BILL NUMBER: AB 1314 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 29, 2011
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Wieckowski
( Principal coauthors:
Senators Corbett and Lieu )
FEBRUARY 18, 2011
An act to amend Sections 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.
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 , including block grants administered by
public entities or 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 . The Energy Commission is required to develop and
adopt an investment plan to determine priorities and opportunities
for the program. Existing law authorizes the commission to
contract with the Treasurer and small business financial development
corporations established by the Business, Transportation and Housing
Agency to expend funds, as specified, if the expenditure is
consistent with certain existing law relating to the program.
This bill would authorize the commission to delegate to the
executive director, or his or her designee, the authority to approve
a contract, grant, loan, or other agreement or award that receives
$75,000 or less in funds from the commission, or to approve
amendments to a contract, grant, loan, or other agreement or award,
as long as the amendments do not increase the amount of
the award, change the scope of the project, or modify the purpose of
the agreement. The bill would authorize costs incurred from the
date a proposed award is noticed to be counted as nonstate matching
funds. The bill would expand eligibility for funding to include
block grants or incentive programs administered by public entities or
not-for-profit technology entities, and would authorize the
commission to adopt guidelines for implementing those programs. The
bill would also authorize the commission to advance funds to certain
entities.
The bill would revise provisions relating to the investment plan
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 that receives more
than seventy-five thousand dollars ($75,000) in funds from the
commission shall be approved at a noticed public hearing
meeting of the commission and shall be
consistent with the priorities established by the investment plan
adopted pursuant to Section 44272.5. Under this article, the
commission may delegate to the commission's executive director, or
his or her designee, the authority to approve either of the
following:
(1) A contract, grant, loan, or other agreement or award that
receives seventy-five thousand dollars ($75,000) or less in funds
from the commission.
(2) Amendments to a contract, grant, loan, or other agreement
or award as long as the amendments do not increase the amount of the
award, change the scope of the project, or modify the purpose of the
agreement.
(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 or
incentive programs administered by public entities or
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.
The commission may adopt guidelines for implementing the block grant
or incentive program, which shall be approved at a noticed public
meeting of the commission.
(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 all
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).
(3) Advance funds, pursuant to an agreement with the commission,
to any of the following:
(A) A public entity.
(B) A recipient to enable it to make advance payments to a public
entity that is a subrecipient of the funds and under a binding and
enforceable subagreement with the recipient.
(C) An administrator of a block grant program.
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 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.