BILL NUMBER: AB 857 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2015
AMENDED IN SENATE JUNE 23, 2015
AMENDED IN SENATE JUNE 16, 2015
AMENDED IN ASSEMBLY MAY 5, 2015
AMENDED IN ASSEMBLY APRIL 15, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Perea
(Coauthor: Assembly Member O'Donnell)
FEBRUARY 26, 2015
An act to amend Section 39719.2 of the Health and Safety Code,
relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
AB 857, as amended, Perea. California Clean Truck, Bus, and
Off-Road Vehicle and Equipment Technology Program.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of 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.
The California Clean Truck, Bus, and Off-Road Vehicle and
Equipment Technology Program, upon appropriation from the Greenhouse
Gas Reduction Fund, funds zero- and near-zero-emission truck, bus,
and off-road vehicle and equipment technologies and related projects,
as specified, with priority given to certain projects, including
projects that benefit disadvantaged communities. The program, until
January 1, 2018, requires no less than 20% of the funding made
available for the purposes of technology development, demonstration,
precommercial pilots, and early commercial deployments of zero- and
near-zero-emission medium- and heavy-duty truck technology support
early commercial deployment of existing zero- and near-zero-emission
heavy-duty truck technology.
This bill, between January 2, 2018, and January 1, 2023,
inclusive, annually would require no less than 50% or $100,000,000,
whichever is greater, of the moneys allocated for technology
development, demonstration, precommercial pilots, and early
commercial deployments of zero- and near-zero-emission medium- and
heavy-duty truck technology be allocated and spent to support the
commercial deployment of existing zero- and near-zero-emission
heavy-duty truck technology that meets or exceeds a specified
emission standard.
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 39719.2 of the Health and Safety Code is
amended to read:
39719.2. (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 the purposes of the program,
shall fund development, demonstration, precommercial pilot, and early
commercial deployment of zero- and near-zero-emission truck, bus,
and off-road vehicle and equipment technologies. Priority shall be
given to projects benefiting disadvantaged communities pursuant to
the requirements of Sections 39711 and 39713.
(b) Projects eligible for funding pursuant to this section
include, but are not limited to, the following:
(1) Technology development, demonstration, precommercial pilots,
and early commercial deployments of zero- and near-zero-emission
medium- and heavy-duty truck technology, including projects that help
to facilitate clean goods-movement corridors.
(A) Until January 1, 2018, no less than 20 percent of funding made
available for the purposes of this paragraph shall support early
commercial deployment of existing zero- and near-zero-emission
heavy-duty truck technology.
(B) (i) Between January 2, 2018, and January 1, 2023, inclusive,
annually no less than 50 percent or one hundred million dollars
($100,000,000), whichever is greater, of the moneys allocated for the
purposes of this paragraph shall be allocated and spent to support
the commercial deployment of existing zero- and near-zero-emission
heavy-duty truck technology that meets or exceeds an emission
standard of 0.02 grams per brake horsepower-hour oxides of nitrogen,
as described in the optional low oxides of nitrogen emission
standards in Section 1956.8 of Title 13 of the California Code of
Regulations.
(ii) (I) Beginning January 2, 2018, a heavy-duty truck with an
internal combustion engine receiving moneys appropriated pursuant to
this subparagraph shall not use a fuel with a carbon intensity of
greater than 79 percent of the carbon intensity of diesel, as defined
in the low-carbon fuel standard (Subarticle 7 (commencing with
Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division
3 of Title 17 of the California Code of Regulations), as of January
1, 2016.
(II) The state board may reduce the maximum fuel carbon intensity
permitted for the appropriation of moneys pursuant to this
subparagraph in subsequent years if the state board makes a finding
that a greater reduction is commercially feasible and the State
Energy Resources Conservation and Development Commission makes a
finding that there is a sufficient supply of renewable energy fuel
available. A reduction adopted pursuant to this subclause shall apply
prospectively to moneys awarded after the reduction is adopted by
the state board.
(ii) (I) Between January 2, 2018, and January 1, 2020, inclusive,
a heavy-duty truck with an internal combustion engine receiving
moneys appropriated pursuant to this subparagraph shall use not less
than 30 percent renewable fuel.
(II) Beginning January 2, 2020, a heavy-duty truck with an
internal combustion engine receiving moneys appropriated pursuant to
this subparagraph shall use not less than 50 percent renewable fuel.
(III) The state board may increase the minimum percentage of
renewable fuel required for the appropriation of moneys pursuant to
this subparagraph in subsequent years if the state board makes a
finding that a higher percentage is commercially feasible and the
State Energy Resources Conservation and Development Commission makes
a finding that there is a sufficient supply of renewable energy fuel
available. An increase adopted pursuant to this subclause shall apply
prospectively to moneys awarded after the increase is adopted by the
state board.
(III)
(IV) The percentage in effect at the time the moneys
are awarded to a heavy-duty truck with an internal combustion engine
pursuant to this subparagraph shall not change that award.
(IV)
(V) This subparagraph does not alter or affect, in any
way, the amount of credit or grants for which a low-carbon fuel
provider or truck operator is eligible pursuant to law.
(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.
(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, agricultural, marine, construction, and rail sectors.
(4) Purchase incentives, which may include point-of-sale, for
commercially available zero- and near-zero-emission truck, bus, and
off-road vehicle and equipment technologies and fueling
infrastructure to support early market deployments of alternative
technologies and to increase manufacturer volumes and accelerate
market acceptance.
(5) Projects that support greater commercial motor vehicle and
equipment freight efficiency and greenhouse gas emissions reductions,
including, but not limited to, advanced intelligent transportation
systems, autonomous vehicles, and other freight information and
operations technologies.
(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall develop
guidance through the existing Air Quality Improvement Program funding
plan process for the implementation of this section that is
consistent with the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500)) and this chapter.
(d) The guidance developed pursuant to subdivision (c) shall do
all of the following:
(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.
(2) Ensure that program investments are coordinated with funding
programs developed pursuant to the California Alternative and
Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction
Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(3) Promote projects that assist the state in reaching its climate
goals beyond 2020, consistent with Sections 38550 and 38551.
(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.
(5) Implement purchase incentives for eligible technologies to
increase the use of the cleanest vehicles in disadvantaged
communities.
(6) Allow for remanufactured and retrofitted vehicles to qualify
for purchase incentives if those vehicles meet warranty and emissions
requirements, as determined by the state board.
(7) Establish a competitive process for the allocation of moneys
for projects funded pursuant to this section.
(8) Leverage, to the maximum extent feasible, federal or private
funding.
(9) Ensure that the results of emissions reductions or benefits
can be measured or quantified.
(10) Ensure that activities undertaken pursuant to this section
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminants.
(e) 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:
(1) Benefit disadvantaged communities pursuant to Sections 39711
and 39713.
(2) The ability to leverage additional public and private funding.
(3) The potential for cobenefits or multiple-benefit attributes.
(4) The potential for the project to be replicated.
(5) Regional benefit, with focus on collaboration between multiple
entities.
(6) Support for technologies with broad market and emissions
reduction potential.
(7) Support for projects addressing technology and market barriers
not addressed by other programs.
(8) Support for enabling technologies that benefit multiple
technology pathways.
(f) In the implementation of this section, the state board, in
consultation with the State Energy Resources Conservation and
Development Commission, shall create an annual 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:
(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.
(2) Outline technology categories, performance criteria, and
required mandates for technologies and applications that may be
considered for funding pursuant to this section. This shall include
technologies and low-carbon fuel requirements 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.
(3) Describe the roles of the relevant agencies and the process
for coordination among agencies, program participants, and low-carbon
fuel providers.
(g) For purposes of this section, the following terms have the
following meanings:
(1) Effective January 2, 2018, "Heavy-duty truck" means a vehicle
that has a gross vehicle weight rate (GVWR) of 26,001 pounds or more.
(2) "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
State 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 emissions reductions, advanced or alternative fuel engines
for long-haul trucks, and hybrid or alternative fuel technologies
for trucks and off-road equipment.