BILL NUMBER: SB 513 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Beall
FEBRUARY 26, 2015
An act relating to vehicular air pollution.
An act to amend Sections 41081, 44223, 44225, 44229, 44233,
44275, 44281, 44282, 44283, 44286, 44287, 44287.1, 44287.2, 44288,
44291, and 44299.2 of, and to amend and repeal Section 44299.1 of,
the Health and Safety Code, relating to vehicular air pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 513, as amended, Beall. Carl Moyer Memorial Air
Quality Standards Attainment Program. Carl Moyer
Memorial Air Quality Standards Attainment Program: fees.
(1) Existing law authorizes the Sacramento Metropolitan Air
Quality Management District to adopt a $6 surcharge on motor vehicle
registration fees applicable to motor vehicles registered within the
district. Existing law requires the collected fees to be used for
specified purposes, including, among others, awarding grants eligible
for funding under the Carl Moyer Memorial Air Quality Standards
Attainment Program.
This bill would additionally authorize those fees to be used for
projects that involve alternative fuel and electric infrastructure,
as specified.
(2) Existing law authorizes an air pollution control or air
quality management district, except the Sacramento district, that has
been designated by the State Air Resources Board as a state
nonattainment area for any pollutant emitted by motor vehicles to
levy a fee of up to $6 on motor vehicles registered within the air
district, subject to specified conditions.
This bill instead would authorize any air district, except the
Sacramento district, regardless of its state attainment designation
to levy a fee of up to $6 on motor vehicles registered within the air
district. The bill also would authorize those fees to be used for
the attainment or maintenance of state or federal ambient air quality
standards or the reduction of toxic air contaminant emissions from
motor vehicles and for alternative fuel and electric infrastructure
projects, as specified.
(3) Existing law establishes the Carl Moyer Memorial Air Quality
Standards Attainment Program, which is administered by the state
board, to provide grants to offset the incremental cost of eligible
projects that reduce emissions of air pollutants from vehicular
sources in the state and for funding a fueling infrastructure
demonstration program and technology development efforts.
This bill would revise and recast provisions of the program,
including, among others, changing the definition of covered source to
include any marine vessel and any other category necessary for the
state and air districts to meet air quality goals; authorizing the
state board to adjust, rather than just reduce, the values of the
maximum grant award criteria to improve the ability of the program to
achieve its goals; authorizing the state board to reserve up to 10%
of the program moneys available each year to directly fund any
project the state board determines contributes toward the achievement
of state air quality goals; removing the prohibition on using
specified motor vehicle registration fees as matching funds;
requiring the state board, instead of the State Energy Resources
Conservation and Development Commission, to publish procedures to
monitor and audit infrastructure projects; increasing the
authorization for support and outreach costs from not more than 2% to
not more than 2.5% of the moneys in the Air Pollution Control Fund;
removing the repeal date of January 1, 2024, from the provisions on
how moneys in the Air Pollution Control Fund are allocated and
segregated; removing the repeal date of January 1, 2024, from the
provisions regarding the terms and conditions for an allocation of
moneys to an air district; and requiring an air district to liquidate
the moneys by a specified date 4 years following the year of
allocation and to return those moneys that have not been liquidated
to the state board within 90 days.
(4) The California Global Warming Solutions Act of 2006
establishes the state board as the state agency responsible for
monitoring and regulating sources emitting 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 from the auction or
sale of allowances 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.
This bill would authorize the state board to allocate moneys from
the Greenhouse Gas Reduction Fund and other specified sources for the
Carl Moyer Memorial Air Quality Standards Attainment Program without
those other moneys being required to be factored into the criteria
emission reduction cost-effectiveness calculations.
Existing law establishes the Carl Moyer Memorial Air Quality
Standards Attainment Program, which is administered by the State Air
Resources Board, to provide grants to offset the incremental cost of
eligible projects that reduce emissions of air pollutants from
vehicular sources in the state and for funding a fueling
infrastructure demonstration program and technology development
efforts.
This bill would state the intent of the Legislature to enact
legislation to amend the program to achieve even greater air quality
benefits.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 41081 of the Health
and Safety Code , as amended by Section 1 of
Chapter 401 of the Statutes of 2013, is amended to read:
41081. (a) Subject to Article 3.7 (commencing with Section 53720)
of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
Code, or with the approval of the board of supervisors of each county
included, in whole or in part, within the Sacramento district, the
Sacramento district board may adopt a surcharge on the motor vehicle
registration fees applicable to all motor vehicles registered in
those counties within the Sacramento district whose boards of
supervisors have adopted a resolution approving the surcharge. The
surcharge shall be collected by the Department of Motor Vehicles and,
after deducting the department's administrative costs, the remaining
funds shall be transferred to the Sacramento district. Prior to the
adoption of any surcharge pursuant to this subdivision, the district
board shall make a finding that any funds allocated to the district
as a result of the adoption of a county transportation sales and use
tax are insufficient to carry out the purposes of this chapter.
(b) The surcharge shall not exceed six dollars ($6).
(c) After consulting with the Department of Motor Vehicles on the
feasibility thereof, the Sacramento district board may provide, in
the surcharge adopted pursuant to subdivision (a), to exempt from all
or part of the surcharge any category of low-emission motor vehicle.
(d) Funds received by the Sacramento district pursuant to this
section shall be used by that district as follows:
(1) The revenues resulting from the first four dollars ($4) of
each surcharge shall be used to implement reductions in emissions
from vehicular sources, including, but not limited to, a clean fuels
program and motor vehicle use reduction measures.
(2) The revenues resulting from the next two dollars ($2) of each
surcharge shall be used to implement the following programs that
achieve emission reductions from vehicular sources and off-road
engines, to the extent that the district determines the program
remediates air pollution harms created by motor vehicles on which the
surcharge is imposed:
(A) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
(B) The new purchase, retrofit, repower, or add-on of equipment
for previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, within the Sacramento district, for a
minimum of three years from the date of adoption of an applicable
rule or standard, or until the compliance date of that rule or
standard, whichever is later, if the state board has determined that
the rule or standard complies with Sections 40913, 40914, and
41503.1, after which period of time, a new purchase, retrofit,
repower, or add-on of equipment shall not be funded pursuant to this
chapter. The district shall follow any guidelines developed under
subdivision (a) of Section 44287 for awarding grants under this
program.
(C) The purchase of new, new schoolbuses,
or the purchase for the repower or retrofit of emissions
control equipment for existing, for existing
schoolbuses pursuant to the Lower-Emission School Bus Program
adopted by the state board.
(D) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
(E) The replacement of onboard natural gas fuel tanks on
schoolbuses owned by a school district that are 14
years or older, not to exceed twenty thousand dollars
($20,000) per bus, older or the enhancement of
deteriorating natural gas fueling dispensers of fueling
infrastructure, pursuant to the Lower-Emission School Bus
Program adopted by the state board.
(F) The enhancement of deteriorating natural gas fueling
dispensers of fueling infrastructure operated by a school district
with a one-time funding amount not to exceed five hundred dollars
($500) per dispenser, pursuant to the Lower-Emission School Bus
Program adopted by the state board.
(F) The funding of alternative fuel and electric infrastructure
projects solicited and selected through a competitive bid process.
(e) Not more than 5 6.25 percent of
the funds collected pursuant to this section shall be used by the
district for administrative expenses.
(f) A project funded by the program shall not be used for credit
under any state or federal emissions averaging, banking, or trading
program. An emission reduction generated by the program shall not be
used as marketable emission reduction credits or to offset any
emission reduction obligation of any person or entity. Projects
involving new engines that would otherwise generate marketable
credits under state or federal averaging, banking, and trading
programs shall include transfer of credits to the engine end user and
retirement of those credits toward reducing air emissions in order
to qualify for funding under the program. A purchase of a
low-emission vehicle or of equipment pursuant to a corporate or a
controlling board's policy, but not otherwise required by law, shall
generate surplus emissions reductions and may be funded by the
program.
(g) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 2. Section 44223 of the Health and
Safety Code is amended to read:
44223. (a) In addition to any other fees specified in this code,
the Vehicle Code, and the Revenue and Taxation Code, a district,
except the Sacramento district, which has been designated by
the state board as a state nonattainment area for any pollutant
emitted by motor vehicles may levy a fee of up to two
dollars ($2) on motor vehicles registered within the district. A
district may impose the fee only if the district board adopts a
resolution providing for both the fee and a corresponding program for
the reduction of air pollution from motor vehicles pursuant to, and
for related planning, monitoring, enforcement, and technical studies
necessary for the implementation of, the California Clean Air Act of
1988 (Chapter 1568 of the Statutes of 1988) , or for the
attainment or maintenance of state or federal ambient air quality
standards or the reduction of toxic air contaminant emissions from
motor vehicles .
(b) In districts with nonelected officials on their boards, a
resolution adopted pursuant to subdivision (a) shall be approved by
both a majority of the board and a majority of the board members who
are elected officials.
(c) A fee imposed pursuant to this section shall become effective
on either April 1 or October 1, as provided in the resolution
adopted by the board pursuant to subdivision (a).
SEC. 3. Section 44225 of the Health and
Safety Code , as amended by Section 6 of Chapter 401 of
the Statutes of 2013, is amended to read:
44225. A district may increase the fee established under Section
44223 to up to six dollars ($6). A district may increase the fee only
if the following conditions are met:
(a) A resolution providing for both the fee increase and a
corresponding program for expenditure of the increased fees for the
reduction of air pollution from motor vehicles pursuant to, and for
related planning, monitoring, enforcement, and technical studies
necessary for the implementation of, the California Clean Air Act of
1988 , or for the attainment or maintenance of state or federal
ambient air quality standards or the reduction of toxic air
contaminant emissions from motor vehicles, is adopted and
approved by the governing board of the district.
(b) In districts with nonelected officials on their governing
boards, the resolution shall be adopted and approved by both a
majority of the governing board and a majority of the board members
who are elected officials.
(c) An increase in fees established pursuant to this section shall
become effective on either April 1 or October 1, as provided in the
resolution adopted by the board pursuant to subdivision (a).
(d) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 4. Section 44229 of the Health and
Safety Code , as amended by Section 8 of Chapter 401 of
the Statutes of 2013, is amended to read:
44229. (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts, which
shall use the revenues resulting from the first four dollars ($4) of
each fee imposed to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
(b) Notwithstanding Sections 44241 and 44243, a district shall use
the revenues resulting from the next two dollars ($2) of each fee
imposed pursuant to Section 44227 to implement the following programs
that the district determines remediate air pollution harms created
by motor vehicles on which the surcharge is imposed:
(1) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
(2) The new purchase, retrofit, repower, or add-on equipment for
previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the
compliance date of that rule or standard, whichever is later, if the
state board has determined that the rule or standard complies with
Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be
funded pursuant to this chapter. The districts shall follow any
guidelines developed under subdivision (a) of Section 44287 for
awarding grants under this program.
(3) The purchase of new, new schoolbuses,
or the purchase for the repower or retrofit of
emissions control equipment for existing,
existing schoolbuses pursuant to the Lower-Emission School Bus
Program adopted by the state board.
(4) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
(5) The replacement of onboard natural gas fuel tanks on
schoolbuses owned by a school district that are 14
years or older, not to exceed twenty thousand dollars
($20,000) per bus, older or the enhancement of
deterioratin g natural gas fueling dispensers,
pursuant to the Lower-Emission School Bus Program adopted by the
state board.
(6) The enhancement of deteriorating natural gas fueling
dispensers of fueling infrastructure operated by a school district
with a one-time funding amount not to exceed five hundred dollars
($500) per dispenser, pursuant to the Lower-Emission School Bus
Program adopted by the state board.
(6) The funding of alternative fuel and electric infrastructure
projects solicited and selected through a competitive bid process.
(c) The Department of Motor Vehicles may annually expend not more
than 1 percent of the fees collected pursuant to Section 44227 on
administrative costs.
(d) A project funded by the program shall not be used for credit
under any state or federal emissions averaging, banking, or trading
program. An emission reduction generated by the program shall not be
used as marketable emission reduction credits or to offset any
emission reduction obligation of any person or entity. Projects
involving new engines that would otherwise generate marketable
credits under state or federal averaging, banking, and trading
programs shall include transfer of credits to the engine end user and
retirement of those credits toward reducing air emissions in order
to qualify for funding under the program. A purchase of a
low-emission vehicle or of equipment pursuant to a corporate or a
controlling board's policy, but not otherwise required by law, shall
generate surplus emissions reductions and may be funded by the
program.
(e) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 5. Section 44233 of the Health and
Safety Code is amended to read:
44233. Not more than 5 6.25 percent
of the fees distributed to any district pursuant to Section 44229,
or distributed by a district to any other public agency pursuant to
this chapter, shall be used by the district or other public agency
for administrative costs.
SEC. 6. Section 44275 of the Health and
Safety Code , as amended by Section 15 of
Chapter 401 of the Statutes of 2013, is amended to read:
44275. (a) As used in this chapter, the following terms have the
following meanings:
(1) "Advisory board" means the Carl Moyer Program Advisory Board
created by Section 44297.
(1) (A) "Ancillary benefits" includes additional project benefits
beyond the reductions in covered emissions, including reductions in
greenhouse gases, short-lived climate pollutants, and other benefits,
such as benefits to communities described in subdivision (a) of
Section 43023.5, fuel-efficiency improvements, or the deployment of
advanced technology.
(B) The state board shall define ancillary benefits pursuant to
the process described in Section 44287.
(2) "Btu" means British thermal unit.
(3) "Commission" means the State Energy Resources Conservation and
Development Commission.
(4) "Cost-effectiveness" means dollars provided to a project
pursuant to subdivision (d) of Section 44283 for each ton of covered
emission reduction attributed to a project or to the program as a
whole. In calculating cost-effectiveness, one-time grants of funds
made at the beginning of a project shall be annualized using a time
value of public funds or discount rate determined for each project by
the state board, taking into account the interest rate on bonds,
interest earned by state funds, and other factors as determined
appropriate by the state board. Cost-effectiveness shall be
calculated by dividing annualized costs by average annual emissions
reduction. The state board, in consultation with the districts and
concerned members of the public, shall establish appropriate
cost-effective limits for oxides of nitrogen, particulate matter, and
reactive organic gases and a reasonable system for comparing the
cost-effectiveness of proposed projects as described in subdivision
(a) of Section 44283.
(5) "Covered emissions" include emissions of oxides of nitrogen,
particulate matter, and reactive organic gases from any covered
source.
(6) "Covered engine" includes any internal combustion engine or
electric motor and drive powering a covered source.
(7) "Covered source" includes onroad vehicles, off-road
nonrecreational equipment and vehicles, locomotives, diesel
marine vessels, agricultural sources of air pollution, as
defined in Section 39011.5, and, as determined by the state board,
other high-emitting engine categories
necessary for the state and districts to meet air quality
goals .
(8) "Covered vehicle" includes any vehicle or piece of equipment
powered by a covered engine.
(9) "District" means a county air pollution control district or an
air quality management district.
(10) "Fund" means the Air Pollution Control Fund established
pursuant to Section 43015.
(11) "Mobile Source Air Pollution Reduction Review Committee"
means the Mobile Source Air Pollution Reduction Review Committee
created by Section 44244.
(12) "Incremental cost" means the cost of the project
less a baseline cost that would not otherwise be
incurred by the applicant in the normal course of business.
Incremental costs may include added lease
lease, energy, or fuel costs pursuant to Section 44283 as well
as incremental capital costs.
(13) "New very low emission vehicle" means a heavy-duty vehicle
that qualifies as a very low emission vehicle when it is a new
vehicle, where new vehicle has the same meaning as defined in Section
430 of the Vehicle Code, or that is modified with the approval and
warranty of the original equipment manufacturer to qualify as a very
low emission vehicle within 12 months of delivery to an owner for
private or commercial use.
(14) "NOx" means oxides of nitrogen.
(15) "Program" means the Carl Moyer Memorial Air Quality Standards
Attainment Program created by subdivision (a) of Section 44280.
(16) "Repower" means replacing an engine with a different engine.
The term repower, as used in this chapter, generally refers to
replacing an older, uncontrolled engine with a new,
emissions-certified engine, although replacing an older
emissions-certified engine with a newer engine certified to lower
emissions standards may be eligible for funding under this program.
(17) "Retrofit" means making modifications to the engine and fuel
system such so that the retrofitted
engine does not have the same specifications as the original engine.
(18) "Very low emission vehicle" means a heavy-duty vehicle with
emissions significantly lower than otherwise applicable baseline
emission standards or uncontrolled emission levels pursuant to
Section 44282.
(b) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 7. Section 44281 of the Health and
Safety Code , as amended by Section 19 of
Chapter 401 of the Statutes of 2013, is amended to read:
44281. (a) Eligible projects include, but are not limited to, any
of the following:
(1) Purchase of new very low or zero-emission covered vehicles or
covered heavy-duty engines.
(2) Emission-reducing retrofit of covered engines, or replacement
of old engines powering covered sources with newer engines certified
to more stringent emissions standards than the engine being replaced,
or with electric motors or drives.
(3) Purchase and use of emission-reducing add-on equipment that
has been verified by the state board for covered vehicles.
(4) Development and demonstration of practical, low-emission
retrofit technologies, repower options, and advanced technologies for
covered engines and vehicles with very low emissions of NOx.
(5) Light- and medium-duty vehicle projects in compliance with
guidelines adopted by the state board pursuant to Title 13 of the
California Code of Regulations.
(b) No project shall be funded under this chapter after the
compliance date required by any local, state, or federal statute,
rule, regulation, memoranda of agreement or understanding, or other
legally binding document, except that an otherwise qualified project
may be funded even if the state implementation plan assumes that the
change in equipment, vehicles, or operations will occur, if the
change is not required by the compliance date of a statute,
regulation, or other legally binding document in effect as of the
date the grant is awarded. No project funded by the program shall be
used for credit under any state or federal emissions averaging,
banking, or trading program. No covered emission reduction
generated by the program shall be used as marketable emission
reduction credits or to offset any emission reduction obligation of
any person or entity. Projects involving new engines that would
otherwise generate marketable credits under state or federal
averaging, banking, and trading programs shall include transfer of
credits to the engine end user and retirement of those credits toward
reducing air emissions in order to qualify for funding under the
program. A purchase of a low-emission vehicle or of equipment
pursuant to a corporate or a controlling board's policy, but not
otherwise required by law, shall generate surplus emissions
reductions and may be funded by the program.
(c) The program may also provide funding toward the
installation of fueling or electrification infrastructure as
provided in Section 44284. energy infrastructure to
fuel or power covered sources.
(d) Eligible applicants may be any individual, company, or public
agency that owns one or more covered vehicles that operate primarily
within California or otherwise contribute substantially to the NOx,
particulate matter (PM), or reactive organic gas (ROG) emissions
inventory in California.
(e) It is the intent of the Legislature that all emission
reductions generated by this chapter shall contribute to public
health by reducing, for the life of the vehicle being funded, the
total amount of emissions in California.
(f) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 8. Section 44282 of the Health and
Safety Code , as amended by Section 21 of
Chapter 401 of the Statutes of 2013, is amended to read:
44282. The following criteria apply to all projects to be funded
through the program except for projects funded through the
infrastructure demonstration program and infrastructure
projects, pursuant to subdivision (c) of Section 44281 and Section
44284 :
(a) The state board may establish project criteria, including
minimum project life for source categories, in the guidelines
described in Section 44287. For previously unregulated source
categories, project criteria shall consider the timing of newly
established regulatory requirements.
(b) To be eligible, projects shall meet the cost-effectiveness per
ton of covered emissions reduced requirements of Section 44283.
(c) To be eligible, retrofits, repowers, and installation of
add-on equipment for covered vehicles shall be performed, or new
covered vehicles delivered to the end user, or covered vehicles
scrapped on or after the date the program is implemented.
(d) Retrofit technologies, new engines, and new vehicles shall be
certified for sale or under experimental permit for operation in
California.
(e) Repower projects that replace older, uncontrolled engines with
new, emissions-certified engines or that replace emissions-certified
engines with new engines certified to a more stringent NOx emissions
standard are approvable subject to the other applicable selection
criteria. The state board shall determine appropriate baseline
emission levels for the uncontrolled engines being replaced.
(f) For heavy-duty-vehicle projects, retrofit and add-on equipment
projects shall document a NOx or PM emission reduction of at least
25 percent and no increase in other covered emissions compared to the
applicable baseline emissions accepted by the state board for that
engine year and application. The state board shall determine
appropriate baseline emission levels. Acceptable documentation shall
be defined by the state board. After study of available emission
reduction technologies and after public notice and comment, the state
board may revise the minimum percentage emission reduction criterion
for retrofits and add-on equipment provided for in this section to
improve the ability of the program to achieve its goals.
(g) (1) For heavy-duty-vehicle projects involving the purchase of
new very low or zero-emission vehicles, engines shall be certified to
an optional low NOx emissions standard established by the state
board, except as provided for in paragraph (2).
(2) For heavy-duty-vehicle projects involving the purchase of new
very low or zero-emission covered vehicles for which no optional low
NOx emission standards are available, documentation shall be provided
showing that the low or zero-emission engine emits not more than 70
percent of the NOx or NOx plus hydrocarbon emissions of a new engine
certified to the applicable baseline NOx or NOx plus hydrocarbon
emission standard for that engine and meets applicable particulate
standards. The state board shall specify the documentation required.
If no baseline emission standard exists for new vehicles in a
particular category, the state board shall determine an appropriate
baseline emission level for comparison.
(h) For projects other than heavy-duty-vehicle projects, the state
board shall determine appropriate criteria under the provisions of
Section 44287.
(i) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 9. Section 44283 of the Health and
Safety Code , as amended by Section 23 of
Chapter 401 of the Statutes of 2013, is amended to read:
44283. (a) Grants shall not be made for projects with a
cost-effectiveness, calculated in accordance with this section, of
more than thirteen thousand six hundred dollars ($13,600) per ton of
NOx reduced in California or a higher value that reflects state
consumer price index adjustments on or after January 1, 2006, as
determined by the state board. For projects obtaining reactive
organic gas and particulate matter reductions, the state board shall
determine appropriate adjustment factors to calculate a weighted
cost-effectiveness.
44283. (a) (1) For all projects funded pursuant to
this chapter, except for an infrastructure project described in
subdivision (c) of Section 44281, the following cost-effectiveness
criteria shall apply:
(A) (i) Project grants shall not be made that exceed a
cost-effectiveness, calculated in accordance with this section.
(ii) The state board, in collaboration with the districts, shall
establish cost-effectiveness values in the guidelines issued pursuant
to Section 44287, taking into consideration factors, including, but
not limited to, the following:
(I) The ability of the project to provide ancillary benefits, as
defined in paragraph (1) of subdivision (a) of Section 44275, such as
reductions in greenhouse gases and short-lived climate pollutants,
benefits to communities described in subdivision (a) of Section
43023.5, fuel-efficiency improvements, or the deployment of advanced
technology.
(II) The cost of emission control technologies identified in
Section 44281.
(III) The cost-effectiveness values for NOx, particulate matter,
or reactive organic gases for any adopted rule or control measure in
any district's approved state implementation plan, or rule adopted by
the state board.
(B) For projects obtaining reactive organic gas and particulate
matter reductions, the state board shall determine appropriate
adjustment factors to calculate a weighted cost-effectiveness.
(2) When a district board approves funding for a project or
project category, the district board:
(A) May recognize the ancillary benefit, as defined in paragraph
(1) of subdivision (a) of Section 44275, when determining the grant
amount for a project or project category.
(B) Shall, for the meeting approving funding for the project or
project category, include in its agenda or supporting materials a
brief statement of the rationale for funding that source category,
including the basis for selection and the importance of that project
type.
(b) Only covered emission reductions occurring in this state shall
be included in the cost-effectiveness determination. The extent to
which emissions generated at sea contribute to air quality in
California nonattainment areas shall be incorporated into these
methodologies based on a reasonable assessment of currently available
information and modeling assumptions.
(c) The state board shall develop protocols for calculating the
surplus covered emission reductions in California from representative
project types over the life of the project.
(d) The cost of the covered emission reduction is the amount of
the grant from the program, including matching funds provided
pursuant to subdivision (e) of Section 44287, plus any other
state funds, or funds under the district's budget authority or
fiduciary control, provided toward the project, or
funding provided pursuant to paragraph (2) of subdivision (d) of
Section 41081 or subdivision (b) of Section 44229, not
including funds described in paragraphs (1) and (2) of
subdivision (a) of Section 44287.2. The state board shall
establish reasonable methodologies for evaluating project
cost-effectiveness, consistent with the definition contained in
paragraph (4) of subdivision (a) of Section 44275, and with accepted
methods, taking into account a fair and reasonable discount rate or
time value of public funds.
(e) A grant shall not be made that, net of taxes, provides the
applicant with funds in excess of the incremental cost of the
project. Incremental lease costs may be capitalized according to
guidelines adopted by the state board so that these incremental costs
may be offset by a one-time grant award.
(f) Funds under a district's budget authority or fiduciary control
may be used to pay for the incremental cost of energy or
liquid or gaseous fuel, other than standard gasoline or diesel, which
is integral to a covered emission reducing technology that is part
of a project receiving grant funding under the program. The fuel
shall be approved for sale by the state board.
in the state. The incremental energy or fuel
cost over the expected lifetime of the vehicle may be offset by the
district if the project as a whole, including the incremental
energy or fuel cost, meets all of the requirements of this
chapter, including the maximum allowed cost-effectiveness. The state
board shall develop an appropriate methodology for converting
incremental energy or fuel costs over the vehicle lifetime
into an initial cost for the purposes of determining project
cost-effectiveness. Incremental energy or fuel costs shall
not be included in project costs for fuels dispensed from any
facility that was funded, in whole or in part, from the fund.
(g) For the purposes of determining any grant amount
pursuant to this chapter, the incremental cost of any new
purchase, retrofit, repower, or add-on equipment shall be reduced by
the value of any current financial incentive that directly reduces
the project price, including any tax credits or deductions, grants,
or other public financial assistance, not including funds described
in paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
Project project proponents applying for funding
shall be required to state in their application any other public
financial assistance to the project.
(h) For projects that would repower off-road equipment by
replacing uncontrolled diesel engines with new, certified diesel
engines, the state board may establish maximum grant award amounts
per repower. A repower project shall also be subject to the
incremental cost maximum pursuant to subdivision (e).
(i) After study of available emission reduction technologies and
costs and after public notice and comment, the state board may
reduce adjust the values of the maximum
grant award criteria stated in this section to improve the ability
of the program to achieve its goals. Every year the state board shall
adjust the maximum cost-effectiveness amount established in
subdivision (a) and any per-project maximum set by the state board
pursuant to subdivision (h) to account for inflation and other
economic factors, as determined by the state board .
(j) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 10. Section 44286 of the Health
and Safety Code is amended to read:
44286. (a) The responsibilities of the state board include
management of program funds and program oversight. The state board is
responsible for producing guidelines, protocols, and criteria for
covered vehicle projects and developing methodologies for evaluating
project cost-effectiveness in accordance with this chapter. The state
board shall have primary responsibility for the reporting aspects of
the program.
(b) The responsibilities of a district include local
administration of project funds, monitoring funded projects, and
reporting results to the state board, in accordance with this
chapter. Any project funds awarded to a successful applicant shall be
disbursed by the district.
(c) Relative to the allocation of funds in the south coast
district, for purposes of this program, Mobile Source Air Pollution
Reduction Review Committee funds shall only be used as matching funds
upon approval, by minute action, of the Mobile Source Air Pollution
Reduction Review Committee.
(d) The state board may reserve up to 10 percent of the program
funds available each year to directly fund any project described
in Section 44281 that is multidistrict in nature or the
state board determines contributes toward the achievement of state
air quality goals . A project that is multidistrict in nature
shall be funded by the state board in coordination with the
appropriate districts. The state board shall coordinate outreach
efforts with a participating district to ensure that any parallel
availability of a district grant and a grant from the state board is
clear to an eligible applicant. Reserved funds not committed to a
project funded directly by the state board by the end of the fiscal
year shall be made available to the districts in the following year.
(e) The commission, in consultation with the state board, shall
manage the Advanced Technology Account and the Infrastructure
Demonstration Program in accordance with this chapter.
(f) The state board shall work closely with the commission and the
districts for the duration of this program to maximize the ability
of the program to achieve its goals.
(g) The state board and the districts shall take all appropriate
and necessary actions to ensure that emissions reductions achieved
through the program are credited by the United States Environmental
Protection Agency to the appropriate emission reduction objectives in
the State Implementation Plan.
SEC. 11. Section 44287 of the Health
and Safety Code , as amended by Section 25 of
Chapter 401 of the Statutes of 2013, is amended to read:
44287. (a) The state board shall establish or update grant
criteria and guidelines consistent with this chapter for covered
vehicle and infrastructure projects as soon as
practicable, but not later than January 1, 2006.
July 1, 2017. The adoption of guidelines is exempt from
the rulemaking provisions of the Administrative Procedure Act,
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code. The state board shall solicit
input and comment from the districts during the development of the
criteria and guidelines and shall make every effort to develop
criteria and guidelines that are compatible with existing district
programs that are also consistent with this chapter. Guidelines shall
include protocols to calculate project cost-effectiveness. The grant
criteria and guidelines shall include safeguards to ensure that the
project generates surplus emissions reductions. Guidelines shall
enable and encourage districts to cofund projects that provide
emissions reductions in more than one district. The state board shall
make draft criteria and guidelines available to the public 45 days
before final adoption, and shall hold at least one public meeting to
consider public comments before final adoption. The state board may
develop separate guidelines and criteria for the different types of
eligible projects described in subdivision (a) of Section 44281.
(b) The state board, in consultation with the participating
districts, may propose revisions to the criteria and guidelines
established pursuant to subdivision (a) as necessary to improve the
ability of the program to achieve its goals. A proposed revision
shall be made available to the public 45 days before final adoption
of the revision and the state board shall hold at least one public
meeting to consider public comments before final adoption of the
revision.
(c) The state board shall reserve funds for, and disburse funds
to, districts from the fund for administration pursuant to this
section and Section 44299.1.
(d) The state board shall develop guidelines for a district to
follow in applying for the reservation of funds, in accordance with
this chapter. It is the intent of the Legislature that district
administration of any reserved funds be in accordance with the
project selection criteria specified in Sections 44281, 44282, and
44283 and all other provisions of this chapter. The guidelines shall
be established and published by the state board as soon as
practicable, but not later than January 1, 2006.
(e) Funds shall be reserved by the state board for administration
by a district that adopts an eligible program pursuant to this
chapter and offers matching funds at a ratio of one dollar ($1) of
matching funds committed by the district or the Mobile Source Air
Pollution Reduction Review Committee for every two dollars ($2)
committed from the fund. Funds available to the Mobile Source Air
Pollution Reduction Review Committee may be counted as matching funds
for projects in the South Coast Air Basin only if the committee
approves the use of these funds for matching purposes. Matching funds
may be any funds under the district's budget authority that are
committed to be expended in accordance with the program. Funds
committed by a port authority or a local government, in cooperation
with a district, to be expended in accordance with the program may
also be counted as district matching funds. Matching funds provided
by a port authority or a local government may
shall not exceed 30 percent of the total required matching
funds in any district that applies for more than three hundred
thousand dollars ($300,000) of the state board funds. Only a
district, or a port authority or a local government teamed with a
district, may provide matching funds.
(f) The state board may adjust the ratio of matching funds
described in subdivision (e), if it determines that an adjustment is
necessary in order to maximize the use of, or the air quality
benefits provided by, the program, based on a consideration of the
financial resources of the district.
(g) Notwithstanding subdivision (e), a district need not provide
matching funds for state board funds allocated to the district for
program outreach activities pursuant to paragraph (4) of subdivision
(a) of Section 44299.1.
(h) A district may include within its matching funds a reasonable
estimate of direct or in-kind costs for assistance in providing
program outreach and application evaluation. In-kind and direct
matching funds shall not exceed 15 percent of the total matching
funds offered by a district. A district may also include within its
matching funds any money spent on or after February 25, 1999, that
would have qualified as matching funds but were not previously
claimed as matching funds.
(i) A district desiring a reservation of funds shall apply to the
state board following the application guidelines established pursuant
to this section. The state board shall approve or disapprove a
district application not later than 60 days after receipt. Upon
approval of any district application, the state board shall
simultaneously approve a reservation of funding for that district to
administer. Reserved funds shall be disbursed to the district so that
funding of a district-approved project is not impeded.
(j) Notwithstanding any other provision of this chapter, districts
and the Mobile Source Air Pollution Reduction Review Committee shall
not use funds collected pursuant to Section 41081 or Chapter 7
(commencing with Section 44220), or pursuant to Section 9250.11 of
the Vehicle Code, as matching funds to fund a project with stationary
or portable engines, locomotives, or marine vessels.
(k)
(j) Any funds reserved for a district by the state
board pursuant to this section are available for
disbursement to the district for a period of not more than two
years from the time of reservation. Funds not expended
liquidated by a district by June 30 of the
second fourth calendar year following
the date of the reservation shall revert back to the state
board as of that June 30, and shall be deposited in the fund for use
by the program. The funds may then be redirected based on
applications to the fund. Regardless of any reversion of funds back
to the state board, the district may continue to request other
reservations of funds for local administration. be
returned to the state board within 90 days for future allocation
pursuant to this chapter. Each reservation of funds shall be
accounted for separately, and unused funds from each application
shall revert back to the state board for use pursuant to this
chapter as specified in this subdivision.
( l )
(k) The state board shall specify a date each year when
district applications are due. If the eligible applications received
in any year oversubscribe the available funds, the state board shall
reserve funds on an allocation basis, pursuant to Section 44299.2.
The state board may accept a district application after the due date
for a period of months specified by the state board. Funds may be
reserved in response to those applications, in accordance with this
chapter, out of funds remaining after the original reservation of
funds for the year.
(m)
(l) Guidelines for a district application shall require
information from an applicant district to the extent necessary to
meet the requirements of this chapter, but shall otherwise minimize
the information required of a district.
(n)
(m) A district application shall be reviewed by the
state board immediately upon receipt. If the state board determines
that an application is incomplete, the applicant shall be notified
within 10 working days with an explanation of what is missing from
the application. A completed application fulfilling the criteria
shall be approved as soon as practicable, but not later than 60
working days after receipt.
(o)
(n) The commission, in consultation with the districts,
shall establish project approval criteria and guidelines for
infrastructure projects consistent with Section 44284 as soon as
practicable, but not later than February 15, 2000. The commission
shall make draft criteria and guidelines available to the public 45
days before final adoption, and shall hold at least one public
meeting to consider public comments before final adoption.
(p)
(o) The commission, in consultation with the
participating districts, may propose revisions to the criteria and
guidelines established pursuant to subdivision (o) as necessary to
improve the ability of the program to achieve its goals. A revision
may be proposed at any time, or may be proposed in response to a
finding made in the annual report on the program published by the
state board pursuant to Section 44295. A proposed revision shall be
made available to the public 45 days before final adoption of the
revision and the commission shall hold at least one public meeting to
consider public comments before final adoption of the revision.
(q)
(p) Unclaimed funds will be allocated by the state
board in accordance with Section 44299.2.
(r)
(q) This section shall remain in effect only until
January 1, 2024, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2024, deletes or
extends that date.
SEC. 12. Section 44287.1 of the Health
and Safety Code is amended to read:
44287.1. (a) The state board shall, at its first opportunity,
revise the grant criteria and guidelines adopted pursuant to Section
44287 to incorporate projects in which an applicant turns in nonroad
internal combustion technology and equipment that the applicant owns
and that still has some useful life, coupled with the purchase of new
nonroad zero-emission technology and equipment that is in a similar
category or that can perform the same work.
(b) When it evaluates the benefits of a project described in
subdivision (a), the state board shall count both of the following
emission reduction streams, provided that they are real, enforceable,
quantifiable, and surplus emission reductions:
(1) The displacement of the emissions from the older nonroad
internal combustion technology and equipment for its remaining life
with the new nonroad zero-emission technology and equipment.
(2) After the time period specified in paragraph (1), the
displacement of emissions from new nonroad internal combustion
technology and equipment meeting the emission standards in place at
time of purchase, with the new nonroad zero-emission technology and
equipment over its remaining life.
(c) A project described in subdivision (a) shall meet the
cost-effectiveness criteria in Section 44283 and all other criteria
of the program, including the requirement that the emission
reductions be real, enforceable, quantifiable, and surplus.
(d) The incremental cost of a project described in subdivision (a)
may include, at the discretion of the applicant, some or all of the
reasonable salvage value of the nonroad internal combustion
technology and equipment turned in, as determined by the state
board, and some or all of any additional costs incurred for
necessary recharging equipment or infrastructure as determined by the
state board. However, an applicant that elects to include
these costs shall be required to meet the cost-effectiveness criteria
in Section 44283.
SEC. 13. Section 44287.2 of the Health
and Safety Code is amended to read:
44287.2. (a) By July 1, 2011, 2017,
the state board shall revise project grant criteria and guidelines
pursuant to Section 44287 , for a project that reduces
greenhouse gas emissions, to allow funds from all
of the following programs or f ederal,
state, and local programs or other public funding sources to be
used for a project also funded under this chapter without those
additional public funds being factored into the criteria emission
reduction cost-effectiveness calculations:
calculations, if the projects are eligible under those programs and
meet all criteria associated with those funding sources. Those other
projects include, but are not limited to, any of the following:
(1) Federal funding from programs designed to reduce greenhouse
gas emissions.
(2) Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9).
(2) State and local funding from programs designed to reduce
greenhouse gas emissions, including the Greenhouse Gas Reduction
Fund, created pursuant to Section 16428.8 of the Government Code, and
the Alternative and Renewable Fuel and Vehicle Technology Program
(Article 2 (commencing with Section 44272) of Chapter 8.9).
(3) Funding from programs designed to support energy diversity.
(4) Funding from programs that are intended to provide covered
emissions reductions but do not require those reductions to be able
to be credited to the state implementation plan.
(b) Nothing in this section authorizes the expenditure of funds
for a project that does not meet all of the requirements of this
chapter, including requirements that require cost sharing or the
matching of funds. Subdivision (a) does not apply if
the additional expenditure would not provide an incremental
greenhouse gas emission reduction benefit greater than what would
otherwise be achieved by the program. The state board shall not
exclude funds from the cost-effectiveness calculation pursuant to
subdivision (a), if excluding those funds would reduce the emission
reduction benefits expected to be achieved from this chapter, federal
greenhouse gas emission reduction programs, or the Alternative and
Renewable Fuel and Vehicle Technology Program. The sum
of the total grants shall not exceed the project cost. The covered
emissions reductions paid for pursuant to this chapter shall not be
claimed by the other funding sources.
(c) Subdivision (a) shall not apply to funds used pursuant to
paragraph (2) of subdivision (d) of Section 41081 or subdivision (b)
of Section 44229.
SEC. 14. Section 44288 of the Health
and Safety Code is amended to read:
44288. (a) An application for a project grant shall be reviewed
by the administering district immediately upon receipt. If the
administering district determines that an application is incomplete,
the applicant shall be notified within five
30 working days with an explanation of what is missing from the
application. The date and time of receipt of each application
determined to be complete shall be recorded and the completed
application shall be evaluated with respect to the appropriate
project selection criteria. A district shall make every effort to
process an application and grant an award rapidly and to coordinate
project approval with any purchase or installation timing constraint
on an applicant. Notwithstanding any other provision of this chapter,
the administering district may determine that an application is not
in good faith, not credible, or not in compliance with this chapter
and its objectives.
(b) A participating district may request assistance from the state
board on an as needed as-needed basis
to clarify project evaluation protocols or to obtain information
necessary to properly evaluate an application.
(c) An application for a grant for an infrastructure project shall
be reviewed by the commission immediately upon receipt. If the
commission determines that an application is incomplete, the
applicant shall be notified within five working days with an
explanation of what is missing from the application. The date and
time of receipt of each application determined to be complete shall
be recorded and the completed application shall be evaluated with
respect to the appropriate project selection criteria. A complete
grant application fulfilling the project selection criteria shall be
approved as soon as practicable, but not later than 60 working days
after receipt. Notwithstanding any other provision of this chapter,
the commission may determine that an application is not in good
faith, not credible, or not in compliance with this chapter and its
objectives. The commission shall expedite the processing of an
application and shall grant an award as rapidly as possible.
(d) Funds shall be awarded in conjunction with the execution of a
contract that obligates the state board or a participating district
to make the grant and obligates the grantee to take the actions
described in the grant application. A contract shall incorporate the
recapturing provisions contained in subdivision (c) of Section 44291.
SEC. 15. Section 44291 of the Health
and Safety Code is amended to read:
44291. (a) The state board shall assist districts with developing
procedures to monitor whether the emission reductions projected in
successful grant applications are actually achieved. Monitoring
procedures may include project audits, and may also include
requirements, as part of the
contract between the state board or districts and the grant
recipients, that each grant recipient provide information about the
project on an annual basis. Information required from grant
recipients should be minimized and the format for reporting the
information should be made simple and convenient.
(b) As soon as practicable, the commission,
state board, in consultation with the districts, shall
publish procedures to monitor and audit infrastructure projects.
These procedures shall ensure that the amount of qualifying fuel
dispensed annually is greater than or equal to the amount upon which
the grant award is based and that any project qualifying for funding
on the basis of public accessibility or limited public accessibility
is, in fact, providing that accessibility.
(c) The monitoring and auditing procedures shall be sufficient to
allow emission reductions generated to be fully credited to air
quality plans. The monitoring procedures shall contain provisions for
recapturing grant awards in proportion to any loss of emission
reductions or underachievement in dispensing qualifying fuel compared
with the reductions and fuel dispensing projected in the grant
application. Funds recaptured shall be deposited in the
accounts from which the funds were originally expended. From time to
time, monitoring Monitoring and auditing
procedures shall be revised as appropriate to enhance program
effectiveness.
(d) The state board shall monitor district programs to ensure that
participating districts conduct their programs consistent with the
criteria and guidelines established by the state board and the
commission pursuant to this chapter. The monitoring procedures shall
contain provisions for recapture return
of funds not yet awarded to approved projects if a district fails to
show that they are implementing a program consistent with the
approved program. If the state board determines, pursuant to this
subdivision, that moneys from the fund allocated to a district should
be recaptured, returned, the state
board shall hold at least one public meeting to consider public
comments prior to recapturing requiring the
return of the allocated funds. The state board shall make every
effort to assist districts to implement programs in an approved
manner and shall only recapture require the
return of allocated funds if these efforts fail to
address problems adequately. Recaptured
Returned funds shall be deposited in the Covered
Vehicle Account. fund. The state board shall not
recapture require the return of funds
already awarded to approved projects.
(e) Program funds recaptured as a result of a settlement agreement
executed by the state board shall be returned to the district that
provided the funds to the grant recipient. A penalty resulting from a
settlement agreement executed by the state board with a grant
recipient or from a civil action brought by the Attorney General
shall be deposited in the fund.
SEC. 16. Section 44299.1 of the Health
and Safety Code , as amended by Section 28 of
Chapter 401 of the Statutes of 2013, is amended to read:
44299.1. (a) To ensure that emission reductions are obtained as
needed from pollution sources, any moneys deposited in the fund for
use by the program or appropriated to the program shall be segregated
and administered as follows:
(1) Not more than 2 2.5 percent of
the moneys in the fund for use by the program shall be allocated to
program support and outreach costs incurred by the state board and
the commission directly associated with implementing the program
pursuant to this chapter. These funds shall be allocated to the state
board and the commission in proportion to total program funds
administered by the state board and the commission.
(2) Not more than 2 2.5 percent of
the moneys in the fund for use by the program shall be allocated to
direct program outreach activities. The state board may use these
funds for program outreach contracts or may allocate outreach funds
to participating districts in proportion to each district's
allocation from the program moneys in the fund. The state board shall
report on the use of outreach funds in their reports to the
Legislature pursuant to Section 44295.
(3) The balance shall be deposited in the fund to be expended to
offset added costs of new very low or zero-emission vehicle
technologies, and emission reducing repowers, retrofits, and add-on
equipment for covered vehicles and engines, and other projects
specified in Section 44281.
(b) Moneys in the fund shall be allocated to a district that
submits an eligible application to the state board pursuant to
Section 44287. The state board shall determine the maximum amount of
annual funding from the fund for use by the program that each
district may receive. This determination shall be based on the
population in each district as well as the relative importance of
obtaining covered emission reductions in each district, specifically
through the program.
(c) Not more than 5 6.25 percent of
the moneys allocated pursuant to this chapter to a district with a
population of one million or more may be used by the district for
indirect costs of implementation of the program, including outreach
costs that are subject to the limitation in paragraph (2) of
subdivision (a).
(d) Not more than 10 12.5 percent of
the moneys allocated pursuant to this chapter to a district with a
population of less than one million may be used by the district for
indirect costs of implementation of the program, including outreach
costs that are subject to the limitation in paragraph (2) of
subdivision (a).
(e) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 17. Section 44299.1 of the Health
and Safety Code , as amended by Section 29 of
Chapter 401 of the Statutes of 2013, is repealed.
44299.1. (a) To ensure that emission reductions are obtained as
needed from pollution sources, any moneys deposited in the fund for
use by the program or appropriated to the program shall be segregated
and administered as follows:
(1) Ten percent, not to exceed two million dollars ($2,000,000),
shall be allocated to the infrastructure demonstration project to be
used pursuant to Section 44284.
(2) Ten percent shall be deposited in the fund for use by the
program to be used to support research, development, demonstration,
and commercialization of advanced low-emission technologies for
covered sources that show promise of contributing to the goals of the
program.
(3) Not more than 2 percent of the moneys in the fund for use by
the program shall be allocated to program support and outreach costs
incurred by the state board and the commission directly associated
with implementing the program pursuant to this chapter. These funds
shall be allocated to the state board and the commission in
proportion to total program funds administered by the state board and
the commission.
(4) Not more than 2 percent of the moneys in the fund for use by
the program shall be allocated to direct program outreach activities.
The state board may use these funds for program outreach contracts
or may allocate outreach funds to participating districts in
proportion to each district's allocation from the fund for use by the
program. The state board shall report on the use of outreach funds
in their reports to the Legislature pursuant to Section 44295.
(5) The balance shall be deposited in the fund for use by the
program to be expended to offset added costs of new very low or
zero-emission vehicle technologies, and emission reducing repowers,
retrofits, and add-on equipment for covered vehicles and engines.
(b) Moneys in the fund for use by the program shall be allocated
to a district that submits an eligible application to the state board
pursuant to Section 44287. The state board shall determine the
maximum amount of annual funding from the fund for use by the program
that each district may receive. This determination shall be based on
the population in each district as well as the relative importance
of obtaining NOx reductions in each district, specifically through
the program.
(c) This section shall become operative on January 1, 2024.
SEC. 18. Section 44299.2 of the Health
and Safety Code is amended to read:
44299.2. Funds shall be allocated to districts, and shall be
subject to administrative terms and conditions as follows:
(a) Available funds shall be distributed to districts taking into
consideration the population of the area, the severity of the air
quality problems experienced by the population, and the historical
allocation of the program funds, except that the south coast district
shall be allocated a percentage of the total funds available to
districts that is proportional to the percentage of the total state
population residing within the jurisdictional boundaries of that
district. For the purposes of this subdivision, population shall be
determined by the state board based on the most recent data provided
by the Department of Finance. The allocation to the south coast
district shall be subtracted from the total funds available to
districts. Each district, except the south coast district, shall be
awarded a minimum allocation of two hundred thousand dollars
($200,000), and the remainder, which shall be known as the
"allocation amount," shall be allocated to all districts as follows:
(1) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the percentage of the total
residual state population that resides within each district's
boundaries. For purposes of this paragraph, "total residual state
population" means the total state population, less the total
population that resides within the south coast district.
(2) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the severity of the air
quality problems to which each district's population is exposed. The
severity of the exposure shall be calculated as follows:
(A) Each district shall be awarded severity points based on the
district's attainment designation and classification, as most
recently promulgated by the federal Environmental Protection Agency
for the National Ambient Air Quality Standard for ozone averaged over
eight hours, as follows:
(i) A district that is designated attainment for the federal
eight-hour ozone standard shall be awarded one point.
(ii) A district that is designated nonattainment for the federal
eight-hour ozone standard shall be awarded severity points based on
classification. Two points shall be awarded for transitional, basic,
or marginal classifications, three points for moderate
classification, four points for serious classification, five points
for severe classification, six points for severe-17 classification,
and seven points for extreme classification.
(B) Each district shall be awarded severity points based on the
annual diesel particulate emissions in the air basin, as determined
by the state board. One point shall be awarded to the district, in
increments, for each 1,000 tons of diesel particulate emissions. In
making this determination, 0 to 999 tons shall be awarded no points,
1,000 to 1,999 tons shall be awarded one point, 2,000 to 2,999 tons
shall be awarded two points, and so forth. If a district encompasses
more than one air basin, the air basin with the greatest diesel
particulate emissions shall be used to determine the points awarded
to the district. The San Diego County Air Pollution Control District
and the Imperial County Air Pollution Control District shall be
awarded one additional point each to account for annual diesel
particulate emissions transported from Mexico.
(C) The points awarded under subparagraphs (A) and (B), shall be
added together for each district, and the total shall be multiplied
by the population residing within the district boundaries, to yield
the local air quality exposure index.
(D) The local air quality exposure index for each district shall
be summed together to yield a total state exposure index. Funds shall
be allocated under this paragraph to each district in proportion to
its local air quality exposure index divided by the total state
exposure index.
(3) The state board shall distribute 30 percent of the allocation
amount to the districts in proportion to the allocation of funds from
the program moneys in the fund, as follows:
(A) Because each district is awarded a minimum allocation pursuant
to subdivision (a), there shall be no additional minimum allocation
from the program historical allocation funds. The total amount
allocated in this way shall be subtracted from total funding
previously awarded to the district under the program, and the
remainder, which shall be known as directed funds, shall be allocated
pursuant to subparagraph (B).
(B) Each district with a population that is greater than or equal
to 1 percent of the state's population shall receive an additional
allocation based on the population of the district and the district's
relative share of emission reduction commitments in the state
implementation plan to attain the National Ambient Air Quality
Standard for ozone averaged over one hour. This additional allocation
shall be calculated as a percentage share of the directed funds for
each district, derived using a ratio of each district's share amount
to the base amount, which shall be calculated as follows:
(i) The base amount shall be the total program funds allocated by
the state board to the districts in the 2002-03 fiscal year, less the
total of the funds allocated through the minimum allocation to each
district in the 2002-03 fiscal year.
(ii) The share amount shall be the allocation that each district
received in the 2002-03 fiscal year, not including the minimum
allocation. There shall be one share amount for each district.
(iii) The percentage share shall be calculated for each district
by dividing the district's share amount by the base amount, and
multiplying the result by the total directed funds available under
this subparagraph.
(b) Funds shall be distributed as expeditiously as reasonably
practicable, and a report of the distribution shall be made available
to the public.
(c) All funds allocated pursuant to this section shall be expended
as provided in the guidelines adopted pursuant to Section 44287
within two years from the date of allocation. Funds not expended
within the two years shall be returned to the program moneys in the
fund within 60 days and shall be subject to further allocation as
follows:
(1) Within 30 days of the deadline to return funds, the state
board shall notify the districts of the total amount of returned
funds available for reallocation, and shall list those districts that
request supplemental funds from the reallocation and that are able
to expend those funds within one year.
(2) Within 90 days of the deadline to return funds, the state
board shall allocate the returned funds to the districts listed
pursuant to paragraph (1).
(3) All supplemental funds distributed under this subdivision
shall be expended consistent with the program within one year of the
date of supplemental allocation. Funds not expended within one year
shall be returned to the program moneys in the fund and shall be
distributed at the discretion of the state board to districts, taking
into consideration each district's ability to expeditiously utilize
the remaining funds consistent with the program.
(d) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
(c) All funds allocated pursuant to this section shall be
liquidated as provided for in the guidelines adopted pursuant to
Section 44287 by June 30 four years following the year of allocation.
Funds not liquidated within the four years shall be returned to the
state board within 90 days for future allocation pursuant to this
chapter.
SECTION 1. It is the intent of the Legislature
to enact legislation to amend the Carl Moyer Memorial Air Quality
Standards Attainment Program (Chapter 9 (commencing with Section
44275) of Part 5 of Division 26 of the Health and Safety Code) to
achieve even greater air quality benefits.