Amended in Assembly August 19, 2014

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 BillNo. 1204


Introduced by Senators Lara and Pavley

February 20, 2014


An act to add Sectionbegin delete 39719end deletebegin insert 39719.2end insert to the Health and Safety Code, relating to air pollution.

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 createbegin delete a multiyearend deletebegin insert an annualend insert framework and plan, and to develop guidance through the existing Air Quality Improvement Program Funding Plan process 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:

P2    1

SECTION 1.  

Sectionbegin delete 39719end deletebegin insert 39719.2end insert is added to the Health
2and Safety Code
, to read:

3

begin delete39719.end delete
4begin insert39719.2.end insert  

(a) The California Clean Truck, Bus, and Off-Road
5Vehicle and Equipment Technology Program is hereby created,
6to be administered by the state board in conjunction with the State
7Energy Resources Conservation and Development Commission.
8The program, from moneys appropriated from the fund for purposes
9of the program, shall fund development, demonstration,
10precommercial pilot, and early commercial deployment of zero-
11and near-zero emission truck, bus, and off-road vehicle and
12equipment technologies. Priority shall be given to projects located
13in disadvantaged communities pursuant to the requirements of
14Sections 39711 and 39713.

15(b) Projects funded by the program shall be limited to the
16following:

17(1) Technology development, demonstration, precommercial
18pilots, and early commercial deployments of zero- and near-zero
19emission medium- and heavy-duty truck technology, including
20projects that help to facilitate clean goods-movement corridors.
21begin insert Until January 1, 2018, no less than 20 percent of funding made
22available for purposes of this paragraph shall support early
23commercial deployment of existing zero- and near-zero emission
24heavy duty truck technology.end insert

25(2) Zero- and near-zero emission bus technology development,
26demonstration, precommercial pilots, and early commercial
27deployments, including pilots of multiple vehicles at one site or
28region.

P3    1(3) Zero- and near-zero emission off-road vehicle and equipment
2technology development, demonstration, precommercial pilots,
3and early commercial deployments, including vehicles and
4equipment in the port, agriculture, marine, construction, and rail
5sectors.

6(4) Purchase incentives, including point-of-sale, for
7commercially available zero- and near-zero emission truck, bus,
8and off-road vehicle and equipment technologies and fueling
9infrastructure to support early market deployments of alternative
10technologies and to increase manufacturer volumes and accelerate
11market acceptance.

begin delete

12(5) Nonvehicle-based projects that support greater freight
13efficiency and greenhouse gas emissions reductions, including,
14but not limited to, advanced intelligent transportation systems,
15autonomous vehicles, and other freight information and operations
16technologies.

end delete
begin insert

17(5) Projects that support greater commercial motor vehicle
18freight efficiency and greenhouse gas emissions reductions,
19including, but not limited to, advanced intelligent transportation
20systems, autonomous vehicles, and other freight information and
21operations technologies.

end insert

22(c) The state board, in consultation with the State Energy
23Resources Conservation and Development Commission, shall
24develop guidance through the existing Air Quality Improvement
25 Program Funding Plan process for the implementation of this
26section that is consistent with the California Global Warming
27Solutions Act of 2006 (Division 25.5 (commencing with Section
2838500)) and this chapter.

29(d) The guidance developed pursuant to subdivision (c) shall
30do all of the following:

31(1) Outline performance criteria and metrics for deployment
32incentives. The goal shall be to design a simple and predictable
33structure that provides incentives for truck, bus, and off-road
34vehicle and equipment technologies that provide significant
35greenhouse gas reduction and air quality benefits.

36(2) Ensure that program investments are coordinated with
37funding programs developed pursuant to Chapter 8.9 (commencing
38with Section 44270) of Part 5.

39(3) Promote projects that assist the state in reaching its climate
40goals beyond 2020, consistent with Sections 38550 and 38551.

P4    1(4) Promote investments in medium- and heavy-duty trucking,
2including, but not limited to, vocational trucks, short haul and long
3haul trucks, buses, and off-road vehicles and equipment, including,
4but not limited to, port equipment, agricultural equipment, marine
5equipment, and rail equipment.

6(5) Structure purchase incentives for eligible technologies to be
7sufficient to increase use of the cleanest vehicles in disadvantaged
8communities.

9(6) Allow for remanufactured and retrofitted vehicles to qualify
10for purchase incentives if those vehicles meet warranty and
11emissions requirements, as determined by the state board.

12(7) Establish a competitive process for the allocation of funds
13for projects funded pursuant to this program.

14(8) Leverage, to the maximum extent feasible, federal or private
15funding.

16(9) Ensure that the results of emissions reductions or benefits
17can be measured or quantified.

18(10) Ensure that activities undertaken pursuant to this program
19complement, and do not interfere with, efforts to achieve and
20maintain federal and state ambient air quality standards and to
21reduce toxic air contaminants.

22(11) Establish sustainability goals to minimize project impacts
23to natural resources, especially with respect to state and federal
24lands.

25(e) Eligible projects to be funded by the program do not include
26projects required to be undertaken pursuant to state or federal law,
27district rules or regulations, memoranda of understanding with a
28governmental entity, or other legally binding agreements. The state
29board may, however, fund studies, technology development, and
30demonstration projects focused on improving performance and
31financial payback, multivehicle and early commercial scale
32deployments, and deployment of early commercially available
33advanced vehicles and equipment.

34(f) In evaluating potential projects to be funded pursuant to this
35section, the state board shall give priority to projects that
36demonstrate one or more of the following characteristics:

37(1) Benefit to disadvantaged communities pursuant to Sections
3839711 and 39713.

39(2) The ability to leverage additional public and private funding.

40(3) The potential for cobenefits or multiple-benefit attributes.

P5    1(4) The potential for the project to be replicated.

2(5) Regional benefit, with focus on collaboration between
3multiple entities.

4(6) Support for technologies with broad market and emission
5reduction potential.

6(7) Support for projects addressing technology and market
7barriers not addressed by other programs.

8(8) Support for enabling technologies that benefit multiple
9technology pathways.

10(g) To assist in the implementation of this section, the state
11board, in consultation with the State Energy Resources
12Conservation and Development Commission, shall create an annual
13framework and plan. The framework and plan shall be developed
14with public input and may utilize existing investment plan
15processes and workshops as well as existing state and third-party
16research and technology roadmaps. The framework and plan shall
17do all of the following:

18(1) Articulate an overarching vision for technology development,
19demonstration, precommercial pilot, and early commercial
20deployments, with a focus on moving technologies through the
21commercialization process.

22(2) Outline technology categories and performance criteria for
23technologies and applications that may be considered for funding
24under the program. This shall include technologies for medium-
25and heavy-duty trucking, including, but not limited to, vocational
26trucks, short haul and long haul trucks, buses, and off-road vehicles
27and equipment, including, but not limited to, port equipment,
28agricultural equipment, construction equipment, marine equipment,
29and rail equipment.

30(3) Describe the roles of the relevant agencies and the process
31for coordination.

32(h) For the purpose of this section, “zero- and near-zero
33emission” means vehicles, fuels, and related technologies that
34reduce greenhouse gas emissions and improve air quality when
35compared with conventional or fully commercialized alternatives,
36as defined by the state board in consultation with the State Energy
37Resources Conservation and Development Commission. “Zero-
38and near-zero emission” may include, but is not limited to, zero
39emission technology, enabling technologies that provide a pathway
40to emission reductions, advanced or alternative fuel engines for
P6    1long haul trucks, and hybrid or alternative fuel technologies for
2trucks and off-road equipment.



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