BILL ANALYSIS Ó
AB 1176
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1176 (Perea) - As Amended April 23, 2015
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Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill creates the Advanced Low-Carbon Diesel Fuels Access
Program, to be administered by the California Energy Commission
(CEC), in consultation with the Air Resources Board (ARB), to
reduce greenhouse gas (GHG) emissions of diesel motor vehicles
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by providing funding assistance for projects that expand
advanced low-carbon diesel fueling infrastructure in
disadvantaged communities. Specifically, this bill:
1)Provides that the program be funded, upon appropriation by the
Legislature, from the Greenhouse Gas Reduction Fund (GGRF),
established by AB 32 of 2006, and appropriates $35 million
from the GGRF for the program.
2)Requires the CEC, by March 1, 2016, to develop implementation
guidelines for the program that ensure focus on communities
with the greatest impact from vehicular air pollution, and
select the disadvantaged communities to receive program funds,
in consultation with the California Environmental Protection
Agency (CalEPA).
3)Requires that the commission give priority to projects that
provide quantifiable benefits to disadvantaged communities and
to allocate at least 50% of available program funds to
projects that provide direct benefits to disadvantaged
communities or that serve or are located within disadvantaged
communities.
4)Prohibits program funds to be used for projects that are
already required to be undertaken pursuant to state, federal,
or local laws.
FISCAL EFFECT:
1)One-time $35 million special fund appropriation. [GGRF]
2)Ongoing CEC administrative costs of around $400,000 for three
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positions to drafting program guidelines, implementing a
rulemaking, reviewing, awarding and monitoring grants, and
working with grantees and recipient communities. [GGRF]
COMMENTS:
1)Background and Purpose. According to the author, the top 25%
of disadvantaged communities are located in the San Joaquin
Valley and these communities suffer from some of the poorest
air quality in the state, oftentimes as a direct result of
heavy freight traffic that moves along the nearby Interstate-5
(I-5) and State Route (SR) 99 corridors. The author also
notes that other disadvantaged communities experiencing poor
air quality as a result of freight movement lie along the
I-710 and SR 60 corridors near the Ports of Los Angeles and
Long Beach.
The author believes that these communities could realize
immediate, significant reductions in GHG and criteria
pollutant emissions if the vehicles using these freight
corridors had ready access to low-carbon fueling
infrastructure. The sponsor of AB 1176, Propel Fuels,
indicates that many low-carbon fuel options are available to
consumers, often at lower price points than conventional
diesel, but due to lack of available alternative fueling
infrastructure, these low-carbon diesel options are
underutilized. To make these low-carbon fuels more readily
available along key freight corridors in and near
disadvantaged communities, the Advanced Low-Carbon Diesel
Fuels Access Program would provide funding for the
installation of alternative low-carbon fueling infrastructure
(tanks, pumps, fuel lines, etc.) at or near conventional
fueling stations along major freight corridors, thereby
increasing consumer options for its use.
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2)Program Funding. The program is proposed to be funded from
GGRF, which receives its revenues from cap and trade auctions
pursuant to AB 32. Sixty percent of these revenues are
continuously appropriated for specific purposes. Through
2015-16, the remaining 40% are available for appropriation by
the Legislature for investments in programs that include
low-carbon transportation, energy efficiency and renewable
energy, and natural resources and waste diversion. The
Governor's January budget proposal assumed $1 billion in
cap-and-trade revenues in 2015-16. The Legislative Analyst's
Office predicts these revenues will be considerably higher.
3)Prior Legislation. SB 535 (De Leon), Chapter 830, Statutes of
2013, required that a minimum of 25% of the available moneys
in the GGRF go to projects benefitting identified
disadvantaged communities, and that a minimum of 10% of the
available moneys go to projects located within identified
disadvantaged communities.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
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