BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1099
                                                                  Page  1

          Date of Hearing:   May 2, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
               AB 1099 (Bonnie Lowenthal) - As Amended:  April 6, 2011
           
          SUBJECT  :  Commercial motor vehicle registration

           SUMMARY  :  Establishes restrictions upon the California 
          Department of Motor Vehicles (DMV) for the registration of 
          commercial motor vehicles of model year 1996 or older.  
          Specifically,  this bill  :   

          1)Requires DMV, effective January 1, 2012, to refuse 
            registration for commercial motor vehicles with a declared 
            gross or combined gross vehicle weight that exceeds 10,000 
            pounds that is of a 1996 or older model year and that requires 
            a Class A or B commercial driver's license to operate.  

          2)Exempts from this requirement a commercial motor vehicle 
            registered in California prior to January 1, 2012, if the 
            commercial motor vehicle is continuously registered or is 
            certified nonoperational after January 1, 2012.  

           EXISTING LAW  :  

          1)Requires DMV to refuse registration, or renewal or transfer of 
            registration, for any commercial motor vehicle with a declared 
            gross or combined gross vehicle weight that exceeds 10,000 
            pounds if the owner or operator of the motor vehicle at the 
            time of the application has been cited for a violation of 
            specified air quality standards pertaining to that vehicle or 
            regulations adopted by the State Air Resources Board (ARB), or 
            until the violation has been cleared.  

          2)Confers authority to ARB to regulate emission standards for 
            mobile sources.  Establishes, through regulations, 
            requirements for fleets that operate in California to reduce 
            diesel truck and bus emissions by retrofitting or replacing 
            existing engines.  This regulation, referred to as the 
            Statewide Truck and Bus Rule, was recently amended in December 
            2010 to provide more time for fleets to comply, required the 
            installation of particulate matter (PM) retrofits beginning 
            January 1, 2012, and required the replacement of older trucks 
            starting January 1, 2015.  By January 1, 2023, nearly all 








                                                                  AB 1099
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            vehicles would need to have 2010 model year engines or 
            equivalent.  The regulation applies to nearly all privately 
            and federally owned diesel fueled trucks and buses and 
            privately and publicly owned school buses with a gross vehicle 
            weight rating greater than 14,000 pounds.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The ARB Statewide Truck and Bus Rule was initially 
          considered in 2008 and requires fleets that operate in 
          California to reduce diesel truck and bus emissions by 
          retrofitting or replacing existing engines.  Amendments were 
          considered and adopted in December 2010, to provide more time 
          for fleets to comply.  The regulations now require installation 
          of PM retrofits beginning January 1, 2012, and replacement of 
          older pre-1994 trucks starting January 1, 2015.  Trucks of model 
          year 1994 and 1995, starting January 1, 2016, will require 
          vehicles to have 2010 model year engines or equivalent.  By 
          January 1, 2023, nearly all vehicles would need to have 2010 
          model year engines or equivalent.  

          The regulation applies to nearly all privately and federally 
          owned diesel fueled trucks and buses and to privately and 
          publicly owned school buses with a gross vehicle weight rating 
          greater than 14,000 pounds.  

          According to the author's office, "The ARB move to create more 
          time for compliance with the Statewide Truck and Bus Rule helped 
          a number of California trucking companies that had yet to take 
          compliance steps.  However, the action by ARB also created an 
          opportunity for an increase in the number of pre-1996 vehicles 
          in California that would result in higher emissions and undercut 
          California businesses that took steps to comply with the 
          original rule.  AB 1099 attempts to close this loophole by 
          preventing a dramatic increase in the number of older, dirtier 
          trucks."  

           Impact upon current businesses  :  This bill is not intended to 
          impact California businesses that currently operate pre-1996 
          engine year trucks in California, provided that they are 
          continuously registered with DMV (as operational or planned 
          non-operational) though 2016, when the ARB Statewide Truck and 
          Bus Rule prohibits their continued operation in California.  For 
          out-of-state trucking companies operating in this state with 
          older pre-1996 vehicles, this bill will not affect their 








                                                                  AB 1099
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          businesses.  

           Interstate commerce issue  :  According to the California Trucking 
          Association (CTA), the sponsor of the bill, "motor carriers 
          operating in interstate commerce will still be able to purchase 
          a wide range of commercial vehicles, of varying model years and 
          applications, with which to conduct business.  These carriers 
          will continue to operate their vehicles pursuant to federal and 
          state regulations.  AB 1099 simply bans registration of pre-1996 
          engine year vehicles beginning on January 1, 2012."  

           Support  :  Writing in support of this bill, the CTA contends that 
          "the bill protects the emissions reduction gains of the revised 
          Statewide Truck and Bus Rule while respecting the investment of 
          companies that spent hundreds of thousands to millions of 
          dollars on newer, cleaner trucks in compliance with the original 
          rule.  Absent AB 1099, California risks allowing a dramatic 
          increase in the number of pre-1996 trucks that could be used to 
          undercut California companies that reduced their emissions 
          through retrofits and vehicle replacements and lead to increased 
          emissions that threaten attainment of California's air quality 
          goals."  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Trucking Association (sponsor)

           Opposition 
           
          None on file
           

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