BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1156|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 1156
Author: Cedillo (D)
Amended: 8/4/10
Vote: 27 - Urgency
SENATE TRANSPORTATION & HOUSING COMM : 7-0, 6/22/10
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman,
Pavley, Simitian
NO VOTE RECORDED: Kehoe, Oropeza
SENATE APPROPRIATIONS COMMITTEE : 7-0, 7/15/10
AYES: Kehoe, Corbett, Emmerson, Leno, Price, Walters, Wolk
NO VOTE RECORDED: Alquist, Wyland, Yee
SUBJECT : Funding for drayage trucks
SOURCE : Author
DIGEST : This bill appropriates $20 million from the
Enhanced Fleet Modernization Subaccount, in the High
Polluter Removal and Repair Account, to the State Air
Resources Board 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.
Senate Floor Amendments of 8/4/10 change the source of
funding for truck replacement from the Air Quality
Improvement Fund to the Enhanced Fleet Modernization
CONTINUED
SB 1156
Page
2
Subaccount and specifies that the funds shall be allocated
using the same distribution formula as the Goods Movement
Emission Reduction Program as authorized by Proposition 1B.
ANALYSIS : Air Resources Board (ARB) Regulations for
On-Road Heavy-Duty Diesel Trucks
Existing law charges ARB with primary responsibility for
the control of mobile source air pollution, including the
adoption of rules for the reduction of harmful vehicle
emissions and the specification of vehicular fuel
composition. In the past two years, ARB has adopted two
significant regulations to reduce emissions and public
exposure to diesel particulate matter (diesel PM), oxides
of nitrogen (NOx), and other air contaminants from
heavy-duty diesel vehicles.
Drayage Truck Regulation . In December 2007, ARB adopted
the In-Use On-Road Diesel-Fueled Heavy-Duty Drayage Trucks,
referred to as the drayage or port truck rule, by setting
emission standards for in-use, heavy-duty diesel-fueled
vehicles that transport cargo to and from California's
ports and intermodal rail facilities. The rule establishes
different compliance standards and deadlines for different
model-year trucks and will be implemented in two phases, as
described in the following table:
-------------------------------------------------------------
| | |
|Truck Engine |Emission Requirement Schedule |
|Model Year | |
|------------------+------------------------------------------|
| | |
|1993 and older |Prohibited by December 31, 2009 |
| | |
|------------------+------------------------------------------|
| | |
|1994 - 2003 |Phase 1: By December 31, 2009, reduce PM |
| |emissions by 85% |
| |AND |
| |Phase 2: By December 31, 2013, meet 2007 |
| |engine standards |
|------------------+------------------------------------------|
| |Phase 1: By December 31, 2011, reduce PM |
CONTINUED
SB 1156
Page
3
|2004 |emissions by 85% |
| |AND |
| |Phase 2: By December 31, 2013, met 2007 |
| |engine standards |
|------------------+------------------------------------------|
| |Phase 1: By December 31, 2012, reduce PM |
|2005 - 2006 |emissions by 85% |
| |AND |
| |Phase 2: By December 31, 2013, meet 2007 |
| |engine standards |
|------------------+------------------------------------------|
| | |
|2007 and newer |Not applicable, fully compliant |
| | |
-------------------------------------------------------------
Truck and Bus Regulation . In December 2008, ARB adopted
the In-Use On-Road Diesel Vehicle Regulation to reduce
emissions from existing on-road diesel vehicles operating
in California. The regulation establishes a variety of
compliance options, but in general, it requires trucks and
buses to meet performance requirements between 2011 and
2023. By January 1, 2023, all vehicles must have a 2010
model year engine or equivalent.
Existing law creates an enhanced fleet modernization
program for the retirement of certain high polluting
vehicles to be administered by the Bureau of Automotive
Repair pursuant to guidelines adopted by the State Air
Resources Board. Existing law creates the Enhanced Fleet
Modernization Subaccount in the High Polluter Removal and
Repair Account to establish and implement this enhanced
program, upon appropriation by the Legislature.
This bill appropriates $20 million from the Air Quality
Improvement Fund to ARB to provide grants to drayage truck
owners that have not yet complied with ARB's drayage truck
regulation, subject to the following conditions:
1. The funds are administered in a manner that is
consistent with the Goods Movement Emission Reduction
Program, as authorized by Proposition 1B, except that
the funds may be used for emission reductions that are
currently required by law or regulation.
CONTINUED
SB 1156
Page
4
2. The funds are only available for trucks in small fleets
(fleets with three or fewer trucks).
3. The funds may only be used for the purchase of equipment
that meets the 2007 model-year or newer engine
standards.
4. The funds are only available for these grants until
January 1, 2013, after which time the funds revert to
the Enhanced Fleet Modernization Subaccount in the High
Polluter Removal and Repair Account.
5. Specifies the funding shall be distributed among the
state's trade corridors, as defined in current law, with
allocations of 55 percent to the Los Angeles/Inland
Empire region, 25 percent to the Central Valley region,
14 percent to the Bay Area region, and 6 percent to the
San Diego/border region.
Comments
Emissions from diesel trucks have adverse effects on human
health and lead to 4,500 premature deaths per year. By
large majorities, Californians support clean air laws and
reducing air pollution saves the state billions of dollars
per year in reduced hospitalizations and emergency room
visits, health care costs, and lost work days due to
illness.
At the same time, these laws sometimes impose hardships on
small businesses and others who, in a tough economy, may
not have the financial resources necessary to comply with
regulations. Rather than weaken the laws by relaxing the
standards or delaying their implementation, this bill
provides additional funding to help small- and medium-size
trucking businesses retrofit or replace their trucks.
In doing so, this bill will allow more truckers to stay in
business regardless of their ability to pay to comply with
the rules, helping to ensure that the state experiences the
economic benefits derived from maintaining goods movement
businesses such as drayage trucking, while simultaneously
advancing clean air efforts. Implications for AQIP. For
CONTINUED
SB 1156
Page
5
the 2010-11 fiscal year, the Governor has proposed
allocating $40 million to AQIP, however, revenues could be
far less than anticipated. In the 2009-10 fiscal year, for
example, the Governor originally allocated $44 million but
actual revenues totaled only about $29 million. In the
coming year, ARB anticipates spending AQIP funds to provide
incentives for the purchase of heavy-duty hybrid trucks and
zero-emission vehicles. Comparing the emissions of a 2007
model-year heavy-duty diesel truck and a new heavy-duty
hybrid truck, the hybrid truck reduces 25 percent more
particulate, 85 percent more oxides of nitrogen, and 25
percent more carbon dioxide than a 2007 model-year diesel
truck.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Appropriation $20,000
Special*
ARB: update AQIP guidelines $128
Special*
* Air Quality Improvement Fund
SUPPORT : (Verified 8/5/10)
South Coast Air Quality Management District
ARGUMENTS IN SUPPORT : According to the author's office,
this bill is intended to address the economic hardships
truck drivers face complying with ARB standards by
appropriating $20 million dollars to provide grants to
truckers in order to retrofit their vehicles. Currently,
there is incentive money available in many areas of the
state but none to cover the immediate cost of retrofitting
to help meet compliance standards.
CONTINUED
SB 1156
Page
6
JA:nl 8/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED