BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 459
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: pavley
VERSION: 4/8/13
Analysis by: Erin Riches FISCAL: yes
Hearing date: April 23, 2013
SUBJECT:
Smog check: vehicle repair assistance and retirement program
DESCRIPTION:
This bill establishes a one-year pilot program to help
low-income vehicle owners retire high-polluting vehicles.
ANALYSIS:
Existing law establishes the Motor Vehicle Inspection Program,
commonly known as the smog check program. The Department of
Consumer Affairs (DCA) administers this program through the
Bureau of Automotive Repair (BAR). The smog check program
generally requires vehicle owners to have their vehicles tested
every two years, with some exceptions including gas-powered
vehicles manufactured prior to 1976, alternatively-fueled
vehicles, and vehicles six years or newer.
If a vehicle fails a smog check, the owner must, in most cases,
repair the vehicle and pass a subsequent smog check in order to
register a vehicle or renew its registration. A vehicle owner
whose vehicle fails a smog test can obtain financial assistance
through the Consumer Assistance Program (CAP), administered by
BAR. CAP provides three options:
Repair cost waiver . A repair cost waiver allows a vehicle
owner to register the vehicle for two years even if it fails
the smog test. In order to qualify for the waiver, the owner
must spend at least $450 on repairs. Low-income vehicle
owners (defined as those with household income at or below 185
percent of the federal poverty level) qualify if the repair
estimate exceeds $250.
Repair cost assistance . Vehicle owners who are current on
their vehicle registration fees and whose vehicle has failed a
smog test qualify for $500 toward emission-related repairs.
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In addition, the owner's income must be at or below 225
percent of the federal poverty level and the owner cannot have
previously received CAP assistance for the same vehicle.
Vehicle retirement . If a vehicle has failed a smog test, the
owner may apply for up to $1,500 (household income at or below
225 percent of the federal poverty level) or $1,000 (all other
individuals) towards a replacement vehicle. The vehicle must
be currently registered as operable, with registration paid,
and:
o have been continuously registered for two
years prior to application; or
o registered as non-operational for a maximum of 60 days
during the prior two years, occurring at least 90 days
prior to application; or
o have had lapsed registration for less than 121 days
during prior two years, provided the vehicle is registered
for at least 90 days prior to application.
Under this program, the owner takes the BAR approval letter to
a BAR-approved vehicle dismantler, who destroys the vehicle
and issues the owner a check.
Existing law requires DCA, in consultation with the state Air
Resources Board, to disseminate information about the smog check
program. Statute permits DCA to accomplish this through
advertisements in various media and by using grass roots
community networks including local opinion leaders, churches,
the PTA, the workplace, and directs the program to identify
target populations through "extensive market research."
Existing law also establishes the Enhanced Fleet Modernization
Program (EFMP), administered by the Air Resources Board in
consultation with BAR for vehicle retirement, and in
consultation with local air districts for vehicle replacement.
This program provides for the voluntary retirement of passenger
vehicles and light- and medium-duty trucks that are high
polluters. Under this program, a vehicle owner whose vehicle
has failed a smog check may apply to BAR for vehicle retirement
assistance; BAR determines whether the owner is eligible for CAP
or EFMP (or neither).
This bill :
Authorizes DCA to provide "other forms of financial
SB 459 (PAVLEY) Page 3
assistance" for voluntary retirement of gross-polluting
vehicles under CAP.
Requires DCA to establish by July 1, 2014, a one-year pilot
program to help low-income vehicle owners voluntarily retire
gross-polluting vehicles. This bill prohibits DCA from
requiring proof of registration for the last two years prior
to accepting a vehicle into the pilot program, instead
allowing an owner to reasonably demonstrate that the car has
been operated primarily in the state for the past two years.
This bill also requires DCA to report to the Legislature the
number of vehicles retired under this program.
Adds car dealerships to the list of entities BAR may use in
dissemination of its public information program.
Requires DCA to engage in multilingual outreach to underserved
communities regarding the vehicle retirement program.
COMMENTS:
1.Purpose . The author states that 75 percent of vehicular
pollution is caused by just 25 percent of the vehicle fleet,
and that vehicle retirement programs are one of the most
effective ways to reduce vehicular air pollution. Although AB
787 (see "Previous legislation" below) helped increase the
number of vehicles retired each year, only 39,413 vehicles
were retired under CAP in 2011-12, leaving millions of
high-polluting cars on California roads. The author states
that many low-income car owners fail to register their cars
continuously for two years because they cannot afford it. As
a result, programs run by nonprofit organizations and local
air districts that do not require two continuous years of
registration have been successful in reaching many targeted
vehicles.
2.Identifying high polluters through smog check . While the Air
Resources Board requires engine manufacturers to meet strict
pollution standards for newer engines, older engines are often
high-polluting. BAR data shows that failure rates increase
significantly with vehicle age: in January 2013, less than 10
percent of 10-year-old vehicles failed smog tests, as compared
to more than 30 percent of 20-year-old vehicles. Because a
vehicle is smog-tested when an owner brings it in as part of
vehicle registration or renewal, unregistered vehicles are
presumably not being smog tested. The Department of Motor
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Vehicles is unable at this time to provide a reliable estimate
of how many unregistered vehicles are on California's roads,
but supporters argue that any unregistered vehicles are likely
older and therefore higher-polluting. Relaxing the
requirement for two continuous years of registration could
thus lead to more vehicles being smog tested and ultimately,
more high-polluting vehicles being retired.
3.Other financial assistance . Current law authorizes BAR to
provide amounts greater than the $1,000 or $1,500 cited above
for vehicle retirement under certain circumstances, such as
when the vehicle is located in an area of the state with the
poorest air quality. The Consumers for Auto Reliability and
Safety notes that by authorizing BAR to consider other forms
of financial assistance, such as subsidized loans for
efficient replacement vehicles, this bill could both broaden
the reach of CAP and make the program more flexible.
4.Proof of operation within the state . Currently, CAP requires
a vehicle owner to provide proof of two continuous years of
vehicle registration in order to qualify for vehicle
retirement assistance. The intent of this requirement is to
help ensure that out-of-state vehicle owners do not take
advantage of the program. While this bill permits a vehicle
owner to instead reasonably demonstrate that the vehicle has
been operated primarily in the state for the past two years,
it does not define how an owner can satisfy this requirement.
EFMP regulations provide that a vehicle owner who provides
either proof of insurance for the last two years, or proof of
vehicle repairs and maintenance for the past two years along
with proof of the owner's residence in the state for the same
period, is eligible for EFMP vehicle retirement assistance.
The committee may wish to consider including this EFMP
language in this bill to define "proof of operation" for the
pilot program.
5.Reporting requirement . This bill requires DCA to report the
number of vehicles retired under the pilot program to the
Legislature as part of the supplemental report requirement in
the 2008 Budget Act. Rather than trying to amend budget
language, which would customarily occur in the budget bill,
the committee may wish to consider replacing this language
with a stand-alone requirement to report to the governor and
Legislature upon completion of the pilot program.
6. Previous legislation
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AB 787 (Hill), Chapter 231, Statutes of 2010, authorized
BAR to pay up to $1,500 to a low-income individual and up
to 1,000 to any other individual who retires his or her
vehicle under the smog check program or EFMP.
AB 823 (Hill) of 2009, which Governor Schwarzenegger
vetoed, would have limited eligibility for financial
assistance under the Consumer Assistance Program to
low-income individuals, defined as a vehicle owner whose
income does not exceed 225 percent of the federal poverty
level.
POSITIONS: (Communicated to the committee before noon on
Wednesday, April 17,
2013.)
SUPPORT: Breathe California
Consumer Federation of California
Consumers for Auto Reliability and Safety
OPPOSED: Association of California Car Clubs
Specialty Equipment Market Association