BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1204|
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UNFINISHED BUSINESS
Bill No: SB 1204
Author: Lara (D) and Pavley (D), et al.
Amended: 8/22/14
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 4/1/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-1, 4/30/14
AYES: Hill, Gaines, Hancock, Jackson, Leno, Pavley
NOES: Fuller
SENATE APPROPRIATIONS COMMITTEE : 6-1, 5/23/14
AYES: De León, Gaines, Hill, Lara, Padilla, Steinberg
NOES: Walters
SENATE FLOOR : 26-10, 5/27/14
AYES: Beall, Block, Cannella, Corbett, Correa, De León,
DeSaulnier, Evans, Gaines, Galgiani, Hancock, Hernandez, Hill,
Hueso, Jackson, Lara, Leno, Lieu, Mitchell, Monning, Padilla,
Pavley, Roth, Steinberg, Torres, Wolk
NOES: Anderson, Berryhill, Fuller, Huff, Knight, Morrell,
Nielsen, Vidak, Walters, Wyland
NO VOTE RECORDED: Calderon, Liu, Wright, Yee
ASSEMBLY FLOOR : 59-16, 8/27/14 - See last page for vote
SUBJECT : Vehicle emissions reductions
SOURCE : Author
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DIGEST : This bill creates a California Clean Truck, Bus, and
Off-Road Vehicle and Equipment Technology Program (Technology
Program) to fund development, demonstration, precommercial
pilot, and early commercial deployment of zero- and
near-zero-emission truck, bus, and off-road vehicle and
equipment technologies. This bill provides that the Technology
Program shall be funded from the Greenhouse Gas Reduction Fund
(GGRF), and shall prioritize projects located in disadvantaged
communities.
Assembly Amendments add projects that support greater commercial
motor vehicle and equipment freight efficiency and greenhouse
gas (GHG) emissions reductions, as specified to the list of
projects eligible to be funded; require until January 1, 2018,
no less than 20% of funding made available support early
commercial deployment of existing zero- and near-zero emission
heavy duty truck technology; delete the provision which
specified that eligible projects do not include projects
required to be undertaken pursuant to state or federal law,
district rules or regulations, or other legally binding
agreements; and make technical and clarifying changes.
ANALYSIS :
California Global Warming Solution Act of 2006 and GGRF
AB 32 (Núñez, Chapter 488, Statutes of 2006) requires the Air
Resources Board (ARB) to develop a plan of how to reduce
emissions to 1990 levels, by 2020.
AB 32 also requires ARB to ensure that GHG emission reduction
requirements and programs, to the extent feasible, direct public
and private investment toward the most disadvantaged communities
in the state. It authorizes ARB to adopt a schedule of fees to
be paid by GHG emission sources regulated under AB 32 and
deposited into the GGRF (commonly known as cap-and-trade),
available upon appropriation by the Legislature to carry out AB
32 requirements.
SB 535 (De Leon, Chapter 830, Statutes of 2012) requires the
Department of Finance, when developing the three-year investment
plan for cap-and-trade monies, to allocate 25% of these funds to
projects that provide benefits to disadvantaged communities, and
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to allocate a minimum of 10% of available cap-and-trade monies
to projects located within disadvantaged communities. The bill
outlines a process to identify these communities and allows for
periodic modification as necessary.
Air Quality Improvement Program (AQIP)
AB 118 (Núñez, Chapter 750, Statutes of 2007) establishes the
AQIP, administered by ARB in consultation with local air
districts. AQIP is funded through surcharges on vehicle
registration fees, a portion of vessel registration fees, a
portion of the Smog Abatement Fee (paid to register vehicles
less than six model years old and therefore exempt from smog
check), and an increase in the fee for identification plates for
various types of vehicles, such as farm trailers and logging
vehicles, operated on public roads.
AQIP provides competitive grants to fund projects to improve the
air quality impacts of alternative fuels and vehicles, vessels,
and equipment technologies. AQIP encompasses several programs,
including the Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Project (HVIP). HVIP, which is administered by ARB
and its contractor, CALSTART, provides vouchers to California
fleet owners to help purchase hybrid and zero-emission trucks
and buses.
Alternative and Renewable Fuel and Vehicle Technology Program
(ARFVTP)
AB 118 also establishes the ARFVTP, administered by the
California Energy Commission (CEC). ARFVTP provides funding for
development and deployment of alternative and renewable fuels
and advanced transportation technologies to help attain the
state's climate change goals. Eligible projects include, for
example, development, improvement, and production of alternative
and renewable low-carbon fuels; improvement of light-, medium-,
and heavy-duty vehicle technologies; and expansion of
infrastructure connected with existing fleets, public transit,
and transportation corridors.
This bill:
1.Establishes the Technology Program, administered by ARB in
conjunction with CEC, and requires the Technology Program fund
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development, demonstration, pre-commercial pilot and early
commercial deployment of zero-and near-zero emission truck,
bus, and off-road vehicle and equipment technologies from
monies appropriated to the Technology Program from GGRF.
2.Specifies expenditure of the Technology Program funds include,
but not limited to, projects that:
A. Develop technology, demonstrate, and pilot commercial
deployment of zero and near-zero emission medium- and
heavy-duty truck technology, including projects that
facilitate clean goods movement with no less than 20% of
funding going toward early commercial deployment of
existing zero and near-zero emission heavy duty truck
technology until January 1, 2018.
B. Develop zero and near-zero emission bus technology,
demonstrate pre-commercial pilots, and provide early
commercial deployments, including pilots of multiple
vehicles at one site or region;
C. Develop, demonstrate, pilot, and deploy zero and
near-zero emission off-road vehicle and equipment in port,
agricultural, marine, construction, and rail sectors;
D. Develop purchase incentives, which may include
point-of-sale incentives, for commercially available zero
and near-zero emission truck, bus, and off-road vehicle and
equipment technologies and fueling infrastructure to
accelerate market acceptance; and
E. Develop projects that support greater commercial motor
vehicle and equipment freight efficiency and GHG emissions
reductions, including advanced intelligent transportation
systems, autonomous vehicles, and other freight information
and operations technologies.
1.Requires that ARB, in consultation with CEC, develop guidance,
as specified, for the implementation of the Technology
Program.
2.Requires ARB, in consultation with CEC, to create an annual
framework and plan that articulates the overarching vision for
the Technology Program, outlines performance criteria, and
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describes agency roles.
3.Requires, in evaluating potential projects to be funded, ARB
give priority to projects that demonstrate one or more of the
following characteristics:
A. Benefit to disadvantaged communities.
B. The ability to leverage additional public and private
funding.
C. The potential for cobenefits or multiple-benefit
attributes.
D. The potential for the project to be replicated.
E. Regional benefit, with focus on collaboration between
multiple entities.
F. Support for technologies with broad market and emissions
reduction potential.
G. Support for projects addressing technology and market
barriers not addressed by other programs.
H. Support for enabling technologies that benefit multiple
technology pathways.
1.Defines "zero and near-zero emission" to mean vehicles, fuels,
and related technologies that reduce GHG emissions when
compared with conventional or fully commercialized
alternatives, as defined by ARB, in consultation with CEC.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee:
1.Unknown ongoing cost pressures to fund the Technology Program
expenditures and grants, likely in the tens of millions of
dollars annually GGRF.
2.Increased annual costs to ARB, from the GGRF, of approximately
$450,000 to develop eligibility criteria for zero emission bus
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and truck retrofits and remanufactures.
3.Increased annual costs to ARB, from the GGRF, of approximately
$200,000 to augment the AQIP program plan and guidelines to
provide guidance to the Technology Program.
4.Increased annual costs to ARB, from the GGRF, to develop and
implement non-vehicle projects that support greater freight
efficiency and GHG reductions.
5.One-time costs to the CEC, from the GGRF, to assist in the
development of a multiyear framework and plan. Ongoing
absorbable costs.
SUPPORT : (Verified 8/27/14)
Breathe California
California Association of Port Authorities
California Bus Association
California League of Conservation Voters
California Natural Gas Vehicle Coalition
California Trucking Association
CALSTART
Center for Transportation and the Environment
Cities of Long Beach and Salinas
Coalition for Clean Air
Communities for a Better Environment
Environment California
Environmental Defense Fund
Los Angeles County Metropolitan Transportation Authority
Natural Resources Defense Council
Sierra Club of California
SoCalGas
South Coast Air Quality Management District
The Greenlining Institute
Union of Concerned Scientists
UPS
OPPOSITION : (Verified 8/27/14)
California Chamber of Commerce
California League of Food Processors
California Manufacturers and Technology Association
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ARGUMENTS IN SUPPORT : The author's office notes that 40% of
California's contribution to climate pollution comes from cars,
trucks, trains, and other mobile sources. While technology for
light-duty cars has progressed significantly, making it widely
available for commercial use, technology for heavy-duty trucks
and buses is severely lagging. It is essential to reduce GHG
emissions and improve air quality in areas that suffer
disproportionately from air pollution, such as those near ports
or major transportation corridors. The region surrounding the
ports of Los Angeles and Long Beach, for example, ranks as one
of the most polluted in the country. The author's office states
that this bill will make it easier for truck owners to
transition to zero- and near-zero technology and improve the
health of millions of Californians who live in communities that
are burdened daily by transportation-related pollution.
ARGUMENTS IN OPPOSITION : The California Chamber of Commerce
(CalChamber) writes:
CalChamber supports the cost-effective implementation of AB
32. [ARB]'s decision to arbitrarily withhold and sell
(auction) allowances will raise billions of dollars at the
expense of California businesses and consumers. This approach
runs contrary to expressed goals of AB 32, which is maximizing
benefits and minimizing leakage risks and costs.
As CalChamber has long held, [ARB] lacks authority to raise
revenue through the auction of allowances. Given the
substantial legal uncertainties surrounding [ARB]'s authority
to impose an auction, expending the proceeds is premature;
therefore we must respectfully OPPOSE SB 1204 (Lara) which
seeks to fund zero and near-zero emission truck, bus, and
off-road vehicle and equipment technologies with AB 32 auction
revenues.
ASSEMBLY FLOOR : 59-16, 8/27/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,
Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chávez, Chesbro, Cooley, Dababneh, Dahle, Daly, Dickinson,
Eggman, Fong, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gray, Hall, Roger Hernández, Holden, Jones-Sawyer, Levine,
Linder, Lowenthal, Maienschein, Medina, Mullin, Muratsuchi,
Nazarian, Pan, Patterson, Perea, John A. Pérez, V. Manuel
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Pérez, Quirk, Quirk-Silva, Rendon, Rodriguez, Salas, Skinner,
Stone, Ting, Weber, Wieckowski, Williams, Yamada, Atkins
NOES: Allen, Conway, Donnelly, Fox, Beth Gaines, Gorell, Grove,
Hagman, Jones, Logue, Mansoor, Melendez, Nestande, Wagner,
Waldron, Wilk
NO VOTE RECORDED: Bigelow, Harkey, Olsen, Ridley-Thomas, Vacancy
JA:k 8/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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