Amended in Senate June 23, 2015

Amended in Senate June 16, 2015

Amended in Assembly May 5, 2015

Amended in Assembly April 15, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 857

Introduced by Assembly Member Perea

(Coauthor: Assembly Member O’Donnell)

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, annually would require no less than 50% or $100,000,000, whichever is greater, of the moneys allocated for technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology be allocated and spent 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:

SECTION 1.  

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

39719.2.  

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

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

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

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

(B) (i) Between January 2, 2018, and January 1, 2023, inclusive,
annually no less than 50 percent or one hundred million dollars
($100,000,000), whichever is greater, of the moneys allocated for
the purposes of this paragraph shall be allocated and spent to
support the commercial deployment of existing zero- and
near-zero-emission heavy-duty truck technology that meets or
exceeds an emission standard of 0.02 grams per brake
horsepower-hour oxides of nitrogen, as described in the optional
low oxides of nitrogen emission standards in Section 1956.8 of
Title 13 of the California Code of Regulations.

(ii) (I)  begin delete A end delete begin insert Beginning January 2, 2018, a end insert heavy-duty truck with
an internal combustion engine receiving moneys appropriated
pursuant to this subparagraph shall begin delete use not less than 10 percent
renewable fuel beginning January 2, 2018. end delete begin insert not use a fuel with a
carbon intensity of greater than 79 percent of the carbon intensity
of diesel, as defined in the low-carbon fuel standard (Subarticle
7 (commencing with Section 95480) of Article 4 of Subchapter 10
of Chapter 1 of Division 3 of Title 17 of the California Code of
Regulations), as of January 1, 2016. end insert

(II) The state board may begin delete increase the minimum percentage of
renewable fuel required end delete begin insert reduce the maximum fuel carbon intensity
permitted end insert for begin insert the appropriation of end insert moneys begin delete appropriated end delete pursuant
to this subparagraph in subsequent years if the state board makes
a finding that a begin delete higher percentage is technologically end delete begin insert greater
reduction is commercially end insert feasible and the State Energy Resources
Conservation and Development Commission makes a finding that
there is a sufficient supply of renewable energy fuel available. begin delete An
increase end delete begin insert A reduction end insert adopted pursuant to this subclause shall apply
prospectively to moneys awarded after the begin delete increase end delete begin insert reduction end insert is
adopted by the state board.

(III) The percentage in effect at the time the moneys are awarded
to a heavy-duty truck with an internal combustion engine pursuant
to this subparagraph shall not change that award.

begin delete

(IV) The owner or responsible official of a heavy-duty truck
with an internal combustion engine receiving moneys appropriated
pursuant to this subparagraph shall document the required
renewable content by volume of fuel dispensed to the vehicle for
the internal combustion engine, as determined by the state board.

end delete begin insert

(IV) This subparagraph does not alter or affect, in any way, the
amount of credit or grants for which a low-carbon fuel provider
or truck operator is eligible pursuant to law.

end insert

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

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

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

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

(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall
develop guidance through the existing Air Quality Improvement
Program funding plan process for the implementation of this
section that is consistent with the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500)) and this chapter.

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

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

(2) Ensure that program investments are coordinated with
funding programs developed pursuant to the California Alternative
and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon
Reduction Act of 2007 (Chapter 8.9 (commencing with Section
44270) of Part 5).

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

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

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

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

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

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

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

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

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

(1) Benefit disadvantaged communities pursuant to Sections
39711 and 39713.

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

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

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

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

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

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

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

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

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

(2) Outline technology begin delete categories and end delete begin insert categories, end insert performance
begin delete criteria end delete begin insert criteria, and required mandates end insert for technologies and
applications that may be considered for funding pursuant to this
section. This shall include technologies begin insert and low-carbon fuel
requirements end insert for medium- and heavy-duty trucking, including, but
not limited to, vocational trucks, short-haul and long-haul trucks,
buses, and off-road vehicles and equipment, including, but not
limited to, port equipment, agricultural equipment, construction
equipment, marine equipment, and rail equipment.

(3) Describe the roles of the relevant agencies and the process
for begin delete coordination. end delete begin insert coordination among agencies, program
participants, and low-carbon fuel providers. end insert

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

(1) Effective January 2, 2018, “Heavy-duty truck” means a
vehicle that has a gross vehicle weight rate (GVWR) of 26,001
pounds or more.

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