HomeMy WebLinkAboutAB2415 - CA Renewable Fuels in Freight ActCITY OF PALM DESERT
OFFICE OF THE CITY MANAGER .......... .......
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STAFF REPORT
REQUEST: APPROVE THE PALM DESERT LEGISLATIVE REVIEW
COMMITTEE'S RECOMMENDATION TO PROVIDE A LETTER OF
SUPPORT FOR AB 2415 (GARCIA).
SUBMITTED BY: Stephen Y. Aryan, Risk Manager
DATE: April 28, 2016
CONTENTS: AB 2415 Fact Sheets & Bill Text
AB 2415 Draft Support Letter
AB 857 Support Letter
Recommendation
By Minute Motion, authorize the Mayor to send a letter of support for AB 2415 (Garcia).
Committee Recommendation
On April 8, 2016, the Palm Desert Legislative Review Committee recommended that the City
Council approve a support letter for AB 2415 (Garcia).
Background
The California Clean Truck, Bus, and Off -Road Vehicle and Equipment Technology Program,
upon appropriation from the Greenhouse Gas Reduction Fund, funds zero and near -zero -
emission truck, bus, and off -road vehicle and equipment technologies and related projects.
Priority is given to certain projects, including projects that benefit
disadvantaged communities.
The program, until January 1, 2018, requires no less than 20% of the funding made available
for the purposes of technology development, demonstration, pre -commercial pilots, and early
commercial deployments of zero- and near -zero -emission medium- and heavy-duty truck
technology support early commercial deployment of existing zero- and near -zero -emission
heavy-duty truck technology. The program requires the state board to ensure that the results
of emissions reductions or benefits can be measured or quantified.
AB 2415, between January 2, 2018, and January 1, 2023, would require no less than 50% or
$100,000,000, whichever is greater, of the moneys allocated each year for technology
development, demonstration, pre -commercial pilots, and early commercial deployments of
zero- and near -zero -emission medium- and heavy-duty truck technology be allocated and
spent to support the commercial deployment of existing zero- and near -zero -emission heavy-
duty truck technology that meets or exceeds a specified emission standard. The bill also
would require the state board to post on its Internet Web site the results of emissions
reductions or benefits.
Staff Report: AB 2415 (Garcia)
April 28, 2016
Page 2 of 2
The provisions within AB 2415 are currently wholly voluntary. For example, there is no
requirement in the bill that trucking companies must convert fleets to advanced clean trucks
running on alternative fuel. However, if they want to purchase clean trucks, the bill would
provide incentive funding to offset purchase costs. AB 2415 does not currently have eligibility
requirements for incentive funding because it would be left up to the Air Resources Board in
their workshop process
Staff recommends support of this legislation because it places an incentive for the use of
renewable fuels in heavy-duty freight involved in goods movement, which can provide an
immediate and cost-effective solution to reduce emissions to improve air quality and public
health. Please note that the City Council supported a similar bill last year, AB 857 (Peres)
that passed out of the Assembly, but not the Senate.
Fiscal Analysis
There is no direct fiscal impact related to the City's support of AB 2415.
Submitted By:
i
Stephen )1. Aryan, Risk
Approval:
�udy costa, A/City Manager
ST4q!
.�Assemblymember Eduardo Garcia
O rM
AB 2415 — CA Renewable Fuels in Freight Act
BACKGROUND
Air pollution affects human health
disproportionately within disadvantaged
communities along transportation corridors,
increasing asthma, cancer and premature
death. In the South Coast and San Joaquin
Valley Air Districts, nearly 80% of smog -
forming pollutants, such as oxides of
nitrogen (NOx), come from mobile sources
where heavy-duty vehicles are the number
one producer of NOx. Federal ozone
standards require at least a 65% reduction in
NOx emissions by 2023, and an 80%
reduction by 2023. The goal of these early
reductions is to demonstrate progress toward
attainment of federal deadlines in order to
avoid implementation of an onerous Federal
Implementation Plan (FIP) that would have
a negative impact on our economy.
Additionally, 40% of the State's greenhouse
gas (GHG) emissions come from
transportation, and California's long-term
climate change policy requires an 85-90%
reduction in GHG emissions by 2050.
SUMMARY
AB 2415 would incentive the use of
renewable fuels in heavy-duty freight
involved in goods movement that can
provide an immediate and cost-effective
solution to reduce emissions to improve air
quality and public health. This bill would
support a transition to low carbon
transportation technologies to address
climate change over the long-term.
Updated 2.29.16
Specifically, AB 2415 would:
Incentivize the use of renewable fuels:
30% minimum in 2018, 50% in 2020.
Amend SB 1204 (2014) by extending
the sunset date on the priority for
deployment by 5 years from 2018 to 2023,
and increasing the amount of dollars
available for deployment from 20% to 50%
or $100 million dollars, whichever is
greater.
Direct funding to support any
commercial ARB-certified deployment of
zero- and near- zero emission heavy-duty
truck technology that meets or exceeds an
emission standard of .02 grams per brake
horsepower hour Oxides of Nitrogen under
the existing Optional Low NOx Standard
regulation.
Define "heavy-duty truck" as vehicles
that have a gross vehicle weight rating
(GVWR) of 26,001 pounds or more.
FOR MORE INFORMATION
Staff Member: Mark Rossow
Email: Mark. Rossow@asm.ca.pov
Phone: 916.319.2056 Fax: 916.319.2156
AMENDED IN ASSEMBLY APRIL 6, 2016
CALIFORNIA LEGISLATURE-2015-16 REGULAR SESSION
ASSEMBLY BILL
No. 2415
Introduced by Assembly Member Eduardo Garcia
February 19, 2016
An act to amend Section 39719.2 of the Health and Safety Code,
relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
AB 2415, as amended, Eduardo Garcia. California Clean Truck, Bus,
and Oil Road Vehicle and Equipment Technology Program.
The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The act authorizes the state board to include the use of market -based
compliance mechanisms. Existing law requires all moneys, except for
fines and penalties, collected by the state board as part of a market -based
compliance mechanism to be deposited in the Greenhouse Gas
Reduction Fund and to be available upon appropriation by the
Legislature.
The California Clean Truck, Bus, and Off -Road Vehicle and
Equipment Technology Program, upon appropriation from the
Greenhouse Gas Reduction Fund, funds zero- and near -zero -emission
truck, bus, and off -road vehicle and equipment technologies and related
projects, as specified, with priority given to certain projects, including
projects that benefit disadvantagedeotndmuniti communities, as
defined. The program, until January 1, 2018, requires no less than 20%
of the funding made available for the purposes of technology
development, demonstration, precommercial pilots, and early
98
AB 2415 —2—
commercial deployments of zero- and near -zero -emission medium- and
heavy-duty truck technology support early commercial deployment of
existing zero- and near -zero -emission heavy-duty truck technology.
The program requires the state board to ensure that the results of
emissions reductions or benefits can be measured or quantified.
This bill, between January 2, 2018, and January 1, 2023, would require
no less than 50% or $100,000,000, whichever is greater, of the moneys
allocated each year for technology development, demonstration,
precommercial pilots, and early commercial deployments of zero- and
near -zero -emission medium- and heavy-duty truck technology be
allocated and spent to support the commercial deployment of existing
zero- and near -zero -emission heavy-duty truck technology that meets
or exceeds a specified emission standard. The bill also would require
the state board to post on its Internet Web site the results of emissions
reductions or benefits.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 39719.2 of the Health and Safety Code
2 is amended to read:
3 39719.2. (a) The California Clean Truck, Bus, and Off -Road
4 Vehicle and Equipment Technology Program is hereby created,
5 to be administered by the state board in conjunction with the State
6 Energy Resources Conservation and Development Commission.
7 The program, from moneys appropriated from the fund for the
8 purposes of the program, shall fund development, demonstration,
9 precommercial pilot, and early commercial deployment of zero-
10 and near -zero -emission truck, bus, and off -road vehicle and
11 equipment technologies. Priority shall be given to projects
12 benefiting disadvantaged communities pursuant to the requirements
13 of Sections 39711 and 39713.
14 (b) Projects eligible for funding pursuant to this section include,
15 but are not limited to, the following:
16 (1) Technology development, demonstration, precommercial
17 pilots, and early commercial deployments of zero- and
18 near -zero -emission medium- and heavy-duty truck technology,
19 including projects that help to facilitate clean goods -movement
20 corridors.
98
3— AB 2415
1 (A) Until January 1, 2018, no less than 20 percent of funding
2 made available for the purposes of this paragraph shall support
3 early commercial deployment of existing zero- and
4 near -zero -emission heavy-duty truck technology.
5 (B) (i) Between January 2, 2018, and January 1, 2023, no less
6 than 50 percent or one hundred million dollars ($100,000,000),
7 whichever is greater, of the moneys allocated each year for the
8 purposes of this paragraph shall be allocated and spent to support
9 the commercial deployment of existing zero- and
10 near -zero -emission heavy-duty truck technology that meets or
11 exceeds an emission standard of 0.02 grams per brake
12 horsepower -hour oxides of nitrogen, as described in the optional
13 low oxides of nitrogen emission standards in Section 1956.8 of
14 Title 13 of the California Code of Regulations.
15 (ii) (1) Between January 2, 2018, and January 1, 2020, a
16 heavy-duty truck with an internal combustion engine receiving
17 moneys allocated pursuant to this subparagraph shall use not less
18 than 30 percent renewable fuel.
19 (II) Beginning January 2, 2020, a heavy-duty truck with an
20 internal combustion engine receiving moneys allocated pursuant
21 to this subparagraph shall use not less than 50 percent renewable
22 fuel.
23 (11I) The percentage in effect at the time the moneys are awarded
24 to a heavy-duty truck with an internal combustion engine pursuant
25 to this subparagraph shall not change that award.
26 (IV) This subparagraph does not alter or-affeet; affect in any
27 way, way the amount of credit or grants for which a
28 low -carbon -fuel provider or truck operator is eligible pursuant to
29 law.
30 (2) Zero- and near -zero -emission bus technology development,
31 demonstration, precommercial pilots, and early commercial
32 deployments, including pilots of multiple vehicles at one site or
33 region.
34 (3) Zero- and near -zero -emission off -road vehicle and equipment
35 technology development, demonstration, precommercial pilots,
36 and early commercial deployments, including vehicles and
37 equipment in the port, agricultural, marine, construction, and rail
38 sectors.
39 (4) Purchase incentives, which may include point -of -sale, for
40 commercially available zero- and near -zero -emission truck, bus,
98
AB 2415 — 4 —
1 and off -road vehicle and equipment technologies and fueling
2 infrastructure to support early market deployments of alternative
3 technologies and to increase manufacturer volumes and accelerate
4 market acceptance.
5 (5) Projects that support greater commercial motor vehicle and
6 equipment freight efficiency and greenhouse gas emissions
7 reductions, including, but not limited to, advanced intelligent
8 transportation systems, autonomous vehicles, and other freight
9 information and operations technologies.
10 (c) The state board, in consultation with the State Energy
11 Resources Conservation and Development Commission, shall
12 develop guidance through the existing Air Quality Improvement
13 Program funding plan process for the implementation of this
14 section that is consistent with the California Global Warming
15 Solutions Act of 2006 (Division 25.5 (commencing with Section
16 38500)) and this chapter.
17 (d) The guidance developed pursuant to subdivision (c) shall
18 do all of the following:
19 (1) Outline performance criteria and metrics for deployment
20 incentives. The goal shall be to design a simple and predictable
21 structure that provides incentives for truck, bus, and off -road
22 vehicle and equipment technologies that provide significant
23 greenhouse gas reduction and air quality benefits.
24 (2) Ensure that program investments are coordinated with
25 funding programs developed pursuant to the California Alternative
26 and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon
27 Reduction Act of 2007 (Chapter 8.9 (commencing with Section
28 44270) of Part 5).
29 (3) Promote projects that assist the state in reaching its climate
30 goals beyond 2020, consistent with Sections 38550 and 38551.
31 (4) Promote investments in medium- and heavy-duty trucking,
32 including, but not limited to, vocational trucks, short -haul and
33 long -haul trucks, buses, and off -road vehicles and equipment,
34 including, but not limited to, port equipment, agricultural
35 equipment, marine equipment, and rail equipment.
36 (5) Implement purchase incentives for eligible technologies to
37 increase the use of the cleanest vehicles in disadvantaged
38 communities.
98
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5— AB 2415
(6) Allow for remanufactured and retrofitted vehicles to qualify
for purchase incentives if those vehicles meet warranty and
emissions requirements, as determined by the state board.
(7) Establish a competitive process for the allocation of moneys
for projects funded pursuant to this section.
(8) Leverage, to the maximum extent feasible, federal or private
funding.
(9) Ensure that the results of emissions reductions or benefits
can be measured or quantified. The state board shall post on its
Internet Web site every two years the results of those measurements
or quantifications.
(10) Ensure that activities undertaken pursuant to this section
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminants.
(e) In evaluating potential projects to be funded pursuant to this
section, the state board shall give priority to projects that
demonstrate one or more of the following characteristics:
(1) Benefit disadvantaged communities pursuant to Sections
39711 and 39713.
(2) The ability to leverage additional public and private funding.
(3) The potential for cobenefits or multiple -benefit attributes.
(4) The potential for the project to be replicated.
(5) Regional benefit, with focus on collaboration between
multiple entities.
(6) Support for technologies with broad market and emissions
reduction potential.
(7) Support for projects addressing technology and market
barriers not addressed by other programs.
(8) Support for enabling technologies that benefit multiple
technology pathways.
(f) In the implementation of this section, the state board, in
consultation with the State Energy Resources Conservation and
Development Commission, shall create an annual framework and
plan. The framework and plan shall be developed with public input
and may utilize existing investment plan processes and workshops
as well as existing state and third -party research and technology
roadmaps. The framework and plan shall do all of the following:
(1) Articulate an overarching vision for technology development,
demonstration, precommercial pilot, and early commercial
98
AB 2415 — 6
1 deployments, with a focus on moving technologies through the
2 commercialization process.
3 (2) Outline technology categories, performance criteria, and
4 required mandates for technologies and applications that may be
5 considered for funding pursuant to this section. This shall include
6 technologies and low -carbon -fuel requirements for medium- and
7 heavy-duty trucking, including, but not limited to, vocational
8 trucks, short -haul and long -haul trucks, buses, and off -road vehicles
9 and equipment, including, but not limited to, port equipment,
10 agricultural equipment, construction equipment, marine equipment,
11 and rail equipment.
12 (3) Describe the roles of the relevant agencies and the process
13 for coordination among agencies, program participants, and
14 low -carbon -fuel providers.
15 (g) For purposes of this section, the following terms have the
16 following meanings:
17 (1) Effective January 2, 2018, "Heavy-duty truck" means a
18 vehicle that has a gross vehicle weight rate (GVWR) of 26,001
19 pounds or more.
20 (2) "Zero- and near -zero -emission" means vehicles, fuels, and
21 related technologies that reduce greenhouse gas emissions and
22 improve air quality when compared with conventional or fully
23 commercialized alternatives, as defined by the state board in
24 consultation with the State Energy Resources Conservation and
25 Development Commission. "Zero- and near -zero -emission" may
26 include, but is not limited to, zero -emission technology, enabling
27 technologies that provide a pathway to emissions reductions,
28 advanced or alternative fuel engines for long -haul trucks, and
29 hybrid or alternative fuel technologies for trucks and off -road
30 equipment.
W
98
SAMPLE SUPPORT LETTER
INSERT LOGO OR PLACE ON STATIONERY
INSERT DATE
The Honorable Jim Frazier
Chair, Assembly Transportation Committee
State Capitol, Room 3091
Sacramento, California 95814
assemblvmember.frazierftassemblv.ca.Rov
RE: AB 2415 (Garcia) CALIFORNIA RENEWABLE FUELS IN FREIGHT ACT — STRONG
SUPPORT
Dear Assembly Member Frazier:
On behalf of [Insert organization], we respectfully urge you to support AB 2415, the California
Renewable Fuels in Freight Act. AB 2415 is critical to improving air quality and public health by
providing incentives to increase deployment of clean heavy-duty trucks in California and retiring
older, high -polluting trucks. In addition to helping the state meet federal ozone standards and
the ambitious emissions reductions goals mandated by AB 32, the bill will grow the market for
clean alternative fuels and stimulate investment in next -generation lower -emissions
technologies.
California has consistently been at the forefront of policies to protect and improve the
environment. For the last 50 years, California has led the nation with tough policies and
stringent regulations to reduce public exposure to air contaminants that cause asthma, cancer
and other health problems. But, even with the most aggressive emissions control measures in
the world, California still suffers the worst air quality in the nation, particularly in the South Coast
and San Joaquin Valley air districts.
Poor air quality creates staggering societal costs, including billions in healthcare costs and
millions of missed school and work days, all of which put our state at a competitive
disadvantage. Too frequently, it is the most vulnerable who are at risk. Multiple studies show
California has a wide health disparity problem that cuts along economic, ethnic and racial
divides. This disparity acutely impacts those living in communities situated near pollution -
affected corridors, including freeways, ports and rail depots. California must address this serious
public health issue now.
While the transportation sector -- and specifically heavy-duty trucking -- is California's largest
emissions challenge, it also offers the greatest opportunity to improve air quality and quality of
life now. AB 2415 will provide an opportunity to deploy cleaner trucks sooner, rather than later,
so we can begin to see increased health benefits and improved quality of life in the near -term.
Cleaner trucks will reduce smog -forming NOx emissions by 90% and greenhouse gas
emissions by up to 70%.
We urge you to support AB 2415. The bill will promote the use of renewable fuels and advanced
low -emissions technologies. More importantly, it provides an immediate opportunity to improve
California's air quality and enhance health -related benefits for Californians.
Sincerely,
INSERT NAME
INSERT TITLE/ORGANIZATION
CC:
The Honorable Eric Linder, Vice chair State Capitol, Room 2016 a;,sE.nrblyrnerTiber,lir dc;r ,__assrnhly ca.cn
The Honorable Catharine Baker
State Capitol, Room 4153
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The Honorable Richard Bloom
State Capitol, Room 2003
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The Honorable Cheryl Brown
State Capitol, Room 2136
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State Capitol, Room 3126
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The Honorable Bill Dodd
State Capitol, Room 2137
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State Capitol, Room 5135
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State Capitol, Room 6031
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Ms. Victoria Alvarez, Consultant
1020 N Street, Room 112
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Assembly Transportation Committee
Mr. Zachary Olmstead, Consultant
State Capitol, Room 219
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Assembly Democratic Caucus
Mr. Daniel Ballon, Consultant
State Capitol, Room 400
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Assembly Republican Caucus
Mr. Emmanuel Martinez, Consultant
State Capitol, Room 4162
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Office of Asm. Eduardo Garcia
Mr. Matt Roman, Consultant
State Capitol, Room 2016
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Israel Salas; ISal asrasernprautiliUes.com
Nate Taylor; NTa I(?_,d sernorautdrties corn
7 3 — 5 1 o FRED WARING DRIVE
PALm DESERT, CALIFORNIA 92260 -2578
TEL: 760 346—o6xz
info4+Lit) ofpalmdesert.org
April 13, 2015
The Honorable Henry T. Perea
State Capitol
P.O. Box 942849
Sacramento, California 94249-0031
SUBJECT: SUPPORT OF AB 857 (PEREA) CLEAN TRUCK PROGRAM
Dear Assembly Member Perea:
On behalf of the City of Palm Desert, I wish to submit our support for AB 857, the Clean
Trucking Act. This bill will create incentives for heavy-duty truck purchasers to help buy -
down the initial cost of the vehicle. It will help California truckers purchase new very low -
emission trucks, which will help accelerate the retirement of older high polluting trucks.
California has always been at the forefront of policies to protect and improve the
environment. For the last 50 years, California has led the nation in the development of
tough policies and stringent regulations to decrease public exposure to air contaminants
that cause asthma, cancer, and other health problems. But even with the most aggressive
emissions control measures in the world, California still suffers from the worst air quality in
the nation, particularly in the South Coast and San Joaquin Valley air districts.
California needs to address this serious public health issue now. The City of Palm Desert is
located along the 1-10 Freeway, one of the most heavily travelled goods movement
corridors in the state. The heavy-duty trucks that utilize this corridor near our City account
for the largest source of the region's air pollution, which is among the worst in the state.
Consequently, the City of Palm Desert and the people who live and work here are
particularly vulnerable to the health risks of such pollution. Poor air quality creates a cost to
everyone, and all too frequently, it is the most vulnerable who are at risk.
While the transportation sector is California's biggest emissions challenge, it also offers the
greatest opportunity to improve air quality and quality of life. By sending market signals that
all cost-effective solutions will be considered, California can accelerate the development of
even cleaner, affordable technologies that help drive down the cost of new heavy-duty
engines.
The Honorable Henry T. Perea
April 13, 2015
Page 2
AB 857 is critical to improving air quality and public health in California. It will provide
incentives to increase deployment of clean trucks in California and help California achieve
the ambitious emissions reduction goals mandated by AB 32, as well as federal ozone
standards. AB 857 is actionable policy that will lead to better air quality in California,
including disadvantaged communities along major goods movement corridors. With AB 857
California has the opportunity to improve air quality and increase related health benefits for
residents. For these reasons the City of Palm Desert supports AB 857.
Please contact Stephen Y. Aryan, Risk Manager, at (760) 776-6326 should you wish to
further discuss this matter. Thank you again for all your efforts in improving California's air
quality.
Sincerely,
Susan Marie Weber
Mayor
cc: City Council
The Honorable Jeff Stone, California State Senate
The Honorable Chad Mayes, California State Assembly
The Honorable Eduardo Garcia, California State Assembly
Israel Salas, Sempra Utilities (ISalase.semorautilities.com)
Regina Lugani, Sempra Utilities (RluaaniOsemprautilities.com)
Deborah McGarrey, Sempra Utilities (dmcaarrevC7a semorautilities.com)
Anthony D. Gonsalves, Joe A. Gonsalves & Sons (aonsalves(ZDaonsalvi.com)
John M. Wohlmuth, City Manager
Rudy Acosta, Assistant City Manager
Stephen Y. Aryan, Risk Manager
Paul S. Gibson, Director of Finance/City Treasurer
Mark Greenwood, Director of Public Works
CITY Of P 0 L M 011111
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