BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 1099
          SENATOR MARK DESAULNIER, CHAIRMAN                            
          AUTHOR: B. Lowenthal
                                                         VERSION: 4/6/11
          Analysis by:  Carrie Cornwell                  FISCAL:  yes
          Hearing date:  July 5, 2011




          SUBJECT:

          Commercial vehicles: emissions and registration

          DESCRIPTION:

          This bill prohibits the Department of Motor Vehicles (DMV) from 
          registering large commercial motor vehicles of a 1996 or older 
          model year, unless an owner registered the vehicle prior to 
          January 1, 2012 and an owner continuously registers it in 
          California after that date. 

          ANALYSIS:

          Existing law assigns the Air Resources Board (ARB) with primary 
          responsibility for the control of air pollution from vehicles.  
          To fulfill this duty, ARB establishes, through regulations, 
          requirements for diesel truck and bus fleets that operate in 
          California to reduce emissions.  

          In 2008, ARB adopted its Statewide Truck and Bus Rule to require 
          the retrofit or replacement of diesel truck and bus engines.  
          The rule then required that fleet owners begin retrofitting 
          vehicles in January 1, 2011 and replacing engines on affected 
          vehicles as of January 1, 2013.

          In December of last year, ARB amended the 2008 rule to provide 
          more time for fleets to comply.  Under these amendments, fleet 
          owners must retrofit vehicles to reduce particulate matter (PM) 
          emissions beginning January 1, 2012, a one-year delay, and must 
          replace pre-1996 trucks beginning January 1, 2015, a two-year 
          delay.  ARB undertook these amendments due to the economic 
          slowdown and resulting reduction in air emissions.

          Existing law requires that owners of commercial vehicles over 
          10,000 pounds gross vehicle weight rating (GVWR) apply to DMV 




          AB 1099 (B. LOWENTHAL)                                 Page 2

                                                                       


          and pay a weight fee, registration fee, and other fees to 
          register the vehicle.  DMV may not register, renew the 
          registration of, or transfer the registration of such a 
          commercial vehicle, however, if ARB or another authority has 
          cited the vehicle owner for that vehicle being out of compliance 
          with state air pollution laws, until the ARB determines that the 
          owner has cleared the violation.

           This bill  directs DMV to refuse to issue an original 
          registration for any commercial motor vehicle of a 1996 or older 
          model year with a gross vehicle weight rating of greater than 
          10,000 pounds and that requires specified commercial driver 
          licenses to operate.



          
          COMMENTS:

           1.Purpose  .  The author introduced this bill at the request of 
            the California Trucking Association to prohibit fleet owners 
            from bringing older, dirty trucks in from out of state that 
            would otherwise be subject to ARB's Truck and Bus Rule.  ARB's 
            decision to delay the implementation of this rule creates an 
            economic incentive for bringing older, dirtier trucks into 
            California that would have been prohibited under the original 
            2008 Truck and Bus Rule.  The sponsor notes that companies 
            that made multi-million dollar investments in newer, cleaner 
            trucks would then be at risk of being undercut by those using 
            the older, dirtier trucks purchased out-of-state for use in 
            California.  Additionally, the emissions reductions gained by 
            these investments in newer, cleaner trucks would be overcome 
            by the increased number of pre-1996 trucks that have higher 
            emissions. 

            Proponents assert that leaving a state-created economic 
            incentive to purchase older trucks in place jeopardizes the 
            goals of the Truck and Bus Rule and undermines the massive 
            investments of trucking companies who, in good faith, took 
            early action to comply with the rule.  This bill addresses 
            this loophole and protects the capital investments made and 
            environmental benefits gained by California trucking 
            companies.  Trucks registered in California by January 1, 2012 
            may continue to operate in the state provided that they meet 
            all applicable environmental and safety requirements and 
            maintain registration.




          AB 1099 (B. LOWENTHAL)                                 Page 3

                                                                       



           2.Cost of retrofits and replacements  .  Proponents report that 
            fleet owners will spend between $12,000 and $150,000 to 
            retrofit or replace vehicles they own in order to comply with 
            the rule.  Some estimate an economic advantage of as much as 
            $70,000 per vehicle to operators that continue to operate 
            pre-1996 model year commercial vehicles under ARB's December 
            amendments to the rule annually through 2015 when the rule now 
            mandates the replacement of pre-1996 vehicles.

           3.Just two years  .  By January 1, 2023, the Statewide Truck and 
            Bus Rule requires that nearly all of commercial diesel 
            vehicles have 2010 model year engines or the equivalent in 
            terms of emissions.  The rule 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, but are 
            phased in based on a schedule in the regulation.  ARB's 2010 
            amendments to the rule delayed that schedule by two years for 
            replacement of pre-1996 model year vehicles, creating for two 
            years additional demand for those older vehicles. 

           4.Amendment  .  It is unclear to which commercial motor vehicles 
            this bill applies.  The bill identifies vehicles that require 
            a certain commercial license to operate, but identifying the 
            driver does not necessarily identify the vehicle.  The author 
            or committee may wish to amend the bill so that it identifies 
            vehicles by weight instead, as follows:

               On page 2, delete lines 12-15 inclusive, and insert:

               (b) The department shall refuse registration for any 
               commercial motor vehicle subject to Section 4000.6 that is 
               of a 1996 or older model year and is either a single 
               vehicle with a gross vehicle weight rating of more than 
               26,000 pounds or a three-axle vehicle weighing over 6,000 
               pounds.

          5.  A bill may not be the best course.   Even with this amendment 
            in comment #4, there will be vehicles that, under this bill, 
            are exempt from the ARB's Truck and Bus Rule but that DMV 
            would still not register.  This is because the rule grants 
            exemptions to 13 groups of vehicles that are a small portion 
            of the total commercial vehicle fleet but are very difficult 
            to identify during the registration process.  These include, 
            among others, garbage collection vehicles, municipal vehicles, 




          AB 1099 (B. LOWENTHAL)                                 Page 4

                                                                       


            transit buses, emergency vehicles, drayage trucks, and 
            personal use trucks over 19,500 GVWR.  It would be nearly 
            impossible to define these vehicles sufficiently in statute 
            for registration purposes to exempt them from the provisions 
            of this bill.  It may be more appropriate, therefore, for the 
            proponents to seek another amendment to ARB's truck and bus 
            rule rather than to pursue statutory change through this bill.

          Assembly Votes:
               Floor:    76-0
               Appr: 17-0
               Trans:    14-0

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,                                             June 29, 
          2011)

               SUPPORT:  California Trucking Association (sponsor)

          
               OPPOSED:  California Dump Truck Owners Association (CDTOA)