BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Senator Wieckowski, Chair
                                 2015 - 2016  Regular 
           
          Bill No:            SB 523
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          |Author:    |McGuire                                              |
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          |Version:   |4/6/2015               |Hearing      | 4/29/15        |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Rebecca Newhouse                                     |
          |           |                                                     |
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          SUBJECT:  Schoolbus replacement

            ANALYSIS:
          
          Existing law:  
          
          1. Under the California Global Warming Solutions Act of 2006 (also  
             known as AB 32), requires the California Air Resources Board  
             (ARB) to determine the 1990 statewide greenhouse gas (GHG)  
             emissions level and approve a statewide GHG emissions limit  
             that is equivalent to that level, to be achieved by 2020, and  
             to adopt GHG emissions reductions measures by regulation.  ARB  
             is authorized to include the use of market-based mechanisms to  
             comply with these regulations. (Health and Safety Code §38500  
             et seq.) 

          2. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the  
             State Treasury, requires all moneys, except for fines and  
             penalties, collected pursuant to a market-based mechanism be  
             deposited in the fund. (Government Code §16428.8)

          3. Prohibits the state from approving allocations for a measure or  
             program using GGRF monies except after determining that the use  
             of those moneys furthers the regulatory purposes of AB 32, and  
             requires moneys from the GGRF be used to facilitate the  
             achievement of reductions of GHG emissions in California. (HSC  
             §39712)

          4. Under Proposition 1B, which was approved by the voters on  
             November 7, 2006, enacts the Highway Safety, Traffic Reduction,  







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             Air Quality, and Port Security Bond Act of 2006.  This bond act  
             authorizes $200 million for replacing and retrofitting  
             schoolbuses, specifically through ARB's Lower-Emission  
             Schoolbus Program to fund replacement schoolbuses and retrofit  
             devices to reduce air pollution to reduce children's exposure  
             to diesel exhaust.

          5. Authorizes local air district boards where federal air  
             standards are not consistently met (i.e., "nonattainment  
             areas") to adopt a $6 surcharge on vehicle registration,  
             subject to certain requirements, to be used to reduce air  
             pollution from motor vehicles, and requires a portion of that  
             surcharge be used for the  implementation of emission reduction  
             programs from vehicular sources or off-road engines, including  
             for projects eligible under the Carl Moyer Program, the  
             purchase of new, or retrofit of emissions control equipment for  
             existing, schoolbuses, the replacement of specified natural gas  
             fuel tanks on schoolbuses, and the enhancement of deteriorating  
             natural gas fueling dispensers of fueling infrastructure  
             operated by a school district, and other specified projects,  
             until January 1, 2024. (Health and Safety Code §§41081 & 44225)  


          6. Establishes the Carl Moyer Program, administered by ARB, to  
             fund the incremental cost of cleaner-than-required vehicles,  
             engines, and equipment and authorizes the funding of projects  
             reducing NOx, particulate matter (PM) and reactive organic  
             gasses emissions until January 1, 2024, after which date, only  
             the reduction of NOx emission reduction projects will be  
             eligible for funding (HSC §44275)

          This bill:  

          1. Creates the Schoolbus Replacement Program for Small and  
             Disadvantaged Communities Grant Program (Program), to be  
             administered by the Department of Education (CDE) in  
             conjunction with ARB, to fund the purchase of new schoolbuses  
             to replace existing schoolbuses.
              
          2. Specifies that the Program is funded through a continuous  
             appropriation of $5 million from the GGRF. 

          3. Specifies that eligible applicants include:









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             A.    School districts or county offices of education with an  
                average daily attendance of less than 2,501 students, with  
                more than 50% of the pupil population qualifying for free or  
                reduced price lunch programs, and;
                 
             B.    The Division of State Special Schools.

          4. Requires CDE to develop priority categories for funds based  
             only on vehicle age and accumulated mileage.

          5. Requires an eligible applicant to submit the most recent  
             inspection report of the Department of California Highway  
             Patrol, a repair estimate, or any other information requested  
             by the CDE, as evidence of the vehicle's condition.

          6. Requires the CDE to estimate the cost of a replacement  
             schoolbus of the same capacity as the schoolbus being replaced,  
             and program funds made available to an applicant are prohibited  
             from exceeding that amount.

          7. Specifies that an applicant may use other funds to purchase a  
             schoolbus that is more expensive than the model used by the  
             department to make its cost estimate.

          8. Requires that any schoolbuses purchased under this program meet  
             federal motor vehicle safety standards, as specified.

          9. Specifies that schoolbuses that have been "disposed of" are not  
             eligible for replacement, and specifies that for applicants  
             with fewer than three schoolbuses, temporary schoolbuses, as  
             defined, shall be considered "disposed of."

          10.Requires the Department of General Services to make schoolbus  
             purchases with funds made available under the program, to the  
             extent practicable, and requires that the title of the vehicle  
             be in the name of the applicant.

          11.Requires that funds for the program be available for  
             schoolbuses used in special education in proportion to the  
             number of special education schoolbuses as compared to the  
             total number in the state.

          12.Authorizes CDE to adopt regulations to implement the program.









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            Background
          
          1. Health Effects of Diesel Exhaust.

             In 1998, the California Environmental Protection Agency's  
             Office of Environmental Health Hazard Assessment (OEHHA)  
             completed a comprehensive health assessment of diesel exhaust.   
             This assessment formed the basis for a decision by ARB to  
             formally identify particles in diesel exhaust as a toxic air  
             contaminant that may pose a threat to human health. 

          
             Diesel exhaust is produced when an engine burns diesel fuel. It  
             is a complex mixture of thousands of gases and fine particles  
             (commonly known as soot) that contains more than 40 toxic air  
             contaminants. These include many known or suspected  
             cancer-causing substances, such as benzene, arsenic and  
             formaldehyde. It also contains other harmful pollutants,  
             including nitrogen oxides (a component of smog).

             Diesel engines are a major source of fine-particle pollution  
             (also called particulate matter or PM).  The elderly and people  
             with emphysema, asthma, and chronic heart and lung disease are  
             especially sensitive to PM. Numerous studies have linked  
             elevated particle levels in the air to increased hospital  
             admissions, emergency room visits, asthma attacks and premature  
             deaths among those suffering from respiratory problems.   
             Because children's lungs and respiratory systems are still  
             developing, they are also more susceptible than healthy adults  
             to fine particles.  Exposure to PM is associated with increased  
             frequency of childhood illnesses and can also reduce lung  
             function in children. 

             Diesel exhaust and many individual substances contained in it  
             have the potential to contribute to mutations in cells that can  
             lead to cancer.  In fact, long-term exposure to diesel exhaust  
             particles poses the highest cancer risk of any toxic air  
             contaminant evaluated by OEHHA. 

             Due to the harmful effects of diesel PM and children's exposure  
             to this exhaust from their trips to and from school in older  
             schoolbuses, much concern has been raised regarding this public  
             health issue.  State and federal funds have been directed to  
             provide incentives to replace and retrofit diesel buses across  








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             the state.  Additionally, heavy duty diesel trucks and buses  
             are required to reduce their diesel emissions pursuant to the  
             state's truck and bus rule, described below. 

          2. Truck and Bus Rule.

             The ARB adopted the On-Road Heavy-Duty Diesel Vehicles  
             Regulation (also known as the Truck and Bus Rule) in 2008.  The  
             regulation requires diesel trucks and buses that operate in  
             California to be upgraded to reduce emissions.  Newer heavier  
             trucks and buses must meet PM filter requirements beginning  
             January 1, 2012.  Lighter and older heavier trucks must be  
             replaced starting January 1, 2015.  By January 1, 2023, nearly  
             all trucks and buses will need to have 2010 model year engines  
             or equivalent.
               
             The regulation applies to nearly all privately and federally  
             owned diesel fueled trucks and buses and to privately and  
             publicly owned schoolbuses with a gross vehicle weight rating  
             greater than 14,000 pounds.  

             The regulation provides a variety of flexibility options  
             tailored to fleets operating low-use vehicles, fleets operating  
             in selected vocations like agricultural and construction, and  
             small fleets of three or fewer trucks.   

             Amendments to the regulation adopted in April 2014 included  
             more time to comply for rural areas with cleaner air, second  
             and third vehicles in small fleets, as well as owners that  
             cannot afford to comply, and adjust compliance timelines for  
             low-use or vocations trucks, and recognized early actions  
             already taken by fleets to comply. 

          3. Incentive Funding.

             A.    Lower-Emission Schoolbus Program.

                According to ARB's website, the primary goal of the  
                Lower-Emission Schoolbus Program (LESBP) is to reduce school  
                children's exposure to both cancer-causing and smog-forming  
                pollution.

                The LESBP provides financial incentives to replace  
                high-emitting pre-1987 model year schoolbuses with  








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                lower-emitting new buses, and to equip in-use diesel  
                schoolbuses with ARB-verified diesel retrofit devices to  
                reduce toxic PM emissions.  The LESBP provides up to $20,000  
                to install diesel particulate filters and up to $140,000 per  
                bus in financial opportunities to replace an existing  
                pre-1987 schoolbus.  The primary focus has been on replacing  
                buses manufactured prior to 1977.  These buses do not meet  
                federal motor vehicle safety standards and were not subject  
                to oxides of nitrogen and PM emission control.

                Prior to bond funding, the Program provided over $100  
                million in State funding for new alternative fuel and diesel  
                schoolbuses for California's public school districts, and  
                retrofit devices for existing in-use diesel buses.  In its  
                first seven years, the Lower-Emission Schoolbus Program  
                replaced about 600 pre-1987 model year public schoolbuses  
                with new, lower-emitting models and equipped about 3,800  
                in-use buses with ARB-verified diesel retrofit devices. 

                Proposition 1B, which was approved by the voters on November  
                7, 2006, enacts the Highway Safety, Traffic Reduction, Air  
                Quality, and Port Security Bond Act of 2006.  This bond act  
                authorizes $200 million for replacing and retrofitting  
                schoolbuses, specifically through the LESBP to fund  
                replacement schoolbuses and retrofit devices to reduce air  
                pollution to reduce children's exposure to diesel exhaust.

                Although primarily funded through bond funds, air districts  
                may use local funds, such as motor vehicle registration fee  
                surcharge money, to replace or retrofit schoolbuses. 

                The LESBP is generally administered through the local air  
                district, however, for projects funded under the LESBP by  
                bond funds, the San Joaquin Valley Air Pollution Control  
                District (SJVAPCD) has partnered with ARB in acting as the  
                implementing agency for the 18 air districts.

                The replacement portion component of the program prioritizes  
                the oldest schoolbuses for replacement.  However, incentives  
                provided for the retrofit component are awarded for 1987  
                buses and newer, through a non-competitive, first-come,  
                first-served basis, until funds are depleted.  ARB notes in  
                the LESBP, that each "in-use diesel bus that is retrofitted  
                with a Level 3 diesel particulate filter emits 85 percent  








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                less toxic PM.  This strategy provides the most  
                cost-effective air quality benefit, since a retrofit costs  
                about 10 percent of the purchase price of a new bus." 

                The Proposition 1B monies funded 1,018 schoolbus  
                replacements and 3,479 retrofits.  ARB has received all  
                installments of bond funds for the Program, which brings the  
                Program to 100 percent of its projected funding of  
                approximately $196 million.  The program is now funded  
                through a small amount of federal funds, administered by the  
                SJVAPCD on behalf of ARB. 

             B.    AB 923 Air District Vehicle Registration Surcharge.

                AB 923 (Firebaugh) Chapter 707, Statutes of 2003,  
                authorizes, until January 1, 2024, local air districts with  
                jurisdiction over areas not in attainment with federal air  
                quality standards to increase motor vehicle registration  
                fees by $2 to implement the Carl Moyer Program Projects, the  
                new purchase, retrofit, repower or add-on equipment for  
                previously unregulated agricultural sources, new purchases  
                pursuant to the Lower-Emission Schoolbus program, and  
                light-duty scrap or repair programs adopted by the state  
                board.

             C.    Carl Moyer Program. 

                AB 1571 (Villaraigosa), Chapter 923, Statutes of 1999,  
                established the Carl Moyer Memorial Air Quality Standards  
                Attainment Program through which ARB provides grants to  
                offset the incremental costs of purchasing or retrofitting  
                engines in order to reduce specified air emissions.  The  
                Carl Moyer program originally received General Fund  
                appropriations.  

                AB 923 (Firebaugh, Pavley), Chapter 707, Statutes of 2004,  
                expanded the Carl Moyer Program to cover additional  
                pollutants and engines and imposed a 75-cent per tire fee on  
                tire sales to fund the Carl Moyer Program.  Its provisions  
                will sunset on January 1, 2024. 

                According to the Carl Moyer Program guidelines, public  
                schoolbuses are eligible for Carl Moyer Program funding if  
                they meet the program criteria; however, their relatively  








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                low annual miles usually allow only for minimal grant  
                amounts.

             D.    Hybrid Vehicle Incentive Program.

                AB 118 (Nunez), Chapter 750, Statutes of 2007, creates the  
                Air Quality Improvement Program (AQIP), which the ARB  
                administers in consultation with local air districts to  
                provide competitive grants to fund projects to reduce  
                criteria air pollutants, improve air quality, and support  
                research to improve the air quality impacts of alternative  
                fuels and vehicles, vessels, and equipment technologies. 

                The ARB established the Hybrid and Zero-Emission Truck and  
                Bus Voucher Incentive Project (HVIP), pursuant to their  
                authority under AQIP.

                HVIP provides vouchers to California fleet owners to help  
                purchase hybrid and zero-emission trucks and buses.  

                As the LESBP funding does not cover the cost of a typical  
                hybrid schoolbus, HVIP permits combining funds from the  
                LESBP and HVIP to finance up to the full cost of a new  
                hybrid schoolbus.

                SB 1204 (Lara), Chapter 524, Statutes of 2014, requires ARB  
                to develop a new program, the California Clean Truck, Bus,  
                and Off-Road Vehicle and Equipment Technology Program.  This  
                program, known as Zero-Emission Truck and Bus Pilot  
                Projects, will fund development, demonstration,  
                pre-commercial pilot, and early commercial deployment of  
                zero- and near-zero-emission truck, bus, and off-road  
                vehicle technologies, with prioritization of projects  
                located in disadvantaged communities.  ARB is currently  
                holding public workgroup meetings to solicit stakeholder  
                input.  

                In the 2014-15 Fiscal Year, the Legislature appropriated  
                $200 million to ARB from the GGRF to implement a low-carbon  
                transportation program.  ARB is combining that funding with  
                previous funding for AQIP programs from vehicle registration  
                fees (usually about $10 million) to augment funding for  
                programs under AQIP.  ARB, in their annual investment plan  
                for their AQIP and low-carbon incentive programs state that  








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                of that $5-10 million will be allocated for the HVIP  
                program, and $20-25 million for the program established  
                pursuant to SB 1204. 




             E.    CEC Grants for Natural Gas Fueling Infrastructure.

                AB 118 (Nunez), Chapter 750, Statutes of 2007, creates the  
                Alternative and Renewable Fuel and Vehicle Technology  
                Program, which the California Energy Commission (CEC)  
                administers to provide grants, revolving loans, loan  
                guarantees, loans, or other appropriate funding measures to  
                public agencies, vehicle consortia, businesses, consumers,  
                recreational boaters, and academic institutions to develop  
                and deploy innovative technologies that transform California  
                fuel and vehicle types to help attain the state's climate  
                change policies. 

                According to the ARFVTP Investment Plan for 2014-15, "the  
                investment plan update reserves $1.5 million for natural gas  
                fueling stations.  While many private fleets are able to  
                incorporate natural gas fueling infrastructure into the  
                overall costs of their transition to natural gas, some  
                entities cannot.  This $1.5 million allocation of funding is  
                intended primarily for these entities, such as school  
                districts and public transit districts."

          4. Legislative Analyst Office Report on School Transportation  
             Programs.

             The California Department of Education's  Home-To-School  
             Transportation (HTST) Program receives about $500 million  
             annually, to support pupil transportation services. 

             In addition to the HTST program, the state historically funded  
             a schoolbus purchasing program for districts with fewer than  
             2,500 students.  The program focused on replacing buses that  
             did not meet federal standards.  Most funding was awarded based  
             on the age, mileage, and condition of the buses to be replaced.  
              In 2012-13, $4.9 million was appropriated for the program, and  
             32 out of 170 applicants received grants of up to $155,000 to  
             replace a single schoolbus. 








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             Beginning in 2013-14, the state discontinued the bus  
             replacement program.  Any district receiving bus replacement  
             funds in 2012-13, however, had its regular HTST allocation  
             permanently increased by that amount.  That is, under current  
             law, any district that received a one-time grant for bus  
             replacement in 2012-13 will continue receiving this same amount  
             but may use the freed-up funds for any transportation purpose.

             A 2014 report from the Legislative Analyst's Office reviewing  
             school transportation in California noted that the current  
             formula for allocating HTST funding is widely recognized as  
             outdated and irrational, and recommended the Legislature  
             replace it with one of several alternatives offered, including  
             creating a broad-based program that reimburses a share of all  
             transportation costs. 

          5. Use of Cap and Trade Auction Revenue. 

             ARB has conducted ten cap-and-trade auctions, generating almost  
             $1.6 billion in proceeds to the state. 

             Several bills in 2012, and one in 2014, provide legislative  
             direction for the expenditure of auction proceeds including SB  
             535 (De León), Chapter 830, Statutes of 2012, AB 1532 (J.  
             Pérez), Chapter 807, Statutes of 2012, SB 1018 (Budget  
             Committee), Chapter 39, Statutes 2012, and SB 862 (Budget  
             Committee), Chapter  36, Statutes of 2014.

             SB 535 (De León), Chapter 830, Statutes of 2012, requires that  
             25% of auction revenue be used to benefit disadvantaged  
             communities and requires that 10% of auction revenue be  
             invested in disadvantaged communities. 

             AB 1532 (J. Pérez), Chapter 807, Statutes of 2012, directs the  
             Department of Finance to develop and periodically update a  
             three-year investment plan that identifies feasible and  
             cost-effective GHG emission reduction investments to be funded  
             with cap-and-trade auction revenues.  AB 1532 specifies that  
             reduction of greenhouse gas emissions through strategic  
             planning and development of sustainable infrastructure  
             projects, are eligible investments of GGRF. 
                                                          
             SB 1018 (Budget Committee), Chapter 39, Statutes of 2012,  








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             created the GGRF, into which all auction revenue is to be  
             deposited.  The legislation requires that before departments  
             can spend monies from the GGRF, they must prepare a record  
             specifying: (1) how the expenditures will be used, (2) how the  
             expenditures will further the purposes of AB 32 (Núñez, Pavley)  
             Chapter 488, Statutes of 2006, (3) how the expenditures will  
             achieve GHG emission reductions, (4) how the department  
             considered other non-GHG-related objectives, and (5) how the  
             department will document the results of the expenditures. 

             SB 862 (Budget Committee), Chapter 36, Statutes of 2014,  
             requires the ARB to develop guidelines on maximizing benefits  
             for disadvantaged communities by agencies administering GGRF  
             funds, and guidance for administering agencies on GHG emission  
             reduction reporting and quantification methods. 

             Legal consideration of cap-and-trade auction revenues: The  
             2012-13 budget analysis of cap-and-trade auction revenue by the  
             Legislative Analyst's Office noted that, based on an opinion  
             from the Office of Legislative Counsel, the auction revenues  
             should be considered mitigation fee revenues, and their use  
             requires that a clear nexus exist between an activity for which  
             a mitigation fee is used and the adverse effects related to the  
             activity on which that fee is levied.  Therefore, in order for  
             their use to be valid as mitigation fees, revenues from the  
             cap-and-trade auction must be used to mitigate GHG emissions or  
             the harms caused by GHG emissions. 

             In 2012, the California Chamber of Commerce filed a lawsuit  
             against the ARB claiming that cap-and-trade auction revenues  
             constitute illegal tax revenue.  In November 2013, the superior  
             court ruling declined to hold the auction a tax, concluding  
             that it is more akin to a regulatory fee. 

             AB 32 auction revenue investment plan: The first three-year  
             investment plan for cap-and-trade auction proceeds, submitted  
             by Department of Finance, in consultation with ARB and other  
             state agencies in May of 2013, identified sustainable  
             communities and clean transportation as one of the key sectors  
             that provide the best opportunities for achieving the  
             legislative goals and supporting the purposes of AB 32.  The  
             plan recommended the aforementioned sector receive the largest  
             allocation of funds from the GGRF, but did not specify a  
             monetary amount. 








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             Budget allocations: The 2014-15 budget allocates $832 million  
             in GGRF revenues to a variety of transportation, energy, and  
             resources programs aimed at reducing GHG emissions.  Various  
             agencies are in the process of implementing this funding.  The  
             budget agreement specifies how the state will allocate most  
             cap-and-trade auction revenues in 2015-16 and beyond.  For all  
             future revenues, the legislation appropriates 25% for the  
             state's high-speed rail project, 20% for affordable housing and  
             sustainable communities grants, 10% to intercity capital rail  
             projects, and 5% for low-carbon transit operations.  The  
             remaining 40% is available for annual appropriation by the  
             Legislature.
            
          Comments
          
          1. Purpose of Bill.  

             The author states that according to the U.S. Environmental  
             Protection Agency (US EPA), more than half of schoolbuses have  
             been in service for over a decade and schoolbuses built to meet  
             US EPA's 2010 standards emit 95% less pollution than pre-2007  
             buses and are 60 times cleaner than pre-1991 buses.  The author  
             notes that older, more polluting schoolbuses pose significant  
             health risks to children who typically ride these buses for  
             one-half to two hours per day and that emissions from older  
             buses also have a negative impact on the communities in which  
             they travel.  The author further states that unlike many  
             states, California does not require school districts to take  
             buses off the road after a set number of years; as a result,  
             the state has some of the oldest buses in the country.  The  
             author notes that replacing schoolbuses saves $3,000 per year  
             in fuel costs alone and that this bill makes a modest  
             investment that will have a significant impact on the state's  
             air quality.

          2. Does This Bill Advance the Goals of AB 32?

             Any projects funded through GGRF monies are required to  
             facilitate the achievement of GHG emission reductions and be  
             used to advance the regulatory purposes of AB 32.

             SB 523 requires $5 million from the GGRF be used to fund the  
             purchase of new schoolbuses.  The bill does not specify what  








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             type of technology the new schoolbus must use, but does  
             prohibit the new bus from exceeding the cost estimated for a  
             replacement schoolbus of the same "capacity" as the schoolbus  
             being replaced.  It is unclear if the requirement for the bus  
             to be of the same "capacity," limits the type of technology of  
             the new schoolbus.  However, the bill does specify that an  
             applicant may use other funds to augment their GGRF funds  
             through the program to purchase a more expensive model  
             schoolbus.  In this way, applicants may be able to purchase  
             schoolbuses with significantly reduced GHG emissions, such as  
             hybrids. 

             However, as the author states that the technology for hybrid or  
             electric buses is cost-prohibitive for many school districts  
             and also does not support the long commutes required in most  
             small, disadvantaged districts, it seems the intent of the bill  
             is to fund new diesel, and natural gas-fueled vehicles that do  
             not have the same range constraints. 

             Although the state and federal government have implemented fuel  
             efficiency and greenhouse gas emission standards for passenger  
             vehicles, there have been no such requirements for heavy duty  
             vehicles.  How much more fuel efficient on average are new  
             diesel schoolbuses as compared to older models?  The author's  
             office points to information from West County Transportation  
             Agency, which has purchased new schoolbuses, and apparently  
             seen an improvement in gas mileage from pre- 1994 bus at 7  
             miles/gallon, to 13 miles/gallon for a new bus. 

             While new schoolbuses represent a huge gain in terms of  
             improved air quality and diesel PM reductions, it is unclear  
             whether purchasing new diesel schoolbuses would provide  
             significant GHG emissions reductions over older models being  
             replaced.  Therefore, it is unclear whether this bill meets the  
             requirements in order to be eligible for funding from the GGRF.




          3. Some Funding Available. 

             As noted, the Proposition 1 funds, which were the primary funds  
             available for the replacement and retrofit of schoolbuses, are  
             depleted.  However, the LESBP is still funded through some  








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             level of federal funding along with ARB funds.  The average per  
             year for the last three fiscal years was about $560,000.  
             Although this funding may not go a long way towards the  
             purchase of new buses, it could retrofit almost 30 buses per  
             year, reducing diesel PM anywhere from 85 to 90% compared to  
             older diesel buses. Additionally, limited Carl Moyer Program  
             funds and AB 923 funds could also be extended through use of  
             the funds for retrofits, instead of purchases of new vehicles. 

          4. Reforming the HTST Program.

             As noted in the background, the LAO in 2014 recommended that  
             the current approach to funding school transportation be  
             reformed and offered several recommendations.  Reforming the  
             HTST program may be a more sustainable and effective mechanism  
             to address the needs of school districts throughout the state  
             in retrofitting and replacing their bus fleet. 
            
          
          SOURCE:                    Author  

           SUPPORT:               
          American Academy of Pediatrics, California  
          California Association of School Transportation Officials
          California School Employees Association
          Lakeport Unified School District
          Rural County Representatives of California
          San Diego County Office of Education
          School Transportation Coalition
          Small School Districts' Association
           
           OPPOSITION:    
          California Chamber of Commerce  

           DOUBLE REFERRAL:

          This measure was heard in the Senate Transportation and Housing  
          Committee on April 21, 2015, and passed out of committee with a  
          vote of 10-0.
                                           
                                       -- END --
          










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