BILL NUMBER: SB 709 CHAPTERED 09/22/03 CHAPTER 483 FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2003 APPROVED BY GOVERNOR SEPTEMBER 22, 2003 PASSED THE SENATE SEPTEMBER 11, 2003 PASSED THE ASSEMBLY SEPTEMBER 10, 2003 AMENDED IN ASSEMBLY SEPTEMBER 8, 2003 AMENDED IN SENATE JUNE 2, 2003 AMENDED IN SENATE MAY 21, 2003 AMENDED IN SENATE MAY 15, 2003 AMENDED IN SENATE APRIL 29, 2003 AMENDED IN SENATE APRIL 21, 2003 INTRODUCED BY Senator Florez FEBRUARY 21, 2003 An act to add Chapter 5.7 (commencing with Section 40600) to Part 3 of Division 26 of the Health and Safety Code, to add Section 9250.16 to the Vehicle Code, and to repeal Section 5 of Chapter 915 of the Statutes of 1994, relating to air quality. LEGISLATIVE COUNSEL'S DIGEST SB 709, Florez. San Joaquin Valley Unified Air Pollution Control District: district board. (1) Existing law establishes the San Joaquin Valley Unified Air Pollution Control District, formed by the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare, and consisting of the Counties of Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare, and that portion of the County of Kern that is within the San Joaquin Valley Air Basin. This bill would authorize the district board to adopt rules and regulations that require the use of best available control technology for new and modified sources of pollution, promote the use of cleaner burning alternative fuels, and encourage and facilitate ridesharing for commuters. The bill would require the district to expand the office of small business to include agriculture assistance, and to establish expedited permit review and project assistance mechanisms relative to clean fuel technologies. By imposing new duties on the district, the bill would impose a state-mandated local program. This bill would require the district board to adopt a schedule of fees to be assessed on areawide or indirect sources of emissions that are regulated, but not subject to permit, by the district, to recover the costs of district programs related to those sources. The bill would authorize the district board to monitor emissions from all stationary agricultural pumps in the district. (2) Existing law authorizes the South Coast Air Quality Management District to impose a $1 fee on the renewal of registration of motor vehicles in the district, to fund its clean-burning fuels program. This bill would authorize the San Joaquin Valley Unified Air Pollution Control District to also impose a $1 fee on the initial registration and renewal of registration of motor vehicles in the district to be used to reduce air pollution from motor vehicles in the district. The bill would require the Department of Motor Vehicles to collect the local fee on behalf of the district. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 5 of Chapter 915 of the Statutes of 1994 is repealed. SEC. 2. Chapter 5.7 (commencing with Section 40600) is added to Part 3 of Division 26 of the Health and Safety Code, to read: CHAPTER 5.7. SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DISTRICT 40600. (a) The San Joaquin Valley Unified Air Pollution Control District formed by the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare pursuant to Chapter 3 (commencing with Section 40150) of Part 3 of Division 26 of the Health and Safety Code, and consisting of the Counties of Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare, and that portion of the County of Kern that is within the San Joaquin Valley Air Basin, is a single integrated agency with all staff under one centralized management structure that is able to implement programs on a basinwide basis, and has all of the following: (1) An individual air pollution control officer who is responsible for the issuance of all permits by the unified district. (2) A single budget for the unified district with resources allocated based on the program needs of the San Joaquin Valley Air Basin. (3) A uniform fee structure. (4) Three hearing boards established pursuant to Section 40800 of the Health and Safety Code. One hearing board shall serve the northern region, one shall serve the central region, and one shall serve the southern region, as defined by the unified district board. Identical policies governing the operation of each hearing board shall be established by the unified district board and shall be binding upon each hearing board. (5) A citizen's advisory committee. (b) Rules and regulations adopted by the San Joaquin Valley Unified Air Pollution Control District are binding on all counties within the unified district. The unified district shall enforce all permits issued by the unified district and all permits issued by the individual county districts prior to formation of the unified district. The unified district shall review, revise, adopt, and implement any air pollution control plans required within the San Joaquin Valley Air Basin by state and federal law. (c) Notwithstanding any other provision of law, the San Joaquin Valley Unified Air Pollution Control District shall be governed by a district board composed of 11 voting members, appointed as follows: (1) Eight members, one of whom shall be appointed by each of the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare. The board of supervisors of each of those counties shall, by majority vote, appoint one of its members to serve as a member of the district governing board. (2) Three city members appointed by the cities within the territory of the unified district. There shall not be more than one city member selected from one county. One city member shall be selected from the northern region, one from the central region, and one from the southern region of the district. Of the three city members, one shall be from a city having a population of less than 20,000, one shall be from a city having a population of not less than 20,000 and not more than 50,000, and one shall be from a city having a population of more than 50,000. 40601. The district board may adopt rules and regulations by the earliest feasible date that do all of the following: (a) Require the use of best available control technology for new and modified sources, and the use of best available retrofit control technology for existing sources. (b) Promote the use of cleaner burning alternative fuels. (c) Encourage and facilitate ridesharing for commuter trips into, out of, and within the district. (d) Require all businesses described below within the district that employ at least 100 people to establish a rideshare program: (1) That are located within an incorporated city with a population of at least 10,000, as determined by the Demographic Research Unit of the Department of Finance. (2) That are located within an incorporated city with a population of less than 10,000, as determined by the Demographic Research Unit of the Department of Finance, or that are located within the unincorporated area of a county, of which more than 50 percent of their employees work at least 2,040 hours per year. 40602. (a) The district shall expand the office of small business, established by the district, to include agriculture assistance, in order to provide administrative and technical services and information to small businesses, farmers, and the public. (b) The office shall do all of the following: (1) Facilitate and encourage compliance with district rules and regulations by small businesses and farmers. (2) Assist small businesses and farmers in applying for permits and variances, and facilitate the participation of small businesses and farmers in the development of rules and regulations and in other proceedings of the district. (3) Provide information on the public health, environmental, and economic effects of district rules and regulations on small businesses and farmers in the district. (4) Make available to small businesses and farmers information regarding alternative processes, cleaner fuels and solvents, and low-cost financing for air pollution control equipment. 40603. (a) The district shall establish expedited permit review and project assistance mechanisms for facilities or projects that are directly related to research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies. (b) The mechanisms shall include all of the following: (1) The issuance of consolidated permits, for both construction and operation, in order to expedite the permitting process. (2) The review and processing of permits on a facility or project basis rather than on an equipment basis, to ensure a single point of contact for the applicant and to allow entire projects to be reviewed and evaluated on a single, consolidated schedule. (3) The establishment of a "fast track" permitting procedure to approve permits in an average of 30 days from receipt of all information requested by the district, except for any of the following facilities: (A) Facilities that may emit significant amounts of toxic air contaminants. (B) Facilities that require public notice. (C) Facilities that require additional review to meet the requirements of the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or the California Clean Air Act of 1988 (Chapter 1568 of the Statutes of 1988). (4) The development and implementation of postconstruction enforcement procedures to ensure that new and modified sources are constructed according to permit requirements. (5) The establishment of a liaison program to assist facilities participating in research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies with preparing permit applications, complying with other district administrative procedures, and identifying and applying for state, federal, district, or other available funds set aside for electric and other clean fuel vehicle related projects. (c) For purposes of this chapter, "clean fuels" are fuels designated by the state board for use in zero emission or partial zero emission vehicles and include, but are not limited to, electricity, hydrogen, liquefied petroleum gas, methanol, and natural gas. 40604. (a) The district board shall adopt, by regulation, a schedule of fees to be assessed on areawide or indirect sources of emissions that are regulated, but for which permits are not issued, by the district to recover the costs of district programs related to these sources. (b) That fee schedule shall be designed to yield a sum not exceeding the estimated cost of the administration of this chapter and mitigation of emissions, and for the filing of applications for variances or to revoke or modify variances. All applicants shall pay the fees required by the schedule, including, notwithstanding Section 6103 of the Government Code, an applicant that is a publicly owned utility. 40605. (a) The district board shall adopt a surcharge on the registration fees applicable to all motor vehicles registered in those counties within the district, as specified in Section 9250.16 of the Vehicle Code. (b) Fees generated by the surcharge imposed pursuant to Section 9250.16 of the Vehicle Code shall only be used to reduce emissions from vehicular sources, including, but not limited to, the following activities: (1) The establishment of a clean fuels program. (2) The adoption and implementation of motor vehicle use reduction measures. (c) No more than 2 percent of the funds collected pursuant to the surcharge shall be used by the district for administrative expenses. (d) The district board shall adopt accounting procedures to ensure that revenues from motor vehicle registration fees are not commingled with other program revenues. 40606. The district board has the authority to monitor emissions from all stationary agricultural pumps in the district, including, but not limited to, those designated by the federal Environmental Protection Agency as "nonroad" engines that are subject to the requirements of Title II of the federal Clean Air Act (42 U.S.C. Sec. 7521 et seq.). SEC. 3. Section 9250.16 is added to the Vehicle Code, to read: 9250.16. (a) In addition to any other fees specified in this code, the Health and Safety Code, and the Revenue and Taxation Code, a surcharge of one dollar ($1) may be imposed by the San Joaquin Valley Unified Air Pollution Control District and shall be paid to the department as follows: (1) Upon initial registration of any motor vehicle not previously registered in this state that is registered on or after the date the department begins collecting the fee. (2) Upon renewal of registration of any motor vehicle for which the registration period expires after the date the department begins collecting the fee. (3) This subdivision applies to any motor vehicle subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, except any vehicle that is expressly exempted under this code from the payment of registration fees. The department shall begin collecting the fee on January 1 of the fiscal year immediately following the date the department receives the request to do so from the San Joaquin Valley Unified Air Pollution Control District Board. (b) Prior to the adoption of any surcharge pursuant to this subdivision, the San Joaquin Valley Unified Air Pollution Control District board shall approve the imposition of the surcharge through the adoption of a resolution, as specified in Section 44225 of the Health and Safety Code. (c) The San Joaquin Valley Unified Air Pollution Control District shall pay for the costs identified by the department to establish the fee collection procedure. After deducting the on-going costs incurred by the department in collecting the fees, the department shall deposit the revenue collected pursuant to this section into the Motor Vehicle Account in the State Transportation Fund for allocation to the district. Subdivision (c) of Section 40605 of the Health and Safety Code does not apply to the costs described in this subdivision. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.