BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 11
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          Date of Hearing:  August 12, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     SB 11 (Pavley) - As Amended:  August 6, 2013

           SENATE VOTE  :  32-5
           
          SUBJECT  :  Alternative fuel and vehicle technologies: funding  
          programs (urgency)

           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, as well as  
          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.  
           
           EXISTING LAW  :

          1)Establishes the California Alternative and Renewable Fuel,  
            Vehicle Technology, Clean Air, and Carbon Reduction Act of  
            2007 [AB 118 (Nunez), Chapter 750, Statutes of 2007].  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 Alternative and Renewable Fuel and Vehicle  
               Technology Program (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 Air Quality Improvement Program (AQIP), administered  








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               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 Enhanced Fleet Modernization Program (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 Carl Moyer Memorial Air Quality Standards  
            Attainment Program (Moyer Program) [AB 1571 (Villaraigosa),  
            Chapter 923, Statutes of 1999], 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  
            regulations or other legal mandates.  The Moyer Program is  
            funded by vehicle registration surcharges adopted by local air  
            districts.

          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 (Nunez), Chapter  
            488, Statutes of 2006]. 

          5)Requires ARB to adopt regulations to achieve the maximum  
            feasible and cost-effective reduction of GHG emissions from  
            motor vehicles [AB 1493 (Pavley), Chapter 200, Statutes of  
            2002].  
           
          6)Pursuant to ARB 's Clean Fuels Outlet (CFO) regulations,  








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            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. 

           THIS BILL  :

          1)Extends until January 1, 2024 the sunset dates of each of the  
            various fees and surcharges that support AB 118 and the Moyer  
            Program, as follows:  

             a)   $3 increase of the annual vehicle registration fee ($2  
               for the ARFVTP and $1 for the 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 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 (ARB) 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" as  
            equipment used to store and dispense hydrogen fuel to vehicles  
            according to industry codes and standards that is open to the  
            public.  

          3)Preempts, until January 1, 2024, ARB from enforcing  
            regulations related to the CFO regulation and the deployment  
            of hydrogen-fueling stations.  








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          4)Requires ARB, on or before June 30, 2014, and every year  
            thereafter, to aggregate and make available all of the  
            following:   

             a)   The number of hydrogen-fueled vehicles that motor  
               vehicle manufacturers project to be sold or leased over the  
               next three years.  

             b)   The total number of DMV-registered hydrogen-fueled  
               vehicles.  

          1)Requires ARB, on or before June 30, 2014, and every year  
            thereafter, based on the information made available, to do  
            both of the following:  

             a)   Evaluate the need for additional publicly available  
               hydrogen-fueling stations for the subsequent three years.  

             b)   Report findings to the CEC on the need for additional  
               public hydrogen-fueling stations.   

          1)Requires CEC to allocate $20 million annually to fund the  
            number of stations identified, not to exceed 20 percent of the  
            monies appropriated by the Legislature from the ARFVTP Fund,  
            until there are at least 100 publicly available  
            hydrogen-fueling stations in California.  

          2)Allows CEC, in consultation with ARB, upon determination that  
            the full amount is not needed to fund the number of hydrogen  
            stations, to allocate any remaining monies to other ARFVTP  
            projects.  

          3)Requires CEC, in consultation with the ARB, to award funds  
            based on best available data, in accordance with a strategy  
            that supports the deployment of an effective and efficient  
            hydrogen fueling station network.  

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

          5)Upon consultation with ARB in determining that the private  
            sector is establishing publicly available hydrogen fueling  
            stations without the need for government support, authorizes  








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            CEC to cease funding for the hydrogen fueling stations.  

          6)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.  

          7)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.  

          8)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.  

          9)Requires ARB, no later than July 1, 2014, to convene a working  
            group to evaluate the policies and goals for the Moyer Program  
            and programs established pursuant to AB 923.    

          10)Requires a benefit-cost score preference that reflects the  
            expected or potential greenhouse gas emission reduction per  
            dollar awarded by CEC for ARFVTP and the reasonably expected  
            or potential criteria pollutant emission reductions per dollar  
            awarded by ARB for AQIP.

          11)Requires CEC and ARB to ensure that revenues from specified  
            fees imposed on vehicles that are used for purposes of the  
            ARFVTP and AQIP are expended in compliance with Section 3 of  
            Article XIX of the California Constitution, which limits  
            permissible uses of vehicle fee and taxes to specified  
            transportation-related purposes.

          12)Specifies that consumer incentives for light-duty vehicles  
            shall not be greater than compensation given under the  
            Enhanced Fleet Modernization Program (EFMP).  

          13)Adds intelligent transportation systems as a category of  
            projects eligible for funding under the ARFVTP.  

          14)Extends the authorization to fund projects reducing oxides of  
            nitrogen, particulate matter, and reactive organic gases under  








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            the Moyer Program, until January 1, 2024.  

          15)Provides that the measure is an urgency statute.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, annual revenues of $180 million for various AB 118  
          programs until 2024, of which $20 million be directed for the  
          construction and operation of a hydrogen fueling network for  
          three years in FY 13-14, FY 14-15, and FY 15-16 and up to $20  
          million in the remaining years.  Annual tire fee additional  
          revenue of approximately $26 million for the Carl Moyer Program.  
           Annual costs in the hundreds of thousands of dollars to the  
          ARB, CEC, and BAR to continue to administer various air quality  
          and alternative fuel programs and associated reporting  
          requirements which will be fully covered by the surcharge  
          extensions.  Annual costs of approximately $225,000 to the Air  
          Pollution Control Fund beginning in 2013 for the evaluation,  
          analysis, review, and reporting aimed to encourage  
          implementation of the state alternative transportation fuels  
          goal.  

           COMMENTS  :

           1)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 Alternative and  
            Renewable Fuel Vehicle Technology Program (ARFVTP), the Air  
            Quality Improvement Program (AQIP) and the Enhanced Fleet  
            Modernization Program (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. 








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            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 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  








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            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 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.

           2)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  








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            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 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:

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









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           3)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 percent) 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.  These fees are subject to Section 3 of Article XIX of  
            the California Constitution.

            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    |
          |     |          |          |        |Southern California.        |
          |-----+----------+----------+--------+----------------------------|








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          |  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    |
          |     |          |and       |million |and skills development      |
          |     |Employment|Skills    |        |activities.  Identify       |
          |     |          |Developmen|        |regional needs for skills   |








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          |     |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 April  
            30, 2013, according to ARB:

          
           ------------------------------------------------------------------ 
          |   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      |
          |----------------------------+----------------+--------------------|
          |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      |








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          |----------------------------+----------------+--------------------|
          |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                    |                |                    |
          |----------------------------+----------------+--------------------|
          |GEM                         |       57       |      $56,950       |
          |----------------------------+----------------+--------------------|
          |Miles EV                    |       35       |      $44,100       |
          |----------------------------+----------------+--------------------|
          |Vantage                     |       1        |       $1,500       |
          |----------------------------+----------------+--------------------|
          |Commercial Zero Emission    |       49       |      $980,000      |
          |Vehicles                    |                |                    |
          |----------------------------+----------------+--------------------|








                                                                  SB 11
                                                                  Page 14

          |Navistar eStar 300          |       10       |      $200,000      |
          |----------------------------+----------------+--------------------|
          |Smith Newton 1-9            |       39       |      $780,000      |
          |----------------------------+----------------+--------------------|
          |Total                       |     22,209     |$49,676,938         |
          |                            |                |                    |
           ------------------------------------------------------------------ 
          
            The top EV by far is the Nissan Leaf, at 7,924 rebates as of  
            April 30.  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 (2,124  
            rebates as of April 30), 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.

           4)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.

            Senate amendments to SB 11 establish a "benefit-cost score" as  
            a consideration that would apply to ARFVTP and AQIP.  For  
            ARFVTP, the benefit-cost score means a project's  expected or  
            potential GHG emissions reduction  per dollar awarded.  For  
            AQIP, the benefit-cost score means a project's  reasonably  
            expected or potential criteria pollutant emission reductions  
            achieved  per dollar awarded.  For AQIP, "project" is defined  
            as a category of investments, apparently excluding individual  
            incentive payments.  Both CEC and ARB are required to consider  
            benefit-cost score, among other factors, when establishing a  
            competitive process for the allocation of funds for projects,  
            and give preference to funding projects with higher  
            benefit-cost scores.  These benefit-cost score provisions will  








                                                                  SB 11
                                                                  Page 15

            require an up-front estimate of emission reductions for  
            projects.  However, the bill still lacks a requirement to  
            measure and report actual emission reductions achieved at the  
            individual project, investment category, or overall program  
            level.  

           5)Related legislation.   AB 8 (Perea) is nearly identical to this  
            bill.  AB 8 was approved by this committee by a vote of 6-2 on  
            May 6, 2013 and passed the Assembly by a vote of 54-2 on June  
            27.  AB 8 is pending in the Senate Transportation and Housing  
            Committee.

           6)Prior legislation.   SB 1455 (Kehoe) was nearly identical to  
            this bill.  SB 1455 was approved by this committee by a vote  
            of 6-3 on August 29, 2012, passed the Assembly 55-21, but  
            later failed on the Senate Floor 25-10.

           7)Double referral.   This bill was approved by the Assembly  
            Transportation Committee by a vote of 10-3 on July 1.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Lung Association of California (co-sponsor)
          California Air Pollution Control Officers Association  
          (co-sponsor)
          CALSTART (co-sponsor)
          Alameda-Contra Costa Transit District
          Alliance of Automobile Manufacturers
          Associated General Contractors
          Association of Global Automakers
          Bay Area Air Quality Management District
          Bay Area Biosolids to Energy Coalition
          Bioenergy Association of California
          Breathe California
          California Association of Winegrape Growers
          California Center for Sustainable Energy
          California Citrus Mutual
          California Cotton Ginners & Growers Association
          California Council for Environmental and Economic Balance
          California Dairies
          California Electric Transportation Coalition
          California Farm Bureau Federation
          California Grape & Tree Fruit League








                                                                  SB 11
                                                                  Page 16

          California League of Conservation Voters
          California Manufacturers & Technology Association
          California Municipal Utilities Association
          California Natural Gas Vehicle Coalition
          California Otolaryngology Society
          California Public Health Association
          California Refuse Recycling Council
          California Rice Industry Association
          California Service Station & Automotive Repair Association
          California Thoracic Society
          California Transit Association
          California Trucking Association
          Clean Power Campaign
          Coalition for Clean Air
          Contra Costa Council
          CR&R Environmental Services
          Electrification Leadership Council
          Environmental Defense Fund
          Health Care Without Harm
          Honda North America
          Linde North America
          Los Angeles County Medical Association
          Metropolitan Transportation Commission
          Move LA
          Natural Resources Defense Council
          Navistar
          Nisei Farmers League
          Northern Sonoma County Air Pollution Control District
          Physicians for Social Responsibility (SF-Bay Area Chapter &  
          Sacramento Chapter)
          Public Health Institute
          Regional Asthma Management and Prevention
          Sacramento Area Council of Governments
          Sacramento Metropolitan Air Quality Management District
          Sacramento Municipal Utility District
          San Diego Gas & Electric
          San Diego Regional Asthma Coalition
          San Joaquin Valley Air Pollution Control District
          Santa Clara Valley Transportation Authority
          South Coast Air Quality Management District
          Southern California Gas Company
          Southern California Regional Rail Authority
          UPS
          Valley Industry and Commerce Association
          Ventura County Air Pollution Control Board








                                                                  SB 11
                                                                  Page 17

          Waste Management
          Western Agricultural Processors Association
          Western Growers Association
          Western Propane Gas Association
          Western States Petroleum Association
          Workplace Wellness LA
          Yolo-Solano Air Quality Management District
           
            Opposition 
           
          Michelle Steel, State Board of Equalization


           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092