BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 THIRD READING


          Bill No:  AB 1493
          Author:   Pavley (D), et al
          Amended:  6/28/02 in Senate
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT


           SUBJECT  :    Vehicular Air Pollution Standards:  Greenhouse

           SOURCE  :     Bluewater Network
                      Coalition for Clean Air
                      Natural Resources Defense Council
                      Sierra Club


           DIGEST  :     Senate floor amendments  of 6/28/02 delete the  
          provisions of the bill.  This bill now requires the State  
          Air Resources Board to develop and adopt, by January 1,  
          2005, regulations that achieve the maximum feasible and  
          cost-effective reduction of greenhouse gas emissions from  
          passenger, light-duty, and other non-commercial vehicles.

          NOTE:  This bill is similar, with modifications, to AB 1058  
          which passed the Senate 22-13 on May 2, 2002.

           ANALYSIS  :    Existing law:

          1.Under the federal Clean Air Act, prohibits states from  
            adopting or enforcing standards for the control of new  
            motor vehicles or engines subject to the Act.  However,  
            the Act also authorizes the Administrator of the US EPA  
            to waive this prohibition and to allow states to adopt  
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            standards if specified conditions are met.

          2.Under the Energy Policy and Conservation Act of 1975, and  
            the federal Motor Vehicle Information and Cost Savings  
            Act, authorizes the secretary of transportation to  
            establish standards for new motor vehicle fuel economy  
            (so-called "corporate average fuel economy" or "CAFE"  
            standards) and generally prohibits states from enacting  
            such standards.   

          3.Under Division 26 of the Health and Safety Code, requires  
            the state Air Resources Board (ARB) to endeavor to  
            achieve the maximum degree of emission reductions  
            possible from vehicular and other mobile sources in order  
            to achieve attainment of state ambient air standards by  
            the earliest practicable date.

          4.Under Chapter 6 of the Health and Safety Code, requires  
            the Secretary for Resources to establish a California  
            Climate Action Registry (CCAR) for the purposes of  
            allowing parties which emit greenhouse gas emissions  
            voluntarily to register reductions in their emissions in  
            order to have them recognized by the State of California  
            in any future regulatory or treaty protocol requiring the  
            reduction in greenhouse gases.

          5.Also under that chapter, requires the Governor to appoint  
            a seven-member board of directors to oversee operation of  
            the registry and establishes detailed procedures for the  
            quantification and registering of emissions registered  
            under the registry's auspices and requires the State  
            Energy Resources Conservation and Development Commission  
            (The California Energy Commission or CEC) to undertake  
            specified activities relative to the implementation of  
            the CCAR.

          6.Under the Warren-Alquist Energy Resources Conservation  
            and Development Act, requires the CEC to prepare an  
            inventory of greenhouse gas emissions produced by the  
            state, to update that inventory by specified dates, to  
            establish a task force and advisory committee on climate  
            change, and to coordinate state responses to the impacts  
            of climate change on the state.  








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          This bill:

          1. Not later than January 1, 2005, requires the state  
             Air Resources Board (ARB) to develop and adopt  
             regulations to achieve the maximum feasible and  
             cost-effective reduction in greenhouse gas  
             emissions from passenger, light-duty, and other  
             non-commercial vehicles.

          2. Prohibits the regulations from taking effect prior  
             to January 1, 2006 and applying to vehicles  
             manufactured prior to the 2009 model year.

          3. Requires the board to consider the technological  
             feasibility of the regulations and the impacts of  
             the regulations on the economy of the state,  
             including specified job, business, and competitive  
             impacts.

          4. Requires the regulations to provide the maximum  
             feasible flexibility for persons complying with the  
             regulations to use alternative methods of  
             compliance provided the ARB determines that such  
             methods achieve the equivalent or greater reduction  
             in greenhouse gas emissions as the standards  
             adopted by the board.

          5. Prohibits the ARB's regulations from:

          A.Imposing mandatory taxes or fees under this  
            provisions of law or any other provision of law.

          B.Banning the sale of any vehicle category, including  
            sport utility vehicles and light duty trucks.

          C.Imposing vehicle weight reductions.

          D.Imposing trip reduction measures or land use  
            restrictions.

          1. Requires the ARB to conduct specified public  
             hearings in the state in low-income and minority  
             communities.








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          2. Requires the ARB to provide emission reduction  
             credits (ERC's) for actions taken to reduce  
             greenhouse gases from motor vehicles prior to  
             implementation of the regulations and requires that  
             such credits be approved by the board and recorded  
             with the California Climate Action Registry (CCAR).

          3. Requires the ARB to coordinate its regulations with  
             the activities of the CCAR and the California  
             Energy Commission (CEC) pursuant to their statutory  
             responsibilities.

          4. Within 10 days of adopting the regulations,  
             requires the ARB to transmit the regulations to the  
             appropriate policy and fiscal committees of the  
             Legislature for review, authorizes the Legislature  
             to hold at least one public hearing to review the  
             regulations and authorizes the Legislature to enact  
             legislation modifying the regulations before they  
             take effect.

          5. Provides that if the federal government adopts a  
             vehicular greenhouse gas standard for new motor  
             vehicles which the ARB determines to be equivalent  
             or greater in its effectiveness, the board may  
             elect not to adopt standards pursuant to the bill's  
             provisions.

          6. Defines "greenhouse gases" to mean those gases  
             listed under the provisions of law governing the  
             CCAR.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/28/02)

          Bluewater Network (co-source)
          Coalition for Clean Air (co-source)
          Natural Resources Defense Council (co-source)
          Sierra Club (co-source)
          American Lung Association
          Architects/Designers/Planners for Social Responsibility
          Bay Area Air Quality Management District







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          California League of Conservation Voters
          Cities of Los Angeles and San Jose
          Clean Power Campaign
          Community Alliance with Family Farmers
          East Bay Municipal Utility District
          Planning and Conservation League
          Sacramento Municipal Utility District
          Coalition of Organizations
          160 individual letters from all across the U.S.

           OPPOSITION  :    (Verified  6/28/02)

          Alliance of Automobile Manufacturers
          Automobile Club of Southern California
          California Chamber of Commerce
          California Council for Environmental and Economic Balance
          California Manufacturers and Technology Association
          California Motor Car Dealers Association
          California State Automobile Association
          Daimler Chrysler Corporation
          General Motors Corporation
          San Diego Industrial Environmental Association
          Tustin Chamber of Commerce
          Western States Petroleum Association  
           California League of Off Road Voters

           ARGUMENTS IN SUPPORT  :    According to the author's office  
          and the bill's supporters, global warming is an  
          international problem with the potential for state and  
          local impacts including:  reductions in the state's water  
          supply due to changes in the snow pack levels in the Sierra  
          Nevada Mountains and the timing of spring run-off; adverse  
          health impacts from increases in air pollution caused by  
          higher temperatures; adverse impacts upon agriculture and  
          food production as a result of projected changes in the  
          amount and consistency of water supplies; potential damage  
          to the state's extensive coastline and ocean ecosystems due  
          to the increase in storms and rise in sea level.

          Supporters state that the United States is home to four  
          percent of the world's population and 25 percent of the  
          greenhouse gasses. California is the fifth largest economy  
          in the world.  Passenger vehicles and light-duty trucks are  
          responsible for approximately 40 percent of the total  







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          greenhouse gas pollution in the state.  More than twice the  
          amount of greenhouse gas pollution from motor vehicles in  
          other parts of the country.  California has a long history  
          of being the first in the nation to take action to protect  
          public health and the environment with respect to motor  
          vehicles and federal law recognizes the authority of  
          California to take such actions.  Finally, the supporters  
          note that they have gone to great pains to amend the bill  
          to address most of the opponents stated concerns.

          The purpose of this measure is to direct the ARB to adopt  
          standards to address greenhouse gas emissions from motor  
          vehicles.

           ARGUMENTS IN OPPOSITION  :    Opponents to this measure state  
          that the provisions of the bill "offers no California  
          emissions benefits, are bad for consumers, and are  
          pre-empted by federal law."  They note that regulation of  
          vehicular fuel economy is a federal issue into which the  
          states may not intrude,  and that enactment of the measure  
          will almost certainly lead to litigation in the federal  
          courts over its effect.  The opponents also state that the  
          bill will limit consumer choice and increase the costs of  
          vehicles in the state while potentially making vehicles  
          less safe due to presumed reductions in their weight to  
          increase fuel efficiency and reduce emissions.  Opponents  
          further state that, unlike standards for criteria air  
          pollutants, greenhouse gas emission standards will not  
          assist in improving public health since greenhouse gas  
          emissions disperse evenly in the atmosphere.  They state  
          that California's contribution to greenhouse gas emissions  
          is less than one tenth of one percent and that adoption of  
          the standards will have a "negligible effect" on climate  
          change worldwide.  Finally, opponents state that California  
          voters rejected greenhouse gas emission controls in 1990  
          when they defeated Proposition 128, the so-called "Big  
          Green" Initiative.  
           

          CP:sl  6/28/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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