BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 211
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 211
           AUTHOR:     Emmerson
           AMENDED:    March 14, 2011
           FISCAL:     Yes               HEARING DATE:     May 2, 2011
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CALIFORNIA GLOBAL WARMING SOLUTIONS ACT

            SUMMARY  :    
           
            Existing law  , under the California Global Warming Solutions 
           Act of 2006 (CGWSA):

           1) Requires the California Air Resources Board (ARB) to 
              determine the 1990 statewide greenhouse gas (GHG) emissions 
              level and approve a statewide GHG emissions limit that is 
              equivalent to that level, to be achieved by 2020.  ARB must 
              adopt regulations for reporting and verification of GHG 
              emissions, monitoring and compliance with the program, and 
              achieving GHG emission reductions from sources or 
              categories of sources by January 1, 2011, to be operative 
              on January 1, 2012, subject to certain requirements.  
              (Health and Safety Code �38500 et seq.).

           2) Requires the ARB on or before June 30, 2007, to publish and 
              make available a list of discrete early action GHG 
              reduction measures that can be implemented prior to the 
              above measures and limits.  On or before January 1, 2010, 
              ARB must adopt regulations to implement these early action 
              measures, and these regulations must be enforceable no 
              later than January 1, 2010.  (�38560.5).  An early action 
              measure regulation relating to reducing GHG emissions by 
              inflating tires to the recommended tire pressure rating was 
              effective September 1, 2010 (referred to as the 
              underinflated vehicle tire (UVT) regulation).  (17 Cal. 
              Code Regs. �95550).

           3) Requires ARB to prepare and approve a scoping plan for 
              achieving the maximum technologically feasible and 









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              cost-effective reductions in GHG emissions from sources or 
              categories of sources of GHGs by 2020.  ARB must evaluate 
              the total potential costs and total potential economic and 
              noneconomic benefits of the plan for reducing GHGs to the 
              state's economy, environment, and public health, using the 
              best economic models, emission estimation techniques, and 
              other scientific methods.  The plan must be updated at 
              least once every five years.  (Health and Safety Code 
              �38561).

           4) Authorizes the ARB to adopt GHG emission limits or emission 
              reduction measures prior to January 1, 2011, imposing those 
              limits or measures prior to January 1, 2012, or providing 
              early reduction credit where appropriate.  (�38563).

           5) Requires the ARB to monitor compliance with and enforce any 
              rule, regulation, order, emission limitation, emissions 
              reduction measure, or market-based compliance mechanism 
              adopted by the ARB.  Penalties for violations of the CGWSA 
              reference other general ARB penalty provisions, including 
              those authorizing violations to be enjoined.  (�38580).

            This bill  :

           1) Authorizes tire pressure gauges used to meet the tire 
              pressure regulations (#2 above) to be accurate within a 
              range of ? two pounds per square inch of pressure.

           2) Establishes an exception to CGWSA penalties (#5 above) for 
              violations of tire pressure regulations by setting civil 
              penalty of not more than $20 for the first offense and no 
              more than $50 for each subsequent offense, and prohibits an 
              automotive service provider (ASP) customer from being 
              subject to civil or criminal penalties for violations of 
              the regulation.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Penalties for 
              the Under Inflated Tires regulation far outweigh the 
              offense.  This bill will amend the law so that 
              'misinflating' tires would be non-criminal, minor 










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              infractions, and codify accuracy specifications for tire 
              pressure gauges used by automotive service providers."  The 
              author believes that "by codifying the accuracy 
              specifications, the industry will be given comfort that the 
              specifications cannot be altered at some future date 
              without prior legislative approval."

            2) Background on regulation  .  As noted above, under the CGWSA 
              ARB must adopt discrete early action measures by January 1, 
              2010, and these regulations must be enforceable no later 
              than January 1, 2010.  In addition to the underinflated 
              vehicle tire (UVT) regulation affected by SB 211, some 
              other early action measures include the low carbon fuel 
              standard, landfill methane capture, and shore power.

           According to ARB, the UVT regulation will annually eliminate 
              700,000 metric tons of GHG emissions; reduce fuel 
              consumption by 75 million gallons; and extend the average 
              tire's useful life by 4,700 miles.  ARB also notes the 
              regulation will save the average Californian $12 per year, 
              about 38% of vehicles on the road in the state have 
              severely underinflated tires (6 pounds under manufacturer's 
              recommendations) - which seriously reduce the vehicles 
              handling capabilities, reduce tread life, and force the 
              engine to work harder thus increasing the amount of fuel 
              needed.  According to Dan Zielinski, senior vice president 
              with the Rubber Manufacturers Association when the ARB 
              adopted the regulation, "Under-inflated tires waste fuel, 
              cause tires to wear out prematurely and increase drivers' 
              safety risk.  This regulation will help protect 
              California's environment, help consumers save money in fuel 
              and tire costs, and help Californians optimize vehicle 
              safety."

           Under the UVT regulation, an automotive service provider (ASP) 
              must:  a) check and inflate each vehicle's tires to the 
              recommended tire pressure rating when performing any 
              automotive maintenance or repair service, b) indicate on 
              the vehicle service invoice that a tire inflation service 
              was completed and the tire pressure measurements after the 
              services are performed, c) perform the tire pressure 
              service using a tire pressure gauge with a total 










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              permissible error no greater than ? two pounds per square 
              inch, d) have access to a Tire Inflation Reference that is 
              current within three years of  publication, and e) keep a 
              copy of the vehicle service invoice for a minimum of three 
              years and make the service invoice available to the ARB or 
              its authorized representative upon request.

           There are certain exceptions to the above requirements if:  a) 
              the tires are on a vehicle with a gross vehicle weight 
              rating over 10,000 lbs., b) the tires are determined by the 
              ASP to be unsafe, or c) the customer declines the check and 
              inflate service.  A customer may decline the check and 
              inflate service if the customer affirms one of the 
              following:  a) a tire pressure check and inflate service 
              was performed within the last 30 days, or b) a tire 
              pressure check and inflate service will be performed within 
              the next seven days.

            3) Background on UVT penalties  .  Penalties for violation of 
              the UVT regulation reference the CGWSA penalty authority - 
              which in turn references general ARB penalty authority, 
              which allows violations to be enjoined.  The general ARB 
              penalty authority also includes a misdemeanor subject to a 
              fine of not more than $1,000 or imprisonment in the county 
              jail for not more than six months, or both (�42400(a)); 
              various penalties for violations involving releases of 
              certain air pollutants; a civil penalty of not more than 
              $10,000 (�42402(b)); and a civil penalty of not more than 
              $35,000 for knowingly and intentional falsification of 
              documents (�42402.4).  ARB also has authority to develop a 
              method to convert a violation of any regulation adopted 
              under the CGWSA into the number of days of violation, where 
              appropriate (�38580(b)(3)).

           Establishing a penalty for a specific CGWSA regulation, as 
              proposed by SB 211, sets a precedent for setting various 
              penalties for other CGWSA requirements and decreases ARB 
              flexibility in setting penalties for violations.

            4) Outstanding issues  .  As noted above, current law already 
              provides civil penalty authority, despite a focus by the 
              author and supporters on criminal penalties also allowed 










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              under current law, and sets a precedent.  If the committee 
              believes that a civil penalty should be specified for the 
              UVT regulation, then higher penalties should be specified, 
              current penalties for knowingly and intentionally 
              falsifying records should not be affected, and ARB 
              authority to convert a violation into the number of days of 
              violation should be retained.

           SB 211 specifies that a customer is not subject to civil or 
              criminal penalties for violating the UVT regulation.  
              However, a customer is only affected under the UVT 
              regulation by declining to have inflation checked and 
              affirming that the tire has been checked in the last 30 
              days or will be checked in the next seven days.  
              Prohibiting a customer penalty has an unintended 
              consequence of enabling an ASP to simply have a customer 
              decline the service through a simple checkoff to avoid ASP 
              compliance with the regulation.  Therefore, lines 28 
              through 30 on page 3 should be stricken (in this case the 
              customer would only be subject to the more limited ASP 
              penalties - assuming there is even a way for ARB to 
              penalize a customer).

           Finally, if the Committee believes new civil penalties should 
              be set under this bill, all provisions of this bill should 
              sunset within a certain period (e.g., January 1, 2015), in 
              order for the Legislature to review how the penalty has 
              been implemented through information provided in an ARB 
              report to the Legislature.

            SOURCE  :        Senator Emmerson  

           SUPPORT  :       Automotive Service Councils of California, 
                          California Autobody Association, California New 
                          Car Dealers Association, California Retailers 
                          Association, California Tire Dealers 
                          Association, Les Schwab Tire Centers, Rubber 
                          Manufacturers Association, Tire Industry 
                          Association  

           OPPOSITION  :    None on file  











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