Amended in Senate May 15, 2013

Amended in Senate April 18, 2013

Senate BillNo. 11


Introduced by Senators Pavley andbegin delete Rubioend deletebegin insert Cannellaend insert

(Principal coauthor: Senator Hill)

begin insert

(Coauthor: Senator Jackson)

end insert

December 3, 2012


An act to amend Sections 41081, 44060.5, 44225, 44229, 44272, 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

SB 11, as amended, Pavley. 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 Boardbegin delete (state board)end delete,begin insert referred to as the state board,end insert 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 every two 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. The bill would add intelligent transportation systems as a category of projects eligible for funding under the Alternative and Renewable Fuel and Vehicle Technology Program.

(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 extend 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 districtbegin delete (district)end deletebegin insert, or district,end insert 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 extend the $6 limitation on the surcharge until January 1, 2024, with the limit returning to $4 beginning on that date.

(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 would, on January 1, 2015, instead increase the tire fee to $1.50 per tire until January 1, 2024, and reduce the tire fee 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
P6    1from vehicular sources, including, but not limited to, a clean fuels
2program and motor vehicle use reduction measures.

3(2) The revenues resulting from the next two dollars ($2) of
4each surcharge shall be used to implement the following programs
5that achieve emission reductions from vehicular sources and
6off-road engines, to the extent that the district determines the
7program remediates air pollution harms created by motor vehicles
8on which the surcharge is imposed:

9(A) Projects eligible for grants under the Carl Moyer Memorial
10Air Quality Standards Attainment Program (Chapter 9
11(commencing with Section 44275) of Part 5).

12(B) The new purchase, retrofit, repower, or add-on of equipment
13for previously unregulated agricultural sources of air pollution, as
14defined in Section 39011.5, within the Sacramento district, for a
15minimum of three years from the date of adoption of an applicable
16rule or standard, or until the compliance date of that rule or
17standard, whichever is later, if the state board has determined that
18the rule or standard complies with Sections 40913, 40914, and
1941503.1, after which period of time, a new purchase, retrofit,
20repower, or add-on of equipment shall not be funded pursuant to
21this chapter. The district shall follow any guidelines developed
22under subdivision (a) of Section 44287 for awarding grants under
23this program.

24(C) The purchase of new, or retrofit of emissions control
25equipment for existing, schoolbuses pursuant to the
26Lower-Emission School Bus Program adopted by the state board.

27(D) An accelerated vehicle retirement or repair program that is
28adopted by the state board pursuant to authority granted hereafter
29by the Legislature by statute.

30(E) The replacement of onboard natural gas fuel tanks on
31schoolbuses owned by a school district that are 14 years or older,
32not to exceed twenty thousand dollars ($20,000) per bus, pursuant
33to the Lower-Emission School Bus Program adopted by the state
34board.

35(F) The enhancement of deteriorating natural gas fueling
36dispensers of fueling infrastructure operated by a school district
37with a one-time funding amount not to exceed five hundred dollars
38($500) per dispenser, pursuant to the Lower-Emission School Bus
39Program adopted by the state board.

P7    1(e) Not more than 5 percent of the funds collected pursuant to
2this section shall be used by the district for administrative expenses.

3(f) A project funded by the program shall not be used for credit
4under any state or federal emissions averaging, banking, or trading
5program. An emission reduction generated by the program shall
6not be used as marketable emission reduction credits or to offset
7any emission reduction obligation of any person or entity. Projects
8involving new engines that would otherwise generate marketable
9credits under state or federal averaging, banking, and trading
10programs shall include transfer of credits to the engine end user
11and retirement of those credits toward reducing air emissions in
12order to qualify for funding under the program. A purchase of a
13low-emission vehicle or of equipment pursuant to a corporate or
14a controlling board’s policy, but not otherwise required by law,
15shall generate surplus emissions reductions and may be funded by
16the program.

17(g) This section shall remain in effect only until January 1, 2024,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2024, deletes or extends that date.

20

SEC. 2.  

Section 41081 of the Health and Safety Code, as added
21by Section 2.5 of Chapter 707 of the Statutes of 2004, is amended
22to read:

23

41081.  

(a) Subject to Article 3.7 (commencing with Section
2453720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
25Government Code, or with the approval of the board of supervisors
26of each county included, in whole or in part, within the Sacramento
27district, the Sacramento district board may adopt a surcharge on
28the motor vehicle registration fees applicable to all motor vehicles
29registered in those counties within the Sacramento district whose
30boards of supervisors have adopted a resolution approving the
31surcharge. The surcharge shall be collected by the Department of
32Motor Vehicles and, after deducting the department’s
33administrative costs, the remaining funds shall be transferred to
34the Sacramento district. Prior to the adoption of any surcharge
35pursuant to this subdivision, the district board shall make a finding
36that any funds allocated to the district as a result of the adoption
37of a county transportation sales and use tax are insufficient to carry
38out the purposes of this chapter.

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

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.begin insert Allocations by
7the commission pursuant to this subdivision shall be subject to all
8of the requirements applicable to allocations from the Alternative
9and Renewable Fuel and Vehicle Technology Program pursuant
10to Article 2 (commencing with Section 44272) of Chapter 8.9.end insert

begin insert

11(2) The commission, in awarding funds pursuant to the
12allocations described in paragraph (1), shall, based on best
13available data and relevant stakeholder input, award moneys
14allocated in paragraph (1) according to a strategy that supports
15the deployment of an effective and efficient hydrogen fueling station
16network in a way that maximizes benefits to the public while
17minimizing costs to the state.

end insert
begin delete

18(2)

end delete

19begin insert(3)end insert Notwithstanding paragraph (1), once the commission
20determines, in consultation with the state board, that the private
21sector is establishing publicly available hydrogen fueling stations
22 without the need for government support, the commission may
23cease providing funding for those stations.

begin delete

24(3)

end delete

25begin insert(4)end insert On or before December 31, 2015, and annually thereafter,
26the commission and the state board shall jointly review and report
27on progress toward establishing a hydrogen fueling network that
28provides the coverage and capacity to fuel vehicles requiring
29hydrogen fuel that are being placed into operation in the state. The
30commission and the state board shall consider the following,
31including but not limited to, the available plans of automobile
32manufacturers to deploy fuel cell vehicles in California and their
33progress toward achieving those plans, the rate of hydrogen fuel
34cell deployment, the length of time required to permit and construct
35hydrogen fueling stations, the coverage and capacity of the existing
36hydrogen fueling station network, and the amount and timing of
37growth in the fueling network to ensure fuel is available to these
38vehicles. The review shall also determine the remaining cost and
39timing to establish a network of 100 publicly available hydrogen
40fueling stations and whether funding from the Alternative and
P10   1Renewable Fuel and Vehicle Technology Program remains
2necessary to achieve this goal.

3(e) To assist in the implementation of this section and maximize
4the ability to deploy fueling infrastructure as rapidly as possible
5with the assistance of private capital, the commission may design
6grants, loan incentive programs, revolving loan programs, and
7other forms of financial assistance. The commission also may enter
8into an agreement with the Treasurer to provide financial assistance
9to further the purposes of this section.

10(f) Funds appropriated to the commission for the purposes of
11this section shall be available for encumbrance by the commission
12for up to four years from the date of the appropriation and for
13liquidation up to four years after expiration of the deadline to
14encumber.

15(g) Notwithstanding any other law, the state board, in
16consultation with air districts, no later than July 1, 2013, shall
17convene working groups to evaluate the policies and goals
18contained within the Carl Moyer Memorial Air Quality Standards
19Attainment Program, pursuant to Section 44280, and Assembly
20Bill 923 (Chapter 707 of the Statutes of 2004).

21

SEC. 4.  

Section 43867.5 is added to the Health and Safety
22Code
, to read:

23

43867.5.  

The Legislature finds and declares all of the following:

24(a) The state overwhelmingly relies on a single source of fuel,
25petroleum, for its transportation needs, and nearly one-half of that
26petroleum comes from overseas. This overreliance on petroleum
27leaves residents vulnerable to supply interruptions and price
28instabilities, and it leaves consumers with essentially no options
29for alternative transportation fuels.

30(b) Residents spend over twenty billion dollars
31($20,000,000,000) each year on petroleum fuel imports,
32representing a significant missed economic opportunity.

33(c) It is in the interest of the state to increase alternative fuels
34usage to reduce fuel price volatility, improve environmental quality
35and transportation energy security, and demonstrate the state’s
36continued leadership in reducing greenhouse gas emissions.

37(d) The State Alternative Fuels Plan, which was adopted by the
38state board and the State Energy Resources Conservation and
39Development Commission pursuant to Section 43866, outlined
40specific strategies and targets that would increase the use of
P11   1alternative and nonpetroleum fuels. The strategy set a moderate
2growth goal of 26 percent penetration for alternative fuel use in
3onroad and off-road vehicles by 2022. In 2007, alternative fuels
4accounted for less than 5 percent of the transportation sector’s
5consumption.

6(e) Therefore, it is in the interest of the state to evaluate progress
7toward increasing alternative fuels usage.

8

SEC. 5.  

Section 43867.6 is added to the Health and Safety
9Code
, to read:

10

43867.6.  

(a) In order to measure the progress of alternative
11fuels use for onroad and off-road vehicles in the state, it is the
12intent of the Legislature that the state board and the State Energy
13Resources Conservation and Development Commission shall
14update the analysis of the state alternative transportation fuels use
15described in this section.

16(b) The state board and the State Energy Resources Conservation
17and Development Commission shall coordinate efforts to
18implement this article.

19(c) On or before November 1, 2014, the state board and the
20State Energy Resources Conservation and Development
21Commission shall update the economic analysis used in developing
22and reviewing state board regulations to include a range of
23petroleum and alternative fuel prices to more accurately assess the
24future cost of petroleum based and alternative fuels.

25(d) The State Energy Resources Conservation and Development
26Commission, in consultation with the state board, shall do all of
27the following:

28(1) Evaluate how the use of new and existing investment
29programs could be used to increase the state alternative
30transportation fuels use.

31(2) Evaluate how the impact of federal fuel policies and existing
32state policies will help increase the use of alternative transportation
33fuels in the state.

34(e) On or before November 1, 2015, and every two years
35thereafter consistent with and reported within the integrated energy
36policy report, pursuant to Section 25302 of the Public Resources
37Code, the state board and the State Energy Resources Conservation
38and Development Commission shall report on the status of the
39state alternative transportation fuels use analysis pursuant to
40subdivision (a) and make the evaluations required in subdivision
P12   1(d). The report shall include details as to the quantities of
2alternative fuels used in the state during the preceding years in
3absolute terms and as a percentage of the state’s overall
4transportation fuel mix.

5(f) As part of developing relevant new and amended regulations,
6the state board shall include a finding on the effect of proposed
7regulations on the state alternative transportation fuels use.

8(g) This section shall be implemented consistent with the
9environmental, public health, and sustainability considerations
10included in Sections 44271 and 44272. Further, this section does
11not preempt the California Global Warming Solutions Act of 2006
12(Division 25.5 (commencing with Section 38500)) or the programs
13and policies implemented pursuant to that act.

14(h) The state board and the State Energy Resources Conservation
15and Development Commission, in studying the state alternative
16transportation fuels use, shall seek to measure all of the following:

17(1) In-state job creation through the continued development of
18an alternative fuels industry in the state.

19(2) Economic vulnerability of residents to future costly
20petroleum fuel price spikes by the use of either petroleum fuels or
21alternative fuels and vehicles.

22(3) Alternative fuel market penetration in nonattainment areas.

23(4) Increases in access to the supply of alternative fuels and
24alternative fuel vehicles for all residents and barriers to that supply.

25

SEC. 6.  

Section 44060.5 of the Health and Safety Code is
26amended to read:

27

44060.5.  

(a) Beginning July 1, 2008, the smog abatement fee
28described in subdivision (d) of Section 44060 shall be increased
29by eight dollars ($8).

30(b) Revenues generated by the increase described in this section
31shall be distributed as follows:

32(1) The revenues generated by four dollars ($4) shall be
33deposited in the Air Quality Improvement Fund created by Section
3444274.5.

35(2) The revenues generated by four dollars ($4) shall be
36deposited in the Alternative and Renewable Fuel and Vehicle
37Technology Fund created by Section 44273.

38(c) This section shall remain in effect only until January 1, 2024,
39and as of that date is repealed, unless a later enacted statute, that
40is enacted before January 1, 2024, deletes or extends that date.

P13   1

SEC. 7.  

Section 44225 of the Health and Safety Code, as
2amended by Section 3 of Chapter 707 of the Statutes of 2004, is
3amended to read:

4

44225.  

A district may increase the fee established under Section
544223 to up to six dollars ($6). A district may increase the fee only
6if the following conditions are met:

7(a) A resolution providing for both the fee increase and a
8corresponding program for expenditure of the increased fees for
9the reduction of air pollution from motor vehicles pursuant to, and
10for related planning, monitoring, enforcement, and technical studies
11necessary for the implementation of, the California Clean Air Act
12of 1988 is adopted and approved by the governing board of the
13district.

14(b) In districts with nonelected officials on their governing
15boards, the resolution shall be adopted and approved by both a
16 majority of the governing board and a majority of the board
17members who are elected officials.

18(c) An increase in fees established pursuant to this section shall
19become effective on either April 1 or October 1, as provided in
20the resolution adopted by the board pursuant to subdivision (a).

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. 8.  

Section 44225 of the Health and Safety Code, as added
25by Section 3.5 of Chapter 707 of the Statutes of 2004, is amended
26to read:

27

44225.  

A district may increase the fee established under Section
2844223 by up to four dollars ($4). A district may increase the fee
29only if the following conditions are met:

30(a) A resolution providing for both the fee increase and a
31corresponding program for expenditure of the increased fees for
32the reduction of air pollution from motor vehicles pursuant to, and
33for related planning, monitoring, enforcement, and technical studies
34necessary for the implementation of, the California Clean Air Act
35of 1988 is adopted and approved by the governing board of the
36district.

37(b) In districts with nonelected officials on their governing
38boards, the resolution shall be adopted and approved by both a
39 majority of the governing board and a majority of the board
40members who are elected officials.

P14   1(c) An increase in fees established pursuant to this section shall
2become effective on either April 1 or October 1, as provided in
3the resolution adopted by the board pursuant to subdivision (a).

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

5

SEC. 9.  

Section 44229 of the Health and Safety Code, as
6amended by Section 2.5 of Chapter 216 of the Statutes of 2011, is
7amended to read:

8

44229.  

(a) After deducting all administrative costs it incurs
9through collection of fees pursuant to Section 44227, the
10Department of Motor Vehicles shall distribute the revenues to
11districts, which shall use the revenues resulting from the first four
12dollars ($4) of each fee imposed to reduce air pollution from motor
13vehicles and to carry out related planning, monitoring, enforcement,
14and technical studies necessary for implementation of the California
15Clean Air Act of 1988. Fees collected by the Department of Motor
16Vehicles pursuant to this chapter shall be distributed to districts
17based upon the amount of fees collected from motor vehicles
18registered within each district.

19(b) Notwithstanding Sections 44241 and 44243, a district shall
20use the revenues resulting from the next two dollars ($2) of each
21fee imposed pursuant to Section 44227 to implement the following
22programs that the district determines remediate air pollution harms
23created by motor vehicles on which the surcharge is imposed:

24(1) Projects eligible for grants under the Carl Moyer Memorial
25Air Quality Standards Attainment Program (Chapter 9
26(commencing with Section 44275) of Part 5).

27(2) The new purchase, retrofit, repower, or add-on equipment
28for previously unregulated agricultural sources of air pollution, as
29defined in Section 39011.5, for a minimum of three years from
30the date of adoption of an applicable rule or standard, or until the
31compliance date of that rule or standard, whichever is later, if the
32state board has determined that the rule or standard complies with
33Sections 40913, 40914, and 41503.1, after which period of time,
34a new purchase, retrofit, repower, or add-on of equipment shall
35not be funded pursuant to this chapter. The districts shall follow
36any guidelines developed under subdivision (a) of Section 44287
37for awarding grants under this program.

38(3) The purchase of new, or retrofit of emissions control
39equipment for existing, schoolbuses pursuant to the
40Lower-Emission School Bus Program adopted by the state board.

P15   1(4) An accelerated vehicle retirement or repair program that is
2adopted by the state board pursuant to authority granted hereafter
3by the Legislature by statute.

4(5) The replacement of onboard natural gas fuel tanks on
5schoolbuses owned by a school district that are 14 years or older,
6not to exceed twenty thousand dollars ($20,000) per bus, pursuant
7to the Lower-Emission School Bus Program adopted by the state
8board.

9(6) The enhancement of deteriorating natural gas fueling
10dispensers of fueling infrastructure operated by a school district
11with a one-time funding amount not to exceed five hundred dollars
12($500) per dispenser, pursuant to the Lower-Emission School Bus
13Program adopted by the state board.

14(c) The Department of Motor Vehicles may annually expend
15not more than 1 percent of the fees collected pursuant to Section
1644227 on administrative costs.

17(d) A project funded by the program shall not be used for credit
18under any state or federal emissions averaging, banking, or trading
19program. An emission reduction generated by the program shall
20not be used as marketable emission reduction credits or to offset
21any emission reduction obligation of any person or entity. Projects
22involving new engines that would otherwise generate marketable
23credits under state or federal averaging, banking, and trading
24programs shall include transfer of credits to the engine end user
25and retirement of those credits toward reducing air emissions in
26order to qualify for funding under the program. A purchase of a
27low-emission vehicle or of equipment pursuant to a corporate or
28a controlling board’s policy, but not otherwise required by law,
29shall generate surplus emissions reductions and may be funded by
30the program.

31(e) 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. 10.  

Section 44229 of the Health and Safety Code, as
35added by Section 4.5 of Chapter 707 of the Statutes of 2004, is
36amended to read:

37

44229.  

(a) After deducting all administrative costs it incurs
38through collection of fees pursuant to Section 44227, the
39Department of Motor Vehicles shall distribute the revenues to
40districts which shall use the fees to reduce air pollution from motor
P16   1vehicles and to carry out related planning, monitoring, enforcement,
2and technical studies necessary for implementation of the California
3Clean Air Act of 1988. Fees collected by the Department of Motor
4Vehicles pursuant to this chapter shall be distributed to districts
5based upon the amount of fees collected from motor vehicles
6registered within each district.

7(b) The Department of Motor Vehicles may annually expend
8not more than the following percentages of the fees collected
9 pursuant to Section 44227 on administrative costs:

10(1) During the first year after the operative date of this chapter,
11not more than 5 percent of the fees collected may be used for
12administrative costs.

13(2) During the second year after the operative date of this
14chapter, not more than 3 percent of the fees collected may be used
15for administrative costs.

16(3) During any year subsequent to the second year after the
17operative date of this chapter, not more than 1 percent of the fees
18collected may be used for administrative costs.

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

20

SEC. 11.  

Section 44272 of the Health and Safety Code is
21amended to read:

22

44272.  

(a) The Alternative and Renewable Fuel and Vehicle
23Technology Program is hereby created. The program shall be
24administered by the commission. The commission shall implement
25the program by regulation pursuant to the requirements of Chapter
263.5 (commencing with Section 11340) of Part 1 of Division 3 of
27Title 2 of the Government Code. The program shall provide, upon
28appropriation by the Legislature, competitive grants, revolving
29loans, loan guarantees, loans, or other appropriate funding
30measures, to public agencies, vehicle and technology entities,
31businesses and projects, public-private partnerships, workforce
32training partnerships and collaboratives, fleet owners, consumers,
33recreational boaters, and academic institutions to develop and
34deploy innovative technologies that transform California’s fuel
35and vehicle types to help attain the state’s climate change policies.
36The emphasis of this program shall be to develop and deploy
37technology and alternative and renewable fuels in the marketplace,
38without adopting any one preferred fuel or technology.

39(b) A project that receives more than seventy-five thousand
40dollars ($75,000) in funds from the commission shall be approved
P17   1at a noticed public meeting of the commission and shall be
2consistent with the priorities established by the investment plan
3adopted pursuant to Section 44272.5. Under this article, the
4commission may delegate to the commission’s executive director,
5or his or her designee, the authority to approve either of the
6following:

7(1) A contract, grant, loan, or other agreement or award that
8receives seventy-five thousand dollars ($75,000) or less in funds
9from the commission.

10(2) Amendments to a contract, grant, loan, or other agreement
11or award as long as the amendments do not increase the amount
12of the award, change the scope of the project, or modify the purpose
13of the agreement.

14(c) The commission shall provide preferences to those projects
15that maximize the goals of the Alternative and Renewable Fuel
16and Vehicle Technology Program, based on the following criteria,
17as applicable:

18(1) The project’s ability to provide a measurable transition from
19the nearly exclusive use of petroleum fuels to a diverse portfolio
20of viable alternative fuels that meet petroleum reduction and
21alternative fuel use goals.

22(2) The project’s consistency with existing and future state
23climate change policy and low-carbon fuel standards.

24(3) The project’s ability to reduce criteria air pollutants and air
25toxics and reduce or avoid multimedia environmental impacts.

26(4) The project’s ability to decrease, on a life-cycle basis, the
27discharge of water pollutants or any other substances known to
28damage human health or the environment, in comparison to the
29production and use of California Phase 2 Reformulated Gasoline
30or diesel fuel produced and sold pursuant to California diesel fuel
31regulations set forth in Article 2 (commencing with Section 2280)
32of Chapter 5 of Division 3 of Title 13 of the California Code of
33Regulations.

34(5) The project does not adversely impact the sustainability of
35the state’s natural resources, especially state and federal lands.

36(6) The project provides nonstate matching funds. Costs incurred
37from the date a proposed award is noticed may be counted as
38nonstate matching funds. The commission may adopt further
39requirements for the purposes of this paragraph. The commission
40is not liable for costs incurred pursuant to this paragraph if the
P18   1commission does not give final approval for the project or the
2proposed recipient does not meet requirements adopted by the
3commission pursuant to this paragraph.

4(7) The project provides economic benefits for California by
5promoting California-based technology firms, jobs, and businesses.

6(8) The project uses existing or proposed fueling infrastructure
7to maximize the outcome of the project.

8(9) The project’s ability to reduce on a life-cycle assessment
9greenhouse gas emissions by at least 10 percent, and higher
10percentages in the future, from current reformulated gasoline and
11diesel fuel standards established by the state board.

12(10) The project’s use of alternative fuel blends of at least 20
13percent, and higher blend ratios in the future, with a preference
14for projects with higher blends.

15(11) The project drives new technology advancement for
16vehicles, vessels, engines, and other equipment, and promotes the
17deployment of that technology in the marketplace.

18(d) Only the following shall be eligible for funding:

19(1) Alternative and renewable fuel projects to develop and
20improve alternative and renewable low-carbon fuels, including
21electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
22hydrogen, and biomethane, among others, and their feedstocks
23that have high potential for long-term or short-term
24commercialization, including projects that lead to sustainable
25feedstocks.

26(2) Demonstration and deployment projects that optimize
27alternative and renewable fuels for existing and developing engine
28technologies.

29(3) Projects to produce alternative and renewable low-carbon
30fuels in California.

31(4) Projects to decrease the overall impact of an alternative and
32renewable fuel’s life cycle carbon footprint and increase
33sustainability.

34(5) Alternative and renewable fuel infrastructure, fueling
35stations, and equipment. The preference in paragraph (10) of
36subdivision (c) shall not apply to renewable diesel or biodiesel
37infrastructure, fueling stations, and equipment used solely for
38renewable diesel or biodiesel fuel.

39(6) Projects to develop and improve light-, medium-, and
40heavy-duty vehicle technologies that provide for better fuel
P19   1efficiency and lower greenhouse gas emissions, alternative fuel
2usage and storage, or emission reductions, including propulsion
3systems, advanced internal combustion engines with a 40 percent
4or better efficiency level over the current market standard,
5light-weight materials, intelligent transportation systems, energy
6storage, control systems and system integration, physical
7measurement and metering systems and software, development of
8design standards and testing and certification protocols, battery
9recycling and reuse, engine and fuel optimization electronic and
10electrified components, hybrid technology, plug-in hybrid
11technology, battery electric vehicle technology, fuel cell
12technology, and conversions of hybrid technology to plug-in
13technology through the installation of safety certified supplemental
14battery modules.

15(7) Programs and projects that accelerate the commercialization
16of vehicles and alternative and renewable fuels including buy-down
17programs through near-market and market-path deployments,
18advanced technology warranty or replacement insurance,
19development of market niches, supply-chain development, and
20research related to the pedestrian safety impacts of vehicle
21technologies and alternative and renewable fuels.

22(8) Programs and projects to retrofit medium- and heavy-duty
23on-road and nonroad vehicle fleets with technologies that create
24higher fuel efficiencies, including alternative and renewable fuel
25vehicles and technologies, idle management technology, and
26aerodynamic retrofits that decrease fuel consumption.

27(9) Infrastructure projects that promote alternative and renewable
28fuel infrastructure development connected with existing fleets,
29public transit, and existing transportation corridors, including
30physical measurement or metering equipment and truck stop
31electrification.

32(10) Workforce training programs related to alternative and
33renewable fuel feedstock production and extraction, renewable
34fuel production, distribution, transport, and storage,
35high-performance and low-emission vehicle technology and high
36tower electronics, automotive computer systems, mass transit fleet
37conversion, servicing, and maintenance, and other sectors or
38occupations related to the purposes of this chapter.

39(11) Block grants or incentive programs administered by public
40entities or not-for-profit technology entities for multiple projects,
P20   1education and program promotion within California, and
2development of alternative and renewable fuel and vehicle
3technology centers. The commission may adopt guidelines for
4implementing the block grant or incentive program, which shall
5be approved at a noticed public meeting of the commission.

6(12) Life cycle and multimedia analyses, sustainability and
7environmental impact evaluations, and market, financial, and
8technology assessments performed by a state agency to determine
9the impacts of increasing the use of low-carbon transportation fuels
10and technologies, and to assist in the preparation of the investment
11plan and program implementation.

12(13) A program to provide funding for homeowners who
13purchase a plug-in electric vehicle to offset costs associated with
14modifying electrical sources to include a residential plug-in electric
15vehicle charging station. In establishing this program, the
16commission shall consider funding criteria to maximize the public
17benefit of the program.

18(e) The commission may make a single source or sole source
19award pursuant to this section for applied research. The same
20requirements set forth in Section 25620.5 of the Public Resources
21Code shall apply to awards made on a single source basis or a sole
22source basis. This subdivision does not authorize the commission
23to make a single source or sole source award for a project or
24activity other than for applied research.

25(f) The commission may do all of the following:

26(1) Contract with the Treasurer to expend funds through
27programs implemented by the Treasurer, if the expenditure is
28consistent with all of the requirements of this article and Article
291 (commencing with Section 44270).

30(2) Contract with small business financial development
31corporations established by the Business, Transportation and
32Housing Agency to expend funds through the Small Business Loan
33Guarantee Program if the expenditure is consistent with all of the
34requirements of this article and Article 1 (commencing with Section
3544270).

36(3) Advance funds, pursuant to an agreement with the
37commission, to any of the following:

38(A) A public entity.

P21   1(B) A recipient to enable it to make advance payments to a
2public entity that is a subrecipient of the funds and under a binding
3and enforceable subagreement with the recipient.

4(C) An administrator of a block grant program.

5

SEC. 12.  

Section 44275 of the Health and Safety Code, as
6amended by Section 5 of Chapter 707 of the Statutes of 2004, is
7amended to read:

8

44275.  

(a) As used in this chapter, the following terms have
9the following meanings:

10(1) “Advisory board” means the Carl Moyer Program Advisory
11Board created by Section 44297.

12(2) “Btu” means British thermal unit.

13(3) “Commission” means the State Energy Resources
14Conservation and Development Commission.

15(4) “Cost-effectiveness” means dollars provided to a project
16pursuant to subdivision (d) of Section 44283 for each ton of
17covered emission reduction attributed to a project or to the program
18as a whole. In calculating cost-effectiveness, one-time grants of
19funds made at the beginning of a project shall be annualized using
20a time value of public funds or discount rate determined for each
21project by the state board, taking into account the interest rate on
22bonds, interest earned by state funds, and other factors as
23determined appropriate by the state board. Cost-effectiveness shall
24be calculated by dividing annualized costs by average annual
25emissions reduction. The state board, in consultation with the
26districts and concerned members of the public, shall establish
27appropriate cost-effective limits for oxides of nitrogen, particulate
28matter, and reactive organic gases and a reasonable system for
29comparing the cost-effectiveness of proposed projects as described
30in subdivision (a) of Section 44283.

31(5) “Covered emissions” include emissions of oxides of nitrogen,
32particulate matter, and reactive organic gases from any covered
33source.

34(6) “Covered engine” includes any internal combustion engine
35or electric motor and drive powering a covered source.

36(7) “Covered source” includes onroad vehicles, off-road
37nonrecreational equipment and vehicles, locomotives, diesel marine
38vessels, agricultural sources of air pollution, as defined in Section
3939011.5, and, as determined by the state board, other high-emitting
40engine categories.

P22   1(8) “Covered vehicle” includes any vehicle or piece of
2equipment powered by a covered engine.

3(9) “District” means a county air pollution control district or an
4air quality management district.

5(10) “Fund” means the Carl Moyer Memorial Air Quality
6Standards Attainment Trust Fund created by Section 44299.

7(11) “Mobile Source Air Pollution Reduction Review
8Committee” means the Mobile Source Air Pollution Reduction
9Review Committee created by Section 44244.

10(12) “Incremental cost” means the cost of the project less a
11baseline cost that would otherwise be incurred by the applicant in
12the normal course of business. Incremental costs may include
13added lease or fuel costs pursuant to Section 44283 as well as
14incremental capital costs.

15(13) “New very low emission vehicle” means a heavy-duty
16vehicle that qualifies as a very low emission vehicle when it is a
17new vehicle, where new vehicle has the same meaning as defined
18in Section 430 of the Vehicle Code, or that is modified with the
19approval and warranty of the original equipment manufacturer to
20qualify as a very low emission vehicle within 12 months of delivery
21to an owner for private or commercial use.

22(14) “NOx” means oxides of nitrogen.

23(15) “Program” means the Carl Moyer Memorial Air Quality
24Standards Attainment Program created by subdivision (a) of
25Section 44280.

26(16) “Repower” means replacing an engine with a different
27engine. The term repower, as used in this chapter, generally refers
28to replacing an older, uncontrolled engine with a new,
29emissions-certified engine, although replacing an older
30emissions-certified engine with a newer engine certified to lower
31emissions standards may be eligible for funding under this program.

32(17) “Retrofit” means making modifications to the engine and
33fuel system such that the retrofitted engine does not have the same
34specifications as the original engine.

35(18) “Very low emission vehicle” means a heavy-duty vehicle
36with emissions significantly lower than otherwise applicable
37baseline emission standards or uncontrolled emission levels
38pursuant to Section 44282.

P23   1(b) This section shall remain in effect only until January 1, 2024,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2024, deletes or extends that date.

4

SEC. 13.  

Section 44275 of the Health and Safety Code, as
5added by Section 5.5 of Chapter 707 of the Statutes of 2004, is
6amended to read:

7

44275.  

(a) As used in this chapter, the following terms have
8the following meanings:

9(1) “Advisory board” means the Carl Moyer Program Advisory
10Board created by Section 44297.

11(2) “Btu” means British thermal unit.

12(3) “Commission” means the State Energy Resources
13Conservation and Development Commission.

14(4) “Cost-effectiveness” means dollars provided to a project
15pursuant to subdivision (d) of Section 44283 for each ton of NOx
16 reduction attributed to a project or to the program as a whole. In
17calculating cost-effectiveness, one-time grants of funds made at
18the beginning of a project shall be annualized using a time value
19of public funds or discount rate determined for each project by the
20state board, taking into account the interest rate on bonds, interest
21earned by state funds, and other factors as determined appropriate
22by the state board. Cost-effectiveness shall be calculated by
23dividing annualized costs by average annual emissions reduction
24of NOx in this state.

25(5) “Covered engine” includes any internal combustion engine
26or electric motor and drive powering a covered source.

27(6) “Covered source” includes onroad vehicles of 14,000 pounds
28gross vehicle weight rating (GVWR) or greater, off-road
29nonrecreational equipment and vehicles, locomotives, diesel marine
30vessels, stationary agricultural engines, and, as determined by the
31state board, other high-emitting diesel engine categories.

32(7) “Covered vehicle” includes any vehicle or piece of
33equipment powered by a covered engine.

34(8) “District” means a county air pollution control district or an
35air quality management district.

36(9) “Fund” means the Carl Moyer Memorial Air Quality
37Standards Attainment Trust Fund created by Section 44299.

38(10) “Mobile Source Air Pollution Reduction Review
39Committee” means the Mobile Source Air Pollution Reduction
40Review Committee created by Section 44244.

P24   1(11) “Incremental cost” means the cost of the project less a
2baseline cost that would otherwise be incurred by the applicant in
3the normal course of business. Incremental costs may include
4added lease or fuel costs pursuant to Section 44283 as well as
5incremental capital costs.

6(12) “New very low emission vehicle” means a vehicle that
7qualifies as a very low emission vehicle when it is a new vehicle,
8where new vehicle has the same meaning as defined in Section
9430 of the Vehicle Code, or that is modified with the approval and
10warranty of the original equipment manufacturer to qualify as a
11very low emission vehicle within 12 months of delivery to an
12owner for private or commercial use.

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

14(14) “Program” means the Carl Moyer Memorial Air Quality
15Standards Attainment Program created by subdivision (a) of
16Section 44280.

17(15) “Repower” means replacing an engine with a different
18engine. The term repower, as used in this chapter, generally refers
19to replacing an older, uncontrolled engine with a new,
20emissions-certified engine, although replacing an older
21emissions-certified engine with a newer engine certified to lower
22emissions standards may be eligible for funding under this program.

23(16) “Retrofit” means making modifications to the engine and
24fuel system such that the retrofitted engine does not have the same
25specifications as the original engine.

26(17) “Very low emission vehicle” means a vehicle with
27emissions significantly lower than otherwise applicable baseline
28emission standards or uncontrolled emission levels pursuant to
29Section 44282.

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

31

SEC. 14.  

Section 44280 of the Health and Safety Code, as
32amended by Section 6 of Chapter 707 of the Statutes of 2004, is
33amended to read:

34

44280.  

(a) There is hereby created the Carl Moyer Memorial
35Air Quality Standards Attainment Program. The program shall be
36administered by the state board in accordance with this chapter.
37The administration of the program may be delegated to the districts.

38(b) The program shall provide grants to offset the incremental
39cost of projects that reduce covered emissions from covered sources
40in California. Eligibility for grant awards shall be determined by
P25   1the state board, in consultation with the districts, in accordance
2with this chapter.

3(c) The program shall also provide funding for a fueling
4infrastructure demonstration program and for technology
5development efforts that are expected to result in commercially
6available technologies in the near term that would improve the
7ability of the program to achieve its goals. The infrastructure
8demonstration and technology development portions of the program
9shall be managed by the commission, in consultation with the state
10board.

11(d) 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. 15.  

Section 44280 of the Health and Safety Code, as
15added by Section 6.5 of Chapter 707 of the Statutes of 2004, is
16amended to read:

17

44280.  

(a) There is hereby created the Carl Moyer Memorial
18Air Quality Standards Attainment Program. The program shall be
19administered by the state board in accordance with this chapter.
20The administration of the program may be delegated to the districts.

21(b) The program shall provide grants to offset the incremental
22cost of projects that reduce emissions of NOx from covered sources
23in California. Eligibility for grant awards shall be determined by
24the state board, in consultation with the districts, in accordance
25with this chapter.

26(c) The program shall also provide funding for a fueling
27infrastructure demonstration program and for technology
28development efforts that are expected to result in commercially
29available technologies in the near term that would improve the
30ability of the program to achieve its goals. The infrastructure
31demonstration and technology development portions of the program
32shall be managed by the commission, in consultation with the state
33board.

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

35

SEC. 16.  

Section 44281 of the Health and Safety Code, as
36amended by Section 7 of Chapter 707 of the Statutes of 2004, is
37amended to read:

38

44281.  

(a) Eligible projects include, but are not limited to, any
39of the following:

P26   1(1) Purchase of new very low or zero-emission covered vehicles
2or covered heavy-duty engines.

3(2) Emission-reducing retrofit of covered engines, or
4replacement of old engines powering covered sources with newer
5engines certified to more stringent emissions standards than the
6engine being replaced, or with electric motors or drives.

7(3) Purchase and use of emission-reducing add-on equipment
8that has been verified by the state board for covered vehicles.

9(4) Development and demonstration of practical, low-emission
10retrofit technologies, repower options, and advanced technologies
11for covered engines and vehicles with very low emissions of oxides
12of nitrogen.

13(5) Light- and medium-duty vehicle projects in compliance with
14guidelines adopted by the state board pursuant to Title 13 of the
15California Code of Regulations.

16(b) No project shall be funded under this chapter after the
17compliance date required by any local, state, or federal statute,
18rule, regulation, memoranda of agreement or understanding, or
19other legally binding document, except that an otherwise qualified
20project may be funded even if the state implementation plan
21assumes that the change in equipment, vehicles, or operations will
22occur, if the change is not required by the compliance date of a
23statute, regulation, or other legally binding document in effect as
24of the date the grant is awarded. No project funded by the program
25shall be used for credit under any state or federal emissions
26averaging, banking, or trading program. No emission reduction
27generated by the program shall be used as marketable emission
28reduction credits or to offset any emission reduction obligation of
29any person or entity. Projects involving new engines that would
30otherwise generate marketable credits under state or federal
31averaging, banking, and trading programs shall include transfer
32of credits to the engine end user and retirement of those credits
33toward reducing air emissions in order to qualify for funding under
34the program. A purchase of a low-emission vehicle or of equipment
35pursuant to a corporate or a controlling board’s policy, but not
36otherwise required by law, shall generate surplus emissions
37reductions and may be funded by the program.

38(c) The program may also provide funding toward installation
39of fueling or electrification infrastructure as provided in Section
4044284.

P27   1(d) Eligible applicants may be any individual, company, or
2public agency that owns one or more covered vehicles that operate
3primarily within California or otherwise contribute substantially
4to the NOx, PM, or ROG emissions inventory in California.

5(e) It is the intent of the Legislature that all emission reductions
6generated by this chapter shall contribute to public health by
7reducing, for the life of the vehicle being funded, the total amount
8of emissions in California.

9(f) This section shall remain in effect only until January 1, 2024,
10and as of that date is repealed, unless a later enacted statute, that
11is enacted before January 1, 2024, deletes or extends that date.

12

SEC. 17.  

Section 44281 of the Health and Safety Code, as
13added by Section 7.5 of Chapter 707 of the Statutes of 2004, is
14amended to read:

15

44281.  

(a) Eligible projects are any of the following:

16(1) Purchase of new very low or zero-emission covered vehicles
17or covered engines.

18(2) Emission-reducing retrofit of covered engines, or
19replacement of old engines powering covered sources with newer
20engines certified to more stringent emissions standards than the
21engine being replaced, or with electric motors or drives.

22(3) Purchase and use of emission-reducing add-on equipment
23for covered vehicles.

24(4) Development and demonstration of practical, low-emission
25retrofit technologies, repower options, and advanced technologies
26for covered engines and vehicles with very low emissions of oxides
27of nitrogen.

28(b) No new purchase, retrofit, repower, or add-on equipment
29shall be funded under this chapter if it is required by any local,
30state, or federal statute, rule, regulation, memoranda of agreement
31or understanding, or other legally binding document, except that
32an otherwise qualified project may be funded even if the state
33implementation plan assumes that the change in equipment,
34vehicles, or operations will occur, if the change is not required by
35a statute, regulation, or other legally binding document in effect
36as of the date the grant is awarded. No project funded by the
37program shall be used for credit under any state or federal
38emissions averaging, banking, or trading program. No emission
39reduction generated by the program shall be used as marketable
40emission reduction credits or to offset any emission reduction
P28   1 obligation of any entity. Projects involving new engines that would
2otherwise generate marketable credits under state or federal
3averaging, banking, and trading programs shall include transfer
4of credits to the engine end user and retirement of those credits
5toward reducing air emissions in order to qualify for funding under
6the program. A purchase of a low-emission vehicle or of equipment
7pursuant to a corporate or a controlling board’s policy, but not
8otherwise required by law, shall generate surplus emissions
9reductions and may be funded by the program.

10(c) The program may also provide funding toward installation
11of fueling or electrification infrastructure as provided in Section
1244284.

13(d) Eligible applicants may be any individual, company, or
14public agency that owns one or more covered vehicles that operate
15primarily within California or otherwise contribute substantially
16to the NOx emissions inventory in 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 become operative on January 1, 2024.

22

SEC. 18.  

Section 44282 of the Health and Safety Code, as
23amended by Section 8 of Chapter 707 of the Statutes of 2004, is
24amended to read:

25

44282.  

The following criteria apply to all projects to be funded
26through the program except for projects funded through the
27Advanced Technology Account and the Infrastructure
28Demonstration Program:

29(a)  The state board may establish project criteria, including
30minimum project life for source categories, in the guidelines
31described in Section 44287. For previously unregulated source
32categories, project criteria shall consider the timing of newly
33established regulatory requirements.

34(b) To be eligible, projects shall meet the cost-effectiveness per
35ton of covered emissions 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, or covered vehicles scrapped
39on or after the date the program is implemented.

P29   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) For heavy-duty-vehicle projects, retrofit and add-on
12equipment projects shall document a NOx or PM emission
13reduction of at least 25 percent and no increase in other covered
14emissions compared to the applicable baseline emissions accepted
15by the state board for that engine year and application. The state
16board shall determine appropriate baseline emission levels.
17Acceptable documentation shall be defined by the state board.
18After study of available emission reduction technologies and after
19public notice and comment, the state board may revise the
20minimum percentage emission reduction criterion for retrofits and
21add-on equipment provided for in this section to improve the ability
22of the program to achieve its goals.

23(g) (1) For heavy-duty-vehicle projects involving the purchase
24of new very low or zero-emission vehicles, engines shall be
25certified to an optional low NOx emissions standard established
26by the state board, except as provided for in paragraph (2).

27(2) For heavy-duty-vehicle projects involving the purchase of
28new very low or zero-emission covered vehicles for which no
29optional low NOx emission standards are available, documentation
30shall be provided showing that the low or zero-emission engine
31emits not more than 70 percent of the NOx or NOx plus
32hydrocarbon emissions of a new engine certified to the applicable
33baseline NOx or NOx plus hydrocarbon emission standard for that
34engine and meets applicable particulate standards. The state board
35shall specify the documentation required. If no baseline emission
36standard exists for new vehicles in a particular category, the state
37board shall determine an appropriate baseline emission level for
38comparison.

P30   1(h) For projects other than heavy-duty-vehicle projects, the state
2board shall determine appropriate criteria under the provisions of
3Section 44287.

4(i) This section shall remain in effect only until January 1, 2024,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2024, deletes or extends that date.

7

SEC. 19.  

Section 44282 of the Health and Safety Code, as
8added by Section 8.5 of Chapter 707 of the Statutes of 2004, is
9amended to read:

10

44282.  

The following criteria apply to all projects to be funded
11through the program except for projects funded through the
12Advanced Technology Account and the Infrastructure
13Demonstration Program:

14(a) Except for projects involving marine vessels, 75 percent or
15more of vehicle miles traveled or hours of operation shall be
16projected to be in California for at least five years following the
17grant award. Projects involving marine vessels and engines shall
18be limited to those that spend enough time operating in California
19air basins over the lifetime of the project to meet the
20cost-effectiveness criteria based on NOx reductions in California,
21as provided in Section 44283.

22(b) To be eligible, projects shall meet cost-effectiveness per ton
23of NOx reduced requirements of Section 44283.

24(c) To be eligible, retrofits, repowers, and installation of add-on
25equipment for covered vehicles shall be performed, or new covered
26vehicles delivered to the end user, on or after the date the program
27is implemented.

28(d) Retrofit technologies, new engines, and new vehicles shall
29be certified for sale or under experimental permit for operation in
30California.

31(e) Repower projects that replace older, uncontrolled engines
32with new, emissions-certified engines or that replace
33emissions-certified engines with new engines certified to a more
34stringent NOx emissions standard are approvable subject to the
35other applicable selection criteria. The state board shall determine
36appropriate baseline emission levels for the uncontrolled engines
37being replaced.

38(f) Retrofit and add-on equipment projects shall document a
39NOx emission reduction of at least 25 percent and no increase in
40particulate emissions compared to the applicable baseline emissions
P31   1accepted by the state board for that engine year and application.
2The state board shall determine appropriate baseline emission
3levels. Acceptable documentation shall be defined by the state
4board. After study of available emission reduction technologies
5and after public notice and comment, the state board may revise
6the minimum percentage NOx reduction criterion for retrofits and
7add-on equipment provided for in this section to improve the ability
8of the program to achieve its goals.

9(g) (1) For projects involving the purchase of new very low or
10zero-emission vehicles, engines shall be certified to an optional
11low NOx emissions standard established by the state board, except
12as provided for in paragraph (2).

13(2) For projects involving the purchase of new very low or
14zero-emission covered vehicles for which no optional low NOx
15 emission standards are available, documentation shall be provided
16showing that the low or zero-emission engine emits not more than
1770 percent of the NOx or NOx plus hydrocarbon emissions of a
18new engine certified to the applicable baseline NOx or NOx plus
19hydrocarbon emission standard for that engine and meets applicable
20particulate standards. The state board shall specify the
21documentation required. If no baseline emission standard exists
22for new vehicles in a particular category, the state board shall
23determine an appropriate baseline emission level for comparison.

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

25

SEC. 20.  

Section 44283 of the Health and Safety Code, as
26amended by Section 1 of Chapter 571 of the Statutes of 2010, is
27amended to read:

28

44283.  

(a) Grants shall not be made for projects with a
29cost-effectiveness, calculated in accordance with this section, of
30more than thirteen thousand six hundred dollars ($13,600) per ton
31of NOx reduced in California or a higher value that reflects state
32consumer price index adjustments on or after January 1, 2006, as
33determined by the state board. For projects obtaining reactive
34organic gas and particulate matter reductions, the state board shall
35determine appropriate adjustment factors to calculate a weighted
36cost-effectiveness.

37(b) Only covered emission reductions occurring in this state
38shall be included in the cost-effectiveness determination. The
39extent to which emissions generated at sea contribute to air quality
40in California nonattainment areas shall be incorporated into these
P32   1methodologies based on a reasonable assessment of currently
2available information and modeling assumptions.

3(c) The state board shall develop protocols for calculating the
4surplus covered emission reductions in California from
5representative project types over the life of the project.

6(d) The cost of the covered emission reduction is the amount
7of the grant from the program, including matching funds provided
8pursuant to subdivision (e) of Section 44287, plus any other state
9funds, or funds under the district’s budget authority or fiduciary
10control, provided toward the project, not including funds described
11in paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
12The state board shall establish reasonable methodologies for
13evaluating project cost-effectiveness, consistent with the definition
14contained in paragraph (4) of subdivision (a) of Section 44275,
15and with accepted methods, taking into account a fair and
16reasonable discount rate or time value of public funds.

17(e) A grant shall not be made that, net of taxes, provides the
18applicant with funds in excess of the incremental cost of the project.
19Incremental lease costs may be capitalized according to guidelines
20adopted by the state board so that these incremental costs may be
21offset by a one-time grant award.

22(f) Funds under a district’s budget authority or fiduciary control
23may be used to pay for the incremental cost of liquid or gaseous
24fuel, other than standard gasoline or diesel, which is integral to a
25covered emission reducing technology that is part of a project
26receiving grant funding under the program. The fuel shall be
27approved for sale by the state board. The incremental fuel cost
28over the expected lifetime of the vehicle may be offset by the
29district if the project as a whole, including the incremental fuel
30cost, meets all of the requirements of this chapter, including the
31maximum allowed cost-effectiveness. The state board shall develop
32an appropriate methodology for converting incremental fuel costs
33over the vehicle lifetime into an initial cost for the purposes of
34determining project cost-effectiveness. Incremental fuel costs shall
35not be included in project costs for fuels dispensed from any facility
36that was funded, in whole or in part, from the fund.

37(g) For purposes of determining any grant amount pursuant to
38this chapter, the incremental cost of any new purchase, retrofit,
39repower, or add-on equipment shall be reduced by the value of
40any current financial incentive that directly reduces the project
P33   1price, including any tax credits or deductions, grants, or other
2public financial assistance, not including funds described in
3paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
4 Project proponents applying for funding shall be required to state
5in their application any other public financial assistance to the
6project.

7(h) For projects that would repower off-road equipment by
8replacing uncontrolled diesel engines with new, certified diesel
9engines, the state board may establish maximum grant award
10amounts per repower. A repower project shall also be subject to
11the incremental cost maximum pursuant to subdivision (e).

12(i) After study of available emission reduction technologies and
13costs and after public notice and comment, the state board may
14reduce the values of the maximum grant award criteria stated in
15this section to improve the ability of the program to achieve its
16goals. Every year the state board shall adjust the maximum
17cost-effectiveness amount established in subdivision (a) and any
18per-project maximum set by the state board pursuant to subdivision
19(h) to account for inflation.

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

23

SEC. 21.  

Section 44283 of the Health and Safety Code, as
24amended by Section 2 of Chapter 571 of the Statutes of 2010, is
25amended to read:

26

44283.  

(a) Grants shall not be made for projects with a
27cost-effectiveness, calculated in accordance with this section, of
28more than twelve thousand dollars ($12,000) per ton of NOx
29 reduced in California or a higher value that reflects state consumer
30price index adjustments on or after January 1, 2024, as determined
31by the state board.

32(b) Only NOx reductions occurring in this state shall be included
33in the cost-effectiveness determination. The extent to which
34emissions generated at sea contribute to air quality in California
35nonattainment areas shall be incorporated into these methodologies
36based on a reasonable assessment of currently available information
37and modeling assumptions.

38(c) The state board shall develop protocols for calculating the
39surplus NOx reductions in California from representative project
40types over the life of the project.

P34   1(d) The cost of the NOx reduction is the amount of the grant
2from the program, including matching funds provided pursuant to
3subdivision (e) of Section 44287, plus any other state funds, or
4funds under the district’s budget authority or fiduciary control,
5provided toward the project, not including funds described in
6paragraphs (1) and (2) of subdivision (a) of Section 44287.2. The
7state board shall establish reasonable methodologies for evaluating
8project cost-effectiveness, consistent with the definition contained
9in paragraph (4) of subdivision (a) of Section 44275, and with
10accepted methods, taking into account a fair and reasonable
11discount rate or time value of public funds.

12(e) A grant shall not be made that, net of taxes, provides the
13applicant with funds in excess of the incremental cost of the project.
14Incremental lease costs may be capitalized according to guidelines
15adopted by the state board so that these incremental costs may be
16offset by a one-time grant award.

17(f) Funds under a district’s budget authority or fiduciary control
18may be used to pay for the incremental cost of liquid or gaseous
19fuel, other than standard gasoline or diesel, which is integral to a
20NOx reducing technology that is part of a project receiving grant
21funding under the program. The fuel shall be approved for sale by
22the state board. The incremental fuel cost over the expected lifetime
23of the vehicle may be offset by the district if the project as a whole,
24including the incremental fuel cost, meets all of the requirements
25of this chapter, including the maximum allowed cost-effectiveness.
26The state board shall develop an appropriate methodology for
27converting incremental fuel costs over the vehicle lifetime into an
28initial cost for the purposes of determining project
29cost-effectiveness. Incremental fuel costs shall not be included in
30project costs for fuels dispensed from any facility that was funded,
31in whole or in part, from the fund.

32(g) For purposes of determining any grant amount pursuant to
33this chapter, the incremental cost of any new purchase, retrofit,
34repower, or add-on equipment shall be reduced by the value of
35any current financial incentive that directly reduces the project
36price, including any tax credits or deductions, grants, or other
37public financial assistance, not including funds described in
38paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
39Project proponents applying for funding shall be required to state
P35   1in their application any other public financial assistance to the
2project.

3(h) For projects that would repower off-road equipment by
4replacing uncontrolled diesel engines with new, certified diesel
5engines, the state board may establish maximum grant award
6amounts per repower. A repower project shall also be subject to
7the incremental cost maximum pursuant to subdivision (e).

8(i) After study of available emission reduction technologies and
9costs and after public notice and comment, the state board may
10reduce the values of the maximum grant award criteria stated in
11this section to improve the ability of the program to achieve its
12goals. Every year the state board shall adjust the maximum
13cost-effectiveness amount established in subdivision (a) and any
14per-project maximum set by the state board pursuant to subdivision
15(h) to account for inflation.

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

17

SEC. 22.  

Section 44287 of the Health and Safety Code, as
18amended by Section 10 of Chapter 707 of the Statutes of 2004, is
19amended to read:

20

44287.  

(a) The state board shall establish or update grant
21criteria and guidelines consistent with this chapter for covered
22vehicle projects as soon as practicable, but not later than January
231, 2006. The adoption of guidelines is exempt from the rulemaking
24provisions of the Administrative Procedure Act, Chapter 3.5
25(commencing with Section 11340) of Part 1 of Division 3 of Title
262 of the Government Code. The state board shall solicit input and
27comment from the districts during the development of the criteria
28and guidelines and shall make every effort to develop criteria and
29guidelines that are compatible with existing district programs that
30are also consistent with this chapter. Guidelines shall include
31protocols to calculate project cost-effectiveness. The grant criteria
32and guidelines shall include safeguards to ensure that the project
33generates surplus emissions reductions. Guidelines shall enable
34and encourage districts to cofund projects that provide emissions
35reductions in more than one district. The state board shall make
36draft criteria and guidelines available to the public 45 days before
37final adoption, and shall hold at least one public meeting to
38consider public comments before final adoption. The state board
39may develop separate guidelines and criteria for the different types
40of eligible projects described in subdivision (a) of Section 44281.

P36   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, 2006.

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.

P37   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
P38   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 Section 44299.2. The
9state board may accept a district application after the due date for
10a period of months specified by the state board. Funds may be
11reserved in response to those applications, in accordance with this
12chapter, out of funds remaining after the original reservation of
13funds 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 commission, 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 commission, 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
P39   1revision and the commission shall hold at least one public meeting
2to consider public comments before final adoption of the revision.

3(q) Unclaimed funds will be allocated by the state board in
4accordance with Section 44299.2.

5(r) This section shall remain in effect only until January 1, 2024,
6and as of that date is repealed, unless a later enacted statute, that
7is enacted before January 1, 2024, deletes or extends that date.

8

SEC. 23.  

Section 44287 of the Health and Safety Code, as
9added by Section 10.5 of Chapter 707 of the Statutes of 2004, is
10amended to read:

11

44287.  

(a) The state board shall establish grant criteria and
12guidelines consistent with this chapter for covered vehicle projects
13as soon as practicable, but not later than January 1, 2000. The
14adoption of guidelines is exempt from the rulemaking provisions
15of the Administrative Procedure Act, Chapter 3.5 (commencing
16with Section 11340) of Part 1 of Division 3 of Title 2 of the
17Government Code. The state board shall solicit input and comment
18from the districts during the development of the criteria and
19guidelines and shall make every effort to develop criteria and
20guidelines that are compatible with existing district programs that
21are also consistent with this chapter. Guidelines shall include
22protocols to calculate project cost-effectiveness. The grant criteria
23and guidelines shall include safeguards to ensure that the project
24generates surplus emissions reductions. Guidelines shall enable
25and encourage districts to cofund projects that provide emissions
26reductions in more than one district. The state board shall make
27draft criteria and guidelines available to the public 45 days before
28final adoption, and shall hold at least one public meeting to
29consider public comments before final adoption.

30(b) The state board, in consultation with the participating
31districts, may propose revisions to the criteria and guidelines
32established pursuant to subdivision (a) as necessary to improve
33the ability of the program to achieve its goals. A proposed revision
34shall be made available to the public 45 days before final adoption
35of the revision and the state board shall hold at least one public
36meeting to consider public comments before final adoption of the
37revision.

38(c) The state board shall reserve funds for, and disburse funds
39to, districts from the fund for administration pursuant to this section
40and Section 44299.1.

P40   1(d) The state board shall develop guidelines for a district to
2follow in applying for the reservation of funds, in accordance with
3this chapter. It is the intent of the Legislature that district
4administration of any reserved funds be in accordance with the
5project selection criteria specified in Sections 44281, 44282, and
644283 and all other provisions of this chapter. The guidelines shall
7be established and published by the state board as soon as
8practicable, but not later than January 1, 2000.

9(e) Funds shall be reserved by the state board for administration
10by a district that adopts an eligible program pursuant to this chapter
11and offers matching funds at a ratio of one dollar ($1) of matching
12funds committed by the district or the Mobile Source Air Pollution
13Reduction Review Committee for every two dollars ($2) committed
14from the fund. Funds available to the Mobile Source Air Pollution
15Reduction Review Committee may be counted as matching funds
16for projects in the South Coast Air Basin only if the committee
17approves the use of these funds for matching purposes. Matching
18funds may be any funds under the district’s budget authority that
19are committed to be expended in accordance with the program.
20Funds committed by a port authority or a local government, in
21cooperation with a district, to be expended in accordance with the
22program may also be counted as district matching funds. Matching
23funds provided by a port authority or a local government may not
24exceed 30 percent of the total required matching funds in any
25district that applies for more than three hundred thousand dollars
26($300,000) of the state board funds. Only a district, or a port
27authority or a local government teamed with a district, may provide
28matching funds.

29(f) The state board may adjust the ratio of matching funds
30described in subdivision (e), if it determines that an adjustment is
31necessary in order to maximize the use of, or the air quality benefits
32provided by, the program, based on a consideration of the financial
33resources of the district.

34(g) Notwithstanding subdivision (e), a district need not provide
35matching funds for state board funds allocated to the district for
36program outreach activities pursuant to paragraph (4) of subdivision
37(a) of Section 44299.1.

38(h) A district may include within its matching funds a reasonable
39estimate of direct or in-kind costs for assistance in providing
40program outreach and application evaluation. In-kind and direct
P41   1matching funds shall not exceed 15 percent of the total matching
2funds offered by a district. A district may also include within its
3matching funds any money spent on or after February 25, 1999,
4that would have qualified as matching funds but were not
5previously claimed as matching funds.

6(i) A district desiring a reservation of funds shall apply to the
7state board following the application guidelines established
8pursuant to this section. The state board shall approve or disapprove
9a district application not later than 60 days after receipt. Upon
10approval of any district application, the state board shall
11simultaneously approve a reservation of funding for that district
12to administer. Reserved funds shall be disbursed to the district so
13that funding of a district-approved project is not impeded.

14(j) Notwithstanding any other provision of this chapter, districts
15and the Mobile Source Air Pollution Reduction Review Committee
16shall not use funds collected pursuant to Section 41081 or Chapter
177 (commencing with Section 44220), or pursuant to Section
189250.11 of the Vehicle Code, as matching funds to fund a project
19with stationary or portable engines, locomotives, or marine vessels.

20(k) Any funds reserved for a district pursuant to this section are
21available to the district for a period of not more than two years
22from the time of reservation. Funds not expended by June 30 of
23the second calendar year following the date of the reservation shall
24revert back to the state board as of that June 30, and shall be
25deposited in the Covered Vehicle Account established pursuant to
26Section 44299. The funds may then be redirected based on
27applications to the fund. Regardless of any reversion of funds back
28to the state board, the district may continue to request other
29reservations of funds for local administration. Each reservation of
30funds shall be accounted for separately, and unused funds from
31each application shall revert back to the state board as specified
32in this subdivision.

33(l) The state board shall specify a date each year when district
34applications are due. If the eligible applications received in any
35year oversubscribe the available funds, the state board shall reserve
36funds on an allocation basis, pursuant to subdivision (b) of Section
3744299.1. The state board may accept a district application after
38the due date for a period of months specified by the state board.
39Funds may be reserved in response to those applications, in
P42   1accordance with this chapter, out of funds remaining after the
2original reservation of funds for the year.

3(m) Guidelines for a district application shall require information
4from an applicant district to the extent necessary to meet the
5requirements of this chapter, but shall otherwise minimize the
6information required of a district.

7(n) A district application shall be reviewed by the state board
8immediately upon receipt. If the state board determines that an
9application is incomplete, the applicant shall be notified within 10
10working days with an explanation of what is missing from the
11application. A completed application fulfilling the criteria shall be
12approved as soon as practicable, but not later than 60 working days
13after receipt.

14(o) The state board, in consultation with the districts, shall
15establish project approval criteria and guidelines for infrastructure
16projects consistent with Section 44284 as soon as practicable, but
17not later than February 15, 2000. The commission shall make draft
18criteria and guidelines available to the public 45 days before final
19adoption, and shall hold at least one public meeting to consider
20public comments before final adoption.

21(p) The state board, in consultation with the participating
22districts, may propose revisions to the criteria and guidelines
23established pursuant to subdivision (o) as necessary to improve
24the ability of the program to achieve its goals. A revision may be
25proposed at any time, or may be proposed in response to a finding
26made in the annual report on the program published by the state
27board pursuant to Section 44295. A proposed revision shall be
28made available to the public 45 days before final adoption of the
29revision and the commission shall hold at least one public meeting
30to consider public comments before final adoption of the revision.

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

32

SEC. 24.  

Section 44299.1 of the Health and Safety Code, as
33amended by Section 3 of Chapter 627 of the Statutes of 2006, is
34amended to read:

35

44299.1.  

(a) To ensure that emission reductions are obtained
36as needed from pollution sources, any money deposited in or
37appropriated to the fund shall be segregated and administered as
38follows:

39(1) Not more than 2 percent of the moneys in the fund shall be
40allocated to program support and outreach costs incurred by the
P43   1state board and the commission directly associated with
2implementing the program pursuant to this chapter. These funds
3shall be allocated to the state board and the commission in
4proportion to total program funds administered by the state board
5and the commission.

6(2) Not more than 2 percent of the moneys in the fund shall be
7allocated to direct program outreach activities. The state board
8may use these funds for program outreach contracts or may allocate
9outreach funds to participating air districts in proportion to each
10district’s allocation from the Covered Vehicle Account. The state
11board shall report on the use of outreach funds in their reports to
12the Legislature pursuant to Section 44295.

13(3) The balance shall be deposited in the Covered Vehicle
14Account to be expended to offset added costs of new very low or
15zero-emission vehicle technologies, and emission reducing
16repowers, retrofits, and add-on equipment for covered vehicles
17and engines, and other projects specified in Section 44281.

18(b) Funds in the Covered Vehicle Account shall be allocated to
19a district that submits an eligible application to the state board
20pursuant to Section 44287. The state board shall determine the
21maximum amount of annual funding from the Covered Vehicle
22Account that each district may receive. This determination shall
23be based on the population in each district as well as the relative
24importance of obtaining covered emission reductions in each
25district, specifically through the program.

26(c) Not more than 5 percent of the moneys allocated pursuant
27to this chapter to a district with a population of one million or more
28may be used by the district for indirect costs of implementation of
29the program, including outreach costs that are subject to the
30limitation in paragraph (2) of subdivision (a).

31(d) Not more than 10 percent of the moneys allocated pursuant
32to this chapter to a district with a population of less than one
33million may be used by the district for indirect costs of
34implementation of the program, including outreach costs that are
35subject to the limitation in paragraph (2) of subdivision (a).

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

P44   1

SEC. 25.  

Section 44299.1 of the Health and Safety Code, as
2added by Section 11.5 of Chapter 707 of the Statutes of 2004, is
3amended to read:

4

44299.1.  

(a) To ensure that emission reductions are obtained
5as needed from pollution sources, any money deposited in or
6appropriated to the fund shall be segregated and administered as
7follows:

8(1) Ten percent, not to exceed two million dollars ($2,000,000),
9shall be allocated to the Infrastructure Demonstration Project to
10be used pursuant to Section 44284.

11(2) Ten percent shall be deposited in the Advanced Technology
12Account to be used to support research, development,
13demonstration, and commercialization of advanced low-emission
14technologies for covered sources that show promise of contributing
15to the goals of the program.

16(3) Not more than 2 percent of the moneys in the fund shall be
17allocated to program support and outreach costs incurred by the
18state board and the commission directly associated with
19implementing the program pursuant to this chapter. These funds
20shall be allocated to the state board and the commission in
21proportion to total program funds administered by the state board
22and the commission.

23(4) Not more than 2 percent of the moneys in the fund shall be
24allocated to direct program outreach activities. The state board
25may use these funds for program outreach contracts or may allocate
26outreach funds to participating air districts in proportion to each
27district’s allocation from the Covered Vehicle Account. The state
28board shall report on the use of outreach funds in their reports to
29the Legislature pursuant to Section 44295.

30(5) The balance shall be deposited in the Covered Vehicle
31Account to be expended to offset added costs of new very low or
32zero-emission vehicle technologies, and emission reducing
33repowers, retrofits, and add-on equipment for covered vehicles
34and engines.

35(b) Funds in the Covered Vehicle Account shall be allocated to
36a district that submits an eligible application to the state board
37pursuant to Section 44287. The state board shall determine the
38maximum amount of annual funding from the Covered Vehicle
39Account that each district may receive. This determination shall
40be based on the population in each district as well as the relative
P45   1importance of obtaining NOx reductions in each district,
2specifically through the program.

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

4

SEC. 26.  

Section 44299.2 of the Health and Safety Code is
5amended to read:

6

44299.2.  

Funds shall be allocated to local air pollution control
7and air quality management districts, and shall be subject to
8administrative terms and conditions as follows:

9(a) Available funds shall be distributed to districts taking into
10consideration the population of the area, the severity of the air
11quality problems experienced by the population, and the historical
12allocation of the Carl Moyer Memorial Air Quality Standards
13Attainment Trust Fund, except that the south coast district shall
14be allocated a percentage of the total funds available to districts
15that is proportional to the percentage of the total state population
16residing within the jurisdictional boundaries of that district. For
17the purposes of this subdivision, population shall be determined
18by the state board based on the most recent data provided by the
19Department of Finance. The allocation to the south coast district
20shall be subtracted from the total funds available to districts. Each
21district, except the south coast district, shall be awarded a minimum
22allocation of two hundred thousand dollars ($200,000), and the
23remainder, which shall be known as the “allocation amount,” shall
24be allocated to all districts as follows:

25(1) The state board shall distribute 35 percent of the allocation
26amount to the districts in proportion to the percentage of the total
27residual state population that resides within each district’s
28boundaries. For purposes of this paragraph, “total residual state
29population” means the total state population, less the total
30population that resides within the south coast district.

31(2) The state board shall distribute 35 percent of the allocation
32amount to the districts in proportion to the severity of the air quality
33problems to which each district’s population is exposed. The
34severity of the exposure shall be calculated as follows:

35(A) Each district shall be awarded severity points based on the
36district’s attainment designation and classification, as most recently
37promulgated by the federal Environmental Protection Agency for
38the National Ambient Air Quality Standard for ozone averaged
39over eight hours, as follows:

P46   1(i) A district that is designated attainment for the federal
2eight-hour ozone standard shall be awarded one point.

3(ii) A district that is designated nonattainment for the federal
4eight-hour ozone standard shall be awarded severity points based
5on classification. Two points shall be awarded for transitional,
6basic, or marginal classifications, three points for moderate
7classification, four points for serious classification, five points for
8severe classification, six points for severe-17 classification, and
9seven points for extreme classification.

10(B) Each district shall be awarded severity points based on the
11annual diesel particulate emissions in the air basin, as determined
12by the state board. One point shall be awarded to the district, in
13increments, for each 1,000 tons of diesel particulate emissions. In
14making this determination, 0 to 999 tons shall be awarded no
15points, 1,000 to 1,999 tons shall be awarded one point, 2,000 to
162,999 tons shall be awarded two points, and so forth. If a district
17encompasses more than one air basin, the air basin with the greatest
18diesel particulate emissions shall be used to determine the points
19awarded to the district. The San Diego County Air Pollution
20Control District and the Imperial County Air Pollution Control
21District shall be awarded one additional point each to account for
22annual diesel particulate emissions transported from Mexico.

23(C) The points awarded under subparagraphs (A) and (B), shall
24be added together for each district, and the total shall be multiplied
25by the population residing within the district boundaries, to yield
26the local air quality exposure index.

27(D) The local air quality exposure index for each district shall
28be summed together to yield a total state exposure index. Funds
29shall be allocated under this paragraph to each district in proportion
30to its local air quality exposure index divided by the total state
31exposure index.

32(3) The state board shall distribute 30 percent of the allocation
33amount to the districts in proportion to the allocation of funds from
34the Carl Moyer Memorial Air Quality Standards Attainment Trust
35Fund, as follows:

36(A) Because each district is awarded a minimum allocation
37pursuant to subdivision (a), there shall be no additional minimum
38allocation from the Carl Moyer historical allocation funds. The
39total amount allocated in this way shall be subtracted from total
40funding previously awarded to the district under the Carl Moyer
P47   1Memorial Air Quality Standards Attainment Program, and the
2remainder, which shall be known as directed funds, shall be
3allocated pursuant to subparagraph (B).

4(B) Each district with a population that is greater than or equal
5to 1 percent of the state’s population shall receive an additional
6allocation based on the population of the district and the district’s
7relative share of emission reduction commitments in the state
8implementation plan to attain the National Ambient Air Quality
9Standard for ozone averaged over one hour. This additional
10 allocation shall be calculated as a percentage share of the directed
11funds for each district, derived using a ratio of each district’s share
12amount to the base amount, which shall be calculated as follows:

13(i) The base amount shall be the total Carl Moyer program funds
14allocated by the state board to the districts in the 2002-03 fiscal
15year, less the total of the funds allocated through the minimum
16allocation to each district in the 2002-03 fiscal year.

17(ii) The share amount shall be the allocation that each district
18received in the 2002-03 fiscal year, not including the minimum
19allocation. There shall be one share amount for each district.

20(iii) The percentage share shall be calculated for each district
21by dividing the district’s share amount by the base amount, and
22multiplying the result by the total directed funds available under
23this subparagraph.

24(b) Funds shall be distributed as expeditiously as reasonably
25practicable, and a report of the distribution shall be made available
26to the public.

27(c) All funds allocated pursuant to this section shall be expended
28as provided in the guidelines adopted pursuant to Section 44287
29within two years from the date of allocation. Funds not expended
30within the two years shall be returned to the Covered Vehicle
31Account within 60 days and shall be subject to further allocation
32as follows:

33(1) Within 30 days of the deadline to return funds, the state
34board shall notify the districts of the total amount of returned funds
35available for reallocation, and shall list those districts that request
36supplemental funds from the reallocation and that are able to
37expend those funds within one year.

38(2) Within 90 days of the deadline to return funds, the state
39board shall allocate the returned funds to the districts listed
40pursuant to paragraph (1).

P48   1(3) All supplemental funds distributed under this subdivision
2shall be expended consistent with the Carl Moyer Air Quality
3Standards Attainment Program within one year of the date of
4supplemental allocation. Funds not expended within one year shall
5be returned to the Covered Vehicle Account and shall be distributed
6at the discretion of the state board to districts, taking into
7consideration of each district’s ability to expeditiously utilize the
8remaining funds consistent with the Carl Moyer Air Quality
9Standards Attainment Program.

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

13

SEC. 27.  

Section 42885 of the Public Resources Code, as
14amended by Section 55 of Chapter 77 of the Statutes of 2006, is
15amended to read:

16

42885.  

(a) For purposes of this section, “California tire fee”
17means the fee imposed pursuant to this section.

18(b) (1) Before January 1, 2015, a person who purchases a new
19tire, as defined in subdivision (g), shall pay a California tire fee
20of one dollar and seventy-five cents ($1.75) per tire.

21(2) On and after January 1, 2015, a person who purchases a new
22tire, as defined in subdivision (g), shall pay a California tire fee
23of one dollar and fifty cents ($1.50) per tire.

24(3) 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(4) The retail seller shall collect the California tire fee from the
29retail purchaser at the time of sale and may retain 112 percent of
30the fee as reimbursement for any costs associated with the
31collection of the fee. The retail seller shall remit the remainder to
32the state on a quarterly schedule for deposit in the California Tire
33Recycling Management Fund, which is hereby created in the State
34Treasury.

35(c) The board, or its agent authorized pursuant to Section 42882,
36shall be reimbursed for its costs of collection, auditing, and making
37refunds associated with the California Tire Recycling Management
38Fund, but not to exceed 3 percent of the total annual revenue
39deposited in the fund.

P49   1(d) The California tire fee imposed pursuant to subdivision (b)
2shall be separately stated by the retail seller on the invoice given
3to the customer at the time of sale. Any other disposal or
4transaction fee charged by the retail seller related to the tire
5purchase shall be identified separately from the California tire fee.

6(e) A person or business who knowingly, or with reckless
7disregard, makes a false statement or representation in a document
8used to comply with this section is liable for a civil penalty for
9each violation or, for continuing violations, for each day that the
10violation continues. Liability under this section may be imposed
11in a civil action and shall not exceed twenty-five thousand dollars
12($25,000) for each violation.

13(f) In addition to the civil penalty that may be imposed pursuant
14to subdivision (e), the board may impose an administrative penalty
15in an amount not to exceed five thousand dollars ($5,000) for each
16violation of a separate provision or, for continuing violations, for
17each day that the violation continues, on a person who intentionally
18or negligently violates a permit, rule, regulation, standard, or
19requirement issued or adopted pursuant to this chapter. The board
20shall adopt regulations that specify the amount of the administrative
21penalty and the procedure for imposing an administrative penalty
22pursuant to this subdivision.

23(g) For purposes of this section, “new tire” means a pneumatic
24or solid tire intended for use with onroad or off-road motor
25vehicles, motorized equipment, construction equipment, or farm
26equipment that is sold separately from the motorized equipment,
27or a new tire sold with a new or used motor vehicle, as defined in
28Section 42803.5, including the spare tire, construction equipment,
29or farm equipment. “New tire” does not include retreaded, reused,
30or recycled tires.

31(h) The California tire fee shall not be imposed on a tire sold
32with, or sold separately for use on, any of the following:

33(1) A self-propelled wheelchair.

34(2) A motorized tricycle or motorized quadricycle, as defined
35in Section 407 of the Vehicle Code.

36(3) A vehicle that is similar to a motorized tricycle or motorized
37quadricycle and is designed to be operated by a person who, by
38reason of the person’s physical disability, is otherwise unable to
39move about as a pedestrian.

P50   1(i) This section shall remain in effect only until January 1, 2024,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2024, deletes or extends that date.

4

SEC. 28.  

Section 42885 of the Public Resources Code, as added
5by Section 13.5 of Chapter 707 of the Statutes of 2004, is amended
6to read:

7

42885.  

(a) For purposes of this section, “California tire fee”
8means the fee imposed pursuant to this section.

9(b) (1) Every person who purchases a new tire, as defined in
10subdivision (g), shall pay a California tire fee of seventy-five cents
11($0.75) per tire.

12(2) The retail seller shall charge the retail purchaser the amount
13of the California tire fee as a charge that is separate from, and not
14included in, any other fee, charge, or other amount paid by the
15retail purchaser.

16(3) The retail seller shall collect the California tire fee from the
17retail purchaser at the time of sale and may retain 3 percent of the
18fee as reimbursement for any costs associated with the collection
19of the fee. The retail seller shall remit the remainder to the state
20on a quarterly schedule for deposit in the California Tire Recycling
21Management Fund, which is hereby created in the State Treasury.

22(c) The board, or its agent authorized pursuant to Section 42882,
23shall be reimbursed for its costs of collection, auditing, and making
24refunds associated with the California Tire Recycling Management
25Fund, but not to exceed 3 percent of the total annual revenue
26deposited in the fund.

27(d) The California tire fee imposed pursuant to subdivision (b)
28shall be separately stated by the retail seller on the invoice given
29to the customer at the time of sale. Any other disposal or
30transaction fee charged by the retail seller related to the tire
31purchase shall be identified separately from the California tire fee.

32(e) Any person or business who knowingly, or with reckless
33disregard, makes any false statement or representation in any
34document used to comply with this section is liable for a civil
35penalty for each violation or, for continuing violations, for each
36day that the violation continues. Liability under this section may
37be imposed in a civil action and shall not exceed twenty-five
38thousand dollars ($25,000) for each violation.

39(f) In addition to the civil penalty that may be imposed pursuant
40to subdivision (e), the board may impose an administrative penalty
P51   1in an amount not to exceed five thousand dollars ($5,000) for each
2violation of a separate provision or, for continuing violations, for
3each day that the violation continues, on any person who
4intentionally or negligently violates any permit, rule, regulation,
5standard, or requirement issued or adopted pursuant to this chapter.
6The board shall adopt regulations that specify the amount of the
7administrative penalty and the procedure for imposing an
8administrative penalty pursuant to this subdivision.

9(g) For purposes of this section, “new tire” means a pneumatic
10or solid tire intended for use with onroad or off-road motor
11vehicles, motorized equipment, construction equipment, or farm
12equipment that is sold separately from the motorized equipment,
13or a new tire sold with a new or used motor vehicle, as defined in
14Section 42803.5, including the spare tire, construction equipment,
15or farm equipment. “New tire” does not include retreaded, reused,
16or recycled tires.

17(h) The California tire fee may not be imposed on any tire sold
18with, or sold separately for use on, any of the following:

19(1) Any self-propelled wheelchair.

20(2) Any motorized tricycle or motorized quadricycle, as defined
21in Section 407 of the Vehicle Code.

22(3) Any vehicle that is similar to a motorized tricycle or
23motorized quadricycle and is designed to be operated by a person
24who, by reason of the person’s physical disability, is otherwise
25unable to move about as a pedestrian.

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

27

SEC. 29.  

Section 42889 of the Public Resources Code, as
28amended by Section 3 of Chapter 333 of the Statutes of 2009, is
29amended to read:

30

42889.  

(a) Commencing January 1, 2005, of the moneys
31collected pursuant to Section 42885, an amount equal to
32seventy-five cents ($0.75) per tire on which the fee is imposed
33shall be transferred by the State Board of Equalization to the Air
34Pollution Control Fund. The state board shall expend those moneys,
35or allocate those moneys to the districts for expenditure, to fund
36programs and projects that mitigate or remediate air pollution
37caused by tires in the state, to the extent that the state board or the
38applicable district determines that the program or project
39remediates air pollution harms created by tires upon which the fee
40described in Section 42885 is imposed.

P52   1(b) The remaining moneys collected pursuant to Section 42885
2shall be used to fund the waste tire program, and shall be
3appropriated to the board in the annual Budget Act in a manner
4consistent with the five-year plan adopted and updated by the
5board. These moneys shall be expended for the payment of refunds
6under this chapter and for the following purposes:

7(1) To pay the administrative overhead cost of this chapter, not
8to exceed 6 percent of the total revenue deposited in the fund
9annually, or an amount otherwise specified in the annual Budget
10Act.

11(2) To pay the costs of administration associated with collection,
12making refunds, and auditing revenues in the fund, not to exceed
133 percent of the total revenue deposited in the fund, as provided
14in subdivision (c) of Section 42885.

15(3) To pay the costs associated with operating the tire recycling
16program specified in Article 3 (commencing with Section 42870).

17(4) To pay the costs associated with the development and
18enforcement of regulations relating to the storage of waste tires
19and used tires. The board shall consider designating a city, county,
20or city and county as the enforcement authority of regulations
21relating to the storage of waste tires and used tires, as provided in
22subdivision (c) of Section 42850, and regulations relating to the
23hauling of waste and used tires, as provided in subdivision (b) of
24Section 42963. If the board designates a local entity for that
25purpose, the board shall provide sufficient, stable, and
26noncompetitive funding to that entity for that purpose, based on
27available resources, as provided in the five-year plan adopted and
28updated as provided in subdivision (a) of Section 42885.5. The
29board may consider and create, as appropriate, financial incentives
30for citizens who report the illegal hauling or disposal of waste tires
31as a means of enhancing local and statewide waste tire and used
32tire enforcement programs.

33(5) To pay the costs of cleanup, abatement, removal, or other
34remedial action related to waste tire stockpiles throughout the state,
35including all approved costs incurred by other public agencies
36involved in these activities by contract with the board. Not less
37than six million five hundred thousand dollars ($6,500,000) shall
38be expended by the board during each of the following fiscal years
39for this purpose: 2001-02 to 2006-07, inclusive.

P53   1(6) To make studies and conduct research directed at promoting
2and developing alternatives to the landfill disposal of waste tires.

3(7) To assist in developing markets and new technologies for
4used tires and waste tires. The board’s expenditure of funds for
5purposes of this subdivision shall reflect the priorities for waste
6management practices specified in subdivision (a) of Section
740051.

8(8) To pay the costs associated with implementing and operating
9a waste tire and used tire hauler program and manifest system
10pursuant to Chapter 19 (commencing with Section 42950).

11(9) To pay the costs to create and maintain an emergency
12reserve, which shall not exceed one million dollars ($1,000,000).

13(10) To pay the costs of cleanup, abatement, or other remedial
14action related to the disposal of waste tires in implementing and
15operating the Farm and Ranch Solid Waste Cleanup and Abatement
16Grant Program established pursuant to Chapter 2.5 (commencing
17with Section 48100) of Part 7.

18(11) To fund border region activities specified in paragraph (8)
19of subdivision (b) of Section 42885.5.

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

23

SEC. 30.  

Section 42889 of the Public Resources Code, as
24amended by Section 4 of Chapter 333 of the Statutes of 2009, is
25amended to read:

26

42889.  

Funding for the waste tire program shall be appropriated
27to the board in the annual Budget Act. The moneys in the fund
28shall be expended for the payment of refunds under this chapter
29and for the following purposes:

30(a) To pay the administrative overhead cost of this chapter, not
31to exceed 5 percent of the total revenue deposited in the fund
32annually, or an amount otherwise specified in the annual Budget
33Act.

34(b) To pay the costs of administration associated with collection,
35making refunds, and auditing revenues in the fund, not to exceed
363 percent of the total revenue deposited in the fund, as provided
37in subdivision (b) of Section 42885.

38(c) To pay the costs associated with operating the tire recycling
39program specified in Article 3 (commencing with Section 42870).

P54   1(d) To pay the costs associated with the development and
2enforcement of regulations relating to the storage of waste tires
3and used tires. The board shall consider designating a city, county,
4or city and county as the enforcement authority of regulations
5relating to the storage of waste tires and used tires, as provided in
6subdivision (c) of Section 42850, and regulations relating to the
7hauling of waste and used tires, as provided in subdivision (b) of
8Section 42963. If the board designates a local entity for that
9purpose, the board shall provide sufficient, stable, and
10noncompetitive funding to that entity for that purpose, based on
11available resources, as provided in the five-year plan adopted and
12updated as provided in subdivision (a) of Section 42885.5. The
13board may consider and create, as appropriate, financial incentives
14for citizens who report the illegal hauling or disposal of waste tires
15as a means of enhancing local and statewide waste tire and used
16tire enforcement programs.

17(e) To pay the costs of cleanup, abatement, removal, or other
18remedial action related to waste tire stockpiles throughout the state,
19including all approved costs incurred by other public agencies
20involved in these activities by contract with the board. Not less
21than six million five hundred thousand dollars ($6,500,000) shall
22be expended by the board during each of the following fiscal years
23for this purpose: 2001-02 to 2006-07, inclusive.

24(f) To fund border region activities specified in paragraph (8)
25of subdivision (b) of Section 42885.5.

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

27

SEC. 31.  

Section 9250.1 of the Vehicle Code is amended to
28read:

29

9250.1.  

(a) Beginning July 1, 2008, the fee described in Section
309250 shall be increased by three dollars ($3).

31(b) Two dollars ($2) of the increase shall be deposited into the
32Alternative and Renewable Fuel and Vehicle Technology Fund
33created by Section 44273 of the Health and Safety Code, and one
34dollar ($1) shall be deposited into the Enhanced Fleet
35Modernization Subaccount created by Section 44126 of the Health
36and 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.

P55   1

SEC. 32.  

Section 9250.2 of the Vehicle Code, as amended by
2Section 15 of Chapter 707 of the Statutes of 2004, is amended to
3read:

4

9250.2.  

(a) The department, if requested by the Sacramento
5Metropolitan Air Quality Management District pursuant to Section
641081 of the Health and Safety Code, shall impose and collect a
7surcharge on the registration fees for every motor vehicle registered
8in that district, not to exceed the amount of six dollars ($6), as
9specified by the governing body of that district.

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

13

SEC. 33.  

Section 9250.2 of the Vehicle Code, as added by
14Section 15.5 of Chapter 707 of the Statutes of 2004, is amended
15to read:

16

9250.2.  

(a) The department, if requested by the Sacramento
17Metropolitan Air Quality Management District pursuant to Section
1841081 of the Health and Safety Code, shall impose and collect a
19surcharge on the registration fees for every motor vehicle registered
20in that district, not to exceed four dollars ($4).

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

22

SEC. 34.  

Section 9261.1 of the Vehicle Code is amended to
23read:

24

9261.1.  

(a) Beginning July 1, 2008, the fee described in Section
259261, as adjusted pursuant to Section 1678, shall be increased by
26five dollars ($5).

27(b) Two dollars and fifty cents ($2.50) of the increase shall be
28deposited into the Alternative and Renewable Fuel and Vehicle
29Technology Fund created by Section 44273 of the Health and
30Safety Code, and two dollars and fifty cents ($2.50) shall be
31deposited into the Air Quality Improvement Fund created by
32Section 44274.5 of the Health and Safety Code.

33(c) 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. 35.  

Section 9853.6 of the Vehicle Code is amended to
37read:

38

9853.6.  

(a) (1) Beginning July 1, 2008, the fee described in
39paragraph (1) of subdivision (b) of Section 9853 shall be increased
40by ten dollars ($10).

P56   1(2) Five dollars ($5) of the increase shall be deposited into the
2Alternative and Renewable Fuel and Vehicle Technology Fund
3created by Section 44273 of the Health and Safety Code and five
4dollars ($5) shall be deposited into the Air Quality Improvement
5Fund created by Section 44274.5 of the Health and Safety Code.

6(b) (1) Beginning July 1, 2008, the fee described in paragraph
7(2) of subdivision (b) of Section 9853 shall be increased by twenty
8dollars ($20).

9(2) Ten dollars ($10) of the increase shall be deposited into the
10Alternative and Renewable Fuel and Vehicle Technology Fund
11created by Section 44273 of the Health and Safety Code and ten
12dollars ($10) shall be deposited into the Air Quality Improvement
13Fund created by Section 44274.5 of the Health and Safety Code.

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

17

SEC. 36.  

This act is an urgency statute necessary for the
18immediate preservation of the public peace, health, or safety within
19the meaning of Article IV of the Constitution and shall go into
20immediate effect. The facts constituting the necessity are:

21To ensure stable funding for programs to reduce air pollution
22for the protection of the public health and safety, it is necessary
23for this measure to take effect immediately.



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