BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 600 (Lieu) - Vehicles: alternative fuel conversions.
Amended: April 23, 2013 Policy Vote: T&H 11-0
Urgency: No Mandate: No
Hearing Date: May 23, 2013 Consultant: Mark McKenzie
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: SB 600 would require the California Air Resources
Board (ARB) to revise procedures that small volume manufacturers
of vehicles must follow for certification of alternative fuel
conversion systems.
Fiscal Impact (as approved on May 23, 2013): Minor costs to ARB
to streamline process for certification of alternative fuel
conversion systems.
Background: Current law charges ARB with primary responsibility
for the control of mobile source air pollution, and broadly
authorizes it to adopt rules for the reduction of emissions and
the specification of fuel composition. Under this authority,
ARB regulates on-road and off-road vehicles, engines, and
equipment that are both new and in-use. Prior to offering a
regulated product for sale in California, ARB must certify that
the manufacturer's product meets emission standards and
requirements.
Fuel conversion systems modify vehicles and engines so they can
run on different fuels than the ones for which they were
originally designed. Most alternative fuel conversions involve
reconfiguring a gasoline or diesel vehicle or engine to operate
on an alternative fuel such as natural gas, propane, alcohol, or
electricity. Prior to selling a fuel conversion system, a
manufacturer must obtain ARB certification to ensure that the
vehicle, engine, or equipment meets state emission standards.
ARB's alternative fuel conversion regulations apply to all
vehicles, regardless of age. If the conversion is done before
the legal title has been transferred to a purchaser, the
conversion manufacturer is considered the Original Equipment
Manufacturer (OEM) and must comply with ARB's new vehicle or
engine certification requirements. Conversions that take place
SB 600 (Lieu)
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after legal title has been transferred are considered "in-use"
conversions and must comply with ARB's alternative fuel retrofit
system certification procedures.
The federal Clean Air Act prohibits manufacturers from altering
a vehicle or engine from its certified configuration. United
States Environmental Protection Agency (US EPA) regulations
exempt alternative fuel conversion manufacturers from this
prohibition if they can demonstrate that the conversion does not
compromise emissions compliance with federal clean air
standards. US EPA amended its alternative fuel conversion
regulations in 2011 in an attempt to streamline the compliance
process. Since that time, ARB has received numerous inquiries
from alternative fuel conversion system manufacturers regarding
state certification requirements. In response, ARB has held a
number of workshops, and in response to comments received, board
staff is developing a proposal to change certification
procedures for conversions that is aimed at streamlining
certification procedures. ARB expects to complete the
rulemaking process by fall of this year.
Proposed Law: Beginning January 1, 2014, SB 600 would require
ARB to do the following when certifying alternative fuel
conversion systems for small volume manufacturers of vehicles:
Use specified US EPA testing procedures.
Certify to federal tailpipe emissions and On-Board Diagnostics
II (ODB-II) standards, as long as they meet or exceed
standards to which the original equipment manufacturer (OEM)
certified on the original fuel.
Automatically qualify alternative fuel conversion
certifications for after-market certifications on new
vehicles, upon request.
Use commercially available fuel for required emissions
testing.
Conduct evaporative emissions testing only on the added
alternative fuel system when certifying a duel-fuel vehicle
conversion.
The bill would also require ARB to extend the life of a new
vehicle or engine certification until the end of the year that
follows the vehicle model year.
Staff Comments: This bill is intended to streamline the ARB
process for certifying alternative fuel conversion systems by
aligning California's standards to the requirements in federal
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regulations. Although this is likely to reduce the time and
expense associated with completing the certification process,
ARB notes several concerns. Since fuel system conversions
change a vehicle dramatically, ARB's current testing procedures
and regulations are structured to ensure that California's
stringent emissions standards are met. This is jeopardized by
provisions in the bill that require the use of federal test
procedures and specify that certification must only meet federal
tailpipe emission standards that meet or improve on the
standards to which the OEM certified for the original fuel,
rather than the more stringent alternative fuel standards for
emissions. In addition, California's standards require that OBD
systems are recalibrated to warn a driver, and record for a smog
check technician, that emissions exceed approved levels. The
federal OBD standards do not meet that threshold.
ARB indicates that they would need three additional positions at
a cost of $483,000 annually to comply with the provisions of
this bill. This would include any one-time costs to update the
regulatory package and testing procedures for alternative fuel
system conversion certifications for both new and in-use
conversions, as well as ongoing workload associated with
increased certifications. ARB anticipates the number of annual
certifications would double from current levels initially, then
increase as the market for alternative fuel conversions matures.
The increase in the volume of fuel conversion manufacturers
seeking certification in California would also result in an
increase in compliance and enforcement activities.
PROPOSED COMMITTEE AMENDMENTS would delete the requirements that
ARB use specified US EPA testing procedures and certify to
federal tailpipe emissions and ODB-II standards when certifying
alternative fuel conversion systems (strike lines 5-13 on page 2
of the bill).