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 









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                 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 










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              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