BILL NUMBER: AB 470	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2011

INTRODUCED BY   Assembly Member Halderman

                        FEBRUARY 15, 2011

   An act to amend  Section 40322.5   Sections
41081 and 44229  of the Health and Safety Code, relating to air
pollution.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 470, as amended, Halderman.  Regional air 
 Air  pollution  control districts: governing board
membership.   districts: fees: schoolbus retrofits.
 
   Existing law authorizes specified air pollution control and air
quality management districts to adopt a fee applicable to motor
vehicles registered in counties within that district, and requires
the fee to be collected by the Department of Motor Vehicles. Existing
law, until January 1, 2015, authorizes the amount of the fee to be
up to $6. Existing law requires the revenues from the first $4 of the
fee to be used for specified purposes. Existing law requires that
the revenues from the last $2 of the fee to be used for specified
programs that the district determines remediate air pollution harms
created by motor vehicles, including purchases of new schoolbuses
pursuant to the State Air Resources Board's Lower-Emission School Bus
Program.  
   This bill would additionally authorize a district based on that
determination to use the last $2 of the fee to retrofit existing
schoolbuses pursuant to the State Air Resources Board's
Lower-Emission School Bus Program.  
    Existing law requires the governing board of each regional air
pollution control district, as defined, to include both county
supervisors and mayors or city council members, as specified.
 
   This bill would make technical, nonsubstantive changes to this
requirement. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 41081 of the   Health
and Safety Code   , as amended by Section 2 of Chapter 707
of the Statutes of   2004, is amended to read: 
   41081.  (a) Subject to Article 3.7 (commencing with Section 53720)
of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
Code, or with the approval of the board of supervisors of each county
included, in whole or in part, within the Sacramento district, the
Sacramento district board may adopt a surcharge on the motor vehicle
registration fees applicable to all motor vehicles registered in
those counties within the Sacramento district whose boards of
supervisors have adopted a resolution approving the surcharge. The
surcharge shall be collected by the Department of Motor Vehicles and,
after deducting the department's administrative costs, the remaining
funds shall be transferred to the Sacramento district. Prior to the
adoption of any surcharge pursuant to this subdivision, the district
board shall make a finding that any funds allocated to the district
as a result of the adoption of a county transportation sales and use
tax are insufficient to carry out the purposes of this chapter.
   (b) The surcharge shall not exceed six dollars ($6).
   (c) After consulting with the Department of Motor Vehicles on the
feasibility thereof, the Sacramento district board may provide, in
the surcharge adopted pursuant to subdivision (a), to exempt from all
or part of the surcharge any category of low-emission motor vehicle.

   (d) Funds received by the Sacramento district pursuant to this
section shall be used by that district as follows:
   (1) The revenues resulting from the first four dollars ($4) of
each surcharge shall be used to implement reductions in emissions
from vehicular sources, including, but not limited to, a clean fuels
program and motor vehicle use reduction measures.
   (2) The revenues resulting from the next two dollars ($2) of each
surcharge shall be used to implement the following programs that
achieve emission reductions from vehicular sources and off-road
engines, to the extent that the district determines the program
remediates air pollution harms created by motor vehicles on which the
surcharge is imposed:
   (i) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (ii) The new purchase, retrofit, repower, or add-on of equipment
for previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, within the Sacramento district, for a
minimum of three years from the date of adoption of an applicable
rule or standard, or until the compliance date of that rule or
standard, whichever is later, if the state board has determined that
the rule or standard complies with Sections 40913, 40914, and
41503.1, after which period of time, a new purchase, retrofit,
repower, or add-on of equipment shall not be funded pursuant to this
chapter. The district shall follow any guidelines developed under
subdivision (a) of Section 44287 for awarding grants under this
program.
   (iii) The  new  purchase of  new, or retrofit
of existing,  schoolbuses pursuant to the Lower-Emission School
Bus Program adopted by the state board.
   (iv) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
   (e) Not more than 5 percent of the funds collected pursuant to
this section shall be used by the district for administrative
expenses.
   (f)  No   A    project funded
by the program shall  not  be used for credit under any
state or federal emissions averaging, banking, or trading program.
 No   An  emission reduction generated by
the program shall  not  be used as marketable emission
reduction credits or to offset any emission reduction obligation of
any person or entity. Projects involving new engines that would
otherwise generate marketable credits under state or federal
averaging, banking, and trading programs shall include transfer of
credits to the engine end user and retirement of those credits toward
reducing air emissions in order to qualify for funding under the
program. A purchase of a low-emission vehicle or of equipment
pursuant to a corporate or a controlling board's policy, but not
otherwise required by law, shall generate surplus emissions
reductions and may be funded by the program.
   (g) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
   SEC   . 2.    Section 44229 of the 
 Health and Safety Code   , as amended by Section 4 of
Chapter 707 of the Statutes of 2004, is amended to read: 
   44229.  (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts, which
shall use the revenues resulting from the first four dollars ($4) of
each fee imposed to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
   (b) Notwithstanding the provisions of Section 44241 and Section
44243, a district shall use the revenues resulting from the next two
dollars ($2) of each fee imposed pursuant to Section 44227 to
implement the following programs that the district determines
remediate air pollution harms created by motor vehicles on which the
surcharge is imposed:
   (1) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (2) The new purchase, retrofit, repower, or add-on equipment for
previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the
compliance date of that rule or standard, whichever is later, if the
state board has determined that the rule or standard complies with
Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be
funded pursuant to this chapter. The districts shall follow any
guidelines developed under subdivision (a) of Section 44287 for
awarding grants under this program.
   (3) The new  purchase of  new, or retrofit of
existing,  schoolbuses pursuant to the Lower-Emission School
Bus Program adopted by the state board.
   (4) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
   (c) The Department of Motor Vehicles may annually expend not more
than  the following percentages   1 percent
 of the fees collected pursuant to Section 44227 on
administrative costs  :   .  
   (1) During the first year after the operative date of this
chapter, not more than 5 percent of the fees collected may be used
for administrative costs.  
   (2) During the second year after the operative date of this
chapter, not more than 3 percent of the fees collected may be used
for administrative costs.  
   (3) During any year subsequent to the second year after the
operative date of this chapter, not more than 1 percent of the fees
collected may be used for administrative costs. 
   (d)  No   A  project funded by the
program shall  not  be used for credit under any state or
federal emissions averaging, banking, or trading program.  No
  An  emission reduction generated by the program
shall  not  be used as marketable emission reduction credits
or to offset any emission reduction obligation of any person or
entity. Projects involving new engines that would otherwise generate
marketable credits under state or federal averaging, banking, and
trading programs shall include transfer of credits to the engine end
user and retirement of those credits toward reducing air emissions in
order to quality for funding under the program. A purchase of a
 low-emision   low-emission  vehicle or of
equipment pursuant to a corporate or a controlling board's policy,
but not otherwise required by law, shall generate surplus emissions
reductions and may be funded by the program.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date. 
  SECTION 1.    Section 40322.5 of the Health and
Safety Code is amended to read:
   40322.5.  (a) Notwithstanding any other provision of this chapter,
on and after July 1, 1994, the membership of the governing board of
each regional district, including any district formed on or after
that date, shall include (1) one or more members who are mayors, city
council members, or both, and (2) one or more members who are county
supervisors.
   (b) The number of those members and their composition shall be
determined jointly by the counties and cities within the district,
and shall be approved by a majority of the counties, and by a
majority of the cities that contain a majority of the population in
the incorporated area of the district.
   (c) The governing board shall reflect, to the extent feasible and
practicable, the geographic diversity of the district and the
variation of population between the cities in the district.
   (d) The members of the governing board who are mayors or city
council members shall be selected by a majority of the cities in the
district. The members of the governing board who are county
supervisors shall be selected by a majority of the counties in the
district.
   (e) If a district fails to comply with subdivisions (a) and (b),
the membership of the governing board shall be determined as follows:

   (1) In districts in which the population in the incorporated areas
represents 35 percent or less of the total county population,
one-fourth of the members of the governing board shall be mayors or
city council members, and three-fourths shall be county supervisors.
   (2) In districts in which the population of the incorporated areas
represents between 36 and 50 percent of the total county population,
one-third of the members of the governing board shall be mayors or
city council members, and two-thirds shall be county supervisors.
   (3) In districts in which the population of the incorporated areas
represents more than 50 percent of the total county population,
one-half of the members of the governing board shall be mayors or
city council members, and one-half shall be county supervisors.
   (4) The number of those members shall be determined as provided in
subdivision (b) and the members shall be selected pursuant to
subdivision (d).
   (5) For purposes of paragraphs (1) to (3), inclusive, if any
number that is not a whole number results from the application of the
term "one-fourth," "one-third," "one-half," "two-thirds," or
"three-fourths," the number of county supervisors shall be increased
to the nearest integer, and the number of mayors or city council
members decreased to the nearest integer.
   (f) This section does not apply to a district if the membership of
the governing board of the district includes both county supervisors
and mayors or city council members on June 30, 1994.