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HomeMy WebLinkAboutAB2415 - CA Renewable Fuels in Freight ActCITY OF PALM DESERT OFFICE OF THE CITY MANAGER .......... ....... '' 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 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 ass niblyrnE rnboi takerc as t inUy c i_g v The Honorable Richard Bloom State Capitol, Room 2003 �_.5r(nbiyrt Prnhcr.hlgrxn asenblyc;_ gov The Honorable Cheryl Brown State Capitol, Room 2136 assf.,nibl_vnie iLcr_brcwn({ assseq ly ra apv The Honorable Kansen Chu State Capitol, , Room 5175 ,grry _ The Honorable Tom Daly State Capitol, Room 3126 assemt)lyri, ml,er_ri..�lyrr_as,.r,.arnhly.c;i (jov The Honorable Bill Dodd State Capitol, Room 2137 ar.sf.riil)ym�mhe, dodo .,assembly ca, lov The Honorable Eduardo Garcia , Room 41 2 fate Capitol, �._.5o r�,(g,�+rcur.�; .I.'n—bi yr; e_mt�r�r _.. E?du�rdq _c �}ssembly ra.T)v The Honorable Jimmy Gomez State Capitol, Room 2114 a-E?rnL lym«anit)er,riolnr_z' �r_sE,riblyca jf?y The Honorable Young Kim State Capitol, Room 4177 a It enil)!ym�r ibar,k,rT)'(. as ornbly.c;i_GOV The Honorable Devon Mathis State Capitol, Room 5126 rs:;LImhtyrnr, mb,,r_ rr.atrri,_,'u_a,;s fmhiy.(1a.gny The Honorable Jose Medina State Capitol, Room 5135 _i,- er. L Iv ier i!)er rri drn3'r,_T_5 ;nNy c.a gov The Honorable Melissa Melendez State Capitol, Room 6031 a;>sF nu�lyrnFnitrc_ n_ IE nrJc.z.•� mt ly r,;t gny The Honorable Adrin Nazarian State Capitol, Room 4146 _c;sc-nrt Iyn airbF r n<rzanan : as.,.omt�h�,ca_yc.iv The Honorable Patrick O'Donnellfate Capitol, Room 4166 Cir;_`" r* -Tt to �ubt r c��i nrtrillP-hiy,r j uo,v y.,_••_ : c T c�,,,,, Ms. Victoria Alvarez, Consultant 1020 N Street, Room 112 victaria.alvarez'.a asm.ca.gny Assembly Transportation Committee Mr. Zachary Olmstead, Consultant State Capitol, Room 219 z,acl iary. glmst�).0 in asm.ca.clov Assembly Democratic Caucus Mr. Daniel Ballon, Consultant State Capitol, Room 400 daniel.ballon ? asrn ca.gov Assembly Republican Caucus Mr. Emmanuel Martinez, Consultant State Capitol, Room 4162 ernrTranu��l.riiartinezcaasni.ra qov Office of Asm. Eduardo Garcia Mr. Matt Roman, Consultant State Capitol, Room 2016 matt.romanirl asm.cca.ctU_v Office of Asm. Eric Linder 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 ^O lens a mwuwn