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
FN: 0002640