BILL ANALYSIS Ó
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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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