BILL ANALYSIS Ó
SB 901
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Date of Hearing: June 11, 2012
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 901 (Steinberg) - As Introduced: February 18, 2011
SENATE VOTE : 35-0
SUBJECT : Air quality: Vehicle retirement
SUMMARY : 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.
EXISTING LAW :
1)Establishes the smog check program, administered by the State
Bureau of Automotive Repair (BAR) and the California Air
Resources Board (ARB). Requires, generally, vehicles that are
registered in non-attainment areas for ozone or carbon
monoxide pollutant emissions to undergo biennial smog checks.
2)Establishes the Enhanced Fleet Modernization Program (EFMP),
pursuant to Chapter 750, Statutes of 2007 (AB 118, Nunez), as
administered by BAR pursuant to guidelines adopted by the ARB,
for the retirement of high polluting vehicles.
FISCAL EFFECT : Pursuant to the Senate Appropriations Committee,
the bill will result in no state costs.
COMMENTS : The EFMP was created by AB 118 to remove from
operation high polluting passenger vehicles and light to medium
duty trucks in areas within the state where the greatest air
quality impact can be identified (the South Coast and San
Joaquin Valley air basins). State funds are available and
administered by the BAR to owners of qualified vehicles and
provide $1,500 for a low-income motor vehicle owner and $1,000
for other motor vehicle owners. BAR can pay an owner more than
these amounts under certain conditions as specified in law.
Program funds are used for the purchase and the dismantling
(scrappage) of these vehicles. Approximately $30 million is
available annually through 2015 to fund the EFMP via a $1
SB 901
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increase in vehicle registration fees.
By incentivizing the early retirement of fully functional
vehicles, the vehicle retirement program can accelerate emission
benefits that would have otherwise occurred by the natural
turnover of the fleet. Accelerating emission reductions will
help to improve air quality and public health, and further the
state's ability to attain federal air quality standards. In
addition to these environmental and public health benefits, the
vehicle retirement program can have economic benefits by
incentivizing the purchase of new or newer vehicles. Automobile
manufacturers and dealers are likely to benefit by accelerated
vehicle purchases, which may be particularly valuable in the
state's current economic climate.
Vehicle scrappage is an important component of California's
State Implementation Plan, as the state's clean air plan
acknowledges the need to continue pursuing funding for future
car scrappage programs. It has been documented that the
cost-effectiveness of local air district scrappage programs
varies, with estimates of current cost-effectiveness ranging
between $1.50 and $4.50 per pound of smog-forming pollutants.
Further, according to the American Council for an
Energy-Efficient Economy, "if a new vehicle uses half the fuel
use by the vehicle if replaces, it will take only 3.3 years to
offset the energy costs of producing the new vehicle."
Writing in support of this bill with amendments, the South Coast
Air Quality Management District recommends that BAR, in
consultation with ARB and the California Air Pollution Control
Officers Association, adopt guidelines to identify mechanisms
and procedures for verification of the "highest polluting
vehicles" eligible for retirement. Under the current regulation
development process, ARB and BAR provide guidance for the
implementation of the EFMP and have the ability to clarify this
term without legislation.
This bill renames the EFMP as the Vehicle Retirement Program.
Further, the bill clarifies that priority be given for vehicle
scrappage to those highest polluting vehicles, rather than high
polluting vehicles, registered in air basins that are out of
attainment with federal air quality standards. This
clarification would help direct limited program funds to
maximize air quality benefits to the two non-attainment areas
within the state.
SB 901
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REGISTERED SUPPORT / OPPOSITION :
Support
Consumer Federation of California
South Coast Air Quality Management District
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093