BILL NUMBER: AB 1314 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 18, 2011
An act to amend Sections 44272.5 44272
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: investment
plan. Program.
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 authorize costs incurred from the date a proposed
award is noticed to be counted as nonstate matching funds.
This
The bill would revise and recast the
provisions relating to this the
investment plan . These changes would include requiring the
commission to adopt an investment plan every two years
for the program by making these provisions applicable only to
investment plan updates .
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 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 to develop and deploy technology 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. Costs
incurred from the date a proposed award is noticed may be
counted as nonstate matching funds. The commission may adopt further
requirements for the purposes of this paragraph. The commission is
not liable for costs incurred pursuant to this paragraph if the
commission does not give final approval for the project or the
proposed recipient does not meet requirements adopted by the
commission pursuant to this paragraph.
(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
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 nonroad 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).
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 concurrent with the submittal of the Governor's Budget,
the commission shall submit a draft update to the
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 update for the
2012-13 fiscal year, the commission shall submit the final investment
plan update 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 of the investment plan update
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 investment plan update
is approved. 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 earlier time as 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 investment
plan, including periodic revisions updates
to the 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 investment
plan update 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 draft update to the investment plan
concurrent with the Governor's Budget, along with timely notification
of significant modifications to the investment plan update
thereafter, 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 44272.5 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.
(b) (1) The commission shall create an advisory body. 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).
(2) Membership of the advisory body created pursuant to this
subdivision 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
adopting each final investment 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) 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, to the Joint Legislative Budget
Committee and all relevant policy and fiscal committees of the
Legislature.
(b) 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 to the Joint
Legislative Budget Committee and all relevant policy and fiscal
committees of the Legislature.
(c) Subsequent to the adoption of each final investment plan, 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 from the draft investment
plan submitted pursuant to subdivision (a) is 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 an
earlier time 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 each investment
plan, including any revisions to each plan, communicate the
commission's strategic vision and priorities with respect to the
development of alternative and renewable fuel and vehicle
technologies, and 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 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 each biennial draft investment plan concurrent with the
Governor's Budget, along with timely notification of significant
modifications to the investment plan 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.