BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 901|
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                                    CONSENT


          Bill No:  SB 901
          Author:   Steinberg (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  8-0, 1/10/12
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley, Rubio
          NO VOTE RECORDED:  Simitian

          SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-0, 1/11/12
          AYES:  Simitian, Blakeslee, Hancock, Kehoe, Lowenthal, 
            Pavley
          NO VOTE RECORDED:  Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Air pollution:  vehicle retirement program

           SOURCE  :     Author


           DIGEST  :    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 :    AB 118 (Núñez), Chapter 750, Statutes of 2007, 
          created the Enhanced Fleet Modernization Program to augment 
          the state's existing vehicle retirement program, referred 
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          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  

          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 
          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.

           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.

           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 

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          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  1/18/12)

          Consumer Federation of California


          JJA:do  1/18/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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