California Legislature—2015–16 Regular Session

Assembly Bill No. 2415

Introduced by Assembly Member Eduardo Garcia

February 19, 2016

An act to amend Section 39719.2 of the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 2415, as introduced, Eduardo Garcia. California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified, with priority given to certain projects, including projects that benefit disadvantaged communities. The program, until January 1, 2018, requires no less than 20% of the funding made available for the purposes of technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.

This bill, between January 2, 2018, and January 1, 2023, would require no less than 50% or $100,000,000, whichever is greater, of the moneys allocated each year for technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology be allocated and spent to support the commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology that meets or exceeds a specified emission standard.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 39719.2 of the Health and Safety Code
is amended to read:

39719.2.  

(a) The California Clean Truck, Bus, and Off-Road
Vehicle and Equipment Technology Program is hereby created,
to be administered by the state board in conjunction with the State
Energy Resources Conservation and Development Commission.
The program, from moneys appropriated from the fund for begin insert the end insert
purposes of the program, shall fund development, demonstration,
precommercial pilot, and early commercial deployment of zero-
and begin delete near-zero emission end delete begin insert near-zero-emission end insert truck, bus, and off-road
vehicle and equipment technologies. Priority shall be given to
projects benefiting disadvantaged communities pursuant to the
requirements of Sections 39711 and 39713.

(b) Projects eligible for funding pursuant to this section include,
but are not limited to, the following:

(1) Technology development, demonstration, precommercial
pilots, and early commercial deployments of zero- and begin delete near-zero
emission end delete begin insert near-zero-emission end insert medium- and heavy-duty truck
technology, including projects that help to facilitate clean
goods-movement corridors. begin delete Until end delete

begin insert (A) end insert begin insert   end insert begin insert Until end insert January 1, 2018, no less than 20 percent of funding
made available for begin insert the end insert purposes of this paragraph shall support
early commercial deployment of existing zero- and begin delete near-zero
emission end delete begin insert near-zero-emission end insert heavy-duty truck technology.

begin insert

(B) (i) Between January 2, 2018, and January 1, 2023, no less
than 50 percent or one hundred million dollars ($100,000,000),
whichever is greater, of the moneys allocated each year for the
purposes of this paragraph shall be allocated and spent to support
the commercial deployment of existing zero- and
near-zero-emission heavy-duty truck technology that meets or
exceeds an emission standard of 0.02 grams per brake
horsepower-hour oxides of nitrogen, as described in the optional
low oxides of nitrogen emission standards in Section 1956.8 of
Title 13 of the California Code of Regulations.

end insert begin insert

(ii) (I) Between January 2, 2018, and January 1, 2020, a
heavy-duty truck with an internal combustion engine receiving
moneys allocated pursuant to this subparagraph shall use not less
than 30 percent renewable fuel.

end insert begin insert

(II) Beginning January 2, 2020, a heavy-duty truck with an
internal combustion engine receiving moneys allocated pursuant
to this subparagraph shall use not less than 50 percent renewable
fuel.

end insert begin insert

(III) The percentage in effect at the time the moneys are awarded
to a heavy-duty truck with an internal combustion engine pursuant
to this subparagraph shall not change that award.

end insert begin insert

(IV) This subparagraph does not alter or affect, in any way, the
amount of credit or grants for which a low-carbon-fuel provider
or truck operator is eligible pursuant to law.

end insert

(2) Zero- and begin delete near-zero emission end delete begin insert near-zero-emission end insert bus
technology development, demonstration, precommercial pilots,
and early commercial deployments, including pilots of multiple
vehicles at one site or region.

(3) Zero- and begin delete near-zero emission end delete begin insert near-zero-emission end insert off-road
vehicle and equipment technology development, demonstration,
precommercial pilots, and early commercial deployments, including
vehicles and equipment in the port, begin delete agriculture, end delete begin insert agricultural, end insert
marine, construction, and rail sectors.

(4) Purchase incentives, which may include point-of-sale, for
commercially available zero- and begin delete near-zero emission end delete
begin insert near-zero-emission end insert truck, bus, and off-road vehicle and equipment
technologies and fueling infrastructure to support early market
deployments of alternative technologies and to increase
manufacturer volumes and accelerate market acceptance.

(5) Projects that support greater commercial motor vehicle and
equipment freight efficiency and greenhouse gas emissions
reductions, including, but not limited to, advanced intelligent
transportation systems, autonomous vehicles, and other freight
information and operations technologies.

(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall
develop guidance through the existing Air Quality Improvement
Program funding plan process for the implementation of this
section that is consistent with the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500)) and this chapter.

(d) The guidance developed pursuant to subdivision (c) shall
do all of the following:

(1) Outline performance criteria and metrics for deployment
incentives. The goal shall be to design a simple and predictable
structure that provides incentives for truck, bus, and off-road
vehicle and equipment technologies that provide significant
greenhouse gas reduction and air quality benefits.

(2) Ensure that program investments are coordinated with
funding programs developed pursuant to 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).

(3) Promote projects that assist the state in reaching its climate
goals beyond 2020, consistent with Sections 38550 and 38551.

(4) Promote investments in medium- and heavy-duty trucking,
including, but not limited to, vocational trucks, short-haul and
long-haul trucks, buses, and off-road vehicles and equipment,
including, but not limited to, port equipment, agricultural
equipment, marine equipment, and rail equipment.

(5) Implement purchase incentives for eligible technologies to
increase begin insert the end insert use of the cleanest vehicles in disadvantaged
communities.

(6) Allow for remanufactured and retrofitted vehicles to qualify
for purchase incentives if those vehicles meet warranty and
emissions requirements, as determined by the state board.

(7) Establish a competitive process for the allocation of moneys
for projects funded pursuant to this section.

(8) Leverage, to the maximum extent feasible, federal or private
funding.

(9) Ensure that the results of emissions reductions or benefits
can be measured or quantified.

(10) Ensure that activities undertaken pursuant to this section
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminants.

(e) In evaluating potential projects to be funded pursuant to this
section, the state board shall give priority to projects that
demonstrate one or more of the following characteristics:

(1) Benefit begin delete to end delete disadvantaged communities pursuant to Sections
39711 and 39713.

(2) The ability to leverage additional public and private funding.

(3) The potential for cobenefits or multiple-benefit attributes.

(4) The potential for the project to be replicated.

(5) Regional benefit, with focus on collaboration between
multiple entities.

(6) Support for technologies with broad market and emissions
reduction potential.

(7) Support for projects addressing technology and market
barriers not addressed by other programs.

(8) Support for enabling technologies that benefit multiple
technology pathways.

(f)  begin delete To assist in end delete begin insert In end insert the implementation of this section, the state
board, in consultation with the State Energy Resources
Conservation and Development Commission, shall create an annual
framework and plan. The framework and plan shall be developed
with public input and may utilize existing investment plan
processes and workshops as well as existing state and third-party
research and technology roadmaps. The framework and plan shall
do all of the following:

(1) Articulate an overarching vision for technology development,
demonstration, precommercial pilot, and early commercial
deployments, with a focus on moving technologies through the
commercialization process.

(2) Outline technology begin delete categories end delete begin insert categories, performance
criteria, end insert and begin delete performance criteria end delete begin insert required mandates end insert for
technologies and applications that may be considered for funding
pursuant to this section. This shall include technologies begin insert and
low-carbon end insert begin insert -fuel requirements end insert for medium- and heavy-duty
trucking, including, but not limited to, vocational trucks, short-haul
and long-haul trucks, buses, and off-road vehicles and equipment,
including, but not limited to, port equipment, agricultural
equipment, construction equipment, marine equipment, and rail
equipment.

(3) Describe the roles of the relevant agencies and the process
for begin delete coordination. end delete begin insert coordination among agencies, program
participants, and low-carbon end insert begin insert -fuel providers. end insert

begin insert

(g) For purposes of this section, the following terms have the
following meanings:

end insert begin insert

(1) Effective January 2, 2018, “Heavy-duty truck” means a
vehicle that has a gross vehicle weight rate (GVWR) of 26,001
pounds or more.

end insert begin delete

(g) For purposes of this section, “zero-

end delete

begin insert (2) end insert begin insert   end insert begin insert “Zero- end insert and begin delete near-zero emission” end delete begin insert near-zero-emission” end insert means
vehicles, fuels, and related technologies that reduce greenhouse
gas emissions and improve air quality when compared with
conventional or fully commercialized alternatives, as defined by
the state board in consultation with the State Energy Resources
Conservation and Development Commission. “Zero- and begin delete near-zero
emission” end delete begin insert near-zero-emission” end insert may include, but is not limited to,
zero-emission technology, enabling technologies that provide a
pathway to emissions reductions, advanced or alternative fuel
engines for long-haul trucks, and hybrid or alternative fuel
technologies for trucks and off-road equipment.