BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 570 (Rubio) Hearing Date: 05/16/2011 Amended: 04/25/2011 Consultant: Brendan McCarthy Policy Vote: T&H 9-0, EQ 7-0 _________________________________________________________________ ____ BILL SUMMARY: SB 570 requires the San Joaquin Valley Unified Air Pollution Control District to administer a voluntary program to replace high-polluting school buses, using interest earnings from an existing grant program. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Replacement of school About $2,500 Special * busses * Traffic Congestion Relief Fund. _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Under current law, the San Joaquin Valley Unified Air Pollution Control District (District) was appropriated $25 million to award incentives to reduce emissions from heavy-duty diesel engines operating in the District. Almost all of the initial appropriation has been expended for those purposes. However, approximately $2.5 million in interest earnings on the initial appropriation were left over once the incentives were awarded. Under current law, those interest earnings would have reverted to the Traffic Congestion Relief Fund, from which the California Transportation Commission allocates funding for a variety of transportation projects. SB 23 (Cogdill, 2007) authorized the District to use the remaining interest earnings to administer a program to voluntarily exchange high-polluting automobiles for donated replacement vehicles. The intention was for the District to > (>) Page 1 partner with one or more private entities (such as an automobile manufacturer or rental car company) that would be willing to donate newer, less polluting automobiles for the exchanges. The District has been unable to secure donated automobiles and hence no exchanges have taken place. This bill authorizes the District to use the remaining interest earnings, upon appropriation of the Legislature, to administer a program to replace or retrofit high-polluting school buses within the District, following guidelines established by the Air Resources Board. This authority would sunset on January 1, 2014. By authorizing an additional use of those interest earnings, the bill will reduce funds available in the Traffic Congestion Relief Fund for other transportation projects.