BILL NUMBER: SB 1247 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 27, 2004
AMENDED IN SENATE APRIL 16, 2004
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: Incentive-Based
Emission Reduction Program for Internal Combustion Engines.
(1) Existing
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 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 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
program . 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.
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 requirements , 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.
The bill would require the state board and the participating
districts, commencing March 1, 2007, and until March 1, 2023
2022 , inclusive, to provide an annual report to
the Legislature on the program.
The bill would repeal these provisions on December 31,
2002 2022 .
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. (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.
those mobile sources achieve their share of emission
reductions in order to improve air quality and achieve and maintain
state and federal air standards.
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 part.
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 part.
42951. For the purposes of this part, 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)
42952. Any new program undertaken by the state board or a
district pursuant to this part is subject to all of the following
requirements:
(a) The program shall reduce and mitigate emissions, and the
impacts of those emissions, from internal combustion engines.
(b) Any new mobile source program or any existing mobile
source program that is considered for funding should
shall 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 ombustion engines , as determined by the state
board pursuant to Section 42958 . All projects shall meet
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
(c) Any new program shall demonstrate actual 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.
District programs shall include retrofits, early retirements,
replacements, or identification and repair of gross polluting
gasoline or diesel vehicles and engines.
(d) .
(d) Any new program shall be adopted by regulation by the state
board pursuant to Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code, shall be
consistent with the authority granted the state board consistent with
this division, and shall be implemented by districts pursuant to the
regulations adopted by the state board.
(e) 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)
(f) 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
(g) In addition to achieving the air quality objectives pursuant
to this part, any program affecting the general public shall
have convenience for the general public as an underlying principle.
(g)
(h) 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)
(i) Any new program shall consider issues of startup and
scalability, and the potential for the program to cause unintended
negative consequences.
(i)
(j) 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)
(k) Emission reductions from any funded and fully
implemented projects or programs pursuant to this part shall be
included in the state implementation plan, or any revision to that
plan, that is submitted to the United States Environmental
Protection Agency pursuant to the federal Clean Air Act (42 U.S.C.
Sec. 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
part . In addition to monies
moneys appropriated by the Legislature, the fund may accept
monies moneys 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
moneys 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:
(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 requirements 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%)
50 percent 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 part
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 requirements
described in Section 42952.
42959. Not later than March 1, 2007, and each March 1 thereafter
until March 1, 2023 2022 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
2022 , deletes or extends that date.