State Codes and Statutes

Statutes > California > Hsc > 39625-39627.5

HEALTH AND SAFETY CODE
SECTION 39625-39627.5



39625.  The Legislature finds and declares as follows:
   (a) In November 2006, the voters approved the Highway Safety,
Traffic Reduction, Air Quality and Port Security Bond Act of 2006,
also known as Proposition 1B, that, among other things, provided one
billion dollars ($1,000,000,000) to reduce emissions associated with
the movement of freight along California's trade corridors.
   (b) Proposition 1B requires these funds to be made available, upon
appropriation by the Legislature and subject to the conditions and
criteria provided by the Legislature, to the State Air Resources
Board in order to reduce the emissions associated with goods
movement.
   (c) Proposition 1B further required these funds to be made
available for emission reductions not otherwise required by law or
regulation. These funds are intended to supplement existing funds
used to finance strategies that reduce emissions and public health
risk associated with the movement of freight commencing at the state'
s seaports and land ports of entry and transported through California'
s trade corridors.
   (d) Tremendous growth in goods movement activity has created a
public health crisis in communities located adjacent to ports and
along trade corridors. It is the intent of the Legislature that these
funds be expended in a manner that reduces the health risk
associated with the movement of freight along California's trade
corridors.
   (e) It is the intent of the Legislature that the state board
maximize the emission reduction benefits, achieve the earliest
possible health risk reduction in heavily impacted communities, and
provide incentives for the control of emission sources that
contribute to increased health risk in the future.
   (f) It is the intent of the Legislature that the state board
develop partnerships between federal, state, and private entities
involved in goods movement to reduce emissions.
   (g) The purpose of this chapter is to establish standards and
procedures for the expenditure of these funds.



39625.01.  This chapter shall be known, and may be cited, as the
Goods Movement Emission Reduction Program.



39625.02.  (a) As used in this chapter and in Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2 of the
Government Code, the following terms have the following meanings:
   (1) "Administrative agency" means the state agency responsible for
programming bond funds made available by Chapter 12.49 (commencing
with Section 8879.20) of Division 1 of Title 2 of the Government
Code, as specified in subdivision (c).
   (2) Unless otherwise specified in this chapter, "project" includes
equipment purchase, right-of-way acquisition, and project delivery
costs.
   (3) "Recipient agency" means the recipient of bond funds made
available by Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code that is responsible for
implementation of an approved project.
   (4) "Fund" shall have the meaning as defined in subdivision (c) of
Section 8879.22 of the Government Code.
   (b) Administrative costs, including audit and program oversight
costs for the agency administering the program funded pursuant to
this chapter, recoverable by bond funds shall not exceed 5 percent of
the program's costs.
   (c) The State Air Resources Board is the administrative agency for
the goods movement emission reduction program pursuant to paragraph
(2) of subdivision (c) of Section 8879.23 of the Government Code.
   (d) The administrative agency shall not approve project fund
allocations for a project until the recipient agency provides a
project funding plan that demonstrates that the funds are expected to
be reasonably available and sufficient to complete the project. The
administrative agency may approve funding for usable project segments
only if the benefits associated with each individual segment are
sufficient to meet the objectives of the program from which the
individual segment is funded.
   (e) Guidelines adopted by the administrative agency pursuant to
this chapter and Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code are intended to provide
internal guidance for the agency and shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
and shall do all of the following:
   (1) Provide for audit of project expenditures and outcomes.
   (2) Require that the useful life of the project be identified as
part of the project nomination process.
   (3) Require that project nominations have project delivery
milestones, including, but not limited to, start and completion dates
for environmental clearance, land acquisition, design, construction
bid award, construction completion, and project closeout, as
applicable.
   (f) (1) As a condition for allocation of funds to a specific
project under Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code, the administrative
agency shall require the recipient agency to report, on a semiannual
basis, on the activities and progress made toward implementation of
the project. The administrative agency shall forward the report to
the Department of Finance by means approved by the Department of
Finance. The purpose of the report is to ensure that the project is
being executed in a timely fashion, and is within the scope and
budget identified when the decision was made to fund the project. If
it is anticipated that project costs will exceed the approved project
budget, the recipient agency shall provide a plan to the
administrative agency for achieving the benefits of the project by
either downscoping the project to remain within budget or by
identifying an alternative funding source to meet the cost increase.
The administrative agency may either approve the corrective plan or
direct the recipient agency to modify its plan.
   (2) Within six months of the project becoming operable, the
recipient agency shall provide a report to the administrative agency
on the final costs of the project as compared to the approved project
budget, the project duration as compared to the original project
schedule as of the date of allocation, and performance outcomes
derived from the project compared to those described in the original
application for funding. The administrative agency shall forward the
report to the Department of Finance by means approved by the
Department of Finance.


39625.1.  As used in this chapter, the following terms have the
following meanings:
   (a) "Applicant" means any local public entity involved in the
movement of freight through trade corridors of the state or involved
in air quality improvements associated with goods movement. For the
purposes of administering a loan or loan guarantee program only, an
applicant may include any state agency.
   (b) "Emission" or "emissions" means emissions including, but not
limited to, diesel particulate matter, oxides of nitrogen, oxides of
sulfur, and reactive organic gases.
   (c) "Emission sources" means one of the following categories of
sources of air pollution associated with the movement of freight
through California's trade corridors: heavy-duty trucks, locomotives,
commercial harbor craft, ocean-going vessels related to freight, and
cargo-handling equipment.
   (d) "Goods movement facility" means airports, seaports, land ports
of entry, freight distribution warehouses and logistic centers,
freight rail systems, and highways that have a high volume of truck
traffic related to the movement of goods, as determined by the state
board.
   (e) "Trade corridors" means any of the following areas: the Los
Angeles/Inland Empire region, the Central Valley region, the Bay Area
region, and the San Diego/border region.



39625.3.  Funding pursuant to this chapter may include grants,
loans, and loan guarantees.



39625.5.  (a) (1) Upon appropriation by the Legislature from the
funds made available by paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code, the state board shall allocate funds
on a competitive basis for projects that are shown to achieve the
greatest emission reductions from each emission source identified in
subdivision (c) of Section 39625.1, not otherwise required by law or
regulation, from activities related to the movement of freight along
California's trade corridors, commencing at the state's airports,
seaports, and land ports of entry.
   (2) Projects eligible for funding pursuant to paragraph (1) shall
include, but are not limited to, the following:
   (A) The replacement, repower, or retrofit of heavy-duty diesel
trucks.
   (B) The replacement, repower, or retrofit of diesel locomotive
engines, with priority given to switching locomotive engines,
provided that before any project is authorized for a locomotive
engine operated and controlled by a railroad company that has entered
into a memorandum of understanding or any other agreement with a
state or federal agency, a local air quality management district, or
a local air pollution control district, including, but not limited
to, the ARB/Railroad Statewide Agreement Particulate Emissions
Reductions Program at California Rail Yards, dated June 2005, the
state board shall determine that the emission reductions that would
be achieved by the locomotive engine are not necessary to satisfy any
mandated emission reduction requirement under any such agreement.
   (C) The replacement, repower, or retrofit of harbor craft that
operates at the state's seaports.
   (D) The provision of on-shore electrical power for ocean freight
carriers calling at the state's seaports to reduce the use of
auxiliary and main engine ship power.
   (E) Mobile or portable shoreside distributed power generation
projects that eliminate the need to use the electricity grid.
   (F) The replacement, repower, or retrofit of cargo handling
equipment that operates at the state's seaports and rail yards.
   (G) Electrification infrastructure to reduce engine idling and use
of internal combustion auxiliary power systems at truck stops,
intermodal facilities, distribution centers, and other places where
trucks congregate.
   (b) (1) The state board shall allocate funds in a manner that
gives priority to emission reduction projects that achieve the
earliest possible reduction of health risk in communities with the
highest health risks from goods movement facilities.
   (2) In evaluating which projects to fund, the state board shall at
a minimum consider all of the following criteria:
   (A) The magnitude of the emission reduction.
   (B) The public health benefits of the emission reduction.
   (C) The cost-effectiveness and sustainability of the emissions
reductions.
   (D) The severity and magnitude of the emission source's
contributions to emissions.
   (E) Regulatory and State Implementation Plan requirements, and the
degree of surplus emissions to be reduced.
   (F) The reduction in greenhouse gases, consistent with and
supportive of emission reduction goals, consistent with existing law.
   (G) The extent to which advanced emission reduction technologies
are to be used.
   (H) The degree to which funds are leveraged from other sources.
   (I) The degree to which the project reduces air pollutants or air
contaminants in furtherance of achieving state and federal ambient
air quality standards and reducing toxic air contaminants.
   (J) The total emission reductions a project would achieve over its
lifetime per state dollar invested.
   (K) Whether an emissions reduction is likely to occur in a
location where emissions sources in the area expose individuals and
population groups to elevated emissions that result in adverse health
effects and contribute to cumulative human exposures to pollution.
   (c) The state board shall ensure that state bond funds are
supplemented and matched with funds from federal, local, and private
sources to the maximum extent feasible.



39626.  (a) (1) The state board shall develop guidelines by December
31, 2007, consistent with the requirements of this chapter, to
implement Section 39625.5, in consultation with stakeholders,
including, but not limited to, local air quality management and air
pollution control districts, metropolitan planning organizations,
port authorities, shipping lines, railroad companies, trucking
companies, harbor craft owners, freight distributers, terminal
operators, local port community advisory groups, community interest
groups, and airports. The guidelines shall, at a minimum, include all
of the following:
   (A) An application process for the funds, and any limits on
administrative costs for the recipient agency, including an
administrative cost limit of up to 5 percent.
   (B) A requirement for a contribution of a specified percentage of
funds leveraged from other sources or in-kind contributions toward
the project.
   (C) Project selection criteria.
   (D) The method by which the state board will consider the air
basin's status in maintaining and achieving state and federal ambient
air quality standards and the public health risk associated with
goods movement-related emissions and toxic air contaminants.
   (E) Accountability and auditing requirements to ensure that
expenditure of bond proceeds, less administrative costs, meets
quantifiable emission reduction objectives in a timely manner, and to
ensure that the emission reductions will continue in California for
the project lifetime.
   (F) Requirements for agreements between applicants and recipients
of funds executed by the state board related to the identification of
project implementation milestones and project completion that ensure
that if a recipient fails to accomplish project milestones within a
specified time period, the state board may modify or terminate the
agreement and seek other remedies as it deems necessary.
   (2) Prior to the adoption of the guidelines, the state board shall
hold no less than one public workshop in northern California, one
public workshop in the Central Valley, and one public workshop in
southern California.
   (b) For each fiscal year in which funds are appropriated for the
purposes of this chapter, the state board shall issue a notice of
funding availability no later than November 30. For the 2007-08
fiscal year, if funds are appropriated for the purposes of this
chapter, the state board shall issue a notice of funding upon
adoption of the guidelines described in subdivision (a).
   (c) (1) After applications have been submitted and reviewed for
consistency with the requirements of this chapter and the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of
2006, the state board shall compile and release to the public a
preliminary list of all projects that the state board is considering
for funding and provide adequate opportunity for public input and
comment.
   (2) The state board shall hold no less than one public workshop in
northern California, one public workshop in the Central Valley, and
one public workshop in southern California to discuss the preliminary
list. This requirement shall not apply to the funds appropriated in
the 2007-08 fiscal year.
   (3) After the requirements of paragraphs (1) and (2) are met, the
state board shall adopt a final list of projects that will receive
funding at a regularly scheduled public hearing.
   (d) Nothing in this chapter authorizes the state board to program
funds not appropriated by the Legislature.




39626.5.  (a) A project shall not be funded pursuant to this chapter
unless both of the following requirements are met:
   (1) The project is sponsored by an applicant.
   (2) The project is consistent with any comprehensive local or
regional plans or strategies to reduce emissions from goods movement
activities in its jurisdiction.
   (b) Notwithstanding Section 16304.1 of the Government Code, an
applicant receiving funds pursuant to this chapter shall have up to
two years from the date that the funds are allocated to the applicant
pursuant to a grant agreement to award the contract for
implementation of a project, or the funds shall revert to the
California Ports Infrastructure, Security, and Air Quality
Improvement Account for allocation as provided in paragraph (2) of
subdivision (c) of Section 8879.23 of the Government Code upon
appropriation by the Legislature. Funds not liquidated within four
years of the date of the award of the contract between the applicant
and the contractor shall revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation as provided in paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code upon appropriation by the
Legislature. Returned funds or unspent funds from obligated contracts
received by the applicant prior to the end of the four-year
liquidation period may be awarded by the applicant to fund other
equipment projects included on the same competitively ranked list
approved by the state board pursuant to the grant agreement, or, if
there are no other eligible projects included on that list, shall be
returned to the state board for reallocation to an applicant by the
state board pursuant to guidelines developed and adopted by the state
board through a public process. These guidelines shall give first
priority to projects that are both in the same emission source
category and in the same trade corridor as the original project, and
second priority to projects that are only in the same trade corridor
as the original project. All funds awarded by the applicant shall be
liquidated within four years of the date of the award of the original
contract or shall revert to the California Ports Infrastructure,
Security, and Air Quality Improvement Account for allocation provided
in paragraph (2) of subdivision (c) of Section 8879.23 of the
Government Code upon appropriation by the Legislature.
   (c) Of the amount appropriated in Item 3900-001-6054 of the Budget
Act of 2007, not more than twenty-five million dollars ($25,000,000)
shall be available to the state board for the purpose of executing
grant agreements directly with ports, railroads, or local air
districts for eligible projects to achieve the earliest possible
health risk reduction from the emission sources identified in
subdivision (c) of Section 39625.1. It is the intent of the
Legislature that funds allocated pursuant to this subdivision be
distributed pursuant to the guidelines adopted by the state board
under Section 39626, and that the state board provide sufficient
opportunity for the public to review and comment on any projects
proposed to be funded pursuant to this subdivision.



39627.  The state board may seek reimbursement for program
administration costs annually through an appropriation in the Budget
Act from funds available pursuant to paragraph (2) of subdivision (c)
of Section 8879.23 of the Government Code.




39627.5.  The state board shall submit an annual report to the
Legislature summarizing its activities related to the administration
of this chapter with the Governor's proposed budget, on January 10,
for the ensuing fiscal year. The summary shall, at a minimum, include
a description of projects funded pursuant to this chapter, the
amount of funds allocated for each project, the location of each
project, the status of each project, and a quantitative description
of the emissions reductions achieved through the project or program.
The state board shall include in this report a description of any
changes to the scope of grant agreements entered into to allocate
funds to an applicant or changes to the award amounts described in a
grant agreement.


State Codes and Statutes

Statutes > California > Hsc > 39625-39627.5

HEALTH AND SAFETY CODE
SECTION 39625-39627.5



39625.  The Legislature finds and declares as follows:
   (a) In November 2006, the voters approved the Highway Safety,
Traffic Reduction, Air Quality and Port Security Bond Act of 2006,
also known as Proposition 1B, that, among other things, provided one
billion dollars ($1,000,000,000) to reduce emissions associated with
the movement of freight along California's trade corridors.
   (b) Proposition 1B requires these funds to be made available, upon
appropriation by the Legislature and subject to the conditions and
criteria provided by the Legislature, to the State Air Resources
Board in order to reduce the emissions associated with goods
movement.
   (c) Proposition 1B further required these funds to be made
available for emission reductions not otherwise required by law or
regulation. These funds are intended to supplement existing funds
used to finance strategies that reduce emissions and public health
risk associated with the movement of freight commencing at the state'
s seaports and land ports of entry and transported through California'
s trade corridors.
   (d) Tremendous growth in goods movement activity has created a
public health crisis in communities located adjacent to ports and
along trade corridors. It is the intent of the Legislature that these
funds be expended in a manner that reduces the health risk
associated with the movement of freight along California's trade
corridors.
   (e) It is the intent of the Legislature that the state board
maximize the emission reduction benefits, achieve the earliest
possible health risk reduction in heavily impacted communities, and
provide incentives for the control of emission sources that
contribute to increased health risk in the future.
   (f) It is the intent of the Legislature that the state board
develop partnerships between federal, state, and private entities
involved in goods movement to reduce emissions.
   (g) The purpose of this chapter is to establish standards and
procedures for the expenditure of these funds.



39625.01.  This chapter shall be known, and may be cited, as the
Goods Movement Emission Reduction Program.



39625.02.  (a) As used in this chapter and in Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2 of the
Government Code, the following terms have the following meanings:
   (1) "Administrative agency" means the state agency responsible for
programming bond funds made available by Chapter 12.49 (commencing
with Section 8879.20) of Division 1 of Title 2 of the Government
Code, as specified in subdivision (c).
   (2) Unless otherwise specified in this chapter, "project" includes
equipment purchase, right-of-way acquisition, and project delivery
costs.
   (3) "Recipient agency" means the recipient of bond funds made
available by Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code that is responsible for
implementation of an approved project.
   (4) "Fund" shall have the meaning as defined in subdivision (c) of
Section 8879.22 of the Government Code.
   (b) Administrative costs, including audit and program oversight
costs for the agency administering the program funded pursuant to
this chapter, recoverable by bond funds shall not exceed 5 percent of
the program's costs.
   (c) The State Air Resources Board is the administrative agency for
the goods movement emission reduction program pursuant to paragraph
(2) of subdivision (c) of Section 8879.23 of the Government Code.
   (d) The administrative agency shall not approve project fund
allocations for a project until the recipient agency provides a
project funding plan that demonstrates that the funds are expected to
be reasonably available and sufficient to complete the project. The
administrative agency may approve funding for usable project segments
only if the benefits associated with each individual segment are
sufficient to meet the objectives of the program from which the
individual segment is funded.
   (e) Guidelines adopted by the administrative agency pursuant to
this chapter and Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code are intended to provide
internal guidance for the agency and shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
and shall do all of the following:
   (1) Provide for audit of project expenditures and outcomes.
   (2) Require that the useful life of the project be identified as
part of the project nomination process.
   (3) Require that project nominations have project delivery
milestones, including, but not limited to, start and completion dates
for environmental clearance, land acquisition, design, construction
bid award, construction completion, and project closeout, as
applicable.
   (f) (1) As a condition for allocation of funds to a specific
project under Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code, the administrative
agency shall require the recipient agency to report, on a semiannual
basis, on the activities and progress made toward implementation of
the project. The administrative agency shall forward the report to
the Department of Finance by means approved by the Department of
Finance. The purpose of the report is to ensure that the project is
being executed in a timely fashion, and is within the scope and
budget identified when the decision was made to fund the project. If
it is anticipated that project costs will exceed the approved project
budget, the recipient agency shall provide a plan to the
administrative agency for achieving the benefits of the project by
either downscoping the project to remain within budget or by
identifying an alternative funding source to meet the cost increase.
The administrative agency may either approve the corrective plan or
direct the recipient agency to modify its plan.
   (2) Within six months of the project becoming operable, the
recipient agency shall provide a report to the administrative agency
on the final costs of the project as compared to the approved project
budget, the project duration as compared to the original project
schedule as of the date of allocation, and performance outcomes
derived from the project compared to those described in the original
application for funding. The administrative agency shall forward the
report to the Department of Finance by means approved by the
Department of Finance.


39625.1.  As used in this chapter, the following terms have the
following meanings:
   (a) "Applicant" means any local public entity involved in the
movement of freight through trade corridors of the state or involved
in air quality improvements associated with goods movement. For the
purposes of administering a loan or loan guarantee program only, an
applicant may include any state agency.
   (b) "Emission" or "emissions" means emissions including, but not
limited to, diesel particulate matter, oxides of nitrogen, oxides of
sulfur, and reactive organic gases.
   (c) "Emission sources" means one of the following categories of
sources of air pollution associated with the movement of freight
through California's trade corridors: heavy-duty trucks, locomotives,
commercial harbor craft, ocean-going vessels related to freight, and
cargo-handling equipment.
   (d) "Goods movement facility" means airports, seaports, land ports
of entry, freight distribution warehouses and logistic centers,
freight rail systems, and highways that have a high volume of truck
traffic related to the movement of goods, as determined by the state
board.
   (e) "Trade corridors" means any of the following areas: the Los
Angeles/Inland Empire region, the Central Valley region, the Bay Area
region, and the San Diego/border region.



39625.3.  Funding pursuant to this chapter may include grants,
loans, and loan guarantees.



39625.5.  (a) (1) Upon appropriation by the Legislature from the
funds made available by paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code, the state board shall allocate funds
on a competitive basis for projects that are shown to achieve the
greatest emission reductions from each emission source identified in
subdivision (c) of Section 39625.1, not otherwise required by law or
regulation, from activities related to the movement of freight along
California's trade corridors, commencing at the state's airports,
seaports, and land ports of entry.
   (2) Projects eligible for funding pursuant to paragraph (1) shall
include, but are not limited to, the following:
   (A) The replacement, repower, or retrofit of heavy-duty diesel
trucks.
   (B) The replacement, repower, or retrofit of diesel locomotive
engines, with priority given to switching locomotive engines,
provided that before any project is authorized for a locomotive
engine operated and controlled by a railroad company that has entered
into a memorandum of understanding or any other agreement with a
state or federal agency, a local air quality management district, or
a local air pollution control district, including, but not limited
to, the ARB/Railroad Statewide Agreement Particulate Emissions
Reductions Program at California Rail Yards, dated June 2005, the
state board shall determine that the emission reductions that would
be achieved by the locomotive engine are not necessary to satisfy any
mandated emission reduction requirement under any such agreement.
   (C) The replacement, repower, or retrofit of harbor craft that
operates at the state's seaports.
   (D) The provision of on-shore electrical power for ocean freight
carriers calling at the state's seaports to reduce the use of
auxiliary and main engine ship power.
   (E) Mobile or portable shoreside distributed power generation
projects that eliminate the need to use the electricity grid.
   (F) The replacement, repower, or retrofit of cargo handling
equipment that operates at the state's seaports and rail yards.
   (G) Electrification infrastructure to reduce engine idling and use
of internal combustion auxiliary power systems at truck stops,
intermodal facilities, distribution centers, and other places where
trucks congregate.
   (b) (1) The state board shall allocate funds in a manner that
gives priority to emission reduction projects that achieve the
earliest possible reduction of health risk in communities with the
highest health risks from goods movement facilities.
   (2) In evaluating which projects to fund, the state board shall at
a minimum consider all of the following criteria:
   (A) The magnitude of the emission reduction.
   (B) The public health benefits of the emission reduction.
   (C) The cost-effectiveness and sustainability of the emissions
reductions.
   (D) The severity and magnitude of the emission source's
contributions to emissions.
   (E) Regulatory and State Implementation Plan requirements, and the
degree of surplus emissions to be reduced.
   (F) The reduction in greenhouse gases, consistent with and
supportive of emission reduction goals, consistent with existing law.
   (G) The extent to which advanced emission reduction technologies
are to be used.
   (H) The degree to which funds are leveraged from other sources.
   (I) The degree to which the project reduces air pollutants or air
contaminants in furtherance of achieving state and federal ambient
air quality standards and reducing toxic air contaminants.
   (J) The total emission reductions a project would achieve over its
lifetime per state dollar invested.
   (K) Whether an emissions reduction is likely to occur in a
location where emissions sources in the area expose individuals and
population groups to elevated emissions that result in adverse health
effects and contribute to cumulative human exposures to pollution.
   (c) The state board shall ensure that state bond funds are
supplemented and matched with funds from federal, local, and private
sources to the maximum extent feasible.



39626.  (a) (1) The state board shall develop guidelines by December
31, 2007, consistent with the requirements of this chapter, to
implement Section 39625.5, in consultation with stakeholders,
including, but not limited to, local air quality management and air
pollution control districts, metropolitan planning organizations,
port authorities, shipping lines, railroad companies, trucking
companies, harbor craft owners, freight distributers, terminal
operators, local port community advisory groups, community interest
groups, and airports. The guidelines shall, at a minimum, include all
of the following:
   (A) An application process for the funds, and any limits on
administrative costs for the recipient agency, including an
administrative cost limit of up to 5 percent.
   (B) A requirement for a contribution of a specified percentage of
funds leveraged from other sources or in-kind contributions toward
the project.
   (C) Project selection criteria.
   (D) The method by which the state board will consider the air
basin's status in maintaining and achieving state and federal ambient
air quality standards and the public health risk associated with
goods movement-related emissions and toxic air contaminants.
   (E) Accountability and auditing requirements to ensure that
expenditure of bond proceeds, less administrative costs, meets
quantifiable emission reduction objectives in a timely manner, and to
ensure that the emission reductions will continue in California for
the project lifetime.
   (F) Requirements for agreements between applicants and recipients
of funds executed by the state board related to the identification of
project implementation milestones and project completion that ensure
that if a recipient fails to accomplish project milestones within a
specified time period, the state board may modify or terminate the
agreement and seek other remedies as it deems necessary.
   (2) Prior to the adoption of the guidelines, the state board shall
hold no less than one public workshop in northern California, one
public workshop in the Central Valley, and one public workshop in
southern California.
   (b) For each fiscal year in which funds are appropriated for the
purposes of this chapter, the state board shall issue a notice of
funding availability no later than November 30. For the 2007-08
fiscal year, if funds are appropriated for the purposes of this
chapter, the state board shall issue a notice of funding upon
adoption of the guidelines described in subdivision (a).
   (c) (1) After applications have been submitted and reviewed for
consistency with the requirements of this chapter and the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of
2006, the state board shall compile and release to the public a
preliminary list of all projects that the state board is considering
for funding and provide adequate opportunity for public input and
comment.
   (2) The state board shall hold no less than one public workshop in
northern California, one public workshop in the Central Valley, and
one public workshop in southern California to discuss the preliminary
list. This requirement shall not apply to the funds appropriated in
the 2007-08 fiscal year.
   (3) After the requirements of paragraphs (1) and (2) are met, the
state board shall adopt a final list of projects that will receive
funding at a regularly scheduled public hearing.
   (d) Nothing in this chapter authorizes the state board to program
funds not appropriated by the Legislature.




39626.5.  (a) A project shall not be funded pursuant to this chapter
unless both of the following requirements are met:
   (1) The project is sponsored by an applicant.
   (2) The project is consistent with any comprehensive local or
regional plans or strategies to reduce emissions from goods movement
activities in its jurisdiction.
   (b) Notwithstanding Section 16304.1 of the Government Code, an
applicant receiving funds pursuant to this chapter shall have up to
two years from the date that the funds are allocated to the applicant
pursuant to a grant agreement to award the contract for
implementation of a project, or the funds shall revert to the
California Ports Infrastructure, Security, and Air Quality
Improvement Account for allocation as provided in paragraph (2) of
subdivision (c) of Section 8879.23 of the Government Code upon
appropriation by the Legislature. Funds not liquidated within four
years of the date of the award of the contract between the applicant
and the contractor shall revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation as provided in paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code upon appropriation by the
Legislature. Returned funds or unspent funds from obligated contracts
received by the applicant prior to the end of the four-year
liquidation period may be awarded by the applicant to fund other
equipment projects included on the same competitively ranked list
approved by the state board pursuant to the grant agreement, or, if
there are no other eligible projects included on that list, shall be
returned to the state board for reallocation to an applicant by the
state board pursuant to guidelines developed and adopted by the state
board through a public process. These guidelines shall give first
priority to projects that are both in the same emission source
category and in the same trade corridor as the original project, and
second priority to projects that are only in the same trade corridor
as the original project. All funds awarded by the applicant shall be
liquidated within four years of the date of the award of the original
contract or shall revert to the California Ports Infrastructure,
Security, and Air Quality Improvement Account for allocation provided
in paragraph (2) of subdivision (c) of Section 8879.23 of the
Government Code upon appropriation by the Legislature.
   (c) Of the amount appropriated in Item 3900-001-6054 of the Budget
Act of 2007, not more than twenty-five million dollars ($25,000,000)
shall be available to the state board for the purpose of executing
grant agreements directly with ports, railroads, or local air
districts for eligible projects to achieve the earliest possible
health risk reduction from the emission sources identified in
subdivision (c) of Section 39625.1. It is the intent of the
Legislature that funds allocated pursuant to this subdivision be
distributed pursuant to the guidelines adopted by the state board
under Section 39626, and that the state board provide sufficient
opportunity for the public to review and comment on any projects
proposed to be funded pursuant to this subdivision.



39627.  The state board may seek reimbursement for program
administration costs annually through an appropriation in the Budget
Act from funds available pursuant to paragraph (2) of subdivision (c)
of Section 8879.23 of the Government Code.




39627.5.  The state board shall submit an annual report to the
Legislature summarizing its activities related to the administration
of this chapter with the Governor's proposed budget, on January 10,
for the ensuing fiscal year. The summary shall, at a minimum, include
a description of projects funded pursuant to this chapter, the
amount of funds allocated for each project, the location of each
project, the status of each project, and a quantitative description
of the emissions reductions achieved through the project or program.
The state board shall include in this report a description of any
changes to the scope of grant agreements entered into to allocate
funds to an applicant or changes to the award amounts described in a
grant agreement.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 39625-39627.5

HEALTH AND SAFETY CODE
SECTION 39625-39627.5



39625.  The Legislature finds and declares as follows:
   (a) In November 2006, the voters approved the Highway Safety,
Traffic Reduction, Air Quality and Port Security Bond Act of 2006,
also known as Proposition 1B, that, among other things, provided one
billion dollars ($1,000,000,000) to reduce emissions associated with
the movement of freight along California's trade corridors.
   (b) Proposition 1B requires these funds to be made available, upon
appropriation by the Legislature and subject to the conditions and
criteria provided by the Legislature, to the State Air Resources
Board in order to reduce the emissions associated with goods
movement.
   (c) Proposition 1B further required these funds to be made
available for emission reductions not otherwise required by law or
regulation. These funds are intended to supplement existing funds
used to finance strategies that reduce emissions and public health
risk associated with the movement of freight commencing at the state'
s seaports and land ports of entry and transported through California'
s trade corridors.
   (d) Tremendous growth in goods movement activity has created a
public health crisis in communities located adjacent to ports and
along trade corridors. It is the intent of the Legislature that these
funds be expended in a manner that reduces the health risk
associated with the movement of freight along California's trade
corridors.
   (e) It is the intent of the Legislature that the state board
maximize the emission reduction benefits, achieve the earliest
possible health risk reduction in heavily impacted communities, and
provide incentives for the control of emission sources that
contribute to increased health risk in the future.
   (f) It is the intent of the Legislature that the state board
develop partnerships between federal, state, and private entities
involved in goods movement to reduce emissions.
   (g) The purpose of this chapter is to establish standards and
procedures for the expenditure of these funds.



39625.01.  This chapter shall be known, and may be cited, as the
Goods Movement Emission Reduction Program.



39625.02.  (a) As used in this chapter and in Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2 of the
Government Code, the following terms have the following meanings:
   (1) "Administrative agency" means the state agency responsible for
programming bond funds made available by Chapter 12.49 (commencing
with Section 8879.20) of Division 1 of Title 2 of the Government
Code, as specified in subdivision (c).
   (2) Unless otherwise specified in this chapter, "project" includes
equipment purchase, right-of-way acquisition, and project delivery
costs.
   (3) "Recipient agency" means the recipient of bond funds made
available by Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code that is responsible for
implementation of an approved project.
   (4) "Fund" shall have the meaning as defined in subdivision (c) of
Section 8879.22 of the Government Code.
   (b) Administrative costs, including audit and program oversight
costs for the agency administering the program funded pursuant to
this chapter, recoverable by bond funds shall not exceed 5 percent of
the program's costs.
   (c) The State Air Resources Board is the administrative agency for
the goods movement emission reduction program pursuant to paragraph
(2) of subdivision (c) of Section 8879.23 of the Government Code.
   (d) The administrative agency shall not approve project fund
allocations for a project until the recipient agency provides a
project funding plan that demonstrates that the funds are expected to
be reasonably available and sufficient to complete the project. The
administrative agency may approve funding for usable project segments
only if the benefits associated with each individual segment are
sufficient to meet the objectives of the program from which the
individual segment is funded.
   (e) Guidelines adopted by the administrative agency pursuant to
this chapter and Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code are intended to provide
internal guidance for the agency and shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
and shall do all of the following:
   (1) Provide for audit of project expenditures and outcomes.
   (2) Require that the useful life of the project be identified as
part of the project nomination process.
   (3) Require that project nominations have project delivery
milestones, including, but not limited to, start and completion dates
for environmental clearance, land acquisition, design, construction
bid award, construction completion, and project closeout, as
applicable.
   (f) (1) As a condition for allocation of funds to a specific
project under Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code, the administrative
agency shall require the recipient agency to report, on a semiannual
basis, on the activities and progress made toward implementation of
the project. The administrative agency shall forward the report to
the Department of Finance by means approved by the Department of
Finance. The purpose of the report is to ensure that the project is
being executed in a timely fashion, and is within the scope and
budget identified when the decision was made to fund the project. If
it is anticipated that project costs will exceed the approved project
budget, the recipient agency shall provide a plan to the
administrative agency for achieving the benefits of the project by
either downscoping the project to remain within budget or by
identifying an alternative funding source to meet the cost increase.
The administrative agency may either approve the corrective plan or
direct the recipient agency to modify its plan.
   (2) Within six months of the project becoming operable, the
recipient agency shall provide a report to the administrative agency
on the final costs of the project as compared to the approved project
budget, the project duration as compared to the original project
schedule as of the date of allocation, and performance outcomes
derived from the project compared to those described in the original
application for funding. The administrative agency shall forward the
report to the Department of Finance by means approved by the
Department of Finance.


39625.1.  As used in this chapter, the following terms have the
following meanings:
   (a) "Applicant" means any local public entity involved in the
movement of freight through trade corridors of the state or involved
in air quality improvements associated with goods movement. For the
purposes of administering a loan or loan guarantee program only, an
applicant may include any state agency.
   (b) "Emission" or "emissions" means emissions including, but not
limited to, diesel particulate matter, oxides of nitrogen, oxides of
sulfur, and reactive organic gases.
   (c) "Emission sources" means one of the following categories of
sources of air pollution associated with the movement of freight
through California's trade corridors: heavy-duty trucks, locomotives,
commercial harbor craft, ocean-going vessels related to freight, and
cargo-handling equipment.
   (d) "Goods movement facility" means airports, seaports, land ports
of entry, freight distribution warehouses and logistic centers,
freight rail systems, and highways that have a high volume of truck
traffic related to the movement of goods, as determined by the state
board.
   (e) "Trade corridors" means any of the following areas: the Los
Angeles/Inland Empire region, the Central Valley region, the Bay Area
region, and the San Diego/border region.



39625.3.  Funding pursuant to this chapter may include grants,
loans, and loan guarantees.



39625.5.  (a) (1) Upon appropriation by the Legislature from the
funds made available by paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code, the state board shall allocate funds
on a competitive basis for projects that are shown to achieve the
greatest emission reductions from each emission source identified in
subdivision (c) of Section 39625.1, not otherwise required by law or
regulation, from activities related to the movement of freight along
California's trade corridors, commencing at the state's airports,
seaports, and land ports of entry.
   (2) Projects eligible for funding pursuant to paragraph (1) shall
include, but are not limited to, the following:
   (A) The replacement, repower, or retrofit of heavy-duty diesel
trucks.
   (B) The replacement, repower, or retrofit of diesel locomotive
engines, with priority given to switching locomotive engines,
provided that before any project is authorized for a locomotive
engine operated and controlled by a railroad company that has entered
into a memorandum of understanding or any other agreement with a
state or federal agency, a local air quality management district, or
a local air pollution control district, including, but not limited
to, the ARB/Railroad Statewide Agreement Particulate Emissions
Reductions Program at California Rail Yards, dated June 2005, the
state board shall determine that the emission reductions that would
be achieved by the locomotive engine are not necessary to satisfy any
mandated emission reduction requirement under any such agreement.
   (C) The replacement, repower, or retrofit of harbor craft that
operates at the state's seaports.
   (D) The provision of on-shore electrical power for ocean freight
carriers calling at the state's seaports to reduce the use of
auxiliary and main engine ship power.
   (E) Mobile or portable shoreside distributed power generation
projects that eliminate the need to use the electricity grid.
   (F) The replacement, repower, or retrofit of cargo handling
equipment that operates at the state's seaports and rail yards.
   (G) Electrification infrastructure to reduce engine idling and use
of internal combustion auxiliary power systems at truck stops,
intermodal facilities, distribution centers, and other places where
trucks congregate.
   (b) (1) The state board shall allocate funds in a manner that
gives priority to emission reduction projects that achieve the
earliest possible reduction of health risk in communities with the
highest health risks from goods movement facilities.
   (2) In evaluating which projects to fund, the state board shall at
a minimum consider all of the following criteria:
   (A) The magnitude of the emission reduction.
   (B) The public health benefits of the emission reduction.
   (C) The cost-effectiveness and sustainability of the emissions
reductions.
   (D) The severity and magnitude of the emission source's
contributions to emissions.
   (E) Regulatory and State Implementation Plan requirements, and the
degree of surplus emissions to be reduced.
   (F) The reduction in greenhouse gases, consistent with and
supportive of emission reduction goals, consistent with existing law.
   (G) The extent to which advanced emission reduction technologies
are to be used.
   (H) The degree to which funds are leveraged from other sources.
   (I) The degree to which the project reduces air pollutants or air
contaminants in furtherance of achieving state and federal ambient
air quality standards and reducing toxic air contaminants.
   (J) The total emission reductions a project would achieve over its
lifetime per state dollar invested.
   (K) Whether an emissions reduction is likely to occur in a
location where emissions sources in the area expose individuals and
population groups to elevated emissions that result in adverse health
effects and contribute to cumulative human exposures to pollution.
   (c) The state board shall ensure that state bond funds are
supplemented and matched with funds from federal, local, and private
sources to the maximum extent feasible.



39626.  (a) (1) The state board shall develop guidelines by December
31, 2007, consistent with the requirements of this chapter, to
implement Section 39625.5, in consultation with stakeholders,
including, but not limited to, local air quality management and air
pollution control districts, metropolitan planning organizations,
port authorities, shipping lines, railroad companies, trucking
companies, harbor craft owners, freight distributers, terminal
operators, local port community advisory groups, community interest
groups, and airports. The guidelines shall, at a minimum, include all
of the following:
   (A) An application process for the funds, and any limits on
administrative costs for the recipient agency, including an
administrative cost limit of up to 5 percent.
   (B) A requirement for a contribution of a specified percentage of
funds leveraged from other sources or in-kind contributions toward
the project.
   (C) Project selection criteria.
   (D) The method by which the state board will consider the air
basin's status in maintaining and achieving state and federal ambient
air quality standards and the public health risk associated with
goods movement-related emissions and toxic air contaminants.
   (E) Accountability and auditing requirements to ensure that
expenditure of bond proceeds, less administrative costs, meets
quantifiable emission reduction objectives in a timely manner, and to
ensure that the emission reductions will continue in California for
the project lifetime.
   (F) Requirements for agreements between applicants and recipients
of funds executed by the state board related to the identification of
project implementation milestones and project completion that ensure
that if a recipient fails to accomplish project milestones within a
specified time period, the state board may modify or terminate the
agreement and seek other remedies as it deems necessary.
   (2) Prior to the adoption of the guidelines, the state board shall
hold no less than one public workshop in northern California, one
public workshop in the Central Valley, and one public workshop in
southern California.
   (b) For each fiscal year in which funds are appropriated for the
purposes of this chapter, the state board shall issue a notice of
funding availability no later than November 30. For the 2007-08
fiscal year, if funds are appropriated for the purposes of this
chapter, the state board shall issue a notice of funding upon
adoption of the guidelines described in subdivision (a).
   (c) (1) After applications have been submitted and reviewed for
consistency with the requirements of this chapter and the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of
2006, the state board shall compile and release to the public a
preliminary list of all projects that the state board is considering
for funding and provide adequate opportunity for public input and
comment.
   (2) The state board shall hold no less than one public workshop in
northern California, one public workshop in the Central Valley, and
one public workshop in southern California to discuss the preliminary
list. This requirement shall not apply to the funds appropriated in
the 2007-08 fiscal year.
   (3) After the requirements of paragraphs (1) and (2) are met, the
state board shall adopt a final list of projects that will receive
funding at a regularly scheduled public hearing.
   (d) Nothing in this chapter authorizes the state board to program
funds not appropriated by the Legislature.




39626.5.  (a) A project shall not be funded pursuant to this chapter
unless both of the following requirements are met:
   (1) The project is sponsored by an applicant.
   (2) The project is consistent with any comprehensive local or
regional plans or strategies to reduce emissions from goods movement
activities in its jurisdiction.
   (b) Notwithstanding Section 16304.1 of the Government Code, an
applicant receiving funds pursuant to this chapter shall have up to
two years from the date that the funds are allocated to the applicant
pursuant to a grant agreement to award the contract for
implementation of a project, or the funds shall revert to the
California Ports Infrastructure, Security, and Air Quality
Improvement Account for allocation as provided in paragraph (2) of
subdivision (c) of Section 8879.23 of the Government Code upon
appropriation by the Legislature. Funds not liquidated within four
years of the date of the award of the contract between the applicant
and the contractor shall revert to the California Ports
Infrastructure, Security, and Air Quality Improvement Account for
allocation as provided in paragraph (2) of subdivision (c) of Section
8879.23 of the Government Code upon appropriation by the
Legislature. Returned funds or unspent funds from obligated contracts
received by the applicant prior to the end of the four-year
liquidation period may be awarded by the applicant to fund other
equipment projects included on the same competitively ranked list
approved by the state board pursuant to the grant agreement, or, if
there are no other eligible projects included on that list, shall be
returned to the state board for reallocation to an applicant by the
state board pursuant to guidelines developed and adopted by the state
board through a public process. These guidelines shall give first
priority to projects that are both in the same emission source
category and in the same trade corridor as the original project, and
second priority to projects that are only in the same trade corridor
as the original project. All funds awarded by the applicant shall be
liquidated within four years of the date of the award of the original
contract or shall revert to the California Ports Infrastructure,
Security, and Air Quality Improvement Account for allocation provided
in paragraph (2) of subdivision (c) of Section 8879.23 of the
Government Code upon appropriation by the Legislature.
   (c) Of the amount appropriated in Item 3900-001-6054 of the Budget
Act of 2007, not more than twenty-five million dollars ($25,000,000)
shall be available to the state board for the purpose of executing
grant agreements directly with ports, railroads, or local air
districts for eligible projects to achieve the earliest possible
health risk reduction from the emission sources identified in
subdivision (c) of Section 39625.1. It is the intent of the
Legislature that funds allocated pursuant to this subdivision be
distributed pursuant to the guidelines adopted by the state board
under Section 39626, and that the state board provide sufficient
opportunity for the public to review and comment on any projects
proposed to be funded pursuant to this subdivision.



39627.  The state board may seek reimbursement for program
administration costs annually through an appropriation in the Budget
Act from funds available pursuant to paragraph (2) of subdivision (c)
of Section 8879.23 of the Government Code.




39627.5.  The state board shall submit an annual report to the
Legislature summarizing its activities related to the administration
of this chapter with the Governor's proposed budget, on January 10,
for the ensuing fiscal year. The summary shall, at a minimum, include
a description of projects funded pursuant to this chapter, the
amount of funds allocated for each project, the location of each
project, the status of each project, and a quantitative description
of the emissions reductions achieved through the project or program.
The state board shall include in this report a description of any
changes to the scope of grant agreements entered into to allocate
funds to an applicant or changes to the award amounts described in a
grant agreement.