Bill Text: CA AB794 | 2021-2022 | Regular Session | Amended
Bill Title: Air pollution: purchase of new drayage and short-haul trucks: incentive programs: eligibility: labor standards.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-10-09 - Chaptered by Secretary of State - Chapter 748, Statutes of 2021. [AB794 Detail]
Download: California-2021-AB794-Amended.html
Amended
IN
Assembly
May 27, 2021 |
Amended
IN
Assembly
May 24, 2021 |
Amended
IN
Assembly
April 28, 2021 |
Amended
IN
Assembly
March 25, 2021 |
Introduced by Assembly Member Carrillo (Coauthor: Assembly Member Ward) |
February 16, 2021 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 16428.9 of the Government Code is amended to read:16428.9.
(a) Before expending any moneys appropriated to it by the Legislature from the fund, a state agency shall prepare a record consisting of all of the following:SEC. 2.
Section 39501 is added to the Health and Safety Code, to read:39501.
It is the intent of the Legislature that the state board maximize economic cobenefits by conditioning eligibility to participate in grant, loan, voucher, or other incentive programs to purchase new vehicles on compliance with the labor and workforce standards required by Chapter 3.6 (commencing with Section 39680).SEC. 3.
Section 39602.6 is added to the Health and Safety Code, to read:39602.6.
The state board shall condition eligibility to participate in grant, loan, voucher, or other incentive programs to purchase new vehicles on compliance with the labor and workforce standards required by Chapter 3.6 (commencing with Section 39680), as applicable.SEC. 4.
Chapter 3.6 (commencing with Section 39680) is added to Part 2 of Division 26 of the Health and Safety Code, to read:CHAPTER 3.6. Labor and Workforce Standards
Article 1. General Provisions and Definitions
39680.
(a) The Legislature finds and declares all of the following:39681.
This chapter establishes labor and workforce standards as a cobenefit of incentive programs for the purchase of new vehicles that are based on clean air standards. To be eligible for an39682.
For purposes of this chapter, the following definitions apply:(d)“Final assembly point” means the plant, factory, or other place, which is a building or series of buildings in close proximity, where a new light-duty vehicle, including a passenger vehicle, or a medium- or heavy-duty motor vehicle is produced or assembled in the United States from motor vehicle equipment and from which the vehicle is delivered to a dealer in a condition that all component parts necessary to the mechanical operation of the vehicle are included with the vehicle whether or not the component parts are permanently installed in or on the vehicle. For a multistage vehicle, the final assembly point is the location where the first-stage vehicle is assembled.
(e)
(f)
(g)
39683.
(a) The state board, in consultation with the Labor and Workforce Development Agency, including the California Workforce Development Board and the Labor Commissioner, shall condition eligibility to participate in incentive programs for new vehicle purchasing on compliance with the labor and workforce standards described in this chapter.39683.5.
(a) The state board shall provide an opportunity for public input before finalizing the operational guidelines developed pursuant to this chapter.(2)The operational guidelines shall become effective as follows:
(A)Operational guidelines that implement Article 2 (commencing with Section 39690) shall become effective as follows:
(i)For light-duty vehicles, the operational guidelines shall be effective upon adoption of those guidelines.
(ii)For medium- and heavy-duty vehicles, the operational guidelines shall be effective on January 1, 2025.
(B)Operational guidelines that implement Article 3 (commencing with Section 39695) shall become
effective upon adoption of those guidelines.
39684.
This chapter applies to all incentive programs for the purchase of new vehicles that receive funding from, or are administered by, the state board, including, but not limited to, all of the following:(1)Appendix
D of the partial consent decree in United States of America v. Volkswagen AG et al., under Section 39614.
(2)The consent decree in United States of America v. Daimler AG and Mercedes-Benz USA, LLC., Case No. 1:20-cv-2564 (N.D. Cal.) and the partial consent decree in People of the State of California v. Daimler AG and Mercedes-Benz USA,
LLC., Case No. 1:20-cv-2565 (N.D. Cal.).
39685.
This chapter establishes baseline standards, job quality standards, and a structure for full or partial eligibility to participate in incentive programs for the purchase of new vehicles. This chapter applies the standards to(a)Manufacturers of new on-road vehicles.
(b)Fleet purchasers of new vehicles for drayage and short-haul trucking services within the state. The standards do not apply to other fleet purchases for operations outside of this scope.
39686.
The state board or an administering agency, in collaboration with the Labor Commissioner, shall enforce the standards set forth in39687.
(a) The Labor Commissioner, at the request of the administering agency or the state board, may investigate an allegation regarding a violation of the standards set forth in(a)(1)In addition to requiring accurate certification of compliance and disclosure of data, the state board or the agency administering an incentive program shall require that manufacturers of a new vehicle eligible for an incentive sign a contract conditioning the eligibility on compliance with this chapter.
(2)
39687.5.
(a) In addition to requiring accurate certification of compliance and disclosure of data, the state board or the administering agency shall require that fleet purchasers receiving an incentive sign contracts conditioning any incentive received on compliance with this chapter.(1)For manufacturers, the timeframe includes the application process and the six-month period before a vehicle is eligible to receive the incentive.
(2)For fleet purchasers, the timeframe includes the application process and a multiyear
period after receiving the incentive of at least three
years or the duration of the loan, grant, or incentive received, whichever is longer.
39688.
A(a)(1)If an administering agency, the state board, or the Labor Commissioner finds that a manufacturer of new vehicles that is eligible for an incentive is in violation of the standards set forth in Article 2 (commencing with Section 39690), the vehicles of that manufacturer shall not be eligible for an incentive under the incentive program and the manufacturer shall be liable for the repayment
of an amount that is equal to the total aggregate amount of the incentives provided for the purchase of vehicles that were awarded rebates during the six-month period before the finding of noncompliance.
(2)An administering agency, the state board, or the Labor Commissioner may determine noncompliance of a manufacturer for a given model year of an eligible vehicle under an incentive program within six months of publishing a manufacturer’s certification and disclosure of data under Section 39687.
(b)
39688.5.
(a) If, at any point during the term of the contract entered into pursuant to Section 39687.5, an administering agency, the state board, or the Labor Commissioner finds that a fleet purchaser that received an incentive was in violation of the standards set forth in Article 3 (commencing with Section 39695) during any portion of the term of the contract entered into pursuant to Section 39687.5, or that the fleet purchaser failed to make correct and accurate disclosures required under Section 39697, the fleet purchaser is in breach of the contract and shall be liable for the repayment of any incentive for which the contract entered into under Section 39687.5 was still in effect during the time period that the fleet purchaser was out of compliance. The time period shall include the claim period of any judgment issued against the fleet purchaser for an applicable law violation, along with any other period identified by the administering agency, the state board, or the Labor Commissioner.(c)
39688.6.
(a) The state board, in collaboration with the Labor and Workforce Development Agency, shall implement a process for the appeal of violations of this chapter.39689.
The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.Article 2. Vehicle Manufacturing Labor and Workforce Standards
(a)This article establishes labor and workforce standards for manufacturers to meet to qualify their new vehicles, excluding public transit buses, for incentive programs subject to this chapter.
(b)A new vehicle is eligible for an incentive if the manufacturer demonstrates to the agency administering the incentive program and the state board that it is in compliance with the labor and workforce standards set forth in Sections 39691 and 39692 for the prior three-year period.
For a new vehicle to be eligible for an incentive amount, a manufacturer shall do all of the following:
(a)(1)Respect internationally recognized labor rights.
(2)Comply with internationally recognized labor rights in its supply chain of imported components. These rights include, but are not limited to, the prohibitions on forced labor, child labor, and discrimination with respect to work, and the freedom of association and right to organize.
(3)Certify to the
administering agency and the state board compliance with internationally recognized labor rights. The state board may provide standards for this certification based on the California Sweatfree Policy, Section 6108 of the Public Contract Code, the core conventions of the International Labour Organization, Social Accountability 8000 standards, or comparable certification standards.
(b)Beginning January 1, 2025, assemble 100 percent of
each eligible vehicle, at the final assembly point, in the United States.
(c)Disclose data that supports the certification of eligibility pursuant to this article and Article 1 (commencing with Section 39680) on an annual basis.
For a new vehicle to be eligible for an incentive amount, a manufacturer shall do all of the following:
(a)Demonstrate to the administering agency and the state board its commitment to hiring disadvantaged workers by doing both of the following:
(1)Demonstrate that it has commitments through a community partnership to recruit, hire, and train all of the following:
(A)Individuals with employment barriers that limit their ability to gain employment, including, but not limited to, unemployment, lack of work experience, lack of English language skills, technical skills or educational attainment, criminal justice history, disability status, foster care history, vulnerability to discrimination, or other barriers. The state board may further define the scope of employment barriers with reference to eligibility factors for unemployment insurance in California or other states.
(B)Workers who have been displaced, on and after January 1, 2020, from the fossil fuel industry for nondisciplinary reasons after more than six months of service.
(2)Disclose to the
administering agency and the state board both of the following:
(A)A community benefit or workforce agreement that commits to hiring and training workers, to the extent it is available.
(B)Data showing that the manufacturer has hired disadvantaged workers, including those recruited through a community partnership.
(b)Demonstrate to the administering agency and the state board participation in job training programs by doing both of the following:
(1)Produce new vehicles using apprentices who are certified by a state or federal program, in conjunction with a contractually mandated training program or a plan provided to the state to train production workers, in the skills and technical knowledge needed to manufacture the vehicle and related technologies.
(2)Certify or disclose data to the administering agency and the state board that demonstrates its use of certified apprentices, contractually mandated training, or a plan to train production workers.
(c)(1)Demonstrate to the administering agency and the state board that it pays workers in a facility where the new vehicle is assembled the following:
(A)For all workers, at least 120 percent of the California minimum wage.
(B)For production workers, the prevailing wage for specific occupational titles. The state board may provide guidance on the prevailing wage based on data for average wages reported for production employees in the motor vehicle industry by the United States Bureau of Labor Statistics Occupational Employment Statistics.
(2)The manufacturer shall disclose to the administering agency and the state board the wage average and range that it pays for specific occupational titles in facilities that assemble vehicles or vehicle technologies.
(d)(1)Preserve employee access to dispute settlement options available under the laws of the state where the vehicle or vehicle technology is assembled.
(2)The manufacturer shall disclose to the administering agency and the state board the incentive program policies or contract terms that preserve dispute options, including access to public agencies and courts, and availability of judicial remedies.
(e)Demonstrate to the
administering agency and the state board its commitment to using full-time employees by disclosing both of the following:
(1)A community benefit or workforce agreement that sets full-time employment as a goal.
(2)The number and percentage of its employees who are full time and part time, permanent and temporary, and direct hire and contractor employees.
(a)(1)A new light-duty vehicle shall be eligible for 100 percent of the amount of incentive provided by an incentive program subject to this chapter
if the manufacturer demonstrates compliance with Section 39691.
(2)A new light-duty vehicle is eligible for additional incentives as follows:
(A)An additional 40 percent if the manufacturer demonstrates compliance with Section 39692.
(B)An additional 20 percent if the manufacturer demonstrates that the components of the eligible vehicle have been manufactured in the United States. The state board may provide guidance on this requirement based on the practices for federal procurement of light-duty vehicles, including practices that implement the federal Buy American Act (41 U.S.C. Sec. 8301 et seq.).
(C)An additional 10 percent if the eligible vehicle meets either of the following:
(i)One hundred percent of the eligible vehicle is assembled entirely at a final assembly point in California.
(ii)One hundred percent of the battery component of an eligible vehicle is produced in California.
(b)If
the state board determines that there are constraints to the implementation of a requirement of subdivision (a) and delays or suspends the implementation of that requirement pursuant to subdivision (d) of Section 39683.5,
a delay or suspension of that requirement does not affect the eligibility of a vehicle based on other requirements specified in subdivision (a).
(a)(1)A new medium- or heavy-duty vehicle shall be eligible for 100 percent of the amount of an incentive if the manufacturer complies with
Section 39691.
(2)A new medium- or heavy-duty vehicle is eligible for additional incentives as follows:
(A)An additional 10 percent if the manufacturer demonstrates compliance with Section 39692.
(B)An additional 5 percent if the manufacturer demonstrates that the components of the vehicle have been manufactured in the United States. The state board may provide guidance on this requirement based on the practices for federal procurement of light-duty vehicles, including
practices that implement the federal Buy American Act (41 U.S.C. Sec. 8301 et seq.).
(C)An additional 5 percent if the eligible vehicle meets either of the following:
(i)One hundred percent of the eligible vehicle is assembled entirely at a final assembly point in California.
(ii)One hundred percent of the battery component of an eligible vehicle is produced in California.
(b)If the state board
determines that there are constraints to the implementation of a requirement of
subdivision (a) and delays or suspends the implementation of that requirement pursuant to subdivision (d) of Section 39683.5, the delay or suspension does not affect the eligibility of a vehicle based on other requirements specified in subdivision (a).