Amended in Assembly August 22, 2014

Amended in Assembly August 18, 2014

Amended in Assembly July 1, 2014

Amended in Senate May 6, 2014

Amended in Senate April 21, 2014

Senate Bill No. 1275

Introduced by Senator De León

(Coauthor: Senator Pavley)

(Coauthors: Assembly Members Bocanegra, Bonta, Garcia, Holden, and Ting)

February 21, 2014

An act to amend Section 44125 of, and to add Chapter 8.5 (commencing with Section 44258) to Part 5 of Division 26 of, the Health and Safety Code, relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

SB 1275, as amended, De León. Vehicle retirement and replacement: Charge Ahead California Initiative.

(1) Existing law creates an enhanced fleet modernization program for the retirement of high polluting vehicles to be administered by the Bureau of Automotive Repair pursuant to guidelines adopted by the State Air Resources Board. Existing law requires the program’s guidelines to be updated no later than June 30, 2015. Existing law requires the updated guidelines to ensure vehicle replacement be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired, as specified.

This bill would require the updated guidelines to ensure there be a mobility option, as defined, and that the compensation for a mobility option be no less than $2,500. The bill would authorize the state board to increase the amount of the mobility option as necessary to maximize the air quality benefits of the program while also ensuring participation by low-income motor vehicle owners, as specified. The bill also would require the updated guidelines to ensure the inclusion of car sharing, as specified.

(2) Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets to purchase hybrid and zero-emission trucks and buses.

This bill would establish the Charge Ahead California Initiative to be administered by the state board, in consultation with the State Energy Resources Conservation and Development Commission, air pollution control and air quality management districts, and the public. The bill would state that the goals of the initiative are to, among other things, place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and to increase access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles. The bill would require the state board to begin delete adopt, no later than June 30, 2015, a plan to meet the goals of the initiative, commencing in end delete begin insert include, commencing with the Air Quality Improvement Program funding plan for end insert the 2016-17 fiscal year, begin delete that includes establishing an estimate for the total funding necessary for specified programs and projects end delete begin insert a specified funding plan that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent 2 years commensurate with meeting the goals of the Charge Ahead California Initiative end insert ; to update the plan at least every 3 years through January 1, 2023; to adopt, no later than June 30, 2015, specified revisions to the criteria and other requirements for the Clean Vehicle Rebate Project; and to establish programs that further increase access to and direct benefits for disadvantaged, low-income, and moderate-income communities and consumers from electric transportation.

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.  

The Legislature finds and declares all of the
following:

(a) Seven of the 10 cities with the most severe air pollution in
the United States are in California. California has the largest
proportion of its population, over 40 percent, living close to or
near busy roadways and who may be exposed to an elevated risk
of air pollution and health impacts.

(b) California’s low-income and disadvantaged populations
continue to face disproportionate impacts from substandard air
quality in the form of higher rates of respiratory illnesses,
hospitalizations, and premature death. Climate change is expected
also to have disproportionate impacts on disadvantaged,
low-income, and other vulnerable communities in California.

(c) Residents and businesses annually spend more than $70
billion in transportation fuel bills.

(d) Cars and trucks are the single largest source of greenhouse
gas emissions in California. They also are the largest contributor
to air pollution that harms public health.

(e) Zero-emission and near-zero-emission vehicles, including
light-, medium-, and heavy-duty vehicles and buses, can improve
the health and welfare of all residents, especially those in lower
income households and disadvantaged communities, by reducing
air pollution and greenhouse gas emissions.

(f) California businesses stand to benefit from increased
deployment of zero-emission and near-zero-emission vehicles
through reduced fuel expenditures and reduced pollution exposure
to workers and communities.

(g) California attracts over half of the nation’s venture capital
for clean technology and ranks high among the states in the number
of workers and facilities supporting the clean vehicle and electric
vehicle industries.

(h) Automakers and truck manufacturers are in early
commercialization of zero-emission and near-zero-emission
vehicles, which can dramatically lower smog and greenhouse gas
emissions even when emissions from the production, distribution,
and refining of fuels and the generation of electricity are
considered.

(i) Electric utilities are providing clean renewable electricity in
increasing amounts to transportation customers throughout the
state. Charging-service providers are beginning to deploy electric
vehicle charging infrastructure throughout the state. Expanding
the market for zero-emission and near-zero-emission vehicles to
underserved markets in California is a priority.

(j) Low-carbon transportation has been identified as an eligible
investment under the Greenhouse Gas Reduction Fund Investment
Plan and Communities Revitalization Act (Chapter 4.1
(commencing with Section 39710) of Part 2 of Division 26 of the
Health and Safety Code). The act has identified low-carbon freight
transport and zero-emission passenger transportation as a
recommended area for investment.

(k) It is the goal of the state to place in service at least one
million zero-emission and near-zero-emission vehicles, including
cars, trucks, and buses, by January 1, 2023, and to establish a
self-sustaining zero-emission and near-zero-emission vehicle
market in which zero-emission and near-zero-emission vehicles
are a viable mainstream option for individual vehicle purchasers,
businesses, and public fleets.

(l) It is the goal of the state to increase access for disadvantaged,
low-income, and moderate-income communities and consumers
to zero-emission and near-zero-emission vehicles and to increase
the placement of those vehicles in those communities and with
those consumers in order to enhance the air quality, lower
greenhouse gases, and promote overall benefits for those
communities and consumers.

SEC. 2.  

Section 44125 of the Health and Safety Code is
amended to read:

44125.  

(a) No later than July 1, 2009, the state board, in
consultation with the bureau, shall adopt a program to commence
on January 1, 2010, that allows for the voluntary retirement of
passenger vehicles and light-duty and medium-duty trucks that are
high polluters. The program shall be administered by the bureau
pursuant to guidelines adopted by the state board.

(b) No later than June 30, 2015, the state board, in consultation
with the bureau, shall update the program established pursuant to
subdivision (a). The program shall continue to be administered by
the bureau pursuant to guidelines updated and adopted by the state
board.

(c) The guidelines shall ensure all of the following:

(1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the bureau.

(2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized under law.

(3) The program is available for high polluting passenger
vehicles and light-duty and medium-duty trucks that have been
continuously registered in California for two years prior to
acceptance into the program or otherwise proven to have been
driven primarily in California for the last two years and have not
been registered in another state or country in the last two years.
The guidelines may require a vehicle to take, complete, or pass a
smog check inspection.

(4) The program is focused where the greatest air quality impact
can be identified.

(5) (A) Compensation for retired vehicles shall be at least one
thousand five hundred dollars ($1,500) for a low-income motor
vehicle owner, as defined in Section 44062.1, and no more than
one thousand dollars ($1,000) for all other motor vehicle owners.

(B) Replacement or a mobility option may be an option for all
motor vehicle owners and may be in addition to compensation for
vehicles retired pursuant to subparagraph (A). For low-income
motor vehicle owners, as defined in Section 44062.1, compensation
toward a replacement vehicle or mobility option shall be no less
than two thousand five hundred dollars ($2,500). Compensation
toward a replacement vehicle for all other motor vehicle owners
shall not exceed compensation for low-income motor vehicle
owners.

(C) Compensation for either retired or replacement vehicles or
a mobility option for low-income motor vehicle owners may be
increased as necessary to maximize the air quality benefits of the
program while also ensuring participation by low-income motor
vehicle owners, as defined in Section 44062.1. Increases in
compensation amounts may be based on factors, including, but
not limited to, the age of the retired or replaced vehicle, the
emissions benefits of the retired or replaced vehicle, the emissions
impact of any replacement vehicle, participation by low-income
motor vehicle owners, as defined in Section 44062.1, and the
location of the vehicle in an area of the state with the poorest air
quality.

(6) Cost-effectiveness and impacts on disadvantaged and
low-income populations are considered. Program eligibility may
be limited on the basis of income to ensure the program adequately
serves persons of low or moderate income.

(7) Provisions that coordinate the vehicle retirement and
replacement and mobility option components of the program with
the vehicle retirement component of the bureau’s Consumer
Assistance Program, established pursuant to other provisions of
this chapter, to ensure vehicle owners participate in the appropriate
program to maximize emissions reductions.

(8) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.

(9) Specific steps to ensure the vehicle replacement and mobility
option component of the program is available in areas designated
as federal extreme nonattainment.

(10) A requirement that vehicles eligible for retirement have
sufficient remaining life. Demonstration of sufficient remaining
life may include proof of current registration, passing a recent
smog check inspection, or passing another test similar to a smog
check inspection.

(d) When updating the guidelines to the program established
pursuant to subdivision (a), the state board shall study and consider
all the following elements:

(1) Methods of financial assistance other than vouchers.

(2) An option for automobile dealerships or other used car sellers
to accept cars for retirement, provided the cars are dismantled
consistent with the requirements of the program.

(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.

(4) Increased emphasis on the replacement of high polluters
with cleaner vehicles or the increased use of public transit and car
sharing that results in the increased utilization of the vehicle
replacement and mobility option component of the program.

(5) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit and car
sharing use as a result of the program.

(6) Increased partnerships and outreach with community-based
organizations.

(e) For purposes of this section, the following terms have the
following meanings:

(1) “Car sharing” has the same definition as in Section 44258.

(2) “Mobility option” means a voucher for public transit or car
sharing.

SEC. 3.  

Chapter 8.5 (commencing with Section 44258) is added
to Part 5 of Division 26 of the Health and Safety Code, to read:

 

Chapter  8.5. Charge Ahead California Initiative

 

44258.  

For purposes of this chapter, the following terms have
the following meanings:

(a) “Car sharing” means a model of vehicle rental where users
can rent vehicles for short periods of time and users are members
that have been preapproved to drive.

(b) “Disadvantaged community” means a community identified
by the California Environmental Protection Agency pursuant to
Section 39711.

(c) “Near-zero-emission vehicle” means a vehicle that utilizes
zero-emission technologies, enables technologies that provide a
pathway to zero-emissions operations, or incorporates other
technologies that significantly reduce begin delete both end delete criteria pollutants begin insert , toxic
air contaminants, end insert and greenhouse gas emissions, as defined by
the state board in consultation with the State Energy Resources
Conservation and Development Commission consistent with
meeting the state’s mid- and long-term air quality standards and
climate goals.

(d) “Zero-emission vehicle” means a vehicle that produces no
emissions of begin delete carbon dioxide, carbon monoxide, hydrocarbons,
oxides of nitrogen, and particulates end delete begin insert criteria pollutants, toxic air
contaminants, and greenhouse gases end insert when stationary or operating,
as determined by the state board.

44258.4.  

(a) Any moneys utilized by this act from the
Greenhouse Gas Reduction Fund, established pursuant to Section
16428.8 of the Government Code, shall be consistent with the
appropriations processes and criteria established by the Greenhouse
Gas Reduction Fund Investment Plan and Communities
Revitalization Act (Chapter 4.1 (commencing with Section 39710)
of Part 2).

(b) The Charge Ahead California Initiative is hereby established
and shall be administered by the state board. The goals of this
initiative are to place in service at least 1,000,000 zero-emission
and near-zero-emission vehicles by January 1, 2023, to establish
a self-sustaining begin insert California market for end insert zero-emission and
near-zero-emission begin delete vehicle market end delete begin insert vehicles end insert in which zero-emission
and near-zero-emission vehicles are a viable mainstream option
for individual vehicle purchasers, businesses, and public fleets, to
increase access for disadvantaged, low-income, and
moderate-income communities and consumers to zero-emission
and near-zero-emission vehicles, and to increase the placement of
those vehicles in those communities and with those consumers to
enhance the air quality, lower greenhouse gases, and promote
overall benefits for those communities and consumers.

(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts,
and the public, shall do all of the following:

begin delete

(1) No later than June 30, 2015, adopt a plan to meet the goals
of the initiative established pursuant to subdivision (b),
commencing in the 2016-17 fiscal year, including establishing an
estimate for the total funding necessary for programs and projects
that include, but are not limited to, any of the following:

end delete begin insert

(1) (A) Include, commencing with the Air Quality Improvement
Program funding plan for the 2016-17 fiscal year, a funding plan
that includes the immediate fiscal year and a forecast of estimated
funding needs for the subsequent two fiscal years commensurate
with meeting the goals of this chapter. Funding needs may be
described as a range that identifies the projected high and low
funding levels needed for the two-year forecast period to contribute
to technology advancement, market readiness, and consumer
acceptance of zero- and near-zero-emission vehicle technologies.
The funding plan shall include a market and technology assessment
for each funded zero- and near-zero-emission vehicle technology
to inform the appropriate funding level, incentive type, and
incentive amount. The forecast shall include an assessment of when
a self-sustaining market is expected and how existing incentives
may be modified to recognize expected changes in future market
conditions.

end insert begin insert

(B) Projects included in the forecast may include, but are not
limited to, any of the following:

end insert begin delete

(A)

end delete

begin insert (i) end insert  The Clean Vehicle Rebate Project, established pursuant to
Section 44274.

begin delete

(B)

end delete

begin insert (ii) end insert  Light-duty zero-emission and near-zero-emission vehicle
deployment projects eligible under the Alternative and Renewable
Fuel and Vehicle Technology Program, established pursuant to
Article 2 (commencing with Section 44272) of Chapter 8.9.

begin delete

(C)

end delete

begin insert (iii) end insert  Programs adopted pursuant to paragraph (4).

(2) Update the plan required pursuant to paragraph (1) at least
every three years through January 1, 2023.

(3) No later than June 30, 2015, adopt revisions to the criteria
and other requirements for the Clean Vehicle Rebate Project,
established pursuant to Section 44274, to ensure begin delete all of end delete the
following:

(A) Rebate levels can be phased down in begin delete multiyear end delete increments
based on cumulative sales levels as determined by the state board.

(B) Eligibility is limited based on income.

(C) Consideration of the conversion to prequalification and
point-of-sale rebates or other methods to increase participation
rates.

(4) (A) Establish programs that further increase access to and
direct benefits for disadvantaged, low-income, and
moderate-income communities and consumers from electric
transportation, including, but not limited to, any of the following:

(i) Financing mechanisms, including, but not limited to, a loan
or loan-loss reserve credit enhancement program to increase
consumer access to zero-emission and near-zero-emission vehicle
financing and leasing options that can help lower expenditures on
transportation begin insert and prequalification or point-of-sale rebates or
other methods to increase participation rates among low- and
moderate-income consumers end insert .

(ii) Car sharing programs that serve disadvantaged communities
and utilize zero-emission and near-zero-emission vehicles.

(iii) Deployment of charging infrastructure in multiunit
dwellings in disadvantaged communities to remove barriers to
zero-emission and near-zero-emission vehicle adoption by those
who do not live in detached homes. begin insert This clause does not preclude
the Public Utilities Commission from acting within the scope of
its jurisdiction. end insert

(iv) Additional incentives for zero-emission, near-zero-emission,
or high-efficiency replacement vehicles or a mobility option
available to participants in the enhanced fleet modernization
program, established pursuant to Article 11 (commencing with
Section 44125) of Chapter 5.

(B) Programs implemented pursuant to this paragraph shall
provide adequate outreach to disadvantaged, low-income, and
moderate-income communities and consumers, including partnering
with community-based organizations.