BILL NUMBER: AB 1176 AMENDED BILL TEXT 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 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. 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 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,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: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) It is the intent of the Legislature that the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5 of Division 26 of the Health and Safety Code) continue the state's implementation of Assembly Bill 118 (Chapter 750 of the Statutes of 2007) by directing resources to the state's most impacted and disadvantaged communities to ensure activities taken pursuant to that authority will provide economic and health benefits to these communities as well. (b) The Legislature further finds and declares all of the following: (1) The California Communities Environmental Health Screening Tool, also known as CalEnviroScreen, which was developed by the Office of Environmental Health Hazard Assessment at the request of the California Environmental Protection Agency, is a science-based tool that identifies the California communities most burdened by pollution from multiple sources and most vulnerable to its effects. (2) Using CalEnviroScreen, the California Environmental Protection Agency has identified the top 25 percent highest-scoring census tracts in the state based on geographic, socioeconomic, public health, and environmental hazard criteria and has designated these most impacted regions of the state as disadvantaged communities. (3) A significant number of the total identified top 25 percent highest-scoring census tracts of disadvantaged communities are located in the San Joaquin Valley, which is impacted by heavy freight traffic moving along the Interstate 5 and Highway 99 corridors and along Interstate 710, which runs 18 miles from the Ports of Long Beach and Los Angeles to the Pomona Freeway (SR-60) in east Los Angeles and encompasses 15 cities and unincorporated areas in Los Angeles County adjacent to the freeway corridor. (4) Both regions consistently rate in the top 25 most polluted locations in the United States and frequently exceed by significant amounts the National Ambient Air Quality Standards for ozone and fine particulate matter. (5) Medium- and heavy-duty diesel vehicles operating on petroleum diesel fuel and traveling along these heavy freight corridors, which are located adjacent to or within many of the state's most environmentally impacted disadvantaged communities, are a significant contributor to emissions from greenhouse gases and criteria pollutants. (6) However, the majority of diesel motor vehicles on the state's roads today can immediately reduce their emissions of greenhouse gases, oxides of nitrogen, particulate matter, and other emissions of concern by using low-carbon alternative and renewable biomass-based diesel fuels, such as renewable hydrocarbon diesel and biodiesel. (7) The state's policymakers can facilitate immediate and tangible reductions of greenhouse gas emissions and criteria pollution and amplify near-term health cobenefits to the state's most impacted and disadvantaged communities by funding the development and deployment of alternative and renewable fueling infrastructure to facilitate greater access to these advanced low-carbon diesel fuels. (8) It is the intent of the Legislature to provide the state's most impacted and disadvantaged communities with reasonable and cost-effective opportunities to proactively participate in the state' s greenhouse gas emissions reduction strategies, which can provide immediate benefits in air quality, public health, the environment, and the economy. SEC. 2. Chapter 8.8 (commencing with Section 44269) is added to Part 5 of Division 26 of the Health and Safety Code, to read: CHAPTER 8.8. ADVANCED LOW-CARBON DIESEL FUELS ACCESS PROGRAM 44269. For purposes of this chapter, the following terms have the following meanings: (a) "Commission" means the State Energy Resources Conservation and Development Commission. (b) "Disproportionately impacted by environmental hazards" means public health or environmental effects from the emission or discharge of substances in a geographic area, including environmental pollution for all sources whether in a single medium or in multiple media, routinely, accidently, or otherwise released into the environment, taking into account sensitive populations and socioeconomic factors, where applicable and to the extent data is available. (c) "Low-carbon diesel fuel" means a biomass-based diesel fuel that is used in diesel engines and meets the definition of low-carbon diesel fuel pursuant to the Low Carbon Fuel Standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations).(c) "Low-carbon diesel fuel" means a biomass-based diesel fuel that is used in diesel engines and meets both of the following requirements: (1) Has a recognized carbon intensity pursuant to the Low Carbon Fuel Standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations) of at least 50 percent lower than the petroleum diesel baseline carbon intensity value. (2) Does not produce higher levels of oxides of nitrogen or particulate matter than petroleum diesel fuel. (d) "Low-carbon diesel fueling infrastructure" means the equipment used to store and dispense low-carbon diesel fuel to motor vehicles according to industry codes and standards and that is open to the public. Types of eligible equipment include, but are not limited to, storage, loading rack components, tanks, piping, fittings, fuel dispensers, signage, point-of-sale systems, and their associated construction. 44269.2. (a) The Advanced Low-Carbon Diesel Fuels Access Program is hereby established. The commission, in consultation with the state board, shall administer the program 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 where additionally the greatest air quality impacts can be identified. (b) Moneys shall be available, upon appropriation by the Legislature, from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, for the purposes of carrying out this chapter. 44269.4. On or before March 1, 2016, the commission shall do both of the following: (a) Develop guidelines for the implementation of this chapter. The guidelines shall ensure that the program is focused on both of the following: (1) Communities that are disproportionately impacted by environmental hazards and where the greatest vehicular air pollution impact is identified. (2) Low-carbon diesel fuels that have approved fuel pathways underpursuant to the Low Carbon Fuel Standard regulationsregulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations). (b) Select, in consultation with the California Environmental Protection Agency, the disadvantaged communities identified pursuant to Section 39711. 44269.6. (a) In evaluating projects to be allocated moneys pursuant to this chapter, the commission shall give priority to a project with all of the following characteristics: (1) Occurs in or near communities identified pursuant to Section 39711. (2) Demonstrates the potential for cobenefits or multibenefit attributes, including reducing significant emissions of criteria pollutants or toxic air contaminants. (3) Quantifies and measures cost-effectiveness and impacts on disadvantaged and low-income populations. (4) Demonstrates the ability to leverage additional public or private funding. (5) Demonstrates the ability to obtain immediate benefits. (6) Includes marketing and education outreach strategies designed to increase the effectiveness of the program's goals. (b) A project required to be undertaken pursuant to state, federal, or local laws shall not be allocated moneys pursuant to this chapter. SEC. 3. Section 44272 of the Health and Safety Code is amended to read: 44272. (a) The Alternative and Renewable Fuel and Vehicle Technology Program is hereby created. The program shall be administered by the commission. The commission shall implement the program by regulation pursuant to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The program shall provide, upon appropriation by the Legislature, competitive grants, revolving loans, loan guarantees, loans, or other appropriate funding measures, to public agencies, vehicle and technology entities, businesses and projects, public-private partnerships, workforce training partnerships and collaboratives, fleet owners, consumers, recreational boaters, and academic institutions to develop and deploy innovative technologies that transform California's fuel and vehicle types to help attain the state's climate change policies. The emphasis of this program shall be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology. (b) A project that receives more than seventy-five thousand dollars ($75,000) in funds from the commission shall be approved at a noticed public meeting of the commission and shall be consistent with the priorities established by the investment plan adopted pursuant to Section 44272.5. Under this article, the commission may delegate to the commission's executive director, or his or her designee, the authority to approve either of the following: (1) A contract, grant, loan, or other agreement or award that receives seventy-five thousand dollars ($75,000) or less in funds from the commission. (2) Amendments to a contract, grant, loan, or other agreement or award as long as the amendments do not increase the amount of the award, change the scope of the project, or modify the purpose of the agreement. (c) The commission shall provide preferences to those projects that maximize the goals of the Alternative and Renewable Fuel and Vehicle Technology Program, based on the following criteria, as applicable: (1) The project's ability to provide a measurable transition from the nearly exclusive use of petroleum fuels to a diverse portfolio of viable alternative fuels that meet petroleum reduction and alternative fuel use goals. (2) The project's consistency with existing and future state climate change policy and low-carbon fuel standards. (3) The project's ability to reduce criteria air pollutants and air toxics and reduce or avoid multimedia environmental impacts. (4) The project's ability to decrease, on a life-cycle basis, the discharge of water pollutants or any other substances known to damage human health or the environment, in comparison to the production and use of California Phase 2 Reformulated Gasoline or diesel fuel produced and sold pursuant to California diesel fuel regulations set forth in Article 2 (commencing with Section 2280) of Chapter 5 of Division 3 of Title 13 of the California Code of Regulations. (5) The project does not adversely impact the sustainability of the state's natural resources, especially state and federal lands. (6) The project provides nonstate matching funds. Costs incurred from the date a proposed award is noticed may be counted as nonstate matching funds. The commission may adopt further requirements for the purposes of this paragraph. The commission is not liable for costs incurred pursuant to this paragraph if the commission does not give final approval for the project or the proposed recipient does not meet requirements adopted by the commission pursuant to this paragraph. (7) The project provides economic benefits for California by promoting California-based technology firms, jobs, and businesses. (8) The project uses existing or proposed fueling infrastructure to maximize the outcome of the project. (9) The project's ability to reduce on a life-cycle assessment greenhouse gas emissions by at least 10 percent, and higher percentages in the future, from current reformulated gasoline and diesel fuel standards established by the state board. (10) The project's use of alternative fuel blends of at least 20 percent, and higher blend ratios in the future, with a preference for projects with higher blends. (11) The project drives new technology advancement for vehicles, vessels, engines, and other equipment, and promotes the deployment of that technology in the marketplace. (d) The commission shall rank applications for projects proposed for funding awards based on solicitation criteria developed in accordance with subdivision (c), and shall give additional preference to funding those projects with higher benefit-cost scores. (e) Only the following shall be eligible for funding: (1) Alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels, including electricity, ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and biomethane, among others, and their feedstocks that have high potential for long-term or short-term commercialization, including projects that lead to sustainable feedstocks. (2) Demonstration and deployment projects that optimize alternative and renewable fuels for existing and developing engine technologies. (3) Projects to produce alternative and renewable low-carbon fuels in California. (4) Projects to decrease the overall impact of an alternative and renewable fuel's life-cycle carbon footprint and increase sustainability. (5) Alternative and renewable fuel infrastructure, fueling stations, and equipment. The preference in paragraph (10) of subdivision (c) shall not apply to renewable diesel or biodiesel infrastructure, fueling stations, and equipment used solely for renewable diesel or biodiesel fuel. (6) Projects to develop and improve light-, medium-, and heavy-duty vehicle technologies that provide for better fuel efficiency and lower greenhouse gas emissions, alternative fuel usage and storage, or emission reductions, including propulsion systems, advanced internal combustion engines with a 40 percent or better efficiency level over the current market standard, lightweight materials, intelligent transportation systems, energy storage, control systems and system integration, physical measurement and metering systems and software, development of design standards and testing and certification protocols, battery recycling and reuse, engine and fuel optimization electronic and electrified components, hybrid technology, plug-in hybrid technology, battery electric vehicle technology, fuel cell technology, and conversions of hybrid technology to plug-in technology through the installation of safety certified supplemental battery modules. (7) Programs and projects that accelerate the commercialization of vehicles and alternative and renewable fuels including buy-down programs through near-market and market-path deployments, advanced technology warranty or replacement insurance, development of market niches, supply-chain development, and research related to the pedestrian safety impacts of vehicle technologies and alternative and renewable fuels. (8) Programs and projects to retrofit medium- and heavy-duty onroad and nonroad vehicle fleets with technologies that create higher fuel efficiencies, including alternative and renewable fuel vehicles and technologies, idle management technology, and aerodynamic retrofits that decrease fuel consumption. (9) Infrastructure projects that promote alternative and renewable fuel infrastructure development connected with existing fleets, public transit, and existing transportation corridors, including physical measurement or metering equipment and truck stop electrification. (10) Workforce training programs related to alternative and renewable fuel feedstock production and extraction, renewable fuel production, distribution, transport, and storage, high-performance and low-emission vehicle technology and high tower electronics, automotive computer systems, mass transit fleet conversion, servicing, and maintenance, and other sectors or occupations related to the purposes of this chapter. (11) Block grants or incentive programs administered by public entities or not-for-profit technology entities for multiple projects, education and program promotion within California, and development of alternative and renewable fuel and vehicle technology centers. The commission may adopt guidelines for implementing the block grant or incentive program, which shall be approved at a noticed public meeting of the commission. (12) Life cycle and multimedia analyses, sustainability and environmental impact evaluations, and market, financial, and technology assessments performed by a state agency to determine the impacts of increasing the use of low-carbon transportation fuels and technologies, and to assist in the preparation of the investment plan and program implementation. (13) A program to provide funding for homeowners who purchase a plug-in electric vehicle to offset costs associated with modifying electrical sources to include a residential plug-in electric vehicle charging station. In establishing this program, the commission shall consider funding criteria to maximize the public benefit of the program. (f) The commission may make a single source or sole source award pursuant to this section for applied research. The same requirements set forth in Section 25620.5 of the Public Resources Code shall apply to awards made on a single source basis or a sole source basis. This subdivision does not authorize the commission to make a single source or sole source award for a project or activity other than for applied research. (g) The commission may do all of the following: (1) Contract with the Treasurer to expend funds through programs implemented by the Treasurer, if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270). (2) Contract with small business financial development corporations established by the Governor's Office of Business and Economic Development to expend funds through the Small Business Loan Guarantee Program if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270). (3) Advance funds, pursuant to an agreement with the commission, to any of the following: (A) A public entity. (B) A recipient to enable it to make advance payments to a public entity that is a subrecipient of the funds and under a binding and enforceable subagreement with the recipient. (C) An administrator of a block grant program. (4) 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 two years if the moneys are reprioritized by the commission to apply toward a project that benefits communities identified pursuant to Section 39711. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: To ensure stable funding for programs to reduce vehicular air pollution for the protection of the public health and safety, it is necessary for this act to take effect immediately.