BILL NUMBER: AB 470	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2011
	AMENDED IN SENATE  JUNE 7, 2011
	AMENDED IN ASSEMBLY  APRIL 26, 2011
	AMENDED IN ASSEMBLY  MARCH 21, 2011

INTRODUCED BY   Assembly Member Halderman

                        FEBRUARY 15, 2011

   An act to amend Sections 41081 and 44229 of the Health and Safety
Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 470, as amended, Halderman. Air pollution districts: fees:
schoolbus retrofits.
   Existing law authorizes specified air pollution control and air
quality management districts to adopt a fee applicable to motor
vehicles registered in counties within that district, and requires
the fee to be collected by the Department of Motor Vehicles. Existing
law, until January 1, 2015, authorizes the amount of the fee to be
up to $6. 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 to be used for specified
programs that the district determines remediate air pollution harms
created by motor vehicles, including purchases of new schoolbuses
pursuant to the State Air Resources Board's Lower-Emission School Bus
Program.
   This bill would additionally authorize a district based on that
determination to use the last $2 of the fee to retrofit emissions
control equipment for existing schoolbuses pursuant to the State Air
Resources Board's Lower-Emission School Bus Program.
   This bill would incorporate additional changes in  Section
  Sections 41081 and  44229 of the Health and
Safety Code, proposed by AB 462, to be operative only if AB 462 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 41081 of the Health and Safety Code, as amended
by Section 2 of Chapter 707 of the Statutes of 2004, is amended to
read:
   41081.  (a) Subject to Article 3.7 (commencing with Section 53720)
of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
Code, or with the approval of the board of supervisors of each county
included, in whole or in part, within the Sacramento district, the
Sacramento district board may adopt a surcharge on the motor vehicle
registration fees applicable to all motor vehicles registered in
those counties within the Sacramento district whose boards of
supervisors have adopted a resolution approving the surcharge. The
surcharge shall be collected by the Department of Motor Vehicles and,
after deducting the department's administrative costs, the remaining
funds shall be transferred to the Sacramento district. Prior to the
adoption of any surcharge pursuant to this subdivision, the district
board shall make a finding that any funds allocated to the district
as a result of the adoption of a county transportation sales and use
tax are insufficient to carry out the purposes of this chapter.
   (b) The surcharge shall not exceed six dollars ($6).
   (c) After consulting with the Department of Motor Vehicles on the
feasibility thereof, the Sacramento district board may provide, in
the surcharge adopted pursuant to subdivision (a), to exempt from all
or part of the surcharge any category of low-emission motor vehicle.

   (d) Funds received by the Sacramento district pursuant to this
section shall be used by that district as follows:
   (1) The revenues resulting from the first four dollars ($4) of
each surcharge shall be used to implement reductions in emissions
from vehicular sources, including, but not limited to, a clean fuels
program and motor vehicle use reduction measures.
   (2) The revenues resulting from the next two dollars ($2) of each
surcharge shall be used to implement the following programs that
achieve emission reductions from vehicular sources and off-road
engines, to the extent that the district determines the program
remediates air pollution harms created by motor vehicles on which the
surcharge is imposed:
   (A) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (B) The new purchase, retrofit, repower, or add-on of equipment
for previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, within the Sacramento district, 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 district shall follow any guidelines developed under
subdivision (a) of Section 44287 for awarding grants under this
program.
   (C) The 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.
   (D) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
   (e) Not more than 5 percent of the funds collected pursuant to
this section shall be used by the district for administrative
expenses.
   (f) A project funded by the program shall not be used for credit
under any state or federal emissions averaging, banking, or trading
program. 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.
   (g) 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 41081 of the   Health
and Safety Code   , as amended by Section 2 of Chapter 707
of the Statutes of   2004, is amended to read: 
   41081.  (a) Subject to Article 3.7 (commencing with Section 53720)
of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
Code, or with the approval of the board of supervisors of each county
included, in whole or in part, within the Sacramento district, the
Sacramento district board may adopt a surcharge on the motor vehicle
registration fees applicable to all motor vehicles registered in
those counties within the Sacramento district whose boards of
supervisors have adopted a resolution approving the surcharge. The
surcharge shall be collected by the Department of Motor Vehicles and,
after deducting the department's administrative costs, the remaining
funds shall be transferred to the Sacramento district. Prior to the
adoption of any surcharge pursuant to this subdivision, the district
board shall make a finding that any funds allocated to the district
as a result of the adoption of a county transportation sales and use
tax are insufficient to carry out the purposes of this chapter.
   (b) The surcharge shall not exceed six dollars ($6).
   (c) After consulting with the Department of Motor Vehicles on the
feasibility thereof, the Sacramento district board may provide, in
the surcharge adopted pursuant to subdivision (a), to exempt from all
or part of the surcharge any category of low-emission motor vehicle.

   (d) Funds received by the Sacramento district pursuant to this
section shall be used by that district as follows:
   (1) The revenues resulting from the first four dollars ($4) of
each surcharge shall be used to implement reductions in emissions
from vehicular sources, including, but not limited to, a clean fuels
program and motor vehicle use reduction measures.
   (2) The revenues resulting from the next two dollars ($2) of each
surcharge shall be used to implement the following programs that
achieve emission reductions from vehicular sources and off-road
engines, to the extent that the district determines the program
remediates air pollution harms created by motor vehicles on which the
surcharge is imposed: 
   (i) 
    (A)  Projects eligible for grants under the Carl Moyer
Memorial Air Quality Standards Attainment Program (Chapter 9
(commencing with Section 44275) of Part 5). 
   (ii) 
    (B)  The new purchase, retrofit, repower, or add-on of
equipment for previously unregulated agricultural sources of air
pollution, as defined in Section 39011.5, within the Sacramento
district, 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 district shall follow any guidelines
developed under subdivision (a) of Section 44287 for awarding grants
under this program. 
   (iii) 
    (C)  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. 
   (iv) 
    (D)  An accelerated vehicle retirement or repair program
that is adopted by the state board pursuant to authority granted
hereafter by the Legislature by statute. 
   (E) 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, pursuant to
the Lower-Emission School Bus Program adopted by the state board.
 
   (F) 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, pursuant to the Lower-Emission School Bus
Program adopted by the state board. 
   (e) Not more than 5 percent of the funds collected pursuant to
this section shall be used by the district for administrative
expenses.
   (f)  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 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.
   (g) 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 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 Sections 44241 and 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 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.
   (c) The Department of Motor Vehicles may annually expend not more
than 1 percent of the fees collected pursuant to Section 44227 on
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. 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. 2.5.  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 Sections 44241 and 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 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  ,
pursuant to the Lower-Emission School Bus Program adopted by the
state board  .
   (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  , pursuant to the Lower-Emission School Bus
Program adopted by the state board  .
   (c) The Department of Motor Vehicles may annually expend not more
than 1 percent of the fees collected pursuant to Section 44227 on
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. 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. 3.   Section   (a)    
Section 1.5 of this bill incorporates amendments to Section 41081 of
the Health and Safety Code proposed by both this bill and AB 462. 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
41081 of the Health and Safety Code, and (3) this bil   l is
enacted after AB 462, in which case Section 1 of this bill shall not
become operative. 
    (b)     Section  2.5 of this bill
incorporates amendments to Section 44229 of the Health and Safety
Code proposed by both this bill and AB 462. 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 462, in
which case Section 2 of this bill shall not become operative.