BILL ANALYSIS �
AB 2042
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Jerry Hill, Chair
2013-2014 Regular Session
BILL NO: AB 2042
AUTHOR: Levine
AMENDED: June 9, 2014
FISCAL: Yes HEARING DATE: June 25, 2014
URGENCY: No CONSULTANT: Rebecca Newhouse
SUBJECT : AIR QUALITY IMPROVEMENT PROGRAM: CLEAN VEHICLE
REBATE PROGRAM
SUMMARY :
Existing law creates the Air Quality Improvement Program
(AQIP), to be administered by the California Air Resources
Board (ARB) in consultation with local air districts, to
provide competitive grants to fund projects to reduce criteria
air pollutants, improve air quality, and support research to
improve the air quality impacts of alternative fuels and
vehicles, vessels, and equipment technologies. (Health and
Safety Code (HSC) �44274).
This bill :
1) Authorizes ARB to establish a wait list of eligible project
applicants, on a first-come-first-served basis, if there are
insufficient funds appropriated by the Legislature for the
Clean Vehicle Rebate Program (CVRP) to provide rebates to
all eligible applicants within that fiscal year.
2) Requires ARB to disburse rebates to the applicants on the
wait list if the Legislature appropriates additional moneys
for the project for that fiscal year or for the fiscal year
following that fiscal year.
COMMENTS :
1)Purpose of Bill . According to the author, "Under current
law, the California Air Resources Board does not have the
explicit authority to create a waitlist. AB 2042 seeks to
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give them that authority to ensure the continued viability of
the rebate program and give Californians who buy these
vehicles some reassurance that they will eventually receive
the rebate. As we know, the rebate program has been
instrumental in accelerating the market for the cleanest
vehicles, which is helping California to achieve its clean
air goals."
2)AQIP and CVRP Background. The Air Quality Improvement Program
(AQIP), administered by ARB in consultation with local air
districts, and funded through various vehicle-related fees,
provides competitive grants to fund projects to improve the
air quality impacts of alternative fuels and vehicles,
vessels, and equipment technologies. Pursuant to their
authority under AQIP, ARB has developed several programs
including the Clean Vehicle Rebate Project (CVRP),
administered by ARB's contractor, the California Center for
Sustainable Energy. This program provides rebates of up to
$2,500 for purchasing or leasing a new zero-emission vehicle
(ZEV) or plug-in hybrid electric vehicle.
ARB has issued about $100 million for more than 50,000
rebates since the program began in March 2010. ARB notes
that, currently, about 2,500 rebates are being processed each
month totaling between $6 million and $7 million and demand
has been picking up.
3)How much money ? The 2013-14 Budget Act provided $15 million
for rebates through ARB's Clean Vehicle Rebate Project. AB
101 (Budget Committee) Chapter 354, Statutes of 2013,
provided another $24.55 million and SB 359 (Corbett), Chapter
415, Statutes of 2013, provided yet another $20 million as a
loan from the Vehicle Inspection Repair Account for a total
of $60 million for the 2013-15 year; a fourfold increase from
2012. These influxes were due in part to the fact that by
the fall of 2013, demand for CVRP rebates had outstripped the
available funding and interrupted the awarding of rebates.
The 2014-2015 Budget Act, SB 852, significantly augments
AQIP's current vehicle-fee funding source by appropriating
$200 million from cap-and-trade auction proceeds for low
carbon transportation. The draft 2014-2015 fiscal plan for
AQIP includes a staff proposal for $5 million from the air
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quality improvement fund, and $111 million from cap-and-trade
auction proceeds for the CVRP.
4)Changes to the CVRP . Staff is proposing several changes to
the CVRP program, including reducing the incentive amounts by
$500 dollars for both battery electric vehicles (BEVs) and
plug-in hybrid electric vehicles (PHEV), to be $2000 and
$1000 respectively. ARB staff is also proposing new
light-duty vehicle pilot projects to help consumers in
disadvantaged communities access these new technologies.
5)The Wait List . On March 28, 2014, ARB announced the formation
of a rebate waiting list of up to a total of $5 million for
CVRP incentive funds. The announcement also stated that, in
order to accommodate expected market growth into the summer,
ARB staff also plan to propose expanding the waiting list by
an additional $25 million at the Board's April meeting.
ARB states that consumers placed on the waiting list will
receive their rebates at the end of September. Eligibility
criteria and rebate amounts for fiscal year 2013-14, which
ends June 30, will apply to these rebates.
6)Is this bill needed ? The CVRP was not created through
statute, but instead, was developed and initiated by the ARB
pursuant to the ARB's existing statutory authority to provide
funding for projects to reduce criteria air pollutants and
improve air quality through AQIP. Therefore, no statutory
authorization is needed to allow ARB to develop a waitlist
for CVRP-ARB already has the authority to amend this program.
In fact, ARB has already initiated a wait list to accommodate
applicants who applied for a rebate but were not able to
obtain one due to insufficient CVRP funds.
It is unclear why this bill is necessary.
7)Double Referral to Senate Transportation and Housing
Committee . If this measure is approved by the Senate
Environmental Quality Committee, the do pass motion must
include the action to re-refer the bill to the Senate
Transportation and Housing Committee.
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SOURCE : Author
SUPPORT : None on file
OPPOSITION : None on file