BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 470
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: halderman
VERSION: 6/7/11
Analysis by: Carrie Cornwell FISCAL: NO
Hearing date: June 14, 2011
SUBJECT:
Vehicle registration surcharge: air districts
DESCRIPTION:
This bill allows an air district to use revenue received from a
surcharge on motor vehicle registrations within its jurisdiction
to fund the retrofit of school bus emission equipment pursuant
to the lower-emission school bus program.
ANALYSIS:
Existing law establishes a basic vehicle registration fee of
$34, plus a $22 surcharge for additional personnel for the
California Highway Patrol, and authorizes local agencies to
impose separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs,
including authorizing a local air district, until January 1,
2015, to levy a surcharge of up to $6 on registration fees of
motor vehicles registered within that district. After January
1, 2015 the maximum surcharge that an air district may levy is
reduced to $4 per registered vehicle. An air district may only
impose the fee if the district board adopts a resolution
providing for both the fee and a corresponding program for the
reduction of air pollution from motor vehicles in order to meet
its obligation under the California Clean Air Act of 1988.
Upon request from an air district, the Department of Motor
Vehicles (DMV) collects these fees upon renewal of a vehicle's
registration and, after deducting up to one percent of the fees
for administrative costs it incurs, distributes the remaining
revenues to the air district based upon the amount of fees
collected from motor vehicles registered within that district.
Under existing law, revenue from the first $4 of the $6
surcharge must be used to reduce air pollution from motor
vehicles and to carry out related planning, monitoring,
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enforcement, and technical studies necessary to implement the
California Clean Air Act of 1988. Revenue from the next $2 may
only be used to implement the following programs that the
district determines remediate air pollution harms created by
motor vehicles on which the surcharge is imposed:
The purchase of new school buses pursuant to the
Lower-Emission School Bus Program adopted by the Air Resources
Board (ARB).
Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program.
The purchase, retrofit, repower, or addition of equipment for
previously unregulated agricultural sources of air pollution
that become subject to regulation, but only until the
compliance date of the regulation.
An accelerated vehicle retirement or repair program adopted by
ARB.
This bill allows an air district to use revenue from the $2
surcharge on vehicle registration to fund retrofit of emission
control equipment for existing school buses, in addition to the
purchase of new buses, pursuant to the Lower-Emission School Bus
program. This bill also ensures that should it and AB 462 both
get enacted, the second bill signed will not chapter out the
first.
COMMENTS:
1.Purpose . Current law allows districts throughout the state to
impose a surcharge on motor vehicle registration to pay for a
number of air quality projects, including the purchase of new
buses under the Lower-Emission School Bus Program. The goal
of this program is to reduce the exposure of school children
to the harmful effects of school bus exhaust. Because
existing law only allows air districts to use their
registration surcharge funds to purchase new buses, the author
argues that it limits maximum participation in the
Lower-Emission School Bus Program. In order to offer cost
savings alternatives, the author introduced this bill to grant
school districts the ability to retrofit the emissions control
equipment on existing school buses.
2.Lower-Emission School Bus Program . The primary goal of the
AB 470 (HALDERMAN) Page 3
ARB's Lower-Emission School Bus Program is to reduce school
children's exposure to both cancer-causing and smog-forming
pollution by, as a first priority, 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. ARB staff, in
coordination with the California Energy Commission and local
air pollution control districts, has developed guidelines for
implementation of the program. For buses of model years
1977-1986, the guidelines allow program funds along with a
match to pay to replace buses. For middle-aged buses from
1987 model year and newer, the guidelines allow program funds,
again with a match, to pay for emission control retrofits.
3.Opposition . The School Transportation Coalition opposes this
bill because of concerns with retrofitting school buses
through the lower-emission school bus program. As it
currently stands, the lower-emission school bus program
provides for both replacement and retrofits of buses. This
bill mirrors that, but the opponent would prefer that the bill
give air districts even more discretion on how to spend
vehicle registration surcharge revenues.
4.Related legislation . AB 462 (B. Lowenthal) allows these air
districts to use these same vehicle registration surcharge
revenues for the replacement of gas tanks and fueling
infrastructure for natural gas powered school buses. Also on
today's agenda in the Senate Transportation and Housing
Committee.
5.Double-referral . The Rules Committee referred this bill to
both the Transportation and Housing Committee and to the
Environmental Quality Committee. Therefore, if this bill
passes this committee, it will be referred to the Committee on
Environmental Quality.
Assembly Votes:
Floor: 71-0
Trans: 12-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday, June 8,
2011)
AB 470 (HALDERMAN) Page 4
SUPPORT: Bay Area Air Quality Management District
California Air Pollution Control Officers
Association
OPPOSED: School Transportation Coalition