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AB-630 Vehicles: retirement and replacement.(2017-2018)

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Date Published: 06/28/2017 09:00 PM
AB630:v98#DOCUMENT

Amended  IN  Senate  June 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 630


Introduced by Assembly Member Cooper

February 14, 2017


An act to amend Sections 44125 and 44258.4 of, and to add Sections 44124, 44124.5, 44125.5, and 44127 to, the Health and Safety Code, relating to vehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 630, as amended, Cooper. Vehicles: retirement and replacement.
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.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund.
Existing law creates the Vehicle Inspection and Repair Fund, which serves as a repository for fees collected by the Department of Consumer Affairs pursuant to the Automotive Repair Act and the motor vehicle inspection program, also known as smog check. Existing law creates the High Polluter Repair and or Removal Account in the Vehicle Inspection and Repair Fund, and all moneys in the account are available upon appropriation to the department and the state board to establish and implement a program for the repair or removal of high polluters as part of the smog check program. Existing law creates the Enhanced Fleet Modernization Subaccount in the High Polluter Repair or Removal Account and makes available upon appropriation all moneys in the account to establish and implement the enhanced fleet modernization program.
This bill would establish the Plus Up Clean Cars 4 All Program to be administered by the State Air Resources Board to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluting high-polluter motor vehicles, vehicles with cleaner and more efficient motor vehicles or a mobility option, as specified. The bill also would require the state board, no later than July 1, 2018, to update the guidelines for the Clean Cars 4 All Program and the enhanced fleet modernization program, as specified. The bill would require the state board, beginning no later than July 1, 2019, and every year thereafter, to collect and post on its Internet Web site specified information on both programs.
This bill would authorize the state board to allocate moneys, upon appropriation, for the expansion of the replacement component or mobility option component of both programs from the Enhanced Fleet Modernization Subaccount, the High Polluter Repair or Removal Account, and the Vehicle Inspection and Repair Fund. The bill also would authorize the state board to allocate moneys, upon appropriation, from the Greenhouse Gas Reduction Fund to the Plus Up Clean Cars 4 All Program.
This bill would make conforming changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 44124 is added to the Health and Safety Code, immediately preceding Section 44124.5, to read:

44124.
 For purposes of this article, the following terms have the following meanings:
(a) “Car sharing” has the same meaning as in Section 44258.
(b) “Clean Cars 4 All” means the Clean Cars 4 All Program established pursuant to Section 44124.5.

(b)

(c) “Disadvantaged community” means a community identified pursuant to Section 39711.
(d) “High polluter” has the same meaning as in Section 44090.

(c)

(e) “Low-income state resident” or “low-income motor vehicle owner” has the same meaning as the definition of “low-income motor vehicle owner” in Section 44062.1.

(d)

(f) “Mobility option” means a voucher for public transit or car sharing.

(e) “Plus up program” means the Plus Up Program established pursuant to Section 44124.5.

(f)

(g) “Program” means the enhanced fleet modernization program established pursuant to subdivision (a) of Section 44125.

SEC. 2.

 Section 44124.5 is added to the Health and Safety Code, immediately preceding Section 44125, to read:

44124.5.
 (a) The Plus Up Clean Cars 4 All Program is hereby established and is to be administered by the state board to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluting high-polluter motor vehicles. vehicles with cleaner and more efficient motor vehicles or a mobility option.
(b) Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board shall set specific, measurable goals for the replacement of passenger vehicles and light- and medium-duty trucks that are high polluters.
(c) The state board shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for Clean Cars 4 All no later than July 1, 2018.
(d) The regulation implementing this section shall ensure all of the following:
(1) Where applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.
(2) The replacement or a mobility option is consistent with paragraph (6) of subdivision (d) of Section 44125.
(3) Provisions enhance the prescreening of applicants to Clean Cars 4 All, if determined by the state board to be appropriate.

SEC. 3.Section 44125 of the Health and Safety Code is amended to read:
44125.

(a)No later than July 1, 2009, the state board, in consultation with the bureau, shall adopt a program to commence on January 1, 2010, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The program shall be administered by the bureau pursuant to guidelines adopted by the state board.

(b)Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board, in consultation with the bureau, shall set specific, measurable goals for the retirement and replacement of passenger vehicles and light- and medium-duty trucks that are high polluters.

(c)(1)The state board, in consultation with the bureau, shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for both the program and the plus up program no later than July 1, 2018.

(2)The program shall continue to be administered by the bureau pursuant to guidelines adopted by the state board.

(3)The plus up program shall be administered by the state board pursuant to guidelines adopted by the state board.

(d)The guidelines shall ensure all of the following:

(1)Vehicles retired pursuant to the program are permanently removed from operation and retired at a dismantler under contract with the bureau.

(2)Districts retain their authority to administer vehicle retirement programs otherwise authorized by law.

(3)The program is available for high polluting passenger vehicles and light-duty and medium-duty trucks that have been continuously registered in California for two years prior to acceptance into the program or otherwise proven to have been driven primarily in California for the last two years and have not been registered in another state or country in the last two years. The guidelines may require a vehicle to take, complete, or pass a smog check inspection.

(4)The program is focused on achieving improvements to air quality and benefits to low-income state residents through the replacement of high-polluting passenger motor vehicles owned by low-income state residents.

(5)The plus up program is focused on achieving improvements in air quality and benefits to low-income state residents through the replacement of high-polluting passenger motor vehicles with cleaner and more efficient motor vehicles or a mobility option.

(6)(A)Compensation for retired vehicles shall be at least one thousand five hundred dollars ($1,500) for a low-income motor vehicle owner, as defined in Section 44062.1, and not more than one thousand dollars ($1,000) for all other motor vehicle owners.

(B)Replacement or a mobility option may be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired pursuant to subparagraph (A). For low-income motor vehicle owners, as defined in Section 44062.1, compensation toward a replacement vehicle or mobility option shall be no less than two thousand five hundred dollars ($2,500). Compensation toward a replacement vehicle for all other motor vehicle owners shall not exceed compensation for low-income motor vehicle owners. Replacement compensation may be provided either through the program or plus up program.

(C)Compensation for replacement vehicles or a mobility option for low-income motor vehicle owners may be increased or decreased as necessary to maximize the air quality benefits of the program and participation by low-income motor vehicle owners, as defined in Section 44062.1. Increases or decreases in compensation amounts may be based on factors, including, but not limited to, the age of the retired or replaced vehicle, the emissions benefits of the retired or replaced vehicle, the emissions impact of any replacement vehicle, the maximizing of the participation by low-income motor vehicle owners, and the achievement of the goals set pursuant to subdivision (b).

(7)Cost-effectiveness and impacts on disadvantaged and low-income populations are considered. Program eligibility may be limited on the basis of income to ensure the program adequately serves persons of low or moderate income.

(8)Provisions that coordinate the vehicle retirement and replacement and mobility option components of the program with the vehicle retirement component of the bureau’s Consumer Assistance Program, established pursuant to other provisions of this chapter, and the plus up program to ensure vehicle owners participate in the appropriate program to maximize participation and emissions reductions.

(9)Where applicable, improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(10)Enhancement of the prescreening of applicants to either the program or the plus up program, if determined by the state board to be appropriate.

(11)Specific steps are taken, including, but not limited to, random income eligibility verification and contact with participants of the program and plus up program at least once after their motor vehicles are replaced or retired to ensure either program is not being misused.

(12)Specific steps to ensure the vehicle replacement and mobility option component of the program is available in areas designated as federal extreme nonattainment.

(13)Specific steps are taken to ensure the program and the plus up program are available to districts with more than one million residents.

(14)A requirement that vehicles eligible for retirement have sufficient remaining life. Demonstration of sufficient remaining life may include proof of current registration, passing a recent smog check inspection, or passing another test similar to a smog check inspection.

(15)Priority in both the program and the plus up program is given to the retirement and replacement of motor vehicles that are 15 years or older and have more than 75,000 miles of usage.

SEC. 3.

 Section 44125 of the Health and Safety Code is amended to read:

44125.
 (a) No later than July 1, 2009, the state board, in consultation with the bureau, shall adopt a program to commence on January 1, 2010, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The program shall be administered by the bureau pursuant to guidelines adopted by the state board.

(b)No later than June 30, 2015, the state board, in consultation with the bureau, shall update the program established pursuant to subdivision (a). The program shall continue to be administered by the bureau pursuant to guidelines updated and adopted by the state board.

(b) Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board, in consultation with the bureau, shall set specific, measurable goals for the retirement of passenger vehicles and light- and medium-duty trucks that are high polluters.
(c) (1) The state board, in consultation with the bureau, shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for both the program and Clean Cars 4 All no later than July 1, 2018.
(2) The program shall continue to be administered by the bureau pursuant to guidelines adopted by the state board.

(c)

(d) The guidelines shall ensure all of the following:
(1) Vehicles retired pursuant to the program are permanently removed from operation and retired at a dismantler under contract with the bureau.
(2) Districts retain their authority to administer vehicle retirement programs otherwise authorized under by law.
(3) The program is available for high polluting high-polluter passenger vehicles and light-duty and medium-duty trucks that have been continuously registered in California for two years prior to acceptance into the program or otherwise proven to have been driven primarily in California for the last two years and have not been registered in another state or country in the last two years. The guidelines may require a vehicle to take, complete, or pass a smog check inspection.
(4) The program is focused where the greatest air quality impact can be identified.
(5) The program is focused on achieving improvements to air quality and benefits to low-income state residents through the retirement of high-polluter passenger motor vehicles owned by low-income state residents.

(5)

(6) (A) Compensation for retired vehicles shall be is at least one thousand five hundred dollars ($1,500) for a low-income motor vehicle owner, as defined in Section 44062.1, owner and no not more than one thousand dollars ($1,000) for all other motor vehicle owners.
(B) Replacement or a mobility option may be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired pursuant to subparagraph (A). For low-income motor vehicle owners, as defined in Section 44062.1, compensation toward a replacement vehicle or mobility option shall be no less than two thousand five hundred dollars ($2,500). Compensation toward a replacement vehicle for all other motor vehicle owners shall not exceed compensation for low-income motor vehicle owners.
(C) Compensation for either retired or replacement vehicles or a mobility option for low-income motor vehicle owners may be increased as necessary to maximize the air quality benefits of the program while also ensuring participation by low-income motor vehicle owners, as defined in Section 44062.1. owners. Increases in compensation amounts may be based on factors, including, but not limited to, the age of the retired or replaced vehicle, the emissions benefits of the retired or replaced vehicle, the emissions impact of any replacement vehicle, participation by low-income motor vehicle owners, as defined in Section 44062.1, and the location of the vehicle in an area of the state with the poorest air quality.

(6)

(7) Cost-effectiveness and impacts on disadvantaged and low-income populations are considered. Program eligibility may be limited on the basis of income to ensure the program adequately serves persons of low or moderate income.

(7)

(8) Provisions that coordinate the vehicle retirement and replacement and mobility option components of the program with the vehicle retirement component of the bureau’s Consumer Assistance Program, established pursuant to other provisions of this chapter, and Clean Cars 4 All to ensure vehicle owners participate in the appropriate program to maximize participation and emissions reductions.

(8)Streamlined administration to simplify participation while protecting the accountability of moneys spent.

(9) Where applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.
(10) Provisions enhance the prescreening of applicants to the program, if determined by the state board to be appropriate.

(9)

(11) Specific steps to ensure the vehicle replacement and mobility option component of the program is available in areas designated as federal extreme nonattainment.

(10)

(12) A requirement that vehicles eligible for retirement have sufficient remaining life. Demonstration of sufficient remaining life may include proof of current registration, passing completing a recent smog check inspection, or passing completing another test similar to a smog check inspection.

(d)When updating the guidelines to the program established pursuant to subdivision (a), the state board shall study and consider all the following elements:

(1)Methods of financial assistance other than vouchers.

(2)An option for automobile dealerships or other used car sellers to accept cars for retirement, provided the cars are dismantled consistent with the requirements of the program.

(3)An incentive structure with varied incentive amounts to maximize program participation and cost-effective emissions reductions.

(4)Increased emphasis on the replacement of high polluters with cleaner vehicles or the increased use of public transit and car sharing that results in the increased utilization of the vehicle replacement and mobility option component of the program.

(5)Increased emphasis on the reduction of greenhouse gas emissions through increased vehicle efficiency or transit and car sharing use as a result of the program.

(6)Increased partnerships and outreach with community-based organizations.

(e)For purposes of this section, the following terms have the following meanings:

(1)“Car sharing” has the same definition as in Section 44258.

(2)“Mobility option” means a voucher for public transit or car sharing.

SEC. 4.

 Section 44125.5 is added to the Health and Safety Code, to read:

44125.5.
 Beginning no later than July 1, 2019, and every year thereafter, the state board, for both the program and plus up program, Clean Cars 4 All, shall collect and post on its Internet Web site all of the following:
(a) The performance of both programs relative to the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.
(b) An accounting that includes, but need not be limited to, moneys allocated to the program and plus up program Clean Cars 4 All and the expenditures of the program and the plus up program Clean Cars 4 All by region.
(c) A performance analysis broken down by district of the replacement and mobility options component of the program and the plus up program Clean Cars 4 All to identify areas to be emphasized when setting future goals or updating the guidelines for the program and the plus up program. Clean Cars 4 All. The analysis shall include all of the following:
(1) Whether a district implementing the replacement and mobility options component of the program or the plus up program Clean Cars 4 All has a backlog or a waiting list for applicants and recommendations from the district or state board on how to eliminate the backlog or waiting list.
(2) An evaluation of the funding for targeted outreach in low-income or disadvantaged communities, including whether the funding should be enhanced or modified to reach the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.
(3) How incentive levels can be modified to maximize participation and emissions reductions.

SEC. 5.

 Section 44127 is added to the Health and Safety Code, to read:

44127.
 (a) Upon appropriation by the Legislature, the state board may allocate moneys for the expansion of the replacement component or mobility option component of the program or the plus up program Clean Cars 4 All from any of the following:
(1) The Enhanced Fleet Modernization Subaccount, created pursuant to Section 44126.
(2) The High Polluter Repair or Removal Account, created pursuant to Section 44091.
(3) The Vehicle Inspection and Repair Fund, created pursuant to Section 9886 of the Business and Professions Code.
(b) Upon appropriation by the Legislature, the state board may allocate moneys consistent with law for the plus up program Clean Cars 4 All from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

SEC. 6.

 Section 44258.4 of the Health and Safety Code is amended to read:

44258.4.
 (a) Any moneys utilized pursuant to this chapter from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, shall be consistent with the appropriations processes and criteria established by the Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act (Chapter 4.1 (commencing with Section 39710) of Part 2).
(b) The Charge Ahead California Initiative is hereby established and shall be administered by the state board. The goals of this initiative are to place in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, to establish a self-sustaining California market for zero-emission and near-zero-emission vehicles in which zero-emission and near-zero-emission vehicles are a viable mainstream option for individual vehicle purchasers, businesses, and public fleets, to increase access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles, and to increase the placement of those vehicles in those communities and with those consumers to enhance the air quality, lower greenhouse gases, and promote overall benefits for those communities and consumers.
(c) The state board, in consultation with the State Energy Resources Conservation and Development Commission, districts, and the public, shall do all of the following:
(1) (A) Include, commencing with the funding plan for the 2016–17 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9), a funding plan that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years commensurate with meeting the goals of this chapter. Funding needs may be described as a range that identifies the projected high and low funding levels needed for the two-year forecast period to contribute to technology advancement, market readiness, and consumer acceptance of zero- and near-zero-emission vehicle technologies. The funding plan shall include a market and technology assessment for each funded zero- and near-zero-emission vehicle technology to inform the appropriate funding level, incentive type, and incentive amount. The forecast shall include an assessment of when a self-sustaining market is expected and how existing incentives may be modified to recognize expected changes in future market conditions.
(B) Projects included in the forecast may include, but are not limited to, any of the following:
(i) The Clean Vehicle Rebate Project, established pursuant to Section 44274.
(ii) Light-duty zero-emission and near-zero-emission vehicle deployment projects eligible under the Alternative and Renewable Fuel and Vehicle Technology Program, established pursuant to Article 2 (commencing with Section 44272) of Chapter 8.9.
(iii) Programs adopted pursuant to paragraph (4).
(2) Update the plan required pursuant to paragraph (1) at least every three years through January 1, 2023.
(3) No later than June 30, 2015, adopt revisions to the criteria and other requirements for the Clean Vehicle Rebate Project, established pursuant to Section 44274, to ensure the following:
(A) Rebate levels can be phased down in increments based on cumulative sales levels as determined by the state board.
(B) Eligibility is limited based on income.
(C) Consideration of the conversion to prequalification and point-of-sale rebates or other methods to increase participation rates.
(4) (A) Establish programs that further increase access to and direct benefits for disadvantaged, low-income, and moderate-income communities and consumers from electric transportation, including, but not limited to, any of the following:
(i) Financing mechanisms, including, but not limited to, a loan or loan-loss reserve credit enhancement program to increase consumer access to zero-emission and near-zero-emission vehicle financing and leasing options that can help lower expenditures on transportation and prequalification or point-of-sale rebates or other methods to increase participation rates among low- and moderate-income consumers.
(ii) Car sharing programs that serve disadvantaged communities and utilize zero-emission and near-zero-emission vehicles.
(iii) Deployment of charging infrastructure in multiunit dwellings in disadvantaged communities to remove barriers to zero-emission and near-zero-emission vehicle adoption by those who do not live in detached homes. This clause does not preclude the Public Utilities Commission from acting within the scope of its jurisdiction.
(iv) Additional incentives for zero-emission, near-zero-emission, or high-efficiency replacement vehicles or a mobility option available to participants in the enhanced fleet modernization program, established pursuant to Article 11 (commencing with Section 44124) of Chapter 5.
(B) Programs implemented pursuant to this paragraph shall provide adequate outreach to disadvantaged, low-income, and moderate-income communities and consumers, including partnering with community-based organizations.