BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO:    AB 8
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:     perea
                                                         VERSION:     
          8/12/13
          Analysis by:  Carrie Cornwell                  FISCAL:     yes
          Hearing date:  August 20, 2013                     URGENCY:  YES




          SUBJECT:

          Air quality, alternative fuels, and vehicle technology funding  
          programs and local air district vehicle registration surcharges


          DESCRIPTION:

          This urgency bill: 

           Extends until January 1, 2024, extra fees on vehicle  
            registrations, boat registrations, and tire sales in order to  
            fund the AB 118, Carl Moyer, and AB 923 programs that support  
            the production, distribution, and sale of alternative fuels  
            and vehicle technologies, as well as air emissions reduction  
            efforts.  
           Suspends until 2024 the Air Resources Board's (ARB) authority  
            to require through regulation any fuel supplier provide  
            hydrogen fueling stations and instead allocates up to $220  
            million of these fee funds to construct and operate retail  
            hydrogen fueling stations.  
           Extends the authority of local air districts to impose vehicle  
            registration surcharges in their areas to achieve air emission  
            reductions from vehicles and off-road engines.

          ANALYSIS:

           Clean Fuels Outlet
           
          ARB adopted its Clean Fuels Outlet (CFO) regulation to provide  
          fueling stations to meet the needs of those driving clean,  
          alternative fuel vehicles.  When it first began work on the  
          regulation in 1990, ARB planned to use it as a tool to provide  
          methanol, ethanol, and compressed natural gas fueling stations  
          once a certain number of vehicles using those fuels were  
          certified in California. Those vehicles were not forthcoming,  




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          and ARB last updated the regulation in 2000.

          In January 2012, however, ARB considered and passed amendments  
          to the regulation to require major refiners and importers of  
          gasoline to provide hydrogen fueling stations when the number of  
          vehicles using hydrogen fuel reaches 10,000 within an air basin  
          or 20,000 statewide with specified adjustments.  Refiners and  
          importers of gasoline would provide these hydrogen fueling  
          stations in proportion to their market share.  

          ARB filed the CFO regulation with the Office of Administrative  
          Law as required by state law, but then in December withdrew it  
          in order to pursue this legislation to dedicate public funds to  
          building a hydrogen fueling network, which would effectively  
          achieve the goal of the CFO regulation through public subsidy.   
          ARB is in the process of reintroducing the CFO rulemaking  
          package as a contingency measure in case this legislation fails.

           This bill  eliminates, until 2024, ARB's authority to enforce any  
          element of its existing CFO regulation or any other regulation  
          that requires any supplier of gasoline to construct, operate, or  
          to fund the construction or operation of any publicly available  
          hydrogen fueling station.  

           AB 118 Programs
           
          AB 118 (Núñez), Chapter 750, Statutes of 2007, created three  
          programs:

           The Alternative and Renewable Fuel and Vehicle Technology  
          Program  , which the California Energy Commission (CEC)  
          administers to provide grants, revolving loans, loan guarantees,  
          loans, or other appropriate funding measures to public agencies,  
          vehicle consortia, businesses, consumers, recreational boaters,  
          and academic institutions to develop and deploy innovative  
          technologies that transform California fuel and vehicle types to  
          help attain the state's climate change policies. 

           The Air Quality Improvement Program  , which the ARB administers  
          in consultation with local air districts to provide competitive  
          grants to fund projects to reduce criteria air pollutants,  
          improve air quality, and support research to improve the air  
          quality impacts of alternative fuels and vehicles, vessels, and  
          equipment technologies. 

           The Enhanced Fleet Modernization Program  , under which ARB, in  




          AB 8 (PEREA)                                           Page 3

                                                                       


          consultation with the Bureau of Automotive Repair (BAR),  
          provides for the voluntary retirement of passenger vehicles and  
          light and medium duty trucks that are high polluters.

          AB 118 provides, upon appropriation by the Legislature,  
          approximately $180 million annually until 2016 for these  
          programs.  These funds come from additional fees on vehicle  
          registrations and vessel registrations.  In addition, the CEC  
          received $10 million annually from the Public Interest Research,  
          Development, and Demonstration Fund, when that fund existed.  It  
          was derived from a portion of electric utility rates to fund  
          research.  Specifically, AB 118 raised the following fees on  
          vehicle and vessel registrations from July 1, 2008, until  
          January 1, 2016:

               A $3 increase in the annual vehicle registration fee. 

           An $8 increase in the Smog Abatement Fee, paid to register  
            vehicles that are less than six model years old and therefore  
            exempt from smog check.

           A $10 or $20 increase of the fee to originally register a  
            vessel in California.  If a boat owner originally registers a  
            boat in an odd-numbered year, the increase is $10 ($10 to  
            $20); but if the boat owner originally registers it in an  
            even-numbered year, then the increase is $20 ($20 to $40).   
            (See Comment #9 below.)

           A $5 increase of the fee for identification plates for  
            construction equipment, farm trailers, cotton trailers,  
            logging vehicles, and cemetery equipment.  These plates are  
            required to operate the vehicles on public roads.

           
          This bill  :
          
          1.Extends for eight additional years the fees on vehicles and  
            vessels that AB 118 imposed so that they continue until  
            January 1, 2024. 

          2.Limits consumer incentives that ARB or CEC provide from AB 118  
            funds to subsidize the purchase of vehicles to no greater  
            amount than the compensation a vehicle owner receives to  
            retire a vehicle through the Enhanced Fleet Modernization  
            Program (typically $1,500).





          AB 8 (PEREA)                                           Page 4

                                                                       


          3.Requires the CEC to allocate $20 million annually until 2024  
            to fund at least 100 publicly available hydrogen fueling  
            stations through its AB 118 program.  In order for CEC to fund  
            specific stations, each year ARB must aggregate information it  
            receives on the number of hydrogen-fueled vehicles that  
            manufacturers project to sell or lease over the next three  
            years, plus the number of hydrogen-fueled vehicles already  
            registered.  Based on this information, ARB will evaluate the  
            need for, good locations for, and operating standards required  
            of hydrogen fueling stations and report its findings to the  
            CEC.

          4.Permits CEC, after consulting with ARB, to allocate money away  
            from hydrogen fueling stations, if all $20 million in a year  
            is not needed to meet the need identified by ARB.  CEC may  
            then allocate remaining funds to other projects within the  
            Alternative and Renewable Fuel and Vehicle Technology Program.

          5.Permits the CEC, after consulting with ARB, to cease to  
            provide subsidies to hydrogen fueling stations only if the  
            private sector is establishing stations without the need for  
            public subsidy.  

          6.Gives the CEC four years to encumber the $20 million annual  
            appropriation that the bill allocates for hydrogen fueling  
            stations and four more years to expend the funds to build  
            hydrogen stations.  (For example, if $20 million is  
            appropriated for hydrogen stations through this bill in 2023,  
            then the CEC has until 2027 to award those funds to projects  
            and until 2031 to expend the funds as the stations get built.)

          7.Directs CEC and ARB jointly to review and report annually on  
            progress toward establishing a hydrogen fueling network  
            beginning on December 31, 2015.

          8.Requires both ARB and CEC to apply a benefit-cost score when  
            deciding to which projects each will award AB 118 funds, as  
            follows:

                 For the Alternative and Renewable Fuel and Vehicle  
               Technology Program, the bill defines a benefit-cost score  
               as a project's expected or potential greenhouse gas  
               emissions reduction per dollar the CEC awards to a project.  
                The CEC shall rank projects proposed for funding awards  
               based on its solicitation criteria, but then shall give  
               additional preference to funding those projects with higher  




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               benefit-cost scores.  Thus, within an allocation, say for  
               hydrogen fueling stations, those projects seeking funds  
               that have greater reductions of greenhouse gas emissions  
               per dollar spent should receive AB 118 funding before those  
               with lower reductions.

                 For the Air Quality Improvement Program, the bill  
               defines benefit-cost score as the reasonably expected or  
               potential criteria pollutant emission reductions per dollar  
               ARB awards to a project and defines a project to be the  
               category investments that ARB identifies for funding.  ARB  
               shall provide preference in awarding funding to those  
               projects with higher benefit-scores but allows ARB to  
               provide additional preference, as applicable, to projects  
               that: 

                     reduce toxic air pollutants, 
                     contribute to regional air quality, 
                     promote alternative fuels and vehicle technologies, 
                     achieve climate change benefits, 
                     support market transformation of California's  
                 vehicle or equipment fleet, and 
                     leverage private capital.

               Thus, ARB could apply the cost-benefit test to a category  
               of funding, and while it may not achieve the greatest  
               criteria pollutant reduction per dollar spent, still fund  
               it because ARB grants that category sufficient additional  
               preference.  For example,  ARB could award funds to rebates  
               for buyers of electric cars even though this category is  
               not the most effective at reducing criteria air pollutants,  
               because ARB gives the rebates sufficient additional  
               preference related to promoting alternative vehicle  
               technologies and supporting transformation of California's  
               vehicle fleet.

           Carl Moyer Program
           
          AB 1571 (Villaraigosa), Chapter 923, Statutes of 1999,  
          established the Carl Moyer Memorial Air Quality Standards  
          Attainment Program through which ARB provides grants to offset  
          the incremental costs of purchasing or retrofitting engines in  
          order to reduce specified air emissions.  The Carl Moyer program  
          originally received General Fund appropriations.

          In 2004, AB 923 (Firebaugh), Chapter 707, expanded the Carl  




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          Moyer program to cover additional pollutants and engines and  
          imposed a 75-cent per tire fee on tire sales to fund the Moyer  
          Program.  Its provisions will sunset on January 1, 2015.

           This bill  :
          
          1.Extends the Carl Moyer Program, as amended by AB 923, until  
            January 1, 2024, including the 75-cent fee on tire sales to  
            fund the program.  (This bill also extends until 2024 a  
            25-cent tire fee that funds tire recycling programs.)

          2.Requires ARB, no later than July 1, 2014, to convene, in  
            consultation with local air districts, a working group to  
            evaluate the policies and goals contained within the Carl  
            Moyer Program.
          
          Air District Vehicle Registration Surcharge
           
          Existing law imposes a basic vehicle registration fee of $46,  
          plus a $23 surcharge for additional personnel for the California  
          Highway Patrol, and authorizes local agencies to impose separate  
          vehicle registration fee surcharges in their respective  
          jurisdictions for a variety of special programs.  AB 923  
          specifically authorizes, until January 1, 2015, local air  
          districts in which federal air quality standards are  
          consistently not met (i.e., "nonattainment areas") to levy a  
          surcharge of up to $6 on registration fees of motor vehicles  
          registered within that district.  Funds from this surcharge must  
          be used to reduce air pollution from motor vehicles. 

          Legislation prior to AB 923 authorized the first $4 of the $6  
          surcharge to pay for reducing air pollution from motor vehicles  
          and carrying out related planning, monitoring, enforcement, and  
          technical studies necessary to implement the California Clean  
          Air Act of 1988.  AB 923 authorized the next $2 and directed the  
          resulting revenue to specific strategies to achieving emission  
          reductions from motor vehicles and off-road engines.

          AB 923 sunsets on January 1, 2015, after which the maximum  
          surcharge that air districts can impose will return to $4 per  
          registered vehicle.  

           This bill  extends until January 1, 2024, the time during which  
          an air district may impose a surcharge of $6, rather than $4.
          
          COMMENTS:




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           1.Purpose  .  The author introduced this bill because the San  
            Joaquin Valley (Valley), which he represents, remains one of  
            the worst air quality regions in the nation with ozone levels  
            continuing to exceed federal standards and leading the nation  
            with the most days of polluted air.  Proponents note that the  
            whole state suffers from some of the worst air quality in the  
            nation, with over 70% of California's air pollution coming  
            from cars, trucks, trains, and other mobile sources and with  
            over 90% of residents living in counties with unhealthy air  
            during some parts of the year.  In 2010, California had all  
            ten of the most polluted counties in the nation and four were  
            in the Valley.  In addition, a recent study by the UC Davis  
            Center for Regional Change cited that, as a result of air  
            pollution generated by stationary agricultural and industrial  
            sources coupled with the automobiles and diesel trucks that  
            stream through the region's highways, residents of the San  
            Joaquin Valley suffer from high rates of asthma and other  
            respiratory ailments. 

            Despite significant improvements in emission reductions and  
            the toughest air regulations, the author asserts that we  
            cannot improve air quality and public health and achieve our  
            clean air goals of a 90 percent reduction in emissions by the  
            mid-2020s for the Valley and the state without incentives and  
            investments to accelerate the transition to a cleaner  
            transportation sector.  He introduced this bill to provide  
            California a long-term transportation plan that achieves the  
            use of cleaner, more efficient transportation technologies  
            while meeting federal and state clean air mandates.

            While California faces the challenge of meeting several state  
            and federal air quality and emission reduction mandates by the  
            mid-2020s, proponents point out that the state's three major  
            clean transportation programs -- AB 118, the Carl Moyer  
            Program, and the AB 923 Program -- are set to expire or to  
            lose their current funding source in the next few years.
            This bill seeks to extend California's clean air and clean  
            vehicle incentive programs in order to meet clean air, public  
            health, climate, and economic development goals.

            The author and supporters state that without extension of  
            these incentive programs, it would be extremely difficult for  
            California to meet its clean air, clean vehicle, and emission  
            reduction goals.  





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           2.Too much for one bill  ?  This bill extends the funding and  
            existence of three programs created by AB 118, the Carl Moyer  
            Program, and local air districts' authority to impose  
            surcharges on vehicle registrations.  This is a tremendous  
            amount of policy to include in a single bill.  Such breadth  
            could limit the legislative review of each of these programs,  
            to which previous legislatures assigned sunset dates for the  
            purpose of ensuring that this Legislature could consider each  
            program's functions, statutory language, and funding as its  
            sunset date approaches.  The proponents are moving two  
            identical bills, this bill and SB 11 (see related legislation  
            below), so have an opportunity to divide the subject matters  
            of these bills.

           3.Abrogating a regulation  .  Typically, state agencies object  
            strenuously when the Legislature considers passing a bill to  
            override a regulation that the agency has adopted or is  
            working on adopting.  This bill is unusual in that the ARB  
            strongly supports the bill and appears to have negotiated its  
            contents, which include proscribing ARB's current efforts to  
            amend its CFO regulation and prohibiting it from adopting any  
            regulation for the next 11 years that would require gasoline  
            suppliers to provide, fund, or operate a hydrogen fueling  
            station in this state.  

            This provision makes likely that, until selling hydrogen at  
            retail becomes a profit-making enterprise, the state will have  
            to subsidize both the capital and operating costs of hydrogen  
            fueling stations. 
          
           4.How much money  ?  The extension of the vehicle registration  
            fees, trailer fees, tire fees, and boat registration fees in  
            this bill will result in approximately $180 million per year  
            for an additional eight years for the AB 118-related fees and  
            approximately $30 million per year for an additional nine  
            years for the Carl Moyer Program.  In addition, this bill  
            extends authority for the $2 surcharge that some air districts  
            have imposed on vehicles registered in their jurisdictions,  
            which according to DMV raises over $50 million each year.   
            This bill, therefore, will result in over $2 billion in  
            additional fees on California vehicle and boat owners between  
            2015 and 2023.  
          
           5.And to what end  ?  The Legislative Analyst's Office (LAO) in  
            its December 2012 report "Energy Efficiency and Alternative  
            Energy Programs" noted that it is difficult to isolate the AB  




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            118 programs' effect on transforming California's vehicles and  
            fuels.  Even in the CEC's own evaluations of its AB 118  
            program, the benefits shown reflect broad ranges of potential  
            greenhouse gas emission reductions and petroleum displacement.  
             

            In contrast, the Carl Moyer Program, which the bill also  
            extends, has long been based on achieving the most cost  
            effective, additional reductions in criteria air pollutants.   
            Over its years in existence, the Department of Finance and the  
            State Auditor have reviewed the program and made  
            recommendations - many of which were adopted - to improve that  
            program.  In addition, ARB regularly reviews air districts'  
            implementation of the Carol Moyer Program.  In general, it  
            appears that the Carl Moyer Program has effectively used the  
            funds made available to achieve reductions in air pollutants  
            beyond those achieved through regulation.

           6.Trickling up  ?  Flat fees on vehicle registrations primarily  
            fund AB 118's programs.  Thus, whether one is rich or poor,  
            the fees are the same, functioning as a sort of flat tax.   
            Awards of these funds, however, tend to go to the rich.  For  
            example, the top ten recipients of CEC's     AB 118 funds are:




           ----------------------------------------------------------------- 
          |Rank |Recipient | Project  | Amount |        Description         |
          |     |          |    Type  |        |                            |
          |-----+----------+----------+--------+----------------------------|
          |  1  |CALSTART  |Alternativ|$18     |Administrator of various    |
          |     |          |  e Fuel  |  million|  alternative fuel vehicle  |
          |     |          |  Vehicle |        |  programs and projects.    |
          |     |          |  Dev.    |        |                            |
          |-----+----------+----------+--------+----------------------------|
          |  2  |Air       |Hydrogen  |$11.2   |Construct 6 new hydrogen    |
          |     |  Products|  Fueling |  millio|  fueling stations and 2    |
          |     |          |  Stations|  n     |  upgrade stations at core  |
          |     |          |          |        |  early market fuel cell    |
          |     |          |          |        |  vehicle sales regions in  |
          |     |          |          |        |  Southern California.      |
          |-----+----------+----------+--------+----------------------------|
          |  3  |High Mt   |Biogas    |$11.0   |Landfill gas to             |
          |     |  Fuels   |          |  millio|  bio-liquified natural gas |
          |     |(Waste    |          |  n     |  project at Ventura County |




          AB 8 (PEREA)                                           Page 10

                                                                       


          |     |  Mgmt.   |          |        |  Landfill.                 |
          |     |  and     |          |        |                            |
          |     |  Linde)  |          |        |                            |
          |-----+----------+----------+--------+----------------------------|
          |  4  |California|Technology|$10.3   |Provide employee training   |
          |     |          |          |  millio|  funds to California       |
          |     |  Employme|  Training|  n     |  businesses with new       |
          |     |  nt      |          |        |  alternative fuel, fuel    |
          |     |  Training|          |        |  infrastructure or vehicle |
          |     |   Panel  |          |        |  products.                 |
          |-----+----------+----------+--------+----------------------------|
          |  5  |Propel    |E85       |$10.1   |Construct and operate 101   |
          |     |          |  Retail  |  millio|  E85 retail ethanol        |
          |     |          |  Stations|  n     |  stations throughout       |
          |     |          |          |        |  California.               |
          |     |          |          |        |                            |
          |-----+----------+----------+--------+----------------------------|
          |  6  |Tesla     |Electric  |$10.0   |Expand production capacity  |
          |     |  Motors  |  Car     |  millio|  for the Model X           |
          |     |          |          |  n     |  cross-over electric SUV.  |
                         |     |          |          |        |                            |
          |-----+----------+----------+--------+----------------------------|
          |  7  |San       |Natural   |$9.3    |Purchase 202 heavy-duty     |
          |     |  Bernardino |  Gas     |  millio|  natural gas trucks and    |
          |     |  Associat|          |  n     |  construct two             |
          |     |  ed      |          |        |  publicly-accessible       |
          |     |  Gov'ts  |          |        |  liquefied natural gas     |
          |     |          |          |        |  fueling stations at the   |
          |     |          |          |        |  Ryder facilities in San   |
          |     |          |          |        |  Bernardino and Orange     |
          |     |          |          |        |  Counties.                 |
          |-----+----------+----------+--------+----------------------------|
          |  8  |ETEC/Nissa|Electric  |$8.0    |Install 2,300 level 2       |
          |     |  n       |  Chargers|  millio|  chargers and 30 DC fast   |
          |     |          |          |  n     |  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    |
          |     |          |  and     |  millio|  and skills development    |
          |     |  Employme|  Skills  |  n     |  activities.  Identify     |
          |     |  nt Dev. |  Dev.    |        |  regional needs for skills |
          |     |  Dept.   |          |        |  development and training  |
          |     |          |          |        |  to support advanced       |




          AB 8 (PEREA)                                           Page 11

                                                                       


          |     |          |          |        |  technology fuel           |
          |     |          |          |        |  production, fueling       |
          |     |          |          |        |  infrastructure and        |
          |     |          |          |        |  vehicle manufacture.      |
          |-----+----------+----------+--------+----------------------------|
          | 10  |Quallion  |Electric  |$6.9    |Develop pilot scales,       |
          |     |          |  Battery |  millio|  automated manufacturing   |
          |     |          |          |  n     |  line for lithium-ion      |
          |     |          |          |        |  battery cells and battery |
          |     |          |          |        |packs.                      |
           ----------------------------------------------------------------- 
          Source: The California Energy Commission and the Assembly  
            Natural Resources Committee 

            ARB uses its AB 118 Air Quality Improvement Program funds  
            primarily for incentives to the owners of heavy duty diesel  
            vehicles to upgrade the vehicles and for incentives to  
            consumers to buy alternative-fueled vehicles through its Clean  
            Vehicle Rebate Program (CVRP).  

            The CVRP provides another example of how the recipients of AB  
            118 funds tend to be well off.  Survey data indicates that the  
            typical CVRP recipient earns over $150,000 a year and owns at  
            least one other non-EV car.  ARB reports that through April of  
            this year it had provided the following rebates through the  
            CVRP:


          
           ------------------------------------------------------------------ 
          |   Vehicle Type and Model   |   Number of    |   Total Dollars    |
          |                            |     Rebates    |Allocated           |
          |----------------------------+----------------+--------------------|
          |Light-Duty Zero-Emission    |     11,552     |$32,905,488         |
          |  Vehicle                   |                |                    |
          |----------------------------+----------------+--------------------|
          |BMW 1 Series Active E       |       70       |      $52,500       |
          |----------------------------+----------------+--------------------|
          |CODA                        |       48       |      $120,000      |
          |----------------------------+----------------+--------------------|
          |Ford Focus Electric         |      426       |     $1,065,000     |
          |----------------------------+----------------+--------------------|
          |Honda FCX-Clarity           |       10       |      $45,000       |
          |----------------------------+----------------+--------------------|
          |Honda 2013 Fit EV           |       72       |      $180,000      |
          |----------------------------+----------------+--------------------|




          AB 8 (PEREA)                                           Page 12

                                                                       


          |Mercedes-Benz F-Cell        |       3        |       $7,500       |
          |----------------------------+----------------+--------------------|
          |Mitsubishi i-MiEV           |      116       |      $230,061      |
          |----------------------------+----------------+--------------------|
          |Nissan LEAF                 |     7,924      |    $23,920,390     |
          |----------------------------+----------------+--------------------|
          |Smart ED                    |      338       |      $663,000      |
          |----------------------------+----------------+--------------------|
          |Th!nk City 2011             |       49       |      $116,037      |
          |----------------------------+----------------+--------------------|
          |Tesla Roadster              |      156       |      $660,000      |
          |----------------------------+----------------+--------------------|
          |Tesla Model S - 60 kWh      |      411       |     $1,027,500     |
          |  battery                   |                |                    |
          |----------------------------+----------------+--------------------|
          |Tesla Model S - 85 kWh      |     1,713      |     $4,282,500     |
          |  battery                   |                |                    |
          |----------------------------+----------------+--------------------|
          |Toyota RAV4 EV              |      215       |      $534,000      |
          |----------------------------+----------------+--------------------|
          |Wheego LiFe                 |       1        |       $2,000       |
          |----------------------------+----------------+--------------------|
          |Plug-In Hybrid Electric     |     10,367     |    $15,529,500     |
          |  Vehicle                   |                |                    |
          |----------------------------+----------------+--------------------|
          |Chevy Volt Low Emission     |     5,394      |     $8,087,850     |
          |  package                   |                |                    |
          |----------------------------+----------------+--------------------|
          |Ford CMAX Energi            |      310       |      $465,000      |
          |----------------------------+----------------+--------------------|
          |Ford Fusion Energi          |       75       |      $112,500      |
          |----------------------------+----------------+--------------------|
          |Honda Accord Plug-In        |       15       |      $22,500       |
          |----------------------------+----------------+--------------------|
          |Toyota Prius Plug-In Hybrid |     4,573      |     $6,841,650     |
          |----------------------------+----------------+--------------------|
          |Zero Emission Motorcycle    |      148       |      $159,400      |
          |----------------------------+----------------+--------------------|
          |Brammo                      |       19       |      $21,300       |
          |----------------------------+----------------+--------------------|
          |Vectrix                     |       5        |       $6,900       |
          |----------------------------+----------------+--------------------|
          |Zero                        |      124       |      $131,200      |
          |----------------------------+----------------+--------------------|
          |Neighborhood Electric       |       93       |      $102,550      |
          |  Vehicles                  |                |                    |




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          |----------------------------+----------------+--------------------|
          |GEM                         |       57       |      $56,950       |
          |----------------------------+----------------+--------------------|
          |Miles EV                    |       35       |      $44,100       |
          |----------------------------+----------------+--------------------|
          |Vantage                     |       1        |       $1,500       |
          |----------------------------+----------------+--------------------|
          |Commercial Zero Emission    |       49       |      $980,000      |
          |  Vehicles                  |                |                    |
          |----------------------------+----------------+--------------------|
          |Navistar eStar 300          |       10       |      $200,000      |
          |----------------------------+----------------+--------------------|
          |Smith Newton 1-9            |       39       |      $780,000      |
          |----------------------------+----------------+--------------------|
          |Total                       |     22,209     |$49,676,938         |
          |                            |                |                    |
           ------------------------------------------------------------------ 
          Source: California Air Resources Board

            The Nissan Leaf, at 7,924 rebates, is the number one recipient  
            of rebates, followed by the Chevy Volt, Toyota Prius Plug-in,  
            and the Tesla Model S.  The current net price for the Leaf  
            (after $7,500 federal tax credit and $2,500 CVRP rebate) can  
            be as low as $20,000, the Volt and Prius start at about  
            $33,000, and the Tesla Model S ranges in price from $70,000 to  
            over $100,000.  

           7.Vote of the people  .  The people passed Proposition 26 in  
            November 2010 and so amended the California Constitution to  
            require that any "change in statute which results in a  
            taxpayer paying a higher tax must be imposed by an act passed  
            by not less than two-thirds of all members elected to each of  
            the two houses of the Legislature."  While this bill extends  
            vehicle, tire, and vessel fees that are now taxes under Prop.  
            26, it also extends the sunset date from 2015 to 2024 on law  
            that allows air districts to impose an extra $2 surcharge on  
            vehicle registrations to fund specific air quality activities.  
             In several instances, county counsels have determined that  
            extension of local registration surcharges require, because of  
            Prop. 26, a two-thirds vote of the electorate within a county  
            and counties have taken renewal of local surcharges to the  
            ballot or let them lapse.  Ultimately, the air districts'  
            counsels will have to determine what sort of local vote is  
            needed for the extension authorized here, but as this bill is  
            two-thirds vote, the Legislature could simply take action in  
            this bill to extend those fees.




          AB 8 (PEREA)                                           Page 14

                                                                       


          
           8.Opposition  .  The Sierra Club opposes the provision of the bill  
            abrogating ARB's CFO regulation and eliminating ARB's  
            authority to adopt a similar regulation until 2024.  The  
            Sierra Club asserts that if this provision remains in the bill  
            and becomes law, it will open the flood gates for additional  
            legislation overriding ARB's rulemaking authority, and  
            California will never meet its air pollution or greenhouse gas  
            reduction goals.  

            The Automobile Club of Southern California objects to fees and  
            taxes imposed on gasoline powered on-road vehicles being used  
            to pay for environmental mitigation stemming from off-road  
            equipment, heavy-duty vehicles, and school buses.  The club  
            notes that this violates the "polluter pays" principle and  
            that it has consistently opposed similar proposals to impose  
            fees on passenger vehicles to fund cleanup programs for  
            non-vehicular and heavy duty diesel commercial vehicles.

            The Howard Jarvis Taxpayers Association also opposes the  
            bill's extension of $2 billion tax extension through 2023  
            because it is regressive and because with two million  
            Californians out of work, the Legislature should be cautious  
            before passing more taxes onto consumers.
             
            9.Double-referral  .  The Rules Committee has referred this bill  
            to both this committee and the Environmental Quality  
            Committee.  Therefore, if this bill passes this committee, it  
            will be referred to the Committee on Environmental Quality.
          
          RELATED LEGISLATION:

          SB 11 (Pavley) is nearly identical to this bill.  SB 11 passed  
          this committee on April 9 by a 6-2 vote with a commitment from  
          the author to make several amendments.  She took those  
          amendments when the Senate Appropriations Committee considered  
          the bill in May.  Awaiting hearing in the Assembly  
          Appropriations Committee.
          
          Assembly Votes:
               Floor:    54-20
               Appr: 11-3
               Nat Res:    6-2 
               Trans:    10-3

          POSITIONS:  (Communicated to the committee before noon on  




          AB 8 (PEREA)                                           Page 15

                                                                       


          Wednesday,                                             August  
          14, 2013.)

               SUPPORT:  American Lung Association (sponsor)
                         California Air Pollution Control Officers  
                         Association (sponsor) CALSTART (sponsor)
                         Alliance of Automobile Manufacturers
                         Alameda-Contra Costa Transit District   
                         Associated General Contractors
                         Association of Global Automakers
                         Bay Area Air Quality Management District
                         Bay Area Biosolids to Energy Coalition
                         Butte County Air Quality Management District
                         California Air Resources Board
                         California Association of School Transportation  
          Officials
                         California Association of Winegrape Growers
                         California Biodiesel Alliance
                         California Citrus Mutual
                         California Cotton Ginners & Growers Association
                         California Council for Environmental and Economic  
          Balance
                         California Dairies, Inc.
                         California Electric Transportation Coalition
                         California Energy Commission
                         California Farm Bureau Federation
                         California Forestry Association
                         California Grape & Tree Fruit League
                         California Hydrogen Business Council
                         California Independent Oil Marketers Association
                         California Manufacturers & Technology Association
                         California Municipal Utility Association
                         California Natural Gas Vehicle Coalition
                         California Refuse Recycling Council
                         California Rice Industry Association
                         California Service Station & Automotive Repair  
          Association
                         California Transit Association
                         California Trucking Association
                         Californians Against Waste
                         Caltrain
                         Capstone Turbine Corporation
                         Center for Sustainable Energy
                         Clean Power Campaign
                         Coalition for Clean Air
                         Community Action to Fight Asthma




          AB 8 (PEREA)                                           Page 16

                                                                       


                         Construction Industry Air Quality Coalition
                         Contra Costa Council
                         Electrification Leadership Council
                         Energy Independence Now
                         Environmental Defense Fund
                         Feather River Air Quality Management District
                         Honda
                         Hyandai Motor America
                         Linde North America
                         Los Angeles Area Chamber of Commerce
                         Los Angeles County Economic Development  
          Corporation
                         Madera County
                         Metropolitan Transportation Commission
                         Murieta Valley Unified School District
                         Napa Valley Unified School District 
                         Natural Resources Defense Council
                         Navistar, Inc.
                         Nisei Farmers League
                         Northern Sonoma County Air Pollution Control  
          District
                         Sacramento Council of Governments
                         Sacramento Metropolitan Air Quality Management  
          District
                         Sacramento Municipal Utility District
                         San Diego Gas & Electric
                         San Francisco County Transportation Authority
                         San Joaquin Valley Unified Air Pollution Control  
          District
                         Santa Clara Valley Transportation Authority
                         Sempra Energy
                         South Coast Air Quality Management District
                         Southern California Gas Company
                         County of Tulare
                         UPS
                         Waste Management
                         Western Growers Association
                         Western Agricultural Processors Association
                         Western Propane Gas Association
                         Western States Petroleum Association
                         Yolo-Solano Air Quality Management District

               OPPOSED:  Automobile Club of Southern California
                         Howard Jarvis Taxpayers Association
                         Sierra Club California





          AB 8 (PEREA)                                           Page 17