BILL ANALYSIS
AB 2558
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Date of Hearing: April 30, 2008
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Anna Marie Caballero, Chair
AB 2558 (Feuer and Levine) - As Amended: April 23, 2008
SUBJECT : Los Angeles County Metropolitan Transportation
Authority: climate change mitigation and adaptation fee.
SUMMARY : Authorizes the Los Angeles County Metropolitan
Transportation Authority to impose a fee on either motor vehicle
fuels or vehicle registrations to fund countywide climate change
mitigation. Specifically, this bill :
1)Authorizes the Los Angeles County Metropolitan Transportation
Authority (MTA) to impose a climate change mitigation and
adaptation fee in the County of Los Angeles, subject to
approval of an ordinance by MTA and a majority voter approval
of a ballot measure containing the fee and an expenditure
plan, for a period of no more than 30 years.
2)Specifies two alternative options for the fee:
a) A motor vehicle fuel fee, the rate to be determined by
MTA, but not to exceed 3% of the retail sales price of
motor vehicle fuel; or
b) A vehicle registration fee that would vary based on the
emissions produced by the vehicle based on consultations
with the Department of Motor Vehicles (DMV) and other
appropriate state or federal agencies, not to exceed $90.
3)Requires that the ordinance must appear on the ballot no later
than November 6, 2009.
4)Exempts vehicle owners who meet eligibility requirements for
specified assistance programs from payment of the fee.
5)Limits MTA administrative costs to implement the program to no
more than 2% of the fee revenues.
6)Requires that fee revenues be deposited in the Climate Change
Mitigation and Adaptation Fund to be used to fund projects and
programs consistent with the expenditure plan.
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7)Authorizes MTA to use some revenues for a competitive grant
program for the county and cities.
8)Provides that the net fee revenues are to be used solely for
public transit projects and programs and congestion management
projects and programs.
9)Requires that a minimum of two-thirds of the net revenues be
used for public transit projects and programs.
10)Requires that any capital project listed in the expenditure
plan to be approved by the voters be able to begin
construction no later than December 31, 2018.
11)Authorizes MTA to issue bonds, payable from fee revenues.
EXISTING LAW :
1)Creates MTA with specified powers and duties relative to
transportation planning, programming, and operations in the
County of Los Angeles.
2)Imposes a state vehicle fuel excise tax of 18 cents per gallon
of gasoline or diesel fuel collected from fuel distributors or
wholesalers, with equivalent taxes levied on other types of
vehicle fuels.
3)Imposes various fees on the registration of vehicles, except
with respect to certain vehicles that are exempt from those
fees.
4)Authorizes specified agencies to impose additional vehicle
registration fees on a regional or local basis for various
specialized purposes, which are collected by DMV and
transmitted to the affected agency.
FISCAL EFFECT : None
COMMENTS :
1)According to the authors, "A chief cause of global warming is
carbon dioxide emissions, and carbon emissions are of special
concern in Los Angeles. The American Lung Association State
of the Air: 2007 report ranked Los Angeles as the city with
the worst air quality in the country. Carbon emissions from
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passenger vehicles contribute to Los Angeles' poor air
quality. According to the National Resources Defense Council,
statewide, carbon dioxide and other emissions from cars and
light trucks are responsible for one third of climate change
pollution."
2)AB 2558 is predicated on the idea that promoting the
construction and use of public transit is an important means
for Los Angeles County to use in addressing the reduction of
its contribution to greenhouse gas (GHG) emissions. According
to the California Transit Association (CTA), increasing the
use of public transit would considerably lower air pollution,
since public transportation produces 95% less carbon monoxide,
90% less in volatile organic compounds, and about half as much
carbon dioxide and nitrogen oxide per passenger mile, compared
to private vehicles. According to the California Student
Public Interest Research Group, public transit on average gets
57 miles per gallon per passenger, which is three times more
efficient than these passengers driving their cars.
3)The authors believe that AB 2558 will provide a means for Los
Angeles County to address air pollution and global warming
caused by carbon emissions, by creating a revenue source for
programs that will address these issues. According to MTA,
"transportation contributes more than 41% of GHG emissions in
California, and the use of private vehicles are more than 85%
of that amount?In 2006?Los Angeles County residents traveled
80.14 billion miles using 4.73 billion gallons of fuel
resulting in approximately 39-40 million metric tons of CO2,
or one fifth of the state's transportation carbon
footprint?VMT [vehicle miles traveled] reduction is key to the
transportation sector meeting climate change and air quality
goals.
A significant investment in our public transportation system and
congestion management programs will help reduce the impacts of
GHG emissions from VMT and fuel consumed growth. The fee will
be issued at the pump or in a vehicle fee based on the type.
The less efficient the car, the greater GHG emissions per
mile. The funds from the fees collected will be targeted to
providing the county with more transportation choices."
4)AB 2558 deals only with Los Angeles County. Even though, as
MTA noted above, this county accounts for 20% of the entire
state's transportation carbon footprint, it is still only a
part of the complex picture of California's GHG problems. AB
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32 (Nu?ez and Pavley), Chapter 488, Statutes of 2006, requires
the Air Resources Board (ARB) to adopt a statewide GHG
emissions limit equivalent to 1990 levels by 2020, and to
adopt regulations to achieve maximum technologically feasible
and cost-effective GHG emission reductions by 2012.
AB 32 calls for GHG emissions to be reduced based on types of
sources, not geographical regions. This is because GHGs,
unlike other types of emissions, have a diffuse, statewide
(global, in fact) impact. In other words, the impacts of
global warming will not only be felt in the areas where large
amounts of GHGs are generated. The Committee may wish to
consider the prudence of getting out in front of the AB 32
process and authorizing local programs in a more or less
piecemeal fashion. Such programs run the risk of conflicting
with statewide strategies and regulations. Also, enacting a
voter-approved local fee may make it much more difficult to
obtain similar approval for later, statewide fees or taxes if,
as is likely, ARB determines they are necessary to implement
AB 32.
5)This bill was heard by the Committee on Transportation on
April 14, 2008, and passed with an 8-5 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
Amalgated Transit Union
American Lung Association of CA
CA Public Interest Research Group
CA Teamsters Public Affairs Council
CA Transit Association
Coalition for Clean Air
Environment CA
Friends of the Earth
Los Angeles Business Council
Los Angeles County Metropolitan Transportation Authority
Natural Resources Defense Council
Southern CA Rail Riders Union
Southern CA Transit Advocates
Valley Industry and Commerce Association (if amended)
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Opposition
CA Beer and Beverage Distributors
CA Chamber
CA New Car Dealers Association (unless amended)
Stop Hidden Taxes Coalition
Western States Petroleum Association
Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958