BILL ANALYSIS
AB 2522
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Date of Hearing: April 7, 2008
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mark DeSaulnier, Chair
AB 2522 (Arambula) - As Introduced: February 21, 2008
SUBJECT : San Joaquin Valley Air Pollution Control District:
vehicle license fees
SUMMARY : Authorizes the San Joaquin Valley Air Pollution
Control District (San Joaquin Air District) to increase vehicle
license fees up to a maximum of $30. Specifically, this bill :
1)Makes findings and declarations relative to the air quality of
San Joaquin Valley and the need for expanded emission
reduction programs in order to achieve and maintain state and
federal ambient air quality standards.
2)Authorizes the San Joaquin Air District to increase the
current $6 vehicle license fee limit up to but not exceeding
$30 per vehicle per year for incentive-based programs to
achieve surplus emissions reductions.
3)Requires the adoption of a resolution providing for both the
fee increase and a corresponding program for expenditure of
the moneys raised by the increased fees for the reduction of
mobile source emissions.
4)Authorizes the San Joaquin Air District to adopt rules and
regulations to reduce vehicle trips in order to reduce air
pollution from vehicular sources.
5)Authorizes the imposition of the fees until 2024. Provides
that the fees may be imposed after the 2012-13 fiscal year
only if the United States Environmental Protection Agency
approves the San Joaquin Air District's proposed
reclassification of its nonattainment status for ozone from
severe to extreme.
6)Requires that at least $10 million of the fees collected be
used to mitigate the impacts of air pollution on public health
and the environment in disproportionately impacted
environmental justice communities in the San Joaquin Valley.
7)Requires the San Joaquin Air District to convene an
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environmental justice advisory committee to recommend the
neighborhoods that constitute environmental justice
communities, and how to expend funds within those communities.
8)Prior to the fees being effective, requires the California Air
Resources Board (ARB) to make two separate findings that the
San Joaquin Air District:
a) Has undertaken all feasible measures to reduce
nonattainment air pollutants from sources within its
jurisdiction and regulatory control; and,
b) Has notified ARB that fees have been adopted and has
provided ARB with an estimate of the total funds that will
be provided annually by the fees.
9)Requires ARB to file a written copy of its findings with the
Secretary of State within two days of its determination.
10)Requires the Bureau of State Audits to audit the fee
assessment and the expenditures every two years that the fees
are assessed, and to submit these audits to the Legislature
within two weeks of their completion.
11)Requires ARB to assess the San Joaquin Air District's
progress in using any fees to achieve and maintain state and
federal ambient air quality standards every two years that the
fees are assessed, and to submit these assessments to the
Legislature within two weeks of their completion.
12)Requires the San Joaquin Air District to submit an assessment
to the Legislature by January 1, 2010, on the manner in which
vehicle license fees or other types of fees could be imposed
on vehicles that are not registered within its jurisdictional
area, but that travel through it.
13)Provides that no local agency reimbursement is required from
the State Mandates Claim Fund because the local agency has
requested the authority from this legislation.
14)Provides that the provisions of this bill become effective
only if SB 240 is enacted.
EXISTING LAW :
AB 2522
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1)Establishes San Joaquin Air District, 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, and requires
the San Joaquin Air District to adopt and enforce rules and
regulations to achieve and maintain ambient air quality
standards, as provided.
2)Requires the United States Environmental Protection Agency,
under the federal Clean Air Act, to establish national ambient
air quality standards for criteria air pollutants at levels
that are required to protect the public health with an
adequate margin of safety. The federal act provides that
state and local governments have primary responsibility for
the control of air pollution.
3)Requires ARB to achieve the maximum degree of emission
reduction possible from vehicular and other mobile sources in
order to accomplish the attainment of state ambient air
quality standards by the earliest practicable date.
4)Authorizes an air pollution control district designated by ARB
as a state non-attainment area for any pollutant emitted by
motor vehicles to levy a fee up to $6 on motor vehicles
registered within an air district. Requires an air district
imposing such a fee to enact a resolution providing for both
the fee increase and for a corresponding program for
expenditure of the increased fees. The program must provide
for the reduction of air pollution from motor vehicles, and
for related planning, monitoring, enforcement, and technical
studies. After January 1, 2015, reduces the fee cap from $6
to $4.
5)Requires San Joaquin Air District to adopt a schedule of fees
on areawide or indirect emission sources that are regulated,
but for which permits are not issued, to recover its costs
associated with these sources. Authorizes San Joaquin Air
District to impose and additional $1 surcharge, to be paid to
the Department of Motor Vehicles (DMV). DMV must deposit the
revenue into the Motor Vehicle Account for allocation to the
San Joaquin Air District for certain purposes, such a clean
fuels program and motor vehicle use reduction measures.
FISCAL EFFECT : Unknown.
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COMMENTS : According to the author, "the San Joaquin Valley
suffers some of the worst air quality in the world, which poses
a significant threat to public health, the environment, and the
economy of the valley. The Valley has the third highest fine
particulate matter levels in the U.S. and is home to four of the
five worst ozone-polluted cities in the U.S. One in three
Valley families has a member with a respiratory ailment, and the
poor air quality contributes to 460 deaths per year."
The author further asserts that AB 2522 authorizes the San
Joaquin Air District to increase the surcharge on vehicle
licensing fees to $30 annually, per motor vehicle. The funds
generated will be used for incentive based air quality
improvement programs to bring the San Joaquin Valley into
compliance with state and federal air quality standards by the
earliest practicable date.
Background: According to the Assembly Appropriations Committee,
there are currently 2.6 million cars, trucks and motorcycles
registered in the eight county area that comprises the San
Joaquin Air District. Each owner of a motor vehicle registered
in the Counties of Fresno, Kings, Madera, Merced, San Joaquin,
Stanislaus, and Tulare, and the valley portion of Kern County
pays an annual $6 fee, the revenue from which is earmarked for
air quality programs related to vehicle use. In addition, the
San Joaquin Air District is required to impose a $1 fee on
annual motor vehicle registration to reduce emissions through
activities such as clean fuels programs and adoption of motor
vehicle use reduction measures. These two fees combine to
generate $18 million annually, with a small percentage retained
by the California Department of Motor Vehicles to pay for its
imposition and collection costs.
If the San Joaquin Air District fully exercises the authority
provided by this bill, annual revenue generated by the $36 air
pollution fee would initially amount to $94 million, an increase
of $76 million over current revenue generated by the combined $7
in fees. Because population growth in the San Joaquin Valley is
currently among the highest in California and is projected to
continue to outpace the rest of the state, this revenue would
increase substantially over the years.
Support : Supporters indicate that "poor air quality is a
significant threat to public health, the environment, and the
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economy of the region. The San Joaquin Valley does not meet
state and federal ambient air quality standards. Therefore,
creating a program that combines more strict clean air rules and
regulations and ongoing funding to clean up sources of air
pollution is critical."
According to the San Joaquin Air District, "approximately 85% of
the necessary emissions reductions will come from regulations,
but a substantial increase in incentive funding will be
necessary in order to achieve the remainder of the reductions
necessary to attain federal air quality standards for ozone and
particulate matter. The incentive funding is targeted at mobile
sources of pollution that account for 80% of the nitrogen oxide
emissions in the San Joaquin Valley."
Opposition : Writing in opposition, the Stop Hidden Taxes
Coalition indicates that "In the past five years, the California
Legislature and local governments have tried to impose more than
$7 billion in new taxes while avoiding constitutional approval
requirements for tax increases. The strategy is to disguise
taxes as mere regulatory "fees" in order to avoid the public
debate and rigorous vote requirement that voters have repeatedly
demanded before taxes are raised."
The California AAA Clubs assert that the bill "violates the
California Constitution, which requires two-thirds local voter
approval for special taxes (California Constitution, Article
XIII C, Section 2(d)). Special taxes are imposed for specific
purposes (Article XIII, Section 1(d)). The surcharges proposed
in AB 2522 would be assessed only against automobiles and not
fairly apportioned among all sources of the pollution. In
addition, the vehicle owners who must pay the assessment derive
no special benefit above and beyond the general public. As
such, the surcharge is not a fee but rather a tax which must be
presented to the electorate and approved with a supermajority
vote."
Contingent enactment : This bill would only take effect if SB
240 (Florez) is also enacted and becomes effective. SB 240 is
similar to this bill, however, SB 240 did not pass out of the
Assembly Appropriations Committee.
Double referral : This bill is also referred to the Committee on
Local Government.
AB 2522
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REGISTERED SUPPORT / OPPOSITION :
Support
Association of Irritated Residents
California Rural Legal Assistance Foundation
Coalition for Clean Air
Natural Resources Defense Council
Planning and Conservation League
San Joaquin Valley Air Pollution Control District
Tri-Valley CAREs
Union of Concerned Scientists
Opposition
Air Transport Association
Automobile Club of Southern California
BNSF Railway Company
The Boeing Company
California Aerospace Technology Association
California Building Industry Association
California Business Properties Association
California Business Roundtable
California Chamber of Commerce
California Farm Bureau Federation
California Fisheries and Seafood Institute
California Forestry Association
California Grocers Association
California Hotel & Lodging Association
California Independent Oil Marketers Association (CIOMA)
California Independent Petroleum Association
California League of Food Processors
California Manufacturers & Technology Association
California Metals Coalition
California Motor Car Dealers Association
California Natural Gas Producers Association
California Paint Council
California Portland Cement Company
California Restaurant Association
California Retailers Association
California Short Line Railroad Association
California Space Authority
California State Automobile Association
California Taxpayers' Association
Caterpillar Inc.
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Chemical Industry Council of California
Consumer Specialty Products Association
Consulting Engineers and Land Surveyors of California (CELSOC)
Contra Costa Taxpayers Association
Del Monte
Employers Council of Mendocino County
Green Diamond Resource Company
Grocery Manufacturers of America
Howard Jarvis Taxpayers Association
Inland Valley Manufacturers' Association
Intel Corporation
International Council of Shopping Centers
J.F. Shea Co., Inc.
Kimberly-Clark Corporation
Lee & Keiter Enterprises
Longs Drug Stores
N-Tech Industries, Ukiah, CA
National Association of Industrial and Office Properties -
California Chapters
National Gypsum Company
National Paint and Coatings Association
Novartis Pharmaceuticals
Orange County Taxpayers Association
Pacific Merchant Shipping Association
Retail Industry Leaders Association
Rubber Manufacturers Association
Selzer Realty, Ukiah, CA
Solar Turbines Incorporated
Sonoma County Taxpayers' Association
Soper-Wheeler Company
Styrene Information Research Council
United Chambers of Commerce of the San Fernando Valley
Union Pacific Railroad
United Organization of Taxpayers Inc.
Ventura County Taxpayers Association
Verizon Wireless
Vulcan Materials Co.
Western Plant Health Association
Western States Petroleum Association
Wine Institute
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093