BILL ANALYSIS �
SB 724
Page 1
Date of Hearing: June 20, 2011
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 724 (Dutton) - As Amended: June 13, 2011
SENATE VOTE : 39-0
SUBJECT : California Air Resources Board: mobile source
certification
SUMMARY : Revises procedures by which the California Air
Resources Board (ARB) certifies on- and off-road vehicles,
engines, and equipment. Specifically, this bill :
1)Requires that ARB, within 30 working days of receipt of an
application for certification of a new, a carryover, or a
partial carryover vehicle, engine, or equipment family, inform
the applicant in writing if the application is complete or, it
is not complete, the specific information required to make it
complete.
2)Requires that ARB, within 15 working days of receipt of
additional requested information, inform the applicant in
writing either that the additional information is sufficient
to make the application complete or that the application
remains deficient, specifying the information required to make
it complete.
3)Requires ARB to approve or disapprove an application
certification of a new on- or off-road vehicle, engine, or
equipment family within 90 calendar days after it deems an
application to be complete.
4)Requires, for carryover on- or off-road vehicles, engines, or
equipment families, ARB to approve or disapprove an
application within 30 calendar days after it deems an
application to be complete. A carryover vehicle, engine, or
equipment family refers to a vehicle, engine, or equipment
family whose application for certification differs from that
which was certified in the previous model year in model-year
designation only.
5)Requires, for partial carryover for on- or off-road vehicles,
engines, or equipment families, ARB to approve an application
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within 60 calendar days after it deems an application to be
complete. A partial carryover vehicle, engine, or equipment
family refers to a vehicle, engine, or equipment family that
is certified to the same emission standard and certification
category as the previous model year when there has been no
change to the applicable emission standards and requirements
and no change to emissions performance due to changes in
emissions-related components, engine configurations,
calibrations, or designs.
6)Authorizes ARB to request the applicant to clarify, amplify,
or otherwise supplement the information required for the
application. The number of days it takes an applicant to
respond to a request for additional information shall not be
included when determining a deadline for ARB to act on an
application.
7)Authorizes an applicant to file, in writing, a complaint with
ARB's ombudsman if the applicant believes ARB has not met the
deadlines prescribed by this bill. The ombudsman must
determine whether or not the complaint has merit within 30
days of receipt. If the ombudsman determines that ARB has not
met the deadlines and the application is complete, the
ombudsman shall inform the ARB executive officer who shall
ensure that the application is approved or disapproved within
30 days from the date it has been determined that the
deadlines have not been met.
8)Provides that if an application for certification was prior to
the operative date of this bill and the application was for
the 2012 model year, ARB must notify the applicant whether the
application is complete within 30 working days of January 1,
2012 and must approve or disapprove the application within 90
calendar days of the date the application was deemed complete.
9)Provides that if an application for certification was filed
prior to the operative date of this bill and the application
was for the 2011 model year or earlier, ARB may disapprove the
application. If ARB disapproves an application, it must
notify the applicant of that fact.
10)Requires, by July 1, 2012, ARB to create a separate, short
form certification application template for a 2014 model year
and later carryover vehicle, equipment, or engine. Requires
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the application form to contain a section for the applicant to
certify, under penalty of perjury, that any change in an
emissions-related component part has not resulted in an
increase in emissions from the prior certified model year.
11)Authorizes ARB to approve certification of a new motor
vehicle or engine, including off-road equipment and engines
and aftermarket parts, for any model year that has been
certified by the federal Environmental Protection Agency (EPA)
without additional testing, if the state emissions standards
for certification of that vehicle, equipment, engine, or part
are no more stringent than the federal standards on which the
federal EPA certification was based.
EXISTING LAW :
1)Grants ARB primary responsibility for the control of mobile
source air pollution, and broadly authorizes ARB to adopt
rules for the reduction of emissions and the specification of
fuel composition.
2)Authorizes ARB to certify new motor vehicles and new motor
vehicle engines.
3)Requires ARB to adopt and implement emission standards for new
motor vehicles and engines for the control of emissions from
new motor vehicles that ARB finds to be necessary and
technologically feasible.
4)Prohibits a new motor vehicle or new motor vehicle engine from
being certified by ARB unless the vehicle or engine meets its
adopted emission standards and test procedures.
5)Requires a written communication from ARB alleging that an
administrative or civil penalty will be, or could be, imposed
either by it or another party, including the California
Attorney General, for a violation of air pollution law, to
contain specified information.
6)Subjects any manufacturer or distributor who does not comply
with the emission standards or the test procedures adopted by
the state board to a civil penalty of $50 for each vehicle
that does not comply with the standards or procedures.
FISCAL EFFECT : Unknown. This bill was withdrawn from the
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Senate Appropriations Committee pursuant to Senate Rule 28.8.
COMMENTS : Current law charges ARB with primary responsibility
for the control of mobile source air pollution, and broadly
authorizes it to adopt rules for the reduction of emissions and
the specification of fuel composition. Under this authority,
ARB regulates on-road and off-road vehicles, engines, and
equipment that are both new and in-use. Prior to offering a
regulated product for sale in California, the manufacturer must
have its product certified by ARB to ensure that the product
meets ARB's emission standards and requirements. If it does,
ARB issues an Executive Order for the product indicating the
product has been certified and allowing it to be placed for sale
in the state. A manufacturer must obtain an executive order for
each model year of each vehicle, engine, or equipment it wishes
to sell.
According to the author, this bill would streamline and
accelerate the ARB engine process by creating a short-form
application for "carry-over" engines (previously approved
engines that have not changed from year to year) and partial
carry-over engines. To promote efficiency and avoid
duplication, this bill would grant ARB the authority to rely on
test data in federal EPA certification applications when the
California and federal standards are the same.
Further, the author states that in order to sell the cleanest
products that meet state emission standards and requirements,
manufacturers, retailers, and dealers need ARB to certify their
products in a timely manner. The author asserts, however, that
ARB does not currently process certification applications
efficiently and, in many cases, several months pass without ARB
providing any response to an applicant. Manufacturers are
surprised to learn 90 days after an application was submitted
that additional information is needed and that they are
essentially at "square one." The author further asserts that
ARB regulations and guidance contain inconsistent timelines for
processing applications, creating unnecessary confusion for
applicants.
Many supporters of this bill echo the sentiments of the author
(above) and add that this bill "requires basic due process
protections into the application process by requiring CARB to
timely notify applicants whether their applications are complete
or not, and then to seek additional information, and where
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appropriate, grants CARB additional discretion to defer to
products previously certified by U.S. EPA."
Writing in opposition to this bill, a number of
environmental/clean air advocates contend that "Strong
implementation of CARB's rules to ensure that combustion engines
comply with adopted emission standards is a critical component
of the state's clean air strategy. SB 724 would impose changes
in the engine evaluation and compliance process that negatively
impact this important CARB program without providing any clear
rational for the changes. While the American Lung Association
in California (and others) had dropped their earlier opposition
to SB 724 based on the May 10, 2011 version of this bill that
included amendments agreed to in the Senate Environmental
Quality Committee. The May 10, 2011 version simply required the
CARB to respond within 30 days as to completeness, or lack
thereof, of an engine certification application. However, based
on the most recent amendments, we must re-state our strong
opposition to this bill."
Life after the Senate : SB 724, as introduced, was
substantially amended amidst Senate Transportation and Housing
Committee and the Senate Environmental Quality Committee staffs
concerns as well as issues raised by numerous environmental and
clean air advocacy groups. As amended, this bill passed the
Senate with unanimous vote. However, shortly after passage, the
Senate-approved bill was disregarded as the author amended the
bill reverting it basically to the troubled, introduced version
without the collaboration or consent of the Senate policy
committees. Consequently, a meeting was held with affected
Senate and Assembly policy committees, ARB, and the bill's
sponsor. After that meeting, the author's office indicated that
they would restore the bill to the version as passed by the
Senate (May 10, 2011 version).
Accordingly, as proposed to be amended, SB 724 would require
ARB, within 30 working days after receipt of an application for
certification of a new, a carryover, or a partial carryover
on-road or off-road vehicle, engine, or equipment family, as
defined, to inform the applicant, in writing, either that the
application is complete and accepted for filing, or that the
application is deficient, identifying the specific information
required to make the application complete.
In a letter dated December 27, 2010, from ARB to Senator Dutton
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and Senator Correa, ARB addressed specific questions regarding
its certification process. Some key points are worth
highlighting. The letter indicates that ARB received
approximately 9,000 certification applications between 2008 and
2010 and executive orders (EOs) were issued within 90 days for
96% of completed applications. A common reason why ARB is not
able to act on an application within 90 days is that the
applicant has not provided all of the information necessary for
ARB to complete its review. ARB states, "In all instances, ARB
staff continued to work with the applicants until the
applications were completed or until the applicant chose not to
further pursue an EO."
With regard to carryover and partial carryover certification
applications, ARB estimates that approximately 15% of
certifications are for carryover vehicles, engines, or equipment
and approximately 50% are for partial carryovers. An
application for a partial carryover takes approximately 50% less
time to process compared to an application for a new product.
This bill, as proposed to be amended, does not have opposition.
REGISTERED SUPPORT / OPPOSITION :
Support
Californians for Enforcement Reform and Transparency (sponsor)
American Home Furnishing Alliance
Associated General Contractors of America
Associates Environmental
California Chapter of the American Fence Contractors Association
California Dump Truck Owners Association
California Grocers Association
California Fence Contractors' Association
California Manufacturers and Technology Association
California Motorcycle Dealers Association
California Moving and Storage Association
California Retailers Association
Clean Fleets Coalition
Compliant Car Builders Association
Construction Industry Air Quality Association
Delta Liquid Energy
Engineering Contractors Association
Flasher/Barricade Association
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Fuel Technologies Plus
IMPCO
Independent Waste Oil Collectors and Transporters
Industrial Truck Association
LEHR Incorporated
Marin Builders' Association
Motorcycle Industry Council, Inc.,
Moving and Storage Association
National Marine Manufacturers Association
North American Repower
Outdoor Power Equipment Institute
Recreational Off-Highway Vehicle Association
Sand Car Manufacturers Association
Southern California Contractors Association
Specialty Vehicle Institute of America
Toyota
Western Propane Gas Association
Opposition
American Lung Association in California
Bay Area Air Quality Management District
Breathe California
Environmental Defense Fund
Sierra Club California
Union of Concerned Scientists
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093