Amended in Senate July 7, 2015

Amended in Assembly June 1, 2015

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

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

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

P2    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
P3    1Protection Agency, is a science-based tool that identifies the
2California communities most burdened by pollution from multiple
3sources and most vulnerable to its effects.

4(2) Using CalEnviroScreen, the California Environmental
5Protection Agency has identified the top 25 percent highest-scoring
6census tracts in the state based on geographic, socioeconomic,
7public health, and environmental hazard criteria and has designated
8these most impacted regions of the state as disadvantaged

10(3) A significant number of the total identified top 25 percent
11highest-scoring census tracts of disadvantaged communities are
12located in the San Joaquin Valley, which is impacted by heavy
13freight traffic moving along the Interstate 5 and Highway 99
14corridors and along Interstate 710, which runs 18 miles from the
15Ports of Long Beach and Los Angeles to the Pomona Freeway
16(SR-60) in east Los Angeles and encompasses 15 cities and
17unincorporated areas in Los Angeles County adjacent to the
18freeway corridor.

19(4) Both regions consistently rate in the top 25 most polluted
20locations in the United States and frequently exceed by significant
21amounts the National Ambient Air Quality Standards for ozone
22and fine particulate matter.

23(5) Medium- and heavy-duty diesel vehicles operating on
24petroleum diesel fuel and traveling along these heavy freight
25corridors, which are located adjacent to or within many of the
26state’s most environmentally impacted disadvantaged communities,
27are a significant contributor to emissions from greenhouse gases
28and criteria pollutants.

29(6) However, the majority of diesel motor vehicles on the state’s
30roads today can immediately reduce their emissions of greenhouse
31gases, oxides of nitrogen, particulate matter, and other emissions
32of concern by using low-carbon alternative and renewable
33biomass-based diesel fuels, such as renewable hydrocarbon diesel
34andbegin delete low blends ofend delete biodiesel.

35(7) The state’s policymakers can facilitate immediate and
36tangible reductions of greenhouse gas emissions and criteria
37pollution and amplify near-term health cobenefits to the state’s
38most impacted and disadvantaged communities by funding the
39development and deployment of alternative and renewable fueling
P4    1infrastructure to facilitate greater access to these advanced
2low-carbon diesel fuels.

3(8) It is the intent of the Legislature to provide the state’s most
4impacted and disadvantaged communities with reasonable and
5cost-effective opportunities to proactively participate in the state’s
6greenhouse gas emissions reduction strategies, which can provide
7immediate benefits in air quality, public health, the environment,
8and the economy.


SEC. 2.  

Chapter 8.8 (commencing with Section 44269) is added
10to Part 5 of Division 26 of the Health and Safety Code, to read:


12Chapter  8.8. Advanced Low-Carbon Diesel Fuels Access




For purposes of this chapter, the following terms have
16the following meanings:

17(a) “Commission” means the State Energy Resources
18Conservation and Development Commission.

19(b) “Disproportionately impacted by environmental hazards”
20means public health or environmental effects from the emission
21or discharge of substances in a geographic area, including
22environmental pollution for all sources whether in a single medium
23or in multiple media, routinely, accidently, or otherwise released
24into the environment, taking into account sensitive populations
25and socioeconomic factors, where applicable and to the extent data
26is available.

27(c) “Low-carbon diesel fuel” means a biomass-based diesel fuel
28that is used in diesel engines and meetsbegin delete all of the following criteria:end delete
29begin insert the definition of low-carbon diesel fuel pursuant to the Low Carbon
30Fuel Standard regulation (Subarticle 7 (commencing with Section
3195480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3
32of Title 17 of the California Code of Regulations).end insert

begin delete

33(1) Meets the definition of low-carbon diesel fuel pursuant to
34the Low Carbon Fuel Standard regulation (Subarticle 7
35(commencing with Section 95480) of Article 4 of Subchapter 10
36of Chapter 1 of Division 3 of Title 17 of the California Code of

38(2) Contains a minimum of 21 percent biomass-based content.

39(3) Complies with the Commercialization of Alternative Diesel
40Fuels regulation (Subarticle 2 (commencing with Section 2293)
P5    1of Article 3 of Chapter 5 of Division 3 of Title 13 of the California
2Code of Regulations), once that regulation becomes final.

3(4) Has a recognized carbon intensity under the Low Carbon
4Fuel Standard regulation (Subarticle 7 (commencing with Section
595480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3
6of Title 17 of the California Code of Regulations) of at least 50
7percent lower than the petroleum diesel baseline carbon intensity

9(5) Does not produce higher levels of oxides of nitrogen or
10particulate matter than petroleum diesel fuel.

end delete

11(d) “Low-carbon diesel fueling infrastructure” means the
12equipment used to store and dispense low-carbon diesel fuel to
13motor vehicles according to industry codes and standards and that
14is open to the public. Types of eligible equipment include, but are
15not limited to, storage,begin insert loading rack components,end insert tanks, piping,
16fittings, fuel dispensers, signage, point-of-sale systems, and their
17associated construction.



(a) The Advanced Low-Carbon Diesel Fuels Access
19Program is hereby established. The commission, in consultation
20with the state board, shall administer the program for the purpose
21of reducing the greenhouse gas emissions of diesel motor vehicles
22by providing capital assistance for projects that expand advanced
23low-carbon diesel fueling infrastructure in communities that are
24disproportionately impacted by environmental hazards and where
25additionally the greatest air quality impacts can be identified.

26(b) Moneys shall be available, upon appropriation by the
27Legislature, from the Greenhouse Gas Reduction Fund, created
28pursuant to Section 16428.8 of the Government Code, for the
29purposes of carrying out this chapter.



On or before March 1, 2016, the commission shall
31do both of the following:

32(a) Develop guidelines for the implementation of this chapter.
33The guidelines shall ensure that the program is focused on
34begin delete communitiesend deletebegin insert both of the following:end insert

35begin insert(1)end insertbegin insertend insertbegin insertCommunitiesend insert that are disproportionately impacted by
36environmental hazards and where the greatest vehicular air
37pollution impact is identified.

begin insert

38(2) Low-carbon diesel fuels that have approved fuel pathways
39under the Low Carbon Fuel Standard regulations (Subarticle 7
40(commencing with Section 95480) of Article 4 of Subchapter 10
P6    1of Chapter 1 of Division 3 of Title 17 of the California Code of

end insert

3(b) Select, in consultation with the California Environmental
4Protection Agency, the disadvantaged communities identified
5pursuant to Section 39711.



(a) In evaluating projects to be allocated moneys
7pursuant to this chapter, the commission shall give priority to a
8project with all of the following characteristics:

9(1) Occurs in or near communities identified pursuant to Section

11(2) Demonstrates the potential for cobenefits or multibenefit
12attributes, including reducing significant emissions of criteria
13pollutants or toxic air contaminants.

14(3) Quantifies and measures cost-effectiveness and impacts on
15disadvantaged and low-income populations.

16(4) Demonstrates the ability to leverage additional public or
17private funding.

18(5) Demonstrates the ability to obtain immediate benefits.

19(6) Includes marketing and education outreach strategies
20designed to increase the effectiveness of the program’s goals.

21(b) A project required to be undertaken pursuant to state, federal,
22or local laws shall not be allocated moneys pursuant to this chapter.


SEC. 3.  

Section 44272 of the Health and Safety Code is
24amended to read:



(a) The Alternative and Renewable Fuel and Vehicle
26Technology Program is hereby created. The program shall be
27administered by the commission. The commission shall implement
28the program by regulation pursuant to the requirements of Chapter
293.5 (commencing with Section 11340) of Part 1 of Division 3 of
30Title 2 of the Government Code. The program shall provide, upon
31appropriation by the Legislature, competitive grants, revolving
32loans, loan guarantees, loans, or other appropriate funding
33measures, to public agencies, vehicle and technology entities,
34businesses and projects, public-private partnerships, workforce
35training partnerships and collaboratives, fleet owners, consumers,
36recreational boaters, and academic institutions to develop and
37deploy innovative technologies that transform California’s fuel
38and vehicle types to help attain the state’s climate change policies.
39The emphasis of this program shall be to develop and deploy
P7    1technology and alternative and renewable fuels in the marketplace,
2without adopting any one preferred fuel or technology.

3(b) A project that receives more than seventy-five thousand
4dollars ($75,000) in funds from the commission shall be approved
5at a noticed public meeting of the commission and shall be
6consistent with the priorities established by the investment plan
7adopted pursuant to Section 44272.5. Under this article, the
8commission may delegate to the commission’s executive director,
9or his or her designee, the authority to approve either of the

11(1) A contract, grant, loan, or other agreement or award that
12receives seventy-five thousand dollars ($75,000) or less in funds
13from the commission.

14(2) Amendments to a contract, grant, loan, or other agreement
15or award as long as the amendments do not increase the amount
16of the award, change the scope of the project, or modify the purpose
17of the agreement.

18(c) The commission shall provide preferences to those projects
19that maximize the goals of the Alternative and Renewable Fuel
20and Vehicle Technology Program, based on the following criteria,
21as applicable:

22(1) The project’s ability to provide a measurable transition from
23the nearly exclusive use of petroleum fuels to a diverse portfolio
24of viable alternative fuels that meet petroleum reduction and
25alternative fuel use goals.

26(2) The project’s consistency with existing and future state
27climate change policy and low-carbon fuel standards.

28(3) The project’s ability to reduce criteria air pollutants and air
29toxics and reduce or avoid multimedia environmental impacts.

30(4) The project’s ability to decrease, on a life-cycle basis, the
31discharge of water pollutants or any other substances known to
32damage human health or the environment, in comparison to the
33production and use of California Phase 2 Reformulated Gasoline
34or diesel fuel produced and sold pursuant to California diesel fuel
35regulations set forth in Article 2 (commencing with Section 2280)
36of Chapter 5 of Division 3 of Title 13 of the California Code of
37 Regulations.

38(5) The project does not adversely impact the sustainability of
39the state’s natural resources, especially state and federal lands.

P8    1(6) The project provides nonstate matching funds. Costs incurred
2from the date a proposed award is noticed may be counted as
3nonstate matching funds. The commission may adopt further
4requirements for the purposes of this paragraph. The commission
5is not liable for costs incurred pursuant to this paragraph if the
6commission does not give final approval for the project or the
7proposed recipient does not meet requirements adopted by the
8commission pursuant to this paragraph.

9(7) The project provides economic benefits for California by
10promoting California-based technology firms, jobs, and businesses.

11(8) The project uses existing or proposed fueling infrastructure
12to maximize the outcome of the project.

13(9) The project’s ability to reduce on a life-cycle assessment
14greenhouse gas emissions by at least 10 percent, and higher
15percentages in the future, from current reformulated gasoline and
16diesel fuel standards established by the state board.

17(10) The project’s use of alternative fuel blends of at least 20
18percent, and higher blend ratios in the future, with a preference
19for projects with higher blends.

20(11) The project drives new technology advancement for
21vehicles, vessels, engines, and other equipment, and promotes the
22deployment of that technology in the marketplace.

23(d) The commission shall rank applications for projects proposed
24for funding awards based on solicitation criteria developed in
25accordance with subdivision (c), and shall give additional
26preference to funding those projects with higher benefit-cost scores.

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

28(1) Alternative and renewable fuel projects to develop and
29improve alternative and renewable low-carbon fuels, including
30electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
31hydrogen, and biomethane, among others, and their feedstocks
32that have high potential for long-term or short-term
33commercialization, including projects that lead to sustainable

35(2) Demonstration and deployment projects that optimize
36alternative and renewable fuels for existing and developing engine

38(3) Projects to produce alternative and renewable low-carbon
39fuels in California.

P9    1(4) Projects to decrease the overall impact of an alternative and
2renewable fuel’s life-cycle carbon footprint and increase

4(5) Alternative and renewable fuel infrastructure, fueling
5stations, and equipment. The preference in paragraph (10) of
6subdivision (c) shall not apply to renewable diesel or biodiesel
7infrastructure, fueling stations, and equipment used solely for
8renewable diesel or biodiesel fuel.

9(6) Projects to develop and improve light-, medium-, and
10heavy-duty vehicle technologies that provide for better fuel
11efficiency and lower greenhouse gas emissions, alternative fuel
12usage and storage, or emission reductions, including propulsion
13systems, advanced internal combustion engines with a 40 percent
14or better efficiency level over the current market standard,
15lightweight materials, intelligent transportation systems, energy
16storage, control systems and system integration, physical
17measurement and metering systems and software, development of
18design standards and testing and certification protocols, battery
19recycling and reuse, engine and fuel optimization electronic and
20electrified components, hybrid technology, plug-in hybrid
21technology, battery electric vehicle technology, fuel cell
22technology, and conversions of hybrid technology to plug-in
23technology through the installation of safety certified supplemental
24battery modules.

25(7) Programs and projects that accelerate the commercialization
26of vehicles and alternative and renewable fuels including buy-down
27programs through near-market and market-path deployments,
28advanced technology warranty or replacement insurance,
29development of market niches, supply-chain development, and
30research related to the pedestrian safety impacts of vehicle
31technologies and alternative and renewable fuels.

32(8) Programs and projects to retrofit medium- and heavy-duty
33onroad and nonroad vehicle fleets with technologies that create
34higher fuel efficiencies, including alternative and renewable fuel
35vehicles and technologies, idle management technology, and
36aerodynamic retrofits that decrease fuel consumption.

37(9) Infrastructure projects that promote alternative and renewable
38fuel infrastructure development connected with existing fleets,
39public transit, and existing transportation corridors, including
P10   1physical measurement or metering equipment and truck stop

3(10) Workforce training programs related to alternative and
4renewable fuel feedstock production and extraction, renewable
5fuel production, distribution, transport, and storage,
6high-performance and low-emission vehicle technology and high
7tower electronics, automotive computer systems, mass transit fleet
8conversion, servicing, and maintenance, and other sectors or
9occupations related to the purposes of this chapter.

10(11) Block grants or incentive programs administered by public
11entities or not-for-profit technology entities for multiple projects,
12education and program promotion within California, and
13development of alternative and renewable fuel and vehicle
14technology centers. The commission may adopt guidelines for
15implementing the block grant or incentive program, which shall
16be approved at a noticed public meeting of the commission.

17(12) Life cycle and multimedia analyses, sustainability and
18environmental impact evaluations, and market, financial, and
19technology assessments performed by a state agency to determine
20the impacts of increasing the use of low-carbon transportation fuels
21and technologies, and to assist in the preparation of the investment
22plan and program implementation.

23(13) A program to provide funding for homeowners who
24purchase a plug-in electric vehicle to offset costs associated with
25modifying electrical sources to include a residential plug-in electric
26vehicle charging station. In establishing this program, the
27commission shall consider funding criteria to maximize the public
28benefit of the program.

29(f) The commission may make a single source or sole source
30award pursuant to this section for applied research. The same
31requirements set forth in Section 25620.5 of the Public Resources
32Code shall apply to awards made on a single source basis or a sole
33source basis. This subdivision does not authorize the commission
34to make a single source or sole source award for a project or
35activity other than for applied research.

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

37(1) Contract with the Treasurer to expend funds through
38programs implemented by the Treasurer, if the expenditure is
39consistent with all of the requirements of this article and Article
401 (commencing with Section 44270).

P11   1(2) Contract with small business financial development
2corporations established by the Governor’s Office of Business and
3Economic Development to expend funds through the Small
4Business Loan Guarantee Program if the expenditure is consistent
5with all of the requirements of this article and Article 1
6(commencing with Section 44270).

7(3) Advance funds, pursuant to an agreement with the
8commission, to any of the following:

9(A) A public entity.

10(B) A recipient to enable it to make advance payments to a
11public entity that is a subrecipient of the funds and under a binding
12and enforceable subagreement with the recipient.

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

14(4) Amend a contract, grant, loan, or other agreement or award
15to extend the terms of that contract, grant, loan, or other agreement
16or award by two years if the moneys are reprioritized by the
17commission to apply toward a project thatbegin delete complies with Section
1844271.3.end delete
begin insert benefits communities identified pursuant to Section 39711.end insert


SEC. 4.  

This act is an urgency statute necessary for the
20immediate preservation of the public peace, health, or safety within
21the meaning of Article IV of the Constitution and shall go into
22immediate effect. The facts constituting the necessity are:

23To ensure stable funding for programs to reduce vehicular air
24pollution for the protection of the public health and safety, it is
25necessary for this act to take effect immediately.