BILL ANALYSIS Ó
SB 459
Page 1
SENATE THIRD READING
SB 459 (Pavley)
As Amended September 3, 2013
Majority vote
SENATE VOTE :36-0
TRANSPORTATION 11-5 APPROPRIATIONS 12-5
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|Ayes:|Lowenthal, Ammiano, |Ayes:|Gatto, Bocanegra, |
| |Bloom, Bonta, Buchanan, | |Bradford, |
| |Daly, Frazier, Gatto, | |Ian Calderon, Campos, |
| |Holden, Nazarian, | |Eggman, Gomez, Hall, |
| |Quirk-Silva | |Holden, Pan, Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Linder, Achadjian, Logue, |Nays:|Harkey, Bigelow, |
| |Morrell, Patterson | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : Directs the California Air Resources Board to take
specific steps to improve the Enhanced Fleet Modernization Program
(EFMP). Specifically, this bill :
1)States the intent of the Legislature that the California Air
Resources Board (ARB) should take all steps necessary to improve
the EFMP to: increase the benefits of the program to low-income
Californians; promote cleaner replacement vehicles; and enhance
emissions reductions gained by the program.
2)Requires by January 1, 2015, ARB in consultation with the Bureau
of Automotive Repair (BAR), to update the EFMP guidelines to
include:
a) Provisions to coordinate the vehicle retirement and
replacement components of the program with the vehicle
retirement component of BAR's Consumer Assistance Program
(CAP) to ensure vehicle owners participate in the program
most appropriate to maximize emissions reductions;
b) Provisions to streamline the administration of the program
to simplify participation while maintaining expenditure
accountability;
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c) An emphasis on the replacement of high-polluting vehicles
with cleaner vehicles or increased public transit use that
results in increased use of the vehicle replacement component
of the program;
d) An emphasis on the reduction of greenhouse gas emissions
through increased vehicle efficiency or transit use;
e) Specific steps to ensure the vehicle replacement component
of the program is available in federal extreme nonattainment
areas;
f) A requirement that vehicles eligible for retirement are
drivable; and,
g) Increased partnerships with specified stakeholders.
3)Directs ARB to consider the following when it updates the
guidelines:
a) Provisions to address consideration of alternative methods
of financial assistance other than vouchers;
b) Provisions that allow an option for automobile dealerships
or used car sellers to accept cars for retirement provided
the cars are dismantled consistent with existing program
requirements; and,
c) An incentive structure to maximize program participation
and cost-effective emissions reductions.
EXISTING LAW :
1)Establishes the smog check program, administered by BAR and the
ARB and requires, generally, vehicles that are registered in
non-attainment areas for ozone or carbon monoxide pollutant
emissions to undergo biennial emission (smog check) inspections.
2)Requires BAR, in consultation with ARB, to identify target
populations and disseminate information about the smog check
program by all feasible means, including advertisements in
various media and by using grass roots community networks.
3)Establishes CAP, administered by BAR, for the voluntary
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retirement of high-polluting passenger vehicles and light to
medium duty trucks from operation in the state through the
purchase and dismantling of these vehicles. The program is
available to owners when their vehicles fail to pass the smog
check inspection. Under CAP, low-income vehicle owners can
receive $1,500 to retire their vehicle.
4)Provides, under the EFMP pursuant to guidelines adopted by ARB
in consultation with BAR, a program for the voluntary retirement
of passenger vehicles and light and medium duty trucks that are
high polluters, pursuant to AB 118 (Núñez), Chapter 750,
Statutes of 2007. Under the EFMP as administered by BAR,
vehicles do not have to fail smog inspection in order to be
eligible for EFMP benefits.
5)Requires EFMP to focus efforts where the greatest air quality
impact can be identified and to consider cost-effectiveness and
impacts on disadvantaged and low-income populations. Under
EFMP, eligible low-income vehicle owners can qualify for a
$2,500 voucher to be used toward the purchase of a newer vehicle
(up to eight years old). EFMP funding from motor vehicle
registration fees are scheduled to sunset on January 1, 2016.
6)Defines "low-income motor vehicle owner" as a person whose
income does not exceed 225% of the federal poverty level, as
published quarterly in the Federal Register by the United States
Department of Health and Human Services.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor and absorbable costs for ARB to update program
guidelines.
COMMENTS : According to the author, retiring older, high-polluting
vehicles is a cost effective way to reduce air pollution since a
small number of high-polluting cars produce the vast majority of
pollution. The author reports that many of these older,
high-polluting vehicles tend to have poor fuel economy and that
these cars, which are often owned by poor working families, can
keep owners trapped in a cycle of paying high fuel costs and
therefore unable to afford newer, cleaner vehicle with better fuel
economy. The author points out that if a greater number of these
high-polluting vehicles are retired and replaced with cleaner
cars, California would have cleaner air and working families would
have lower overall fuel costs.
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The author notes that under EFMP, 90% of the approximately $30
million available for the program annually has been spent for
vehicle retirement but that very little of that money has been
spent to provide vouchers to help individuals purchase a new,
cleaner vehicles. According to the author, the available funding
allowed BAR to retire over 12,000 high-polluting vehicles in the
program's first year but to date; only 12 vouchers have been
issued.
To help accelerate the rate of retirement for high-polluting
vehicles, the author has introduced this bill which would help to
make the current vehicle retirement program more accessible,
convenient, and financially feasible for low income vehicle
owners.
Writing is support of this bill, the San Joaquin Valley Air
Pollution Control District notes that this bill would have a
significant positive impact on efforts to clean the air in the San
Joaquin Valley because this region of the state, in particular,
has many low income motor vehicle owners who drive high-emitting
vehicles but cannot afford to replace them. The San Joaquin
Valley Air Pollution Control District notes that many of these
vehicle owners are often unaware of the availability of vehicle
replacement program assistance and that helping to eliminate
barriers for participation in the program would help to get
cleaner cars on the road and reduce mobile source emissions.
Writing in opposition to this bill, the Association of California
Car Clubs (ACCC) raises concerns that scrappage programs such as
CAP and EFMP cause valuable and rare car parts to be lost rather
than allowing these parts to be used for vehicle restoration
projects. ACCC contends that individuals using the vehicle
retirement program frequently scrap cars that are infrequently
used, ultimately doing little to improve air quality.
Related bills : SB 11 (Pavley) of 2013, extends fees for air
pollution reduction programs, including the EFMP established under
AB 118. A recent amendment to SB 11 provides that incentives for
light-duty vehicle scrappage under the CAP and the EFMP voucher
program be constrained to current statutory limits. That bill
passed the Assembly Transportation Committee on July 1, 2013 (10-3
vote), and is pending on the Assembly Floor.
Previous legislation : AB 787 (Hill), Chapter 231, Statutes of
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2010, authorizes BAR to pay up to $1,500 to a low-income
individual and up to $1,000 to any other individual who retires
their vehicle under the CAP smog check program or EFMP as
authorized under AB 118.
SB 901 (Steinberg) of 2011, as introduced, would have prioritized
EFMP expenditures for the highest polluting vehicles registered in
areas that are out of attainment with federal air quality
standards. Those provisions were deleted by subsequent amendments
to that bill.
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-2093
FN: 0002262