BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 570
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Rubio
                                                         VERSION: 3/21/11
          Analysis by:  Jennifer Gress                   FISCAL:  yes
          Hearing date:  April 12, 2011



          SUBJECT:

          San Joaquin Valley Unified Air Pollution Control District:  
          Lower-Emission School Bus Program

          DESCRIPTION:

          This bill repeals the requirement that the San Joaquin Valley 
          Unified Air Pollution Control District's administer a high 
          polluter vehicle replacement program and instead requires the 
          District to administer a voluntary program to replace 
          high-emitting school buses within their jurisdiction. 

          ANALYSIS:

           San Joaquin Valley Unified Air Pollution Control District
           The San Joaquin Valley Unified Air Pollution Control District is 
          a local air district responsible for achieving and maintaining 
          state and federal ambient air quality standards within its 
          jurisdiction.  To achieve these standards, existing law broadly 
          authorizes air quality management districts and air pollution 
          control districts (air districts) to adopt and enforce rules and 
          regulations to reduce or mitigate emissions from stationary 
          sources (e.g., factories, power plants), indirect sources (e.g., 
          commercial or residential development), and areawide sources of 
          air pollution (e.g., road dust, fires).  The jurisdiction of the 
          San Joaquin Valley Unified Air Pollution Control District 
          encompasses eight counties in the San Joaquin Air Basin, 
          including San Joaquin, Stanislaus, Merced, Madera, Fresno, 
          Kings, Tulare, and a portion of Kern.  
           
          Lower-Emission School Bus Program
           In 2000, the Legislature appropriated $50 million to the Air 
          Resources Board (ARB) to establish a lower-emission school bus 
          program to reduce school children's exposure to diesel 
          particulate matter emissions.  ARB adopted guidelines for the 
          program that established criteria for the purchase of new school 
          buses and the retrofit of existing in-use school buses.  In 




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          subsequent budget years, the Legislature appropriated additional 
          funding and ARB revised its guidelines as necessary.  

          In 2006, voters approved Proposition 1B, the the Highway Safety, 
          Traffic Reduction, Air Quality, and Port Security Bond Act of 
          2006, which, among other items, authorized $200 million for 
          replacing and retrofitting school buses.  To implement this 
          provision of Proposition 1B, the Legislature passed and the 
          Governor signed SB 88 (Committee on Budget and Fiscal Review), 
          Chapter 181, Statues of 2007, which established specific 
          criteria for the replacement and retrofit of school buses, 
          including the following:

           All school buses with a 1976 or earlier model year in 
            operation must be replaced.

           Remaining funds shall be apportioned to local air districts 
            based on the number of school buses with 1977 to 1986 model 
            years that are in operation within each district.

           Each air district shall determine the percentage of its 
            allocation to spend between the replacement of school buses 
            with 1977-1986 model years and the retrofit of schoolbuses of 
            any model year. 

           Of the funds spent by an air district for the replacement of 
            school buses, an air district must replace the oldest school 
            buses of model years 1977 to 1986 first. Of the funds spent by 
            an air district for the retrofit of school buses, an air 
            district must retrofit the most polluting school buses first.

          In order to carry out the provisions of SB 88, ARB revised the 
          guidelines for the Lower-Emission School Bus Program in 2008.  
          These guidelines designate air districts as the implementing 
          agencies responsible for soliciting requests for funding from 
          school districts, executing funding agreements with successful 
          applicants, and ensuring that funding recipients comply with 
          program requirements.  Each air district is the implementing 
          agency for areas within its jurisdiction, except the San Joaquin 
          Valley Unified Air Pollution Control District, which is also the 
          implementing agency for the following air districts outside its 
          jurisdiction: Amador, Antelope, Colusa, Feather River, Lake, 
          Lassen, Mendocino, Modoc, Mojave, San Luis Obispo, Santa 
          Barbara, Siskiyou, and Tehama.

           Transportation Congestion Relief Program (TCRP) and the San 




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          Joaquin Valley's Vehicle Replacement Program
           The Traffic Congestion Relief Act of 2000, established by AB 
          2928 (Torlakson) and SB 1662 (Burton), created the 
          Transportation Congestion Relief Program (TCRP) and committed 
          $6.4 billion to specific projects designated in law.  One such 
          program was the San Joaquin Valley Emergency Clean Air 
          Attainment Program, which provided $25 million to the San 
          Joaquin Valley Unified Air Pollution Control District for 
          incentives to reduce emissions from heavy-duty diesel engines 
          operating within its jurisdiction.  Eligible projects include 
          the retrofitting, repowering, or replacing of older heavy-duty 
          diesel vehicles or engines.  

          The vast majority of funds for this program have been expended.  
          What remains unspent is the interest that accrued over time.  
          This interest would have reverted to the California Department 
          of Transportation except that SB 23 (Cogdill), Chapter 634, 
          Statutes of 2007, authorized the San Joaquin Valley Unified Air 
          Pollution Control District to use it to administer a vehicle 
          replacement program that that bill established.  Under that 
          program, a vehicle owner whose vehicle failed its smog check 
          inspection may replace his or her vehicle with a smog-compliant 
          vehicle that had been donated to the district for the purposes 
          of this program. The program sunsets on January 1, 2014.

           This bill  repeals the requirement that the San Joaquin Valley 
          Unified Air Pollution Control District implement a high polluter 
          vehicle replacement program and instead requires the air 
          district to administer a voluntary program to replace high 
          emitting school buses in the San Joaquin Valley.  In doing so, 
          the bill requires the air district to follow ARB's guidelines 
          for the Lower-Emission School Bus Program and to give priority 
          to model year 1987 and older school buses.
          
          COMMENTS:

           1.Purpose  .  The author explains that school buses serve a vital 
            need in the state by transporting students to and from school. 
             School buses built prior to 1987, however, are one of the 
            highest emitting mobile sources of pollution.  In the Central 
            Valley alone, the author notes that there are over 100 school 
            buses in operation that were manufactured prior to 1987 and 
            more than 25 percent of school age children in Kern County has 
            been diagnosed with asthma, a much higher percentage than most 
            counties in the state.  Requiring the San Joaquin Valley 
            Unified Air Pollution Control District to administer a program 




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            to replace these pre-1987 school buses will help to reduce 
            school children's exposure to harmful pollutants and improve 
            air quality in communities throughout the Central Valley. 

           2.Status of the vehicle replacement program  .  According to the 
            San Joaquin Valley Unified Air Pollution Control District, in 
            order for the vehicle replacement program to be successful, it 
            needed a corporate entity, such as a vehicle manufacturer, 
            rental car company, or large fleet, to donate late model 
            vehicles to be traded.  During the development of SB 23 
            (Cogdill), a number of such entities expressed interest in the 
            program.  With the economic downturn, however, Senator 
            Cogdill's office and the air district were unable to find an 
            entity willing to donate vehicles.  Without any donations, no 
            vehicles were replaced.  

           3.Amount of interest and number of buses to be replaced  .  There 
            is approximately $2.5 million in interest that would be 
            available to replace school buses.  There are a total of 2,768 
            school buses in the San Joaquin Air Basin, 115 of which were 
            manufactured prior to 1987.  Given the $140,000-per-bus cost 
            cap established in ARB's 2008 Lower-Emission School Bus 
            Program guidelines for bus replacements, the air district 
            could replace about 17 school buses.  

           4.Sunset date  .  This bill maintains the sunset date originally 
            established in SB 23 (Codgill), January 1, 2014, thereby 
            making the program operational for up to two years.
                
            5.Amendments  .  The author or committee may wish to consider the 
            following amendments:

            Allow for retrofits.  The intent of the bill is to replace as 
            many pre-1987 buses as possible given the age and amount of 
            pollution these buses emit. Because the amount of money 
            available is small, it is likely that the air district would 
            expend the full $2.5 million on replacing this population of 
            buses.  In the event this is not the case, however, the 
            committee may wish to give the air district authority to fund 
            retrofit projects.  Retrofitting a bus is often a more 
            cost-effective way to reduce emissions than replacing it and 
            limited funds could go further.  

            Specifying which guidelines.  Because ARB's guidelines have 
            evolved over time, the committee may wish to consider an 
            amendment to identify which guidelines the air district must 




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            follow when administering its program, specifying the 2008 
            guidelines to implement the school bus provisions of 
            Proposition 1B.

            Reporting.  The bill maintains the reporting requirement 
            established by SB 23 (Cogdill), but that report is due January 
            1, 2013, at the mid-point of the program.  The committee may 
            wish to consider an amendment to require the air district to 
            report to the Legislature a second time when the program 
            sunsets on January 1, 2014.

           6.Double-referral  .  This bill is double-referred to this 
            committee and the Committee on Environmental Quality.  If this 
            committee passes the bill, it will then be referred to the 
            Environmental Quality Committee.
          

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,
                     April 6, 2011)

               SUPPORT:  Coalition for Clean Air
                         Kings County Unified School District
                         San Joaquin Valley Air Pollution Control District
          
               OPPOSED:  None received.
























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