BILL ANALYSIS Ó
AB 2415
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2415 (Eduardo Garcia) - As Amended May 3, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill revises the California Clean Truck, Bus, and Off-Road
Vehicle and Equipment Technology Program (Clean Truck Program)
to require no less than 50% of program funds to support the
commercial deployment of certain heavy-duty trucks that meet
AB 2415
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specified emissions standards.
Specifically, this bill requires no less than 50% of Greenhouse
Gas Reduction Fund (GGRF) funds appropriated to the Clean Truck
Program (or $100 million, whichever is greater), during the
period between January 2, 2018, and January 1, 2023, to be
allocated to support the commercial deployment of existing zero-
and near-zero-emission heavy-duty truck technology [trucks with
a gross vehicle weight rating (GVWR) of 26,001 lbs. or more]
that meet or exceed low NOx standards (0.02 grams per brake
horsepower-hour oxides of nitrogen). ARB may reallocate any
unused funds to other Clean Truck Programs.
Additionally, this bill:
1)Requires a heavy-duty truck with an internal combustion engine
receiving incentives to use the following percentages of
renewable fuel:
a) Not less than 30% between January 2, 2018, and
January 1, 2020.
b) Not less than 50% beginning January 2, 2020.
2)Allows ARB to increase the renewable fuel percentages under
specified conditions.
3)Provides that these provisions do 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.
4)Limits the amount of incentives that may be awarded for any
one vehicle or engine manufacturer.
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FISCAL EFFECT:
1)Unknown, ongoing cost of at least 50% of annual funds
appropriated for the Clean Truck Program (GGRF), likely in the
tens of millions, for five years to support zero- and
near-zero-emission heavy duty trucks.
2)Cost Pressures to provide funds for other types of projects
under the Clean Truck Program.
3)Increased first year costs of $693,000, ongoing annual costs
of $833,000 for staffing, and $1 million in contracts to
perform the following duties:
a) Develop guidelines and procedures to implement the
program.
b) Develop grant solicitations for new projects.
c) Conduct fleet audits and data analysis.
d) Conduct on-site inspections.
e) Update GGRF and fiscal procedures to manage cash flow
and changes resulting from the program.
f) Review grant solicitations, process and track funding
disbursements.
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COMMENTS:
1)Background and Purpose. SB 1204 (Lara), Chapter 524, Statutes
of 2013, established the Clean Truck Program administered by
ARB. The intent of SB 1204 was to create a single,
overarching program to develop and deploy heavy-duty vehicles
primarily because heavy-duty vehicles were not addressed in
other programs to the degree this bill's author and supporters
thought was appropriate.
The Clean Truck program specifically, provides no less than
20% of 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.
When the Governor signed SB 1204, he included a signing
message stating:
To maximize reductions of these harmful emissions, the
focus of this funding must be on transformative, advanced
technology trucks and buses that can meet the objectives of
AB 32 by reducing emissions of both harmful criteria
pollutants and greenhouse gases. Only vehicles that are
certified to the cleanest standards and run on renewable
fuels merit funding through this program.
According to the author, Over 80% of our polluting emissions
come from mobile sources, and trucks operating in the goods
movement sector are among the largest contributors. This bill
allows the trucking industry to continue while becoming
cleaner. By sending market signals that all cost-effective
solutions will be considered, California can accelerate the
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development of even cleaner, affordable technologies that help
drive down the cost of new heavy duty engines.
2)Prior legislation. This bill is similar to AB 857 (Perea),
which passed this Committee on but was later amended to a gun
bill in the Senate.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081