Amended in Senate June 23, 2015

Amended in Assembly April 29, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 904


Introduced by Assembly Member Perea

begin insert

(Coauthor: Assembly Member Eduardo Garcia)

end insert

February 26, 2015


An act to add Section 44274.9 to the Health and Safety Code, relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

AB 904, as amended, Perea. Air Quality Improvement Program: Clean Reused Vehicle Rebate Project.

Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Pursuant to its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles.

This bill would require the state board to establish the Clean Reused Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to provide rebatesbegin insert or other incentivesend insert for thebegin delete purchaseend deletebegin insert acquisitionend insert of an eligible used vehiclebegin delete orend deletebegin insert, as defined; the replacement or refurbishment ofend insert a batterybegin insert and related componentsend insert for anbegin delete electricend deletebegin insert eligible usedend insert vehiclebegin delete,end deletebegin insert or an extended warranty for the battery or related components; or an extended service warranty to cover unexpected vehicle repairs not covered by the manufacturer’s warranty related to unique problems in eligible used vehicles,end insert as specified.

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 44274.9 is added to the Health and Safety
2Code
, to read:

3

44274.9.  

(a) For purposes of this section, the following terms
4mean the following:

5(1) “Eligible used vehicle” only includes the same categories
6of vehicles that are eligible for a rebate under the Clean Vehicle
7Rebate Project.

8(2) “Used vehicle” has the same meaning as set forth in Section
9665 of the Vehicle Code.

10(b) No later than July 1, 2017, the state board shall establish,
11as a part of the Air Quality Improvement Program, the Clean
12Reused Vehicle Rebate Project to provide an applicant withbegin delete eitherend delete
13begin insert anyend insert of the following:

14(1) A rebatebegin insert or other incentive with a valueend insert of up to two
15thousand five hundred dollars ($2,500) for thebegin delete purchaseend deletebegin insert acquisitionend insert
16 of an eligible used vehicle from a licensed dealer.

17(2) A rebatebegin insert or other incentiveend insert for thebegin delete purchaseend deletebegin insert replacement or
18refurbishmentend insert
of a batterybegin insert and related componentsend insert for anbegin delete electric
19vehicle.end delete
begin insert eligible used vehicle, for an extended warranty for the
20battery and related components, or for bothend insert
begin insert.end insert

begin insert

21(3) A rebate or other incentive for an extended service warranty
22to cover unexpected vehicle repairs not covered by the
23manufacturer’s warranty related to unique problems in eligible
24used vehicles.

end insert

25(c) A rebatebegin insert or other incentiveend insert issued pursuant tobegin delete subdivision
26(b)end delete
begin insert this sectionend insert shall be limited to one per vehicle.

begin insert

27(d) Rebates or other incentives issued pursuant to this section
28shall be limited to low- and moderate-income consumers residing
29in disadvantaged communities, as identified pursuant to Section
3039711.

end insert
begin delete

31(d)

end delete

32begin insert(e)end insert The state board shall coordinate the Clean Reused Vehicle
33Rebate Project with the Clean Vehicle Rebate Project, established
P3    1as part of the Air Quality Improvement Program established
2pursuant to this article,begin delete andend delete the enhanced fleet modernization
3program, established pursuant to Article 11 (commencing with
4Section 44125) of Chapter 5,begin delete to enhance outreach to low-income
5and moderate-income communities.end delete
begin insert and the Charge Ahead
6California Initiative, established pursuant to Chapter 8.5
7(commencing with Section 44285), including, but not limited to,
8all of the following:end insert

begin insert

9(1) Coordinating eligibility pursuant to this section with
10eligibility for the enhanced fleet modernization program.

end insert
begin insert

11(2) Ensuring appropriate outreach and targeting to low- and
12moderate-income households in an effort to encourage
13participation.

end insert
begin insert

14(3) Expanding financing mechanisms, including, but not limited
15to, a loan or loan-loss reserve credit enhancement program to
16increase consumer access to zero-emission and near-zero-emission
17vehicle financing and leasing options that can help lower
18expenditures on transportation and prequalification or
19point-of-sale rebates or other methods to increase participation
20rates among low- and moderate-income consumers.

end insert
begin insert

21(f) (1) The state board shall establish safeguards for the project
22established pursuant to this section to prevent both of the following:

end insert
begin insert

23(A) Fraudulent activity by the sellers and acquirers of eligible
24used vehicles.

end insert
begin insert

25(B) Practices that could prevent the intended recipients of
26rebates or other incentives from benefiting from this section.

end insert
begin insert

27(2) For purposes of this subdivision, “fraudulent activity” may
28include raising the price of eligible used vehicles in a manner that
29partially or completely captures a rebate or other incentive issued
30pursuant to this section.

end insert


O

    97