BILL NUMBER: AB 1527 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 1, 2009
INTRODUCED BY Assembly Member Lieu
FEBRUARY 27, 2009
An act to amend Section 44283 of, and to add Section
43024 to , the Health and Safety Code, relating to air
pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 1527, as amended, Lieu. Motor vehicle emission reduction
projects.
Existing law creates the Carl Moyer Memorial Air Quality Standards
Attainment Program and the Goods Movement Emission Reduction
Program, which provide state funds to reduce emissions from motor
vehicles, as provided.
This bill would allow a motor vehicle emission reduction
project to be funded from multiple air quality programs, including
the Carl Moyer Memorial Air Quality Standards Attainment Program and
the Goods Movement Emission Reduction Program require
the State Air Resources Board to revise project guidelines to allow
funds from specified programs and funding sources to be used for a
project also funded under the Carl Moyer Memorial Air Quality
Standards Attainment Program or the Goods Movement Emission Reduction
Program without those additional public funds being
factored into the criteria emission reduction cost-effectiveness
calculations under either of those programs .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 43024 is added to the Health and Safety Code,
to read:
43024. A motor vehicle emission reduction project may be
funded from multiple programs pursuant to this division, including
the Carl Moyer Memorial Air Quality Standards Attainment Program
(Chapter 9 (commencing with Section 44275)) and the Goods Movement
Emission Reduction Program (Chapter 3.2 (commencing with Section
39625) of Part 2), if the project meets the requirements of those
programs described in this division. (a)
By January 1, 2011, the state board, in consultation with
the State Energy Resources Conservation and Development Commission,
shall revise project guidelines to allow funds from all of the
following programs or funding sources to be used for a
project also funded under the Carl Moyer Memorial Air Quality
Standards Attainment Program (Chapter 9 (commencing with Section
44275)) or the Goods Movement Emission Reduction Program (Chapter 3.2
(commencing with Section 39625) of Part 2) without those additional
public funds being factored into the criteria emission reduction
cost-effectiveness calculations under either of those programs:
(1) Federal funding.
(2) Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9).
(3) Air Quality Improvement Program (Article 3 (commencing with
Section 44274) of Chapter 8.9).
(b) Nothing in this section authorizes the expenditure of funds
for a project that does not meet all of the requirements of this
division, including requirements that require cost sharing or
matching of funds. Subdivision (a) does not apply if the additional
expenditure would not provide an incremental air quality, or
greenhouse gas emission reduction, benefit.
SEC. 2. Section 44283 of the Health and
Safety Code , as amended by Section 1 of
Chapter 627 of the Statutes of 2006, is amended to read:
44283. (a) Grants shall not be made for projects with a
cost-effectiveness, calculated in accordance with this section, of
more than thirteen thousand six hundred dollars ($13,600) per ton of
NOx reduced in California or a higher value that reflects state
consumer price index adjustments on or after January 1, 2006, as
determined by the state board. For projects obtaining reactive
organic gas and particulate matter reductions, the state board shall
determine appropriate adjustment factors to calculate a weighted
cost-effectiveness.
(b) Only covered emission reductions occurring in this state shall
be included in the cost-effectiveness determination. The extent to
which emissions generated at sea contribute to air quality in
California nonattainment areas shall be incorporated into these
methodologies based on a reasonable assessment of currently available
information and modeling assumptions.
(c) The state board shall develop protocols for calculating the
surplus covered emission reductions in California from representative
project types over the life of the project.
(d) The cost of the covered emission reduction is the amount of
the grant from the program, including matching funds provided
pursuant to subdivision (e) of Section 44287, plus any other state
funds, or funds under the district's budget authority or fiduciary
control, provided toward the project , not including funds
described in paragraphs (1) to (3), inclusive, of subdivision (a) of
Section 43024 . The state board shall establish reasonable
methodologies for evaluating project cost-effectiveness, consistent
with the definition contained in paragraph (4) of subdivision (a) of
Section 44275, and with accepted methods, taking into account a fair
and reasonable discount rate or time value of public funds.
(e) A grant shall not be made that, net of taxes, provides the
applicant with funds in excess of the incremental cost of the
project. Incremental lease costs may be capitalized according to
guidelines adopted by the state board so that these incremental costs
may be offset by a one-time grant award.
(f) Funds under a district's budget authority or fiduciary control
may be used to pay for the incremental cost of liquid or gaseous
fuel, other than standard gasoline or diesel, which is integral to a
covered emission reducing technology that is part of a project
receiving grant funding under the program. The fuel shall be approved
for sale by the state board. The incremental fuel cost over the
expected lifetime of the vehicle may be offset by the district if the
project as a whole, including the incremental fuel cost, meets all
of the requirements of this chapter, including the maximum allowed
cost-effectiveness. The state board shall develop an appropriate
methodology for converting incremental fuel costs over the vehicle
lifetime into an initial cost for the purposes of determining project
cost-effectiveness. Incremental fuel costs may not be included in
project costs for fuels dispensed from any facility that was funded,
in whole or in part, from the fund.
(g) For purposes of determining any grant amount pursuant to this
chapter, the incremental cost of any new purchase, retrofit, repower,
or add-on equipment shall be reduced by the value of any current
financial incentive that directly reduces the project price,
including any tax credits or deductions, grants, or other public
financial assistance. Project proponents applying for funding shall
be required to state in their application any other public financial
assistance to the project.
(h) For projects that would repower offroad equipment by replacing
uncontrolled diesel engines with new, certified diesel engines, the
state board may establish maximum grant award amounts per repower. A
repower project shall also be subject to the incremental cost maximum
pursuant to subdivision (e).
(i) After study of available emission reduction technologies and
costs and after public notice and comment, the state board may reduce
the values of the maximum grant award criteria stated in this
section to improve the ability of the program to achieve its goals.
Every year the state board shall adjust the maximum
cost-effectiveness amount established in subdivision (a) and any
per-project maximum set by the state board pursuant to subdivision
(h) to account for inflation.
(j) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 3. Section 44283 of the Health and
Safety Code , as amended by Section 2 of
Chapter 627 of the Statutes of 2006, is amended to read:
44283. (a) Grants shall not be made for projects with a
cost-effectiveness, calculated in accordance with this section, of
more than twelve thousand dollars ($12,000) per ton of NOx reduced in
California or a higher value that reflects state consumer price
index adjustments on or after January 1, 2015, as determined by the
state board.
(b) Only NOx reductions occurring in this state shall be included
in the cost-effectiveness determination. The extent to which
emissions generated at sea contribute to air quality in California
nonattainment areas shall be incorporated into these methodologies
based on a reasonable assessment of currently available information
and modeling assumptions.
(c) The state board shall develop protocols for calculating the
surplus NOx reductions in California from representative project
types over the life of the project.
(d) The cost of the NOx reduction is the amount of the grant from
the program, including matching funds provided pursuant to
subdivision (e) of Section 44287, plus any other state funds, or
funds under the district's budget authority or fiduciary control,
provided toward the project , not including funds described in
paragraphs (1) to (3), inclusive, of subdivision (a) of Section 43024
. The state board shall establish reasonable methodologies for
evaluating project cost-effectiveness, consistent with the
definition contained in subdivision (c)
paragraph (4) of subdivision (a) of Section 44275, and with
accepted methods, taking into account a fair and reasonable discount
rate or time value of public funds.
(e) A grant shall not be made that, net of taxes, provides the
applicant with funds in excess of the incremental cost of the
project. Incremental lease costs may be capitalized according to
guidelines adopted by the state board so that these incremental costs
may be offset by a one-time grant award.
(f) Funds under a district's budget authority or fiduciary control
may be used to pay for the incremental cost of liquid or gaseous
fuel, other than standard gasoline or diesel, which is integral to a
NOx reducing technology that is part of a project receiving grant
funding under the program. The fuel shall be approved for sale by the
state board. The incremental fuel cost over the expected lifetime of
the vehicle may be offset by the district if the project as a whole,
including the incremental fuel cost, meets all of the requirements
of this chapter, including the maximum allowed cost-effectiveness.
The state board shall develop an appropriate methodology for
converting incremental fuel costs over the vehicle lifetime into an
initial cost for the purposes of determining project
cost-effectiveness. Incremental fuel costs may not be included in
project costs for fuels dispensed from any facility that was funded,
in whole or in part, from the fund.
(g) For purposes of determining any grant amount pursuant to this
chapter, the incremental cost of any new purchase, retrofit, repower,
or add-on equipment shall be reduced by the value of any current
financial incentive that directly reduces the project price,
including any tax credits or deductions, grants, or other public
financial assistance. Project proponents applying for funding shall
be required to state in their application any other public financial
assistance to the project.
(h) For projects that would repower offroad equipment by replacing
uncontrolled diesel engines with new, certified diesel engines, the
state board may establish maximum grant award amounts per repower. A
repower project shall also be subject to the incremental cost maximum
pursuant to subdivision (e).
(i) After study of available emission reduction technologies and
costs and after public notice and comment, the state board may reduce
the values of the maximum grant award criteria stated in this
section to improve the ability of the program to achieve its goals.
Every year the state board shall adjust the maximum
cost-effectiveness amount established in subdivision (a) and any
per-project maximum set by the state board pursuant to subdivision
(h) to account for inflation.
(j) This section shall become operative on January 1, 2015.