BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1156 (Cedillo)
Hearing Date: 07/15/2010 Amended: 06/16/2010
Consultant: Mark McKenzie Policy Vote: T&H 7-0
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BILL SUMMARY: SB 1156, an urgency measure, would appropriate
$20 million from the Air Quality Improvement Fund to the State
Air Resources Board (ARB) to provide grants to owners of three
or fewer heavy duty diesel trucks that service the state's ports
and railyards for the purchase of equipment that meets specified
emission standards pursuant to drayage truck regulations.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Appropriation $20,000 Special*
ARB: update AQIP guidelines $128 Special*
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* Air Quality Improvement Fund
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Existing law, AB 118 (N??ez), Chapter 750 of 2007, establishes
the Air Quality Improvement Program (AQIP), which is a voluntary
incentive program administered by ARB to fund clean vehicle and
equipment projects, research on biofuels production and the air
quality impacts of alternative fuels, and workforce training.
The program is funded by temporary fee increases through 2015
for smog abatement, boat registrations, and special
identification plates. Each fiscal year, ARB adopts a funding
plan that establishes priorities for the funding cycle,
describes the projects ARB intends to fund, and sets funding
targets for each project. About 80 percent of AQIP funds for
the 2009-10 fiscal year have been dedicated to support vehicle
and equipment deployment projects for what ARB considers to be
the next generation of advanced technology vehicles and
equipment just reaching commercialization, including hybrid
trucks and buses. ARB adopted the 2010-11 funding plan on June
24, 2010, which provides continued funding for the existing AQIP
project categories at approximately the same percentages as last
year with a few minor changes. The Governor's proposed budget
would provide $40 million for AQIP projects in 2010-11. The
2010-11 funding plan does not provide for allocations to upgrade
heavy duty diesel trucks to meet ARB's drayage truck
regulations.
SB 1156 would appropriate $20 million in AQIP funds to ARB to
provide grants to owners of on-road heavy duty diesel vehicles
that service the state's ports and railyards to purchase
equipment for compliance with drayage truck regulations that
must be achieved by December 31, 2013. Funding would only be
provided to owners of three or fewer trucks and would only be
used for equipment to meet 2007 model year engine or newer
emission standards, as specified in ARB's drayage truck
regulations. Funds
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SB 1156 (Cedillo)
could not be used to purchase equipment for trucks that already
comply with Phase I of the regulations, which require reductions
of vehicle particulate emissions of 85% by December 31, 2009.
The bill would sunset on January 1, 2013 and any funds not
expended by then would revert to the Air Quality Improvement
Fund.
This bill is intended to address the economic hardships faced by
small owner-operators of drayage trucks in meeting ARB emission
reduction standards by providing an immediate funding source for
retrofitting non-compliant trucks. Average retrofit costs range
from $11,000 to $20,000 per truck and full engine replacement
can be much more expensive.
SB 1156 would require ARB to update AQIP project guidelines and
revise the recently adopted 2010-11 funding plan to accommodate
the appropriation of funds for grants to small owner-operators
of drayage trucks. ARB would require 1.5 PY of staff time, at a
cost of approximately $127,500 in 2010-11, to update guidelines,
revise the funding plan, and administer the drayage truck grant
program. This bill would dedicate $20 million in AQIP funds for
drayage truck retrofits and divert funds away from other
pollution control projects that utilize emerging clean air
technologies. In the coming year, ARB anticipates spending AQIP
funds to provide incentives for the purchase of heavy-duty
hybrid trucks and zero-emission vehicles.