BILL NUMBER: AB 1314 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 18, 2011
An act to amend Section 44272 Sections
44272.5 and 44272.7 of the Health and Safety Code, relating to
air resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1314, as amended, Wieckowski. Air resources: Alternative and
Renewable Fuel and Vehicle Technology Program.
Program: investment plan.
Existing law establishes the Alternative and Renewable Fuel and
Vehicle Technology Program, administered by the State Energy
Resources Conservation and Development Commission (Energy
Commission), to provide to specified entities, upon appropriation by
the Legislature, grants, loans, loan guarantees, revolving loans, or
other appropriate measures, for the development and deployment of
innovative technologies that would transform California's fuel and
vehicle types to help attain the state's climate change goals.
Existing law specifies that only certain projects or programs are
eligible for funding. The Energy Commission is required to
develop and adopt an investment plan to determine priorities and
opportunities for the program.
This bill would make technical, nonsubstantive changes in the
provision that establishes the Alternative and Renewable Fuel and
Vehicle Technology Program.
This bill would revise and recast the provisions relating to this
investment plan. These changes would include requiring the commission
to adopt an investment plan every two years.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 44272.5 of the
Health and Safety Code is amended to read:
44272.5. (a) The commission shall develop and adopt every
two years, consistent with the schedule described in Section 44272.7,
an investment plan to determine priorities and opportunities
for the Alternative and Renewable Fuel and Vehicle Technology Program
created pursuant to this chapter. The investment plan shall
establish priorities for investment of funds and technologies to
achieve the goals of this chapter and describe how funding will
complement existing public and private investments, including
existing state programs that further the goals of this chapter.
The
(b) (1) The
commission shall create and consult with an
advisory body as it develops the investment plan .
The advisory body shall provide information to the commission
that will assist the commission in its development of each investment
plan, including, but not limited to, all relevant technology
advancements, assessments of government and private investment
patterns, environmental assessments of fuels and vehicles in relation
to existing fleets, and barriers to developing new fuels and
vehicles. The advisory body is subject to the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code).
The commission shall, at a minimum, hold one public hearing on the
advisory body's recommendations prior to approving the investment
plan.
(b)
(2) Membership of the advisory body created
pursuant to this subdivision (a) shall
include, but is not limited to, representatives of fuel and vehicle
technology entities, labor organizations, environmental
organizations, community-based justice and public health
organizations, recreational boaters, consumer advocates, academic
institutions, workforce training groups, and private industry. The
advisory body shall also include representatives from the
Natural Resources Agency, the Business, Transportation and
Housing Agency, the Labor and Workforce Development Agency, and the
California Environmental Protection Agency.
(c) The commission shall hold at least three public workshops in
different regions of the state and one public hearing prior to
approving the adopting each final
investment plan. The commission shall annually update and
approve the plan. The commission shall reconvene and consult with the
advisory body created pursuant to subdivision (a) prior to annually
updating and approving the plan. The commission may
update a final investment plan before the end of the two-year period,
if the requirements of subdivision (c) of Section 44272.7 are met
and the commission presents its proposed changes to the advisory body
prior to adopting the updated plan.
SEC. 2. Section 44272.7 of the Health
and Safety Code is amended to read:
44272.7. (a) On or before March 15, 2011, and each
January thereafter Beginning in January of 2012, and
every two years thereafter, concurrent with the submittal of
the Governor's Budget, the commission shall submit a draft investment
plan, as developed in accordance with Section 44272.5, for
the upcoming fiscal year to the Joint Legislative Budget
Committee and all relevant policy and fiscal committees of the
Legislature.
(b) Beginning with the investment plan for the 2012-13
fiscal year Upon adoption of each final
investment plan in accordance with the requirements of subdivision
(c) of Section 44272.5 , the commission shall submit the final
investment plan for the ensuing fiscal year, as developed in
accordance with Section 44272.5, to the Joint Legislative
Budget Committee and all relevant policy and fiscal committees of the
Legislature each May concurrent with the submittal of the
Governor's May Revision to the budget .
(c) Subsequent to the approval adoption
of the each final investment plan
pursuant to subdivision (c) of Section 44272.5 ,
the commission shall, within 30 days, notify the Joint Legislative
Budget Committee and all relevant policy and fiscal committees of the
Legislature if a significant modification to the final
from the draft investment plan submitted
pursuant to subdivision (a) is approved
proposed . For purposes of this subdivision, "significant
modification" means an augmentation or reduction , the
value of which individually exceeds 50 percent of the
commission-approved allocation to an investment plan subcategory or
is at least two million dollars ($2,000,000). For other modifications
that do not meet this definition, the commission shall notify the
Joint Legislative Budget Committee and all relevant policy and fiscal
committees of the Legislature within 90 days, or at such
an earlier time as if
the aggregate total of unreported modifications equals five
million dollars ($5,000,000) or more.
(d) (1) It is the intent of the Legislature that the
each investment plan, including
periodic any revisions to the
each plan, communicate the commission's strategic vision
and priorities with respect to the development of alternative and
renewable fuel and vehicle technologies, and will
provide an analytical rationale for all proposed expenditures that
aligns with the commission's broader strategic goals for the program.
(2) It is also the intent of the Legislature that the
each investment plan highlight and explain the
rationale for any year-over-year changes to the commission's program
strategy and priorities, particularly with respect to specific
technologies or policy initiatives.
(3) Additionally, it is the intent of the Legislature that
submission of the each biennial draft
investment plan concurrent with the Governor's Budget, along with
timely notification of significant modifications to the investment
plan thereafter before the next biennial plan
, will improve legislative oversight of the program and
provide the Legislature with all of the necessary information to
fully understand how and why funds are to be allocated and
prioritized within the program.
SECTION 1. Section 44272 of the Health and
Safety Code is amended to read:
44272. (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement the
program by regulation pursuant to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The program shall provide, upon appropriation
by the Legislature, competitive grants, revolving loans, loan
guarantees, loans, or other appropriate funding measures, to public
agencies, vehicle and technology entities, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be the development and deployment of technologies and alternative and
renewable fuels in the marketplace, without adopting any one
preferred fuel or technology.
(b) A project funded by the commission shall be approved at a
noticed public hearing of the commission and shall be consistent with
the priorities established by the investment plan adopted pursuant
to Section 44272.5.
(c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
applicable:
(1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
(2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
(3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
(4) The project's ability to decrease, on a life cycle basis, the
discharge of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
(5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
(6) The project provides nonstate matching funds.
(7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
(8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
(9) The project's ability to reduce on a life cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
(10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
(11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
(d) Only the following shall be eligible for funding:
(1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
(2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
(3) Projects to produce alternative and renewable low-carbon fuels
in California.
(4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase overall
sustainability.
(5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
(6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
(7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
(8) Programs and projects to retrofit medium- and heavy-duty
on-road and non-road vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
(9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
(10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
(11) Block grants administered by not-for-profit technology
entities for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
(12) Life cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine the
impacts of increasing the use of low-carbon transportation fuels and
technologies, and to assist in the preparation of the investment plan
and program implementation.
(13) A program to provide funding for homeowners who purchase a
plug-in electric vehicle to offset costs associated with modifying
electrical sources to include a residential plug-in electric vehicle
charging station. In establishing this program, the commission shall
consider funding criteria to maximize the public benefit of the
program.
(e) The commission may make a single source or sole source award
pursuant to this section for applied research. The same requirements
set forth in Section 25620.5 of the Public Resources Code shall apply
to awards made on a single source basis or a sole source basis. This
subdivision does not authorize the commission to make a single
source or sole source award for a project or activity other than for
applied research.
(f) The commission may do both of the following:
(1) Contract with the Treasurer to expend funds through programs
implemented by the Treasurer, if the expenditure is consistent with
all of the requirements of this article and Article 1 (commencing
with Section 44270).
(2) Contract with small business financial development
corporations established by the Business, Transportation and Housing
Agency to expend funds through the Small Business Loan Guarantee
Program if the expenditure is consistent with all of the requirements
of this article and Article 1 (commencing with Section 44270).