BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    ACR 112


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          ASSEMBLY THIRD READING


          ACR  
          112 (Hadley)


          As Amended  May 5, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |7-0  |Williams, Cristina    |                    |
          |Resources       |     |Garcia, Gomez,        |                    |
          |                |     |Hadley, McCarty, Mark |                    |
          |                |     |Stone, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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.  Declares the  
          Legislature's support for the increased use of real-world  
          emissions verification testing and enhanced penalty authority  
          for ARB to deter future efforts to circumvent emissions  
          standards. 


          EXISTING LAW:  








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          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  
            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  








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            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:  None


          COMMENTS:  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, 10 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  
          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  








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          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. 




          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0002897