BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 901
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               SB 901 (Steinberg) - As Introduced:  February 18, 2012 

          Policy Committee:                             
          TransportationVote:13-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill renames the Enhanced Fleet Modernization Program 
          (EFMP) and changes program guideline requirements.  
          Specifically, this bill:

          1)Names the program the Vehicle Retirement Program.

          2)Requires the program to provide for the retirement of the 
            highest polluting passenger vehicles, rather than high 
            polluting passenger vehicles.

          3)Requires the program to give priority to vehicles registered 
            in air basins out of attainment with federal air quality 
            standards.

           FISCAL EFFECT  

          By changing the guidelines by which program funds are 
          distributed, the bill potentially alters the geographic location 
          and specific recipients of EFMP funds.  Because the changes made 
          by the bill are minor, its effect on program awards should be 
          marginal.

           COMMENTS  

           1)Rationale.   The author describes the EFMP as an important part 
            of the state's plan to attain federal air quality standards.  
            The author contends focusing the program on the highest 
            polluting vehicles registered in the state's nonattainment 
            areas will more effectively use program funds.









                                                                  SB 901
                                                                  Page  2

           2)Background.   The Enhanced Fleet Modernization Program, created 
            by AB118 ((N��ez), Chapter 750, Statutes of 2008), is a 
            voluntary incentive program to fund clean vehicle and 
            equipment projects, research on biofuels production and the 
            air quality impacts of alternative fuels, and workforce 
            training.  Under the program, which is administered by the 
            Bureau of Automotive Repair (BAR), owners of certain 
            higher-polluting vehicles in the areas of the state with the 
            worst air quality may receive $1,000, or $1,500 for low-income 
            owners, to permanently retire their vehicles.  A $1 vehicle 
            registration fee provides approximately $30 annually through 
            2015 to fund the EFMP.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081