(a) In order to provide sufficient support for low-emission
vehicle projects at the start of the program, the commission shall
administer a demonstration project that provides limited funds for
fueling infrastructure. Expenditures from the fund for this
demonstration program shall not exceed two million five hundred
thousand dollars ($2,500,000). In addition to providing necessary
financial assistance to a limited number of infrastructure projects,
the purpose of the infrastructure demonstration program is to assess
whether funding for infrastructure is an appropriate and
cost-effective use of public funds.
(b) The commission shall solicit applications for a balanced mix
of demonstration projects involving fueling and electrification
infrastructure that is linked to covered vehicle projects and that is
consistent with program goals. The commission, in consultation with
participating districts, shall make every effort to coordinate
infrastructure projects with covered vehicle projects representing a
broad variety of fuels, technologies, and applications as appropriate
and consistent with this chapter. Infrastructure projects that begin
to dispense qualifying fuel on or after the date the program is
implemented are eligible for funding under the program. The
commission may also subvene infrastructure funds to districts to
solicit applications and to expend the funds in accordance with this
section. The commission shall have oversight and reporting
responsibility for any funds that are subvened pursuant to this
subdivision.
(c) Any fueling infrastructure funded under the program shall be
approved for funding by both the commission and the applicable
district. The commission, in consultation with the districts, shall
develop guidelines and criteria for infrastructure projects to be
funded under the program.
(d) The purchase and installation of equipment at a site that is
designed primarily to dispense qualifying fuel is eligible for
funding under the program. "Qualifying fuel" includes any liquid or
gaseous fuel, other than standard gasoline or diesel, which is
ultimately dispensed into covered vehicles that provide NO x
reductions in California, and which were introduced into operation in
California on or after the date the program is implemented.
(e) Infrastructure projects to dispense qualifying fuel are
eligible for funding from the Infrastructure Demonstration Program at
a rate of seven dollars ($7) in one-time funding per million Btus of
qualifying fuel to be dispensed annually. Projects that cannot
demonstrate sufficient annual fuel throughput to qualify for a one
hundred thousand dollar ($100,000) award, that is, over 14,280
million Btus per year, are not eligible for funding. Projects that
can demonstrate an annual throughput of more than 14,280 million Btus
per year, however, may request funding in amounts less than one
hundred thousand dollars ($100,000). Private access facilities are
eligible for a maximum award of up to four hundred thousand dollars
($400,000). Public access or limited public access facilities are
eligible for a maximum award of up to six hundred thousand dollars
($600,000). Cofunding may be required to receive the applicable award
amount. Infrastructure project awards from the fund, net of taxes,
shall not exceed the total cost of the infrastructure project less
any other applicable grants or tax credits.
(f) Infrastructure projects to dispense qualifying fuel shall meet
all of the following criteria:
(1) Provide documentation, signed by owners of vehicles that will
use the fuel, to demonstrate that an approvable amount of qualifying
fuel is expected to be dispensed over a period of at least five
years.
(2) Be designed to meet current industry standards and codes and
any applicable regulations.
(3) If the owner of the fuel storage and dispensing equipment will
be fueling vehicles the owner does not own, the owner shall provide
one or more statements, signed by the proposed fueling equipment
owner and by the owners of those vehicles that are referenced in the
demonstration of adequate fuel throughput pursuant to subdivision
(e), that mutually satisfactory arrangements regarding fuel price
have been made. If the owner and operator of the fueling equipment
will use the equipment exclusively to fuel his or her own vehicles,
no documentation regarding fuel pricing arrangements is required.
(g) Infrastructure projects to dispense electricity to covered
vehicles shall be eligible for funding from the Infrastructure
Demonstration Program at the rate of a minimum of four thousand
dollars ($4,000), up to a maximum of ten thousand dollars ($10,000)
per charger infrastructure charge port including installation for
each qualifying charger. A "qualifying charger" is any charger that
dispenses 4,000 kWh or more of energy per year, through each of one
or more charging ports, into one or more covered vehicles that
provide NO x reductions in California. Awards shall be based on a
sliding scale of four thousand dollars ($4,000) to fourteen thousand
dollars ($14,000) per charger port for qualifying chargers that
dispense between 4,000 kWh and 15,000 kWh of electricity per port. In
order for the project to be eligible for funding, documentation
shall be provided, signed by owners of the vehicles that will use the
charger, to demonstrate that the claimed kilowatt hours of
electricity are expected to be dispensed per year for a period of at
least five years. Funding shall be limited to a maximum award of two
hundred thousand dollars ($200,000) per business per location.
Infrastructure project awards from the fund, net of taxes, shall not
exceed the total cost of the infrastructure project less any other
applicable grants or tax credits.
(h) The commission, in consultation with the state board and the
districts, shall develop a simple, standardized application package
for a project to be funded from the Infrastructure Demonstration
Program. In addition to the application form, an application package
shall include a brief description of the program, the projects that
are eligible for the funding that is available, the selection
criteria and evaluation process, the documentation that is required,
and who to contact for more information, as well as an example of the
contract that an applicant will be required to execute before
receiving a grant award. The application form shall require as much
information as the commission determines is necessary to properly
evaluate each project, but shall otherwise minimize the information
required. An applicant shall not be required to calculate tons of
emissions reduced or cost-effectiveness as part of the application.
Application packages shall be finalized and published as soon as
practicable.
(i) The commission shall make staff or technical support
contractors available on an as-needed basis within available
budgetary resources to assist project proponents to address issues
common to infrastructure projects eligible for funding. Those issues
may involve permitting and safety requirements.
(j) As part of the annual program reports required pursuant to
Section 44295, the commission shall report on the use of
Infrastructure Demonstration Program funds. The commission shall
report on facilities funded, how those facilities are supporting
covered vehicle projects, fuel or electricity dispensed from each
facility, and associated emissions reductions and cost-effectiveness.
The commission shall calculate a total cost-effectiveness of NO x
reductions from the vehicles that fuel at facilities funded from the
Infrastructure Demonstration Program. This total cost-effectiveness
shall include program funding provided to vehicles as well as funding
provided from the Infrastructure Demonstration Program.