BILL NUMBER: SB 1204	AMENDED
	BILL TEXT

	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

INTRODUCED BY   Senators Lara and Pavley

                        FEBRUARY 20, 2014

   An act to add Section  39719   39719.2 
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 create  a multiyear   an
annual  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:

  SECTION 1.  Section  39719   39719.2  is
added to the Health and Safety Code, to read:
    39719.   39719.2.   (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) Technology 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.  Until January 1,
2018, no less than 20 percent of funding made available for purposes
of this paragraph shall support early commercial deployment of
existing zero- and near-zero emission heavy duty truck technology.

   (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 alternative technologies and to
increase manufacturer volumes and accelerate market acceptance.

   (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.  
   (5) Projects that support greater commercial motor vehicle 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. 
   (c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall develop
guidance through the existing Air Quality Improvement Program Funding
Plan process for the implementation of this section that is
consistent with the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500)) and this chapter.
   (d) The guidance developed 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 use 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, as determined by the state board.
   (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 minimize project impacts to
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 an annual 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.