BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 1697 Hearing Date: 6/28/2016
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|Author: |Bonilla |
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|Version: |4/25/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Erin Riches |
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SUBJECT: Alternative and Renewable Fuel and Vehicle Technology
Program
DIGEST: This bill expands the criteria for funding programs
through the state's Alternative and Renewable Fuel and Vehicle
Technology Program (ARFVTP) to include workforce training, as
specified.
ANALYSIS:
Existing law establishes the ARFVTP, administered by the
California Energy Commission (CEC). This program provides
funding (about $100 million per year) for development and
deployment of alternative and renewable fuels and advanced
transportation technologies to help attain the state's climate
change goals. This program, along with several others, is
funded through surcharges on vehicle registration fees, a
portion of the vessel registration fee, a portion of the Smog
Abatement Fee (paid to register vehicles less than six model
years old and therefore exempt from smog check), and an increase
in the fee for identification plates for various types of
vehicles, such as logging vehicles operated on public roads.
Existing law requires the CEC to prioritize projects that
maximize ARFVTP goals based on the following criteria, as
applicable:
1) Ability to provide a measurable transition to a diverse
portfolio of viable alternative fuels that meet petroleum
AB 1697 (Bonilla) Page 2 of ?
reduction and alternative fuel use goals.
2) Consistency with state climate change policy and
low-carbon fuel standards.
3) Ability to reduce criteria air pollutants and air toxics
and reduce or avoid multimedia environmental impacts.
4) Ability to decrease the discharge of water pollutants or
other substances known to damage health or the environment,
as specified.
5) Lack of adverse impact on the sustainability of the
state's natural resources, especially state and federal
lands.
6) Provision of non-state matching funds.
7) Provision of economic benefits for the state by promoting
California-based technology firms, jobs, and businesses.
8) Use of existing or proposed fueling infrastructure to
maximize project outcome.
9) Ability to reduce greenhouse gas (GHG) emissions by at
least 10%, and higher percentages in the future, from
current reformulated gasoline and diesel fuel standards
established by the state Air Resources Board.
10) Use of alternative fuel blends of least 20%, and higher
blend ratios in the future, with a preference for projects
with higher blends.
11) Ability to drive new technology advancement for vehicles,
vessels, engines, and other equipment, and promotion of
deployment of that technology in the marketplace.
Existing law makes the following types of projects eligible for
ARFVTP funding:
1) Projects to develop and improve alternative and renewable
low-carbon fuels, as specified.
2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing
engine technologies.
AB 1697 (Bonilla) Page 3 of ?
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 carbon footprint and increase
sustainability.
5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment.
6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower GHG emissions, alternative fuel usage
and storage, or emissions reductions.
7) Programs and projects that accelerate the
commercialization of vehicles and alternative and renewable
fuels.
8) Programs and projects to retrofit medium- and heavy-duty
on-road and off-road vehicle fleets with technologies that
create higher fuel efficiencies.
9) Infrastructure projects that promote alternative and
renewable fuel infrastructure development connected with
existing fleets, public transit, and existing transportation
corridors.
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 related sectors or occupations.
11) Block grants or incentive programs administered by public
entities or nonprofit entities for projects, education, and
program promotion within the state, and development of
alternative and renewable fuel and vehicle technology
centers.
12) Life-cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
AB 1697 (Bonilla) Page 4 of ?
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.
This bill:
1) Adds two criteria to the list on which the CEC must base
project prioritization:
a) Ability to provide a path for trained workers to
transition to jobs in the clean technology and renewable
fuels sectors.
b) Ability to promote employment of trained workers in
the clean technology and renewable fuels sectors.
2) Recasts the criteria for workforce training programs that
are eligible for funding, as follows:
a) Workforce training programs related to the
development and deployment of innovative technologies
that transform the state's fuel and vehicle types and
assist the state in implementing its climate change
policies, including training programs linked to career
pathways for experienced workers in jobs that will be
phased out as the state transitions to a low-carbon
economy and for low-skilled workers to enter or continue
in a career pathway that leads to middle-skill,
industry-recognized certifications or apprenticeship
opportunities.
COMMENTS:
1) Purpose. The author states that as policies to reduce GHG
emissions in California go into effect, the job market will
move toward clean energy and renewable fuels. In order to
remain competitive, the state will need to transition its
workforce to match the growing demand in the green job
sector. Of the $100 million currently available for ARFVTP
projects, only $2.5 million is spent on workforce
AB 1697 (Bonilla) Page 5 of ?
development. This bill helps focus those funds to enhance
workforce development in future clean energy development and
infrastructure project proposals.
2) Economic changes call for worker retraining. According to
the analysis by the Assembly Committee on Jobs, Economic
Development, and the Economy, the trade, transportation, and
utility sector is the largest employment sector and the
second largest contributor to the state GDP. In 2014, this
sector contributed $351 billion to the California economy,
as well as supporting jobs in other industry sectors
including manufacturing, professional services, and
financial activities. While these industry sectors provide
significant economic advantages, they are primary
contributors to GHG emissions in California. Meeting the
state's GHG emission-reduction goals will require
substantial restructuring within the economy. Transitioning
to a lower carbon economy carries economic costs; this bill
seeks to address this problem by expanding an existing
funding source to help retrain workers who face potential
unemployment when their middle-wage jobs are eliminated.
3) Future amendments. The author is working with CEC and
other stakeholders to fine-tune the language of this bill.
Negotiations were not complete as of this writing, so the
author plans to amend the bill when it reaches the
Appropriations Committee to address stakeholder concerns.
Assembly Votes:
Floor: 80-0
Appr: 20-0
J,ED,&E: 9-0
Related Legislation:
AB 865 (Alejo, Chapter 583, Statutes of 2015) - requires the CEC
to establish an outreach program to inform businesses owned by
women, minorities, disabled veterans, and gay, lesbian,
bisexual, and transgender individuals of CEC workshops and
funding opportunities.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
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POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 22, 2016.)
SUPPORT:
California Labor Federation
California Workforce Association
Cleantech San Diego
Environmental Defense Fund
State Building and Construction Trades Council
OPPOSITION:
None received
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