Amended in Senate August 18, 2015

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 BillNo. 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 boardbegin delete from the auction or sale of allowancesend delete 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:

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:

P3    1(1) Technology development, demonstration, precommercial
2pilots, and early commercial deployments of zero- and
3near-zero-emission medium- and heavy-duty truck technology,
4including projects that help to facilitate clean goods-movement
5corridors.

6(A) Until January 1, 2018, no less than 20 percent of funding
7made available for the purposes of this paragraph shall support
8early commercial deployment of existing zero- and
9near-zero-emission heavy-duty truck technology.

10(B) (i) Between January 2, 2018, and January 1, 2023, inclusive,
11annually no less than 50 percent or one hundred million dollars
12($100,000,000), whichever is greater, of the moneys allocated for
13the purposes of this paragraph shall be allocated and spent to
14support the commercial deployment of existing zero- and
15near-zero-emission heavy-duty truck technology that meets or
16exceeds an emission standard of 0.02 grams per brake
17horsepower-hour oxides of nitrogen, as described in the optional
18low oxides of nitrogen emission standards in Section 1956.8 of
19Title 13 of the California Code of Regulations.

begin delete

20(ii) (I) Beginning January 2, 2018, a heavy-duty truck with an
21internal combustion engine receiving moneys appropriated pursuant
22to this subparagraph shall not use a fuel with a carbon intensity of
23greater than 79 percent of the carbon intensity of diesel, as defined
24in the low-carbon fuel standard (Subarticle 7 (commencing with
25Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of
26Division 3 of Title 17 of the California Code of Regulations), as
27of January 1, 2016.

28(II) The state board may reduce the maximum fuel carbon
29intensity permitted for the appropriation of moneys pursuant to
30this subparagraph in subsequent years if the state board makes a
31finding that a greater reduction is commercially feasible and the
32State Energy Resources Conservation and Development
33Commission makes a finding that there is a sufficient supply of
34renewable energy fuel available. A reduction adopted pursuant to
35this subclause shall apply prospectively to moneys awarded after
36the reduction is adopted by the state board.

end delete
begin insert

37(ii) (I) Between January 2, 2018, and January 1, 2020,
38inclusive, a heavy-duty truck with an internal combustion engine
39receiving moneys appropriated pursuant to this subparagraph
40shall use not less than 30 percent renewable fuel.

end insert
begin insert

P4    1(II) Beginning January 2, 2020, a heavy-duty truck with an
2internal combustion engine receiving moneys appropriated
3pursuant to this subparagraph shall use not less than 50 percent
4renewable fuel.

end insert
begin insert

5(III) The state board may increase the minimum percentage of
6renewable fuel required for the appropriation of moneys pursuant
7to this subparagraph in subsequent years if the state board makes
8a finding that a higher percentage is commercially feasible and
9the State Energy Resources Conservation and Development
10Commission makes a finding that there is a sufficient supply of
11renewable energy fuel available. An increase adopted pursuant
12to this subclause shall apply prospectively to moneys awarded
13after the increase is adopted by the state board.

end insert
begin delete

14(III)

end delete

15begin insert(IV)end insert The percentage in effect at the time the moneys are awarded
16to a heavy-duty truck with an internal combustion engine pursuant
17to this subparagraph shall not change that award.

begin delete

18(IV)

end delete

19begin insert(V)end insert This subparagraph does not alter or affect, in any way, the
20amount of credit or grants for which a low-carbon fuel provider
21or truck operator is eligible pursuant to law.

22(2) Zero- and near-zero-emission bus technology development,
23demonstration, precommercial pilots, and early commercial
24deployments, including pilots of multiple vehicles at one site or
25region.

26(3) Zero- and near-zero-emission off-road vehicle and equipment
27technology development, demonstration, precommercial pilots,
28and early commercial deployments, including vehicles and
29equipment in the port, agricultural, marine, construction, and rail
30sectors.

31(4) Purchase incentives, which may include point-of-sale, for
32commercially available zero- and near-zero-emission truck, bus,
33and off-road vehicle and equipment technologies and fueling
34infrastructure to support early market deployments of alternative
35technologies and to increase manufacturer volumes and accelerate
36market acceptance.

37(5) Projects that support greater commercial motor vehicle and
38equipment freight efficiency and greenhouse gas emissions
39reductions, including, but not limited to, advanced intelligent
P5    1transportation systems, autonomous vehicles, and other freight
2information and operations technologies.

3(c) The state board, in consultation with the State Energy
4Resources Conservation and Development Commission, shall
5develop guidance through the existing Air Quality Improvement
6Program funding plan process for the implementation of this
7section that is consistent with the California Global Warming
8Solutions Act of 2006 (Division 25.5 (commencing with Section
938500)) and this chapter.

10(d) The guidance developed pursuant to subdivision (c) shall
11do all of the following:

12(1) Outline performance criteria and metrics for deployment
13incentives. The goal shall be to design a simple and predictable
14structure that provides incentives for truck, bus, and off-road
15vehicle and equipment technologies that provide significant
16greenhouse gas reduction and air quality benefits.

17(2) Ensure that program investments are coordinated with
18funding programs developed pursuant to the California Alternative
19and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon
20Reduction Act of 2007 (Chapter 8.9 (commencing with Section
2144270) of Part 5).

22(3) Promote projects that assist the state in reaching its climate
23goals beyond 2020, consistent with Sections 38550 and 38551.

24(4) Promote investments in medium- and heavy-duty trucking,
25including, but not limited to, vocational trucks, short-haul and
26long-haul trucks, buses, and off-road vehicles and equipment,
27including, but not limited to, port equipment, agricultural
28equipment, marine equipment, and rail equipment.

29(5) Implement purchase incentives for eligible technologies to
30increase the use of the cleanest vehicles in disadvantaged
31communities.

32(6) Allow for remanufactured and retrofitted vehicles to qualify
33for purchase incentives if those vehicles meet warranty and
34emissions requirements, as determined by the state board.

35(7) Establish a competitive process for the allocation of moneys
36for projects funded pursuant to this section.

37(8) Leverage, to the maximum extent feasible, federal or private
38funding.

39(9) Ensure that the results of emissions reductions or benefits
40can be measured or quantified.

P6    1(10) Ensure that activities undertaken pursuant to this section
2complement, and do not interfere with, efforts to achieve and
3maintain federal and state ambient air quality standards and to
4reduce toxic air contaminants.

5(e) In evaluating potential projects to be funded pursuant to this
6section, the state board shall give priority to projects that
7demonstrate one or more of the following characteristics:

8(1) Benefit disadvantaged communities pursuant to Sections
939711 and 39713.

10(2) The ability to leverage additional public and private funding.

11(3) The potential for cobenefits or multiple-benefit attributes.

12(4) The potential for the project to be replicated.

13(5) Regional benefit, with focus on collaboration between
14multiple entities.

15(6) Support for technologies with broad market and emissions
16reduction potential.

17(7) Support for projects addressing technology and market
18barriers not addressed by other programs.

19(8) Support for enabling technologies that benefit multiple
20technology pathways.

21(f) In the implementation of this section, the state board, in
22consultation with the State Energy Resources Conservation and
23Development Commission, shall create an annual framework and
24plan. The framework and plan shall be developed with public input
25and may utilize existing investment plan processes and workshops
26as well as existing state and third-party research and technology
27roadmaps. The framework and plan shall do all of the following:

28(1) Articulate an overarching vision for technology development,
29demonstration, precommercial pilot, and early commercial
30deployments, with a focus on moving technologies through the
31commercialization process.

32(2) Outline technology categories, performance criteria, and
33required mandates for technologies and applications that may be
34considered for funding pursuant to this section. This shall include
35technologies and low-carbon fuel requirements for medium- and
36heavy-duty trucking, including, but not limited to, vocational
37trucks, short-haul and long-haul trucks, buses, and off-road vehicles
38and equipment, including, but not limited to, port equipment,
39agricultural equipment, construction equipment, marine equipment,
40and rail equipment.

P7    1(3) Describe the roles of the relevant agencies and the process
2for coordination among agencies, program participants, and
3low-carbon fuel providers.

4(g) For purposes of this section, the following terms have the
5following meanings:

6(1) Effective January 2, 2018, “Heavy-duty truck” means a
7vehicle that has a gross vehicle weight rate (GVWR) of 26,001
8pounds or more.

9(2) “Zero- and near-zero-emission” means vehicles, fuels, and
10related technologies that reduce greenhouse gas emissions and
11improve air quality when compared with conventional or fully
12commercialized alternatives, as defined by the state board in
13consultation with the State Energy Resources Conservation and
14Development Commission. “Zero- and near-zero-emission” may
15include, but is not limited to, zero-emission technology, enabling
16technologies that provide a pathway to emissions reductions,
17advanced or alternative fuel engines for long-haul trucks, and
18hybrid or alternative fuel technologies for trucks and off-road
19equipment.



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