BILL ANALYSIS Ó ACR 112 Page 1 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: ACR 112 Page 2 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 ACR 112 Page 3 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 ACR 112 Page 4 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