BILL ANALYSIS Ó
AB 857
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
857 (Perea) - As Amended May 5, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill re-establishes the priorities of the California Clean
Truck, Bus, and Off-Road Vehicle and Equipment Technology
Program (Technology Program) by providing that no less than 50%
(or $100 million, whichever is greater) of program funds go to
AB 857
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certain heavy-duty trucks that meet specified emissions
standards.
Specifically, this bill requires 50% of Greenhouse Gas Reduction
Fund (GGRF) funds appropriated to the Technology Program (or
$100 million, whichever is greater), during the period between
January 2, 2018, and January 1, 2023, to be allocated to support
the commercial deployment of existing zero- and
near-zero-emission heavy-duty truck technology [trucks with a
gross vehicle weight rating (GVWR) of 26,001 lbs. or more] that
meet or exceed low NOx standards (0.02 grams per brake
horsepower-hour oxides of nitrogen).
FISCAL EFFECT:
Increased first year costs of $842,000, ongoing annual costs of
$1 million for staffing, and $1 million in contracts to perform
the following duties:
1)Develop guidelines and procedures to implement the program.
2)Develop grant solicitations for new projects.
3)Conduct fleet audits and data analysis.
4)Conduct on-site inspections.
5)Update GGRF and fiscal procedures to manage cash flow and
changes resulting from the program.
6)Review grant solicitations, process and track funding
disbursements.
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COMMENTS:
1)Background and Purpose. SB 1204 (Lara), Chapter 524, Statutes
of 2013, established the Clean Truck Program (Program)
administered by ARB. The intent of SB 1204 was to create a
single, overarching program to develop and deploy heavy-duty
vehicles primarily because heavy-duty vehicles were not
addressed in other programs to the degree this bill's author
and supporters thought was appropriate.
Specifically, the Program, until January 1, 2018, provides no
less than 20% of GGRF funds for projects that develop
technology, demonstrate and pilot commercial and
early-commercial deployment of zero and near-zero emission
medium- and heavy-duty truck technology, and facilitate clean
goods movement.
When the Governor signed SB 1204, he included a signing
message stating:
To maximize reductions of these harmful emissions, the
focus of this funding must be on transformative, advanced
technology trucks and buses that can meet the objectives of
AB 32 by reducing emissions of both harmful criteria
pollutants and greenhouse gases. Only vehicles that are
certified to the cleanest standards and run on renewable
fuels merit funding through this program.
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According to the author, air pollution continues to affect
human health disproportionately in disadvantaged communities
and especially along transportation corridors. The author
notes that in the South Coast and San Joaquin Valley Air
Districts, nearly 80% of smog forming pollutants, such as NOx
come from mobile source, primarily, large transport trucks.
The author also notes that manufacturers claim that new
technologies will be available in the transportation
marketplace within the next three years that could meet
near-zero emissions levels (90% NOx reduction over the current
standard).
This bill allocates SB 1204 funds to heavy-duty, low NOx
(e.g., natural gas) trucks from 2018-2023. Specifically, the
bill requires, during that five-year period, that 50% of SB
1204 truck funds (or $100 million, whichever is greater) be
used for the deployment of certain heavy-duty vehicles that
meet a low NOx standard (i.e., meet or exceed an emission
standard of 0.02 grams NOx per brake horsepower-hour).
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
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