BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1099 (Lowenthal)
Hearing Date: 08/22/2011 Amended: 07/12/2011
Consultant: Mark McKenzie Policy Vote: T&H 6-3
_________________________________________________________________
____
BILL SUMMARY: AB 1099 would prohibit the Department of Motor
Vehicles (DMV) from registering commercial vehicles of a 1996 or
older model year with a gross vehicle weight rating of more than
26,000 pounds. The bill would provide an exception for
commercial vehicles registered prior to January 1, 2012, as long
as those vehicles are continuously registered or certified
nonoperational after that date, and for construction trucks that
have been granted an extension for compliance with specified
regulations.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
DMV Unknown, potentially significant
costsSpecial*
to identify vehicles that have been
granted
ARB extension. (see staff comments)
____________
* Motor Vehicle Account
_________________________________________________________________
____
STAFF COMMENTS: This bill may meet the criteria for referral to
the Suspense File.
Existing law requires that owners of commercial vehicles gross
vehicle weight rating (GVWR) of over 10,000 pounds apply to DMV
and pay a weight fee, registration fee, and other fees to
register the vehicle. DMV may not register a commercial
vehicle, however, if the vehicle owner has been cited for that
vehicle being out of compliance with state air pollution laws,
until the State Air Resources Board (ARB) determines that the
violation has been cleared.
The ARB Truck and Bus Regulation requires fleets that operate in
AB 1099 (Lowenthal)
Page 1
California to reduce diesel truck and bus emissions by
retrofitting or replacing existing engines. As recently
amended, the rule requires fleets to install the best available
particulate matter filter on 1996 model-year and newer engines
beginning January 1, 2012 (a one-year delay from the original
rule), and to replace these vehicles eight years later. Trucks
with 1995 model-year and older engines would be replaced
starting 2015 (a two-year delay from the original rule). By
2023, all trucks and buses must have 2010 model-year or newer
engines, with few exceptions.
AB 1099 would prohibit DMV from registering 1996 and older
commercial vehicles with a GVWR of over 26,000 pounds, unless
the vehicle was registered prior to the bill's effective date
and is continuously registered or certified nonoperational after
that date. The bill would also provide an exception for
construction trucks that have received an extension for
compliance with the Truck and Bus Rule and the owner presents
DMV with sufficient evidence of that extension.
ARB indicates that it will only issue a total of 9,000
extensions and only 10 per fleet, but it will not issue any
documentation or affidavit certifying that a particular vehicle
has been provided with an extension. As such, the bill creates
complications for vehicle owners who would need to show evidence
of an extension, and for DMV staff who would be unable to
register construction trucks that may have been granted an
extension. In addition, DMV staff would be unable to identify
what types of vehicles qualify for the extension as a
construction truck under ARB rules.
If ARB provided vehicle owners that are granted an extension
with verifiable evidence, DMV costs to determine which vehicles
qualify for an exemption to registration refusal would be
relatively minor. The lack of sufficient evidence provided by
ARB increases the complexity of implementation for DMV and
increases administrative costs for determining whether a vehicle
has been granted an extension which could require programming.
As written, the bill would likely result in DMV staff
inadvertently registering vehicles that should not qualify for
an exemption and denying registration to those that should be
eligible. In order to set clear procedures, the bill may
require DMV to adopt regulations. DMV costs to effectively
administer this bill are unknown but could exceed $150,000.
AB 1099 (Lowenthal)
Page 2
Staff notes that the bill requires DMV to deny registration to
specified vehicles of a 1996 or older model year, but the ARB
Truck and Bus Regulation distinguishes between vehicles of a
1996 or newer, or 1995 or older model year. Staff recommends
that the bill be amended to refer to commercial motor vehicles
of a 1995 or older model year, rather than 1996 or older.