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