BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 459|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 459
Author: Pavley (D)
Amended: 9/11/13
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
SENATE FLOOR : 36-0, 5/29/13
AYES: Anderson, Beall, Berryhill, Block, Calderon, Corbett,
Correa, De León, DeSaulnier, Emmerson, Evans, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,
Knight, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley,
Price, Roth, Steinberg, Torres, Walters, Wolk, Wright, Wyland,
Yee
NO VOTE RECORDED: Cannella, Fuller, Nielsen, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Vehicle retirement: low-income motor vehicle owners
SOURCE : Author
DIGEST : This bill directs the California Air Resources Board
CONTINUED
SB 459
Page
2
(ARB) to take specific steps to improve the Enhanced Fleet
Modernization Program (EFMP).
Assembly amendments remove the requirement for the Department of
Consumer Affairs to establish a one-year pilot program to help
low-income vehicle owners voluntarily retire gross-polluting
vehicles as specified, and instead require the ARB to take
specific steps to improve the EFMP as specified.
ANALYSIS :
Existing law:
1.Establishes the smog check program, administered by the Bureau
of Automotive Repair (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 the Consumer Assistance Program (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.
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
CONTINUED
SB 459
Page
3
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.
This bill:
1.States the intent of the Legislature that ARB should take all
steps necessary to improve the EFMP to: (a) increase the
benefits of the EFMP to low-income Californians; (b) promote
cleaner replacement vehicles; and (c) enhance emissions
reductions gained by the EFMP.
2.Allows vehicles that have been registered without a
substantial lapse in the state for at least two years prior to
retirement and that have failed a smog test qualify for BAR's
CAP.
3.Establishes that vehicle replacement may be an option for all
motor vehicle owners, that retirement programs may be
combined, that compensation for low-income vehicle owners not
be less than $2,500, and that compensation for all other
vehicle owners not exceed that provided to low-income vehicle
owners.
4.Requires, by June 30, 2015, ARB in consultation with BAR, to
update the EFMP guidelines to:
A. Consider requiring 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;
C. Direct that compensation for either retired or
replacement vehicles for low-income vehicle owners may be
increased as necessary to maximize air quality benefits
while also ensuring low-income vehicle owner participation;
CONTINUED
SB 459
Page
4
D. Provide that increases in compensation amount may be
based on factors including age of the vehicle, emissions
impact of the replacement vehicle, participation by
low-income vehicle owners, and location of the vehicle in
areas of the state with the poorest air quality;
E. Provide that program eligibility may be limited on the
basis of income to ensure the EFMP adequately serves
persons of low or moderate income;
F. Provide coordination between vehicle retirement and
replacement components of EFMP and CAP to ensure that
vehicle owners participate in the appropriate program to
maximize emissions reductions;
G. Streamline administration of EFMP to simplify
predication while protecting the accountability of money
spent; and
H. Ensure vehicles eligible for retirement have sufficient
remaining life as demonstrated by proof of current
registration, passing a recent smog check inspection, or
passing another test similar to a smog check inspection.
1.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 EFMP requirements;
C. An incentive structure with varied incentive amounts to
maximize EFMP 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;
CONTINUED
SB 459
Page
5
E. Increased emphasis on the reduction of greenhouse gas
emissions through the increased vehicle efficiency or
transit use as a result of the EFMP; and
F. Increased partnerships and outreach with community-based
organizations.
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 the 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
SUPPORT : (Verified 9/12/13)
American Lung Association
Asian Pacific Environmental Network
Breathe California
California Council for Environmental and Economic Balance
Coalition for Clean Air
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
South Coast Air Quality Management District
Union of Concerned Scientists
ValleyCAN
OPPOSITION : (Verified 9/12/13)
Association of California Car Clubs
ARGUMENTS IN SUPPORT : The author's office states that, 75% of
CONTINUED
SB 459
Page
6
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.
JA:ej 9/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED