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AB-1184 Vehicular air pollution: electric vehicles: incentives. (2017-2018)

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Date Published: 06/26/2017 09:00 PM
AB1184:v96#DOCUMENT

Amended  IN  Senate  June 26, 2017
Amended  IN  Assembly  May 30, 2017
Amended  IN  Assembly  March 30, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1184


Introduced by Assembly Member Ting

February 17, 2017


An act to add Section 740.17 to the Public Utilities Section 44274.8 to, and to add Chapter 6.5 (commencing with Section 44215) to Part 5 of Division 26 of, the Health and Safety Code, relating to electric vehicles. vehicular air pollution, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1184, as amended, Ting. Electric vehicles. Vehicular air pollution: electric vehicles: incentives.
(1) 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, the reduction of criteria air pollutants and improvement of air quality. Pursuant to its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles.
This bill would establish the California Electric Vehicle Initiative that would be administered by the state board, in coordination with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission, as part of the Clean Vehicle Project to provide incentives to the market to achieve a statewide deployment of 1.5 million electric vehicles by 2025, as specified.
This bill would require the state board, no later than February 1, 2018, to begin a review to adopt revisions to all other specified vehicle electrification programs to ensure those programs consider funding benefits for disadvantaged individuals, low-income individuals, or both for all eligible vehicle types, as specified. The bill would require the state board to annually develop and approve a low-carbon transportation funding plan.
(2) The California Global Warming Solutions Act of 2006 designates the state board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law continuously appropriates 35% of the annual proceeds of the fund for transit, affordable housing, and sustainable communities programs and 25% of the annual proceeds of the fund for certain components of a specified high-speed rail project.
This bill would continuously appropriate $5 million each year from the Greenhouse Gas Reduction Fund to the state board to support low-carbon transportation projects, including, among others, specified car-sharing programs and additional incentives for existing electric vehicle programs, thereby making an appropriation.
This bill also would authorize the state board to provide for advance payment for projects funded by the state board from the Greenhouse Gas Reduction Fund, as specified.
(3) Existing law requires, until January 1, 2024, that a portion of the registration fees for motor vehicles and vessels be deposited into the Air Quality Improvement Fund and, upon appropriation, be expended for the implementation of the Air Quality Improvement Program. Existing law specifies the types of projects that are eligible to receive funding under the program.
This bill would authorize the state board to provide for advance payment for projects funded by the state board as part of the Air Quality Improvement Program, including from the Air Quality Improvement Fund, as specified.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), the State Air Resources Board (state board), electrical corporations, and the motor vehicle industry, to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of plug-in hybrid and electric vehicles and, by July 1, 2011, to adopt rules that address specified related issues. Existing law requires the PUC, in cooperation with the Energy Commission, the state board, air quality management districts and air pollution control districts, electrical and gas corporations, and the motor vehicle industry, to evaluate and implement policies to promote the development of equipment and infrastructure needed to facilitate the use of electric power and natural gas to fuel low-emission vehicles. Existing law, enacted as part of the Clean Energy and Pollution Reduction Act of 2015, requires the PUC, in consultation with the Energy Commission and the state board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. The PUC is required to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, if they are consistent with the above-described purposes, do not unfairly compete with nonutility enterprises, include performance accountability measures, and are in the interests of ratepayers.

The California Global Warming Solutions Act of 2006, establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020, equivalent to the statewide greenhouse gas emissions levels in 1990. The state board is additionally required to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions. The state board is authorized to include market-based compliance mechanisms in its regulations in furtherance of achieving a statewide greenhouse gas emissions limit, as specified. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations.

The bill would require the PUC to establish the California Electric Vehicle Initiative, to be administered by electrical corporations, subject to the PUC’s supervision, and funded by credits earned by the electrical corporations pursuant to the Low-Carbon Fuel Standard regulations. The bill would require that the program incentivize the purchase of electric vehicles in the state.

The Public Utilities Act makes any public utility that violates the act, or that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the PUC, guilty of a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: YES   Local Program: YESNO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030 to meet the state’s climate goals will require widespread transportation electrification.
(b) Continuing to reduce greenhouse gas emissions is critical for the protection of all areas of the state, but especially for the state’s low-income communities, as those communities are affected first and, most frequently, by the adverse impacts of climate change, including suffering an increased frequency of extreme weather events, such as drought, heat, and flooding. The state’s low-income communities also are disproportionately impacted by the deleterious effects of climate change on public health.
(c) California’s low-income 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 also is expected to have disproportionate impacts on low-income and other vulnerable communities in the state.
(d) 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 busy roadways and exposed to an elevated risk of air pollution and health impacts.
(e) It is the goal of the Legislature to support transportation electrification and the widespread deployment of zero-emission vehicles throughout the state; to establish a self-sufficient zero-emission industry in which electric vehicles are a viable and economic option for all consumers and businesses by 2030; and to promote jobs, business growth, and the public health through the smart planning of reliable energy resources and deployment of clean transportation technology.
(f) Accelerating the transition to electric vehicles in the state will reduce fuel bills and transportation costs across the state for all residents, promote grid management policies and integration of eligible renewable energy resources that bring benefits to electric customers, support advanced transportation businesses and jobs, and deliver billions of dollars per year in climate, health, and energy benefits.
(g) Widespread transportation electrification requires increased participation and access for low- and moderate-income communities and other consumers of electric vehicles, and increased use of those vehicles in those communities and by other consumers to enhance overall air quality, lower greenhouse gases emissions, and promote general benefits to those communities and other consumers.
(h) The California Electric Vehicle Initiative (Chapter 6.5 (commencing with Section 44215) of Part 5 of Division 26 of the Health and Safety Code) will offer benefits to all electric customers by reducing curtailment and improving integration of renewable resources, optimizing operation of conventional resources, maximizing utilization of grid assets, as well as lowering greenhouse gas emissions and improving air quality.
(i) Electric vehicles provide a new source of load for electric utilities that increase grid asset utilization, which reduces rates for all electric customers. Electrical corporations should support the transition to these vehicles.
(j) Participants in the California Electric Vehicle Initiative should have access to a set of rate options designed to maximize grid asset utilization while minimizing overall bill impact.
(k) In addition to electric customer protection objectives, a principal goal of energy resource planning and investment is to minimize the cost to society of reliable energy services provided in the state, improve the environment and power grid management, encourage the diversity of energy sources through better integration of eligible renewable energy resources, including wind, solar, biomass, and geothermal energy, energy storage, and widespread transportation electrification.
(l) Widespread transportation electrification should stimulate innovation and competition, enable consumer options in charging equipment and services, attract private capital investments, and create high-quality jobs for residents.
(m) Battery technology is improving faster than expected and electric vehicles are expected to reach cost parity with conventional alternatives in the mid-2020s.
(n) Deploying electric vehicles should be consistent and complementary with policies to develop charging infrastructure throughout the state. These efforts should facilitate increased sales of electric vehicles by making charging easily accessible and should provide the opportunity to access electricity as a fuel that is cleaner and less costly than gasoline or other fossil fuels in public and private locations.
(o) Providing incentives for the purchase, lease, use, and effective grid integration of electric vehicles in the near-term will accelerate deployment and availability of these vehicles in the state and globally, deliver associated health and climate benefits, and provide overall economic benefits to drivers, electric customers, and the state as a whole.
(p) Incentives for electric vehicles will further the following goals:
(1) One million zero-emission vehicles by 2022 and establishing a self-sustaining market, as stated in the Charge Ahead California Initiative (Chapter 8.5 (commencing with Section 44258) of Part 5 of Division 26 of the Health and Safety Code).
(2) Governor Brown’s target of 1.5 million zero-emission vehicles by 2025.
(3) Governor Brown’s recent public statements to set a further ambitious target of 5 million zero-emission vehicles by 2030, to be on track to achieve an 80 percent reduction of greenhouse gas emissions in the state by 2050.

SEC. 2.

 Chapter 6.5 (commencing with Section 44215) is added to Part 5 of Division 26 of the Health and Safety Code, to read:
CHAPTER  6.5. California Electric Vehicle Initiative

44215.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Battery” has the same meaning as in subdivision (a) of Section 44268.
(b) “Initiative” means the California Electric Vehicle Initiative established pursuant to this chapter.
(c) “Electric vehicle charging station” has the same meaning as in subdivision (c) of Section 44268.
(d) “Electric vehicle” means a vehicle that uses a plug-in battery to provide all the motive power of the vehicle.
(e) “Plug-in hybrid electric vehicle” means a vehicle that uses a plug-in battery to provide at least 25 miles of driving range.
(f) “Smart charging” means the potential to charge flexibly to respond to the electrical transmission and distribution grid’s market conditions, particularly for integrating wind and solar generation.

44215.2.
 The California Electric Vehicle Initiative is hereby established to be administered by the state board, in coordination with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission. To meet the objectives of the initiative, the state board shall do all of the following:
(a) Authorize, on or before September 1, 2018, to December 31, 2025, inclusive, changes to the Clean Vehicle Rebate Program, established as part of the Air Quality Improvement Program, established pursuant to Article 3 (commencing with Section 44274) of Chapter 8.9, to establish the initiative and provide incentives to the market to achieve a statewide deployment of 1,500,000 electric vehicles by 2025.
(b) Establish a portfolio of funding resources for the initiative to deliver the continuous funding of point-of-sale rebates that decline upon the achievement of market penetration targets by vehicle and income segment, as described in Section 44215.4.
(c) Promote, in coordination with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission, widely available but unexploited electrical transmission and distribution grid benefits to electric customers, including, but not limited to, all of the following:
(1) Smart charging for the benefit of the grid.
(2) Integration of eligible renewable energy resources.
(3) Maximization of the utilization of grid assets.
(4) Avoidance of the curtailment of resources previously provided incentives by the state or procured to meet targets for the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).
(d) Promote a self-sustaining state market for electric vehicles in which those vehicles are a viable mainstream option for individual vehicle purchasers, businesses, and public fleets to increase access for low- and moderate-income communities and consumers to electric vehicles and to increase the placement of those vehicles in those communities and with those consumers to enhance air quality, reduce greenhouse gas emissions, and promote overall benefits for those communities and consumers.

44215.4.
 On or before September 1, 2018, the state board, in coordination with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission, shall do all of the following:
(a) (1) Develop a plan for the continuous funding for the initiative from a portfolio of existing funding sources in an amount not to exceed three billion dollars ($3,000,000,000). The continuous funding plan may include, but need not be limited to, taxpayer-neutral financing options to derive immediate value for point-of-sale rebates from a cashflow stream of current and future funding resources.
(2) Establish a declining rebate plan for the initiative that includes an initial rebate to purchasers of a compact electric vehicle in an amount that establishes a net purchase price, after incentives and tax credits, that approximates the cost of the most frequently sold compact car in the state and gradually reduces the rebate to zero as the program moves to each subsequent rebate step based on achieving successful market penetration targets by income segment.
(3) The funding plan required pursuant to paragraph (1) shall establish a rebate segment for each rebate step to further increase access to and direct benefits from electric vehicles for low- and moderate-income consumers. Those segments may include, but need not limited to, any of the following:
(A) Higher incentives for critical areas of the electrical transmission and distribution grid support, as determined by the Public Utilities Commission.
(B) Financing mechanisms, including, but not limited to, both of the following:
(i) A loan or loan-loss reserve credit enhancement program to increase consumer access to electric vehicle financing and leasing options that can help lower expenditures on transportation.
(ii) The prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.
(b) Establish a lower rebate level for plug-in hybrid electric vehicles that reflects the electrical storage capacity of the batteries in each eligible plug-in hybrid electric vehicle compared to the electrical storage capacity of the batteries in the most commonly sold electric vehicle that has a range of 200 miles or more and with a plug-in hybrid electric vehicle rebate distribution sunset date of no later than December 31, 2023.
(c) Establish rebate eligibility, dollar level, and dollar volume by rebate step and vehicle type and direct rebate disbursements to be publicly tracked by the initiative’s contracted administrator based on income and vehicle segments.
(d) Direct the initiative’s contracted administrator to share each rebate applicant’s and recipient’s contact information with the applicant’s and recipient’s electrical corporation or publicly owned electric utility that encourage the efficient use of electric vehicles as resources for the electrical transmission and distribution grid.

44215.6.
 (a) No later than February 1, 2018, as part of the Clean Vehicle Rebate Program, established as part of the Air Quality Improvement Program, established pursuant to Article 3 (commencing with Section 44274) of Chapter 8.9, the state board shall begin a review to adopt revisions to all other vehicle electrification programs authorized pursuant to this division to ensure those programs consider funding benefits for disadvantaged individuals, low-income individuals, or both for all eligible vehicle types. The state board shall annually develop and approve a low-carbon transportation funding plan.
(b) (1) Notwithstanding Section 13340 of the Government Code, five hundred million dollars ($500,000,000) is hereby continuously appropriated each year without regard to fiscal years from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, to the state board to support low-carbon transportation projects, including, but not limited to, all of the following:
(A) Car-sharing programs that serve disadvantaged communities and utilize electric vehicles as a mode of transportation.
(B) Additional incentives for existing electric vehicle programs, including, but not limited to, the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5, and programs that provide incentives for access to used electric vehicles that the state board determines can further the adoption of electric vehicle transportation in disadvantaged communities, low-income communities, or both.
(C) Light-duty equity projects; incentives for low- and zero-emission heavy-duty vehicles, schoolbuses, transit buses, and offroad equipment; and sustainable freight projects.
(2) Programs implemented pursuant to this subdivision shall provide adequate outreach to disadvantaged, low-income, and moderate-income communities and consumers, including partnering with community-based organizations.

SEC. 3.

 Section 44274.8 is added to the Health and Safety Code, to read:

44274.8.
 (a) Notwithstanding any other law, the state board may provide, to the extent moneys are available, for advance payment for projects funded by the state board pursuant to this article, including projects funded from the Air Quality Improvement Fund, created pursuant to Section 44274.5, based on the total grant or contract to all entities if the state board makes a finding that those advance payments will further the purpose of improving air quality.
(b) Notwithstanding any other law, the state board may provide, to the extent funds are available, for projects funded by the state board from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, for advance payment based on the total grant or contract to all entities if the state board makes a finding that those advance payments will reduce greenhouse gas emissions.

SECTION 1.Section 740.17 is added to the Public Utilities Code, to read:
740.17.

The commission shall establish a California Electric Vehicle Initiative, to be administered by electrical corporations, subject to the commission’s supervision, and funded by credits earned by electrical corporations pursuant to the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations). The program shall incentivize the purchase of electric vehicles in the state, including incentives to low-income households and incentives for electrical corporations for the deployment of electric vehicle charging infrastructure.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.