BILL ANALYSIS Ó
AB 678
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Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 678
(O'Donnell) - As Amended April 6, 2015
SUBJECT: Greenhouse gases: Energy Efficient Ports Program
SUMMARY: Requires the Air Resources Board (ARB), in conjunction
with the California Energy Commission (CEC), to develop the
Energy Efficient Ports Program (EEPP), as specified, and
requires ARB to develop guidelines for EEPP implementation
through the Air Quality Improvement Program (AQIP) funding plan
process.
EXISTING LAW:
1)Establishes AQIP, which funds projects that reduce criteria
air pollutants, improve air quality, and provide research for
alternative fuels and vehicles, vessels, and equipment
technologies. The two primary programs adopted by ARB
pursuant to AQIP are the Clean Vehicle Rebate Project (CVRP)
and the Hybrid and Zero Emissions Truck and Bus Voucher
Incentive Program (HVIP). AQIP is funded primarily by smog
abatement fees paid by vehicle owners to the Department of
Motor Vehicles, with smaller contributions from boat
registration fees and special identification plate fees.
2)Requires ARB, pursuant to California Global Warming Solutions
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Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to
adopt a statewide greenhouse gas (GHG) emissions limit
equivalent to 1990 levels by 2020 and adopt regulations to
achieve maximum technologically feasible and cost-effective
GHG emission reductions. AB 32 authorizes ARB to permit the
use of market-based compliance mechanisms to comply with GHG
reduction regulations, once specified conditions are met.
3)Establishes the Greenhouse Gas Reduction Fund (GGRF) and
requires all moneys, except for fines and penalties, collected
by ARB from the auction or sale of allowances pursuant to a
market-based compliance mechanism (i.e., the cap-and-trade
program adopted by ARB under AB 32) to be deposited in the
GGRF and available for appropriation by the Legislature.
4)Establishes the GGRF Investment Plan and Communities
Revitalization Act [AB 1532 (John A. Pérez), Chapter 807,
Statutes of 2012] to set procedures for the investment of GHG
allowance auction revenues. AB 1532 authorizes a range of GHG
reduction investments and establishes several additional
policy objectives.
5)Requires the investment plan to allocate (1) a minimum of 25
percent of the available moneys in the GGRF to projects that
provide benefits to identified disadvantaged communities and
(2) a minimum of 10 percent of the available moneys in the
GHGRF to projects located within identified disadvantaged
communities [SB 535 (De Leon), Chapter 830, Statutes of 2012].
THIS BILL:
1)Requires ARB and CEC to develop the EEPP to fund energy
efficiency projects that help reduce emissions of GHG and air
pollutants at public ports.
2)Specifies eligible port projects include, but are not limited
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to:
a) Installation of renewable technologies at marine
terminals, warehouses and other freight facilities.
b) Replacement of conventional lighting with LED
lighting.
c) Installation of cold ironing or shorepower equipment
to reduce diesel auxiliary engine emissions from ships at
port, beyond actions required by regulations.
d) Deployment of zero and near-zero emission vehicles
and infrastructure technologies.
e) Other projects that reduce grid-based energy demand
from cargo handling operations at public seaports.
3)Requires ARB to develop guidelines for EEPP implementation
through the AQIP funding plan process that are consistent with
AB 32, AB 1532 and SB 535.
FISCAL EFFECT: Unknown
COMMENTS:
1)AQIP. AQIP provides financial incentives for public and
private groups and individuals to adopt smog and diesel
particulate pollution reducing technology that concurrently
reduces GHG emissions. Two of AQIP's flagship projects, CVRP
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and HVIP, represent the program's largest funding commitments.
AQIP has also provided incentives for biofuels research,
hybrid truck testing, lawn and garden equipment replacement,
zero-emission all-terrain agricultural work vehicle rebates,
advanced technology demonstration, and hybrid off-road
equipment pilot projects. The 2014-15 Budget Act appropriated
$200 million from the GGRF to ARB for "low carbon
transportation." These funds have been used to significantly
increase funding for CVRP and HVIP. As a result, AQIP funds
have been redirected to ARB's Truck Loan Assistance Program.
2)At-Berth Regulation. In December of 2007, ARB approved an
early action item aimed towards reducing the maritime
industry's carbon footprint. The "Airborne Toxic Control
Measure for Auxiliary Diesel Engines Operated on Ocean-Going
Vessels At-Berth in a California Port" Regulation, commonly
referred to as the At-Berth Regulation, directs vessels docked
at-berth in California ports to use shore power instead of
running their onboard diesel engines. The ship's power load is
seamlessly transferred to a shore side power supply without
disruption to onboard services, eliminating the negative
side-effects of auxiliary engine combustion. The regulation
specifically requires at least 50 percent of the vessels
docked at-berth to utilize shore power in 2014, eventually
reaching 70 percent in 2017, and 80 percent by 2020. As a
result, more and more vessels are demanding larger quantities
of electrical power.
3)Purposes of this bill don't match purposes of AQIP. AQIP is
funded by vehicle fees and is focused on alternative vehicle
fuels and technologies. This bill is about reducing
electricity demand at ports, not reducing vehicle emissions
through alternative fuels and clean vehicles. In addition to
the purposes of this bill being inconsistent with the
statutory purpose and program design of AQIP, the California
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Constitution may prohibit the use of vehicle fees for the
types of projects listed in the bill.
Article XIX of the California Constitution requires that
revenues from fees and taxes imposed by the state on vehicles
and their use or operation can only be used for certain
purposes, including: collection of these fees and taxes;
motor vehicle and traffic law administration and enforcement;
research, planning, construction, maintenance, operation, and
environmental mitigation of streets and roads; research,
planning, construction, improvement, and mitigation of
environmental impacts of exclusive mass transit guideways;
and mitigating the environmental effects of motor vehicle
sound and air emissions.
The author and the committee may wish to consider striking
reference to AQIP.
4)Double referral. This bill has been double referred to the
Transportation Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Pacific Merchant Shipping Association (sponsor)
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California Infill Builders Federation
South Coast Air Quality Management District
Opposition
None on file
Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)
319-2092