BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 400|
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THIRD READING
Bill No: SB 400
Author: Corbett (D)
Amended: 6/1/09
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-4, 4/21/09
AYES: Lowenthal, DeSaulnier, Kehoe, Oropeza, Pavley,
Simitian
NOES: Huff, Ashburn, Harman, Hollingsworth
NO VOTE RECORDED: Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Green vehicles
SOURCE : Author
DIGEST : This bill makes the manufacture of "California
green vehicles," which the bill defines, eligible for
subsidies under the California Alternative Energy and
Advanced Transportation Financing Authority's program.
ANALYSIS : In 2006, the Legislature passed and the
Governor signed
AB 32 (Nunez and Pavley), Chapter 488, Statutes of 2006 to
establish a statewide greenhouse gas (GHG) emissions limit
such that by 2020 California reduces its GHG
emissions to the level they were in 1990.
Alternative and Renewable Fuel and Vehicle Technology
CONTINUED
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Program
AB 118 (Nunez), Chapter 750, Statutes of 2007, created the
Alternative and Renewable Fuel and Vehicle Technology
Program, which the California Energy Commission (CEC)
administers to provide, upon appropriation by the
Legislature, grants, revolving loans, loan guarantees,
loans, or other appropriate funding measures to public
agencies, vehicle consortia, businesses, consumers,
recreational boaters, and academic institutions to develop
and deploy innovative technologies that transform
California fuel and vehicle types to help attain the
state's climate change policies.
Funding of approximately $120 million annually for this
program comes from additional fees on vehicle
registrations, special identification plates for various
vehicles, and vessel registrations, plus $10 million
annually from the Public Interest Research, Development,
and Demonstration Fund, which is derived from a portion of
electric utility rates.
The CEC, through a competitive process, will allocate these
funds to alternative fuel and vehicle technology projects.
To set priorities for the allocation of funds, the CEC must
develop an investment plan in consultation with a wide
array of stakeholders. The CEC expects to adopt its
investment plan at its April 22, 2009 meeting.
Existing law makes the following projects eligible for
funding under the Alternative and Renewable Fuel and
Vehicle Technology Program:
1. Projects to develop and improve vehicle technology that
provide for better fuel efficiency and lower greenhouse
gas emissions, including technology related to advanced
internal combustions engines with a
40 percent or better efficiency level over the current
market standard.
2. Alternative and renewable fuel projects to develop,
improve, demonstrate, deploy, produce, and commercialize
alternative and renewable fuels.
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3. Alternative and renewable fuel infrastructure, fueling
stations, and equipment.
4. Vehicle retrofit projects to create higher fuel
efficiencies.
5. Infrastructure projects that promote alternative and
renewable fuel infrastructure development for existing
fleets, public transit, and existing transportation
corridors.
6. Workforce training programs related to alternative fuels
and vehicle technology.
7. Block grants administered by not-for-profit technology
consortia for specified purposes.
This bill includes, on the list of included technologies in
the definition of advanced transportation technologies,
"California green vehicles," which it defines as vehicles
that meet either of the following criteria:
1. Meets or exceeds the California advanced technology
partial zero-emission vehicle standard and has a fuel
economy rating of 45 miles per gallon or greater.
2. Meets or exceeds California super ultralow emission
vehicle standard and the federal low-emission vehicle
evaporative emission standard (e.g., the Toyota
Highlander Hybrid).
Comments
Purpose of the bill . The author introduced this bill to
provide incentives to companies to manufacture "green
vehicles" in California.
The author's district includes Fremont where New United
Motor Manufacturing, Inc. (NUMMI), a vehicle manufacturing
plant, is located. NUMMI is a private company that is a
joint venture of General Motors (GM) and the Toyota Motor
Corporation that they established in the 1980s at the site
of an existing GM plant. NUMMI manufactures both GM and
Toyota vehicles.
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The author notes that while Detroit is reeling,
California's own car manufacturing sector is in jeopardy.
The author states that NUMMI, California's only car
manufacturer, missed out on the opportunity to be Toyota's
first United States manufacturer of the Prius. Tesla
Motors, an electric car manufacturer, had considered
locating its manufacturing plant in San Jose, but now plans
are on hold. She states that these two examples represent
thousands of high-paying green jobs.
The author further points out that while there are federal
tax incentives for customers to buy green cars and
California has issued 85,000 permits to allow green cars to
drive in the state's carpool lanes, the state offers little
incentive for companies to manufacture these cars here.
This bill creates
such incentives to create jobs during difficult economic
times.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
JJA:mw 6/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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