BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 859
                                                                  Page  1

          Date of Hearing:   April 13, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                     AB 859 (Jones) - As Amended:  April 20, 2009
           
          SUMMARY  :  Requires vehicles 15 years or older, with the  
          exception of pre-1976 model cars, to undergo annual smog  
          inspections.  Specifically,  this bill  :  

          1)Requires vehicles 15 years or older, to undergo annual  
            inspections of their vehicle emission control equipment and  
            systems (smog check).  

          2)Excludes from the annual smog check inspections those pre-1976  
            model vehicles already exempted from the biennial inspections  
            as well as motor vehicles that are newer than 15 years.  

          3)Extends the current authorization of the State Bureau of  
            Automotive Repair (BAR) and the California Air Resources Board  
            (ARB), in consultation with the Inspection and Maintenance  
            Review Committee (IMRC), to determine what vehicles may be  
            excepted from the biennial smog checks without significantly  
            compromising the emission reduction objectives set forth in  
            the State Implementation Plan (SIP), to the  annual  testing  
            program.  

          4)Requires BAR, in cooperation with ARB, to perform biennial  
            analyses, instead of on a periodic basis, of the statistical  
            and emissions profiles.  

          5)Requires all revenues from the inspection fees to be deposited  
            into the High Polluter Repair or Removal Account (HPRRA).  

          6)Increases the maximum income eligibility level from 200% to  
            300% of the federal poverty level for low-income motor vehicle  
            owners who may request consumer assistance.  

          7)Eliminates the ability of non low-income vehicle owners, whose  
            cars were directed to test-only stations, to receive repair  
            assistance through the HPRRA.  

          8)Increases payment to the owner of a high polluter vehicle for  
            repair costs as determined by BAR from $450 to up to $750.  









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          9)Requires BAR to implement this bill's provisions by January 1,  
            2011.  

           EXISTING LAW  :  

           1) Requires, generally, vehicles that are registered in  
             non-attainment areas for ozone or carbon monoxide pollutant  
             emissions to undergo biennial smog checks.  

           2) Authorizes BAR to enforce and administer the smog check  
             program to ensure the reduction of gaseous emissions of  
             hydrocarbons, carbon monoxide, and oxides of nitrogen.   
             Directs that a certain percentage of vehicles deemed to be  
             "high emitters" (currently about 42% of vehicles subject to  
             the program) to specified "test-only" stations.  Test-only  
             stations are those that test, but do not repair, vehicles.  

           3) Requires the periodic evaluation of the smog check program  
             by BAR and ARB.  Establishes IMRC that provides periodic  
             reviews of the smog check program to the Legislature.  

           4) Authorizes a state consumer assistance program offering  
             eligible motorists to receive up to $450 to fix their vehicle  
             or $1,500 to retire it.  Authorizes BAR to increase its  
             contribution for motor vehicle repairs if it determines that  
             the expenditure is cost effective (accordingly, BAR has  
             increased the level to $500).  

           5) Establishes the maximum income level for eligible motorists  
             to qualify for the consumer assistance program, for vehicle  
             repairs, at 200% of the federal poverty level as published  
             quarterly in the Federal Register.  Authorizes BAR, at its  
             discretion, to increase the maximum income level up to 225%.   
             However, authorizes a vehicle owner, regardless of income  
             level, to receive financial assistance for repair of their  
             vehicle if it failed smog check inspection at a  test-only  
             facility  .  Establishes no income level for participation in  
             the voluntary vehicle retirement or "scrappage" program.  

           6) Requires BAR to compile and maintain statistical and  
             emissions profiles of motor vehicles that are subject to the  
             smog check program.  Authorizes BAR to use data from any  
             source, including remote sensing data and other motor vehicle  
             inspection program data, to develop and confirm the validity  
             of the profiles.  Requires BAR, in cooperation with ARB, to  








                                                                  AB 859
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             perform periodic analyses of the statistical and emissions  
             profiles.  Authorizes BAR and ARB, in consultation with IMRC,  
             to determine what vehicles may be excepted from the biennial  
             smog checks without significantly compromising the emission  
             reduction objectives set forth in the SIP.  

           7) Establishes, as legislative intent, that BAR exempt at least  
             15% of the lowest emitting motor vehicles from the biennial  
             smog check inspections.  

           8) Creates the HPRRA and makes available, upon appropriation by  
             the Legislature, all money in the account to ARB and BAR to  
             establish and implement a program for the repair or  
             replacement of high polluting motor vehicles.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis of last year's AB 616 (Jones) of 2008, "there  
          will be a substantial revenue increase, up to $18 million every  
          other year starting in 2008-09, to the HPRRA resulting from  
          certificate of compliance fees being imposed annually to  
          increase resources available to BAR's repair assistance program  
          and vehicle retirement program.  Costs, in the range of $10  
          million annually starting in 2008-09, to BAR resulting from  
          significantly more motorists being eligible for repair cost  
          assistance and the potential need to provide this assistance  
          annually instead of biennially."  

          (The owners of the up to 2.2 million vehicles that are 15 model  
          years or older up to 1976 that are required to be annually  
          inspected under smog check instead of biennially inspected would  
          incur an average of $60 per year for the inspection and  
          certificate instead of incurring that cost every two years.   
          These additional costs are higher for owners of vehicles that do  
          not pass their smog check and must incur repair costs in order  
          to pass.)  

           COMMENTS  :  

           Background  :  According to the author, "on average, vehicles 15  
          years and older fail smog check inspection 27% of the time, more  
          than three times the average fail rate of newer vehicles.   
          Research conducted by ARB and BAR found that about 50% of the  
          1976-1995 model year vehicles that failed a smog check  
          inspection and were subsequently repaired, failed a future  
          roadside inspection within six months.  In its November 2008  








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          report, IMRC, which was created by the Legislature to evaluate  
          the effectiveness of the smog check program and recommend  
          improvements, recommended that California institute annual  
          inspections for older vehicles, arguing that failure rates  
          increase significantly as vehicles age, with some 1980s models  
          failing at a 40% rate.  ARB projects statewide emissions  
          reductions of 19.7 tons per day of hydrocarbons and NOx by  
          2014."  

          To allay concerns over the cost impact upon low-income drivers  
          of the older vehicles, this bill expands the qualifications and  
          amounts of repair assistance for those income-eligible car  
          owners in need of repairs.  This bill also closes a loophole  
          that currently allows non low-income persons to receive consumer  
          repair assistance if their vehicle fails smog check at a  
          directed  test-only facility.   These provisions provide relief to  
          vehicle owners whose vehicles fail the smog check and are in  
          need of repair.  However, the provisions do not ameliorate the  
          cost impacts upon low and fixed income owners of the older  
          vehicles who would be required to incur smog check inspections  
          fees and costs every year, rather than every other year.  

          It should also be noted that 14 other states, including Texas  
          and New York, have some form of annual smog check.  

           Support  :  As the sponsor of this bill, the Sacramento  
          Metropolitan Air Quality Management District indicates that the  
          "Annual smog check for older vehicles is also a key component of  
          the ARB's State Implementation Plan that is the blueprint for  
          bringing the state into attainment with federal clean air  
          regulations.  The emissions reductions associated with the  
          proposed annual smog check for older vehicles reduce the need  
          for local air districts to impose additional burdens upon  
          jobs-producing businesses within California.  Absent stronger  
          regulation of motor vehicles, local air districts may be forced  
          to impose more stringent emissions control requirements on  
          industries in the manufacturing or service sectors of the  
          economy in order to adequately protect the public health from  
          air pollution."  

           Opposition  :  This bill has invoked opposition from owners of  
          vehicles currently within the 1994 to 1976 era, with cars that  
          are restored, highly maintained, and driven very little.  They  
          believe that they will be unfairly burdened by the costs imposed  
          by the annual inspections and that the rolling year exemption  








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          for 30 year old cars should be restored.  They also believe  
          exceptions should be made for vehicles driven limited miles  
          annually.  

           Related bill  :  This bill is similar to a bill carried by the  
          author last year, AB 616.  That bill was held in the Senate  
          Appropriations Committee.  Also, AB 823 (Hill) of 2009, includes  
          some similar provisions that are considered in this bill.  AB  
          823 passed out of the committee on April 13, 2009.  At some  
          point, the income qualification provisions of AB 823 and this  
          bill would need to be harmonized.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Sacramento Metropolitan Air Quality Management District  
          (sponsor) 
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          American Lung Association of California
          Automotive Service Councils of California
          Bay Area Air Quality Management District
          Breath California
          California Air Pollution Control Officers Association 
          California Service Station and Automotive Repair Association
          California Thoracic Society
          Clean Power Campaign  
          Coalition for Clean Air  
          Consumers for Auto Reliability and Safety
          National Parks Conservation Association  
          Sierra Club California 
          Union of Concerned Citizens

           Opposition 
           
          Association of California Car Clubs
          Professional Products Company
          Specialty Equipment Market Association


           Analysis Prepared by  :    Ed Imai / TRANS. / (916) 319-2093