BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 570 (Rubio)
          
          Hearing Date: 05/16/2011        Amended: 04/25/2011
          Consultant: Brendan McCarthy    Policy Vote: T&H 9-0, EQ 7-0
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          BILL SUMMARY: SB 570 requires the San Joaquin Valley Unified Air 
          Pollution Control District to administer a voluntary program to 
          replace high-polluting school buses, using interest earnings 
          from an existing grant program.
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                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Replacement of school  About $2,500                     Special 
          *
             busses

          * Traffic Congestion Relief Fund.
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          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Under current law, the San Joaquin Valley Unified Air Pollution 
          Control District (District) was appropriated $25 million to 
          award incentives to reduce emissions from heavy-duty diesel 
          engines operating in the District. Almost all of the initial 
          appropriation has been expended for those purposes. However, 
          approximately $2.5 million in interest earnings on the initial 
          appropriation were left over once the incentives were awarded. 
          Under current law, those interest earnings would have reverted 
          to the Traffic Congestion Relief Fund, from which the California 
          Transportation Commission allocates funding for a variety of 
          transportation projects.

          SB 23 (Cogdill, 2007) authorized the District to use the 
          remaining interest earnings to administer a program to 
          voluntarily exchange high-polluting automobiles for donated 
          replacement vehicles. The intention was for the District to 








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          partner with one or more private entities (such as an automobile 
          manufacturer or rental car company) that would be willing to 
          donate newer, less polluting automobiles for the exchanges. The 
          District has been unable to secure donated automobiles and hence 
          no exchanges have taken place.

          This bill authorizes the District to use the remaining interest 
          earnings, upon appropriation of the Legislature, to administer a 
          program to replace or retrofit high-polluting school buses 
          within the District, following guidelines established by the Air 
          Resources Board. This authority would sunset on January 1, 2014.

          By authorizing an additional use of those interest earnings, the 
          bill will reduce funds available in the Traffic Congestion 
          Relief Fund for other transportation projects.