BILL ANALYSIS Ó
AB 857
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ASSEMBLY THIRD READING
AB
857 (Perea)
As Amended May 5, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Transportation |16-0 |Frazier, Achadjian, | |
| | |Baker, Bloom, | |
| | |Campos, Chu, Daly, | |
| | |Dodd, Eduardo | |
| | |Garcia, Gomez, Kim, | |
| | |Linder, Medina, | |
| | |Melendez, Nazarian, | |
| | |O'Donnell | |
| | | | |
|----------------+------+---------------------+---------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Hadley, Harper, | |
| | |McCarty, Rendon, | |
| | |Mark Stone, Wood | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
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| | |Chang, Daly, Eggman, | |
| | |Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: After 2018, 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 certain heavy-duty trucks that meet specified emissions
standards. Specifically, this bill:
1)Requires that 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, 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
(Nitrogen oxides) standards (0.02 grams per brake
horsepower-hour oxides of nitrogen).
2)Recasts existing provisions and makes related, clarifying
amendments.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, increased first year costs of $842,000 and ongoing
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annual costs of $1,017,000 for staffing and $1,000,000 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.
COMMENTS: Existing law requires Air Resources Board (ARB) to
develop a plan to reduce GHG emissions to 1990 levels by 2020,
requires ARB to ensure that GHG emissions reduction requirements
and programs, to the extent feasible, direct public and private
investment toward the most disadvantaged communities in the state,
and authorize ARB to adopt a schedule of fees to be paid by GHG
emission sources into the GGRF, which is available upon
appropriation by the Legislature, to carry out emission reduction
requirements.
AB 118 (Núñez), Chapter 750, Statutes of 2007 established the Air
Quality Improvement Program (AQIP), funded through various fees
and surcharges on vehicles, to provide competitive grants to fund
projects that improve air quality. The AQIP encompasses several
programs, including the Hybrid and Zero-Emission Truck and Bus
Voucher Incentive Program (HVIP), which is administered by ARB and
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provides vouchers to California fleet owners to help purchase
hybrid and zero-emission trucks and buses. AB 118 also
established the ARFVTP, which is administered by the California
Energy Commission (Commission) and provides funding for
development and deployment of alternative and renewable fuels and
advanced transportation technologies to help attain the state's
climate change goals. Eligible projects include, for example,
development, improvement, and production of alternative and
renewable low-carbon fuels; improvement of light-, medium-, and
heavy-duty vehicle technologies; and expansion of infrastructure
connected with existing fleets, public transit, and transportation
corridors.
In 2014, SB 1204 (Lara), Chapter 524, Statutes of 2014 established
the Technology Program which is administered by ARB in conjunction
with the Commission. The intent of SB 1204 was to create a
single, overarching program to develop and deploy heavy-duty
vehicles primarily because the author felt that heavy-duty
vehicles were not being adequately addressed in HVIP and AQIP.
Specifically, the Technology Program, until January 1, 2018,
provides 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. The Technology
Program works to develop zero- and near-zero- emission
technologies for specified vehicles and equipment not only for
trucks, but also for off-road vehicles and equipment at the ports
as well as in agricultural, marine, and rail sectors. Within the
Technology Program, funding priority is generally given to
projects that demonstrate benefit to disadvantaged communities,
the ability to leverage additional public and private funding, and
provide the potential for co-benefits.
According to the author, air pollution continues to affect human
health disproportionately in disadvantaged communities and
especially along transportation corridors. He notes that in the
South Coast and San Joaquin Valley Air Districts, nearly 80% of
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smog forming pollutants, such as NOx, come from mobile
sources--primarily, large transport trucks. The author also notes
that manufactures 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). The author notes, however, that to achieve
widespread deployment of these new technologies, financial
incentives need to be in place to help "buy down" the capital
costs of this improved technology.
To help incentivize the adoption of these new technologies, the
author has introduced this bill which would reestablish the
priorities of the Technology Program for five years beginning on
January 2, 2018 and ending on January 1, 2023. Specifically, this
bill would require, during that five-year period, that 50% of
Technology Program funds (or $100 million, whichever is greater)
be used for the deployment of certain heavy-duty vehicles - those
weighing 26,001 lbs. GVWR or greater that meet a low NOx standard
(i.e., meet or exceed an emission standard of 0.02 grams per brake
horsepower-hour oxides of nitrogen).
Supporters of this bill, which include, among others, natural gas
industry representatives, contend that the bill will create
incentives for zero- and near-zero emission heavy-duty truck
purchases that will help purchasers afford the initial costs of
these cleaner trucks. They contend that these incentives will
help accelerate retirement of older, high polluting trucks; help
grow the clean, alternative fuel truck market; and stimulate
additional investments in the next generation of zero- and
near-zero emission truck technologies.
Writing in opposition to this bill, the Union of Concerned
Scientists (UCS) and the American Lung Association in California
(ALAC) note that transportation sector emissions need to be
targeted, but they believe that the bill, unnecessarily, directs a
very large fraction of GGRF funds exclusively to commercial
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deployment of the heaviest of trucks, thereby limiting funding for
other important emissions reducing projects. They also contend
that this bill fails to address specified GHG emissions reductions
despite the fact that the money is coming from the GGRF, which is
predicated on reducing global warming pollution.
UCS and ALAC also contend that this bill would prematurely limit
future technology investments, such as hybrid or plug-in hybrid
trucks, which could be zero-emission capable but would not be
eligible for prioritized funding unless they were also certified
to the low-NOx standard. They note that precluding these types of
technologies could exclude promising options for emissions
reductions and air quality improvements within and well beyond the
2018 to 2023 timeframe.
Lastly, UCS and ALAC point out that natural gas-powered heavy-duty
trucks will be certified to low-NOx emissions levels within the
next few years and will undoubtedly qualify for funding under this
bill; however, GHG emissions reductions from these vehicles
remains uncertain given that there is frequent methane leakage
that occurs during natural gas extraction, distribution, and
refueling as well as from the vehicle itself.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by:
Victoria Alvarez / TRANS. / (916) 319-2093 FN:
0000667
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