California 2019 2019-2020 Regular Session

California Senate Bill SB216 Amended / Bill

Filed 03/20/2019

                    Amended IN  Senate  March 20, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 216Introduced by Senator Galgiani(Coauthors: Senators Dodd and Portantino)(Coauthors: Assembly Members Cooper and Flora)February 06, 2019 An act to amend add and repeal Section 44281 44298 of the Health and Safety Code, relating to vehicular air pollution. LEGISLATIVE COUNSEL'S DIGESTSB 216, as amended, Galgiani. Carl Moyer Memorial Air Quality Standards Attainment Program: used heavy-duty truck exchange.Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals.This bill bill, until January 1, 2025, would add as an eligible project under the program a used heavy-duty truck exchange, as specified. The bill would require the state board to hold a public workshop on the heavy-duty truck exchange and to help air pollution control and air quality management districts add a heavy-duty truck exchange as an eligible project under the program.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The state needs viable, cost-effective clean energy and transportation solutions for reducing emissions from methane, greenhouse gas, and gases, oxides of nitrogen, and short-lived climate pollutants, which together significantly contribute to climate change and poor air quality and impact the health of communities throughout the state.(b) In California, many regions are still designated as being in federal nonattainment under the Clean Air Act (42 U.S.C. Sec. 7661 et seq.). The looming deadlines to reach attainment in these areas are fast approaching, which make it critical that state programs focus on getting as many emissions reductions as fast as we can.(b)(c) While it is important to displace the demand for conventional petroleum-based fuels, the Legislature also believes that helping to spur the development and deployment of innovative next-generation fuel technologies by California-based companies is an important contribution the state can and should make to facilitate urgently needed, immediate, emissions reductions here and around the world. reductions.(c)State-run vehicle exchange programs are critical to promoting fleet conversions necessary to accelerate emissions reductions in the transportation sector.(d) Incentive programs are a critical component to help fleets accelerate emissions reductions in the transportation sector.(d)(e) Newer next-generation low-carbon fuels have the potential to offer significant climate and air quality benefits and, thus, the state should provide a similar level of focus and support for these innovative low-carbon fuels as has been spent over the years on first generation low-carbon fuels and battery electric mobility. focus.(f) It is the intent of the Legislature in enacting Section 44298 of the Health and Safety Code that the State Air Resources Board adopt, and air pollution control and air quality management districts implement, a heavy-duty truck exchange as part of the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 16 of the Health and Safety Code).SEC. 2.Section 44281 of the Health and Safety Code, as amended by Section 8 of Chapter 610 of the Statutes of 2015, is amended to read:44281.(a)Eligible projects include, but are not limited to, any of the following:(1)Purchase of new very low or zero-emission covered vehicles or covered heavy-duty engines.(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.(3)Purchase and use of emission-reducing add-on equipment that has been verified by the state board for covered vehicles.(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.(5)Light- and medium-duty vehicle projects in compliance with guidelines adopted by the state board pursuant to Title 13 of the California Code of Regulations.(6)A used heavy-duty truck exchange that meets all of the following:(A)Allows small fleets to partner with larger fleets in a single application.(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations.(C)Requires vehicles purchased to remain in the state after their useful life.(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.(b)No project shall be funded under this chapter after the compliance date required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by the compliance date of a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No covered emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.(c)The program may also provide funding toward the installation of fueling or energy infrastructure to fuel or power covered sources.(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx, particulate matter (PM), or reactive organic gas (ROG) emissions inventory in California.(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.(f)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.SEC. 3.Section 44281 of the Health and Safety Code, as amended by Section 20 of Chapter 401 of the Statutes of 2013, is amended to read:44281.(a)Eligible projects are any of the following:(1)Purchase of new very low or zero-emission covered vehicles or covered engines.(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.(3)Purchase and use of emission-reducing add-on equipment for covered vehicles.(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.(5)A used heavy-duty truck exchange that meets all of the following:(A)Allows small fleets to partner with larger fleets in a single application.(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations Title 13.(C)Requires vehicles purchased to remain in the state after their useful life.(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.(b)No new purchase, retrofit, repower, or add-on equipment shall be funded under this chapter if it is required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.(c)The program may also provide funding toward installation of fueling or electrification infrastructure as provided in Section 44284.(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx emissions inventory in California.(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.(f)This section shall become operative on January 1, 2024.SEC. 2. Section 44298 is added to the Health and Safety Code, to read:44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

 Amended IN  Senate  March 20, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 216Introduced by Senator Galgiani(Coauthors: Senators Dodd and Portantino)(Coauthors: Assembly Members Cooper and Flora)February 06, 2019 An act to amend add and repeal Section 44281 44298 of the Health and Safety Code, relating to vehicular air pollution. LEGISLATIVE COUNSEL'S DIGESTSB 216, as amended, Galgiani. Carl Moyer Memorial Air Quality Standards Attainment Program: used heavy-duty truck exchange.Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals.This bill bill, until January 1, 2025, would add as an eligible project under the program a used heavy-duty truck exchange, as specified. The bill would require the state board to hold a public workshop on the heavy-duty truck exchange and to help air pollution control and air quality management districts add a heavy-duty truck exchange as an eligible project under the program.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Senate  March 20, 2019

Amended IN  Senate  March 20, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Senate Bill No. 216

Introduced by Senator Galgiani(Coauthors: Senators Dodd and Portantino)(Coauthors: Assembly Members Cooper and Flora)February 06, 2019

Introduced by Senator Galgiani(Coauthors: Senators Dodd and Portantino)(Coauthors: Assembly Members Cooper and Flora)
February 06, 2019

 An act to amend add and repeal Section 44281 44298 of the Health and Safety Code, relating to vehicular air pollution. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 216, as amended, Galgiani. Carl Moyer Memorial Air Quality Standards Attainment Program: used heavy-duty truck exchange.

Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals.This bill bill, until January 1, 2025, would add as an eligible project under the program a used heavy-duty truck exchange, as specified. The bill would require the state board to hold a public workshop on the heavy-duty truck exchange and to help air pollution control and air quality management districts add a heavy-duty truck exchange as an eligible project under the program.

Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals.

This bill bill, until January 1, 2025, would add as an eligible project under the program a used heavy-duty truck exchange, as specified. The bill would require the state board to hold a public workshop on the heavy-duty truck exchange and to help air pollution control and air quality management districts add a heavy-duty truck exchange as an eligible project under the program.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The state needs viable, cost-effective clean energy and transportation solutions for reducing emissions from methane, greenhouse gas, and gases, oxides of nitrogen, and short-lived climate pollutants, which together significantly contribute to climate change and poor air quality and impact the health of communities throughout the state.(b) In California, many regions are still designated as being in federal nonattainment under the Clean Air Act (42 U.S.C. Sec. 7661 et seq.). The looming deadlines to reach attainment in these areas are fast approaching, which make it critical that state programs focus on getting as many emissions reductions as fast as we can.(b)(c) While it is important to displace the demand for conventional petroleum-based fuels, the Legislature also believes that helping to spur the development and deployment of innovative next-generation fuel technologies by California-based companies is an important contribution the state can and should make to facilitate urgently needed, immediate, emissions reductions here and around the world. reductions.(c)State-run vehicle exchange programs are critical to promoting fleet conversions necessary to accelerate emissions reductions in the transportation sector.(d) Incentive programs are a critical component to help fleets accelerate emissions reductions in the transportation sector.(d)(e) Newer next-generation low-carbon fuels have the potential to offer significant climate and air quality benefits and, thus, the state should provide a similar level of focus and support for these innovative low-carbon fuels as has been spent over the years on first generation low-carbon fuels and battery electric mobility. focus.(f) It is the intent of the Legislature in enacting Section 44298 of the Health and Safety Code that the State Air Resources Board adopt, and air pollution control and air quality management districts implement, a heavy-duty truck exchange as part of the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 16 of the Health and Safety Code).SEC. 2.Section 44281 of the Health and Safety Code, as amended by Section 8 of Chapter 610 of the Statutes of 2015, is amended to read:44281.(a)Eligible projects include, but are not limited to, any of the following:(1)Purchase of new very low or zero-emission covered vehicles or covered heavy-duty engines.(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.(3)Purchase and use of emission-reducing add-on equipment that has been verified by the state board for covered vehicles.(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.(5)Light- and medium-duty vehicle projects in compliance with guidelines adopted by the state board pursuant to Title 13 of the California Code of Regulations.(6)A used heavy-duty truck exchange that meets all of the following:(A)Allows small fleets to partner with larger fleets in a single application.(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations.(C)Requires vehicles purchased to remain in the state after their useful life.(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.(b)No project shall be funded under this chapter after the compliance date required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by the compliance date of a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No covered emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.(c)The program may also provide funding toward the installation of fueling or energy infrastructure to fuel or power covered sources.(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx, particulate matter (PM), or reactive organic gas (ROG) emissions inventory in California.(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.(f)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.SEC. 3.Section 44281 of the Health and Safety Code, as amended by Section 20 of Chapter 401 of the Statutes of 2013, is amended to read:44281.(a)Eligible projects are any of the following:(1)Purchase of new very low or zero-emission covered vehicles or covered engines.(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.(3)Purchase and use of emission-reducing add-on equipment for covered vehicles.(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.(5)A used heavy-duty truck exchange that meets all of the following:(A)Allows small fleets to partner with larger fleets in a single application.(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations Title 13.(C)Requires vehicles purchased to remain in the state after their useful life.(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.(b)No new purchase, retrofit, repower, or add-on equipment shall be funded under this chapter if it is required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.(c)The program may also provide funding toward installation of fueling or electrification infrastructure as provided in Section 44284.(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx emissions inventory in California.(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.(f)This section shall become operative on January 1, 2024.SEC. 2. Section 44298 is added to the Health and Safety Code, to read:44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:(a) The state needs viable, cost-effective clean energy and transportation solutions for reducing emissions from methane, greenhouse gas, and gases, oxides of nitrogen, and short-lived climate pollutants, which together significantly contribute to climate change and poor air quality and impact the health of communities throughout the state.(b) In California, many regions are still designated as being in federal nonattainment under the Clean Air Act (42 U.S.C. Sec. 7661 et seq.). The looming deadlines to reach attainment in these areas are fast approaching, which make it critical that state programs focus on getting as many emissions reductions as fast as we can.(b)(c) While it is important to displace the demand for conventional petroleum-based fuels, the Legislature also believes that helping to spur the development and deployment of innovative next-generation fuel technologies by California-based companies is an important contribution the state can and should make to facilitate urgently needed, immediate, emissions reductions here and around the world. reductions.(c)State-run vehicle exchange programs are critical to promoting fleet conversions necessary to accelerate emissions reductions in the transportation sector.(d) Incentive programs are a critical component to help fleets accelerate emissions reductions in the transportation sector.(d)(e) Newer next-generation low-carbon fuels have the potential to offer significant climate and air quality benefits and, thus, the state should provide a similar level of focus and support for these innovative low-carbon fuels as has been spent over the years on first generation low-carbon fuels and battery electric mobility. focus.(f) It is the intent of the Legislature in enacting Section 44298 of the Health and Safety Code that the State Air Resources Board adopt, and air pollution control and air quality management districts implement, a heavy-duty truck exchange as part of the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 16 of the Health and Safety Code).

SECTION 1. The Legislature finds and declares all of the following:(a) The state needs viable, cost-effective clean energy and transportation solutions for reducing emissions from methane, greenhouse gas, and gases, oxides of nitrogen, and short-lived climate pollutants, which together significantly contribute to climate change and poor air quality and impact the health of communities throughout the state.(b) In California, many regions are still designated as being in federal nonattainment under the Clean Air Act (42 U.S.C. Sec. 7661 et seq.). The looming deadlines to reach attainment in these areas are fast approaching, which make it critical that state programs focus on getting as many emissions reductions as fast as we can.(b)(c) While it is important to displace the demand for conventional petroleum-based fuels, the Legislature also believes that helping to spur the development and deployment of innovative next-generation fuel technologies by California-based companies is an important contribution the state can and should make to facilitate urgently needed, immediate, emissions reductions here and around the world. reductions.(c)State-run vehicle exchange programs are critical to promoting fleet conversions necessary to accelerate emissions reductions in the transportation sector.(d) Incentive programs are a critical component to help fleets accelerate emissions reductions in the transportation sector.(d)(e) Newer next-generation low-carbon fuels have the potential to offer significant climate and air quality benefits and, thus, the state should provide a similar level of focus and support for these innovative low-carbon fuels as has been spent over the years on first generation low-carbon fuels and battery electric mobility. focus.(f) It is the intent of the Legislature in enacting Section 44298 of the Health and Safety Code that the State Air Resources Board adopt, and air pollution control and air quality management districts implement, a heavy-duty truck exchange as part of the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 16 of the Health and Safety Code).

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) The state needs viable, cost-effective clean energy and transportation solutions for reducing emissions from methane, greenhouse gas, and gases, oxides of nitrogen, and short-lived climate pollutants, which together significantly contribute to climate change and poor air quality and impact the health of communities throughout the state.

(b) In California, many regions are still designated as being in federal nonattainment under the Clean Air Act (42 U.S.C. Sec. 7661 et seq.). The looming deadlines to reach attainment in these areas are fast approaching, which make it critical that state programs focus on getting as many emissions reductions as fast as we can.

(b)



(c) While it is important to displace the demand for conventional petroleum-based fuels, the Legislature also believes that helping to spur the development and deployment of innovative next-generation fuel technologies by California-based companies is an important contribution the state can and should make to facilitate urgently needed, immediate, emissions reductions here and around the world. reductions.

(c)State-run vehicle exchange programs are critical to promoting fleet conversions necessary to accelerate emissions reductions in the transportation sector.



(d) Incentive programs are a critical component to help fleets accelerate emissions reductions in the transportation sector.

(d)



(e) Newer next-generation low-carbon fuels have the potential to offer significant climate and air quality benefits and, thus, the state should provide a similar level of focus and support for these innovative low-carbon fuels as has been spent over the years on first generation low-carbon fuels and battery electric mobility. focus.

(f) It is the intent of the Legislature in enacting Section 44298 of the Health and Safety Code that the State Air Resources Board adopt, and air pollution control and air quality management districts implement, a heavy-duty truck exchange as part of the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 16 of the Health and Safety Code).





(a)Eligible projects include, but are not limited to, any of the following:



(1)Purchase of new very low or zero-emission covered vehicles or covered heavy-duty engines.



(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.



(3)Purchase and use of emission-reducing add-on equipment that has been verified by the state board for covered vehicles.



(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.



(5)Light- and medium-duty vehicle projects in compliance with guidelines adopted by the state board pursuant to Title 13 of the California Code of Regulations.



(6)A used heavy-duty truck exchange that meets all of the following:



(A)Allows small fleets to partner with larger fleets in a single application.



(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations.



(C)Requires vehicles purchased to remain in the state after their useful life.



(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.



(b)No project shall be funded under this chapter after the compliance date required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by the compliance date of a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No covered emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any person or entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.



(c)The program may also provide funding toward the installation of fueling or energy infrastructure to fuel or power covered sources.



(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx, particulate matter (PM), or reactive organic gas (ROG) emissions inventory in California.



(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.



(f)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.







(a)Eligible projects are any of the following:



(1)Purchase of new very low or zero-emission covered vehicles or covered engines.



(2)Emission-reducing retrofit of covered engines, or replacement of old engines powering covered sources with newer engines certified to more stringent emissions standards than the engine being replaced, or with electric motors or drives.



(3)Purchase and use of emission-reducing add-on equipment for covered vehicles.



(4)Development and demonstration of practical, low-emission retrofit technologies, repower options, and advanced technologies for covered engines and vehicles with very low emissions of NOx.



(5)A used heavy-duty truck exchange that meets all of the following:



(A)Allows small fleets to partner with larger fleets in a single application.



(B)Allows vehicles purchased through a nondirect transaction to meet scrappage requirements pursuant to Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations Title 13.



(C)Requires vehicles purchased to remain in the state after their useful life.



(D)Defines small fleet to mean five or less vehicles and larger fleet to mean six or more vehicles.



(b)No new purchase, retrofit, repower, or add-on equipment shall be funded under this chapter if it is required by any local, state, or federal statute, rule, regulation, memoranda of agreement or understanding, or other legally binding document, except that an otherwise qualified project may be funded even if the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if the change is not required by a statute, regulation, or other legally binding document in effect as of the date the grant is awarded. No project funded by the program shall be used for credit under any state or federal emissions averaging, banking, or trading program. No emission reduction generated by the program shall be used as marketable emission reduction credits or to offset any emission reduction obligation of any entity. Projects involving new engines that would otherwise generate marketable credits under state or federal averaging, banking, and trading programs shall include transfer of credits to the engine end user and retirement of those credits toward reducing air emissions in order to qualify for funding under the program. A purchase of a low-emission vehicle or of equipment pursuant to a corporate or a controlling boards policy, but not otherwise required by law, shall generate surplus emissions reductions and may be funded by the program.



(c)The program may also provide funding toward installation of fueling or electrification infrastructure as provided in Section 44284.



(d)Eligible applicants may be any individual, company, or public agency that owns one or more covered vehicles that operate primarily within California or otherwise contribute substantially to the NOx emissions inventory in California.



(e)It is the intent of the Legislature that all emission reductions generated by this chapter shall contribute to public health by reducing, for the life of the vehicle being funded, the total amount of emissions in California.



(f)This section shall become operative on January 1, 2024.



SEC. 2. Section 44298 is added to the Health and Safety Code, to read:44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

SEC. 2. Section 44298 is added to the Health and Safety Code, to read:

### SEC. 2.

44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.(4) Requires vehicles purchased to remain in the state during the vehicles project life.(b) The state board shall do both of the following:(1) Hold a public workshop on the implementation of subdivision (a).(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.



44298. (a) Notwithstanding Section 44281, an eligible project under the program is one that accomplishes all of the following:

(1) Encourages owners of fleets to partner with owners of other fleets in a project application to the program.

(2) Allows, when two or more fleets partner with each other in a project application, the requirements of Division 3 (commencing with Section 1900) of Title 13 of the California Code of Regulations to be met with the most-polluting vehicle eligible in any of the participating fleets.

(3) Ensures consistency with the requirements of subdivision (b) of Section 44281.

(4) Requires vehicles purchased to remain in the state during the vehicles project life.

(b) The state board shall do both of the following:

(1) Hold a public workshop on the implementation of subdivision (a).

(2) Develop a comprehensive and streamlined plan to help districts implement subdivision (a).

(c) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.