Amended in Senate July 7, 2015

Amended in Assembly June 1, 2015

Amended in Assembly April 23, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1176

Introduced by Assembly Member Perea

February 27, 2015

An act to amend Section 44272 of, and to add Chapter 8.8 (commencing with Section 44269) to Part 5 of Division 26 of, the Health and Safety Code, relating to vehicular air pollution, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1176, as amended, Perea. Vehicular air pollution.

(1) Existing law establishes the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007, which includes the Alternative and Renewable Fuel and Vehicle Technology Program, administered by the State Energy Resources Conservation and Development Commission, and the Air Quality Improvement Program, administered by the State Air Resources Board. Existing law requires the emphasis of the Alternative and Renewable Fuel and Vehicle Technology Program to be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology. Existing law requires the primary purpose of the Air Quality Improvement Program to be the funding of projects to reduce criteria air pollutants, to improve air quality, and to fund research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.

This bill would establish the Advanced Low-Carbon Diesel Fuels Access Program, to be administered by the commission, in consultation with the state board, for the purpose of reducing the greenhouse gas emissions of diesel motor vehicles by providing capital assistance for projects that expand advanced low-carbon diesel fueling infrastructure in communities that are disproportionately impacted by environmental hazards and additionally where the greatest air quality impacts can be identified.

This bill would authorize the commission as part of the Alternative and Renewable Fuel and Vehicle Technology Program, to amend a contract, grant, loan, or other agreement or award to extend the terms of that contract, grant, loan, or other agreement or award by 2 years if the moneys are reprioritized by the commission to apply toward a project that provides benefits to disadvantaged communities.

(2) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

(a) It is the intent of the Legislature that 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 of Division 26 of the
Health and Safety Code) continue the state’s implementation of
Assembly Bill 118 (Chapter 750 of the Statutes of 2007) by
directing resources to the state’s most impacted and disadvantaged
communities to ensure activities taken pursuant to that authority
will provide economic and health benefits to these communities
as well.

(b) The Legislature further finds and declares all of the
following:

(1) The California Communities Environmental Health
Screening Tool, also known as CalEnviroScreen, which was
developed by the Office of Environmental Health Hazard
Assessment at the request of the California Environmental
Protection Agency, is a science-based tool that identifies the
California communities most burdened by pollution from multiple
sources and most vulnerable to its effects.

(2) Using CalEnviroScreen, the California Environmental
Protection Agency has identified the top 25 percent highest-scoring
census tracts in the state based on geographic, socioeconomic,
public health, and environmental hazard criteria and has designated
these most impacted regions of the state as disadvantaged
communities.

(3) A significant number of the total identified top 25 percent
highest-scoring census tracts of disadvantaged communities are
located in the San Joaquin Valley, which is impacted by heavy
freight traffic moving along the Interstate 5 and Highway 99
corridors and along Interstate 710, which runs 18 miles from the
Ports of Long Beach and Los Angeles to the Pomona Freeway
(SR-60) in east Los Angeles and encompasses 15 cities and
unincorporated areas in Los Angeles County adjacent to the
freeway corridor.

(4) Both regions consistently rate in the top 25 most polluted
locations in the United States and frequently exceed by significant
amounts the National Ambient Air Quality Standards for ozone
and fine particulate matter.

(5) Medium- and heavy-duty diesel vehicles operating on
petroleum diesel fuel and traveling along these heavy freight
corridors, which are located adjacent to or within many of the
state’s most environmentally impacted disadvantaged communities,
are a significant contributor to emissions from greenhouse gases
and criteria pollutants.

(6) However, the majority of diesel motor vehicles on the state’s
roads today can immediately reduce their emissions of greenhouse
gases, oxides of nitrogen, particulate matter, and other emissions
of concern by using low-carbon alternative and renewable
biomass-based diesel fuels, such as renewable hydrocarbon diesel
and begin delete low blends of end delete biodiesel.

(7) The state’s policymakers can facilitate immediate and
tangible reductions of greenhouse gas emissions and criteria
pollution and amplify near-term health cobenefits to the state’s
most impacted and disadvantaged communities by funding the
development and deployment of alternative and renewable fueling
infrastructure to facilitate greater access to these advanced
low-carbon diesel fuels.

(8) It is the intent of the Legislature to provide the state’s most
impacted and disadvantaged communities with reasonable and
cost-effective opportunities to proactively participate in the state’s
greenhouse gas emissions reduction strategies, which can provide
immediate benefits in air quality, public health, the environment,
and the economy.

SEC. 2.  

Chapter 8.8 (commencing with Section 44269) is added
to Part 5 of Division 26 of the Health and Safety Code, to read:

 

Chapter  8.8. Advanced Low-Carbon Diesel Fuels Access
Program

 

44269.  

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

(a) “Commission” means the State Energy Resources
Conservation and Development Commission.

(b) “Disproportionately impacted by environmental hazards”
means public health or environmental effects from the emission
or discharge of substances in a geographic area, including
environmental pollution for all sources whether in a single medium
or in multiple media, routinely, accidently, or otherwise released
into the environment, taking into account sensitive populations
and socioeconomic factors, where applicable and to the extent data
is available.

(c) “Low-carbon diesel fuel” means a biomass-based diesel fuel
that is used in diesel engines and meets begin delete all of the following criteria: end delete
begin insert the definition of low-carbon diesel fuel pursuant to the Low Carbon
Fuel Standard regulation (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). end insert

begin delete

(1) Meets the definition of low-carbon diesel fuel pursuant to
the Low Carbon Fuel Standard regulation (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).

(2) Contains a minimum of 21 percent biomass-based content.

(3) Complies with the Commercialization of Alternative Diesel
Fuels regulation (Subarticle 2 (commencing with Section 2293)
of Article 3 of Chapter 5 of Division 3 of Title 13 of the California
Code of Regulations), once that regulation becomes final.

(4) Has a recognized carbon intensity under the Low Carbon
Fuel Standard regulation (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) of at least 50
percent lower than the petroleum diesel baseline carbon intensity
valuation.

(5) Does not produce higher levels of oxides of nitrogen or
particulate matter than petroleum diesel fuel.

end delete

(d) “Low-carbon diesel fueling infrastructure” means the
equipment used to store and dispense low-carbon diesel fuel to
motor vehicles according to industry codes and standards and that
is open to the public. Types of eligible equipment include, but are
not limited to, storage, begin insert loading rack components, end insert tanks, piping,
fittings, fuel dispensers, signage, point-of-sale systems, and their
associated construction.

44269.2.  

(a) The Advanced Low-Carbon Diesel Fuels Access
Program is hereby established. The commission, in consultation
with the state board, shall administer the program for the purpose
of reducing the greenhouse gas emissions of diesel motor vehicles
by providing capital assistance for projects that expand advanced
low-carbon diesel fueling infrastructure in communities that are
disproportionately impacted by environmental hazards and where
additionally the greatest air quality impacts can be identified.

(b) Moneys shall be available, upon appropriation by the
Legislature, from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, for the
purposes of carrying out this chapter.

44269.4.  

On or before March 1, 2016, the commission shall
do both of the following:

(a) Develop guidelines for the implementation of this chapter.
The guidelines shall ensure that the program is focused on
begin delete communities end delete begin insert both of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert Communities end insert that are disproportionately impacted by
environmental hazards and where the greatest vehicular air
pollution impact is identified.

begin insert

(2) Low-carbon diesel fuels that have approved fuel pathways
under the Low Carbon Fuel Standard regulations (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).

end insert

(b) Select, in consultation with the California Environmental
Protection Agency, the disadvantaged communities identified
pursuant to Section 39711.

44269.6.  

(a) In evaluating projects to be allocated moneys
pursuant to this chapter, the commission shall give priority to a
project with all of the following characteristics:

(1) Occurs in or near communities identified pursuant to Section
39711.

(2) Demonstrates the potential for cobenefits or multibenefit
attributes, including reducing significant emissions of criteria
pollutants or toxic air contaminants.

(3) Quantifies and measures cost-effectiveness and impacts on
disadvantaged and low-income populations.

(4) Demonstrates the ability to leverage additional public or
private funding.

(5) Demonstrates the ability to obtain immediate benefits.

(6) Includes marketing and education outreach strategies
designed to increase the effectiveness of the program’s goals.

(b) A project required to be undertaken pursuant to state, federal,
or local laws shall not be allocated moneys pursuant to this chapter.

SEC. 3.  

Section 44272 of the Health and Safety Code is
amended to read:

44272.  

(a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement
the program by regulation pursuant to the requirements of Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code. The program shall provide, upon
appropriation by the Legislature, competitive grants, revolving
loans, loan guarantees, loans, or other appropriate funding
measures, to public agencies, vehicle and technology entities,
businesses and projects, public-private partnerships, workforce
training partnerships and collaboratives, fleet owners, consumers,
recreational boaters, and academic institutions to develop and
deploy innovative technologies that transform California’s fuel
and vehicle types to help attain the state’s climate change policies.
The emphasis of this program shall be to develop and deploy
technology and alternative and renewable fuels in the marketplace,
without adopting any one preferred fuel or technology.

(b) A project that receives more than seventy-five thousand
dollars ($75,000) in funds from the commission shall be approved
at a noticed public meeting of the commission and shall be
consistent with the priorities established by the investment plan
adopted pursuant to Section 44272.5. Under this article, the
commission may delegate to the commission’s executive director,
or his or her designee, the authority to approve either of the
following:

(1) A contract, grant, loan, or other agreement or award that
receives seventy-five thousand dollars ($75,000) or less in funds
from the commission.

(2) Amendments to a contract, grant, loan, or other agreement
or award as long as the amendments do not increase the amount
of the award, change the scope of the project, or modify the purpose
of the agreement.

(c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel
and Vehicle Technology Program, based on the following criteria,
as applicable:

(1) The project’s ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio
of viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.

(2) The project’s consistency with existing and future state
climate change policy and low-carbon fuel standards.

(3) The project’s ability to reduce criteria air pollutants and air
toxics and reduce or avoid multimedia environmental impacts.

(4) The project’s ability to decrease, on a life-cycle basis, the
discharge of water pollutants or any other substances known to
damage human health or the environment, in comparison to the
production and use of California Phase 2 Reformulated Gasoline
or diesel fuel produced and sold pursuant to California diesel fuel
regulations set forth in Article 2 (commencing with Section 2280)
of Chapter 5 of Division 3 of Title 13 of the California Code of
Regulations.

(5) The project does not adversely impact the sustainability of
the state’s natural resources, especially state and federal lands.

(6) The project provides nonstate matching funds. Costs incurred
from the date a proposed award is noticed may be counted as
nonstate matching funds. The commission may adopt further
requirements for the purposes of this paragraph. The commission
is not liable for costs incurred pursuant to this paragraph if the
commission does not give final approval for the project or the
proposed recipient does not meet requirements adopted by the
commission pursuant to this paragraph.

(7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.

(8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.

(9) The project’s ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.

(10) The project’s use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference
for projects with higher blends.

(11) The project drives new technology advancement for
vehicles, vessels, engines, and other equipment, and promotes the
deployment of that technology in the marketplace.

(d) The commission shall rank applications for projects proposed
for funding awards based on solicitation criteria developed in
accordance with subdivision (c), and shall give additional
preference to funding those projects with higher benefit-cost scores.

(e) Only the following shall be eligible for funding:

(1) Alternative and renewable fuel projects to develop and
improve alternative and renewable low-carbon fuels, including
electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
hydrogen, and biomethane, among others, and their feedstocks
that have high potential for long-term or short-term
commercialization, including projects that lead to sustainable
feedstocks.

(2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.

(3) Projects to produce alternative and renewable low-carbon
fuels in California.

(4) Projects to decrease the overall impact of an alternative and
renewable fuel’s life-cycle carbon footprint and increase
sustainability.

(5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.

(6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel
usage and storage, or emission reductions, including propulsion
systems, advanced internal combustion engines with a 40 percent
or better efficiency level over the current market standard,
lightweight materials, intelligent transportation systems, energy
storage, control systems and system integration, physical
measurement and metering systems and software, development of
design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid
technology, battery electric vehicle technology, fuel cell
technology, and conversions of hybrid technology to plug-in
technology through the installation of safety certified supplemental
battery modules.

(7) Programs and projects that accelerate the commercialization
of vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments,
advanced technology warranty or replacement insurance,
development of market niches, supply-chain development, and
research related to the pedestrian safety impacts of vehicle
technologies and alternative and renewable fuels.

(8) Programs and projects to retrofit medium- and heavy-duty
onroad and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.

(9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.

(10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable
fuel production, distribution, transport, and storage,
high-performance and low-emission vehicle technology and high
tower electronics, automotive computer systems, mass transit fleet
conversion, servicing, and maintenance, and other sectors or
occupations related to the purposes of this chapter.

(11) Block grants or incentive programs administered by public
entities or not-for-profit technology entities for multiple projects,
education and program promotion within California, and
development of alternative and renewable fuel and vehicle
technology centers. The commission may adopt guidelines for
implementing the block grant or incentive program, which shall
be approved at a noticed public meeting of the commission.

(12) Life cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine
the impacts of increasing the use of low-carbon transportation fuels
and technologies, and to assist in the preparation of the investment
plan and program implementation.

(13) A program to provide funding for homeowners who
purchase a plug-in electric vehicle to offset costs associated with
modifying electrical sources to include a residential plug-in electric
vehicle charging station. In establishing this program, the
commission shall consider funding criteria to maximize the public
benefit of the program.

(f) The commission may make a single source or sole source
award pursuant to this section for applied research. The same
requirements set forth in Section 25620.5 of the Public Resources
Code shall apply to awards made on a single source basis or a sole
source basis. This subdivision does not authorize the commission
to make a single source or sole source award for a project or
activity other than for applied research.

(g) The commission may do all of the following:

(1) Contract with the Treasurer to expend funds through
programs implemented by the Treasurer, if the expenditure is
consistent with all of the requirements of this article and Article
1 (commencing with Section 44270).

(2) Contract with small business financial development
corporations established by the Governor’s Office of Business and
Economic Development to expend funds through the Small
Business Loan Guarantee Program if the expenditure is consistent
with all of the requirements of this article and Article 1
(commencing with Section 44270).

(3) Advance funds, pursuant to an agreement with the
commission, to any of the following:

(A) A public entity.

(B) A recipient to enable it to make advance payments to a
public entity that is a subrecipient of the funds and under a binding
and enforceable subagreement with the recipient.

(C) An administrator of a block grant program.

(4) Amend a contract, grant, loan, or other agreement or award
to extend the terms of that contract, grant, loan, or other agreement
or award by two years if the moneys are reprioritized by the
commission to apply toward a project that begin delete complies with Section
44271.3. end delete begin insert benefits communities identified pursuant to Section 39711. end insert

SEC. 4.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

To ensure stable funding for programs to reduce vehicular air
pollution for the protection of the public health and safety, it is
necessary for this act to take effect immediately.