BILL NUMBER: AB 462	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 7, 2011
	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN ASSEMBLY  MARCH 22, 2011

INTRODUCED BY   Assembly Member Bonnie Lowenthal

                        FEBRUARY 15, 2011

   An act to amend Section 44229 of the Health and Safety Code,
relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 462, as amended, Bonnie Lowenthal. Air pollution: vehicular
pollution.
   Existing law authorizes  an   specified 
air pollution control  district or a regional  
districts and  air quality management  district
  districts  , until January 1, 2015, to establish
a fee of up to $6 on the registration of motor vehicles registered in
the district. Existing law requires the revenues from the first $4
of the fee  to  be used for specified purposes. Existing law
requires that the revenues from the last $2 of the fee be used for
specified programs that the district determines remediate air
pollution harms created by motor vehicles.
   This bill would additionally authorize a district based on that
determination to use the last $2 of the fee for programs to replace
onboard natural gas tanks on schoolbuses owned by a school district
that are 14 years or older, with a funding amount not to exceed
$20,000 per bus and to enhance deteriorating natural gas fueling
dispensers of fueling infrastructure operated by a school district,
with a one-time funding amount not to exceed $500 per dispenser. 
   This bill would incorporate additional changes in Section 44229 of
the Health and Safety Code, proposed by AB 470, to be operative only
if AB 470 and this bill are both chaptered and become effective
January 1, 2012, and this bill is chaptered last. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 44229 of the Health and Safety Code, as amended
by Section 4 of Chapter 707 of the Statutes of 2004, is amended to
read:
   44229.  (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts, which
shall use the revenues resulting from the first four dollars ($4) of
each fee imposed to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
   (b) Notwithstanding the provisions of  Section 
 Sections  44241 and  Section  44243, a
district shall use the revenues resulting from the next two dollars
($2) of each fee imposed pursuant to Section 44227 to implement the
following programs that the district determines remediate air
pollution harms created by motor vehicles on which the surcharge is
imposed:
   (1) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (2) The new purchase, retrofit, repower, or add-on equipment for
previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the
compliance date of that rule or standard, whichever is later, if the
state board has determined that the rule or standard complies with
Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be
funded pursuant to this chapter. The districts shall follow any
guidelines developed under subdivision (a) of Section 44287 for
awarding grants under this program.
   (3) The new purchase of schoolbuses pursuant to the Lower-Emission
School Bus Program adopted by the state board.
   (4) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
   (5) The replacement of onboard natural gas fuel tanks on
schoolbuses owned by a school district that are 14 years or older,
not to exceed twenty thousand dollars ($20,000) per bus.
   (6) The enhancement of deteriorating natural gas fueling
dispensers of fueling infrastructure operated by a school district
with a one-time funding amount not to exceed five hundred dollars
($500) per dispenser.
   (c) The Department of Motor Vehicles may annually expend not more
than  the following percentages   1 percent
 of the fees collected pursuant to Section 44227 on
administrative  costs:   costs.  
   (1) During the first year after the operative date of this
chapter, not more than 5 percent of the fees collected may be used
for administrative costs.  
   (2) During the second year after the operative date of this
chapter, not more than 3 percent of the fees collected may be used
for administrative costs.  
   (3) During any year subsequent to the second year after the
operative date of this chapter, not more than 1 percent of the fees
collected may be used for administrative costs. 
   (d) A project funded by the program shall not be used for credit
under any state or federal emissions averaging, banking, or trading
program.  Emission   An emission  reduction
generated by the program shall not be used as marketable emission
reduction credits or to offset any emission reduction obligation of
any person or entity. Projects involving new engines that would
otherwise generate marketable credits under state or federal
averaging, banking, and trading programs shall include transfer of
credits to the engine end user and retirement of those credits toward
reducing air emissions in order to qualify for funding under the
program. A purchase of a low-emission vehicle or of equipment
pursuant to a corporate or a controlling board's policy, but not
otherwise required by law, shall generate surplus emissions
reductions and may be funded by the program.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
   SEC. 1.5.    Section 44229 of the   Health
and Safety Code   , as amended by Section 4 of Chapter 707
of the Statutes of 2004,   is amended to read: 
   44229.  (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts, which
shall use the revenues resulting from the first four dollars ($4) of
each fee imposed to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
   (b) Notwithstanding the provisions of  Section 
 Sections  44241 and  Section  44243, a
district shall use the revenues resulting from the next two dollars
($2) of each fee imposed pursuant to Section 44227 to implement the
following programs that the district determines remediate air
pollution harms created by motor vehicles on which the surcharge is
imposed:
   (1) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (2) The new purchase, retrofit, repower, or add-on equipment for
previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the
compliance date of that rule or standard, whichever is later, if the
state board has determined that the rule or standard complies with
Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be
funded pursuant to this chapter. The districts shall follow any
guidelines developed under subdivision (a) of Section 44287 for
awarding grants under this program.
   (3) The  new  purchase of  new, or retrofit
of emissions control equipment for existing,  schoolbuses
pursuant to the Lower-Emission School Bus Program adopted by the
state board.
   (4) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute. 
   (5) The replacement of onboard natural gas fuel tanks on
schoolbuses owned by a school district that are 14 years or older,
not to exceed twenty thousand dollars ($20,000) per bus.  
   (6) The enhancement of deteriorating natural gas fueling
dispensers of fueling infrastructure operated by a school district
with a one-time funding amount not to exceed five hundred dollars
($500) per dispenser. 
   (c) The Department of Motor Vehicles may annually expend not more
than  the following percentages   1 percent
 of the fees collected pursuant to Section 44227 on
administrative  costs:   costs.  
   (1) During the first year after the operative date of this
chapter, not more than 5 percent of the fees collected may be used
for administrative costs.  
   (2) During the second year after the operative date of this
chapter, not more than 3 percent of the fees collected may be used
for administrative costs.  
   (3) During any year subsequent to the second year after the
operative date of this chapter, not more than 1 percent of the fees
collected may be used for administrative costs. 
   (d)  No   A  project funded by the
program shall  not  be used for credit under any state or
federal emissions averaging, banking, or trading program.  No
  An  emission reduction generated by the program
shall  not  be used as marketable emission reduction credits
or to offset any emission reduction obligation of any person or
entity. Projects involving new engines that would otherwise generate
marketable credits under state or federal averaging, banking, and
trading programs shall include transfer of credits to the engine end
user and retirement of those credits toward reducing air emissions in
order to  quality   qualify  for funding
under the program. A purchase of a  low-emision 
 low-emission  vehicle or of equipment pursuant to a
corporate or a controlling board's policy, but not otherwise required
by law, shall generate surplus emissions reductions and may be
funded by the program.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
   SEC. 2.    Section 1.5 of this bill incorporates
amendments to Section 44229 of the Health and Safety Code proposed by
both this bill and AB 470. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2012, (2) each bill amends Section 44229 of the Health and Safety
Code, and (3) this bill is enacted after AB 470, in which case
Section 1 of this bill shall not become operative.