Amended in Assembly April 23, 2015

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.


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 by the commission, in consultation with the state board, for the purpose of reducing the 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 thebegin delete state boardend deletebegin insert commissionend insert 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


(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 (Chapter 750 of the 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

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

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
30corridors and along Interstate 710, which runs 18 miles from the
31Ports of Long Beach and Los Angeles to the Pomona Freeway
32(SR-60) in east Los Angeles and encompasses 15 cities and
33unincorporated 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.


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:


29Chapter  8.8. Advanced Low-Carbon Diesel Fuels Access




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

34(a) “Commission” means the State Energy Resources
35Conservation and Development Commission.

36(b) “Disproportionately impacted by environmental hazards”
37means public health or environmental effects from the emission
38or discharge of substances in a geographic area, including
39environmental pollution for all sources whether in a single medium
40or in multiple media, routinely, accidently, or otherwise released
P5    1into the environment, taking into account sensitive populations
2and socioeconomic factors, where applicable and to the extent data
3is available.

4(c) “Low-carbon diesel fuel” means a biomass-based diesel fuel
5that is used in diesel engines and meets all of the following criteria:

6(1) Meets the definition of low-carbon diesel fuel pursuant to
7the Low Carbon Fuel Standard regulation (Subarticle 7
8(commencing with Section 95480) of Article 4 of Subchapter 10
9of Chapter 1 of Division 3 of Title 17 of the California Code of

11(2) Contains a minimum of 21 percent biomass-based content.

12(3) Complies with the Commercialization of Alternative Diesel
13Fuels regulation (Subarticle 2 (commencing with Section 2293)
14of Article 3 of Chapter 5 of Division 3 of Title 13 of the California
15Code of Regulations), once that regulation becomes final.

16(4) Has a recognized carbon intensity under the Low Carbon
17Fuel Standard regulation (Subarticle 7 (commencing with Section
1895480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3
19of Title 17 of the California Code of Regulations) of at least 50
20percent lower than the petroleum diesel baseline carbon intensity

22(5) Does not produce higher levels of oxides of nitrogen or
23particulate matter than petroleum diesel fuel.

24(d) “Low-carbon diesel fueling infrastructure” means the
25equipment used to store and dispense low-carbon diesel fuel to
26motor vehicles according to industry codes and standards and that
27is open to the public. Types of eligible equipment include, but are
28not limited to, storage, tanks, piping, fittings, fuel dispensers,
29signage, point-of-sale systems, and their associated construction.



(a) The Advanced Low-Carbon Diesel Fuels Access
31Program is hereby established. The commission, in consultation
32with the state board, shall administer the program for the purpose
33of reducing the greenhouse gas emissions of diesel motor vehicles
34by providing capital assistance for projects that expand advanced
35low-carbon diesel fueling infrastructure in communities that are
36disproportionately impacted by environmental hazards and where
37additionally the greatest air quality impacts can be identified.

38(b) Moneys shall be available, upon appropriation by the
39Legislature, from the Greenhouse Gas Reduction Fund, created
P6    1pursuant to Section 16428.8 of the Government Code, for the
2purposes of carrying out this chapter.



On or before March 1, 2016, the commission shall
4do both of the following:

5(a) Develop guidelines for the implementation of this chapter.
6The guidelines shall ensure that the program is focused on
7communities that are disproportionately impacted by environmental
8hazards and where the greatest vehicular air pollution impact is

10(b) Select, in consultation with the California Environmental
11Protection Agency, the disadvantaged communities identified
12pursuant to Section 39711.



(a) In evaluating projects to be allocated moneys
14pursuant to this chapter, the commission shall give priority to a
15project with all of the following characteristics:

16(1) Occurs in or near communities identified pursuant to Section

18(2) Demonstrates the potential for cobenefits or multibenefit
19attributes, including reducing significant emissions of criteria
20pollutants or toxic air contaminants.

21(3) Quantifies and measures cost-effectiveness and impacts on
22disadvantaged and low-income populations.

23(4) Demonstrates the ability to leverage additional public or
24private funding.

25(5) Demonstrates the ability to obtain immediate benefits.

26(6) Includes marketing and education outreach strategies
27designed to increase the effectiveness of the program’s goals.

28(b) A project required to be undertaken pursuant to state, federal,
29or local laws shall not be allocated moneys pursuant to this chapter.


SEC. 3.  

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



The commission and the state board shall allocate no
33less than 50 percent of the moneys available pursuant to this
34chapter to projects that meet either of the following criteria:

35(a) Provide direct benefits to communities identified pursuant
36to Section 39711.

37(b) Serve or are located within communities described in Section


SEC. 4.  

Section 44272 of the Health and Safety Code is
40amended to read:

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(a) The Alternative and Renewable Fuel and Vehicle
2Technology Program is hereby created. The program shall be
3administered by the commission. The commission shall implement
4the program by regulation pursuant to the requirements of Chapter
53.5 (commencing with Section 11340) of Part 1 of Division 3 of
6Title 2 of the Government Code. The program shall provide, upon
7appropriation by the Legislature, competitive grants, revolving
8loans, loan guarantees, loans, or other appropriate funding
9measures, to public agencies, vehicle and technology entities,
10businesses and projects, public-private partnerships, workforce
11training partnerships and collaboratives, fleet owners, consumers,
12recreational boaters, and academic institutions to develop and
13deploy innovative technologies that transform California’s fuel
14and vehicle types to help attain the state’s climate change policies.
15The emphasis of this program shall be to develop and deploy
16technology and alternative and renewable fuels in the marketplace,
17without adopting any one preferred fuel or technology.

18(b) A project that receives more than seventy-five thousand
19dollars ($75,000) in funds from the commission shall be approved
20at a noticed public meeting of the commission and shall be
21consistent with the priorities established by the investment plan
22adopted pursuant to Section 44272.5. Under this article, the
23commission may delegate to the commission’s executive director,
24or his or her designee, the authority to approve either of the

26(1) A contract, grant, loan, or other agreement or award that
27receives seventy-five thousand dollars ($75,000) or less in funds
28from the commission.

29(2) Amendments to a contract, grant, loan, or other agreement
30or award as long as the amendments do not increase the amount
31of the award, change the scope of the project, or modify the purpose
32of the agreement.

33(c) The commission shall provide preferences to those projects
34that maximize the goals of the Alternative and Renewable Fuel
35and Vehicle Technology Program, based on the following criteria,
36as applicable:

37(1) The project’s ability to provide a measurable transition from
38the nearly exclusive use of petroleum fuels to a diverse portfolio
39of viable alternative fuels that meet petroleum reduction and
40alternative fuel use goals.

P8    1(2) The project’s consistency with existing and future state
2climate change policy and low-carbon fuel standards.

3(3) The project’s ability to reduce criteria air pollutants and air
4toxics and reduce or avoid multimedia environmental impacts.

5(4) The project’s ability to decrease, on a life-cycle basis, the
6discharge of water pollutants or any other substances known to
7damage human health or the environment, in comparison to the
8production and use of California Phase 2 Reformulated Gasoline
9or diesel fuel produced and sold pursuant to California diesel fuel
10regulations set forth in Article 2 (commencing with Section 2280)
11of Chapter 5 of Division 3 of Title 13 of the California Code of
12 Regulations.

13(5) The project does not adversely impact the sustainability of
14the state’s natural resources, especially state and federal lands.

15(6) The project provides nonstate matching funds. Costs incurred
16from the date a proposed award is noticed may be counted as
17nonstate matching funds. The commission may adopt further
18requirements for the purposes of this paragraph. The commission
19is not liable for costs incurred pursuant to this paragraph if the
20commission does not give final approval for the project or the
21proposed recipient does not meet requirements adopted by the
22commission pursuant to this paragraph.

23(7) The project provides economic benefits for California by
24promoting California-based technology firms, jobs, and businesses.

25(8) The project uses existing or proposed fueling infrastructure
26to maximize the outcome of the project.

27(9) The project’s ability to reduce on a life-cycle assessment
28greenhouse gas emissions by at least 10 percent, and higher
29percentages in the future, from current reformulated gasoline and
30diesel fuel standards established by the state board.

31(10) The project’s use of alternative fuel blends of at least 20
32percent, and higher blend ratios in the future, with a preference
33for projects with higher blends.

34(11) The project drives new technology advancement for
35vehicles, vessels, engines, and other equipment, and promotes the
36deployment of that technology in the marketplace.

37(d) The commission shall rank applications for projects proposed
38for funding awards based on solicitation criteria developed in
39accordance with subdivision (c), and shall give additional
40preference to funding those projects with higher benefit-cost scores.

P9    1(e) Only the following shall be eligible for funding:

2(1) Alternative and renewable fuel projects to develop and
3improve alternative and renewable low-carbon fuels, including
4electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
5hydrogen, and biomethane, among others, and their feedstocks
6that have high potential for long-term or short-term
7commercialization, including projects that lead to sustainable

9(2) Demonstration and deployment projects that optimize
10alternative and renewable fuels for existing and developing engine

12(3) Projects to produce alternative and renewable low-carbon
13fuels in California.

14(4) Projects to decrease the overall impact of an alternative and
15renewable fuel’s life-cycle carbon footprint and increase

17(5) Alternative and renewable fuel infrastructure, fueling
18stations, and equipment. The preference in paragraph (10) of
19subdivision (c) shall not apply to renewable diesel or biodiesel
20infrastructure, fueling stations, and equipment used solely for
21renewable diesel or biodiesel fuel.

22(6) Projects to develop and improve light-, medium-, and
23heavy-duty vehicle technologies that provide for better fuel
24efficiency and lower greenhouse gas emissions, alternative fuel
25usage and storage, or emission reductions, including propulsion
26systems, advanced internal combustion engines with a 40 percent
27or better efficiency level over the current market standard,
28lightweight materials, intelligent transportation systems, energy
29storage, control systems and system integration, physical
30measurement and metering systems and software, development of
31design standards and testing and certification protocols, battery
32recycling and reuse, engine and fuel optimization electronic and
33electrified components, hybrid technology, plug-in hybrid
34technology, battery electric vehicle technology, fuel cell
35technology, and conversions of hybrid technology to plug-in
36technology through the installation of safety certified supplemental
37battery modules.

38(7) Programs and projects that accelerate the commercialization
39of vehicles and alternative and renewable fuels including buy-down
40programs through near-market and market-path deployments,
P10   1advanced technology warranty or replacement insurance,
2development of market niches, supply-chain development, and
3research related to the pedestrian safety impacts of vehicle
4technologies and alternative and renewable fuels.

5(8) Programs and projects to retrofit medium- and heavy-duty
6onroad and nonroad vehicle fleets with technologies that create
7higher fuel efficiencies, including alternative and renewable fuel
8vehicles and technologies, idle management technology, and
9aerodynamic retrofits that decrease fuel consumption.

10(9) Infrastructure projects that promote alternative and renewable
11fuel infrastructure development connected with existing fleets,
12public transit, and existing transportation corridors, including
13physical measurement or metering equipment and truck stop

15(10) Workforce training programs related to alternative and
16renewable fuel feedstock production and extraction, renewable
17fuel production, distribution, transport, and storage,
18high-performance and low-emission vehicle technology and high
19tower electronics, automotive computer systems, mass transit fleet
20conversion, servicing, and maintenance, and other sectors or
21occupations related to the purposes of this chapter.

22(11) Block grants or incentive programs administered by public
23entities or not-for-profit technology entities for multiple projects,
24education and program promotion within California, and
25development of alternative and renewable fuel and vehicle
26technology centers. The commission may adopt guidelines for
27implementing the block grant or incentive program, which shall
28be approved at a noticed public meeting of the commission.

29(12) Life cycle and multimedia analyses, sustainability and
30environmental impact evaluations, and market, financial, and
31technology assessments performed by a state agency to determine
32the impacts of increasing the use of low-carbon transportation fuels
33and technologies, and to assist in the preparation of the investment
34plan and program implementation.

35(13) A program to provide funding for homeowners who
36purchase a plug-in electric vehicle to offset costs associated with
37 modifying electrical sources to include a residential plug-in electric
38vehicle charging station. In establishing this program, the
39commission shall consider funding criteria to maximize the public
40benefit of the program.

P11   1(f) The commission may make a single source or sole source
2award pursuant to this section for applied research. The same
3requirements set forth in Section 25620.5 of the Public Resources
4Code shall apply to awards made on a single source basis or a sole
5source basis. This subdivision does not authorize the commission
6to make a single source or sole source award for a project or
7activity other than for applied research.

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

9(1) Contract with the Treasurer to expend funds through
10programs implemented by the Treasurer, if the expenditure is
11consistent with all of the requirements of this article and Article
121 (commencing with Section 44270).

13(2) Contract with small business financial development
14corporations established by the Governor’s Office of Business and
15Economic Development to expend funds through the Small
16Business Loan Guarantee Program if the expenditure is consistent
17with all of the requirements of this article and Article 1
18(commencing with Section 44270).

19(3) Advance funds, pursuant to an agreement with the
20commission, to any of the following:

21(A) A public entity.

22(B) A recipient to enable it to make advance payments to a
23public entity that is a subrecipient of the funds and under a binding
24and enforceable subagreement with the recipient.

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

26(4) Amend a contract, grant, loan, or other agreement or award
27to extend the terms of that contract, grant, loan, or other agreement
28or award by two years if the moneys are reprioritized by the
29commission to apply toward a project that complies with Section


SEC. 5.  

Notwithstanding Section 39718 of the Health and
32Safety Code, the sum of thirty-five million dollars ($35,000,000)
33is hereby appropriated from the Greenhouse Gas Reduction Fund,
34created pursuant to Section 16428.8 of the Government Code, to
35thebegin delete State Air Resources Boardend deletebegin insert State Energy Resources
36Conservation and Development Commissionend insert
for the purpose of
37implementing the Advanced Low-Carbon Diesel Fuels Access
38Program (Chapter 8.8 (commencing with Section 44269) of Part
395 of Division 26 of the Health and Safety Code).

P12   1

SEC. 6.  

This act is an urgency statute necessary for the
2immediate preservation of the public peace, health, or safety within
3the meaning of Article IV of the Constitution and shall go into
4immediate effect. The facts constituting the necessity are:

5To ensure stable funding for programs to reduce vehicular air
6pollution for the protection of the public health and safety, it is
7necessary for this act to take effect immediately.