BILL ANALYSIS Ó SB 11 Page 1 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 SB 11 Page 2 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, SB 11 Page 3 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. SB 11 Page 4 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 SB 11 Page 5 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 SB 11 Page 6 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. SB 11 Page 7 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 SB 11 Page 8 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 SB 11 Page 9 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. SB 11 Page 10 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. | |-----+----------+----------+--------+----------------------------| SB 11 Page 11 | 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 | SB 11 Page 12 | |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 | SB 11 Page 13 |----------------------------+----------------+--------------------| |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