BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 462| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 462 Page 2 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. CONTINUED AB 462 Page 3 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 CONTINUED AB 462 Page 4 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 CONTINUED AB 462 Page 5 **** END **** CONTINUED