Amended in Assembly April 7, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1657


Introduced by Assembly Member O'Donnell

January 13, 2016


An act to add Chapter 4.3 (commencing with Section 39740) to Part 2 of Division 26 of the Health and Safety Code, and to add Chapter 8.9 (commencing with Section 25790) to Division 15 of the Public Resources Code, relating to air pollution, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1657, as amended, O'Donnell. Air pollution: public ports and intermodal terminals.

(1) 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 as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

This bill would establish the Zero- and Near-Zero-Emission Intermodal Terminals Program to be administered by the state board to fund equipment upgrades and investments at intermodal terminals, as defined, to help transition the state’s freight system to bebegin delete zero-emissionend deletebegin insert zero-end insert and near-zero-emission operations. The bill would authorize the program to be implemented with moneys from the Greenhouse Gas Reduction Fund.

(2) Existing law establishes the State Energy Resources Conservation and Development Commission and requires the commission to administer various programs to award grants and other financial assistance for energy-related projects.

This bill would establish the Port Building and Lighting Efficiency Greenhouse Gas Reduction Fund Program to be administered by the commission for the purpose of funding energy efficiency upgrades and investments at public ports that help reduce electrical load and increasebegin delete on-siteend deletebegin insert onsiteend insert renewable generation. The bill would authorize the program to be implemented with moneys from the Greenhouse Gas Reduction Fund.

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

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Chapter 4.3 (commencing with Section 39740)
2is added to Part 2 of Division 26 of the Health and Safety Code,
3to read:

4 

5Chapter  4.3. Zero- and Near-Zero-Emission Intermodal
6Terminals Program
7

 

8

39740.  

For purposes of this section, “intermodal terminal” has
9the same meaning as defined in the California Freight Mobility
10Plan developed by the Transportation Agency.

11

39742.  

(a) The Zero- and Near-Zero-Emission Intermodal
12Terminals Program is hereby established to be administered by
13the state board to fund equipment upgrades and investments at
14intermodal terminals to help transition the state’s freight system
15to bebegin delete zero-emissionend deletebegin insert zero-end insert and near-zero-emission operations.

16(b) Moneys from the Greenhouse Gas Reduction Fund, created
17pursuant to Section 16428.8 of the Government Code, shall be
18available, upon appropriation by the Legislature, to implement this
19chapter consistent with paragraphbegin delete (1)end deletebegin insert (2)end insert of subdivision (c) of
20Section 39712.

21

39744.  

begin insert(a)end insertbegin insertend insertEligible projects shall include, but need not be
22limited to, any of the following:

begin delete

P3    1(a)

end delete

2begin insert(1)end insert The early deployment ofbegin delete zero-emissionend deletebegin insert zero-end insert and
3near-zero-emission equipment that handles the transfer of cargo
4at intermodal terminals.

begin delete

5(b)

end delete

6begin insert(2)end insert The installation of infrastructure necessary for the
7deployment ofbegin delete zero-emissionend deletebegin insert zero-end insert and near-zero-emission
8equipment, including, but not limited to, fueling infrastructure at
9intermodal terminals.

begin delete

10(c)

end delete

11begin insert(3)end insert Other projects that facilitate the transition of cargo handling
12equipment tobegin delete zero-emissionend deletebegin insert zero-end insert and near-zero-emission
13equipment.

begin insert

14
(b) Eligible projects shall not include vessel upgrades.

end insert
15

39746.  

The state board shall develop and adopt program
16guidelines that do all of the following:

17(a) Are consistent with the California Global Warming Solutions
18Act of 2006 (Division 25.5 (commencing with Section 38500))
19and the Greenhouse Gas Reduction Fund Investment Plan and
20Communities Revitalization Act (Chapter 4.1 (commencing with
21Section 39710)).

22(b) Include baseline equipment eligibility with respect to the
23types of equipment that will satisfy thebegin delete zero-emissionend deletebegin insert zero-end insert and
24near-zero-emission requirement, subject to feasibility requirements
25adopted by the state board.

26(c) Establish limits on award amounts so that no one project or
27entity receives more than 50 percent of the program funding.

begin insert

28
(d) Ensure moneys are allocated on a competitive basis for
29projects that are shown to achieve the greatest greenhouse gas
30emissions reductions not otherwise required by statute or
31regulation.

end insert
32

39748.  

In allocating moneys pursuant to this chapter, the state
33board shall consider all of the following:

34(a) The impact of the investment on freight system efficiency.

35(b) The degree to which the investment facilitates transition of
36the freight system to zero or near-zero emissions.

37(c) The impact on the cost and competitiveness of the state’s
38freight sector.

39(d) The reduction of greenhouse gases.

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SEC. 2.  

Chapter 8.9 (commencing with Section 25790) is added
2to Division 15 of the Public Resources Code, to read:

3 

4Chapter  8.9. Port Building and Lighting Efficiency
5Greenhouse Gas Reduction Fund Program
6

 

7

25790.  

(a) The Port Building and Lighting Efficiency
8Greenhouse Gas Reduction Fund Program is hereby established
9to be administered by the commission for the purpose of funding
10energy efficiency upgrades and investments at public ports that
11help reduce electrical load and increasebegin delete on-siteend deletebegin insert onsiteend insert renewable
12generation.

13(b) Moneys from the Greenhouse Gas Reduction Fund, created
14pursuant to Section 16428.8 of the Government Code, shall be
15available, upon appropriation by the Legislature, to implement this
16chapter consistent with paragraph (1) of subdivision (c) of Section
1739712 of the Health and Safety Code.

18

25792.  

begin insert(a)end insertbegin insertend insertEligible projects shall include, but need not be
19limited to, any of the following:

begin delete

20(a)

end delete

21begin insert(1)end insert The installation of renewable technologies at marine
22terminals and at warehouses and other freight facilities at public
23ports.

begin delete

24(b)

end delete

25begin insert(2)end insert The replacement of conventional lighting at public ports.

begin delete

26(c)

end delete

27begin insert(3)end insert The implementation of energy efficiency measures that
28reduce grid-based energy demand from operations at public ports.

begin delete

29(d)

end delete

30begin insert(4)end insert Other projects that add to the electrification of public ports
31and reduce greenhouse gases.

begin insert

32
(b) Eligible projects shall not include vessel upgrades.

end insert
33

25794.  

The commission shall develop and adopt program
34guidelines that are consistent with the California Global Warming
35Solutions Act of 2006 (Division 25.5 (commencing with Section
36
begin delete 38500)).end deletebegin insert 38500) of the Health and Safety Code) and the
37Greenhouse Gas Reduction Fund Investment Plan and
38Communities Revitalization Act (Chapter 4.1 (commencing with
39Section 39710) of Part 2 of Division 26 of the Health and Safety
40Code).end insert

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25796.  

(a) To receive funding pursuant to this chapter, all of
2the following shall occur:

3(1) A public port shall develop and adopt, in consultation with
4the respective electrical corporation, as defined in Section 218 of
5the Public Utilities Code, or local publicly owned electric utility,
6as defined in Section 224.3 of the Public Utilities Code, providing
7service to the port, an energy plan that meets all of the following
8criteria:

9(A) (i) Is reviewed and approved by the commission.

10(ii) The commission shall require any proposed changes to be
11made before approving the plan.

12(B) Adheres to the state’s preferred energy loading order and
13requires benchmarking for energy retrofit projects and the reporting
14of measurable energy savings.

15(2) The project applicant shall demonstrate that the project will
16achieve a reduction in greenhouse gases.

17(b) In prioritizing projects for awarding funding, the commission
18shall consider the extent to which a project would reduce emissions
19of greenhouse gases and provide environmental and public health
20cobenefits, including, but not limited to, improved air and water
21quality.

begin insert

22
(c) The commission shall allocate moneys on a competitive basis
23for projects that are shown to achieve the greatest greenhouse gas
24emissions reductions not otherwise required by statute or
25regulation.

end insert
26

SEC. 3.  

This act is an urgency statute necessary for the
27immediate preservation of the public peace, health, or safety within
28the meaning of Article IV of the Constitution and shall go into
29immediate effect. The facts constituting the necessity are:

30In order to implement at the earliest possible time programs to
31provide incentives for the transition of goods movement equipment
32to zero- and near-zero-emission technology and the reduction of
33greenhouse gases at public ports, it is necessary for this act to take
34effect immediately.



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