BILL ANALYSIS Ó
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Date of Hearing: May 3, 2016
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
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(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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