Amended in Assembly April 25, 2016

Amended in Assembly April 6, 2016

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 amended, 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, as defined. 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. The program requires the state board to ensure that the results of emissions reductions or benefits can be measured or quantified.

This bill, between January 2, 2018, and January 1, 2023, would require no less than 50% begin delete or $100,000,000, whichever is greater, end delete 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 begin insert and bus end insert technology be allocated and spent to support the commercial deployment of existing zero- and near-zero-emission heavy-duty truck begin insert and heavy-duty bus end insert technology that meets or exceeds a specified emission begin delete standard. end delete begin insert standard, with at least end insert begin insert 2⁄3 end insert begin insert of these funds to be allocated to heavy-duty truck projects. The bill would authorize the state board to increase those emission standards based on specified findings. The bill would require the state board to limit the incentives that may be allocated to any one vehicle or engine manufacturer in each year under these provisions to 49% of the moneys available for allocation in that year. The bill would require allocations under these provisions to be made for projects that are shown to achieve the greatest greenhouse gas emissions reductions, as specified. end insert The bill also would require the state board to post on its Internet Web site the results of emissions reductions or benefits.

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 the
purposes of the program, shall fund development, demonstration,
precommercial pilot, and early commercial deployment of zero-
and near-zero-emission 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
near-zero-emission medium- and heavy-duty truck begin insert and bus end insert
technology, including projects that help to facilitate clean
goods-movement corridors.

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

(B) (i) Between January 2, 2018, and January 1, 2023, no less
than 50 percent begin delete or one hundred million dollars ($100,000,000),
whichever is greater, end delete 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 begin insert and heavy-duty bus end insert
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. begin insert The state
board shall allocate at least two-thirds of the amount available
for allocation pursuant to this subparagraph to heavy-duty truck
projects. end insert

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

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

begin insert

(III) The state board may increase the minimum percentage of
renewable fuel required for the allocation of moneys pursuant to
this subparagraph in subsequent years if the state board makes a
finding that a higher percentage is commercially feasible and the
State Energy Resources Conservation and Development
Commission makes a finding that there is a sufficient supply of
renewable energy fuel available. An increase adopted pursuant
to this subclause shall apply prospectively to moneys allocated
after the increase is adopted by the state board.

end insert begin delete

(III) The

end delete

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

begin delete

(IV)

end delete

begin insert (V) end insert  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 begin insert or bus end insert operator is eligible pursuant to law.

begin insert

(iii) The state board shall limit the amount of incentives that
may be allocated for any one vehicle or engine manufacturer in
each year to 49 percent of the moneys allocated in that year for
the purposes of this subparagraph.

end insert begin insert

(iv) The state board shall ensure that available moneys are
allocated on a competitive basis to projects that are shown to
achieve the greatest greenhouse gas emissions reductions not
otherwise required by statute or regulation.

end insert

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

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

(4) Purchase incentives, which may include point-of-sale, for
commercially available zero- and near-zero-emission 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 the 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. The state board shall post on its
Internet Web site every two years the results of those measurements
or quantifications.

(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 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) In 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 categories, performance criteria, and
required mandates for technologies and applications that may be
considered for funding pursuant to this section. This shall include
technologies and low-carbon-fuel requirements 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 coordination among agencies, program participants, and
low-carbon-fuel providers.

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

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

begin insert

(2) Effective January 2, 2018, “heavy-duty bus” means a bus
that has a gross vehicle weight rating (GVWR) of 19,501 pounds
or more.

end insert begin delete

(2)

end delete

begin insert (3) end insert  “Zero- and near-zero-emission” 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 near-zero-emission” 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.