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AB-1317 Carl Moyer Memorial Air Quality Standards Attainment Program.(2017-2018)

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Date Published: 04/17/2017 09:00 PM
AB1317:v98#DOCUMENT

Amended  IN  Assembly  April 17, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1317


Introduced by Assembly Member Gray

February 17, 2017


An act to amend Section 44281 44275 of the Health and Safety Code, relating to vehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 1317, as amended, Gray. Carl Moyer Memorial Air Quality Standards Attainment Program.
Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board, to provide grants to offset the incremental cost of eligible projects that reduce emissions of air pollutants from vehicular sources in the state and for the funding of a fueling infrastructure demonstration program and technology development efforts. Existing law delineates criteria for eligible grant applicants under the program. covered sources. Existing law defines the term “covered source” for purposes of the program.
This bill would additionally authorize as an eligible grant applicant under the program an operator or owner of point or mobile emissions sources on lands that are wholly or partially under easement for conservation and habitat purposes with the United States Fish and Wildlife Service or the Department of Fish and Wildlife and are located within the boundaries of the grassland ecological area, as defined by the County of Merced. revise the definition of “covered source” to include stationary irrigation or water conveyance engines.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 44275 of the Health and Safety Code, as amended by Section 6 of Chapter 610 of the Statutes of 2015, is amended to read:

44275.
 (a) As used in this chapter, the following terms have the following meanings:
(1) [Reserved]
(2) “Btu” means British thermal unit.
(3) “Commission” means the State Energy Resources Conservation and Development Commission.
(4) “Cost-effectiveness” means dollars provided to a project pursuant to subdivision (d) of Section 44283 for each ton of covered emission reduction attributed to a project or to the program as a whole. In calculating cost-effectiveness, one-time grants of funds made at the beginning of a project shall be annualized using a time value of public funds or discount rate determined for each project by the state board, taking into account the interest rate on bonds, interest earned by state funds, and other factors as determined appropriate by the state board. Cost-effectiveness shall be calculated by dividing annualized costs by average annual emissions reduction. The state board, in consultation with the districts and concerned members of the public, shall establish appropriate cost-effective limits for oxides of nitrogen, particulate matter, and reactive organic gases and a reasonable system for comparing the cost-effectiveness of proposed projects as described in subdivision (a) of Section 44283.
(5) “Covered emissions” include emissions of oxides of nitrogen, particulate matter, and reactive organic gases from any covered source.
(6) “Covered engine” includes any internal combustion engine or electric motor and drive powering a covered source.
(7) “Covered source” includes onroad vehicles, off-road nonrecreational equipment and vehicles, locomotives, marine vessels, agricultural sources of air pollution, as defined in Section 39011.5, stationary irrigation or water conveyance engines, and, as determined by the state board, other categories necessary for the state and districts to meet air quality goals.
(8) “Covered vehicle” includes any vehicle or piece of equipment powered by a covered engine.
(9) “District” means a county air pollution control district or an air quality management district.
(10) “Fund” means the Air Pollution Control Fund established pursuant to Section 43015.
(11) “Incremental cost” means the cost of the project less a baseline cost that would otherwise be incurred by the applicant in the normal course of business. Incremental costs may include added lease, energy, or fuel costs pursuant to Section 44283 as well as incremental capital costs.
(12) “Liquidated” means that all moneys for a specified fiscal year have been spent by a district to reimburse grantees for valid and eligible project invoices and district administrative costs. Payments withheld from the grantee by a district until all contractual reporting requirements are met may be excluded from these amounts for the purposes of liquidation.
(13) “Mobile Source Air Pollution Reduction Review Committee” means the Mobile Source Air Pollution Reduction Review Committee created by Section 44244.
(14) “New very low emission vehicle” means a heavy-duty vehicle that qualifies as a very low emission vehicle when it is a new vehicle, where new vehicle has the same meaning as defined in Section 430 of the Vehicle Code, or that is modified with the approval and warranty of the original equipment manufacturer to qualify as a very low emission vehicle within 12 months of delivery to an owner for private or commercial use.
(15) “NOx” means oxides of nitrogen.
(16) “Program” means the Carl Moyer Memorial Air Quality Standards Attainment Program created by subdivision (a) of Section 44280.
(17) “Recaptured” means those moneys that are returned to a district or the state board by a grantee because that grantee did not meet contractual obligations.
(18) “Repower” means replacing an engine with a different engine. The term repower, as used in this chapter, generally refers to replacing an older, uncontrolled engine with a new, emissions-certified engine, although replacing an older emissions-certified engine with a newer engine certified to lower emissions standards may be eligible for funding under this program.
(19) “Retrofit” means making modifications to the engine and fuel system so that the retrofitted engine does not have the same specifications as the original engine.
(20) “Returned” means those moneys sent by a district to the state board for reallocation because those moneys are not liquidated by a liquidation deadline.
(21) “Schoolbus project” means the purchase of new schoolbuses or the repower or retrofit of emissions control equipment for existing schoolbuses.
(22) “Very low emission vehicle” means a heavy-duty vehicle with emissions significantly lower than otherwise applicable baseline emission standards or uncontrolled emission levels pursuant to Section 44282.
(b) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.

SEC. 2.

 Section 44275 of the Health and Safety Code, as amended by Section 7 of Chapter 610 of the Statutes of 2015, is amended to read:

44275.
 (a) As used in this chapter, the following terms have the following meanings:
(1) [Reserved]
(2) “Btu” means British thermal unit.
(3) “Commission” means the State Energy Resources Conservation and Development Commission.
(4) “Cost-effectiveness” means dollars provided to a project pursuant to subdivision (d) of Section 44283 for each ton of NOx reduction attributed to a project or to the program as a whole. In calculating cost-effectiveness, one-time grants of funds made at the beginning of a project shall be annualized using a time value of public funds or discount rate determined for each project by the state board, taking into account the interest rate on bonds, interest earned by state funds, and other factors as determined appropriate by the state board. Cost-effectiveness shall be calculated by dividing annualized costs by average annual emissions reduction of NOx in this state.
(5) “Covered engine” includes any internal combustion engine or electric motor and drive powering a covered source.
(6) “Covered source” includes onroad vehicles of 14,000 pounds gross vehicle weight rating (GVWR) or greater, off-road nonrecreational equipment and vehicles, locomotives, diesel marine vessels, stationary agricultural engines, stationary irrigation or water conveyance engines, and, as determined by the state board, other high-emitting diesel engine categories.
(7) “Covered vehicle” includes any vehicle or piece of equipment powered by a covered engine.
(8) “District” means a county air pollution control district or an air quality management district.
(9) “Fund” means the Air Pollution Control Fund established pursuant to Section 43015.
(10) “Incremental cost” means the cost of the project less a baseline cost that would otherwise be incurred by the applicant in the normal course of business. Incremental costs may include added lease or fuel costs pursuant to Section 44283 as well as incremental capital costs.
(11) “Liquidated” means that all moneys for a specified fiscal year have been spent by a district to reimburse grantees for valid and eligible project invoices and district administrative costs. Payments withheld from the grantee by a district until all contractual reporting requirements are met may be excluded from these amounts for the purposes of liquidation.
(12) “Mobile Source Air Pollution Reduction Review Committee” means the Mobile Source Air Pollution Reduction Review Committee created by Section 44244.
(13) “New very low emission vehicle” means a vehicle that qualifies as a very low emission vehicle when it is a new vehicle, where new vehicle has the same meaning as defined in Section 430 of the Vehicle Code, or that is modified with the approval and warranty of the original equipment manufacturer to qualify as a very low emission vehicle within 12 months of delivery to an owner for private or commercial use.
(14) “NOx” means oxides of nitrogen.
(15) “Program” means the Carl Moyer Memorial Air Quality Standards Attainment Program created by subdivision (a) of Section 44280.
(16) “Recaptured” means those moneys that are returned to a district or the state board by a grantee because that grantee did not meet contractual obligations.
(17) “Repower” means replacing an engine with a different engine. The term repower, as used in this chapter, generally refers to replacing an older, uncontrolled engine with a new, emissions-certified engine, although replacing an older emissions-certified engine with a newer engine certified to lower emissions standards may be eligible for funding under this program.
(18) “Retrofit” means making modifications to the engine and fuel system such that the retrofitted engine does not have the same specifications as the original engine.
(19) “Returned” means those moneys sent by a district to the state board for reallocation because those moneys are not liquidated by a liquidation deadline.
(20) “Schoolbus project” means the purchase of new schoolbuses or the repower or retrofit of emissions control equipment for existing schoolbuses.
(21) “Very low emission vehicle” means a vehicle with emissions significantly lower than otherwise applicable baseline emission standards or uncontrolled emission levels pursuant to Section 44282.
(b) This section shall become operative on January 1, 2024.

SECTION 1.Section 44281 of the Health and Safety Code, as amended by Section 8 of Chapter 610 of the Statutes of 2015, is amended to read:
44281.

(a)Eligible projects include, but are not limited to, any of the following:

(1)Purchase of new very low or zero-emission covered vehicles or covered heavy-duty engines.

(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.

(3)Purchase and use of emission-reducing add-on equipment that has been verified by the state board for covered vehicles.

(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.

(5)Light- and medium-duty vehicle projects in compliance with guidelines adopted by the state board pursuant to Title 13 of the California Code of Regulations.

(b)No project shall be funded under this chapter after the compliance date required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by the compliance date of a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No covered emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling board’s policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.

(c)The program may also provide funding toward the installation of fueling or energy infrastructure to fuel or power covered sources.

(d)(1)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx, particulate matter (PM), or reactive organic gas (ROG) emissions inventory in California.

(2)An eligible applicant may be an operator or owner of point or mobile emissions sources on lands that satisfy all of the following:

(A)Wholly or partially under easement for conservation and habitat purposes with the United States Fish and Wildlife Service or the Department of Fish and Wildlife.

(B)Within the boundaries of the grassland ecological area, as defined by the County of Merced.

(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.

(f)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.

SEC. 2.Section 44281 of the Health and Safety Code, as amended by Section 20 of Chapter 401 of the Statutes of 2013, is amended to read:
44281.

(a)Eligible projects are any of the following:

(1)Purchase of new very low or zero-emission covered vehicles or covered engines.

(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.

(3)Purchase and use of emission-reducing add-on equipment for covered vehicles.

(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.

(b)No new purchase, retrofit, repower, or add-on equipment shall be funded under this chapter if it is required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling board’s policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.

(c)The program may also provide funding toward installation of fueling or electrification infrastructure as provided in Section 44284.

(d)(1)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx emissions inventory in California.

(2)An eligible applicant may be an operator or owner of point or mobile emissions sources on lands that satisfy all of the following:

(A)Wholly or partially under easement for conservation and habitat purposes with the United States Fish and Wildlife Service or the Department of Fish and Wildlife.

(B)Within the boundaries of the grassland ecological area, as defined by the County of Merced.

(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.

(f)This section shall become operative on January 1, 2024.