Amended in Senate April 21, 2014

Amended in Senate March 24, 2014

Senate Bill No. 1204

Introduced by Senators Lara and Pavley

February 20, 2014

An act to add Section 39719 to the Health and Safety Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 1204, as amended, Lara. California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program.

Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, commonly known as cap and trade revenues, to be deposited in the Greenhouse Gas Reduction Fund, and to be used, upon appropriation by the Legislature, for specified purposes.

This bill would create the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, to be funded from cap and trade revenues, to fund zero- and near-zero emission truck, bus, and off-road vehicle and equipment begin delete technology end delete begin insert technologies end insert and related projects, as specified, with begin delete preference end delete begin insert priority end insert to be given to begin insert certain projects, including end insert projects begin delete in end delete begin insert that benefit end insert disadvantaged communities. The program would be administered by the state board, in conjunction with the State Energy Resources Conservation and Development Commission. begin insert The bill would require the state board, in consultation with the commission, to create a multiyear framework and plan, and to adopt guidelines for implementation of the program. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 39719 is added to the Health and Safety
Code, to read:

39719.  

(a) The California Clean Truck, Bus, and Off-Road
Vehicle and Equipment Technology Program is hereby created,
to be administered by the state board in conjunction with the State
Energy Resources Conservation and Development Commission.
The program, from moneys appropriated from the fund for purposes
of the program, shall fund development, demonstration, begin delete pilot
deployment, end delete begin insert precommercial pilot, end insert and begin insert early end insert commercial
deployment of zero- and near-zero emission truck, bus, and off-road
vehicle and equipment technologies. Priority shall be given to
projects located in disadvantaged communities pursuant to the
requirements of Sections 39711 and 39713.

begin delete

(b) The program shall fund projects in each of the following
areas:

(1) Zero- and near-zero emission medium- and heavy-duty truck
technology development, demonstration, and pilot deployment.

(2) Zero- and near-zero emission buses. The program shall fund
pilot deployments to demonstrate operation of large numbers of
clean buses in a real world setting, to showcase the following
issues: (A) these vehicles can make direct impacts in disadvantaged
communities, (B) transit operators are currently unable to
economically purchase vehicles of this type because of high costs
and technological uncertainty, which may be overcome through
large pilot deployments, and (C) zero- and near-zero emission
technologies in the bus context, once successfully demonstrated
on a large scale, may find applications in a wide variety of other
heavy-duty vehicles in addition to buses. In that connection, the
state board, in consultation with transit operators, shall develop
solicitations to fund at least two large scale zero- or near-zero
emission bus pilot deployment projects of between 10 and 40
buses, to be located in or near disadvantaged communities.

(3) Development, demonstration, and pilot deployment of zero-
and near-zero emission technologies to be used in off-road vehicles
and equipment, including, but not limited to, port equipment,
agricultural equipment, and marine and rail equipment.

(4) Development of commercially available zero- and near-zero
emission trucks, buses, and off-road vehicles and equipment using
streamlined purchase incentives pursuant to the California Hybrid
and Zero-Emission Truck and Bus Voucher Incentive Project
(HVIP). The state board shall create a multiyear framework and
plan for HVIP incentives. The plan shall focus on providing
incentives for zero- and near-zero emission medium- and
heavy-duty vehicles as they become commercially available. The
incentives shall be structured to drive acquisition volumes by
reducing payback times for these vehicles. The plan shall provide
long-term certainty about incentives while also remaining flexible
and open to new technologies. The plan shall also examine
opportunities to link HVIP vehicle funding with infrastructure
funding to provide coordinated funding for both vehicles and
related infrastructure. HVIP incentives for plug-in and
zero-emission vehicles in disadvantaged communities shall be
sufficient to increase sales of the cleanest vehicles in communities
where they are needed most.

end delete begin insert

(b) Projects funded by the program shall be limited to the
following:

end insert begin insert

(1) Market development, demonstration, precommercial pilots,
and early commercial deployments of zero- and near-zero medium-
and heavy-duty truck technology, including projects that help to
facilitate clean goods-movement corridors.

end insert begin insert

(2) Zero- and near-zero emission bus technology development,
demonstration, precommercial pilots, and early commercial
deployments, including pilots of multiple vehicles at one site or
region.

end insert begin insert

(3) Zero- and near-zero emission off-road vehicle and equipment
technology development, demonstration, precommercial pilots,
and early commercial deployments, including vehicles and
equipment in the port, agriculture, marine, construction, and rail
sectors.

end insert begin insert

(4) Purchase incentives, including point-of-sale, for
commercially available zero- and near-zero truck, bus, and
off-road vehicle and equipment technologies and fueling
infrastructure to support early market deployments of new
technologies and to increase manufacturer volumes and accelerate
market acceptance.

end insert begin insert

(c) The state board, in consultation with the Energy Resources
Conservation and Development Commission, shall develop
guidelines for the implementation of this section that are consistent
with the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500)) and this chapter.

end insert begin insert

(d) The guidelines adopted pursuant to subdivision (c) shall do
all of the following:

end insert begin insert

(1) Outline performance criteria and metrics for deployment
incentives. The goal shall be to design a simple and predictable
structure that provides incentives for truck, bus, and off-road
vehicle and equipment technologies that provide significant
greenhouse gas reduction and air quality benefits.

end insert begin insert

(2) Ensure that program investments are coordinated with
funding programs developed pursuant to Chapter 8.9 (commencing
with Section 44270) of Part 5.

end insert begin insert

(3) Promote projects that assist the state in reaching its climate
goals beyond 2020, consistent with Sections 38550 and 38551.

end insert begin insert

(4) Promote investments in medium- and heavy-duty trucking,
including, but not limited to, vocational trucks, short haul and
long haul trucks, buses, and off-road vehicles and equipment,
including, but not limited to, port equipment, agricultural
equipment, marine equipment, and rail equipment.

end insert begin insert

(5) Structure purchase incentives for eligible technologies to
be sufficient to increase sales of the cleanest vehicles in
disadvantaged communities.

end insert begin insert

(6) Allow for remanufactured and retrofitted vehicles to qualify
for purchase incentives if those vehicles meet warranty and
emissions requirements.

end insert begin insert

(7) Establish a competitive process for the allocation of funds
for projects funded pursuant to this program.

end insert begin insert

(8) Leverage, to the maximum extent feasible, federal or private
funding.

end insert begin insert

(9) Ensure that the results of emissions reductions or benefits
can be measured or quantified.

end insert begin insert

(10) Ensure that activities undertaken pursuant to this program
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminants.

end insert begin insert

(11) Establish sustainability goals to ensure that projects will
not adversely impact natural resources, especially with respect to
state and federal lands.

end insert begin insert

(e) Eligible projects to be funded by the program do not include
projects required to be undertaken pursuant to state or federal
law, district rules or regulations, memoranda of understanding
with a governmental entity, or other legally binding agreements.
The state board may, however, fund studies, technology
development, and demonstration projects focused on improving
performance and financial payback, multivehicle and commercial
scale deployments, and deployment of early commercially available
advanced vehicles and equipment.

end insert begin insert

(f) In evaluating potential projects to be funded pursuant to this
section, the state board shall give priority to projects that
demonstrate one or more of the following characteristics:

end insert begin insert

(1) Benefit to disadvantaged communities pursuant to Sections
39711 and 39713.

end insert begin insert

(2) The ability to leverage additional public and private funding.

end insert begin insert

(3) The potential for cobenefits or multiple-benefit attributes.

end insert begin insert

(4) The potential for the project to be replicated.

end insert begin insert

(5) Regional benefit, with focus on collaboration between
multiple entities.

end insert begin insert

(6) Support for technologies with broad market and emission
reduction potential.

end insert begin insert

(7) Support for projects addressing technology and market
barriers not addressed by other programs.

end insert begin insert

(8) Support for enabling technologies that benefit multiple
technology pathways.

end insert begin insert

(g) To assist in the implementation of this section, the state
board, in consultation with the Energy Resources Conservation
and Development Commission, shall create a multiyear framework
and plan. The framework and plan shall be developed with public
input and may utilize existing investment plan processes and
workshops as well as existing state and third-party research and
technology roadmaps. The framework and plan shall do all of the
following:

end insert begin insert

(1) Articulate an overarching vision for technology development,
demonstration, precommercial pilot, and early commercial
deployments, with a focus on moving technologies through the
commercialization process.

end insert begin insert

(2) Outline technology categories and performance criteria for
technologies and applications that may be considered for funding
under the program. This shall include technologies for medium-
and heavy-duty trucking, including, but not limited to, vocational
trucks, short haul and long haul trucks, buses, and off-road vehicles
and equipment, including, but not limited to, port equipment,
agricultural equipment, construction equipment, marine equipment,
and rail equipment.

end insert begin insert

(3) Describe the roles of the relevant agencies and the process
for coordination.

end insert begin insert

(h) For the purpose of this section, “zero- and near-zero
emission” means vehicles, fuels, and related technologies that
reduce greenhouse gas emissions and improve air quality when
compared with conventional or fully commercialized alternatives,
as defined by the state board in consultation with the Energy
Resources Conservation and Development Commission. “Zero-
and near-zero emission” may include, but is not limited to, zero
emission technology, enabling technologies that provide a pathway
to emission reductions, advanced or alternative fuel engines for
long haul trucks, and hybrid or alternative fuel technologies for
trucks and off-road equipment.

end insert