Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1176


Introduced by Assembly Member Perea

February 27, 2015


An act to amend Section 44272 of, to add Section 44271.3 to, and to add Chapter 8.8 (commencing with Section 44269) to Part 5 of Division 26 of, the Health and Safety Code, relating to vehicular air pollution, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1176, as amended, Perea. Vehicular air pollution.

(1) Existing law establishes the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007, which includes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission, and the Air Quality Improvement Program, administered by the State Air Resources Board. Existing law requires the emphasis of the Alternative and Renewable Fuel and Vehicle Technology Program to be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology. Existing law requires the primary purpose of the Air Quality Improvement Program to be the funding of projects to reduce criteria air pollutants, to improve air quality, and to fund research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.

This bill would establish the Advanced Low-Carbon Diesel Fuels Access Program, to be administered bybegin insert the commission, in consultation withend insert the state board, for the purpose of reducingbegin insert theend insert greenhouse gas emissions of diesel motor vehicles by providing capital assistance for projects that expand advanced low-carbon diesel fueling infrastructure in communities that are disproportionately impacted by environmental hazards and additionally where the greatest air quality impacts can be identified.

This bill would require the commission and the state board to allocate no less than 50% of the available moneys under the Alternative and Renewable Fuel and Vehicle Technology Program and the Air Quality Improvement Program to projects that provide direct benefits to or serve or are located in disadvantaged communities.

This bill would authorize the commission as part of the Alternative and Renewable Fuel and Vehicle Technology Program, to amend a contract, grant, loan, or other agreement or award to extend the terms of that contract, grant, loan, or other agreement or award by 2 years if the moneys are reprioritized by the commission to apply toward a project that provides benefits to disadvantaged communities.

(2) 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 board from the auction or sale of allowances 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. Existing law requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a 3-year investment plan for the moneys deposited in the Greenhouse Gas Reduction Fund.

This bill would appropriate $35,000,000 from the fund to the state board to implement the Advanced Low-Carbon Diesel Fuels Access Program.

(3) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

(a) It is the intent of the Legislature that the
2California Alternative and Renewable Fuel, Vehicle Technology,
3Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9
4(commencing with Section 44270) of Part 5 of Division 26 of the
5Health and Safety Code) continue the state’s implementation of
6Assembly Bill 118 (Chapterbegin delete 750,end deletebegin insert 750 of theend insert Statutes of 2007) by
7directing resources to the state’s most impacted and disadvantaged
8communities to ensure activities taken pursuant to that authority
9will provide economic and health benefits to these communities
10as well.

11(b) The Legislature further finds and declares all of the
12following:

13(1) The California Communities Environmental Health
14Screening Tool, also known as CalEnviroScreen, which was
15developed by the Office of Environmental Health Hazard
16Assessment at the request of the California Environmental
17Protection Agency, is a science-based tool that identifies the
18California communities most burdened by pollution from multiple
19sources and most vulnerable to its effects.

20(2) Using CalEnviroScreen, the California Environmental
21Protection Agency has identified the top 25 percent highest-scoring
22census tracts in the state based on geographic, socioeconomic,
23public health, and environmental hazard criteria and has designated
24these most impacted regions of the state as disadvantaged
25communities.

26(3) A significant number of the total identified top 25 percent
27highest-scoring census tracts of disadvantaged communities are
28located in the San Joaquin Valley, which is impacted by heavy
29freight traffic moving along the Interstate 5 and Highway 99
30begin delete corridors,end deletebegin insert corridorsend insert and along Interstate 710, which runs 18 miles
31from the Ports of Long Beach and Los Angeles to the Pomona
32Freeway (SR-60) in east Los Angeles and encompasses 15 cities
33and unincorporated areas in Los Angeles County adjacent to the
34freeway corridor.

35(4) Both regions consistently rate in the top 25 most polluted
36locations in the United States and frequently exceed by significant
37amounts the National Ambient Air Quality Standards for ozone
38and fine particulate matter.

P4    1(5) Medium- and heavy-duty diesel vehicles operating on
2petroleum diesel fuel and traveling along these heavy freight
3corridors, which are located adjacent to or within many of the
4state’s most environmentally impacted disadvantaged communities,
5are a significant contributor to emissions from greenhouse gases
6and criteria pollutants.

7(6) However, the majority of diesel motor vehicles on the state’s
8roads today can immediately reduce their emissions of greenhouse
9gases, oxides of nitrogen, particulate matter, and other emissions
10of concern by using low-carbon alternative and renewable
11biomass-based diesel fuels, such as renewable hydrocarbon diesel
12and low blends of biodiesel.

13(7) The state’s policymakers can facilitate immediate and
14tangible reductions of greenhouse gas emissions and criteria
15pollution and amplify near-term health cobenefits to the state’s
16most impacted and disadvantaged communities by funding the
17development and deployment of alternative and renewable fueling
18infrastructure to facilitate greater access to these advanced
19low-carbon diesel fuels.

20(8) It is the intent of the Legislature to provide the state’s most
21impacted and disadvantaged communities with reasonable and
22cost-effective opportunities to proactively participate in the state’s
23greenhouse gas emissions reduction strategies, which can provide
24immediate benefits in air quality, public health, the environment,
25and the economy.

26

SEC. 2.  

Chapter 8.8 (commencing with Section 44269) is added
27to Part 5 of Division 26 of the Health and Safety Code, to read:

28 

29Chapter  8.8. Advanced Low-Carbon Diesel Fuels Access
30Program
31

 

32

44269.  

For purposes of this chapter, the following terms have
33the following meanings:

begin delete

34(a) “Biomass-based diesel fuel” means a diesel fuel that is an
35“alternative fuel,” as defined in Section 43867.

end delete
begin insert

36(a) “Commission” means the State Energy Resources
37Conservation and Development Commission.

end insert

38(b) “Disproportionately impacted by environmental hazards”
39means public health or environmental effects from the emission
40or discharge of substances in a geographic area, including
P5    1environmental pollution for all sources whether in a single medium
2or in multiple media, routinely, accidently, or otherwise released
3into the environment, taking into account sensitive populations
4and socioeconomic factors, where applicable and to the extent data
5is available.

begin insert

6(c) “Low-carbon diesel fuel” means a biomass-based diesel
7fuel that is used in diesel engines and meets all of the following
8criteria:

end insert
begin insert

9(1) Meets the definition of low-carbon diesel fuel pursuant to
10the Low Carbon Fuel Standard regulation (Subarticle 7
11(commencing with Section 95480) of Article 4 of Subchapter 10
12of Chapter 1 of Division 3 of Title 17 of the California Code of
13Regulations).

end insert
begin insert

14(2) Contains a minimum of 21 percent biomass-based content.

end insert
begin insert

15(3) Complies with the Commercialization of Alternative Diesel
16Fuels regulation (Subarticle 2 (commencing with Section 2293)
17of Article 3 of Chapter 5 of Division 3 of Title 13 of the California
18Code of Regulations), once that regulation becomes final.

end insert
begin insert

19(4) Has a recognized carbon intensity under the Low Carbon
20Fuel Standard regulation (Subarticle 7 (commencing with Section
2195480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3
22of Title 17 of the California Code of Regulations) of at least 50
23percent lower than the petroleum diesel baseline carbon intensity
24valuation.

end insert
begin insert

25(5) Does not produce higher levels of oxides of nitrogen or
26particulate matter than petroleum diesel fuel.

end insert
begin delete

27(c)

end delete

28begin insert(d)end insert “Low-carbon diesel fueling infrastructure” means the
29equipment used to store and dispensebegin delete biomass-basedend deletebegin insert low-carbonend insert
30 diesel fuel to motor vehicles according to industry codes and
31standards and that is open to the public.begin insert Types of eligible equipment
32include, but are not limited to, storage, tanks, piping, fittings, fuel
33dispensers, signage, point-of-sale systems, and their associated
34construction.end insert

35

44269.2.  

(a) The Advanced Low-Carbon Diesel Fuels Access
36Program is hereby established. Thebegin insert commission, in consultation
37with theend insert
statebegin delete boardend deletebegin insert board,end insert shall administer the program for the
38purpose of reducingbegin insert theend insert greenhouse gas emissions of diesel motor
39vehicles by providing capital assistance for projects that expand
40advanced low-carbon diesel fueling infrastructure in communities
P6    1that are disproportionately impacted by environmental hazards
2and where additionally the greatest air quality impacts can be
3identified.

4(b) Moneys shall be available, upon appropriation by the
5Legislature, from the Greenhouse Gas Reduction Fund, created
6pursuant to Section 16428.8 of the Government Code, for the
7purposes of carrying out this chapter.

8

44269.4.  

On or before March 1, 2016, thebegin delete state boardend delete
9begin insert commissionend insert shall do both of the following:

10(a) Develop guidelines for the implementation of this chapter.
11The guidelines shall ensure that the program is focused on
12communities that are disproportionately impacted by environmental
13hazards and where the greatest vehicular air pollution impact is
14identified.

15(b) Select, in consultation with the California Environmental
16Protection Agency, the disadvantaged communities identified
17pursuant to Section 39711.

18

44269.6.  

(a) In evaluating projects to be allocated moneys
19pursuant to this chapter, thebegin delete state boardend deletebegin insert commissionend insert shall give
20priority to a project with all of the following characteristics:

21(1) Occurs in or near communities identified pursuant to Section
2239711.

23(2) Demonstrates the potential for cobenefits or multibenefit
24attributes, including reducing significant emissions of criteria
25pollutants or toxic air contaminants.

26(3) Quantifies and measures cost-effectiveness and impacts on
27disadvantaged and low-income populations.

28(4) Demonstrates the ability to leverage additional public or
29private funding.

30(5) Demonstrates the ability to obtain immediate benefits.

31(6) Includes marketing and education outreach strategies
32designed to increase the effectiveness of the program’s goals.

33(b) A project required to be undertaken pursuant to state, federal,
34or local laws shall not be allocated moneys pursuant to this chapter.

35

SEC. 3.  

Section 44271.3 is added to the Health and Safety
36Code
, to read:

37

44271.3.  

The commission and the state board shall allocate no
38less than 50 percent of the moneys available pursuant to this
39chapter to projects that meet either of the following criteria:

P7    1(a) Provide direct benefits to communities identified pursuant
2to Section 39711.

3(b) Serve or are located within communities described in Section
439711.

5

SEC. 4.  

Section 44272 of the Health and Safety Code is
6amended to read:

7

44272.  

(a) The Alternative and Renewable Fuel and Vehicle
8Technology Program is hereby created. The program shall be
9administered by the commission. The commission shall implement
10the program by regulation pursuant to the requirements of Chapter
113.5 (commencing with Section 11340) of Part 1 of Division 3 of
12Title 2 of the Government Code. The program shall provide, upon
13appropriation by the Legislature, competitive grants, revolving
14loans, loan guarantees, loans, or other appropriate funding
15measures, to public agencies, vehicle and technology entities,
16businesses and projects, public-private partnerships, workforce
17training partnerships and collaboratives, fleet owners, consumers,
18recreational boaters, and academic institutions to develop and
19deploy innovative technologies that transform California’s fuel
20and vehicle types to help attain the state’s climate change policies.
21The emphasis of this program shall be to develop and deploy
22technology and alternative and renewable fuels in the marketplace,
23without adopting any one preferred fuel or technology.

24(b) A project that receives more than seventy-five thousand
25dollars ($75,000) in funds from the commission shall be approved
26at a noticed public meeting of the commission and shall be
27consistent with the priorities established by the investment plan
28adopted pursuant to Section 44272.5. Under this article, the
29commission may delegate to the commission’s executive director,
30or his or her designee, the authority to approve either of the
31following:

32(1) A contract, grant, loan, or other agreement or award that
33receives seventy-five thousand dollars ($75,000) or less in funds
34from the commission.

35(2) Amendments to a contract, grant, loan, or other agreement
36or award as long as the amendments do not increase the amount
37of the award, change the scope of the project, or modify the purpose
38of the agreement.

39(c) The commission shall provide preferences to those projects
40that maximize the goals of the Alternative and Renewable Fuel
P8    1and Vehicle Technology Program, based on the following criteria,
2as applicable:

3(1) The project’s ability to provide a measurable transition from
4the nearly exclusive use of petroleum fuels to a diverse portfolio
5of viable alternative fuels that meet petroleum reduction and
6alternative fuel use goals.

7(2) The project’s consistency with existing and future state
8climate change policy and low-carbon fuel standards.

9(3) The project’s ability to reduce criteria air pollutants and air
10toxics and reduce or avoid multimedia environmental impacts.

11(4) The project’s ability to decrease, on a life-cycle basis, the
12discharge of water pollutants or any other substances known to
13damage human health or the environment, in comparison to the
14production and use of California Phase 2 Reformulated Gasoline
15or diesel fuel produced and sold pursuant to California diesel fuel
16regulations set forth in Article 2 (commencing with Section 2280)
17of Chapter 5 of Division 3 of Title 13 of the California Code of
18Regulations.

19(5) The project does not adversely impact the sustainability of
20the state’s natural resources, especially state and federal lands.

21(6) The project provides nonstate matching funds. Costs incurred
22from the date a proposed award is noticed may be counted as
23nonstate matching funds. The commission may adopt further
24requirements for the purposes of this paragraph. The commission
25is not liable for costs incurred pursuant to this paragraph if the
26commission does not give final approval for the project or the
27proposed recipient does not meet requirements adopted by the
28commission pursuant to this paragraph.

29(7) The project provides economic benefits for California by
30promoting California-based technology firms, jobs, and businesses.

31(8) The project uses existing or proposed fueling infrastructure
32to maximize the outcome of the project.

33(9) The project’s ability to reduce on a life-cycle assessment
34greenhouse gas emissions by at least 10 percent, and higher
35percentages in the future, from current reformulated gasoline and
36diesel fuel standards established by the state board.

37(10) The project’s use of alternative fuel blends of at least 20
38percent, and higher blend ratios in the future, with a preference
39for projects with higher blends.

P9    1(11) The project drives new technology advancement for
2vehicles, vessels, engines, and other equipment, and promotes the
3deployment of that technology in the marketplace.

4(d) The commission shall rank applications for projects proposed
5for funding awards based on solicitation criteria developed in
6accordance with subdivision (c), and shall give additional
7preference to funding those projects with higher benefit-cost scores.

8(e) Only the following shall be eligible for funding:

9(1) Alternative and renewable fuel projects to develop and
10improve alternative and renewable low-carbon fuels, including
11electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
12hydrogen, and biomethane, among others, and their feedstocks
13that have high potential for long-term or short-term
14commercialization, including projects that lead to sustainable
15feedstocks.

16(2) Demonstration and deployment projects that optimize
17alternative and renewable fuels for existing and developing engine
18technologies.

19(3) Projects to produce alternative and renewable low-carbon
20fuels in California.

21(4) Projects to decrease the overall impact of an alternative and
22renewable fuel’sbegin delete life cycleend deletebegin insert life-cycleend insert carbon footprint and increase
23sustainability.

24(5) Alternative and renewable fuel infrastructure, fueling
25stations, and equipment. The preference in paragraph (10) of
26subdivision (c) shall not apply to renewable diesel or biodiesel
27infrastructure, fueling stations, and equipment used solely for
28renewable diesel or biodiesel fuel.

29(6) Projects to develop and improve light-, medium-, and
30heavy-duty vehicle technologies that provide for better fuel
31efficiency and lower greenhouse gas emissions, alternative fuel
32usage and storage, or emission reductions, including propulsion
33systems, advanced internal combustion engines with a 40 percent
34or better efficiency level over the current market standard,
35lightweight materials, intelligent transportation systems, energy
36storage, control systems and system integration, physical
37measurement and metering systems and software, development of
38design standards and testing and certification protocols, battery
39recycling and reuse, engine and fuel optimization electronic and
40electrified components, hybrid technology, plug-in hybrid
P10   1technology, battery electric vehicle technology, fuel cell
2technology, and conversions of hybrid technology to plug-in
3technology through the installation of safety certified supplemental
4battery modules.

5(7) Programs and projects that accelerate the commercialization
6of vehicles and alternative and renewable fuels including buy-down
7programs through near-market and market-path deployments,
8advanced technology warranty or replacement insurance,
9development of market niches, supply-chain development, and
10research related to the pedestrian safety impacts of vehicle
11technologies and alternative and renewable fuels.

12(8) Programs and projects to retrofit medium- and heavy-duty
13onroad and nonroad vehicle fleets with technologies that create
14higher fuel efficiencies, including alternative and renewable fuel
15vehicles and technologies, idle management technology, and
16aerodynamic retrofits that decrease fuel consumption.

17(9) Infrastructure projects that promote alternative and renewable
18fuel infrastructure development connected with existing fleets,
19public transit, and existing transportation corridors, including
20physical measurement or metering equipment and truck stop
21electrification.

22(10) Workforce training programs related to alternative and
23renewable fuel feedstock production and extraction, renewable
24fuel production, distribution, transport, and storage,
25high-performance and low-emission vehicle technology and high
26tower electronics, automotive computer systems, mass transit fleet
27conversion, servicing, and maintenance, and other sectors or
28occupations related to the purposes of this chapter.

29(11) Block grants or incentive programs administered by public
30entities or not-for-profit technology entities for multiple projects,
31education and program promotion within California, and
32development of alternative and renewable fuel and vehicle
33technology centers. The commission may adopt guidelines for
34implementing the block grant or incentive program, which shall
35be approved at a noticed public meeting of the commission.

36(12) Life cycle and multimedia analyses, sustainability and
37environmental impact evaluations, and market, financial, and
38technology assessments performed by a state agency to determine
39the impacts of increasing the use of low-carbon transportation fuels
P11   1and technologies, and to assist in the preparation of the investment
2plan and program implementation.

3(13) A program to provide funding for homeowners who
4purchase a plug-in electric vehicle to offset costs associated with
5 modifying electrical sources to include a residential plug-in electric
6vehicle charging station. In establishing this program, the
7commission shall consider funding criteria to maximize the public
8benefit of the program.

9(f) The commission may make a single source or sole source
10award pursuant to this section for applied research. The same
11requirements set forth in Section 25620.5 of the Public Resources
12Code shall apply to awards made on a single source basis or a sole
13source basis. This subdivision does not authorize the commission
14to make a single source or sole source award for a project or
15activity other than for applied research.

16(g) The commission may do all of the following:

17(1) Contract with the Treasurer to expend funds through
18programs implemented by the Treasurer, if the expenditure is
19consistent with all of the requirements of this article and Article
201 (commencing with Section 44270).

21(2) Contract with small business financial development
22corporations established by the Governor’s Office of Business and
23Economic Development to expend funds through the Small
24Business Loan Guarantee Program if the expenditure is consistent
25with all of the requirements of this article and Article 1
26(commencing with Section 44270).

27(3) Advance funds, pursuant to an agreement with the
28commission, to any of the following:

29(A) A public entity.

30(B) A recipient to enable it to make advance payments to a
31public entity that is a subrecipient of the funds and under a binding
32and enforceable subagreement with the recipient.

33(C) An administrator of a block grant program.

34(4) Amend a contract, grant, loan, or other agreement or award
35to extend the terms of that contract, grant, loan, or other agreement
36or award by two years if the moneys are reprioritized by the
37commission to apply toward a project that complies with Section
3844271.3.

39

SEC. 5.  

Notwithstanding Section 39718 of the Health and
40Safety Code, the sum of thirty-five million dollars ($35,000,000)
P12   1is hereby appropriated from the Greenhouse Gas Reduction Fund,
2created pursuant to Section 16428.8 of the Government Code, to
3the State Air Resources Board for the purpose of implementing
4the Advanced Low-Carbon Diesel Fuels Access Program (Chapter
58.8 (commencing with Section 44269) of Part 5 of Division 26 of
6the Health and Safety Code).

7

SEC. 6.  

This act is an urgency statute necessary for the
8immediate preservation of the public peace, health, or safety within
9the meaning of Article IV of the Constitution and shall go into
10immediate effect. The facts constituting the necessity are:

11To ensure stable funding for programs to reduce vehicular air
12pollution for the protection of the public health and safety, it is
13necessary for this act to take effect immediately.



O

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