Amended  IN  Assembly  March 22, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 111

Introduced by Assembly Member Boerner Horvath

December 17, 2020

An act relating to transportation, and making an appropriation therefor. An act to add Section 65075 to the Government Code, to amend Section 25229 of the Public Resources Code, to add Sections 457 and 9623 to the Public Utilities Code, and to amend Section 2192 of the Streets and Highways Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


AB 111, as amended, Boerner Horvath. San Diego Association of Governments: LOSSAN Rail Corridor: study. Transportation: zero-emission vehicles.
(1) Existing law requires the Department of Transportation to develop and update every 5 years the California Transportation Plan. Under existing law, the plan describes the state’s transportation policies and system performance objectives, includes broad transportation strategies and recommendations, considers certain topics relating to the movement of people and freight, and addresses how the state will achieve maximum feasible emissions reductions to attain a statewide reduction of greenhouse gas emissions to 40% below 1990 levels by December 31, 2030, and other air quality standards.
This bill would require the Secretary of the Transportation Agency, in consultation with certain state entities, to implement a Safe and Clean Truck Infrastructure Program to support the construction and operation of zero-emission medium- and heavy-duty vehicle parking and electric vehicle charging and hydrogen refueling infrastructure on public and private properties, and to encourage the use of zero-emission vehicles. The bill would require the program, by January 1, 2024, to conduct an assessment outlining regional zero-emission medium- and heavy-duty vehicle parking and refueling deficiencies and strategies to address those deficiencies.
(2) Existing law, except as provided, allocates revenues deposited in the Trade Corridors Enhancement Account for infrastructure projects and allocates certain federal funds for infrastructure projects, including truck corridor improvements to mitigate emissions from trucks.
This bill would provide that the construction and operation of zero-emission truck parking, and supporting electric vehicle charging and hydrogen refueling networks, that the Secretary of the Transportation Agency has identified as part of the Safe and Clean Truck Infrastructure Program is an infrastructure project eligible for this funding.
(3) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), working with the State Air Resources Board and the Public Utilities Commission (PUC), to prepare and update every 2 years a statewide assessment of electric vehicle charging infrastructure needed to support the levels of electric vehicle adoption required for the state to meet the goals of putting 5 million zero-emission vehicles on California roads by 2030 and of reducing emissions of greenhouse gases to 40% below 1990 levels by 2030.
This bill would additionally require the assessment to consider hydrogen refueling network infrastructure needed to facilitate meeting these goals.
(4) Under existing law, the PUC has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards.
This bill would require the PUC, in consultation with the Energy Commission and the state board, to establish a rate structure to promote the adoption of zero-emission vehicles and zero-emission freight equipment meeting certain requirements and a rate structure that incentivizes hydrogen production by electrolysis using electricity from eligible renewable energy resources, as defined. The bill would require electrical corporations to file an advice letter to implement those rate structures. The bill would require the Energy Commission, in consultation with the PUC and the state board, to develop model rate structures consistent with those established for electrical corporations that a local publicly owned electric utility may adopt.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because some of the above provisions would be codified in the Public Utilities Act and a violation of an order, decision, rule, direction, demand, or requirement of the PUC implementing those provisions would be a crime, this bill would impose a state-mandated local program.
(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Under existing law, the San Diego Association of Governments is the transportation planning agency for the San Diego County region.

This bill would appropriate $5,000,000 from the General Fund to the San Diego Association of Governments to conduct a study of higher speed and safety alternatives for the Los Angeles-San Diego-San Luis Obispo passenger rail corridor in the County of San Diego. As a condition of receiving the funding, the bill would require the San Diego Association of Governments to conduct the study, as specified, and would require the San Diego Association of Governments to submit a report to the Legislature and specified committees of the Legislature summarizing the results of the study.

Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NOYES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Freight equipment accounts for one-half of statewide diesel particulate matter emissions, which are both a toxic air contaminant and a contributor to black carbon, a short-lived climate pollutant.
(b) Freight operations also account for 45 percent of the statewide nitrogen oxides emissions and 6 percent of the statewide greenhouse gas emissions.
(c) Transporting freight reliably and efficiently by zero-emission equipment everywhere feasible, and near-zero-emission equipment powered by clean, low-carbon renewable fuels everywhere else, is necessary to protect public health.
(d) It is imperative to accelerate actions to reduce emissions from the freight transportation system, consistent with Executive Order N-79-20, by transitioning all drayage trucks to zero emission by 2035, all off-road vehicles and equipment to zero emission by 2035 where feasible, and all medium- and heavy-duty vehicles to zero emission by 2045 for all operations where feasible.
(e) California’s economy relies on the efficient movement of freight along sustainable and well maintained freight transportation infrastructure.
(f) According to the California Sustainable Freight Action Plan, issued in July 2016, the state’s freight sector accounted for over $740,000,000,000, or 32 percent of California’s gross domestic product in 2014, while also comprising five million, or 33 percent of, jobs in the state the same year.
(g) A skilled workforce with multicore curriculum training is a key factor in economic competitiveness as the freight sector transitions towards a zero emission future.
(h) As California leads investment and development of these technologies that support a sustainable freight transport system, it must recognize that the transition to advanced technologies will require the development of a skilled workforce with project labor agreements to operate and maintain these new technologies and systems.

SEC. 2.

 Section 65075 is added to the Government Code, to read:

65075.
 (a) The Secretary of the Transportation Agency, in consultation with the California Transportation Commission, Department of Transportation, State Air Resources Board, State Energy Resources Conservation and Development Commission, Public Utilities Commission, and metropolitan planning organizations, shall implement a Safe and Clean Truck Infrastructure Program to support the construction and operation of zero-emission medium- and heavy-duty vehicle parking, and electric vehicle charging and hydrogen refueling infrastructure, on public and private properties, and encourage use of zero-emission vehicles.
(b) The Safe and Clean Truck Infrastructure Program shall conduct an assessment, on or before January 1, 2024, outlining regional zero-emission medium- and heavy-duty vehicle parking and refueling deficiencies and strategies to address these deficiencies. The assessment shall include, but is not limited to, all of the following:
(1) The current and future planned public and private truck parking facilities to determine statewide gaps around areas the California Freight Mobility Plan has identified as the freight network.
(2) Strategies to deploy zero-emission medium- and heavy-duty vehicle technologies and zero-emission off-road vehicle and equipment technologies whenever feasible.
(3) Short- and long-term zero-emission electric vehicle charging and hydrogen refueling strategies for the freight transportation system, including, but not limited to, warehouses, distribution centers, seaports, railyards, commercial airports, and freight trade corridors.
(4) Locations for fast access zero-emission medium- and heavy-duty truck-only lanes or routes.
(5) Issues related to funding needed for upstream infrastructure buildouts for medium- and heavy-duty electric vehicle charging and hydrogen refueling stations.
(c) In accordance with the assessment developed pursuant to subdivision (b), the California Transportation Commission, in consultation with the Department of Transportation, State Air Resources Board, State Energy Resources Conservation and Development Commission, Public Utilities Commission, and metropolitan planning organizations, shall facilitate the construction and operation of zero-emission truck parking, and supporting electric vehicle charging and hydrogen refueling networks, to address the identified infrastructure and electric vehicle charging and hydrogen refueling needs, including, but not limited to, identified needs for zero-emission medium- and heavy-duty vehicle parking, electric vehicle charging and hydrogen refueling, and dedicated lanes or corridors for main thoroughfares entering and leaving all seaports and intermodal railyards in the state, as well as warehouse and distribution centers.

SEC. 3.

 Section 25229 of the Public Resources Code is amended to read:

25229.
 (a) The commission, working with the State Air Resources Board and the Public Utilities Commission, shall prepare a statewide assessment of the electric vehicle charging and hydrogen refueling network infrastructure needed to support the levels of light-, medium-, and heavy-duty electric vehicle and hydrogen fuel cell vehicle adoption required for the state to meet its goals of putting at least five million zero-emission vehicles on California roads by 2030, and of reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030.
(b) The assessment shall expand on the commission’s electric vehicle charging and hydrogen refueling network infrastructure projections to consider all necessary electric vehicle charging and hydrogen refueling network infrastructure, including, but not limited to, the chargers, make-ready electrical equipment, and supporting hardware and software, all vehicle categories, road, highway, and offroad electrification, port and airport electrification, and other programs to accelerate the adoption of electric zero-emission vehicles to meet the goals described in subdivision (a). The assessment shall examine existing and future infrastructure needs throughout California, including in low-income communities.
(c) The commission shall regularly seek data and input relating to electric vehicle charging and hydrogen refueling network infrastructure from stakeholders, including, but not limited to, the Public Utilities Commission, the State Air Resources Board, electrical corporations, local publicly owned electric utilities, state and local transportation and transit agencies, charging infrastructure companies, environmental groups, and automobile manufacturers.
(d) The commission shall update the assessment at least once every two years.

SEC. 4.

 Section 457 is added to the Public Utilities Code, to read:

457.
 (a) (1) The Public Utilities Commission shall, in consultation with the Energy Commission and State Air Resources Board, establish an electric rate structure to promote the adoption of zero-emission vehicles and zero-emission freight equipment across the state that does all of the following:
(A) Prohibits any type of peak load surcharges or demand charges for electric charging of medium-duty, heavy-duty, or other freight equipment regardless of rate structure or facility type. Electric charging and operation shall be excluded from demand charges for vehicles and equipment including, but not limited to, shore power for ocean-going vessels, cargo handling equipment, transport refrigeration units, locomotives, drayage trucks, and other heavy-duty trucks.
(B) Incentivizes mechanisms that favor use of renewable energy and grid resilience, including, but not limited to, incorporation of vehicle grid integration, time-of-use rates, and local microgrid technologies.
(C) Provides an equal or lower cost of fueling relative to statewide commercial average electric rates.
(2) The commission shall, in consultation with the Energy Commission and the State Air Resources Board, establish an electric rate structure that incentivizes hydrogen production by electrolysis through the use of electricity generated by an eligible renewable energy resource as defined in Section 399.12.
(b) An electrical corporation shall file an advice letter to implement the rate structures established by the commission pursuant to subdivision (a). The commission shall approve the advice letter or specify changes to be made by the electrical corporation to comply with the rate structures to be filed in a new advice letter.

SEC. 5.

 Section 9623 is added to the Public Utilities Code, to read:

9623.
 The Energy Commission, in consultation with the commission and State Air Resources Board, shall establish model rate structures that comply with the requirements of Section 457 and that local publicly owned electric utilities may adopt to promote the adoption of zero-emission vehicles and zero-emission freight equipment and for the production of hydrogen by electrolysis using electricity from an eligible renewable energy resource as defined in Section 399.12.

SEC. 6.

 Section 2192 of the Streets and Highways Code is amended to read:

2192.
 (a) The following revenues shall be allocated for infrastructure projects pursuant to this section:
(1) The revenues deposited in the Trade Corridors Enhancement Account pursuant to Section 2192.4, except for those revenues in the account that were appropriated by Senate Bill 132 of the 2017–18 Regular Session (Chapter 7 of the Statutes of 2017).
(2) An amount of federal funds equal to the amount of revenue apportioned to the state under Section 167 of Title 23 of the United States Code from the national highway freight programs, pursuant to the federal Fixing America’s Surface Transportation Act (“FAST Act,” Public Law 114-94).
(b) The funding described in subdivision (a) shall be available upon appropriation for allocation by the California Transportation Commission for infrastructure improvements in this state on federally designated Trade Corridors of National and Regional Significance, on the Primary Freight Network, and along other corridors that have a high volume of freight movement, as determined by the commission and as identified in the state freight plan developed pursuant to Section 13978.8 of the Government Code. Projects eligible for funding shall be included in an adopted regional transportation plan. Projects within the boundaries of a metropolitan planning organization shall be included in an adopted regional transportation plan that includes a sustainable communities strategy determined by the State Air Resources Board to achieve the region’s greenhouse gas emissions reduction targets. In developing guidelines for implementing this section, the commission shall (1) apply the guiding principles, to the maximum extent practicable, in the California Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order B-32-15, and (2) consult the state freight plan and the applicable port master plan.
(c) Eligible projects for these funds include, but are not limited to, all of the following:
(1) Highway improvements to more efficiently accommodate the movement of freight, particularly for ingress and egress to and from the state’s land ports of entry, rail terminals, and seaports, including navigable inland waterways used to transport freight between seaports, land ports of entry, and airports, and to relieve traffic congestion along major trade or goods movement corridors.
(2) Freight rail system improvements to enhance the ability to move goods from seaports, land ports of entry, and airports to warehousing and distribution centers throughout California, including projects that separate rail lines from highway or local road traffic, improve freight rail mobility, and other projects that improve the safety, efficiency, and capacity of the rail freight system.
(3) Projects to enhance the capacity and efficiency of ports, except that funds available under this section shall not be allocated to a project that includes the purchase of fully automated cargo handling equipment. For the purposes of this paragraph, “fully automated” means equipment that is remotely operated or remotely monitored, with or without the exercise of human intervention or control. Nothing in this paragraph shall prohibit the use of funds available pursuant to this section for a project that includes the purchase of human-operated zero-emission equipment, human-operated near-zero-emission equipment, and infrastructure supporting that human-operated equipment. Furthermore, nothing in this section shall prohibit the purchase of devices that support that human-operated equipment, including equipment to evaluate the utilization and environmental benefits of that human-operated equipment.
(4) Truck corridor improvements, including dedicated truck facilities or truck toll facilities, including the mitigation of the emissions from trucks or these facilities.
(5) Border access improvements that enhance goods movement between California and Mexico and that maximize the state’s ability to access funds made available to the state by federal law.
(6) Surface transportation, local road, and connector road improvements to effectively facilitate the movement of goods, particularly for ingress and egress to and from the state’s land ports of entry, airports, and seaports, to relieve traffic congestion along major trade or goods movement corridors.
(7) The construction and operation of zero-emission truck parking, and supporting electric vehicle charging and hydrogen refueling networks, that the Secretary of the Transportation Agency has identified as part of the Safe and Clean Truck Infrastructure Program created pursuant to Section 65075 of the Government Code.
(d) Projects funded with revenues identified in paragraph (1) of subdivision (a) shall be consistent with Article XIX of the California Constitution.
(e) (1) In adopting the program of projects to be funded with funds described in subdivision (a), the commission shall evaluate the total potential economic and noneconomic benefits of the program of projects to California’s economy, environment, and public health. The evaluation shall specifically assess localized impacts in disadvantaged communities. The commission shall consult with the agencies identified in Executive Order B-32-15 and metropolitan planning organizations in order to utilize the appropriate models, techniques, and methods to develop the parameters for evaluating the program of projects. The commission shall allocate the funding from subdivision (a) for trade infrastructure improvements as follows:
(A) Sixty percent of the funds shall be available for projects nominated by regional transportation agencies and other public agencies, including counties, cities, and port authorities, in consultation with the department. The commission shall provide reasonable geographic targets for funding allocations without constraining what an agency may propose or what the commission may approve.
(B) Forty percent of the funds shall be available for projects nominated by the department, in consultation with regional transportation agencies.
(2) In adopting a program of projects pursuant to paragraph (1), the commission shall prioritize projects jointly nominated and jointly funded by the state and local agencies. In considering geographic balance for the overall program, the commission may adjust the corridor-based targets in subparagraph (A) of paragraph (1) to account for projects programmed pursuant to subparagraph (B) of paragraph (1).
(f) (1) The commission shall adopt guidelines, including a transparent process to evaluate projects and to allocate the funding described in subdivision (a) for trade infrastructure improvements in a manner that (1) addresses the state’s most urgent needs, (2) balances the demands of various land ports of entry, seaports, and airports, (3) places emphasis on projects that improve trade corridor mobility and safety while reducing emissions of diesel particulates, greenhouse gases, and other pollutants and reducing other negative community impacts, especially in disadvantaged communities, (4) makes a significant contribution to the state’s economy, (5) recognizes the key role of the state in project identification, (6) supports integrating statewide goods movement priorities in a corridor approach, and (7) includes disadvantaged communities measures, as established by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, and other tools the commission determines, for evaluating benefits or costs for disadvantaged communities and low-income communities. Project nominations shall include either a quantitative or qualitative assessment of the benefits the project is expected to achieve relative to the evaluation criteria.
(2) The guidelines adopted pursuant to paragraph (1) may include streamlining of project delivery by authorizing regional transportation agencies and other public agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds for a project programmed in a future year of the adopted program of projects, in advance of allocation of funds to the project by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated for the program shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.
(g) In addition, the commission shall also consider the following factors when allocating these funds:
(1) “Velocity,” which means the speed by which large cargo would travel from the land port of entry or seaport through the distribution system.
(2) “Throughput,” which means the volume of cargo that would move from the land port of entry or seaport through the distribution system.
(3) “Reliability,” which means a reasonably consistent and predictable amount of time for cargo to travel from one point to another on any given day or at any given time in California.
(4) “Congestion reduction,” which means the reduction in recurrent daily hours of delay to be achieved.
(h) For purposes of this section, the following terms have the following meanings:
(1) “Disadvantaged communities” are those communities identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(2) “Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.
(i) It is the intent of the Legislature for the commission to adopt an initial program of projects utilizing the state and federal funds described in subdivision (a) for eligible projects as soon as practicable and no later than May 17, 2018.

SEC. 7.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

(a)The sum of five million dollars ($5,000,000) is hereby appropriated from the General Fund to the San Diego Association of Governments to conduct a study of higher speed and safety alternatives for the LOSSAN Rail Corridor in the County of San Diego, with a focus on alternatives for relocating the alignment of the LOSSAN Rail Corridor off the Del Mar Bluffs.

(b)As a condition of receiving funding pursuant to this section, the San Diego Association of Governments shall agree to conduct the study and to do all of the following as part of the study:

(1)Conduct an alternative alignment analysis, including preliminary engineering.

(2)Conduct a safety and speed assessment of existing corridor conditions.

(3)Identify the feasibility, impacts, benefits, and costs of alternative alignments and improvements, including operating and maintenance costs.

(4)Develop service plans for all operators.

(5)Develop an implementation plan for service and capital improvements.

(6)Identify future alignment extensions.

(7)Engage in public outreach.

(8)Submit a report summarizing the results of the study on or before January 1, 2024, to the Legislature and to the Senate Committee on Transportation, Assembly Committee on Transportation, Senate Committee on Budget and Fiscal Review, Assembly Committee on Budget, Senate Committee on Appropriations, and Assembly Committee on Appropriations.

(c)A report to be submitted pursuant to paragraph (8) of subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

(d)For purposes of this section, “LOSSAN Rail Corridor” means the Los Angeles-San Diego-San Luis Obispo passenger rail corridor.