Amended in Assembly April 15, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 857


Introduced by Assembly Member Perea

February 26, 2015


An act to amend Section 39719.2 of the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 857, as amended, Perea. California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified, with priority given to certain projects, including projects that benefit disadvantaged communities. The program, until January 1, 2018, requires no less than 20% of the funding made available for the purposes of technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.

This bill, between January 2, 2018, and January 1, 2023, inclusive, would require no less thanbegin delete 80%end deletebegin insert 50%end insert or $100,000,000, whichever is greater, of the moneys appropriated for technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology be allocated to support the commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology that meets or exceeds a specified emission standard.

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.  

Section 39719.2 of the Health and Safety Code
2 is amended to read:

3

39719.2.  

(a) The California Clean Truck, Bus, and Off-Road
4Vehicle and Equipment Technology Program is hereby created,
5to be administered by the state board in conjunction with the State
6Energy Resources Conservation and Development Commission.
7The program, from moneys appropriated from the fund for the
8purposes of the program, shall fund development, demonstration,
9precommercial pilot, and early commercial deployment of zero-
10and near-zero-emission truck, bus, and off-road vehicle and
11equipment technologies. Priority shall be given to projects
12benefiting disadvantaged communities pursuant to the requirements
13of Sections 39711 and 39713.

14(b) Projects eligible for funding pursuant to this section include,
15but are not limited to, the following:

16(1) Technology development, demonstration, precommercial
17pilots, and early commercial deployments of zero- and
18near-zero-emission medium- and heavy-duty truck technology,
19including projects that help to facilitate clean goods-movement
20corridors.

21(A) Until January 1, 2018, no less than 20 percent of funding
22made available for the purposes of this paragraph shall support
P3    1early commercial deployment of existing zero- and
2near-zero-emission heavy-duty truck technology.

3(B) Between January 2, 2018, and January 1, 2023, inclusive,
4no less thanbegin delete 80end deletebegin insert 50end insert percent or one hundred million dollars
5($100,000,000), whichever is greater, of the moneys appropriated
6for the purposes of this paragraph shall be allocated to support the
7commercial deployment of existing zero- and near-zero-emission
8heavy-duty truck technology that meets or exceeds an emission
9standard of 0.02 grams per brake horsepower-hour oxides of
10nitrogen, as described in the optional low oxides of nitrogen
11emission standards in Section 1956.8 of Title 13 of the California
12Code of Regulations.

13(2) Zero- and near-zero-emission bus technology development,
14demonstration, precommercial pilots, and early commercial
15deployments, including pilots of multiple vehicles at one site or
16region.

17(3) Zero- and near-zero-emission off-road vehicle and equipment
18technology development, demonstration, precommercial pilots,
19and early commercial deployments, including vehicles and
20equipment in the port, agricultural, marine, construction, and rail
21sectors.

22(4) Purchase incentives, which may include point-of-sale, for
23commercially available zero- and near-zero-emission truck, bus,
24and off-road vehicle and equipment technologies and fueling
25infrastructure to support early market deployments of alternative
26technologies and to increase manufacturer volumes and accelerate
27market acceptance.

28(5) Projects that support greater commercial motor vehicle and
29equipment freight efficiency and greenhouse gas emissions
30reductions, including, but not limited to, advanced intelligent
31transportation systems, autonomous vehicles, and other freight
32information and operations technologies.

33(c) The state board, in consultation with the State Energy
34Resources Conservation and Development Commission, shall
35develop guidance through the existing Air Quality Improvement
36Program funding plan process for the implementation of this
37section that is consistent with the California Global Warming
38Solutions Act of 2006 (Division 25.5 (commencing with Section
3938500)) and this chapter.

P4    1(d) The guidance developed pursuant to subdivision (c) shall
2do all of the following:

3(1) Outline performance criteria and metrics for deployment
4incentives. The goal shall be to design a simple and predictable
5structure that provides incentives for truck, bus, and off-road
6vehicle and equipment technologies that provide significant
7greenhouse gas reduction and air quality benefits.

8(2) Ensure that program investments are coordinated with
9funding programs developed pursuant to the California Alternative
10and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon
11Reduction Act of 2007 (Chapter 8.9 (commencing with Section
1244270) of Part 5).

13(3) Promote projects that assist the state in reaching its climate
14goals beyond 2020, consistent with Sections 38550 and 38551.

15(4) Promote investments in medium- and heavy-duty trucking,
16including, but not limited to, vocational trucks, short-haul and
17long-haul trucks, buses, and off-road vehicles and equipment,
18including, but not limited to, port equipment, agricultural
19equipment, marine equipment, and rail equipment.

20(5) Implement purchase incentives for eligible technologies to
21increase the use of the cleanest vehicles in disadvantaged
22communities.

23(6) Allow for remanufactured and retrofitted vehicles to qualify
24for purchase incentives if those vehicles meet warranty and
25emissions requirements, as determined by the state board.

26(7) Establish a competitive process for the allocation of moneys
27for projects funded pursuant to this section.

28(8) Leverage, to the maximum extent feasible, federal or private
29funding.

30(9) Ensure that the results of emissions reductions or benefits
31can be measured or quantified.

32(10) Ensure that activities undertaken pursuant to this section
33complement, and do not interfere with, efforts to achieve and
34maintain federal and state ambient air quality standards and to
35reduce toxic air contaminants.

36(e) In evaluating potential projects to be funded pursuant to this
37section, the state board shall give priority to projects that
38demonstrate one or more of the following characteristics:

39(1) Benefit disadvantaged communities pursuant to Sections
4039711 and 39713.

P5    1(2) The ability to leverage additional public and private funding.

2(3) The potential for cobenefits or multiple-benefit attributes.

3(4) The potential for the project to be replicated.

4(5) Regional benefit, with focus on collaboration between
5multiple entities.

6(6) Support for technologies with broad market and emissions
7reduction potential.

8(7) Support for projects addressing technology and market
9barriers not addressed by other programs.

10(8) Support for enabling technologies that benefit multiple
11technology pathways.

12(f) To assist in the implementation of this section, the state
13board, in consultation with the State Energy Resources
14Conservation and Development Commission, shall create an annual
15framework and plan. The framework and plan shall be developed
16with public input and may utilize existing investment plan
17processes and workshops as well as existing state and third-party
18research and technology roadmaps. The framework and plan shall
19do all of the following:

20(1) Articulate an overarching vision for technology development,
21demonstration, precommercial pilot, and early commercial
22deployments, with a focus on moving technologies through the
23commercialization process.

24(2) Outline technology categories and performance criteria for
25technologies and applications that may be considered for funding
26pursuant to this section. This shall include technologies for
27medium- and heavy-duty trucking, including, but not limited to,
28vocational trucks, short-haul and long-haul trucks, buses, and
29off-road vehicles and equipment, including, but not limited to, port
30equipment, agricultural equipment, construction equipment, marine
31equipment, and rail equipment.

32(3) Describe the roles of the relevant agencies and the process
33for coordination.

34(g) For purposes of this section, the following terms have the
35following meanings:

36(1) “Heavy-duty truck” means a vehicle that has a gross vehicle
37weight rate (GVWR) of 26,001 pounds or more.

38(2) “Zero- and near-zero-emission” means vehicles, fuels, and
39related technologies that reduce greenhouse gas emissions and
40improve air quality when compared with conventional or fully
P6    1commercialized alternatives, as defined by the state board in
2consultation with the State Energy Resources Conservation and
3Development Commission. “Zero- and near-zero-emission” may
4include, but is not limited to, zero-emission technology, enabling
5technologies that provide a pathway to emissions reductions,
6advanced or alternative fuel engines for long-haul trucks, and
7hybrid or alternative fuel technologies for trucks and off-road
8equipment.



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