Amended in Assembly June 18, 2014

Amended in Senate May 6, 2014

Amended in Senate April 21, 2014

Amended in Senate March 24, 2014

Senate Bill No. 1204

Introduced by Senators Lara and Pavley

February 20, 2014

An act to add Section 39719 to the Health and Safety Code, relating to begin delete vehicles. end delete begin insert air pollution. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1204, as amended, Lara. California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.

Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, commonly known as cap and trade revenues, to be deposited in the Greenhouse Gas Reduction Fund, and to be used, upon appropriation by the Legislature, for specified purposes.

This bill would create the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, to be funded from cap and trade revenues, to fund zero- and near-zero emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified, with priority to be given to certain projects, including projects that benefit disadvantaged communities. The program would be administered by the state board, in conjunction with the State Energy Resources Conservation and Development Commission. The bill would require the state board, in consultation with the commission, to create a multiyear framework and plan, and to begin delete adopt guidelines end delete begin insert develop guidance through the existing Air Quality Improvement Program Funding Plan process end insert for implementation of the program.

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

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

SECTION 1.  

Section 39719 is added to the Health and Safety
Code, to read:

39719.  

(a) The California Clean Truck, Bus, and Off-Road
Vehicle and Equipment Technology Program is hereby created,
to be administered by the state board in conjunction with the State
Energy Resources Conservation and Development Commission.
The program, from moneys appropriated from the fund for purposes
of the program, shall fund development, demonstration,
precommercial pilot, and early commercial deployment of zero-
and near-zero emission truck, bus, and off-road vehicle and
equipment technologies. Priority shall be given to projects located
in disadvantaged communities pursuant to the requirements of
Sections 39711 and 39713.

(b) Projects funded by the program shall be limited to the
following:

(1)  begin delete Market end delete begin insert Technology end insert development, demonstration,
precommercial pilots, and early commercial deployments of zero-
and near-zero emission medium- and heavy-duty truck technology,
including projects that help to facilitate clean goods-movement
corridors.

(2) Zero- and near-zero emission bus technology development,
demonstration, precommercial pilots, and early commercial
deployments, including pilots of multiple vehicles at one site or
region.

(3) Zero- and near-zero emission off-road vehicle and equipment
technology development, demonstration, precommercial pilots,
and early commercial deployments, including vehicles and
equipment in the port, agriculture, marine, construction, and rail
sectors.

(4) Purchase incentives, including point-of-sale, for
commercially available zero- and near-zero emission truck, bus,
and off-road vehicle and equipment technologies and fueling
infrastructure to support early market deployments of begin delete new end delete
begin insert alternative end insert technologies and to increase manufacturer volumes
and accelerate market acceptance.

begin insert

(5) Nonvehicle-based projects that support greater freight
efficiency and greenhouse gas emissions reductions, including,
but not limited to, advanced intelligent transportation systems,
autonomous vehicles, and other freight information and operations
technologies.

end insert

(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall
develop begin delete guidelines end delete begin insert guidance through the existing Air Quality
Improvement Program Funding Plan process end insert for the
implementation of this section that begin delete are end delete begin insert is end insert consistent with the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500)) and this chapter.

(d) The begin delete guidelines adopted end delete begin insert guidance developed end insert pursuant to
subdivision (c) shall do all of the following:

(1) Outline performance criteria and metrics for deployment
incentives. The goal shall be to design a simple and predictable
structure that provides incentives for truck, bus, and off-road
vehicle and equipment technologies that provide significant
greenhouse gas reduction and air quality benefits.

(2) Ensure that program investments are coordinated with
funding programs developed pursuant to Chapter 8.9 (commencing
with Section 44270) of Part 5.

(3) Promote projects that assist the state in reaching its climate
goals beyond 2020, consistent with Sections 38550 and 38551.

(4) Promote investments in medium- and heavy-duty trucking,
including, but not limited to, vocational trucks, short haul and long
haul trucks, buses, and off-road vehicles and equipment, including,
but not limited to, port equipment, agricultural equipment, marine
equipment, and rail equipment.

(5) Structure purchase incentives for eligible technologies to be
sufficient to increase begin delete sales end delete begin insert use end insert of the cleanest vehicles in
disadvantaged communities.

(6) Allow for remanufactured and retrofitted vehicles to qualify
for purchase incentives if those vehicles meet warranty and
emissions requirements begin insert , as determined by the state board end insert .

(7) Establish a competitive process for the allocation of funds
for projects funded pursuant to this program.

(8) Leverage, to the maximum extent feasible, federal or private
funding.

(9) Ensure that the results of emissions reductions or benefits
can be measured or quantified.

(10) Ensure that activities undertaken pursuant to this program
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminants.

(11) Establish sustainability goals to begin delete ensure that projects will
not adversely impact end delete begin insert minimize project impacts to end insert natural resources,
especially with respect to state and federal lands.

(e) Eligible projects to be funded by the program do not include
projects required to be undertaken pursuant to state or federal law,
district rules or regulations, memoranda of understanding with a
governmental entity, or other legally binding agreements. The state
board may, however, fund studies, technology development, and
demonstration projects focused on improving performance and
financial payback, multivehicle and early commercial scale
deployments, and deployment of early commercially available
advanced vehicles and equipment.

(f) In evaluating potential projects to be funded pursuant to this
section, the state board shall give priority to projects that
demonstrate one or more of the following characteristics:

(1) Benefit to disadvantaged communities pursuant to Sections
39711 and 39713.

(2) The ability to leverage additional public and private funding.

(3) The potential for cobenefits or multiple-benefit attributes.

(4) The potential for the project to be replicated.

(5) Regional benefit, with focus on collaboration between
multiple entities.

(6) Support for technologies with broad market and emission
reduction potential.

(7) Support for projects addressing technology and market
barriers not addressed by other programs.

(8) Support for enabling technologies that benefit multiple
technology pathways.

(g) To assist in the implementation of this section, the state
board, in consultation with the State Energy Resources
Conservation and Development Commission, shall create begin delete a
multiyear end delete begin insert an annual end insert framework and plan. The framework and plan
shall be developed with public input and may utilize existing
investment plan processes and workshops as well as existing state
and third-party research and technology roadmaps. The framework
and plan shall do all of the following:

(1) Articulate an overarching vision for technology development,
demonstration, precommercial pilot, and early commercial
deployments, with a focus on moving technologies through the
commercialization process.

(2) Outline technology categories and performance criteria for
technologies and applications that may be considered for funding
under the program. This shall include technologies for medium-
and heavy-duty trucking, including, but not limited to, vocational
trucks, short haul and long haul trucks, buses, and off-road vehicles
and equipment, including, but not limited to, port equipment,
agricultural equipment, construction equipment, marine equipment,
and rail equipment.

(3) Describe the roles of the relevant agencies and the process
for coordination.

(h) For the purpose of this section, “zero- and near-zero
emission” means vehicles, fuels, and related technologies that
reduce greenhouse gas emissions and improve air quality when
compared with conventional or fully commercialized alternatives,
as defined by the state board in consultation with the State Energy
Resources Conservation and Development Commission. “Zero-
and near-zero emission” may include, but is not limited to, zero
emission technology, enabling technologies that provide a pathway
to emission reductions, advanced or alternative fuel engines for
long haul trucks, and hybrid or alternative fuel technologies for
trucks and off-road equipment.