BILL ANALYSIS Ó SB 901 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2011-2012 Regular Session BILL NO: SB 901 AUTHOR: Steinberg AMENDED: As introduced FISCAL: Yes HEARING DATE: January 11, 2012 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : ENHANCED FLEET MODERNIZATION PROGRAM SUMMARY : Existing law , under the Enhanced Fleet Modernization Program: 1) Requires the State Air Resources Board (ARB) to adopt a program for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The program must be administered by the Bureau of Automotive Repair (BAR) pursuant to ARB adopted guidelines. 2) Requires the guidelines to ensure that certain requirements are met (e.g., retired vehicles are permanently removed from operation and retired at a dismantler, program is focused where the greatest air quality impact can be justified). This bill renames the program as the Vehicle Retirement Program and: 1) Requires that the voluntary retirement program applies to the highest, rather than high, polluters. 2) Revises the guideline requirements to: a) Strike the requirement that the program be focused where the greatest air quality impact can be identified. b) Add a requirement that moneys appropriated for the program are expended to retire the highest polluting SB 901 Page 2 vehicles in the state, with priority given to those highest polluting vehicles registered in air basins that are out of attainment with federal air quality standards. 3) Make technical amendments. COMMENTS : 1) Purpose of Bill . AB 118 (Nunez) Chapter 750, Statutes of 2007, enacted the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007. The Act includes the Alternative and Renewable Fuel and Vehicle Technology Program, as well as the Air Quality Improvement Program. AB 118 also added the Enhanced Fleet Modernization Program. AB 118 contains various fees to fund these programs. AB 109 (Nunez) Chapter 313, Statutes of 2008, revised and clarified various provisions of AB 118. SB 901 is an effort to clarify certain provisions of the Enhanced Fleet Modernization Program. 2) Revising the Enhanced Fleet Modernization Program . As noted above, AB 118 (Nunez) Chapter 750, Statutes of 2007, enacted the Enhanced Fleet Modernization Program. An Enhanced Fleet Modernization Subaccount is created in the High Polluter Repair or Removal Account, and all moneys deposited in the subaccount must be available, upon appropriation by the Legislature, to establish and implement the program (Health and Safety Code §44126). The program is funded by $1.00 from the vehicle registration fee (Vehicle Code §9250.1), which generates about $30 million annually for the program. Compensation for retired vehicles must be $1,500 for a low-income motor vehicle owner and $1,000 for other motor vehicle owners. BAR must primarily focus outreach efforts and solicit vehicles in the South Coast and San Joaquin Valley air basins (13 Cal. Code of Regs. 2626(b)). SB 901 renames the program; provides that the program is available to the highest, rather than high, polluters; and SB 901 Page 3 clarifies that priority be given to those highest polluting vehicles registered in air basins that are out of attainment with federal air quality standards, rather than where the greatest air quality impact can be identified. 3) Pending rereferral from Senate Transportation and Housing Committee . SB 901 was referred to the Senate Transportation and Housing Committee and the Senate Environmental Quality Committee. This bill will be heard by the Senate Transportation and Housing Committee January 10, 2012, and will be heard by the Senate Environmental Quality Committee January 11, 2012, pending referral from that Committee. SOURCE : Senator Steinberg SUPPORT : Consumer Federation of California OPPOSITION : None on file