The following list and information is an update to the previously posted 10/4/17 Legislative Update that includes actions by the Governor between 10/4/17 and 10/10/17. We will continue to provide updates as the October 15, 2017 deadline for the Governor to either veto, sign, or allow other bills to become law by not vetoing them before the deadline approaches.

Of note, the Governor signed eleven bills related zero and near-zero emission vehicle markets.  These bills cover a range of categories and are interspersed between the Air Pollution, Alternative Fuels and Vehicles, and Electric Vehicles categories.

You can find a complete list of enrolled, chaptered, and vetoed bills on EPIC’s Legislative Center website.

Chaptered:

The Governor signed the following bills between 10/4/17 and 10/10/17.

Air Pollution:

AB 1647 (Muratsuchi): Nonvehicular Air Pollution: Air Monitoring Systems in Refineries

Existing law designates the responsibility of controlling air pollution from all sources other than vehicular sources, to air pollution control and air quality management districts.  Existing law authorizes the State Air Resources Board or the air district to require the owner or the operator of an air pollution emission source to take any reasonable action, as determined by the state board or the air district, with regards to the amount of air pollution emissions from that source. This bill: 1) requires an air district to design, develop, install, operate, and maintain the community air monitoring system or to contract with a third party to provide those services, 2) requires an owner or operator of a petroleum refinery to develop, install, operate, and maintain a fence-line monitoring system, as defined, on or before January 1, 2020, as specified, 3) requires the owner or operator of a refinery to collect real-time data from these monitoring systems, to provide that data as quickly as possible in a publicly accessible format, and to maintain records of that data, and 4) requires the owner or operator of a petroleum refinery to be responsible for the costs associated with the community air monitoring system and the fence-line monitoring system, except as specified.

AB 188 (Salas): Vehicle Retirement and Replacement

Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. This bill: 1) requires the State Air Resources Board, no later than July 1, 2019, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified, and 2) incorporates additional changes to Section 44125 of the Health and Safety Code proposed by AB 630 to be operative only if this bill and AB 630 are enacted and this bill is enacted last.

AB 1274 (O’Donnell): Smog Check Exemption

Existing law establishes a motor vehicle inspection and maintenance (smog check) program that is administered by the Department of Consumer Affairs. The smog check program requires inspection of motor vehicles upon initial registration, biennially upon renewal of registration, upon transfer of ownership, and in certain other circumstances. Existing law, except as provided, exempts motor vehicles that are 6 or less model-years old from being inspected biennially upon renewal of registration. Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board. The program authorizes the state board to provide grants to offset the incremental cost of eligible projects that reduce emissions from covered vehicular sources. The program also authorizes funding for a fueling infrastructure demonstration program and for technology development efforts that are expected to result in commercially available technologies in the near-term that would improve the ability of the program to achieve its goals. This bill: 1) beginning January 1, 2019, and except as provided, exempts motor vehicles that are 8 or less model-years old from being inspected biennially upon renewal of registration, 2) assesses an annual smog abatement fee of $25 on motor vehicles that are 7 or 8 model-years old, 3) requires a certain amount of the fee to be deposited into the Air Pollution Control Fund and to be available for expenditure, upon appropriation by the Legislature, to fund the Carl Moyer Memorial Air Quality Standards Attainment Program, 4) requires the balance of the fee to be deposited into the Vehicle Inspection and Repair Fund, and 5) declares that it is to take effect immediately as an urgency statute.

AB 1317 (Gray):  Carl Moyer Memorial Air Quality Standards Attainment Program

Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which is administered by the State Air Resources Board, to provide grants to offset the incremental cost of eligible projects that reduce emissions of air pollutants from covered sources. Existing law defines the term “covered source” for purposes of the program.  This bill: 1) revises the definition of “covered source” to include stationary irrigation or water conveyance engines.

Alternative Fuels and Vehicles:

AB 544 (Bloom): High-Occupancy Vehicle Lanes

This bill: 1) extends the authority of drivers of specified vehicles to use HOV lanes until the date federal authorization expires, or until the Secretary of State receives a specified notice, whichever occurs first, 2) authorizes the Department of Motor Vehicles to issue identifiers until the date federal authorization expires, or until the Secretary of State receives a certain notice, whichever occurs first, 3) makes certain existing identifiers valid until January 1, 2019, would make certain identifiers issued on or after January 1, 2019, valid until January 1, 2022, and makes other identifiers issued on or after January 1, 2019, valid until January 1 of the 4th year after the year in which they were issued, 4) additionally conditions eligibility for the identifiers on the applicant not having applied for or received a rebate pursuant to the Clean Vehicle Rebate Project, unless the applicant meets certain income restrictions, 5) provides that if these provisions become inoperative, the driver of a vehicle with an otherwise valid decal, label, or other identifier would not be cited for a violation of the HOV lane provisions within 60 days of the date that those provisions became inoperative, and 6) make additional conforming changes, and 7) repeals these provisions on September 30, 2025.

SB 498 (Skinner): Vehicle Fleets: Zero-Emission Vehicles

This bill: 1) requires the State Air Resources Board, in consultation with stakeholders, to review all programs affecting the adoption of light-duty, medium-duty, and heavy-duty zero-emission vehicles in the state and report to the Legislature no later than July 1, 2019, recommendations for increasing the use of those vehicles for vehicle fleet use and on a general-use basis in the state, as specified, and 2) requires the Department of General Services, beginning no later than the 2024–25 fiscal year, to ensure at least 50% of the light-duty vehicles purchased for the state vehicle fleet each fiscal year are zero-emission vehicles, except as specified.

AB 615 (Cooper): Air Quality Improvement Program: Clean Vehicle Rebate Project

Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, the reduction of criteria air pollutants and improvement of air quality. Pursuant to its existing statutory authority, the state board has established the Clean Vehicle Rebate Project, as a part of the Air Quality Improvement Program, to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles. Existing law, until July 1, 2017, requires the state board, for the purposes of the Clean Vehicle Rebate Project, to, among other things, offer rebates only to applicants who purchase an eligible vehicle and have a specified maximum gross annual income; increase rebate payments by $500 for low-income applicants, as defined; and prioritize rebate payments for low-income applicants. This bill: 1) extends the applicability of these provisions to January 1, 2019, 2) requires the State Air Resources Board to work with, and contract with, either the University of California or the California State University to prepare and submit to the Legislature a report on the impact of the Clean Vehicle Rebate Project on the state’s zero-emission vehicle market no later than December 31, 2018, 3) requires the Department of Finance to submit to the Legislature a report evaluating the fiscal impacts of the Clean Vehicle Rebate Project no later than July 1, 2018, and 4) declares that it is to take effect immediately as an urgency statute.

AB 630 (Cooper): Vehicle Retirement and Replacement

This bill would: 1) establishes the Clean Cars 4 All Program to be administered by the State Air Resources Board to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluter motor vehicles with cleaner and more efficient motor vehicles or a mobility option, as specified, 2) requires the State Air Resources Board, no later than January 1, 2019, to update the guidelines for the Clean Cars 4 All Program and the enhanced fleet modernization program, as specified, 3) requires the State Air Resources Board, beginning no later than July 1, 2019, and every year thereafter, to collect and post on its Internet Web site specified information on both programs, 4) authorizes the State Air Resources Board to allocate moneys, upon appropriation, for the expansion of the replacement component or mobility option component of both programs from the Enhanced Fleet Modernization Subaccount, the High Polluter Repair or Removal Account, and the Vehicle Inspection and Repair Fund, 5) authorizes the state board to allocate moneys, upon appropriation, from the Greenhouse Gas Reduction Fund to the Clean Cars 4 All Program, 6) makes conforming changes, and 7) incorporates additional changes to Section 44125 of the Health and Safety Code proposed by AB 188 to be operative only if this bill and AB 188 are enacted and this bill is enacted last.

AB 739 (Chau): State Vehicle Fleet Purchases

Existing law requires all new state fleet purchases made by the Department of General Services and other state entities of certain passenger vehicles and light-duty trucks to meet the fuel economy standard established by the department, in consultation with the State Energy Resources Conservation and Development Commission. Existing law requires the Secretary of the Government Operations Agency, in consultation with the department and other state agencies, to develop and implement a plan to improve the overall state fleet’s use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles by reducing or displacing the consumption of petroleum products by the state fleet. This bill: 1) except as provided, requires, beginning December 31, 2025, at least 15% of newly purchased vehicles with a gross vehicle weight rating of 19,000 pounds or more purchased by the department and other state entities for the state fleet to be zero-emission and beginning December 31, 2030, at least 30% of those vehicles to be zero-emission, 2) requires, if the department finds, in a public hearing on or after December 31, 2026, that it cannot meet the needs of the state while meeting this requirement, the department to disclose this finding at the hearing and to the Legislature, 3)  requires, upon disclosure of this finding, the department to take certain steps to address the issues preventing the department and other state agencies from meeting the state fleet requirement, 4) requires, after a specified time period, if the department finds, in a public hearing, that it still cannot meet the needs of the state after taking those steps, the department to disclose this finding at the hearing and to the Legislature, and 5)  provides that the requirement would be inoperative on the date on which the department notifies the Legislature.

AB 1073 (Eduardo Garcia): California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program

The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program, upon appropriation from the Greenhouse Gas Reduction Fund, funds zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and related projects, as specified. Existing law requires the State Air Resources Board, when funding a specified class of projects, to allocate, until January 1, 2018, no less than 20% of that available funding to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology. This bill instead requires the state board, when funding a specified class of projects, to allocate, until January 1, 2023, no less than 20% of that available funding to support the early commercial deployment or existing zero- and near-zero-emission heavy-duty truck technology.

California Environmental Quality Act (CEQA):

AB 246 (Santiago): Jobs and Economic Improvement Through Environmental Leadership Act 2011

This bill: 1) requires each local implementing agency, as defined, to develop an integrated alerting and notification system, in coordination with local emergency management agencies, UPAs, local first response agencies, petroleum refineries, and the public, to be used to notify the community surrounding a petroleum refinery in the event of an incident at the refinery warranting the use of the notification system, 2) requires the notification system to be configured, as specified, and used to alert and notify the communities surrounding a petroleum refinery, including schools, public facilities, hospitals, transient and special needs populations, as defined, and residential care homes, 3) If an integrated alerting and notification system has not been developed and implemented by January 1, 2018, requires the local implementing agency to determine an appropriate notification system to be developed consistent with these provisions and, on or before January 1, 2019, to develop a schedule for developing and implementing the notification system, 4) requires a UPA to ensure that the notification system developed is consistent with the UPA’s area plan and specified regulations regarding the California Accidental Release Prevention Program, 5) requires a petroleum refinery to immediately call the emergency 9-1-1 telephone number and notify the UPA, in the event of an incident warranting the use of the notification system, 6) requires a UPA, in coordination with the local implementing agency, to establish a fee, separate from the single fee system described above, that a petroleum refinery would be required to pay in an amount to cover the reasonable and necessary costs for the design, building, and installation of the notification system, and a fee, as part of the single fee system levied on a petroleum refinery, in an amount sufficient to cover the reasonable and necessary costs for the ongoing operation and maintenance of the notification system, 7) requires the Governor’s Office of Emergency Services to work with the local implementing agencies and the UPAs to develop a model memorandum of understanding between adjacent jurisdictions for integration of alerting and notification systems that will operate across jurisdictional boundaries, and 8) requires the local implementing agency to ensure that there are agreements with adjacent jurisdictions to coordinate alerts, notifications, and messaging when a release crosses or threatens to cross jurisdictional boundaries, and to document those agreements in the unified program agency area plan.

Electric Vehicles:

AB 1082 (Burke): Electric Vehicle Charging Infrastructure: Schools

This bill: 1) authorizes an electrical corporation to file with the PUC, by July 30, 2018, a pilot program proposal for the installation of vehicle charging stations at school facilities and other educational institutions, giving priority to school facilities and other educational institutions located in disadvantaged communities, as defined, 2) requires the PUC to review, modify if appropriate, and decide whether to approve a pilot program proposal filed by an electrical corporation by December 31, 2018, 3) provides that a school district, county office of education, private school, or other educational institution choosing to participate in the pilot program would have authority to establish guidelines for use of the charging stations installed pursuant to the approved pilot program, including use of these charging stations by faculty, students, and parents before, during, and after school hours at those times that the school facilities or other educational institutions are operated for purposes of providing education or school-related activities, and by others present for those activities, 4) requires that construction and maintenance of the charging stations and infrastructure be managed in coordination with the school district, county office of education, private school, or other educational institution, 5) requires that the approved pilot program include a reasonable mechanism for cost recovery by the electrical corporation if the PUC makes specified findings, and 6) requires that a school facility or other educational institution receiving charging stations pursuant to the approved pilot program participate in a time-variant rate approved by the PUC and authorizes the school district, county office of education, private school, or other educational institution to require users of the charging stations to pay electricity costs.

AB 1083 (Burke): Electric Vehicle Charging Infrastructure: State Parks and Beaches

This bill: 1) authorizes a large electrical corporation (one with 100,000 or more service connections in California), in consultation with the Department of Parks and Recreation, PUC, Energy Commission, and State Air Resources Board, to file with the PUC, by July 30, 2018, a pilot program proposal for the installation of electric vehicle charging stations at state parks and beaches within its service territory, 2) requires the PUC to review and approve, modify if appropriate, and decide whether to approve a pilot program proposal filed by a large electrical corporation by December 31, 2018, 3) requires the department to determine which state parks or beaches are suitable for charging stations, 4) requires that the approved pilot program include a reasonable mechanism for cost recovery by the large electrical corporation, if the commission makes specified findings, 5) authorizes an electrical corporation with less than 100,000 service connections in California to file a pilot program proposal for the installation of electric vehicle charging stations at state parks and beaches within its service territory, 6) requires an electrical corporation to prioritize in its proposal those state parks and beaches that serve residents of disadvantaged communities, as defined, and 7) requires that state parks and beaches receiving charging stations pursuant to the approved pilot program participate in a time-variant rate approved by the PUC.

AB 1452 (Muratsuchi): Public Parking: Exclusive Electric Charging and Parking Spaces

This bill: 1) authorizes a local authority, by ordinance or resolution, to designate stalls or spaces on a public street within its jurisdiction for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, and 2) also authorizes the removal of a vehicle from a designated stall or space on a public street if the vehicle is not connected for electric charging purposes, under specified conditions.

Energy Efficiency:

AB 797 (Irwin): Solar Thermal Systems

This bill: 1) revises the Solar Water Heating and Efficiency Act of 2007 program to, among other things, promote the installation of solar thermal systems throughout the state, reserve 50% of the total program budget for the installation of solar thermal systems in low-income residential housing or in buildings in disadvantaged communities, expand the program to homeowners that lack access to natural gas and rely on propane or wood burning to fulfill their space heating, water heating, and cooking needs who are being considered to receive natural gas and who reside in the San Joaquin Valley communities identified by the commission, authorize the commission to limit eligibility based on income levels, requires an assessment of the entire program through July 31, 2019, to be completed by December 31, 2019, to determine both the cost effectiveness of the program and the program’s effectiveness in achieving program goals, and extend the operation of the program through July 31, 2020, and 2) requires the governing body of each local publicly owned utility providing gas service, until August 1, 2020, to adopt, implement, and finance a solar thermal system incentive program.

Energy Program Investment Charge:

AB 523 (Reyes): Electric Program Investment Charge: Allocation

This bill: 1) requires the Energy Commission, until July 1, 2023, to allocate at least 25% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, disadvantaged communities, as defined, 2) requires the Energy Commission to allocate at least an additional 10% of the moneys in the fund for technology demonstration and deployment at sites located in, and benefiting, low-income communities, as defined, 3) requires the Energy Commission, under the EPIC program, to take into account adverse localized health impacts of proposed projects to the greatest extent possible, and give preference for funding to clean energy projects that benefit residents of low-income or disadvantaged communities, and 4) requires the annual report regarding the operation of the EPIC program to include a description of the impact on program administration resulting from awarding funds to disadvantaged and low-income communities pursuant to the above provisions, including any information that would help the Legislature determine whether to reauthorize those allocations beyond June 30, 2023.

AB 1400 (Friedman): EPIC and PIER Investments: Microgrid Prohibition of Fossil Fuel Generators

The California Constitution establishes the Public Utilities Commission (“PUC”), with jurisdiction over all public utilities, as defined. Existing decisions of the PUC institute an Electric Program Investment Charge (“EPIC”) to fund renewable energy and research, development, and demonstration programs. Existing law creates in the State Treasury the Electric Program Investment Charge Fund to be administered by the State Energy Resources Conservation and Development Commission (“Energy Commission”) and requires the PUC to forward to the Energy Commission at least quarterly moneys for those EPIC programs the PUC has determined should be administered by the Energy Commission for deposit in the fund. Existing law requires the Energy Commission, in administering moneys in the fund for research, development, and demonstration programs, to develop and implement the EPIC program for the purpose of awarding funds to projects that may lead to technological advancement and breakthroughs to overcome barriers that prevent the achievement of the state’s statutory energy goals and that may result in a portfolio of projects that are strategically focused and sufficiently narrow to make advancement on the most significant technological challenges. Existing law requires the Energy Commission to develop, implement, and administer the Public Interest Research, Development, and Demonstration (“PIER”) Program to provide support for a full range of research, development, and demonstration activities to advance energy science or technologies that, as determined by the Energy Commission, are not adequately provided for by competitive and regulated energy markets. This bill, for projects related to the deployment of microgrids, prohibits recipients of moneys awarded under the above 2 programs from expending those moneys for the purchase of fossil fuel generators.

Financing:

SB 242 (Skinner): Property Assessed Clean Energy Program (PACE)

Existing law authorizes a public agency, or an entity that administers a Property Assessed Clean Energy (“PACE”) financing program on behalf of and with the written consent of a public agency, to issue PACE bonds that are secured by voluntary contractual assessments, voluntary special taxes, or special taxes on property to assist property owners in financing the installation of distributed generation renewable energy sources, electric vehicle charging infrastructure, or energy or water efficiency improvements.  This bill: 1) requires a program administrator, before a property owner executes an assessment contract, as defined, to make an oral confirmation that at least one owner of the property has a copy of specified documents and forms related to the contract, and to provide an oral confirmation of the key terms of an assessment contract with the property owner on the call or an authorized representative of the owner on the call that contains specified information, 2) requires a program administrator to record the oral confirmation, and to retain that recording for a specified period of time, 3) requires a program administrator to ask if the property owner would prefer the oral confirmation be provided in a language other than English, and would require the program administrator to deliver the oral confirmation in the property owner’s language or via an interpreter chosen by the property owner in order for the contract to proceed, and would require the program administrator to provide the property owner with the translation of specified documents, 4) prohibits a program administrator from waiving or deferring the first payment on an assessment contract, and would require that a property owner’s first assessment payment be due no later than the fiscal year following the fiscal year in which the installation of the efficiency improvement is completed, 5) prohibits a contractor or other 3rd party from advertising the availability of an assessment contract that is administered by a program administrator, or from soliciting property owners on behalf of the program administrator, unless specified requirements are met, 6) prohibits a program administrator from providing direct or indirect cash payments or anything of a material value to a contractor or 3rd party that is in excess of the actual price charged to the property owner for the sale or installation of efficiency improvements financed by an assessment contract, except for reimbursement of bona fide and reasonable training expenses related to PACE financing, as provided, 7) also prohibits a program administrator from providing direct or indirect cash payments or anything of a material value to a property owner that is explicitly conditioned upon the property owner entering into the assessment contract, 8) prohibits a program administrator, contractor, or other 3rd party from making any representation as to the tax deductibility of an assessment contract, unless that representation is consistent with applicable state and federal law, 9) prohibit a program administrator from providing information that discloses specified information relating to the property owner or the property, 10) prohibits a contractor from providing a different price for a project financed by a PACE assessment than the contractor would provide if paid in cash by the property owner, 11) makes it unlawful to commence work under a home improvement contract if the property owner entered into the home improvement contract based on the reasonable belief that the work would be covered by the PACE program, and the property owner rescinds the PACE financing within the 3-day time period described above, 12)  requires a contractor who violates that provision to restore the property to its original condition, and to return any money, property, and other consideration back to the property owner, 13) authorizes a property owner to waive his or her right to cancel for a contract that the property owner initiated for emergency repair or immediately necessary repair, as provided, 14) requires a program administrator, for each PACE program that it administers, to submit reports to the public agency by a specified time that contains specified information regarding that program, and 15) includes findings that the changes proposed by this bill address a matter of statewide concern, and therefore shall apply to all cities and counties, including charter cities.

AB 1284 (Dababneh): PACE: Program Administrators

This bill: 1) renames the “California Finance Lenders Law” the “California Financing Law,” and would require specified criteria related to the assessment contract to be satisfied before a program administrator approves an assessment contract for recordation by a public agency, including that all property taxes on the applicable property be current, the applicable property to not have specified debt recorded, that the property owner be current on specified debt and to have not been a party to a bankruptcy proceeding within a specified time, that the financing of the assessment, as well as the total value of all debt on the property, not exceed a specified amount, and that the terms of the assessment contract not exceed certain limitations, 2) commencing on April 1, 2018, prohibits a program administrator from approving an assessment contract for funding and recording by a public agency unless the program administrator makes a reasonable good faith determination that the property owner has a reasonable ability to pay the PACE assessments, subject to specified requirements and procedures, 3) requires a program administrator to comply with the requirements of the California Financial Information Privacy Act, 4) commencing on January 1, 2019, requires a program administrator that administers a PACE program on or behalf of a public agency to be licensed by the Commissioner of Business Oversight (Commissioner) under the California Financing Law, 5) requires a program administrator to comply with licensure requirements that are similar to those of a finance lender or broker as described above, 6) requires a program administrator licensee to comply with similar requirements to those of finance lenders and brokers as to the conduct of his or her business, including display of his or her license, location of his or her business, maintenance and preservation of his or her records, reporting, including filing a specified annual report under oath, prohibiting making false or misleading statements, and advertising, 7) provides that the exemptions described above do not apply to a program administrator, 8) requires a program administrator to establish and maintain a process for the enrollment of a PACE solicitor and a PACE solicitor agent, including requiring a PACE solicitor or a PACE solicitor agent to meet specified minimum background checks, and would prohibit a program administrator from enrolling a PACE solicitor or a PACE solicitor agent if the program administrator makes specified findings, 9) requires a program administrator to establish and maintain a process to promote and evaluate the compliance of a PACE solicitor and a PACE solicitor agent with applicable law, and to establish and maintain a process to cancel the enrollment of a PACE solicitor or PACE solicitor agents who fail to meet minimum qualifications, 9) require a program administrator to establish and maintain a training program for PACE solicitor agents, in accordance with certain requirements, 10) authorizes the commissioner to take disciplinary actions against a program administrator that are similar to the disciplinary provisions described above for a finance lender or broker, including authorizing the commissioner to conduct an examination under oath, and would subject a program administrator to the enforcement authority of the commissioner for specified violations, 11) authorizes the commissioner, if during the course of an inspection, examination, or investigation of a program administrator the commissioner has cause to believe that the program administrator, PACE solicitor, or PACE solicitor agent may have committed a violation of the California Financing Law or that certain conditions are met, to take specified actions to investigate a PACE solicitor or a PACE solicitor agent, including authorizing the commissioner to conduct an examination under oath, 12) authorizes the commissioner to take disciplinary actions against a PACE solicitor or a PACE solicitor agent that violates any provision of the California Financing Law, subject to certain requirements and procedures, 13) provides that if the person subject to an investigation under these provisions complies with the commissioner’s demands, or otherwise reaches a mutually agreeable resolution of any issues, then any examinations and correspondence related to that investigation is confidential, 14) requires a program administrator to submit to the commissioner information beneficial to evaluating various aspects of the PACE program to be included in a specified annual report, as provided, 15) authorizes the commissioner, by rule, to require a program administrator to use a real-time registry or database system for tracking PACE assessments and requires costs associated with the real-time registry or database system to be apportioned among licensed program administrators, as specified, and 16) include findings that the changes proposed by this bill address a matter of statewide concern and is not a municipal affair, and shall therefore apply equally to all cities, including charter cities.

Greenhouse Gas/Climate Change:

AB 20 (Kalra): Public Employee Retirement Systems: Divestment from Dakota Access Pipeline

This bill, among other things: 1) requires the boards of administration of the Public Employees’ Retirement System and the State Teachers’ Retirement System to make a specified report, on or before April 1, 2018, to the Legislature and the Governor regarding investments in the Dakota Access Pipeline, as defined, and 2) declares the intent of the Legislature that the boards, on or before April 1, 2018, review and consider factors related to tribal sovereignty and indigenous tribal rights as part of the boards’ investment policies related to environmental, social, and governance issues, 3)  provides that it does not require a board to take any action unless the board determines in good faith that the action is consistent with the board’s fiduciary responsibilities established in the constitution, and 4) makes additional related legislative findings and declarations.

SB 150 (Allen):  Regional Transportation Plans, GHG Targets, and VMT

Existing law requires certain transportation planning activities by designated regional transportation planning agencies, including development of a regional transportation plan. Certain of these agencies are designated under federal law as metropolitan planning organizations. Existing law requires metropolitan planning organizations to adopt a sustainable communities strategy or alternative planning strategy, subject to specified requirements, as part of a regional transportation plan, which is to be designed to achieve certain targets for 2020 and 2035 established by the State Air Resources Board for the reduction of greenhouse gas (“GHG”) emissions from automobiles and light trucks in the region. Existing law requires the state board to prepare, approve, and update a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions. This bill: 1) requires the state board, by September 1, 2018, and every 4 years thereafter, to prepare a report that assesses progress made by each metropolitan planning organization in meeting the regional GHG emission reduction targets set by the state board, 2) requires the report to include changes to GHG emissions in each region and data-supported metrics for the strategies utilized to meet the targets, 3) requires that report to include a discussion of best practices and the challenges faced by the metropolitan planning organizations in meeting the targets, including the effect of state policies and funding, and 4) requires the report to be developed in consultation with the metropolitan planning organizations and affected stakeholders, and to be transmitted to the Assembly Committee on Transportation, the Assembly Committee on Natural Resources, the Senate Committee on Transportation and Housing, and the Senate Committee on Environmental Quality.

Oil and Petroleum:

AB 1197 (Limón): Oil Spill Contingency Plans

The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including drills and preparedness, and oil spill containment and cleanup, and to represent the state in any coordinated response efforts with the federal government. The act requires owners or operators of specified facilities and owners or operators of certain vessels to prepare and implement an oil spill contingency plan, containing specified provisions, that has been submitted to, and approved by, the administrator. Existing law provides for the rating of oil spill response organizations (OSROs) by the administrator pursuant to specified provisions and requires an oil spill contingency plan to identify at least one rated OSRO for each rating level established pursuant to those provisions. This bill: 1) no longer requires an oil spill contingency plan to identify at least one rated OSRO for each rating level and would instead require the plan to identify at least one OSRO rated pursuant to those provisions, and would authorize an owner or operator to rely on its own response equipment and personnel, if they have been rated by the administrator, as specified, 2) authorizes a spill management team (SMT), as defined, to apply to the administrator for a certification of that SMT’s response capabilities, 3) requires the administrator to establish criteria for certifying an SMT based on the SMT’s capacity to respond to spills and manage spills effectively, review applications for SMT certification, and certify SMTs, as specified, 4) authorizes the administrator to charge a reasonable administrative fee to process an application for, or renewal of, a certification, 5) requires the administrator to adopt regulations to implement these provisions as appropriate, and 6) requires an oil spill contingency plan to identify at least one certified SMT, certified by the administrator pursuant to the provisions described above, and would authorize an owner or operator to rely on its own spill management team that has been certified by the administrator, as specified.

SB 809 (Committee on Natural Resources and Water): Nature Resources

Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law defines, among other things, “active observation well,” “idle well,” and “long-term idle well” for the purposes of provisions relating to the regulation of oil and gas. Existing law, for purposes of regulating oil and gas activities, divides the state into 6 districts, the boundaries of which are fixed by the Director of Conservation. Existing law requires the State Oil and Gas Supervisor to appoint a chief deputy and at least one district deputy for each district and to prescribe their duties.
This bill instead would require the director to fix the number and boundaries of the districts, and would authorize the director and supervisor to redefine the districts as needed to ensure the efficient administration of provisions regulating oil and gas. The bill, among other things: 1) requires the director and supervisor to solicit public input before revising the districts, 2) narrows the definitions of “idle well” and “long-term idle well” by excluding active observation wells from those definitions, 3) revises the qualifications for the chief deputy and each district deputy, 4) changes the reporting date for a comprehensive report on well stimulation treatments in the exploration and production of oil and gas resources in California that is prepared by the State Oil and Gas Supervisor and transmitted to the Legislature from on or before January 1 to on or before July 30 of each year, and 5) deletes obsolete provisions regarding the creation of a certain Internet Web site by the division.

SB 44 (Jackson): Coastal Legacy Oil and Gas Well Removal and Remediation

This bill: 1) upon appropriation of moneys by the Legislature, requires the Public Lands Commission to, within 2 years, administer a coastal hazard and legacy oil and gas well removal and remediation program, as specified, 2) authorizes the commission to seek and accept on behalf of the state any gift, bequest, devise, or donation whenever the gift and the terms and conditions thereof will aid in actions undertaken to administer that program, 3) requires the commission, on or before January 1 of each year, until January 1, 2026, to submit a report to the Legislature on the activities and accomplishments of the program from the prior year, 4) requires the commission, on or before January 1, 2027, to submit a report to appropriate committees in the Legislature that covers the life of the program and includes information necessary to aid the Legislature in determining the effectiveness of the program and the extent to which funding for the program should be reauthorized, 5) makes these provisions inoperative on July 1, 2028, 6) requires that, for the 2018–19 fiscal year, out of those funds deposited into the General Fund by the commission, the sum of $2,000,000 be transferred to the Land Bank Fund and be available, upon appropriation in the annual Budget Act, for the purpose of implementing the coastal hazard and legacy oil and gas well removal and remediation program, and 7) requires that, for each fiscal year from the 2019–20 fiscal year to the 2027–28 fiscal year, inclusive, an amount sufficient to bring the unencumbered balance of the Land Bank Fund available for the purpose of implementing the program to $2,000,000 be transferred to that fund and be available, upon an appropriation in the annual Budget Act, for the purpose of implementing the program.

SB 724 (Lara): Oil and Gas Wells and Production Facilities

This bill: 1) extends the time period to commence operations from one year to 24 months before the notice is deemed canceled, would prohibit the notice from being extended, and would require the cancellation to be noted in the division’s records, 2) if the operator of an idle well has eliminated more wells than required in the prior 2 years under the plan, authorizes the supervisor to deduct from the new requirement in the plan the net total of long-term idle wells eliminated in excess of those previously required, 3) instead provides that the moneys in the fund are continuously appropriated to the department for expenditure to mitigate a hazardous or potentially hazardous condition, by well plugging and abandonment, decommissioning production facilities, or both, at a well of a feepaying operator, 4) because the bill would expand the purposes for which moneys in a continuously appropriated fund may be used by no longer limiting those uses to attendant production facilities, it makes an appropriation, 5) authorizes a city or county to request from the supervisor a list of all idle wells, as defined, within its jurisdiction, 6) authorizes the supervisor or district deputy to order the decommissioning of a production facility that has been deserted, 7) because a violation of an order issued under these provisions would be a crime, the bill imposes a state-mandated local program, 8) expands this authorization to allow the supervisor to order or undertake certain operations, as applicable, to be carried out on any property in the vicinity of which, or on which, is located any well or facility that the supervisor determines to be a hazardous well, an idle-deserted well, a hazardous facility, or a deserted facility, as defined, 9) raise the cap on spending for these purposes from $1,000,000 to $3,000,000 in any one fiscal year, for the 2018–19 fiscal year to the 2021–22 fiscal year, inclusive, 10) requires these moneys to be used exclusively for plugging and abandoning hazardous or idle-deserted wells and decommissioning hazardous or deserted facilities and would prohibit the moneys from being used for nonwell or nonproduction facility-related activities and payments, 11) requires the division to develop criteria for determining the priority of plugging and abandoning hazardous or idle-deserted wells and decommissioning hazardous or deserted facilities to be remediated pursuant to these provisions, and would exempt the development of those criteria from the Administrative Procedure Act, 12) requires the department to report on October 1, 2020, to the Legislature on the estimated number of hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities remaining, the estimated costs of abandoning or decommissioning those wells and facilities, and a timeline for future well abandonment and decommissioning of facilities with a specific schedule of goals, and, as part of that report, provide recommendations to the Legislature for improving and optimizing the involvement of local agencies in the process of plugging and abandoning wells and decommissioning facilities, and 13) requires the department to provide the Legislature with an update to this report on October 1, 2023, containing specified information.

Safety/Security:

AB 1649 (Muratsuchi): Oil Refinery: Public Safety

Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection, consisting of various boards, offices, and departments, and vests the agency with authority over various environmental matters. This bill: 1) provides for the California Environmental Protection Agency, in consultation with specified federal, state, and local agencies, to examine ways to improve public and worker safety through enhanced oversight of refineries and to strengthen emergency preparedness in anticipation of any future refinery incident, 2) requires the California Environmental Protection Agency, in consultation with those agencies, to facilitate coordination among those agencies to protect the public, fence line communities, and refinery workers from risks associated with refinery operations throughout the state, and 3) requires the California Environmental Protection Agency to hold at least 2 public meetings a year, as specified, to provide members of the public with current information on refinery safety and to receive information from the public regarding health and safety concerns associated with refinery operations.

AB 1646 (Muratsuchi): Hazardous Waste: Integrated Alerting and Notification System

This bill: 1) requires each local implementing agency, as defined, to develop an integrated alerting and notification system, in coordination with local emergency management agencies, UPAs, local first response agencies, petroleum refineries, and the public, to be used to notify the community surrounding a petroleum refinery in the event of an incident at the refinery warranting the use of the notification system, 2) requires the notification system to be configured, as specified, and used to alert and notify the communities surrounding a petroleum refinery, including schools, public facilities, hospitals, transient and special needs populations, as defined, and residential care homes, 3) If an integrated alerting and notification system has not been developed and implemented by January 1, 2018, requires the local implementing agency to determine an appropriate notification system to be developed consistent with these provisions and, on or before January 1, 2019, to develop a schedule for developing and implementing the notification system, 4) requires a UPA to ensure that the notification system developed is consistent with the UPA’s area plan and specified regulations regarding the California Accidental Release Prevention Program, 5) requires a petroleum refinery to immediately call the emergency 9-1-1 telephone number and notify the UPA, in the event of an incident warranting the use of the notification system, 6) requires a UPA, in coordination with the local implementing agency, to establish a fee, separate from the single fee system described above, that a petroleum refinery would be required to pay in an amount to cover the reasonable and necessary costs for the design, building, and installation of the notification system, and a fee, as part of the single fee system levied on a petroleum refinery, in an amount sufficient to cover the reasonable and necessary costs for the ongoing operation and maintenance of the notification system, 7) requires the Governor’s Office of Emergency Services to work with the local implementing agencies and the UPAs to develop a model memorandum of understanding between adjacent jurisdictions for integration of alerting and notification systems that will operate across jurisdictional boundaries, and 8) requires the local implementing agency to ensure that there are agreements with adjacent jurisdictions to coordinate alerts, notifications, and messaging when a release crosses or threatens to cross jurisdictional boundaries, and to document those agreements in the unified program agency area plan.

Waste/Recycling:

AB 245 (Quirk): Hazardous Waste: Enforcement

Existing law permits the Department of Toxic Substances Control or an agency authorized to implement and enforce certain laws relating to hazardous materials, known as a unified program agency, to enforce the Hazardous Waste Control Law. Existing law authorizes the department or a unified program agency to issue an order that requires a violation to be corrected and imposes an administrative penalty when there is a violation of the hazardous waste control laws, laws regulating hazardous substances, or any permit, rule, regulation, standard, or requirement issued or adopted pursuant to those laws. Under existing law, a person who does not comply with the order is subject to a civil penalty of not more than $25,000 for each day of noncompliance. In lieu of an administrative penalty, existing law makes any person who intentionally or negligently makes a false statement or representation for purposes of compliance with the hazardous waste control laws, violates a provision of the hazardous waste control laws, disposes or causes the disposal of a hazardous waste at an unauthorized site, or treats or stores a hazardous waste at an unauthorized site liable for a civil penalty not to exceed $25,000, as specified. This bill increases these administrative and civil penalties to $70,000 and would make nonsubstantive changes in these provisions.

Vetoed:

The Governor vetoed the following bills.

AB 36 (Nazarian): Eligible Fuel Cell Electrical Generating Facilities: Energy Metering

Under existing law, the Public Utilities Commission (“PUC”) has regulatory authority over public utilities, including electrical corporations, as defined. Existing law establishes a specified energy metering program that is available to an eligible fuel cell customer-generator, as defined. A fuel cell electrical generating facility is eligible for the program if it has a capacity of not more than 5 megawatts. Existing law requires that an electrical corporation file with the PUC a standard tariff providing for this energy metering for eligible fuel cell customer-generators and make the tariff available to eligible fuel cell customer-generators upon request, on a first-come-first-served basis, until the total cumulative rated generating capacity of the eligible fuel cell electrical generating facilities receiving service pursuant to the tariff reaches a specified level. Existing law provides that a fuel cell electrical generating facility is not eligible for the tariff unless it commences operation on or before December 31, 2021. Statutory provisions establish procedures for making that reimbursement. This bill would have: 1) changed “eligible fuel cell electrical generating facility” to “eligible electrical generating facility” and would additionally make eligible a facility that electromechanically converts fuel to electricity for purposes of the above-described energy metering program, and 2) made conforming and nonsubstantive changes. A veto message can be found here.

SB 702 (Stern): State Fleet Alternative Vehicles: Bicycles

Existing law requires the State Energy Resources Conservation and Development Commission, the Department of General Services, and the State Air Resources Board, in consultation with other state agencies deemed necessary, to develop and adopt fuel-efficiency specifications governing the purchase by the state of motor vehicles and replacement tires that, on an annual basis, will reduce petroleum consumption of the state vehicle fleet to the maximum extent practicable and cost effective. Existing law also requires the Secretary of the Government Operations Agency, in consultation with the Department of General Services and other appropriate state agencies that maintain or purchase vehicles for the state fleet, including the campuses of the California State University, to develop and implement a plan to improve the overall state fleet’s use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles by reducing or displacing the consumption of petroleum products by the state fleet. Existing law requires a state agency that has under its jurisdiction or control a parking facility that is available to state officers and employees and to private persons who desire to conduct business with a state agency, to construct, operate, and maintain bicycle and moped parking facilities for the use of bicycle and moped riders. This bill would have: 1) required the Department of General Services to expand the State Employee BikeShare Program to state employees throughout the state at any location that the department determines that it is feasible and reasonable to do so, and 2) required the department to prepare and administer a program that offers state employees the ability to use bicycles during the workday, as specified. A veto message can be found here.

AB 248 (Reyes):  Hazardous Waste Facilities: Permits

This bill would have: 1) required for a hazardous waste facilities permit that will expire on or before July 1, 2020, the owner or operator of a facility intending to extend the term of that permit to submit a Part A and Part B application for a permit renewal at least 6 months before the fixed term of the permit expires, 2) required, for a hazardous waste facilities permit that will expire after July 1, 2020, the owner or operator to submit a Part A and Part B application for a permit renewal at least 2 years before the fixed term of the permit expires, 3) provided that if a Part A and Part B renewal application and any other requested information has been submitted at least 6 months or at least 2 years, as applicable, before the end of the permit’s fixed term, the permit is deemed extended until the application is approved or denied and the owner has exhausted all applicable rights of appeal, and 4) required the Department of Toxic Substance Control, no later than 90 days after receiving an application for a hazardous waste facilities permit, to post on its Internet Web site a timeline with the estimated dates of key milestones in the application review process, to note on its Internet Web site that these dates are estimates, and to update the dates as needed. A veto message can be found here.

AB 1179 (Kalra): Hazardous Waste Facilities: Inspections

Existing law requires and authorizes the Department of Toxic Substances Control, and a local health or local public officer designated by the Director of Toxic Substances Control, to, among other things, enter and inspect a factory, plant, construction site, disposal site, transfer facility, or any other place where hazardous wastes are stored, handled, processed, disposed of, or being treated to recover resources.  This bill would: 1) require the department adopt regulations establishing inspection frequencies for permitted hazardous waste treatment, storage, and disposal facilities, hazardous waste generators, and hazardous waste transporters, as specified, and 2) require the inspection frequency for a hazardous waste land disposal facility to be no less than 2 times per calendar year and, for any other permitted hazardous waste treatment, storage, or disposal facility, no less than once per calendar year. A veto message can be found here.