HomeMy WebLinkAboutAB 857 - The Cleaning Truck ActCITY OF PALM DESERT k �/i
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 857 (PEREA).
SUBMITTED BY:
DATE:
CONTENTS:
Recommendation
Stephen Y. Aryan, Risk Manager
April 9, 2015
AB 857 Fact Sheets & Bill Text
Draft Support Letter
By Minute Motion, authorize the Mayor to send a letter of support for AB 857 (Perea).
Committee Recommendation
On March 27, 2015, the Palm Desert Legislative Review Committee recommended that the
City Council approve a support letter for AB 857 (Peres).
Background
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 from the auction or sale of allowances 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.
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.
This bill, between January 2, 2018, and January 1, 2023, inclusive, would require no less
than 80% or $100,000,000, whichever is greater, of the moneys appropriated 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 to
support the commercial deployment of existing zero and near -zero -emission heavy-duty truck
technology that meets or exceeds a specified emission standard.
Staff Report: AB 857 (Peres)
April 9, 2015
Page 2 of 2
In conclusion, AB 857 extends and expands incentives to support deployment of clean and
low carbon heavy-duty vehicles involved in goods movement that can provide an immediate
and cost-effective solution to achieving much -needed criteria emission reductions in the near -
term to clean the air and improve public health. It also supports the transition to low carbon
transportation technologies to address climate change and global health over the long-term.
For the aforementioned reasons, staff recommends support of AB 857 (Perea)
Fiscal Analysis
There is no direct fiscal impact related to the City's support of AB 857.
Submitted By:
Stephen Y. Arybn, Ri4k Mafiager
Approval:
M. Wohlmuth, City Manager
SUMMARY
AB 857 extends and expands incentives to
support deployment of clean and low carbon
heavy-duty vehicles involved in goods
movement that can provide an immediate
and cost-effective solution to achieving
much -needed criteria emission reductions in
the near -term to clean the air and improve
public health, while also supporting the
transition to low carbon transportation
technologies to address climate change and
global health over the long-term.
BACKGROUND
Southern California and the San Joaquin
Valley face a critical need for short and mid-
term reductions of criteria pollutants in
order to reduce ozone and particulate matter
to meet stringent federal Air Quality
standards and help promote critical health
benefits like reducing asthma, cancer and
premature death. NOx and particulate
pollution reduction addresses real human
health needs now, especially within
Environmental Justice communities along
transportation corridors where most of the
goods that are brought into the state are
dispersed to their final destinations. The
goal of these needed, 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 the economy. A potential
FIP would threaten an already fragile
Southern California economy if Air Districts
fail to meet federally mandated deadlines in
the short and mid-term.
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; 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 2032.
Additionally, California's climate change
policy requires an 85-90% reduction in GHG
emissions by 2050; and 40% of the state's
greenhouse gas (GHG) emissions come from
mobile sources.
Manufacturers report technology is coming
into the transportation marketplace within 3
years that can meet "near zero" emissions
levels (90% NOx reduction over current
standard). But to achieve widespread
deployment financial incentives will be
necessary to buy down the capital cost of
technology purchases.
Current state funding programs supporting
development of zero and near zero criteria
emissions, as well as low carbon
transportation technology can be designated
to specifically support early deployment of
such technology. Further, price differentials
between fuels provide an opportunity for
state financing of capital costs with a loan
payback structured on both fuel price
differentials and duty cycle or use of the
vehicle.
Advancing deployment of such vehicles offer
a viable "pathway" to help meet California's
near -term aggressive air quality and longer -
term climate protection goals. Near -zero
heavy-duty truck engines can provide a new
foundation for the state's strategy to clean
up smog, eliminate diesel particulates, as
well as reduce the state's greenhouse gas
footprint.
THIS BILL
Specifically, AB 857 would:
■ Amends SB 1204 (2014) by extending
the sunset date 5 years to 2023 and
increasing the amount of dollars
available for deployment from 20% to
Office of Assemblymember Henry T. Perea • AB 618 Fact Sheet • 3/6/2013 11:34 AM
80% or $100 million dollars,
whichever is greater.
SUPPORT
OPPOSITION
FOR MORE INFORMATION
Stephen Francis
Assemblymember Henry T. Perea
Phone: (916) 319-2031
Fax: (916) 319-2131
Stephen. Francis(i�asm. ca. gov
Office of Assemblymember Henry T. Perea • AB 1570 Fact Sheet • Page 2
Support AB 857: The Clean Trucking Act
CALIFORNIA'S ECONOMY
Goods movement is vital to California's
economy.
r
�Q M0,000"00
OVER 78% OF CALIFORNIA'S
COMMUNITIES DEPEND EXCLUSIVELY
ON TRUCKS TO MOVE THEIR GOODS
TRANSPORTATION
AND GOODS
MOVEMENT PROVIDED
CALIFORNIA WITH ift
900,000 JOBS IN 2011
IN 2012, CALIFORNIA'S ADVANCED
TRANSPORTATION
SECTOR GENERATED
$172 BILLION
IN REVENUES
THE CHALLENGE
We need to reduce emissions from the transportation sector, which account for
80% OF THE REGION'S
SMOG -FORMING EMISSIONS (NOx)
40% OF ITS GREENHOUSE
U .;;,," ioo GAS EMISSIONS
These emissions create severe air pollution along California's freeways.
HEAVY-DUTY DIESEL TRUCKS -THE TRUCKS THAT
MOVE OUR GOODS -ARE THE BIGGEST POLLUTERS.
The good news is, we have a practical way to clean up our air without crippling
local businesses. Transitioning these heavy-duty diesel trucks to alternative fuels
would have an immediate and positive impact on our environment.
REDUCE
!11%GREENHOUSE
GASES BY
11�
15%-20%
PRODUCE
90% LESS
' NOx EMISSIONS
I THE SOLUTION
The challenge is economic —fleet owners need a way to offset upfront costs.
AB 857 THE CLEAN TRUCKING ACT
GIVES CALIFORNIA A PRACTICAL AND AFFORDABLE
WAY TO IMPROVE THE AIR QUALITY AND
THE HEALTH OF OUR COMMUNITIES.
Providing incentives to get cleaner, heavy-duty trucks on the road, the bill will
accelerate the reduction of harmful emissions, help California clean the
air and achieve its environmental goals faster.
We don't have to wait for better air quality.
Support AB 857: The Clean Trucking Act
AIR QUALITY
California has the worst air quality
in the nation, contributing to serious
health risks including asthma, cancer,
birth defects and even premature death
1 IN 6 OF CALIFORNIA'S
CHILDREN LIVE WITH ASTHMA
CALIFORNIA CHILDREN
MISS AROUND
1.9 MILLION
SCHOOL DAYS
EACH YEAR DUE TO ASTHMA
ASTHMA RESULTS IN
ABOUT 11.8 MILLION
DAYS OF MISSED WORK
IN CALIFORNIA
• ( � ,.,. -�
.4 1 �i
THE CHALLENGE
We need to reduce emissions from the transportation sector, which account for
80% OF THE REGION'S
SMOG -FORMING EMISSIONS (NOx)
40% OF ITS GREENHOUSE
o too GAS EMISSIONS
Poor air quality is widening the gap in health disparity — California's most
disadvantaged communities live near major transportation corridors.
HEAVY-DUTY DIESEL TRUCKS ARE THE BIGGEST
POLLUTERS. Transitioning from gasoline and diesel to alternative fuels
would significantly improve our environment and public health.
REDUCE PRODUCE
GREENHOUSE r------� 90% LESS
GASES BYI�r
C)
15%-20% o - o 0o NOx EMISSIONS
The challenge is economic —fleet owners need a way to offset upfront costs.
AB 857 THE CLEAN TRUCKING ACT
GIVES CALIFORNIA A PRACTICAL AND AFFORDABLE
WAY TO IMPROVE THE AIR QUALITY AND
i THE HEALTH OF OUR COMMUNITIES.
Providing incentives to get cleaner, heavy-duty trucks on the road, the bill will
accelerate the reduction of harmful emissions, help California clean the air
and achieve its environmental goals faster.
We don't have to wait for better air quality.
AMENDED IN ASSEMBLY MARCH 26, 2015
CALIFORNIA LEG ISLATURE-2015-16 REGULAR SESSION
ASSEMBLY BILL No. 857
Introduced by Assembly Member Perea
February 26, 2015
An act to amend Section 39719.2 of the Health and Safety Code,
relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
AB 857, as amended, Perea. California Clean Truck, Bus, and
Off -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 from the auction or sale
of allowances 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 lission
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 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, precommercial pilots, and early
98
AB 857 —2—
commercial deployments ofzero- 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.
This bill would make teehnieal, nonsubstantive ehanges to t
This bill, between January 2, 2018, and January 1, 2023, inclusive,
would require no less than 80% or $100, 000, 000, whichever is greater,
of the moneys appropriated for technology development, demonstration,
precommercial pilots, and early commercial deployments ofzero- and
near -zero -emission medium- and heavy-duty truck technology be
allocated to support the commercial deployment of existing zero- and
near -zero -emission heavy-duty truck technology that meets or exceeds
a specified emission standard.
Vote: majority. Appropriation: no. Fiscal committee: tte-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
11 vehicle and equipment technologies. Priority shall be given to
12 projects benefiting disadvantaged communities pursuant to the
13 requirements 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 near zero
18 emission near -zero -emission medium- and heavy-duty truck
19 technology, including projects that help to facilitate clean
20 goods -movement corridors. Until jantntry 1, 2018, no less than 20
21
99
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
-3— AB 857
shall support early eommereial deployment of existing zero and
(A) Until January 1, 2018, no less than 20 percent of funding
made available for the purposes of this paragraph shall support
early commercial deployment of existing zero- and
near -zero -emission heavy-duty truck technology.
(B) Between January 2, 2018, and January 1, 2023, inclusive,
no less than 80 percent or one hundred million dollars
($100, 000, 000), whichever is greater, of the moneys appropriated
for the purposes of this paragraph .shall be allocated to support
the commercial deployment of existing zero- and
near -zero -emission heavy-duty truck technology that meets or
exceeds an emission standard of 0.02 grams per brake
horsepower -hour oxides of nitrogen, as described in the optional
low oxides of nitrogen emission standards in Section 1956.8 of
Title 13 of the California Code of Regulations.
(2) Zero- and near zero emission near -zero -emission bus
technology development, demonstration, precommercial pilots,
and early commercial deployments, including pilots of multiple
vehicles at one site or region.
(3) Zero- and near -zero -emission off -road
vehicle and equipment technology development, demonstration,
precommercial pilots, and early commercial deployments, including
vehicles and equipment in the port, agricultural, marine,
construction, and rail sectors.
(4) Purchase incentives, which may include point -of -sale, for
commercially available zero- and
near -zero -emission truck, bus, and off -road vehicle and equipment
technologies and fueling infrastructure to support early market
deployments of alternative technologies and to increase
manufacturer volumes and accelerate market acceptance.
(5) Projects that support greater commercial motor vehicle and
equipment freight efficiency and greenhouse gas emissions
reductions, including, but not limited to, advanced intelligent
transportation systems, autonomous vehicles, and other freight
information and operations technologies.
(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, shall
develop guidance through the existing Air Quality Improvement
Program funding plan process for the implementation of this
99
AB 857 — 4 —
1 section that is consistent with the California Global Warming
2 Solutions Act of 2006 (Division 25.5 (commencing with Section
3 38500)) and this chapter.
4 (d) The guidance developed pursuant to subdivision (c) shall
5 do all of the following:
6 (1) Outline performance criteria and metrics for deployment
7 incentives. The goal shall be to design a simple and predictable
8 structure that provides incentives for truck, bus, and off road
9 vehicle and equipment technologies that provide significant
10 greenhouse gas reduction and air quality benefits.
11 (2) Ensure that program investments are coordinated with
12 funding programs developed pursuant to the California Alternative
13 and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon
14 Reduction Act of 2007 (Chapter 8.9 (commencing with Section
15 44270) of Part 5).
16 (3) Promote projects that assist the state in reaching its climate
17 goals beyond 2020, consistent with Sections 38550 and 38551.
18 (4) Promote investments in medium- and heavy-duty trucking,
19 including, but not limited to, vocational trucks, short -haul and
20 long -haul trucks, buses, and off -road vehicles and equipment,
21 including, but not limited to, port equipment, agricultural
22 equipment, marine equipment, and rail equipment.
23 (5) Implement purchase incentives for eligible technologies to
24 increase the use of the cleanest vehicles in disadvantaged
25 communities.
26 (6) Allow for remanufactured and retrofitted vehicles to qualify
27 for purchase incentives if those vehicles meet warranty and
28 emissions requirements, as determined by the state board.
29 (7) Establish a competitive process for the allocation of moneys
30 for projects funded pursuant to this section.
31 (8) Leverage, to the maximum extent feasible, federal or private
32 funding.
33 (9) Ensure that the results of emissions reductions or benefits
34 can be measured or quantified.
35 (10) Ensure that activities undertaken pursuant to this section
36 complement, and do not interfere with, efforts to achieve and
37 maintain federal and state ambient air quality standards and to
38 reduce toxic air contaminants.
98
-5— AB 857
1 (e) In evaluating potential projects to be funded pursuant to this
2 section, the state board shall give priority to projects that
3 demonstrate one or more of the following characteristics:
4 (1) Benefit disadvantaged communities pursuant to Sections
5 39711 and 39713.
6 (2) The ability to leverage additional public and private funding.
7 (3) The potential for cobenefits or multiple -benefit attributes.
8 (4) The potential for the project to be replicated.
9 (5) Regional benefit, with focus on collaboration between
10 multiple entities.
11 (6) Support for technologies with broad market and emissions
12 reduction potential.
13 (7) Support for projects addressing technology and market
14 barriers not addressed by other programs.
15 (8) Support for enabling technologies that benefit multiple
16 technology pathways.
17 (f) To assist in the implementation of this section, the state
18 board, in consultation with the State Energy Resources
19 Conservation and Development Commission, shall create an annual
20 framework and plan. The framework and plan shall be developed
21 with public input and may utilize existing investment plan
22 processes and workshops as well as existing state and third -party
23 research and technology roadmaps. The framework and plan shall
24 do all of the following:
25 (1) Articulate an overarching vision for technology development,
26 demonstration, precommercial pilot, and early commercial
27 deployments, with a focus on moving technologies through the
28 commercialization process.
29 (2) Outline technology categories and performance criteria for
30 technologies and applications that may be considered for funding
31 pursuant to this section. This shall include technologies for
32 medium- and heavy-duty trucking, including, but not limited to,
33 vocational trucks, short -haul and long -haul trucks, buses, and
34 off -road vehicles and equipment, including, but not limited to, port
35 equipment, agricultural equipment, construction equipment, marine
36 equipment, and rail equipment.
37 (3) Describe the roles of the relevant agencies and the process
38 for coordination.
39 "
40 ineans vehieles, fuels, and related teehnologies that ieduee
99
AB 857
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
—6—
Gonservation and Development Gonimission. "Zero and near -zero
emission" may inelude, but is not litnited by the state boat d in eonsultation with the State Energy Resott, ees
zero ernission
teehnology, enabling teehnologies that provide a pathway to
Juetions, advaneed or alternative fuel engines for
trueks and off -road equipment.
(g) For purposes of'this .section, the following terms have the
following meanings:
(1) "Heavy-duty truck" means a vehicle that has a gross vehicle
weight rate (GVWR) of 26, 001 pounds or more.
(2) "Zero- and near -zero -emission " means vehicles, fuels, and
related technologies that reduce greenhouse gas emissions and
improve air quality when compared with conventional or fully
commercialized alternatives, as defined by the state board in
consultation with the State Energy Resources Conservation and
Development Commission. "Zero- and near -zero -emission " may
include, but is not limited to, zero -emission technology, enabling
technologies that provide a pathway to emissions reductions,
advanced or alternative fitel engines for long -haul trucks, and
hybrid or alternative fuel technologies for trucks and off road
equipment.
98
April 9, 2015
The Honorable Henry T. Perea
State Capitol, Room 3120
Sacramento, California 95814
Email: assemblymember.perea(a)assembly.ca.Qov
Fax: 916-319-2131
Dear Assemblymember Perea,
SUBJECT: SUPPORT OF AB 857 (PEREA) CLEAN TRUCK PROGRAM
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.
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/County 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