(a) For purposes of this section, the following terms mean the following:

(1) “Eligible used vehicle” means a zero- or near-zero-emission vehicle, as those terms are defined in Section 44258, and may include, but need not be limited to, any of the following:

(A) A battery electric vehicle.

(B) A fuel cell vehicle.

(C) A plug-in hybrid vehicle.

(2) “Used vehicle” has the same meaning as set forth in Section 665 of the Vehicle Code.

(3) “Vehicle service contract” has the same meaning as set forth in Section 12800 of the Insurance Code.

(b) The state board shall establish the Zero-Emission Assurance Project (ZAP) by allocating moneys, available upon appropriation from the Legislature in the annual Budget Act or other statute, to provide an applicant with a rebate for the replacement of a battery, fuel cell, or related components for an eligible used vehicle; for a vehicle service contract for the battery, fuel cell, or related components; or for all of these.

(c) A rebate issued pursuant to the Zero-Emission Assurance Project shall be limited to one per vehicle.

(d) The state board shall establish minimum eligibility criteria for an applicant to be eligible for a rebate pursuant to the Zero-Emission Assurance Project based on both of the following:

(1) The relevant vehicle performance criteria, including, but not limited to, all of the following:

(A) Decreased battery storage capacity.

(B) Decreased vehicle range.

(C) Decreased fuel cell power output.

(2) An eligible applicant has an annual household income that is at or below 80 percent of the statewide median income or has a median household income at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.

(e) The state board shall coordinate the Zero-Emission Assurance Project with the Clean Vehicle Rebate Project, established as part of the Air Quality Improvement Program established pursuant to this article, the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44125) of Chapter 5, and the Charge Ahead California Initiative, established pursuant to Chapter 8.5 (commencing with Section 44258), including, but not limited to, all of the following:

(1) Ensuring appropriate outreach and targeting to low- and moderate-income households in an effort to encourage participation.

(2) Expanding financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.

(f) In implementing this section, the state board shall collaborate with other state departments and agencies to enforce safeguards against fraudulent activity by sellers and acquirers of eligible used vehicles that are in accordance with other state laws.

(g) (1) No later than January 1, 2024, the state board shall submit a report to the Legislature that includes, but is not limited to, all of the following:

(A) The number of rebates issued pursuant to the Zero-Emission Assurance Project.

(B) The total cost to administer the Zero-Emission Assurance Project.

(C) A quantitative analysis of the Zero-Emission Assurance Project’s emissions benefits.

(D) A quantitative analysis of the impacts of the Zero-Emission Assurance Project on low-income consumer buyer decisions in the zero- and near-zero-emission vehicle markets.

(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(h) The implementation of this section is contingent on an appropriation of moneys for those purposes in the annual Budget Act or other statute.

(i) This section shall become inoperative on July 31, 2025, and, as of January 1, 2026, is repealed.

(Amended by Stats. 2019, Ch. 497, Sec. 167. (AB 991) Effective January 1, 2020. Repealed as of January 1, 2026, by its own provisions.)