BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sb 621
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  gaines
                                                         VERSION: 4/2/13
          Analysis by:  Erin Riches                      FISCAL:  yes
          Hearing date:  April 9, 2013



          SUBJECT:

          Vehicular diesel emissions:  compliance

          DESCRIPTION:

          This bill requires the state Air Resources Board (ARB) to amend  
          its In-Use On-Road Heavy-Duty Diesel Vehicles regulation to  
          extend compliance dates by five years.

          ANALYSIS:

          Existing law requires ARB to adopt standards and regulations on  
          all classes of motor vehicles that will result in, among other  
          things, reductions in motor vehicle exhaust and evaporative  
          emissions.  While ARB requires engine manufacturers to meet  
          strict pollution standards for newer engines, older engines are  
          often high-polluting.  Accordingly, in 2008, ARB adopted the  
          In-Use On-Road Heavy-Duty Diesel Vehicles Regulation (commonly  
          referred to as the truck and bus rule), which requires diesel  
          trucks and buses that operate in California to be upgraded to  
          reduce emissions.  The truck and bus rule specifically applies  
          to nearly all privately and federally owned diesel-fueled trucks  
          and buses, as well as privately and publicly owned school buses  
          with a gross vehicle weight rating greater than 14,000 pounds.   
          Other public fleets, solid waste collection trucks, and transit  
          buses are covered under other regulations, as are trucks that  
          transport marine containers.

          The truck and bus rule generally requires owners to:

           Retrofit heavier trucks with particulate matter filters  
            beginning January 1, 2012, and replace older trucks beginning  
            January 1, 2015.  By January 1, 2023, nearly all trucks and  
            buses will need to have 2010 model-year engines or the  
            equivalent.  

           Retire buses that operate more than 1,000 miles per year and  




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            that were manufactured prior to April 1, 1977.

           Install, by January 1, 2012, particulate filters on 33 percent  
            of the remaining bus fleet manufactured since 1977; 66 percent  
            of the fleet by January 1, 2013; and the entire fleet by  
            January 1, 2014.

          The most common diesel emission control device is a diesel  
          particulate filter, which substitutes for the original factory  
          muffler.  This device, if maintained properly, reduces harmful  
          air pollution from diesel engine exhaust before it is emitted  
          into the air.  ARB evaluates and approves these devices to  
          ensure they meet specific particulate matter (PM) or nitrogen  
          oxide (NOx) emission reductions.
          The truck and bus rule includes vehicles such as yard trucks  
          with on-road engines, yard trucks with off-road engines used for  
          agricultural operations, and two-engine street sweepers.  The  
          truck and bus rule exempts any "low-use vehicle," defined as a  
          vehicle that will be operated fewer than 1,000 miles in  
          California per year, as well as emergency vehicles, snow-removal  
          vehicles, military vehicles, and privately owned motor homes.  

           This bill  requires ARB to amend the truck and bus rule to extend  
          compliance dates by five years.  Specifically, this bill  
          requires ARB to extend by five years all compliance dates in all  
          generally applied schedules and phase-in options, exemptions,  
          and delays included in the regulation.

          COMMENTS:

           1.Purpose  .  The author notes that California's small businesses  
            face significant costs to comply with the truck and bus rule.   
            The truck and bus rule also impacts non-profit entities that  
            run enterprises such as mobile blood banks and church buses,  
            leaving them potentially at risk of being unable to continue  
            carrying out their respective missions.  The California  
            Construction Trucking Association argues that 60 percent of  
            its members are small businesses who in current economic  
            conditions cannot afford to meet the truck and bus rule's  
            deadlines.  This bill provides additional time for these  
            businesses to comply.  

           2.The costs of delaying compliance  .  ARB points out that most  
            diesel trucks and buses last 20 years or longer and many have  
            little or no emission controls.  As a result, these vehicles  
            emit large amounts of smog-forming NOx and PM.  Altogether,  




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            trucks and buses account for about 32 percent of the statewide  
            emissions of NOx and about 40 percent of diesel PM emissions  
            from all mobile sources.  In California, the number of  
            PM-related cardiopulmonary premature deaths from all sources  
            is 9,200 per year.  The American Lung Association in  
            California notes that high emissions disproportionately affect  
            low-income communities and communities of color, particularly  
            those living near ports, rail yards, major roadways, and other  
            major sources of toxic diesel particulate pollution.  ARB  
            projects that the truck and bus rule will reduce PM emissions  
            by about seven tons per day, reduce NOx emissions by about 88  
            tons per day, and help prevent approximately 3,500 premature  
            deaths in California by 2023.  These emission reductions are  
            also necessary to meet federal clean air standards.

           3.Fairness issue  .  Since the truck and bus rule has been in  
            effect for five years, many fleet owners have already invested  
            funds in compliance measures.  Giving some fleet owners more  
            time to comply could put those who have invested to meet  
            existing deadlines at a competitive disadvantage.  

           4.Compliance assistance available  .  In addition to phasing in  
            the truck and bus rule's compliance deadlines, ARB offers  
            several forms of assistance to help fleets comply.  For  
            example, fleets could have earned credits to delay compliance  
            for heavier trucks by installing a PM filter by July 1, 2011,  
            replacing a vehicle with a 2007 or newer engine by January 1,  
            2012, or purchasing a fuel efficient hybrid vehicle,  
            alternative fueled vehicle, or vehicle equipped with pilot  
            ignition engines.  In addition, ARB and many local air  
            districts offer funding and loan assistance programs to help  
            pay a portion of retrofit costs or truck replacements.

           5.Small fleet assistance also available  .  The truck and bus rule  
            includes a "small fleet option" specifically aimed at fleets  
            of one to three trucks.  This option delays PM filter  
            requirements until 2014 and defers truck replacements until  
            2020 or later for heavier trucks (over 26,000 pounds).   
            Specifically, small fleet owners must retrofit one vehicle in  
            their fleet with a PM filter by 2014; two vehicles by 2015;  
            and three vehicles by 2016.  Small fleet owners can also delay  
            heavier truck replacements until 2023 if they demonstrate that  
            all of their heavier vehicles are equipped with PM filters by  
            2014.  Single truck owners can delay the PM filter requirement  
            for heavier trucks until 2014, and defer truck replacement  
            until 2023.   




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           6.Not everyone eligible for assistance  .  Although ARB offers  
            many forms of assistance, not all fleet owners qualify.  For  
            example, many churches throughout the state operate buses to  
            help transport children to church, usually in low-income  
            neighborhoods.  These churches point out that they do not have  
            the resources to retrofit and replace their buses, which tend  
            to be old, high-polluting buses purchased from school  
            districts replacing their fleets.  Church buses, though  
            generally only operated once a week, do not log few enough  
            miles to qualify for the low-use exemption of 1,000 miles per  
            year.  In addition, since the Constitution prohibits state  
            agencies from providing direct incentives to religious  
            organizations, churches do not qualify for ARB incentives.   
            Churches have sought to raise the low-use exemption to 5,000  
            miles per year; ARB denied the request and legislation last  
            year was unsuccessful (see "Previous legislation" below).

           7.Usurping ARB's role  ?  The Legislature created ARB in 1967,  
            assigning it to promote and protect public health, welfare,  
            and ecological resources through the effective and efficient  
            reduction of air pollutants.  ARB adopts regulations through a  
            lengthy public process that can take up to two years or more.   
            This bill raises the policy question of whether it is  
            appropriate to override ARB's authority by undoing decisions  
            taken during that public process.  In addition, if this bill  
            becomes law, ARB must start a new rulemaking process to adopt  
            the changes to the truck and bus rule.  The committee may wish  
            to consider whether triggering another rulemaking process on  
            an established regulation is an efficient use of state  
            resources.  

           8.Previous legislation  .  Two bills addressed the truck and bus  
            rule last year.  AB 2024 (Mendoza) of 2012 stated legislative  
            intent that ARB establish a definition of "low-use vehicle,"  
            specific to tax-exempt churches and religious organizations,  
            that would raise the truck and bus rule's mileage exemption  
            limit from 1,000 miles per year to 5,000 miles per year.  AB  
            2024 was held on the suspense file in the Assembly  
            Appropriations Committee.  AB 344 (Mendoza) was amended late  
            in the 2011-2012 session to require ARB to define, for  
            tax-exempt non-profit organizations, a "low-use vehicle" as a  
            vehicle operated fewer than 5,000 miles in the state per year.  
             This bill was re-referred from the Senate Floor to the Senate  
            Transportation and Housing Committee, where it failed passage.





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           9.Double Referral  .  The Rules Committee referred this bill to  
            both the Transportation and Housing Committee and to the Rules  
            Committee.  Therefore, if this bill passes this committee, it  
            will be referred back to the Rules Committee, which may then  
            refer it to another policy committee or to Appropriations  
            Committee.












































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          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             April 3,  
          2013.)

               SUPPORT:  Air Conditioning Trade Association
                         American Subcontractors Association California,  
          Inc.  
                         California Construction Trucking Association
                         Plumbing-Heating-Cooling Contractors Association  
          of California
                         Western Electrical Contractors Association
                                                       
               OPPOSED:  American Lung Association in California