BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 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  
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          (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  

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            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;  

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             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; 


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             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  

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          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

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