2010 California Code
Health and Safety Code
Article 14. Funds

44299.  (a) The Carl Moyer Memorial Air Quality Standards Attainment
Trust Fund is hereby created in the State Treasury. The Controller
shall transfer any unencumbered funds appropriated to the commission
or the state board for the diesel emissions reduction incentive
program by Items 3360-001-0314 and 3900-001-0001 of Section 2.00 of
the Budget Act of 1998 (Ch. 324, Stats. 1998), and Items
3360-001-0314, 3360-001-0001, 3360-001-0465, 3900-001-0001, and
3900-001-0115 of Section 2.00 of the Budget Act of 1999 (Ch. 50,
Stats. 1999), to the trust fund. The money in the trust fund shall be
available upon appropriation by the Legislature to carry out the
purposes of this chapter.
   (b) To ensure that emission reductions are obtained as needed from
air pollution sources, the following accounts are hereby created in
the trust fund:
   (1) The Covered Vehicle Account.
   (2) The Advanced Technology Account.
   (c) Notwithstanding Sections 16475, 16475.1, and 16480.6 of the
Government Code, all of the interest earned on money in the trust
fund shall be deposited in the trust fund.



44299.1.  (a) To ensure that emission reductions are obtained as
needed from pollution sources, any money deposited in or appropriated
to the fund shall be segregated and administered as follows:
   (1) Not more than 2 percent of the moneys in the fund shall be
allocated to program support and outreach costs incurred by the state
board and the commission directly associated with implementing the
program pursuant to this chapter. These funds shall be allocated to
the state board and the commission in proportion to total program
funds administered by the state board and the commission.
   (2) Not more than 2 percent of the moneys in the fund shall be
allocated to direct program outreach activities. The state board may
use these funds for program outreach contracts or may allocate
outreach funds to participating air districts in proportion to each
district's allocation from the Covered Vehicle Account. The state
board shall report on the use of outreach funds in their reports to
the Legislature pursuant to Section 44295.
   (3) The balance shall be deposited in the Covered Vehicle Account
to be expended to offset added costs of new very low or zero-emission
vehicle technologies, and emission reducing repowers, retrofits, and
add-on equipment for covered vehicles and engines, and other
projects specified in Section 44281.
   (b) Funds in the Covered Vehicle Account shall be allocated to a
district that submits an eligible application to the state board
pursuant to Section 44287. The state board shall determine the
maximum amount of annual funding from the Covered Vehicle Account
that each district may receive. This determination shall be based on
the population in each district as well as the relative importance of
obtaining covered emission reductions in each district, specifically
through the program.
   (c) Not more than 5 percent of the moneys allocated pursuant to
this chapter to a district with a population of one million or more
may be used by the district for indirect costs of implementation of
the program, including outreach costs that are subject to the
limitation in paragraph (2) of subdivision (a).
   (d) Not more than 10 percent of the moneys allocated pursuant to
this chapter to a district with a population of less than one million
may be used by the district for indirect costs of implementation of
the program, including outreach costs that are subject to the
limitation in paragraph (2) of subdivision (a).
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.



44299.1.  (a) To ensure that emission reductions are obtained as
needed from pollution sources, any money deposited in or appropriated
to the fund shall be segregated and administered as follows:
   (1) Ten percent, not to exceed two million dollars ($2,000,000),
shall be allocated to the Infrastructure Demonstration Project to be
used pursuant to Section 44284.
   (2) Ten percent shall be deposited in the Advanced Technology
Account to be used to support research, development, demonstration,
and commercialization of advanced low-emission technologies for
covered sources that show promise of contributing to the goals of the
program.
   (3) Not more than 2 percent of the moneys in the fund shall be
allocated to program support and outreach costs incurred by the state
board and the commission directly associated with implementing the
program pursuant to this chapter. These funds shall be allocated to
the state board and the commission in proportion to total program
funds administered by the state board and the commission.
   (4) Not more than 2 percent of the moneys in the fund shall be
allocated to direct program outreach activities. The state board may
use these funds for program outreach contracts or may allocate
outreach funds to participating air districts in proportion to each
district's allocation from the Covered Vehicle Account. The state
board shall report on the use of outreach funds in their reports to
the Legislature pursuant to Section 44295.
   (5) The balance shall be deposited in the Covered Vehicle Account
to be expended to offset added costs of new very low or zero-emission
vehicle technologies, and emission reducing repowers, retrofits, and
add-on equipment for covered vehicles and engines.
   (b) Funds in the Covered Vehicle Account shall be allocated to a
district that submits an eligible application to the state board
pursuant to Section 44287. The state board shall determine the
maximum amount of annual funding from the Covered Vehicle Account
that each district may receive. This determination shall be based on
the population in each district as well as the relative importance of
obtaining NOx reductions in each district, specifically through the
program.
   (c) This section shall become operative on January 1, 2015.



44299.2.  Funds shall be allocated to local air pollution control
and air quality management districts, and shall be subject to
administrative terms and conditions as follows:
   (a) Available funds shall be distributed to districts taking into
consideration the population of the area, the severity of the air
quality problems experienced by the population, and the historical
allocation of the Carl Moyer Memorial Air Quality Standards
Attainment Trust Fund, except that the south coast district shall be
allocated a percentage of the total funds available to districts that
is proportional to the percentage of the total state population
residing within the jurisdictional boundaries of that district. For
the purposes of this subdivision, population shall be determined by
the state board based on the most recent data provided by the
Department of Finance. The allocation to the south coast district
shall be subtracted from the total funds available to districts. Each
district, except the south coast district, shall be awarded a
minimum allocation of two hundred thousand dollars ($200,000), and
the remainder, which shall be known as the "allocation amount," shall
be allocated to all districts as follows:
   (1) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the percentage of the total
residual state population that resides within each district's
boundaries. For purposes of this paragraph, "total residual state
population" means the total state population, less the total
population that resides within the south coast district.
   (2) The state board shall distribute 35 percent of the allocation
amount to the districts in proportion to the severity of the air
quality problems to which each district's population is exposed. The
severity of the exposure shall be calculated as follows:
   (A) Each district shall be awarded severity points based on the
district's attainment designation and classification, as most
recently promulgated by the federal Environmental Protection Agency
for the National Ambient Air Quality Standard for ozone averaged over
eight hours, as follows:
   (i) A district that is designated attainment for the federal
eight-hour ozone standard shall be awarded one point.
   (ii) A district that is designated nonattainment for the federal
eight-hour ozone standard shall be awarded severity points based on
classification. Two points shall be awarded for transitional, basic,
or marginal classifications, three points for moderate
classification, four points for serious classification, five points
for severe classification, six points for severe-17 classification,
and seven points for extreme classification.
   (B) Each district shall be awarded severity points based on the
annual diesel particulate emissions in the air basin, as determined
by the state board. One point shall be awarded to the district, in
increments, for each 1,000 tons of diesel particulate emissions. In
making this determination, 0 to 999 tons shall be awarded no points,
1,000 to 1,999 tons shall be awarded one point, 2,000 to 2,999 tons
shall be awarded two points, and so forth. If a district encompasses
more than one air basin, the air basin with the greatest diesel
particulate emissions shall be used to determine the points awarded
to the district. The San Diego County Air Pollution Control District
and the Imperial County Air Pollution Control District shall be
awarded one additional point each to account for annual diesel
particulate emissions transported from Mexico.
   (C) The points awarded under subparagraphs (A) and (B), shall be
added together for each district, and the total shall be multiplied
by the population residing within the district boundaries, to yield
the local air quality exposure index.
   (D) The local air quality exposure index for each district shall
be summed together to yield a total state exposure index. Funds shall
be allocated under this paragraph to each district in proportion to
its local air quality exposure index divided by the total state
exposure index.
   (3) The state board shall distribute 30 percent of the allocation
amount to the districts in proportion to the allocation of funds from
the Carl Moyer Memorial Air Quality Standards Attainment Trust Fund,
as follows:
   (A) Because each district is awarded a minimum allocation pursuant
to subdivision (a), there shall be no additional minimum allocation
from the Carl Moyer historical allocation funds. The total amount
allocated in this way shall be subtracted from total funding
previously awarded to the district under the Carl Moyer Memorial Air
Quality Standards Attainment Program, and the remainder, which shall
be known as directed funds, shall be allocated pursuant to
subparagraph (B).
   (B) Each district with a population that is greater than or equal
to 1 percent of the state's population shall receive an additional
allocation based on the population of the district and the district's
relative share of emission reduction commitments in the State
Implementation Plan to attain the National Ambient Air Quality
Standard for ozone averaged over one hour. This additional allocation
shall be calculated as a percentage share of the directed funds for
each district, derived using a ratio of each district's share amount
to the base amount, which shall be calculated as follows:
   (i) The base amount shall be the total Carl Moyer program funds
allocated by the state board to the districts in the 2002-03 fiscal
year, less the total of the funds allocated through the minimum
allocation to each district in the 2002-03 fiscal year.
   (ii) The share amount shall be the allocation that each district
received in the 2002-03 fiscal year, not including the minimum
allocation. There shall be one share amount for each district.
   (iii) The percentage share shall be calculated for each district
by dividing the district's share amount by the base amount, and
multiplying the result by the total directed funds available under
this subparagraph.
   (b) Funds shall be distributed as expeditiously as reasonably
practicable, and a report of the distribution shall be made available
to the public.
   (c) All funds allocated pursuant to this section shall be expended
as provided in the guidelines adopted pursuant to Section 44287
within two years from the date of allocation. Funds not expended
within the two years shall be returned to the Covered Vehicle Account
within 60 days and shall be subject to further allocation as
follows:
   (1) Within 30 days of the deadline to return funds, the state
board shall notify the districts of the total amount of returned
funds available for reallocation, and shall list those districts that
request supplemental funds from the reallocation and that are able
to expend those funds within one year.
   (2) Within 90 days of the deadline to return funds, the state
board shall allocate the returned funds to the districts listed
pursuant to paragraph (1).
   (3) All supplemental funds distributed under this subdivision
shall be expended consistent with the Carl Moyer Air Quality
Standards Attainment Program within one year of the date of
supplemental allocation. Funds not expended within one year shall be
returned to the Covered Vehicle Account and shall be distributed at
the discretion of the state board to districts, taking into
consideration of each district's ability to expeditiously utilize the
remaining funds consistent with the Carl Moyer Air Quality Standards
Attainment Program.
   (d) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.