BILL ANALYSIS Ó
AB 1965
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1965 (Cooper) - As Amended March 16, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill expands the Enhanced Fleet Modernization Program
Plus-Up (EFMP Plus-Up) in disadvantaged communities and in
additional areas with poor air quality to increase the
retirement and replacement of high-polluting vehicles.
Specifically, this bill:
1)Requires the Air Resources Board (ARB), in consultation with
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the Bureau of Automotive Repair (BAR), beginning in 2016-17
and annually thereafter, to set specific measurable goals for
the retirement and replacement of high polluting passenger
vehicles and light-duty and medium-duty trucks and to meet
these goals by updating EFMP Plus-Up guidelines no later than
July1, 2017.
2)Stipulates that the updated guidelines are to ensure: 1)
increased funding for low-income and disadvantaged
communities; and 2) program expansion to areas at risk of
being designated as federal extreme non-attainment areas and
to all districts containing disadvantaged communities.
3)Requires the ARB to collect and post specified information on
program outcomes on its website, by July 1, 2018 and at least
biennially thereafter.
4)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.
FISCAL EFFECT:
1)Funding for the EFMP base program and EFMP Plus-Up totals
$12.8 million in 2015-16, with which ARB estimates will
provide incentives for about 1,500 vehicles. For 2016-17,
proposed funding for both programs totals $37.4 million ($7.4
million AB 118 funds and $30 million Greenhouse Gas Reduction
Fund), and would provide incentives for about 4,500 vehicles.
The EFMP Plus-Up covers only two air districts, which
encompass about 55% of the state's population. Assuming the
program expansion required in this bill would increase the
eligible population by 50%, additional special-fund costs
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would be almost $19 million.
2)The ARB currently has five positions to administer the current
program, and estimates that under the bill, up to half of the
air districts would eligible to participate. Given the
requirements to oversee this expansion, the board would need
at least another five positions at an annual cost of $750,000.
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 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.
The Consumer Assistance Program (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
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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.
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 author argues 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.
3)Related Legislation:
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a) AB 1691 (Gibson), pending in this committee, requires
the ARB to update EFMP guidelines to prioritize replacing
the oldest, high-mileag vehicles.
b) AB 1710 (Calderon), also pending in this committee,
requires the ARB to implement a comprehensive program to
promote advanced-technology light-duty vehicle deployment
in the state.
c) AB 1851 (Gray), also pending in this committee,
establishes and expands incentive programs to increase the
use of clean-air vehicles.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081