Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Except as provided in section
2341 (a) through
(c) above, the following requirements are
applicable to all projects:
(a)
Local, State, and Federal Laws
Projects must be in compliance with all local, state, and
federal laws, ordinances, and regulations in order to be eligible for
funding.
(b)
Full
Fuel Cycle Analysis
Projects must be evaluated using Appendix A of the August
2007 Full Fuel Cycle Assessment: Well-to-Wheels Energy Inputs, Emissions, and
Water Impacts, CEC- 600-2007-004-REV, which is hereby incorporated by
reference, that was prepared to support the December 2007 State Alternative
Fuels Plan, CEC-600-2007-011-CMF, adopted by the ARB on November 15, 2007,
Resolution 07 51. Vehicle and equipment projects where the replacement
vehicle/equipment uses the same fuel as the baseline vehicle/equipment are not
subject to this requirement. Eligibility of a project must be determined using
the following process:
(1)
Emissions Determination -- Full fuel cycle emissions for both
the project fuel and baseline fuel must be determined using scenario year 2012
for GHG's, criteria pollutants, and total weighted toxic air contaminants.
(A) The funding agency must use the fuel
pathway specific to the project if a single fuel pathway is
applicable.
(B) The funding agency
must use the average of the fuel pathways available for the project if multiple
fuel pathways are applicable.
(C)
The baseline fuel pathways must be determined using the appropriate fuel and
vehicle/equipment combination set forth in Table 1. Fuel projects must use the
baseline fuel pathway for the baseline fuel and vehicle/equipment combination
that the project fuel would be displacing.
Table 1. Baseline Fuel Pathways
| Baseline Fuel and
Vehicle/Equipment | Baseline Fuel Pathway |
| Gasoline model year 2009 or older
vehicle/equipment. | Appendix A, page A-3, Reformulated Gasoline (RFG)
Marginal, internal combustion engine vehicle (ICEV) |
| Gasoline model year 2010 or newer
vehicle/equipment. | Appendix A, page A-7, RFG Marginal, ICEV, |
| Diesel model year 2009 or older
vehicle/equipment. | Appendix A, page A-31, Diesel, California ultra low
sulfur diesel (CA ULSD), ICEV |
| Diesel model year 2010 or newer
vehicle/equipment. | Appendix A, page A-35, Diesel, CA ULSD, ICEV |
(2)
Emissions Evaluation--
The following criteria must be used for evaluating project emissions using the
full fuel cycle analysis:
(A)
Comparison of GHG emissions--
The total full fuel cycle GHG emissions of the project fuel
pathway must be less than or equal to those of the baseline fuel pathway to be
eligible for funding.
(B)
Comparison of criteria pollutants and air toxic emissions--
If emissions of one or more criteria pollutants or total
weighted toxic air contaminants occurring in California from the project fuel
pathway are greater than the baseline fuel pathway, then the funding agency
must choose one of the two following options:
1. The funding agency may choose to not fund
the project, or
2. The funding
agency may choose to conduct a supplemental evaluation to weigh the potential
merits of the project. The supplemental evaluation must include all of the
following:
a. The emission disbenefits of the
criteria pollutant(s) or toxic air contaminants must be fully mitigated by
emission benefits of the identical criteria pollutant(s) or toxic air
contaminants from other concurrently funded projects in the same air basin
within the same funding cycle to be eligible for funding.
b. The total criteria pollutant emissions and
total weighted toxic air contaminant emissions occurring in California from the
project fuel pathway must be less than or equal to the baseline fuel pathway to
be eligible for funding.
c. The
supplemental evaluation must be published for review and comment by the public
at least 30 calendar days prior to being presented in a publicly noticed
meeting. The supplemental evaluation must be made available, at a minimum,
through the funding agency's website. The meeting must include a discussion of
the pollutant trade offs of the proposed project including any potential health
impacts, a description of the proposed fuel/technology, an analysis
demonstrating that the emission increases are fully mitigated in accordance
with section
2343(b)(2)(B)2.a.,
the project's role in furthering the objectives of HSC sections 44270 through
44274, and how the proposed project supports the State of California's climate
change goals.
d. The Energy
Commission will consult with ARB in conducting any supplemental
evaluations.
(c)
Permitting, licensing, and
environmental review
Projects that require licensing, permitting, environmental
review, or other entitlement or precondition of use from local, state, or
federal entities are subject to the requirements set forth herein:
(1) Projects must comply with all applicable
licensing, permitting, conditional use, environmental review, emission offsets,
and mitigation strategy requirements that may be required under local, state,
or federal law including, but not limited to, the federal Clean Air Act
(42 United States Code
section 7401 et seq.), National Environmental
Policy Act of 1969 (42
United States Code section 4321 et seq.),
California Clean Air Act of 1988 (Statutes of 1988, Chapter 1568, HSC section
39000 et seq.), Air Toxics "Hot Spots" Information and Assessment Act of 1987
(Statutes of 1987, Chapter 1252, HSC section 44300 et seq.), California
Environmental Quality Act (CEQA)(Statutes of 1970, Chapter 1433, Public
Resources Code sections
21000-
21178)
and CEQA Guidelines (Title 14 California Code of Regulations section 15000 et
seq.), CEC Regulations (Title 20 California Code of Regulations, Division 2,
Chapter 5, section 1701 et seq.), and local rules or ordinances.
(2) For each project, all identified air
quality impacts and mitigation strategies must be determined at the project
level with the governmental entities that have regulatory or other jurisdiction
over the project pursuant to local, state, and federal laws, ordinances, and
regulations.
(3) The grantee must
commit in the funding agreement with the funding agency to implementing all air
pollution mitigation strategies, if any, recommended or required by the
applicable jurisdictional and regulatory entities.
(4) All mitigation commitments must be set
forth in writing prior to the grantee receiving the first funding
allocation.
(5) Documentation of
required mitigation must be maintained by the funding agency for any project
selected for funding. The funding agency must monitor the status of all
required mitigation through completion of the project and maintain records
according to the provisions set forth in section
2344.
(6) Localized health impacts must be
considered when selecting projects for funding. The funding agency must
consider environmental justice consistent with state law and complete the
following:
(A) For each fiscal year, the
funding agency must publish a staff report for review and comment by the public
at least 30 calendar days prior to approval of projects. The report must
analyze the aggregate locations of the funded projects, analyze the impacts in
communities with the most significant exposure to air contaminants or localized
air contaminants, or both, including, but not limited to, communities of
minority populations or low-income populations, and identify agency outreach to
community groups and other affected stakeholders.
(B) Projects must be selected and approved
for funding in a publicly noticed meeting.
(d)
Specific Requirements for Vehicle
and Equipment Projects
Tailpipe emissions for vehicle and equipment projects must be
evaluated in accordance with the following requirements:
(1)
Emissions Evaluation
The replacement vehicle/equipment tailpipe emissions must be
equal to or less than those of the baseline vehicle/equipment for each
pollutant for which the technology has an emission or verification standard in
order to be eligible for funding.
(2)
Determination of
Vehicle/Equipment Emissions(A)
Emissions must be determined using the appropriate tailpipe emissions analysis
inputs set forth in Table 2
Table 2: Vehicle/Equipment Tailpipe Emissions Analysis
Inputs
| Project Type | Baseline
Emissions | Replacement Emissions |
| New vehicle/equipment purchase | Current
vehicle/equipment model year emission factors | Emission factors of
vehicle/equipment to be purchased |
| Vehicle/equipment replacement or Engine
repower | Emission factors of the vehicle/equipment or engine being
replaced | Emission factors of vehicle/equipment or engine to be
purchased |
| Vehicle retrofit | Emission factors of the
existing vehicle/equipment without retrofit | Emissions of
vehicle/equipment with retrofit installed, based on retrofit verification |
(B)
Technologies that have not been certified or verified at the time of project
evaluation may be considered for funding in accordance with the provisions set
forth in (3) below.
(3)
Emerging technologies
Emerging technologies shall be eligible for funding on a
case-by-case basis. A case-by-case evaluation consists of the following steps
and criteria:
(A) The project
applicant must document in writing to the funding agency that the technology
has no emissions disbenefit when compared to the baseline
vehicle/equipment.
(B) The
documentation may include, but is not limited to, test data, engineering
specifications, or scientific studies relating to the technology being
funded.
(C) The funding agency must
evaluate the documentation to ensure that it presents evidence that the
technology results in no air quality disbenefit in emissions of criteria
pollutants, toxic air contaminants, or greenhouse gases (GHG). The funding
agency may consult with other entities in this
evaluation.
(e)
Specific requirements for fuel projects
All fuel projects must comply with applicable fuel
specifications and future, new fuel specifications set forth in Title 13,
California Code of Regulations, Division 3, Chapter 5, Article 1, Subarticle 2
and Article 3. Fuels with no fuel specification are exempt from this
provision.
1. New section
filed 6-4-2009; operative 6-4-2009 pursuant to Government Code section 11343.4
(Register 2009, No. 23).
Note: Authority cited: 39600, 39601 and 44271, Health and
Safety Code. Reference: Sections 39600, 39601 and 44271, Health and Safety
Code.
