BILL ANALYSIS Ó
AB 1691
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1691 (Gipson) - As Amended April 20, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Air Resources Board (ARB) to modify the
Enhanced Fleet Modernization Program (EFMP) Plus-up pilot
program guidelines to ensure that the program is not misused and
that priority is given to replacement of the oldest,
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high-mileage vehicles. Specifically, this bill:
1)Requires ARB, by June 30, 2017, to update guidelines for the
vehicle retirement program funded as the EFMP Plus-Up pilot
project to ensure that:
a) Each participating air district develop a plan on how to
eliminate any backlog or waiting list of applicants;
b) Specific steps are taken to ensure the program is not
being misused, including, random income eligibility
verification and contact with program participants at least
once after their vehicles are replaced;
c) Mandatory partnerships with community-based
organizations to ensure outreach accessibility to the
lowest income communities;
d) Evaluation of whether prescreening of applicants for the
program can be enhanced; and,
e) Priority is given to the retirement of vehicles 15 years
old or older and with more than 75,000 miles.
1)For the EFMP, priority is given to the retirement of vehicles
that are 15 years old or older and vehicles with more than
75,000 miles
FISCAL EFFECT:
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One-time special fund cost of around $100,000 for the ARB to
update the EFMP and EFMP Plus-Up guidelines as prescribed by
July 1, 2017. Ongoing costs to monitor compliance should be
absorbable within existing program resources. [Air Pollution
Control Fund]
COMMENTS:
1)Background. Older vehicles are known to be some of the highest
polluting vehicles, because they lack the modern emission
reducing technologies that are currently available. ARB
estimates that California has five times more cars that are
over 20-years old compared to the national average.
To help improve air quality and help meet the state's GHG
reduction goals, a number of programs have been developed to
encourage vehicle owners to scrap their older, high-polluting
cars and trucks and replace them with newer, cleaner vehicles.
While many of these programs are offered to all consumers,
some programs are specifically targeted toward disadvantaged
communities and lower-income residents who tend to own and
operate some of the oldest, high-polluting cars on our roads
primarily because they are more affordable to purchase, but
not necessarily inexpensive to fuel and operate.
The Consumer Assistance Program (CAP), administered by the
Bureau of Automotive Repair, offers up to $500 to low-income
drivers to complete repairs needed to pass a smog test. The
EFMP, administered by ARB, augments CAP by allowing vehicles
to be retired, without first having to fail a smog test, by
authorizing vouchers to replace older, high-emitting vehicles
with cleaner cars. The program offers consumers $1,000 to
retire an older, high polluting vehicle ($1,500 for low-income
consumers).
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In addition, ARB also administers EFMP Plus-Up in two air
districts in California that are classified as extreme
non-attainment (San Joaquin Valley and South Coast). EFMP
Plus-Up, with funding from the GGRF, provides additional down
payment incentives (on top of the "base" EFMP incentives) to
further encourage individuals to retire and replace their
older, less-efficient vehicles with advanced-technology cars.
By "stacking" incentive payments, low-income consumers can
receive between $4,000 and $9,500 toward the purchase of a
replacement vehicle, depending on the make and model of the
replacement vehicle. While the program allows individuals to
trade in their high-polluting cars for cleaner gas-powered
cars, greater incentives are provided if the individual opts
to purchase a hybrid, hybrid-electric, or fully electric
vehicle.
2)Purpose. The model used for EFMP Plus-Up pilot program in the
San Joaquin Valley differs from that in the South Coast Air
District. In the San Joaquin Valley, the program uses "grass
roots" advertising to encourage low- and moderate-income
individuals and households to participate. Using a
pre-screening process, staff are able to identify qualifying
participants with the greatest need and who own and operate
the oldest, highest polluting vehicles. In the South Coast Air
District, individuals are encouraged to participate using more
traditional outreach methods like posters, flyers, billboards,
and websites. While this style of outreach has been
successful, resulting in long waiting lists of participants,
it does not necessarily provide the pre-screening that would
allow staff to prioritize applications so that older, dirtier
cars are addressed first.
The author has introduced AB 1691 to help encourage the most
efficient use of EFMP funds within the Plus-Up program, to
encourage the replacement of the oldest and dirtiest cars from
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California roadways, and to help the lowest-income individuals
and households access the EFMP programs.
3)Recommended Amendment. On page 4, line 10, strike "in the
state" and insert "within the district," as participating air
districts could only ensure program accessibility for the
lowest income disadvantaged communities within their own
district.
4)Related Legislation. AB 1965 (Cooper), pending on this
committee's Suspense file, expands the Enhanced Fleet
Modernization Program Plus-Up (EFMP Plus-Up) in disadvantaged
communities and in additional areas with poor air quality.
AB 1710 (Calderon), also on today's committee agenda, requires
the ARB to implement a comprehensive program to promote
advanced-technology light-duty vehicle deployment in the
state.
AB 1851 (Gray), also on today's agenda, establishes and
expands incentive programs to increase the use of clean-air
vehicles.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
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