California Legislature—2015–16 Regular Session

Assembly Bill No. 2145

Introduced by Assembly Member Linder

February 17, 2016

An act to amend Sections 44125 and 44258.4 of the Health and Safety Code, relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

AB 2145, as introduced, Linder. Vehicle replacement: rebates.

Existing law requires the State Air Resources Board, in consultation with the Bureau of Automotive Repair, to adopt a program, known as the enhanced fleet modernization program, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles.

Existing law, for the purposes of calculating the vehicle license fee, requires the Department of Motor Vehicles to determine the market value of the vehicle on the basis of the cost price to the purchaser, not including California sales or use tax or any local sales, transactions, use, or other local tax, as specified.

This bill, for the purpose of calculating the vehicle license fee, would authorize the amount of compensation provided to a low-income motor vehicle owner under the enhanced fleet modernization program to be deducted from the motor vehicle’s price, as specified. The bill would require the state board to develop a standardized certificate for issuance to recipients of compensation that states the amount of compensation received, and would require the Department of Motor Vehicles to adjust the motor vehicle’s price accordingly, upon submission of that certificate to the department by the vehicle owner.

This bill would also, for the purpose of calculating the vehicle license fee, authorize the amount of a vehicle replacement rebate provided to a low- or moderate-income purchaser under the Charge Ahead California Initiative to be deducted from the motor vehicle’s price, as specified. The bill would require the state board to develop a standardized certificate for issuance to low- or moderate-income rebate recipients that states the amount of the rebate received, and would require the Department of Motor Vehicles to adjust the motor vehicle’s price accordingly, upon submission of that certificate to the department by the vehicle owner.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 44125 of the Health and Safety Code is
amended to read:

44125.  

(a) No later than July 1, 2009, the state board, in
consultation with the bureau, shall adopt a program to commence
on January 1, 2010, that allows for the voluntary retirement of
passenger vehicles and light-duty and medium-duty trucks that are
high polluters. The program shall be administered by the bureau
pursuant to guidelines adopted by the state board.

(b) No later than June 30, 2015, the state board, in consultation
with the bureau, shall update the program established pursuant to
subdivision (a). The program shall continue to be administered by
the bureau pursuant to guidelines updated and adopted by the state
board.

(c) The guidelines shall ensure all of the following:

(1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the bureau.

(2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized begin delete under end delete begin insert by end insert law.

(3) The program is available for high polluting passenger
vehicles and light-duty and medium-duty trucks that have been
continuously registered in California for two years prior to
acceptance into the program or otherwise proven to have been
driven primarily in California for the last two years and have not
been registered in another state or country in the last two years.
The guidelines may require a vehicle to take, complete, or pass a
smog check inspection.

(4) The program is focused where the greatest air quality impact
can be identified.

(5) (A) Compensation for retired vehicles shall be at least one
thousand five hundred dollars ($1,500) for a low-income motor
vehicle owner, as defined in Section 44062.1, and begin delete no end delete begin insert not end insert more
than one thousand dollars ($1,000) for all other motor vehicle
owners.

(B) Replacement or a mobility option may be an option for all
motor vehicle owners and may be in addition to compensation for
vehicles retired pursuant to subparagraph (A). For low-income
motor vehicle owners, as defined in Section 44062.1, compensation
toward a replacement vehicle or mobility option shall be no less
than two thousand five hundred dollars ($2,500). Compensation
toward a replacement vehicle for all other motor vehicle owners
shall not exceed compensation for low-income motor vehicle
owners.

(C) Compensation for either retired or replacement vehicles or
a mobility option for low-income motor vehicle owners may be
increased as necessary to maximize the air quality benefits of the
program while also ensuring participation by low-income motor
vehicle owners, as defined in Section 44062.1. Increases in
compensation amounts may be based on factors, including, but
not limited to, the age of the retired or replaced vehicle, the
emissions benefits of the retired or replaced vehicle, the emissions
impact of any replacement vehicle, participation by low-income
motor vehicle owners, as defined in Section 44062.1, and the
location of the vehicle in an area of the state with the poorest air
quality.

(6) Cost-effectiveness and impacts on disadvantaged and
low-income populations are considered. Program eligibility may
be limited on the basis of income to ensure the program adequately
serves persons of low or moderate income.

(7) Provisions that coordinate the vehicle retirement and
replacement and mobility option components of the program with
the vehicle retirement component of the bureau’s Consumer
Assistance Program, established pursuant to other provisions of
this chapter, to ensure vehicle owners participate in the appropriate
program to maximize emissions reductions.

(8) Streamlined administration to simplify participation while
protecting the accountability of moneys spent.

(9) Specific steps to ensure the vehicle replacement and mobility
option component of the program is available in areas designated
as federal extreme nonattainment.

(10) A requirement that vehicles eligible for retirement have
sufficient remaining life. Demonstration of sufficient remaining
life may include proof of current registration, passing a recent
smog check inspection, or passing another test similar to a smog
check inspection.

(d) When updating the guidelines to the program established
pursuant to subdivision (a), the state board shall study and consider
all the following elements:

(1) Methods of financial assistance other than vouchers.

(2) An option for automobile dealerships or other used car sellers
to accept cars for retirement, provided the cars are dismantled
consistent with the requirements of the program.

(3) An incentive structure with varied incentive amounts to
maximize program participation and cost-effective emissions
reductions.

(4) Increased emphasis on the replacement of high polluters
with cleaner vehicles or the increased use of public transit and car
sharing that results in the increased utilization of the vehicle
replacement and mobility option component of the program.

(5) Increased emphasis on the reduction of greenhouse gas
emissions through increased vehicle efficiency or transit and car
sharing use as a result of the program.

(6) Increased partnerships and outreach with community-based
organizations.

begin insert

(e) The amount of compensation provided to a low-income motor
vehicle owner pursuant to this section may be deducted from the
replacement vehicle’s price when calculating the cost price to the
purchaser pursuant to Section 10753 of the Revenue and Taxation
Code. The state board shall develop a standardized certificate for
issuance to recipients of compensation that states the amount of
compensation received. Upon submission of this certificate to the
Department of Motor Vehicles by the vehicle owner, the
Department of Motor Vehicles shall adjust the cost price to the
purchaser as authorized by this subdivision.

end insert begin delete

(e)

end delete

begin insert (f) end insert  For purposes of this section, the following terms have the
following meanings:

(1) “Car sharing” has the same definition as in Section 44258.

(2) “Mobility option” means a voucher for public transit or car
sharing.

SEC. 2.  

Section 44258.4 of the Health and Safety Code is
amended to read:

44258.4.  

(a) Any moneys utilized begin delete by this act end delete begin insert pursuant to this
chapter end insert from the Greenhouse Gas Reduction Fund, established
pursuant to Section 16428.8 of the Government Code, shall be
consistent with the appropriations processes and criteria established
by the Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act (Chapter 4.1 (commencing with
Section 39710) of Part 2).

(b) The Charge Ahead California Initiative is hereby established
and shall be administered by the state board. The goals of this
initiative are to place in service at least 1,000,000 zero-emission
and near-zero-emission vehicles by January 1, 2023, to establish
a self-sustaining California market for zero-emission and
near-zero-emission vehicles in which zero-emission and
near-zero-emission vehicles are a viable mainstream option for
individual vehicle purchasers, businesses, and public fleets, to
increase access for disadvantaged, low-income, and
moderate-income communities and consumers to zero-emission
and near-zero-emission vehicles, and to increase the placement of
those vehicles in those communities and with those consumers to
enhance the air quality, lower greenhouse gases, and promote
overall benefits for those communities and consumers.

(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts,
and the public, shall do all of the following:

(1) (A) Include, commencing with the Air Quality Improvement
Program funding plan for the 2016-17 fiscal year, a funding plan
that includes the immediate fiscal year and a forecast of estimated
funding needs for the subsequent two fiscal years commensurate
with meeting the goals of this chapter. Funding needs may be
described as a range that identifies the projected high and low
funding levels needed for the two-year forecast period to contribute
to technology advancement, market readiness, and consumer
acceptance of zero- and near-zero-emission vehicle technologies.
The funding plan shall include a market and technology assessment
for each funded zero- and near-zero-emission vehicle technology
to inform the appropriate funding level, incentive type, and
incentive amount. The forecast shall include an assessment of
when a self-sustaining market is expected and how existing
incentives may be modified to recognize expected changes in future
market conditions.

(B) Projects included in the forecast may include, but are not
limited to, any of the following:

(i) The Clean Vehicle Rebate Project, established pursuant to
Section 44274.

(ii) Light-duty zero-emission and near-zero-emission vehicle
deployment projects eligible under the Alternative and Renewable
Fuel and Vehicle Technology Program, established pursuant to
Article 2 (commencing with Section 44272) of Chapter 8.9.

(iii) Programs adopted pursuant to paragraph (4).

(2) Update the plan required pursuant to paragraph (1) at least
every three years through January 1, 2023.

(3) No later than June 30, 2015, adopt revisions to the criteria
and other requirements for the Clean Vehicle Rebate Project,
established pursuant to Section 44274, to ensure the following:

(A) Rebate levels can be phased down in increments based on
cumulative sales levels as determined by the state board.

(B)  begin insert (i) end insert begin insert   end insert Eligibility is limited based on income.

begin insert

(ii) For applicants classified as low or moderate income under
the criteria adopted pursuant to this paragraph, the amount of the
rebate may be deducted from the motor vehicle’s price when
calculating the cost price to the purchaser pursuant to Section
10753 of the Revenue and Taxation Code. The state board shall
develop a standardized certificate for issuance to low- or
moderate-income rebate recipients that states the amount of the
rebate received. Upon submission of this certificate to the
Department of Motor Vehicles by the vehicle owner, the
Department of Motor Vehicles shall adjust the cost price to the
purchaser as authorized by this clause.

end insert

(C) Consideration of the conversion to prequalification and
point-of-sale rebates or other methods to increase participation
rates.

(4) (A) Establish programs that further increase access to and
direct benefits for disadvantaged, low-income, and
moderate-income communities and consumers from electric
transportation, including, but not limited to, any of the following:

(i) Financing mechanisms, including, but not limited to, a loan
or loan-loss reserve credit enhancement program to increase
consumer access to zero-emission and near-zero-emission vehicle
financing and leasing options that can help lower expenditures on
transportation and prequalification or point-of-sale rebates or other
methods to increase participation rates among low- and
moderate-income consumers.

(ii) Car sharing programs that serve disadvantaged communities
and utilize zero-emission and near-zero-emission vehicles.

(iii) Deployment of charging infrastructure in multiunit
dwellings in disadvantaged communities to remove barriers to
zero-emission and near-zero-emission vehicle adoption by those
who do not live in detached homes. This clause does not preclude
the Public Utilities Commission from acting within the scope of
its jurisdiction.

(iv) Additional incentives for zero-emission, near-zero-emission,
or high-efficiency replacement vehicles or a mobility option
available to participants in the enhanced fleet modernization
program, established pursuant to Article 11 (commencing with
Section 44125) of Chapter 5.

(B) Programs implemented pursuant to this paragraph shall
provide adequate outreach to disadvantaged, low-income, and
moderate-income communities and consumers, including partnering
with community-based organizations.