BILL ANALYSIS Ó
SB 11
Page 1
SENATE THIRD READING
SB 11 (Pavley and Cannella)
As Amended September 3, 2013
2/3 vote. Urgency
SENATE VOTE :32-5
TRANSPORTATION 10-3 NATURAL RESOURCES 6-2
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|Ayes:|Lowenthal, Bloom, Bonta, |Ayes:|Chesbro, Garcia, |
| |Buchanan, Daly, Gordon, | |Muratsuchi, Skinner, |
| |Gatto, Holden, Nazarian, | |Stone, Williams |
| |Quirk-Silva | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Linder, Morrell, |Nays:|Grove, Patterson |
| |Patterson | | |
| | | | |
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APPROPRIATIONS 12-4
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Hall, | | |
| |Holden, Pan, Quirk, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, Linder, | | |
| |Wagner | | |
| | | | |
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SUMMARY : Extends for eight to nine 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
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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. Specifically, this bill :
1)Extends until January 1, 2024, the sunset dates of each of the
various fees and surcharges that support the California
Alternative and Renewable Fuel, Vehicle Technology, Clean Air,
and Carbon Reduction Act of 2007 (AB 118 (Núñez), Chapter 750,
Statutes of 2007) and the Carl Moyer Memorial Air Quality
Standards Attainment Program (Moyer Program) (AB 1571
(Villaraigosa), Chapter 923, Statutes of 1999), as follows:
a) $3 increase of the annual vehicle registration fee - $2
for the Alternative and Renewable Fuel and Vehicle
Technology Program (ARFVTP) and $1 for the Enhanced Fleet
Modernization Program (EFMP).
b) $8 increase of the smog abatement fee, paid to register
vehicles that are less than six years old and therefore
exempt from smog check. The revenues are split equally
between ARFVTP and Air Quality Improvement Program (AQIP).
c) $5 increase of the fee for special identification plates
for construction equipment, farm trailers, cotton trailers,
logging vehicles, and cemetery equipment. The revenues are
split equally between ARFVTP and AQIP.
d) $10 or $20 (depending upon the even or odd year of
registration) increase of the vessel registration fee. The
revenues are split equally between ARFVTP and AQIP.
e) $0.75 from the retail fee on new tires to the Air
Pollution Control Fund for the Moyer Program and other air
emission reduction efforts.
f) $2 surcharge for local air districts on vehicle
registrations to fund emission reduction programs,
including the Moyer Program.
2)Defines "publicly available hydrogen-fueling station" as
equipment used to store and dispense hydrogen fuel to vehicles
according to industry codes and standards that is open to the
public.
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3)Preempts, until January 1, 2024, ARB from enforcing
regulations related to its Clean Fuels Outlet (CFO)
regulations and the deployment of hydrogen-fueling stations.
4)Requires ARB, on or before June 30, 2014, and every year
thereafter until 2024, 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 until 2024, 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 until 2024 to
fund the number of stations identified, not to exceed 20% 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
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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
CEC to cease funding for the hydrogen fueling stations.
6)Requires, on or before December 31, 2015, and annually
thereafter until 2024, 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 (Firebaugh),
Chapter 707, Statutes of 2004.
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
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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
the Moyer Program, until January 1, 2024.
15)Provides that the measure is an urgency statute.
EXISTING LAW :
1)AB 118 is funded through temporary increases in vehicle
registration fees ($3), smog abatement fees ($8), boat
registration fees ($10/20), and special identification plate
fees ($5). Collection of these fees is authorized until 2016.
AB 118 supports three major programs:
a) 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) AQIP, administered by ARB in consultation with local air
districts, funds projects that reduce criteria air
pollutants, improve air quality, and provide research for
alternative fuels and vehicles, vessels, and equipment
technologies. AQIP is funded by smog abatement fees, boat
registration fees, and special identification plate fees
and receives between $30-36 million per year.
c) EFMP, under which ARB, in consultation with BAR, pays to
permanently remove cars and small trucks from operation
through voluntary retirement by their owners. EFMP is
funded by $1 of the vehicle registration fee and receives
approximately $30 million per year.
2)Establishes the Moyer Program, administered by ARB and local
air districts, to fund the incremental cost of
cleaner-than-required vehicles, engines, and equipment. The
primary objective of the program is to achieve air quality
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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 (Núñez), 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 CFO regulations, requires certain owners
and lessors of retail gasoline stations to equip an
appropriate number of their stations with clean alternative
fuels. ARB's recent amendments to the regulations focused
primarily on providing outlets for hydrogen fuels.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, increased annual revenues of $180 million (special
fund) for various AB 118 programs at CEC, ARB and BAR.
Increased annual tire revenues of $26 million for the Moyer
Program at ARB. Annual costs in the hundreds of thousands of
dollars to CEC, ARB and BAR to administer the programs (special
fund).
COMMENTS :
Background on AB 118, Moyer and related programs . In 2007, AB
118 established three new programs intended to promote vehicle
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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.
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
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$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 (FY) 2011-2012, approximately
$34 million of EFMP funds were expended for the retirement of
25,741 vehicles.
The Moyer Program was established in 1998 to promote compliance
with federal Clean Air Act requirements. Through the Moyer
program, local air districts provide funding incentives for
heavy-duty vehicles and equipment owners to adopt
emissions-reducing technology. To be eligible for funding,
projects must meet a cost-effectiveness criterion and reduce
nitrogen oxide and fine particulate emissions. In 2004, AB 923
expanded the Moyer Program's covered emissions to include
reductions in particulate matter and reactive organic gasses.
AB 923 also increased the new tire fee to fund the expansion.
Projects that air districts have funded through the Moyer
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
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expenditure until June 30, 2014. Under the new funding scheme,
the program has funded 578 school bus replacements and 2,287
retrofits to date.
AB 118 and AB 923, however, contained provisions that would
sunset the funding sources for the aforementioned programs.
Under terms of AB 923, all changes to the LESBP and Moyer
Program, from the expansion of covered emissions to the tire fee
and registration surcharge increases, will be repealed on
January 1, 2015. Meanwhile under AB 118, the fee increases
funding ARFVTP, AQIP, and EFMP are set to expire on January 1,
2016.
Another stop on the hydrogen highway - ARB trades stick for
carrot . On January 26, 2012, ARB considered amendments to the
CFO regulation as part of its Advanced Clean Cars package. The
amendments were intended to ensure that there was sufficient
hydrogen fueling infrastructure necessary to meet forecasted
fuel cell vehicle deployment. The required stations would have
helped to ensure sufficient availability of hydrogen after fuel
cell vehicles had become commercially available (i.e., large
volumes). The CFO amendments would have required that oil
refiners assure that hydrogen fueling stations were available to
the public once certain triggers were met (10,000 fuel cell
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
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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.
The give and take of AB 118 . Everyone benefits from clean air,
but some of the beneficiaries are more equal than others in the
programs funded by this bill, particularly the AB 118 programs.
The vast majority (over 90%) of funds for both the ARFVTF ($93
million in FY 2011-12) and AQIP ($31 million in FY 2011-12) come
from annual registration fees paid through DMV by vehicle
owners. AB 118 applies a registration fee increase of $3 for
all vehicles, plus an $8 increase in the smog abatement fee that
applies to newer vehicles that are exempt from smog check. $2
of the registration fee goes to ARFVTF and $1 to EFMP. The $8
is split between ARFVTF and AQIP. 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 (AB 118
passed the Senate with a bare majority 21 votes). This bill,
being a two-thirds 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
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made over 180 awards totaling $360 million):
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|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. |
|-----+----------+----------+--------+----------------------------|
| 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 |
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| |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 |
| |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. |
| | | | | |
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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 |
|----------------------------+----------------+--------------------|
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|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 |
|----------------------------+----------------+--------------------|
|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 |
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|----------------------------+----------------+--------------------|
|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 | | |
|----------------------------+----------------+--------------------|
|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 $7,500
federal tax credit and $2,500 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.
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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 this bill 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 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.
Related legislation . AB 8 (Perea) of the current legislative
session is nearly identical to this bill. AB 8 passed the
Assembly by a vote of 54-2 on June 27. AB 8 is pending on the
Senate Floor.
Prior legislation . SB 1455 (Kehoe) was nearly identical to this
bill. SB 1455 passed the Assembly 55-21 on August 31, 2012, but
later failed passage on the Senate Floor 25-10.
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092
FN:
0002224
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