Senate BillNo. 11

4

41081.  

(a) Subject to Article 3.7 (commencing with Section
553720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
6Government Code, or with the approval of the board of supervisors
7of each county included, in whole or in part, within the Sacramento
8district, the Sacramento district board may adopt a surcharge on
9the motor vehicle registration fees applicable to all motor vehicles
10registered in those counties within the Sacramento district whose
11boards of supervisors have adopted a resolution approving the
12surcharge. The surcharge shall be collected by the Department of
13Motor Vehicles and, after deducting the department’s
14administrative costs, the remaining funds shall be transferred to
15the Sacramento district. Prior to the adoption of any surcharge
16pursuant to this subdivision, the district board shall make a finding
17that any funds allocated to the district as a result of the adoption
18of a county transportation sales and use tax are insufficient to carry
19out the purposes of this chapter.

20(b) The surcharge shall not exceed six dollars ($6).

21(c) After consulting with the Department of Motor Vehicles on
22the feasibility thereof, the Sacramento district board may provide,
23in the surcharge adopted pursuant to subdivision (a), to exempt
24from all or part of the surcharge any category of low-emission
25motor vehicle.

26(d) Funds received by the Sacramento district pursuant to this
27section shall be used by that district as follows:

28(1) The revenues resulting from the first four dollars ($4) of
29each surcharge shall be used to implement reductions in emissions
30from vehicular sources, including, but not limited to, a clean fuels
31program and motor vehicle use reduction measures.

32(2) The revenues resulting from the next two dollars ($2) of
33each surcharge shall be used to implement the following programs
34that achieve emission reductions from vehicular sources and
35off-road engines, to the extent that the district determines the
36program remediates air pollution harms created by motor vehicles
37on which the surcharge is imposed:

P7    1(A) Projects eligible for grants under the Carl Moyer Memorial
2Air Quality Standards Attainment Program (Chapter 9
3(commencing with Section 44275) of Part 5).

4(B) The new purchase, retrofit, repower, or add-on of equipment
5for previously unregulated agricultural sources of air pollution, as
6defined in Section 39011.5, within the Sacramento district, for a
7minimum of three years from the date of adoption of an applicable
8rule or standard, or until the compliance date of that rule or
9standard, whichever is later, if the state board has determined that
10the rule or standard complies with Sections 40913, 40914, and
1141503.1, after which period of time, a new purchase, retrofit,
12repower, or add-on of equipment shall not be funded pursuant to
13this chapter. The district shall follow any guidelines developed
14under subdivision (a) of Section 44287 for awarding grants under
15this program.

16(C) The purchase of new, or retrofit of emissions control
17equipment for existing, schoolbuses pursuant to the
18Lower-Emission School Bus Program adopted by the state board.

19(D) An accelerated vehicle retirement or repair program that is
20adopted by the state board pursuant to authority granted hereafter
21by the Legislature by statute.

22(E) The replacement of onboard natural gas fuel tanks on
23schoolbuses owned by a school district that are 14 years or older,
24not to exceed twenty thousand dollars ($20,000) per bus, pursuant
25to the Lower-Emission School Bus Program adopted by the state
26board.

27(F) The enhancement of deteriorating natural gas fueling
28dispensers of fueling infrastructure operated by a school district
29with a one-time funding amount not to exceed five hundred dollars
30($500) per dispenser, pursuant to the Lower-Emission School Bus
31Program adopted by the state board.

32(e) Not more than 5 percent of the funds collected pursuant to
33this section shall be used by the district for administrative expenses.

34(f) A project funded by the program shall not be used for credit
35under any state or federal emissions averaging, banking, or trading
36program. An emission reduction generated by the program shall
37not be used as marketable emission reduction credits or to offset
38any emission reduction obligation of any person or entity. Projects
39involving new engines that would otherwise generate marketable
40credits under state or federal averaging, banking, and trading
P8    1programs shall include transfer of credits to the engine end user
2and retirement of those credits toward reducing air emissions in
3order to qualify for funding under the program. A purchase of a
4low-emission vehicle or of equipment pursuant to a corporate or
5a controlling board’s policy, but not otherwise required by law,
6shall generate surplus emissions reductions and may be funded by
7the program.

8(g) This section shall remain in effect only until January 1, 2024,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2024, deletes or extends that date.

14

41081.  

(a) Subject to Article 3.7 (commencing with Section
1553720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
16Government Code, or with the approval of the board of supervisors
17of each county included, in whole or in part, within the Sacramento
18district, the Sacramento district board may adopt a surcharge on
19the motor vehicle registration fees applicable to all motor vehicles
20registered in those counties within the Sacramento district whose
21boards of supervisors have adopted a resolution approving the
22surcharge. The surcharge shall be collected by the Department of
23Motor Vehicles and, after deducting the department’s
24administrative costs, the remaining funds shall be transferred to
25the Sacramento district. Prior to the adoption of any surcharge
26pursuant to this subdivision, the district board shall make a finding
27that any funds allocated to the district as a result of the adoption
28of a county transportation sales and use tax are insufficient to carry
29out the purposes of this chapter.

30(b) The surcharge shall not exceed four dollars ($4).

31(c) After consulting with the Department of Motor Vehicles on
32the feasibility thereof, the Sacramento district board may provide,
33in the surcharge adopted pursuant to subdivision (a), to exempt
34from all or part of the surcharge any category of low-emission
35motor vehicle.

36(d) Funds received by the Sacramento district pursuant to this
37section shall be used to implement the strategy with respect to the
38reduction in emissions from vehicular sources, including, but not
39limited to, a clean fuels program and motor vehicle use reduction
40measures. Not more than 5 percent of the funds collected pursuant
P9    1to this section shall be used by the district for administrative
2expenses.

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

6

43018.9.  

(a) For purposes of this section, the following terms
7have the following meanings:

8(1) “Commission” means the State Energy Resources
9Conservation and Development Commission.

10(2) “Publicly available hydrogen fueling station” means the
11equipment used to store and dispense hydrogen fuel to vehicles
12according to industry codes and standards that is open to the public.

13(b) (1) Notwithstanding any other law, the state board shall
14have no authority to enforce any element of its existing clean fuels
15outlet regulation or of any other regulation that requires or has the
16effect of requiring that any person construct, operate, or provide
17funding for the construction or operation of any publicly available
18hydrogen fueling station.

19(2) This subdivision shall become inoperative on January 1,
202024.

begin delete

21(c) The state board shall aggregate and make available to the
22public no later than January 1, 2014, and every two years thereafter,
23the number of vehicles that automobile manufacturers project to
24be sold or leased, as reported to the state board pursuant to Section
252303(a) of Title 13 of the California Code of Regulations.

26(d) (1) The commission shall allocate twenty million dollars
27($20,000,000) each fiscal year, beginning July 1, 2013, through
28June 30, 2016, and up to twenty million dollars ($20,000,000) each
29fiscal year thereafter, not to exceed 20 percent of moneys
30appropriated by the Legislature from the Alternative and
31Renewable Fuel and Vehicle Technology Fund, established
32pursuant to Section 44273, for purposes of achieving a hydrogen
33fueling network sufficient to provide convenient fueling to vehicle
34owners, and expand that network as necessary to support a growing
35market for vehicles requiring hydrogen fuel, until there are at least
36100 publicly available hydrogen fueling stations. Allocations by
37the commission pursuant to this subdivision shall be subject to all
38of the requirements applicable to allocations from the Alternative
39and Renewable Fuel and Vehicle Technology Program pursuant
40to Article 2 (commencing with Section 44272) of Chapter 8.9.

P10   1(2) The commission, in awarding funds pursuant to the
2allocations described in paragraph (1), shall, based on best available
3data and relevant stakeholder input, award moneys allocated in
4paragraph (1) according to a strategy that supports the deployment
5of an effective and efficient hydrogen fueling station network in
6a way that maximizes benefits to the public while minimizing costs
7to the state.

end delete begin insert

8(c) On or before June 30, 2014, and every year thereafter, the
9state board shall aggregate and make available all of the following:

end insertbegin insert

10(1) The number of hydrogen-fueled vehicles that motor vehicle
11manufacturers project to be sold or leased over the next three
12years as reported to the state board pursuant to the Low Emission
13Vehicle regulations, as currently established in Section 1961 to
141961.2, inclusive, of Title 13 of the California Code of Regulations.

end insertbegin insert

15(2) The total number of hydrogen-fueled vehicles registered
16with the Department of Motor Vehicles through April 30.

end insertbegin insert

17(d) On or before June 30, 2014, and every year thereafter, the
18state board, based on the information made available pursuant to
19subdivision (c), shall do both of the following:

end insertbegin insert

20(1) Evaluate the need for additional publicly available hydrogen
21fueling stations for the subsequent three years in terms of quantity
22of fuel needed for the actual and projected number of
23hydrogen-fueled vehicles, geographic areas where fuel will be
24needed, and station coverage.

end insertbegin insert

25(2) Report findings to the commission on the need for additional
26public hydrogen fueling stations in terms of numbers of stations,
27geographic areas where additional stations will be needed, and
28minimum operating standards, such as number of dispensers,
29filling protocols, and pressures.

end insertbegin insert

30(e) (1) The commission shall allocate twenty million dollars
31($20,000,000) annually to fund the number of stations identified
32pursuant to subdivision (d), not to exceed 20 percent of the moneys
33appropriated by the Legislature from the Alternative and
34Renewable Fuel and Vehicle and Technology Fund, established
35pursuant to Section 44273, until there are at least 100 publicly
36available hydrogen fueling stations in operation in California.

end insertbegin insert

37(2) If the commission, in consultation with the state board,
38determines that the full amount identified in paragraph (1) is not
39needed to fund the number of stations identified by the state board
40pursuant to subdivision (d), the commission may allocate any
P11   1remaining moneys to other projects, subject to the requirements
2of the Alternative and Renewable Fuel and Vehicle Technology
3Program pursuant to Article 2 (commencing with Section 44272)
4of Chapter 8.9.

end insertbegin insert

5(3) Allocations by the commission pursuant to this subdivision
6shall be subject to all of the requirements applicable to allocations
7from the Alternative and Renewable Fuel and Vehicle Technology
8Program pursuant to Article 2 (commencing with Section 44272)
9of Chapter 8.9.

end insertbegin insert

10(4) The commission, in consultation with the state board, shall
11award funds allocated in paragraph (1) based on best available
12data, including information made available pursuant to subdivision
13(d), and input from relevant stakeholders, including motor vehicle
14manufacturers that have planned deployments of hydrogen-fueled
15vehicles, according to a strategy that supports the deployment of
16an effective and efficient hydrogen fueling station network in a
17way that maximizes benefits to the public while minimizing costs
18to the state.

end insertbegin delete

19(3)

end delete

20begin insert(5)end insert Notwithstanding paragraph (1), once the commission
21determines, in consultation with the state board, that the private
22sector is establishing publicly available hydrogen fueling stations
23 without the need for government support, the commission may
24cease providing funding for those stations.

begin delete

25(4)

end delete

26begin insert(6)end insert On or before December 31, 2015, and annually thereafter,
27the commission and the state board shall jointly review and report
28on progress toward establishing a hydrogen fueling network that
29provides the coverage and capacity to fuel vehicles requiring
30hydrogen fuel that are being placed into operation in the state. The
31commission and the state board shall consider the following,
32including but not limited to, the available plans of automobile
33manufacturers to deploybegin delete fuel cellend deletebegin insert hydrogen-fueledend insert vehicles in
34California and their progress toward achieving those plans, the
35rate ofbegin delete hydrogen fuel cellend delete deploymentbegin insert end insertbegin insertof hydrogen-fueled vehiclesend insert,
36the length of time required to permit and construct hydrogen fueling
37stations, the coverage and capacity of the existing hydrogen fueling
38station network, and the amount and timing of growth in the fueling
39network to ensure fuel is available to these vehicles. The review
40shall also determine the remaining cost and timing to establish a
P12   1network of 100 publicly available hydrogen fueling stations and
2whether funding from the Alternative and Renewable Fuel and
3Vehicle Technology Program remains necessary to achieve this
4goal.

begin delete

5(e)

end delete

6begin insert(f)end insert To assist in the implementation of this section and maximize
7the ability to deploy fueling infrastructure as rapidly as possible
8with the assistance of private capital, the commission may design
9grants, loan incentive programs, revolving loan programs, and
10other forms of financial assistance. The commission also may enter
11into an agreement with the Treasurer to provide financial assistance
12to further the purposes of this section.

begin delete

13(f)

end delete

14begin insert(g)end insert Funds appropriated to the commission for the purposes of
15this section shall be available for encumbrance by the commission
16for up to four years from the date of the appropriation and for
17liquidation up to four years after expiration of the deadline to
18encumber.

begin delete

19(g)

end delete

20begin insert(h)end insert Notwithstanding any other law, the state board, in
21consultation with air districts, no later than July 1, 2013, shall
22convene working groups to evaluate the policies and goals
23contained within the Carl Moyer Memorial Air Quality Standards
24Attainment Program, pursuant to Section 44280, and Assembly
25Bill 923 (Chapter 707 of the Statutes of 2004).

35

44060.5.  

(a) Beginning July 1, 2008, the smog abatement fee
36described in subdivision (d) of Section 44060 shall be increased
37by eight dollars ($8).

38(b) Revenues generated by the increase described in this section
39shall be distributed as follows:

P15   1(1) The revenues generated by four dollars ($4) shall be
2deposited in the Air Quality Improvement Fund created by Section
344274.5.

4(2) The revenues generated by four dollars ($4) shall be
5deposited in the Alternative and Renewable Fuel and Vehicle
6Technology Fund created by Section 44273.

7(c) This section shall remain in effect only until January 1, 2024,
8and as of that date is repealed, unless a later enacted statute, that
9is enacted before January 1, 2024, deletes or extends that date.

14

44225.  

A district may increase the fee established under Section
1544223 to up to six dollars ($6). A district may increase the fee only
16if the following conditions are met:

17(a) A resolution providing for both the fee increase and a
18corresponding program for expenditure of the increased fees for
19the reduction of air pollution from motor vehicles pursuant to, and
20for related planning, monitoring, enforcement, and technical studies
21necessary for the implementation of, the California Clean Air Act
22of 1988 is adopted and approved by the governing board of the
23district.

24(b) In districts with nonelected officials on their governing
25boards, the resolution shall be adopted and approved by both a
26 majority of the governing board and a majority of the board
27members who are elected officials.

28(c) An increase in fees established pursuant to this section shall
29become effective on either April 1 or October 1, as provided in
30the resolution adopted by the board pursuant to subdivision (a).

31(d) This section shall remain in effect only until January 1, 2024,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2024, deletes or extends that date.

38

44225.  

A district may increase the fee established under Section
3944223begin delete byend deletebegin insert toend insert up to four dollars ($4). A district may increase the fee
40only if the following conditions are met:

P16   1(a) A resolution providing for both the fee increase and a
2corresponding program for expenditure of the increased fees for
3the reduction of air pollution from motor vehicles pursuant to, and
4for related planning, monitoring, enforcement, and technical studies
5necessary for the implementation of, the California Clean Air Act
6of 1988 is adopted and approved by the governing board of the
7district.

8(b) In districts with nonelected officials on their governing
9boards, the resolution shall be adopted and approved by both a
10 majority of the governing board and a majority of the board
11members who are elected officials.

12(c) An increase in fees established pursuant to this section shall
13become effective on either April 1 or October 1, as provided in
14the resolution adopted by the board pursuant to subdivision (a).

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

20

44229.  

(a) After deducting all administrative costs it incurs
21through collection of fees pursuant to Section 44227, the
22Department of Motor Vehicles shall distribute the revenues to
23districts, which shall use the revenues resulting from the first four
24dollars ($4) of each fee imposed to reduce air pollution from motor
25vehicles and to carry out related planning, monitoring, enforcement,
26and technical studies necessary for implementation of the California
27Clean Air Act of 1988. Fees collected by the Department of Motor
28Vehicles pursuant to this chapter shall be distributed to districts
29based upon the amount of fees collected from motor vehicles
30registered within each district.

31(b) Notwithstanding Sections 44241 and 44243, a district shall
32use the revenues resulting from the next two dollars ($2) of each
33fee imposed pursuant to Section 44227 to implement the following
34programs that the district determines remediate air pollution harms
35created by motor vehicles on which the surcharge is imposed:

36(1) Projects eligible for grants under the Carl Moyer Memorial
37Air Quality Standards Attainment Program (Chapter 9
38(commencing with Section 44275) of Part 5).

39(2) The new purchase, retrofit, repower, or add-on equipment
40for previously unregulated agricultural sources of air pollution, as
P17   1defined in Section 39011.5, for a minimum of three years from
2the date of adoption of an applicable rule or standard, or until the
3compliance date of that rule or standard, whichever is later, if the
4state board has determined that the rule or standard complies with
5Sections 40913, 40914, and 41503.1, after which period of time,
6a new purchase, retrofit, repower, or add-on of equipment shall
7not be funded pursuant to this chapter. The districts shall follow
8any guidelines developed under subdivision (a) of Section 44287
9for awarding grants under this program.

10(3) The purchase of new, or retrofit of emissions control
11equipment for existing, schoolbuses pursuant to the
12Lower-Emission School Bus Program adopted by the state board.

13(4) An accelerated vehicle retirement or repair program that is
14adopted by the state board pursuant to authority granted hereafter
15by the Legislature by statute.

16(5) The replacement of onboard natural gas fuel tanks on
17schoolbuses owned by a school district that are 14 years or older,
18not to exceed twenty thousand dollars ($20,000) per bus, pursuant
19to the Lower-Emission School Bus Program adopted by the state
20board.

21(6) The enhancement of deteriorating natural gas fueling
22dispensers of fueling infrastructure operated by a school district
23with a one-time funding amount not to exceed five hundred dollars
24($500) per dispenser, pursuant to the Lower-Emission School Bus
25Program adopted by the state board.

26(c) The Department of Motor Vehicles may annually expend
27not more than 1 percent of the fees collected pursuant to Section
2844227 on administrative costs.

29(d) A project funded by the program shall not be used for credit
30under any state or federal emissions averaging, banking, or trading
31program. An emission reduction generated by the program shall
32not be used as marketable emission reduction credits or to offset
33any emission reduction obligation of any person or entity. Projects
34involving new engines that would otherwise generate marketable
35credits under state or federal averaging, banking, and trading
36programs shall include transfer of credits to the engine end user
37and retirement of those credits toward reducing air emissions in
38order to qualify for funding under the program. A purchase of a
39low-emission vehicle or of equipment pursuant to a corporate or
40a controlling board’s policy, but not otherwise required by law,
P18   1shall generate surplus emissions reductions and may be funded by
2the program.

3(e) This section shall remain in effect only until January 1, 2024,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2024, deletes or extends that date.

10

44229.  

(a) After deducting all administrative costs it incurs
11through collection of fees pursuant to Section 44227, the
12Department of Motor Vehicles shall distribute the revenues to
13districts which shall use the fees to reduce air pollution from motor
14vehicles and to carry out related planning, monitoring, enforcement,
15and technical studies necessary for implementation of the California
16Clean Air Act of 1988. Fees collected by the Department of Motor
17Vehicles pursuant to this chapter shall be distributed to districts
18based upon the amount of fees collected from motor vehicles
19registered within each district.

20(b) The Department of Motor Vehicles may annually expend
21not more than the following percentages of the fees collected
22 pursuant to Section 44227 on administrative costs:

23(1) During the first year after the operative date of this chapter,
24not more than 5 percent of the fees collected may be used for
25administrative costs.

26(2) During the second year after the operative date of this
27chapter, not more than 3 percent of the fees collected may be used
28for administrative costs.

29(3) During any year subsequent to the second year after the
30operative date of this chapter, not more than 1 percent of the fees
31collected may be used for administrative costs.

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

35

44270.3.  

For the purposes of this chapter, the following terms
36have the following meanings:

begin insert

37(a) “Benefit-cost score,” for the Alternative and Renewable
38Fuel and Vehicle Technology Program created pursuant to Section
3944272, means a project’s expected or potential greenhouse gas
40emissions reduction per dollar awarded by the commission to the
P19   1project from the Alternative and Renewable Fuel and Vehicle
2Technology Fund.

end insertbegin delete

3(a)

end delete

4begin insert(b)end insert “Commission” means the State Energy Resources
5Conservation and Development Commission.

begin delete

6(b)

end delete

7begin insert(c)end insert “Full fuel-cycle assessment” or “life-cycle assessment”
8means evaluating and comparing the full environmental and health
9impacts of each step in the life cycle of a fuel, including, but not
10limited to, all of the following:

11(1) Feedstock production, extraction, cultivation, transport, and
12storage, and the transportation and use of water and changes in
13land use and land cover therein.

14(2) Fuel production, manufacture, distribution, marketing,
15transport, and storage, and the transportation and use of water
16therein.

17(3) Vehicle operation, including refueling, combustion,
18conversion, permeation, and evaporation.

begin delete

19(c)

end delete

20begin insert(d)end insert “Vehicle technology” means any vehicle, boat, off-road
21equipment, or locomotive, or component thereof, including its
22engine, propulsion system, transmission, or construction materials.

begin insert

23(e) For purposes of the Air Quality Improvement Program
24created pursuant to Section 44274, the following terms have the
25following meanings:

end insertbegin insert

26(1) “Benefit-cost score” means the reasonably expected or
27potential criteria pollutant emission reductions achieved per dollar
28awarded by the board for the project.

end insertbegin insert

29(2) “Project” means a category of investments identified for
30potential funding by the board, including, but not limited to,
31competitive grants, revolving loans, loan guarantees, loans,
32vouchers, rebates, and other appropriate funding measures for
33specific vehicles, equipment, technologies, or initiatives authorized
34by Section 44274.

end insert

37

44271.  

(a) This chapter creates the Alternative and Renewable
38Fuel and Vehicle Technology Program, pursuant to Section 44272,
39to be administered by the commission, and the Air Quality
40Improvement Program, pursuant to Section 44274, to be
P20   1administered by the state board. The commission and the state
2board shall do all of the following in fulfilling their responsibilities
3pursuant to their respective programs:

4(1) Establish sustainability goals to ensure that alternative and
5renewable fuel and vehicle deployment projects, on a full fuel-cycle
6assessment basis, will not adversely impact natural resources,
7especially state and federal lands.

8(2) Establish a competitive process for the allocation of funds
9for projects funded pursuant to this chapterbegin insert, which considers,
10among other factors, the benefit-cost score, as defined in
11subdivision (a) of Section 44270.3, associated with a project for
12the Alternative and Renewable Fuel and Vehicle Technology
13Program or, as defined in paragraph (1) of subdivision (e) of
14Section 44270.3, associated with a project, as defined in paragraph
15(2) of subdivision (e) of Section 44270.3, for the Air Quality
16Improvement Programend insert.

17(3) Identify additional federal and private funding opportunities
18to augment or complement the programs created pursuant to this
19chapter.

20(4) Ensure that the results of the reductions in emissions or
21benefits can be measured and quantified.

begin insert

22(5) Ensure that those revenues derived from fees imposed on
23motor vehicles that are expended pursuant to this chapter, as
24amended by Senate Bill 11 of the 2013-14 Regular Session of the
25Legislature, are expended in compliance with Section 3 of Article
26XIX of the California Constitution, as were the revenues derived
27from fees imposed on motor vehicles pursuant to Assembly Bill
28118 (Chapter 750 of the Statutes of 2007).

end insert

29(b) The state boardbegin insert, in consultation with the commission,end insert shall
30develop and adopt guidelines for both the Alternative and
31Renewable Fuel and Vehicle Technology Program and the Air
32Quality Improvement Program to ensure that programs meet both
33of the following requirements:

34(1) Activities undertaken pursuant to the programs complement,
35and do not interfere with, efforts to achieve and maintain federal
36and state ambient air quality standards and to reduce toxic air
37contaminantbegin insert and greenhouse gasend insert emissions.

38(2) Activities undertaken pursuant to the programs maintain or
39improve upon emission reductions and air quality benefits in the
P21   1State Implementation Plan for Ozone, California Phase 2
2Reformulated Gasoline standards, and diesel fuel regulations.

3(c) For the purposes of both of the programs created by this
4chapter, eligible projects do not include those required to be
5undertaken pursuant to state or federal law, district rules or
6regulations, memoranda of understanding with a governmental
7entity, or legally binding agreements or documents. For the
8purposes of the Alternative and Renewable Fuel and Vehicle
9Technology Program, the state board shall advise the commission
10to ensure the requirements of this subdivision are met.

begin insert

11(d) Any customer incentives for light-duty vehicles, including
12rebates, shall not be greater than compensations given to
13consumers pursuant to Section 44125.

end insert

16

44272.  

(a) The Alternative and Renewable Fuel and Vehicle
17Technology Program is hereby created. The program shall be
18administered by the commission. The commission shall implement
19the program by regulation pursuant to the requirements of Chapter
203.5 (commencing with Section 11340) of Part 1 of Division 3 of
21Title 2 of the Government Code. The program shall provide, upon
22appropriation by the Legislature, competitive grants, revolving
23loans, loan guarantees, loans, or other appropriate funding
24measures, to public agencies, vehicle and technology entities,
25businesses and projects, public-private partnerships, workforce
26training partnerships and collaboratives, fleet owners, consumers,
27recreational boaters, and academic institutions to develop and
28deploy innovative technologies that transform California’s fuel
29and vehicle types to help attain the state’s climate change policies.
30The emphasis of this program shall be to develop and deploy
31technology and alternative and renewable fuels in the marketplace,
32without adopting any one preferred fuel or technology.

33(b) A project that receives more than seventy-five thousand
34dollars ($75,000) in funds from the commission shall be approved
35at a noticed public meeting of the commission and shall be
36consistent with the priorities established by the investment plan
37adopted pursuant to Section 44272.5. Under this article, the
38commission may delegate to the commission’s executive director,
39or his or her designee, the authority to approve either of the
40following:

P22   1(1) A contract, grant, loan, or other agreement or award that
2receives seventy-five thousand dollars ($75,000) or less in funds
3from the commission.

4(2) Amendments to a contract, grant, loan, or other agreement
5or award as long as the amendments do not increase the amount
6of the award, change the scope of the project, or modify the purpose
7of the agreement.

8(c) The commission shall provide preferences to those projects
9that maximize the goals of the Alternative and Renewable Fuel
10and Vehicle Technology Program, based on the following criteria,
11as applicable:

12(1) The project’s ability to provide a measurable transition from
13the nearly exclusive use of petroleum fuels to a diverse portfolio
14of viable alternative fuels that meet petroleum reduction and
15alternative fuel use goals.

16(2) The project’s consistency with existing and future state
17climate change policy and low-carbon fuel standards.

18(3) The project’s ability to reduce criteria air pollutants and air
19toxics and reduce or avoid multimedia environmental impacts.

20(4) The project’s ability to decrease, on a life-cycle basis, the
21discharge of water pollutants or any other substances known to
22damage human health or the environment, in comparison to the
23production and use of California Phase 2 Reformulated Gasoline
24or diesel fuel produced and sold pursuant to California diesel fuel
25regulations set forth in Article 2 (commencing with Section 2280)
26of Chapter 5 of Division 3 of Title 13 of the California Code of
27Regulations.

28(5) The project does not adversely impact the sustainability of
29the state’s natural resources, especially state and federal lands.

30(6) The project provides nonstate matching funds. Costs incurred
31from the date a proposed award is noticed may be counted as
32nonstate matching funds. The commission may adopt further
33requirements for the purposes of this paragraph. The commission
34is not liable for costs incurred pursuant to this paragraph if the
35commission does not give final approval for the project or the
36proposed recipient does not meet requirements adopted by the
37commission pursuant to this paragraph.

38(7) The project provides economic benefits for California by
39promoting California-based technology firms, jobs, and businesses.

P23   1(8) The project uses existing or proposed fueling infrastructure
2to maximize the outcome of the project.

3(9) The project’s ability to reduce on a life-cycle assessment
4greenhouse gas emissions by at least 10 percent, and higher
5percentages in the future, from current reformulated gasoline and
6diesel fuel standards established by the state board.

7(10) The project’s use of alternative fuel blends of at least 20
8percent, and higher blend ratios in the future, with a preference
9for projects with higher blends.

10(11) The project drives new technology advancement for
11vehicles, vessels, engines, and other equipment, and promotes the
12deployment of that technology in the marketplace.

begin insert

13(d) The commission shall rank applications for projects
14proposed for funding awards based on solicitation criteria
15developed in accordance with subdivision (c), and shall give
16additional preference to funding those projects with higher
17benefit-cost scores.

end insertbegin delete

18(d)

end delete

19begin insert(e)end insert Only the following shall be eligible for funding:

20(1) Alternative and renewable fuel projects to develop and
21improve alternative and renewable low-carbon fuels, including
22electricity, ethanol, dimethyl ether, renewable diesel, natural gas,
23hydrogen, and biomethane, among others, and their feedstocks
24that have high potential for long-term or short-term
25commercialization, including projects that lead to sustainable
26feedstocks.

27(2) Demonstration and deployment projects that optimize
28alternative and renewable fuels for existing and developing engine
29technologies.

30(3) Projects to produce alternative and renewable low-carbon
31fuels in California.

32(4) Projects to decrease the overall impact of an alternative and
33renewable fuel’s life cycle carbon footprint and increase
34sustainability.

35(5) Alternative and renewable fuel infrastructure, fueling
36stations, and equipment. The preference in paragraph (10) of
37subdivision (c) shall not apply to renewable diesel or biodiesel
38infrastructure, fueling stations, and equipment used solely for
39renewable diesel or biodiesel fuel.

P24   1(6) Projects to develop and improve light-, medium-, and
2heavy-duty vehicle technologies that provide for better fuel
3efficiency and lower greenhouse gas emissions, alternative fuel
4usage and storage, or emission reductions, including propulsion
5systems, advanced internal combustion engines with a 40 percent
6or better efficiency level over the current market standard,
7light-weight materials, intelligent transportation systems, energy
8storage, control systems and system integration, physical
9measurement and metering systems and software, development of
10design standards and testing and certification protocols, battery
11recycling and reuse, engine and fuel optimization electronic and
12electrified components, hybrid technology, plug-in hybrid
13technology, battery electric vehicle technology, fuel cell
14technology, and conversions of hybrid technology to plug-in
15technology through the installation of safety certified supplemental
16battery modules.

17(7) Programs and projects that accelerate the commercialization
18of vehicles and alternative and renewable fuels including buy-down
19programs through near-market and market-path deployments,
20advanced technology warranty or replacement insurance,
21development of market niches, supply-chain development, and
22research related to the pedestrian safety impacts of vehicle
23technologies and alternative and renewable fuels.

24(8) Programs and projects to retrofit medium- and heavy-duty
25begin delete on-roadend deletebegin insert onroadend insert and nonroad vehicle fleets with technologies that
26create higher fuel efficiencies, including alternative and renewable
27fuel vehicles and technologies, idle management technology, and
28aerodynamic retrofits that decrease fuel consumption.

29(9) Infrastructure projects that promote alternative and renewable
30fuel infrastructure development connected with existing fleets,
31public transit, and existing transportation corridors, including
32physical measurement or metering equipment and truck stop
33electrification.

34(10) Workforce training programs related to alternative and
35renewable fuel feedstock production and extraction, renewable
36fuel production, distribution, transport, and storage,
37high-performance and low-emission vehicle technology and high
38tower electronics, automotive computer systems, mass transit fleet
39conversion, servicing, and maintenance, and other sectors or
40occupations related to the purposes of this chapter.

P25   1(11) Block grants or incentive programs administered by public
2entities or not-for-profit technology entities for multiple projects,
3education and program promotion within California, and
4development of alternative and renewable fuel and vehicle
5technology centers. The commission may adopt guidelines for
6implementing the block grant or incentive program, which shall
7be approved at a noticed public meeting of the commission.

8(12) Life cycle and multimedia analyses, sustainability and
9environmental impact evaluations, and market, financial, and
10technology assessments performed by a state agency to determine
11the impacts of increasing the use of low-carbon transportation fuels
12and technologies, and to assist in the preparation of the investment
13plan and program implementation.

14(13) A program to provide funding for homeowners who
15purchase a plug-in electric vehicle to offset costs associated with
16modifying electrical sources to include a residential plug-in electric
17vehicle charging station. In establishing this program, the
18commission shall consider funding criteria to maximize the public
19benefit of the program.

begin delete

20(e)

end delete

21begin insert(f)end insert The commission may make a single source or sole source
22award pursuant to this section for applied research. The same
23requirements set forth in Section 25620.5 of the Public Resources
24Code shall apply to awards made on a single source basis or a sole
25source basis. This subdivision does not authorize the commission
26to make a single source or sole source award for a project or
27activity other than for applied research.

begin delete

28(f)

end delete

29begin insert(g)end insert The commission may do all of the following:

30(1) Contract with the Treasurer to expend funds through
31programs implemented by the Treasurer, if the expenditure is
32consistent with all of the requirements of this article and Article
331 (commencing with Section 44270).

34(2) Contract with small business financial development
35corporations established by the Business, Transportation and
36Housing Agency to expend funds through the Small Business Loan
37Guarantee Program if the expenditure is consistent with all of the
38requirements of this article and Article 1 (commencing with Section
3944270).

P26   1(3) Advance funds, pursuant to an agreement with the
2commission, to any of the following:

3(A) A public entity.

4(B) A recipient to enable it to make advance payments to a
5public entity that is a subrecipient of the funds and under a binding
6and enforceable subagreement with the recipient.

7(C) An administrator of a block grant program.

10

44273.  

(a) The Alternative and Renewable Fuel and Vehicle
11Technology Fund is hereby created in the State Treasury, to be
12administered by the commission. The moneys in the fund, upon
13appropriation by the Legislature, shall be expended by the
14commission to implement the Alternative and Renewable Fuel and
15Vehicle Technology Program in accordance with this chapter.

16(b) Notwithstanding any other provision of law, the sum of ten
17million dollars ($10,000,000) shall be transferred annually from
18the Public Interest Research, Development, and Demonstration
19Fund created by Section 384 of the Public Utilities Code to the
20Alternative and Renewable Fuel and Vehicle Technology Fund.
21Prior to the award of any funds from this source, the commission
22shall make a determination that the proposed project will provide
23benefits to electric or natural gas ratepayers based upon the
24commission’s adopted criteria.

25(c) Beginning with the integrated energy policy report adopted
26in 2011, and in the subsequent reports adopted thereafter, pursuant
27to Section 25302 of the Public Resources Code, the commission
28shall include an evaluation of research, development, and
29deployment efforts funded by this chapter. The evaluation shall
30include all of the following:

31(1) A list of projects funded by the Alternative and Renewable
32Fuel and Vehicle Technology Fund.

33(2) The expected benefits of the projects in terms of air quality,
34petroleum use reduction, greenhouse gas emissions reduction,
35technology advancement,begin insert benefit-cost assessment,end insert and progress
36towards achieving these benefits.

37(3) The overall contribution of the funded projects toward
38promoting a transition to a diverse portfolio of clean, alternative
39transportation fuels and reduced petroleum dependency in
40California.

P27   1(4) Key obstacles and challenges to meeting these goals
2identified through funded projects.

3(5) Recommendations for future actions.

6

44274.  

(a) The Air Quality Improvement Program is hereby
7created. The program shall be administered by the state board, in
8consultation with the districts. The state board shall develop
9guidelines to implement the program. Prior to the adoption of the
10guidelines, the state board shall hold at least one public hearing.
11In addition, the state board shall hold at least three public
12workshops with at least one workshop in northern California, one
13in the central valley, and one in southern California. The purpose
14of the program shall be to fund, upon appropriation by the
15Legislature, air quality improvement projects relating to fuel and
16vehicle technologies. The primary purpose of the program shall
17be to fund projects to reduce criteria air pollutants, improve air
18quality, and provide funding for research to determine and improve
19the air quality impacts of alternative transportation fuels and
20vehicles, vessels, and equipment technologies.

begin delete

21(b) Projects proposed for funding pursuant to subdivision (a)
22shall be evaluated based on their proposed or potential reduction
23of criteria or toxic air pollutants, cost-effectiveness, contribution
24to regional air quality improvement, and ability to promote the use
25of clean alternative fuels and vehicle technologies as determined
26by the state board, in coordination with the commission.

end deletebegin insert

27(b) The state board shall provide preference in awarding funding
28to those projects with higher benefit-cost scores that maximize the
29purposes and goals of the Air Quality Improvement Program. The
30state board may also give additional preference based on the
31following criteria, as applicable, in funding awards to projects:

end insertbegin insert

32(1) Proposed or potential reduction of criteria or toxic air
33pollutants.

end insertbegin insert

34(2) Contribution to regional air quality improvement.

end insertbegin insert

35(3) Ability to promote the use of clean alternative fuels and
36vehicle technologies as determined by the state board, in
37coordination with the commission.

end insertbegin insert

38(4) Ability to achieve climate change benefits in addition to
39criteria pollutant or air toxic emission reductions.

end insertbegin insert

P28   1(5) Ability to support market transformation of California’s
2vehicle or equipment fleet to utilize low carbon or zero-emission
3technologies.

end insertbegin insert

4(6) Ability to leverage private capital investments.

end insert

5(c) The program shall be limited to competitive grants, revolving
6loans, loan guarantees, loans, and other appropriate funding
7measures that further the purposes of the program. Projects to be
8funded shall include only the following:

9(1) On- and off-road equipment projects that are cost effective.

10(2) Projects that provide mitigation for off-road gasoline exhaust
11and evaporative emissions.

12(3) Projects that provide research to determine the air quality
13impacts of alternative fuels and projects that study the life-cycle
14impacts of alternative fuels and conventional fuels, the emissions
15of biofuel and advanced reformulated gasoline blends, and air
16pollution improvements and control technologies for use with
17alternative fuels and vehicles.

18(4) Projects that augment the University of California’s
19agricultural experiment station and cooperative extension programs
20for research to increase sustainable biofuels production and
21improve the collection of biomass feedstock.

22(5) Incentives for small off-road equipment replacement to
23encourage consumers to replace internal combustion engine lawn
24and garden equipment.

25(6) Incentives for medium- and heavy-duty vehicles and
26equipment mitigation, including all of the following:

27(A) Lower emission schoolbus programs.

28(B) Electric, hybrid, and plug-in hybrid on- and off-road
29medium- and heavy-duty equipment.

30(C) Regional air quality improvement and attainment programs
31implemented by the state or districts in the most impacted regions
32of the state.

33(7) Workforce training initiatives related to advanced energy
34technology designed to reduce air pollution, including
35state-of-the-art equipment and goods, and new processes and
36systems. Workforce training initiatives funded shall be broad-based
37partnerships that leverage other public and private job training
38programs and resources. These partnerships may include, though
39are not limited to, employers, labor unions, labor-management
40partnerships, community organizations, workforce investment
P29   1boards, postsecondary education providers including community
2colleges, and economic development agencies.

3(8) Incentives to identify and reduce emissions from high
4emitting light-duty vehicles.

5(d) (1) Beginning January 1, 2011, the state board shall submit
6to the Legislature a biennial report to evaluate the implementation
7of the Air Quality Improvement Program established pursuant to
8this chapter.

9(2) The report shall include all of the following:

10(A) A list of projects funded by the Air Quality Improvement
11Account.

12(B) The expected benefits of the projects in promoting clean,
13alternative fuels and vehicle technologies.

14(C) Improvement in air quality and public health, greenhouse
15gas emissions reductions, and the progress made toward achieving
16these benefits.

17(D) The impact of the projects in making progress toward
18attainment of state and federal air quality standards.

19(E) Recommendations for future actions.

20(3) The state board may include the information required to be
21reported pursuant to paragraph (1) in an existing report to the
22Legislature as the state board deems appropriate.

27

44275.  

(a) As used in this chapter, the following terms have
28the following meanings:

29(1) “Advisory board” means the Carl Moyer Program Advisory
30Board created by Section 44297.

31(2) “Btu” means British thermal unit.

32(3) “Commission” means the State Energy Resources
33Conservation and Development Commission.

34(4) “Cost-effectiveness” means dollars provided to a project
35pursuant to subdivision (d) of Section 44283 for each ton of
36covered emission reduction attributed to a project or to the program
37as a whole. In calculating cost-effectiveness, one-time grants of
38funds made at the beginning of a project shall be annualized using
39a time value of public funds or discount rate determined for each
40project by the state board, taking into account the interest rate on
P30   1bonds, interest earned by state funds, and other factors as
2determined appropriate by the state board. Cost-effectiveness shall
3be calculated by dividing annualized costs by average annual
4emissions reduction. The state board, in consultation with the
5districts and concerned members of the public, shall establish
6appropriate cost-effective limits for oxides of nitrogen, particulate
7matter, and reactive organic gases and a reasonable system for
8comparing the cost-effectiveness of proposed projects as described
9in subdivision (a) of Section 44283.

10(5) “Covered emissions” include emissions of oxides of nitrogen,
11particulate matter, and reactive organic gases from any covered
12source.

13(6) “Covered engine” includes any internal combustion engine
14or electric motor and drive powering a covered source.

15(7) “Covered source” includes onroad vehicles, off-road
16nonrecreational equipment and vehicles, locomotives, diesel marine
17vessels, agricultural sources of air pollution, as defined in Section
1839011.5, and, as determined by the state board, other high-emitting
19engine categories.

20(8) “Covered vehicle” includes any vehicle or piece of
21equipment powered by a covered engine.

22(9) “District” means a county air pollution control district or an
23air quality management district.

24(10) “Fund” means the Carl Moyer Memorial Air Quality
25Standards Attainment Trust Fund created by Section 44299.

26(11) “Mobile Source Air Pollution Reduction Review
27Committee” means the Mobile Source Air Pollution Reduction
28Review Committee created by Section 44244.

29(12) “Incremental cost” means the cost of the project less a
30baseline cost that would otherwise be incurred by the applicant in
31the normal course of business. Incremental costs may include
32added lease or fuel costs pursuant to Section 44283 as well as
33incremental capital costs.

34(13) “New very low emission vehicle” means a heavy-duty
35vehicle that qualifies as a very low emission vehicle when it is a
36new vehicle, where new vehicle has the same meaning as defined
37in Section 430 of the Vehicle Code, or that is modified with the
38approval and warranty of the original equipment manufacturer to
39qualify as a very low emission vehicle within 12 months of delivery
40to an owner for private or commercial use.

P31   1(14) “NO_x” means oxides of nitrogen.

2(15) “Program” means the Carl Moyer Memorial Air Quality
3Standards Attainment Program created by subdivision (a) of
4Section 44280.

5(16) “Repower” means replacing an engine with a different
6engine. The term repower, as used in this chapter, generally refers
7to replacing an older, uncontrolled engine with a new,
8emissions-certified engine, although replacing an older
9emissions-certified engine with a newer engine certified to lower
10emissions standards may be eligible for funding under this program.

11(17) “Retrofit” means making modifications to the engine and
12fuel system such that the retrofitted engine does not have the same
13specifications as the original engine.

14(18) “Very low emission vehicle” means a heavy-duty vehicle
15with emissions significantly lower than otherwise applicable
16baseline emission standards or uncontrolled emission levels
17pursuant to Section 44282.

18(b) This section shall remain in effect only until January 1, 2024,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before January 1, 2024, deletes or extends that date.

25

44275.  

(a) As used in this chapter, the following terms have
26the following meanings:

27(1) “Advisory board” means the Carl Moyer Program Advisory
28Board created by Section 44297.

29(2) “Btu” means British thermal unit.

30(3) “Commission” means the State Energy Resources
31Conservation and Development Commission.

32(4) “Cost-effectiveness” means dollars provided to a project
33pursuant to subdivision (d) of Section 44283 for each ton of NO_x
34 reduction attributed to a project or to the program as a whole. In
35calculating cost-effectiveness, one-time grants of funds made at
36the beginning of a project shall be annualized using a time value
37of public funds or discount rate determined for each project by the
38state board, taking into account the interest rate on bonds, interest
39earned by state funds, and other factors as determined appropriate
40by the state board. Cost-effectiveness shall be calculated by
P32   1dividing annualized costs by average annual emissions reduction
2of NO_x in this state.

3(5) “Covered engine” includes any internal combustion engine
4or electric motor and drive powering a covered source.

5(6) “Covered source” includes onroad vehicles of 14,000 pounds
6gross vehicle weight rating (GVWR) or greater, off-road
7nonrecreational equipment and vehicles, locomotives, diesel marine
8vessels, stationary agricultural engines, and, as determined by the
9state board, other high-emitting diesel engine categories.

10(7) “Covered vehicle” includes any vehicle or piece of
11equipment powered by a covered engine.

12(8) “District” means a county air pollution control district or an
13air quality management district.

14(9) “Fund” means the Carl Moyer Memorial Air Quality
15Standards Attainment Trust Fund created by Section 44299.

16(10) “Mobile Source Air Pollution Reduction Review
17Committee” means the Mobile Source Air Pollution Reduction
18Review Committee created by Section 44244.

19(11) “Incremental cost” means the cost of the project less a
20baseline cost that would otherwise be incurred by the applicant in
21the normal course of business. Incremental costs may include
22added lease or fuel costs pursuant to Section 44283 as well as
23incremental capital costs.

24(12) “New very low emission vehicle” means a vehicle that
25qualifies as a very low emission vehicle when it is a new vehicle,
26where new vehicle has the same meaning as defined in Section
27430 of the Vehicle Code, or that is modified with the approval and
28warranty of the original equipment manufacturer to qualify as a
29very low emission vehicle within 12 months of delivery to an
30owner for private or commercial use.

31(13) “NO_x” means oxides of nitrogen.

32(14) “Program” means the Carl Moyer Memorial Air Quality
33Standards Attainment Program created by subdivision (a) of
34Section 44280.

35(15) “Repower” means replacing an engine with a different
36engine. The term repower, as used in this chapter, generally refers
37to replacing an older, uncontrolled engine with a new,
38emissions-certified engine, although replacing an older
39emissions-certified engine with a newer engine certified to lower
40emissions standards may be eligible for funding under this program.

P33   1(16) “Retrofit” means making modifications to the engine and
2fuel system such that the retrofitted engine does not have the same
3specifications as the original engine.

4(17) “Very low emission vehicle” means a vehicle with
5emissions significantly lower than otherwise applicable baseline
6emission standards or uncontrolled emission levels pursuant to
7Section 44282.

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

13

44280.  

(a) There is hereby created the Carl Moyer Memorial
14Air Quality Standards Attainment Program. The program shall be
15administered by the state board in accordance with this chapter.
16The administration of the program may be delegated to the districts.

17(b) The program shall provide grants to offset the incremental
18cost of projects that reduce covered emissions from covered sources
19in California. Eligibility for grant awards shall be determined by
20the state board, in consultation with the districts, in accordance
21with this chapter.

22(c) The program shall also provide funding for a fueling
23infrastructure demonstration program and for technology
24development efforts that are expected to result in commercially
25available technologies in the near term that would improve the
26ability of the program to achieve its goals. The infrastructure
27demonstration and technology development portions of the program
28shall be managed by the commission, in consultation with the state
29board.

30(d) This section shall remain in effect only until January 1, 2024,
31and as of that date is repealed, unless a later enacted statute, that
32is enacted before January 1, 2024, deletes or extends that date.

37

44280.  

(a) There is hereby created the Carl Moyer Memorial
38Air Quality Standards Attainment Program. The program shall be
39administered by the state board in accordance with this chapter.
40The administration of the program may be delegated to the districts.

P34   1(b) The program shall provide grants to offset the incremental
2cost of projects that reduce emissions of NO_x from covered sources
3in California. Eligibility for grant awards shall be determined by
4the state board, in consultation with the districts, in accordance
5with this chapter.

6(c) The program shall also provide funding for a fueling
7infrastructure demonstration program and for technology
8development efforts that are expected to result in commercially
9available technologies in the near term that would improve the
10ability of the program to achieve its goals. The infrastructure
11demonstration and technology development portions of the program
12shall be managed by the commission, in consultation with the state
13board.

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

19

44281.  

(a) Eligible projects include, but are not limited to, any
20of the following:

21(1) Purchase of new very low or zero-emission covered vehicles
22or covered heavy-duty engines.

23(2) Emission-reducing retrofit of covered engines, or
24replacement of old engines powering covered sources with newer
25engines certified to more stringent emissions standards than the
26engine being replaced, or with electric motors or drives.

27(3) Purchase and use of emission-reducing add-on equipment
28that has been verified by the state board for covered vehicles.

29(4) Development and demonstration of practical, low-emission
30retrofit technologies, repower options, and advanced technologies
31for covered engines and vehicles with very low emissions of oxides
32of nitrogen.

33(5) Light- and medium-duty vehicle projects in compliance with
34guidelines adopted by the state board pursuant to Title 13 of the
35California Code of Regulations.

36(b) No project shall be funded under this chapter after the
37compliance date required by any local, state, or federal statute,
38rule, regulation, memoranda of agreement or understanding, or
39other legally binding document, except that an otherwise qualified
40project may be funded even if the state implementation plan
P35   1assumes that the change in equipment, vehicles, or operations will
2occur, if the change is not required by the compliance date of a
3statute, regulation, or other legally binding document in effect as
4of the date the grant is awarded. No project funded by the program
5shall be used for credit under any state or federal emissions
6averaging, banking, or trading program. No emission reduction
7generated by the program shall be used as marketable emission
8reduction credits or to offset any emission reduction obligation of
9any person or entity. Projects involving new engines that would
10otherwise generate marketable credits under state or federal
11averaging, banking, and trading programs shall include transfer
12of credits to the engine end user and retirement of those credits
13toward reducing air emissions in order to qualify for funding under
14the program. A purchase of a low-emission vehicle or of equipment
15pursuant to a corporate or a controlling board’s policy, but not
16otherwise required by law, shall generate surplus emissions
17reductions and may be funded by the program.

18(c) The program may also provide funding toward installation
19of fueling or electrification infrastructure as provided in Section
2044284.

21(d) Eligible applicants may be any individual, company, or
22public agency that owns one or more covered vehicles that operate
23primarily within California or otherwise contribute substantially
24to the NO_x, PM, or ROG emissions inventory in California.

25(e) It is the intent of the Legislature that all emission reductions
26generated by this chapter shall contribute to public health by
27reducing, for the life of the vehicle being funded, the total amount
28of emissions in California.

29(f) This section shall remain in effect only until January 1, 2024,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2024, deletes or extends that date.

36

44281.  

(a) Eligible projects are any of the following:

37(1) Purchase of new very low or zero-emission covered vehicles
38or covered engines.

39(2) Emission-reducing retrofit of covered engines, or
40replacement of old engines powering covered sources with newer
P36   1engines certified to more stringent emissions standards than the
2engine being replaced, or with electric motors or drives.

3(3) Purchase and use of emission-reducing add-on equipment
4for covered vehicles.

5(4) Development and demonstration of practical, low-emission
6retrofit technologies, repower options, and advanced technologies
7for covered engines and vehicles with very low emissions of oxides
8of nitrogen.

9(b) No new purchase, retrofit, repower, or add-on equipment
10shall be funded under this chapter if it is required by any local,
11state, or federal statute, rule, regulation, memoranda of agreement
12or understanding, or other legally binding document, except that
13an otherwise qualified project may be funded even if the state
14implementation plan assumes that the change in equipment,
15vehicles, or operations will occur, if the change is not required by
16a statute, regulation, or other legally binding document in effect
17as of the date the grant is awarded. No project funded by the
18program shall be used for credit under any state or federal
19emissions averaging, banking, or trading program. No emission
20reduction generated by the program shall be used as marketable
21emission reduction credits or to offset any emission reduction
22 obligation of any entity. Projects involving new engines that would
23otherwise generate marketable credits under state or federal
24averaging, banking, and trading programs shall include transfer
25of credits to the engine end user and retirement of those credits
26toward reducing air emissions in order to qualify for funding under
27the program. A purchase of a low-emission vehicle or of equipment
28pursuant to a corporate or a controlling board’s policy, but not
29otherwise required by law, shall generate surplus emissions
30reductions and may be funded by the program.

31(c) The program may also provide funding toward installation
32of fueling or electrification infrastructure as provided in Section
3344284.

34(d) Eligible applicants may be any individual, company, or
35public agency that owns one or more covered vehicles that operate
36primarily within California or otherwise contribute substantially
37to the NO_x emissions inventory in California.

38(e) It is the intent of the Legislature that all emission reductions
39generated by this chapter shall contribute to public health by
P37   1reducing, for the life of the vehicle being funded, the total amount
2of emissions in California.

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

8

44282.  

The following criteria apply to all projects to be funded
9through the program except for projects funded through the
10Advanced Technology Account and the Infrastructure
11Demonstration Program:

12(a)  The state board may establish project criteria, including
13minimum project life for source categories, in the guidelines
14described in Section 44287. For previously unregulated source
15categories, project criteria shall consider the timing of newly
16established regulatory requirements.

17(b) To be eligible, projects shall meet the cost-effectiveness per
18ton of covered emissions reduced requirements of Section 44283.

19(c) To be eligible, retrofits, repowers, and installation of add-on
20equipment for covered vehicles shall be performed, or new covered
21vehicles delivered to the end user, or covered vehicles scrapped
22on or after the date the program is implemented.

23(d) Retrofit technologies, new engines, and new vehicles shall
24be certified for sale or under experimental permit for operation in
25California.

26(e) Repower projects that replace older, uncontrolled engines
27with new, emissions-certified engines or that replace
28emissions-certified engines with new engines certified to a more
29stringent NO_x emissions standard are approvable subject to the
30other applicable selection criteria. The state board shall determine
31appropriate baseline emission levels for the uncontrolled engines
32being replaced.

33(f) For heavy-duty-vehicle projects, retrofit and add-on
34equipment projects shall document a NO_x or PM emission
35reduction of at least 25 percent and no increase in other covered
36emissions compared to the applicable baseline emissions accepted
37by the state board for that engine year and application. The state
38board shall determine appropriate baseline emission levels.
39Acceptable documentation shall be defined by the state board.
40After study of available emission reduction technologies and after
P38   1public notice and comment, the state board may revise the
2minimum percentage emission reduction criterion for retrofits and
3add-on equipment provided for in this section to improve the ability
4of the program to achieve its goals.

5(g) (1) For heavy-duty-vehicle projects involving the purchase
6of new very low or zero-emission vehicles, engines shall be
7certified to an optional low NO_x emissions standard established
8by the state board, except as provided for in paragraph (2).

9(2) For heavy-duty-vehicle projects involving the purchase of
10new very low or zero-emission covered vehicles for which no
11optional low NO_x emission standards are available, documentation
12shall be provided showing that the low or zero-emission engine
13emits not more than 70 percent of the NO_x or NO_x plus
14hydrocarbon emissions of a new engine certified to the applicable
15baseline NO_x or NO_x plus hydrocarbon emission standard for that
16engine and meets applicable particulate standards. The state board
17shall specify the documentation required. If no baseline emission
18standard exists for new vehicles in a particular category, the state
19board shall determine an appropriate baseline emission level for
20comparison.

21(h) For projects other than heavy-duty-vehicle projects, the state
22board shall determine appropriate criteria under the provisions of
23Section 44287.

24(i) This section shall remain in effect only until January 1, 2024,
25and as of that date is repealed, unless a later enacted statute, that
26is enacted before January 1, 2024, deletes or extends that date.

31

44282.  

The following criteria apply to all projects to be funded
32through the program except for projects funded through the
33Advanced Technology Account and the Infrastructure
34Demonstration Program:

35(a) Except for projects involving marine vessels, 75 percent or
36more of vehicle miles traveled or hours of operation shall be
37projected to be in California for at least five years following the
38grant award. Projects involving marine vessels and engines shall
39be limited to those that spend enough time operating in California
40air basins over the lifetime of the project to meet the
P39   1cost-effectiveness criteria based on NO_x reductions in California,
2as provided in Section 44283.

3(b) To be eligible, projects shall meet cost-effectiveness per ton
4of NO_x reduced requirements of Section 44283.

5(c) To be eligible, retrofits, repowers, and installation of add-on
6equipment for covered vehicles shall be performed, or new covered
7vehicles delivered to the end user, on or after the date the program
8is implemented.

9(d) Retrofit technologies, new engines, and new vehicles shall
10be certified for sale or under experimental permit for operation in
11California.

12(e) Repower projects that replace older, uncontrolled engines
13with new, emissions-certified engines or that replace
14emissions-certified engines with new engines certified to a more
15stringent NO_x emissions standard are approvable subject to the
16other applicable selection criteria. The state board shall determine
17appropriate baseline emission levels for the uncontrolled engines
18being replaced.

19(f) Retrofit and add-on equipment projects shall document a
20NO_x emission reduction of at least 25 percent and no increase in
21particulate emissions compared to the applicable baseline emissions
22accepted by the state board for that engine year and application.
23The state board shall determine appropriate baseline emission
24levels. Acceptable documentation shall be defined by the state
25board. After study of available emission reduction technologies
26and after public notice and comment, the state board may revise
27the minimum percentage NO_x reduction criterion for retrofits and
28add-on equipment provided for in this section to improve the ability
29of the program to achieve its goals.

30(g) (1) For projects involving the purchase of new very low or
31zero-emission vehicles, engines shall be certified to an optional
32low NO_x emissions standard established by the state board, except
33as provided for in paragraph (2).

34(2) For projects involving the purchase of new very low or
35zero-emission covered vehicles for which no optional low NO_x
36 emission standards are available, documentation shall be provided
37showing that the low or zero-emission engine emits not more than
3870 percent of the NO_x or NO_x plus hydrocarbon emissions of a
39new engine certified to the applicable baseline NO_x or NO_x plus
40hydrocarbon emission standard for that engine and meets applicable
P40   1particulate standards. The state board shall specify the
2documentation required. If no baseline emission standard exists
3for new vehicles in a particular category, the state board shall
4determine an appropriate baseline emission level for comparison.

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

10

44283.  

(a) Grants shall not be made for projects with a
11cost-effectiveness, calculated in accordance with this section, of
12more than thirteen thousand six hundred dollars ($13,600) per ton
13of NO_x reduced in California or a higher value that reflects state
14consumer price index adjustments on or after January 1, 2006, as
15determined by the state board. For projects obtaining reactive
16organic gas and particulate matter reductions, the state board shall
17determine appropriate adjustment factors to calculate a weighted
18cost-effectiveness.

19(b) Only covered emission reductions occurring in this state
20shall be included in the cost-effectiveness determination. The
21extent to which emissions generated at sea contribute to air quality
22in California nonattainment areas shall be incorporated into these
23methodologies based on a reasonable assessment of currently
24available information and modeling assumptions.

25(c) The state board shall develop protocols for calculating the
26surplus covered emission reductions in California from
27representative project types over the life of the project.

28(d) The cost of the covered emission reduction is the amount
29of the grant from the program, including matching funds provided
30pursuant to subdivision (e) of Section 44287, plus any other state
31funds, or funds under the district’s budget authority or fiduciary
32control, provided toward the project, not including funds described
33in paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
34 The state board shall establish reasonable methodologies for
35evaluating project cost-effectiveness, consistent with the definition
36contained in paragraph (4) of subdivision (a) of Section 44275,
37and with accepted methods, taking into account a fair and
38reasonable discount rate or time value of public funds.

39(e) A grant shall not be made that, net of taxes, provides the
40applicant with funds in excess of the incremental cost of the project.
P41   1Incremental lease costs may be capitalized according to guidelines
2adopted by the state board so that these incremental costs may be
3offset by a one-time grant award.

4(f) Funds under a district’s budget authority or fiduciary control
5may be used to pay for the incremental cost of liquid or gaseous
6fuel, other than standard gasoline or diesel, which is integral to a
7covered emission reducing technology that is part of a project
8receiving grant funding under the program. The fuel shall be
9approved for sale by the state board. The incremental fuel cost
10over the expected lifetime of the vehicle may be offset by the
11district if the project as a whole, including the incremental fuel
12cost, meets all of the requirements of this chapter, including the
13maximum allowed cost-effectiveness. The state board shall develop
14an appropriate methodology for converting incremental fuel costs
15over the vehicle lifetime into an initial cost for the purposes of
16determining project cost-effectiveness. Incremental fuel costs shall
17not be included in project costs for fuels dispensed from any facility
18that was funded, in whole or in part, from the fund.

19(g) For purposes of determining any grant amount pursuant to
20this chapter, the incremental cost of any new purchase, retrofit,
21repower, or add-on equipment shall be reduced by the value of
22any current financial incentive that directly reduces the project
23price, including any tax credits or deductions, grants, or other
24public financial assistance, not including funds described in
25paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
26 Project proponents applying for funding shall be required to state
27in their application any other public financial assistance to the
28project.

29(h) For projects that would repower off-road equipment by
30replacing uncontrolled diesel engines with new, certified diesel
31engines, the state board may establish maximum grant award
32amounts per repower. A repower project shall also be subject to
33the incremental cost maximum pursuant to subdivision (e).

34(i) After study of available emission reduction technologies and
35costs and after public notice and comment, the state board may
36reduce the values of the maximum grant award criteria stated in
37this section to improve the ability of the program to achieve its
38goals. Every year the state board shall adjust the maximum
39cost-effectiveness amount established in subdivision (a) and any
P42   1per-project maximum set by the state board pursuant to subdivision
2(h) to account for inflation.

3(j) This section shall remain in effect only until January 1, 2024,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2024, deletes or extends that date.

10

44283.  

(a) Grants shall not be made for projects with a
11cost-effectiveness, calculated in accordance with this section, of
12more than twelve thousand dollars ($12,000) per ton of NO_x
13 reduced in California or a higher value that reflects state consumer
14price index adjustments on or after January 1, 2024, as determined
15by the state board.

16(b) Only NO_x reductions occurring in this state shall be included
17in the cost-effectiveness determination. The extent to which
18emissions generated at sea contribute to air quality in California
19nonattainment areas shall be incorporated into these methodologies
20based on a reasonable assessment of currently available information
21and modeling assumptions.

22(c) The state board shall develop protocols for calculating the
23surplus NO_x reductions in California from representative project
24types over the life of the project.

25(d) The cost of the NO_x reduction is the amount of the grant
26from the program, including matching funds provided pursuant to
27subdivision (e) of Section 44287, plus any other state funds, or
28funds under the district’s budget authority or fiduciary control,
29provided toward the project, not including funds described in
30paragraphs (1) and (2) of subdivision (a) of Section 44287.2. The
31state board shall establish reasonable methodologies for evaluating
32project cost-effectiveness, consistent with the definition contained
33in paragraph (4) of subdivision (a) of Section 44275, and with
34accepted methods, taking into account a fair and reasonable
35discount rate or time value of public funds.

36(e) A grant shall not be made that, net of taxes, provides the
37applicant with funds in excess of the incremental cost of the project.
38Incremental lease costs may be capitalized according to guidelines
39adopted by the state board so that these incremental costs may be
40offset by a one-time grant award.

P43   1(f) Funds under a district’s budget authority or fiduciary control
2may be used to pay for the incremental cost of liquid or gaseous
3fuel, other than standard gasoline or diesel, which is integral to a
4NO_x reducing technology that is part of a project receiving grant
5funding under the program. The fuel shall be approved for sale by
6the state board. The incremental fuel cost over the expected lifetime
7of the vehicle may be offset by the district if the project as a whole,
8including the incremental fuel cost, meets all of the requirements
9of this chapter, including the maximum allowed cost-effectiveness.
10The state board shall develop an appropriate methodology for
11converting incremental fuel costs over the vehicle lifetime into an
12initial cost for the purposes of determining project
13cost-effectiveness. Incremental fuel costs shall not be included in
14project costs for fuels dispensed from any facility that was funded,
15in whole or in part, from the fund.

16(g) For purposes of determining any grant amount pursuant to
17this chapter, the incremental cost of any new purchase, retrofit,
18repower, or add-on equipment shall be reduced by the value of
19any current financial incentive that directly reduces the project
20price, including any tax credits or deductions, grants, or other
21public financial assistance, not including funds described in
22paragraphs (1) and (2) of subdivision (a) of Section 44287.2.
23Project proponents applying for funding shall be required to state
24in their application any other public financial assistance to the
25project.

26(h) For projects that would repower off-road equipment by
27replacing uncontrolled diesel engines with new, certified diesel
28engines, the state board may establish maximum grant award
29amounts per repower. A repower project shall also be subject to
30the incremental cost maximum pursuant to subdivision (e).

31(i) After study of available emission reduction technologies and
32costs and after public notice and comment, the state board may
33reduce the values of the maximum grant award criteria stated in
34this section to improve the ability of the program to achieve its
35goals. Every year the state board shall adjust the maximum
36cost-effectiveness amount established in subdivision (a) and any
37per-project maximum set by the state board pursuant to subdivision
38(h) to account for inflation.

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

5

44287.  

(a) The state board shall establish or update grant
6criteria and guidelines consistent with this chapter for covered
7vehicle projects as soon as practicable, but not later than January
81, 2006. The adoption of guidelines is exempt from the rulemaking
9provisions of the Administrative Procedure Act, Chapter 3.5
10(commencing with Section 11340) of Part 1 of Division 3 of Title
112 of the Government Code. The state board shall solicit input and
12comment from the districts during the development of the criteria
13and guidelines and shall make every effort to develop criteria and
14guidelines that are compatible with existing district programs that
15are also consistent with this chapter. Guidelines shall include
16protocols to calculate project cost-effectiveness. The grant criteria
17and guidelines shall include safeguards to ensure that the project
18generates surplus emissions reductions. Guidelines shall enable
19and encourage districts to cofund projects that provide emissions
20reductions in more than one district. The state board shall make
21draft criteria and guidelines available to the public 45 days before
22final adoption, and shall hold at least one public meeting to
23consider public comments before final adoption. The state board
24may develop separate guidelines and criteria for the different types
25of eligible projects described in subdivision (a) of Section 44281.

26(b) The state board, in consultation with the participating
27districts, may propose revisions to the criteria and guidelines
28established pursuant to subdivision (a) as necessary to improve
29the ability of the program to achieve its goals. A proposed revision
30shall be made available to the public 45 days before final adoption
31of the revision and the state board shall hold at least one public
32meeting to consider public comments before final adoption of the
33revision.

34(c) The state board shall reserve funds for, and disburse funds
35to, districts from the fund for administration pursuant to this section
36and Section 44299.1.

37(d) The state board shall develop guidelines for a district to
38follow in applying for the reservation of funds, in accordance with
39this chapter. It is the intent of the Legislature that district
40administration of any reserved funds be in accordance with the
P45   1project selection criteria specified in Sections 44281, 44282, and
244283 and all other provisions of this chapter. The guidelines shall
3be established and published by the state board as soon as
4practicable, but not later than January 1, 2006.

5(e) Funds shall be reserved by the state board for administration
6by a district that adopts an eligible program pursuant to this chapter
7and offers matching funds at a ratio of one dollar ($1) of matching
8funds committed by the district or the Mobile Source Air Pollution
9Reduction Review Committee for every two dollars ($2) committed
10from the fund. Funds available to the Mobile Source Air Pollution
11Reduction Review Committee may be counted as matching funds
12for projects in the South Coast Air Basin only if the committee
13approves the use of these funds for matching purposes. Matching
14funds may be any funds under the district’s budget authority that
15are committed to be expended in accordance with the program.
16Funds committed by a port authority or a local government, in
17cooperation with a district, to be expended in accordance with the
18program may also be counted as district matching funds. Matching
19funds provided by a port authority or a local government may not
20exceed 30 percent of the total required matching funds in any
21district that applies for more than three hundred thousand dollars
22 ($300,000) of the state board funds. Only a district, or a port
23authority or a local government teamed with a district, may provide
24matching funds.

25(f) The state board may adjust the ratio of matching funds
26described in subdivision (e), if it determines that an adjustment is
27necessary in order to maximize the use of, or the air quality benefits
28provided by, the program, based on a consideration of the financial
29resources of the district.

30(g) Notwithstanding subdivision (e), a district need not provide
31matching funds for state board funds allocated to the district for
32program outreach activities pursuant to paragraph (4) of subdivision
33(a) of Section 44299.1.

34(h) A district may include within its matching funds a reasonable
35estimate of direct or in-kind costs for assistance in providing
36program outreach and application evaluation. In-kind and direct
37matching funds shall not exceed 15 percent of the total matching
38funds offered by a district. A district may also include within its
39matching funds any money spent on or after February 25, 1999,
P46   1that would have qualified as matching funds but were not
2previously claimed as matching funds.

3(i) A district desiring a reservation of funds shall apply to the
4state board following the application guidelines established
5pursuant to this section. The state board shall approve or disapprove
6a district application not later than 60 days after receipt. Upon
7approval of any district application, the state board shall
8simultaneously approve a reservation of funding for that district
9to administer. Reserved funds shall be disbursed to the district so
10that funding of a district-approved project is not impeded.

11(j) Notwithstanding any other provision of this chapter, districts
12and the Mobile Source Air Pollution Reduction Review Committee
13shall not use funds collected pursuant to Section 41081 or Chapter
147 (commencing with Section 44220), or pursuant to Section
159250.11 of the Vehicle Code, as matching funds to fund a project
16with stationary or portable engines, locomotives, or marine vessels.

17(k) Any funds reserved for a district pursuant to this section are
18available to the district for a period of not more than two years
19from the time of reservation. Funds not expended by June 30 of
20the second calendar year following the date of the reservation shall
21revert back to the state board as of that June 30, and shall be
22deposited in the Covered Vehicle Account established pursuant to
23Section 44299. The funds may then be redirected based on
24applications to the fund. Regardless of any reversion of funds back
25to the state board, the district may continue to request other
26reservations of funds for local administration. Each reservation of
27funds shall be accounted for separately, and unused funds from
28each application shall revert back to the state board as specified
29in this subdivision.

30(l) The state board shall specify a date each year when district
31applications are due. If the eligible applications received in any
32year oversubscribe the available funds, the state board shall reserve
33funds on an allocation basis, pursuant to Section 44299.2. The
34state board may accept a district application after the due date for
35a period of months specified by the state board. Funds may be
36reserved in response to those applications, in accordance with this
37chapter, out of funds remaining after the original reservation of
38funds for the year.

39(m) Guidelines for a district application shall require information
40from an applicant district to the extent necessary to meet the
P47   1requirements of this chapter, but shall otherwise minimize the
2information required of a district.

3(n) A district application shall be reviewed by the state board
4immediately upon receipt. If the state board determines that an
5application is incomplete, the applicant shall be notified within 10
6working days with an explanation of what is missing from the
7application. A completed application fulfilling the criteria shall be
8approved as soon as practicable, but not later than 60 working days
9after receipt.

10(o) The commission, in consultation with the districts, shall
11establish project approval criteria and guidelines for infrastructure
12projects consistent with Section 44284 as soon as practicable, but
13not later than February 15, 2000. The commission shall make draft
14criteria and guidelines available to the public 45 days before final
15adoption, and shall hold at least one public meeting to consider
16public comments before final adoption.

17(p) The commission, in consultation with the participating
18districts, may propose revisions to the criteria and guidelines
19established pursuant to subdivision (o) as necessary to improve
20the ability of the program to achieve its goals. A revision may be
21proposed at any time, or may be proposed in response to a finding
22made in the annual report on the program published by the state
23board pursuant to Section 44295. A proposed revision shall be
24made available to the public 45 days before final adoption of the
25revision and the commission shall hold at least one public meeting
26to consider public comments before final adoption of the revision.

27(q) Unclaimed funds will be allocated by the state board in
28accordance with Section 44299.2.

29(r) This section shall remain in effect only until January 1, 2024,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2024, deletes or extends that date.

36

44287.  

(a) The state board shall establish grant criteria and
37guidelines consistent with this chapter for covered vehicle projects
38as soon as practicable, but not later than January 1, 2000. The
39adoption of guidelines is exempt from the rulemaking provisions
40of the Administrative Procedure Act, Chapter 3.5 (commencing
P48   1with Section 11340) of Part 1 of Division 3 of Title 2 of the
2Government Code. The state board shall solicit input and comment
3from the districts during the development of the criteria and
4guidelines and shall make every effort to develop criteria and
5guidelines that are compatible with existing district programs that
6are also consistent with this chapter. Guidelines shall include
7protocols to calculate project cost-effectiveness. The grant criteria
8and guidelines shall include safeguards to ensure that the project
9generates surplus emissions reductions. Guidelines shall enable
10and encourage districts to cofund projects that provide emissions
11reductions in more than one district. The state board shall make
12draft criteria and guidelines available to the public 45 days before
13final adoption, and shall hold at least one public meeting to
14consider public comments before final adoption.

15(b) The state board, in consultation with the participating
16districts, may propose revisions to the criteria and guidelines
17established pursuant to subdivision (a) as necessary to improve
18the ability of the program to achieve its goals. A proposed revision
19shall be made available to the public 45 days before final adoption
20of the revision and the state board shall hold at least one public
21meeting to consider public comments before final adoption of the
22revision.

23(c) The state board shall reserve funds for, and disburse funds
24to, districts from the fund for administration pursuant to this section
25and Section 44299.1.

26(d) The state board shall develop guidelines for a district to
27follow in applying for the reservation of funds, in accordance with
28this chapter. It is the intent of the Legislature that district
29administration of any reserved funds be in accordance with the
30project selection criteria specified in Sections 44281, 44282, and
3144283 and all other provisions of this chapter. The guidelines shall
32be established and published by the state board as soon as
33practicable, but not later than January 1, 2000.

34(e) Funds shall be reserved by the state board for administration
35by a district that adopts an eligible program pursuant to this chapter
36and offers matching funds at a ratio of one dollar ($1) of matching
37funds committed by the district or the Mobile Source Air Pollution
38Reduction Review Committee for every two dollars ($2) committed
39from the fund. Funds available to the Mobile Source Air Pollution
40Reduction Review Committee may be counted as matching funds
P49   1for projects in the South Coast Air Basin only if the committee
2approves the use of these funds for matching purposes. Matching
3funds may be any funds under the district’s budget authority that
4are committed to be expended in accordance with the program.
5Funds committed by a port authority or a local government, in
6cooperation with a district, to be expended in accordance with the
7program may also be counted as district matching funds. Matching
8funds provided by a port authority or a local government may not
9exceed 30 percent of the total required matching funds in any
10district that applies for more than three hundred thousand dollars
11($300,000) of the state board funds. Only a district, or a port
12authority or a local government teamed with a district, may provide
13matching funds.

14(f) The state board may adjust the ratio of matching funds
15described in subdivision (e), if it determines that an adjustment is
16necessary in order to maximize the use of, or the air quality benefits
17provided by, the program, based on a consideration of the financial
18resources of the district.

19(g) Notwithstanding subdivision (e), a district need not provide
20matching funds for state board funds allocated to the district for
21program outreach activities pursuant to paragraph (4) of subdivision
22(a) of Section 44299.1.

23(h) A district may include within its matching funds a reasonable
24estimate of direct or in-kind costs for assistance in providing
25program outreach and application evaluation. In-kind and direct
26matching funds shall not exceed 15 percent of the total matching
27funds offered by a district. A district may also include within its
28matching funds any money spent on or after February 25, 1999,
29that would have qualified as matching funds but were not
30previously claimed as matching funds.

31(i) A district desiring a reservation of funds shall apply to the
32state board following the application guidelines established
33pursuant to this section. The state board shall approve or disapprove
34a district application not later than 60 days after receipt. Upon
35approval of any district application, the state board shall
36simultaneously approve a reservation of funding for that district
37to administer. Reserved funds shall be disbursed to the district so
38that funding of a district-approved project is not impeded.

39(j) Notwithstanding any other provision of this chapter, districts
40and the Mobile Source Air Pollution Reduction Review Committee
P50   1shall not use funds collected pursuant to Section 41081 or Chapter
27 (commencing with Section 44220), or pursuant to Section
39250.11 of the Vehicle Code, as matching funds to fund a project
4with stationary or portable engines, locomotives, or marine vessels.

5(k) Any funds reserved for a district pursuant to this section are
6available to the district for a period of not more than two years
7from the time of reservation. Funds not expended by June 30 of
8the second calendar year following the date of the reservation shall
9revert back to the state board as of that June 30, and shall be
10deposited in the Covered Vehicle Account established pursuant to
11Section 44299. The funds may then be redirected based on
12applications to the fund. Regardless of any reversion of funds back
13to the state board, the district may continue to request other
14reservations of funds for local administration. Each reservation of
15funds shall be accounted for separately, and unused funds from
16each application shall revert back to the state board as specified
17in this subdivision.

18(l) The state board shall specify a date each year when district
19applications are due. If the eligible applications received in any
20year oversubscribe the available funds, the state board shall reserve
21funds on an allocation basis, pursuant to subdivision (b) of Section
2244299.1. The state board may accept a district application after
23the due date for a period of months specified by the state board.
24Funds may be reserved in response to those applications, in
25accordance with this chapter, out of funds remaining after the
26original reservation of funds for the year.

27(m) Guidelines for a district application shall require information
28from an applicant district to the extent necessary to meet the
29requirements of this chapter, but shall otherwise minimize the
30information required of a district.

31(n) A district application shall be reviewed by the state board
32immediately upon receipt. If the state board determines that an
33application is incomplete, the applicant shall be notified within 10
34working days with an explanation of what is missing from the
35application. A completed application fulfilling the criteria shall be
36approved as soon as practicable, but not later than 60 working days
37after receipt.

38(o) The state board, in consultation with the districts, shall
39establish project approval criteria and guidelines for infrastructure
40projects consistent with Section 44284 as soon as practicable, but
P51   1not later than February 15, 2000. The commission shall make draft
2criteria and guidelines available to the public 45 days before final
3adoption, and shall hold at least one public meeting to consider
4public comments before final adoption.

5(p) The state board, in consultation with the participating
6districts, may propose revisions to the criteria and guidelines
7established pursuant to subdivision (o) as necessary to improve
8the ability of the program to achieve its goals. A revision may be
9proposed at any time, or may be proposed in response to a finding
10made in the annual report on the program published by the state
11board pursuant to Section 44295. A proposed revision shall be
12made available to the public 45 days before final adoption of the
13revision and the commission shall hold at least one public meeting
14to consider public comments before final adoption of the revision.

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

20

44299.1.  

(a) To ensure that emission reductions are obtained
21as needed from pollution sources, any money deposited in or
22appropriated to the fund shall be segregated and administered as
23follows:

24(1) Not more than 2 percent of the moneys in the fund shall be
25allocated to program support and outreach costs incurred by the
26state board and the commission directly associated with
27implementing the program pursuant to this chapter. These funds
28shall be allocated to the state board and the commission in
29proportion to total program funds administered by the state board
30and the commission.

31(2) Not more than 2 percent of the moneys in the fund shall be
32allocated to direct program outreach activities. The state board
33may use these funds for program outreach contracts or may allocate
34outreach funds to participating air districts in proportion to each
35district’s allocation from the Covered Vehicle Account. The state
36board shall report on the use of outreach funds in their reports to
37the Legislature pursuant to Section 44295.

38(3) The balance shall be deposited in the Covered Vehicle
39Account to be expended to offset added costs of new very low or
40zero-emission vehicle technologies, and emission reducing
P52   1repowers, retrofits, and add-on equipment for covered vehicles
2and engines, and other projects specified in Section 44281.

3(b) Funds in the Covered Vehicle Account shall be allocated to
4a district that submits an eligible application to the state board
5pursuant to Section 44287. The state board shall determine the
6maximum amount of annual funding from the Covered Vehicle
7Account that each district may receive. This determination shall
8be based on the population in each district as well as the relative
9importance of obtaining covered emission reductions in each
10district, specifically through the program.

11(c) Not more than 5 percent of the moneys allocated pursuant
12to this chapter to a district with a population of one million or more
13may be used by the district for indirect costs of implementation of
14the program, including outreach costs that are subject to the
15limitation in paragraph (2) of subdivision (a).

16(d) Not more than 10 percent of the moneys allocated pursuant
17to this chapter to a district with a population of less than one
18million may be used by the district for indirect costs of
19implementation of the program, including outreach costs that are
20subject to the limitation in paragraph (2) of subdivision (a).

21(e) This section shall remain in effect only until January 1, 2024,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2024, deletes or extends that date.

28

44299.1.  

(a) To ensure that emission reductions are obtained
29as needed from pollution sources, any money deposited in or
30appropriated to the fund shall be segregated and administered as
31follows:

32(1) Ten percent, not to exceed two million dollars ($2,000,000),
33shall be allocated to the Infrastructure Demonstration Project to
34be used pursuant to Section 44284.

35(2) Ten percent shall be deposited in the Advanced Technology
36Account to be used to support research, development,
37demonstration, and commercialization of advanced low-emission
38technologies for covered sources that show promise of contributing
39to the goals of the program.

P53   1(3) Not more than 2 percent of the moneys in the fund shall be
2allocated to program support and outreach costs incurred by the
3state board and the commission directly associated with
4implementing the program pursuant to this chapter. These funds
5shall be allocated to the state board and the commission in
6proportion to total program funds administered by the state board
7and the commission.

8(4) Not more than 2 percent of the moneys in the fund shall be
9allocated to direct program outreach activities. The state board
10may use these funds for program outreach contracts or may allocate
11outreach funds to participating air districts in proportion to each
12district’s allocation from the Covered Vehicle Account. The state
13board shall report on the use of outreach funds in their reports to
14the Legislature pursuant to Section 44295.

15(5) The balance shall be deposited in the Covered Vehicle
16Account to be expended to offset added costs of new very low or
17zero-emission vehicle technologies, and emission reducing
18repowers, retrofits, and add-on equipment for covered vehicles
19and engines.

20(b) Funds in the Covered Vehicle Account shall be allocated to
21a district that submits an eligible application to the state board
22pursuant to Section 44287. The state board shall determine the
23maximum amount of annual funding from the Covered Vehicle
24Account that each district may receive. This determination shall
25be based on the population in each district as well as the relative
26importance of obtaining NO_x reductions in each district,
27specifically through the program.

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

32

44299.2.  

Funds shall be allocated to local air pollution control
33and air quality management districts, and shall be subject to
34administrative terms and conditions as follows:

35(a) Available funds shall be distributed to districts taking into
36consideration the population of the area, the severity of the air
37quality problems experienced by the population, and the historical
38allocation of the Carl Moyer Memorial Air Quality Standards
39Attainment Trust Fund, except that the south coast district shall
40be allocated a percentage of the total funds available to districts
P54   1that is proportional to the percentage of the total state population
2residing within the jurisdictional boundaries of that district. For
3the purposes of this subdivision, population shall be determined
4by the state board based on the most recent data provided by the
5Department of Finance. The allocation to the south coast district
6shall be subtracted from the total funds available to districts. Each
7district, except the south coast district, shall be awarded a minimum
8allocation of two hundred thousand dollars ($200,000), and the
9remainder, which shall be known as the “allocation amount,” shall
10be allocated to all districts as follows:

11(1) The state board shall distribute 35 percent of the allocation
12amount to the districts in proportion to the percentage of the total
13residual state population that resides within each district’s
14boundaries. For purposes of this paragraph, “total residual state
15population” means the total state population, less the total
16population that resides within the south coast district.

17(2) The state board shall distribute 35 percent of the allocation
18amount to the districts in proportion to the severity of the air quality
19problems to which each district’s population is exposed. The
20severity of the exposure shall be calculated as follows:

21(A) Each district shall be awarded severity points based on the
22district’s attainment designation and classification, as most recently
23promulgated by the federal Environmental Protection Agency for
24the National Ambient Air Quality Standard for ozone averaged
25over eight hours, as follows:

26(i) A district that is designated attainment for the federal
27eight-hour ozone standard shall be awarded one point.

28(ii) A district that is designated nonattainment for the federal
29eight-hour ozone standard shall be awarded severity points based
30on classification. Two points shall be awarded for transitional,
31basic, or marginal classifications, three points for moderate
32classification, four points for serious classification, five points for
33severe classification, six points for severe-17 classification, and
34seven points for extreme classification.

35(B) Each district shall be awarded severity points based on the
36annual diesel particulate emissions in the air basin, as determined
37by the state board. One point shall be awarded to the district, in
38increments, for each 1,000 tons of diesel particulate emissions. In
39making this determination, 0 to 999 tons shall be awarded no
40points, 1,000 to 1,999 tons shall be awarded one point, 2,000 to
P55   12,999 tons shall be awarded two points, and so forth. If a district
2encompasses more than one air basin, the air basin with the greatest
3diesel particulate emissions shall be used to determine the points
4awarded to the district. The San Diego County Air Pollution
5Control District and the Imperial County Air Pollution Control
6District shall be awarded one additional point each to account for
7annual diesel particulate emissions transported from Mexico.

8(C) The points awarded under subparagraphs (A) and (B), shall
9be added together for each district, and the total shall be multiplied
10by the population residing within the district boundaries, to yield
11the local air quality exposure index.

12(D) The local air quality exposure index for each district shall
13be summed together to yield a total state exposure index. Funds
14shall be allocated under this paragraph to each district in proportion
15to its local air quality exposure index divided by the total state
16exposure index.

17(3) The state board shall distribute 30 percent of the allocation
18amount to the districts in proportion to the allocation of funds from
19the Carl Moyer Memorial Air Quality Standards Attainment Trust
20Fund, as follows:

21(A) Because each district is awarded a minimum allocation
22pursuant to subdivision (a), there shall be no additional minimum
23allocation from the Carl Moyer historical allocation funds. The
24total amount allocated in this way shall be subtracted from total
25funding previously awarded to the district under the Carl Moyer
26Memorial Air Quality Standards Attainment Program, and the
27remainder, which shall be known as directed funds, shall be
28allocated pursuant to subparagraph (B).

29(B) Each district with a population that is greater than or equal
30to 1 percent of the state’s population shall receive an additional
31allocation based on the population of the district and the district’s
32relative share of emission reduction commitments in the state
33implementation plan to attain the National Ambient Air Quality
34Standard for ozone averaged over one hour. This additional
35 allocation shall be calculated as a percentage share of the directed
36funds for each district, derived using a ratio of each district’s share
37amount to the base amount, which shall be calculated as follows:

38(i) The base amount shall be the total Carl Moyer program funds
39allocated by the state board to the districts in the 2002-03 fiscal
P56   1year, less the total of the funds allocated through the minimum
2allocation to each district in the 2002-03 fiscal year.

3(ii) The share amount shall be the allocation that each district
4received in the 2002-03 fiscal year, not including the minimum
5allocation. There shall be one share amount for each district.

6(iii) The percentage share shall be calculated for each district
7by dividing the district’s share amount by the base amount, and
8multiplying the result by the total directed funds available under
9this subparagraph.

10(b) Funds shall be distributed as expeditiously as reasonably
11practicable, and a report of the distribution shall be made available
12to the public.

13(c) All funds allocated pursuant to this section shall be expended
14as provided in the guidelines adopted pursuant to Section 44287
15within two years from the date of allocation. Funds not expended
16within the two years shall be returned to the Covered Vehicle
17Account within 60 days and shall be subject to further allocation
18as follows:

19(1) Within 30 days of the deadline to return funds, the state
20board shall notify the districts of the total amount of returned funds
21available for reallocation, and shall list those districts that request
22supplemental funds from the reallocation and that are able to
23expend those funds within one year.

24(2) Within 90 days of the deadline to return funds, the state
25board shall allocate the returned funds to the districts listed
26pursuant to paragraph (1).

27(3) All supplemental funds distributed under this subdivision
28shall be expended consistent with the Carl Moyer Air Quality
29Standards Attainment Program within one year of the date of
30supplemental allocation. Funds not expended within one year shall
31be returned to the Covered Vehicle Account and shall be distributed
32at the discretion of the state board to districts, taking into
33consideration of each district’s ability to expeditiously utilize the
34remaining funds consistent with the Carl Moyer Air Quality
35Standards Attainment Program.

36(d) This section shall remain in effect only until January 1, 2024,
37and as of that date is repealed, unless a later enacted statute, that
38is enacted before January 1, 2024, deletes or extends that date.

5

42885.  

(a) For purposes of this section, “California tire fee”
6means the fee imposed pursuant to this section.

7(b) (1) Before January 1, 2015, a person who purchases a new
8tire, as defined in subdivision (g), shall pay a California tire fee
9of one dollar and seventy-five cents ($1.75) per tire.

10(2) On and after January 1, 2015, a person who purchases a new
11tire, as defined in subdivision (g), shall pay a California tire fee
12of one dollar and fifty cents ($1.50) per tire.

13(3) The retail seller shall charge the retail purchaser the amount
14of the California tire fee as a charge that is separate from, and not
15included in, any other fee, charge, or other amount paid by the
16retail purchaser.

17(4) The retail seller shall collect the California tire fee from the
18retail purchaser at the time of sale and may retain 11⁄2 percent of
19the fee as reimbursement for any costs associated with the
20collection of the fee. The retail seller shall remit the remainder to
21the state on a quarterly schedule for deposit in the California Tire
22Recycling Management Fund, which is hereby created in the State
23Treasury.

24(c) The board, or its agent authorized pursuant to Section 42882,
25shall be reimbursed for its costs of collection, auditing, and making
26refunds associated with the California Tire Recycling Management
27Fund, but not to exceed 3 percent of the total annual revenue
28deposited in the fund.

29(d) The California tire fee imposed pursuant to subdivision (b)
30shall be separately stated by the retail seller on the invoice given
31to the customer at the time of sale. Any other disposal or
32transaction fee charged by the retail seller related to the tire
33purchase shall be identified separately from the California tire fee.

34(e) A person or business who knowingly, or with reckless
35disregard, makes a false statement or representation in a document
36used to comply with this section is liable for a civil penalty for
37each violation or, for continuing violations, for each day that the
38violation continues. Liability under this section may be imposed
39in a civil action and shall not exceed twenty-five thousand dollars
40($25,000) for each violation.

P58   1(f) In addition to the civil penalty that may be imposed pursuant
2to subdivision (e), the board may impose an administrative penalty
3in an amount not to exceed five thousand dollars ($5,000) for each
4violation of a separate provision or, for continuing violations, for
5each day that the violation continues, on a person who intentionally
6or negligently violates a permit, rule, regulation, standard, or
7requirement issued or adopted pursuant to this chapter. The board
8shall adopt regulations that specify the amount of the administrative
9penalty and the procedure for imposing an administrative penalty
10pursuant to this subdivision.

11(g) For purposes of this section, “new tire” means a pneumatic
12or solid tire intended for use with onroad or off-road motor
13vehicles, motorized equipment, construction equipment, or farm
14equipment that is sold separately from the motorized equipment,
15or a new tire sold with a new or used motor vehicle, as defined in
16Section 42803.5, including the spare tire, construction equipment,
17or farm equipment. “New tire” does not include retreaded, reused,
18or recycled tires.

19(h) The California tire fee shall not be imposed on a tire sold
20with, or sold separately for use on, any of the following:

21(1) A self-propelled wheelchair.

22(2) A motorized tricycle or motorized quadricycle, as defined
23in Section 407 of the Vehicle Code.

24(3) A vehicle that is similar to a motorized tricycle or motorized
25quadricycle and is designed to be operated by a person who, by
26reason of the person’s physical disability, is otherwise unable to
27move about as a pedestrian.

28(i) This section shall remain in effect only until January 1, 2024,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2024, deletes or extends that date.

35

42885.  

(a) For purposes of this section, “California tire fee”
36means the fee imposed pursuant to this section.

37(b) (1) Every person who purchases a new tire, as defined in
38subdivision (g), shall pay a California tire fee of seventy-five cents
39($0.75) per tire.

P59   1(2) The retail seller shall charge the retail purchaser the amount
2of the California tire fee as a charge that is separate from, and not
3included in, any other fee, charge, or other amount paid by the
4retail purchaser.

5(3) The retail seller shall collect the California tire fee from the
6retail purchaser at the time of sale and may retain 3 percent of the
7fee as reimbursement for any costs associated with the collection
8of the fee. The retail seller shall remit the remainder to the state
9on a quarterly schedule for deposit in the California Tire Recycling
10Management Fund, which is hereby created in the State Treasury.

11(c) The board, or its agent authorized pursuant to Section 42882,
12shall be reimbursed for its costs of collection, auditing, and making
13refunds associated with the California Tire Recycling Management
14Fund, but not to exceed 3 percent of the total annual revenue
15deposited in the fund.

16(d) The California tire fee imposed pursuant to subdivision (b)
17shall be separately stated by the retail seller on the invoice given
18to the customer at the time of sale. Any other disposal or
19transaction fee charged by the retail seller related to the tire
20purchase shall be identified separately from the California tire fee.

21(e) Any person or business who knowingly, or with reckless
22disregard, makes any false statement or representation in any
23document used to comply with this section is liable for a civil
24penalty for each violation or, for continuing violations, for each
25day that the violation continues. Liability under this section may
26be imposed in a civil action and shall not exceed twenty-five
27thousand dollars ($25,000) for each violation.

28(f) In addition to the civil penalty that may be imposed pursuant
29to subdivision (e), the board may impose an administrative penalty
30in an amount not to exceed five thousand dollars ($5,000) for each
31violation of a separate provision or, for continuing violations, for
32each day that the violation continues, on any person who
33intentionally or negligently violates any permit, rule, regulation,
34standard, or requirement issued or adopted pursuant to this chapter.
35The board shall adopt regulations that specify the amount of the
36administrative penalty and the procedure for imposing an
37administrative penalty pursuant to this subdivision.

38(g) For purposes of this section, “new tire” means a pneumatic
39or solid tire intended for use with onroad or off-road motor
40vehicles, motorized equipment, construction equipment, or farm
P60   1equipment that is sold separately from the motorized equipment,
2or a new tire sold with a new or used motor vehicle, as defined in
3Section 42803.5, including the spare tire, construction equipment,
4or farm equipment. “New tire” does not include retreaded, reused,
5or recycled tires.

6(h) The California tire fee may not be imposed on any tire sold
7with, or sold separately for use on, any of the following:

8(1) Any self-propelled wheelchair.

9(2) Any motorized tricycle or motorized quadricycle, as defined
10in Section 407 of the Vehicle Code.

11(3) Any vehicle that is similar to a motorized tricycle or
12motorized quadricycle and is designed to be operated by a person
13who, by reason of the person’s physical disability, is otherwise
14unable to move about as a pedestrian.

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

20

42889.  

(a) Commencing January 1, 2005, of the moneys
21collected pursuant to Section 42885, an amount equal to
22seventy-five cents ($0.75) per tire on which the fee is imposed
23shall be transferred by the State Board of Equalization to the Air
24Pollution Control Fund. The state board shall expend those moneys,
25or allocate those moneys to the districts for expenditure, to fund
26programs and projects that mitigate or remediate air pollution
27caused by tires in the state, to the extent that the state board or the
28applicable district determines that the program or project
29remediates air pollution harms created by tires upon which the fee
30described in Section 42885 is imposed.

31(b) The remaining moneys collected pursuant to Section 42885
32shall be used to fund the waste tire program, and shall be
33appropriated to the board in the annual Budget Act in a manner
34consistent with the five-year plan adopted and updated by the
35board. These moneys shall be expended for the payment of refunds
36under this chapter and for the following purposes:

37(1) To pay the administrative overhead cost of this chapter, not
38to exceed 6 percent of the total revenue deposited in the fund
39annually, or an amount otherwise specified in the annual Budget
40Act.

P61   1(2) To pay the costs of administration associated with collection,
2making refunds, and auditing revenues in the fund, not to exceed
33 percent of the total revenue deposited in the fund, as provided
4in subdivision (c) of Section 42885.

5(3) To pay the costs associated with operating the tire recycling
6program specified in Article 3 (commencing with Section 42870).

7(4) To pay the costs associated with the development and
8enforcement of regulations relating to the storage of waste tires
9and used tires. The board shall consider designating a city, county,
10or city and county as the enforcement authority of regulations
11relating to the storage of waste tires and used tires, as provided in
12subdivision (c) of Section 42850, and regulations relating to the
13hauling of waste and used tires, as provided in subdivision (b) of
14Section 42963. If the board designates a local entity for that
15purpose, the board shall provide sufficient, stable, and
16noncompetitive funding to that entity for that purpose, based on
17available resources, as provided in the five-year plan adopted and
18updated as provided in subdivision (a) of Section 42885.5. The
19board may consider and create, as appropriate, financial incentives
20for citizens who report the illegal hauling or disposal of waste tires
21as a means of enhancing local and statewide waste tire and used
22tire enforcement programs.

23(5) To pay the costs of cleanup, abatement, removal, or other
24remedial action related to waste tire stockpiles throughout the state,
25including all approved costs incurred by other public agencies
26involved in these activities by contract with the board. Not less
27than six million five hundred thousand dollars ($6,500,000) shall
28be expended by the board during each of the following fiscal years
29for this purpose: 2001-02 to 2006-07, inclusive.

30(6) To make studies and conduct research directed at promoting
31and developing alternatives to the landfill disposal of waste tires.

32(7) To assist in developing markets and new technologies for
33used tires and waste tires. The board’s expenditure of funds for
34purposes of this subdivision shall reflect the priorities for waste
35management practices specified in subdivision (a) of Section
3640051.

37(8) To pay the costs associated with implementing and operating
38a waste tire and used tire hauler program and manifest system
39pursuant to Chapter 19 (commencing with Section 42950).

P62   1(9) To pay the costs to create and maintain an emergency
2reserve, which shall not exceed one million dollars ($1,000,000).

3(10) To pay the costs of cleanup, abatement, or other remedial
4action related to the disposal of waste tires in implementing and
5operating the Farm and Ranch Solid Waste Cleanup and Abatement
6Grant Program established pursuant to Chapter 2.5 (commencing
7with Section 48100) of Part 7.

8(11) To fund border region activities specified in paragraph (8)
9of subdivision (b) of Section 42885.5.

10(c) This section shall remain in effect only until January 1, 2024,
11and as of that date is repealed, unless a later enacted statute that
12is enacted before January 1, 2024, deletes or extends that date.

17

42889.  

Funding for the waste tire program shall be appropriated
18to the board in the annual Budget Act. The moneys in the fund
19shall be expended for the payment of refunds under this chapter
20and for the following purposes:

21(a) To pay the administrative overhead cost of this chapter, not
22to exceed 5 percent of the total revenue deposited in the fund
23annually, or an amount otherwise specified in the annual Budget
24Act.

25(b) To pay the costs of administration associated with collection,
26making refunds, and auditing revenues in the fund, not to exceed
273 percent of the total revenue deposited in the fund, as provided
28in subdivision (b) of Section 42885.

29(c) To pay the costs associated with operating the tire recycling
30program specified in Article 3 (commencing with Section 42870).

31(d) To pay the costs associated with the development and
32enforcement of regulations relating to the storage of waste tires
33and used tires. The board shall consider designating a city, county,
34or city and county as the enforcement authority of regulations
35relating to the storage of waste tires and used tires, as provided in
36subdivision (c) of Section 42850, and regulations relating to the
37hauling of waste and used tires, as provided in subdivision (b) of
38Section 42963. If the board designates a local entity for that
39purpose, the board shall provide sufficient, stable, and
40noncompetitive funding to that entity for that purpose, based on
P63   1available resources, as provided in the five-year plan adopted and
2updated as provided in subdivision (a) of Section 42885.5. The
3board may consider and create, as appropriate, financial incentives
4for citizens who report the illegal hauling or disposal of waste tires
5as a means of enhancing local and statewide waste tire and used
6tire enforcement programs.

7(e) To pay the costs of cleanup, abatement, removal, or other
8remedial action related to waste tire stockpiles throughout the state,
9including all approved costs incurred by other public agencies
10involved in these activities by contract with the board. Not less
11than six million five hundred thousand dollars ($6,500,000) shall
12be expended by the board during each of the following fiscal years
13for this purpose: 2001-02 to 2006-07, inclusive.

14(f) To fund border region activities specified in paragraph (8)
15of subdivision (b) of Section 42885.5.

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

20

9250.1.  

(a) Beginning July 1, 2008, the fee described in Section
219250 shall be increased by three dollars ($3).

22(b) Two dollars ($2) of the increase shall be deposited into the
23Alternative and Renewable Fuel and Vehicle Technology Fund
24created by Section 44273 of the Health and Safety Code, and one
25dollar ($1) shall be deposited into the Enhanced Fleet
26Modernization Subaccount created by Section 44126 of the Health
27and Safety Code.

28(c) This section shall remain in effect only until January 1, 2024,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2024, deletes or extends that date.

35

9250.2.  

(a) The department, if requested by the Sacramento
36Metropolitan Air Quality Management District pursuant to Section
3741081 of the Health and Safety Code, shall impose and collect a
38surcharge on the registration fees for every motor vehicle registered
39in that district, not to exceed the amount of six dollars ($6), as
40specified by the governing body of that district.

P64   1(b) This section shall remain in effect only until January 1, 2024,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2024, deletes or extends that date.

8

9250.2.  

(a) The department, if requested by the Sacramento
9Metropolitan Air Quality Management District pursuant to Section
1041081 of the Health and Safety Code, shall impose and collect a
11surcharge on the registration fees for every motor vehicle registered
12in that district, not to exceed four dollars ($4).

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

17

9261.1.  

(a) Beginning July 1, 2008, the fee described in Section
189261, as adjusted pursuant to Section 1678, shall be increased by
19five dollars ($5).

20(b) Two dollars and fifty cents ($2.50) of the increase shall be
21deposited into the Alternative and Renewable Fuel and Vehicle
22Technology Fund created by Section 44273 of the Health and
23Safety Code, and two dollars and fifty cents ($2.50) shall be
24deposited into the Air Quality Improvement Fund created by
25Section 44274.5 of the Health and Safety Code.

26(c) This section shall remain in effect only until January 1, 2024,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2024, deletes or extends that date.

32

9853.6.  

(a) (1) Beginning July 1, 2008, the fee described in
33paragraph (1) of subdivision (b) of Section 9853 shall be increased
34by ten dollars ($10).

35(2) Five dollars ($5) of the increase shall be deposited into the
36Alternative and Renewable Fuel and Vehicle Technology Fund
37created by Section 44273 of the Health and Safety Code and five
38dollars ($5) shall be deposited into the Air Quality Improvement
39Fund created by Section 44274.5 of the Health and Safety Code.

P65   1(b) (1) Beginning July 1, 2008, the fee described in paragraph
2(2) of subdivision (b) of Section 9853 shall be increased by twenty
3dollars ($20).

4(2) Ten dollars ($10) of the increase shall be deposited into the
5Alternative and Renewable Fuel and Vehicle Technology Fund
6created by Section 44273 of the Health and Safety Code and ten
7dollars ($10) shall be deposited into the Air Quality Improvement
8Fund created by Section 44274.5 of the Health and Safety Code.

9(c) This section shall remain in effect only until January 1, 2024,
10and as of that date is repealed, unless a later enacted statute, that
11is enacted before January 1, 2024, deletes or extends that date.