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 rebates or other incentives for the acquisition of an eligible used vehicle, as defined; the replacement or refurbishment of a battery and related components for an eligible used vehicle 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, 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:
Section 44274.9 is added to the Health and Safety
2Code, to read:
(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
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 with any
13of the following:
14(1) A rebate or other incentive with a value of up to
begin delete two for the acquisition of an eligible used vehicle from
15thousand five hundred dollars ($2,500)end delete
17a licensed dealer.
18(2) A rebate or other incentive for the replacement or
19refurbishment of a battery and related components for an eligible
20used vehicle, for an extended warranty for the battery and related
21components, or for both.
22(3) A rebate or other incentive for an extended service warranty
23to cover unexpected vehicle repairs not covered by the
24manufacturer’s warranty related to unique problems in eligible
26(c) A rebate or other incentive issued pursuant to this section
27 shall be limited to one per vehicle.
28(d) Rebates or other incentives issued pursuant to this section
29shall be limited to low- and moderate-income consumers residing
30in disadvantaged communities, as identified pursuant to Section
12 The state board shall coordinate the Clean Reused Vehicle
13Rebate Project with the Clean Vehicle Rebate Project, established
14as part of the Air Quality Improvement Program established
15pursuant to this article, the enhanced fleet modernization program,
16established pursuant to Article 11 (commencing with Section
1744125) of Chapter 5, and the Charge Ahead California Initiative,
18established pursuant to Chapter 8.5 (commencing with Section
1944285), including, but not limited to, all of the following:
20(1) Coordinating eligibility pursuant to this section with
21eligibility for the enhanced fleet modernization program.
22(2) Ensuring appropriate outreach and targeting to low- and
23moderate-income households in an effort to encourage
25(3) Expanding financing mechanisms, including, but not limited
26to, a loan or loan-loss reserve credit enhancement program to
27increase consumer access to zero-emission and near-zero-emission
28vehicle financing and leasing options that can help lower
29expenditures on transportation and prequalification or point-of-sale
30rebates or other methods to increase participation rates among low-
31and moderate-income consumers.
33 (1) The state board shall establish safeguards for the project
34established pursuant to this section to prevent both of the following:
35(A) Fraudulent activity by the
sellers and acquirers of eligible
37(B) Practices that could prevent the intended recipients of rebates
38or other incentives from benefiting from this section.
39(2) For purposes of this subdivision, “fraudulent activity” may
40include raising the price of eligible used vehicles in a manner that
P4 1partially or completely captures a rebate or other incentive issued
2pursuant to this section.