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AB-1524 State Air Resources Board: zero-emission drayage trucks: Project 800 initiative.(2021-2022)



Current Version: 07/05/21 - Amended Senate         Compare Versions information image


AB1524:v95#DOCUMENT

Amended  IN  Senate  July 05, 2021
Amended  IN  Assembly  May 24, 2021
Amended  IN  Assembly  April 19, 2021
Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1524


Introduced by Assembly Member O’Donnell

February 19, 2021


An act to add Section 44274.3 to the Health and Safety Code, relating to air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 1524, as amended, O’Donnell. State Air Resources Board: zero-emission drayage trucks: Project 800 initiative.
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, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project to provide vouchers to help California fleets purchase hybrid and zero-emission trucks and buses. On September 23, 2020, the Governor issued Executive Order No. N-79-20 establishing 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. The state board created the Project 800 initiative to support the deployment of zero-emission trucks serving California ports by setting a goal of 800 zero-emission drayage truck orders in 2021.
This bill would require the state board to extend the Project 800 initiative to provide continued financial incentives to support the ordering of an additional 1,000 to 1,600 zero-emission drayage trucks in 2022 to serve California ports. The bill would express the intent of the Legislature that an additional 1,000 to 1,600 zero-emission drayage trucks will be ordered by December 31, 2022, and will begin operating at California ports by December 31, 2024, and that funding for the initiative come from, but shall not be limited to, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. The bill would require that funds available pursuant to the initiative only be provided if the purchaser or entity operating a zero-emission drayage truck is in compliance with all applicable labor, employment, tax, and health and safety laws at the time of the purchase of that drayage truck, and maintains compliance thereafter. prohibit Project 800 initiative financial incentives from being made available to an applicant unless that applicant attests to the state board, in writing, that the applicant does not have an applicable law violation, as defined, at the time of application, and that the applicant will not have an applicable law violation for a specified period. The bill would authorize any person to submit a report that a purchaser or entity operating a zero-emission drayage truck that has received Project 800 initiative financial incentives, defined as a “participating fleet,” has failed to provide a truthful attestation or has an applicable law violation during the specified period to the Department of Industrial Relations for investigation. If the Department of Industrial Relations determines that a participating fleet failed to provide a truthful attestation or has an applicable law violation, the bill would require the participating fleet to repay all Project 800 initiative financial incentives received, including interest, as directed by the state board. The bill would prohibit a participating fleet that is on a list maintained by the Division of Labor Standards Enforcement pursuant to a specified law from receiving Project 800 initiative financial incentives.
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) In 2020, the State Air Resources Board adopted regulations to reduce greenhouse gas emissions from heavy-duty trucks and drayage trucks. These regulations include a first-in-the-world rule requiring truck manufacturers to transition from diesel trucks and vans to electric zero-emission trucks beginning in 2024 and requiring every new truck sold in California to be zero emission by 2045. The State Air Resources Board approved the “Heavy-Duty Low NOx Omnibus Regulation,” which requires manufacturers of heavy-duty diesel trucks to comply with tougher emission standards, overhaul engine testing procedures, and further extend engine warranties to ensure that emissions of oxides of nitrogen are reduced to help California meet federal air quality standards and critical public health goals.
(b) Also in 2020, Governor Gavin Newsom issued Executive Order No. N-79-20, which, among other things, requires all drayage trucks in the state to be zero emission by 2035 and sets a number of vehicle emissions goals for the state, including having 100 percent of heavy-duty vehicles in the state be zero emission by 2045.
(c) There are an estimated 30,000 drayage trucks that service California ports each year. Most of these are used trucks. Used drayage trucks cost around $50,000. New zero-emission drayage trucks currently cost over $350,000. Unless funding is provided to offset the initial cost of new zero-emission drayage trucks, higher early-market costs will continue to pose a barrier to the adoption of zero-emission trucks.

SEC. 2.

 Section 44274.3 is added to the Health and Safety Code, to read:

44274.3.
 (a) To meet the state’s 2035 zero-emission drayage truck goal set forth in Executive Order No. N-79-20, the state board shall extend the Project 800 initiative to provide continued financial incentives to support the ordering of an additional 1,000 to 1,600 zero-emission drayage trucks in 2022 to serve California ports.
(b) With regard to the extended Project 800 initiative, it is the intent of the Legislature that both of the following occur:
(1) Funding for the initiative come from, but shall not be limited to, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.
(2) An additional 1,000 to 1,600 zero-emission drayage trucks will be ordered by December 31, 2022, by individuals and companies operating drayage trucks that serve California ports and by December 31, 2024, those trucks will begin operating at California ports.

(c)Funds available pursuant to the Project 800 initiative shall only be provided if the purchaser or entity operating a zero-emission drayage truck is in compliance with all applicable labor, employment, tax, and health and safety laws at the time of the purchase of that drayage truck, and maintains compliance thereafter.

(c) (1) For purposes of this subdivision, the following terms have the following definitions:
(A) “Applicable law violation” means a violation that has a final determination, order, judgment, or award issued against a fleet purchaser of vehicles for engaging in illegal conduct related to the misclassification of employees as independent contractors, including the failure to pay wages, imposing unlawful expenses on employees, failure to remit payroll taxes, and failure to provide workers’ compensation insurance, and that remains unabated or unsatisfied following the period during which an appeal may be made.
(B) “Participating fleet” means a purchaser or entity operating a zero-emission drayage truck that has applied for and received financial incentives pursuant to the Project 800 initiative.
(2) (A) Project 800 initiative financial incentives shall only be available to an applicant that attests to the state board, in writing, to both of the following:
(i) The applicant does not have an applicable law violation at the time the applicant applied for Project 800 initiative financial incentives.
(ii) The applicant will not have an applicable law violation for at least three years from the date of its application for Project 800 initiative financial incentives or for the duration of the incentive agreement, whichever is longer.
(B) The state board shall retain the attestation made by an applicant pursuant to subparagraph (A) for the full ownership period required by the Project 800 initiative.
(C) (i) Any person may submit a report that a participating fleet has failed to provide a truthful attestation pursuant to subparagraph (A) or has an applicable law violation within the applicable period identified in clause (ii) of subparagraph (A) to the Department of Industrial Relations for investigation. The Department of Industrial Relations shall investigate the report and notify the state board of its determination.
(ii) If the Department of Industrial Relations determines that a participating fleet has failed to provide a truthful attestation pursuant to subparagraph (A) or has an applicable law violation within the applicable period identified in clause (ii) of subparagraph (A), the participating fleet shall repay all Project 800 initiative financial incentives received, including interest, as directed by the state board.
(3) A participating fleet that is on the list maintained by the Division of Labor Standards Enforcement pursuant to paragraph (1) of subdivision (b) of Section 2810.4 of the Labor Code is not eligible to receive financial incentives pursuant to the Project 800 initiative.