BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 470
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 470
           AUTHOR:     Halderman
           AMENDED:    June 7, 2011
           FISCAL:     No                HEARING DATE:     June 27, 2011
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    SCHOOLBUS RETROFIT

            SUMMARY  :    
           
            Existing law  :

           1) Provides the California Air Resources Board (ARB) with 
              primary responsibility for control of mobile source air 
              pollution, including adoption of rules for reducing vehicle 
              emissions and the specification of vehicular fuel 
              composition.  (Health and Safety Code �39000 et seq. and 
              �39500 et seq.).  The ARB must coordinate efforts to attain 
              and maintain ambient air quality standards.  (�39003).

           2) Provides that air pollution control districts (APCDs) and 
              air quality management districts (AQMDs) have primary 
              responsibility for controlling air pollution from all 
              sources, other than emissions from mobile sources.  (�40000 
              et seq.).  Certain APCDs and AQMDs are established, with 
              related authority, including the Sacramento Metropolitan 
              Air Quality Management District (SMAQMD).  (�40950 et 
              seq.).

           3) Authorizes an APCD or AQMD, until January 1, 2015, to levy 
              a fee up to $6 on motor vehicles registered in the 
              district, with the first $4 in revenue of each fee used to 
              reduce air pollution from motor vehicles and to carry out 
              relating planning, monitoring, enforcement, and technical 
              studies necessary to implement the California Clean Air Act 
              of 1988; and the next $2 of each fee to be used for certain 
              purposes, including purchase of new school buses in 
              accordance with the Lower-Emission School Bus Program 
              adopted by the ARB.  (�44229).  Similar provisions are 









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              specified for the SMAQMD.  (�41081).

            This bill  :

           1) Allows the $2 portion of the fee for APCDs, AQMDs, and the 
              SMAQMD to also be used for retrofitting existing schoolbus 
              emission control equipment in accordance with the 
              Lower-Emission School Bus Program.

           2) Makes technical and clarifying amendments, and contains 
              double-jointing amendments to address chaptering-out 
              problems with AB 462 (Lowenthal).

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Current law 
              allows air 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 Lower-Emission School Bus Program. Current law only 
              allows the motor vehicle registration surcharge funds to be 
              used to purchase brand new buses. The goal of the 
              Lower-Emission School Bus Program is to reduce school 
              children's exposure to the harmful school bus exhaust  . . 
              . AB 470 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 funds for 
              retrofitting school buses in addition to the purchase of 
              new buses."

            2) Background  .  The primary goal of ARB's Lower-Emission 
              School Bus Program is to reduce exposure to cancer-causing 
              and smog-forming pollution.  The program provides funding 
              for new and safer schoolbuses, as well as air pollution 
              control equipment (retrofit devices) on existing buses.  
              Beginning in the 2000-01 fiscal year budget, $50 million 
              was allocated to the ARB for the program.  According to the 
              ARB in 2000, "ARB and local air districts recognize that PM 
              �particulate matter] emissions from diesel-fueled engines 
              and vehicles are a serious public health concern, 
              particularly for school age children who are more 










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              susceptible to its harmful health effects.  When 
              implemented, the Lower-Emission School Bus Program will 
              provide California's school children with less polluting, 
              and in many cases, safer school transportation."

           AB 923 (Firebaugh) Chapter 707, Statutes of 2004, among other 
              things, authorized APCDs, AQMDs, and SMAQMD to increase the 
              registration fee by $2 to be used for certain purposes, 
              including purchase of new schoolbuses in accordance with 
              the Lower-Emission School Bus Program adopted by the ARB.

           Voters approved Proposition 1B (the Highway Safety, Traffic 
              Reduction, Air Quality, and Port Security Bond Act of 2006) 
              November 7, 2006.  This bond act provided for a bond issue 
              not to exceed $19,925,000,000 for certain purposes, 
              including $200 million for schoolbus retrofit and 
              replacement to reduce air pollution and children's exposure 
              to diesel exhaust.

           SB 88 (Committee on Budget and Fiscal Review) Chapter 181, 
              Statutes of 2007, contained various provisions to implement 
              Proposition 1B, including the California Clean Schoolbus 
              Program (Health and Safety Code �44299.90 et seq.) which 
              requires ARB to allocate funds in accordance with the 
              following:  a) replace all schoolbuses in operation with a 
              1976 model year or earlier; and b) remaining funds 
              apportioned to local APCDs and AQMDs based on the number of 
              schoolbuses with 1977 to 1986 model years (each school 
              district must determine the percentage of its allocation to 
              spend between replacement of schoolbuses of model years 
              1977 to 1986, and retrofit of schoolbuses of any model 
              year).  All schoolbuses replaced under this program must be 
              scrapped.  SB 88 also requires ARB to prepare guidelines 
              for the program.

           AB 470 allows the $2 portion of the fee for APCDs, AQMDs, and 
              the SMAQMD enacted under AB 923 of 2004 to also be used for 
              retrofitting existing schoolbus emission control equipment 
              in accordance with the Lower-Emission School Bus Program.

            3) Support and opposition concerns  .  According to the 
              California Air Pollution Control Officers Association in 










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              supporting AB 470, "This bill provides a cost-effective 
              alternative to purchasing brand new buses."

           According to the School Transportation Coalition in opposing 
              AB 470, "Our own analysis showed that the cost per pound of 
              reduced PM emission was less with the replacement of old 
              school buses as compared to installing active retrofits."

            4) Related legislation  .  AB 462 (Lowenthal) allows the $2 
              portion of the fee for APCDs and AQMDs enacted under AB 923 
              of 2004 to also be used for replacement of onboard natural 
              gas fuel tanks on school district-owned school buses that 
              are 14 years or older (not to exceed $20,000 per bus) and 
              enhancement of deteriorating natural gas fueling dispensers 
              of school district-operated fueling infrastructure (with a 
              one-time funding amount not exceeding $500 per dispenser).  
              AB 462 and AB 470 contain double-jointing amendments to 
              address chaptering-out problems.  However, this 
              double-jointing provision will need to be amended if AB 462 
              is further amended.

            SOURCE  :        Assemblymember Halderman  

           SUPPORT  :       Bay Area Air Quality Management District, 
                          California Air Pollution Control Officers 
                          Association, California School Boards 
                          Association  

           OPPOSITION  :    School Transportation Coalition