BILL ANALYSIS
AB 1527
Page 1
Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
AB 1527 (Lieu) - As Introduced: February 27, 2009
SUBJECT : Carl Moyer Program: multiple fund sources
SUMMARY : Authorizes a motor vehicle emission reduction project
to be funded from multiple air quality programs, including the
Carl Moyer Memorial Air Quality Standards Attainment Program
(Carl Moyer) and the Goods Movement Emission Reduction Program
(GMERP).
EXISTING LAW :
1)Establishes the California Air Resources Board (ARB) to set
statewide air quality standards and regulate emissions from
motor vehicles, fuels, and consumer products. ARB, along with
the 35 local air quality districts that regulate other sources
of air pollution, monitors air pollution and administers
regulatory and incentive programs to improve air quality.
Establishes ARB as the lead entity for implementation of the
Global Warming Solutions Act of 2006.
2)Authorizes, through the enactment of Proposition 1B as
approved by the statewide voters in November 2006, the state
to sell approximately $20 billion of general obligation bonds
to fund transportation projects. Of the $20 billion,
allocates $1 billion into the GMERP to be administered by ARB
to quickly reduce air pollution emissions, not otherwise
required by law or regulation, and reduce the health risk from
freight movement along California's priority trade corridors.
The major sources eligible for bond funding include heavy-duty
trucks, locomotives, shore side power for cargo ships,
commercial harbor craft, cargo handling equipment, and
infrastructure for electrification of truck stops,
distribution centers, and other places trucks congregate.
3)Establishes Carl Moyer as a grant program to fund the
incremental cost of cleaner-than required heavy-duty engines.
Carl Moyer is an integral part of California's strategy to
attain federal air quality standards by achieving emission
reductions early or in excess of what is required by
regulation. Carl Moyer has provided funding for the
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incremental cost of a diverse range of project types,
including purchase of new alternative-fuel heavy-duty vehicles
(primarily transit buses and trash trucks) and engine
replacements (repowers) for agricultural irrigation pumps,
construction equipment, and marine vessels. These projects
have reduced smog-forming nitrogen oxide (NOx) emissions by
over 18 tons per day (tpd) and toxic diesel particulate matter
(PM) emissions by almost 1 tpd, with a favorable
cost-effectiveness of about $2,600 per ton of NOx reduced.
4)Pursuant to AB 118 (Nunez) Chapter 750, Statutes of 2007,
develops funding programs for the reduction of greenhouse
gases (GHG) and the development of clean fuel and vehicle
technologies. AB 118 creates three distinct programs aimed at
improving air quality and advancing alternative fuels and
clean technologies.
a) The Air Quality Improvement Programs administered by ARB
is designed to fund air quality improvement projects
related to fuel and vehicle technologies. ARB must consult
with local air districts and work in coordination with the
California Energy Commission (CEC);
b) The Alternative and Renewable Fuel and Vehicle
Technology Program administered by CEC. AB 118 directs
that projects be evaluated on their proposed reduction of
air pollutants, cost effectiveness, contribution to
regional air quality improvement, and ability to promote
alternative fuels or technologies; and,
c) The Enhanced Fleet Modernization Program, administered
by the Bureau of Automotive Repair, primarily directed at
light-duty fleet vehicle replacements.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, "Carl Moyer and GMERP are
designed to reduce emissions throughout the state by providing
incentives for projects that lead to air quality improvements.
However, current law doesn't allow for a project using Carl
Moyer and GMERP funds to be developed to increase air quality
and reduce greenhouse gas emissions by adding additional state
funding such as funds from AB 118."
The author and sponsor have indicated that their intention of
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introducing the bill is to seek GMERP and Carl Moyer funding
flexibility so that any use of state AB 118 clean air/vehicle
program funds would not detrimentally impact a project's
competitiveness when the project is considered for funding
through the GMERP or Carl Moyer. Further, they have indicated
that they will not change funding processes and
cost-effectiveness calculations in a way that would negatively
compromise criteria pollutant or toxic air contaminant emission
reductions.
Arguments in Support :
1)By providing more flexibility in the administration of the air
quality vehicle emission programs by facilitating the
commingling of state program clean air vehicle funds, an
enhanced project as funded by a specific program could be
realized that otherwise could not be achieved if a project was
not allowed supplemental funding from another program.
2)The California Dump Truck Owners Association indicates that
"our industry has recently been negatively impacted by actions
taken by ARB with promulgation of the Truck and Bus Rule. The
trucking industry is experiencing the worst economic downturn
since de-regulation with minimal work and high diesel prices.
The small trucking businesses are truly struggling to survive
at this point. These ill-conceived ARB air quality
regulations will put the nail in the coffin of small trucking
businesses in this state. This bill seeks to provide
additional funding for our impacted membership."
Arguments in Opposition :
1)Diesel PM emission reductions as anticipated from Carl Moyer
and GMERP could be sacrificed should AB 118 funds be allowed
to be commingled and the PM emission reductions are
compromised. Although enactment of this bill could improve
climate change through the reduction of GHG's, in the short
term, this bill alternatively could increase public health
risks, especially in areas around ports and railyards,
possibly impacting the heart and lung diseases of lower income
communities that disproportionately reside in these areas.
2)Substituting other state funds for private or local funds are
counter to the fund match requirements of Carl Moyer and GMERP
and can diminish the overall returns from the state's
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investment of its moneys for emission reductions in terms of
criteria pollutants or toxic air contaminants as well as
GHG's.
REGISTERED SUPPORT / OPPOSITION :
Support
CALSTART (sponsor)
California Dump Truck Owners Association
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093