BILL ANALYSIS
SB 1340
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2009-2010 Regular Session
BILL NO: SB 1340
AUTHOR: Kehoe
AMENDED: Introduced
FISCAL: Yes HEARING DATE: April 19, 2010
URGENCY: No CONSULTANT: Caroll
Mortensen
SUBJECT : ENERGY: ALTERNATIVE FUELS AND VEHICLE
TECHNOLOGIES
SUMMARY :
Existing law , under the California Alternative and Renewable
Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act
of 2007 (Health and Safety Code 44270 et seq.):
1) Contains general provisions relating to both the
Alternative and Renewable Fuel and Vehicle Technology
Program and the Air Quality Improvement Program that:
a) Defines "full fuel-cycle assessment" to be an
evaluation and comparison of environmental and health
impacts in the life cycle of fuel, including certain
matters (e.g., feedstock production, fuel production,
and vehicle operation).
b) Authorizes the State Energy Resources Conservation
and Development Commission (CEC) and the State Air
Resources Board (ARB) to determine definitions of terms
used for the programs and to identify revenue streams
for programs.
c) Provides that for purposes of both programs, eligible
projects cannot include those required to be undertaken
pursuant to state or federal law.
2) Creates the Alternative and Renewable Fuel and Vehicle
Technology Program that:
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a) Requires the CEC to provide competitive grants,
revolving loans, loan guarantees, or loans to certain
interests (e.g., public agencies, businesses, fleet
owners, consumers) to develop and deploy innovative
technologies that change the state's fuel and vehicle
types to help attain the state's climate change
policies. (44272(a)).
b) Requires the CEC to provide preferences to those
projects maximizing the program goals based on certain
project criteria (e.g., consistency with climate change
policy, ability to reduce criteria air pollutants and
air toxics, provide nonstate matching funds).
(44272(c)).
c) Lists projects eligible for funding under the
program.
d) Provides single source contract authority.
e) Provides funding through various fees.
3) Under the California Global Warming Solutions Act of 2006
(CGWSA) (Health and Safety Code 38500 et seq.):
a) Requires the ARB to determine the 1990 statewide
greenhouse gas (GHG) emissions level and approve a
statewide GHG emissions limit that is equivalent to that
level, to be achieved by 2020, and sets various
requirements to meet this requirement.
b) Requires ARB to develop a "Scoping Plan" that
provides guidelines on achieving GHG reductions.
This bill :
1)Clarifies that funding from the Alternative and Renewable
Fuel and Vehicle Technology Program may be made available to
homeowners of electric vehicles to retrofit their electrical
sources for an in-home charging station.
2)Deletes an obsolete reference.
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COMMENTS :
1) Purpose of Bill . According to the author, "Currently the
Alternative and Renewable Fuel and Vehicle Technology
Program does not have a program set up to address the needs
of plug-in electric vehicles (PEV's) or plug-in hybrid
electric vehicle (PHEV's) owners who will have to have
their homes (garage to power-box) upgraded to handle the
additional power needs of these vehicles to properly and
safely charge them."
2) Background . The Alternative and Renewable Fuel and Vehicle
Technology Program authorizes the CEC to develop and deploy
alternative and renewable fuels and advanced transportation
technologies to help attain the state's climate change
policies. CEC has an annual program budget of
approximately $100 million to support projects that:
Develop and improve alternative and renewable
low-carbon fuels.
Optimize alternative and renewable fuels for existing
and developing engine technologies.
Produce alternative and renewable low-carbon fuels in
California.
Decrease, on a full fuel cycle basis, the overall
impact and carbon footprint of alternative and renewable
fuels and increase sustainability.
Expand fuel infrastructure, fueling stations, and
equipment.
Improve light-, medium-, and heavy-duty vehicle
technologies.
Retrofit medium- and heavy-duty on-road and non-road
vehicle fleets.
Expand infrastructure connected with existing fleets,
public transit, and transportation corridors.
Establish workforce training programs, conduct public
education and promotion, and create technology centers.
The funds come from additonal fees on vehicle and vessel
registrations as well as $10 million from The Public
Interest Research, Development and Demonstration Fund.
The December 2008 ARB Scoping Plan identified on-road
transportation as the single largest sector responsible for
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California GHG emissions representing 36% of all emissions.
A 2010 Public Policy Institute of California study, Climate
Change Challenges, Vehicle Emissions and Public Health in
California, concluded that increased use of battery-electric
vehicles would provide the greatest public health benefit
per unit of GHG emission reduction among the possible
alternative fueling and vehicle technologies on the horizon.
The report also notes, however, that electric vehicles
involve "high cost and uncertainty" because they "depend on
technological breakthroughs and broader market penetration
to reduce cost and meet performance targets."
1) Clarification . CEC does not currently have an electrical
vehicle upgrade program in place. The Alternative and
Renewable Fuel and Vehicle Technology Program provides that
"Alternative and renewable fuel infrastructure, fueling
stations, and equipment" shall be eligible for funding
under this program. Alternative and renewable fuel
projects include "electricity, ethanol, dimethyl ether,
renewable diesel, natural gas, hydrogen, and biomethane
among others." Taken together, it would seem that CEC
currently has the authority to create a program such as the
one in this bill. This bill clarifies that cost offsets
for in-home charging stations are an eligible expense.
2) Recommendations . The author may wish to amend line 1-13,
page 5 to read, "A cost-effective program to provide
funding for homeowners who purchase a plug-in electric
vehicle to offset costs associated with modifying
electrical sources to include an in-home a residential
plug-in electric vehicle charging station" for
clarification purposes.
3) Related legislation . AB 1304 (Saldana, 2009) would have
exempted the sale, storage, use, or other consumption of
electric vehicles from sales tax until January 1, 2015.
(Held in Assembly Appropriations Committee.)
4) Previous Committee . SB 1340 was approved by the Senate
Transportation and Housing Committee on April 6, 2010
(6-1).
SOURCE : Senator Kehoe
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SUPPORT : California Air Pollution Control Officer's
Association, Bay Area Quality Management
District, Nissan North America, Sierra Club
California
OPPOSITION : None on file