BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 8
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          AB 8 (Perea)
          As Amended  May 13, 2013
          2/3 vote.  Urgency 

           TRANSPORTATION      10-3        NATURAL RESOURCES   6-2         
          |Ayes:|Gordon, Achadjian,        |Ayes:|Chesbro, Garcia,          |
          |     |Blumenfield, Bonta,       |     |Muratsuchi, Skinner,      |
          |     |Buchanan, Daly, Frazier,  |     |Stone, Williams           |
          |     |Gatto, Holden, Nazarian   |     |                          |
          |     |                          |     |                          |
          |Nays:|Ammiano, Logue, Morrell   |Nays:|Grove, Patterson          |
          |     |                          |     |                          |
           APPROPRIATIONS      11-3                                        
          |Ayes:|Gatto, Bocanegra,         |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Ian Calderon, Campos,     |     |                          |
          |     |Eggman, Gomez, Hall, Pan, |     |                          |
          |     |Quirk, Weber              |     |                          |
          |     |                          |     |                          |
          |Nays:|Harkey, Donnelly, Wagner  |     |                          |
          |     |                          |     |                          |
           SUMMARY  :  Extends for 8-9 years (from 2015/2016 until 2024)  
          various temporary, vehicle-related, state and local fees and  
          surcharges to fund vehicle-related air quality, greenhouse gas  
          (GHG) and related programs administered by the California Energy  
          Commission (CEC), the Air Resources Board (ARB), local air  
          districts and the Bureau of Automotive Repair (BAR).  Extends  
          all registration and license fees at current levels.  Also  
          extends the existing retail fee on each new tire, to address  
          tire-related environmental impacts.  Preempts ARB's authority to  
          require publicly available hydrogen fueling stations through  
          regulation and instead requires CEC to fund the development of  
          up to 100 such hydrogen stations from vehicle registration fee  
          revenues in the amount of up to $220 million over the next  
          11-plus years.  Requires CEC and ARB to update their economic  


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          analysis assessing the future costs of petroleum-based and  
          alternative fuels and assess the use of alternative fuels in the  
          state every two years.  Specifically,  this bill  :  
          1)Extends until January 1, 2024 the sunset dates of each of the  
            various fees and surcharges that support the California  
            Alternative and Renewable Fuel, Vehicle Technology, Clean Air,  
            and Carbon Reduction Act of 2007 (AB 118 (Nez), Chapter 750,  
            Statutes of 2007) and the Carl Moyer Memorial Air Quality  
            Standards Attainment Program (Moyer Program) (AB 1571  
            (Villaraigosa), Chapter 923, Statutes of 1999), as follows:  

             a)   $3 increase of the annual vehicle registration fee - $2  
               for the Alternative and Renewable Fuel and Vehicle  
               Technology Program (ARFVTP) and $1 for the Enhanced Fleet  
               Modernization Program (EFMP).

             b)   $8 increase of the smog abatement fee, paid to register  
               vehicles that are less than six years old and therefore  
               exempt from smog check.  The revenues are split equally  
               between ARFVTP and Air Quality Improvement Program (AQIP).

             c)   $5 increase of the fee for special identification plates  
               for construction equipment, farm trailers, cotton trailers,  
               logging vehicles, and cemetery equipment.  The revenues are  
               split equally between ARFVTP and AQIP.

             d)   $10 or $20 (depending upon the even or odd year of  
               registration) increase of the vessel registration fee.  The  
               revenues are split equally between ARFVTP and AQIP.

             e)   $0.75 from the retail fee on new tires to the Air  
               Pollution Control Fund for the Moyer Program and other air  
               emission reduction efforts.  

             f)   $2 surcharge for local air districts on vehicle  
               registrations to fund emission reduction programs,  
               including the Moyer Program.  

          2)Defines "publicly available hydrogen fueling station" to mean  
            the equipment used to store and dispense hydrogen fuel to  
            vehicles according to industry codes and standards that is  
            open to the public.  


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          3)Preempts, until January 1, 2024, ARB from enforcing  
            regulations related to its Clean Fuels Outlet (CFO)  
            regulations and the deployment of hydrogen fueling stations.  

          4)Requires ARB to publish by January 1, 2014, and every two  
            years thereafter, the number of vehicles that automobile  
            manufacturers project to be sold or leased.  

          5)Requires CEC to allocate $20 million each fiscal year from  
            July 1, 2013, through June 30, 2016, and up to $20 million  
            each fiscal year thereafter, not to exceed 20% of moneys  
            appropriated by the Legislature from the ARFVTP Fund for  
            purposes of constructing and operating a hydrogen fueling  
            network sufficient to provide convenient fueling to vehicle  
            owners and expand that network as necessary to support a  
            growing market for vehicles requiring hydrogen fuel, until  
            there are at least 100 publicly available hydrogen fueling  

          6)Authorizes CEC to defer allocating the moneys as needed to  
            keep the number of fueling stations appropriate for the  
            fueling needs of hydrogen vehicles.  

          7)Upon consultation with ARB in determining that the private  
            sector is establishing publicly available hydrogen fueling  
            stations without the need for government support, authorizes  
            CEC to cease funding for the hydrogen fueling stations.  

          8)Requires, on or before December 31, 2015, and annually  
            thereafter, ARB and CEC to jointly review and report on  
            progress toward establishing a hydrogen fueling network, as  

          9)Authorizes CEC to design grants, loan programs, and other  
            forms of financial assistance, and authorizes CEC to enter  
            into an agreement with the State Treasurer's Office to provide  
            financial assistance to further the development of the  
            hydrogen fueling network.  

          10)Establishes that funds appropriated to CEC for the purposes  
            of hydrogen fueling stations be available for encumbrance by  
            CEC for up to four years from the date of the appropriation  
            and for liquidation up to four years after expiration of the  
            deadline to encumber.  


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          11)Requires ARB, no later than July 1, 2013, to convene a  
            working group to evaluate the policies and goals for the Moyer  
            Program and programs established pursuant to AB 923.    

          12)States the intent of the Legislature that ARB and CEC update  
            the analysis of the state alternative transportation fuel use  
            and requires coordination between the two agencies in  
            implementing the various alternative fuel mandates.  

          13) Directs ARB and CEC, by November 1, 2014, to update the  
            economic analysis used to develop and review ARB's regulations  
            to include a range of petroleum and alternative fuel prices to  
            more accurately assess the future costs of petroleum-based and  
            alternative fuels.  

          14)Requires CEC, in consultation with ARB, to evaluate how the  
            investments could be used to increase the use of alternative  
            transportation fuels and to evaluate the impact of federal and  
            state fuel policies on increasing the use of such fuels.  

          15)Requires, beginning November 1, 2015, and every two years  
            thereafter, CEC and ARB, to include these alternative fuel  
            analyses in the CEC's Integrated Energy Policy Report (IEPR).   

          16)Requires ARB when developing new and amended regulations, to  
            include a finding on the effect of the proposed regulations on  
            the state's alternative transportation fuels use. 

          17)Provides that this bill does not preempt provisions of AB 32  
            and that the bill be implemented consistent with  
            environmental, public health, and sustainability  
            considerations articulated in AB 118.  

          18)Requires ARB and CEC, when studying the state's alternative  
            transportation fuel use, to measure:  

             a)   In-state job creation through the continued development  
               of an alternative fuels industry in the state;  

             b)   Economic vulnerability of residents to future petroleum  
               fuel price spikes by the use of either petroleum fuels or  
               alternative fuels and vehicles;  


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             c)   Alternative fuel market penetration in nonattainment  
               areas; and, 

             d)   Increase access to the supply of alternative fuels and  
               alternative fuel vehicles for all residents, including  
               barriers to supply.

          19)Provides that the measure is an urgency statute.
          EXISTING LAW  :

          1)AB 118 is funded through temporary increases in vehicle  
            registration fees ($3), smog abatement fees ($8), boat  
            registration fees ($10/20), and special identification plate  
            fees ($5).  Collection of these fees is authorized until 2016.  
             AB 118 supports three major programs:

             a)   The ARFVTP, administered by CEC, provides grants and  
               other financial incentives to accelerate the development  
               and deployment of clean, efficient, low carbon alternative  
               fuels and technologies.  ARFVTP is funded by $2 of the  
               vehicle registration fee and receives approximately $100  
               million per year total.

             b)   The AQIP, administered by ARB in consultation with local  
               air districts, funds projects that reduce criteria air  
               pollutants, improve air quality, and provide research for  
               alternative fuels and vehicles, vessels, and equipment  
               technologies.  AQIP is funded by smog abatement fees, boat  
               registration fees, and special identification plate fees  
               and receives between $30-36 million per year.

             c)   The EFMP, under which ARB, in consultation with BAR,  
               pays to permanently remove cars and small trucks from  
               operation through voluntary retirement by their owners.   
               EFMP is funded by $1 of the vehicle registration fee and  
               receives approximately $30 million per year.

          2)Establishes the Moyer Program, administered by ARB and local  
            air districts, to fund the incremental cost of  
            cleaner-than-required vehicles, engines, and equipment.  The  
            primary objective of the program is to achieve air quality  
            emission reductions that would not otherwise occur through  


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            regulations or other legal mandates.  The Moyer Program is  
            funded by vehicle registration surcharges adopted by local air  
            districts in nonattainment areas.

          3)Expands the Moyer Program (AB 923 (Firebaugh), Chapter 707,  
            Statutes of 2004) to cover additional pollutants and engines,  
            imposes a $1 fee on tire sales to fund the Moyer Program and  
            CalRecycle, and establishes air quality improvement programs  
            through local air districts.  AB 923's provisions sunset on  
            January 1, 2015.

          4)Requires ARB to adopt a statewide GHG emissions limit  
            equivalent to 1990 levels by 2020 and to adopt rules and  
            regulations to achieve maximum technologically feasible and  
            cost-effective GHG emission reductions (AB 32 (Nez), Chapter  
            488, Statutes of 2006).  

          5)Requires ARB to adopt regulations that achieve the maximum  
            feasible and cost-effective reduction of GHG emissions from  
            motor vehicles (AB 1493 (Pavley), Chapter 200, Statutes of  

          6)Requires CEC and ARB to adopt a state plan to increase the use  
            of alternative transportation fuels, including setting  
            alternative fuel goals for 2012, 2017 and 2022 (AB 1007  
            (Pavley), Chapter 371, Statutes of 2005).  The AB 1007 "State  
            Alternative Fuels Plan" (December 2007) recommended goals for  
            alternative fuel use of 9% by 2012, 11% by 2017 and 26% by  

          7)Pursuant to ARB 's CFO regulations, requires certain owners  
            and lessors of retail gasoline stations to equip an  
            appropriate number of their stations with clean alternative  
            fuels.  ARB's recent amendments to the regulations focused  
            primarily on providing outlets for hydrogen fuels. 

           FISCAL EFFECT  :   According to the Assembly Appropriations  

          1)Annual fee revenue, ranging from $48 million to $60 million,  
            from the tire fee extension, 57% of which (roughly $27 million  
            to $34 million) goes to CalRecycle to fund waste tire  
            management and 43% of which (roughly $21 million to $26  
            million) goes to ARB to fund the Moyer Program (special  


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          2)Annual revenue of approximately $180 million from extension of  
            various vehicle, vessel and other air quality-related  
            surcharges to fund AB 118 programs, as follows:  approximately  
            $105 million for the ARFVTP, administered by CEC,  
            approximately $45 million for the AQIP, administered by ARB,  
            and approximately $30 million for the EFMP, administered by  
            BAR (special funds).

          3)Annual local revenue, of approximately $50 million, from  
            extension of local surcharge on vehicle registration fees to  
            fund local vehicle emissions reduction projects (various local  

          4)Annual redirection of $20 million from the ARFVT Fund during  
            each fiscal year 2013-14 through 2015-16, and up to that  
            amount each fiscal year thereafter, away from projects for the  
            development and commercialization of nonpetroleum fuels and to  
            projects for the construction and operation of a hydrogen  
            fueling network.

          5)Ongoing costs in the hundreds of thousands of dollars to ARB,  
            CEC and BAR to continue to administer various air quality and  
            alternative fuel programs (special funds).  These costs will  
            be fully covered by the fee extensions authorized by this  

          6)Ongoing costs in the hundreds of thousands of dollars to ARB  
            and CEC to track and periodically report on alternative-fueled  
            vehicle sales and progress in establishing a hydrogen fueling  
            network,  to evaluate alternative fuels use and include such  
            information in the IEPR, and to update the economic analysis  
            used in developing ARB's regulations (special funds).  

           COMMENTS  : 

           Author's statement  .

               Californians suffer from the worst air pollution in  
               the nation, with over 90 percent of residents living  
               in counties with unhealthy air during some parts of  
               the year, exposing them to unhealthy air that  
               contributes to respiratory problems, heart disease,  


                                                                  AB 8
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               stroke, cancer and a reduced life span.  Air pollution  
               also imposes burdens on our economy by increasing  
               hospital admissions, emergency room visits and missed  
               work days.  According to a recent study, the economic  
               benefits of the (San Joaquin Valley) region meeting  
               air quality standards for ozone and particulate matter  
               would top $6 billion per year in reduced health,  
               missed work and school, and premature death; this is  
               equivalent to a payment of $1,600 per person per year.  
                In addition, California faces the challenge of  
               meeting several state and federal air quality and  
               emission reduction mandates by the mid-2020s.  As the  
               state works to comply with these mandates,  
               California's clean transportation and air quality  
               investment programs are set to expire in 2014 and  
               2015.  AB 8 seeks to expand California's clean air and  
               clean vehicle incentive programs, in order to meet  
               clean air, public health, climate and economic  
               development goals. 

           Background on AB 118, Moyer and related programs  .  In 2007, AB  
          118 established three new programs intended to promote vehicle  
          and fuel technology that reduces air pollution and GHG emissions  
          statewide.  These programs are the ARFVTP, AQIP and EFMP. 

          ARFVTP funds projects by various public and private groups that  
          "develop and deploy innovative technologies that transform  
          California's fuel and vehicle types to help attain the state's  
          climate change policies."  The CEC prepares an investment plan,  
          in coordination with a stakeholder advisory committee, which  
          outlines the ARFVTP's funding priorities.   AB 118 requires the  
          advisory committee to include representatives from state  
          agencies; fuel and vehicle technology consortia; labor,  
          environmental, and community-based justice and health  
          organizations; academic groups; consumer advocates; workforce  
          training groups; and private industry.  Once an investment plan  
          is completed, CEC receives and solicits bids for projects,  
          awarding funds based on eligibility criteria. 

          Monies appropriated to the ARFVTP come from temporary increases  
          in smog abatement fees, vehicle registration fees, vessel  
          registration fees and certain other vehicle fees. According to  
          the CEC, $360 million of ARFVTP funds have been awarded to  
          projects such as the construction of electric vehicle charging  


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          stations, the deployment of natural gas-powered vehicles and the  
          production of biofuels.

          AQIP, administered by ARB, provides financial incentives for  
          public and private groups and individuals to adopt smog and  
          diesel particulate pollution reducing technology that  
          concurrently reduces GHG emissions.  Two of AQIP's flagship  
          projects, the Clean Vehicle Rebate Project (CVRP) and the Hybrid  
          and Zero Emissions Truck and Bus Voucher Incentive Program,  
          represent the program's largest funding commitments.  AQIP also  
          provides incentives for biofuels research, hybrid truck testing,  
          lawn and garden equipment replacement, zero-emission all-terrain  
          agricultural work vehicle rebates, advanced technology  
          demonstration and hybrid off-road equipment pilot projects.

          The Legislature appropriates about $30-40 million annually to  
          AQIP.  These funds are derived from fees on smog abatement,  
          vehicle registration, vessel registration and specialty  
          identification plates.  Since 2009, ARB has spent approximately  
          $126 million on AQIP programs, with $49.7 million going to CVRP  
          and $64.4 million to hybrid and zero emission truck and bus  

          The EFMP supplements BAR's vehicle retirement program known as  
          the Consumer Assistance Program.  Through joint administration  
          by local air districts and BAR, eligible low-income consumers  
          whose vehicles fail smog check tests may receive financial  
          assistance to voluntarily retire their vehicles and/or replace  
          them with vehicles meeting certain emission and model-year  
          requirements.  During fiscal year 2011-2012, approximately $34  
          million of EFMP funds were expended for the retirement of 25,741  

          The Moyer Program was established in 1998 to promote compliance  
          with federal Clean Air Act requirements.  Through the Moyer  
          program, local air districts provide funding incentives for  
          heavy-duty vehicles and equipment owners to adopt  
          emissions-reducing technology.  To be eligible for funding,  
          projects must meet a cost-effectiveness criterion and reduce  
          nitrogen oxide and fine particulate emissions.  In 2004, AB 923  
          expanded the Moyer Program's covered emissions to include  
          reductions in particulate matter and reactive organic gasses.   
          AB 923 also increased the new tire fee to fund the expansion.   
          Projects that air districts have funded through the Moyer  


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          Program include engine retrofitting and replacement for  
          heavy-duty vehicles, off-road equipment, locomotives, diesel  
          marine vessels and stationary agricultural vehicles. 

          Funds for the Moyer Program are primarily derived from fees on  
          vehicle registration and new tire purchases.  Local air  
          districts that administer the program are also required to  
          provide matching funds to implement projects.  To date, $652  
          million has been expended through the Moyer Program to retrofit  
          or replace 36,480 engines. 

          ARB's Lower-Emission School Bus Program (LESBP), adopted  
          pursuant to ARB's administrative authority, funds the  
          replacement or retrofitting of old school buses to reduce  
          schoolchildren's exposure to toxic air pollutants.  From the  
          program's inception in 2000 until 2007, the Legislature  
          appropriated over $100 million to the LESBP for the replacement  
          of 600 school buses and the retrofitting of about 3,800 diesel  
          school bus engines.  After voters passed Proposition 1B in 2006,  
          the LESBP received bond money of approximately $196 million for  
          expenditure until June 30, 2014.  Under the new funding scheme,  
          the program has funded 578 school bus replacements and 2,287  
          retrofits to date.

          AB 118 and AB 923, however, contained provisions that would  
          sunset the funding sources for the aforementioned programs.   
          Under terms of AB 923, all changes to the LESBP and Moyer  
          program, from the expansion of covered emissions to the tire fee  
          and registration surcharge increases, will be repealed on  
          January 1, 2015.  Meanwhile under AB 118, the fee increases  
          funding ARFVTP, AQIP, and EFMP are set to expire on January 1,  

           Another stop on the hydrogen highway - ARB trades stick for  
          carrot  .  On January 26, 2012, ARB considered amendments to the  
          CFO regulation as part of its Advanced Clean Cars package.  The  
          amendments were intended to ensure that there was sufficient  
          hydrogen fueling infrastructure necessary to meet forecasted  
          fuel cell vehicle deployment.  The required stations would have  
              helped to ensure sufficient availability of hydrogen after fuel  
          cell vehicles had become commercially available (i.e., large  
          volumes).  The CFO amendments would have required that oil  
          refiners assure that hydrogen fueling stations were available to  
          the public once certain triggers were met (10,000 fuel cell  


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          vehicles in a regional air basin or 20,000 fuel cell vehicles  
          statewide).  The ARB has withheld finalizing the amendments  
          because, in its view, a better way to achieve the goals of the  
          regulation was developed through legislation, which, they  
          believe, is embodied in this bill.  According to ARB:

               AB 8 would direct $20 million from the AB 118 program  
               for each of the first three years to develop the  
               hydrogen infrastructure.  AB 8 would also authorize  
               the CEC to allocate up to an additional $20 million  
               annually after July 1, 2016, as necessary, to  
               construct at least 100 publicly available hydrogen  
               fueling stations in California.  The dedication of  
               funding for 100 hydrogen stations in lieu of requiring  
               the development of such stations administratively as  
               proposed through the CFO regulation provides a  
               stronger, more certain path to achieving the state's  
               air quality and climate change goals.  Guaranteeing  
               funding for infrastructure upfront will support the  
               initial commercial launch of vehicles, which is in  
               advance of the triggers as proposed in the  
               regulations.  By contrast, the regulation would have  
               only provided for hydrogen fueling stations after a  
               significant volume of vehicles were on the road.   
               Adequate funding for hydrogen stations effectively  
               achieves the goal of the proposed regulation,  
               therefore rendering the regulatory changes  

          Sierra Club California objects to the repeal of ARB's authority  
          to enforce any element of the CFO regulation and contends that  
          it "undermines the integrity of the rulemaking process?It  
          suggests that, if one of the regulated entities is dissatisfied  
          with the outcome, that entity can march over to the Capitol and  
          get the Legislature to simply throw out the rule?"

          In response, ARB contends that the bill provides greater  
          certainty that the minimum fueling infrastructure will be in  
          place to support the initial commercial launch of fuel cell  
          vehicles, which are necessary for achieving the state's  
          long-term air quality and climate change goals.  Furthermore,  
          the amendments to the regulation were controversial and would  
          have been litigated, potentially delaying their implementation.   
          ARB believes that the bill represents a collaboration among  


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          stakeholders and is a more certain and productive way to achieve  
          the goals of the proposed regulation amendments.  

           The give and take of AB 118  .  Everyone benefits from clean air,  
          but some of the beneficiaries are more equal than others in the  
          programs funded by this bill, particularly the AB 118 programs.   
          The vast majority (over 90%) of funds for both the ARFVTF ($93  
          million in FY 2011-12) and AQIP ($31 million in FY 2011-12) come  
          from annual registration fees paid through DMV by vehicle  
          owners.  AB 118 applies a registration fee increase of $3 for  
          all vehicles, plus an $8 increase in the smog abatement fee that  
          applies to newer vehicles that are exempt from smog check.  $2  
          of the registration fee goes to ARFVTF and $1 to EFMP.  The $8  
          is split between ARFVTF and AQIP.  

          The registration fee increase is flat - that is it is collected  
          without regard to a vehicle's value.  So a car valued at $500  
          pays the same as a car valued at $100,000.  AB 118 was a  
          majority vote fee bill enacted prior to Proposition 26 (the bill  
          passed the Senate with a bare majority 21 votes).  This bill,  
          being a 2/3 vote, could scale the fee to make it roughly  
          proportional to vehicle value and give lower-income drivers a  

          What does AB 118 fund?  Listed below, for example, are the 10  
          largest ARFVTF awards, totaling $102 million (Overall, CEC has  
          made over 180 awards totaling $360 million):

          |Rank |Recipient | Project  | Amount |        Description         |
          |     |          |   Type   |        |                            |
          |  1  |CALSTART  |Alternativ|$18     |Administrator of various    |
          |     |          |e Fuel    |million |alternative fuel vehicle    |
          |     |          |Vehicle   |        |programs and projects.      |
          |     |          |Developmen|        |                            |
          |     |          |t         |        |                            |
          |  2  |Air       |Hydrogen  |$11.2   |Construct 6 new hydrogen    |
          |     |Products  |Fueling   |million |fueling stations and 2      |
          |     |          |Stations  |        |upgrade stations at core    |
          |     |          |          |        |early market fuel cell      |
          |     |          |          |        |vehicle sales regions in    |


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          |     |          |          |        |Southern California.        |
          |  3  |High Mt   |Biogas    |$11.0   |Landfill gas to             |
          |     |Fuels     |          |million |bio-liquified natural gas   |
          |     |(Waste    |          |        |project at Ventura County   |
          |     |Mgmt and  |          |        |Landfill.                   |
          |     |Linde)    |          |        |                            |
          |  4  |California|Technology|$10.3   |Provide employee training   |
          |     |          | Training |million |funds to California         |
          |     |Employment|          |        |businesses with new         |
          |     | Training |          |        |alternative fuel, fuel      |
          |     |Panel     |          |        |infrastructure or vehicle   |
          |     |          |          |        |products.                   |
          |  5  |Propel    |E85       |$10.1   |Construct and operate 101   |
          |     |          |Retail    |million |E85 retail ethanol stations |
          |     |          |Stations  |        |throughout California.      |
          |     |          |          |        |                            |
          |  6  |Tesla     |Electric  |$10.0   |Expand production capacity  |
          |     |Motors    |Car       |million |for the Model X cross-over  |
          |     |          |          |        |electric SUV.               |
          |     |          |          |        |                            |
          |  7  |San       |Natural   |$9.3    |Purchase 202 heavy-duty     |
          |     |Bernardino|Gas       |million |natural gas trucks and      |
          |     |          |          |        |construct two               |
          |     |Associated|          |        |publicly-accessible         |
          |     |          |          |        |liquefied natural gas       |
          |     |Government|          |        |fueling stations at the     |
          |     |s         |          |        |Ryder facilities in San     |
          |     |          |          |        |Bernardino and Orange       |
          |     |          |          |        |Counties.                   |
          |  8  |ETEC/Nissa|Electric  |$8.0    |Install 2,300 level 2       |
          |     |n         |Chargers  |million |chargers and 30 DC fast     |
          |     |          |          |        |chargers in San Diego as    |
          |     |          |          |        |part of the DOE EV Project. |
          |     |          |          |        | Support deployment of      |
          |     |          |          |        |5,000 EVs in San Diego      |
          |     |          |          |        |region.                     |
          |  9  |California|Training  |$7.3    |Funding for EDD employee    |


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          |     |          |and       |million |and skills development      |
          |     |Employment|Skills    |        |activities.  Identify       |
          |     |          |Developmen|        |regional needs for skills   |
          |     |Developmen|t         |        |development and training to |
          |     |t         |          |        |support advanced technology |
          |     |Department|          |        |fuel production, fueling    |
          |     |          |          |        |infrastructure and vehicle  |
          |     |          |          |        |manufacture.                |
          | 10  |Quallion  |Electric  |$6.9    |Develop pilot scales,       |
          |     |          |Battery   |million |automated manufacturing     |
          |     |          |          |        |line for lithium-ion        |
          |     |          |          |        |battery cells and battery   |
          |     |          |          |        |packs.                      |
          |     |          |          |        |                            |

            CVRP offers rebates up to $2500 for electric vehicles (EVs).   
            Listed below are rebates by vehicle type and model as of  
            December 31, 2012, according to ARB:

          |    Vehicle Type and Model    |Number of |   Total   |Percentage |
          |                              | Rebates  |  Dollars  | of Total  |
          |                              |          | Allocated |  Dollars  |
          |                              |          |           | Allocated |
          |Light-Duty Zero-Emission      |  8,305   |$          |     66.61%|
          |Vehicles                      |          |         24,805,117 |           |
          |Nissan 2011-2012 Leaf         |  6,720   |$          |     56.16%|
          |                              |          |         20,911,580 |           |
          |Tesla 2012 Model S            |   449    |$          |      3.01%|
          |                              |          |          1,122,500 |           |
          |smart USA 2011 ED Cabriolet   |   338    | $ 663,000 |      1.78%|
          |and Coupe                     |          |           |           |
          |Ford 2012-2013 Focus Electric |   269    | $ 672,500 |      1.81%|
          |Tesla 2009-2011 Roadster      |   154    | $ 655,000 |      1.76%|


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                                                                  Page 15

          |Mitsubishi 2012 i-MiEV        |    95    | $ 190,000 |      0.51%|
          |BMW 2011 1 Series Active E    |    70    |  $ 52,500 |      0.14%|
          |Toyota 2012 RAV4 EV           |    67    | $ 167,500 |      0.45%|
          |Honda 2013 Fit EV             |    48    | $ 120,000 |      0.32%|
          |Th!nk City 2011               |    47    | $ 111,037 |      0.30%|
          |CODA 2012 Sedan               |    35    |  $ 87,500 |      0.23%|
          |Honda 2010-2011 FCX-Clarity   |    10    |  $ 45,000 |      0.12%|
          |Mercedes-Benz 2011-2012       |    2     |   $ 5,000 |      0.01%|
          |F-Cell                        |          |           |           |
          |Wheego LiFe 2011              |    1     |   $ 2,000 |      0.01%|
          |Plug-In Hybrid Electric       |  7,489   |$          |     30.13%|
          |Vehicles                      |          |         11,220,900 |           |
          |Chevy 2012 Volt Low Emission  |  3,777   |$          |     15.21%|
          |package                       |          |          5,664,450 |           |
          |Toyota 2012 Prius Plug-In     |  3,677   |$          |     14.78%|
          |Hybrid                        |          |          5,503,950 |           |
          |Ford CMAX Energi              |    35    |  $ 52,500 |      0.14%|
          |Commercial Zero-Emission      |    49    | $ 980,000 |      2.63%|
          |Vehicles                      |          |           |           |
          |Smith 2009-2010 Newton1-9     |    39    | $ 780,000 |      2.09%|
          |Navistar 2010 eStar 300       |    10    | $ 200,000 |      0.54%|
          |series                        |          |           |           |
          |Zero-Emission Motorcycles     |   121    | $ 135,100 |      0.36%|
          |Zero 2009-2011 DS             |   103    | $ 112,300 |      0.30%|
          |Brammo 2010-2012 Enertia      |    13    |  $ 15,900 |      0.04%|


                                                                  AB 8
                                                                  Page 16

          |Vetricx 2007-2011             |    5     |   $ 6,900 |      0.02%|
          |Neighborhood Electric         |    87    |  $ 97,150 |      0.26%|
          |Vehicles                      |          |           |           |
          |GEM 2009-2012                 |    51    |  $ 51,550 |      0.14%|
          |Miles EV 2009-2010 ZX40S-AD   |    35    |  $ 44,100 |      0.12%|
          |Vantage 2010 EVX1000          |    1     |   $ 1,500 |      0.00%|
          |                         Total|  16,051  |$          |100.00%    |
          |                              |          |         37,238,267 |           |
          The top EV by far is the Nissan Leaf, at 6,720 rebates as of  
          December 31, 2012.  The current net price for the Leaf (after  
          $7500 federal tax credit and $2500 CVRP rebate) can be as low as  
          $20,000.  The number two EV is the Tesla Model S (449 rebates as  
          of December 31, 2012, though Tesla now reports over 3000 sold  
          including 2013), with base prices ranging from $70,000 to over  
          $100,000.  Survey data indicates that the typical CVRP recipient  
          earns over $150,000/year, drives 15-30 miles/day and owns at  
          least one other non-EV car.  According to the DMV, the smog  
          abatement fee that funds CVRP is not collected from owners of  

           AB 118 lacks adequate measurement and verification of GHG and  
          criteria pollutant benefits  .  Though AB 118 is not a regulatory  
          program, the bill was enacted to support development of vehicle  
          technologies that reduce GHG emissions, in furtherance of  
          achieving the state's climate change goals.  However, AB 118's  
          funding programs, such as ARFVTF, lack the measurement and  
          verification of emissions benefits that would be expected of a  
          regulatory program.  It is not clear from information supplied  
          by the CEC about ARFVTF awards whether the actual GHG emission  
          reductions of funded projects are ever accounted for, much less  
          factored into the initial decision to award funds.

           Related legislation  .  SB 11 (Pavley) is nearly identical to this  
          bill.  SB 11 is pending on the Senate Floor.

           Prior legislation  .  SB 1455 (Kehoe) was nearly identical to this  
          bill.  SB 1455 passed the Assembly 55-21 on August 31, 2012, but  


                                                                  AB 8
                                                                  Page 17

          later failed on the Senate Floor 25-10.

          Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916)  

                                                                FN: 0000937