SECTIONS 44272-44273 - California Statutes

HEALTH AND SAFETY CODE

SECTION 44272-44273

44272. (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement the
program by regulation pursuant to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The program shall provide, upon appropriation
by the Legislature, competitive grants, revolving loans, loan
guarantees, loans, or other appropriate funding measures, to public
agencies, vehicle and technology entities, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be to develop and deploy technology and alternative and renewable
fuels in the marketplace, without adopting any one preferred fuel or
technology.
(b) A project funded by the commission shall be approved at a
noticed public hearing of the commission and shall be consistent with
the priorities established by the investment plan adopted pursuant
to Section 44272.5.
(c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
applicable:
(1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
(2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
(3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
(4) The project's ability to decrease, on a life cycle basis, the
discharge of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
(5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
(6) The project provides nonstate matching funds.
(7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
(8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
(9) The project's ability to reduce on a life cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
(10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
(11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
(d) Only the following shall be eligible for funding:
(1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
(2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
(3) Projects to produce alternative and renewable low-carbon fuels
in California.
(4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase
sustainability.
(5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
(6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
(7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
(8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
(9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
(10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
(11) Block grants administered by not-for-profit technology
entities for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
(12) Life cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine the
impacts of increasing the use of low-carbon transportation fuels and
technologies, and to assist in the preparation of the investment plan
and program implementation.
(13) A program to provide funding for homeowners who purchase a
plug-in electric vehicle to offset costs associated with modifying
electrical sources to include a residential plug-in electric vehicle
charging station. In establishing this program, the commission shall
consider funding criteria to maximize the public benefit of the
program.
(e) The commission may make a single source or sole source award
pursuant to this section for applied research. The same requirements
set forth in Section 25620.5 of the Public Resources Code shall apply
to awards made on a single source basis or a sole source basis. This
subdivision does not authorize the commission to make a single
source or sole source award for a project or activity other than for
applied research.
(f) The commission may do both of the following:
(1) Contract with the Treasurer to expend funds through programs
implemented by the Treasurer, if the expenditure is consistent with
all of the requirements of this article and Article 1 (commencing
with Section 44270).
(2) Contract with small business financial development
corporations established by the Business, Transportation and Housing
Agency to expend funds through the Small Business Loan Guarantee
Program if the expenditure is consistent with all of the requirements
of this article and Article 1 (commencing with Section 44270).

44272.3. (a) It is the Legislature's intent that, to the maximum
extent feasible, loan moneys provided by the state to refiners of
biofuels, also known as biorefiners, be awarded so as to increase the
efficiency and environmental sustainability of biofuel production.
(b) In order to reduce the carbon intensity equivalent value of
the fuel that biorefiners produce, biorefiners receiving loans from
the commission's California Ethanol Producer Incentive Program,
established under the authority of this chapter, shall meet all of
the following requirements:
(1) Within six months of acceptance to the program, biorefiners
shall submit a draft plan to the commission that details one or more
projects that can be undertaken at the biorefinery that are designed
to achieve compliance with either of two biorefinery operational
enhancement goals established by the commission.
(2) Within 12 months of acceptance to the program, biorefiners
shall submit a detailed cost estimate for their target projects that
can be undertaken at the biorefinery and that are designed to achieve
compliance with the commission's enhancement goals.
(3) Within 24 months of acceptance to the program, biorefiners
shall complete and obtain all of the necessary permits or negative
declarations sufficient to allow the project to move forward with
financing, major equipment purchases, and hiring if project approval
is executed by the company's officers.
(4) Within 36 months of acceptance to the program, biorefiners
shall obtain all of the necessary financing and initiate construction
for their project associated with their elected enhancement goal
pathway.
(5) Within 48 months of acceptance to the program, biorefiners
shall complete all modifications to the facility and begin modified
operations that achieve compliance with either of the enhancement
goal pathways selected by the project applicant.
(c) This section does not limit the commission's ability to set
more stringent guidelines for the California Ethanol Producer
Incentive Program that further maximize the efficiency and
environmental sustainability of biofuel production.
(d) This section shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.

44272.4. Notwithstanding subdivision (d) of Section 44272.3, a
biorefiner receiving loan moneys from the state pursuant to an
appropriation made in the 2010-11 or 2011-12 fiscal year shall comply
with all conditions established pursuant to Section 44272.3 and
shall demonstrate that compliance to the commission.

44272.5. (a) The commission shall develop and adopt an investment
plan to determine priorities and opportunities for the Alternative
and Renewable Fuel and Vehicle Technology Program created pursuant to
this chapter. The investment plan shall establish priorities for
investment of funds and technologies to achieve the goals of this
chapter and describe how funding will complement existing public and
private investments, including existing state programs that further
the goals of this chapter. The commission shall create and consult
with an advisory body as it develops the investment plan. The
advisory body is subject to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code). The commission shall,
at a minimum, hold one public hearing on the advisory body's
recommendations prior to approving the investment plan.
(b) Membership of the advisory body created pursuant to
subdivision (a) shall include, but is not limited to, representatives
of fuel and vehicle technology entities, labor organizations,
environmental organizations, community-based justice and public
health organizations, recreational boaters, consumer advocates,
academic institutions, workforce training groups, and private
industry. The advisory body shall also include representatives from
the Resources Agency, the Business, Transportation and Housing
Agency, the Labor and Workforce Development Agency, and the
California Environmental Protection Agency.
(c) The commission shall hold at least three public workshops in
different regions of the state and one public hearing prior to
approving the investment plan. The commission shall annually update
and approve the plan. The commission shall reconvene and consult with
the advisory body created pursuant to subdivision (a) prior to
annually updating and approving the plan.

44272.7. (a) On or before March 15, 2011, and each January
thereafter concurrent with the submittal of the Governor's Budget,
the commission shall submit a draft investment plan, as developed in
accordance with Section 44272.5, for the upcoming fiscal year to the
Joint Legislative Budget Committee and all relevant policy and fiscal
committees of the Legislature.
(b) Beginning with the investment plan for the 2012-13 fiscal
year, the commission shall submit the final investment plan for the
ensuing fiscal year, as developed in accordance with Section 44272.5,
to the Joint Legislative Budget Committee and all relevant policy
and fiscal committees of the Legislature each May concurrent with the
submittal of the Governor's May Revision to the budget.
(c) Subsequent to the approval of the investment plan pursuant to
subdivision (c) of Section 44272.5, the commission shall, within 30
days, notify the Joint Legislative Budget Committee and all relevant
policy and fiscal committees of the Legislature if a significant
modification to the final investment plan is approved. For purposes
of this subdivision, "significant modification" means an augmentation
or reduction the value of which individually exceeds 50 percent of
the commission-approved allocation to an investment plan subcategory
or is at least two million dollars ($2,000,000). For other
modifications that do not meet this definition, the commission shall
notify the Joint Legislative Budget Committee and all relevant policy
and fiscal committees of the Legislature within 90 days, or at such
earlier time as the aggregate total of unreported modifications
equals five million dollars ($5,000,000) or more.
(d) (1) It is the intent of the Legislature that the investment
plan, including periodic revisions to the plan, communicate the
commission's strategic vision and priorities with respect to the
development of alternative and renewable fuel and vehicle
technologies, and will provide an analytical rationale for all
proposed expenditures that aligns with the commission's broader
strategic goals for the program.
(2) It is also the intent of the Legislature that the investment
plan highlight and explain the rationale for any year-over-year
changes to the commission's program strategy and priorities,
particularly with respect to specific technologies or policy
initiatives.
(3) Additionally, it is the intent of the Legislature that
submission of the draft investment plan concurrent with the Governor'
s Budget, along with timely notification of significant modifications
to the investment plan thereafter, will improve legislative
oversight of the program and provide the Legislature with all of the
necessary information to fully understand how and why funds are to be
allocated and prioritized within the program.

44273. (a) The Alternative and Renewable Fuel and Vehicle
Technology Fund is hereby created in the State Treasury, to be
administered by the commission. The moneys in the fund, upon
appropriation by the Legislature, shall be expended by the commission
to implement the Alternative and Renewable Fuel and Vehicle
Technology Program in accordance with this chapter.
(b) Notwithstanding any other provision of law, the sum of ten
million dollars ($10,000,000) shall be transferred annually from the
Public Interest Research, Development, and Demonstration Fund created
by Section 384 of the Public Utilities Code to the Alternative and
Renewable Fuel and Vehicle Technology Fund. Prior to the award of any
funds from this source, the commission shall make a determination
that the proposed project will provide benefits to electric or
natural gas ratepayers based upon the commission's adopted criteria.
(c) Beginning with the integrated energy policy report adopted in
2011, and in the subsequent reports adopted thereafter, pursuant to
Section 25302 of the Public Resources Code, the commission shall
include an evaluation of research, development, and deployment
efforts funded by this chapter. The evaluation shall include all of
the following:
(1) A list of projects funded by the Alternative and Renewable
Fuel and Vehicle Technology Fund.
(2) The expected benefits of the projects in terms of air quality,
petroleum use reduction, greenhouse gas emissions reduction,
technology advancement, and progress towards achieving these
benefits.
(3) The overall contribution of the funded projects toward
promoting a transition to a diverse portfolio of clean, alternative
transportation fuels and reduced petroleum dependency in California.
(4) Key obstacles and challenges to meeting these goals identified
through funded projects.
(5) Recommendations for future actions.