BILL ANALYSIS Ó
AB 2415
Page 1
Date of Hearing: April 4, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 2415
(Eduardo Garcia) - As Introduced February 19, 2016
SUBJECT: California Clean Truck, Bus, and Off-Road Vehicle and
Equipment Technology Program
SUMMARY: Reserves 50% or $100 million annually, whichever is
greater, of Greenhouse Gas Reduction Fund (GGRF) monies that are
allocated to the California Clean Truck, Bus, and Off-Road
Vehicle and Equipment Technology Program (SB 1204 Program) to
support the commercial deployment of existing zero- and
near-zero emission heavy duty truck technology that meets or
exceeds the Air Resources Board's (ARB's) low oxides of nitrogen
(NOx) standard between 2018 and 2023. Specifically, this bill:
1)Requires for five years, between January 2, 2018 and January
1, 2023, that 50% or $100 million, whichever is greater, of
monies allocated annually for technology development,
demonstration, pre-commercial 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 the ARB's Low NOx Standard of 0.02 grams per brake
horsepower-hour oxides of nitrogen.
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2)Requires that between January 2, 2018, and January 1, 2020,
that a heavy-duty truck with an internal combustion engine
(ICE) receiving SB 1204 Program monies, not use at least 30%
renewable fuel.
3)Requires, beginning on January 2, 2020, that a heavy-duty
truck with an ICE receiving
SB 1204 Program funds not use less than 50% renewable fuel.
4)Provides that the required percentage of renewable fuel in
effect at the time the moneys are awarded to a heavy-duty
truck pursuant to the SB 1204 program shall not change over
time.
5)Provides that awards provided pursuant to the SB 1204 program
shall not affect the eligibility of low-carbon-fuel providers
to qualify for or receive other credits or grants for which
they are eligible.
6)For the purposes of the SB 1204 Program, defines a "heavy-duty
truck" as a vehicle with a gross vehicle weight rating (GVWR)
of 26,001 pounds or more.
7)Makes related, clarifying amendments.
EXISTING LAW:
1)Requires the ARB, pursuant to AB 32 (Núñez), Chapter 488,
Statutes of 2006, to develop a plan of how to reduce statewide
greenhouse gas (GHG) emissions to 1990 levels by 2020. Under
AB 32, ARB is authorized to include the use of market-based
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mechanisms to comply with these regulations (such as cap and
trade mechanism).
2)Establishes the GGRF in the State Treasury and requires all
money collected pursuant to cap and trade, with limited
exceptions, be deposited into the fund.
3)Creates the SB 1204 Program pursuant to SB 1204 (Lara),
Chapter 524, Statutes of 2013, to fund development,
demonstration, pre-commercial pilot, and early commercial
deployment of zero- and near-zero-emission truck, bus, and
off-road vehicle and equipment technologies including, but not
necessarily limited to, medium- and heavy-duty trucks,
vocational trucks, short-haul and long-haul trucks, buses, and
off-road vehicles and equipment, port equipment, agricultural
equipment, marine equipment, and rail equipment.
4)Requires that the SB 1204 Program be funded from the GGRF and
prioritized for projects in disadvantaged communities.
5)Requires, until January 1, 2018, that no less than 20% of
funding for the SB 1204 Program support commercial deployment
of existing zero- and near-zero-emission heavy duty trucks,
which is broadly defined.
6)Under the California Alternative and Renewable Fuel, Vehicle
Technology, Clean Air, and Carbon Reduction Act of 2007,
created by AB 118 (Núñez), Chapter 750, Statutes of 2007,
requires California Energy Commission (Commission) to
implement the Alternative and Renewable Fuels and Vehicle
Technology Program (ARFVTP) to fund specified entities to
develop and deploy technologies and alternative and renewable
fuels in the marketplace to help meet the state's climate
change policies.
7)Creates the Air Quality Improvement Program (AQIP),
administered by ARB and the Commission, in consultation with
local air districts, to fund specified air quality improvement
projects.
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8)Requires ARB, in consultation with the Commission, to develop
guidance through the existing AQIP funding plan process to
implement the SB 1204 Program.
9)Defines a "heavy-duty truck" as vehicles weighing
14,000-19,500 pounds GVWR.
FISCAL EFFECT: Unknown
COMMENTS: According to the author, air pollution effects human
health disproportionately in disadvantaged communities that
border transportation corridors. This unhealthy air increases
the risk of asthma, cancer and premature death. He notes that
in the South Coast and San Joaquin Valley Air Districts, nearly
80% of smog-forming pollutants, such as NOx come from mobile
sources and that heavy-duty vehicles are the primary producer of
these pollutants. To address these issues, the author has
introduced AB 2415 which would incentivize the use of renewable
fuels in heavy-duty vehicles involved in goods movement and in
doing so, provide immediate and cost-effective solutions to
reducing emissions and improving air quality and public health.
AB 32 required ARB to develop a plan to reduce GHG emissions to
1990 levels, by 2020.
AB 32 also required ARB to ensure that GHG emissions reduction
requirements and programs, to the extent feasible, directed
public and private investment toward the most disadvantaged
communities in the state. In addition, AB 32 authorized ARB to
adopt a schedule of fees to be paid by GHG emission sources and
to deposit those monies into the GGRF, which would then be
available upon appropriation by the Legislature, to carry out AB
32 requirements.
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Subsequent legislation, AB 118, established the AQIP
administered by ARB in consultation with local air districts.
The AQIP is funded through various fees and surcharges on
vehicles and provides competitive grants to fund projects that
improve air quality. The AQIP encompasses several programs,
including the Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Program (HVIP), which is administered by ARB and
provides vouchers to California fleet owners to help purchase
hybrid and zero-emission trucks and buses.
AB 118 also established the ARFVTP, which is administered by the
Commission, and provides funding for development and deployment
of alternative and renewable fuels and advanced transportation
technologies to help attain the state's climate change goals.
Eligible projects include, for example, development,
improvement, and production of alternative and renewable
low-carbon fuels; improvement of light-, medium-, and heavy-duty
vehicle technologies; and expansion of infrastructure connected
with existing fleets, public transit, and transportation
corridors.
In 2014, the SB 1204 Program was established, to be administered
by ARB in conjunction with the Commission, with the intent to
create a single, overarching program to develop and deploy zero-
and near-zero-emission heavy-duty vehicles. In introducing AB
2415, the primary intent of the author was to better address
heavy-duty vehicles in HVIP and AQIP. Specifically, the
SB 1204 Program, until January 1, 2018, provided GGRF funds for
projects that develop technology, demonstrate and pilot
commercial and early-commercial deployment of zero and near-zero
emission medium- and heavy-duty truck technology, and facilitate
clean goods movement. The SB 1204 Program worked to develop
zero-and near-zero emission technologies for specified vehicles
and equipment not only for trucks, but also for off-road
vehicles and equipment at the ports as well as in agricultural,
marine, and rail sectors. Within the SB 1204 Program, funding
priority is generally given to projects that demonstrate benefit
to disadvantaged communities, that have the ability to leverage
additional public and private funding, and that provide the
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potential for co-benefits.
To help incentivize the adoption of these new technologies, the
author has introduced AB 2415 which is essentially a
reintroduction of a bill carried by Assemblymember Perea last
year
(AB 857). Specifically, AB 2415 would re-establish the
priorities of the SB 1204 Program for five years beginning on
January 2, 2018, and ending on January 1, 2023, and, during that
five-year period, require that 50% of SB 1204 Program funds (or
$100 million, whichever is greater) be used for the deployment
of heavy-duty vehicles weighing 26,001 pounds. GVWR or greater
that meet a low NOx standard (i.e., meet or exceed an emission
standard of 0.02 grams per brake horsepower-hour NOx). AB 2415
accounts for improved technology over time by "ratcheting down"
program requirements so that between January 2, 2018, and
January 1, 2020, that a heavy-duty truck with an ICE receiving
SB 1204 Program monies must use at least 30% renewable fuel and
beginning on January 2, 2020, qualifying heavy-duty trucks
receiving
SB 1204 Program funds 50% or more renewable fuel.
AB 2415 has a broad spectrum of support including local
jurisdictions, business, and environmental and community groups.
These groups note that AB 2415 will provide the opportunity to
deploy cleaner trucks in the near-term so that Californians,
particularly those in disadvantaged communities who experience
some of the worst air quality in the state, can begin to see
improved air quality and increased health benefits sooner rather
than later.
The Southern California Association of Governments (SCAG),
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writing in support of AB 2415 point out that emissions from the
heavy-duty truck sector represent some of the most polluting
mobile source emitters and that if enacted, this bill will
create additional incentives for zero- and near-zero-emission
heavy-duty truck purchases that will help purchasers afford the
initial costs of these cleaner trucks, which will in turn help
accelerate the retirement of older, dirtier trucks. SCAG
contends that stimulating investments in the next-generation of
clean truck technology will help grow the market and help
California reach its clean air goals.
Suggested amendments: The SB 1204 Program requires ARB to
ensure that emissions reductions benefits can be measured or
quantified but there is no requirement that the results of these
measurements be made public. AB 2415 should be amended to
require that ARB periodically post (at least every two years)
the GHG and air pollutant reduction benefits achieved by the by
the program on its Internet Web site
Double referral: This bill will be referred to the Assembly
Natural Resources Committee should it pass out of this
committee.
Previous legislation: AB 857 (Perea) of 2015, would have
reserved 50% or $100 million annually, whichever is greater, of
GGRF monies that are allocated to the California Clean Truck,
Bus, and Off-Road Vehicle and Equipment Technology Program (SB
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1204 Program) to support the commercial deployment of existing
zero- and near-zero emission heavy-duty truck technology that
meets or exceeds the ARB's optional low NOx standard between
2018 and 2023. AB 857 was held on the Senate Appropriations
Committee suspense file.
SB 1204 (Lara), Chapter 524, Statutes of 2014, created the SB
1204 Program to fund development, demonstration, pre-commercial
pilot, and early commercial deployment of zero- and
near-zero-emission truck, bus, and off-road vehicle and
equipment technologies.
AB 8 (Perea), Chapter 401, Statutes of 2013, extended until
January 1, 2024, extra fees on vehicle registrations, boat
registrations, and tire sales in order to fund the programs that
support the production, distribution, and sale of alternative
fuels and vehicle technologies, as well as air emissions
reduction efforts.
AB 118 (Núñez), Chapter 750, Statutes of 2007, created the
California Alternative and Renewable Fuel, Vehicle Technology,
Clean Air, and Carbon Reduction Act of 2007 that required the
Commission to implement the ARFVTP and provide funding measures
to specified entities to develop and deploy technologies and
alternative and renewable fuels in the marketplace to help
attain the state's climate change policies.
AB 32 (Núñez), Chapter 488, Statutes of 2006, required the ARB
to develop a plan of how to reduce emissions to 1990 levels by
the year 2020 and also required ARB to ensure that, to the
extent feasible, GHGs reduction requirement and programs direct
public and private investment toward the most disadvantaged
communities.
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REGISTERED SUPPORT / OPPOSITION:
Support
Antelope Valley Boys and Girls Club
Best Yet Express Inc.
Bienvenidos Community Health Center
Bioenergy Association of California
Brotherhood Crusade
Charter Oak Unified School
City of Los Alamitos
City of McFarland
Clean Energy
Congress of California Seniors
Cummins Westport Inc.
Duarte Chamber of Commerce
El Concilio Family Services
Foothill Workforce Development Board
Honorable Mike Ennis, Tulare County Board of Supervisors,
District Five
Industry Manufacturers Council
Kheir
Leon Trucking Inc.
Los Angeles Area Chamber of Commerce
MLI Leasing, LLC
Mojave Desert Air Quality Management District
Mothers of East Los Angeles
North American Repower
Orange County Business Council
Proteus, Inc.
Santa Clarita Valley Economic Development Corporation
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Southern California Association of Governments
Southern California Gas Company
The Valley Economic Alliance
Tulare County Economic Development Corporation
United Chambers of Commerce
United Way of Ventura County
Valley Family Center
VNG.co, LLC
1 private citizen
Opposition
Alameda-Contra Costa Transit District
American Lung Association
Center for Transportation and the Environment
Environment California
Natural Resources Defense Council
Physicians for Social Responsibility, Los Angeles
Regional Asthma Management and Prevention
Sierra Club California
Union of Concerned Scientists
Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093