BILL ANALYSIS
AB 2522
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2007-2008 Regular Session
BILL NO: AB 2522
AUTHOR: Arambula
AMENDED: May 23, 2008
FISCAL: Yes HEARING DATE: June 23, 2008
URGENCY: No CONSULTANT: Randy Pestor
SUBJECT : SAN JOAQUIN VALLEY UNIFIED APCD FEES
SUMMARY :
Existing law :
1) Authorizes an air pollution control district (APCD)
designated by the Air Resources Board (ARB) as a state
nonattainment area for any pollutant emitted by motor
vehicles to levy a fee up to $2 on motor vehicles
registered within the district. The APCD must meet certain
requirements, such as adopting a resolution providing for
the fee and a corresponding program for reducing motor
vehicle air pollution pursuant to certain California Clean
Air Act requirements. Health and Safety Code 44223.
2) Authorizes an APCD to increase the 44223 fee up to $6 if
certain conditions similar to those for the 44223 fee are
met. This provision sunsets January 1, 2015, and after
that date the fee cap is reduced from $6 to $4. Health and
Safety Code 44225.
3) Requires the San Joaquin Valley Unified APCD (SJVUAPCD) to
adopt a schedule of fees on areawide or indirect emission
sources that are regulated, but for which permits are not
issued, to recover SJVUAPCD costs associated with these
sources. Health and Safety Code 40604.
4) Provides for fees upon a motor vehicle registration to be
levied by certain districts, including a $1 SJVUAPCD
surcharge, and paid to the Department of Motor Vehicles
(DMV). The DMV must deposit the revenue into the Motor
Vehicle Account for allocation to the SJVUAPCD for certain
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purposes, such a clean fuels program and motor vehicle use
reduction measures. Health and Safety Code 40605, Vehicle
Code 9250.16.
This bill :
1) Authorizes the SJVUAPCD to:
a) Increase the 44223 and 44225 fees up to $30 per
motor vehicle to establish and implement incentive-based
programs to achieve surplus emissions reductions that
are needed to remediate air pollution harms created by
motor vehicles on which the surcharge is set and are
intended to achieve and maintain state and federal
ambient air quality standards.
b) Adopt rules and regulations to reduce vehicle trips
in order to reduce air pollution from vehicular sources.
This authority is notwithstanding a provision that
prohibits certain entities from requiring an employer to
implement an employee trip reduction program unless
certain conditions are met.
2) Provides that the above fees are in addition to other fees
set by the district for the 2009-10 to 2023-24 fiscal
years, specifies that these fees are to achieve and
maintain state and federal ambient air quality standards,
requires at least $10 million of that amount to be used to
mitigate air pollution impacts on public health and the
environment in disproportionately impacted environmental
justice (EJ) communities, and requires the SJVUAPCD to
convene an EJ advisory committee to recommend neighborhoods
that constitute EJ communities and expenditure of funds
within these communities.
3) Allows the fees to be assessed after the 2012-2013 fiscal
year only if the U.S. Environmental Protection Agency (U.S.
EPA) approves the SJVUAPCD's proposed reclassification of
its nonattainment status for ozone from severe to extreme.
4) Provides that the bill's requirements are operative only
after the ARB makes findings that: a) the SJVUAPCD has
undertaken all feasible measures to reduce nonattainment
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air pollutants from SJVUAPCD sources; and b) the SJVUAPCD
has notified the ARB that fees have been adopted and
provided the ARB with an estimate of total funds that will
be provided annually by each of those fees. The ARB must
file its findings with the Secretary of State within two
days of its determination, and the fees must be collected
nine months after this filing.
5) Requires the ARB to assess the SJVUAPCD's progress in using
the above fees to achieve and maintain state and federal
ambient air quality standards every two years that the fee
is assessed, and must submit these assessments to the
Legislature within two weeks of their completion.
6) Contains related legislative intent.
COMMENTS :
1) Purpose of Bill . According to the author, "The San Joaquin
Valley suffers from 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. AB 2522
provides significant additional funding to improve air
quality standards for the San Joaquin Valley. This is
accomplished by increasing funds generated from ongoing,
annual funding sources. 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. AB 2522 is needed for the health, the economy, and
the people of the Valley."
The author also notes that "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."
According to the author, "The adverse economic impact of the
Valley's air quality is staggering, causing 192,000 missed
school and workdays annually while saddling taxpayers with
$3.2 billion per year in community health costs.
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Additionally, vehicles account for 80% of the smog causing
NOx emitted in the Valley."
2) Support and opposition concerns . Supporters generally cite
poor air quality causing a significant threat to the
environment and the region's economy - as well as health
and environmental impacts that disproportionately effect
minority and low-income populations.
Some opponents generally assert that a fee is inappropriate
(and attempt to make the case that a fee is a tax). Others
"believe there continues to be no reason to further
increase the cost of vehicle ownership . . ."
3) Related legislation . AB 2522 is similar to the latest
version of SB 240 (Florez) of 2007, which was held on the
Assembly Appropriations Committee Suspense File. However,
earlier versions of this bill, including the version
approved by the Environmental Quality Committee, set fees
on other sources and the fees were mandatory not
permissive.
4) Clarification needed . AB 2522 allows the fees to be
assessed after the 2012-2013 fiscal year only if U.S. EPA
approves the SJVUAPCD's proposed reclassification of its
nonattainment status for ozone from severe to extreme. A
similar provision was also included in the latest version
of SB 240, which was not considered by the Environmental
Quality Committee.
Due to the severity of SJVUAPCD's air quality, however, it may
necessary for the fee to be set even if U.S. EPA does not
approve the reclassification.
SOURCE : Assemblymember Arambula
SUPPORT : American Lung Association, Association of
Irritated Residents, California Cotton Ginners
and Growers Association, California Grain and
Feed Association, California League of
Conservation Voters, California Rural Legal
Assistance Foundation, Coalinga, Coalition for
Clean Air, Community Action to Fight Asthma,
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Huron, Michael J. Rubio (Kern County
Supervisor), Orange Cove, Parlier, Planning and
Conservation League, SJVUAPCD, Sierra Club
California, Tri-Valley CAREs, Union of
Concerned Scientists,
OPPOSITION : California Citrus Mutual, California Motor Car
Dealers Association, California New Car Dealers
Association, California State Automobile
Association, Howard Jarvis Taxpayers
Association, Stop Hidden Taxes Coalition