BILL ANALYSIS
AB 118
Page 1
ASSEMBLY THIRD READING
AB 118 (Nunez)
As Amended June 1, 2007
Majority vote
TRANSPORTATION 9-4 APPROPRIATIONS 12-5
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|Ayes:|Nava, Carter, DeSaulnier, |Ayes:|Leno, Caballero, Davis, |
| |Galgiani, Karnette, | |DeSaulnier, Huffman, |
| |Portantino, Ruskin, | |Karnette, Krekorian, |
| |Solorio, De Leon | |Lieu, Ma, Nava, Solorio, |
| | | |Feuer |
|-----+--------------------------+-----+--------------------------|
|Nays:|Duvall, Garrick, Houston, |Nays:|Walters, Emmerson, La |
| |Huff | |Malfa, Nakanishi, Sharon |
| | | |Runner |
| | | | |
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SUMMARY : Enacts the California Alternative and Renewable Fuel,
Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007.
Specifically, this bill :
1)Makes numerous findings and declarations relative to
greenhouse gas emissions as well as the need to develop
alternative fuels and vehicle technology.
2)Establishes definitions for alternative fuel, commission, and
full fuel-cycle or life-cycle assessment.
3)Creates the Air Quality Improvement Program to fund air
quality improvement projects, upon appropriation, relating to
fuel and vehicle technologies. Requires the California Air
Resources Board (ARB) to administer the programs in
coordination with the Energy Resources Conservation and
Development Commission (CEC) and other state agencies it deems
appropriate. Eligible projects for funding include, but are
not limited to, the following:
a) Off-road equipment projects to mitigate for criteria air
pollutant and toxic air contaminant emissions not required
by control measures;
b) Projects that provide mitigation for air pollution
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resulting from on-road emissions prior to 2012 that were
associated with gas formulations resulting from the phase
out of methyl tertiary-butyl ether and its replacement,
ethanol;
c) Projects that provide mitigation for off-road gasoline
exhaust and evaporative emissions not currently regulated
by ARB;
d) Projects that provide research to determine the air
quality impacts of alternative fuels and projects that
study the life-cycle. Impacts of alternative fuels and
conventional fuels, the emissions of biofuel and advanced
reformulated gasoline mixes, and air pollution improvement
and control technologies for use with alternative fuels and
vehicles;
e) Projects that augment the University of California's
Agriculture Extension Program as specified;
f) Incentives for small off-road equipment replacement to
encourage consumers to replace internal combustion engine
lawn and garden equipment; and,
g) Incentives for heavy-duty vehicles and equipment
mitigation, as specified.
4)Creates the Air Quality Improvement Fund to be administered by
ARB. Increases the annual smog abatement fee imposed upon
vehicles exempted from smog check from $12 to $20. Requires
that $4 of the increase be deposited into the Air Quality
Improvement Fund until January 1, 2016.
5)Creates the Alternative and Renewable Fuel, Vehicle
Technology, Carbon Reduction, and Clean Air Program as
follows:
a) Requires the CEC, in partnership with ARB and other
state agencies it deems appropriate, to administer the
program;
b) Requires ARB to adopt and submit to CEC criteria to
ensure that the activities are complementary and not
interfere with efforts to achieve and maintain federal and
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state air quality standards and reduce toxic air
contaminants;
c) Provides grants and revolving loans to public agencies,
California-based businesses, public-private partnerships,
vehicle technology and consortia for attainment of climate
change policies;
d) Establishes complementary funding to existing public and
private investments;
e) Requires CEC to establish an advisory body to implement
program strategies. The advisory body is to include
representatives from the State Resources Agency, the
Business, Transportation and Housing Agency, Cal EPA, and
other representatives as specified;
f) Requires CEC, in coordination with ARB and the advisory
body, to establish criteria and priorities for the awarding
of the grant funds in accordance with specified criteria;
and,
g) Establish a listing of projects eligible for funding
from the program.
6)Creates the Alternative and Renewable Fuel, Vehicle
Technology, Carbon Reduction, and Clean Air Fund (Alternative
and Renewable Fuel Fund) to be administered by the Energy
Commission. Provides revenue sources to the Alternative and
Renewable Fuel Fund as follows:
a) Requires $5 million to be transferred annually from the
Public Interest Research, Development, and Demonstration
Fund;
b) Transfers $30 million from the Williams settlement
funds;
c) Transfers $6.5 million from the Motor Vehicle Account;
d) Requires that $4 of the $8 increase in the smog
abatement fee (as proposed by the bill), be deposited until
January 1, 2016;
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e) Requires $2 from the proposed increase of the vehicle or
trailer coach registration fee from $31 to $33 be deposited
until January 1, 2016;
f) Require s$5 from the proposed service fee increase for
special identification plates from $15 to $20 be deposited
until January 1, 2016;
g) Requires$10-$20 from the proposed vessel registration
fee increase be deposited until January 1, 2016; and,
(Note: Of the $20 increase, the bill directs the deposit of
$10, but not the additional $10.)
h) Require $1 from the proposed increase in driver's
license fees be deposited until January 1, 2016.
EXISTING LAW :
1)Imposes various limitations on emissions of air contaminants
for the control of air pollution from vehicular and
nonvehicular sources.
2)Designates ARB as the state agency with the primary
responsibility for the control of vehicular air pollution.
3)Requires ARB and Energy Commission, in conjunction with other
state agencies, to develop and adopt a state plan to increase
the use of alternative fuels, as defined.
4)Requires, on or before January 1, 2008, ARB to adopt
regulations requiring greenhouse gas emission sources to
monitor and report their emissions to ARB, and specifies
detailed criteria for the adoption and compliance with those
regulations.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Costs, in the tens of millions of dollars annually starting in
2009-10, to ARB to administer the Air Quality Improvement
Program. Funding for this program could come from the Motor
Vehicle Account, eligible Proposition 1B bond proceeds,
increases in or reallocations from current special excise
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fees, new fees or the General Fund.
2) Costs, in the tens of millions of dollars annually
starting in 2009-10, to Energy Commission to administer and
award grants under the Alternative and Renewable Fuel, Vehicle
Technology, Carbon Reduction, and Clean Air Program. (Same
funding sources)
COMMENTS :
1)It is the author's contention that "in order to achieve the
low-carbon fuel standard currently being developed by ARB, it
will be necessary to replace 20% of gasoline consumption with
lower carbon fuels and increase the number of alternative fuel
or hybrid vehicles to more than seven million. These
estimates represent a tripling of the state's renewable fuels
market and a 20 fold increase in alternative or hybrid
vehicles over what are on the road today.
"California currently lacks the alternative fueling
infrastructure and fueling and vehicle options necessary to
meet this requirement. By providing incentives and funding
for the necessary research, development, and deployment,
California can enjoy the economic benefits of developing
in-state technologies and clean alternative fuels while
protecting and promoting our superior environmental
standards."
2)Support: Proponents of this bill contend that the state
currently lacks an ongoing funding source for research,
development, and deployment of clean fuels and advanced
vehicle technologies. They further believe that the bill can
be an important vehicle to help assist in the diversification
and transition of California's transportation fuels market to
cleaner, less carbon intensive alternative fuels.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
FN: 0001344