CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 117


Introduced by Assembly Member Boerner Horvath

December 18, 2020


An act to amend Section 44274 of, and to add and repeal Section 44274.8 of, the Health and Safety Code, relating to vehicular air pollution, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 117, as introduced, Boerner Horvath. Air Quality Improvement Program: electric bicycles.
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, the reduction of criteria air pollutants and improvement of air quality. Pursuant to its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law specifies the types of projects eligible to receive funding under the program.
This bill would specify projects providing incentives for purchasing electric bicycles, as defined, as projects eligible for funding under the program. The bill would require the state board, by July 1, 2022, to establish and implement and administer, until January 1, 2028, the Electric Bicycle Rebate Pilot Project to provide rebates for purchases of electric bicycles. The bill would require the state board to submit to the Legislature a midcycle evaluation of the pilot project by July 1, 2025, and an end-of-program evaluation of the pilot project by January 1, 2028. The bill would repeal the pilot project as of January 1, 2029. The bill would appropriate from the Greenhouse Gas Reduction Fund $10,000,000 to the state board for purposes of the pilot project.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 44274 of the Health and Safety Code is amended to read:

44274.
 (a) The Air Quality Improvement Program is hereby created. The program shall be administered by the state board, in consultation with the districts. The state board shall develop guidelines to implement the program. Prior to the adoption of the guidelines, the state board shall hold at least one public hearing. In addition, the state board shall hold at least three public workshops with at least one workshop in northern California, one in the central valley, and one in southern California. The purpose of the program shall be to fund, upon appropriation by the Legislature, air quality improvement projects relating to fuel and vehicle technologies. The primary purpose of the program shall be to fund projects to reduce criteria air pollutants, improve air quality, and provide funding for research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.
(b) The state board shall provide preference in awarding funding to those projects with higher benefit-cost scores that maximize the purposes and goals of the Air Quality Improvement Program. The state board also may give additional preference based on the following criteria, as applicable, in funding awards awarding funding to projects:
(1) Proposed or potential reduction of criteria or toxic air pollutants.
(2) Contribution to regional air quality improvement.
(3) Ability to promote the use of clean alternative fuels and vehicle technologies as determined by the state board, in coordination with the commission.
(4) Ability to achieve climate change benefits in addition to criteria pollutant or air toxic emissions reductions.
(5) Ability to support market transformation of California’s vehicle or equipment fleet to utilize low carbon or zero-emission technologies.
(6) Ability to leverage private capital investments.
(c) The program shall be limited to competitive grants, revolving loans, loan guarantees, loans, and other appropriate funding measures that further the purposes of the program. Projects to be funded shall include only the following:
(1) Onroad and off-road equipment projects that are cost effective.
(2) Projects that provide mitigation for off-road gasoline exhaust and evaporative emissions.
(3) Projects that provide research to determine the air quality impacts of alternative fuels and projects that study the life-cycle impacts of alternative fuels and conventional fuels, the emissions of biofuel and advanced reformulated gasoline blends, and air pollution improvements and control technologies for use with alternative fuels and vehicles.
(4) Projects that augment the University of California’s agricultural experiment station and cooperative extension programs for research to increase sustainable biofuels production and improve the collection of biomass feedstock.
(5) Incentives for small off-road equipment replacement to encourage consumers to replace internal combustion engine lawn and garden equipment.
(6) Incentives for medium- and heavy-duty vehicles and equipment mitigation, including all of the following:
(A) Lower emission schoolbus programs.
(B) Electric, hybrid, and plug-in hybrid onroad and off-road medium- and heavy-duty equipment.
(C) Regional air quality improvement and attainment programs implemented by the state or districts in the most impacted regions of the state.
(7) Workforce training initiatives related to advanced energy technology designed to reduce air pollution, including state-of-the-art equipment and goods, and new processes and systems. Workforce training initiatives funded shall be broad-based partnerships that leverage other public and private job training programs and resources. These partnerships may include, though are not limited to, employers, labor unions, labor-management partnerships, community organizations, workforce investment boards, postsecondary education providers including community colleges, and economic development agencies.
(8) Incentives to identify and reduce emissions from high-emitting light-duty vehicles.
(9) Incentives for purchasing electric bicycles, as defined in Section 312.5 of the Vehicle Code.
(d) (1) Beginning January 1, 2011, the state board shall submit to the Legislature a biennial report to evaluate the implementation of the Air Quality Improvement Program established pursuant to this chapter.
(2) The report shall include all of the following:
(A) A list of projects funded by the Air Quality Improvement Account.
(B) The expected benefits of the projects in promoting clean, alternative fuels and vehicle technologies.
(C) Improvement in air quality and public health, greenhouse gas emissions reductions, and the progress made toward achieving these benefits.
(D) The impact of the projects in making progress toward attainment of state and federal air quality standards.
(E) Recommendations for future actions.
(3) The state board may include the information required to be reported pursuant to paragraph (1) in an existing report to the Legislature as the state board deems appropriate.

SEC. 2.

 Section 44274.8 is added to the Health and Safety Code, to read:

44274.8.
 (a) (1) It is the intent of the Legislature that active transportation via electric bicycles becomes a more accessible, viable, and economical mobility option for communities that are traditionally underserved by public transportation.
(2) It is the intent of the Legislature that, to the maximum extent feasible, trips via electric bicycles become a more accessible, viable, and economical mode of clean transportation for trips that would otherwise have been taken in personal motor vehicles.
(b) For purposes of this section, “electric bicycle” has the same meaning as specified in Section 312.5 of the Vehicle Code.
(c) By July 1, 2022, the state board shall, as a part of the Air Quality Improvement Program, establish the Electric Bicycle Rebate Pilot Project and shall implement and administer, until January 1, 2028, the pilot project to provide rebates for purchases of electric bicycles.
(d) In implementing and administering the Electric Bicycle Rebate Pilot Project established pursuant to subdivision (c), the state board shall do all of the following:
(1) Establish, in a public process, guidelines for the administration of the pilot project.
(2) Ensure appropriate outreach and targeting to low- and moderate-income households in an effort to encourage participation in the pilot project.
(3) Encourage appropriate outreach to communities that are traditionally underserved by public transit.
(4) Collaborate with other state departments and agencies to enforce safeguards against fraudulent activity by sellers and purchasers of electric bicycles in accordance with law.
(e) (1) By July 1, 2025, the state board shall submit to the Legislature a midcycle evaluation of the pilot project.
(2) By January 1, 2028, the state board shall submit to the Legislature an end-of-program evaluation of the pilot project.
(3) The state board shall include all of the following in the reports to the Legislature required under this subdivision:
(A) The number of rebates issued under the pilot project.
(B) The total cost to administer the pilot project.
(C) A quantitative analysis of the pilot project benefits and cobenefits, including, but not limited to, both of the following:
(i) The number of personal vehicle trips replaced.
(ii) The amount of reduction in the emissions of greenhouse gases.
(4) A quantitative analysis of the impacts of the pilot project on low-income, medium-income, and high-income purchasers’ decisions in the electric bicycle markets.
(5) A quantitative analysis of how many applications were received from, and funding provided to, persons from communities traditionally underserved by public transit.
(f) The state board shall submit the reports to the Legislature required by subdivision (e) in compliance with Section 9795 of the Government Code.
(g) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

SEC. 3.

 (a) There is hereby appropriated from the Greenhouse Gas Reduction Fund ten million dollars ($10,000,000) to the State Air Resources Board to implement Section 44274.8 of the Health and Safety Code.
(b) Notwithstanding Section 16304 of the Government Code, moneys appropriated by the Legislature pursuant to subdivision (a) shall be available for encumbrance until January 1, 2028.