BILL ANALYSIS Ó AB 462 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: AB 462 AUTHOR: Lowenthal AMENDED: June 7, 2011 FISCAL: No HEARING DATE: June 27, 2011 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : SCHOOLBUS RETROFIT SUMMARY : Existing law : 1) Provides the California Air Resources Board (ARB) with primary responsibility for control of mobile source air pollution, including adoption of rules for reducing vehicle emissions and the specification of vehicular fuel composition. (Health and Safety Code §39000 et seq. and §39500 et seq.). The ARB must coordinate efforts to attain and maintain ambient air quality standards. (§39003). 2) Provides that air pollution control districts (APCDs) and air quality management districts (AQMDs) have primary responsibility for controlling air pollution from all sources, other than emissions from mobile sources. (§40000 et seq.). Certain APCDs and AQMDs are established, with related authority, including the Sacramento Metropolitan Air Quality Management District (SMAQMD). (§40950 et seq.). 3) Authorizes an APCD or AQMD, until January 1, 2015, to levy a fee up to $6 on motor vehicles registered in the district, with the first $4 in revenue of each fee used to reduce air pollution from motor vehicles and to carry out relating planning, monitoring, enforcement, and technical studies necessary to implement the California Clean Air Act of 1988; and the next $2 of each fee to be used for certain purposes, including purchase of new school buses in accordance with the Lower-Emission School Bus Program adopted by the ARB. (§44229). Similar provisions are AB 462 Page 2 specified for the SMAQMD. (§41081). This bill : 1) Allows the $2 portion of the fee for APCDs and AQMDs to also be used for: a) Replacement of onboard natural gas fuel tanks on school district-owned school buses that are 14 years or older, not to exceed $20,000 per bus. b) Enhancement of deteriorating natural gas fueling dispensers of school district-operated fueling infrastructure with a one-time funding amount not exceeding $500 per dispenser. 2) Makes technical and clarifying amendments, and contains double-jointing amendments to address chaptering-out problems with AB 470 (Halderman). COMMENTS : 1) Purpose of Bill . According to the South Coast Air Quality Management District, sponsor of AB 462, about 1,400 alternative fuel schoolbuses have been purchased by school districts within its jurisdiction through ARB's Lower-Emission School Bus Program. These schoolbuses are primarily powered by compressed natural gas (CNG) with fuel tanks having a useable life of 15 years. About 200 of these CNG schoolbuses will reach the end of their 15-year fuel tank lifespan by 2011-2012, with 100 to 150 additional schoolbuses reaching the end of their fuel tank lifespan each following year. A replacement fuel tank costs about $20,000 compared with the approximate $169,000 cost of a new bus. AB 462 provides a funding mechanism for replacement of these CNG fuel tanks along with improvements to certain school district-operated fueling infrastructure. 2) Background . The primary goal of ARB's Lower-Emission School Bus Program is to reduce exposure to cancer-causing and smog-forming pollution. The program provides funding AB 462 Page 3 for new and safer schoolbuses, as well as air pollution control equipment (retrofit devices) on existing buses. Beginning in the 2000-01 fiscal year budget, $50 million was allocated to the ARB for the program. According to the ARB in 2000, "ARB and local air districts recognize that PM Ýparticulate matter] emissions from diesel-fueled engines and vehicles are a serious public health concern, particularly for school age children who are more susceptible to its harmful health effects. When implemented, the Lower-Emission School Bus Program will provide California's school children with less polluting, and in many cases, safer school transportation." AB 923 (Firebaugh) Chapter 707, Statutes of 2004, among other things, authorized APCDs, AQMDs, and SMAQMD to increase the registration fee by $2 to be used for certain purposes, including purchase of new schoolbuses in accordance with the Lower-Emission School Bus Program adopted by the ARB. Voters approved Proposition 1B (the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006) November 7, 2006. This bond act provided for a bond issue not to exceed $19,925,000,000 for certain purposes, including $200 million for schoolbus retrofit and replacement to reduce air pollution and children's exposure to diesel exhaust. SB 88 (Committee on Budget and Fiscal Review) Chapter 181, Statutes of 2007, contained various provisions to implement Proposition 1B, including the California Clean Schoolbus Program (Health and Safety Code §44299.90 et seq.) which requires ARB to allocate funds in accordance with the following: a) replace all schoolbuses in operation with a 1976 model year or earlier; and b) remaining funds apportioned to local APCDs and AQMDs based on the number of schoolbuses with 1977 to 1986 model years (each school district must determine the percentage of its allocation to spend between replacement of schoolbuses of model years 1977 to 1986, and retrofit of schoolbuses of any model year). All schoolbuses replaced under this program must be scrapped. SB 88 also requires ARB to prepare guidelines for the program. AB 462 Page 4 AB 470 allows the $2 portion of the fee for APCDs and AQMDs enacted under AB 923 of 2004 to also be used for replacement of onboard natural gas fuel tanks on school district-owned school buses that are 14 years or older (not to exceed $20,000 per bus) and enhancement of deteriorating natural gas fueling dispensers of school district-operated fueling infrastructure (with a one-time funding amount not exceeding $500 per dispenser). 3) Related legislation . AB 470 (Halderman) allows the $2 portion of the fee for APCDs, AQMDs, and the SMAQMD to also be used for retrofitting existing schoolbus emission control equipment in accordance with the Lower-Emission School Bus Program. AB 462 and AB 470 contain double-jointing amendments to address chaptering-out problems. 4) Clarification needed . Amendments are needed to: a) require the programs added by this bill to be pursuant to the Lower-Emission School Bus Program adopted by the ARB, b) add these revised program amendments to provisions relating to the SMAQMD, and c) revise the corresponding double-jointing provisions. SOURCE : South Coast Air Quality Management District SUPPORT : American Lung Association, Bay Area Air Quality Management District, California Air Pollution Control Officers Association, California Association of School Transportation Officials, California Council for Environmental and Economic Balance, California School Boards Association, California School Employees Association, Coalition for Clean Air, Colton Joint Unified School District, Desert Sands Unified School District, Los Angeles Unified School District, Natural Resources Defense Council, Planning and Conservation League, Pupil Transportation Cooperative, The Gualco Group, Inc., San Diego Gas & Electric Company, Sempra Energy Utilities, Southern California AB 462 Page 5 Gas Company, Union of Concerned Scientists, West County Transportation Agency OPPOSITION : None on file