BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 470
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 470 (Halderman)
        As Amended  June 30, 2011
        Majority vote
         
         ----------------------------------------------------------------- 
        |ASSEMBLY:  |71-0 |(May 5, 2011)   |SENATE: |37-0 |(July 11,      |
        |           |     |                |        |     |2011)          |
         ----------------------------------------------------------------- 
          
         Original Committee Reference:    TRANS.  

         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.  

         The Senate amendments  incorporate provisions of AB 462 (Bonnie 
        Lowenthal) of 2011 and add double-jointing language to both this 
        bill and AB 462.  This bill is substantially similar to the version 
        as previously passed in the Assembly.  
         
        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)Establishes, under the Federal Clean Air Act passed in 1970, 
          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 








                                                                AB 470
                                                                Page  2

          permits, acid rain control measures, stratospheric ozone 
          protection, and enforcement provisions.  

        4)Confers, under state law, 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 over emission standards 
          for non-mobile, or stationary, sources.  

         AS PASSED BY THE ASSEMBLY  , this bill authorized 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.

         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 saving 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, 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 








                                                                AB 470
                                                                Page  3

        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 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.  Both this bill 
        and AB 462 are double-jointed.  

        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.  
         

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


                                                                 FN: 0001470