Today's Law As Amended

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SB-551 California Zero-Emission Vehicle Authority.(2021-2022)

As Amends the Law Today


 Chapter 1.8 (commencing with Section 12100.500) is added to Part 2 of Division 3 of Title 2 of the Government Code, to read:

CHAPTER  1.8. California Zero-Emission Vehicle Authority
 (a) The Legislature finds and declares that California is the national leader in the adoption of zero-emission vehicles, with a market share of nearly 50 percent of all zero-emission vehicles on the road in the United States. California’s leadership on zero-emission vehicle policy has helped spur a strong and growing transportation electrification and zero-emissions goods movement industry, with electric vehicles recently becoming the state’s number one export. With the current health and economic crisis caused by COVID-19, California needs to help put Californians back to work, restart our economy, and clean up the dirtiest air in the nation plaguing many communities across the state, primarily communities of color and disadvantaged communities. Accelerating progress in transportation electrification and zero-emissions goods movement can respond to all these challenges while prioritizing equity, job training, and a long-term economic benefit of leading the world’s efforts to transition to zero-emission vehicles. A recent assessment by HR&A Advisors found that, on average, a one-million-dollar ($1,000,000) investment in zero-emissions transportation can support approximately 15 jobs.
(b) On September 23, 2020, Governor Gavin Newsom issued Executive Order N-79-20, calling upon the State Air Resources Board to develop passenger vehicle and truck regulations requiring increasing volumes of new zero-emission vehicles sold in the state towards the target of 100 percent of instate sales by 2035, and also to develop regulations requiring increasing volumes of medium- and heavy-duty vehicles like zero-emission trucks and buses be sold and operated in the state by 2045.
(c) In order to maximize and ensure the objectives of subdivision (a) and goals expressed in the Executive Order are achieved, existing funding and financing sources shall be leveraged to support proven programs, such as the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, Clean Cars 4 All Program, Clean Vehicle Rebate Program, and the Clean Transportation Program, as well as establishing new revenue sources and financing tools to meet diverse market needs. These tools may include climate bonds, securitizing available funding sources to provide a continuous source of incentives, revolving loan funds, credit enhancements, seed funding for loan guarantees or loan loss reserves, and other tools to help unlock private capital markets.
(d) A California Zero-Emission Vehicle Authority would provide senior leadership, strategic planning, and expanded partnering to complement the work of state agencies responsible for zero-emission vehicle programs, zero-emission vehicle charging and refueling infrastructure, and other related infrastructure by ensuring comprehensive and integrated strategic direction and management to achieve the objectives of subdivision (a) and goals expressed in the Executive Order.
 (a) (1) The California Zero-Emission Vehicle Authority is hereby established within the Governor’s Office of Business and Economic Development. The authority shall coordinate activities among state agencies to advance light-, medium-, and heavy-duty zero-emission vehicles and zero-emission infrastructure deployment, as well as ensure related equity, workforce development, economic development, and other needs are addressed to grow and support the sector statewide in order to achieve the goals of Executive Order N-79-20.
(2) The California Zero-Emission Vehicle Authority shall have an Executive Director.
(b) The authority shall develop new funding and financing programs, as separately authorized by the Legislature, including, but not limited to, incentives, rebates, tax credits, loan guarantees, reverse auctions, seed funds, pooled insurance funds, and matching grants. These funding and financing programs shall address priority needs, including to address equity, advance early-stage markets such as heavy-duty zero-emission trucks, lower the cost of capital, unlock private capital, expand zero-emission vehicle utilization, enable business models not captured by current programs, and address gaps in the market to accelerate the transition to a zero-emissions transportation system including, but not limited to:
(1) Electric vehicle supply equipment (EVSE) deployment, in order to achieve the state’s significant goal of 250,000 charging stations and 200 hydrogen refueling stations by 2025, including customer and utility upgrades, as informed by the working group convened pursuant to subclause (II) of clause (ii) of subparagraph (A) of paragraph (2) of subdivision (c), for existing retail and commercial refueling centers for light-, medium-, and heavy-duty vehicles, as well as charging of light-, medium-, and heavy-duty vehicles in low-income and disadvantaged communities, downtown cores, multiunit dwellings, in state and federal highway corridors, along state evacuation routes, along key goods movement routes, and in warehouses, parking garages, urban areas, retail centers, community locations, workplaces, residential locations, and in off-grid charging systems, among others.
(2) Zero-emission electric vehicle research, design, development, and manufacturing and supply chain support, such as lithium from the Salton Sea for battery supply chain, to create export opportunities as well as assist current businesses operating in the state and encourage new businesses and new market players to locate in the state.
(3) Public and private sector fleet procurement across all vehicle classes, including, but not limited to, municipal sedans, light-duty trucks, delivery trucks, emergency response vehicles, schoolbuses, charter-party carriers, transportation network companies, refuse trucks, drayage trucks in and around ports, and heavy-duty off-road equipment, as well as zero-emission vehicle infrastructure to support these fleets.
(4) Funding dedicated to address both vehicle, infrastructure, and travel needs in low-income and disadvantaged communities, as well as reduction of pollution in low-income and disadvantaged communities.
(5) Workforce development to ensure support for all segments, including utility upgrades, zero-emission infrastructure installation and maintenance, manufacturing, research and design, and related vocations.
(c) (1) The authority shall build upon the Zero-Emission Vehicle Market Development Strategy to actively coordinate among state, regional, and local governmental entities to facilitate and accelerate the transition to a zero-emission transportation system.
(2) In order to implement paragraph (1), the authority shall do all of the following:
(A) Serve as the state coordinator of transportation electrification and zero-emission goods movement efforts to remove barriers and friction to accelerate progress towards the state’s zero-emission vehicle goals by coordinating among the State Air Resources Board, Energy Commission, Independent System Operator, Public Utilities Commission, California Transportation Commission, and other state agencies, along with load-serving entities and electric distribution utilities, air quality boards, public agencies, local municipalities, and end users, such as trucking industry representatives, low-income and disadvantaged community representatives, and others.
(i) Coordinate various efforts across relevant state agencies to ensure they are not enacting rules or regulations that are in conflict with one another.
(ii) (I) Develop recommendations and guidance in the form of model ordinances, commercial electric vehicle tariffs, and other actions for accelerating and streamlining permitting, interconnection, and other processes key to achieving transportation electrification and zero-emissions goods movement that are informed by a working group and other stakeholders.
(II) Convene a working group that consists of experts, including, but not limited to, representatives from investor-owned utilities and publicly owned electric utilities, to evaluate practical and cost-effective methods to streamline zero-emission infrastructure permitting, the electric utility interconnection, energization, and service upgrade request process, and timelines and local permitting process costs and timelines described in subclause (I). The working group may further consider and evaluate the nature of customer upgrades and utility infrastructure retrofits that may be needed to support zero-emission infrastructure of light-, medium-, and heavy-duty vehicles, as well as impacts to the electrical grid.
(B) Ensure equity in access to zero-emissions mobility options in low-income and disadvantaged communities taking into consideration the approaches and best practices from the Disadvantaged Communities Advisory Group that formed as a result of the Clean Energy and Pollution Reduction Act of 2015, (Chapter 547 of the Statutes of 2015), including mobility options that can provide the public with a sustainable transportation alternative regardless of personal zero-emission vehicle ownership or access to zero-emission infrastructure.
(C) Establish zero-emission-vehicle-related job training programs, safety certificates, and skilled jobs to help ensure sufficient skilled workers for high-quality jobs for the buildout of a clean transportation system.
(3) In order to implement paragraph (1), the authority may do either of the following:
(A) Review existing state targets and propose needed updates across all agencies to reduce emissions and achieve carbon neutrality by 2045 and track progress on reaching those targets.
(B) Increase electric vehicle charging and hydrogen refueling infrastructure building code requirements for new and existing buildings.
(d) Every two years, the authority shall publish on its internet website an update of progress on each of the activities described in this section and notify the relevant policy committees of the Legislature of its progress. This update shall include, but is not limited to, metrics tracking all of the following:
(1) Vehicle sales.
(2) Associated infrastructure deployment.
(3) Funding dedicated to advancing the vehicles deployed, infrastructure installed, and shared mobility options available for advancing the mobility and transportation needs of low-income and disadvantaged communities.
(4) Private investments secured.
(5) Growth of zero-emissions transportation-related industry, including job creation, in consultation with the Labor and Workforce Development Agency and the California Workforce Development Board.
(6) Associated job training programs and related metrics.
(e) In implementing the provisions of this chapter, the authority shall ensure that the State Air Resources Board serves as the lead state agency on zero-emission vehicle policy and that the State Energy Resources Conservation and Development Commission serves as the lead state agency on zero-emission vehicle infrastructure policy.
 This chapter shall remain in effect only until January 1, 2029, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2029, deletes or extends that date.