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AB-363 Carl Moyer Memorial Air Quality Standards Attainment Program.(2021-2022)

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Date Published: 03/23/2021 09:00 PM
AB363:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 363


Introduced by Assembly Member Medina

February 01, 2021


An act to add Section 44289 to, and to add and repeal Section 44295.5 of, 44287.3 to the Health and Safety Code, relating to vehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 363, as amended, Medina. 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. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals. Existing law authorizes the state board to delegate to an air quality management district or air pollution control district the administration of the program.
Existing law requires the state board to establish or update grant criteria and guidelines for covered vehicle and infrastructure projects as soon as practicable, but not later than July 1, 2017. The state board’s program guidelines describe the minimum criteria and requirements for on-road heavy-duty vehicles and the types of projects that can be incentivized to provide surplus emissions reductions from on-road heavy-duty vehicles through contracts or through the On-Road Heavy-Duty Voucher Incentive Program (VIP). The VIP guidelines allows for the early retirement of existing on-road heavy-duty vehicles, allowing these high-polluting vehicles to be replaced with newer, lower emission vehicles. The VIP further describe the minimum criteria and requirements for eligibility in the VIP, including, but not limited to, limiting the fleet size and vehicle weight class of eligible vehicles, excluding from program eligibility vehicles subject to the solid waste collection vehicle rule and the fleet rule for transit agencies, and prohibiting the leasing of replacement vehicles.
This bill would require the state board, by July 1, 2022, to revise the program guidelines to provide for, regardless of vehicle or equipment technology or fuel type, the uniform calculation of cost-effectiveness, as defined, and program incentives. The bill would require the state board to provide additional incentives for projects eligible for program funding that are deployed in disadvantaged communities, as defined. The bill would also require the state board, for purposes of the VIP, to allow all on-road heavy-duty vehicle types, regardless of vehicle type or application, to participate in the VIP, existing engines, as defined, to be replaced with new engines with lower emissions, and fleets participating in the VIP to lease replacement vehicles, among other VIP modifications.

This bill would require the state board, by January 1, 2023, to adopt an online application process for the submission of grant applications under the program. The bill would require the state board and local air districts administering the program to use the online application process. The bill would require the state board, by January 1, 2023, to review the program and to submit to the Legislature a report on the review containing certain information. The bill would prohibit the state board from amending or adopting regulations making changes to the program until it has submitted the report.

This bill would express the intent of the Legislature to enact subsequent legislation to modernize and reform the program, as provided.

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

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature that the State Air Resources Board design emissions reduction measures for covered vehicular sources in a manner that minimizes costs and maximizes both near-term and long-term benefits for the California’s economy, maximizes additional environmental and economic cobenefits for the state, and complements the state’s efforts to improve near-term air quality.
(b) The South Coast and San Joaquin Valley Air Basins are both designated as areas of extreme nonattainment and are quickly approaching attainment deadlines in 2023 and 2024, respectively.
(c) According to the State Air Resources Board, the transportation sector is responsible for 50% of greenhouse gas emissions, 80% of oxides of nitrogen (NOx) emissions, and 95% of particulate matter emissions.
(d) Freight transportation in the state generates a high portion of local pollution in areas with poor air quality and increasingly contributes to greenhouse gas emissions.
(e) Executive Order No. N-79-20 establishes a goal that 100% of medium- and heavy-duty vehicles in the state be zero-emission by 2045 for all operations where feasible, and by 2035 for drayage trucks. Executive Order No. N-79-20 requires the State Air Resources Board to develop medium- and heavy-duty vehicle regulations requiring increasing volumes of new zero-emission trucks and buses sold and operated in the state to achieve this goal. Executive Order No. N-79-20 does not address near-term emissions reductions.
(f) The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) was designed to achieve near-term emissions reductions, including reductions of emissions from heavy-duty diesel engines that are a major source of air pollution, such as smog-forming NOx and cancer-causing air toxics that include particulate matter from diesel combustion.
(g) The Heavy-Duty Low NOx Omnibus Regulation requires that heavy-duty trucks meet a 0.05 gram per brake horsepower hour (g/bhp-hr) engine standard starting in 2024 and a 0.02 g/bhp-hr engine standard starting in 2027.
(h) In 2020, the State Air Resources Board permanently eliminated funding in the state’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project for heavy-duty trucks that meet a 0.02 g/bhp-hr engine standard. The State Energy Resources Conservation and Development Commission eliminated funding in the Clean Transportation Program for the same trucks. The Volkswagen Environmental Mitigation Trust primarily funds public vehicles.
(i) The Carl Moyer Program has been implemented since 1998 through a partnership between the State Air Resources Board and the state’s 35 local air pollution control and air quality management districts. The program provides incentive funds to private companies and public agencies to purchase cleaner-than-required engines, equipment, and emissions reduction technologies.
(j) The strength of the Carl Moyer Program is its technology neutrality, but the program is no longer an effective driver of immediate and near-term emissions reductions.

SEC. 2.

 Section 44287.3 is added to the Health and Safety Code, to read:

44287.3.
 By July 1, 2022, the state board shall revise the state board’s project grant criteria and guidelines developed pursuant to Section 44287 to do all of the following:
(a) Uniformly calculate the cost-effectiveness, as defined in paragraph (4) of subdivision (a) of Section 44275, of projects eligible for program funding, regardless of vehicle or equipment technology or fuel type.
(b) Ensure that incentive programs established or administered by the state board and districts, either jointly or individually, for projects eligible for program funding are based on emissions reductions and that incentives are calculated uniformly, regardless of vehicle or equipment technology or fuel type.
(c) Provide additional incentives for projects eligible for program funding that are deployed in disadvantaged communities, as defined in Section 39711.
(d) (1) For purposes of the On-Road Heavy-Duty Voucher Incentive Program (VIP), allow all of the following:
(A) Existing engines or existing vehicles, regardless of model year, to participate in the VIP, provided the model year is authorized to be registered in the state with the Department of Motor Vehicles.
(B) All on-road heavy-duty vehicles, regardless of vehicle type or application, to participate in the VIP, including, but not limited to, solid waste collection vehicles, vehicles owned or operated by municipalities, drayage trucks, and transit vehicles.
(C) Existing engines to be replaced with new engines with lower emissions.
(D) Fleets participating in the VIP to lease replacement vehicles. The state board shall require the lease term for a replacement vehicle to be at least three years.
(E) Existing vehicles registered outside of the state to participate in the VIP if it can be demonstrated that each existing vehicle has operated at least 75 percent of the time in the state during each 12-month period for the previous 24 months. The state board shall require replacement vehicles to be registered in the state with the Department of Motor Vehicles.
(F) Any size of fleet to participate in the VIP. The state board may, however, limit the number of vouchers per fleet per year, but to no less than 10 vouchers per fleet per year.
(2) For purposes of this subdivision, “existing engine” or “existing vehicle” means an engine or vehicle that will be turned in by an applicant pursuant to the VIP for dismantling or destruction.

SECTION 1.Section 44289 is added to the Health and Safety Code, to read:
44289.

(a)By January 1, 2023, the state board shall develop an online application process for the submission of grant applications under the program.

(b)The state board and administering district shall use the online application process developed pursuant to subdivision (a) for the submission of grant applications under the program.

SEC. 2.Section 44295.5 is added to the Health and Safety Code, to read:
44295.5.

(a)The state board shall conduct a review of the program and, by January 1, 2023, submit to the Legislature a report on the review that includes all of the following:

(1)The average wait time between the submission of an application and the receipt of a grant by an applicant.

(2)The number of eligible applicants who were denied grants due to a lack of available funding for the program.

(3)Recommendations on streamlining the application process for the program.

(b)The state board shall submit to the Legislature the report required pursuant to subdivision (a) in accordance with Section 9795 of the Government Code.

(c)The state board shall not amend or adopt regulations making changes to the program before submitting the report to the Legislature required pursuant to subdivision (a).

(d)Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2027.

SEC. 3.

It is the intent of the Legislature to enact subsequent legislation to modernize and reform the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 26 of the Health and Safety Code) by requiring the State Air Resources Board to ensure, at a minimum, all of the following:

(a)That there are no model year restrictions for projects eligible for program funding.

(b)That the cost-effectiveness, as defined in paragraph (4) of subdivision (a) of Section 44275 of the Health and Safety Code, of a project is calculated uniformly regardless of vehicle or equipment technology or fuel type.

(c)That incentive programs established or administered by the state board and air quality management districts or air pollution control districts, either jointly or individually, for projects eligible for program funding are based on emission reductions and that incentives are calculated uniformly, regardless of vehicle or equipment technology or fuel type.

(d)That additional incentives are provided for projects eligible for program funding that are deployed in disadvantaged communities, as defined in Section 39711 of the Health and Safety Code.

(e)That, upon confirmation of project eligibility by an air quality management district or air pollution control district, a new truck dealer be permitted to conduct a pre-inspection and certify that the project complies with program funding requirements prior to execution of a project contract by a district.

(f)That a vehicle or truck that is purchased out of state be eligible for program funding if:

(1)The vehicle or truck is part of a fleet.

(2)The vehicle or truck is permanently based and operated in the state.

(3)The vehicle or truck is registered in the state with the Department of Motor Vehicles.