BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 1697|
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                                   THIRD READING 


          Bill No:  AB 1697
          Author:   Bonilla (D), et al.
          Amended:  8/15/16 in Senate
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  9-1, 6/28/16
           AYES:  Beall, Cannella, Allen, Galgiani, Leyva, McGuire,  
            Mendoza, Roth, Wieckowski
           NOES:  Bates
           NO VOTE RECORDED:  Gaines

           SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           ASSEMBLY FLOOR:  80-0, 5/31/16 - See last page for vote

           SUBJECT:   Alternative and Renewable Fuel and Vehicle  
                     Technology Program


          SOURCE:    Author

          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: 

          1)Establishes the ARFVTP, administered by the California Energy  
            Commission (CEC).  This program provides funding (about $100  
            million per year) for development and deployment of  








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            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.

          2)Requires the CEC to prioritize projects that maximize ARFVTP  
            goals based on the following criteria, as applicable:

             a)   Ability to provide a measurable transition to a diverse  
               portfolio of viable alternative fuels that meet petroleum  
               reduction and alternative fuel use goals.

             b)   Consistency with state climate change policy and  
               low-carbon fuel standards.

             c)   Ability to reduce criteria air pollutants and air toxics  
               and reduce or avoid multimedia environmental impacts.

             d)   Ability to decrease the discharge of water pollutants or  
               other substances known to damage health or the environment,  
               as specified.

             e)   Lack of adverse impact on the sustainability of the  
               state's natural resources, especially state and federal  
               lands.

             f)   Provision of non-state matching funds.

             g)   Provision of economic benefits for the state by  
               promoting California-based technology firms, jobs, and  
               businesses.

             h)   Use of existing or proposed fueling infrastructure to  
               maximize project outcome.

             i)   Ability to reduce greenhouse gas (GHG) emissions by at  
               least 10%, and higher percentages in the future, from  








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               current reformulated gasoline and diesel fuel standards  
               established by the state Air Resources Board.

             j)   Use of alternative fuel blends of least 20%, and higher  
               blend ratios in the future, with a preference for projects  
               with higher blends.

             aa)  Ability to drive new technology advancement for  
               vehicles, vessels, engines, and other equipment, and  
               promotion of deployment of that technology in the  
               marketplace.

          1)Makes the following types of projects eligible for ARFVTP  
            funding:

             a)   Projects to develop and improve alternative and  
               renewable low-carbon fuels, as specified.

             b)   Demonstration and deployment projects that optimize  
               alternative and renewable fuels for existing and developing  
               engine technologies.

             c)   Projects to produce alternative and renewable low-carbon  
               fuels in California.

             d)   Projects to decrease the overall impact of an  
               alternative and renewable fuel's carbon footprint and  
               increase sustainability.

             e)   Alternative and renewable fuel infrastructure, fueling  
               stations, and equipment.

             f)   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.

             g)   Programs and projects that accelerate the  
               commercialization of vehicles and alternative and renewable  
               fuels.

             h)   Programs and projects to retrofit medium- and heavy-duty  








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               on-road and off-road vehicle fleets with technologies that  
               create higher fuel efficiencies.

             i)   Infrastructure projects that promote alternative and  
               renewable fuel infrastructure development connected with  
               existing fleets, public transit, and existing  
               transportation corridors.

             j)   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.

             aa)  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.

             bb)  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.

             cc)  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 a criterion to the list on which the CEC must base  
            project prioritization; specifically, the project's ability to  
            transition workers to, or promote employment in, the  
            alternative and renewable fuel and vehicle technology sector.   









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          2)Recasts the criteria for workforce training programs that are  
            eligible for funding (see #j above), to add:

             a)   Training programs related to the development and  
               deployment of technologies that transform the state's fuel  
               and vehicle types and assist the state in implementing its  
               climate change policies

             b)   Training programs to assist dislocated workers affected  
               by the state's GHG emissions policies, including those from  
               fossil fuels

             c)   Training for low-skilled workers to enter or continue in  
               a career pathway that leads to middle-skill,  
               industry-recognized credentials or state-approved  
               apprenticeship opportunities in occupations related to the  
               purposes of this bill

          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 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  








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            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)Recent amendments.  The author amended this bill in the Senate  
            Appropriations Committee to: clarify the bill's provisions by  
            combining the new criteria for project prioritization into one  
            criterion; clarify the changes to the workforce development  
            program component by reincorporating the specified occupations  
            and sectors; and require the CEC to collaborate with entities  
            that have expertise in workforce development, including the  
            California Workforce Development Board, the Employment  
            Training Panel, the Employment Development Department, and the  
            Division of Apprenticeship Standards, to implement the  
            workforce development components of ARFVTP.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:




           One-time CEC costs of approximately $50,000 for outreach and  
            information technology costs.  (ARFVT Fund)

           Ongoing CEC costs of approximately $150,000 annually and 1 PY  
            of staff to update program regulations, incorporate changes to  
            the workforce development component, and administer the  
            revised program.  (ARFVT Fund)


          SUPPORT:   (Verified8/11/16)










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          California Labor Federation
          California Workforce Association
          Cleantech San Diego
          Environmental Defense Fund
          State Building and Construction Trades Council


          OPPOSITION:   (Verified8/11/16)


          None received



          ASSEMBLY FLOOR:  80-0, 5/31/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

          Prepared by:Erin Riches / T. & H. / (916) 651-4121
          8/15/16 20:10:07


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