Amended in Assembly September 6, 2013

Amended in Assembly September 3, 2013

Amended in Assembly August 5, 2013

Amended in Assembly June 24, 2013

Amended in Senate April 25, 2013

Amended in Senate April 8, 2013

Senate Bill No. 459

Introduced by Senator Pavley

February 21, 2013

An act to begin delete add Section 44127 to end delete begin insert amend Sections 44062.3 and 44125 of end insert the Health and Safety Code, relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

SB 459, as amended, Pavley. Vehicle retirement: low-income motor vehicle owners.

begin insert

(1) Existing law establishes a motor vehicle inspection and maintenance program, referred to as a smog check program, developed, implemented, and administered by the Department of Consumer Affairs. The duty of enforcing and administering the program is vested in the Chief of the Bureau of Automotive Repair within the department.

end insert begin insert

This bill would require instead a motor vehicle to have been registered without substantial lapse, as determined by the department, in the state for at least 2 years prior to vehicle retirement and to have failed any type of smog check inspection lawfully performed in the state to qualify to receive a specified vehicle retirement payment. The bill would authorize, rather than require, the department to permit vehicle retirement for any motor vehicle that has been registered without substantial lapse in the state for at least 2 years prior to vehicle retirement and that fails any type of smog check inspection lawfully performed in the state.

end insert begin delete

Existing

end delete

begin insert (2) end insert begin insert   end insert begin insert Existing end insert law creates an enhanced fleet modernization program for the retirement of high polluting vehicles to be administered by the Bureau of Automotive Repair pursuant to guidelines adopted by the State Air Resources Board. begin insert Existing law requires the department to pay a person who retires his or her vehicle $1,500 for a low-income motor vehicle owner, as defined, and $1,000 for all other motor vehicle owners, and authorizes additional payments above these amounts based on consideration of specified criteria. end insert

begin delete

The

end delete

begin insert This end insert bill would require the state board, in consultation with the bureau and no later than begin delete January 1 end delete begin insert June 30 end insert , 2015, to update the guidelines for the enhanced fleet modernization program to include specified elements and to study and consider specified elements. The bill would make various findings and declarations. begin insert The bill, in addition, would establish compensation for replacement vehicles for low-income vehicle owners at not less than $2,500 and would make this compensation available to an owner in addition to the compensation for a retired vehicle. The bill would authorize end insert begin insert instead an increase in the compensation under these programs for either retired or replacement vehicles for only low-income motor vehicle owners as necessary to balance maximizing air quality benefits of the program while ensuring participation by low-income motor vehicle owners, as specified. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares that the State
Air Resources Board should take all the steps necessary to improve
the enhanced fleet modernization program (Article 11 (commencing
with Section 44125) of Chapter 5 of Part 5 of Division 26 of the
Health and Safety Code) to increase the benefits of the program
for low-income California residents, as defined in Section 44062.1
of the Health and Safety Code, promote cleaner replacement
vehicles, and enhance emissions reductions gained by the program.

begin delete

SEC. 2.  

Section 44127 is added to the Health and Safety Code,
to read:

44127.  

(a) No later than January 1, 2015, the state board, in
consultation with the bureau, shall update the program established
pursuant to Section 44125. The program shall continue to be
administered by the bureau pursuant to guidelines updated and
adopted by the state board.

(b) The updated guidelines shall supplement Section 44125 to
include all of the following elements:

(1) Provisions that coordinate the vehicle retirement and
replacement components of the program established pursuant to
Section 44125 with the vehicle retirement component of the
bureau’s Consumer Assistance Program established pursuant to
other provisions of this chapter to ensure vehicle owners participate
in the appropriate program to maximize emissions reductions and
participation in the vehicle replacement component of the program
established pursuant to Section 44125.

(2) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.

(3) Increased emphasis on the replacement of high polluters
with cleaner vehicles or the increased use of public transit that
results in increased utilization of the vehicle replacement
component of the program established pursuant to Section 44125.

(4) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit use as a
result of the program established pursuant to Section 44125.

(5) Specific steps to ensure the vehicle replacement component
of the program established pursuant to Section 44125 is available
in areas designated as federal extreme nonattainment.

(6) A requirement that vehicles eligible for retirement are
driveable.

(7) Increased partnerships and outreach with local opinion
leaders, community nonprofits, churches, the PTA, automobile
dealerships, auto loan institutions, licensed auto dismantlers, and
employers.

(c) When updating the guidelines to supplement Section 44125,
the state board shall study and consider all the following elements:

(1) Methods of financial assistance other than vouchers.

(2) An option for automobile dealerships or other used car sellers
to accept cars for retirement provided the cars are dismantled
consistent with the requirements of the program established
pursuant to Section 44125.

(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 44062.3 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

44062.3.  

(a) The owner of a motor vehicle that has been
begin delete continuously end delete registered begin insert without substantial lapse, as defined by
the department, end insert in the state for at least two years prior to vehicle
retirement, and that has failed the most recent smog check
inspection for that vehicle, may retire the vehicle from operation
at a dismantler under contract with the begin delete Bureau of Automotive
Repair end delete begin insert bureau end insert , at any time after learning of the smog check failure.
The department shall pay a person who retires his or her vehicle
under this section one thousand five hundred dollars ($1,500) for
a low-income motor vehicle owner, as defined in Section 44062.1,
and one thousand dollars ($1,000) for all other motor vehicle
owners. The department may pay a motor vehicle owner more than
these amounts based on factors, including, but not limited to, the
age of the vehicle, the emission benefit of the vehicle’s retirement,
the emission impact of any replacement vehicle, and the location
of the vehicle in an area of the state with the poorest air quality.

(b) The department begin delete shall end delete begin insert may end insert permit vehicle retirement pursuant
to subdivision (a) for any motor vehicle that has been begin delete continuously end delete
registered begin insert without substantial lapse, as defined by the department, end insert
in the state for at least two years prior to vehicle retirement, and
that fails any type of smog check inspection lawfully performed
in the state.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 44125 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

44125.  

(a) No later than July 1, 2009, the state board, in
consultation with the begin delete Bureau of Automotive Repair (BAR) end delete begin insert bureau end insert ,
shall adopt a program to commence on January 1, 2010, that allows
for the voluntary retirement of passenger vehicles and light-duty
and medium-duty trucks that are high polluters. The program shall
be administered by the begin delete BAR end delete begin insert bureau end insert pursuant to guidelines adopted
by the state board.

begin insert

(b) No later than June 30, 2015, the state board, in consultation
with the bureau, shall update the program established pursuant
to subdivision (a). The program shall continue to be administered
by the bureau pursuant to guidelines updated and adopted by the
state board.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The guidelines shall ensure all of the following:

(1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the begin delete BAR end delete begin insert bureau end insert .

(2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized under law.

(3) The program is available for high polluting passenger
vehicles and light-duty and medium-duty trucks that have been
continuously registered in California for two years prior to
acceptance into the program or otherwise proven to have been
driven primarily in California for the last two years and have not
been registered in another state or country in the last two years.
begin insert The guidelines may require a vehicle to take, complete, or pass a
smog check inspection. end insert

(4) The program is focused where the greatest air quality impact
can be identified.

(5)  begin insert (A) end insert begin insert   end insert Compensation for retired vehicles shall be begin insert at least end insert one
thousand five hundred dollars ($1,500) for a low-income motor
vehicle owner, as defined in Section 44062.1, and begin insert no more than end insert
one thousand dollars ($1,000) for all other motor vehicle owners. begin delete The department may pay a motor vehicle owner more than these
amounts based on factors including, but not limited to, the age of
the vehicle, the emission benefits of the vehicle’s retirement, the
emission impact of any replacement vehicle, and the location of
the vehicle in an area of the state with the poorest air quality. end delete

begin insert

(B) Compensation for replacement vehicles for low-income
motor vehicle owners, as defined in Section 44062.1, shall be no
less than two thousand five hundred dollars ($2,500), and may be
in addition to compensation for vehicles retired pursuant to
subparagraph (A).

end insert begin insert

(C) Compensation for either retired or replacement vehicles
for low-income motor vehicle owners may be increased as
necessary to maximize the air quality benefits of the program while
also ensuring participation by low-income motor vehicle owners
as defined in Section 44062.1. Increases in compensation amounts
may be based on factors, including, but not limited to, the age of
the retired or replaced vehicle, the emissions benefits of the retired
or replaced vehicle, the emissions impact of any replacement
vehicle, participation by low-income motor vehicle owners, as
defined in Section 44062.1, and the location of the vehicle in an
area of the state with the poorest air quality.

end insert

(6) Cost-effectiveness and impacts on disadvantaged and
low-income populations are considered. begin insert Program eligibility may
be limited on the basis of income to ensure the program adequately
serves persons of low or moderate income. end insert

begin insert

(7) Provisions that coordinate the vehicle retirement and
replacement components of the program with the vehicle retirement
component of the bureau’s Consumer Assistance Program,
established pursuant to other provisions of this chapter, to ensure
vehicle owners participate in the appropriate program to maximize
emissions reductions.

end insert begin insert

(8) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.

end insert begin insert

(9) Specific steps to ensure the vehicle replacement component
of the program is available in areas designated as federal extreme
nonattainment.

end insert begin insert

(10) A requirement that vehicles eligible for retirement have
sufficient remaining life. Demonstration of sufficient remaining
life may include proof of current registration, passing a recent
smog check inspection, or passing another test similar to a smog
check inspection.

end insert begin insert

(d) When updating the guidelines to the program established
pursuant to subdivision (a), the state board shall study and
consider all the following elements:

end insert begin insert

(1) Methods of financial assistance other than vouchers.

end insert begin insert

(2) An option for automobile dealerships or other used car
sellers to accept cars for retirement, provided the cars are
dismantled consistent with the requirements of the program.

end insert begin insert

(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.

end insert begin insert

(4) Increased emphasis on the replacement of high polluters
with cleaner vehicles or the increased use of public transit that
results in the increased utilization of the vehicle replacement
component of the program.

end insert begin insert

(5) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit use as a
result of the program.

end insert begin insert

(6) Increased partnerships and outreach with community-based
organizations.

end insert