Amended in Assembly July 1, 2014

Amended in Senate May 6, 2014

Amended in Senate April 21, 2014

Senate BillNo. 1275


Introduced by Senator De León

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(Coauthor: Senator Pavley)

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(Coauthor: Assembly Member Ting)

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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 thanbegin delete 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 vehicleend deletebegin insert $2,500. The bill would authorize the state board to increase the amount of the mobility option as necessary to maximize the air quality benefits of the program while also ensuring participation by low-income motor vehicle owners, as specifiedend insert. 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, andbegin insert theend insert publicbegin delete stakeholdersend delete. 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 for disadvantaged, low-income, and moderate-income communitiesbegin insert and consumersend insert to zero-emission and near-zero-emission vehicles. The bill would require the state board to adopt, no later than June 30, 2015, a plan to meet the goals of the initiative, commencing in the 2016-17 fiscal year,begin delete that establishesend deletebegin insert that includes establishingend insert an estimate for the total funding necessary for specified programs and projects; to update the plan at least every 3 years through January 1, 2023; to adopt, no later than June 30, 2015, specified revisions to the criteria andbegin delete guidelinesend deletebegin insert other requirementsend insert 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 for disadvantaged, low-income, and moderate-income communitiesbegin insert and consumersend insert 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:

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

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

8(b) California’s low-income and disadvantaged populations
9continue to face disproportionate impacts from substandard air
10quality in the form of higher rates of respiratory illnesses,
11hospitalizations, and premature death. Climate change is expected
12also to have disproportionate impacts on disadvantaged,
13low-income, and other vulnerable communities in California.

14(c) Residents and businesses annually spend more than $70
15billion in transportation fuel bills.

16(d) Cars and trucks are the single largest source ofbegin delete global
17warming pollutionend delete
begin insert greenhouse gas emissionsend insert in California. They
18also are the largest contributor to air pollution that harms public
19health.

20(e) Zero-emission and near-zero-emission vehicles, including
21light-, medium-, and heavy-duty vehicles and buses, can improve
22the health and welfare of all residents, especially those in lower
23income households and disadvantaged communities, by reducing
24air pollution and greenhouse gas emissions.

25(f) California businesses stand to benefit from increased
26deployment of zero-emission and near-zero-emission vehicles
27through reduced fuel expenditures and reduced pollution exposure
28to workers and communities.

29(g) California attracts over half of the nation’s venture capital
30for clean technology and ranks high among the states in the number
31of workers and facilities supporting the clean vehicle and electric
32vehicle industries.

33(h) Automakers and truck manufacturers are in early
34commercialization of zero-emission and near-zero-emission
35vehicles, which can dramatically lower smog and greenhouse gas
36emissions even when emissions from the production, distribution,
37and refining of fuels and the generation of electricity are
38considered.

P4    1(i) Electric utilities are providing clean renewable electricity in
2increasing amounts to transportation customers throughout the
3state. Charging-service providers are beginning to deploy electric
4vehicle charging infrastructure throughout the state. Expanding
5the market for zero-emission and near-zero-emission vehicles to
6underserved markets in California is a priority.

7(j) Low-carbon transportation has been identified as an eligible
8investment under the Greenhouse Gas Reduction Fund Investment
9Plan and Communities Revitalization Act (Chapter 4.1
10(commencing with Section 39710) of Part 2 of Division 26 of the
11Health and Safety Code). The act has identified low-carbon freight
12transport and zero-emission passenger transportation as a
13recommended area for investment.

14(k) It is the goal of the state to place in service at least one
15million zero-emission and near-zero-emission vehicles by January
161, 2023, and to establish a self-sustaining zero-emission and
17near-zero-emission vehicle industry in which zero-emission and
18near-zero-emission vehicles are a viable mainstream option for
19individual vehicle purchasers, businesses, and public fleets.

20(l) It is the goal of the state to increase access for disadvantaged
21begin delete and low-end deletebegin insert, low-income,end insert and moderate-income communitiesbegin insert and
22consumersend insert
to zero-emission and near-zero-emission vehicles and
23to increase the placement of those vehicles in those communities
24begin insert and with those consumersend insert in order to enhance the air quality, lower
25greenhouse gases, and promote overall benefits for those
26communitiesbegin insert and consumersend insert.

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27(m) It is the intent of the Legislature that this act be consistent
28with the appropriations processes and criteria established by the
29Greenhouse Gas Reduction Fund Investment Plan and
30Communities Revitalization Act (Chapter 4.1 (commencing with
31Section 39710) of Part 2 of Division 26 of the Health and Safety
32Code).

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33

SEC. 2.  

Section 44125 of the Health and Safety Code is
34amended to read:

35

44125.  

(a) No later than July 1, 2009, the state board, in
36consultation with the bureau, shall adopt a program to commence
37on January 1, 2010, that allows for the voluntary retirement of
38passenger vehicles and light-duty and medium-duty trucks that are
39high polluters. The program shall be administered by the bureau
40pursuant to guidelines adopted by the state board.

P5    1(b) No later than June 30, 2015, the state board, in consultation
2with the bureau, shall update the program established pursuant to
3subdivision (a). The program shall continue to be administered by
4the bureau pursuant to guidelines updated and adopted by the state
5board.

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

7(1) Vehicles retired pursuant to the program are permanently
8removed from operation and retired at a dismantler under contract
9with the bureau.

10(2) Districts retain their authority to administer vehicle
11retirement programs otherwise authorized under law.

12(3) The program is available for high polluting passenger
13vehicles and light-duty and medium-duty trucks that have been
14continuously registered in California for two years prior to
15acceptance into the program or otherwise proven to have been
16driven primarily in California for the last two years and have not
17been registered in another state or country in the last two years.
18The guidelines may require a vehicle to take, complete, or pass a
19smog check inspection.

20(4) The program is focused where the greatest air quality impact
21can be identified.

22(5) (A) Compensation for retired vehicles shall be at least one
23thousand five hundred dollars ($1,500) for a low-income motor
24vehicle owner, as defined in Section 44062.1, and no more than
25one thousand dollars ($1,000) for all other motor vehicle owners.

26(B) Replacement or a mobility option may be an option for all
27motor vehicle owners and may be in addition to compensation for
28vehicles retired pursuant to subparagraph (A). For low-income
29motor vehicle owners, as defined in Section 44062.1, compensation
30toward a replacement vehiclebegin insert or mobility optionend insert shall be no less
31than two thousand five hundred dollars ($2,500). Compensation
32toward a replacement vehicle for all other motor vehicle owners
33shall not exceed compensation for low-income motor vehicle
34owners.begin delete Compensation for the mobility option shall be no less than
35the combination of what the motor vehicle owner would have
36received as compensation toward a replacement vehicle and the
37amount of an incentive available for a qualified plug-in battery
38electric vehicle pursuant to the Clean Vehicle Rebate Project,
39established pursuant to Section 44274.end delete

P6    1(C) Compensation for either retired or replacement vehiclesbegin insert or
2a mobility optionend insert
for low-income motor vehicle owners may be
3increased as necessary to maximize the air quality benefits of the
4program while also ensuring participation by low-income motor
5vehicle owners, as defined in Section 44062.1. Increases in
6compensation amounts may be based on factors, including, but
7not limited to, the age of the retired or replaced vehicle, the
8emissions benefits of the retired or replaced vehicle, the emissions
9impact of any replacement vehicle, participation by low-income
10motor vehicle owners, as defined in Section 44062.1, and the
11location of the vehicle in an area of the state with the poorest air
12quality.

13(6) Cost-effectiveness and impacts on disadvantaged and
14low-income populations are considered. Program eligibility may
15be limited on the basis of income to ensure the program adequately
16serves persons of low or moderate income.

17(7) Provisions that coordinate the vehicle retirement and
18replacement and mobility option components of the program with
19the vehicle retirement component of the bureau’s Consumer
20Assistance Program, established pursuant to other provisions of
21this chapter, to ensure vehicle owners participate in the appropriate
22program to maximize emissions reductions.

23(8) Streamlined administration to simplify participation while
24protecting the accountability of moneys spent.

25(9) Specific steps to ensure the vehicle replacement and mobility
26option component of the program is available in areas designated
27as federal extreme nonattainment.

28(10) A requirement that vehicles eligible for retirement have
29sufficient remaining life. Demonstration of sufficient remaining
30life may include proof of current registration, passing a recent
31smog check inspection, or passing another test similar to a smog
32check inspection.

33(d) When updating the guidelines to the program established
34pursuant to subdivision (a), the state board shall study and consider
35all the following elements:

36(1) Methods of financial assistance other than vouchers.

37(2) An option for automobile dealerships or other used car sellers
38to accept cars for retirement, provided the cars are dismantled
39consistent with the requirements of the program.

P7    1(3) An incentive structure with varied incentive amounts to
2maximize program participation and cost-effective emissions
3reductions.

4(4) Increased emphasis on the replacement of high polluters
5with cleaner vehicles or the increased use of public transit and car
6sharing that results in the increased utilization of the vehicle
7replacement and mobility option component of the program.

8(5) Increased emphasis on the reduction of greenhouse gas
9emissions through increased vehicle efficiency or transit and car
10sharing use as a result of the program.

11(6) Increased partnerships and outreach with community-based
12organizations.

13(e) For purposes of this section, the following terms have the
14following meanings:

15(1) “Car sharing” has the same definition as in Section 44258.

16(2) “Mobility option” means a voucher for public transit or car
17sharing.

18

SEC. 3.  

Chapter 8.5 (commencing with Section 44258) is added
19to Part 5 of Division 26 of the Health and Safety Code, to read:

20 

21Chapter  8.5. Charge Ahead California Initiative
22

 

23

44258.  

For purposes of this chapter, the following terms have
24the following meanings:

25(a) “Car sharing” means a model of vehicle rental where users
26can rent vehicles for short periods of time and users are members
27that have been preapproved to drive.

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28(b) “Disadvantaged community” means a community identified
29by the California Environmental Protection Agency pursuant to
30Section 39711.

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31(b)

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32begin insert(c)end insert “Near-zero-emission vehicle” means a light-duty plug-in
33hybrid electric vehicle or a medium-duty, heavy-duty, or bus hybrid
34electric vehicle or plug-in hybrid electric vehicle.

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35(c)

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36begin insert(d)end insert “Zero-emission vehicle” means a light-duty, medium-duty,
37heavy-duty, or bus battery electric vehicle or hydrogen fuel cell
38vehicle.

39

44258.4.  

(a) begin deleteThe end deletebegin insertIt is the intent of the Legislature that this act
40be consistent with the appropriations processes and criteria
P8    1established by the Greenhouse Gas Reduction Fund Investment
2Plan and Communities Revitalization Act (Chapter 4.1
3(commencing with Section 39710) of Part 2).end insert

4begin insert (b)end insertbegin insertend insertbegin insertThe end insertCharge Ahead California Initiative is hereby established
5and shall be administered by the state board. The goals of this
6initiative are to place in service at least 1,000,000 zero-emission
7and near-zero-emission vehicles by January 1, 2023, to establish
8a self-sustaining zero-emission and near-zero-emission vehicle
9industry in which zero-emission and near-zero-emission vehicles
10are a viable mainstream option for individual vehicle purchasers,
11businesses, and public fleets, to increase access for disadvantaged
12begin delete and low-end deletebegin insert, low-income,end insert and moderate-income communitiesbegin insert and
13consumersend insert
to zero-emission and near-zero-emission vehicles, and
14to increase the placement of those vehicles in those communities
15begin insert and with those consumersend insert to enhance the air quality, lower
16greenhouse gases, and promote overall benefits for those
17communitiesbegin insert and consumersend insert.

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18(b)

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19begin insert(c)end insert The state board, in consultation with the State Energy
20Resources Conservation and Development Commission, districts,
21andbegin insert theend insert publicbegin delete stakeholdersend delete, shall do all of the following:

22(1) No later than June 30, 2015, adopt a plan to meet the goals
23of the initiative established pursuant to subdivisionbegin delete (a)end deletebegin insert (b)end insert,
24commencing in the 2016-17 fiscal year,begin delete that establishesend deletebegin insert including
25establishingend insert
an estimate for the total funding necessary for
26programs and projects that include, but are not limited to, any of
27the following:

28(A) The Clean Vehicle Rebate Project, established pursuant to
29Section 44274.

30(B) The Hybrid and Zero-Emission Truck and Bus Voucher
31Incentive Project, established pursuant to Section 44274.

32(C) The Advanced Technology Demonstration Projects,
33established pursuant to Section 44274.

34(D) Zero-emission and near-zero-emission vehicle fueling
35infrastructure projects eligible under the Alternative and Renewable
36Fuel and Vehicle Technology Program, established pursuant to
37Article 2 (commencing with Section 44272) of Chapter 8.9.

38(E) Light-duty, medium-duty, and heavy-duty zero-emission
39and near-zero-emission vehicle deployment projects eligible under
40the Alternative and Renewable Fuel and Vehicle Technology
P9    1Program, established pursuant to Article 2 (commencing with
2Section 44272) of Chapter 8.9.

3(F) Medium-duty and heavy-duty zero-emission and
4near-zero-emission vehicle technology demonstration projects
5eligible under the Alternative and Renewable Fuel and Vehicle
6Technology Program, established pursuant to Article 2
7(commencing with Section 44272) of Chapter 8.9.

8(G) Precommercial demonstration projects of advanced freight
9and transit technology to move cargo and passengers in the state.

10(H) Programs adopted pursuant to paragraph (5).

11(2) begin deleteThe end deletebegin insertUpdate theend insertbegin insert end insertplan required pursuant to paragraph (1)begin delete shall
12be updatedend delete
at least every three years through January 1, 2023.

13(3) No later than June 30, 2015, adopt revisions to the criteria
14andbegin delete guidelinesend deletebegin insert other requirementsend insert for the Clean Vehicle Rebate
15Project, established pursuant to Section 44274, to ensure all of the
16following:

17(A) Rebate levels are phased down in multiyear increments
18based on cumulative sales levels as determined by the state board.

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19(B) Modifications are adopted to both improve effectiveness
20and ensure that the program better serves persons of low and
21moderate incomes.

22(C) Qualified low- and moderate-income motor vehicle owner
23participants in the enhanced fleet modernization program,
24established pursuant to Article 11 (commencing with Section
2544125) of Chapter 5, are eligible for rebates for the purchase of
26both new zero-emission and near-zero-emission light-duty vehicles
27that are eligible for rebates under the Clean Vehicle Rebate Project,
28established pursuant to Section 44274, and used zero-emission
29and near-zero-emission light-duty vehicles that were eligible for
30rebates when they were originally purchased.

end delete
begin insert

31(B) Eligibility is limited based on income.

end insert
begin delete

32(D)

end delete

33begin insert(C)end insert Consideration of the conversion to prequalification and
34point-of-sale rebates or other methods to increase participation
35rates.

36(4) No later than June 30, 2015, adopt revisions to the criteria
37andbegin delete guidelinesend deletebegin insert other requirementsend insert for the Hybrid and
38Zero-Emission Truck and Bus Voucher Incentive Project,
39established pursuant to Section 44274,begin insert or other relevant
40deployment and demonstration programs,end insert
to ensure program
P10   1eligibility for a truckbegin delete andend deletebegin insert orend insert bus retrofitted or remanufactured to
2be a zero-emissionbegin delete or near-zero-emissionend delete vehiclebegin insert, if the retrofitter
3or manufacturer furnishes a warranty or other form of guarantee
4to ensure lasting emissions reductionsend insert
.

5(5) (A) Establish programs that further increase access to and
6direct benefits for disadvantagedbegin delete and low-end deletebegin insert, low-income,end insert and
7moderate-income communitiesbegin insert and consumersend insert from electric
8transportation, including, but not limited to, any of the following:

9(i) begin deleteA end deletebegin insertFinancing mechanisms, including, but not limited to, a end insert
10loan orbegin delete lossend deletebegin insert loan-lossend insert reserve credit enhancement program to
11increase consumer access to zero-emission and near-zero-emission
12vehicle financing and leasing options that can help lower
13expenditures on transportation.

14(ii) Car sharing programs that serve disadvantaged communities
15andbegin delete incorporateend deletebegin insert utilizeend insert zero-emission and near-zero-emission
16vehicles.

17(iii) Deployment of charging infrastructure in multiunit
18dwellings in disadvantaged communities to remove barriers to
19zero-emission and near-zero-emission vehicle adoption by those
20who do not live in detached homes.

begin insert

21(iv) Additional incentives for zero-emission, near-zero-emission,
22or high-efficiency replacement vehicles or a mobility option
23available to participants in the enhanced fleet modernization
24program, established pursuant to Article 11 (commencing with
25Section 44125) of Chapter 5.

end insert

26(B) Programs implemented pursuant to this paragraph shall
27provide adequate outreach to disadvantagedbegin delete and low-end deletebegin insert, low-income,end insert
28 and moderate-income communitiesbegin insert and consumersend insert, including
29partnering with community-based organizations.



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