Amended in Assembly March 16, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1697

Introduced by Assembly Member Bonilla

January 21, 2016

begin delete An act to amend Section 85309 of the Government Code, relating to the Political Reform Act of 1974, and declaring the urgency thereof, to take effect immediately. end delete begin insert An act to amend Section 44272 of the Health and Safety Code, relating to vehicular air pollution. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1697, as amended, Bonilla. begin delete Political Reform Act of 1974: contributions. end delete begin insert Alternative and Renewable Fuel and Vehicle Technology Program. end insert

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Existing law establishes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission. Existing law requires the program to provide funding measures to certain entities to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies. Existing law requires the commission to provide preferences to projects that maximize the goals of the program based on certain criteria, including the project’s ability to provide economic benefits for California by promoting California-based technology firms, jobs, and businesses.

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This bill would add a project’s ability to provide a path for trained workers to transition to jobs in the clean technology and renewable fuels sectors and a project’s ability to promote employment of trained workers in those sectors as additional criteria on which preference under the program shall be provided.

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Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures and imposing other reporting and recordkeeping requirements on campaign committees. The act requires that a candidate for elective state office or a committee primarily formed to support or oppose a state ballot measure, if the candidate or committee has reportable contributions or expenditures of $25,000 or more, file a report with the Secretary of State disclosing the receipt of a contribution of $1,000 or more during an election cycle, as defined, within 24 hours of receiving the contribution. At times other than during the election cycle, the act requires those candidates and committees to file a report for contributions of $5,000 or more within 10 business days of receipt of the contribution. Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties.

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This bill would modify these reporting requirements to instead require the above-described candidates and committees, and a committee that makes an expenditure in support of or opposition to candidates for elective state office or state ballot measures, to file a report with the Secretary of State disclosing the receipt of a contribution of $1,000 or more during an election cycle within 24 hours of receipt of the contribution. At times other than during an election cycle, the bill would require those candidates and committees to file a report for contributions of $1,000 or more within 5 business days of receipt of the contribution. Because this bill would expand the definition of an existing crime, it would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2⁄3 vote of each house and compliance with specified procedural requirements.

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This bill would declare that it furthers the purposes of the act.

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

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Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

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begin insert SECTION 1. end insert   

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begin insert Section 44272 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

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
begin delete measures, end delete begin insert measures end insert 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.

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(12) The project’s ability to provide a path for trained workers
to transition to jobs in the clean technology and renewable fuels
sectors.

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(13) The project’s ability to promote employment of trained
workers in the clean technology and renewable fuels sectors.

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(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.

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SECTION 1.  

Section 85309 of the Government Code is
amended to read:

85309.  

(a) In addition to any other report required by this title,
if a candidate for elective state office, or a committee that makes
an expenditure in support of or opposition to one or more
candidates for elective state office or state ballot measures, is
required to file reports pursuant to Section 84605, that candidate
or committee shall file online or electronically with the Secretary
of State a report disclosing receipt of a contribution of one thousand
dollars ($1,000) or more. Those reports shall disclose the same
information required by subdivision (a) of Section 84203. A report
of a contribution received during an election cycle shall be filed
within 24 hours of receipt of the contribution. A report of a
contribution received at any time other than during an election
cycle shall be filed within five business days of receipt of the
contribution.

(b) In addition to any other report required by this title, any
committee primarily formed to support or oppose one or more
state ballot measures that is required to file reports pursuant to
Section 84605 shall file online or electronically with the Secretary
of State a report disclosing receipt of a contribution of one thousand
dollars ($1,000) or more. Those reports shall disclose the same
information required by subdivision (a) of Section 84203. A report
of a contribution received during an election cycle shall be filed
within 24 hours of receipt of the contribution. A report of a
contribution received at any time other than during an election
cycle shall be filed within five business days of receipt of the
contribution.

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SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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SEC. 3.  

The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the
meaning of subdivision (a) of Section 81012 of the Government
Code.

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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:

In order to protect the interests of Californians who are
empowered with the right to vote, it is appropriate that they be
duly informed regarding campaign contributions and expenditures
that affect elections. The need for greater transparency of campaign
contribution reports is vital to the interests of the State such that
this act must take effect immediately.

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