BILL ANALYSIS Ó
SB 359
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Date of Hearing: September 12, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 359 (Corbett) - As Amended: September 6, 2013
Policy Committee:
TransportationVote:11-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the transfer of revenues collected from
smog certificate fees to provide a loan to the Air Resources
Board (ARB) to fund new zero-emission and hybrid vehicle and bus
vouchers, and appropriates funds for various clean vehicle
incentive programs. Specifically, this bill:
1)Requires the Controller to loan $40 million from the Vehicle
Inspection and Repair Fund to the Air Quality Improvement Fund
and allocate as follows:
a) $20 million to the ARB for the Clean Vehicle Rebate
Project (CVRP).
b) $10 million to the ARB for the Hybrid and Zero-Emission
Truck and Bus Incentive Project (HVIP).
c) $10 million to the ARB for the Heavy Duty Vehicle Air
Quality Loan Program.
1)By June 30, 2016, requires $30 million of the loan to be
repaid to the Vehicle Inspection and Repair Fund from a
non-General Fund source, upon appropriation by the Legislature
with interest at the rate earned by the Pooled Money
Investment Account. Requires the remaining $10 million of
the loan to be repaid by June 30, 2021 from the Air Pollution
Control fund in the same manner.
2)Appropriates $8 million from the Enhanced Fleet Modernization
Subaccount, High Polluter Repair Account to the Bureau of
Automotive Repair for the Enhanced Fleet Modernization
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Program.
FISCAL EFFECT
1)This bill provides a one-time loan of $40 million from the
Vehicle Inspection and Repair Fund to the Air Quality
Improvement Fund for specified expenditures.
2)This bill appropriates $8 million from the Enhanced Fleet
Modernization Subaccount, High Polluter Repair Account to the
Bureau of Automotive Repair from existing unallocated
resources.
COMMENTS
1)Rationale. According to proponents of the bill, including
clean technology, alternative vehicle and environmental
groups, the CVRP and HVIP incentive programs are critical to
help the state meet its ambitious clean air and greenhouse gas
reduction goals.
The HVIP was suspended earlier this year due to lack of funds
and a waiting list has been created for CVRP.
This bill, supported by the Administration, loans $40 million
in existing funds collected from smog certificate fees to ARB
to continue these programs and fund a loan guarantee program
for heavy trucks to help small business owners comply with
upcoming clean air regulations.
Additionally, this bill increases the spending authority at
the Bureau of Automotive Repair to provide financial
compensation to retire or repair high-polluting vehicles.
2)Clean Air Programs. The state has several distinct programs
to address air pollution caused by existing vehicles and to
develop cleaner alternative vehicle fuels for widespread use.
These programs include:
a) The Carl Moyer Program , administered by ARB, provides
grants to fund the incremental cost of
cleaner-than-required heavy-duty engines.
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b) AB 118 Programs , created in 2007 by Chapter 750 (Núñez),
temporarily raised various vehicle and vessel registration
fees and smog abatement fees. The statute created three
new accounts:
i. Alternative and Renewable Fuel and Vehicle
Technology Program. With estimated annual revenues of
about $105 million, this fund provides resources to the
California Energy Commission for financial awards to
further the development and commercialization of
technologies for renewable and nonpetroleum fuels that
help to achieve the state's climate change goals.
ii. Air Quality Improvement Program. With estimated
annual revenues of about $45 million, the AQIP fund
provides resources for ARB to award competitive grants
for air quality improvement projects related to fuel and
vehicle technologies. ARB spends the majority of the
funds on the CVRP and HVIP.
iii. Enhanced Fleet Modernization Subaccount. With
annual revenues of about $30 million, this subaccount of
the High Polluter Removal and Repair Account is to be
used by the BAR, in consultation with ARB, to provide
financial compensation for the retirement of
high-polluting California vehicles.
1)Surplus Funds or Prudent Reserve? The unused balance in the
Vehicle Inspection and Repair Fund is estimated to be over $60
million. Revenues in this fund are derived from a portion of
the $8.25 fee for smog check certificates to fund research,
education and administration of the Smog Check program. The
Legislature -may wish to review this fund in the upcoming
budget process to determine if the smog certificate fees
should be reduced or if additional expenditures should be
authorized from the fund.
2)Amendments. This analysis represents the amendments that were
taken in the Transportation Committee but will be formally
adopted by this committee.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081
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