BILL NUMBER: SB 1247 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 12, 2004
INTRODUCED BY Senator Soto
FEBRUARY 12, 2004
An act to add and repeal Part 4.5 (commencing with Section
42950) of Division 26 of the Health and Safety Code, relating
to air pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 1247, as amended, Soto. Air pollution: reduction of
impacts from mobile sources Incentive-Based Emission
Reduction Program for Internal Combustion Engines .
Existing
(1) Existing law designates the State Air Resources Board as
the state agency charged with coordinating efforts to attain and
maintain ambient air quality standards. Existing law designates air
pollution control districts and air quality management districts as
having the primary responsibility for the control of air pollution
from all sources other than vehicular sources, and, subject to the
powers and duties of the State Air Resources Board
state board , requires that districts adopt and enforce
rules and regulations to achieve and maintain the state and federal
ambient air quality standards in all areas affected by emission
sources under their jurisdiction.
Existing law establishes the Carl Moyer Memorial Air Quality
Standards Attainment Program to provide grants to offset the
incremental cost of projects that reduce emissions of oxides of
nitrogen from heavy-duty onroad vehicles, offroad nonrecreation
equipment and vehicles, locomotives, diesel marine vessels,
stationary agricultural engines, and other high-emitting diesel
engines in the state. Existing regulations adopted by the state
board establish the Lower-Emission Schoolbus Program to reduce school
children's exposure to air pollution emitted by older schoolbuses
through a schoolbus replacement and infrastructure component and a
particulate matter retrofit component for diesel schoolbuses, and
establish various light-duty vehicle retirement programs to encourage
voluntary retirement of older, high-emitting vehicles.
This bill would make legislative findings and
declarations regarding the effects of emissions from gasoline and
diesel-powered motor vehicles and nonroad engines on public health
and the environment in the state. The bill would declare the intent
of the Legislature to consider specified principles and criteria when
establishing programs to reduce and mitigate the impacts of
emissions from gasoline and diesel-powered motor vehicles and nonroad
engines. establish the Incentive-Based Emission
Reduction Program for Internal Combustion Engines to reduce
unhealthful air emissions from internal combustion engines through
the application of financial incentives-based programs. The program
would be administered by the state board and the districts. The bill
would establish the Incentive-Based Emission Reduction Program for
Internal Combustion Engines Trust Fund in the State Treasury, and
would make moneys in the trust fund available, upon appropriation by
the Legislature, to carry out the purposes of the bill. The bill
would authorize moneys from the fund to be expended on incentive
programs including, but not limited to, the Carl Moyer Program, the
Lower-Emission School Bus Program, light duty vehicle programs,
lawnmower electrification programs, and projects to retrofit or
replace agricultural engines and pumps, to the extent that the state
board or the district determines that the program mitigates harm
caused by the fuel upon which the fee is paid.
The bill would require each district that elects to participate in
the program to establish funding priorities for pollution source
reduction projects after considering specified principles and
criteria, coordinate with any local, state, or federal agency, or
with any private organization, concerned with reducing emissions from
internal combustion engines that it determines appropriate, and
identify potential sources of shared funding responsibilities. The
bill would require that 50% of the moneys allocated to each district
be expended in a manner that directly addresses air pollution or
health impacts resulting from the refining and combustion of gasoline
and diesel fuel in communities with the most significant exposure to
air pollution.
This bill would impose a state-mandated local program by imposing
additional requirements on any district that elects to participate in
the program.
The bill would require the state board and the participating
districts, commencing March 1, 2007, and until March 1, 2023,
inclusive, to provide an annual report to the Legislature on the
program.
The bill would repeal these provisions on December 31, 2002.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program:
no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
SECTION 1. (a) The Legislature finds and declares all of the
following:
(1) Internal combustion engines are the single largest source of
air pollution threatening the public health and environment of all
Californians.
(2) Air pollution control districts and air quality management
districts are primarily responsible for reducing the local health
effects associated with air pollution in their respective air basins.
(3) A number of regulatory and financial incentive programs have
been established to reduce emissions from internal combustion engines
on a cost-effective basis. Emission reduction benefits of
regulatory programs to reduce emissions from internal combustion
engines affect future engines and are slow in being realized because
of the rate at which older, dirtier engines are retired or replaced.
Emission reduction benefits can be accelerated through financial
incentive programs that target the retrofit or replacement of older
engines. There is, however, no comprehensive program of financial
incentives for reducing emissions from internal combustion engines.
(4) It is, therefore, necessary that legislation be enacted to
establish a comprehensive financial incentives program to reduce
emissions from internal combustion engines based on a fair and
balanced mix of funding sources demonstrating a nexus with the
sources of emissions.
(5) The state's air quality program has achieved significant
reductions in pollutant emissions from stationary sources, to the
point that mobile source emissions are the overwhelming cause of air
quality problems in many areas of the state. Despite very
significant improvements in both fuel performance and emission
standards of new gasoline and diesel powered vehicles, mobile sources
have become the dominant source of ozone producing air emissions,
accounting for nearly 70 percent of the state inventory. Most of
these emissions are from older or poorly-maintained vehicles,
particularly gross polluters, and exhaust from other internal
combustion engines.
(b) It is the intent of the Legislature in enacting the act adding
this section that the state board and districts in the state place
greater focus on obtaining emissions reductions from mobile sources,
especially from gross polluting mobile sources, and that additional
emission reduction burdens not be placed on stationary sources due to
inadequate control of mobile source emissions.
SEC. 2. Part 4.5 (commencing with Section 42950) is added to
Division 26 of the Health and Safety Code, to read:
Part 4.5. Incentive-Based Emission Reduction Program for
Internal Combustion Engines
42950. (a) This part shall be known, and may be cited, as the
Incentive-Based Emission Reduction Program for Internal Combustion
Engines.
(b) The purpose of the program established by this part is to
reduce unhealthful air emissions from internal combustion engines
through the application of financial incentives-based programs,
relying to the greatest extent possible on existing programs with
proven cost-effective results. The program shall be administered by
the state board and the districts in accordance with this chapter.
The administration of the program shall be delegated to the districts
where the state board determines feasible. The state board and the
districts may request the assistance of other state agencies with
relevant expertise and authority to achieve the goals and purposes of
this article.
42951. For the purposes of this article, the following terms have
the following meanings:
(a) "Carl Moyer Program" means the Carl Moyer Memorial Air Quality
Standards Attainment Program established pursuant to Chapter 9
(commencing with Section 44275) of Part 5.
(b) "Diesel fuel" means a liquid that is commonly or commercially
known or sold as fuel that is suitable for use in a diesel-powered
engine. A liquid meets this requirement if, without further
processing or blending, the liquid has practical and commercial
fitness for use in a diesel-powered engine.
(c) "Fuel emulsification" means a fuel mixture approved by the
state board that includes, but is not limited to, water and certain
additives, with or without surfactants, to reduce emissions from
compression-ignition engines.
(d) "Fund" means the Incentive-Based Emission Reduction Program
for Internal Combustion Engines Trust Fund established pursuant to
Section 42953.
(e) "Gasoline" means a volatile mixture of hydrocarbons, generally
containing small amounts of additives, suitable for use as a fuel in
spark-ignition internal combustion engines.
(f) "Lawnmower electrification program" means a program
established by a district designed to replace high-emitting lawn and
garden equipment with zero-emission models.
(g) "Lower-Emission School Bus Program" means the program by that
name adopted by regulation by the state board on December 7, 2000,
and issued in April 2001, as that program may be amended from time to
time.
(h) "Light-duty vehicle retirement program" means a program to
identify and encourage voluntary retirement of older, high-emitting
vehicles and to assist in the repair and replacement of defective
emission control system parts that is established by the state board
pursuant to Article 10 (commencing with Section 44100) of Chapter 5
of Part 5.
42952. The state board and the districts shall consider, where
applicable, all of following principles and criteria in administering
and implementing programs authorized under this part to reduce and
mitigate the impacts of emissions from internal combustion engines:
(a) Any new mobile source program or any existing mobile source
program that considered for funding should demonstrate cost
effectiveness expressed in dollars expended per ton of emissions
removed through use of a consistent transparent methodology with
statewide applicability for on and off-road diesel engines, light and
medium-duty vehicles, or other internal combustion engines. All
projects shall meet a applicable specific cost-effectiveness criteria
and 80 percent of all expenditures shall be prioritized based on
cost-effectiveness within the cost-effectiveness criteria.
(b) Any new program shall demonstrate real emission reductions,
including, but not limited to, being both measurable and surplus,
through application of realistic program assumptions that reflect
current and expected near-term future conditions.
(c) Any new statewide program shall be overseen by the state
board, and be administered and implemented by local air districts as
the state board determines appropriate. The geographic allocation of
moneys among air districts should be made in an equitable manner,
taking into consideration the location and type of fuel that
generated the moneys. District programs shall include retrofits,
early retirements, replacements, or identification and repair of
gross polluting gasoline or diesel vehicles and engines.
(d) Any new program shall be measured by its impact on ozone and
PM compliance with state and federal standards, rather than by the
type of fuel used by the motor or engine.
(e) The implementation of any program shall provide environmental
justice in accordance with subdivision (a) of Section 43023.5 to
directly reduce ozone and PM concentrations in communities with the
most significant exposure to ozone and PM concentrations, including,
but not limited to, communities of minority or low income population.
(f) Any program affecting the general public shall have
convenience for the general public as an underlying principle.
(g) Any new program shall have explicit quantifiable objectives,
and shall be accompanied by independent and external periodic reviews
of program performance and achievement of targeted emissions
reductions at expected costs.
(h) Any new program shall consider issues of startup and
scalability, and the potential for the program to cause unintended
negative consequences.
(i) Any new program that addresses emissions in a manner similar
to those reductions addressed in existing programs in the same
jurisdiction shall incorporate program reforms considered necessary
to improve the operational equity of the current program and to meet
the other principles described in this section.
(j) Emission reductions from any funded and fully implemented
projects or programs pursuant to this article shall be included in
the state implementation plan, or any revision to that plan, that is
submitted to United States Environmental Protection Agency pursuant
to the federal Clean Air Act (42 U.S.C. 7401 et seq.).
42953. (a) The Incentive-Based Emission Reduction Program for
Internal Combustion Engines Trust Fund is hereby created in the State
Treasury. Moneys in the trust fund shall be available, upon
appropriation by the Legislature, to carry out the purposes of this
article. In addition to monies appropriated by the Legislature, the
fund may accept monies from other sources, including, but not limited
to, federal and private sector sources.
(b) Notwithstanding Sections 16475, 16475.1, and 16480.6 of the
Government Code, all of the interest earned on money in the trust
fund shall be deposited in the trust fund.
(c) Not more than 2.5 percent of the funds deposited in the fund
may be used by districts for the cost of administering this program.
(d) Moneys in the fund shall be encumbered prior to December 31,
2022. Grants may not be made by the state board or a district from
the fund after that date.
42954. Incentive programs eligible for funding from the fund
include, but are not limited to, the following, to the extent that
the state board or the district determines that the program mitigates
harm caused by the fuel upon which the fee is paid:
(a) The Carl Moyer Program, including, but not limited to, fuel
emulsification projects to the extent permissible under the program.
(b) The Lower-Emission School Bus Program.
(c) Light-duty vehicle retirement programs.
(d) Lawnmower electrification programs.
(e) Projects to retrofit or replace agricultural engines and
pumps.
42955. Each district that participates in a program described in
Section 42954 shall do all of the following:
(a) Establish funding priorities for pollution source reduction
projects after considering all of the principles and criteria
described in Section 42952.
(b) Coordinate with any local, state, or federal agency, or with
any private organization, concerned with reducing emissions from
internal combustion engines that it determines to be appropriate.
(c) Identify potential sources of shared funding responsibilities,
including, but not limited to, any of the following sources:
(1) State.
(2) Federal.
(3) Private.
42956. Each district shall expend fifty percent (50%) of the
moneys it receives from the fund in a manner that directly addresses
air pollution or health impacts resulting from the refining and
combustion of gasoline and diesel fuel in communities with the most
significant exposure to air pollution, consistent with subdivisions
(a) and (b) of Section 43023.5.
42957. (a) The responsibilities of the state board or the
participating district, as applicable, with respect to programs
implemented pursuant to this article shall include management of
program funds and program oversight.
(b) The state board shall have primary responsibility for any
federal reporting aspects of each program.
(c) The responsibilities of a district shall include, but are not
limited to, local administration of project funds, monitoring funded
projects, and reporting results to the state board. Any project
funds awarded to a successful applicant shall be disbursed by the
district.
(d) The state board and the districts shall ensure that emissions
reductions achieved through the program are, to the extent
permissible under state and federal law, credited by the United
States Environmental Protection Agency to the appropriate emission
reduction objectives in the State Implementation Plan.
42958. (a) The state board shall assist the districts with
developing procedures to monitor whether the emission reductions
projected in successful grant applications are achieved. Monitoring
procedures may include, but are not limited to, project audits, and
the requirement that each grant recipient provide information about
the project on an annual basis as part of the grant agreement between
the state board or districts and the grant recipient. The state
board and the district shall minimize, to the extent feasible, the
information that is required from grant recipients, and shall develop
a simple and convenient format for reporting the required
information.
(b) The monitoring procedures developed pursuant to subdivision
(a) shall allow emission reductions generated to be fully credited to
air quality plans.
(c) The state board shall monitor district programs to ensure that
participating districts conduct their programs consistent with the
principles and criteria described in Section 42952.
42959. Not later than March 1, 2007, and each March 1 thereafter
until March 1, 2023, inclusive, the state board, in cooperation with
participating districts, shall provide the Legislature with a program
report. The report shall include, but shall not be limited to, all
of the following:
(a) A detailed review of the moneys received, moneys granted,
moneys reserved for grants based on project approvals, and shared
funding responsibilities, and the sources of those moneys.
(b) An estimate of future demand for grant moneys.
(c) A description of the overall effectiveness of the program in
delivering the emission reductions required by air quality plans,
including, but not limited to, the rate of progress plans and
milestone and conformity tests, as well as attainment and maintenance
plans.
42960. If any provision of this part or the application thereof
to any person or circumstance is held invalid, it is the intent of
the Legislature that the invalidity not affect other provisions or
applications of the part that can be given effect without the invalid
provision or application, and to this end the provisions of this
part are severable.
42961. This part shall remain in effect only until December 31,
2022, and as of that date is repealed, unless a later enacted
statute, that is enacted before December 31, 2002, deletes or extends
that date.
SEC. 3. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
following:
(a) Emissions from gasoline and diesel-powered motor vehicles and
nonroad engines continue to represent the largest sources of air
pollution threatening the public health and environment of all
Californians, despite an aggressive array of regulatory and financial
incentive programs.
(b) Recent studies support a direct correlation between air
quality and respiratory health, particularly asthma. There are 2.5
million people in California with asthma, 500,000 of them children,
and the population of asthma victims is increasing. Asthma is the
most common chronic childhood disease, which affects more than one in
20 children, and is the leading cause of school absences and
hospital admissions for children in California.
(c) Toxic air contaminants emitted by gasoline and diesel-powered
motor vehicles and nonroad engines are also known to cause cancer in
humans. Studies have linked diesel particulate pollution to lung
cancer and at least one investigation found a possible link between
brain cancer and air pollution.
(d) To reduce emissions from gasoline and diesel-powered motor
vehicles and nonroad engines, and to protect public health, it is
necessary to establish a stable funding source dedicated specifically
to the purposes of air pollution cleanup and prevention, and the
treatment and education of sensitive populations suffering from
exposure to emissions from those sources.
(e) Air pollution control districts and air quality management
districts are primarily responsible for reducing the local health
effects associated with air pollution in their respective air basins.
Districts have experience in identifying and prioritizing
cost-effective programs aimed at reducing public health risks
associated with air pollution, and have demonstrated proficiency in
developing, negotiating, implementing, and monitoring public health
solutions that take into consideration the localized sources of air
pollution, the interests and unique vulnerability of sensitive
populations, the availability of emission-reduction technologies, and
the specialized resources of health professionals, health care
facilities, and health risk-reduction programs.
(f) A number of regulatory and financial incentive programs have
been established to combat the threats to public health and the
environment posed by emissions from gasoline and diesel-powered motor
vehicles and non-road engines. While regulatory authority is
sustainable, state and local regulatory authority over some types of
sources is restricted by federal law, and existing financial
incentive programs are limited by lack of a dedicated funding
mechanism.
(h) It is necessary that legislation establish a program to reduce
and mitigate the impacts of emissions from gasoline and
diesel-powered motor vehicles and nonroad engines.
SEC. 2. It is the intent of the Legislature to consider all of the
following principles and criteria when establishing programs to
reduce and mitigate the impacts of emissions from gasoline and
diesel-powered motor vehicles and nonroad engines:
(a) Stable funding sources and financial incentives dedicated to
the purposes of reducing and mitigating the impacts of emissions from
gasoline and diesel-powered motor vehicles and nonroad engines.
(b) Maximum feasible emission reductions at the earliest possible
date, through application of existing control technologies and by
providing incentives for advancement of control technologies.
(c) Cost-effective emission reductions that leverage third-party
financial assistance to the maximum extent feasible.
(d) Preventing any single source category from bearing an unfair
burden in working to achieve clean air in the state.
(e) Air pollution control districts and air quality management
districts, which are primarily responsible for reducing local health
effects associated with air pollution in their respective air basins,
should play a key role in determining priorities for reducing and
mitigating impacts of emissions from gasoline and diesel-powered
motor vehicles and nonroad engines, with input from all affected
parties.