BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  May 3, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          ACR 112  
          (Hadley) - As Introduced January 7, 2016


          SUBJECT:  State Air Resources Board


          SUMMARY:  Describes the events that led to the discovery of the  
          Volkswagen defeat devices. Declares that the Legislature thanks  
          the State Air Resources Board (ARB) for its exemplary work  
          uncovering the Volkswagen defeat devices.  


          EXISTING LAW:  


          1)Declares that the Legislature finds emissions of air  
            pollutants from motor vehicles is the primary cause of air  
            pollution in many parts of the state.


          2)Requires ARB to endeavor to achieve the maximum degree of  
            emission reductions possible from vehicular and other mobile  
            sources in order to achieve attainment of state ambient air  
            standards.



          3)Requires ARB to adopt and implement emission standards for new  
            motor vehicles that ARB finds to be necessary and  








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            technologically feasible.



          4)Prohibits a new motor vehicle or new motor vehicle engine from  
            being certified by ARB, unless the vehicle or engine meets the  
            emission standards adopted by ARB.





          5)Prohibits a new motor vehicle required to meet the emission  
            standards adopted by the state from being sold and registered  
            in this state unless the new motor vehicle manufacturer  
            permits ARB to conduct surveillance testing of emissions of  
            new motor vehicles.


          6)Requires ARB to establish criteria for the evaluation of the  
            effectiveness of motor vehicle pollution control devices.


          7)Prohibits a person from installing, selling, or offering for  
            sale any device, apparatus, or mechanism intended for use  
            with, or as a part of, a required motor vehicle pollution  
            control device or system that alters or modifies the original  
            design or performance of the motor vehicle pollution control  
            device or system.


          8)Establishes civil penalties for violations of new motor  
            vehicle emission standards or altering or modifying the motor  
            vehicle pollution control device.


          FISCAL EFFECT:  Non-fiscal










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          COMMENTS:  


          1)Background.  Current scientific evidence links short-term  
            nitrogen dioxide (NO2) exposures, ranging from 30 minutes to  
            24 hours, with adverse respiratory effects including airway  
            inflammation in healthy people and increased respiratory  
            symptoms in people with asthma.  Also, studies show a  
            connection between breathing elevated short-term NO2  
            concentrations and increased visits to emergency departments  
            and hospital admissions for respiratory issues, especially  
            asthma.
            


            Oxides of nitrogen (NOx) react with ammonia, moisture, and  
            other compounds to form small particles.  These small  
            particles penetrate deeply into sensitive parts of the lungs  
            and can cause or worsen respiratory disease, such as emphysema  
            and bronchitis, and can aggravate existing heart disease,  
            leading to increased hospital admissions and premature death.   
            Ozone is formed when NOx and volatile organic compounds react  
            in the presence of heat and sunlight.  Children, the elderly,  
            people with lung diseases, such as asthma, and people who work  
            or exercise outside are at risk for adverse effects from  
            ozone.  These include reduction in lung function and increased  
            respiratory symptoms, as well as respiratory-related emergency  
            department visits, hospital admissions, and possibly premature  
            deaths.





            Emissions that lead to the formation of NO2 generally also  
            lead to the formation of other NOx.  These gases form when  
            fuel is burned at high temperatures and come principally from  
            motor vehicle exhaust and stationary sources, such as electric  
            generators and industrial boilers.  Emissions control measures  








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            leading to reductions in NO2 can generally be expected to  
            reduce population exposures to all gaseous NOx.  This may have  
            the important co-benefit of reducing the formation of ozone  
            and fine particles (PM), both of which pose significant public  
            health threats.  California and the federal government have  
            developed air quality standards for NO2, ozone, and PM. 





          2)Volkswagen.  New motor vehicles and engines must be certified  
            by ARB for emission compliance before they are legal for sale,  
            use, or registration in California.  New motor vehicles are  
            subject to emission tests to verify that compliance.   
            According to a Volkswagen PowerPoint that was discovered as  
            part of the defeat device investigation, ten years ago  
            Volkswagen engineers realized that the emissions control  
            equipment installed in their diesel engines did not have the  
            durability to meet the federal and California's emissions  
            standards.  Durable and effective emissions control equipment  
            would have cost Volkswagen hundreds of dollars more per  
            vehicle and would have increased the sticker price to  
            consumers.  Instead of pursuing the more expensive emission  
            control equipment, Volkswagen developed software, known as a  
            defeat device, that could detect when the vehicle was being  
            put through an emission test and activate the emissions  
            control equipment only for the purposes of passing the test.   
            This would extend the life of the emissions control equipment  
            and allow Volkswagen to appear to be in compliance with  
            federal and California emissions standards.  However, when not  
            being tested, the vehicles were emitting up to 40 times the  
            legal limit.
            


            The events that lead to the discovery of Volkswagen's defeat  
            device began when the Center for Alternative Fuels, Engines  
            and Emissions at West Virginia University was attempting to  








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            understand the difference between vehicle emissions in  
            real-world conditions and lab performance in both America and  
            Europe.  The real-world emissions of a Volkswagen Passat and  
            Jetta were much higher than the lab tests at ARB's El Monte  
            lab.  This prompted ARB to open an investigation on the  
            discrepancy.  Eventually, Volkswagen's engineers admitted they  
            were using defeat devices to ARB. 





            Volkswagen is now subject to both federal and state  
            investigations and enforcement actions. In addition, there  
            have been various lawsuits against the company.  On April 21,  
            2016, several parties to the various lawsuits stated in  
            federal court they have reached an agreement in principle to  
            address approximately 480,000 of 2.0 liter engine vehicles  
            that had defeat devices.  The settlement would give consumers  
            several options to return their vehicles or have their  
            vehicles modified.  The settlement will also deal with  
            compensation for consumers and how to remediate excess  
            emissions. Details of the settlement are currently being  
            worked out. 





          3)Thanks?  This resolution thanks ARB for its role in  
            discovering the defeat device.  However, a thanks might not be  
            enough.  The defeat device was initially used in 2009 models  
            and was not discovered until 2015.  Court documents reveal  
            that Volkswagen thought their chances of getting caught were  
            slim.  In addition, a law firm hired by Volkswagen indicated  
            that previous fines for violating emissions limits did not  
            outweigh the financial benefits of the defeat devices.  The  
            author and committee may wish to amend the resolution to  
            declare that ARB should verify more emission tests under  








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            real-world conditions and penalties for cheating emission  
            tests should be enhanced to deter future efforts to circumvent  
            emission standards.  
             


          4)Amendments.  The author and committee may wish to amend the  
            bill to fix technical errors in resolution and clarify ARB's  
            role in the incident.  
            


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Professional Engineers in California Government




          Opposition


          None on file




          Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092













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