies and efficiently make investments. However, this requirement is only for light duty investments and does not include heavy duty investments. Heavy duty zero emission trucks lag behind light duty technologies and therefore, such a research plan is even more valuable to guide investment decisions. In 2017, the Legislature extended Cap and Trade to 2030. SB 1403 makes small changes to guide the heavy duty investments related to Cap and Trade moving forward. This bill also aligns the sunsets of Cap and Trade with the 20% threshold in the Clean Truck Program to increase the likelihood that the extension of the two programs will be assessed at the same time.
- Related legislation. AB 2145 (Reyes) modifies the Clean Truck Program to add grid integration and integrated storage solutions, as well as charging management demonstration and analytics to the list of eligible projects that can be funded to support greater commercial motor vehicle and equipment efficiency. AB 2145 is pending in the Senate Appropriations Committee.
AB 3201 (Daly) revises the Clean Truck Program to specify that large-scale deployments of transit buses and infrastructure are eligible for funding. AB 3201 was held in the Assembly Appropriations Committee.
- Double referral. This bill was approved by the Assembly Transportation Committee on June 18, 2018 by a vote of 12-0.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /
Date of Hearing: June 18, 2018
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SBPCA Bill Id:SB 1403
Author:(Lara) – As Amended Ver:As Amended Ver:May 25, 2018
SENATE VOTE: 36-0
SUBJECT: California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.
SUMMARY: Extends the sunset date on a set-aside within the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Clean Truck Program). Specifically, this bill extends the sunset date from December 31, 2020, to December 31, 2030, on a requirement to allocate at least 20% of funding dedicated to medium- and heavy-duty truck technology for the support of early commercial deployment of existing zero- and near-zero- emission heavy-duty truck technology.
EXISTING LAW:
- Designates the Air Resources Board (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, adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions and authorizes ARB to use market-based compliance mechanisms, to comply with GHG reduction regulations.
- Requires ARB to ensure that statewide GHG emissions are reduced to at least 40% below 1990 levels by 2030.
- Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the GGRF and be available for appropriation by the Legislature.
- Establishes the Air Quality Improvement Program (AQIP), administered by ARB, to fund projects that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
- Establishes the Clean Truck Program, administered by ARB in conjunction with California Energy Commission (CEC), to use GGRF funds for development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near zero-emission truck, bus, and off-road vehicle and equipment technologies; and requires ARB, when funding projects related to technology development, demonstration, pre-commercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, to allocate, until December 31, 2020, at least 20% of that funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
FISCAL EFFECT: Unknown
COMMENTS: In order to meet our ambitious GHG reduction goals and reduce emissions from mobile sources, in particular the medium- and heavy-duty sector that represent a disproportionate amount of pollution, the state has created various programs to incentivize and accelerate the development and deployment of cleaner vehicles and technologies.
In 2014, the Clean Truck Program was established, to be administered by ARB in conjunction with CEC, with the intent to create a single, overarching program to develop and deploy zero- and near zero-emission truck, bus, and off-road vehicle and equipment technologies. Specifically, the Clean Truck Program provides GGRF funds for projects that develop technology, as well as demonstrate and pilot pre-commercial and early-commercial deployment of zero- and near-zero emission medium- and heavy-duty technologies. Within the Clean Truck Program, funding priority is generally given to projects that benefit disadvantaged communities, address technology and market barriers not addressed by other programs and benefit multiple technology pathways.
Under the Clean Truck Program, ARB has created various projects/programs. In fiscal year 2015- 16 and in 2016- 17, ARB released competitive solicitations for the Zero-Emission Truck Pilot Commercial Deployment Project to fund deployments of zero-emission trucks and buses and the Advanced Technology Demonstration Project (ATDP) to fund both on-road and off-road demonstration projects. ATDPs are intended to accelerate into the California marketplace the introduction of advanced technologies on the cusp of commercialization. ARB indicates that demands for these projects/programs have far exceeded available funding.
For the 2017-18 funding plan, ARB allocated GGRF monies, consistent with the Clean Truck Program, to Advanced Freight Equipment Demonstration and Deployment projects including the Zero- and Near Zero-Emission Freight Facilities and the Zero-Emission Off-Road Freight Voucher Incentive Project. Additionally, the funding plan provides GGRF monies to the Hybrid and Zero Emission and Bus Voucher Incentive Project (HVIP) and for Low Nitrogen Oxides (NOx) Engine Incentives to encourage and accelerate the deployment of zero-emission trucks and buses, vehicles using engines that meet the optional low NOx standard, and hybrid trucks and buses.
Additional programs have also focused on the commercialization of advanced technologies and on the turnover of existing fleets including, the AQIP-funded Truck Loan Assistance Program which creates financing opportunities for small-business owners to upgrade with new trucks or retrofit with diesel exhaust control devices to meet regulatory requirements.
According to the author, “The health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero-emission heavy-duty trucks and buses, and the state needs to continue accelerating their deployment. These investments are important for the health of Californians who live along transportation corridors and are exposed to significant levels of diesel pollution. This bill extends the sunset on the Clean Truck Program to provide certainty that heavy-duty investments will continue to be prioritized and effective.”
Committee Comments: As part of the Clean Truck program and to accelerate the deployment of existing technologies, ARB is required to set aside at least 20% of any funds made available for medium- and heavy- duty trucks to support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology, until December 31, 2020. ARB indicates that since the majority of the heavy-duty projects funded via GGRF can be used to fund trucks and early commercial technologies, it expects to significantly exceed the 20 % requirement and will more than likely have to continue this investment in the coming years. Because ARB is already supporting early commercial deployment of existing truck technology, it stands to reason that this investment will continue to signal to stakeholders that these funds may be available post 2020 and in the long-term. However, by extending this requirement for a decade to come, this bill may potentially limit ARB’s ability to fund the development of new truck technologies and respond to market changes.
Double Referral: This bill will be referred to the Assembly Natural Resources Committee should it pass out of this committee.
Previous Legislation: AB 1073 (E. Garcia), Chapter 632, Statutes of 2017, extended the sunset on a set-aside within the Clean Truck Program, from January 1, 2018, to December 31, 2020.
AB 2415 (E. Garcia) of 2016, would have reserved 50% or $100 million annually, whichever is greater, of GGRF monies that are allocated to the Clean Truck Program to support the commercial deployment of existing zero- and near-zero emission heavy-duty truck technology that meets or exceeds low NOx standard between 2018 and 2023. AB 2415 was held on the Assembly Appropriations Committee suspense file.
AB 857 (Perea) of 2015, would have reserved 50% or $100 million annually, whichever is greater, of GGRF monies that are allocated to the Clean Truck Program to support the commercial deployment of existing zero- and near-zero emission heavy-duty truck technology that meets or exceeds low NOx standard between 2018 and 2023. AB 857 was held on the Senate Appropriations Committee suspense file and was subsequently amended to address a different topic.
SB 1204 (Lara), Chapter 524, Statutes of 2014, created the Clean Truck Program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and required that 20% of funds made available for medium- and heavy-duty truck technology for the support of early commercial deployment of existing truck technologies until January 1, 2018.
AB 8 (Perea), Chapter 401, Statutes of 2013, extended until January 1, 2024, the fees that support AQIP.
AB 118 (Núñez), Chapter 750, Statutes of 2007, created the AQIP to provide funding measures to specified entities to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies
REGISTERED SUPPORT / OPPOSITION:
Support
None on File
Opposition
None on File
Analysis Prepared by: Cynthia Alvarez / TRANS. / (916) 319-2093
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 1403 (Lara) - California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program
Version: May 25, 2018 | Policy Vote: T. & H. 13 - 0, E.Q. 7 - 0 |
Urgency: No | Mandate: No |
Hearing Date: May 25, 2018 | Consultant: Mark McKenzie |
Bill Summary:
SB 1403 would expand the types of projects explicitly eligible for funding under the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, and extend the sunset to January 1, 2030 on a requirement to allocate 20% of funding dedicated to medium- and heavy-duty truck technology for the support of early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 25, 2018
Fiscal Impact:
- Future cost pressures, potentially over ten of million annually from 2020 until 2030, by extending the requirement to use 20% of specified program funds to support deployment of existing heavy-duty truck technology, to the extent the California Air Resources Board (CARB) would have otherwise allocated funds for other purposes. (Greenhouse Gas Reduction Fund - GGRF)
- Minor one-time CARB costs to adapt existing greenhouse gas (GHG) emission reduction quantification methodologies for the new project types specified in the bill. (GGRF)
Author Amendments:
- Delete specific references to demonstration projects for integrated storage and charging management, efficient zero- and near-zero fueling and charging strategies as projects explicitly eligible for funding.
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 1403
: 5/25/18
SENATE TRANS. & HOUSING COMMITTEE: 13-0, 4/10/18
AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Morrell, Roth, Skinner, Vidak, Wieckowski, Wiener
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 4/18/18
AYES: Wieckowski, Stone, Gaines, Hill, Lara, Skinner, Stern
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
DIGEST:
This bill extends the sunset on a set-aside within the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Clean Truck Program).
Existing law:
- Requires the State Air Resources Board (ARB), pursuant to AB 32 (Núñez and Pavley, Chapter 488, Statutes of 2006), to develop a plan to reduce emissions to 1990 levels by 2020. It also requires ARB to ensure programs that reduce greenhouse gas (GHG) emissions are targeted, to the extent feasible, to the most disadvantaged communities in the state. Pursuant to AB 32, ARB adopted a cap-and-trade program that caps allowable statewide GHG emissions and provides for the auctioning of emission credits, the proceeds of which are deposited quarterly into the Greenhouse Gas Reduction Fund (GGRF) for appropriation by the Legislature.
- Sets a target of reducing statewide GHG emissions, pursuant to Executive Order B-30-2015 (issued by the Governor in 2015), to 80% below 1990 levels by 2050, and an interim statewide GHG emissions reduction target of 40% below 1990 levels by 2030. SB 32 (Pavley, Chapter 249, Statutes of 2016) codified the 2030 GHG emissions reduction target in Executive Order B-30-2015.
- Makes numerous and substantive changes to AB 32, pursuant to AB 398 (E. Garcia, Chapter 135, Statutes of 2017), including a provision specifically authorizing the cap-and-trade program until December 31, 2030.
- Establishes, pursuant to SB 1204 (Lara, Chapter 524, Statutes of 2014), a program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. The Clean Truck Program is funded with GGRF monies as part of the umbrella of Low Carbon Transportation programs under ARB. At least 20% of the funding for the Clean Truck Program must go to early commercial development of existing zero- and near-zero-emission heavy-duty truck technology, until December 31, 2020. ARB must prioritize projects that demonstrate benefit to disadvantaged communities, address technology and market barriers not addressed by other programs, and enabling technologies that benefit multiple technology pathways.
This bill extends the sunset on the set-aside within Clean Truck Program from December 31, 2020, to December 31, 2030.
Background
The intent of SB 1204 was to establish a single, overarching program to ensure that the state is providing sufficient incentives for development and deployment of clean heavy-duty vehicles. The Clean Truck Program complements other heavy-duty vehicle programs; for example, while the Clean Truck Program focuses on development and deployment of clean truck technology, the Hybrid and Zero Emission Truck and Bus Voucher Incentive Project, also funded by the GGRF, provides vouchers to reduce the cost of purchasing a hybrid or zero-emission truck.
Comments
- Purpose. The author states that the health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero-emission heavy-duty trucks and buses, and the state needs to continue accelerating their deployment. These investments are important for the health of Californians who live along transportation corridors and are exposed to significant levels of diesel pollution. This bill extends the sunset on the Clean Truck Program to provide certainty that heavy-duty investments will continue to be prioritized and effective.
- Where is the money going? The Clean Truck Program officially commenced on July 1, 2015. In October 2015, ARB released a competitive solicitation of $24 million for the Zero-Emission Truck Pilot Commercial Deployment Project; an additional $59 million was allocated in October 2016. These solicitations were significantly oversubscribed, with funding requests totaling $290 million. ARB selected nine projects, to be supplemented with an additional $59 million in match funding from federal, state, local, and private sources. These projects included, among others, $9.5 million to the City of Porterville to help fund the purchase and operation of 10 zero-emission transit buses; $8 million to the Sacramento Metropolitan Air Quality Management District to help deploy 29 zero-emission school buses with 29 charging ports; and $2.7 million to the Bay Area Air Quality Management District to help deploy 11 zero-emission battery electric trucks for Goodwill Industries.
SB 1204 also provides funding for Advanced Technology Demonstration Projects (ATDP) to help support technologies and vehicles that are on the cusp of commercialization. In 2016-17, ARB allocated $34 million for demonstration projects and released two competitive solicitations for both on-road and off-road demonstration projects. The solicitations were heavily oversubscribed, with funding requests totaling nearly $90 million. In 2017-18, ARB allocated $190 million for ATDP, of which $150 million was reserved for Zero- and Near-Zero-Emission Freight Facilities (including warehouses) and $40 million for the Zero-Emission Off-Road Freight Voucher Incentive Project. ARB released the solicitation for Zero-and Near-Zero-Emission Freight Facilities on March 21, 2018.
Related/Prior Legislation
AB 1073 (E. Garcia, Chapter 632, Statutes of 2017) extended the sunset on the set-aside within the Clean Truck Program for early commercial development of existing zero- and near-zero-emission heavy-duty trucks, from January 1, 2018 to December 31, 2020.
AB 2415 (E. Garcia, 2016) would have increased the set-aside within the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. The bill was held on suspense in the Assembly Appropriations Committee.
AB 857 (Perea, 2015) would have increased the set-aside in the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. The bill was held on suspense in the Assembly Appropriations Committee and subsequently amended to address a different topic.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
- Future cost pressures, potentially over $10 million annually from 2020 until 2030, by extending the requirement to use 20% of specified program funds to support deployment of existing heavy-duty truck technology, to the extent the ARB would have otherwise allocated funds for other purposes. (GGRF)
- Minor one-time ARB costs to adapt existing GHG emission reduction quantification methodologies for the new project types specified in the bill. (GGRF)
None received
OPPOSITION: (Verified 5/25/18)
None received
ARGUMENTS IN SUPPORT: The author states that this bill extends the sunset on the Clean Truck Program to provide certainty that heavy-duty investments will continue to be prioritized and effective.
5/29/18 17:44:40
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 1403 (Lara) - California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 1403 would expand the types of projects eligible for funding under the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, and extend the sunset to January 1, 2030 on a requirement to allocate 20% of funding dedicated to medium- and heavy-duty truck technology for the support of early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
Fiscal Impact:
- Future cost pressures, potentially over ten of million annually from 2020 until 2030, by extending the requirement to use 20% of specified program funds to support deployment of existing heavy-duty truck technology, to the extent the California Air Resources Board (CARB) would have otherwise allocated funds for other purposes. (Greenhouse Gas Reduction Fund - GGRF)
- Minor one-time CARB costs to adapt existing greenhouse gas (GHG) emission reduction quantification methodologies for the new project types specified in the bill. (GGRF)
Background:
Existing law, the California Global Warming Solutions Act of 2006 (AB 32), requires CARB to: (1) determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020; (2) ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030; and (3) adopt regulations that utilize market-based compliance mechanisms to reduce GHG emissions. As part of the implementation of these market-based compliance measures, CARB adopted a cap-and-trade program that caps the allowable statewide emissions and provides for the auctioning of emission credits, the proceeds of which are quarterly deposited into the GGRF.
Existing law establishes the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. This program is funded with GGRF monies as part of the umbrella of CARB’s Low Carbon Transportation Investments within its Clean Transportation Incentive programs. Eligible projects include zero- and near-zero-emission medium- and heavy-truck, bus, and off-road vehicle and equipment technologies that are in the development, demonstration, pre-commercial pilot, or early commercial deployment stages, as well as purchase incentives and projects that support greater commercial motor vehicle and equipment freight efficiency and GHG emissions reductions. At least 20% of any funding made available for medium- and heavy-duty truck technology must be used to support early commercial development of existing zero- and near-zero-emission heavy-duty truck technology, until December 31, 2020. CARB must prioritize projects that demonstrate a benefit to disadvantaged communities, address technology and market barriers not addressed by other programs, and enable technologies that benefit multiple technology pathways.
Proposed Law:
SB 1403 would expand the types of projects eligible for funding under the Program to include demonstration projects for integrated storage and charging management, and efficient zero- and near-zero fueling and charging strategies.
The bill would also extend the sunset, from January 1, 2020 to January 1, 2030, on a requirement to allocate 20% of funding made available for specified medium- and heavy-duty truck technology for the support of early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
Related Legislation:
SB 1204 (Lara), Chap. 524/2014, established the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program to fund the development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies, as specified. The bill required that 20% of funds made available for medium- and heavy-duty trucks must be used to support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology until January 1, 2018.
AB 1073 (E.Garcia), Chap. 632/2017, extended the sunset on the requirement that 20% of any funds made available for medium- and heavy-duty trucks must be used to support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology until January 1, 2020.
Staff Comments:
CARB indicates that would incur minor costs related to the expansion of eligible project types to include integrated storage and charging management, and efficient zero- and near-zero fueling and charging projects. Existing law and regulations require the quantification and reporting of emission reductions for projects funded with GGRF funds using methodologies developed by CARB staff. CARB’s incentive programs currently provide funding for charging infrastructure for zero-emission technologies, but not for near-zero fueling and charging infrastructure. Rather than developing new GHG emission quantification methodologies, CARB indicates that it can adapt existing methodologies to calculate emission reductions related to these new project types, which may include natural gas or diesel fueling, when diesel low NOx engines become available.
CARB has allocated GGRF funds for projects specified in the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program since 2015. CARB released competitive solicitations in 2015-16 and 2016-17 for the Zero-Emission Truck Pilot Commercial Deployment Project and for on-road and off-road Advanced Technology Demonstration Projects, which were heavily oversubscribed, with combined funding requests of approximately $380 million for $117 million in available funds for these programs. The 2017-18 Budget (AB 134, Chap. 254/2017) included an allocation of $140 million in GGRF funding for Freight Equipment Advanced Demonstration and Pilot Commercial Deployment Projects. The FY 2017-18 Funding Plan for Clean Transportation Incentives allocated $100 million of this amount for a Zero- and Near-Zero-Emission Freight Facilities Project, and CARB recently released a $150 million solicitation for to this freight facilities project, which includes up to $50 million for projects at warehouses. The Governor’s Proposed Budget for 2018-19 includes a CARB request for $160 million in GGRF funds for Advanced Heavy-Duty Vehicles and Off-Road Equipment Incentives. CARB indicates that demand for the overall heavy-duty incentive program, including heavy-duty demonstrations and pilots, continues to exceed available funding, with the three-year heavy-duty investment strategy identifying a funding demand of $355-$640 million, including demonstrations, pilots, and vouchers.
CARB indicates that it continues to exceed the requirement to spend 20% of funding allocated for medium- and heavy-duty technologies on early commercial development of existing zero- and near-zero-emission heavy-duty truck technology, and is likely to meet or exceed that requirement over the next several years. Extending this requirement to 2030, however, will limit CARB’s flexibility in responding to market forces for developing new technologies. To the extent that the bill limits CARB’s ability to allocate funding for other medium- and heavy-duty truck technologies by extending the 20% set-aside requirement for existing technologies, this bill would create significant cost pressures. Depending on the amount of GGRF funds made available for clean truck, bus, and off-road vehicle and equipment technologies in the future, cost pressures could exceed $10 million in a given year.
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SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2017 - 2018 Regular
Bill No: SB 1403
Author: | Lara | ||
Version: | 4/11/2018 | Hearing Date: | 4/18/2018 |
Urgency: | No | Fiscal: | Yes |
Consultant: | David Ernest García | ||
SUBJECT: California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program
ANALYSIS:
Existing federal law:
- The Federal Clean Air Act (FCAA) and its implementing regulations set National Ambient Air Quality Standards (NAAQS) for six criteria pollutants, designate air basins that do not achieve NAAQS as nonattainment, allow only California to set vehicular emissions standards stricter than the federal government, and allow other states to adopt either the federal or California vehicular emissions standards. (42 U.S.C. §7401 et seq.)
Existing state law:
- Establishes the Air Resources Board (ARB) as the air pollution control agency in California and requires the ARB, among other things, to control emissions from a wide array of mobile sources and implement the FCAA. (Health and Safety Code (HSC) §39500 et seq.)
- Establishes Sections 1962.1, 1962.2, and 1962.3 of Title 13 of the California Code of Regulations (Zero-Emission Vehicle (ZEV) Mandate) that requires large volume and intermediate volume vehicle manufacturers that sell cars in California to produce ZEVs, as specified.
- Requires, under the California Global Warming Solutions Act of 2006 (also known as AB 32), ARB to (1) determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level to be achieved by 2020; (2) ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030 (i.e., SB 32); and (3) adopt regulations, until December 31, 2030, that utilize market-based compliance mechanisms to reduce GHG emissions (i.e., the cap-and-trade program). (HSC §38500 et seq.)
- Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund. (Government Code (GOV) §16428.8)
- Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts, to fund programs that reduce criteria air pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies. (HSC §44274 et seq.)
- Establishes, as a part of the AQIP and administered by ARB, the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, to be financed with GGRF moneys, to fund zero- and near-zero emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified, with priority to be given to certain projects, including projects that benefit disadvantaged communities. (HSC §39719.2)
- Requires, until January 1, 2018, that 20% of the moneys allocated to the Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program that are spent on certain project types be used exclusively for zero- and near-zero-emission heavy-duty truck technology. (HSC §39719.2)
This bill:
Extends the December 31, 2020 sunset of the 20% allocation for zero- and near-zero-emission heavy-duty truck technology to December 31, 2030 and adds demonstration projects for integrated storage and charging management, efficient zero- and near-zero fueling and charging strategies as eligible projects for funding.
Background
- Air quality standards. The Federal Clean Air Act (FCAA) passed in 1963 and has been revised many times thereafter. The FCAA and its implementing regulations are intended to protect public health and environmental quality by limiting and reducing pollution from various sources. Under the FCAA, the United States Environmental Protection Agency (US EPA) establishes National Ambient Air Quality Standards (NAAQS) that apply to outdoor air throughout the country.
In 1969 and 1971, ARB set the first air quality standards for ozone, Particulate Matter (PM), oxides of nitrogen (NOx), oxides of sulfur (SOx), and carbon monoxide due to their negative impacts on public health above specified concentrations.
The federal government followed suit and set NAAQS for six “criteria pollutants.” These included ground-level ozone, PM, NOx, SOx, and carbon monoxide, and added lead. Now, the US EPA reviews each NAAQS at five-year intervals to ensure that the standards are based on the most recent scientific information.
Regions that do not meet the national standards for any one of the standards are designated “nonattainment areas.” The FCAA sets deadlines for attainment based on the severity of nonattainment and requires states to develop comprehensive plans, known as the state implementation plan (SIP), to attain and maintain air-quality standards for each area designated nonattainment for an NAAQS. - Health impacts of air pollution. When not adequately controlled, air pollution has dire consequences on the health and safety of both people and the environment. Poor air quality causes the lungs to constrict, resulting in wheezing, shortness of breath and chest tightness, especially during exercise or physical activity.
It is well known that air pollution causes asthma. According to the Centers for Disease Control and Prevention, nationwide 7.4% of adults and 8.6% of children have been diagnosed with asthma. In California, the numbers are significantly higher: 13.1% of adults and 12.5% of children have been diagnosed with asthma. Lower income and minority groups are disproportionately affected by asthma due to their increased exposure to air pollution.
Depending on exposure, air pollution alone can cause an increased risk of cardiovascular and respiratory illness, lung disease, cancerous tumors, birth defects, premature births, developmental disorders, central nervous system damage, intellectual disability, persistent memory impairments, epilepsy, dementia, and premature death.
The Lancet, a U.K.-based medical journal, recently published that 9 million people died in 2015 from all sources of pollution, which cost $4.6 trillion in economic damage. Air pollution accounted for approximately 6.5 million of the 9 million deaths.
A June 2017 study published by Harvard researchers in the New England Journal of Medicine found that there is no safe level of long-term exposure to PM 2.5 (PM that is less than 2.5 micrometers in diameter) and ozone below which there is no risk of premature death. The study followed over 60 million Americans over 65 years old for seven years. Two key findings in the study are that reducing PM 2.5 concentrations by 1 microgram per cubic meter nationwide would save about 12,000 lives each year and that reducing ozone concentrations by 1 part per billion nationwide would save about 1,900 lives each year. - Vehicles and air pollution. Vehicles are one of the primary sources of air pollution nationally. As such, the FCAA authorizes US EPA to establish and regulate emissions standards for mobile sources.
California, due to its preexisting vehicle-emission standards and severe motor vehicle air pollution problems, is authorized under the FCAA to implement separate mobile emission standards from the federal government. Other states may choose to follow either the national standard or the stricter California standards.
State law assigns the ARB with primary responsibility for control of mobile-source air pollution, including adoption of rules for reducing vehicle emissions, the specification of vehicular fuel composition, emissions control devices, and engine standards.
As a result of California’s successful actions regulating air pollution, vehicles today are over 99% cleaner than they were when the state began regulating mobile source emissions. Despite this success, mobile sources are still responsible for approximately 40% of all emissions in the state. - Low Carbon Transportation. SB 1204 (Lara, Pavley, Chapter 524, Statutes of 2014) created a new program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. SB 1204 authorizes GGRF funding for this program and requires it to prioritize projects located in disadvantaged communities. The bill specified that, until January 1, 2018, 20% for early commercial deployment of existing zero-and near-zero emission heavy-duty truck technology.
Pursuant to SB 1204, ARB has created several new program categories to fund the development and deployment of zero and near-zero emission trucks, buses and off-road vehicles.- Advanced technology demonstration projects. Administered by ARB to provide grants to local air districts and other public agencies to fund advanced-technology vehicle, equipment, or emission-control projects that are not yet commercialized.
- Zero emission truck and bus pilots. This program seeks to leverage resources, promote efficiencies, and help drive down per vehicle costs via large, location-specific deployments of zero-emission trucks and buses. Eligible project types include zero-emission transit buses, zero-emission school buses, and zero-emission freight/delivery trucks.
- Zero emission off-road freight equipment pilot commercial deployment project. This program provides incentives for zero emission off-road freight equipment to accelerate deployment and drive consumer acceptance in the early stages of commercialization. Eligible off-road zero-emission projects would include forklifts, transport refrigeration units, yard trucks, airport ground support, and cargo handling equipment.
- Low NOx truck incentives. Also under AQIP, this program provides funding for heavy-duty trucks 14,000 pounds gross vehicle weight rating (GVWR) or greater with engines certified to the lower NOx standards.
- Advanced technology demonstration projects. Administered by ARB to provide grants to local air districts and other public agencies to fund advanced-technology vehicle, equipment, or emission-control projects that are not yet commercialized.
- Other ARB Incentive Programs.
- Clean Vehicle Rebate Project (CVRP). The CVRP is funded by ARB and administered by the Center for Sustainable Energy, in order to promote the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval.
CVRP provides a rebate of up to $5,000 for purchasing or leasing a new zero-emission vehicle or plug-in hybrid electric vehicle. Specifically, a consumer may obtain a $5,000 rebate for a hydrogen fuel-cell vehicle; a $2,500 rebate for a zero-emission, battery electric vehicle; a $1,500 voucher for a plug-in hybrid electric vehicle; or, a $900 rebate for a neighborhood electric vehicle or a zero-emission motorcycle. There is no cap on the number of rebates that may be issued, but rebates are subject to funding availability and the program has more than once been forced to stop issuing rebates and create a waiting list due to funds running out.
CVRP was initially designed to achieve 1.5 million ZEVs on the road by 2025 as directed under Governor Brown’s Executive Order B-16-2012. - Enhanced Fleet Modernization Program (EFMP). The EFMP enables a vehicle owner to retire a high-polluting passenger vehicle or light- or medium-duty truck. A vehicle need not have failed a smog test to qualify for EFMP, but it must meet ARB’s definition of high polluting. Under the statewide component of EFMP, ARB administers a program, in consultation with the California Bureau of Automotive Repair, to scrap high-polluting vehicles. Under this program, EFMP offers a $1,500 voucher to low-income vehicle owners (household income at or below 225% of federal poverty level), or a $1,000 voucher to all other vehicle owners, to retire a high-polluting vehicle. EFMP does not place technology restrictions on the kind of vehicle that a consumer may purchase, only that the vehicle meets certain emission standards.
- EFMP Plus-Up. EFMP also has a vehicle replacement component, known as EFMP Plus-Up. Under EFMP Plus-Up, a low-income owner can get a $2,500 “replacement” voucher in addition to the $1,500 base EFMP “retirement” voucher. The owner may use the funds to either purchase a car that is less than eight years old or to obtain a public transit voucher. If a low-income owner lives in a disadvantaged community in one of these air districts, and wants to purchase a hybrid, plug-in hybrid, or battery electric vehicle, he or she can “stack” additional incentives on top of these two vouchers. Depending on the owner’s income and the type of replacement vehicle, the owner can receive up to $12,000 toward the purchase of a new car. The ARB is currently working with local air districts to expand EFMP Plus-Up to disadvantaged communities in Sacramento, San Diego, and the bay area.
- Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). HVIP is administered by ARB and its contractor, CALSTART. HVIP provides vouchers to California fleet owners to help purchase hybrid and zero-emission trucks and buses.
- Truck Loan Assistance Program. Creates financing opportunities for small-business truck owners affected by the Truck and Bus Regulation to upgrade with new trucks or retrofit with diesel exhaust control devices. As of December 31, 2015, about $71 million in program funding has been expended to provide about $575 million in financing for the purchase of nearly 9,500 cleaner trucks, exhaust retrofits, and trailers.
- Clean Vehicle Rebate Project (CVRP). The CVRP is funded by ARB and administered by the Center for Sustainable Energy, in order to promote the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval.
Comments
- Purpose of Bill. According to the author, “the health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero emission heavy-duty trucks and buses, we need to continue to accelerate their deployment. These investments are important for the health of those Californians who live along transportation corridors and are exposed to significant diesel pollution. SB 1403 updates this program to further enhance heavy duty truck deployment. In 2017, California’s Cap and Trade Program was extended to 2030 and SB 1403 provides certainty that heavy duty investments will continue to be prioritized and effective.”
- A plethora of programs. As noted in the background, ARB has many programs that address clean vehicles in California. Most relevant to this bill are the HVIP and Truck Loan Assistance Program. These programs largely address the same issue as the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.
As noted in the Senate Environmental Quality Committee’s analysis of the bill that created the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, “the program created by SB 1204 is focused on the clean medium and heavy-duty vehicle sector. It is not entirely clear what projects are eligible for the new program that are not currently eligible for funding under the existing [ARB] programs.”
Aside from the redundancy of the program itself, the carve-out within the program doesn’t seem to be necessary. ARB spends more than 20% of GGRF moneys allocated to the program on the vehicles targeted by this carve-out. About 50% of the total heavy-duty truck investment moneys were directed to Early Commercial Truck funding, which applies to the deployment of technology for trucks that are beyond the demonstration phase. This does not include buses.
Continuing the carve-out for existing technologies limits ARB’s ability to respond to the market and support the continued development and commercialization of ever cleaner technologies, through development and demonstration projects. While the 20% requirement focuses on existing early commercial technologies, additional investment in sectors with limited commercialized technologies, such as off-road and freight will be needed to meet California’s air quality and climate goals.
Related/Prior Legislation
AB 1073 (E. Garcia, Chapter 632, Statutes of 2017) extended the sunset on the set-aside within the Clean Truck Program for early commercial development of existing zero- and near-zero-emission heavy-duty trucks, from January 1, 2018 to December 31, 2020.
SB 1204 (Lara, Pavley, Chapter 524, Statutes of 2014), created the Technology Program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies.
AB 2415 (E. Garcia, 2016) would have increased the set-aside in the SB 1204 Program to 50% or $100 million per year, whichever was greater. This bill was held on suspense in the Assembly Appropriations Committee.
AB 857 (Perea, 2015) would have increased the set-aside in the SB 1204 Program to 50% or $100 million per year, whichever was greater. This bill was held on suspense in the Senate Appropriations Committee and subsequently amended to address a different subject.
DOUBLE REFERRAL:
This measure was heard in Senate Transportation and Housing Committee on April 10, 2018 and passed out of committee with a vote of 13-0.
SOURCE:
Author
SUPPORT:
None on file
OPPOSITION:
None on file
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SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 4/10/2018
Author: | Lara | ||
Version: | 3/22/18 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Erin Riches | ||
SUBJECT:
DIGEST: As proposed to be amended, this bill expands project eligibility for the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Clean Truck Program) and extends the sunset on a set-aside within the program.
ANALYSIS:
Existing law:
- AB 32 (Núñez and Pavley, Chapter 488, Statutes of 2006) requires the state Air Resources Board (ARB) to develop a plan to reduce emissions to 1990 levels by 2020. It also requires ARB to ensure programs that reduce greenhouse gas (GHG) emissions are targeted, to the extent feasible, to the most disadvantaged communities in the state. Pursuant to AB 32, ARB adopted a cap-and-trade program that caps allowable statewide GHG emissions and provides for the auctioning of emission credits, the proceeds of which are deposited quarterly into the Greenhouse Gas Reduction Fund (GGRF) for appropriation by the Legislature.
- Executive Order B-30-2015, issued by the Governor in 2015, sets a target of reducing statewide GHG emissions to 80% below 1990 levels by 2050, and an interim statewide GHG emissions reduction target of 40% below 1990 levels by 2030. SB 32, Pavley, Chapter 249, Statutes of 2016 codifies the 2030 GHG emissions reduction target in Executive Order B-30-2015.
- AB 398 (E. Garcia, Chapter 135, Statutes of 2017), which makes numerous and substantive changes to AB 32, includes a provision specifically authorizing the cap-and-trade program until December 31, 2030.
- SB 1204 (Lara, Chapter 524 of 2014) establishes a program to fund development, demonstration, pre-commercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. The Clean Truck Program is funded with GGRF monies as part of the umbrella of Low Carbon Transportation programs under ARB. At least 20% of the funding for the Clean Truck Program must go to early commercial development of existing zero- and near-zero-emission heavy-duty truck technology, until December 31, 2020. ARB must prioritize projects that demonstrate benefit to disadvantaged communities, address technology and market barriers not addressed by other programs, and enabling technologies that benefit multiple technology pathways.
This bill, as proposed to be amended:
- Makes demonstration projects for integrated storage and charging management, as well as efficient zero- and near-zero fueling and charging strategies, eligible for funding under the Clean Truck Program.
- Extends the sunset on the set-aside within Clean Truck Program to December 31, 2030.
COMMENTS
- Purpose. The author states that the health of our communities depends on cleaning up our transportation corridors. Diesel air pollution increases the risks of heart conditions and asthma. The technology exists for zero-emission heavy-duty trucks and buses, and the state needs to continue accelerating their deployment. These investments are important for the health of Californians who live along transportation corridors and are exposed to significant levels of diesel pollution. This bill updates the Clean Truck Program to further enhance truck deployment as well as extending the sunset to provide certainty that heavy-duty investments will continue to be prioritized and effective.
- Background. The intent of SB 1204 was to establish a single, overarching program to ensure that the state is providing sufficient incentives for development and deployment of clean heavy-duty vehicles. The Clean Truck Program complements other heavy-duty vehicle programs; for example, while the Clean Truck Program focuses on development and deployment of clean truck technology, the Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP), also funded by the GGRF, provides vouchers to reduce the cost of purchasing a hybrid or zero-emission truck.
- Where is the money going? The Clean Truck Program officially commenced on July 1, 2015. In October 2015, ARB released a competitive solicitation of $24 million for the Zero-Emission Truck Pilot Commercial Deployment Project; an additional $59 million was allocated in October 2016. These solicitations were significantly oversubscribed, with funding requests totaling $290 million. ARB selected nine projects, to be supplemented with an additional $59 million in match funding from federal, state, local, and private sources. These projects included, among others, $9.5 million to the City of Porterville to help fund the purchase and operation of 10 zero-emission transit buses; $8 million to the Sacramento Metropolitan Air Quality Management District to help deploy 29 zero-emission school buses with 29 charging ports; and $2.7 million to the Bay Area Air Quality Management District to help deploy 11 zero-emission battery electric trucks for Goodwill Industries.
SB 1204 also provides funding for Advanced Technology Demonstration Projects (ATDP) to help support technologies and vehicles that are on the cusp of commercialization. In 2016-17, ARB allocated $34 million for demonstration projects and released two competitive solicitations for both on-road and off-road demonstration projects. The solicitations were heavily oversubscribed, with funding requests totaling nearly $90 million. In 2017-18, ARB allocated $190 million for ATDP, of which $150 million was reserved for Zero- and Near-Zero-Emission Freight Facilities (including warehouses) and $40 million for the Zero-Emission Off-Road Freight Voucher Incentive Project. ARB released the solicitation for Zero-and Near-Zero-Emission Freight Facilities on March 21, 2018.
- Amendments. AB 398 of 2017 extended the sunset on the cap-and-trade program from December 31, 2020 to December 31, 2030. The author will accept amendments in committee to extend the sunset on the set-aside within the Clean Truck Program to December 31, 2030 in order to align with the cap-and-trade sunset.
- Double-referred. This bill has also been referred to the Environmental Quality Committee.
Related Legislation:
AB 1073 (E. Garcia, Chapter 632, Statutes of 2017) — extended the sunset on the set-aside within the Clean Truck Program for early commercial development of existing zero- and near-zero-emission heavy-duty trucks, from January 1, 2018 to December 31, 2020.
AB 2415 (E. Garcia) of 2016 — would have increased the set-aside within the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. This bill was held on suspense in the Assembly Appropriations Committee.
AB 857 (Perea) of 2015 — would have increased the set-aside in the Clean Truck Program from 20% to 50% or $100 million per year, whichever was greater. This bill was held on suspense in the Assembly Appropriations Committee and subsequently amended to address a different topic.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 4, 2018.)
SUPPORT:
None received.
OPPOSITION:
None received.
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Discussed in Hearing
1MIN
Assembly Floor
1H
Assembly Standing Committee on Appropriations
1MIN
Senate Floor
2MIN
Senate Standing Committee on Environmental Quality
Bill Author
Bill Co-Author(s):