BILL ANALYSIS Ó
AB 1965
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ASSEMBLY THIRD READING
AB
1965 (Cooper)
As Amended May 31, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |12-3 |Frazier, Bloom, |Linder, Baker, |
| | |Brown, Chu, Daly, |Melendez |
| | |Dodd, Eduardo Garcia, | |
| | |Gomez, Mathis, | |
| | |Medina, Nazarian, | |
| | |O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |15-3 |Gonzalez, Bloom, |Bigelow, Chang, |
| | |Bonilla, Bonta, |Obernolte |
| | |Calderon, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Holden, Quirk, | |
| | |Santiago, Weber, Wood | |
AB 1965
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| | | | |
| | | | |
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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 2017-18 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.
4)Requires ARB, in consultation with BAR, to meet established
goals by updating program guidelines no later than July1,
2018.
5)Requires that the updated guidelines ensure that:
a) Specific steps are taken such that the vehicle
replacement portion of the program is available to all
districts that have more than one million residents;
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b) Funding for outreach in low-income and disadvantaged
communities is evaluated and, if necessary, enhanced to
obtain established goals; and,
c) There are, where applicable, 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
program expenditures by region; and,
c) An analysis broken down by district of the program's
performance to identify areas to be emphasized when setting
future goals or updating program guidelines.
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.
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9)Makes related, clarifying amendments.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
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 ((Núñez), Chapter 750, Statutes of 2007) 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 would be almost $19
million.
2)The ARB currently has five positions to administer the current
program. Adding three air districts to the program would
require at least two additional positions at an annual cost of
$300,000.
COMMENTS: To help improve air quality and meet the state's
greenhouse gas (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
disadvantaged communities and lower-income residents who tend to
own and operate some of the oldest, high-polluting cars on our
roads. Specifically, 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,
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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. 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
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this successful program. The author contends that expanding
these programs will help other areas of the state improve their
air quality and reduce GHG emissions.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by:
Victoria Alvarez / TRANS. / (916) 319-2093 FN:
0003244