Amended in Senate April 21, 2014

Senate Bill No. 1275

Introduced by Senator De León

February 21, 2014

An act to amend Section 44125 of, and to add Chapter 8.5 (commencing with Section 44258) to Part 5 of Division 26 of, the Health and Safety Code, relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

SB 1275, as amended, De León. Vehicle retirement and replacement: Charge Ahead California Initiative.

(1) Existing law creates an enhanced fleet modernization program for the retirement of high polluting vehicles to be administered by the Bureau of Automotive Repair pursuant to guidelines adopted by the State Air Resources Board. Existing law requires the program’s guidelines to be updated no later than June 30, 2015. Existing law requires the updated guidelines to ensure vehicle replacement be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired, as specified.

This bill would require the updated guidelines to ensure there be a mobility option, as defined, and that the compensation for a mobility option be no less than the combination of what the motor vehicle owner would have received as compensation toward a replacement vehicle and the amount of a specified incentive available for a qualified plug-in battery electric vehicle. The bill also would require the updated guidelines to ensure the inclusion of car sharing, as specified.

(2) Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses.

This bill would establish the Charge Ahead California Initiative to be administered by the state board, in consultation with the State Energy Resources Conservation and Development Commission, air pollution control and air quality management districts, and public stakeholders. The bill would begin insert state that the goals of the initiative are to, among other things, place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and to increase access for disadvantaged and low- and moderate-income communities to zero-emission and near-zero end insert begin insert -emission vehicles. The bill would end insert require the state board to adopt, no later than June 30, 2015, a 9-year begin delete funding end delete plan begin insert to meet the goals of the initiative end insert , commencing in the 2016-17 fiscal year, begin delete to fund end delete begin insert that establishes an estimate for the total funding necessary for end insert specified programs and projects; to adopt, no later than June 30, 2015, specified revisions to the criteria and guidelines for the Clean Vehicle Rebate Project and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project; and to establish programs that further increase access begin insert to end insert and direct benefits for disadvantaged and low- and moderate-income communities from electric transportation.

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.  

The Legislature finds and declares all of the
following:

(a) Seven of the 10 worst polluted cities in the United States
are in California. California has the largest proportion of its
population, over 40 percent, living close begin insert to end insert or near busy roadways
and who may be exposed to an elevated risk of air pollution and
health impacts.

(b) California’s low-income and disadvantaged populations
continue to face disproportionate impacts from substandard air
quality in the form of higher rates of respiratory illnesses,
hospitalizations, and premature death. Climate change is expected
also to have disproportionate impacts on disadvantaged,
low-income, and other vulnerable communities in California.

(c) Residents and businesses annually begin delete spent end delete begin insert spend end insert more than
$70 billion in transportation fuel bills.

(d) Cars and trucks are the single largest source of global
warming pollution in California. They also are the largest
contributor to air pollution that harms public health.

(e) Zero-emission and near-zero-emission vehicles, including
light-, medium-, and heavy-duty vehicles and buses, can improve
the health and welfare of all residents, especially those in lower
income households and disadvantaged communities, by reducing
air pollution and greenhouse gas emissions.

(f) California businesses stand to benefit from increased
deployment of zero-emission and near-zero-emission vehicles
through reduced fuel expenditures and reduced pollution exposure
to workers and communities.

(g) California attracts over half of the nation’s venture capital
for clean technology and ranks high among the states in the number
of workers and facilities supporting the clean vehicle and electric
vehicle industries.

(h) Automakers and truck manufacturers are in early
commercialization of zero-emission and near-zero-emission
vehicles, which can dramatically lower smog and greenhouse gas
emissions even when emissions from the production, distribution,
and refining of fuels and the generation of electricity are
considered.

(i) Electric utilities are providing clean renewable electricity in
increasing amounts to transportation customers throughout the
state. Charging-service providers are beginning to deploy electric
vehicle charging infrastructure throughout the state. Expanding
the market for zero-emission and near-zero-emission vehicles to
underserved markets in California is a priority.

(j) Low-carbon transportation has been identified as an eligible
investment under the Greenhouse Gas Reduction Fund Investment
Plan and Communities Revitalization Act (Chapter 4.1
(commencing with Section 39710) of Part 2 of Division 26 of the
Health and Safety Code). The act has identified low-carbon freight
transport and zero-emission passenger transportation as a
recommended area for investment.

(k) It is the goal of the state to place in service at least one
million zero-emission and near-zero-emission vehicles begin delete within eight
years end delete begin insert by January 1, 2023, end insert and to establish a self-sustaining
zero-emission and near-zero-emission vehicle industry in which
zero-emission and near-zero-emission vehicles are a viable
mainstream option for individual vehicle purchasers, businesses,
and public fleets.

(l) It is the goal of the state to increase access for disadvantaged
and begin delete low-income end delete begin insert low- and moderate-income end insert communities to
zero-emission and near-zero-emission vehicles and to increase the
placement of those vehicles in those communities in order to
enhance the air quality, lower greenhouse gases, and promote
overall benefits for those communities.

(m) It is the intent of the Legislature that this act be consistent
with the appropriations processes and criteria established by the
Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act (Chapter 4.1 (commencing with
Section 39710) of Part 2 of Division 26 of the Health and Safety
Code).

SEC. 2.  

Section 44125 of the Health and Safety Code is
amended to read:

44125.  

(a) No later than July 1, 2009, the state board, in
consultation with the bureau, shall adopt a program to commence
on January 1, 2010, that allows for the voluntary retirement of
passenger vehicles and light-duty and medium-duty trucks that are
high polluters. The program shall be administered by the bureau
pursuant to guidelines adopted by the state board.

(b) No later than June 30, 2015, the state board, in consultation
with the bureau, shall update the program established pursuant to
subdivision (a). The program shall continue to be administered by
the bureau pursuant to guidelines updated and adopted by the state
board.

(c) The guidelines shall ensure all of the following:

(1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the bureau.

(2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized under law.

(3) The program is available for high polluting passenger
vehicles and light-duty and medium-duty trucks that have been
continuously registered in California for two years prior to
acceptance into the program or otherwise proven to have been
driven primarily in California for the last two years and have not
been registered in another state or country in the last two years.
The guidelines may require a vehicle to take, complete, or pass a
smog check inspection.

(4) The program is focused where the greatest air quality impact
can be identified.

(5) (A) Compensation for retired vehicles shall be at least one
thousand five hundred dollars ($1,500) for a low-income motor
vehicle owner, as defined in Section 44062.1, and no more than
one thousand dollars ($1,000) for all other motor vehicle owners.

(B) Replacement or a mobility option may be an option for all
motor vehicle owners and may be in addition to compensation for
vehicles retired pursuant to subparagraph (A). For low-income
motor vehicle owners, as defined in Section 44062.1, compensation
toward a replacement vehicle shall be no less than two thousand
five hundred dollars begin delete ($2,500) and compensation for the mobility
option shall be no less than the combination of what the motor
vehicle owner would have received as compensation toward a
replacement vehicle and the amount of an incentive available for
a qualified plug-in battery electric vehicle pursuant to the Clean
Vehicle Rebate Project, established pursuant to Section 44274 end delete
begin insert ($2,500) end insert . Compensation begin insert toward a replacement vehicle end insert for all other
motor vehicle owners shall not exceed compensation for
low-income motor vehicle owners. begin insert Compensation for the mobility
option shall be no less than the combination of what the motor
vehicle owner would have received as compensation toward a
replacement vehicle and the amount of an incentive available for
a qualified plug-in battery electric vehicle pursuant to the Clean
Vehicle Rebate Project, established pursuant to Section 44274. end insert

(C) Compensation for either retired or replacement vehicles for
low-income motor vehicle owners may be increased as necessary
to maximize the air quality benefits of the program while also
ensuring participation by low-income motor vehicle owners, as
defined in Section 44062.1. Increases in compensation amounts
may be based on factors, including, but not limited to, the age of
the retired or replaced vehicle, the emissions benefits of the retired
or replaced vehicle, the emissions impact of any replacement
vehicle, participation by low-income motor vehicle owners, as
defined in Section 44062.1, and the location of the vehicle in an
area of the state with the poorest air quality.

(6) Cost-effectiveness and impacts on disadvantaged and
low-income populations are considered. Program eligibility may
be limited on the basis of income to ensure the program adequately
serves persons of low or moderate income.

(7) Provisions that coordinate the vehicle retirement and
replacement and mobility option components of the program with
the vehicle retirement component of the bureau’s Consumer
Assistance Program, established pursuant to other provisions of
this chapter, to ensure vehicle owners participate in the appropriate
program to maximize emissions reductions.

(8) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.

(9) Specific steps to ensure the vehicle replacement and mobility
option component of the program is available in areas designated
as federal extreme nonattainment.

(10) A requirement that vehicles eligible for retirement have
sufficient remaining life. Demonstration of sufficient remaining
life may include proof of current registration, passing a recent
smog check inspection, or passing another test similar to a smog
check inspection.

(d) When updating the guidelines to the program established
pursuant to subdivision (a), the state board shall study and consider
all the following elements:

(1) Methods of financial assistance other than vouchers.

(2) An option for automobile dealerships or other used car sellers
to accept cars for retirement, provided the cars are dismantled
consistent with the requirements of the program.

(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.

(4) Increased emphasis on the replacement of high polluters
with cleaner vehicles or the increased use of public transit and car
sharing that results in the increased utilization of the vehicle
replacement and mobility option component of the program.

(5) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit and car
sharing use as a result of the program.

(6) Increased partnerships and outreach with community-based
organizations.

(e) For purposes of this section, the following terms have the
following meanings:

(1) “Car sharing” has the same definition as in Section 44258.

(2) “Mobility option” means a voucher for public transit or car
sharing.

SEC. 3.  

Chapter 8.5 (commencing with Section 44258) is added
to Part 5 of Division 26 of the Health and Safety Code, to read:

 

Chapter  8.5. Charge Ahead California Initiative

 

44258.  

For purposes of this chapter, the following terms have
the following meanings:

(a) “Car sharing” means a model of vehicle rental where users
can rent vehicles for short periods of time and users are members
that have been preapproved to drive.

(b) “Near-zero-emission vehicle” means a light-duty plug-in
hybrid electric vehicle or a medium-duty, heavy-duty, or bus hybrid
electric vehicle or plug-in hybrid electric vehicle.

(c) “Zero-emission vehicle” means a light-duty, medium-duty,
heavy-duty, or bus battery electric vehicle or hydrogen fuel cell
vehicle.

44258.4.  

(a) The Charge Ahead California Initiative is hereby
established and shall be administered by the state board. begin insert The goals
of this initiative are to place in service at least end insert begin insert 1,000,000 end insert
begin insert zero-emission and near-zero-emission vehicles by January 1, 2023,
to establish a self-sustaining zero-emission and near-zero-emission
vehicle industry in which zero-emission and near-zero-emission
vehicles are a viable mainstream option for individual vehicle
purchasers, businesses, and public fleets, to increase access for
disadvantaged and low- and moderate-income communities to
zero-emission and near-zero-emission vehicles, and to increase
the placement of those vehicles in those communities to enhance
the air quality, lower greenhouse gases, and promote overall
benefits for those communities. end insert

(b) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts,
and public stakeholders, shall do all of the following:

(1) No later than June 30, 2015, adopt a nine-year begin delete funding end delete plan
begin insert to meet the goals of the initiative end insert , commencing in the 2016-17
fiscal year, begin delete to fund end delete begin insert that establishes an estimate for the total funding
necessary for end insert programs and projects that include, but are not
limited to, any of the following:

(A) The Clean Vehicle Rebate Project, established pursuant to
Section 44274.

(B) The Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Project, established pursuant to begin delete Article 3 (commencing
with Section 44274) of Chapter 8.9 end delete begin insert Section 44274 end insert .

(C) The Advanced Technology Demonstration Projects,
established pursuant to Section 44274.

(D) Zero-emission and near-zero-emission vehicle fueling
infrastructure projects eligible under the Alternative and Renewable
Fuel and Vehicle Technology Program, established pursuant to
Article 2 (commencing with Section 44272) of Chapter 8.9.

(E) Light-duty, medium-duty, and heavy-duty zero-emission
and near-zero-emission vehicle deployment projects eligible under
the Alternative and Renewable Fuel and Vehicle Technology
Program, established pursuant to Article 2 (commencing with
Section 44272) of Chapter 8.9.

(F) Medium-duty and heavy-duty zero-emission and
near-zero-emission vehicle technology demonstration projects
eligible under the Alternative and Renewable Fuel and Vehicle
Technology Program, established pursuant to Article 2
(commencing with Section 44272) of Chapter 8.9.

(G) Precommercial demonstration projects of advanced freight
begin insert and transit end insert technology to move cargo begin insert and passengers end insert in the state.

(H) Programs adopted pursuant to paragraph (4).

(2) No later than June 30, 2015, adopt revisions to the criteria
and guidelines for the Clean Vehicle Rebate Project, established
pursuant to Section 44274, to ensure all of the following:

(A) Rebate levels are phased down in multiyear increments
based on cumulative sales levels as determined by the state board.

(B) Modifications are adopted to both improve effectiveness
and ensure that the program better serves persons of low and
moderate incomes.

(C) Qualified begin delete low-income end delete begin insert low end insert begin insert - and moderate-income end insert motor
vehicle owner participants in the begin delete Enhanced Fleet Modernization
Program, end delete begin insert enhanced fleet modernization program, end insert established
pursuant to Article 11 (commencing with Section 44125) of
Chapter 5, are eligible for rebates for the purchase of both new
zero-emission and near-zero-emission light-duty vehicles that are
eligible for rebates under the Clean Vehicle Rebate Project,
established pursuant to Section 44274, and used zero-emission
and near-zero-emission light-duty vehicles that were eligible for
rebates when they were originally purchased.

(D) Consideration of the conversion to begin insert pre end insert begin insert qualification and end insert
point-of-sale rebates or other methods to increase participation
rates.

(3) No later than June 30, 2015, adopt revisions to the criteria
and guidelines for the Hybrid and Zero-Emission Truck and Bus
Voucher Incentive begin delete Project end delete begin insert Project, established pursuant to Section
44274, end insert to ensure program eligibility for a truck and bus retrofitted
or remanufactured to be a zero-emission or near-zero-emission
vehicle.

(4)  begin insert (A) end insert begin insert   end insert Establish programs that further increase access begin insert to end insert and
direct benefits for disadvantaged and low- and moderate-income
communities from electric transportation, including, but not limited
to, any of the following:

begin delete

(A)

end delete

begin insert (i) end insert  A loan or loss reserve credit enhancement program to increase
consumer access to zero-emission and near-zero-emission vehicle
financing and leasing options that can help lower expenditures on
transportation.

begin delete

(B)

end delete

begin insert (ii) end insert  Car sharing programs that serve disadvantaged communities
and incorporate zero-emission and near-zero-emission vehicles.

begin delete

(C)

end delete

begin insert (iii) end insert  Deployment of charging infrastructure in multiunit
dwellings in disadvantaged communities to remove barriers to
zero-emission and near-zero-emission vehicle adoption by those
who do not live in detached homes.

begin insert

(B) Programs implemented pursuant to this paragraph shall
provide adequate outreach to disadvantaged and low- and
moderate-income communities, including partnering with
community-based organizations.

end insert