Amended in Senate May 6, 2014

Amended in Senate April 21, 2014

Senate BillNo. 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 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 forbegin delete disadvantaged and low-end deletebegin insert disadvantaged, low-income,end insert and moderate-income communities to zero-emission and near-zero-emission vehicles. The bill would require the state board to adopt, no later than June 30, 2015, abegin delete 9-yearend delete plan to meet the goals of the initiative, commencing in the 2016-17 fiscal year, that establishes an estimate for the total funding necessary for specified programs and projects;begin insert to update the plan at least every 3 years through January 1, 2023;end insert 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 to and direct benefits forbegin delete disadvantaged and low-end deletebegin insert disadvantaged, low-income,end insert 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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Seven of the 10 worst polluted cities in the United States
4are in California. California has the largest proportion of its
5population, over 40 percent, living close to or near busy roadways
6and who may be exposed to an elevated risk of air pollution and
7health impacts.

P3    1(b) California’s low-income and disadvantaged populations
2continue to face disproportionate impacts from substandard air
3quality in the form of higher rates of respiratory illnesses,
4hospitalizations, and premature death. Climate change is expected
5also to have disproportionate impacts on disadvantaged,
6low-income, and other vulnerable communities in California.

7(c) Residents and businesses annually spend more than $70
8billion in transportation fuel bills.

9(d) Cars and trucks are the single largest source of global
10warming pollution in California. They also are the largest
11contributor to air pollution that harms public health.

12(e) Zero-emission and near-zero-emission vehicles, including
13light-, medium-, and heavy-duty vehicles and buses, can improve
14the health and welfare of all residents, especially those in lower
15income households and disadvantaged communities, by reducing
16air pollution and greenhouse gas emissions.

17(f) California businesses stand to benefit from increased
18deployment of zero-emission and near-zero-emission vehicles
19through reduced fuel expenditures and reduced pollution exposure
20to workers and communities.

21(g) California attracts over half of the nation’s venture capital
22for clean technology and ranks high among the states in the number
23of workers and facilities supporting the clean vehicle and electric
24vehicle industries.

25(h) Automakers and truck manufacturers are in early
26commercialization of zero-emission and near-zero-emission
27vehicles, which can dramatically lower smog and greenhouse gas
28emissions even when emissions from the production, distribution,
29and refining of fuels and the generation of electricity are
30considered.

31(i) Electric utilities are providing clean renewable electricity in
32increasing amounts to transportation customers throughout the
33state. Charging-service providers are beginning to deploy electric
34vehicle charging infrastructure throughout the state. Expanding
35the market for zero-emission and near-zero-emission vehicles to
36underserved markets in California is a priority.

37(j) Low-carbon transportation has been identified as an eligible
38investment under the Greenhouse Gas Reduction Fund Investment
39Plan and Communities Revitalization Act (Chapter 4.1
40(commencing with Section 39710) of Part 2 of Division 26 of the
P4    1Health and Safety Code). The act has identified low-carbon freight
2transport and zero-emission passenger transportation as a
3recommended area for investment.

4(k) It is the goal of the state to place in service at least one
5million zero-emission and near-zero-emission vehicles by January
61, 2023, and to establish a self-sustaining zero-emission and
7near-zero-emission vehicle industry in which zero-emission and
8near-zero-emission vehicles are a viable mainstream option for
9individual vehicle purchasers, businesses, and public fleets.

10(l) It is the goal of the state to increase access for disadvantaged
11and low- and moderate-income communities to zero-emission and
12near-zero-emission vehicles and to increase the placement of those
13vehicles in those communities in order to enhance the air quality,
14lower greenhouse gases, and promote overall benefits for those
15communities.

16(m) It is the intent of the Legislature that this act be consistent
17with the appropriations processes and criteria established by the
18Greenhouse Gas Reduction Fund Investment Plan and
19Communities Revitalization Act (Chapter 4.1 (commencing with
20Section 39710) of Part 2 of Division 26 of the Health and Safety
21Code).

22

SEC. 2.  

Section 44125 of the Health and Safety Code is
23amended to read:

24

44125.  

(a) No later than July 1, 2009, the state board, in
25consultation with the bureau, shall adopt a program to commence
26on January 1, 2010, that allows for the voluntary retirement of
27passenger vehicles and light-duty and medium-duty trucks that are
28high polluters. The program shall be administered by the bureau
29pursuant to guidelines adopted by the state board.

30(b) No later than June 30, 2015, the state board, in consultation
31with the bureau, shall update the program established pursuant to
32subdivision (a). The program shall continue to be administered by
33the bureau pursuant to guidelines updated and adopted by the state
34board.

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

36(1) Vehicles retired pursuant to the program are permanently
37removed from operation and retired at a dismantler under contract
38with the bureau.

39(2) Districts retain their authority to administer vehicle
40retirement programs otherwise authorized under law.

P5    1(3) The program is available for high polluting passenger
2vehicles and light-duty and medium-duty trucks that have been
3continuously registered in California for two years prior to
4acceptance into the program or otherwise proven to have been
5driven primarily in California for the last two years and have not
6been registered in another state or country in the last two years.
7The guidelines may require a vehicle to take, complete, or pass a
8smog check inspection.

9(4) The program is focused where the greatest air quality impact
10can be identified.

11(5) (A) Compensation for retired vehicles shall be at least one
12thousand five hundred dollars ($1,500) for a low-income motor
13vehicle owner, as defined in Section 44062.1, and no more than
14one thousand dollars ($1,000) for all other motor vehicle owners.

15(B) Replacement or a mobility option may be an option for all
16motor vehicle owners and may be in addition to compensation for
17vehicles retired pursuant to subparagraph (A). For low-income
18motor vehicle owners, as defined in Section 44062.1, compensation
19toward a replacement vehicle shall be no less than two thousand
20five hundred dollars ($2,500). Compensation toward a replacement
21vehicle for all other motor vehicle owners shall not exceed
22compensation for low-income motor vehicle owners. Compensation
23for the mobility option shall be no less than the combination of
24what the motor vehicle owner would have received as
25compensation toward a replacement vehicle and the amount of an
26incentive available for a qualified plug-in battery electric vehicle
27pursuant to the Clean Vehicle Rebate Project, established pursuant
28to Section 44274.

29(C) Compensation for either retired or replacement vehicles for
30low-income motor vehicle owners may be increased as necessary
31to maximize the air quality benefits of the program while also
32ensuring participation by low-income motor vehicle owners, as
33defined in Section 44062.1. Increases in compensation amounts
34may be based on factors, including, but not limited to, the age of
35the retired or replaced vehicle, the emissions benefits of the retired
36or replaced vehicle, the emissions impact of any replacement
37vehicle, participation by low-income motor vehicle owners, as
38defined in Section 44062.1, and the location of the vehicle in an
39area of the state with the poorest air quality.

P6    1(6) Cost-effectiveness and impacts on disadvantaged and
2low-income populations are considered. Program eligibility may
3be limited on the basis of income to ensure the program adequately
4serves persons of low or moderate income.

5(7) Provisions that coordinate the vehicle retirement and
6replacement and mobility option components of the program with
7the vehicle retirement component of the bureau’s Consumer
8Assistance Program, established pursuant to other provisions of
9this chapter, to ensure vehicle owners participate in the appropriate
10program to maximize emissions reductions.

11(8) Streamlined administration to simplify participation while
12protecting the accountability of moneys spent.

13(9) Specific steps to ensure the vehicle replacement and mobility
14option component of the program is available in areas designated
15as federal extreme nonattainment.

16(10) A requirement that vehicles eligible for retirement have
17sufficient remaining life. Demonstration of sufficient remaining
18life may include proof of current registration, passing a recent
19smog check inspection, or passing another test similar to a smog
20check inspection.

21(d) When updating the guidelines to the program established
22pursuant to subdivision (a), the state board shall study and consider
23all the following elements:

24(1) Methods of financial assistance other than vouchers.

25(2) An option for automobile dealerships or other used car sellers
26to accept cars for retirement, provided the cars are dismantled
27consistent with the requirements of the program.

28(3) An incentive structure with varied incentive amounts to
29maximize program participation and cost-effective emissions
30reductions.

31(4) Increased emphasis on the replacement of high polluters
32with cleaner vehicles or the increased use of public transit and car
33sharing that results in the increased utilization of the vehicle
34replacement and mobility option component of the program.

35(5) Increased emphasis on the reduction of greenhouse gas
36emissions through increased vehicle efficiency or transit and car
37sharing use as a result of the program.

38(6) Increased partnerships and outreach with community-based
39organizations.

P7    1(e) For purposes of this section, the following terms have the
2following meanings:

3(1) “Car sharing” has the same definition as in Section 44258.

4(2) “Mobility option” means a voucher for public transit or car
5sharing.

6

SEC. 3.  

Chapter 8.5 (commencing with Section 44258) is added
7to Part 5 of Division 26 of the Health and Safety Code, to read:

8 

9Chapter  8.5. Charge Ahead California Initiative
10

 

11

44258.  

For purposes of this chapter, the following terms have
12the following meanings:

13(a) “Car sharing” means a model of vehicle rental where users
14can rent vehicles for short periods of time and users are members
15that have been preapproved to drive.

16(b) “Near-zero-emission vehicle” means a light-duty plug-in
17hybrid electric vehicle or a medium-duty, heavy-duty, or bus hybrid
18electric vehicle or plug-in hybrid electric vehicle.

19(c) “Zero-emission vehicle” means a light-duty, medium-duty,
20heavy-duty, or bus battery electric vehicle or hydrogen fuel cell
21vehicle.

22

44258.4.  

(a) The Charge Ahead California Initiative is hereby
23established and shall be administered by the state board. The goals
24of this initiative are to place in service at least 1,000,000
25zero-emission and near-zero-emission vehicles by January 1, 2023,
26to establish a self-sustaining zero-emission and near-zero-emission
27vehicle industry in which zero-emission and near-zero-emission
28vehicles are a viable mainstream option for individual vehicle
29purchasers, businesses, and public fleets, to increase access for
30 disadvantaged and low- and moderate-income communities to
31zero-emission and near-zero-emission vehicles, and to increase
32the placement of those vehicles in those communities to enhance
33the air quality, lower greenhouse gases, and promote overall
34benefits for those communities.

35(b) The state board, in consultation with the State Energy
36Resources Conservation and Development Commission, districts,
37and public stakeholders, shall do all of the following:

38(1) No later than June 30, 2015, adopt abegin delete nine-yearend delete plan to meet
39the goals of the initiativebegin insert established pursuant to subdivision (a)end insert,
40commencing in the 2016-17 fiscal year, that establishes an estimate
P8    1for the total funding necessary for programs and projects that
2include, but are not limited to, any of the following:

3(A) The Clean Vehicle Rebate Project, established pursuant to
4Section 44274.

5(B) The Hybrid and Zero-Emission Truck and Bus Voucher
6Incentive Project, established pursuant to Section 44274.

7(C) The Advanced Technology Demonstration Projects,
8established pursuant to Section 44274.

9(D) Zero-emission and near-zero-emission vehicle fueling
10infrastructure projects eligible under the Alternative and Renewable
11Fuel and Vehicle Technology Program, established pursuant to
12Article 2 (commencing with Section 44272) of Chapter 8.9.

13(E) Light-duty, medium-duty, and heavy-duty zero-emission
14and near-zero-emission vehicle deployment projects eligible under
15the Alternative and Renewable Fuel and Vehicle Technology
16Program, established pursuant to Article 2 (commencing with
17Section 44272) of Chapter 8.9.

18(F) Medium-duty and heavy-duty zero-emission and
19near-zero-emission vehicle technology demonstration projects
20eligible under the Alternative and Renewable Fuel and Vehicle
21Technology Program, established pursuant to Article 2
22(commencing with Section 44272) of Chapter 8.9.

23(G) Precommercial demonstration projects of advanced freight
24and transit technology to move cargo and passengers in the state.

25(H) Programs adopted pursuant to paragraphbegin delete (4)end deletebegin insert (5)end insert.

begin insert

26(2) The plan required pursuant to paragraph (1) shall be
27updated at least every three years through January 1, 2023.

end insert
begin delete

28(2)

end delete

29begin insert(3)end insert No later than June 30, 2015, adopt revisions to the criteria
30and guidelines for the Clean Vehicle Rebate Project, established
31pursuant to Section 44274, to ensure all of the following:

32(A) Rebate levels are phased down in multiyear increments
33based on cumulative sales levels as determined by the state board.

34(B) Modifications are adopted to both improve effectiveness
35and ensure that the program better serves persons of low and
36moderate incomes.

37(C) Qualified low- and moderate-income motor vehicle owner
38participants in the enhanced fleet modernization program,
39established pursuant to Article 11 (commencing with Section
4044125) of Chapter 5, are eligible for rebates for the purchase of
P9    1both new zero-emission and near-zero-emission light-duty vehicles
2that are eligible for rebates under the Clean Vehicle Rebate Project,
3established pursuant to Section 44274, and used zero-emission
4and near-zero-emission light-duty vehicles that were eligible for
5rebates when they were originally purchased.

6(D) Consideration of the conversion to prequalification and
7point-of-sale rebates or other methods to increase participation
8rates.

begin delete

9(3)

end delete

10begin insert(4)end insert No later than June 30, 2015, adopt revisions to the criteria
11and guidelines for the Hybrid and Zero-Emission Truck and Bus
12Voucher Incentive Project, established pursuant to Section 44274,
13to ensure program eligibility for a truck and bus retrofitted or
14remanufactured to be a zero-emission or near-zero-emission
15vehicle.

begin delete

16(4)

end delete

17begin insert(5)end insert (A) Establish programs that further increase access to and
18direct benefits for disadvantaged and low- and moderate-income
19communities from electric transportation, including, but not limited
20to, any of the following:

21(i) A loan or loss reserve credit enhancement program to increase
22consumer access to zero-emission and near-zero-emission vehicle
23financing and leasing options that can help lower expenditures on
24transportation.

25(ii) Car sharing programs that serve disadvantaged communities
26and incorporate zero-emission and near-zero-emission vehicles.

27(iii) Deployment of charging infrastructure in multiunit
28dwellings in disadvantaged communities to remove barriers to
29zero-emission and near-zero-emission vehicle adoption by those
30who do not live in detached homes.

31(B) Programs implemented pursuant to this paragraph shall
32provide adequate outreach to disadvantaged and low- and
33moderate-income communities, including partnering with
34community-based organizations.



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