BILL ANALYSIS
AB 1527
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1527 (Lieu)
As Amended July 23, 2009
Majority vote
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|ASSEMBLY: |77-0 |(June 2, 2009) |SENATE: |39-0 |(September 2, |
| | | | | |2009) |
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Original Committee Reference: TRANS .
SUMMARY : Authorizes a motor vehicle emission reduction project
to be jointly funded from multiple air quality programs,
including the Carl Moyer Memorial Air Quality Standards
Attainment Program (Carl Moyer), and the Goods Movement Emission
Reduction Program (GMERP).
The Senate amendments :
1)Delete the requirement of the California Air Resources Board
(ARB) to consult with the Energy Commission (EC) in revising
their program guidelines.
2)Delete the use of funds from the Air Quality Improvement
Program for commingling with Carl Moyer or GMERP bond funds.
3)Restrict when federal funds are commingled, only those federal
funds that are designed to reduce greenhouse gas (GHG)
emissions.
4)Prohibit ARB from excluding from the cost effectiveness
calculation funds from the cost-effectiveness calculation
should the exclusion result in less overall emission
reductions.
EXISTING LAW :
1)Establishes ARB to set statewide air quality standards and
regulate emissions from motor vehicles, fuels, and consumer
products. ARB, along with the 35 local air quality districts
that regulate other sources of air pollution, monitors air
pollution and administers regulatory and incentive programs to
improve air quality. Establishes ARB as the lead entity for
implementation of the Global Warming Solutions Act of 2006.
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2)Authorizes, through the enactment of Proposition 1B as
approved by the statewide voters in November 2006, the state
to sell approximately $20 billion of general obligation bonds
to fund transportation projects. Of the $20 billion,
allocates $1 billion into the GMERP to be administered by ARB
to quickly reduce air pollution emissions, not otherwise
required by law or regulation, and reduce the health risk from
freight movement along California's priority trade corridors.
The major sources eligible for bond funding include heavy-duty
trucks, locomotives, shore side power for cargo ships,
commercial harbor craft, cargo handling equipment, and
infrastructure for electrification of truck stops,
distribution centers, and other places trucks congregate.
3)Establishes Carl Moyer as a grant program to fund the
incremental cost of cleaner-than required heavy-duty engines.
Carl Moyer is an integral part of California's strategy to
attain federal air quality standards by achieving emission
reductions early or in excess of what is required by
regulation. Carl Moyer has provided funding for the
incremental cost of a diverse range of project types,
including purchase of new alternative-fuel heavy-duty vehicles
(primarily transit buses and trash trucks) and engine
replacements (repowers) for agricultural irrigation pumps,
construction equipment, and marine vessels.
4)Prohibits until January 1, 2015, project grants with a
cost-effectiveness value of more than $13,600 per ton of NOx
reduced in the state. On and after January 1, 2015, project
grants are prohibited with a cost-effectiveness value of more
than $12,000 per ton of NOx reduced in the state.
5)Develops, pursuant to AB 118 (Nunez) Chapter 750, Statutes of
2007, funding programs for the reduction of greenhouse gases
(GHG) and the development of clean fuel and vehicle
technologies. AB 118 created three distinct programs aimed at
improving air quality and advancing alternative fuels and
clean technologies:
a) The Air Quality Improvement Program administered by ARB
is designed to fund air quality improvement projects
related to fuel and vehicle technologies. ARB must consult
with local air districts and work in coordination with EC;
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b) The Alternative and Renewable Fuel and Vehicle
Technology Program administered by the EC. AB 118 directs
that projects be evaluated on their proposed reduction of
air pollutants, cost effectiveness, contribution to
regional air quality improvement, and ability to promote
alternative fuels or technologies; and,
c) The Enhanced Fleet Modernization Program, administered
by the Bureau of Automotive Repair, primarily directed at
light-duty fleet vehicle replacements.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, pressure to allow bond proceeds or other monies to
fund emissions reduction and goods movement projects, but at no
additional state cost. (Various special funds)
COMMENTS : According to the author, Carl Moyer and GMERP are
designed to reduce emissions throughout the state by providing
incentives for projects that lead to air quality improvements.
However, current law doesn't allow for a project using Carl
Moyer and GMERP funds to be developed to increase air quality
and simultaneously reduce greenhouse gas emissions by adding
additional state funding such as funds from AB 118.
The author and sponsor have indicated that their intention of
introducing this bill is to seek GMERP and Carl Moyer funding
flexibility so that any use of state AB 118 clean air/vehicle
program funds would not detrimentally impact a project's
competitiveness when the project is considered for funding
through the GMERP or Carl Moyer. Further, they have indicated
that they will not change funding processes and
cost-effectiveness calculations in a way that would negatively
compromise criteria pollutant or toxic air contaminant emission
reductions.
Arguments in Support:
1)By providing more flexibility in the administration of the air
quality vehicle emission programs by facilitating the
commingling of state program clean air vehicle funds, an
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enhanced project as funded by a specific program could be
realized that otherwise could not be achieved if a project was
not allowed supplemental funding from another program.
2)The California Dump Truck Owners Association indicates that
"our industry has recently been negatively impacted by actions
taken by ARB with promulgation of the Truck and Bus Rule. The
trucking industry is experiencing the worst economic downturn
since de-regulation with minimal work and high diesel prices.
The small trucking businesses are truly struggling to survive
at this point. These ill-conceived ARB air quality
regulations will put the nail in the coffin of small trucking
businesses in this state. This bill seeks to provide
additional funding for our impacted membership."
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
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