44274.10.
For purposes of this division, article, the following definitions apply:(a) “Administering agency” means the California Pollution Control Financing Authority.
(b) “Financing tools” includes, but is not limited to, any of the following:
(1) Capital instruments, which are financing instruments that increase access to capital or other resources or reduce the cost of capital, or both, such
as interest rate reductions,
public-backed “soft” loans, grants, bonds, and investment aggregation, also known as warehousing.
(2) Risk reduction instruments, which are financing instruments that reduce exposure to risk or uncertainty, such as performance guarantees and asset residual value guarantees.
(3) Cost smoothing instruments, which are financing instruments that reduce and smooth up-front or recurrent costs, or both, such as operational leasing, all-inclusive leasing, also known as wet leasing, lease-purchase agreements, and on-bill financing.
(c) “Fleet” means one or more vehicles under common control or ownership.
(d) “Medium- and heavy-duty vehicle” includes, but is not limited to, trucks, buses, and vehicles used for construction and earth moving purposes.
(d)
(e) “Nonfinancial supports” means technical support, such as supports for technical management of electric medium- and heavy-duty vehicles, technical assistance for financing approaches, battery health programs, and creation of residual markets, or policy action, such as policy measures to enable financing or encourage fleet transitions.
(e)“Priority population” means a community identified as disadvantaged pursuant to Section 39711, or a low-income household or a low-income community, as defined in Section 39713.
(f) “Program” means the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program established pursuant to Section 44274.11.
(g) “Underserved community” means a community that meets one of the following criteria: any of the following communities:
(1)Is a “disadvantaged community” as defined by subdivision (g) of Section 75005 of the Public Resources Code.
(2)Is included within the definition of “low-income communities”
(1) A low-income community as defined by paragraph (2) of subdivision (d) of Section 39713.
(3)Is within an area identified as among the most disadvantaged 25 percent in the state according to the California Environmental Protection Agency and based on the most recent California Communities Environmental Health
Screening Tool, also known as CalEnviroScreen.
(4)Is a community in which at least 75 percent of public school students in the project area are eligible to receive free or reduced-price meals under the National School Lunch Program.
(2) A community identified as a disadvantaged community by the California Environmental Protection Agency pursuant to Section 39711.
(5)Is a
(3) A community located on lands belonging to a federally recognized California Native American tribe.
44274.12.
As part of the interagency working agreement entered into pursuant to Section 44274.11, the state board and the administering agency shall do all of the following when developing and implementing the program:(a) Seek input from environmental justice organizations, medium- and heavy-duty vehicle fleets of diverse sizes and types, financiers, original truck equipment manufacturers, transportation, logistics, and fleet management companies, nongovernmental organizations, and other relevant stakeholders on all of the following topics:
(1) Which medium- and heavy-duty fleets should be designated as high-priority fleets
pursuant to subdivision (d), taking into consideration the implications for climate change, pollution and environmental justice, state policy regarding clean air and transportation, and post-COVID economic recovery.
(2) How to apply to the program the Governor’s Office of Business and Economic Development’s findings on the critical barriers that impede medium- and heavy-duty fleets in different sectors and of different fleet sizes from transitioning to zero-emission vehicles.
(3) The financing tools and nonfinancial supports that should be used to help overcome the critical barriers identified pursuant to paragraph (2).
(4) How to determine whether the program is successful in meeting its goals.
(b) (1) Develop and design, in consultation with other relevant state agencies and building on the input received pursuant to subdivision (a), financing tools and nonfinancial supports that are most appropriate for different sizes and sectors of medium- and heavy-duty vehicle fleets.
(2) Ensure the financing tools and nonfinancial supports identified pursuant to paragraph (1) have no redundancies or inefficiencies with other state programs.
(3) Identify the funding needs and potential funding sources for the financing tools and nonfinancial supports identified pursuant to paragraph (1).
(c) Ensure that a minimum of 75 percent of financing
products offered under the program are directed towards operators of medium- and heavy-duty fleets whose fleets directly impact, or operate ____ percent of the time in, an underserved community or priority population, or both. community.
(d) Designate which medium- and heavy-duty fleets are the high-priority fleets that will have access to the program first based on a consideration of state transportation policy and the input received pursuant to subdivision (a). The administering agency shall designate port and drayage truck fleets as one of the high-priority fleets.
fleets until a date determined by the state board.
(e) Provide financing tools to operators of small and microfleets of medium- and heavy-duty vehicles that include, but are not limited to, direct assistance, such as incentives, grants, and vouchers, that increase access to capital and reduce exposure to market risks or uncertainties. The state board and the administering agency shall determine how many vehicles constitute a small fleet and a microfleet for purposes of the program.
(f) Provide financing tools to operators of large fleets of medium- and heavy-duty vehicles to increase access to private capital in ways that make it easier, less expensive, or reduce uncertainties, or any combination of these things, for the operators to transition to
zero-emission vehicles. The state board and the administering agency shall determine how many vehicles constitute a large fleet for purposes of the program.
(g) Enable the stacking or coordinated combination of financial tools and nonfinancial supports.
(h) Facilitate the decommissioning of high-polluting medium- and heavy-duty vehicles in accordance with the state’s clean air targets and goals.
(i) Enable the development of replicable business models that allow private capital to fully engage, while meeting the goals of this division. article.
(j) Include optimal financing tools and appropriate nonfinancial supports that are designed and targeted to catalyze electrification at scale.
(k) Encourage emerging flexible business, operational, and ownership models that accomplish the goals of this division, article, such as lease-backs or electric vehicle managers and lessors.
(l) (1) Establish deadlines for Ensure that the
program that align
aligns with milestones established in Executive Order N-79-20 and the goals set forth in Resolution 20-19 adopted by the state board on June 25, 2020, along with the proposed revisions to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations known as the Proposed Advanced Clean Trucks Regulation, which were approved by the state board on June 25, 2020.
(2) The administering agency state board shall do both of the following:
(A) Establish penetration
targets for deployment of financing tools and nonfinancial supports to operators operators, including, but not limited to, those whose fleets directly impact, or operate ____ percent of the time in, underserved communities and priority populations for each milestone specified in paragraph (1).
(B) Compile data and information about the deployment of financing tools and nonfinancial supports provided pursuant to the program to operators
operators, including, but not limited to, those whose fleets directly impact, or operate ____ percent of the time in, underserved communities and priority populations.
communities.
(m) Coordinate The state board shall coordinate with the Public Utilities Commission and Commission, the State Energy Resources Conservation and Development Commission Commission, and the administering agency to provide marketing, education, and outreach to underserved communities and priority populations
regarding the program.
(n) Ensure the financing tools and nonfinancial supports designed and developed pursuant to this section are available to operators of medium- and heavy-duty fleet operators by January 1, 2023.