BILL ANALYSIS Ó
AB 904
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
904 (Perea) - As Amended April 29, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Air Resources Board (ARB) to create a
rebate program for the purchase of used clean vehicles and used
electric vehicle batteries. Specifically, this bill:
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1)Requires ARB to establish, as part of the Air Quality
Improvement Program (AQIP), the Clean Reused Vehicle Rebate
Project (CRVRP) to provide rebates for the purchase of
eligible used clean air vehicles and used electric batteries.
2)Eligible used vehicles include battery electric, plug-in
hybrid, and fuel cell vehicles.
3)Used vehicles are those that have been sold or registered with
an appropriate authority and operated upon the highway, as
specified.
FISCAL EFFECT:
1)Cost pressures, likely in the tens of millions of dollars to
establish the rebate program (Air Quality Improvement Fund or
Greenhouse Gas reduction Fund).
2)Increased annual costs of $350,000 for ARB to develop,
implement and review the program (Air Quality Improvement Fund
or Greenhouse Gas reduction Fund).
COMMENTS:
1)Purpose. According to the author, disadvantaged communities
in California are disproportionately burdened by multiple
sources of pollution. However, these same communities are far
behind other areas of the state when it comes to receiving
clean air vehicle rebates.
The author cites data showing that clean vehicle rebates in
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Fresno County account for less than 1% of the total rebates
issued throughout the state, despite the fact that Fresno
County ranks 8th out of the 10 most disadvantaged communities
and it has some of the poorest air quality in California.
To address this issue, this bill creates the CRVRP to increase
access to clean vehicles in disadvantaged communities by
incentivizing the purchase of used clean air vehicles and
batteries.
2)Background. AB 118 (Nunez), Chapter 750, Statutes of 2007,
established the AQIP, administered by ARB in consultation with
local air districts, and funded through surcharges on vehicle
and vessel registration fees, smog abatement fees, and
identification plate fees. There is approximately $50 million
annual available for AQIP programs.
As part of AQIP, ARB implemented the CVRP, which offers up to
$5,000 in rebates toward the purchase or lease of eligible
light-duty clean air vehicles. To obtain a CVRP rebate, an
individual is required to purchase or lease an eligible
vehicle and then apply for the rebate. There is no guarantee
that rebates will be issued and participants are encouraged to
apply for rebates before the fund is exhausted.
To ensure program integrity and prevent fraud, ARB has set
certain CVRP requirements including the requirement that
eligible vehicles have zero- and near-zero emissions and that
only one rebate is issued per vehicle. Individuals who
receive a rebate are required to retain ownership of the
vehicle for operation in California for a minimum of 30
consecutive months immediately after purchase or lease and
sign documents, under penalty of perjury, with regard to
compliance with program requirements.
To date, there is no definitive evidence that these rebates
change consumer purchasing behavior rather than reward
behavior that would have happened without the rebates.
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081