BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 470
                                                                  Page  1

          Date of Hearing:   May 2, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   AB 470 (Halderman) - As Amended:  April 26, 2011
           
          SUBJECT  :  School bus: pollution control retrofits

           SUMMARY  :  Authorizes an air pollution control district or a 
          regional air quality management district (district), until 
          January 1, 2015, to use motor vehicle registration fee revenues 
          (the last $2 increase of the $6 dollar surcharge, as specified) 
          for retrofit of emissions control equipment for existing school 
          buses.  

           EXISTING LAW  :  

          1)Authorizes a district, until January 1, 2015, to establish a 
            fee of up to $6 on the registration of motor vehicles 
            registered in the district.  

          2)Requires the revenues from the first $4 of the fee be used for 
            specified purposes.  Requires that the revenues from the last 
            $2 of the fee be used to implement programs to remediate
            the air pollution harms caused by motor vehicles under the 
            Carl Moyer program, the new purchase, retrofit, repower, or 
            add-on of equipment for previously unregulated agricultural 
            sources, the new purchase of schoolbuses pursuant to the 
            Lower-Emission School Bus Program (LESBP), and an accelerated 
            vehicle retirement or repair program.  

          3)Under the Federal Clean Air Act passed in 1970, establishes 
            requirements and standards for the national air pollution 
            control program.  Basic elements of the act include national 
            ambient air quality standards for major air pollutants, 
            hazardous air pollutants standards, state attainment plans, 
            motor vehicle emissions standards, stationary source emissions 
            standards and permits, acid rain control measures, 
            stratospheric ozone protection, and enforcement provisions.  

          4)Under state law, confers authority to the California Air 
            Resources Board (ARB) over emission standards for mobile 
            sources.  The law does not confer authority to ARB to issue 
            permits directly to stationary sources of air pollution.  
            Instead, state law provides that districts have jurisdiction 








                                                                  AB 470
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            over emission standards for non-mobile, or stationary, 
            sources.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Current law allows districts throughout the state to 
          impose a surcharge on motor vehicle registration.  This 
          surcharge is used to pay for a number of air quality projects, 
          including the LESBP.  The goal of the LESBP is to reduce the 
          exposure of school children to the harmful effects of school bus 
          exhaust.  Current laws only allow the motor vehicle registration 
          surcharge funds to be used to purchase brand new buses.  The 
          surcharge cannot be used for retrofitting older buses with 
          pollution control equipment.  The author contends, however, that 
          to ensure maximum participation in the LESBP and in order to 
          offer cost savings alternatives, the law must be changed to 
          grant school districts the ability to retrofit the emissions 
          control equipment on existing school buses that use diesel 
          fuels.  

          According to the author's office, this bill "gives school 
          districts greater flexibility in how to use available funds, and 
          offers a cost-effective alternative to having to purchase brand 
          new school buses.  This legislation only extends the use of new 
          school bus funds for the retrofitting of existing school buses 
          with emission reduction equipment especially as funds for the 
          purchasing of new buses are limited."  

           Lower-Emission School Bus Program (LESBP)  :  The primary goal of 
          the ARB's LESBP is to reduce school children's exposure to both 
          cancer-causing and smog-forming pollution by first replacing 
          buses manufactured prior to 1977 (no match funds required).  The 
          program provides grant funding for new, safer school buses and 
          to put air pollution control equipment (i.e., retrofit devices) 
          on buses that are already on the road.  The ARB staff, in 
          coordination with the California Energy Commission (CEC) and the 
          local air pollution control districts, has developed guidelines 
          for implementation of the LESBP funds.  For buses of model years 
          1977-1986, LESBP funds can be used for replacement buses with a 
          match requirement.  For middle-aged buses from 1987 model years 
          and newer, the program can be used for emission control 
          retrofits with match requirements.  

           Support  :  According to the Bay Area Air Quality Management 
          District (BAAQMD) writing in support of this bill, "In 2004, the 








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          Legislature passed AB 923, which allows air districts to 
          establish a $2 per vehicle per year fee on annual vehicle 
          registrations.  The BAAQMD has used these funds to 
          cost-effectively cut emissions from a wide variety of mobile 
          sources in our region.  Under current law, these funds can be 
          given as grants for the purchase of new, cleaner school buses.  
          AB 470 would expand this to allow air districts, at their 
          discretion, to also fund the retrofit of existing school buses 
          with particulate traps.  Because school children are 
          particularly vulnerable to air pollution, and school districts 
          continue to have serious funding challenges, we urge you to vote 
          "aye" on this measure."  

           Related bill  :  AB 462 (Bonnie Lowenthal) of 2011, a similar 
          bill, allows districts, until January 1, 2015, to use motor 
          vehicle registration fee revenues to replace natural gas fuel 
          tanks on school buses or replace fueling dispenser nozzles.  
          That bill passed this committee and is in the Senate awaiting 
          committee assignment.  At some point in the legislative process, 
          AB 462 and this bill will need to be reconciled.  

          AB 923 (Firebaugh and Pavley) Chapter 707, Statutes of 2004, 
          authorized districts to impose an additional $2 of the $4 
          surcharge on motor vehicle registrations to implement clean air 
          programs as specified.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Bay Area Air Quality Management District

           Opposition 
           
          None on file
           

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