BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 470
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  halderman
                                                         VERSION: 6/7/11
          Analysis by:  Carrie Cornwell                  FISCAL:  NO
          Hearing date:  June 14, 2011



          SUBJECT:

          Vehicle registration surcharge:  air districts

          DESCRIPTION:

          This bill allows an air district to use revenue received from a 
          surcharge on motor vehicle registrations within its jurisdiction 
          to fund the retrofit of school bus emission equipment pursuant 
          to the lower-emission school bus program.

          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 jurisdictions for a variety of special programs, 
          including authorizing a local air district, until January 1, 
          2015, to levy a surcharge of up to $6 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 $4 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 $4 of the $6 
          surcharge must be used to reduce air pollution from motor 
          vehicles and to carry out related planning, monitoring, 




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          enforcement, and technical studies necessary to implement the 
          California Clean Air Act of 1988.  Revenue from the next $2 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.

           This bill  allows an air district to use revenue from the $2 
          surcharge on vehicle registration to fund retrofit of emission 
          control equipment for existing school buses, in addition to the 
          purchase of new buses, pursuant to the Lower-Emission School Bus 
          program.  This bill also ensures that should it and AB 462 both 
          get enacted, the second bill signed will not chapter out the 
          first.
          
          COMMENTS:

           1.Purpose  .  Current law allows districts throughout the state to 
            impose a surcharge on motor vehicle registration to pay for a 
            number of air quality projects, including the purchase of new 
            buses under the Lower-Emission School Bus Program.  The goal 
            of this program is to reduce the exposure of school children 
            to the harmful effects of school bus exhaust.  Because 
            existing law only allows air districts to use their 
            registration surcharge funds to purchase new buses, the author 
            argues that it limits maximum participation in the 
            Lower-Emission School Bus Program.  In order to offer cost 
            savings alternatives, the author introduced this bill to grant 
            school districts the ability to retrofit the emissions control 
            equipment on existing school buses.  

           2.Lower-Emission School Bus Program  .  The primary goal of the 




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            ARB's Lower-Emission School Bus Program is to reduce school 
            children's exposure to both cancer-causing and smog-forming 
            pollution by, as a first priority, replacing buses 
            manufactured prior to 1977 (no match funds required).  The 
            program provides grant funding for new, safer school buses and 
            to put air pollution control equipment (i.e., retrofit 
            devices) on buses that are already on the road.  ARB staff, in 
            coordination with the California Energy Commission and local 
            air pollution control districts, has developed guidelines for 
            implementation of the program.  For buses of model years 
            1977-1986, the guidelines allow program funds along with a 
            match to pay to replace buses.  For middle-aged buses from 
            1987 model year and newer, the guidelines allow program funds, 
            again with a match, to pay for emission control retrofits. 

           3.Opposition  .  The School Transportation Coalition opposes this 
            bill because of concerns with retrofitting school buses 
            through the lower-emission school bus program.  As it 
            currently stands, the lower-emission school bus program 
            provides for both replacement and retrofits of buses.  This 
            bill mirrors that, but the opponent would prefer that the bill 
            give air districts even more discretion on how to spend 
            vehicle registration surcharge revenues.

           4.Related legislation  .  AB 462 (B. Lowenthal) allows these air 
            districts to use these same vehicle registration surcharge 
            revenues for the replacement of gas tanks and fueling 
            infrastructure for natural gas powered school buses.  Also on 
            today's agenda in the Senate Transportation and Housing 
            Committee.

           5.Double-referral  . The Rules Committee referred this bill to 
            both the Transportation and Housing Committee and to the 
            Environmental Quality Committee.  Therefore, if this bill 
            passes this committee, it will be referred to the Committee on 
            Environmental Quality.
          

          Assembly Votes:
               Floor:    71-0
               Trans:    12-0

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,                                             June 8, 
          2011)





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               SUPPORT:  Bay Area Air Quality Management District
                         California Air Pollution Control Officers 
          Association
          
               OPPOSED:  School Transportation Coalition