Amended in Senate August 18, 2015

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 Technologybegin delete Program,end deletebegin insert Programend insert 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
P3    1developed by the Office of Environmental Health Hazard
2Assessment at the request of the California Environmental
3Protection Agency, is a science-based tool that identifies the
4California communities most burdened by pollution from multiple
5sources and most vulnerable to its effects.

6(2) Using CalEnviroScreen, the California Environmental
7Protection Agency has identified the top 25 percent highest-scoring
8census tracts in the state based on geographic, socioeconomic,
9public health, and environmental hazard criteria and has designated
10these most impacted regions of the state as disadvantaged

12(3) A significant number of the total identified top 25 percent
13highest-scoring census tracts of disadvantaged communities are
14located in the San Joaquin Valley, which is impacted by heavy
15freight traffic moving along the Interstate 5 and Highway 99
16corridors and along Interstate 710, which runs 18 miles from the
17Ports of Long Beach and Los Angeles to the Pomona Freeway
18(SR-60) in east Los Angeles and encompasses 15 cities and
19unincorporated areas in Los Angeles County adjacent to the
20freeway corridor.

21(4) Both regions consistently rate in the top 25 most polluted
22locations in the United States and frequently exceed by significant
23amounts the National Ambient Air Quality Standards for ozone
24and fine particulate matter.

25(5) Medium- and heavy-duty diesel vehicles operating on
26petroleum diesel fuel and traveling along these heavy freight
27corridors, which are located adjacent to or within many of the
28state’s most environmentally impacted disadvantaged communities,
29are a significant contributor to emissions from greenhouse gases
30and criteria pollutants.

31(6) However, the majority of diesel motor vehicles on the state’s
32roads today can immediately reduce their emissions of greenhouse
33gases, oxides of nitrogen, particulate matter, and other emissions
34of concern by using low-carbon alternative and renewable
35biomass-based diesel fuels, such as renewable hydrocarbon diesel
36and biodiesel.

37(7) The state’s policymakers can facilitate immediate and
38tangible reductions of greenhouse gas emissions and criteria
39pollution and amplify near-term health cobenefits to the state’s
40most impacted and disadvantaged communities by funding the
P4    1development and deployment of alternative and renewable fueling
2infrastructure to facilitate greater access to these advanced
3low-carbon diesel fuels.

4(8) It is the intent of the Legislature to provide the state’s most
5impacted and disadvantaged communities with reasonable and
6cost-effective opportunities to proactively participate in the state’s
7greenhouse gas emissions reduction strategies, which can provide
8immediate benefits in air quality, public health, the environment,
9and the economy.


SEC. 2.  

Chapter 8.8 (commencing with Section 44269) is added
11to Part 5 of Division 26 of the Health and Safety Code, to read:


13Chapter  8.8. Advanced Low-Carbon Diesel Fuels Access




For purposes of this chapter, the following terms have
17the following meanings:

18(a) “Commission” means the State Energy Resources
19Conservation and Development Commission.

20(b) “Disproportionately impacted by environmental hazards”
21means public health or environmental effects from the emission
22or discharge of substances in a geographic area, including
23environmental pollution for all sources whether in a single medium
24or in multiple media, routinely, accidently, or otherwise released
25into the environment, taking into account sensitive populations
26and socioeconomic factors, where applicable and to the extent data
27is available.

begin delete

28(c) “Low-carbon diesel fuel” means a biomass-based diesel fuel
29that is used in diesel engines and meets the definition of low-carbon
30diesel fuel pursuant to the Low Carbon Fuel Standard regulation
31(Subarticle 7 (commencing with Section 95480) of Article 4 of
32Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
33California Code of Regulations).

end delete
begin insert

34(c) “Low-carbon diesel fuel” means a biomass-based diesel
35fuel that is used in diesel engines and meets both of the following

end insert
begin insert

37(1) Has a recognized carbon intensity pursuant to the Low
38Carbon Fuel Standard regulation (Subarticle 7 (commencing with
39Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of
40Division 3 of Title 17 of the California Code of Regulations) of at
P5    1least 50 percent lower than the petroleum diesel baseline carbon
2intensity value.

end insert
begin insert

3(2) Does not produce higher levels of oxides of nitrogen or
4particulate matter than petroleum diesel fuel.

end insert

5(d) “Low-carbon diesel fueling infrastructure” means the
6equipment used to store and dispense low-carbon diesel fuel to
7motor vehicles according to industry codes and standards and that
8is open to the public. Types of eligible equipment include, but are
9not limited to, storage, loading rack components, tanks, piping,
10fittings, fuel dispensers, signage, point-of-sale systems, and their
11associated construction.



(a) The Advanced Low-Carbon Diesel Fuels Access
13Program is hereby established. The commission, in consultation
14with the state board, shall administer the program for the purpose
15of reducing the greenhouse gas emissions of diesel motor vehicles
16by providing capital assistance for projects that expand advanced
17low-carbon diesel fueling infrastructure in communities that are
18disproportionately impacted by environmental hazards and where
19additionally the greatest air quality impacts can be identified.

20(b) Moneys shall be available, upon appropriation by the
21Legislature, from the Greenhouse Gas Reduction Fund, created
22pursuant to Section 16428.8 of the Government Code, for the
23purposes of carrying out this chapter.



On or before March 1, 2016, the commission shall
25do both of the following:

26(a) Develop guidelines for the implementation of this chapter.
27The guidelines shall ensure that the program is focused on both of
28the following:

29(1) Communities that are disproportionately impacted by
30environmental hazards and where the greatest vehicular air
31pollution impact is identified.

32(2) Low-carbon diesel fuels that have approved fuel pathways
33begin delete underend deletebegin insert pursuant toend insert the Low Carbon Fuel Standardbegin delete regulationsend delete
34begin insert regulationend insert (Subarticle 7 (commencing with Section 95480) of
35Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17
36of the California Code of Regulations).

37(b) Select, in consultation with the California Environmental
38Protection Agency, the disadvantaged communities identified
39pursuant to Section 39711.

P6    1


(a) In evaluating projects to be allocated moneys
2pursuant to this chapter, the commission shall give priority to a
3project with all of the following characteristics:

4(1) Occurs in or near communities identified pursuant to Section

6(2) Demonstrates the potential for cobenefits or multibenefit
7attributes, including reducing significant emissions of criteria
8pollutants or toxic air contaminants.

9(3) Quantifies and measures cost-effectiveness and impacts on
10disadvantaged and low-income populations.

11(4) Demonstrates the ability to leverage additional public or
12private funding.

13(5) Demonstrates the ability to obtain immediate benefits.

14(6) Includes marketing and education outreach strategies
15designed to increase the effectiveness of the program’s goals.

16(b) A project required to be undertaken pursuant to state, federal,
17or local laws shall not be allocated moneys pursuant to this chapter.


SEC. 3.  

Section 44272 of the Health and Safety Code is
19amended to read:



(a) The Alternative and Renewable Fuel and Vehicle
21Technology Program is hereby created. The program shall be
22administered by the commission. The commission shall implement
23the program by regulation pursuant to the requirements of Chapter
243.5 (commencing with Section 11340) of Part 1 of Division 3 of
25Title 2 of the Government Code. The program shall provide, upon
26appropriation by the Legislature, competitive grants, revolving
27loans, loan guarantees, loans, or other appropriate funding
28measures, to public agencies, vehicle and technology entities,
29businesses and projects, public-private partnerships, workforce
30training partnerships and collaboratives, fleet owners, consumers,
31recreational boaters, and academic institutions to develop and
32deploy innovative technologies that transform California’s fuel
33and vehicle types to help attain the state’s climate change policies.
34The emphasis of this program shall be to develop and deploy
35technology and alternative and renewable fuels in the marketplace,
36without adopting any one preferred fuel or technology.

37(b) A project that receives more than seventy-five thousand
38dollars ($75,000) in funds from the commission shall be approved
39at a noticed public meeting of the commission and shall be
40consistent with the priorities established by the investment plan
P7    1adopted pursuant to Section 44272.5. Under this article, the
2commission may delegate to the commission’s executive director,
3or his or her designee, the authority to approve either of the

5(1) A contract, grant, loan, or other agreement or award that
6receives seventy-five thousand dollars ($75,000) or less in funds
7from the commission.

8(2) Amendments to a contract, grant, loan, or other agreement
9or award as long as the amendments do not increase the amount
10of the award, change the scope of the project, or modify the purpose
11of the agreement.

12(c) The commission shall provide preferences to those projects
13that maximize the goals of the Alternative and Renewable Fuel
14and Vehicle Technology Program, based on the following criteria,
15as applicable:

16(1) The project’s ability to provide a measurable transition from
17the nearly exclusive use of petroleum fuels to a diverse portfolio
18of viable alternative fuels that meet petroleum reduction and
19alternative fuel use goals.

20(2) The project’s consistency with existing and future state
21climate change policy and low-carbon fuel standards.

22(3) The project’s ability to reduce criteria air pollutants and air
23toxics and reduce or avoid multimedia environmental impacts.

24(4) The project’s ability to decrease, on a life-cycle basis, the
25discharge of water pollutants or any other substances known to
26damage human health or the environment, in comparison to the
27production and use of California Phase 2 Reformulated Gasoline
28or diesel fuel produced and sold pursuant to California diesel fuel
29regulations set forth in Article 2 (commencing with Section 2280)
30of Chapter 5 of Division 3 of Title 13 of the California Code of
31 Regulations.

32(5) The project does not adversely impact the sustainability of
33the state’s natural resources, especially state and federal lands.

34(6) The project provides nonstate matching funds. Costs incurred
35from the date a proposed award is noticed may be counted as
36nonstate matching funds. The commission may adopt further
37requirements for the purposes of this paragraph. The commission
38is not liable for costs incurred pursuant to this paragraph if the
39commission does not give final approval for the project or the
P8    1proposed recipient does not meet requirements adopted by the
2commission pursuant to this paragraph.

3(7) The project provides economic benefits for California by
4promoting California-based technology firms, jobs, and businesses.

5(8) The project uses existing or proposed fueling infrastructure
6to maximize the outcome of the project.

7(9) The project’s ability to reduce on a life-cycle assessment
8greenhouse gas emissions by at least 10 percent, and higher
9percentages in the future, from current reformulated gasoline and
10diesel fuel standards established by the state board.

11(10) The project’s use of alternative fuel blends of at least 20
12percent, and higher blend ratios in the future, with a preference
13for projects with higher blends.

14(11) The project drives new technology advancement for
15vehicles, vessels, engines, and other equipment, and promotes the
16deployment of that technology in the marketplace.

17(d) The commission shall rank applications for projects proposed
18for funding awards based on solicitation criteria developed in
19accordance with subdivision (c), and shall give additional
20preference to funding those projects with higher benefit-cost scores.

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

22(1) Alternative and renewable fuel projects to develop and
23improve alternative and renewable low-carbon fuels, including
24electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
25hydrogen, and biomethane, among others, and their feedstocks
26that have high potential for long-term or short-term
27commercialization, including projects that lead to sustainable

29(2) Demonstration and deployment projects that optimize
30alternative and renewable fuels for existing and developing engine

32(3) Projects to produce alternative and renewable low-carbon
33fuels in California.

34(4) Projects to decrease the overall impact of an alternative and
35renewable fuel’s life-cycle carbon footprint and increase

37(5) Alternative and renewable fuel infrastructure, fueling
38stations, and equipment. The preference in paragraph (10) of
39subdivision (c) shall not apply to renewable diesel or biodiesel
P9    1infrastructure, fueling stations, and equipment used solely for
2renewable diesel or biodiesel fuel.

3(6) Projects to develop and improve light-, medium-, and
4heavy-duty vehicle technologies that provide for better fuel
5efficiency and lower greenhouse gas emissions, alternative fuel
6usage and storage, or emission reductions, including propulsion
7systems, advanced internal combustion engines with a 40 percent
8or better efficiency level over the current market standard,
9lightweight materials, intelligent transportation systems, energy
10storage, control systems and system integration, physical
11measurement and metering systems and software, development of
12design standards and testing and certification protocols, battery
13recycling and reuse, engine and fuel optimization electronic and
14electrified components, hybrid technology, plug-in hybrid
15technology, battery electric vehicle technology, fuel cell
16technology, and conversions of hybrid technology to plug-in
17technology through the installation of safety certified supplemental
18battery modules.

19(7) Programs and projects that accelerate the commercialization
20of vehicles and alternative and renewable fuels including buy-down
21programs through near-market and market-path deployments,
22advanced technology warranty or replacement insurance,
23development of market niches, supply-chain development, and
24research related to the pedestrian safety impacts of vehicle
25technologies and alternative and renewable fuels.

26(8) Programs and projects to retrofit medium- and heavy-duty
27onroad and nonroad vehicle fleets with technologies that create
28higher fuel efficiencies, including alternative and renewable fuel
29vehicles and technologies, idle management technology, and
30aerodynamic retrofits that decrease fuel consumption.

31(9) Infrastructure projects that promote alternative and renewable
32fuel infrastructure development connected with existing fleets,
33public transit, and existing transportation corridors, including
34physical measurement or metering equipment and truck stop

36(10) Workforce training programs related to alternative and
37renewable fuel feedstock production and extraction, renewable
38fuel production, distribution, transport, and storage,
39high-performance and low-emission vehicle technology and high
40tower electronics, automotive computer systems, mass transit fleet
P10   1conversion, servicing, and maintenance, and other sectors or
2occupations related to the purposes of this chapter.

3(11) Block grants or incentive programs administered by public
4entities or not-for-profit technology entities for multiple projects,
5education and program promotion within California, and
6development of alternative and renewable fuel and vehicle
7technology centers. The commission may adopt guidelines for
8implementing the block grant or incentive program, which shall
9be approved at a noticed public meeting of the commission.

10(12) Life cycle and multimedia analyses, sustainability and
11environmental impact evaluations, and market, financial, and
12technology assessments performed by a state agency to determine
13the impacts of increasing the use of low-carbon transportation fuels
14and technologies, and to assist in the preparation of the investment
15plan and program implementation.

16(13) A program to provide funding for homeowners who
17purchase a plug-in electric vehicle to offset costs associated with
18modifying electrical sources to include a residential plug-in electric
19vehicle charging station. In establishing this program, the
20commission shall consider funding criteria to maximize the public
21benefit of the program.

22(f) The commission may make a single source or sole source
23award pursuant to this section for applied research. The same
24requirements set forth in Section 25620.5 of the Public Resources
25Code shall apply to awards made on a single source basis or a sole
26source basis. This subdivision does not authorize the commission
27to make a single source or sole source award for a project or
28activity other than for applied research.

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

30(1) Contract with the Treasurer to expend funds through
31programs implemented by the Treasurer, if the expenditure is
32consistent with all of the requirements of this article and Article
331 (commencing with Section 44270).

34(2) Contract with small business financial development
35corporations established by the Governor’s Office of Business and
36Economic Development to expend funds through the Small
37Business Loan Guarantee Program if the expenditure is consistent
38with all of the requirements of this article and Article 1
39(commencing with Section 44270).

P11   1(3) Advance funds, pursuant to an agreement with the
2commission, to any of the following:

3(A) A public entity.

4(B) A recipient to enable it to make advance payments to a
5public entity that is a subrecipient of the funds and under a binding
6and enforceable subagreement with the recipient.

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

8(4) Amend a contract, grant, loan, or other agreement or award
9to extend the terms of that contract, grant, loan, or other agreement
10or award by two years if the moneys are reprioritized by the
11commission to apply toward a project that benefits communities
12identified pursuant to Section 39711.


SEC. 4.  

This act is an urgency statute necessary for the
14immediate preservation of the public peace, health, or safety within
15the meaning of Article IV of the Constitution and shall go into
16immediate effect. The facts constituting the necessity are:

17To ensure stable funding for programs to reduce vehicular air
18pollution for the protection of the public health and safety, it is
19necessary for this act to take effect immediately.