BILL ANALYSIS Ó
SB 459
Page 1
SENATE THIRD READING
SB 459 (Pavley)
As Amended September 6, 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 (ARB) to
take specific steps to improve the Enhanced Fleet Modernization
Program (EFMP). Specifically, this bill :
1)States the intent of the Legislature that 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)Allows vehicles that have been registered without a
substantial lapse to qualify for the Bureau of Automotive
Repair's (BAR's) Consumer Assistance Program (CAP).
3)Requires, by June 30, 2015, ARB in consultation with BAR, to
update the EFMP guidelines to:
a) Include a requirement that a vehicle take, complete, or
pass a smog check inspection;
b) Establish $1,500 as the minimum replacement compensation
for low-income vehicle owners and $1,000 as the maximum
compensation for all other vehicle owners;
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c) Establish that compensation for replacement vehicles for
low-income vehicle owners not be less than $2,500;
d) Direct that compensation for either retired or
replacement vehicles for low-income vehicle owners be
increased as necessary to maximize air quality benefits;
e) Provide that increases in compensation amounts may be
based on factors including:
i) Age of the retired or replaced vehicle;
ii) Emissions benefits of the retired or replaced
vehicle;
iii) Emissions impact of any replacement vehicle;
iv) Participation by low-income vehicle owners; and,
v) Location of the vehicle in the area of the state
with the poorest air quality.
4)Limit eligibility based on income to ensure that the program
adequately serves persons of low to moderate income;
5)Include provisions that coordinate the vehicle retirement and
replacement components with the vehicle retirement components
of CAP;
6)Streamline administration to simplify participation while
protecting the accountability of money spent;
7)Include steps to ensure the vehicle replacement component of
the program is available in areas designated as federal
extreme nonattainment;
8)Include a requirement that vehicles eligible for retirement
have sufficient remaining life which may be demonstrated by:
a) Proof of current registration;
b) Passing a recent smog check inspection; or,
c) Passing another test similar to a smog check inspection.
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9)Authorizes ARB, when updating the EFMP, to study and consider
the following elements:
a) Methods of financial assistance other than vouchers;
b) An option for automobile dealerships or other used car
sellers to accept cars for retirement, provided the cars
are dismantled consistent with program requirements;
c) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions;
d) Increased emphasis on the replacement of high-polluting
vehicles with cleaner vehicles or increased use of public
transit that results in increased use of the vehicle
replacement program;
e) Increased emphasis on the reduction of greenhouse gas
emissions through the increased vehicle efficiency or
transit use as a result of the program; and
f) Increased partnerships and outreach with community-based
organizations.
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
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.
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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.
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
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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. SB 11 is pending on the Assembly Floor.
AB 8 (Perea) of 2013 extends, until January 1, 2024, extra
charges on vehicle registrations, boat registrations, and tire
sales in order to fund, among other programs, the AB 118,
program. This bill would also extend the authority of local air
districts to impose vehicle registration surcharges in their
area. AB 8 is pending on the Senate Floor.
Previous legislation : AB 787 (Hill), Chapter 231, Statutes of
2010, authorizes BAR to pay up to $1,500 to a low-income
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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: 0002607