2007 California Health and Safety Code Chapter 8.9. California Alternative And Renewable Fuel, Vehicle Technology, Clean Air, And Carbon Reduction Act Of 2007

CA Codes (hsc:44270-44274.7)

44270.  This chapter shall be known, and may be cited, as the
California Alternative and Renewable Fuel, Vehicle Technology, Clean
Air, and Carbon Reduction Act of 2007.



44270.3.  For the purposes of this chapter, the following terms have
the following meanings:
   (a) "Commission" means the State Energy Resources Conservation and
Development Commission.
   (b) "Full fuel-cycle assessment" or "life-cycle assessment" means
evaluating and comparing the full environmental and health impacts of
each step in the life cycle of a fuel, including, but not limited
to, all of the following:
   (1) Feedstock production, extraction, transport, and storage.
   (2) Fuel production, distribution, transport, and storage.
   (3) Vehicle operation, including refueling, combustion,
conversion, permeation, and evaporation.
   (c) "Vehicle technology" means any vehicle, boat, off-road
equipment, or locomotive, or component thereof, including its engine,
propulsion system, transmission, or construction materials.



44271.  (a) This chapter creates the Alternative and Renewable Fuel
and Vehicle Technology Program, pursuant to Section 44272, to be
administered by the commission, and the Air Quality Improvement
Program, pursuant to Section 44274, to be administered by the state
board. The commission and the state board shall do all of the
following in fulfilling their responsibilities pursuant to their
respective programs:
   (1) Determine definitions of terms used in the provisions of this
chapter.
   (2) Establish sustainability goals to ensure that alternative and
renewable fuel and vehicle deployment projects, on a full fuel-cycle
assessment basis, will not adversely impact the state natural
resources, especially state and federal lands.
   (3) Identify revenue streams for the programs created pursuant to
this chapter.
   (4) Ensure that the results of the reductions in emissions or
benefits can be measured and quantified.
   (b) The state board shall develop guidelines for both the
Alternative and Renewable Fuel and Vehicle Technology Program and the
Air Quality Improvement Program to ensure that programs meet both of
the following requirements:
   (1) Activities undertaken pursuant to the programs complement, and
do not interfere with, efforts to achieve and maintain federal and
state ambient air quality standards and to reduce toxic air
contaminant emissions.
   (2) Activities undertaken pursuant to the programs maintain or
improve upon emission reductions and air quality benefits in the
State Implementation Plan for Ozone, California Phase 2 Reformulated
Gasoline standards, and diesel fuel regulations.
   (c) For the purposes of both of the programs created by this
chapter, eligible projects do not include those required to be
undertaken pursuant to state or federal law or district rules or
regulations.



44271.5.  (a) The commission shall create an advisory body to help
develop an investment plan to determine priorities and opportunities
for the Alternative and Renewable Fuel and Vehicle Technology Program
created pursuant to this chapter. The advisory body shall be subject
to the public meetings requirements of the Bagley-Keene Open Meeting
Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part
1 of Division 3 of Title 2 of the Government Code). The investment
plan shall describe how funding will complement existing public and
private investments, including existing state programs that further
the goals of this chapter. The plan shall be updated annually.
   (b) Membership of the advisory body created pursuant to
subdivision (a) shall include, but is not limited to, representatives
of fuel and vehicle technology consortia, labor organizations,
environmental organizations, community-based justice and public
health organizations, recreational boaters, consumer advocates,
academic institutions, workforce training groups, and private
industry. The advisory body shall also include representatives from
the Resources Agency, the Business, Transportation and Housing
Agency, the Labor and Workforce Development Agency, and the
California Environmental Protection Agency.



44272.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The program shall provide, upon
appropriation by the Legislature, grants, revolving loans, loan
guarantees, loans, or other appropriate measures, to public agencies,
vehicle and technology consortia, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be to develop and deploy technology and alternative and renewable
fuels in the marketplace, without adopting any one preferred fuel or
technology.
   (b) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program created by Section 44272, based on the
following criteria, as appropriate:
   (1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
   (2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
   (3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
   (4) The project's ability to decrease, on a life-cycle basis, the
emissions of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
   (5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
   (6) The project provides nonstate matching funds.
   (7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
   (8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
   (9) The project's ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
   (10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
   (11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
   (c) All of the following shall be eligible for funding:
   (1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
   (2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
   (3) Projects to produce alternative and renewable low-carbon fuels
in California.
   (4) Projects to decrease the overall impact of an alternative and
renewable fuel's life-cycle carbon footprint and increase
sustainability.
   (5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (b) shall not apply to these projects.
   (6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
fuel cell technology, and conversions of hybrid technology to
plug-in technology through the installation of safety certified
supplemental battery modules.
   (7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, and supply-chain development.
   (8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
   (9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
   (10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
   (11) Block grants administered by not-for-profit technology
consortia for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
   (d) The same requirements in Section 25620.5 of the Public
Resources Code shall apply to awards made on a single source basis or
a sole sources basis.



44273.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Fund is hereby created in the State Treasury, to be
administered by the commission. The moneys in the fund, upon
appropriation by the Legislature, shall be expended by the commission
to implement the Alternative and Renewable Fuel and Vehicle
Technology Program in accordance with this chapter.
   (b) Notwithstanding any other provision of law, the sum of ten
million dollars (,000,000) shall be transferred annually from the
Public Interest Research, Development, and Demonstration Fund created
by Section 384 of the Public Utilities Code to the Alternative and
Renewable Fuel and Vehicle Technology Fund. Prior to the award of any
funds from this source, the commission shall make a determination
that the proposed project will provide benefits to electric or
natural gas ratepayers based upon the commission's adopted criteria.




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 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) Projects proposed for funding pursuant to subdivision (a)
shall be evaluated based on their proposed or potential reduction of
criteria or toxic air pollutants, cost-effectiveness, contribution to
regional air quality improvement, and ability to promote the use of
clean alternative fuels and vehicle technologies as determined by the
state board, in coordination with the commission.
   (c) The program shall be limited to competitive grants. Projects
to be funded include the following:
   (1) On- 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 mixes, 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 on- 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.


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.



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.