BILL ANALYSIS Ó
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Date of Hearing: April 11, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 1965
(Cooper) - As Amended March 16, 2016
SUBJECT: Vehicle retirement and replacement
SUMMARY: Requires the California Air Resources Board (ARB) to
expand the Enhanced Fleet Modernization Program Plus-Up (EFMP
Plus-Up) in disadvantaged communities and in areas with poor air
quality to increase the retirement and replacement of
high-polluting vehicles. Specifically, this bill:
1)Makes findings and declarations regarding high polluting
light- and medium-duty vehicles.
2)Declares the intent of the Legislature to expand EFMP Plus-Up
to help the state meet its environmental goals and maximize
disadvantaged community benefits.
3)Requires ARB, in consultation with the Bureau of Automotive
Repair (BAR), beginning in the 2016-17 fiscal year (FY) and
annually thereafter, to set specific measurable goals for the
retirement and replacement of passenger vehicles and
light-duty and medium-duty trucks that are high polluters.
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4)Requires ARB, in consultation with BAR, to meet established
goals by updating program guidelines no later than July1,
2017.
5)Requires that the updated guidelines ensure that:
a) Specific steps are taken such that the vehicle
replacement portion of the program is available in areas at
risk of being designated as federal extreme non-attainment;
b) Specific steps are taken such that the vehicle
replacement portion of the program is available in all
districts containing disadvantaged communities;
c) Funding for outreach in low-income and disadvantaged
communities is increased from the amount allocated in the
2015-16 FY; and,
d) There is improved coordination, integration, and
partnerships with other programs that target disadvantaged
communities and receive Greenhouse Gas Reduction Fund
(GGRF) funds.
6)Requires, no later than July 1, 2018, and every other year
thereafter, that ARB collect and post the following
information on the program's Internet Web site:
a) Program performance relative to adopted program goals;
b) An accounting that includes, but is not limited to,
funding allocated to the program, funding sources, and
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program expenditures by region; and,
c) A comment on the overall success, or lack thereof, of
the program including recommendations to improve overall
program performance, if ARB determines program improvements
are needed.
7)Authorizes ARB, upon appropriation by the Legislature, to
allocate monies for program expansion from the EFMP
subaccount; the High Polluter Repair and Removal Account; or,
the Vehicle Inspection and Repair Fund.
8)Defines a variety of terms.
EXISTING LAW:
1)AB 32 (Núñez), Chapter 488, Statutes of 2006, required ARB to
reduce greenhouse gas (GHG) emissions to the 1990 level by
2020 and authorized ARB to use market-based mechanisms (cap
and trade) to achieve compliance with these regulations.
2)Created the Consumer Assistance Program (CAP) to encourage
voluntary accelerated vehicle retirement ("car scrap") which
provides a monetary incentives to vehicle owners to retire
older, high polluting vehicles. Under this program owners who
scrap their vehicles are given $1,000 ($1,500 for low income
consumers) for vehicles that have failed their last smog test.
3)Established the EFMP pursuant to AB 118 (Núñez), Chapter 750,
Statutes of 2007, to be funded by a $1 surcharge on motor
vehicle registration, to encourage the retirement of high
polluting passenger vehicles and light- and medium-duty trucks
in areas with the greatest air quality impacts. The program
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offers $1,000 ($1,500 for low-income consumers) to retire
specified high-polluting vehicles.
4)Established the EFMP-Plus-Up as a pilot project in the Greater
Los Angeles area and San Joaquin Valley to help low-income
individuals and families retire high-polluting vehicles and
purchase cleaner cars. The program provides increasingly
larger cash payments for the lowest-income families to move
into the cleaner cars.
5)Established the Charge Ahead California Initiative
(Initiative), pursuant to SB 1275
(de León), Chapter 530, Statutes of 2014, to provide
incentives that increase the availability of zero-emission
vehicles (ZEV) and near-zero-emission vehicles (NZEV)
vehicles, particularly in disadvantaged and
low-and-moderate-income communities.
FISCAL EFFECT: Unknown
COMMENTS: It is well known that burning petroleum-based
products in internal combustion engines produces criteria
pollutants as well as GHG emissions. This, along with the large
number of cars on our roadways explains why the transportation
sector represents one of the largest sources emissions in
California. 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
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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 target 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.
A number of programs have been developed to help individuals
make necessary repairs when a vehicle fails to pass a smog test,
but, more importantly, a number of programs have been developed
to encourage individuals to scrap these older, high- polluting
cars and replace them with cleaner, more fuel-efficient
vehicles.
The CAP, administered by BAR, 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).
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.
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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.
According to the author, EFMP Plus-Up has been extremely
successful and has resulted in the retirement of 292 high
emitting vehicles in the first six months of the program in the
San Joaquin Valley alone. He also notes that the program is
helping the most disadvantaged Californians and making
substantial inroads in retiring older, high-polluting vehicles
and improving air quality in regions of the state with some of
the worst air quality.
The author points out that other regions of the state, who are
on the verge of non-attainment of federal clean air standards,
would also benefit from this program and that these regions,
which include the Sacramento Metropolitan Air Quality Management
District have expressed an interest in being able to utilize
this successful program. The author contends that expanding
these programs will help other areas of the state improve air
quality while assisting disadvantaged populations.
To help accomplish this, the author introduced ab 1965 which
would allow the expansion of EFMP Plus-Up to other regions of
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the state, by requiring ARB, in consultation with BAR, to revise
EFMP Plus-Up Program guidelines, no later than July 1, 2017, to,
among other things, ensure that the program is available in
areas of the state that are at risk of being designated as
federal extreme non-attainment areas. This bill also requires
that specific steps are taken to ensure that the vehicle
replacement component of the program is available in all
districts with disadvantaged communities.
Writing in support, the Charge Ahead California Steering
Committee (made up of five member organizations including the
Coalition for Clean Air, Communities for a Better Environment,
Environment California Research and Policy Center, The
Greenlining Institute, and the Natural Resources Defense
Council) notes that significant expansion of EFMP Plus-Up to
regions of the state with poor air quality and large populations
of disadvantaged communities will help the state to achieve its
emissions reductions goals and improve air quality.
Specifically, they note that this effort will further expand the
deployment of ZEVs bringing cleaner air and economic
opportunities to underserved Californians.
Committee comments: EFMP Plus-Up has proven to be a very
successful program in that it helps low-income families in
disadvantaged communities get into cleaner vehicles, improves
air quality in areas with the worst air pollution, and reduces
emissions to help the state achieve its climate change goals.
While the program, rightly focuses on areas that do not meet
federal air quality standards, it makes good sense to institute
the program in areas that are nearing non-attainment to keep
them from falling into non-attainment status. Not only does
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this program create opportunities to address climate change and
improve air quality, it also help to improve the quality of life
for many low-income consumers in disadvantaged communities.
Expanding the program to other areas of the state will only help
to increase the program's benefits.
Related legislation: AB 1691 (Gibson), would require ARB, in
consultation with BAR, to adopt, an EFMP goal, later than July
1, 2017, of annually replacing 10,000 vehicles from
disadvantaged communities over a 5-year period. AB 1691 is
currently awaiting a hearing in this committee.
AB 1710 (Calderon), requires, on or before January 1, 2019, that
ARB to develop and implement a comprehensive program to promote
advanced-technology light-duty vehicle deployment in the state
to drastically increase the use of those vehicles and to meet
specified goals established by the Governor and the Legislature.
AB 1710 is scheduled to be heard in this committee on April 11,
2016.
Previous legislation: AB 1275 (de León), Chapter 530, Statutes
of 2014, created the Charge Ahead California Initiative with the
goal of placing at least 1,000,000 ZEV and NZEVs into service by
January 1, 2023, and increasing access to these vehicles by
disadvantaged, low-income, and moderate-income communities and
consumers.
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SB 459 (Pavley), Chapter 437, Statutes of 2013, required ARB to
update the EFMP guidelines by June 30, 2015, in accordance with
specified goals and considerations. SB 459 included provisions
that restricted program eligibility and adjusted vehicle
retirement and replacement compensation amounts to ensure the
program achieved greater emission reductions while also serving
low-income drivers. Additionally, SB 459 permitted the vehicle
retirement component of CAP to accept vehicles that have lapsed
in registration.
AB 118 (Núñez), Chapter 750, Statutes of 2007, created the
California Alternative and Renewable Fuel, Vehicle Technology,
Clean Air, and Carbon Reduction Act of 2007 that required the
California Energy Commission to implement certain programs and
provide funding to develop and deploy technologies and
alternative and renewable fuels in the marketplace to help
attain the state's climate change policies.
AB 32 (Núñez), Chapter 488, Statutes of 2006, required ARB to
develop and implement regulations necessary to reduce emissions
to 1990 levels by the year 2020.
REGISTERED SUPPORT / OPPOSITION:
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Support
Valley "Clean Air Now" (Sponsor)
Coalition for Clean Air
Communities for a Better Environment
Environment California
The Greenlining Institute
Natural Resources Defense Council
Sacramento Metropolitan Air Quality Management District
Opposition
None on file
Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093
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