BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 462|
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                                 THIRD READING


          Bill No:  AB 462
          Author:   Bonnie Lowenthal (D)
          Amended:  6/30/11 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  7-0, 6/14/11
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley
          NO VOTE RECORDED:  Rubio, Simitian

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 6/27/11
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           ASSEMBLY FLOOR  :  58-1, 4/14/11 - See last page for vote


           SUBJECT  :    Vehicle registration surcharge:  air districts

           SOURCE  :     South Coast Air Quality Management District


           DIGEST  :    This bill allows air pollution control districts 
          and air quality management districts to use vehicle 
          registration surcharge revenues to replace natural gas fuel 
          tanks and to enhance natural gas fueling dispensers.

           ANALYSIS  :    Existing law establishes a basic vehicle 
          registration fee of $34, plus a $22 surcharge for 
          additional personnel for the California Highway Patrol, and 
          authorizes local agencies to impose separate vehicle 
          registration fee surcharges in their respective 
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          jurisdictions for a variety of special programs, including 
          authorizing a local air district, until January 1, 2015, to 
          levy a surcharge of up to six dollars on registration fees 
          of motor vehicles registered within that district.  After 
          January 1, 2015 the maximum surcharge that an air district 
          may levy is reduced to four dollars per registered vehicle. 
           An air district may only impose the fee if the district 
          board adopts a resolution providing for both the fee and a 
          corresponding program for the reduction of air pollution 
          from motor vehicles in order to meet its obligation under 
          the California Clean Air Act of 1988.

          Upon request from an air district, the Department of Motor 
          Vehicles (DMV) collects these fees upon renewal of a 
          vehicle's registration and, after deducting up to one 
          percent of the fees for administrative costs it incurs, 
          distributes the remaining revenues to the air district 
          based upon the amount of fees collected from motor vehicles 
          registered within that district.

          Under existing law, revenue from the first four dollars of 
          the six dollars surcharge must be used to reduce air 
          pollution from motor vehicles and to carry out related 
          planning, monitoring, enforcement, and technical studies 
          necessary to implement the California Clean Air Act of 
          1988.  Revenue from the next two dollars may only be used 
          to implement the following programs that the district 
          determines remediate air pollution harms created by motor 
          vehicles on which the surcharge is imposed:

           The purchase of new school buses pursuant to the 
            Lower-Emission School Bus Program adopted by the Air 
            Resources Board (ARB).

           Projects eligible for grants under the Carl Moyer 
            Memorial Air Quality Standards Attainment Program.

           The purchase, retrofit, repower, or addition of equipment 
            for previously unregulated agricultural sources of air 
            pollution that become subject to regulation, but only 
            until the compliance date of the regulation.

           An accelerated vehicle retirement or repair program 
            adopted by ARB.

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          This bill:

          1. Adds two projects to the list of programs that air 
             pollution control districts and air quality management 
             districts may fund using the last two dollars of the six 
             dollars vehicle registration surcharge: 

                 The replacement of onboard natural gas fuel tanks 
               on school buses owned by a school district that are 14 
               years of age or older, not to exceed $20,000 per bus.

                 The enhancement of natural gas fueling dispensers 
               operated by a school district with a one-time funding 
               amount not to exceed $500 per dispenser. 

          2. Contains double-jointing language with AB 470 
             (Holderman).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  6/30/11)

          South Coast Air Quality Management District (source)
          American Lung Association
          Bay Area Air Quality Management District
          California Air Pollution Control Officers Association
          California Association of School Transportation Officials
          California School Boards 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
          Public Transportation Cooperative JPA
          San Diego Gas & Electric Company
          Sempra Energy Utilities
          Southern California Gas Company
          Union of Concerned Scientists
          West County Transportation Agency

           ARGUMENTS IN SUPPORT  :    According to the sponsor, the 

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          South Coast Air Quality Management District, entities 
          within its jurisdiction have purchased about 1,400 
          alternative fuel school buses, primarily powered by 
          compressed natural gas (CNG), through the ARB's 
          Lower-Emission School Bus Program.  The fuel tanks on these 
          buses have a useable life of 15 years.  About 200 of these 
          CNG school buses will reach the end of their 15-year fuel 
          tank lifespan by 2011-12.  The fuel tanks in 100 to 150 
          additional buses will also reach the end of their useable 
          lives each year thereafter.  The price for purchasing a new 
          bus is approximately $169,000, whereas the replacement of 
          fuel tanks costs approximately $20,000 per bus and will 
          extend the life of the bus another 10 to 15 years.  This 
          bill allows local funds to be used for the replacement of 
          fuel tanks for CNG buses that are 14 or more years old, 
          regardless of how a school district originally paid for 
          their purchase.  This will enable air districts to extend 
          the useful life of these cleaner, alternative-fueled buses, 
          relieve public school districts from significant 
          replacement costs, and protect public health and safety.


          ASSEMBLY FLOOR  : 
          AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, 
            Fong, Fuentes, Furutani, Gatto, Gordon, Hagman, 
            Halderman, Hall, Hayashi, Roger Hernández, Hill, Huber, 
            Hueso, Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, 
            Mitchell, Monning, Nestande, Nielsen, Pan, Perea, V. 
            Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wieckowski, Yamada, John A. 
            Pérez
          NOES: Fletcher
          NO VOTE RECORDED: Alejo, Butler, Conway, Donnelly, 
            Galgiani, Garrick, Gorell, Grove, Harkey, Jones, Knight, 
            Logue, Mansoor, Mendoza, Miller, Morrell, Norby, Olsen, 
            Wagner, Williams, Vacancy


          JJA:do  6/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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