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