BILL ANALYSIS Ó SB 570 Page 1 SENATE THIRD READING SB 570 (Rubio) As Amended April 25, 2011 Majority vote SENATE VOTE : 40-0 TRANSPORTATION 14-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Bonnie Lowenthal, |Ayes:|Fuentes, Harkey, | | |Jeffries, Achadjian, | |Blumenfield, Bradford, | | |Blumenfield, Bonilla, | |Charles Calderon, Campos, | | |Buchanan, Eng, Furutani, | |Davis, Donnelly, Gatto, | | |Galgiani, Logue, Miller, | |Hall, Hill, Lara, | | |Norby, Portantino, | |Mitchell, Nielsen, Norby, | | |Solorio | |Solorio, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the San Joaquin Valley Unified Air Pollution Control District (District) to administer a voluntary program to replace or retrofit high-polluting school buses. Specifically, this bill : 1)Authorizes the District to administer a voluntary program to replace or retrofit high-polluting school buses, using only interest generated from the funds allocated to it from the Traffic Congestion Relief Fund. 2)Repeals the District's existing authority to develop and administer a vehicle exchange program to replace high-polluting vehicles with donated, smog-compliant vehicles. 3)Requires the District, in implementing the new program, to follow the California Air Resources Board's (ARB) "2008 Lower-Emission School Bus Program Guidelines," giving funding priority to model year 1987 and older school buses. 4)Requires that the District submit to the Legislature, by January 1, of 2013, and 2014, a report on the implementation and status of the program, including, but not limited to, the number of school buses replaced or retrofitted, and the estimated emission reductions achieved through the program. SB 570 Page 2 5)Sunsets the program on January 1, 2014. EXISTING LAW : 1)Designates generally the ARB as the state agency with the primary responsibility for the control of air pollution from vehicles, and air pollution control districts and air quality management districts with the primary responsibility for the control of air pollution from all other sources. 2)Establishes the District to administer a regional air quality improvement program for Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare counties, and a portion of Kern County. 3)Creates, as approved by the statewide voters, the Traffic Congestion Relief Act of 2000 that established the Transportation Congestion Relief Program (TCRP), committing $6.4 billion to specific projects designated in law. One such program was the San Joaquin Valley Emergency Clean Air Attainment Program that provided $25 million to the District for incentives to reduce emissions from heavy-duty diesel engines operating within the District's boundaries. 4)Authorizes the District to use the interest earnings to administer a program to voluntarily exchange high-polluting automobiles for donated replacement vehicles (SB 23 (Cogdill) Chapter 634, Statutes of 2007). FISCAL EFFECT : According to the Assembly Appropriations Committee, makes approximately $2.5 million in interest earnings available for the school bus program created by this bill. Absent this bill, interest earnings would be available to the California Transportation Commission to fund other transportation projects. COMMENTS : Under current law, the District was appropriated $25 million to award incentives to reduce emissions from heavy-duty diesel engines operating in the District. Although almost all of the initial appropriation has been expended for those purposes, approximately $2.5 million in interest earnings on the initial appropriation were left over once the incentives were awarded. Normally, those interest earnings would have reverted SB 570 Page 3 to the TCRP, from which the California Transportation Commission allocates funding for a variety of transportation projects. SB 23 (Cogdill) 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 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. Accordingly, since the SB 23 program has been inactive, this bill would authorize 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 ARB. This authority would sunset on January 1, 2014. The author contends that school buses serve a vital need in the state by transporting students to and from school. However, school buses that were built prior to 1987 are also one of the biggest mobile polluters in the state. In the Central Valley alone, there are over 100 school buses in operation that were manufactured prior to 1987. Most alarmingly, more than one out of every four school age children in Kern County has been diagnosed with asthma, a much higher percentage than most counties in the state. Allocating funds to replace pre-1987 buses will improve air quality in communities throughout the Central Valley and California. ARB guidelines: The ARB staff, in coordination with the California Energy Commission and the local air pollution control districts, has developed guidelines to establish a Lower-Emission School Bus Program. The guidelines provide criteria for the purchase of new school buses and retrofits of existing school buses to reduce particulate matter emissions. The bus replacements and retrofits of existing school buses will reduce school children's exposure to harmful diesel exhaust emissions. This bill would require that the funds authorized for school bus purchase and retrofit conform with these adopted guidelines. SB 570 Page 4 Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093 FN: 0002201