Amended in Assembly August 22, 2014

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

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(Coauthor: Assembly Member Bonta)

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February 20, 2014


An act to add Section 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 an annual framework and plan, and to develop guidance through the existing Air Quality Improvement Programbegin delete Funding Planend deletebegin insert funding planend insert 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.  

Section 39719.2 is added to the Health and Safety
2Code
, to read:

3

39719.2.  

(a) The California Clean Truck, Bus, and Off-Road
4Vehicle and Equipment Technology Program is hereby created,
5to be administered by the state board in conjunction with the State
6Energy Resources Conservation and Development Commission.
7The program, from moneys appropriated from the fund for purposes
8of the program, shall fund development, demonstration,
9precommercial pilot, and early commercial deployment of zero-
10and near-zero emission truck, bus, and off-road vehicle and
11equipment technologies. Priority shall be given to projectsbegin delete located
12inend delete
begin insert benefittingend insert disadvantaged communities pursuant to the
13requirements of Sections 39711 and 39713.

14(b) Projectsbegin delete funded by the program shall be limited toend deletebegin insert eligible
15for funding pursuant to this section include, but are not limited to,end insert

16 the following:

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.
21Until 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.

25(2) Zero- and near-zero emission bus technology development,
26demonstration, precommercial pilots, and early commercial
P3    1deployments, including pilots of multiple vehicles at one site or
2region.

3(3) Zero- and near-zero emission off-road vehicle and equipment
4technology development, demonstration, precommercial pilots,
5and early commercial deployments, including vehicles and
6equipment in the port, agriculture, marine, construction, and rail
7sectors.

8(4) Purchase incentives,begin delete includingend deletebegin insert which may includeend insert
9 point-of-sale, for commercially available zero- and near-zero
10emission truck, bus, and off-road vehicle and equipment
11technologies and fueling infrastructure to support early market
12deployments of alternative technologies and to increase
13manufacturer volumes and accelerate market acceptance.

14(5) Projects that support greater commercial motor vehiclebegin insert and
15equipmentend insert
freight efficiency and greenhouse gas emissions
16reductions, including, but not limited to, advanced intelligent
17transportation systems, autonomous vehicles, and other freight
18information and operations technologies.

19(c) The state board, in consultation with the State Energy
20Resources Conservation and Development Commission, shall
21develop guidance through the existing Air Quality Improvement
22 Programbegin delete Funding Planend deletebegin insert funding planend insert process for the implementation
23of this section that is consistent with the California Global
24Warming Solutions Act of 2006 (Division 25.5 (commencing with
25Section 38500)) and this chapter.

26(d) The guidance developed pursuant to subdivision (c) shall
27do all of the following:

28(1) Outline performance criteria and metrics for deployment
29incentives. The goal shall be to design a simple and predictable
30structure that provides incentives for truck, bus, and off-road
31vehicle and equipment technologies that provide significant
32greenhouse gas reduction and air quality benefits.

33(2) Ensure that program investments are coordinated with
34funding programs developed pursuant tobegin delete Chapterend deletebegin insert the California
35Alternative and Renewable Fuel, Vehicle Technology, Clean, and
36Carbon Reduction Act of 2007 (Chapterend insert
8.9 (commencing with
37Section 44270) of Partbegin delete 5end deletebegin insert 5)end insert.

38(3) Promote projects that assist the state in reaching its climate
39goals 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,begin delete short haul and long
3haulend delete
begin insert short-haul and long-haulend insert trucks, buses, and off-road vehicles
4and equipment, including, but not limited to, port equipment,
5agricultural equipment, marine equipment, and rail equipment.

6(5) begin deleteStructure end deletebegin insertImplement end insertpurchase incentives for eligible
7technologiesbegin delete to be sufficientend delete to increase use of the cleanest vehicles
8in disadvantaged communities.

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 ofbegin delete fundsend delete
13begin insert moneysend insert for projects funded pursuant to thisbegin delete programend deletebegin insert sectionend insert.

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 thisbegin delete programend delete
19begin insert sectionend insert complement, and do not interfere with, efforts to achieve
20and maintain federal and state ambient air quality standards and
21to reduce toxic air contaminants.

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

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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.

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34(f)

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35begin insert(e)end insert In evaluating potential projects to be funded pursuant to this
36section, the state board shall give priority to projects that
37demonstrate one or more of the following characteristics:

38(1) Benefit to disadvantaged communities pursuant to Sections
3939711 and 39713.

40(2) The ability to leverage additional public and private funding.

P5    1(3) The potential for cobenefits or multiple-benefit attributes.

2(4) The potential for the project to be replicated.

3(5) Regional benefit, with focus on collaboration between
4multiple entities.

5(6) Support for technologies with broad market andbegin delete emissionend delete
6begin insert emissionsend insert reduction potential.

7(7) Support for projects addressing technology and market
8barriers not addressed by other programs.

9(8) Support for enabling technologies that benefit multiple
10technology pathways.

begin delete

11(g)

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12begin insert(f)end insert To assist in the implementation of this section, the state
13board, in consultation with the State Energy Resources
14Conservation and Development Commission, shall create an annual
15framework and plan. The framework and plan shall be developed
16with public input and may utilize existing investment plan
17processes and workshops as well as existing state and third-party
18research and technology roadmaps. The framework and plan shall
19do all of the following:

20(1) Articulate an overarching vision for technology development,
21demonstration, precommercial pilot, and early commercial
22deployments, with a focus on moving technologies through the
23commercialization process.

24(2) Outline technology categories and performance criteria for
25technologies and applications that may be considered for funding
26begin delete under the programend deletebegin insert pursuant to this sectionend insert. This shall include
27technologies for medium- and heavy-duty trucking, including, but
28not limited to, vocational trucks,begin delete short haul and long haulend delete
29begin insert short-haul and long-haulend insert trucks, buses, and off-road vehicles and
30equipment, including, but not limited to, port equipment,
31agricultural equipment, construction equipment, marine equipment,
32and rail equipment.

33(3) Describe the roles of the relevant agencies and the process
34for coordination.

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35(h)

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36begin insert(g)end insert Forbegin delete the purposeend deletebegin insert purposesend insert of this section, “zero- and near-zero
37emission” means vehicles, fuels, and related technologies that
38reduce greenhouse gas emissions and improve air quality when
39compared with conventional or fully commercialized alternatives,
40as defined by the state board in consultation with the State Energy
P6    1Resources Conservation and Development Commission. “Zero-
2and near-zero emission” may include, but is not limited to,begin delete zero
3emissionend delete
begin insert zero-emissionend insert technology, enabling technologies that
4provide a pathway tobegin delete emissionend deletebegin insert emissionsend insert reductions, advanced or
5alternative fuel engines forbegin delete long haulend deletebegin insert long-haulend insert trucks, and hybrid
6or alternative fuel technologies for trucks and off-road equipment.



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