BILL ANALYSIS Ó
SB 1275
Page 1
SENATE THIRD READING
SB 1275 (De León)
As Amended August 18, 2014
Majority vote
SENATE VOTE :27-9
TRANSPORTATION 10-2 NATURAL RESOURCES 6-3
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|Ayes:|Lowenthal, Ammiano, |Ayes:|Chesbro, Garcia, |
| |Bloom, Bonta, Buchanan, | |Muratsuchi, Skinner, |
| |Daly, Frazier, Gatto, | |Stone, Williams |
| |Holden, Quirk-Silva | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Linder, Waldron |Nays:|Dahle, Bigelow, Patterson |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, Ian Calderon, | | |
| |Campos, Eggman, Gomez, | | |
| |Holden, Pan, Quirk, | | |
| |Ridley-Thomas, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow, Donnelly, Jones, | | |
| |Linder, Wagner | | |
| | | | |
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SUMMARY : This bill establishes the Charge Ahead California
Initiative (Initiative) to provide incentives that increase the
availability of zero-emission vehicles (ZEV) and
near-zero-emission vehicles (NZEV) vehicles, particularly in
disadvantaged and low-and-moderate-income communities.
Specifically, this bill :
1)Makes a number of findings and declarations regarding
California's poor air quality, the risks it creates, and the
positive impact that the use of ZEVs and NZEVs can have on
improving air quality as well as the health and welfare of all
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residents.
2)Establishes the Initiative and requires that it be
administered by the California Air Resources Board (ARB).
3)Describes the goals of the Initiative as:
a) Placing at least one million ZEVs and NZEVs into service
by January 1, 2023;
b) Establishing a self-sustaining ZEV and NZEV market where
these vehicles are a viable mainstream option;
c) Increasing access to ZEVs and NZEVs for disadvantaged,
low- and moderate-income communities and consumers; and,
d) Increasing placement of ZEVs and NZEVs in disadvantaged
communities.
4)Requires that any moneys utilized from the Greenhouse Gas
Reduction Fund (GGRF) be consistent with appropriations
processes and criteria established by the GGRF Investment Plan
and Communities Revitalization Act.
5)Requires ARB, in consultation with the California Energy
Commission (CEC), air districts, and the public, to:
a) Adopt a plan by June 30, 2015, to meet the Initiative's
goals commencing in the 2016-17 fiscal year, that includes
an estimate of the total funding necessary for programs and
projects, including the Clean Vehicle Rebate Project (CVRP)
and light-duty ZEV and NZEV vehicle deployment projects
eligible under the Alternative and Renewable Fuel and
Vehicle Technology Program (ARFVTP) and other programs, as
specified;
b) Update the plan every three years through January 1,
2023;
c) Adopt revisions to CVRP by June 30, 2015, to ensure
rebate levels can be phased down in multiyear increments
based on cumulative sales levels and participation in the
program is based on income and to consider converting to
prequalification and point-of-sale rebates or other methods
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to increase participation; and,
d) Establish programs that further increase access to and
direct benefits for disadvantaged and low- and
moderate-income communities and consumers from electric
transportation such as alternative financing mechanisms,
car sharing programs and additional incentives for vehicle
replacement.
6)Defines a variety of terms.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1) Unknown ongoing cost pressures to fund program expenditures
and grants, likely in the tens of millions of dollars
annually from the Greenhouse Gas Reduction Fund (GGRF).
2) Increased annual costs to ARB, from the GGRF, of
approximately $619,000 in 2014-15 and ongoing costs of
$454,000 to adopt and administer components of the specified
funding plan.
3) Increased annual costs to ARB, from the GGRF, of
approximately $495,000 to develop and administer the three
new programs in the bill: loan loss credit reserve
enhancement program, car sharing program and charging
infrastructure deployment.
4) Increased annual costs to ARB, from the GGRF, of
approximately 180,000 to oversee the development of the
funding plan and new disadvantaged community mobility
programs.
COMMENTS : California has committed to reducing greenhouse gas
emissions (GHG) to 1990 levels by 2020. The state is on target
to meet these goals; however, the state has further committed to
reducing GHG emissions 80% from 1990 levels by 2050. To reach
that goal, emissions from 2020 to 2050 will have to decline
several times faster than the rate needed to reach the 2020
goals.
Because the transportation sector is responsible for generating
a significant portion of GHG emissions, meeting the state's GHG
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reduction goals will require increasing efforts already underway
to put a greater number of ZEVs and NZEVs on California
roadways. Critics of existing clean air vehicle incentive
programs, however, argue that the existing programs do not go
far enough to encourage low- and moderate-income individuals and
communities to participate in existing incentive programs. They
further contend that lack of participation by these groups will
adversely affect the ability of the state to maximize emissions
reductions and improve air quality.
Supporters note that this bill ensures that the long-term
funding plan, to be developed by ARB, will improve incentive
programs by making them more widely accessible to a greater
segment of the population. They contend that this will, in
turn, increase the number of ZEVs and NZEVs on California
roadways. They note that increased participation in these
programs by disadvantaged, low- and moderate income individuals
and communities will not only help the state achieve its GHG
reduction and clean air goals, but will also ensure that those
who suffer disproportionate impacts of climate and smog
pollution will have ready access to California's clean vehicle
programs.
Opponents of this bill argue that ARB lacks authority to raise
revenue through the auction of allowances. They note that given
the substantial legal uncertainties surrounding ARB's authority
to impose an auction, expending proceeds is premature.
Please see the policy committee analysis for a full discussion
of this bill.
Related legislation: SB 1204 (Lara) of the current legislative
session, would create a new program to be administered by ARB
and funded with cap and trade revenues to develop zero- and
near-zero-emission truck, bus, and off-road vehicle and
equipment technologies and related projects.
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093
FN: 0004877
SB 1275
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