(1)Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

This bill would require the State Air Resources Board, no later than July 1, 2019, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified.

(2)This bill would incorporate additional changes to Section 44125 of the Health and Safety Code proposed by AB 630 to be operative only if this bill and AB 630 are enacted and this bill is enacted last.

(1)Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

This bill would require the State Air Resources Board, no later than July 1, 2019, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified.

(2)This bill would incorporate additional changes to Section 44125 of the Health and Safety Code proposed by AB 630 to be operative only if this bill and AB 630 are enacted and this bill is enacted last.

(1)Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

This bill would require the State Air Resources Board, no later than July 1, 2019, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified.

Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

This bill would require the State Air Resources Board, no later than March 2018, July 1, 2019, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified.

Existing law creates the enhanced fleet modernization program to provide compensation for the retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters.

This bill would require the State Air Resources Board, no later than March 2018, to update the guidelines for the enhanced fleet modernization program to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans, as specified.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 188

Author:(Salas)

As Amended Ver:September 8, 2017

Majority vote

Original Committee Reference: TRANS.

SUMMARY: Requires the California Air Resources Board (ARB), no later than July 1, 2019, to update the Enhanced Fleet Modernization Program (EFMP) guidelines to allow certain light-duty trucks to qualify as replacement vehicles under the program, provided that the vehicles meet the program's fuel efficiency standard for minivans and that a high-polluting light-duty pickup truck is retired by the purchaser.

The Senate amendments add provisions from AB 630 (Cooper) of the current legislative session, to avoid chaptering out conflicts.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. One-time ARB contract costs of approximately $100,000 in 2017-18 to update minivan and pickup truck fuel economy standards and ensure the program's continued achievement of air quality benefits and greenhouse gas emission reductions.
2. Minor and absorbable ARB costs in 2018-19 to update EFMP guidelines.

COMMENTS: California has some of the most severe air pollution problems in the country and the South Coast and San Joaquin air basins, which contain over half of the state's population, are designated as extreme non-attainment areas. Nationally and statewide, the transportation sector is responsible for a major portion of air pollution, and in California, the transportation sector accounts for approximately 80% of hazardous emissions. According to ARB, 75% of vehicular air pollution in the state is caused by just 25% of the fleet.

To help get older, high-polluting cars off of California roads, the Consumer Assistance Program (CAP) was created to accelerate voluntary retirement of high-polluting vehicles and provide monetary incentives to vehicle owners to participate. Under this program owners who scrap their vehicles that have failed their last smog test are given $1,000 ($1,500 for low income consumers).

To ensure that as many as possible older, high polluting cars are replaced with cleaner cars, EFMP was also established. This program, which is administered by ARB and Bureau of Automotive Repair, provides for the voluntary retirement of passenger vehicles and light- and medium-duty trucks that are high polluters. Unlike CAP, however, EFMP allows vehicles to be retired without first having to fail a smog test, and offers a $1,000 voucher ($1,500 for low-income owners) to retire and replace a high-polluting vehicle.

EFMP guidelines, developed by ARB, dictate which types of cars are eligible replacement vehicles. Generally, replacement vehicles eligible under EFMP include vehicles that are eight years old or newer and meet a specified fuel economy rating. For example, this year, the oldest qualifying vehicle under EFMP would be 2010 models and with a 22 mile per gallon (mpg) fuel economy rating. Qualifying 2011 model year vehicles, however, must have a 25 mpg fuel economy rating, with the mpg increasing annually per CAFE standards.

When the EFMP guidelines were established, ARB set a lower fuel economy scale for minivans seemingly in consideration that these vehicles are more commonly "family cars" and typically carry a greater number of passengers. If an EFMP participant, for example, opted to replace their high-polluting car with minivan, a qualifying 2010 model year minivan would need to meet a 19 mpg fuel economy rating.

In addition to EFMP, ARB has also initiated the Plus-Up program as part of the Charge Ahead Initiative of 2014 to enhance its retire and replace efforts in extreme non-attainment areas. Plus-Up, which includes two established programs, one in the San Joaquin Valley Air District and the other in the South Coast Air District, offers rebates over and above EFMP to encourage the purchase of cleaner cars (that meet EFMP requirements) or provide qualifying individuals with public transit vouchers.

The author points out that in the agriculturally-oriented Central Valley in particular, many residents use light-duty pickup trucks for work purposes. He notes that many of these vehicles are driven by low- and moderate-income individuals who qualify for retire and replace programs such as EFMP and Plus-Up. However, the author asserts that because of the fuel economy rating requirements established in the EFMP guidelines, these individuals are no longer able to replace their dirty light-duty pickups in-kind (with another pickup) because as of this year there are no pickups available that meet the more stringent fuel economy ratings established in the EFMP guidelines. The author contends that not being able to replace a pickup truck in-kind keeps many individuals from participating in the program and, instead, these individuals continue to drive their existing vehicles to the detriment of California's air quality and emissions reduction goals.

If pickup trucks are allowed to meet the same standard set for minivans in EFMP, there would be a number of these light-duty pickup trucks available as replacement vehicles and, as a result, more individuals would utilize the program. In the 2010 model year, if the minivan fuel economy rating were applied, approximately 10 light-duty pickups would qualify as replacement vehicles under the program.

Committee comments: The goal of EFMP is to replace high-polluting cars with cleaner ones to improve air quality and reduce emissions and nowhere is this more important than in California's severe non-attainment areas. While it stands to reason that replacing dirty cars with the cleanest possible vehicles is best, no gains can be made if an individual is unwilling to participate in the program because the replacement vehicles being offered do not meet their needs. This bill would make important strides to a beneficial outcome.

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093 FN: 0002243

 THIRD READING  

Bill No: AB 188

Author:

: 9/8/17

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 6/27/17

AYES: Beall, Cannella, Allen, Atkins, Bates, Gaines, McGuire, Mendoza, Morrell, Roth, Wieckowski, Wiener

NO VOTE RECORDED: Skinner

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/5/17

AYES: Wieckowski, Stone, Gaines, Hill, Lara, Skinner, Stern

SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/21/17

AYES: Lara, Beall, Bradford, Hill, Nielsen, Wiener

NO VOTE RECORDED: Bates

ASSEMBLY FLOOR: 77-0, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill expands eligibility for light-duty pickup trucks as replacement vehicles under the Enhanced Fleet Modernization Program (EFMP).

Senate Floor Amendments of 9/8/17 resolve chaptering conflicts with AB 630 (Cooper) and add Assemblymember Eduardo Garcia as a coauthor.

ANALYSIS:

Existing law:

1. Establishes the smog check program, administered by the Bureau of Automotive Repair (BAR). This program generally requires vehicles to undergo emissions testing every two years, with some exceptions including gas-powered vehicles manufactured prior to 1976, alternatively fueled vehicles, and vehicles six years old or newer.
2. Establishes the Consumer Assistance Program (CAP), also administered by BAR. CAP provides assistance to low-income owners of vehicles that have failed a smog test, in the form of a repair cost waiver, repair cost assistance, or a monetary incentive of up to $1,500 to retire the vehicle.
3. Establishes EFMP, administered by the state Air Resources Board (ARB) and BAR. EFMP provides for the voluntary “retirement” (scrappage) of high-polluting passenger vehicles and light- and medium-duty trucks. The vehicle must be currently registered as operable and must have been continuously registered for two years prior to the application; unless the owner can demonstrate that the vehicle has been operated in California during that period. EFMP is funded by an additional $1 surcharge on the vehicle registration fee. EFMP has a statewide component and a local component.

Under the statewide component of EFMP, ARB administers a program, authorized in the San Joaquin Valley and South Coast air districts, to replace high-polluting vehicles. In addition to the “retirement” vouchers described above, the local EFMP program offers a $2,500 “replacement” voucher to low-income vehicle owners to replace a high-polluting vehicle by either purchasing a vehicle eight years old or newer, or using the voucher toward public transit.

In addition, ARB administers the EFMP Plus-Up Program (Plus-Up) in the San Joaquin and South Coast air districts. Plus-Up provides additional incentives above and beyond EFMP base incentives for individuals in disadvantaged communities who retire high-polluting vehicles and replace them with used or new hybrid, plug-in hybrid, or zero emission vehicles. Eligible participants can receive additional incentives ranging from $1,500 to $5,000, depending on the vehicle type that is purchased. EFMP, Plus-Up, and Clean Vehicle Rebate Program rebates can be “stacked” for a total of up to $12,000.

This bill requires ARB, no later than July 1, 2019, to update the EFMP guidelines to make the miles per gallon (mpg) standard for minivans also applicable to light-duty pickup trucks.

Background

Under EFMP, a vehicle weighing up to 10,000 pounds, including a passenger vehicle, truck, sport utility vehicle, or van, is eligible for “retirement” (provided other program requirements are met). A “replacement” vehicle must meet or exceed a 35 mpg fuel economy rating; be a plug-in hybrid or zero-emission vehicle; or be at least eight years old with a fuel economy rating as follows:

• 1. 2006-09: 19 mpg (minivans) or 20 mpg (all other vehicles).
  2. 2010: 19 mpg (minivans) or 22 mpg (all other vehicles).
  3. 2011: 21 mpg (minivans) or 25 mpg (all other vehicles).
  4. 2012: 21 mpg (minivans) or 28 mpg (all other vehicles).
  5. 2013: 21 mpg (minivans) or 29 mpg (all other vehicles).
  6. 2014: 21 mpg (minivans) or 30 mpg (all other vehicles).
  7. 2015: 21 mpg (minivans) or 31 mpg (all other vehicles).

Comments

1. Purpose. The author states that there is an increasing demand to replace older, high-polluting light-duty pickup trucks with more fuel-efficient ones. However, the current fuel efficiency requirements of EFMP make even the most fuel-efficient light-duty truck models ineligible for replacement. This bill makes more light-duty trucks eligible as replacement vehicles under EFMP in order to put more clean vehicles on our roads and reduce air pollution.
2. Encouraging replacement of pickup trucks. This bill expands the minivan fuel standard to light-duty pickup trucks, making more pickup trucks eligible as replacement vehicles under EFMP. For example, under this bill, a participant could replace a high-polluting pickup truck with a 2010 pickup truck with a 19 mpg rating, rather than having to meet a 22 mpg standard. (The minivan fuel economy standard is lower in recognition of the fact that minivans tend to carry more passengers at a time.) Including pickup trucks in the minivan fuel economy standard will likely encourage more owners of older, high-polluting pickup trucks to participate in the program because they will be able to replace their old pickup truck with a newer one, rather than having to switch to a passenger vehicle. By the same token, it could encourage an owner of a high-polluting passenger vehicle to trade in their car for a pickup truck. However, the air quality benefits to be gained by removing older, high-polluting pickup trucks from the road will likely outweigh any concessions made to allow newer, less fuel efficient trucks to replace them.
3. What trucks would qualify? According to ARB, only four pickup trucks meet the standard EFMP combined fuel efficiency requirement of 22 mpg for model year 2010 replacement vehicles, and no pickup trucks meet the 2011 through 2017 requirements. In comparison, many trucks meet the EFMP minivan fuel economy standards: 15 models meet the 2010 replacement requirement, 41 models meet the 2011 through 2015 requirement, and eight models meet the 2016 and 2017 requirement.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time ARB contract costs of approximately $100,000 in 2017-18 to update minivan and pickup truck fuel economy standards and ensure the program’s continued achievement of air quality benefits and greenhouse gas emission reductions. (Enhanced Fleet Modernization Subaccount)
  
• Minor and absorbable ARB costs in 2018-19 to update EFMP guidelines. (Enhanced Fleet Modernization Subaccount)

SUPPORT: (Verified 9/8/17)

City of Arvin

City of Avenal

City of Lemoore

City of McFarland

City of Wasco

Dolores Huerta Foundation

Greater Lamont Chamber of Commerce

San Joaquin Valley Air Pollution Control District

OPPOSITION: (Verified 9/8/17)

None received

ARGUMENTS IN SUPPORT: The San Joaquin Valley Air Pollution Control District states that this bill will allow lower-income residents to participate in EFMP by replacing their older, higher emitting vehicle with a newer, lower emitting vehicle that meets their work needs.

ASSEMBLY FLOOR: 77-0, 5/31/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Choi, Eggman, Melendez

Prepared by:

9/9/17 16:06:27

**** END ****

 THIRD READING  

Bill No: AB 188

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 12-0, 6/27/17

AYES: Beall, Cannella, Allen, Atkins, Bates, Gaines, McGuire, Mendoza, Morrell, Roth, Wieckowski, Wiener

NO VOTE RECORDED: Skinner

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/5/17

AYES: Wieckowski, Stone, Gaines, Hill, Lara, Skinner, Stern

SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/21/17

AYES: Lara, Beall, Bradford, Hill, Nielsen, Wiener

NO VOTE RECORDED: Bates

ASSEMBLY FLOOR: 77-0, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill expands eligibility for light-duty pickup trucks as replacement vehicles under the Enhanced Fleet Modernization Program (EFMP).

ANALYSIS:

Existing law:

1. Establishes the smog check program, administered by the Bureau of Automotive Repair (BAR). This program generally requires vehicles to undergo emissions testing every two years, with some exceptions including gas-powered vehicles manufactured prior to 1976, alternatively fueled vehicles, and vehicles six years old or newer.
2. Establishes the Consumer Assistance Program (CAP), also administered by BAR. CAP provides assistance to low-income owners of vehicles that have failed a smog test, in the form of a repair cost waiver, repair cost assistance, or a monetary incentive of up to $1,500 to retire the vehicle.
3. Establishes EFMP, administered by the state Air Resources Board (ARB) and BAR. EFMP provides for the voluntary “retirement” (scrappage) of high-polluting passenger vehicles and light- and medium-duty trucks. The vehicle must be currently registered as operable and must have been continuously registered for two years prior to the application; unless the owner can demonstrate that the vehicle has been operated in California during that period. EFMP is funded by an additional $1 surcharge on the vehicle registration fee. EFMP has a statewide component and a local component.

Under the statewide component of EFMP, ARB administers a program, authorized in the San Joaquin Valley and South Coast air districts, to replace high-polluting vehicles. In addition to the “retirement” vouchers described above, the local EFMP program offers a $2,500 “replacement” voucher to low-income vehicle owners to replace a high-polluting vehicle by either purchasing a vehicle eight years old or newer, or using the voucher toward public transit.

In addition, ARB administers the EFMP Plus-Up Program (Plus-Up) in the San Joaquin and South Coast air districts. Plus-Up provides additional incentives above and beyond EFMP base incentives for individuals in disadvantaged communities who retire high-polluting vehicles and replace them with used or new hybrid, plug-in hybrid, or zero emission vehicles. Eligible participants can receive additional incentives ranging from $1,500 to $5,000, depending on the vehicle type that is purchased. EFMP, Plus-Up, and Clean Vehicle Rebate Program rebates can be “stacked” for a total of up to $12,000.

This bill requires ARB, no later than July 1, 2019, to update the EFMP guidelines to make the miles per gallon (mpg) standard for minivans also applicable to light-duty pickup trucks.

Background

Under EFMP, a vehicle weighing up to 10,000 pounds, including a passenger vehicle, truck, sport utility vehicle, or van, is eligible for “retirement” (provided other program requirements are met). A “replacement” vehicle must meet or exceed a 35 mpg fuel economy rating; be a plug-in hybrid or zero-emission vehicle; or be at least eight years old with a fuel economy rating as follows:

• 1. 2006-09: 19 mpg (minivans) or 20 mpg (all other vehicles).
  2. 2010: 19 mpg (minivans) or 22 mpg (all other vehicles).
  3. 2011: 21 mpg (minivans) or 25 mpg (all other vehicles).
  4. 2012: 21 mpg (minivans) or 28 mpg (all other vehicles).
  5. 2013: 21 mpg (minivans) or 29 mpg (all other vehicles).
  6. 2014: 21 mpg (minivans) or 30 mpg (all other vehicles).
  7. 2015: 21 mpg (minivans) or 31 mpg (all other vehicles).

Comments

1. Purpose. The author states that there is an increasing demand to replace older, high-polluting light-duty pickup trucks with more fuel-efficient ones. However, the current fuel efficiency requirements of EFMP make even the most fuel-efficient light-duty truck models ineligible for replacement. This bill makes more light-duty trucks eligible as replacement vehicles under EFMP in order to put more clean vehicles on our roads and reduce air pollution.
2. Encouraging replacement of pickup trucks. This bill expands the minivan fuel standard to light-duty pickup trucks, making more pickup trucks eligible as replacement vehicles under EFMP. For example, under this bill, a participant could replace a high-polluting pickup truck with a 2010 pickup truck with a 19 mpg rating, rather than having to meet a 22 mpg standard. (The minivan fuel economy standard is lower in recognition of the fact that minivans tend to carry more passengers at a time.) Including pickup trucks in the minivan fuel economy standard will likely encourage more owners of older, high-polluting pickup trucks to participate in the program because they will be able to replace their old pickup truck with a newer one, rather than having to switch to a passenger vehicle. By the same token, it could encourage an owner of a high-polluting passenger vehicle to trade in their car for a pickup truck. However, the air quality benefits to be gained by removing older, high-polluting pickup trucks from the road will likely outweigh any concessions made to allow newer, less fuel efficient trucks to replace them.
3. What trucks would qualify? According to ARB, only four pickup trucks meet the standard EFMP combined fuel efficiency requirement of 22 mpg for model year 2010 replacement vehicles, and no pickup trucks meet the 2011 through 2017 requirements. In comparison, many trucks meet the EFMP minivan fuel economy standards: 15 models meet the 2010 replacement requirement, 41 models meet the 2011 through 2015 requirement, and eight models meet the 2016 and 2017 requirement.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time ARB contract costs of approximately $100,000 in 2017-18 to update minivan and pickup truck fuel economy standards and ensure the program’s continued achievement of air quality benefits and greenhouse gas emission reductions. (Enhanced Fleet Modernization Subaccount)
  
• Minor and absorbable ARB costs in 2018-19 to update EFMP guidelines. (Enhanced Fleet Modernization Subaccount)

SUPPORT: (Verified 8/22/17)

City of Arvin

City of Avenal

City of Lemoore

City of McFarland

City of Wasco

Dolores Huerta Foundation

Greater Lamont Chamber of Commerce

San Joaquin Valley Air Pollution Control District

OPPOSITION: (Verified 8/22/17)

None received

ARGUMENTS IN SUPPORT: The San Joaquin Valley Air Pollution Control District states that this bill will allow lower-income residents to participate in EFMP by replacing their older, higher emitting vehicle with a newer, lower emitting vehicle that meets their work needs.

ASSEMBLY FLOOR: 77-0, 5/31/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Choi, Eggman, Melendez

Prepared by:

8/22/17 16:14:23

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 188 (Salas) - Vehicle retirement and replacement

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 188 would require the California Air Resources Board (ARB) to update guidelines for the Enhanced Fleet Modernization Program (EFMP) to apply the same fuel economy standards to light-duty pickup trucks that are applicable to minivans, if a purchaser is retiring a light-duty pickup truck. This would have the effect of expanding the available options for consumers who wish to purchase a light-duty pickup truck as a replacement vehicle.

Fiscal Impact:

• One-time ARB contract costs of approximately $100,000 in 2017-18 to update minivan and pickup truck fuel economy standards and ensure the program’s continued achievement of air quality benefits and greenhouse gas emission reductions. (Enhanced Fleet Modernization Subaccount)
  
• Minor and absorbable ARB costs in 2018-19 to update EFMP guidelines. (Enhanced Fleet Modernization Subaccount)

Background:

Existing law establishes a vehicle retirement program and a retire-and-replace program. The Bureau of Automotive Repair (BAR), as part of its Consumer Assistance Program (CAP), administers a “retirement-only” program that provides $1,500 vouchers to low-income vehicle owners to retire a high-polluting vehicle. CAP is funded by $6 of the Smog Abatement Fee (paid to register vehicles less than six model years old and therefore exempt from smog check), in addition to citation fees imposed by BAR on smog stations.

ARB administers the EFMP in consultation with BAR. EFMP is a “retire-and-replacement” program that allows for the voluntary retirement of high-polluting passenger vehicles and light-duty and medium-duty trucks and subsequent purchase of cleaner replacement vehicles. EFMP is funded by an additional $1 surcharge on vehicle registrations, and is currently only authorized in the San Joaquin Valley and South Coast air districts. In addition to the “retirement” vouchers described above, the EFMP program offers a $2,500 “replacement” voucher to low-income vehicle owners to replace a high-polluting vehicle by purchasing a vehicle eight years old or newer. The total EFMP incentive amount can be as high as $4,500 if a replacement vehicle is a hybrid with a fuel economy rating of at least 35 miles per gallon (mpg), a plug-in hybrid, or a battery electric vehicle, but the incentive is $4,000 for conventional and other hybrid replacement vehicles.

Existing EFMP guidelines require replacement vehicles to meet specified minimum criteria, including certain fuel economy ratings that increase over time in accordance with Corporate Average Fuel Economy (CAFE) Standards as follows:

• 2006-09: 19 mpg (minivans) or 20 mpg (all other vehicles);
• 2010: 19 mpg (minivans) or 22 mpg (all other vehicles);
• 2011: 21 mpg (minivans) or 25 mpg (all other vehicles);
• 2012: 21 mpg (minivans) or 28 mpg (all other vehicles);
• 2013: 21 mpg (minivans) or 29 mpg (all other vehicles);
• 2014: 21 mpg (minivans) or 30 mpg (all other vehicles);
• 2015: 21 mpg (minivans) or 31 mpg (all other vehicles).

ARB guidelines establish lower fuel standards for minivans because they are assumed to carry more passengers than other light-duty vehicles. According to ARB, only four pickup truck models meet the standard EFMP combined fuel-efficiency requirement of 22 mpg for model year 2010 replacement vehicles, excluding minivans. There are no pickup trucks on the market that meet the applicable fuel economy standards for model years 2011 through 2017. There are numerous pickup truck models on the market that are eight years old or newer that meet the fuel economy standards for minivans

Proposed Law:

AB 188 would require ARB to update EFMP guidelines by July 1, 2019 to make the fuel economy standards for light-duty pickup trucks the same as the standards that are applicable to minivans. These standards would only apply to purchasers who are retiring a light-duty pickup truck.

Related Legislation:

AB 630 (Cooper), which is also being heard in this committee today, would establish a modified version of the EFMP Plus-Up Program in statute as the Clean Cars 4 All program, as specified.

Staff Comments:

This bill would likely encourage current owners of older, high-polluting pickup trucks to participate in the EFMP, because it would allow those who wish to continue to drive a truck rather than a passenger vehicle to purchase a newer pickup truck as a replacement vehicle. As a result of the bill, ARB will incur contracting costs of approximately $100,000 to update the standards for both minivans and pickup trucks to ensure that the program revisions do not have a negative impact on air quality and emission benefits of the program.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 188

SUBJECT: Vehicle retirement and replacement.

ANALYSIS:

Existing law:

1. Under the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007, requires the State Energy Resources Conservation and Development Commission (commonly referred to as the California Energy Commission) (CEC) to implement the Alternative and Renewable Fuels and Vehicle Technology Program (ARFVTP) to provide funding measures to specified entities to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies. (Health and Safety Code (HSC) §43865 et seq.)
   
2. Creates the Air Quality Improvement Program (AQIP), to be administered by the California Air Resources Board (ARB) in consultation with local air districts, to fund air quality improvement projects. (HSC §44274).
   
3. Creates the Enhanced Fleet Modernization Program (EFMP) developed by the Air Resources Board (ARB), in consultation with the Bureau of Automotive Repair (BAR), that allows for the voluntary retirement of high-polluting passenger vehicles and light-duty and medium-duty trucks. (HSC §44125).
   
4. Authorizes ARB to adopt EFMP guidelines to ensure, among other things, that the program is available for high-polluting passenger vehicles and light- and medium-duty trucks that have been continuously registered in California.
   
5. Pursuant to EFMP guidelines, requires replacement vehicles, among other things, meet specified minimum criteria including certain fuel economy ratings that increase over time in accordance with Corporate Average Fuel Economy (CAFE) standards.
   
6. Establishes the Charge Ahead California Initiative SB 1275 (de León, Chapter 530, Statutes of 2014), which, among other things, established the goal of placing at least one million zero emissions vehicles (ZEVs) and near-zero emission vehicles (NZEVs) into service by January 1, 2023, and increasing access to ZEVs and NZEVs for low- and moderate-income individuals and disadvantaged communities.
   

This bill:

1. Requires the California Air Resources Board (ARB), no later than July 1, 2019, to update the Enhanced Fleet Modernization Program (EFMP) guidelines to allow light-duty trucks to qualify as replacement vehicles under the program, provided that the vehicles meet the program's fuel efficiency standard for minivans.
   
2. Specifies that this bill applies only to purchasers who are retiring a light-duty pickup truck.
   

Background

1. General background. Pursuant to the federal Clean Air Act, the United States Environmental Protection Agency establishes National Ambient Air Quality Standards (NAAQS) that apply to outdoor air throughout the country. These federal standards exist for several air pollutants due to their negative impact on public health above specified concentrations, including ozone, particulate matter (PM), nitrogen oxide (NOx), oxides of sulfer (SOx), carbon monoxide, and lead. Regions that do not meet the NAAQS are designated non-attainment areas.
   
   In California, the South Coast and San Joaquin air basins are both non-attainment areas and as such are required to develop and implement comprehensive plans to attain and maintain federal air quality standards. Because transportation emissions are considered a primary source of air pollutants (such as NOx and PM emissions), plans to help achieve attainment typically involve efforts to increase the retirement of dirty vehicles and replacing them with cleaner cars.
   
2. California efforts to reduce vehicle emissions. California has implemented a number of programs to help reduce vehicle emissions. According to ARB, among the various programs for light-duty vehicle investments are the following:
   
   1. EFMP and EFMP Plus-Up (car scrap & replace). The car scrap and replace program (EFMP and EFMP Plus-Up) has been available in the South Coast Air Quality Management District (SCAQMD) and San Joaquin Valley Air Pollution Control District (SJVAPCD) since July 1, 2015. In fiscal year (FY) 2016-17, a budget of $60 million was approved. Since the start of this program through December 31, 2016, this program has replaced 1,726 vehicles in SCAQMD (54%) and SJVAPCD (46%).
      
   2. Statewide Clean Vehicle Rebate Project (CVRP). CVRP provides consumers with vehicle rebates on a first-come, first-served basis for new passenger plug-in hybrid (PHEV) or battery electric vehicles (BEV). The program is available to California residents that meet income eligibility requirements and California-based businesses. Consumers with household incomes less than or equal to 300% of the federal poverty level are eligible for an increased rebate amount. In FY 2016-17, a budget of $133 million was approved for this rebate program.
      
   3. Vehicle financing assistance for lower-income consumers. Financing assistance helps eligible consumers access loans to buy or lease a new or used clean vehicle, such as a conventional hybrid vehicle (HEV), plug-in hybrid (PHEV), or battery electric vehicle (BEV) at a reduced price. In FY 2016-17, a budget of $6 million was approved to fund local financing assistance projects and to help launch a statewide financing assistance program.
      
   4. Car sharing and mobility options. The program is intended to help launch car sharing services that use clean transportation options, including plug-in hybrid (PHEV) or battery electric vehicles (BEV), and serve disadvantaged communities. Since 2014, $3.1 million has been used to develop two car sharing services in Los Angeles and Sacramento.
      
   5. Agricultural Worker Vanpools (AWV) in San Joaquin Valley. AWV is a new pilot project that provides expanded access to reliable, clean transportation vanpools for agricultural workers in the San Joaquin Valley’s disadvantaged communities. In 2016-17, $3 million was allocated for this purpose.
      
   6. Increased Public Fleet Incentives for CVRP-eligible vehicles. Increased public fleet incentives is a set-aside within CVRP that provides increased incentives for public entities that own and operate vehicles in disadvantaged communities. The Public Fleet Pilot Project rebate replaces the standard CVRP rebate for eligible public entities and offers rebates of up to $15,000. In 2016-17, $3 million was allocated to public fleet projects.
      
   7. Air Quality Improvement Program (AQIP). The AQIP, which was established by the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (AB 118 Nuñez, Chapter 750, Statutes of 2007), is a voluntary incentive program administered by ARB to finance, through grants, revolving loans, or loan guarantees, projects that improve air quality, promote research on the air quality impacts of alternative fuels and advanced technology vehicles, and support work force training.
      
      AQIP is funded through, among other things, surcharges on vehicle registration fees and a portion of the Smog Abatement Fee (paid to register vehicles less than six model years old and therefore exempt from smog check). AQIP also receives Greenhouse Gas Reduction Fund (GGRF) moneys.
      
   8. Clean Vehicle Rebate Project (CVRP). CVRP, which is part of AQIP, is funded by ARB and administered by the Center for Sustainable Energy, and promotes the production and use of zero-emission vehicles, including electric, plug-in hybrid electric and fuel-cell vehicles. CVRP enables the purchaser or lessee of an eligible vehicle to receive a rebate. A consumer can apply for a rebate within 18 months of purchasing or leasing an eligible vehicle. The consumer must retain ownership of the vehicle in California for at least 30 consecutive months after the purchase or lease date or reimburse ARB for part of or the entire rebate amount. Rebates are distributed on a first-come, first-served basis and issued within 90 days of application approval. CVRP provides a rebate of up to $5,000 for purchasing or leasing a new zero-emission vehicle or plug-in hybrid electric vehicle.
      
   9. Public Fleet Pilot Project. Administered by the Center for Sustainable Energy (CSE) for ARB, the Public Fleet Pilot Project offers up to $15,000 in rebates for the purchase of new, eligible zero-emission and plug-in hybrid light-duty vehicles. The project replaces standard CVRP rebates with increased incentives for public agencies operating in the state’s disadvantaged communities. The Public Fleet Pilot Project benefits these communities by providing immediate air pollution emission reductions while stimulating local deployment of zero-emission and plug-in hybrid electric light-duty vehicles. The Public Fleet Pilot Project is administered as a set-aside within CVRP.
      

Comments

1. Purpose of Bill. According to the author, “There is an increasing demand to replace older, high-polluting light-duty pickup trucks for more fuel-efficient light-duty trucks. However, the current fuel efficiency requirements of the Enhanced Fleet Modernization Program (EFMP) make even the most fuel-efficient light-duty truck models ineligible to qualify for vehicle retirement and replacement. AB 188 makes light-duty trucks and minivans eligible under the state vehicle replacement program in order to put more clean vehicles on our roads and reduce air pollution.”
   
2. Are minivans and light-duty trucks equivalent? This bill allows light-duty trucks to qualify as replacement vehicles under EFMP, provided that the vehicles meet the program’s fuel efficiency standard for minivans.
   
   According to ARB, there is no significant difference between minivans and smaller-sized light-duty pickup trucks. Both vehicle types have similar powertrain platforms, and gross vehicle weight ratings (GVWR) (less than 6,000 pounds). Larger light-duty pickup trucks will have higher GVWRs (between 6,000 pounds and 10,000 pounds) when compared to minivans, and may have different engine platforms that will have increased emissions. All light-duty trucks and minivans are required to meet the same emission standards. ARB estimates there are roughly 6 million light-duty trucks in the current vehicle fleet.
   
3. What trucks would qualify? According to ARB, only four pickup trucks meet the standard EFMP combined fuel-efficiency requirement of 22 miles per gallon (MPG) for model year 2010 replacement vehicles (except minivans): Chevrolet: Silverado 15 Hybrid 2WD; Ford: Ranger 2WD; GMC: Sierra 15 Hybrid 2WD; and, Toyota: Tacoma 2WD. However, there are no pickup trucks meeting applicable EFMP fuel efficiency requirements for model years 2011 through 2017.
   

In comparison, many more trucks meet the EFMP minivan fuel economy standards. There are a variety of truck models by Chevrolet, Ford, GMC, Nissan, Ram, Suzuki, and Toyota that meet EMP minivan fuel economy standards. There are 15 models of trucks that meet EFMP minivan fuel economy requirement of 19 MPG for model year 2010 replacement vehicles. For model years 2011 through 2015, which has a 21 MPG minimum for minivans, there are 41 truck models that meet this standard. For model years 2016 and 2017, there are 8 models of trucks that meet the EFMP minivan fuel economy requirement.

Related/Prior Legislation

SB 498 (Skinner) would require ARB to study its programs relating to light-duty ZEVs and report to the Legislature on its findings. SB 498 is pending hearing in the Assembly Transportation Committee.

SB 79 (Allen) would have exempted from the state share of the sales and use tax purchases of used low- or zero-emission vehicles when the purchaser trades in an older vehicle. SB 79 was held on suspense in the Senate Appropriations Committee.

AB 33 (Quirk) would require the Public Utilities Commission by March 30, 2018, to authorize investor-owned utilities (IOUs) to offer programs and investments in residential electric vehicle service equipment. AB 33 is pending hearing in the Senate Energy, Utilities and Communications Committee.

AB 188 (Salas) would require ARB to update the EFMP guidelines to allow participants to replace their vehicles with a light-duty truck so long as they are retiring a pickup truck and the replacement truck meets fuel efficiency standards set for minivans. AB 188 is set for hearing on July 5, 2017 in the Senate Environmental Quality Committee.

AB 193 (Cervantes) would create a new program to incentivize the purchase and use of used zero-emission vehicles or near-zero-emission vehicles. AB 193 is pending hearing in the Senate Environmental Quality Committee.

AB 544 (Bloom) would amend the current high-occupancy vehicle lane sticker program for EVs. AB 544 is pending hearing in the Senate Transportation and Housing Committee.

AB 615 (Cooper) is an urgency measure that would make permanent the current income restrictions in the CVRP program that were imposed by last year’s budget. AB 615 is set for hearing on July 5, 2017 in the Senate Environmental Quality Committee.

AB 630 (Cooper) would codify the existing EFMP Plus-Up program in statute, with certain modifications, and apply the program statewide. AB 630 is set for hearing on July 5, 2017 in the Senate Environmental Quality Committee.

AB 964 (Gomez) is similar to this bill in that it would create a new program to help low-income and high financial risk individuals buy low-emission vehicles using qualified loans. AB 964 is set for hearing on July 5, 2017 in the Senate Environmental Quality Committee.

AB 1081 (Burke) would exempt from state sales tax the value of a vehicle traded in to purchase a cleaner car. AB 1081 was held on Suspense in the Assembly Appropriations Committee.

AB 1082 (Burke) would require IOUs to develop a program for the installation of vehicle charging stations at school facilities for use by faculty, students, and parents with electricity provided at time-of-use rates. AB 1082 is pending hearing in the Senate Energy, Utilities and Communications Committee.

AB 1083 (Burke) would require IOUs to create a charging network at all state parks and beaches by July 31, 2018, with electricity provided at time-of-use rates. AB 1082 is pending hearing in the Senate Energy, Utilities and Communications Committee.

SB 32 (Pavley, Chapter 249, Statutes of 2016) requires ARB to ensure that statewide GHG emissions are reduced to at least 40% below the 1990 level by December 31, 2030.

AB 904 (Perea) of 2015 was essentially the same as AB 193 (Cervantes) of 2017, in that it would create the CRVRP.  AB 904 was held on the Senate Appropriations Committee Suspense File.

SB 1275 (de León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative to place in service at least 1.0 million zero-emission and near-zero-emission vehicles by January 1, 2023, with a focus on disadvantaged and low-and-moderate-income communities.

AB 32 (Núñez, Pavley, Chapter 488, Statutes of 2006) established the California Global Warming Solutions Act of 2006, which requires ARB to monitor and regulate sources of GHG emissions that cause global warming in order to reduce emissions of GHG, as specified.

DOUBLE REFERRAL:

This measure was heard in Senate Transportation and Housing Committee on June 27, 2017, and passed out of committee with a vote of 12-0.

SOURCE:

Author

SUPPORT:

City of Arvin

City of Avenal

City of Lemoore

City of McFarland

City of Wasco

The Dolores Huerta Foundation

Greater Lamont Chamber of Commerce

San Joaquin Valley Air Pollution Control District

Valley Clean Air Now

OPPOSITION:

None received

-- END –

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 6/27/2017

SUBJECT: .

DIGEST: This bill expands eligibility for light-duty pickup trucks as replacement vehicles under the Enhanced Fleet Modernization Program (EFMP).

ANALYSIS:

Existing law:

1. Establishes the smog check program, administered by the Bureau of Automotive Repair (BAR). This program generally requires vehicles to undergo emissions testing every two years, with some exceptions including gas-powered vehicles manufactured prior to 1976, alternatively fueled vehicles, and vehicles six years old or newer.
2. Establishes the Consumer Assistance Program (CAP), also administered by BAR. CAP provides assistance to low-income owners of vehicles that have failed a smog test, in the form of a repair cost waiver, repair cost assistance, or a monetary incentive of up to $1,500 to retire the vehicle.
3. Establishes EFMP, administered by the state Air Resources Board (ARB) and BAR. EFMP provides for the voluntary “retirement” (scrappage) of high-polluting passenger vehicles and light- and medium-duty trucks. The vehicle must be currently registered as operable and must have been continuously registered for two years prior to the application; unless the owner can demonstrate that the vehicle has been operated in California during that period. EFMP is funded by an additional $1 surcharge on the vehicle registration fee. EFMP has a statewide component and a local component.

Under the statewide component of EFMP, ARB administers a program, authorized in the San Joaquin Valley and South Coast air districts, to replace high-polluting vehicles. In addition to the “retirement” vouchers described above, the local EFMP program offers a $2,500 “replacement” voucher to low-income vehicle owners to replace a high-polluting vehicle by either purchasing a vehicle eight years old or newer, or using the voucher toward public transit.

In addition, ARB administers the EFMP Plus-Up Program (Plus-Up) in the San Joaquin and South Coast air districts. Plus-Up provides additional incentives above and beyond EFMP base incentives for individuals in disadvantaged communities who retire high-polluting vehicles and replace them with used or new hybrid, plug-in hybrid, or zero emission vehicles. Eligible participants can receive additional incentives ranging from $1,500 to $5,000, depending on the vehicle type that is purchased. EFMP, Plus-Up, and Clean Vehicle Rebate Program rebates can be “stacked” for a total of up to $12,000.

This bill requires ARB, no later than July 1, 2019, to update the EFMP guidelines to make the miles per gallon standard for minivans also applicable to light-duty pickup trucks.

COMMENTS:

1. Purpose. The author states that there is an increasing demand to replace older, high-polluting light-duty pickup trucks with more fuel-efficient ones. However, the current fuel efficiency requirements of EFMP make even the most fuel-efficient light-duty truck models ineligible for replacement. This bill makes more light-duty trucks eligible as replacement vehicles under EFMP in order to put more clean vehicles on our roads and reduce air pollution.
2. Encouraging replacement of pickup trucks. Under EFMP, a vehicle weighing up to 10,000 pounds, including a passenger vehicle, truck, sport utility vehicle, or van, is eligible for “retirement” (provided other program requirements are met). A “replacement” vehicle must meet or exceed a 35 mpg fuel economy rating; be a plug-in hybrid or zero-emission vehicle; or be at least eight years old with a fuel economy rating as follows:
   1. 2006-09: 19 mpg (minivans) or 20 mpg (all other vehicles);
   2. 2010: 19 mpg (minivans) or 22 mpg (all other vehicles);
   3. 2011: 21 mpg (minivans) or 25 mpg (all other vehicles);
   4. 2012: 21 mpg (minivans) or 28 mpg (all other vehicles);
   5. 2013: 21 mpg (minivans) or 29 mpg (all other vehicles);
   6. 2014: 21 mpg (minivans) or 30 mpg (all other vehicles);
   7. 2015: 21 mpg (minivans) or 31 mpg (all other vehicles).

This bill would expand the minivan fuel standard to light-duty pickup trucks, making more pickup trucks eligible as replacement vehicles under EFMP. For example, under this bill, a participant could replace a high-polluting pickup truck with a 2010 pickup truck with a 19 mpg rating, rather than having to meet a 22 mpg standard. (The minivan fuel economy standard is lower in recognition of the fact that minivans tend to carry more passengers at a time.) Including pickup trucks in the minivan fuel economy standard will likely encourage more owners of older, high-polluting pickup trucks to participate in the program because they will be able to replace their old pickup truck with a newer one, rather than having to switch to a passenger vehicle. By the same token, it could encourage an owner of a high-polluting passenger vehicle to trade in their car for a pickup truck. However, the air quality benefits to be gained by removing more older, high-polluting pickup trucks from the road will likely outweigh any concessions made to allow newer, less fuel efficient trucks to replace them.

1. Double referral. This bill has also been referred to the Environmental Quality Committee.

Related Legislation:

AB 630 (Cooper, 2017) — would establish EFMP Plus-Up in statute and add provisions to improve the performance of EFMP. This bill will be heard in the Environmental Quality Committee on July 5^th and has also been referred to this committee.

Assembly Votes:

Floor:       77-0   

Approps:      16-0 

Trans:            14-0

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 21, 2017.)

SUPPORT:

City of Arvin

City of Avenal

City of Lemoore

City of McFarland

City of Wasco

Dolores Huerta Foundation

Greater Lamont Chamber of Commerce

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 188

Author:(Salas)

As Amended Ver:May 26, 2017

Majority vote

SUMMARY: Requires the California Air Resources Board (ARB), no later than July 1, 2019, to update the Enhanced Fleet Modernization Program (EFMP) guidelines to allow certain light-duty trucks to qualify as replacement vehicles under the program, provided that the vehicles meet the program's fuel efficiency standard for minivans and that a high-polluting light-duty pickup truck is retired by the purchaser.

FISCAL EFFECT: According to the Assembly Appropriations Committee, ARB anticipates increased one-time contract costs of $100,000 (EFMP funds) over an 18- month period to update the minivan and pick-up truck per gallon requirements to ensure greenhouse gas benefit goals are achieved. Because this bill requires ARB to update the guidelines in three rather than 18 months, it is reasonable to assume costs would be much greater, perhaps twice as much or more, if it is even possible to update guidelines in such a short timeframe.

COMMENTS: California has some of the most severe air pollution problems in the country and the South Coast and San Joaquin air basins, which contain over half of the state’s population, are designated as extreme non-attainment areas. Nationally and statewide, the transportation sector is responsible for a major portion of air pollution, and in California, the transportation sector accounts for approximately 80% of hazardous emissions. According to ARB, 75% of vehicular air pollution in the state is caused by just 25% of the fleet.

To help get older, high-polluting cars off of California roads, the Consumer Assistance Program (CAP) was created to accelerate voluntary retirement of high-polluting vehicles and provide monetary incentives to vehicle owners to participate. Under this program owners who scrap their vehicles that have failed their last smog test are given $1,000 ($1,500 for low income consumers).

To ensure that as many as possible older, high polluting cars are replaced with cleaner cars, EFMP was also established. This program, which is administered by ARB and BAR, provides for the voluntary retirement of passenger vehicles and light- and medium-duty trucks that are high polluters. Unlike CAP, however, EFMP allows vehicles to be retired without first having to fail a smog test, and offers a $1,000 voucher ($1,500 for low-income owners) to retire and replace a high-polluting vehicle.

EFMP guidelines, developed by ARB, dictate which types of cars are eligible replacement vehicles. Generally, replacement vehicles eligible under EFMP include vehicles that are eight years old or newer and meet a specified fuel economy rating. For example, this year, the oldest qualifying vehicle under EFMP would be 2010 models and with a 22 mile per gallon (mpg) fuel economy rating. Qualifying 2011 model year vehicles, however, must have a 25 mpg fuel economy rating, with the mpg increasing annually per CAFE standards.

When the EFMP guidelines were established, ARB set a lower fuel economy scale for minivans seemingly in consideration that these vehicles are more commonly "family cars" and typically carry a greater number of passengers. If an EFMP participant, for example, opted to replace their high-polluting car with minivan, a qualifying 2010 model year minivan would need to meet a 19 mpg fuel economy rating.

In addition to EFMP, ARB has also initiated the Plus-Up program as part of the Charge Ahead Initiative of 2014 to enhance its retire and replace efforts in extreme non-attainment areas. Plus-Up, which includes two established programs, one in the San Joaquin Valley Air District and the other in the South Coast Air District, offers rebates over and above EFMP to encourage the purchase of cleaner cars (that meet EFMP requirements) or provide qualifying individuals with public transit vouchers.

The author points out that in the agriculturally-oriented Central Valley in particular, many residents use light-duty pickup trucks for work purposes. He notes that many of these vehicles are driven by low- and moderate-income individuals who qualify for retire and replace programs such as EFMP and Plus-Up. However, the author asserts that because of the fuel economy rating requirements established in the EFMP guidelines, these individuals are no longer able to replace their dirty light-duty pickups in-kind (with another pickup) because as of this year there are no pickups available that meet the more stringent fuel economy ratings established in the EFMP guidelines. The author contends that not being able to replace a pickup truck in-kind keeps many individuals from participating in the program and, instead, these individuals continue to drive their existing vehicles to the detriment of California's air quality and emissions reduction goals.

If pickup trucks are allowed to meet the same standard set for minivans in EFMP, there would be a number of these light-duty pickup trucks available as replacement vehicles and, as a result, more individuals would utilize the program. In the 2010 model year, if the minivan fuel economy rating were applied, approximately 10 light-duty pickups would qualify as replacement vehicles under the program.

Committee comments: The goal of EFMP is to replace high-polluting cars with cleaner ones to improve air quality and reduce emissions and nowhere is this more important than in California's severe non-attainment areas. While it stands to reason that replacing dirty cars with the cleanest possible vehicles is best, no gains can be made if an individual is unwilling to participate in the program because the replacement vehicles being offered do not meet their needs. This bill would make important strides to a beneficial outcome.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093 FN: 0000770

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 188

Author:(Salas) – As Introduced Ver:January 19, 2017

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

SUMMARY:

This bill requires the California Air Resources Board (ARB) to update the Enhanced Fleet Modernization Program (EFMP) guidelines by March 2018, to allow applicants retiring a high-polluting light-duty pickup truck to replace their vehicle with a light-duty pickup truck that meets the program's fuel economy standards for minivans.

FISCAL EFFECT:

ARB anticipates increased one-time contract costs of $100,000 (EFMP funds) over an 18-month period to update the minivan and pick-up truck per gallon requirements to ensure GHG benefit goals are achieved. Because this bill requires ARB to update the guidelines in 3-months, rather than 18 months, it is reasonable to assume costs would be much greater, perhaps twice as much or more, if it is even possible to update guidelines in such a short timeframe.

COMMENTS:

1. Purpose. According to the author, in the agriculturally-oriented Central Valley, many people use light-duty pickup trucks for work purposes. Many of these vehicles are driven by low and moderate income individuals who would otherwise qualify for retire-and-replace programs such as EFMP. However, these individuals are not able to replace their dirty light-duty pickups with newer pickups using the EFMP program because as of this year there are no pickups available that meet the program's more stringent fuel economy ratings.

The author contends that not being able to replace a pickup truck in-kind keeps many individuals from participating in the program and instead, these individuals continue to drive their existing vehicles to the detriment of California's air quality and emissions reduction goals.

1. Background. AB 118 (Núñez), Chapter 750, Statutes of 2007, created the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 and temporarily raised various vehicle and vessel registration fees and smog abatement fees. The statute created three new accounts into which the resulting revenue are placed to pay for the programs, as follows:
2. Alternative and Renewable Fuel and Vehicle Technology Fund. With estimated annual revenues of about $115 million, this fund provides resources to the California Energy Commission (CEC) for financial awards to further the development and commercialization of technologies for renewable and nonpetroleum fuels and vehicle technologies that help to achieve the state's climate change goals.
3. Air Quality Improvement Fund. Bringing in about $38 million each year, the AQI Fund provides resources for ARB to award competitive grants for air quality improvement projects related to fuel and vehicle technologies.
4. Enhanced Fleet Modernization Subaccount. With annual revenues of about $32 million, this subaccount of the High Polluter Removal and Repair Account used by the Bureau of Automotive Repair, pursuant to regulations established by ARB, provides financial compensation for the retirement of high-polluting California vehicles.

The collection of the AB 118 fees was authorized until 2024 pursuant to AB 8 (Perea), Chapter 401, Statutes of 2013.

1. Enhanced Fleet Modernization Program. EFMP provides for the voluntary retirement of passenger vehicles and light- and medium-duty trucks by offering a $1,000 or $1,500 (for low-income individuals) voucher to retire and replace a high-polluting vehicle. The program guidelines, developed by ARB, determine what types of vehicles are eligible as replacement vehicles. Generally, eligible replacement vehicles are eight years old or newer and meet specified fuel economy ratings. Because minivans are assumed to carry multiple passengers, ARB guidelines set lower fuel economy scales for replacement vehicles. This bill requires ARB to adopt the same standards for light-duty trucks as minivans. ARB has determined that under this bill, they will adopt a new standard for both types of vehicles.
2. Implementation Concerns. As written, this bill would take effect January 1, 2018. As previously noted, under this bill, the ARB is required to review its minivan replacement eligibility guideline and develop a new guideline to apply to both minivans and light-duty trucks. This effort could take between 18 months and two years. The author may wish to revise the deadline in the bill to July 1, 2019, to allow enough time to accomplish this effort.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: March 27, 2017

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 188 (

Author:Salas) – As Introduced Ver:January 19, 2017

SUBJECT: Vehicle retirement

SUMMARY: Requires the California Air Resources Board (ARB), no later than March 2018, to update the Enhanced Fleet Modernization Program (EFMP) guidelines to allow certain light-duty trucks to qualify as replacement vehicles under the program, provided that the vehicles meet the program's fuel efficiency standard for minivans and that a high-polluting light-duty pickup truck is retired by the purchaser.

EXISTING LAW:

1. Establishes the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 [AB 118 (Núñez), Chapter 750, Statutes of 2007], funded through temporary increases in vehicle and registration fees as well as smog abatement and special identification license plate fees. Collection of these fees was authorized until 2024 pursuant to AB 8 (Perea), Chapter 401, Statutes of 2013.
2. Establishes the Air Quality Improvement Program (AQIP), administered by ARB in consultation with local air districts utilizing AB 118 monies to support efforts to reduce criteria pollutants, improve air quality, and provide research for alternative fuels and vehicles, vessels, and equipment technologies.
3. Establishes the EFMP, pursuant to AQIP, that authorizes ARB, in consultation with the Bureau of Automotive Repair (BAR), to permanently remove high-polluting vehicles from operation through voluntary retirement.
4. Authorizes ARB to adopt EFMP guidelines to ensure, among other things, that the program is available for high-polluting passenger vehicles and light- and medium-duty trucks that have been continuously registered in California.
5. Requires, pursuant to EFMP guidelines, that replacement vehicles, among other things, meet certain minimum criteria including specified fuel economy ratings that increase over time in accordance with Corporate Average Fuel Economy (CAFE) standards.
6. Establishes the Charge Ahead California Initiative pursuant to SB 1275 (de León), Chapter 530, Statutes of 2014, that, among other things, established the goal of placing at least one million zero emissions vehicles (ZEV) and near-zero emission vehicles (NZEV) into service by January 1, 2023, and increasing access to ZEVs and NZEVs for, low- and moderate-income individuals and disadvantaged communities (DACs).

FISCAL EFFECT: Unknown

COMMENTS: The federal Clean Air Act, and its implementing regulations are intended to protect public health and environmental quality by reducing pollution from various sources. Under the federal Clean Air Act, the Environmental Protection Agency (EPA) establishes National Ambient Air Quality Standards (NAAQS) that apply for outdoor air throughout the country. Regions that do not meet the NAAQS are designated as non-attainment areas. The Clean Air Act sets deadlines for attainment based on the severity of non-attainment and requires states to develop comprehensive plans to attain and maintain air quality standards for designated non-attainment areas.

California has some of the most severe air pollution problems in the country and the South Coast and San Joaquin air basins, which contain over half of the state’s population, are designated as extreme non-attainment areas. Nationally and statewide, the transportation sector is responsible for a major portion of air pollution, and in California, the transportation sector accounts for approximately 80% of hazardous emissions. According to ARB, 75% of vehicular air pollution in the state is caused by just 25% of the fleet.

To help get older, high-polluting cars off of California roads, the Consumer Assistance Program (CAP) was created to accelerate voluntary retirement of high-polluting vehicles and provide monetary incentives to vehicle owners to participate. Under this program owners who scrap their vehicles that have failed their last smog test are given $1,000 ($1,500 for low income consumers).

To ensure that as many as possible older, high polluting cars are replaced with cleaner cars, EFMP was established. This program, which is administered by ARB and BAR, provides for the voluntary retirement of passenger vehicles and light- and medium-duty trucks that are high polluters. Unlike CAP, however, EFMP allows vehicles to be retired without first having to fail a smog test, and offers a $1,000 voucher ($1,500 for low-income owners) to retire and replace a high-polluting vehicle.

EFMP guidelines, developed by ARB, dictate which types of cars are eligible replacement vehicles. Generally, replacement vehicles eligible under EFMP include vehicles that are eight years old or newer and meet a specified fuel economy rating. For example, this year, the oldest qualifying vehicle under EFMP would be 2010 models and with a 22 mile per gallon (mpg) fuel economy rating. Qualifying 2011 model year vehicles, however, must have a 25 mpg fuel economy rating, with the mpg increasing annually per CAFE standards.

When the EFMP guidelines were established, ARB set a lower fuel economy scale for minivans seemingly in consideration that these vehicles are more commonly "family cars" and typically carry a greater number of passengers. If an EFMP participant, for example, opted to replace their high-polluting car with minivan, a qualifying 2010 model year minivan would need to meet a 19 mpg fuel economy rating.

In addition to EFMP, ARB has also initiated the Plus-Up program as part of the Charge Ahead Initiative of 2014 to enhance its retire and replace efforts in extreme non-attainment areas. Plus-Up, which includes two established programs, one in the San Joaquin Valley Air District and the other in the South Coast Air District, offers rebates over and above EFMP to encourage the purchase of cleaner cars (that meet EFMP requirements) or provide qualifying individuals with public transit vouchers.

The author points out that in the agriculturally-oriented Central Valley in particular, many residents use light-duty pickup trucks for work purposes. He notes that many of these vehicles are driven by low- and moderate-income individuals who qualify for retire and replace programs such as EFMP and Plus-Up. However, the author asserts that because of the fuel economy rating requirements established in the EFMP guidelines, these individuals are no longer able to replace their dirty light-duty pickups in-kind (with another pickup) because as of this year there are no pickups available that meet the more stringent fuel economy ratings established in the EFMP guidelines. The author contends that not being able to replace a pickup truck in-kind keeps many individuals from participating in the program and, instead, these individuals continue to drive their existing vehicles to the detriment of California's air quality and emissions reduction goals.

If pickup trucks are allowed to meet the same standard set for minivans in EFMP, there would be a number of these light-duty pickup trucks available as replacement vehicles and, as a result, more individuals would utilize the program. In the 2010 model year, if the minivan fuel economy rating were applied, approximately 10 light-duty pickups would qualify as replacement vehicles under the program.

Writing in support of this bill, Valley Clean Air Now (Valley CAN) notes that ARB has made great strides in serving DACs in California's Central Valley by combining emission reduction goals and reducing economic barriers to obtaining cleaner cars. Valley CAN notes, however, that improvements can be made to better meet the unique needs of Central Valley residents--such as providing the opportunity for individuals to replace their high-polluting vehicles in-kind with newer, more fuel-efficient models. Valley CAN supports in-kind replacement such as that proposed in this bill because it would allow the existing programs to better meet many low-income Central Valley resident's needs while continuing to make incremental improvements in air quality and greenhouse gas (GHG) reduction.

Committee comments: The goal of EFMP is to replace high-polluting cars with cleaner ones to improve air quality and reduce emissions and nowhere is this more important than in California's severe non-attainment areas. While it stands to reason that replacing dirty cars with the cleanest possible vehicles is best, no gains can be made if an individual is unwilling to participate in the program because the replacement vehicles being offered do not meet their needs. This bill would make important strides to a beneficial outcome.

Related legislation: AB 630 (Cooper) would require ARB to expand EFMP to assist in meeting the state's GHG reduction and clean air goals and would require ARB to establish and report on progress toward achieving program goals. AB 630 passed out of this committee on a 10-4 vote on March 20, 2017, and is awaiting a hearing in the Assembly Appropriations Committee.

Previous legislation: AB 118 (Núñez), Chapter 750, Statutes of 2007, created the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 that required the Commission to implement the program and provide funding measures to specified entities to develop and deploy technologies and alternative and renewable fuels in the marketplace to help attain the state’s climate change policies.

AB 8 (Perea), Chapter 401, Statutes of 2013, extended until January 1, 2024, extra fees on vehicle registrations, boat registrations, and tire sales in order to fund the programs that support the production, distribution, and sale of alternative fuels and vehicle technologies, as well as air emissions reduction efforts.

SB 1275 (de León), Chapter 530, Statutes of 2014, established the Charge Ahead Initiative, to, among other things, provide incentives to increase the availability of ZEVs and NZEVs, particularly to low-income and moderate-income consumers and DACs.

REGISTERED SUPPORT / OPPOSITION:

Support

Valley CAN

Opposition

None on file

Analysis Prepared by: Victoria Alvarez / TRANS. /