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AB-1655 Hydrogen fuel.(2019-2020)

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Date Published: 03/28/2019 09:00 PM
AB1655:v98#DOCUMENT

Amended  IN  Assembly  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1655


Introduced by Assembly Member O’Donnell

February 22, 2019


An act to amend Section 43018.9 of the Health and Safety Code, relating to vehicular air pollution. An act to add Section 43869.5 to the Health and Safety Code, relating to vehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 1655, as amended, O’Donnell. Hydrogen-fueled vehicles. Hydrogen fuel.
Existing law requires the State Energy Resources Conservation and Development Commission, in partnership with the State Air Resources Board, and in consultation with the State Water Resources Control Board, the Department of Food and Agriculture, and other relevant state agencies, to develop and adopt a state plan to increase the use of alternative transportation fuels, as specified. Existing law requires the state board to adopt specified hydrogen fuel regulations that, among other things, ensures state funding for the production and use of hydrogen fuel contributes to the reduction of greenhouse gas emissions, criteria air pollutant emissions, and toxic air contaminant emissions.
This bill would require the state board, no later than January 1, 2022, to adopt a regulation on the zero-carbon energy content of hydrogen transportation fuel, as specified.

Existing law, until January 1, 2024, requires the State Air Resources Board to annually aggregate and make available information on the number of hydrogen-fueled vehicles that motor vehicle manufacturers project to be sold or leased over the next 3 years and the total number of hydrogen-fueled vehicles registered with the Department of Motor Vehicles through April 30. Existing law, until January 1, 2024, requires the state board, based on that information, to evaluate the need for additional publicly available hydrogen-fueling stations, as specified, and report findings to the State Energy Resources Conservation and Development Commission on the need for additional publicly available hydrogen-fueling stations, as specified.

This bill would make technical, nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 43869.5 is added to the Health and Safety Code, to read:

43869.5.
 No later than January 1, 2022, the state board shall adopt a regulation that does all of the following:
(a) Adopts a zero-carbon standard for hydrogen fuel produced for or dispensed by fueling stations for transportation purposes with the following schedule:
(1) Thirty-three percent of the hydrogen fuel produced for or dispensed by fueling stations for transportation purposes be made from eligible zero-carbon energy resources, as described in Section 43869, no later than January 1, 2022.
(2) Sixty-six percent of the hydrogen fuel produced for or dispensed by fueling stations for transportation purposes be made from eligible zero-carbon energy resources, as described in Section 43869, by 2030.
(3) One hundred percent of the hydrogen fuel produced for or dispensed by fueling stations for transportation purposes be made from eligible zero-carbon energy resources, as described in Section 43869, by 2035.
(b) Defines zero carbon.

SECTION 1.Section 43018.9 of the Health and Safety Code is amended to read:
43018.9.

(a)For purposes of this section, the following terms have the following meanings:

(1)“Commission” means the State Energy Resources Conservation and Development Commission.

(2)“Publicly available hydrogen-fueling station” means the equipment used to store and dispense hydrogen fuel to vehicles according to industry codes and standards that is open to the public.

(b)Notwithstanding any other law, the state board shall have no authority to enforce any element of its existing clean fuels outlet regulation or of any other regulation that requires or has the effect of requiring that any supplier, as defined in Section 7338 of the Revenue and Taxation Code as in effect on May 22, 2013, construct, operate, or provide funding for the construction or operation of any publicly available hydrogen-fueling station.

(c)On or before June 30, the state board shall annually aggregate and make available all of the following:

(1)The number of hydrogen-fueled vehicles that motor vehicle manufacturers project to be sold or leased over the next three years as reported to the state board pursuant to the Low Emission Vehicle regulations, as currently established in Sections 1961 to 1961.2, inclusive, of Title 13 of the California Code of Regulations.

(2)The total number of hydrogen-fueled vehicles registered with the Department of Motor Vehicles through April 30.

(d)On or before June 30, the state board, based on the information made available pursuant to subdivision (c), shall annually do both of the following:

(1)Evaluate the need for additional publicly available hydrogen-fueling stations for the subsequent three years in terms of quantity of fuel needed for the actual and projected number of hydrogen-fueled vehicles, geographic areas where fuel will be needed, and station coverage.

(2)Report findings to the commission on the need for additional publicly available hydrogen-fueling stations in terms of number of stations, geographic areas where additional stations will be needed, and minimum operating standards, such as number of dispensers, filling protocols, and pressures.

(e)(1)The commission shall allocate twenty million dollars ($20,000,000) annually to fund the number of stations identified pursuant to subdivision (d), not to exceed 20 percent of the moneys appropriated by the Legislature from the Alternative and Renewable Fuel and Vehicle Technology Fund, established pursuant to Section 44273, until there are at least 100 publicly available hydrogen-fueling stations in operation in the state.

(2)If the commission, in consultation with the state board, determines that the full amount identified in paragraph (1) is not needed to fund the number of stations identified by the state board pursuant to subdivision (d), the commission may allocate any remaining moneys to other projects, subject to the requirements of the Alternative and Renewable Fuel and Vehicle Technology Program pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.

(3)Allocations by the commission pursuant to this subdivision shall be subject to all of the requirements applicable to allocations from the Alternative and Renewable Fuel and Vehicle Technology Program pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.

(4)The commission, in consultation with the state board, shall award moneys allocated in paragraph (1) based on the best available data, including information made available pursuant to subdivision (d), and input from relevant stakeholders, including motor vehicle manufacturers that have planned deployments of hydrogen-fueled vehicles, according to a strategy that supports the deployment of an effective and efficient hydrogen-fueling station network in a way that maximizes benefits to the public while minimizing costs to the state.

(5)Notwithstanding paragraph (1), once the commission determines, in consultation with the state board, that the private sector is establishing publicly available hydrogen-fueling stations without the need for government support, the commission may cease providing funding for those stations.

(6)On or before December 31, the commission and the state board shall annually and jointly review and report on progress toward establishing a hydrogen-fueling network that provides the coverage and capacity to fuel vehicles requiring hydrogen fuel that are being placed into operation in the state. The commission and the state board shall consider the following, including, but not limited to: the available plans of automobile manufacturers to deploy hydrogen-fueled vehicles in California and their progress toward achieving those plans, the rate of deployment of hydrogen-fueled vehicles, the length of time required to permit and construct hydrogen-fueling stations, the coverage and capacity of the existing hydrogen-fueling station network, and the amount and timing of growth in the fueling network to ensure fuel is available to these vehicles. The review shall also determine the remaining cost and timing to establish a network of 100 publicly available hydrogen-fueling stations and whether funding from the Alternative and Renewable Fuel and Vehicle Technology Program remains necessary to achieve this goal.

(f)To assist in the implementation of this section and maximize the ability to deploy fueling infrastructure as rapidly as possible with the assistance of private capital, the commission may design grants, loan incentive programs, revolving loan programs, and other forms of financial assistance. The commission also may enter into an agreement with the Treasurer to provide financial assistance to further the purposes of this section.

(g)Funds appropriated to the commission for the purposes of this section shall be available for encumbrance by the commission for up to four years from the date of the appropriation and for liquidation up to four years after expiration of the deadline to encumber.

(h)Notwithstanding any other law, the state board, in consultation with districts, shall convene working groups to evaluate the policies and goals contained within the Carl Moyer Memorial Air Quality Standards Attainment Program, pursuant to Section 44280, and Assembly Bill 923 (Chapter 707 of the Statutes of 2004).

(i)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.