Amended in Assembly May 13, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 8


Introduced by Assembly Members Perea and Skinner

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(Coauthors: Senators Cannella and Correa)

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December 3, 2012


An act to amend Sections 41081, 44060.5, 44225, 44229, 44275, 44280, 44281, 44282, 44283, 44287, 44299.1, and 44299.2 of, and to add Sections 43018.9, 43867.5, and 43867.6 to, the Health and Safety Code, to amend Sections 42885 and 42889 of the Public Resources Code, and to amend Sections 9250.1, 9250.2, 9261.1, and 9853.6 of the Vehicle Code, relating to vehicular air pollution, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 8, as amended, Perea. Alternative fuel and vehicle technologies: funding programs.

(1) Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission (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. Existing law requires the commission to develop and adopt an investment plan to determine priorities and opportunities for the program.

This bill would provide that the State Air Resources Board (state board), until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the state board to aggregate and make available to the public, no later than January 1, 2014, and everybegin delete twoend deletebegin insert 2end insert years thereafter, the number of vehicles that automobile manufacturers project to be sold or leased, as reported to the state board. The bill would require the commission to allocate $20 million each fiscal year, as specified, and up to $20 million each fiscal year thereafter, as specified, for purposes of achieving a hydrogen fueling network sufficient to provide convenient fueling to vehicle owners, and expand that network as necessary to support a growing market for vehicles requiring hydrogen fuel, until there are at least 100 publicly available hydrogen fueling stations. The bill, on or before December 31, 2015, and annually thereafter, would require the commission and the state board to jointly review and report on the progress toward establishing a hydrogen fueling network that provides the coverage and capacity to fuel vehicles requiring hydrogen fuel that are being placed into operation in the state, as specified. The bill would authorize the commission to design grants, loan incentive programs, revolving loan programs, and other forms of financial assistance, as specified, for purposes of assisting in the implementation of these provisions. The bill, no later than July 1, 2013, would require the state board and air districts to jointly convene working groups to evaluate the specified policies and goals of specified programs.

(2) Existing law requires the commission, in partnership with the state board, to develop and adopt a state plan to increase the use of alternative transportation fuels.

This bill would require the commission and the state board, among other things, to coordinate efforts to measure the progress of alternative fuels use. The bill would require the commission, in consultation with the state board, on or before November 1, 2014, to update a specified economic analysis. The bill would require the commission and the state board, to evaluate how the use of new and existing investment programs could be used to increase the state alternative transportation fuels use, and evaluate how the impact of federal fuel policies and existing state policies will help increase the use of alternative transportation fuels in the state. The bill would require the commission and the state board, on or before November 1, 2015, and every 2 years thereafter, to report in the integrated energy policy report, as specified, the status of the state alternative transportation fuels use, as specified, and make specified evaluations. The bill would require the state board to include a finding on the effect of proposed regulations on state alternative transportation fuels use.

(3) Existing law, until January 1, 2016, increases vehicle registration fees, vessel registration fees, and specified service fees for identification plates by a specified amount. Existing law requires the revenue generated by the increase in those fees to be deposited in the Alternative and Renewable Fuel and Vehicle Technology Fund, and either the Air Quality Improvement Fund or the Enhanced Fleet Modernization Subaccount, as provided.

Existing law, until January 1, 2016, imposes on certain vehicles a smog abatement fee of $20, and requires a specified amount of this fee to be deposited in the Air Quality Improvement Fund and in the Alternative and Renewable Fuel and Vehicle Technology Fund.

This bill would extend those fees in the amounts required to make these deposits into the Alternative and Renewable Fuel and Vehicle Technology Fund, the Air Quality Improvement Fund, and the Enhanced Fleet Modernization Subaccount until January 1, 2024, at which time the fees would be reduced by those amounts.

(4) Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer program), which is administered by the state board, to provide grants to offset the incremental cost of eligible projects that reduce emissions of air pollutants from sources in the state and for funding a fueling infrastructure demonstration program and technology development efforts. Existing law, beginning January 1, 2015, limits the Carl Moyer program to funding projects that reduce emissions of oxides of nitrogen (NOx).

This bill would extend the current authorization for the Carl Moyer program to fund a broader range of projects that reduce emissions until January 1, 2024, and would make other conforming changes in that regard.

(5) Existing law authorizes the district board of the Sacramento Metropolitan Air Quality Management District to adopt a surcharge on motor vehicle registration fees applicable to all motor vehicles registered in the counties within that district. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 for a motor vehicle whose registration expires on or after December 31, 1990, and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4.

This bill would extendbegin insert indefinitelyend insert the $6 limitation on the surcharge until January 1, 2024, with the limit returning to $4 beginning on that date.

(6) Existing law authorizes each air pollution control and air quality management district (district) that has been designated a state nonattainment area by the state board for any motor vehicle air pollutant, except the Sacramento Air Quality Management District, to levy a surcharge on the registration fees for every motor vehicle registered in that district, as specified by the governing body of the district. Existing law requires the Department of Motor Vehicles to collect that surcharge if requested by a district, and requires the department, after deducting its administrative costs, to distribute the revenues to the districts. Existing law, until January 1, 2015, raises the limit on the amount of that surcharge from $4 to $6 and requires that $2 of the surcharge be used to implement the Carl Moyer program, as specified. Beginning January 1, 2015, existing law returns the surcharge limit to its previous amount of $4.

This bill would extendbegin insert indefinitelyend insert the $6 limitation on the surchargebegin delete until January 1, 2024, with the limit returning to $4 beginning on that dateend delete.

(7) Existing law imposes, until January 1, 2015, a California tire fee of $1.75 per tire on every person who purchases a new tire, with the revenues generated to be allocated for prescribed purposes related to disposal and use of used tires. Existing law requires that $0.75 per tire on which the fee is imposed, be deposited in the Air Pollution Control Fund, these moneys to be available upon appropriation by the Legislature for use by the state board and districts for specified purposes. Existing law reduces the tire fee to $0.75 per tire on and after January 1, 2015.

This bill wouldbegin delete, on January 1, 2015,end delete insteadbegin delete increase the limit on theend deletebegin insert establish aend insert tire feebegin delete toend deletebegin insert ofend insert $1.50 per tire until January 1, 2024, and reduce thebegin delete limitend deletebegin insert tire feeend insert to $0.75 per tire on and after January 1, 2024.

(8) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P5    1

SECTION 1.  

Section 41081 of the Health and Safety Code, as
2amended by Section 1.5 of Chapter 216 of the Statutes of 2011, is
3amended to read:

4

41081.  

(a) Subject to Article 3.7 (commencing with Section
553720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
6Government Code, or with the approval of the board of supervisors
7of each county included, in whole or in part, within the Sacramento
8district, the Sacramento district board may adopt a surcharge on
9the motor vehicle registration fees applicable to all motor vehicles
10registered in those counties within the Sacramento district whose
11boards of supervisors have adopted a resolution approving the
12surcharge. The surcharge shall be collected by the Department of
13Motor Vehicles and, after deducting the department’s
14administrative costs, the remaining funds shall be transferred to
15the Sacramento district. Prior to the adoption of any surcharge
16pursuant to this subdivision, the district board shall make a finding
17that any funds allocated to the district as a result of the adoption
18of a county transportation sales and use tax are insufficient to carry
19out the purposes of this chapter.

20(b) The surcharge shall not exceed six dollars ($6).

21(c) After consulting with the Department of Motor Vehicles on
22the feasibility thereof, the Sacramento district board may provide,
23in the surcharge adopted pursuant to subdivision (a), to exempt
24from all or part of the surcharge any category of low-emission
25motor vehicle.

26(d) Funds received by the Sacramento district pursuant to this
27section shall be used by that district as follows:

28(1) The revenues resulting from the first four dollars ($4) of
29each surcharge shall be used to implement reductions in emissions
30from vehicular sources, including, but not limited to, a clean fuels
31program and motor vehicle use reduction measures.

32(2) The revenues resulting from the next two dollars ($2) of
33each surcharge shall be used to implement the following programs
P6    1that achieve emission reductions from vehicular sources and
2off-road engines, to the extent that the district determines the
3program remediates air pollution harms created by motor vehicles
4on which the surcharge is imposed:

5(A) Projects eligible for grants under the Carl Moyer Memorial
6Air Quality Standards Attainment Program (Chapter 9
7(commencing with Section 44275) of Part 5).

8(B) The new purchase, retrofit, repower, or add-on of equipment
9for previously unregulated agricultural sources of air pollution, as
10defined in Section 39011.5, within the Sacramento district, for a
11minimum of three years from the date of adoption of an applicable
12rule or standard, or until the compliance date of that rule or
13standard, whichever is later, if the state board has determined that
14the rule or standard complies with Sections 40913, 40914, and
1541503.1, after which period of time, a new purchase, retrofit,
16repower, or add-on of equipment shall not be funded pursuant to
17this chapter. The district shall follow any guidelines developed
18under subdivision (a) of Section 44287 for awarding grants under
19this program.

20(C) The purchase of new, or retrofit of emissions control
21equipment for existing, schoolbuses pursuant to the
22Lower-Emission School Bus Program adopted by the state board.

23(D) An accelerated vehicle retirement or repair program that is
24adopted by the state board pursuant to authority granted hereafter
25by the Legislature by statute.

26(E) The replacement of onboard natural gas fuel tanks on
27schoolbuses owned by a school district that are 14 years or older,
28not to exceed twenty thousand dollars ($20,000) per bus, pursuant
29to the Lower-Emission School Bus Program adopted by the state
30board.

31(F) The enhancement of deteriorating natural gas fueling
32dispensers of fueling infrastructure operated by a school district
33with a one-time funding amount not to exceed five hundred dollars
34($500) per dispenser, pursuant to the Lower-Emission School Bus
35Program adopted by the state board.

36(e) Not more than 5 percent of the funds collected pursuant to
37this section shall be used by the district for administrative expenses.

38(f) A project funded by the program shall not be used for credit
39under any state or federal emissions averaging, banking, or trading
40program. An emission reduction generated by the program shall
P7    1not be used as marketable emission reduction credits or to offset
2any emission reduction obligation of any person or entity. Projects
3involving new engines that would otherwise generate marketable
4credits under state or federal averaging, banking, and trading
5programs shall include transfer of credits to the engine end user
6and retirement of those credits toward reducing air emissions in
7order to qualify for funding under the program. A purchase of a
8low-emission vehicle or of equipment pursuant to a corporate or
9a controlling board’s policy, but not otherwise required by law,
10shall generate surplus emissions reductions and may be funded by
11the program.

12(g) This section shall remain in effect only until January 1, 2024,
13and as of that date is repealed, unless a later enacted statute, that
14is enacted before January 1, 2024, deletes or extends that date.

15

SEC. 2.  

Section 41081 of the Health and Safety Code, as added
16by Section 2.5 of Chapter 707 of the Statutes of 2004, is amended
17to read:

18

41081.  

(a) Subject to Article 3.7 (commencing with Section
1953720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
20Government Code, or with the approval of the board of supervisors
21of each county included, in whole or in part, within the Sacramento
22district, the Sacramento district board may adopt a surcharge on
23the motor vehicle registration fees applicable to all motor vehicles
24registered in those counties within the Sacramento district whose
25boards of supervisors have adopted a resolution approving the
26surcharge. The surcharge shall be collected by the Department of
27Motor Vehicles and, after deducting the department’s
28administrative costs, the remaining funds shall be transferred to
29the Sacramento district. Prior to the adoption of any surcharge
30pursuant to this subdivision, the district board shall make a finding
31that any funds allocated to the district as a result of the adoption
32of a county transportation sales and use tax are insufficient to carry
33out the purposes of this chapter.

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34(b) The surcharge shall not exceed two dollars ($2) for each
35motor vehicle whose registration expires on or after December 31,
361989, and prior to December 31, 1990. For each motor vehicle
37whose registration expires on or after December 31, 1990, the
38surcharge shall not exceed four dollars ($4).

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39(b) The surcharge shall not exceed four dollars ($4).

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P8    1(c) After consulting with the Department of Motor Vehicles on
2the feasibility thereof, the Sacramento district board may provide,
3in the surcharge adopted pursuant to subdivision (a), to exempt
4from all or part of the surcharge any category of low-emission
5motor vehicle.

6(d) Funds received by the Sacramento district pursuant to this
7section shall be used to implement the strategy with respect to the
8reduction in emissions from vehicular sources, including, but not
9limited to, a clean fuels program and motor vehicle use reduction
10measures. Not more than 5 percent of the funds collected pursuant
11to this section shall be used by the district for administrative
12expenses.

13(e) This section shall become operative on January 1, 2024.

14

SEC. 3.  

Section 43018.9 is added to the Health and Safety
15Code
, to read:

16

43018.9.  

(a) For purposes of this section, the following terms
17have the following meanings:

18(1) “Commission” means the State Energy Resources
19Conservation and Development Commission.

20(2) “Publicly available hydrogen fueling station” means the
21equipment used to store and dispense hydrogen fuel to vehicles
22according to industry codes and standards that is open to the public.

23(b) (1) Notwithstanding any other law, the state board shall
24have no authority to enforce any element of its existing clean fuels
25outlet regulation or of any other regulation that requires or has the
26effect of requiring that any person construct, operate, or provide
27funding for the construction or operation of any publicly available
28hydrogen fueling station.

29(2) This subdivision shall become inoperative on January 1,
302024.

31(c) The state board shall aggregate and make available to the
32public no later than January 1, 2014, and every two years thereafter,
33the number of vehicles that automobile manufacturers project to
34be sold or leased, as reported to the state board pursuant to Section
352303(a) of Title 13 of the California Code of Regulations.

36(d) (1) The commission shall allocate twenty million dollars
37($20,000,000) each fiscal year, beginning July 1, 2013, through
38June 30, 2016, and up to twenty million dollars ($20,000,000) each
39fiscal year thereafter, not to exceed 20 percent of moneys
40appropriated by the Legislature from the Alternative and
P9    1Renewable Fuel and Vehicle Technology Fund, established
2pursuant to Section 44273, for purposes of achieving a hydrogen
3fueling network sufficient to provide convenient fueling to vehicle
4owners, and expand that network as necessary to support a growing
5market for vehicles requiring hydrogen fuel, until there are at least
6100 publicly available hydrogen fueling stations.

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7(2) Based on the results of the review set forth in paragraph (4),
8the commission may defer allocating the moneys set forth in
9paragraph (1) as needed to keep the number of fueling stations
10matched to the fueling needs of the vehicles.

end delete
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11(3)

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12begin insert(end insertbegin insert2)end insert Notwithstanding paragraph (1), once the commission
13determines, in consultation with the state board, that the private
14sector is establishing publicly available hydrogen fueling stations
15without the need for government support, the commission may
16cease providing funding for those stations.

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17(4)

end delete

18begin insert(end insertbegin insert3)end insert On or before December 31, 2015, and annually thereafter,
19the commission and the state board shall jointly review and report
20on progress toward establishing a hydrogen fueling network that
21provides the coverage and capacity to fuel vehicles requiring
22hydrogen fuel that are being placed into operation in the state. The
23commission and the state board shall consider the following,
24includingbegin insert,end insert but not limited to, the available plans of automobile
25manufacturers to deploy fuel cell vehicles in California and their
26progress toward achieving those plans, the rate of hydrogen fuel
27cell deployment, the length of time required to permit and construct
28hydrogen fueling stations, the coverage and capacity of the existing
29hydrogen fueling station network, and the amount and timing of
30growth in the fueling network to ensure fuel is available to these
31vehicles. The review shall also determine the remaining cost and
32timing to establish a network of 100 publicly available hydrogen
33fueling stations and whether funding from the Alternative and
34Renewable Fuel and Vehicle Technology Program remains
35necessary to achieve this goal.

36(e) To assist in the implementation of this section and maximize
37the ability to deploy fueling infrastructure as rapidly as possible
38with the assistance of private capital, the commission may design
39grants, loan incentive programs, revolving loan programs, and
40other forms of financial assistance. The commission also may enter
P10   1into an agreement with the Treasurer to provide financial assistance
2to further the purposes of this section.

3(f) Funds appropriated to the commission for the purposes of
4this section shall be available for encumbrance by the commission
5for up to four years from the date of the appropriation and for
6liquidation up to four years after expiration of the deadline to
7encumber.

8(g) Notwithstanding any other law, the state board, in
9consultation with air districts, no later than July 1, 2013, shall
10convene working groups to evaluate the policies and goals
11contained within the Carl Moyer Memorial Air Quality Standards
12Attainment Program, pursuant to Section 44280, and Assembly
13Bill 923 (Chapter 707 of the Statutes of 2004).

14

SEC. 4.  

Section 43867.5 is added to the Health and Safety
15Code
, to read:

16

43867.5.  

The Legislature finds and declares all of the following:

17(a) The state overwhelmingly relies on a single source of fuel,
18petroleum, for its transportation needs, and nearly one-half of that
19petroleum comes from overseas. This overreliance on petroleum
20leaves residents vulnerable to supply interruptions and price
21instabilities, and it leaves consumers with essentially no options
22for alternative transportation fuels.

23(b) Residents spend over twenty billion dollars
24($20,000,000,000) each year on petroleum fuel imports,
25representing a significant missed economic opportunity.

26(c) It is in the interest of the state to increase alternative fuels
27usage to reduce fuel price volatility, improve environmental quality
28and transportation energy security, and demonstrate the state’s
29continued leadership in reducing greenhouse gas emissions.

30(d) The State Alternative Fuels Plan, which was adopted by the
31state board and the State Energy Resources Conservation and
32Development Commission pursuant to Section 43866, outlined
33specific strategies and targets that would increase the use of
34alternative and nonpetroleum fuels. The strategy set a moderate
35growth goal of 26 percent penetration for alternative fuel use in
36on-road and off-road vehicles by 2022. In 2007, alternative fuels
37accounted for less than 5 percent of the transportation sector’s
38consumption.

39(e) Therefore, it is in the interest of the state to evaluate progress
40toward increasing alternative fuels usage.

P11   1

SEC. 5.  

Section 43867.6 is added to the Health and Safety
2Code
, to read:

3

43867.6.  

(a) In order to measure the progress of alternative
4fuels use for on-road and off-road vehicles in the state, it is the
5intent of the Legislature that the state board and the State Energy
6Resources Conservation and Development Commission shall
7update the analysis of the state alternative transportation fuels use
8described in this section.

9(b) The state board and the State Energy Resources Conservation
10and Development Commission shall coordinate efforts to
11implement this article.

12(c) On or before November 1, 2014, the state board and the
13State Energy Resources Conservation and Development
14Commission shall update the economic analysis used in developing
15and reviewing state board regulations to include a range of
16petroleum and alternative fuel prices to more accurately assess the
17future cost of petroleum-based and alternative fuels.

18(d) The State Energy Resources Conservation and Development
19Commission, in consultation with the state board, shall do all of
20the following:

21(1) Evaluate how the use of new and existing investment
22programs could be used to increase the state alternative
23transportation fuels use.

24(2) Evaluate how the impact of federal fuel policies and existing
25state policies will help increase the use of alternative transportation
26fuels in the state.

27(e) On or before November 1, 2015, and every two years
28thereafter consistent with and reported within the integrated energy
29policy report, pursuant to Section 25302 of the Public Resources
30Code, the state board and the State Energy Resources Conservation
31and Development Commission shall report on the status of the
32state alternative transportation fuels use analysis pursuant to
33subdivision (a) and make the evaluations required in subdivision
34(d). The report shall include details as to the quantities of
35alternative fuels used in the state during the preceding years in
36absolute terms and as a percentage of the state’s overall
37transportation fuel mix.

38(f) As part of developing relevant new and amended regulations,
39the state board shall include a finding on the effect of proposed
40regulations on the state alternative transportation fuels use.

P12   1(g) This section shall be implemented consistent with the
2environmental, public health, and sustainability considerations
3included in Sections 44271 and 44272. Further, this section does
4not preempt the California Global Warming Solutions Act of 2006
5(Division 25.5 (commencing with Section 38500)) or the programs
6and policies implemented pursuant to that act.

7(h) The state board and the State Energy Resources Conservation
8and Development Commission, in studying the state alternative
9transportation fuels use, shall seek to measure all of the following:

10(1) In-state job creation through the continued development of
11an alternative fuels industry in the state.

12(2) Economic vulnerability of residents to future costly
13petroleum fuel price spikes by the use of either petroleum fuels or
14alternative fuels and vehicles.

15(3) Alternative fuel market penetration in nonattainment areas.

16(4) Increases in access to the supply of alternative fuels and
17alternative fuel vehicles for all residents and barriers to that supply.

18

SEC. 6.  

Section 44060.5 of the Health and Safety Code is
19amended to read:

20

44060.5.  

(a) Beginning July 1, 2008, the smog abatement fee
21described in subdivision (d) of Section 44060 shall be increased
22by eight dollars ($8).

23(b) Revenues generated by the increase described in this section
24shall be distributed as follows:

25(1) The revenues generated by four dollars ($4) shall be
26deposited in the Air Quality Improvement Fund created by Section
2744274.5.

28(2) The revenues generated by four dollars ($4) shall be
29deposited in the Alternative and Renewable Fuel and Vehicle
30Technology Fund created by Section 44273.

31(c) This section shall remain in effect only until January 1, 2024,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2024, deletes or extends that date.

34

SEC. 7.  

Section 44225 of the Health and Safety Code, as
35amended by Section 3 of Chapter 707 of the Statutes of 2004, is
36amended to read:

37

44225.  

A district may increase the fee established under Section
3844223 to up to six dollars ($6). A district may increase the fee only
39if the following conditions are met:

P13   1(a) A resolution providing for both the fee increase and a
2corresponding program for expenditure of the increased fees for
3the reduction of air pollution from motor vehicles pursuant to, and
4for related planning, monitoring, enforcement, and technical studies
5necessary for the implementation of, the California Clean Air Act
6of 1988 is adopted and approved by the governing board of the
7district.

8(b) In districts with nonelected officials on their governing
9boards, the resolution shall be adopted and approved by both a
10 majority of the governing board and a majority of the board
11members who are elected officials.

12(c) An increase in fees established pursuant to this section shall
13become effective on either April 1 or October 1, as provided in
14the resolution adopted by the board pursuant to subdivision (a).

15(d) This section shall remain in effect only until January 1, 2024,
16and as of that date is repealed, unless a later enacted statute, that
17is enacted before January 1, 2024, deletes or extends that date.

18

SEC. 8.  

Section 44225 of the Health and Safety Code, as added
19by Section 3.5 of Chapter 707 of the Statutes of 2004, is amended
20to read:

21

44225.  

begin deleteOn and after April 1, 1992, a end deletebegin insertA end insertdistrict may increase
22the fee established under Section 44223begin delete toend deletebegin insert byend insert up to four dollars
23($4). A district may increase the fee only if the following conditions
24are met:

25(a) A resolution providing for both the fee increase and a
26corresponding program for expenditure of the increased fees for
27the reduction of air pollution from motor vehicles pursuant to, and
28for related planning, monitoring, enforcement, and technical studies
29necessary for the implementation of, the California Clean Air Act
30of 1988 is adopted and approved by the governing board of the
31district.

32(b) In districts with nonelected officials on their governing
33boards, the resolution shall be adopted and approved by both a
34majority of the governing board and a majority of the board
35members who are elected officials.

36(c) An increase in fees established pursuant to this section shall
37become effective on either April 1 or October 1, as provided in
38the resolution adopted by the board pursuant to subdivision (a).

39(d) This section shall become operative on January 1, 2024.

P14   1

SEC. 9.  

Section 44229 of the Health and Safety Code, as
2amended by Section 2.5 of Chapter 216 of the Statutes of 2011, is
3amended to read:

4

44229.  

(a) After deducting all administrative costs it incurs
5through collection of fees pursuant to Section 44227, the
6Department of Motor Vehicles shall distribute the revenues to
7districts, which shall use the revenues resulting from the first four
8dollars ($4) of each fee imposed to reduce air pollution from motor
9vehicles and to carry out related planning, monitoring, enforcement,
10and technical studies necessary for implementation of the California
11Clean Air Act of 1988. Fees collected by the Department of Motor
12Vehicles pursuant to this chapter shall be distributed to districts
13based upon the amount of fees collected from motor vehicles
14registered within each district.

15(b) Notwithstanding Sections 44241 and 44243, a district shall
16use the revenues resulting from the next two dollars ($2) of each
17fee imposed pursuant to Section 44227 to implement the following
18programs that the district determines remediate air pollution harms
19created by motor vehicles on which the surcharge is imposed:

20(1) Projects eligible for grants under the Carl Moyer Memorial
21Air Quality Standards Attainment Program (Chapter 9
22(commencing with Section 44275) of Part 5).

23(2) The new purchase, retrofit, repower, or add-on equipment
24for previously unregulated agricultural sources of air pollution, as
25defined in Section 39011.5, for a minimum of three years from
26the date of adoption of an applicable rule or standard, or until the
27compliance date of that rule or standard, whichever is later, if the
28state board has determined that the rule or standard complies with
29Sections 40913, 40914, and 41503.1, after which period of time,
30a new purchase, retrofit, repower, or add-on of equipment shall
31not be funded pursuant to this chapter. The districts shall follow
32any guidelines developed under subdivision (a) of Section 44287
33for awarding grants under this program.

34(3) The purchase of new, or retrofit of emissions control
35equipment for existing, schoolbuses pursuant to the
36Lower-Emission School Bus Program adopted by the state board.

37(4) An accelerated vehicle retirement or repair program that is
38adopted by the state board pursuant to authority granted hereafter
39by the Legislature by statute.

P15   1(5) The replacement of onboard natural gas fuel tanks on
2schoolbuses owned by a school district that are 14 years or older,
3not to exceed twenty thousand dollars ($20,000) per bus, pursuant
4to the Lower-Emission School Bus Program adopted by the state
5board.

6(6) The enhancement of deteriorating natural gas fueling
7dispensers of fueling infrastructure operated by a school district
8with a one-time funding amount not to exceed five hundred dollars
9($500) per dispenser, pursuant to the Lower-Emission School Bus
10Program adopted by the state board.

11(c) The Department of Motor Vehicles may annually expend
12not more than 1 percent of the fees collected pursuant to Section
1344227 on administrative costs.

14(d) A project funded by the program shall not be used for credit
15under any state or federal emissions averaging, banking, or trading
16program. An emission reduction generated by the program shall
17not be used as marketable emission reduction credits or to offset
18any emission reduction obligation of any person or entity. Projects
19involving new engines that would otherwise generate marketable
20credits under state or federal averaging, banking, and trading
21programs shall include transfer of credits to the engine end user
22and retirement of those credits toward reducing air emissions in
23order to qualify for funding under the program. A purchase of a
24low-emission vehicle or of equipment pursuant to a corporate or
25a controlling board’s policy, but not otherwise required by law,
26shall generate surplus emissions reductions and may be funded by
27the program.

28(e) This section shall remain in effect only until January 1, 2024,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2024, deletes or extends that date.

31

SEC. 10.  

Section 44229 of the Health and Safety Code, as
32added by Section 4.5 of Chapter 707 of the Statutes of 2004, is
33amended to read:

34

44229.  

(a) After deducting all administrative costs it incurs
35through collection of fees pursuant to Section 44227, the
36Department of Motor Vehicles shall distribute the revenues to
37districts which shall use the fees to reduce air pollution from motor
38vehicles and to carry out related planning, monitoring, enforcement,
39and technical studies necessary for implementation of the California
40Clean Air Act of 1988. Fees collected by the Department of Motor
P16   1Vehicles pursuant to this chapter shall be distributed to districts
2based upon the amount of fees collected from motor vehicles
3registered within each district.

4(b) The Department of Motor Vehicles may annually expend
5not more than the following percentages of the fees collected
6 pursuant to Section 44227 on administrative costs:

7(1) During the first year after the operative date of this chapter,
8not more than 5 percent of the fees collected may be used for
9administrative costs.

10(2) During the second year after the operative date of this
11chapter, not more than 3 percent of the fees collected may be used
12for administrative costs.

13(3) During any year subsequent to the second year after the
14operative date of this chapter, not more than 1 percent of the fees
15collected may be used for administrative costs.

16(c) This section shall become operative on January 1, 2024.

17

SEC. 11.  

Section 44275 of the Health and Safety Code, as
18amended by Section 5 of Chapter 707 of the Statutes of 2004, is
19amended to read:

20

44275.  

(a) As used in this chapter, the following terms have
21the following meanings:

22(1) “Advisory board” means the Carl Moyer Program Advisory
23Board created by Section 44297.

24(2) “Btu” means British thermal unit.

25(3) “Commission” means the State Energy Resources
26Conservation and Development Commission.

27(4) “Cost-effectiveness” means dollars provided to a project
28pursuant to subdivision (d) of Section 44283 for each ton of
29covered emission reduction attributed to a project or to the program
30as a whole. In calculating cost-effectiveness, one-time grants of
31funds made at the beginning of a project shall be annualized using
32a time value of public funds or discount rate determined for each
33project by the state board, taking into account the interest rate on
34bonds, interest earned by state funds, and other factors as
35determined appropriate by the state board. Cost-effectiveness shall
36be calculated by dividing annualized costs by average annual
37emissions reduction. The state board, in consultation with the
38districts and concerned members of the public, shall establish
39appropriate cost-effective limits for oxides of nitrogen, particulate
40matter, and reactive organic gases and a reasonable system for
P17   1comparing the cost-effectiveness of proposed projects as described
2in subdivision (a) of Section 44283.

3(5) “Covered emissions” include emissions of oxides of nitrogen,
4particulate matter, and reactive organic gases from any covered
5source.

6(6) “Covered engine” includes any internal combustion engine
7or electric motor and drive powering a covered source.

8(7) “Covered source” includes on-road vehiclesbegin insert,end insert off-road
9nonrecreational equipment and vehicles, locomotives, diesel marine
10vessels, agricultural sources of air pollution, as defined in Section
1139011.5, and, as determined by the state board, other high-emitting
12engine categories.

13(8) “Covered vehicle” includes any vehicle or piece of
14equipment powered by a covered engine.

15(9) “District” means a county air pollution control district or an
16air quality management district.

17(10) “Fund” means the Carl Moyer Memorial Air Quality
18Standards Attainment Trust Fund created by Section 44299.

19(11) “Mobile Source Air Pollution Reduction Review
20Committee” means the Mobile Source Air Pollution Reduction
21Review Committee created by Section 44244.

22(12) “Incremental cost” means the cost of the project less a
23baseline cost that would otherwise be incurred by the applicant in
24the normal course of business. Incremental costs may include
25added lease or fuel costs pursuant to Section 44283 as well as
26incremental capital costs.

27(13) “New very low emission vehicle” means a heavy-duty
28vehicle that qualifies as a very low emission vehicle when it is a
29new vehicle, where new vehicle has the same meaning as defined
30in Section 430 of the Vehicle Code, or that is modified with the
31approval and warranty of the original equipment manufacturer to
32qualify as a very low emission vehicle within 12 months of delivery
33to an owner for private or commercial use.

34(14) “NOx” means oxides of nitrogen.

35(15) “Program” means the Carl Moyer Memorial Air Quality
36Standards Attainment Program created by subdivision (a) of
37Section 44280.

38(16) “Repower” means replacing an engine with a different
39engine. The term repower, as used in this chapter, generally refers
40to replacing an older, uncontrolled engine with a new,
P18   1emissions-certified engine, although replacing an older
2emissions-certified engine with a newer engine certified to lower
3emissions standards may be eligible for funding under this program.

4(17) “Retrofit” means making modifications to the engine and
5 fuel system such that the retrofitted engine does not have the same
6specifications as the original engine.

7(18) “Very low emission vehicle” means a heavy-duty vehicle
8with emissions significantly lower than otherwise applicable
9baseline emission standards or uncontrolled emission levels
10pursuant to Section 44282.

11(b) This section shall remain in effect only until January 1, 2024,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2024, deletes or extends that date.

14

SEC. 12.  

Section 44275 of the Health and Safety Code, as
15added by Section 5.5 of Chapter 707 of the Statutes of 2004, is
16amended to read:

17

44275.  

(a) As used in this chapter, the following terms have
18the followingbegin delete meaning:end deletebegin insert meanings:end insert

19(1) “Advisory board” means the Carl Moyer Program Advisory
20Board created by Section 44297.

21(2) “Btu” means British thermal unit.

22(3) “Commission” means the State Energy Resources
23Conservation and Development Commission.

24(4) “Cost-effectiveness” means dollars provided to a project
25pursuant to subdivision (d) of Section 44283 for each ton of NOx
26 reduction attributed to a project or to the program as a whole. In
27calculating cost-effectiveness, one-time grants of funds made at
28the beginning of a project shall be annualized using a time value
29of public funds or discount rate determined for each project by the
30state board, taking into account the interest rate on bonds, interest
31earned by state funds, and other factors as determined appropriate
32by the state board. Cost-effectiveness shall be calculated by
33dividing annualized costs by average annual emissions reduction
34of NOx in this state.

35(5) “Covered engine” includes any internal combustion engine
36or electric motor and drive powering a covered source.

37(6) “Covered source” includes on-road vehicles of 14,000
38poundsbegin delete GVWRend deletebegin insert gross vehicle weight rating (GVWR)end insert or greater,
39off-road nonrecreational equipment and vehicles, locomotives,
40diesel marine vessels, stationary agricultural engines, and, as
P19   1determined by the state board, other high-emitting diesel engine
2categories.

3(7) “Covered vehicle” includes any vehicle or piece of
4equipment powered by a covered engine.

5(8) “District” means a county air pollution control district or an
6air quality management district.

7(9) “Fund” means the Carl Moyer Memorial Air Quality
8Standards Attainment Trust Fund created by Section 44299.

9(10) “Mobile Source Air Pollution Reduction Review
10Committee” means the Mobile Source Air Pollution Reduction
11Review Committee created by Section 44244.

12(11) “Incremental cost” means the cost of the project less a
13baseline cost that would otherwise be incurred by the applicant in
14the normal course of business. Incremental costs may include
15added lease or fuel costs pursuant to Section 44283 as well as
16incremental capital costs.

17(12) “New very low emission vehicle” means a vehicle that
18qualifies as a very low emission vehicle when it is a new vehicle,
19where new vehicle has the same meaning as defined in Section
20430 of the Vehicle Code, or that is modified with the approval and
21warranty of the original equipment manufacturer to qualify as a
22very low emission vehicle within 12 months of delivery to an
23owner for private or commercial use.

24(13) “NOx” means oxides of nitrogen.

25(14) “Program” means the Carl Moyer Memorial Air Quality
26Standards Attainment Program created by subdivision (a) of
27Section 44280.

28(15) “Repower” means replacing an engine with a different
29engine. The term repower, as used in this chapter, generally refers
30to replacing an older, uncontrolled engine with a new,
31emissions-certified engine, although replacing an older
32emissions-certified engine with a newer engine certified to lower
33emissions standards may be eligible for funding under this program.

34(16) “Retrofit” means making modifications to the engine and
35fuel system such that the retrofitted engine does not have the same
36specifications as the original engine.

37(17) “Very low emission vehicle” means a vehicle with
38emissions significantly lower than otherwise applicable baseline
39emission standards or uncontrolled emission levels pursuant to
40 Section 44282.

P20   1(b) This section shall become operative on January 1, 2024.

2

SEC. 13.  

Section 44280 of the Health and Safety Code, as
3amended by Section 6 of Chapter 707 of the Statutes of 2004, is
4amended to read:

5

44280.  

(a) There is hereby created the Carl Moyer Memorial
6Air Quality Standards Attainment Program. The program shall be
7administered by the state board in accordance with this chapter.
8The administration of the program may be delegated to the districts.

9(b) The program shall provide grants to offset the incremental
10cost of projects that reduce covered emissions from covered sources
11in California. Eligibility for grant awards shall be determined by
12the state board, in consultation with the districts, in accordance
13with this chapter.

14(c) The program shall also provide funding for a fueling
15infrastructure demonstration program and for technology
16development efforts that are expected to result in commercially
17available technologies in the near-term that would improve the
18ability of the program to achieve its goals. The infrastructure
19demonstration and technology development portions of the program
20shall be managed by the commission, in consultation with the state
21board.

22(d) This section shall remain in effect only until January 1, 2024,
23and as of that date is repealed, unless a later enacted statute, that
24is enacted before January 1, 2024, deletes or extends that date.

25

SEC. 14.  

Section 44280 of the Health and Safety Code, as
26added by Section 6.5 of Chapter 707 of the Statutes of 2004, is
27amended to read:

28

44280.  

(a) There is hereby created the Carl Moyer Memorial
29Air Quality Standards Attainment Program. The program shall be
30administered by the state board in accordance with this chapter.
31The administration of the program may be delegated to the districts.

32(b) The program shall provide grants to offset the incremental
33cost of projects that reduce emissions of NOx from covered sources
34in California. Eligibility for grant awards shall be determined by
35the state board, in consultation with the districts, in accordance
36with this chapter.

37(c) The program shall also provide funding for a fueling
38infrastructure demonstration program and for technology
39development efforts that are expected to result in commercially
40available technologies in the near-term that would improve the
P21   1ability of the program to achieve its goals. The infrastructure
2demonstration and technology development portions of the program
3shall be managed by the commission, in consultation with the state
4board.

5(d) This section shall become operative on January 1, 2024.

6

SEC. 15.  

Section 44281 of the Health and Safety Code, as
7amended by Section 7 of Chapter 707 of the Statutes of 2004, is
8amended to read:

9

44281.  

(a) Eligible projects include, but are not limited to, any
10of the following:

11(1) Purchase of new very low or zero-emission covered vehicles
12or covered heavy-duty engines.

13(2) Emission-reducing retrofit of covered engines, or
14replacement of old engines powering covered sources with newer
15engines certified to more stringent emissions standards than the
16engine being replaced, or with electric motors or drives.

17(3) Purchase and use of emission-reducing add-on equipment
18that has been verified by the state board for covered vehicles.

19(4) Development and demonstration of practical, low-emission
20retrofit technologies, repower options, and advanced technologies
21for covered engines and vehicles with very low emissions of oxides
22of nitrogen.

23(5) Light- and medium-duty vehicle projects in compliance with
24guidelines adopted by the state board pursuant to Title 13 of the
25California Code of Regulations.

26(b) No project shall be funded under this chapter after the
27compliance date required by any local, state, or federal statute,
28rule, regulation, memoranda of agreement or understanding, or
29other legally binding document, except that an otherwise qualified
30project may be funded even if the State Implementation Plan
31assumes that the change in equipment, vehicles, or operations will
32occur, if the change is not required by the compliance date of a
33statute, regulation, or other legally binding document in effect as
34of the date the grant is awarded. No project funded by the program
35shall be used for credit under any state or federal emissions
36averaging, banking, or trading program. No emission reduction
37generated by the program shall be used as marketable emission
38reduction credits or to offset any emission reduction obligation of
39any person or entity. Projects involving new engines that would
40otherwise generate marketable credits under state or federal
P22   1averaging, banking, and trading programs shall include transfer
2of credits to the engine end user and retirement of those credits
3toward reducing air emissions in order to qualify for funding under
4the program. A purchase of a low-emission vehicle or of equipment
5pursuant to a corporate or a controlling board’s policy, but not
6otherwise required by law, shall generate surplus emissions
7reductions and may be funded by the program.

8(c) The program may also provide funding toward installation
9of fueling or electrification infrastructure as provided in Section
1044284.

11(d) Eligible applicants may be any individual, company, or
12public agency that owns one or more covered vehicles that operate
13primarily within California or otherwise contribute substantially
14to thebegin delete NOend deletebegin deletexend deletebegin delete, PM or ROGend deletebegin insert oxides of nitrogen (NOend insertbegin insertxend insertbegin insert), particulate
15matter (PM), or reactive organic gas (ROG)end insert
emissions inventory
16in California.

17(e) It is the intent of the Legislature that all emission reductions
18generated by this chapter shall contribute to public health by
19reducing, for the life of the vehicle being funded, the total amount
20of emissions in California.

21(f) This section shall remain in effect only until January 1, 2024,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2024, deletes or extends that date.

24

SEC. 16.  

Section 44281 of the Health and Safety Code, as
25added by Section 7.5 of Chapter 707 of the Statutes of 2004, is
26amended to read:

27

44281.  

(a) Eligible projects are any of the following:

28(1) Purchase of new very low or zero-emission covered vehicles
29or covered engines.

30(2) Emission-reducing retrofit of covered engines, or
31replacement of old engines powering covered sources with newer
32engines certified to more stringent emissions standards than the
33engine being replaced, or with electric motors or drives.

34(3) Purchase and use of emission-reducing add-on equipment
35for covered vehicles.

36(4) Development and demonstration of practical, low-emission
37retrofit technologies, repower options, and advanced technologies
38for covered engines and vehicles with very low emissions of oxides
39of nitrogen.

P23   1(b) No new purchase, retrofit, repower, or add-on equipment
2shall be funded under this chapter if it is required by any local,
3state, or federal statute, rule, regulation, memoranda of agreement
4or understanding, or other legally binding document, except that
5an otherwise qualified project may be funded even if the State
6Implementation Plan assumes that the change in equipment,
7vehicles, or operations will occur, if the change is not required by
8a statute, regulation, or other legally binding document in effect
9as of the date the grant is awarded. No project funded by the
10program shall be used for credit under any state or federal
11emissions averaging, banking, or trading program. No emission
12reduction generated by the program shall be used as marketable
13emission reduction credits or to offset any emission reduction
14 obligation of any entity. Projects involving new engines that would
15otherwise generate marketable credits under state or federal
16averaging, banking, and trading programs shall include transfer
17of credits to the engine end user and retirement of those credits
18toward reducing air emissions in order to qualify for funding under
19the program. A purchase of a low-emission vehicle or of equipment
20pursuant to a corporate or a controlling board’s policy, but not
21otherwise required by law, shall generate surplus emissions
22reductions and may be funded by the program.

23(c) The program may also provide funding toward installation
24of fueling or electrification infrastructure as provided in Section
2544284.

26(d) Eligible applicants may be any individual, company, or
27public agency that owns one or more covered vehicles that operate
28primarily within California or otherwise contribute substantially
29to the NOx emissions inventory in California.

30(e) It is the intent of the Legislature that all emission reductions
31generated by this chapter shall contribute to public health by
32reducing, for the life of the vehicle being funded, the total amount
33of emissions in California.

34(f) This section shall become operative on January 1, 2024.

35

SEC. 17.  

Section 44282 of the Health and Safety Code, as
36amended by Section 8 of Chapter 707 of the Statutes of 2004, is
37amended to read:

38

44282.  

The following criteria apply to all projects to be funded
39through the program except for projects funded through the
P24   1Advanced Technology Account and the Infrastructure
2Demonstration Program:

3(a)  The state board may establish project criteria, including
4minimum project life for source categories, in the guidelines
5described in Section 44287. For previously unregulated source
6categories, project criteria shall consider the timing of newly
7established regulatory requirements.

8(b) To be eligible, projects shall meet the cost-effectiveness per
9ton of coveredbegin delete emissions reducedend deletebegin insert emissions-reducedend insert requirements
10of Section 44283.

11(c) To be eligible, retrofits, repowers, and installation of add-on
12equipment for covered vehicles shall be performed, or new covered
13vehicles delivered to the end user, or covered vehicles scrapped
14on or after the date the program is implemented.

15(d) Retrofit technologies, new engines, and new vehicles shall
16be certified for sale or under experimental permit for operation in
17California.

18(e) Repower projects that replace older, uncontrolled engines
19with new, emissions-certified engines or that replace
20emissions-certified engines with new engines certified to a more
21stringent NOx emissions standard are approvable subject to the
22other applicable selection criteria. The state board shall determine
23appropriate baseline emission levels for the uncontrolled engines
24being replaced.

25(f) For heavy-duty vehicle projects, retrofit and add-on
26equipment projects shall document a NOx or PM emission
27reduction of at least 25 percent and no increase in other covered
28emissions compared to the applicable baseline emissions accepted
29by the state board for that engine year and application. The state
30board shall determine appropriate baseline emission levels.
31Acceptable documentation shall be defined by the state board.
32After study of available emission reduction technologies and after
33public notice and comment, the state board may revise the
34minimum percentage emission reduction criterion for retrofits and
35add-on equipment provided for in this section to improve the ability
36of the program to achieve its goals.

37(g) (1) For heavy-duty vehicle projects involving the purchase
38of new very low or zero-emission vehicles, engines shall be
39certified to an optional low NOx emissions standard established
40by the state board, except as provided for in paragraph (2).

P25   1(2) For heavy-duty vehicle projects involving the purchase of
2new very low or zero-emission covered vehicles for which no
3optional low NOx emission standards are available, documentation
4shall be provided showing that the low- or zero-emission engine
5emits not more than 70 percent of the NOx or NOx plus
6hydrocarbon emissions of a new engine certified to the applicable
7baseline NOx or NOx plus hydrocarbon emission standard for that
8engine and meets applicable particulate standards. The state board
9shall specify the documentation required. If no baseline emission
10standard exists for new vehicles in a particular category, the state
11board shall determine an appropriate baseline emission level for
12 comparison.

13(h) For projects other than heavy-duty vehicle projects, the state
14board shall determine appropriate criteria under the provisions of
15Section 44287.

16(i) This section shall remain in effect only until January 1, 2024,
17and as of that date is repealed, unless a later enacted statute, that
18is enacted before January 1, 2024, deletes or extends that date.

19

SEC. 18.  

Section 44282 of the Health and Safety Code, as
20added by Section 8.5 of Chapter 707 of the Statutes of 2004, is
21amended to read:

22

44282.  

The following criteria apply to all projects to be funded
23through the program except for projects funded through the
24Advanced Technology Account and the Infrastructure
25Demonstration Program:

26(a) Except for projects involving marine vessels, 75 percent or
27more of vehicle miles traveled or hours of operation shall be
28projected to be in California for at least five years following the
29grant award. Projects involving marine vessels and engines shall
30be limited to those that spend enough time operating in California
31air basins over the lifetime of the project to meet the
32cost-effectiveness criteria based on NOx reductions in California,
33as provided in Section 44283.

34(b) To be eligible, projects shall meet cost-effectiveness per ton
35of NOx reduced requirements of Section 44283.

36(c) To be eligible, retrofits, repowers, and installation of add-on
37equipment for covered vehicles shall be performed, or new covered
38vehicles delivered to the end user, on or after the date the program
39is implemented.

P26   1(d) Retrofit technologies, new engines, and new vehicles shall
2be certified for sale or under experimental permit for operation in
3California.

4(e) Repower projects that replace older, uncontrolled engines
5with new, emissions-certified engines or that replace
6emissions-certified engines with new engines certified to a more
7stringent NOx emissions standard are approvable subject to the
8other applicable selection criteria. The state board shall determine
9appropriate baseline emission levels for the uncontrolled engines
10being replaced.

11(f) Retrofit and add-on equipment projects shall document a
12NOx emission reduction of at least 25 percent and no increase in
13particulate emissions compared to the applicable baseline emissions
14accepted by the state board for that engine year and application.
15The state board shall determine appropriate baseline emission
16levels. Acceptable documentation shall be defined by the state
17board. After study of available emission reduction technologies
18and after public notice and comment, the state board may revise
19the minimum percentage NOx reduction criterion for retrofits and
20add-on equipment provided for in this section to improve the ability
21of the program to achieve its goals.

22(g) (1) For projects involving the purchase of new very low-
23or zero-emission vehicles, engines shall be certified to an optional
24low NOx emissions standard established by the state board, except
25as provided for in paragraph (2).

26(2) For projects involving the purchase of new very low or
27zero-emission covered vehicles for which no optional low NOx
28 emission standards are available, documentation shall be provided
29showing that the low- or zero-emission engine emits not more than
3070 percent of the NOx or NOx plus hydrocarbon emissions of a
31new engine certified to the applicable baseline NOx or NOx plus
32hydrocarbon emission standard for that engine and meets applicable
33particulate standards. The state board shall specify the
34documentation required. If no baseline emission standard exists
35for new vehicles in a particular category, the state board shall
36determine an appropriate baseline emission level for comparison.

37(h) This section shall become operative on January 1, 2024.

38

SEC. 19.  

Section 44283 of the Health and Safety Code, as
39amended by Section 1 of Chapter 571 of the Statutes of 2010, is
40amended to read:

P27   1

44283.  

(a) Grants shall not be made for projects with a
2cost-effectiveness, calculated in accordance with this section, of
3more than thirteen thousand six hundred dollars ($13,600) per ton
4of NOx reduced in California or a higher value that reflects state
5consumer price index adjustments on or after January 1, 2006, as
6determined by the state board. For projects obtaining reactive
7organic gas and particulate matter reductions, the state board shall
8determine appropriate adjustment factors to calculate a weighted
9cost-effectiveness.

10(b) Only covered emission reductions occurring in this state
11shall be included in the cost-effectiveness determination. The
12extent to which emissions generated at sea contribute to air quality
13in California nonattainment areas shall be incorporated into these
14methodologies based on a reasonable assessment of currently
15available information and modeling assumptions.

16(c) The state board shall develop protocols for calculating the
17surplus covered emission reductions in California from
18representative project types over the life of the project.

19(d) The cost of the covered emission reduction is the amount
20of the grant from the program, including matching funds provided
21pursuant to subdivision (e) of Section 44287, plus any other state
22funds, or funds under the district’s budget authority or fiduciary
23control, provided toward the project, not including funds described
24in paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
25The state board shall establish reasonable methodologies for
26evaluating project cost-effectiveness, consistent with the definition
27contained in paragraph (4) of subdivision (a) of Section 44275,
28and with accepted methods, taking into account a fair and
29reasonable discount rate or time value of public funds.

30(e) A grant shall not be made that, net of taxes, provides the
31applicant with funds in excess of the incremental cost of the project.
32Incremental lease costs may be capitalized according to guidelines
33adopted by the state board so that these incremental costs may be
34offset by a one-time grant award.

35(f) Funds under a district’s budget authority or fiduciary control
36may be used to pay for the incremental cost of liquid or gaseous
37fuel, other than standard gasoline or diesel, which is integral to a
38covered emission reducing technology that is part of a project
39receiving grant funding under the program. The fuel shall be
40approved for sale by the state board. The incremental fuel cost
P28   1over the expected lifetime of the vehicle may be offset by the
2district if the project as a whole, including the incremental fuel
3cost, meets all of the requirements of this chapter, including the
4maximum allowed cost-effectiveness. The state board shall develop
5an appropriate methodology for converting incremental fuel costs
6over the vehicle lifetime into an initial cost for the purposes of
7determining project cost-effectiveness. Incremental fuel costs shall
8not be included in project costs for fuels dispensed from any facility
9that was funded, in whole or in part, from the fund.

10(g) For purposes of determining any grant amount pursuant to
11this chapter, the incremental cost of any new purchase, retrofit,
12repower, or add-on equipment shall be reduced by the value of
13any current financial incentive that directly reduces the project
14price, including any tax credits or deductions, grants, or other
15public financial assistance, not including funds described in
16paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
17 Project proponents applying for funding shall be required to state
18in their application any other public financial assistance to the
19project.

20(h) For projects that would repower offroad equipment by
21replacing uncontrolled diesel engines with new, certified diesel
22engines, the state board may establish maximum grant award
23amounts per repower. A repower project shall also be subject to
24the incremental cost maximum pursuant to subdivision (e).

25(i) After study of available emission reduction technologies and
26costs and after public notice and comment, the state board may
27reduce the values of the maximum grant award criteria stated in
28this section to improve the ability of the program to achieve its
29goals. Every year the state board shall adjust the maximum
30cost-effectiveness amount established in subdivision (a) and any
31per-project maximum set by the state board pursuant to subdivision
32 (h) to account for inflation.

33(j) This section shall remain in effect only until January 1, 2024,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2024, deletes or extends that date.

36

SEC. 20.  

Section 44283 of the Health and Safety Code, as
37amended by Section 2 of Chapter 571 of the Statutes of 2010, is
38amended to read:

39

44283.  

(a) Grants shall not be made for projects with a
40cost-effectiveness, calculated in accordance with this section, of
P29   1more than twelve thousand dollars ($12,000) per ton of NOx
2 reduced in California or a higher value that reflects state consumer
3price index adjustments on or after January 1, 2024, as determined
4by the state board.

5(b) Only NOx reductions occurring in this state shall be included
6in the cost-effectiveness determination. The extent to which
7emissions generated at sea contribute to air quality in California
8nonattainment areas shall be incorporated into these methodologies
9based on a reasonable assessment of currently available information
10and modeling assumptions.

11(c) The state board shall develop protocols for calculating the
12surplus NOx reductions in California from representative project
13types over the life of the project.

14(d) The cost of the NOx reduction is the amount of the grant
15from the program, including matching funds provided pursuant to
16subdivision (e) of Section 44287, plus any other state funds, or
17funds under the district’s budget authority or fiduciary control,
18provided toward the project, not including funds described in
19paragraphs (1) and (2) of subdivision (a) of Section 44287.2. The
20state board shall establish reasonable methodologies for evaluating
21project cost-effectiveness, consistent with the definition contained
22in paragraph (4) of subdivision (a) of Section 44275, and with
23accepted methods, taking into account a fair and reasonable
24discount rate or time value of public funds.

25(e) A grant shall not be made that, net of taxes, provides the
26applicant with funds in excess of the incremental cost of the project.
27Incremental lease costs may be capitalized according to guidelines
28adopted by the state board so that these incremental costs may be
29offset by a one-time grant award.

30(f) Funds under a district’s budget authority or fiduciary control
31may be used to pay for the incremental cost of liquid or gaseous
32fuel, other than standard gasoline or diesel, which is integral to a
33NOx reducing technology that is part of a project receiving grant
34funding under the program. The fuel shall be approved for sale by
35the state board. The incremental fuel cost over the expected lifetime
36of the vehicle may be offset by the district if the project as a whole,
37including the incremental fuel cost, meets all of the requirements
38of this chapter, including the maximum allowed cost-effectiveness.
39The state board shall develop an appropriate methodology for
40converting incremental fuel costs over the vehicle lifetime into an
P30   1initial cost for the purposes of determining project
2cost-effectiveness. Incremental fuel costs shall not be included in
3project costs for fuels dispensed from any facility that was funded,
4in whole or in part, from the fund.

5(g) For purposes of determining any grant amount pursuant to
6this chapter, the incremental cost of any new purchase, retrofit,
7repower, or add-on equipment shall be reduced by the value of
8any current financial incentive that directly reduces the project
9price, including any tax credits or deductions, grants, or other
10public financial assistance, not including funds described in
11paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
12Project proponents applying for funding shall be required to state
13in their application any other public financial assistance to the
14project.

15(h) For projects that would repower offroad equipment by
16replacing uncontrolled diesel engines with new, certified diesel
17engines, the state board may establish maximum grant award
18amounts per repower. A repower project shall also be subject to
19the incremental cost maximum pursuant to subdivision (e).

20(i) After study of available emission reduction technologies and
21costs and after public notice and comment, the state board may
22reduce the values of the maximum grant award criteria stated in
23this section to improve the ability of the program to achieve its
24goals. Every year the state board shall adjust the maximum
25cost-effectiveness amount established in subdivision (a) and any
26per-project maximum set by the state board pursuant to subdivision
27(h) to account for inflation.

28(j) This section shall become operative on January 1, 2024.

29

SEC. 21.  

Section 44287 of the Health and Safety Code, as
30amended by Section 10 of Chapter 707 of the Statutes of 2004, is
31amended to read:

32

44287.  

(a) The state board shall establish or update grant
33criteria and guidelines consistent with this chapter for covered
34vehicle projects as soon as practicable, but not later than January
351, 2006. The adoption of guidelines is exempt from the rulemaking
36provisions of the Administrative Procedure Act, Chapter 3.5
37(commencing with Section 11340) of Part 1 of Division 3 of Title
382 of the Government Code. The state board shall solicit input and
39comment from the districts during the development of the criteria
40and guidelines and shall make every effort to develop criteria and
P31   1guidelines that are compatible with existing district programs that
2are also consistent with this chapter. Guidelines shall include
3protocols to calculate project cost-effectiveness. The grant criteria
4and guidelines shall include safeguards to ensure that the project
5generates surplus emissions reductions. Guidelines shall enable
6and encourage districts to cofund projects that provide emissions
7reductions in more than one district. The state board shall make
8draft criteria and guidelines available to the public 45 days before
9final adoption, and shall hold at least one public meeting to
10consider public comments before final adoption. The state board
11may develop separate guidelines and criteria for the different types
12of eligible projects described in subdivision (a) of Section 44281.

13(b) The state board, in consultation with the participating
14districts, may propose revisions to the criteria and guidelines
15established pursuant to subdivision (a) as necessary to improve
16the ability of the program to achieve its goals. A proposed revision
17shall be made available to the public 45 days before final adoption
18of the revision and the state board shall hold at least one public
19meeting to consider public comments before final adoption of the
20revision.

21(c) The state board shall reserve funds for, and disburse funds
22to, districts from the fund for administration pursuant to this section
23and Section 44299.1.

24(d) The state board shall develop guidelines for a district to
25follow in applying for the reservation of funds, in accordance with
26this chapter. It is the intent of the Legislature that district
27administration of any reserved funds be in accordance with the
28project selection criteria specified in Sections 44281, 44282, and
2944283 and all other provisions of this chapter. The guidelines shall
30be established and published by the state board as soon as
31practicable, but not later than January 1, 2006.

32(e) Funds shall be reserved by the state board for administration
33by a district that adopts an eligible program pursuant to this chapter
34and offers matching funds at a ratio of one dollar ($1) of matching
35funds committed by the district or the Mobile Source Air Pollution
36Reduction Review Committee for every two dollars ($2) committed
37from the fund. Funds available to the Mobile Source Air Pollution
38Reduction Review Committee may be counted as matching funds
39for projects in the South Coast Air Basin only if the committee
40approves the use of these funds for matching purposes. Matching
P32   1funds may be any funds under the district’s budget authority that
2are committed to be expended in accordance with the program.
3Funds committed by a port authority or a local government, in
4cooperation with a district, to be expended in accordance with the
5program may also be counted as district matching funds. Matching
6funds provided by a port authority or a local government may not
7exceed 30 percent of the total required matching funds in any
8district that applies for more than three hundred thousand dollars
9 ($300,000) of the state board funds. Only a district, or a port
10authority or a local government teamed with a district, may provide
11matching funds.

12(f) The state board may adjust the ratio of matching funds
13described in subdivision (e), if it determines that an adjustment is
14necessary in order to maximize the use of, or the air quality benefits
15provided by, the program, based on a consideration of the financial
16resources of the district.

17(g) Notwithstanding subdivision (e), a district need not provide
18matching funds for state board funds allocated to the district for
19program outreach activities pursuant to paragraph (4) of subdivision
20(a) of Section 44299.1.

21(h) A district may include within its matching funds a reasonable
22estimate of direct or in-kind costs for assistance in providing
23program outreach and application evaluation. In-kind and direct
24matching funds shall not exceed 15 percent of the total matching
25funds offered by a district. A district may also include within its
26matching funds any money spent on or after February 25, 1999,
27that would have qualified as matching funds but were not
28previously claimed as matching funds.

29(i) A district desiring a reservation of funds shall apply to the
30state board following the application guidelines established
31pursuant to this section. The state board shall approve or disapprove
32a district application not later than 60 days after receipt. Upon
33approval of any district application, the state board shall
34simultaneously approve a reservation of funding for that district
35to administer. Reserved funds shall be disbursed to the district so
36that funding of a district-approved project is not impeded.

37(j) Notwithstanding any other provision of this chapter, districts
38and the Mobile Source Air Pollution Reduction Review Committee
39shall not use funds collected pursuant to Section 41081 or Chapter
407 (commencing with Section 44220), or pursuant to Section
P33   19250.11 of the Vehicle Code, as matching funds to fund a project
2with stationary or portable engines, locomotives, or marine vessels.

3(k) Any funds reserved for a district pursuant to this section are
4available to the district for a period of not more than two years
5from the time of reservation. Funds not expended by June 30 of
6the second calendar year following the date of the reservation shall
7revert back to the state board as of that June 30, and shall be
8deposited in the Covered Vehicle Account established pursuant to
9Section 44299. The funds may then be redirected based on
10applications to the fund. Regardless of any reversion of funds back
11to the state board, the district may continue to request other
12reservations of funds for local administration. Each reservation of
13funds shall be accounted for separately, and unused funds from
14each application shall revert back to the state board as specified
15in this subdivision.

16(l) The state board shall specify a date each year when district
17applications are due. If the eligible applications received in any
18year oversubscribe the available funds, the state board shall reserve
19funds on an allocation basis, pursuant to Section 44299.2. The
20state board may accept a district application after the due date for
21a period of months specified by the state board. Funds may be
22reserved in response to those applications, in accordance with this
23chapter, out of funds remaining after the original reservation of
24funds for the year.

25(m) Guidelines for a district application shall require information
26from an applicant district to the extent necessary to meet the
27requirements of this chapter, but shall otherwise minimize the
28information required of a district.

29(n) A district application shall be reviewed by the state board
30immediately upon receipt. If the state board determines that an
31application is incomplete, the applicant shall be notified within 10
32working days with an explanation of what is missing from the
33application. A completed application fulfilling the criteria shall be
34approved as soon as practicable, but not later than 60 working days
35after receipt.

36(o) The commission, in consultation with the districts, shall
37establish project approval criteria and guidelines for infrastructure
38projects consistent with Section 44284 as soon as practicable, but
39not later than February 15, 2000. The commission shall make draft
40criteria and guidelines available to the public 45 days before final
P34   1adoption, and shall hold at least one public meeting to consider
2public comments before final adoption.

3(p) The commission, in consultation with the participating
4districts, may propose revisions to the criteria and guidelines
5established pursuant to subdivision (o) as necessary to improve
6the ability of the program to achieve its goals. A revision may be
7proposed at any time, or may be proposed in response to a finding
8made in the annual report on the program published by the state
9board pursuant to Section 44295. A proposed revision shall be
10made available to the public 45 days before final adoption of the
11revision and the commission shall hold at least one public meeting
12to consider public comments before final adoption of the revision.

13(q) Unclaimed funds will be allocated by the state board in
14accordance with Section 44299.2.

15(r) This section shall remain in effect only until January 1, 2024,
16and as of that date is repealed, unless a later enacted statute, that
17is enacted before January 1, 2024, deletes or extends that date.

18

SEC. 22.  

Section 44287 of the Health and Safety Code, as
19added by Section 10.5 of Chapter 707 of the Statutes of 2004, is
20amended to read:

21

44287.  

(a) The state board shall establish grant criteria and
22guidelines consistent with this chapter for covered vehicle projects
23as soon as practicable, but not later than January 1, 2000. The
24adoption of guidelines is exempt from the rulemaking provisions
25of the Administrative Procedure Act, Chapter 3.5 (commencing
26with Section 11340) of Part 1 of Division 3 of Title 2 of the
27Government Code. The state board shall solicit input and comment
28from the districts during the development of the criteria and
29guidelines and shall make every effort to develop criteria and
30guidelines that are compatible with existing district programs that
31are also consistent with this chapter. Guidelines shall include
32protocols to calculate project cost-effectiveness. The grant criteria
33and guidelines shall include safeguards to ensure that the project
34generates surplus emissions reductions. Guidelines shall enable
35and encourage districts to cofund projects that provide emissions
36reductions in more than one district. The state board shall make
37draft criteria and guidelines available to the public 45 days before
38final adoption, and shall hold at least one public meeting to
39consider public comments before final adoption.

P35   1(b) The state board, in consultation with the participating
2districts, may propose revisions to the criteria and guidelines
3established pursuant to subdivision (a) as necessary to improve
4the ability of the program to achieve its goals. A proposed revision
5shall be made available to the public 45 days before final adoption
6of the revision and the state board shall hold at least one public
7meeting to consider public comments before final adoption of the
8revision.

9(c) The state board shall reserve funds for, and disburse funds
10to, districts from the fund for administration pursuant to this section
11and Section 44299.1.

12(d) The state board shall develop guidelines for a district to
13follow in applying for the reservation of funds, in accordance with
14this chapter. It is the intent of the Legislature that district
15administration of any reserved funds be in accordance with the
16project selection criteria specified in Sections 44281, 44282, and
1744283 and all other provisions of this chapter. The guidelines shall
18be established and published by the state board as soon as
19practicable, but not later than January 1, 2000.

20(e) Funds shall be reserved by the state board for administration
21by a district that adopts an eligible program pursuant to this chapter
22and offers matching funds at a ratio of one dollar ($1) of matching
23funds committed by the district or the Mobile Source Air Pollution
24Reduction Review Committee for every two dollars ($2) committed
25from the fund. Funds available to the Mobile Source Air Pollution
26Reduction Review Committee may be counted as matching funds
27for projects in the South Coast Air Basin only if the committee
28approves the use of these funds for matching purposes. Matching
29funds may be any funds under the district’s budget authority that
30are committed to be expended in accordance with the program.
31Funds committed by a port authority or a local government, in
32cooperation with a district, to be expended in accordance with the
33program may also be counted as district matching funds. Matching
34funds provided by a port authority or a local government may not
35exceed 30 percent of the total required matching funds in any
36district that applies for more than three hundred thousand dollars
37($300,000) of the state board funds. Only a district, or a port
38authority or a local government teamed with a district, may provide
39matching funds.

P36   1(f) The state board may adjust the ratio of matching funds
2described in subdivision (e), if it determines that an adjustment is
3necessary in order to maximize the use of, or the air quality benefits
4provided by, the program, based on a consideration of the financial
5resources of the district.

6(g) Notwithstanding subdivision (e), a district need not provide
7matching funds for state board funds allocated to the district for
8program outreach activities pursuant to paragraph (4) of subdivision
9(a) of Section 44299.1.

10(h) A district may include within its matching funds a reasonable
11estimate of direct or in-kind costs for assistance in providing
12program outreach and application evaluation. In-kind and direct
13matching funds shall not exceed 15 percent of the total matching
14funds offered by a district. A district may also include within its
15matching funds any money spent on or after February 25, 1999,
16that would have qualified as matching funds but were not
17previously claimed as matching funds.

18(i) A district desiring a reservation of funds shall apply to the
19state board following the application guidelines established
20pursuant to this section. The state board shall approve or disapprove
21a district application not later than 60 days after receipt. Upon
22approval of any district application, the state board shall
23simultaneously approve a reservation of funding for that district
24to administer. Reserved funds shall be disbursed to the district so
25that funding of a district-approved project is not impeded.

26(j) Notwithstanding any other provision of this chapter, districts
27and the Mobile Source Air Pollution Reduction Review Committee
28shall not use funds collected pursuant to Section 41081 or Chapter
297 (commencing with Section 44220), or pursuant to Section
309250.11 of the Vehicle Code, as matching funds to fund a project
31with stationary or portable engines, locomotives, or marine vessels.

32(k) Any funds reserved for a district pursuant to this section are
33available to the district for a period of not more than two years
34from the time of reservation. Funds not expended by June 30 of
35the second calendar year following the date of the reservation shall
36revert back to the state board as of that June 30, and shall be
37deposited in the Covered Vehicle Account established pursuant to
38Section 44299. The funds may then be redirected based on
39applications to the fund. Regardless of any reversion of funds back
40to the state board, the district may continue to request other
P37   1reservations of funds for local administration. Each reservation of
2funds shall be accounted for separately, and unused funds from
3each application shall revert back to the state board as specified
4in this subdivision.

5(l) The state board shall specify a date each year when district
6applications are due. If the eligible applications received in any
7year oversubscribe the available funds, the state board shall reserve
8funds on an allocation basis, pursuant to subdivision (b) of Section
944299.1. The state board may accept a district application after
10the due date for a period of months specified by the state board.
11Funds may be reserved in response to those applications, in
12accordance with this chapter, out of funds remaining after the
13original reservation of funds for the year.

14(m) Guidelines for a district application shall require information
15from an applicant district to the extent necessary to meet the
16requirements of this chapter, but shall otherwise minimize the
17information required of a district.

18(n) A district application shall be reviewed by the state board
19immediately upon receipt. If the state board determines that an
20application is incomplete, the applicant shall be notified within 10
21working days with an explanation of what is missing from the
22application. A completed application fulfilling the criteria shall be
23approved as soon as practicable, but not later than 60 working days
24after receipt.

25(o) The state board, in consultation with the districts, shall
26establish project approval criteria and guidelines for infrastructure
27projects consistent with Section 44284 as soon as practicable, but
28not later than February 15, 2000. The commission shall make draft
29criteria and guidelines available to the public 45 days before final
30adoption, and shall hold at least one public meeting to consider
31public comments before final adoption.

32(p) The state board, in consultation with the participating
33districts, may propose revisions to the criteria and guidelines
34established pursuant to subdivision (o) as necessary to improve
35the ability of the program to achieve its goals. A revision may be
36proposed at any time, or may be proposed in response to a finding
37made in the annual report on the program published by the state
38board pursuant to Section 44295. A proposed revision shall be
39made available to the public 45 days before final adoption of the
P38   1revision and the commission shall hold at least one public meeting
2to consider public comments before final adoption of the revision.

3(q) This section shall become operative on January 1, 2024.

4

SEC. 23.  

Section 44299.1 of the Health and Safety Code, as
5amended by Section 3 of Chapter 627 of the Statutes of 2006, is
6amended to read:

7

44299.1.  

(a) To ensure that emission reductions are obtained
8as needed from pollution sources, any money deposited in or
9appropriated to the fund shall be segregated and administered as
10follows:

11(1) Not more than 2 percent of the moneys in the fund shall be
12allocated to program support and outreach costs incurred by the
13state board and the commission directly associated with
14implementing the program pursuant to this chapter. These funds
15shall be allocated to the state board and the commission in
16proportion to total program funds administered by the state board
17and the commission.

18(2) Not more than 2 percent of the moneys in the fund shall be
19allocated to direct program outreach activities. The state board
20may use these funds for program outreach contracts or may allocate
21outreach funds to participating air districts in proportion to each
22district’s allocation from the Covered Vehicle Account. The state
23board shall report on the use of outreach funds in their reports to
24the Legislature pursuant to Section 44295.

25(3) The balance shall be deposited in the Covered Vehicle
26Account to be expended to offset added costs of new very low or
27zero-emission vehicle technologies, and emission reducing
28repowers, retrofits, and add-on equipment for covered vehicles
29and engines, and other projects specified in Section 44281.

30(b) Funds in the Covered Vehicle Account shall be allocated to
31a district that submits an eligible application to the state board
32pursuant to Section 44287. The state board shall determine the
33maximum amount of annual funding from the Covered Vehicle
34Account that each district may receive. This determination shall
35be based on the population in each district as well as the relative
36importance of obtaining covered emission reductions in each
37district, specifically through the program.

38(c) Not more than 5 percent of the moneys allocated pursuant
39to this chapter to a district with a population of one million or more
40may be used by the district for indirect costs of implementation of
P39   1the program, including outreach costs that are subject to the
2limitation in paragraph (2) of subdivision (a).

3(d) Not more than 10 percent of the moneys allocated pursuant
4to this chapter to a district with a population of less than one
5million may be used by the district for indirect costs of
6implementation of the program, including outreach costs that are
7subject to the limitation in paragraph (2) of subdivision (a).

8(e) This section shall remain in effect only until January 1, 2024,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2024, deletes or extends that date.

11

SEC. 24.  

Section 44299.1 of the Health and Safety Code, as
12added by Section 11.5 of Chapter 707 of the Statutes of 2004, is
13amended to read:

14

44299.1.  

(a) To ensure that emission reductions are obtained
15as needed from pollution sources, any money deposited in or
16appropriated to the fund shall be segregated and administered as
17follows:

18(1) Ten percent, not to exceed two million dollars ($2,000,000),
19shall be allocated to the Infrastructure Demonstration Project to
20be used pursuant to Section 44284.

21(2) Ten percent shall be deposited in the Advanced Technology
22Account to be used to support research, development,
23demonstration, and commercialization of advanced low-emission
24technologies for covered sources that show promise of contributing
25to the goals of the program.

26(3) Not more than 2 percent of the moneys in the fund shall be
27allocated to program support and outreach costs incurred by the
28state board and the commission directly associated with
29implementing the program pursuant to this chapter. These funds
30shall be allocated to the state board and the commission in
31proportion to total program funds administered by the state board
32and the commission.

33(4) Not more than 2 percent of the moneys in the fund shall be
34allocated to direct program outreach activities. The state board
35may use these funds for program outreach contracts or may allocate
36outreach funds to participating air districts in proportion to each
37district’s allocation from the Covered Vehicle Account. The state
38board shall report on the use of outreach funds in their reports to
39the Legislature pursuant to Section 44295.

P40   1(5) The balance shall be deposited in the Covered Vehicle
2Account to be expended to offset added costs of new very low or
3zero-emission vehicle technologies, and emission reducing
4repowers, retrofits, and add-on equipment for covered vehicles
5and engines.

6(b) Funds in the Covered Vehicle Account shall be allocated to
7a district that submits an eligible application to the state board
8pursuant to Section 44287. The state board shall determine the
9maximum amount of annual funding from the Covered Vehicle
10Account that each district may receive. This determination shall
11be based on the population in each district as well as the relative
12importance of obtaining NOx reductions in each district,
13specifically through the program.

14(c) This section shall become operative on January 1, 2024.

15

SEC. 25.  

Section 44299.2 of the Health and Safety Code is
16amended to read:

17

44299.2.  

Funds shall be allocated to local air pollution control
18and air quality management districts, and shall be subject to
19administrative terms and conditions as follows:

20(a) Available funds shall be distributed to districts taking into
21consideration the population of the area, the severity of the air
22quality problems experienced by the population, and the historical
23allocation of the Carl Moyer Memorial Air Quality Standards
24Attainment Trust Fund, except that the south coast district shall
25be allocated a percentage of the total funds available to districts
26that is proportional to the percentage of the total state population
27residing within the jurisdictional boundaries of that district. For
28the purposes of this subdivision, population shall be determined
29by the state board based on the most recent data provided by the
30Department of Finance. The allocation to the south coast district
31shall be subtracted from the total funds available to districts. Each
32district, except the south coast district, shall be awarded a minimum
33allocation of two hundred thousand dollars ($200,000), and the
34remainder, which shall be known as the “allocation amount,” shall
35be allocated to all districts as follows:

36(1) The state board shall distribute 35 percent of the allocation
37amount to the districts in proportion to the percentage of the total
38residual state population that resides within each district’s
39boundaries. For purposes of this paragraph, “total residual state
P41   1population” means the total state population, less the total
2population that resides within the south coast district.

3(2) The state board shall distribute 35 percent of the allocation
4amount to the districts in proportion to the severity of the air quality
5problems to which each district’s population is exposed. The
6severity of the exposure shall be calculated as follows:

7(A) Each district shall be awarded severity points based on the
8district’s attainment designation and classification, as most recently
9promulgated by the federal Environmental Protection Agency for
10the National Ambient Air Quality Standard for ozone averaged
11over eight hours, as follows:

12(i) A district that is designated attainment for the federal
13eight-hour ozone standard shall be awarded one point.

14(ii) A district that is designated nonattainment for the federal
15eight-hour ozone standard shall be awarded severity points based
16on classification. Two points shall be awarded for transitional,
17basic, or marginal classifications, three points for moderate
18classification, four points for serious classification, five points for
19severe classification, six points for severe-17 classification, and
20seven points for extreme classification.

21(B) Each district shall be awarded severity points based on the
22annual diesel particulate emissions in the air basin, as determined
23by the state board. One point shall be awarded to the district, in
24increments, for each 1,000 tons of diesel particulate emissions. In
25making this determination, 0 to 999 tons shall be awarded no
26points, 1,000 to 1,999 tons shall be awarded one point, 2,000 to
272,999 tons shall be awarded two points, and so forth. If a district
28encompasses more than one air basin, the air basin with the greatest
29diesel particulate emissions shall be used to determine the points
30awarded to the district. The San Diego County Air Pollution
31Control District and the Imperial County Air Pollution Control
32District shall be awarded one additional point each to account for
33annual diesel particulate emissions transported from Mexico.

34(C) The points awarded under subparagraphs (A) and (B), shall
35be added together for each district, and the total shall be multiplied
36by the population residing within the district boundaries, to yield
37the local air quality exposure index.

38(D) The local air quality exposure index for each district shall
39be summed together to yield a total state exposure index. Funds
40shall be allocated under this paragraph to each district in proportion
P42   1to its local air quality exposure index divided by the total state
2exposure index.

3(3) The state board shall distribute 30 percent of the allocation
4amount to the districts in proportion to the allocation of funds from
5the Carl Moyer Memorial Air Quality Standards Attainment Trust
6Fund, as follows:

7(A) Because each district is awarded a minimum allocation
8pursuant to subdivision (a), there shall be no additional minimum
9allocation from the Carl Moyer historical allocation funds. The
10total amount allocated in this way shall be subtracted from total
11funding previously awarded to the district under the Carl Moyer
12Memorial Air Quality Standards Attainment Program, and the
13remainder, which shall be known as directed funds, shall be
14allocated pursuant to subparagraph (B).

15(B) Each district with a population that is greater than or equal
16to 1 percent of the state’s population shall receive an additional
17allocation based on the population of the district and the district’s
18relative share of emission reduction commitments in the State
19Implementation Plan to attain the National Ambient Air Quality
20Standard for ozone averaged over one hour. This additional
21 allocation shall be calculated as a percentage share of the directed
22funds for each district, derived using a ratio of each district’s share
23amount to the base amount, which shall be calculated as follows:

24(i) The base amount shall be the total Carl Moyer program funds
25allocated by the state board to the districts in the 2002-03 fiscal
26year, less the total of the funds allocated through the minimum
27allocation to each district in the 2002-03 fiscal year.

28(ii) The share amount shall be the allocation that each district
29received in the 2002-03 fiscal year, not including the minimum
30allocation. There shall be one share amount for each district.

31(iii) The percentage share shall be calculated for each district
32by dividing the district’s share amount by the base amount, and
33multiplying the result by the total directed funds available under
34this subparagraph.

35(b) Funds shall be distributed as expeditiously as reasonably
36practicable, and a report of the distribution shall be made available
37to the public.

38(c) All funds allocated pursuant to this section shall be expended
39as provided in the guidelines adopted pursuant to Section 44287
40within two years from the date of allocation. Funds not expended
P43   1within the two years shall be returned to the Covered Vehicle
2Account within 60 days and shall be subject to further allocation
3as follows:

4(1) Within 30 days of the deadline to return funds, the state
5board shall notify the districts of the total amount of returned funds
6available for reallocation, and shall list those districts that request
7supplemental funds from the reallocation and that are able to
8expend those funds within one year.

9(2) Within 90 days of the deadline to return funds, the state
10board shall allocate the returned funds to the districts listed
11pursuant to paragraph (1).

12(3) All supplemental funds distributed under this subdivision
13shall be expended consistent with the Carl Moyer Air Quality
14Standards Attainment Program within one year of the date of
15supplemental allocation. Funds not expended within one year shall
16be returned to the Covered Vehicle Account and shall be distributed
17at the discretion of the state board to districts, taking into
18considerationbegin delete ofend delete each district’s ability to expeditiously utilize the
19remaining funds consistent with the Carl Moyer Air Quality
20Standards Attainment Program.

21(d) This section shall remain in effect only until January 1, 2024,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2024, deletes or extends that date.

24

SEC. 26.  

Section 42885 of the Public Resources Code, as
25amended by Section 55 of Chapter 77 of the Statutes of 2006, is
26amended to read:

27

42885.  

(a) For purposes of this section, “California tire fee”
28means the fee imposed pursuant to this section.

29(b) (1) begin deleteBefore January 1, 2015, a end deletebegin insertA end insertperson who purchases a
30new tire, as defined in subdivision (g), shall pay a California tire
31fee of one dollar and seventy-five cents ($1.75) per tire.

begin delete

32(2) On and after January 1, 2015, a person who purchases a new
33tire, as defined in subdivision (g), shall pay a California tire fee
34of one dollar and fifty cents ($1.50) per tire.

35(3)

end delete

36begin insert(end insertbegin insert2)end insert The retail seller shall charge the retail purchaser the amount
37of the California tire fee as a charge that is separate from, and not
38included in, any other fee, charge, or other amount paid by the
39retail purchaser.

begin delete

40(4)

end delete

P44   1begin insert(end insertbegin insert3)end insert The retail seller shall collect the California tire fee from the
2retail purchaser at the time of sale and may retain 112 percent of
3the fee as reimbursement for any costs associated with the
4collection of the fee. The retail seller shall remit the remainder to
5the state on a quarterly schedule for deposit in the California Tire
6Recycling Management Fund, which is hereby created in the State
7Treasury.

8(c) Thebegin delete board,end deletebegin insert department,end insert or its agent authorized pursuant to
9Section 42882, shall be reimbursed for its costs of collection,
10auditing, and making refunds associated with the California Tire
11Recycling Management Fund, but not to exceed 3 percent of the
12total annual revenue deposited in the fund.

13(d) The California tire fee imposed pursuant to subdivision (b)
14shall be separately stated by the retail seller on the invoice given
15to the customer at the time of sale. Any other disposal or
16transaction fee charged by the retail seller related to the tire
17purchase shall be identified separately from the California tire fee.

18(e) A person or business who knowingly, or with reckless
19disregard, makes a false statement or representation in a document
20used to comply with this section is liable for a civil penalty for
21each violation or, for continuing violations, for each day that the
22violation continues. Liability under this section may be imposed
23in a civil action and shall not exceed twenty-five thousand dollars
24($25,000) for each violation.

25(f) In addition to the civil penalty that may be imposed pursuant
26to subdivision (e), thebegin delete boardend deletebegin insert departmentend insert may impose an
27administrative penalty in an amount not to exceed five thousand
28dollars ($5,000) for each violation of a separate provision or, for
29continuing violations, for each day that the violation continues,
30on a person who intentionally or negligently violates a permit,
31rule, regulation, standard, or requirement issued or adopted
32pursuant to this chapter. Thebegin delete boardend deletebegin insert departmentend insert shall adopt
33regulations that specify the amount of the administrative penalty
34and the procedure for imposing an administrative penalty pursuant
35to this subdivision.

36(g) For purposes of this section, “new tire” means a pneumatic
37or solid tire intended for use with on-road or off-road motor
38vehicles, motorized equipment, construction equipment, or farm
39equipment that is sold separately from the motorized equipment,
40or a new tire sold with a new or used motor vehicle, as defined in
P45   1Section 42803.5, including the spare tire, construction equipment,
2or farm equipment. “New tire” does not include retreaded, reused,
3or recycled tires.

4(h) The California tire fee shall not be imposed on a tire sold
5with, or sold separately for use on, any of the following:

6(1) A self-propelled wheelchair.

7(2) A motorized tricycle or motorized quadricycle, as defined
8in Section 407 of the Vehicle Code.

9(3) A vehicle that is similar to a motorized tricycle or motorized
10quadricycle and is designed to be operated by a person who, by
11reason of the person’s physical disability, is otherwise unable to
12move about as a pedestrian.

13(i) This section shall remain in effect only until January 1, 2024,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2024, deletes or extends that date.

16

SEC. 27.  

Section 42885 of the Public Resources Code, as added
17by Section 13.5 of Chapter 707 of the Statutes of 2004, is amended
18to read:

19

42885.  

(a) For purposes of this section, “California tire fee”
20means the fee imposed pursuant to this section.

21(b) (1) Every person who purchases a new tire, as defined in
22subdivision (g), shall pay a California tire fee of seventy-five cents
23($0.75) per tire.

24(2) The retail seller shall charge the retail purchaser the amount
25of the California tire fee as a charge that is separate from, and not
26included in, any other fee, charge, or other amount paid by the
27retail purchaser.

28(3) The retail seller shall collect the California tire fee from the
29retail purchaser at the time of sale and may retain 3 percent of the
30fee as reimbursement for any costs associated with the collection
31of the fee. The retail seller shall remit the remainder to the state
32on a quarterly schedule for deposit in the California Tire Recycling
33Management Fund, which is hereby created in the State Treasury.

34(c) Thebegin delete board,end deletebegin insert department,end insert or its agent authorized pursuant to
35Section 42882, shall be reimbursed for its costs of collection,
36auditing, and making refunds associated with the California Tire
37Recycling Management Fund, but not to exceed 3 percent of the
38total annual revenue deposited in the fund.

39(d) The California tire fee imposed pursuant to subdivision (b)
40shall be separately stated by the retail seller on the invoice given
P46   1to the customer at the time of sale. Any other disposal or
2transaction fee charged by the retail seller related to the tire
3purchase shall be identified separately from the California tire fee.

4(e) Any person or business who knowingly, or with reckless
5disregard, makes any false statement or representation in any
6document used to comply with this section is liable for a civil
7penalty for each violation or, for continuing violations, for each
8day that the violation continues. Liability under this section may
9be imposed in a civil action and shall not exceed twenty-five
10thousand dollars ($25,000) for each violation.

11(f) In addition to the civil penalty that may be imposed pursuant
12to subdivision (e), thebegin delete boardend deletebegin insert departmentend insert may impose an
13administrative penalty in an amount not to exceed five thousand
14dollars ($5,000) for each violation of a separate provision or, for
15continuing violations, for each day that the violation continues,
16on any person who intentionally or negligently violates any permit,
17rule, regulation, standard, or requirement issued or adopted
18pursuant to this chapter. Thebegin delete boardend deletebegin insert departmentend insert shall adopt
19regulations that specify the amount of the administrative penalty
20and the procedure for imposing an administrative penalty pursuant
21to this subdivision.

22(g) For purposes of this section, “new tire” means a pneumatic
23or solid tire intended for use with on-road or off-road motor
24vehicles, motorized equipment, construction equipment, or farm
25equipment that is sold separately from the motorized equipment,
26or a new tire sold with a new or used motor vehicle, as defined in
27Section 42803.5, including the spare tire, construction equipment,
28or farm equipment. “New tire” does not include retreaded, reused,
29or recycled tires.

30(h) The California tire fee may not be imposed on any tire sold
31with, or sold separately for use on, any of the following:

32(1) Any self-propelled wheelchair.

33(2) Any motorized tricycle or motorized quadricycle, as defined
34in Section 407 of the Vehicle Code.

35(3) Any vehicle that is similar to a motorized tricycle or
36motorized quadricycle and is designed to be operated by a person
37who, by reason of the person’s physical disability, is otherwise
38 unable to move about as a pedestrian.

39(i) This section shall become operative on January 1, 2024.

P47   1

SEC. 28.  

Section 42889 of the Public Resources Code, as
2amended by Section 3 of Chapter 333 of the Statutes of 2009, is
3amended to read:

4

42889.  

(a) begin deleteCommencing January 1, 2005, of end deletebegin insertOf end insertthe moneys
5collected pursuant to Section 42885, an amount equal to
6seventy-five cents ($0.75) per tire on which the fee is imposed
7shall be transferred by the State Board of Equalization to the Air
8Pollution Control Fund. The state board shall expend those moneys,
9or allocate those moneys to the districts for expenditure, to fund
10programs and projects that mitigate or remediate air pollution
11caused by tires in the state, to the extent that the state board or the
12applicable district determines that the program or project
13remediates air pollution harms created by tires upon which the fee
14described in Section 42885 is imposed.

15(b) The remaining moneys collected pursuant to Section 42885
16shall be used to fund the waste tire program, and shall be
17appropriated to thebegin delete boardend deletebegin insert departmentend insert in the annual Budget Act in
18a manner consistent with the five-year plan adopted and updated
19by thebegin delete boardend deletebegin insert departmentend insert. These moneys shall be expended for the
20payment of refunds under this chapter and for the following
21purposes:

22(1) To pay the administrative overhead cost of this chapter, not
23to exceed 6 percent of the total revenue deposited in the fund
24annually, or an amount otherwise specified in the annual Budget
25Act.

26(2) To pay the costs of administration associated with collection,
27making refunds, and auditing revenues in the fund, not to exceed
283 percent of the total revenue deposited in the fund, as provided
29in subdivision (c) of Section 42885.

30(3) To pay the costs associated with operating the tire recycling
31program specified in Article 3 (commencing with Section 42870).

32(4) To pay the costs associated with the development and
33enforcement of regulations relating to the storage of waste tires
34and used tires. Thebegin delete boardend deletebegin insert departmentend insert shall consider designating a
35city, county, or city and county as the enforcement authority of
36regulations relating to the storage of waste tires and used tires, as
37provided in subdivision (c) of Section 42850, and regulations
38relating to the hauling of waste and used tires, as provided in
39subdivision (b) of Section 42963. If thebegin delete boardend deletebegin insert departmentend insert
40 designates a local entity for that purpose, thebegin delete boardend deletebegin insert departmentend insert
P48   1 shall provide sufficient, stable, and noncompetitive funding to that
2entity for that purpose, based on available resources, as provided
3in the five-year plan adopted and updated as provided in
4subdivision (a) of Section 42885.5. Thebegin delete boardend deletebegin insert departmentend insert may
5consider and create, as appropriate, financial incentives for citizens
6who report the illegal hauling or disposal of waste tires as a means
7of enhancing local and statewide waste tire and used tire
8enforcement programs.

9(5) To pay the costs of cleanup, abatement, removal, or other
10remedial action related to waste tire stockpiles throughout the state,
11including all approved costs incurred by other public agencies
12involved in these activities by contract with thebegin delete board. Not less
13than six million five hundred thousand dollars ($6,500,000) shall
14be expended by the board during each of the following fiscal years
15for this purpose: 2001-02 to 2006-07, inclusive.end delete
begin insert department.end insert

16(6) To make studies and conduct research directed at promoting
17and developing alternatives to the landfill disposal of waste tires.

18(7) To assist in developing markets and new technologies for
19used tires and waste tires. Thebegin delete board’send deletebegin insert department’send insert expenditure
20of funds for purposes of this subdivision shall reflect the priorities
21for waste management practices specified in subdivision (a) of
22Section 40051.

23(8) To pay the costs associated with implementing and operating
24a waste tire and used tire hauler program and manifest system
25pursuant to Chapter 19 (commencing with Section 42950).

26(9) To pay the costs to create and maintain an emergency
27reserve, which shall not exceed one million dollars ($1,000,000).

28(10) To pay the costs of cleanup, abatement, or other remedial
29action related to the disposal of waste tires in implementing and
30operating the Farm and Ranch Solid Waste Cleanup and Abatement
31Grant Program established pursuant to Chapter 2.5 (commencing
32with Section 48100) of Part 7.

33(11) To fund border region activities specified in paragraph (8)
34of subdivision (b) of Section 42885.5.

35(c) This section shall remain in effect only until January 1, 2024,
36and as of that date is repealed, unless a later enacted statute that
37is enacted before January 1, 2024, deletes or extends that date.

38

SEC. 29.  

Section 42889 of the Public Resources Code, as
39amended by Section 4 of Chapter 333 of the Statutes of 2009, is
40amended to read:

P49   1

42889.  

Funding for the waste tire program shall be appropriated
2to thebegin delete boardend deletebegin insert departmentend insert in the annual Budget Act. The moneys in
3the fund shall be expended for the payment of refunds under this
4chapter and for the following purposes:

5(a) To pay the administrative overhead cost of this chapter, not
6to exceed 5 percent of the total revenue deposited in the fund
7annually, or an amount otherwise specified in the annual Budget
8Act.

9(b) To pay the costs of administration associated with collection,
10making refunds, and auditing revenues in the fund, not to exceed
113 percent of the total revenue deposited in the fund, as provided
12in subdivision (b) of Section 42885.

13(c) To pay the costs associated with operating the tire recycling
14program specified in Article 3 (commencing with Section 42870).

15(d) To pay the costs associated with the development and
16enforcement of regulations relating to the storage of waste tires
17and used tires. Thebegin delete boardend deletebegin insert departmentend insert shall consider designating a
18city, county, or city and county as the enforcement authority of
19regulations relating to the storage of waste tires and used tires, as
20provided in subdivision (c) of Section 42850, and regulations
21relating to the hauling of waste and used tires, as provided in
22 subdivision (b) of Section 42963. If thebegin delete boardend deletebegin insert departmentend insert
23 designates a local entity for that purpose, thebegin delete boardend deletebegin insert departmentend insert
24 shall provide sufficient, stable, and noncompetitive funding to that
25entity for that purpose, based on available resources, as provided
26in the five-year plan adopted and updated as provided in
27subdivision (a) of Section 42885.5. Thebegin delete boardend deletebegin insert departmentend insert may
28consider and create, as appropriate, financial incentives for citizens
29who report the illegal hauling or disposal of waste tires as a means
30of enhancing local and statewide waste tire and used tire
31enforcement programs.

32(e) To pay the costs of cleanup, abatement, removal, or other
33remedial action related to waste tire stockpiles throughout the state,
34including all approved costs incurred by other public agencies
35involved in these activities by contract with thebegin delete board. Not less
36than six million five hundred thousand dollars ($6,500,000) shall
37be expended by the board during each of the following fiscal years
38for this purpose: 2001-02 to 2006-07, inclusive.end delete
begin insert department.end insert

39(f) To fund border region activities specified in paragraph (8)
40of subdivision (b) of Section 42885.5.

P50   1(g) This section shall become operative on January 1, 2024.

2

SEC. 30.  

Section 9250.1 of the Vehicle Code is amended to
3read:

4

9250.1.  

(a) Beginning July 1, 2008, the fee described in Section
59250 shall be increased by three dollars ($3).

6(b) Two dollars ($2) of the increase shall be deposited into the
7Alternative and Renewable Fuel and Vehicle Technology Fund
8created by Section 44273 of the Health and Safety Code, and one
9dollar ($1) shall be deposited into the Enhanced Fleet
10Modernization Subaccount created by Section 44126 of the Health
11and Safety Code.

12(c) This section shall remain in effect only until January 1, 2024,
13and as of that date is repealed, unless a later enacted statute, that
14is enacted before January 1, 2024, deletes or extends that date.

15

SEC. 31.  

Section 9250.2 of the Vehicle Code, as amended by
16Section 15 of Chapter 707 of the Statutes of 2004, is amended to
17read:

18

9250.2.  

(a) The department, if requested by the Sacramento
19Metropolitan Air Quality Management District pursuant to Section
2041081 of the Health and Safety Code, shall impose and collect a
21surcharge on the registration fees for every motor vehicle registered
22in that district, not to exceed the amount of six dollars ($6), as
23specified by the governing body of that district.

24(b) This section shall remain in effect only until January 1, 2024,
25and as of that date is repealed, unless a later enacted statute, that
26is enacted before January 1, 2024, deletes or extends that date.

27

SEC. 32.  

Section 9250.2 of the Vehicle Code, as added by
28Section 15.5 of Chapter 707 of the Statutes of 2004, is amended
29to read:

30

9250.2.  

(a) The department, if requested by the Sacramento
31Metropolitan Air Quality Management District pursuant to Section
3241081 of the Health and Safety Code, shall impose and collect a
33surcharge on the registration fees for every motor vehicle registered
34begin delete in that district, not to exceed either of the following amounts,
35whichever is applicable, as specified by the governing body of that
36district:end delete

begin delete

37(1) For each motor vehicle registered in that district whose
38registration expires on or after December 31, 1989, and prior to
39December 31, 1990, two dollars ($2).

end delete

begin deleteP51   1(2) For each motor vehicle registered in that district whose
2registration expires on or after December 31, 1990, not to exceed
3four dollars ($4).end delete
begin insert in that district, not to exceed four dollars ($4).end insert

4(b) This section shall become operative on January 1, 2024.

5

SEC. 33.  

Section 9261.1 of the Vehicle Code is amended to
6read:

7

9261.1.  

(a) Beginning July 1, 2008, the fee described in Section
89261, as adjusted pursuant to Section 1678, shall be increased by
9five dollars ($5).

10(b) Two dollars and 50 cents ($2.50) of the increase shall be
11deposited into the Alternative and Renewable Fuel and Vehicle
12Technology Fund created by Section 44273 of the Health and
13Safety Code, and two dollars and fifty cents ($2.50) shall be
14deposited into the Air Quality Improvement Fund created by
15Section 44274.5 of the Health and Safety Code.

16(c) This section shall remain in effect only until January 1, 2024,
17and as of that date is repealed, unless a later enacted statute, that
18is enacted before January 1, 2024, deletes or extends that date.

19

SEC. 34.  

Section 9853.6 of the Vehicle Code is amended to
20read:

21

9853.6.  

(a) (1) Beginning July 1, 2008, the fee described in
22paragraph (1) of subdivision (b) of Section 9853 shall be increased
23by ten dollars ($10).

24(2) Five dollars ($5) of the increase shall be deposited into the
25Alternative and Renewable Fuel and Vehicle Technology Fund
26created by Section 44273 of the Health and Safety Code and five
27dollars ($5) shall be deposited into the Air Quality Improvement
28Fund created by Section 44274.5 of the Health and Safety Code.

29(b) (1) Beginning July 1, 2008, the fee described in paragraph
30(2) of subdivision (b) of Section 9853 shall be increased by twenty
31dollars ($20).

32(2) Ten dollars ($10) of the increase shall be deposited into the
33Alternative and Renewable Fuel and Vehicle Technology Fund
34created by Section 44273 of the Health and Safety Code and ten
35dollars ($10) shall be deposited into the Air Quality Improvement
36Fund created by Section 44274.5 of the Health and Safety Code.

37(c) This section shall remain in effect only until January 1, 2024,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2024, deletes or extends that date.

P52   1

SEC. 35.  

This act is an urgency statute necessary for the
2immediate preservation of the public peace, health, or safety within
3the meaning of Article IV of the Constitution and shall go into
4immediate effect. The facts constituting the necessity are:

5To ensure stable funding for programs to reduce air pollution
6for the protection of the public health and safety, it is necessary
7for this measure to take effect immediately.



O

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