BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 459|
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THIRD READING
Bill No: SB 459
Author: Pavley (D)
Amended: 4/25/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 10-0, 4/23/13
AYES: DeSaulnier, Beall, Cannella, Galgiani, Hueso, Lara, Liu,
Pavley, Roth, Wyland
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE : 4-0, 5/23/13
AYES: De León, Walters, Hill, Padilla
NO VOTE RECORDED: Gaines, Lara, Steinberg
SUBJECT : Smog check: vehicle repair assistance and
retirement program
SOURCE : Author
DIGEST : 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.
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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
the BAR. CAP provides three options:
1.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% of the federal poverty level) qualify if the repair
estimate exceeds $250.
2.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.
In addition, the owner's income must be at or below 225% of
the federal poverty level and the owner cannot have previously
received CAP assistance for the same vehicle.
3.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% 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:
A. Have been continuously registered for two years prior to
application; or
B. Registered as non-operational for a maximum of 60 days
during the prior two years, occurring at least 90 days
prior to application; or
C. 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.
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Existing law requires DCA, in consultation with the Air
Resources Board (ARB), 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 ARB 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:
1.Authorizes DCA to provide "other forms of financial
assistance" for voluntary retirement of gross-polluting
vehicles under CAP.
2.Requires DCA to establish by July 1, 2014, a one-year pilot
program to help low-income vehicle owners voluntarily retire
gross-polluting vehicles.
3.Prohibits DCA from requiring proof of registration for the
last two years prior to accepting a vehicle into the pilot
program, instead allows an owner to reasonably demonstrate
that the car has been operated primarily in the state for the
past two years.
4.Provides reasonable demonstration of operation of the vehicle
in the state is met by either of the following:
A. Proof of car insurance in the state for the last two
years; or
B. An invoice showing the vehicle identification number for
repairs or maintenance during the last two years and proof
of the vehicle owner's residence in the state during the
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last two years.
1.Requires DCA, before January 1, 2016, to report to the
Legislature and the Governor the number of vehicles retired
under this program.
2.Adds car dealerships to the list of entities BAR may use in
dissemination of its public information program.
3.Requires DCA to engage in multilingual outreach to underserved
communities regarding the vehicle retirement program.
Previous Legislation
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/her vehicle under the smog
check program or EFMP.
AB 823 (Hill, 2009), which Governor Schwarzenegger vetoed, would
have limited eligibility for financial assistance under CAP to
low-income individuals, defined as a vehicle owner whose income
does not exceed 225% of the federal poverty level.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Estimated costs to the BAR of approximately $100,000 to
adopt regulations to implement the pilot program that
allows other forms of proof of historical vehicle operation
(High Polluter Repair and Removal Account - HPPRA).
Pilot program vehicle retirement costs of approximately
$1 million, assuming participation by an additional 700
low-income vehicle owners (HPPRA).
BAR administrative costs of $28,646 annually to engage
in enhanced outreach to underserved communities.
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SUPPORT : (Verified 5/23/13)
American Lung Association
Asian Pacific Environmental Network
Breathe California
California Council for Environmental and Economic Balance
Consumer Action
Consumer Federation of California
Consumers for Auto Reliability and Safety
Greenlining Institute
Natural Resources Defense Council
San Joaquin Valley Air Pollution Control District
Union of Concerned Scientists
OPPOSITION : (Verified 5/23/13)
Association of California Car Clubs
Specialty Equipment Market Association
ARGUMENTS IN SUPPORT : The author's office states that, 75% of
vehicular pollution is caused by just 25% 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") 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's office 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.
ARGUMENTS IN OPPOSITION : The Specialty Equipment Market
Association (SEMA) states, "SEMA believes that it is imprudent
for the state to move forward with providing additional funding
to scrap old cars while other vital services are being
eviscerated or compromised through budget cuts. Vehicle
retirement programs accelerate the demise of older vehicles
which are then typically crushed into blocks of metal.
Sometimes referred to as "cash for clunkers," the programs
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rarely focus on how much a vehicle is actually driven. The
programs waste taxpayer dollars on a flawed premise since they
generally collect rarely driven vehicles that have little impact
on cleaning the air or making the nation less dependent on
foreign oil."
JA:ej 5/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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