Code Section Group

Health and Safety Code - HSC

DIVISION 26. AIR RESOURCES [39000 - 44474]

  ( Division 26 repealed and added by Stats. 1975, Ch. 957. )

PART 5. VEHICULAR AIR POLLUTION CONTROL [43000 - 44299.91]

  ( Part 5 added by Stats. 1975, Ch. 957. )

CHAPTER 8.9. California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 [44270 - 44274.7]

  ( Chapter 8.9 added by Stats. 2007, Ch. 750, Sec. 5. )

ARTICLE 3. The Air Quality Improvement Program [44274 - 44274.9]
  ( Article 3 heading added by Stats. 2008, Ch. 313, Sec. 8. )

44274.
  

(a) The Air Quality Improvement Program is hereby created. The program shall be administered by the state board, in consultation with the districts. The state board shall develop guidelines to implement the program. Prior to the adoption of the guidelines, the state board shall hold at least one public hearing. In addition, the state board shall hold at least three public workshops with at least one workshop in northern California, one in the central valley, and one in southern California. The purpose of the program shall be to fund, upon appropriation by the Legislature, air quality improvement projects relating to fuel and vehicle technologies. The primary purpose of the program shall be to fund projects to reduce criteria air pollutants, improve air quality, and provide funding for research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.

(b) The state board shall provide preference in awarding funding to those projects with higher benefit-cost scores that maximize the purposes and goals of the Air Quality Improvement Program. The state board also may give additional preference based on the following criteria, as applicable, in funding awards to projects:

(1) Proposed or potential reduction of criteria or toxic air pollutants.

(2) Contribution to regional air quality improvement.

(3) Ability to promote the use of clean alternative fuels and vehicle technologies as determined by the state board, in coordination with the commission.

(4) Ability to achieve climate change benefits in addition to criteria pollutant or air toxic emissions reductions.

(5) Ability to support market transformation of California’s vehicle or equipment fleet to utilize low carbon or zero-emission technologies.

(6) Ability to leverage private capital investments.

(c) The program shall be limited to competitive grants, revolving loans, loan guarantees, loans, and other appropriate funding measures that further the purposes of the program. Projects to be funded shall include only the following:

(1) Onroad and off-road equipment projects that are cost effective.

(2) Projects that provide mitigation for off-road gasoline exhaust and evaporative emissions.

(3) Projects that provide research to determine the air quality impacts of alternative fuels and projects that study the life-cycle impacts of alternative fuels and conventional fuels, the emissions of biofuel and advanced reformulated gasoline blends, and air pollution improvements and control technologies for use with alternative fuels and vehicles.

(4) Projects that augment the University of California’s agricultural experiment station and cooperative extension programs for research to increase sustainable biofuels production and improve the collection of biomass feedstock.

(5) Incentives for small off-road equipment replacement to encourage consumers to replace internal combustion engine lawn and garden equipment.

(6) Incentives for medium- and heavy-duty vehicles and equipment mitigation, including all of the following:

(A) Lower emission schoolbus programs.

(B) Electric, hybrid, and plug-in hybrid onroad and off-road medium- and heavy-duty equipment.

(C) Regional air quality improvement and attainment programs implemented by the state or districts in the most impacted regions of the state.

(7) Workforce training initiatives related to advanced energy technology designed to reduce air pollution, including state-of-the-art equipment and goods, and new processes and systems. Workforce training initiatives funded shall be broad-based partnerships that leverage other public and private job training programs and resources. These partnerships may include, though are not limited to, employers, labor unions, labor-management partnerships, community organizations, workforce investment boards, postsecondary education providers including community colleges, and economic development agencies.

(8) Incentives to identify and reduce emissions from high-emitting light-duty vehicles.

(d) (1) Beginning January 1, 2011, the state board shall submit to the Legislature a biennial report to evaluate the implementation of the Air Quality Improvement Program established pursuant to this chapter.

(2) The report shall include all of the following:

(A) A list of projects funded by the Air Quality Improvement Account.

(B) The expected benefits of the projects in promoting clean, alternative fuels and vehicle technologies.

(C) Improvement in air quality and public health, greenhouse gas emissions reductions, and the progress made toward achieving these benefits.

(D) The impact of the projects in making progress toward attainment of state and federal air quality standards.

(E) Recommendations for future actions.

(3) The state board may include the information required to be reported pursuant to paragraph (1) in an existing report to the Legislature as the state board deems appropriate.

(Amended by Stats. 2013, Ch. 401, Sec. 14. (AB 8) Effective September 28, 2013.)

44274.4.
  

(a) For purposes of this section, the following terms have the following meanings:

(1) “California Clean Miles Standard and Incentive Program” means the program established pursuant to Section 5450 of the Public Utilities Code.

(2) “Clean Vehicle Rebate Project” means the program established by the board as part of the Air Quality Improvement Program pursuant to this article.

(3) “Transportation network company” has the same meaning as defined in Section 5431 of the Public Utilities Code.

(4) “Zero-emission vehicle” has the same meaning as defined in Section 44258.

(b) The state board shall work with transportation network companies, including their affiliates; fleet owners that provide vehicles by contract to participating drivers for use on transportation network company platforms; entities contracting with participating drivers to provide zero-emission vehicles for use on transportation network company platforms; and stakeholders to evaluate the role of rental fleet, car share fleet, and business Clean Vehicle Rebate Project incentives with the California Clean Miles Standard and Incentive Program.

(Added by Stats. 2018, Ch. 369, Sec. 2. (SB 1014) Effective January 1, 2019.)

44274.5.
  

The Air Quality Improvement Fund is hereby created in the State Treasury, to be administered by the state board. The moneys in the Air Quality Improvement Fund, upon appropriation by the Legislature, shall be expended by the state board in accordance with this chapter to implement the Air Quality Improvement Program. The Legislature may transfer moneys from the fund to the Carl Moyer Memorial Air Quality Standards Attainment Trust Fund.

(Added by Stats. 2007, Ch. 750, Sec. 5. Effective January 1, 2008.)

44274.6.
  

(a) For purposes of this section, the following definitions apply:

(1) “Low income” means a resident of the state whose household income is less than or equal to 300 percent of the federal poverty level.

(2) “Low-income communities” has the same meaning as defined in Section 39713.

(b) Under the Clean Vehicle Rebate Project established as a part of the Air Quality Improvement Program, the state board shall do both of the following:

(1) Provide outreach to low-income households and low-income communities to increase consumer awareness of the Clean Vehicle Rebate Project.

(2) Prioritize rebate payments to low-income applicants.

(c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed.

(Added by Stats. 2018, Ch. 366, Sec. 1. (AB 2885) Effective January 1, 2019. Repealed as of January 1, 2022, by its own provisions. See later operative version added by Sec. 2 of Stats. 2018, Ch. 366)

44274.6.
  

(a) For purposes of this section, the following definitions apply:

(1) “Low income” means a resident of the state whose household income is less than or equal to 300 percent of the federal poverty level.

(2) “Low-income communities” has the same meaning as defined in Section 39713.

(b) Under the Clean Vehicle Rebate Project established as a part of the Air Quality Improvement Program, the state board shall provide outreach to low-income households and low-income communities to increase consumer awareness of the Clean Vehicle Rebate Project.

(c) This section shall become operative on January 1, 2022.

(Repealed and added by Stats. 2018, Ch. 366, Sec. 2. (AB 2885) Effective January 1, 2019. Section operative January 1, 2022, by its own provisions.)

44274.7.
  

(a) Notwithstanding any other provision of this chapter, funds appropriated by the Legislature to the state board from the Air Quality Improvement Fund in the Budget Act of 2008, not used to implement the Air Quality Improvement Program, shall be expended by the state board to provide financial assistance to owners and operators of on-road heavy-duty diesel-fueled motor vehicles for costs associated with early compliance with both of the following regulations:

(1) Regulations to reduce emissions of diesel particulate matter, oxides of nitrogen, and other criteria pollutants, and greenhouse gases from in-use heavy-duty diesel-fueled vehicles.

(2) Regulations to reduce greenhouse gas emissions from heavy-duty tractors and 53-foot box-type trailers that transport freight on state highways.

(b) Funds shall be expended for low- or zero-interest loans or grants.

(c) Priority for funding shall be provided to both of the following:

(1) Owners of less than three on-road heavy-duty diesel-fueled motor vehicles and to those owners and operators most heavily impacted by the regulations described in subdivision (a) who demonstrate financial hardship as determined by the state board.

(2) On-road heavy-duty diesel-fueled motor vehicles that are used for short-haul trucking, including short-haul trucking that crosses state or federal borders where there are significant air pollution impacts in the state.

(d) The state board may contract with the Treasurer for assistance in expending funds through programs implemented by the Treasurer.

(e) The state board shall maximize use of the funds described in this section with other funds that may be available for on-road heavy-duty diesel-fueled motor vehicle pollution reduction, including, but not limited to, the Goods Movement Emission Reduction Program (Chapter 3.2 (commencing with Section 39625) of Part 2) and the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275)).

(f) By January 1, 2010, and each January 1 thereafter until all funds are expended, the state board shall report to the Legislature on the implementation of this section, including, but not limited to, the types of financial assistance provided.

(Added by Stats. 2008, Ch. 760, Sec. 13. Effective September 30, 2008.)

44274.9.
  

(a) For purposes of this section, the following terms mean the following:

(1) “Eligible used vehicle” means a zero- or near-zero emission vehicle, as those terms are defined in Section 44258, and may include, but need not be limited to, any of the following:

(A) A battery electric vehicle.

(B) A fuel cell vehicle.

(C) A plug-in hybrid vehicle.

(2) “Used vehicle” has the same meaning as set forth in Section 665 of the Vehicle Code.

(3) “Vehicle service contract” has the same meaning as set forth in Section 12800 of the Insurance Code.

(b) The state board shall establish the Zero-Emission Assurance Project (ZAP) by allocating moneys, available upon appropriation from the Legislature in the annual Budget Act or other statute, to provide an applicant with a rebate for the replacement of a battery, fuel cell, or related components for an eligible used vehicle; for a vehicle service contract for the battery, fuel cell, or related components; or for all of these.

(c) A rebate issued pursuant to the Zero-Emission Assurance Project shall be limited to one per vehicle.

(d) The state board shall establish minimum eligibility criteria for an applicant to be eligible for a rebate pursuant to the Zero-Emission Assurance Project based on the both of the following:

(1) The relevant vehicle performance criteria, including, but not limited to, all of the following:

(A) Decreased battery storage capacity.

(B) Decreased vehicle range.

(C) Decreased fuel cell power output.

(2) An eligible applicant has an annual household income that is at or below 80 percent of the statewide median income or has a median household income at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.

(e) The state board shall coordinate the Zero-Emission Assurance Project with the Clean Vehicle Rebate Project, established as part of the Air Quality Improvement Program established pursuant to this article, the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5, and the Charge Ahead California Initiative, established pursuant to Chapter 8.5 (commencing with Section 44258), including, but not limited to, all of the following:

(1) Ensuring appropriate outreach and targeting to low- and moderate-income households in an effort to encourage participation.

(2) Expanding financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.

(f) In implementing this section, the state board shall collaborate with other state departments and agencies to enforce safeguards against fraudulent activity by sellers and acquirers of eligible used vehicles that are in accordance with other state laws.

(g) (1) No later than January 1, 2024, the state board shall submit a report to the Legislature that includes, but is not limited to, all of the following:

(A) The number of rebates issued pursuant to the Zero-Emission Assurance Project.

(B) The total cost to administer the Zero-Emission Assurance Project.

(C) A quantitative analysis of the Zero-Emission Assurance Project’s emissions benefits.

(D) A quantitative analysis of the impacts of the Zero-Emission Assurance Project on low-income consumer buyer decisions in the zero- and near-zero emission vehicle markets.

(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(h) The implementation of this section is contingent on an appropriation of moneys for those purposes in the annual Budget Act or other statute.

(i) This section shall become inoperative on July 31, 2025, and, as of January 1, 2026, is repealed.

(Added by Stats. 2018, Ch. 363, Sec. 1. (AB 193) Effective January 1, 2019. Section operative July 31, 2025. Repealed as of January 1, 2026, by its own provisions.)

HSCHealth and Safety Code - HSC3