BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 901
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Steinberg
                                                         VERSION: 2/18/11
          Analysis by:  Eric Thronson                    FISCAL:  yes
          Hearing date:  January 10, 2012



          SUBJECT:

          Vehicle retirement

          DESCRIPTION:

          This bill changes the name of the Enhanced Fleet Modernization 
          Program to the Vehicle Retirement Program and prioritizes 
          expenditures from the program for the highest polluting vehicles 
          registered in air basins that are out of attainment with federal 
          air quality standards.

          ANALYSIS:

          In 2007, AB 118 (Núñez), Chapter 750, created the Enhanced Fleet 
          Modernization Program to augment the state's existing vehicle 
          retirement program, referred to as the Consumer Assistance 
          Program (CAP).  Both programs retire high polluting passenger 
          vehicles and light to medium duty trucks from operation in the 
          state through the purchase and dismantling of these vehicles.  
          While CAP is available to vehicle owners when vehicles fail the 
          smog check, the program created by AB 118 is available to owners 
          of qualified vehicles at any time.  Existing law requires the 
          state to focus the new program where the greatest air quality 
          impact can be identified.

           This bill  makes two primary changes to the Enhanced Fleet 
          Modernization Program.  First, it changes the name of the 
          program to the Vehicle Retirement Program.  Second, it 
          prioritizes program expenditures for the highest polluting 
          vehicles registered in areas that are out of attainment with 
          federal air quality standards. 

          COMMENTS:

           1.Purpose  .  The author introduced this bill to ensure that the 
            AB 118 vehicle retirement program's highest priority is 
            removing the highest polluting vehicles from the places in 




          SB 901 (STEINBERG)                                     Page 2

                                                                       


            California where their removal can make the most difference.  
            This bill requires the program to target areas not meeting 
            federal air quality standards and permits the retirement of 
            only those vehicles known to be the highest polluters.

           2.Program effectiveness  .  AB 118 required California Air 
            Resources Board (ARB), in consultation with the Bureau of 
            Automotive Repair (BAR), to begin the program by January of 
            2010.  Approximately $30 million is available annually through 
            2015 to fund the program via a $1 increase in vehicle 
            registration fees.  According to ARB, the available funding 
            allowed BAR to retire over 12,000 high-polluting vehicles in 
            the program's first year.

           3.Statute closely aligns with state regulations  .  While the AB 
            118 vehicle retirement program is available for qualifying 
            vehicles registered throughout California, state regulations 
            currently encourage retirement of high polluting vehicles in 
            the most polluted areas.  ARB's regulations direct BAR to use 
            existing emissions data to identify the highest polluting 
            vehicles and solicit program participation by providing 
            vouchers to owners beyond the purchase of the vehicle to be 
            used toward vehicle replacement or transit fares.  These 
            vouchers are only available in the South Coast and San Joaquin 
            air basins, which are the areas in the state with the worst 
            air quality.  This bill closely aligns with these regulations 
            by requiring the program to target the highest polluters where 
            air quality is the worst.

           4.Double referral  .  The Rules Committee has referred this bill 
            to both the Transportation and Housing Committee and the 
            Environmental Quality Committee


          POSITIONS:  (Communicated to the committee before noon on 
          Wednesday,                                             January 
          4, 2012)

               SUPPORT:  Consumer Federation of California

          
               OPPOSED:  None received.








          SB 901 (STEINBERG)                                     Page 3