BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 359
                                                                  Page 1


          SENATE THIRD READING
          SB 359 (Corbett)
          As Amended September 6, 2013
          Majority vote

           SENATE VOTE  :Vote not relevant  
           
           NATURAL RESOURCES               APPROPRIATIONS                  
                            (vote not relevant)        (vote note  
          relevant)

           SUMMARY  :  Loans $30 million from the Vehicle Inspection and  
          Repair (Smog Check) Fund to the Air Resources Board (ARB) to  
          support the Clean Vehicle Rebate Project (CVRP) and Hybrid and  
          Zero-Emission Truck and Bus Voucher Incentive Program (HVIP).   
          Specifically,  this bill  :  
           
          1)Appropriates $30 million from the Air Quality Improvement Fund  
            (AQIF) to ARB for the CVRP and HVIP.

          2)Requires the Controller, upon the order of the Director of  
            Finance, to loan $30 million to the AQIF from the Smog Check  
            Fund.  Requires the loan to be repaid with interest by June  
            30, 2016.
           
          FISCAL EFFECT  :  Appropriates $30 million from AQIF, loans $30  
          million from the Smog Check Fund to the AQIF.

           COMMENTS  :  CVRP and HVIP are the two major components of the Air  
          Quality Improvement Program (AQIP), administered by ARB pursuant  
          to the California Alternative and Renewable Fuel, Vehicle  
          Technology, Clean Air, and Carbon Reduction Act of 2007 [AB 118  
          (Núñez), Chapter 750, Statutes of 2007].  AQIP provides  
          financial incentives for public and private groups and  
          individuals to adopt smog and diesel particulate pollution  
          reducing technology that concurrently reduces greenhouse gas  
          (GHG) emissions.  AQIP 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 temporary surcharges  
          established by AB 118 on smog abatement fees, boat registration  
          fees, and special identification plate fees and receives between  
          $30-36 million per year.  Per the terms of AB 118, these  
          surcharges expire January 1, 2016.  They are proposed for  








                                                                  SB 359
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          extension until January 1, 2024, by two pending bills, AB 8  
          (Perea) and SB 11 (Pavley) of the current legislative session.   
          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.  This bill  
          would supplement CVRP and HVIP funding in the current budget  
          year by borrowing $30 million from the Smog Check Fund, which is  
          funded by the $8.25 administrative fee collected from vehicle  
          owners when they undergo a Smog Check.  Under current law, the  
          fee funds research and development operations, engineering,  
          administration, complaint mediation, enforcement, and public  
          education necessary to run the Smog Check program.


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


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