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AB-2554 Air pollution: assistance program: drayage vehicles.(2021-2022)



Current Version: 02/17/22 - Introduced

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AB2554:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2554

Introduced by Assembly Member O’Donnell

February 17, 2022

An act to add Article 5 (commencing with Section 44274.20) to Chapter 8.9 of Part 5 of Division 26 of, the Health and Safety Code, relating to air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 2554, as introduced, O’Donnell. Air pollution: assistance program: drayage vehicles.
Existing law establishes the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program in the State Air Resources Board’s Air Quality Improvement Program and designates the California Pollution Control Financing Authority to administer the program to make financial tools and nonfinancial support available to operators of medium- and heavy-duty vehicle fleets to enable those operators to transition their fleet to zero-emission vehicles. Existing law requires the authority to designate port and drayage truck fleets as one of the highest priority fleets that will have access to the program until a date determined by the state board. “Executive Order No. N-79-20” sets a goal of all drayage trucks operating in the state to be 100% zero-emission vehicles by 2035.
This bill would require the state board to provide incentives for drayage trucks through existing programs, or to develop and implement the Zero-Emission Drayage Truck Financial Assistance Program, to assist entities serving the ports of the state to meet the above-stated goal by providing financial assistance to offset the cost for the purchase of zero-emission drayage trucks.
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 emissions of greenhouse gases 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 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, sets a goal of 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) In 2017, the Ports of Los Angeles and Long Beach set the shared goal of achieving zero-emission drayage operations by 2035, which aligns with the goal set by Governor Newsom in Executive Order No. N-79-20.
(d) In 2021, the State Air Resources Board created Project 800, which provided state funding to help offset the cost of 800 new zero-emission drayage trucks.
(e) In January of 2022, Governor Newsom proposed hundreds of millions of dollars in the budget to purchase an additional 1,000 zero-emission drayage trucks in California.
(f) In April of 2022, the Port of Los Angeles will commence collection of a clean truck incentive rate that is expected to generate approximately $45,000,000 annually to help offset the cost of zero-emission drayage trucks that service the port.
(g) There are over 30,000 drayage trucks that regularly 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, it will be difficult for individuals and businesses to purchase new more expensive zero-emission drayage trucks.
(h) It will take a combination of state and local incentive funding to close the gap between a used $50,000 diesel drayage truck and a new $350,000 zero-emission drayage truck.

SEC. 2.

 Article 5 (commencing with Section 44274.20) is added to Chapter 8.9 of Part 5 of Division 26 of the Health and Safety Code, to read:
Article  5. Zero-Emission Drayage Truck Financial Assistance Program

44274.20.
 The state board shall either provide incentives for drayage trucks through programs in existence as of January 1, 2023, or develop and implement the Zero-Emission Drayage Truck Financial Assistance Program, to assist entities serving the ports of the state to meet in the goal regarding drayage trucks set forth in Executive Order No. N-79-20 by providing financial assistance to offset the cost for the purchase of zero-emission drayage trucks.