BILL NUMBER: AB 118	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 20, 2007
	AMENDED IN SENATE  JULY 17, 2007
	AMENDED IN SENATE  JUNE 26, 2007
	AMENDED IN ASSEMBLY  JUNE 1, 2007
	AMENDED IN ASSEMBLY  APRIL 17, 2007
	AMENDED IN ASSEMBLY  MARCH 29, 2007

INTRODUCED BY   Assembly Member Nunez
    (   Principal coauthor:   Assembly Member
  Laird  ) 

                        JANUARY 9, 2007

   An act to amend Section 16428.3 of the Government Code, to amend,
repeal, and add Section 44060 of,  and   to add
Article 11 (commencing with Section 44125) to Chapter 5 of,  to
add Chapter 8.9 (commencing with Section 44270) to  ,  Part
5 of Division 26 of,  and to repeal Section 44091.1 of,  the
Health and Safety Code,   to add Section 25620.16 to the
Public Resources Code,   and to amend, repeal, and add
Sections 9250, 9261,  9853, 14900, and 14900.1  
and 9853  of the Vehicle Code, relating to fuels.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 118, as amended, Nunez. Alternative fuels and vehicle
technologies: funding programs.
    Existing law imposes various limitations on emissions of air
contaminants for the control of air pollution from vehicular and
nonvehicular sources. Existing law generally designates the State Air
Resources Board as the state agency with the primary responsibility
for the control of vehicular air pollution. Under existing law, the
 state board   State Energy Resources
Conservation and Development Commission  , in conjunction with
other state agencies, is required to develop and adopt a state plan
to increase the use of alternative fuels, as defined. 
   This bill would create the Air Quality Improvement Program, to be
administered by the state board, to fund air quality improvement
projects, upon appropriation by the Legislature, relating to fuel and
vehicle technologies. The bill would create the Air Quality
Improvement Fund, and would require the state board to expend the
moneys in that fund, upon appropriation by the Legislature, for
eligible air quality improvement projects and programs. 
   The bill would  also  create the 
Alternative and Renewable Fuel, Vehicle Technology, Carbon Reduction,
and Clean Air Program   Alternative and Renewable Fuel
and Vehicle Technology Program  , to be administered by the
State Energy Resources Conservation and Development Commission, to
provide, upon appropriation by the Legislature,  competitive
 grants  , loans, loan guarantees,  and revolving loans
to public agencies, California-based businesses and projects,
public-private partnerships, vehicle and technology consortia, 
workforce training partnerships,  fleet owners, consumers, 
recreational boaters,  and academic institutions to develop 
and deploy  innovative technologies that  will
 transform California's fuel and vehicle types  to help
attain the state's climate change policies  .  The
commission and the state board would be required to establish an
advisory body to develop investment strategies to help implement this
program. The commission, in coordination with the state board and
the advisory body, would be required to established funding criteria
and priorities and to review those criteria and priorities annually.

   The bill would create the  Alternative and Renewable Fuel,
Vehicle Technology, Carbon Reduction, and Clean Air Fund 
 Alternative and Renewable Fuel and Vehicle Technology Fund 
(Alternative Fund), and would require the commission to expend the
moneys in the Alternative Fund, upon appropriation by the
Legislature,  for eligible projects under the Alternative and
Renewable Fuel, Vehicle Technology, Carbon Reduction, and Clean Air
Program   to implement the Alternative and Renewable
Fuel and Vehicle Technology Program  . The bill would transfer
to the Alternative Fund specified settlement funds in the amount of
$30,000,000, and would also transfer to the Alternative Fund
$6,500,000 from the Motor Vehicle Account in the State Transportation
Fund. The bill would require $5,000,000 to be transferred annually
to the Alternative Fund from the Public Interest Research,
Development, and Demonstration Fund.
   The bill, until January 1, 2016, would increase vehicle
registration fees from $31 to  $33   $34  ,
vessel registration fees from $10 to $20 and from $20 to $40, as
applicable,  and  specified service fees for identification
plates from $15 to $20  , and driver's license fees from $24
to $25  . The bill would require the additional revenue
generated by those fee increases to be deposited in the 
Alternative Fund for the Alternative and Renewable Fuel, Vehicle
Technology, Carbon Reduction, and Clean Air Program  
Alternative and Renewable Fuel and Vehicle Technology Fund  .
 The 
    This bill would also create the Air Quality Improvement
Program, to be administered by the State Air Resources Board, to fund
air quality improvement projects, upon appropriation by the
Legislature, relating to fuel and vehicle technologies. The bill
would create the Air Quality Improvement Fund, and would require the
state board to expend the moneys in that fund, upon appropriation by
the Legislature, to implement the Air Quality Improvement Program.

    The  bill, until January 1, 2016, would also increase
smog abatement fees from $12 to $20, and would require  half
  1/2  of the additional revenue generated by that
fee increase to be deposited in the Air Quality Improvement Fund
 for the Air Quality Improvement Program  and the
other  half   1/2  of that additional
revenue to be deposited in the  Alternative Fund for the
Alternative and Renewable Fuel, Vehicle Technology, Carbon Reduction,
and Clean Air Program   Alternative and Renewable Fuel
and Vehicle Technol   ogy Fund  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500) of the Health and Safety Code)
requires California to reduce statewide greenhouse gas emissions to
1990 levels by 2020.
   (b) The transportation sector is responsible for approximately 40
percent of statewide greenhouse gas emissions.
   (c) The State Energy Resources Conservation and Development
Commission (Energy Commission) in its Integrated Energy Policy Report
recommends that alternative fuels comprise 20 percent of on-road
motor vehicle fuels by 2020.
   (d) The State Air Resources Board is currently developing a
"low-carbon" fuel standard for transportation fuels to reduce the
carbon intensity of transportation fuels by 10 percent by 2020.
   (e) The Energy Commission will adopt a state alternative fuel
implementation plan by June 30, 2007, to increase the use of
alternative transportation fuels by recommending policies and
financial incentives, and identifying barriers to alternative fuel
use.
   (f) Investing in the development of innovative and pioneering
technologies will assist California in achieving the 2020 statewide
limit on emissions of greenhouse gases.
   (g) Research, development, and commercialization of alternative
fuels and vehicle technologies in California have the potential to
strengthen California's economy by  providing job growth
  attracting and retaining clean technology businesses,
stimulating high-quality job growth,  and helping to reduce the
state's vulnerability to petroleum price volatility.  Research,
development, and commercialization of alternative fuels and vehicle
technologies will also result in new skill and occupational demands
across California industries. 
   (h) This act will provide ongoing funding for alternative fuel and
vehicle technology research, development, demonstration, and
deployment in order to advance the state's leadership in clean
technologies, meet the state's clean air and greenhouse gas emission
reduction standards, develop public-private partnerships, and ensure
an affordable, reliable fuel supply.
   (i) This act will ensure that research is conducted to evaluate
the air quality impacts of alternative fuels and to establish clear
criteria to prevent net increases in criteria air pollutants and air
toxics.
   (j) This act will be implemented in a manner to ensure the fair
treatment of people of all races, cultures, and income levels,
including minority populations and low-income populations of the
state.
   (k) This act will provide funding consistent with the California
Global Warming Solutions Act of 2006, the Integrated Energy Policy
Report, the plan adopted pursuant to Section 43866 of the Health and
Safety Code, and other state goals and requirements.
  SEC. 2.  Section 16428.3 of the Government Code is amended to read:

   16428.3.  (a) Except as provided in subdivision (b) of Section
44273 of the Health and Safety Code, any energy settlement agreement
entered into by the Attorney General, after reimbursing the Attorney
General's litigation and investigation expenses, to the maximum
extent possible, shall direct settlement funds to the following
purposes in priority order:
   (1) To reduce ratepayer costs of those utility ratepayers harmed
by the actions of the settling parties. To the extent the ratepayers
of the investor-owned utilities were harmed, the settlement funds
shall be directed to reduce their costs, to the maximum extent
possible, through reduction of rates or the reduction of ratepayer
debt obligations incurred as a result of the energy crisis.
   (2) For deposit in the fund.
   (b) Nothing in this article shall preclude nonmonetary
compensation to the state through an energy settlement agreement,
provided that the allocation of benefits from any nonmonetary
compensation is consistent with paragraph (1) of subdivision (a).

  SEC. 3.    Section 44060 of the Health and Safety
Code is amended to read:
   44060.  (a)  The department shall prescribe the form of the
certificate of compliance or noncompliance, repair cost waivers, and
economic hardship extensions.
   (b)  The certificates, repair cost waivers, and economic hardship
extensions shall be in the form of an electronic entry filed with the
department, the Department of Motor Vehicles, and any other person
designated by the department. The department shall ensure that the
motor vehicle owner or operator is provided with a written report,
signed by the licensed technician who performed the inspection, of
any test performed by a smog check station, including a pass or fail
indication, and written confirmation of the issuance of the
certificate.
   (c)  (1)  The department shall charge a fee to a smog check
station, including a test-only station, and a station providing
referee functions, for a motor vehicle inspected at that station that
meets the requirements of this chapter and is issued a certificate
of compliance, a certificate of noncompliance, repair cost waiver, or
economic hardship extension.
   (2)  The fee charged pursuant to paragraph (1) shall be calculated
to recover the costs of the department and any other state agency
directly involved in the implementation, administration, or
enforcement of the motor vehicle inspection and maintenance program,
and shall not exceed the amount reasonably necessary to fund the
operation of the program, including all responsibilities,
requirements, and obligations imposed upon the department or any of
those state agencies by this chapter, that are not otherwise
recoverable by fees received pursuant to Section 44034.
   (3)  Except for adjustments to reflect changes in the Consumer
Price Index, as published by the United States Bureau of Labor
Statistics, the fee for each certificate, waiver, or extension shall
not exceed seven dollars ($7).
   (4)  Fees collected by the department pursuant to this subdivision
shall be deposited in the Vehicle Inspection and Repair Fund. It is
the intent of the Legislature that a prudent surplus be maintained in
the Vehicle Inspection and Repair Fund.
   (d)  (1)  Motor vehicles exempted under paragraph (4) of
subdivision (a) of Section 44011 shall be subject to an annual smog
abatement fee of twenty dollars ($20). The department may also, by
regulation, subject motor vehicles that are exempted under paragraph
(5) of subdivision (a) of Section 44011 to the twenty dollar ($20)
annual smog abatement fee. Payment of the annual smog abatement fee
shall be made to the Department of Motor Vehicles at the time of
registration of the motor vehicle.
   (2)  (A) Except as provided in subdivision (a) of Section 44091.1
and subparagraph (B), fees collected pursuant to this subdivision
shall be deposited on a daily basis into the Vehicle Inspection and
Repair Fund.
   (B) (i) Of the total amount of each fee collected pursuant to
paragraph (1), four dollars ($4) shall be deposited into the Air
Quality Improvement Fund created by Section 44270.6.
   (ii) Of the total amount of each fee collected pursuant to
paragraph (1), four dollars ($4) shall be deposited into the
Alternative and Renewable Fuel, Vehicle Technology, Carbon Reduction,
and Clean Air Fund created by Section 44273.
   (e)  The sale or transfer of the certificate, waiver, or extension
by a licensed smog check station or test-only station to any other
licensed smog check station or to any other person, and the purchase
or acquisition of the certificate, waiver, or extension, by any
person, other than from the department, the department's designee, or
pursuant to a vehicle's inspection or repair conducted pursuant to
this chapter, is prohibited.
   (f)  Following implementation of the electronic entry certificate
under subdivision (b), the department may require the modification of
the analyzers and other equipment required at smog check stations to
prevent the entry of a certificate that has not been issued or
validated through prepayment of the fee authorized by subdivision
(c).
   (g)  The fee charged by licensed smog check stations to consumers
for a certificate, waiver, or extension shall be the same amount that
is charged by the department.
   (h) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.  
  SEC. 4.    Section 44060 is added to the Health
and Safety Code, to read:
   44060.  (a)  The department shall prescribe the form of the
certificate of compliance or noncompliance, repair cost waivers, and
economic hardship extensions.
   (b)  The certificates, repair cost waivers, and economic hardship
extensions shall be in the form of an electronic entry filed with the
department, the Department of Motor Vehicles, and any other person
designated by the department. The department shall ensure that the
motor vehicle owner or operator is provided with a written report,
signed by the licensed technician who performed the inspection, of
any test performed by a smog check station, including a pass or fail
indication, and written confirmation of the issuance of the
certificate.
   (c)  (1)  The department shall charge a fee to a smog check
station, including a test-only station, and a station providing
referee functions, for a motor vehicle inspected at that station that
meets the requirements of this chapter and is issued a certificate
of compliance, a certificate of noncompliance, repair cost waiver, or
economic hardship extension.
   (2)  The fee charged pursuant to paragraph (1) shall be calculated
to recover the costs of the department and any other state agency
directly involved in the implementation, administration, or
enforcement of the motor vehicle inspection and maintenance program,
and shall not exceed the amount reasonably necessary to fund the
operation of the program, including all responsibilities,
requirements, and obligations imposed upon the department or any of
those state agencies by this chapter, that are not otherwise
recoverable by fees received pursuant to Section 44034.
   (3)  Except for adjustments to reflect changes in the Consumer
Price Index, as published by the United States Bureau of Labor
Statistics, the fee for each certificate, waiver, or extension shall
not exceed seven dollars ($7).
   (4)  Fees collected by the department pursuant to this subdivision
shall be deposited in the Vehicle Inspection and Repair Fund. It is
the intent of the Legislature that a prudent surplus be maintained in
the Vehicle Inspection and Repair Fund.
   (d)  (1)  Motor vehicles exempted under paragraph (4) of
subdivision (a) of Section 44011 shall be subject to an annual smog
abatement fee of twelve dollars ($12). The department may also, by
regulation, subject motor vehicles that are exempted under paragraph
(5) of subdivision (a) of Section 44011 to the twelve dollar ($12)
annual smog abatement fee. Payment of the annual smog abatement fee
shall be made to the Department of Motor Vehicles at the time of
registration of the motor vehicle.
   (2)  Except as provided in subdivision (a) of Section 44091.1,
fees collected pursuant to this subdivision shall be deposited on a
daily basis into the Vehicle Inspection and Repair Fund.
   (e)  The sale or transfer of the certificate, waiver, or extension
by a licensed smog check station or test-only station to any other
licensed smog check station or to any other person, and the purchase
or acquisition of the certificate, waiver, or extension, by any
person, other than from the department, the department's designee, or
pursuant to a vehicle's inspection or repair conducted pursuant to
this chapter, is prohibited.
   (f)  Following implementation of the electronic entry certificate
under subdivision (b), the department may require the modification of
the analyzers and other equipment required at smog check stations to
prevent the entry of a certificate that has not been issued or
validated through prepayment of the fee authorized by subdivision
(c).
   (g)  The fee charged by licensed smog check stations to consumers
for a certificate, waiver, or extension shall be the same amount that
is charged by the department.
   (h) This section shall become operative on January 1, 2016.
 
  SEC. 5.     Chapter 8.9 (commencing with Section
44270) is added to Part 5 of Division 26 of the Health and Safety
Code, to read:
      CHAPTER 8.9.  ALTERNATIVE FUEL, CLEAN AIR, AND CARBON REDUCTION
PROGRAMS


   44270.  This chapter shall be known, and may be cited, as the
California Alternative and Renewable Fuel, Vehicle Technology, Clean
Air, and Carbon Reduction Act of 2007.
   44270.5.  (a) The Air Quality Improvement Program is hereby
created to fund, upon appropriation by the Legislature, air quality
improvement projects relating to fuel and vehicle technologies. The
program shall be administered by the state board in coordination with
the commission, and other state agencies that the state board deems
appropriate.
   (b) Projects to be funded by the Air Quality Improvement Program
shall include, but not be limited to, all of the following:
   (1) Off-road equipment projects that contemplate action not
required by control measures adopted by the state board or any other
laws to mitigate for criteria air pollutant and toxic air contaminant
emissions.
   (2) Projects that provide mitigation for off-road gasoline exhaust
and evaporative emissions not currently regulated by the state
board.
   (3) Projects that provide research to determine the air quality
impacts of alternative fuels and projects that study the life-cycle
impacts of alternative fuels and conventional fuels, the emissions of
biofuel and advanced reformulated gasoline mixes, and air pollution
improvements and control technologies for use with alternative fuels
and vehicles.
   (4) Projects that augment the University of California's
Agricultural Extension Program for research to increase sustainable
biofuels production and improve the collection of biomass feedstock.
   (5) Incentives for small off-road equipment replacement to
encourage consumers to replace internal combustion engine lawn and
garden equipment.
   (6) Incentives for heavy-duty vehicles and equipment mitigation,
including all of the following:
   (A) Lower emission schoolbus programs.
   (B) Heavy-duty electric off-road equipment.
   (C) Regional air quality improvement and attainment programs to
assess the most impacted regions of the state.
   (c) The Air Quality Improvement Program may be used to augment the
program created by Article 10 (commencing with Section 44100) of
Chapter 5.
   44270.6.  (a) The Air Quality Improvement Fund is hereby created
in the State Treasury, to be administered by the state board. The
moneys in the Air Quality Improvement Fund, upon appropriation by the
Legislature, shall be expended by the state board in accordance with
Section 44270.5.
   (b) Projects proposed for funding pursuant to subdivision (a)
shall be evaluated based on their proposed or potential reduction of
criteria air pollutants, cost-effectiveness, contribution to regional
air quality improvement, and their ability to promote the use of
clean alternative fuels as determined by the state board in
coordination with the commission.
   44271.  (a) There is hereby created the Alternative and Renewable
Fuel, Vehicle Technology, Carbon Reduction, and Clean Air Program.
The program shall be administered, in accordance with this chapter,
by the commission in partnership with the state board and in
partnership with other state agencies deemed appropriate by the
commission.
   (b) The state board shall adopt and submit to the commission
criteria to ensure that the activities undertaken pursuant to the
program complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminant emissions.
   (c) (1) The program shall provide, upon appropriation by the
Legislature, grants and revolving loans to public agencies,
California-based businesses and projects, public-private
partnerships, vehicle and technology consortia, fleet owners,
consumers, and academic institutions to develop innovative
technologies that will transform California's fuel and vehicle types
to help attain the state's climate change policies, without adopting
any one preferred fuel or technology.
   (2) The program shall provide funding complementary to existing
public and private investments, including existing state programs
that further the goals of this chapter.
   (d) The commission and the state board shall establish an advisory
body to develop investment strategies to help implement the
Alternative and Renewable Fuel, Vehicle Technology, Carbon Reduction,
and Clean Air Program. The advisory body shall have representatives
from the Resources Agency, the Business, Transportation and Housing
Agency, the California Environmental Protection Agency, fuel and
vehicle technology consortia, environmental justice and public health
organizations, consumer advocates, academic institutions, and
private industry.
   (e) (1) The commission, in coordination with the state board and
the advisory body created pursuant to subdivision (d), shall
establish criteria and priorities for the purpose of allocating funds
under the Alternative and Renewable Fuel, Vehicle Technology, Carbon
Reduction, and Clean Air Program.
   (2) The commission shall annually review these criteria and
priorities, in coordination with the state board and the advisory
body.
   (3) Funding criteria and priorities shall reflect a consideration
of all of the following:
   (A) The extent to which the project significantly increases the
state's ability to meet existing and future state climate change
policy and low-carbon fuel standards, reduces petroleum-based fuel
consumption, and reduces criteria air pollutants and air toxics.
   (B) The extent to which the project attempts to decrease, on a
life-cycle basis, the emissions of water pollutants or any other
substances known to damage human health or the environment, in
comparison to the production and use of California Phase 2
Reformulated Gasoline or diesel fuel produced and sold pursuant to
California diesel fuel regulations set forth in Article 2 (commencing
with Section 2280) of Chapter 5 of Division 3 of Title 13 of the
California Code of Regulations.
   (C) The project is not otherwise required to be undertaken
pursuant to state or federal law.
   (4) The commission, in partnership with the state board, shall
develop sustainability criteria to ensure that any fuel or technology
deployment project meets all of the following requirements:
   (A) The project does not adversely impact the state's natural
resources.
   (B) The project complies with all applicable laws and regulations.

   (C) A full fuel cycle analysis has been undertaken with regard to
the project.
   (5) Eligible biomass projects shall not be derived from
environmentally sensitive lands protected by state or federal law.
   (6) Funding criteria shall be established to prioritize a research
development and deployment project that includes, at a minimum, any
of the following features:
   (A) The project provides private matching funds.
   (B) The project demonstrates an ability to provide transformative
technology advancements.
   (C) The project demonstrates the ability to develop innovative new
technology.
   (D) The project promotes California-based technology firms.
   44272.  Projects to be funded by the Alternative and Renewable
Fuel, Vehicle Technology, Carbon Reduction, and Clean Air Program
shall include, but not be limited to, all of the following:
   (a) Alternative and renewable fuel research and development
projects to improve and develop alternative and low-carbon fuels,
including ethanol, dimethyl ether, renewable diesel, natural gas, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization.
   (b) Alternative and renewable fuel deployment projects that
optimize fuels for existing and developing engine technologies,
production of alternative and low-carbon fuels in California, and
development of less carbon intensive processes for current fuels.
   (c) Technology deployment projects to decrease the overall impact
of a fuel's life-cycle carbon footprint and sustainability.
   (d) Alternative and renewable fuel infrastructure, fueling
stations, and equipment incentive projects, including revolving loans
and grants to small- and medium-sized businesses for these purposes.

   (e) Alternative and renewable fuel and efficient vehicle
technology research development projects for the improvement and
development of light-, medium- and heavy-duty vehicle technologies
that provide for better fuel efficiency, alternative fuel usage and
storage, or emission reductions, including propulsion systems, light
weight materials, energy storage, engine optimization with a target
particularly for renewable and low carbon fuels, electronic and
electrified components, hybrid technology, plug-in hybrid technology,
and fuel cell technology.
   (f) Alternative and renewable fuel and efficient vehicle
technology deployment programs and projects for the demonstration and
deployment of vehicle technologies in California that accelerate the
commercialization of vehicle technology, including buy-down programs
for near-market and market-path deployments.
   (g) Revolving loans to small and medium size businesses for
medium- and heavy-duty vehicle fleets to retrofit existing fleets
with technologies that create higher fuel efficiencies, including
idle management technology and aerodynamic retrofits that decrease
fuel consumption.
   (h) Alternative fuel and electric infrastructure projects that
promote infrastructure development connected with existing fleets,
public transit, and existing transportation corridors.
   44273.  (a) The Alternative and Renewable Fuel, Vehicle
Technology, Carbon Reduction, and Clean Air Fund is hereby created in
the State Treasury, to be administered by the commission. The moneys
in the Alternative and Renewable Fuel, Vehicle Technology, Carbon
Reduction, and Clean Air Fund, upon appropriation by the Legislature,
shall be expended by the commission in accordance with Sections
44271 and 44272.
   (b) (1) For the purposes of this subdivision, "Williams settlement
funds" means any moneys obtained, and any interest generated on the
moneys, through the settlement of litigation with The Williams
Companies, Inc. and Williams Energy Marketing & Trading Company, made
and entered into as of November 11, 2002.
   (2) Notwithstanding Section 16428.3 of the Government Code and any
other provision of law, of the Williams settlement funds deposited
in the Ratepayer Relief Fund, the sum of thirty million dollars
($30,000,000) is hereby transferred to the Alternative and Renewable
Fuel, Vehicle Technology, Carbon Reduction, and Clean Air Fund.
   (c) The sum of six million five hundred thousand dollars
($6,500,000) is hereby transferred from the Motor Vehicle Account in
the State Transportation Fund to the Alternative and Renewable Fuel,
Vehicle Technology, Carbon Reduction, and Clean Air Fund.
   (d) Notwithstanding any other provision of law, the sum of five
million dollars ($5,000,000) shall be transferred annually from the
Public Interest Research, Development, and Demonstration Fund created
by Section 384 of the Public Utilities Code to the Alternative and
Renewable Fuel, Vehicle Technology, Carbon Reduction, and Clean Air
Fund.  
  SEC. 6.    Section 25620.16 is added to the Public
Resources Code, to read:
   25620.16.  Notwithstanding any other provision of law, the sum of
five million dollars ($5,000,000) shall be transferred
                             annually from the Public Interest
Research, Development, and Demonstration Fund to the Alternative and
Renewable Fuel, Vehicle Technology, Carbon Reduction, and Clean Air
Fund created by Section 44273 of the Health and Safety Code.

   SEC. 3.    Sectio   n 44060 of the 
 Health and Safety Code   is amended to read: 
   44060.  (a) The department shall prescribe the form of the
certificate of compliance or noncompliance, repair cost waivers, and
economic hardship extensions.
   (b) The certificates, repair cost waivers, and economic hardship
extensions shall be in the form of an electronic entry filed with the
department, the Department of Motor Vehicles, and any other person
designated by the department. The department shall ensure that the
motor vehicle owner or operator is provided with a written report,
signed by the licensed technician who performed the inspection, of
any test performed by a smog check station, including a pass or fail
indication, and written confirmation of the issuance of the
certificate.
   (c) (1) The department shall charge a fee to a smog check station,
including a test-only station, and a station providing referee
functions, for a motor vehicle inspected at that station that meets
the requirements of this chapter and is issued a certificate of
compliance, a certificate of noncompliance, repair cost waiver, or
economic hardship extension.
   (2) The fee charged pursuant to paragraph (1) shall be calculated
to recover the costs of the department and any other state agency
directly involved in the implementation, administration, or
enforcement of the motor vehicle inspection and maintenance program,
and shall not exceed the amount reasonably necessary to fund the
operation of the program, including all responsibilities,
requirements, and obligations imposed upon the department or any of
those state agencies by this chapter, that are not otherwise
recoverable by fees received pursuant to Section 44034.
   (3) Except for adjustments to reflect changes in the Consumer
Price Index, as published by the United States Bureau of Labor
Statistics, the fee for each certificate, waiver, or extension shall
not exceed seven dollars ($7).
   (4) Fees collected by the department pursuant to this subdivision
shall be deposited in the Vehicle Inspection and Repair Fund. It is
the intent of the Legislature that a prudent surplus be maintained in
the Vehicle Inspection and Repair Fund.
   (d) (1) Motor vehicles exempted under paragraph (4) of subdivision
(a) of Section 44011 shall be subject to an annual smog abatement
fee of  twelve dollars ($12)   twenty dollars
($20)  . The department may also, by regulation, subject motor
vehicles that are exempted under paragraph (5) of subdivision (a) of
Section 44011 to the  twelve dollar ($12)  
twenty dollar ($20)  annual smog abatement fee. Payment of the
annual smog abatement fee shall be made to the Department of Motor
Vehicles at the time of registration of the motor vehicle. 
   (2)  Except as provided in subdivision (a) of Section 44091.1,
fees collected pursuant to this subdivision shall be deposited on a
daily basis into the Vehicle Inspection and Repair Fund. 

   (2) Fees collected pursuant to this subdivision shall be deposited
as follows:  
   (A) The revenues generated by six dollars ($6) of the fee shall be
deposited in the Air Pollution Control Fund, and shall be available
for expenditure, upon appropriation by the Legislature, to fund the
Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter
9 (commencing with Section 44275)) to the extent that the state
board or a participating district determines the moneys are expended
to mitigate or remediate the harm caused by the type of motor vehicle
on which the fee is imposed.  
   (B) The revenues generated by four dollars ($4) of the fee shall
be deposited in the Air Quality Improvement Fund created by Section
44274.5.  
   (C) The revenues generated by four dollars ($4) of the fee shall
be deposited into the Alternative and Renewable Fuel and Vehicle
Technology Fund created by Section 44273.  
   (D) (i) Except as provided in clause (ii), of the revenue
generated by the remaining six dollars ($6) of the fee, four dollars
($4) shall be deposited in the High Polluter Repair or Removal
Account created by Section 44091, and the revenue generated by the
remaining two dollars ($2) shall be deposited in the Vehicle
Inspection and Repair Fund.  
   (ii) All revenue generated by the remaining six dollars ($6) of
the fee that is imposed at first registration of a motor vehicle that
is exempted under paragraph (4) of subdivision (a) of Section 44011
shall be deposited in the High Polluter Repair or Removal Account
created by Section 44091. 
   (e) The sale or transfer of the certificate, waiver, or extension
by a licensed smog check station or test-only station to any other
licensed smog check station or to any other person, and the purchase
or acquisition of the certificate, waiver, or extension, by any
person, other than from the department, the department's designee, or
pursuant to a vehicle's inspection or repair conducted pursuant to
this chapter, is prohibited.
   (f) Following implementation of the electronic entry certificate
under subdivision (b), the department may require the modification of
the analyzers and other equipment required at smog check stations to
prevent the entry of a certificate that has not been issued or
validated through prepayment of the fee authorized by subdivision
(c).
   (g) The fee charged by licensed smog check stations to consumers
for a certificate, waiver, or extension shall be the same amount that
is charged by the department. 
   (h) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 4.    Section 44060 is added to the  
Health and Safety Code   , to read:  
   44060.  (a)  The department shall prescribe the form of the
certificate of compliance or noncompliance, repair cost waivers, and
economic hardship extensions.
   (b) The certificates, repair cost waivers, and economic hardship
extensions shall be in the form of an electronic entry filed with the
department, the Department of Motor Vehicles, and any other person
designated by the department. The department shall ensure that the
motor vehicle owner or operator is provided with a written report,
signed by the licensed technician who performed the inspection, of
any test performed by a smog check station, including a pass or fail
indication, and written confirmation of the issuance of the
certificate.
   (c) (1) The department shall charge a fee to a smog check station,
including a test-only station, and a station providing referee
functions, for a motor vehicle inspected at that station that meets
the requirements of this chapter and is issued a certificate of
compliance, a certificate of noncompliance, repair cost waiver, or
economic hardship extension.
   (2) The fee charged pursuant to paragraph (1) shall be calculated
to recover the costs of the department and any other state agency
directly involved in the implementation, administration, or
enforcement of the motor vehicle inspection and maintenance program,
and shall not exceed the amount reasonably necessary to fund the
operation of the program, including all responsibilities,
requirements, and obligations imposed upon the department or any of
those state agencies by this chapter, that are not otherwise
recoverable by fees received pursuant to Section 44034.
   (3) Except for adjustments to reflect changes in the Consumer
Price Index, as published by the United States Bureau of Labor
Statistics, the fee for each certificate, waiver, or extension shall
not exceed seven dollars ($7).
   (4) Fees collected by the department pursuant to this subdivision
shall be deposited in the Vehicle Inspection and Repair Fund. It is
the intent of the Legislature that a prudent surplus be maintained in
the Vehicle Inspection and Repair Fund.
   (d) (1)  Motor vehicles exempted under paragraph (4) of
subdivision (a) of Section 44011 shall be subject to an annual smog
abatement fee of twelve dollars ($12). The department may also, by
regulation, subject motor vehicles that are exempted under paragraph
(5) of subdivision (a) of Section 44011 to the twelve dollar ($12)
annual smog abatement fee. Payment of the annual smog abatement fee
shall be made to the Department of Motor Vehicles at the time of
registration of the motor vehicle.
   (2) Fees collected pursuant to this subdivision shall be deposited
as follows:
   (A) The revenues generated by six dollars ($6) of the fee shall be
deposited in the Air Pollution Control Fund, and shall be available
for expenditure, upon appropriation by the Legislature, to fund the
Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter
9 (commencing with Section 44275)) to the extent that the state
board or a participating district determines the moneys are expended
to mitigate or remediate the harm caused by the type of motor vehicle
on which the fee is imposed.
   (B) (i) Except as provided in clause (ii), of the revenue
generated by the remaining six dollars ($6) of the fee, four dollars
($4) shall be deposited in the High Polluter Repair or Removal
Account created by Section 44091, and the revenue generated by the
remaining two dollars ($2) shall be deposited in the Vehicle
Inspection and Repair Fund.
   (ii) All revenue generated by the remaining six dollars ($6) of
the fee that is imposed at first registration of a motor vehicle that
is exempted under paragraph (4) of subdivision (a) of Section 44011
shall be deposited in the High Polluter Repair or Removal Account
created by Section 44091.
   (e) The sale or transfer of the certificate, waiver, or extension
by a licensed smog check station or test-only station to any other
licensed smog check station or to any other person, and the purchase
or acquisition of the certificate, waiver, or extension, by any
person, other than from the department, the department's designee, or
pursuant to a vehicle's inspection or repair conducted pursuant to
this chapter, is prohibited.
   (f) Following implementation of the electronic entry certificate
under subdivision (b), the department may require the modification of
the analyzers and other equipment required at smog check stations to
prevent the entry of a certificate that has not been issued or
validated through prepayment of the fee authorized by subdivision
(c).
   (g) The fee charged by licensed smog check stations to consumers
for a certificate, waiver, or extension shall be the same amount that
is charged by the department.
   (h) This section shall become operative on January 1, 2016. 
   SEC. 5.    Section 44091.1 of the  Health
and Safety Code   is repealed.  
   44091.1.  Commencing January 1, 2005, the fee specified in
paragraph (1) of subdivision (d) of Section 44060 shall be twelve
dollars ($12). The revenues from that fee shall be allocated as
follows:
   (a) The revenues generated by six dollars ($6) of the fee shall be
deposited in the Air Pollution Control Fund, and shall be available
for expenditure, upon appropriation by the Legislature, to fund the
Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter
9 (commencing with Section 44275)) to the extent that the state
board or a participating district determines the moneys are expended
to mitigate or remediate the harm caused by the type of motor vehicle
on which the fee is imposed.
   (b) (1) Except as provided for in paragraph (2), of the revenue
generated by the remaining six dollars ($6) of the fee, four dollars
($4) shall be deposited in the account created by Section 44091,
while the revenue generated by the remaining two dollars ($2) shall
be deposited in the Vehicle Inspection and Repair Fund.
   (2) All revenue generated by the remaining six dollars ($6) of the
fee described in this subdivision that is imposed at first
registration of a motor vehicle and that is exempted under paragraph
(4) of subdivision (a) of Section 44011 shall be deposited in the
account created by Section 44091.
   SEC. 6.    Article 11 (commencing with Section 44125)
is added to Chapter 5 of Part 5 of Division 26 of the  
Health and Safety Code   , to read:  

      Article 11.  Fleet Modernization Program


   44125.  The state board may create by regulation an enhanced
voluntary fleet modernization program to compensate vehicle owners
that voluntarily retire or replace passenger cars or light-duty
trucks that are high polluters, as defined in Section 44090. 
   SEC. 7.    Chapter 8.9 (commencing with Section
44270) is added to Part 5 of Division 26   of the  
Health and Safety Code   , to read:  
      CHAPTER 8.9.  CALIFORNIA ALTERNATIVE AND RENEWABLE FUEL,
VEHICLE TECHNOLOGY, CLEAN AIR, AND CARBON REDUCTION ACT OF 2007


   44270.  This chapter shall be known, and may be cited, as the
California Alternative and Renewable Fuel, Vehicle Technology, Clean
Air, and Carbon Reduction Act of 2007.
   44270.3.  For the purposes of this chapter, the following terms
have the following meanings:
   (a) "Commission" means the State Energy Resources Conservation and
Development Commission.
   (b) "Full fuel-cycle assessment" or "life-cycle assessment" means
evaluating and comparing the full environmental and health impacts of
each step in the life cycle of a fuel, including, but not limited
to, all of the following:
   (1) Feedstock production, extraction, transport, and storage.
   (2) Fuel production, distribution, transport, and storage.
   (3) Vehicle operation, including refueling, combustion,
conversion, permeation, and evaporation.
   (c) "Vehicle technology" means any vehicle, boat, off-road
equipment, or locomotive, or component thereof, including its engine,
propulsion system, transmission, or construction materials.
   44270.5.  (a) The commission and the state board shall create an
advisory body to help develop an investment plan to determine
priorities and opportunities for the incentive programs created
pursuant to this chapter. The plan shall describe how funding will
complement existing public and private investments, including
existing state programs that further the goals of this chapter. The
plan shall be updated annually.
   (b) Membership of the advisory body created pursuant to
subdivision (a) shall include, but is not limited to, representatives
of fuel and vehicle technology consortia, labor organizations,
environmental organizations, community-based justice and public
health organizations, recreational boaters, consumer advocates,
academic institutions, workforce training groups, and private
industry. The advisory body shall also include representatives from
the Resources Agency, the Business, Transportation and Housing
Agency, the Labor and Workforce Development Agency, and the
California Environmental Protection Agency.
   (c) The advisory body shall meet periodically, and where
appropriate, shall meet throughout the state to collect information
necessary for the development of the plan.
   (d) The advisory body may serve other functions as necessary to
implement this chapter, including all of the following:
   (1) Determine definitions of terms used in the provisions of this
chapter for the administration of grant funds.
   (2) Establish sustainability goals to ensure deployment projects
on a full fuel-cycle assessment will not adversely impact the state
natural resources, especially state and federal lands.
   (3) Identify revenue streams for the programs created pursuant to
this chapter.
   (4) Other functions as determined by the commission and the state
board.
   (e) The commission shall provide staff to the advisory body and
shall determine when and where the advisory body will meet.
   44271.  (a) The commission and the state board shall implement the
Alternative and Renewable Fuel and Vehicle Technology Program and
the Air Quality Improvement Program created by this chapter pursuant
to a competitive process. The commission and the state board, in
coordination with the advisory body created pursuant to Section
44270.5, shall establish guidelines for these programs, to be
reviewed annually. The guidelines may provide preferences to those
projects that maximize the goals of the programs.
   (b) Guidelines for both the Alternative and Renewable Fuel and
Vehicle Technology Program and the Air Quality Improvement Program
shall be based on the following criteria, as appropriate:
   (1) The project's ability to increase the state's ability to meet
existing and future state climate change policy and low-carbon fuel
standards, increase fuel diversity, reduce criteria air pollutants
and air toxics, and reduce or avoid multimedia environmental impacts.

   (2) The project's ability to decrease, on a life-cycle basis, the
emissions of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
   (3) The project is not required to be undertaken pursuant to state
or federal law.
   (4) The project does not adversely impact the state's natural
resources, especially state and federal lands, and is consistent with
the sustainability goals set by the advisory body created pursuant
to Section 44270.5. Eligible biomass projects shall not be derived
from environmentally sensitive lands protected by state or federal
law.
   (5) The project provides nonstate matching funds.
   (6) The project demonstrates an ability to provide transformative
technology advancements for fuels, vehicles, vessels, engines, and
other equipment.
   (7) The project demonstrates the ability to develop innovative new
technology.
   (8) The project promotes California-based technology firms.
   (9) The project's use of existing or proposed fueling
infrastructure to maximize the outcome of the project.
   (10) The project's ability to reduce life-cycle impacts and costs
associated with fuel and vehicles.
   (11) The project's ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current fuel standards (California
Phase 2 Reformulated Gasoline or Article 2 (commencing with Section
2280) of Chapter 5 of Division 3 of Title 13 of the California Code
of Regulations).
   (12) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
   (13) The project's ability to drive new technology advancement for
vehicles, vessels, engines, and other equipment, and promote the
deployment of that technology in the marketplace. The guidelines
shall not allow funds to be expended for existing commercialized
technologies.
   (c) The guidelines for both the Alternative and Renewable Fuel and
Vehicle Technology Program and the Air Quality Improvement Program
shall include all of the following requirements:
   (1) That activities undertaken pursuant to the programs
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminant emissions.
   (2) That activities undertaken pursuant to the programs maintain
or improve, to the extent feasible, upon emission reductions and air
quality benefits in the State Implementation Plan for Ozone,
California Phase 2 Reformulated Gasoline standards, and diesel fuel
regulations.
   (3) That the results of the reduction in emissions or benefits can
be measured and quantified.
   44272.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created to be administered by the
commission in partnership with the state board.
   (b) The program shall provide, upon appropriation by the
Legislature, competitive grants, revolving loans, loan guarantees, or
loans, or all of these, to public agencies, vehicle and technology
consortia, California-based businesses and projects, public-private
partnerships, workforce training partnerships, fleet owners,
consumers, recreational boaters, and academic institutions to develop
and deploy innovative technologies that transform California's fuel
and vehicle types to help attain the state's climate change policies,
without adopting any one preferred fuel or technology. All of the
following shall be eligible for funding:
   (1) Alternative and renewable fuel research and development
projects to improve and develop alternative and low-carbon fuels,
including electricity, ethanol, dimethyl ether, renewable diesel,
natural gas, and biomethane, among others, and their feedstocks that
have high potential for long-term or short-term commercialization,
including research that leads to sustainable feedstocks.
   (2) Alternative and renewable fuel deployment projects that
optimize fuels for existing and developing engine technologies,
production of alternative and low-carbon fuels in California, and
development of less carbon intensive processes for current fuels.
   (3) Technology deployment projects to decrease the overall impact
of a fuel's life-cycle assessment carbon footprint and increase
sustainability.
   (4) Alternative and renewable fuel infrastructure, fueling
stations, and equipment incentive projects, including revolving loans
and grants to small- and medium-sized businesses for these purposes.

   (5) Alternative and renewable fuel and efficient vehicle
technology research development projects for the improvement and
development of light-, medium-, and heavy-duty vehicle technologies
that provide for better fuel efficiency, alternative fuel usage and
storage, or emission reductions, including propulsion systems,
light-weight materials, energy storage, control systems and system
integration, physical measurement and metering systems and software,
development of design standards and testing and certification
protocols, battery recycling and reuse, engine optimization with a
target particularly for renewable and low-carbon fuels, electronic
and electrified components, hybrid technology, plug-in hybrid
technology, and fuel cell technology.
   (6) Alternative and renewable fuel and efficient vehicle
technology deployment programs and projects for the demonstration and
deployment of vehicle technologies in California that accelerate the
commercialization of vehicle technology, including buy-down programs
for near-market and market-path deployments, advanced technology
warranty or replacement insurance, development of market niches, and
supply-chain development.
   (7) Revolving loans, loan guarantees, or interest rate buy-down
programs to small- and medium-size businesses for medium- and
heavy-duty and nonroad vehicle fleets to retrofit existing fleets
with technologies that create higher fuel efficiencies, including
alternative fuel vehicles and technologies, idle management
technology, and aerodynamic retrofits that decrease fuel consumption.

   (8) Alternative fuel and electric infrastructure projects that
promote infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment.
   (9) Workforce training programs related to energy feedstock
production and extraction, renewable fuel production, distribution,
transport, and storage, high-performance and low-emission vehicle
technology and high tower electronics, automotive computer systems,
mass transit fleet conversion, servicing, and maintenance, and other
sectors                                          or occupations
related to the purposes of this chapter.
   (10) Block grants administered by not-for-profit technology
consortia for multiple projects, education and program promotion
within California, and development of technology centers.
   44273.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Fund is hereby created in the State Treasury, to be
administered by the commission. The moneys in the fund, upon
appropriation by the Legislature, shall be expended by the commission
to implement the Alternative and Renewable Fuel and Vehicle
Technology Program in accordance with the provisions of this chapter.

   (b) (1) For the purposes of this subdivision, "Williams settlement
funds" means any moneys obtained, and any interest generated on the
moneys, through the settlement of litigation with The Williams
Companies, Inc. and Williams Energy Marketing & Trading Company, made
and entered into as of November 11, 2002.
   (2) Notwithstanding Section 16428.3 of the Government Code and any
other provision of law, of the Williams settlement funds deposited
in the Ratepayer Relief Fund, the sum of thirty million dollars
($30,000,000) is hereby transferred to the Alternative and Renewable
Fuel and Vehicle Technology Fund.
   (c) The sum of six million five hundred thousand dollars
($6,500,000) is hereby transferred from the Motor Vehicle Account in
the State Transportation Fund to the Alternative and Renewable Fuel
and Vehicle Technology Fund.
   (d) Notwithstanding any other provision of law, the sum of five
million dollars ($5,000,000) shall be transferred annually from the
Public Interest Research, Development, and Demonstration Fund created
by Section 384 of the Public Utilities Code to the Alternative and
Renewable Fuel and Vehicle Technology Fund. Prior to the award of any
funds from this source, the commission shall make a determination
that the proposed project will provide benefits to electric or
natural gas ratepayers based upon the commission's adopted criteria.
   44274.  (a) The Air Quality Improvement Program is hereby created
to be administered by the state board to fund, upon appropriation by
the Legislature, air quality improvement projects relating to fuel
and vehicle technologies. The primary purpose of the program shall be
to fund projects to reduce criteria air pollutants, improve air
quality, and provide funding for research to determine and improve
the air quality impacts of alternative transportation fuels and
vehicles, vessels, and equipment technologies.
   (b) Projects proposed for funding pursuant to subdivision (a)
shall be evaluated based on their proposed or potential reduction of
criteria air pollutants, cost-effectiveness, contribution to regional
air quality improvement, and their ability to promote the use of
clean alternative fuels and vehicle technologies as determined by the
state board in coordination with the commission.
   (c) The program shall be limited to competitive grants. Projects
to be funded include all of the following:
   (1) Off-road equipment projects that contemplate action not
required by control measures adopted by the state board or any other
laws to mitigate for criteria air pollutant and toxic air contaminant
emissions.
   (2) Projects that provide mitigation for off-road gasoline exhaust
and evaporative emissions not currently regulated by the state
board.
   (3) Projects that provide research to determine the air quality
impacts of alternative fuels and projects that study the life-cycle
impacts of alternative fuels and conventional fuels, the emissions of
biofuel and advanced reformulated gasoline mixes, and air pollution
improvements and control technologies for use with alternative fuels
and vehicles.
   (4) Projects that augment the University of California's
agricultural experiment station and cooperative extension programs
for research to increase sustainable biofuels production and improve
the collection of biomass feedstock.
   (5) Incentives for small off-road equipment replacement to
encourage consumers to replace internal combustion engine lawn and
garden equipment.
   (6) Incentives for medium- and heavy-duty vehicles and equipment
mitigation, including all of the following:
   (A) Lower emission schoolbus programs.
   (B) Electric, hybrid, and plug-in hybrid on- and off-road medium-
and heavy-duty equipment.
   (C) Regional air quality improvement and attainment programs to
assess the most impacted regions of the state.
   (7) Workforce training initiatives related to advanced energy
technology designed to reduce air pollution, including
state-of-the-art equipment and goods, and new processes and systems.
Workforce training initiatives funded shall be broad-based
partnerships that leverage other public and private job training
programs and resources. These partnerships may include, though not be
limited to, employers, labor unions, labor-management partnerships,
community organizations, workforce investment boards, postsecondary
education providers including community colleges, and economic
development agencies.
   (d) The Air Quality Improvement Program may be used to augment the
program created by Article 10 (commencing with Section 44100) of
Chapter 5.
   44274.5.  The Air Quality Improvement Fund is hereby created in
the State Treasury, to be administered by the state board. The moneys
in the Air Quality Improvement Fund, upon appropriation by the
Legislature, shall be expended by the state board in accordance with
the provisions of this chapter to implement the Air Quality
Improvement Program. 
   SEC. 7.   SEC. 8.   Section 9250 of the
Vehicle Code is amended to read:
   9250.  (a) A registration fee of  thirty-three dollars
($33)   thirty-four dollars ($34)  shall be paid to
the department for the registration of every vehicle or trailer
coach of a type subject to registration under this code, except those
vehicles that are expressly exempted under this code from the
payment of registration fees.
   (b) The registration fee imposed under this section applies to all
vehicles described in Section 5004, whether or not special
identification plates are issued to that vehicle.
   (c) Trailer coaches are subject to the fee provided in subdivision
(a) for each unit of the trailer coach.
   (d) This section applies to all of the following:
   (1) The initial or original registration, on or after January 1,
2004, of any vehicle not previously registered in this state.
   (2) The renewal of registration of any vehicle for which the
registration period expires on or after January 1, 2004, regardless
of whether a renewal application was mailed to the registered owner
prior to January 1, 2004.
   (3) Any renewal of a registration that expired on or before
December 31, 2003, but for which the fees are not paid until on or
after January 1, 2004.
   (e) Notwithstanding any other provision of law, of the total
amount of each fee collected pursuant to subdivision (a), 
two dollars ($2) shall be deposited into the Alternative and
Renewable Fuel, Vehicle Technology, Carbon Reduction, and Clean Air
Fund   three dollars ($3) shall be deposited into the
Alternative and Renewable Fuel and Vehicle Technology Fund
created by Section 44273 of the Health and Safety Code.
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 8.   SEC. 9.   Section 9250 is
added to the Vehicle Code, to read:
   9250.  (a) A registration fee of thirty-one dollars ($31) shall be
paid to the department for the registration of every vehicle or
trailer coach of a type subject to registration under this code,
except those vehicles that are expressly exempted under this code
from the payment of registration fees.
   (b) The registration fee imposed under this section applies to all
vehicles described in Section 5004, whether or not special
identification plates are issued to that vehicle.
   (c) Trailer coaches are subject to the fee provided in subdivision
(a) for each unit of the trailer coach.
   (d) This section applies to all of the following:
   (1) The initial or original registration, on or after January 1,
2004, of any vehicle not previously registered in this state.
   (2) The renewal of registration of any vehicle for which the
registration period expires on or after January 1, 2004, regardless
of whether a renewal application was mailed to the registered owner
prior to January 1, 2004.
   (3) Any renewal of a registration that expired on or before
December 31, 2003, but for which the fees are not paid until on or
after January 1, 2004.
   (e) This section shall become operative on January 1, 2016.
   SEC. 9.   SEC. 10.   Section 9261 of the
Vehicle Code is amended to read:
   9261.  (a) A service fee of twenty dollars ($20) shall be paid for
an identification plate issued pursuant to Section 5014. Publicly
owned special construction equipment, cemetery equipment, special
mobile equipment, logging vehicles, and implements of husbandry are
exempt from the service charge.
   (b) A service fee of twenty dollars ($20) shall be paid for an
identification plate issued pursuant to Section 5016.5.
   (c) Upon application for the transfer of interest of an owner in a
piece of equipment, vehicle, or implement of husbandry identified
pursuant to Section 5014, the transferee shall pay a fee of twenty
dollars ($20).
   (d) A fee of twenty dollars ($20) shall be paid upon the renewal
of an identification plate issued pursuant to Section 5014 or 5016.5.

   (e) Notwithstanding any other provision of law, of the total
amount of each fee collected pursuant to this section, five dollars
($5) shall be deposited into the  Alternative and Renewable
Fuel, Vehicle Technology, Carbon Reduction, and Clean Air Fund
  Alternative and Renewable Fuel and Vehicle Technology
Fund  created by Section 44273 of the Health and Safety Code.
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 10.   SEC. 11.   Section 9261 is
added to the Vehicle Code, to read:
   9261.  (a) A service fee of fifteen dollars ($15) shall be paid
for an identification plate issued pursuant to Section 5014. Publicly
owned special construction equipment, cemetery equipment, special
mobile equipment, logging vehicles, and implements of husbandry are
exempt from the service charge.
   (b) A service fee of fifteen dollars ($15) shall be paid for an
identification plate issued pursuant to Section 5016.5.
   (c) Upon application for the transfer of interest of an owner in a
piece of equipment, vehicle, or implement of husbandry identified
pursuant to Section 5014, the transferee shall pay a fee of fifteen
dollars ($15).
   (d) A fee of fifteen dollars ($15) shall be paid upon the renewal
of an identification plate issued pursuant to Section 5014 or 5016.5.

   (e) This section shall become operative on January 1, 2016.
   SEC. 11.   SEC. 12.   Section 9853 of
the Vehicle Code is amended to read:
   9853.  (a) The owner of each vessel requiring numbering by this
state shall file an initial application for a number with the
department or with an agent authorized by the department on forms
approved by the department. The forms shall be prepared in
cooperation with the Department of Boating and Waterways. The
application shall contain the true name and address of the owner and
of the legal owner, if any, and the hull identification number of the
vessel as may be required by the department. The application shall
be signed by the owner of the vessel and shall be accompanied by a
fee of nine dollars ($9), in addition to the fees required under
subdivision (b), except that an owner of a vessel registered outside
this state who is submitting an application for registration in this
state shall pay a fee of thirty-seven dollars ($37), in addition to
the fees required under subdivision (b).
   (b) (1) Whenever the fee for original registration of a vessel
becomes due between January 1 and December 31 of any even-numbered
year, the application shall be accompanied by a fee of twenty dollars
($20), in addition to any other fees that are then due and payable.
   (2) Whenever the fee for original registration of a vessel becomes
due, or is filed with the department, between January 1 and December
31 of any odd-numbered year, the application shall be accompanied by
a fee of forty dollars ($40) in addition to any other fees that are
then due and payable.
   (c) Notwithstanding any other provision of law, of the total
amount of each fee collected pursuant to paragraph (1) of subdivision
(b), ten dollars ($10) shall be deposited into the 
Alternative and Renewable Fuel, Vehicle Technology, Carbon Reduction,
and Clean Air Fund   Alternative an Renewable Fuel and
Vehicle Technology Fund  created by Section 44273 of the Health
and Safety Code. Notwithstanding any other provision of law, of the
total amount of each fee collected pursuant to paragraph (2) of
subdivision (b), twenty dollars ($20) shall be deposited into the
 Alternative and Renewable Fuel, Vehicle Technology, Carbon
Reduction, and Clean Air Fund   Alternative an Renewable
Fuel and Vehicle Te   chnology Fund  created by
Section 44273 of the Health and Safety Code.
   (d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 12.   SEC. 13.   Section 9853 is
added to the Vehicle Code, to read:
   9853.  (a) The owner of each vessel requiring numbering by this
state shall file an initial application for a number with the
department or with an agent authorized by the department on forms
approved by the department. The forms shall be prepared in
cooperation with the Department of Boating and Waterways. The
application shall contain the true name and address of the owner and
of the legal owner, if any, and the hull identification number of the
vessel as may be required by the department. The application shall
be signed by the owner of the vessel and shall be accompanied by a
fee of nine dollars ($9), in addition to the fees required under
subdivision (b), except that an owner of a vessel registered outside
this state who is submitting an application for registration in this
state shall pay a fee of thirty-seven dollars ($37), in addition to
the fees required under subdivision (b).
   (b) (1) Whenever the fee for original registration of a vessel
becomes due between January 1 and December 31 of any even-numbered
year, the application shall be accompanied by a fee of ten dollars
($10), in addition to any other fees that are then due and payable.
   (2) Whenever the fee for original registration of a vessel becomes
due, or is filed with the department, between January 1 and December
31 of any odd-numbered year, the application shall be accompanied by
a fee of twenty dollars ($20) in addition to any other fees that are
then due and payable.
   (c) This section shall become operative on January 1, 2016.

  SEC. 13.    Section 14900 of the Vehicle Code is
amended to read:
   14900.  (a) Upon application for an original class C or M driver's
license, there shall be paid to the department a fee of twenty-five
dollars ($25) for a license that will expire on the fifth birthday of
the applicant following the date of the application. The payment of
the fee entitles the person paying the fee to apply for a driver's
license and to take three examinations within a period of 12 months
from the date of the application or during the period that an
instruction permit is valid, as provided in Section 12509.
   (b) In addition to the application fee specified in subdivision
(a), a person who fails to successfully complete the driving skill
test on the first attempt shall be required to pay an additional fee
of five dollars ($5) for each additional driving skill test
administered under that application.
   (c) The fee specified in subdivision (b) shall be collected in
conjunction with any application submitted on or after July 1, 2003.
   (d) Notwithstanding any other provision of law, of the total
amount of each fee collected pursuant to subdivision (a), one dollar
($1) shall be deposited into the Alternative and Renewable Fuel,
Vehicle Technology, Carbon Reduction, and Clean Air Fund created by
Section 44273 of the Health and Safety Code.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.  
  SEC. 14.    Section 14900 is added to the Vehicle
Code, to read:
   14900.  (a) Upon application for an original class C or M driver's
license, there shall be paid to the department a fee of twenty-four
dollars ($24) for a license that will expire on the fifth birthday of
the applicant following the date of the application. The payment of
the fee entitles the person paying the fee to apply for a driver's
license and to take three examinations within a period of 12 months
from the date of the application or during the period that an
instruction permit is valid, as provided in Section 12509.
   (b) In addition to the application fee specified in subdivision
(a), a person who fails to successfully complete the driving skill
test on the first attempt shall be required to pay an additional fee
of five dollars ($5) for each additional driving skill test
administered under that application.
   (c) The fee specified in subdivision (b) shall be collected in
conjunction with any application submitted on or after July 1, 2003.
   (d) This section shall become operative on January 1, 2016.
 
  SEC. 15.    Section 14900.1 of the Vehicle Code is
amended to read:
   14900.1.  (a) Except as provided in Sections 15250.6 and 15255.1,
upon application for the renewal of a driver's license or for a
license to operate a different class of vehicle, there shall be paid
to the department a fee of twenty-five dollars ($25) for a license
that will expire on the fifth birthday of the applicant following the
date of the application. The payment of the fee entitles the person
paying the fee to apply for a driver's license and to take three
examinations within a period of 12 months from the date of the
application or during the period that an instruction permit is valid,
as provided in Section 12509.
   (b) In addition to the application fee specified in subdivision
(a), a person who fails to successfully complete the driving skill
test on the first attempt shall be required to pay an additional fee
of five dollars ($5) for each additional driving skill test
administered under that application.
   (c) The fee specified in subdivision (b) shall be collected in
conjunction with any application submitted on or after July 1, 2003.
   (d) Notwithstanding any other provision of law, of the total
amount of each fee collected pursuant to subdivision (a), one dollar
($1) shall be deposited into the Alternative and Renewable Fuel,
Vehicle Technology, Carbon Reduction, and Clean Air Fund created by
Section 44273 of the Health and Safety Code.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.  
  SEC. 16.    Section 14900.1 is added to the
Vehicle Code, to read:
   14900.1.  (a) Except as provided in Sections 15250.6 and 15255.1,
upon application for the renewal of a driver's license or for a
license to operate a different class of vehicle, there shall be paid
to the department a fee of twenty-four dollars ($24) for a license
that will expire on the fifth birthday of the applicant following the
date of the application. The payment of the fee entitles the person
paying the fee to apply for a driver's license and to take three
examinations within a period of 12 months from the date of the
application or during the period that an instruction permit is valid,
as provided in Section 12509.
   (b) In addition to the application fee specified in subdivision
(a), a person who fails to successfully complete the driving skill
test on the first attempt shall be required to pay an additional fee
of five dollars ($5) for each additional driving skill test
administered under that application.
   (c) The fee specified in subdivision (b) shall be collected in
conjunction with any application submitted on or after July 1, 2003.
   (d) This section shall become operative on January 1, 2016.