BILL ANALYSIS Ó
AB 1314
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Date of Hearing: May 2, 2011
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 1314 (Wieckowski) - As Amended: March 31, 2011
SUBJECT : Air resources: Alternative and Renewable Fuel and
Vehicle Technology Program: investment plan.
SUMMARY : Requires the California Energy Commission (CEC) to
develop and adopt the Alternative and Renewable Fuel and Vehicle
Technology Program's (Program) investment plan biennially
instead of annually.
EXISTING LAW :
1)Creates the Program administered by CEC for the purpose of
providing funding to various entities to develop and deploy
innovative technologies that transform California's fuel and
vehicle types to help attain the state's climate change
policy.
2)Provides that only certain projects are eligible for funding
under the Program, including, among others, alternative and
renewable fuel projects to develop and improve alternative and
renewable low-carbon fuels; projects involving alternative and
renewable fuel infrastructure, fueling stations, and
equipment; and 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.
3)Requires CEC to annually develop and adopt an investment plan
to determine priorities and opportunities for the Program.
Requires CEC to submit a draft and final investment plan each
year to the Joint Legislative Budget Committee and all
relevant policy and fiscal committees of the Legislature.
4)Requires CEC to create and consult with an advisory body as it
develops the investment plan. Requires that membership of the
advisory group to include representatives from various groups
and state agencies such as fuel and vehicle technology
entities, labor organizations, environmental organizations,
the Natural Resources Agency, and the California Environmental
Protection Agency.
AB 1314
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5)Establishes the AB 118 Fund, which contributes substantially
to the Program. The AB 118 fund receives over $100 million
per year from temporary surcharges on vehicle and vessel fees.
Collection of these fees is currently authorized until 2016.
This fund also receives $10 million annually from the Public
Interest Energy Research (PIER) Program Fund.
THIS BILL :
1)Requires that CEC develop and adopt every two years an
investment plan to determine priorities and opportunities for
the Program. Requires CEC to submit a draft and final
investment plan every two years to the Joint Legislative
Budget Committee and all relevant policy and fiscal committees
of the Legislature.
2)Requires the advisory body to provide information that will
assist CEC in its development of each investment plan,
including (1) all relevant technology advancements,
assessments of government and private investment patters, (2)
environmental assessments of fuels and vehicles in relation to
existing fleets, and (3) barriers to developing new fuels and
vehicles.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background. According to the CEC's 2010-2011 AB 118
investment plan:
The Energy Commission is required to prepare an
annual investment plan to determine funding priorities
and opportunities and describes how program funding will
be used to support other public and private investments.
The program also provides a foundation for the
sustainable development and use of transportation energy
and an economic stimulus to create California jobs and
businesses by encouraging the invention and production of
the technologies and services necessary for the future
transportation system. The Energy Commission adopted its
first investment plan combining funds from fiscal year
2008-2009 and fiscal year 2009-2010 in April 2009. This
2010-2011 Investment Plan for the Alternative and
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Renewable Fuel and Vehicle Technology Program is the
funding guide for fiscal year 2010-2011?.
?.The allocations in the Ý2010-2011] investment plan
are based on possible alternative and renewable fuel
increases and advanced vehicle technology deployment,
petroleum displacement, potential greenhouse gas
reductions, the level of current public and private
funding, and feedback from stakeholders. These allocations
provide funding for commercial demonstration and deployment
in the short-, mid-, and long-term to meet program goals.
For example, funding is being provided for immediate
establishment of electric drive infrastructure for electric
vehicles ready to be deployed in 2010 to 2012 -the near
term. Funding for biofuel feedstock development and
improved production methods will provide alternative
vehicle fuels for the mid-term, and funding for hydrogen
infrastructure will help to meet petroleum and greenhouse
gas reduction goals for the long term as commercial volumes
fuel cell vehicles are introduced in 2015.
The funding allocation in the 2010-2011 investment plan includes
the following: $24.5 million to battery electric drive projects;
$13 million to hydrogen electric drive projects; $16.5 million
to gasoline substitute projects; $9 million to diesel substitute
projects; $22 million to natural gas projects; $3 million to
propane projects; $8 million to innovative technologies and
advanced fuels projects; and $12 million to market and program
development.
2)Need for the Bill. According to the author, staff cuts at CEC
and the state hiring freeze have decreased the number of staff
who administer the Program. Given the state's current fiscal
climate, it is uncertain that new staffing will be provided in
the near future. The same fiscal climate also requires the
state to release funds in a timely and efficient manner so as
to help generate much needed jobs in California. The bill
would attempt to help the agency to focus on funding
solicitations by adjusting the investment plan to a biennial
schedule and focus the time commitment by the advisory body.
REGISTERED SUPPORT / OPPOSITION :
AB 1314
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Support
CALSTART
Opposition
None on file
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092