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 22, 2011
SENATE VOTE : 39-0
SUBJECT : California Air Resources Board: mobile source
certification
SUMMARY : Requires the California Air Resources Board (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.
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.
SB 724
Page 2
6)Subjects any manufacturer or distributor who does not comply
with the emission standards or the test procedures adopted by
ARB 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 This bill was withdrawn from the
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 initially would have
streamlined and accelerated 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.
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
SB 724
Page 3
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
appropriate, grants CARB additional discretion to defer to
products previously certified by U.S. EPA."
Life after the Senate : SB 724, as introduced, was
substantially amended due to 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, while awaiting hearing in the
Assembly, 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).
ARB application processing : In a letter dated December 27,
2010, from ARB to Senator Dutton 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.
REGISTERED SUPPORT / OPPOSITION :
SB 724
Page 4
Support
(Listed below are organizations in support of the bill as
amended June 13, 2011)
Associated General Contractors of America
American Home Furnishing Alliance
California Chapter of the American Fence Contractors Association
California Dump Truck Association
California Motorcycle Dealers Association
California Moving and Storage Association
California Retailers Association
Construction Industry Air Quality Association
Flasher/Barricade Association
Independent Waste Oil Collectors and Transporters
Marin Builders Association
Move and Storage Association
National Marine Manufacturers Association
Outdoor Power Equipment Institute
Compliant Car Builders Association
Southern California Contractors Association
Engineering Contractors Association
California Grocers Association
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093