Bill Text: CA SB1275 | 2013-2014 | Regular Session | Chaptered
Bill Title: Vehicle retirement and replacement: Charge Ahead
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2014-09-21 - Chaptered by Secretary of State. Chapter 530, Statutes of 2014. [SB1275 Detail]
Download: California-2013-SB1275-Chaptered.html
BILL NUMBER: SB 1275 CHAPTERED
BILL TEXT
CHAPTER 530
FILED WITH SECRETARY OF STATE SEPTEMBER 21, 2014
APPROVED BY GOVERNOR SEPTEMBER 21, 2014
PASSED THE SENATE AUGUST 28, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN ASSEMBLY AUGUST 22, 2014
AMENDED IN ASSEMBLY AUGUST 18, 2014
AMENDED IN ASSEMBLY JULY 1, 2014
AMENDED IN SENATE MAY 6, 2014
AMENDED IN SENATE APRIL 21, 2014
INTRODUCED BY Senator De León
(Coauthor: Senator Pavley)
(Coauthors: Assembly Members Bocanegra, Bonta, Garcia, Holden, and
Ting)
FEBRUARY 21, 2014
An act to amend Section 44125 of, and to add Chapter 8.5
(commencing with Section 44258) to Part 5 of Division 26 of, the
Health and Safety Code, relating to vehicular air pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 1275, De León. Vehicle retirement and replacement: Charge Ahead
California Initiative.
(1) Existing law creates an enhanced fleet modernization program
for the retirement of high polluting vehicles to be administered by
the Bureau of Automotive Repair pursuant to guidelines adopted by the
State Air Resources Board. Existing law requires the program's
guidelines to be updated no later than June 30, 2015. Existing law
requires the updated guidelines to ensure vehicle replacement be an
option for all motor vehicle owners and may be in addition to
compensation for vehicles retired, as specified.
This bill would require the updated guidelines to ensure there be
a mobility option, as defined, and that the compensation for a
mobility option be no less than $2,500. The bill would authorize the
state board to increase the amount of the mobility option as
necessary to maximize the air quality benefits of the program while
also ensuring participation by low-income motor vehicle owners, as
specified. The bill also would require the updated guidelines to
ensure the inclusion of car sharing, as specified.
(2) 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,
reduction of criteria air pollutants and improvement of air quality.
Pursuant to the Air Quality Improvement Program, the state board has
established the Clean Vehicle Rebate Project to promote the
production and use of zero-emission vehicles and the Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project to provide
vouchers to help California fleets to purchase hybrid and
zero-emission trucks and buses.
This bill would establish the Charge Ahead California Initiative
to be administered by the state board, in consultation with the State
Energy Resources Conservation and Development Commission, air
pollution control and air quality management districts, and the
public. The bill would state that the goals of the initiative are to,
among other things, place in service at least 1,000,000
zero-emission and near-zero-emission vehicles by January 1, 2023, and
to increase access for disadvantaged, low-income, and
moderate-income communities and consumers to zero-emission and
near-zero-emission vehicles. The bill would require the state board
to include, commencing with the Air Quality Improvement Program
funding plan for the 2016-17 fiscal year, a specified funding plan
that includes the immediate fiscal year and a forecast of estimated
funding needs for the subsequent 2 years commensurate with meeting
the goals of the Charge Ahead California Initiative; to update the
plan at least every 3 years through January 1, 2023; to adopt, no
later than June 30, 2015, specified revisions to the criteria and
other requirements for the Clean Vehicle Rebate Project; and to
establish programs that further increase access to and direct
benefits for disadvantaged, low-income, and moderate-income
communities and consumers from electric transportation.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Seven of the 10 cities with the most severe air pollution in
the United States are in California. California has the largest
proportion of its population, over 40 percent, living close to or
near busy roadways and who may be exposed to an elevated risk of air
pollution and health impacts.
(b) California's low-income and disadvantaged populations continue
to face disproportionate impacts from substandard air quality in the
form of higher rates of respiratory illnesses, hospitalizations, and
premature death. Climate change is expected also to have
disproportionate impacts on disadvantaged, low-income, and other
vulnerable communities in California.
(c) Residents and businesses annually spend more than $70 billion
in transportation fuel bills.
(d) Cars and trucks are the single largest source of greenhouse
gas emissions in California. They also are the largest contributor to
air pollution that harms public health.
(e) Zero-emission and near-zero-emission vehicles, including
light-, medium-, and heavy-duty vehicles and buses, can improve the
health and welfare of all residents, especially those in lower income
households and disadvantaged communities, by reducing air pollution
and greenhouse gas emissions.
(f) California businesses stand to benefit from increased
deployment of zero-emission and near-zero-emission vehicles through
reduced fuel expenditures and reduced pollution exposure to workers
and communities.
(g) California attracts over half of the nation's venture capital
for clean technology and ranks high among the states in the number of
workers and facilities supporting the clean vehicle and electric
vehicle industries.
(h) Automakers and truck manufacturers are in early
commercialization of zero-emission and near-zero-emission vehicles,
which can dramatically lower smog and greenhouse gas emissions even
when emissions from the production, distribution, and refining of
fuels and the generation of electricity are considered.
(i) Electric utilities are providing clean renewable electricity
in increasing amounts to transportation customers throughout the
state. Charging-service providers are beginning to deploy electric
vehicle charging infrastructure throughout the state. Expanding the
market for zero-emission and near-zero-emission vehicles to
underserved markets in California is a priority.
(j) Low-carbon transportation has been identified as an eligible
investment under the Greenhouse Gas Reduction Fund Investment Plan
and Communities Revitalization Act (Chapter 4.1 (commencing with
Section 39710) of Part 2 of Division 26 of the Health and Safety
Code). The act has identified low-carbon freight transport and
zero-emission passenger transportation as a recommended area for
investment.
(k) It is the goal of the state to place in service at least one
million zero-emission and near-zero-emission vehicles, including
cars, trucks, and buses, by January 1, 2023, and to establish a
self-sustaining zero-emission and near-zero-emission vehicle market
in which zero-emission and near-zero-emission vehicles are a viable
mainstream option for individual vehicle purchasers, businesses, and
public fleets.
(l) It is the goal of the state to increase access for
disadvantaged, low-income, and moderate-income communities and
consumers to zero-emission and near-zero-emission vehicles and to
increase the placement of those vehicles in those communities and
with those consumers in order to enhance the air quality, lower
greenhouse gases, and promote overall benefits for those communities
and consumers.
SEC. 2. Section 44125 of the Health and Safety Code is amended to
read:
44125. (a) No later than July 1, 2009, the state board, in
consultation with the bureau, shall adopt a program to commence on
January 1, 2010, that allows for the voluntary retirement of
passenger vehicles and light-duty and medium-duty trucks that are
high polluters. The program shall be administered by the bureau
pursuant to guidelines adopted by the state board.
(b) No later than June 30, 2015, the state board, in consultation
with the bureau, shall update the program established pursuant to
subdivision (a). The program shall continue to be administered by the
bureau pursuant to guidelines updated and adopted by the state
board.
(c) The guidelines shall ensure all of the following:
(1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the bureau.
(2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized under law.
(3) The program is available for high polluting passenger vehicles
and light-duty and medium-duty trucks that have been continuously
registered in California for two years prior to acceptance into the
program or otherwise proven to have been driven primarily in
California for the last two years and have not been registered in
another state or country in the last two years. The guidelines may
require a vehicle to take, complete, or pass a smog check inspection.
(4) The program is focused where the greatest air quality impact
can be identified.
(5) (A) Compensation for retired vehicles shall be at least one
thousand five hundred dollars ($1,500) for a low-income motor vehicle
owner, as defined in Section 44062.1, and no more than one thousand
dollars ($1,000) for all other motor vehicle owners.
(B) Replacement or a mobility option may be an option for all
motor vehicle owners and may be in addition to compensation for
vehicles retired pursuant to subparagraph (A). For low-income motor
vehicle owners, as defined in Section 44062.1, compensation toward a
replacement vehicle or mobility option shall be no less than two
thousand five hundred dollars ($2,500). Compensation toward a
replacement vehicle for all other motor vehicle owners shall not
exceed compensation for low-income motor vehicle owners.
(C) Compensation for either retired or replacement vehicles or a
mobility option for low-income motor vehicle owners may be increased
as necessary to maximize the air quality benefits of the program
while also ensuring participation by low-income motor vehicle owners,
as defined in Section 44062.1. Increases in compensation amounts may
be based on factors, including, but not limited to, the age of the
retired or replaced vehicle, the emissions benefits of the retired or
replaced vehicle, the emissions impact of any replacement vehicle,
participation by low-income motor vehicle owners, as defined in
Section 44062.1, and the location of the vehicle in an area of the
state with the poorest air quality.
(6) Cost-effectiveness and impacts on disadvantaged and low-income
populations are considered. Program eligibility may be limited on
the basis of income to ensure the program adequately serves persons
of low or moderate income.
(7) Provisions that coordinate the vehicle retirement and
replacement and mobility option components of the program with the
vehicle retirement component of the bureau's Consumer Assistance
Program, established pursuant to other provisions of this chapter, to
ensure vehicle owners participate in the appropriate program to
maximize emissions reductions.
(8) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.
(9) Specific steps to ensure the vehicle replacement and mobility
option component of the program is available in areas designated as
federal extreme nonattainment.
(10) A requirement that vehicles eligible for retirement have
sufficient remaining life. Demonstration of sufficient remaining life
may include proof of current registration, passing a recent smog
check inspection, or passing another test similar to a smog check
inspection.
(d) When updating the guidelines to the program established
pursuant to subdivision (a), the state board shall study and consider
all the following elements:
(1) Methods of financial assistance other than vouchers.
(2) An option for automobile dealerships or other used car sellers
to accept cars for retirement, provided the cars are dismantled
consistent with the requirements of the program.
(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.
(4) Increased emphasis on the replacement of high polluters with
cleaner vehicles or the increased use of public transit and car
sharing that results in the increased utilization of the vehicle
replacement and mobility option component of the program.
(5) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit and car
sharing use as a result of the program.
(6) Increased partnerships and outreach with community-based
organizations.
(e) For purposes of this section, the following terms have the
following meanings:
(1) "Car sharing" has the same definition as in Section 44258.
(2) "Mobility option" means a voucher for public transit or car
sharing.
SEC. 3. Chapter 8.5 (commencing with Section 44258) is added to
Part 5 of Division 26 of the Health and Safety Code, to read:
CHAPTER 8.5. CHARGE AHEAD CALIFORNIA INITIATIVE
44258. For purposes of this chapter, the following terms have the
following meanings:
(a) "Car sharing" means a model of vehicle rental where users can
rent vehicles for short periods of time and users are members that
have been preapproved to drive.
(b) "Disadvantaged community" means a community identified by the
California Environmental Protection Agency pursuant to Section 39711.
(c) "Near-zero-emission vehicle" means a vehicle that utilizes
zero-emission technologies, enables technologies that provide a
pathway to zero-emissions operations, or incorporates other
technologies that significantly reduce criteria pollutants, toxic air
contaminants, and greenhouse gas emissions, as defined by the state
board in consultation with the State Energy Resources Conservation
and Development Commission consistent with meeting the state's mid-
and long-term air quality standards and climate goals.
(d) "Zero-emission vehicle" means a vehicle that produces no
emissions of criteria pollutants, toxic air contaminants, and
greenhouse gases when stationary or operating, as determined by the
state board.
44258.4. (a) Any moneys utilized by this act from the Greenhouse
Gas Reduction Fund, established pursuant to Section 16428.8 of the
Government Code, shall be consistent with the appropriations
processes and criteria established by the Greenhouse Gas Reduction
Fund Investment Plan and Communities Revitalization Act (Chapter 4.1
(commencing with Section 39710) of Part 2).
(b) The Charge Ahead California Initiative is hereby established
and shall be administered by the state board. The goals of this
initiative are to place in service at least 1,000,000 zero-emission
and near-zero-emission vehicles by January 1, 2023, to establish a
self-sustaining California market for zero-emission and
near-zero-emission vehicles in which zero-emission and
near-zero-emission vehicles are a viable mainstream option for
individual vehicle purchasers, businesses, and public fleets, to
increase access for disadvantaged, low-income, and moderate-income
communities and consumers to zero-emission and near-zero-emission
vehicles, and to increase the placement of those vehicles in those
communities and with those consumers to enhance the air quality,
lower greenhouse gases, and promote overall benefits for those
communities and consumers.
(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts, and the
public, shall do all of the following:
(1) (A) Include, commencing with the Air Quality Improvement
Program funding plan for the 2016-17 fiscal year, a funding plan that
includes the immediate fiscal year and a forecast of estimated
funding needs for the subsequent two fiscal years commensurate with
meeting the goals of this chapter. Funding needs may be described as
a range that identifies the projected high and low funding levels
needed for the two-year forecast period to contribute to technology
advancement, market readiness, and consumer acceptance of zero- and
near-zero-emission vehicle technologies. The funding plan shall
include a market and technology assessment for each funded zero- and
near-zero-emission vehicle technology to inform the appropriate
funding level, incentive type, and incentive amount. The forecast
shall include an assessment of when a self-sustaining market is
expected and how existing incentives may be modified to recognize
expected changes in future market conditions.
(B) Projects included in the forecast may include, but are not
limited to, any of the following:
(i) The Clean Vehicle Rebate Project, established pursuant to
Section 44274.
(ii) Light-duty zero-emission and near-zero-emission vehicle
deployment projects eligible under the Alternative and Renewable Fuel
and Vehicle Technology Program, established pursuant to Article 2
(commencing with Section 44272) of Chapter 8.9.
(iii) Programs adopted pursuant to paragraph (4).
(2) Update the plan required pursuant to paragraph (1) at least
every three years through January 1, 2023.
(3) No later than June 30, 2015, adopt revisions to the criteria
and other requirements for the Clean Vehicle Rebate Project,
established pursuant to Section 44274, to ensure the following:
(A) Rebate levels can be phased down in increments based on
cumulative sales levels as determined by the state board.
(B) Eligibility is limited based on income.
(C) Consideration of the conversion to prequalification and
point-of-sale rebates or other methods to increase participation
rates.
(4) (A) Establish programs that further increase access to and
direct benefits for disadvantaged, low-income, and moderate-income
communities and consumers from electric transportation, including,
but not limited to, any of the following:
(i) Financing mechanisms, including, but not limited to, a loan or
loan-loss reserve credit enhancement program to increase consumer
access to zero-emission and near-zero-emission vehicle financing and
leasing options that can help lower expenditures on transportation
and prequalification or point-of-sale rebates or other methods to
increase participation rates among low- and moderate-income
consumers.
(ii) Car sharing programs that serve disadvantaged communities and
utilize zero-emission and near-zero-emission vehicles.
(iii) Deployment of charging infrastructure in multiunit dwellings
in disadvantaged communities to remove barriers to zero-emission and
near-zero-emission vehicle adoption by those who do not live in
detached homes. This clause does not preclude the Public Utilities
Commission from acting within the scope of its jurisdiction.
(iv) Additional incentives for zero-emission, near-zero-emission,
or high-efficiency replacement vehicles or a mobility option
available to participants in the enhanced fleet modernization
program, established pursuant to Article 11 (commencing with Section
44125) of Chapter 5.
(B) Programs implemented pursuant to this paragraph shall provide
adequate outreach to disadvantaged, low-income, and moderate-income
communities and consumers, including partnering with community-based
organizations.
