BILL ANALYSIS Ó AB 8 Page 1 ASSEMBLY THIRD READING 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 AB 8 Page 2 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 (Núñez), 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. AB 8 Page 3 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 stations. 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 specified. 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. AB 8 Page 4 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; AB 8 Page 5 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 AB 8 Page 6 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 (Núñez), 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 2002). 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 2022. 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 Committee: 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 AB 8 Page 7 funds). 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 funds). 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 bill. 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 Page 8 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 AB 8 Page 9 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 vouchers. 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 vehicles. 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 AB 8 Page 10 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, 2016. 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 AB 8 Page 11 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 unnecessary. 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 AB 8 Page 12 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 break. 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 | AB 8 Page 13 | | | | |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 | AB 8 Page 14 | | |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%| |------------------------------+----------+-----------+-----------| AB 8 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 EVs. 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) 319-2092 FN: 0000937