Article 11 - Enhanced Fleet Modernization Program

California Health and Safety Code — §§ 44124-44127

Sections (6)

§ 44124

Amended by Stats. 2019, Ch. 271, Sec. 1. (SB 400) Effective January 1, 2020.

For purposes of this article, the following terms have the following meanings:

(a)“Car sharing” has the same meaning as in Section 44258.

(b)“Clean Cars 4 All” means the Clean Cars 4 All Program established pursuant to Section 44124.5.

(c)“Disadvantaged community” means a community identified pursuant to Section 39711.

(d)“High polluter” has the same meaning as in Section 44090.

(e)“Low-income state resident” or “low-income motor vehicle owner” has the same meaning as the definition of “low-income motor vehicle owner” in

Section 44062.1.

(f)“Mobility option” means a voucher for public

transit, car sharing, bike sharing, or electric bicycles.

(g)“Program” means the enhanced fleet modernization program established pursuant to subdivision (a) of Section 44125.

§ 44124.5

Amended by Stats. 2022, Ch. 375, Sec. 2.5. (SB 1382) Effective January 1, 2023.

(a)The Clean Cars 4 All Program is hereby established and is to be administered by the state 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.

(b)Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board shall set specific, measurable goals for the replacement of passenger vehicles and light- and medium-duty trucks that are high polluters.

(c)The state board shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall

include, but need not be limited to, updating the guidelines for Clean Cars 4 All no later than January 1, 2019.

(d)The regulation implementing this section shall ensure all of the following:

(1)Where applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(2)The state board shall coordinate with districts and local nonprofit and community organizations, prioritizing those organizations that have a strong and ongoing local presence in areas within the district, to identify barriers to accessing Clean Cars 4 All and to develop outreach protocols and metrics to assess the success of outreach across the districts.

(3)The replacement or a mobility option is consistent with paragraph (6) of subdivision (d) of Section 44125.

(4)Provisions enhance the prescreening of applicants to Clean Cars 4 All, if determined by the state board to be appropriate.

(5)By January 1, 2025, all hybrid vehicles purchased using an incentive are capable of plug-in charging.

(e)The state board shall ensure that incentives awarded under the Clean Cars 4 All Program are awarded in accordance with Section 44258.7.

§ 44125

Amended by Stats. 2023, Ch. 319, Sec. 3. (AB 126) Effective October 7, 2023.

(a)(1) No later than July 1, 2009, the state board, in consultation with the bureau, shall adopt a program to commence on January 1, 2010, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The program shall be administered by the bureau pursuant to guidelines adopted by the state board.

(2)No later than July 1, 2019, the state board shall update the guidelines for the program established pursuant to this subdivision to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans. This subdivision shall apply to only purchasers who are

retiring a light-duty pickup truck.

(b)Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board, in consultation with the bureau, shall set specific, measurable goals for the retirement of passenger vehicles and light- and medium-duty trucks that are high polluters.

(c)(1) The state board, in consultation with the bureau, shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for both the program and Clean Cars 4 All no later than January 1, 2019.

(2)The program shall continue to be administered by the bureau pursuant to guidelines adopted by the state board.

(d)The guidelines shall ensure all of the following:

(1)Vehicles retired pursuant to the program are permanently removed from operation and retired at a dismantler under contract with the bureau.

(2)Districts retain their authority to administer vehicle retirement programs otherwise authorized by law.

(3)The program is available for high-polluter passenger vehicles and light-duty and medium-duty trucks that have been continuously registered in California for two years prior to acceptance into the program or otherwise proven to have been driven primarily in California for the last two years and have not been registered in another state or country in the last

two years. The guidelines may require a vehicle to take, complete, or pass a smog check inspection.

(4)The program is focused where the greatest air quality impact can be identified.

(5)The program is focused on achieving improvements to air quality and benefits to low-income state residents through the retirement of high-polluter passenger motor vehicles owned by low-income state residents.

(6)(A) Compensation for retired vehicles is at least one thousand five hundred dollars ($1,500) for a low-income motor vehicle owner and not more than one thousand dollars ($1,000) for all other motor vehicle owners.

(B)Replacement or a

mobility option may be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired pursuant to subparagraph (A). For low-income motor vehicle owners, compensation toward a replacement vehicle or mobility option shall be no less than two thousand five hundred dollars ($2,500). Compensation toward a replacement vehicle for all other motor vehicle owners shall not exceed compensation for low-income motor vehicle owners.

(C)Compensation for either retired or replacement vehicles or a mobility option for low-income motor vehicle owners may be increased as necessary to maximize the air quality benefits of the program while also ensuring participation by low-income motor vehicle owners. Increases in compensation amounts may be based on factors, including, but not limited to, the age of the retired or replaced

vehicle, the emissions benefits of the retired or replaced vehicle, the emissions impact of any replacement vehicle, participation by low-income motor vehicle owners, and the location of the vehicle in an area of the state with the poorest air quality.

(D)(i) Each replacement vehicle in the program shall be either a plug-in hybrid or zero-emission vehicle unless the state board determines, in consultation with the State Energy Resources Conservation and Development Commission, either of the following:

(I)Electric charging and refueling capabilities are inadequate for drivers whose homes are located in rural areas, multifamily housing, or other use cases deemed appropriate by the State Energy Resources Conservation and Development Commission.

(II) An adequate supply of affordable plug-in hybrid and zero-emission vehicles is not available in the new or secondary markets.

(ii) The state board may use the assessment prepared pursuant to Section 25229 of the Public Resources Code, and may consult with districts, to make the determination pursuant to clause (i).

(7)Cost-effectiveness and impacts on disadvantaged and low-income populations are considered. Program eligibility may be limited on the basis of income to ensure the program adequately serves persons of low or moderate income.

(8)Provisions coordinate the vehicle retirement and replacement and mobility option components of the program with the

vehicle retirement component of the bureau’s Consumer Assistance Program, established pursuant to other provisions of this chapter, and Clean Cars 4 All to ensure vehicle owners participate in the appropriate program to maximize participation and emissions

reductions.

(9)If applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(10)Provisions enhance the prescreening of applicants to the program, if determined by the state board to be appropriate.

(11)Specific steps ensure the vehicle replacement and mobility option component of the program is available in areas designated as federal extreme nonattainment.

(12)A requirement that vehicles eligible for retirement have sufficient remaining life.

Demonstration of sufficient remaining life may include proof of current registration, completing a recent smog check inspection, or completing another test similar to a smog check inspection.

§ 44125.5

Amended by Stats. 2022, Ch. 375, Sec. 3. (SB 1382) Effective January 1, 2023.

Beginning no later than July 1, 2019, and every year thereafter, the state board, for both the program and Clean Cars 4 All, shall collect and post on its internet website all of the following:

(a)The performance of both programs relative to the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(b)An accounting that includes, but need not be limited to, moneys allocated to the program and Clean Cars 4 All and the expenditures of the program and Clean Cars 4 All by region.

(c)A performance analysis broken down by district of the replacement and mobility options component of the program and Clean Cars 4 All to

identify areas to be emphasized when setting future goals or updating the guidelines for the program and Clean Cars 4 All. The analysis shall include all of the following:

(1)Whether a district implementing the replacement and mobility options component of the program or Clean Cars 4 All has a backlog or a waiting list for applicants and recommendations from the district or state board on how to eliminate the backlog or waiting list.

(2)An evaluation of the funding for targeted outreach in low-income or disadvantaged communities, including whether the funding should be enhanced or modified to reach the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(3)How incentive levels and eligibility criteria can be modified to maximize both participation and emissions

reductions.

(4)(A) An assessment identifying populations that are eligible for, but underserved by Clean Cars 4 All. In identifying underserved populations pursuant to this paragraph, the assessment shall, at a minimum, evaluate the participation of households in census tracts shown to be the most impacted in each region, households making less than 225 percent of the federal poverty level, and households that are primarily non-English speaking.

(B)The assessment shall identify barriers preventing the underserved populations identified pursuant to subparagraph (A) from participating in Clean Cars 4 All and propose strategies to overcome those barriers.

§ 44126

Amended by Stats. 2015, Ch. 24, Sec. 14. (SB 83) Effective June 24, 2015.

The Enhanced Fleet Modernization Subaccount is hereby created in the High Polluter Repair or Removal Account. All moneys deposited in the subaccount shall be available, upon appropriation by the Legislature, for both of the following:

(a)To the department and the bureau to establish and implement the program created pursuant to this article.

(b)To the state board to implement and administer the program created pursuant to this article.

§ 44127

Amended by Stats. 2025, Ch. 15, Sec. 4. (SB 127) Effective June 27, 2025.

(a)Upon appropriation by the Legislature, the state board may allocate moneys for the expansion of the replacement component or mobility option component of the program or Clean Cars 4 All from any of the following:

(1)The Enhanced Fleet Modernization Subaccount, created pursuant to Section 44126.

(2)The High Polluter Repair or Removal Account, created pursuant to Section 44091.

(3)The Vehicle Inspection and Repair Fund, created pursuant to Section 9886 of the Business and Professions Code.

(b)Upon appropriation by the Legislature, the state board may allocate

moneys consistent with law for Clean Cars 4 All from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(c)Of the funds made available in Item 3900-101-3228 of the Budget Act of 2021 (Section 118 of Chapter 69 of the Statutes of 2021), Items 3900-101-0001 and 3900-101-3228 of the Budget Act of 2022 (Sections 115 and 116 of Chapter 249 of the Statutes of 2022), and Items 3900-101-0001 and 3900-101-3228 of the Budget Act of 2023 (Sections 110 and 111 of Chapter 38 of the Statutes of 2023) to the state board for the suite of equity transportation programs established under the Charge Ahead California Initiative, including, but not limited to, Clean Cars 4 All, the state board shall maintain funding for each district participating in Clean Cars 4 All, such that if a district has insufficient funds to meet processed demand, the state board shall reallocate moneys to that district to ensure operation is minimally impacted for district Clean Cars 4 All programs.

(d)(1) In allocating funding under Clean Cars 4 All to districts participating in the program, and to the statewide program, the state board shall consider, at a minimum, all of the following metrics:

(A) Number of vouchers

deployed.

(B) Proportion of applications that have been started and resulted in completed replacement transactions or mobility vouchers.

(D) Proportional investment to underserved populations identified pursuant to paragraph (4) of subdivision (c) of Section 44125.5.

(E) Population in eligible Clean Cars 4 All ZIP Codes.

(2)Beginning January 1, 2023, and every year thereafter, the state board shall publish, as part of its funding plan, a report identifying how each criterion was used to allocate funding to districts and to the statewide program.

(e)(1) Up to 10 percent of the moneys allocated by the state board for Clean Cars 4 All may be used for outreach programs in accordance with both of the following requirements:

(A) Before a district allocates more than 5 percent of the moneys received from the state board for Clean Cars 4 All in a fiscal year for outreach, the district shall submit a description to the state board of the

outreach efforts that will be funded with any money above 5 percent of the moneys allocated by the state board and a justification of how the additional funding for outreach will support deployment of Clean Cars 4 All to households in census tracts shown to be the most impacted in each region, households making less than 225 percent of the federal poverty level, households that are primarily non-English speaking, and other underserved populations identified pursuant to paragraph (4) of subdivision (c) of Section 44125.5.

(B) A district that allocates more than 5 percent of the moneys received from the state board for Clean Cars 4 All in a fiscal year for outreach shall submit a report to the state board on the outcome of this expenditure, including a description of outreach efforts that were funded or augmented with any money above 5 percent of the moneys allocated by the state board for Clean Cars 4 All and how that funding supported

deployment of Clean Cars 4 All to households in census tracts shown to be the most impacted in each region, households making less than 225 percent of the federal poverty level, households that are primarily non-English speaking, and other underserved populations identified pursuant to paragraph (4) of subdivision (c) of Section 44125.5.

(2)Documents and information submitted by a district to the state board pursuant to this subdivision shall be for informational purposes only.

(f)(1) Notwithstanding Section 10231.5 of the Government Code, the state board shall report annually to the budget committees of both houses of the Legislature the amount of funding allocated by the state board to the statewide Clean Cars 4 All program and to each district Clean Cars 4 All program and detailed performance metrics consistent with the requirements of subdivision (d)

for the statewide and district Clean Cars 4 All programs, including the number and dollar amount of grants awarded by each district program and by the statewide program and regionally specific information for grant awards made by the administrator under the statewide program.

(2)Notwithstanding Section 9795 of the Government Code, a report prepared pursuant to paragraph (1) shall be submitted as an electronic copy to the committees described in paragraph (1) and posted on the state board’s internet website.