California Assembly Bill AB2145 Latest Draft

 BILL NUMBER: AB 2145INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Linder FEBRUARY 17, 2016 An act to amend Sections 44125 and 44258.4 of the Health and Safety Code, relating to vehicular air pollution. LEGISLATIVE COUNSEL'S DIGEST AB 2145, as introduced, Linder. Vehicle replacement: rebates. Existing law requires the State Air Resources Board, in consultation with the Bureau of Automotive Repair, to adopt a program, known as the enhanced fleet modernization program, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles. Existing law, for the purposes of calculating the vehicle license fee, requires the Department of Motor Vehicles to determine the market value of the vehicle on the basis of the cost price to the purchaser, not including California sales or use tax or any local sales, transactions, use, or other local tax, as specified. This bill, for the purpose of calculating the vehicle license fee, would authorize the amount of compensation provided to a low-income motor vehicle owner under the enhanced fleet modernization program to be deducted from the motor vehicle's price, as specified. The bill would require the state board to develop a standardized certificate for issuance to recipients of compensation that states the amount of compensation received, and would require the Department of Motor Vehicles to adjust the motor vehicle's price accordingly, upon submission of that certificate to the department by the vehicle owner. This bill would also, for the purpose of calculating the vehicle license fee, authorize the amount of a vehicle replacement rebate provided to a low- or moderate-income purchaser under the Charge Ahead California Initiative to be deducted from the motor vehicle's price, as specified. The bill would require the state board to develop a standardized certificate for issuance to low- or moderate-income rebate recipients that states the amount of the rebate received, and would require the Department of Motor Vehicles to adjust the motor vehicle's price accordingly, upon submission of that certificate to the department by the vehicle owner. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. 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. (c) 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 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) (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  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. 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) 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) 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, to ensure vehicle owners participate in the appropriate program to maximize emissions reductions. (8) Streamlined administration to simplify participation while protecting the accountability of moneys spent. (9) Specific steps to ensure the vehicle replacement and mobility option component of the program is available in areas designated as federal extreme nonattainment. (10) 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. (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) The amount of compensation provided to a low-income motor vehicle owner pursuant to this section may be deducted from the replacement vehicle's price when calculating the cost price to the purchaser pursuant to Section 10753 of the Revenue and Taxation Code. The state board shall develop a standardized certificate for issuance to recipients of compensation that states the amount of compensation received. Upon submission of this certificate to the Department of Motor Vehicles by the vehicle owner, the Department of Motor Vehicles shall adjust the cost price to the purchaser as authorized by this subdivision.   (e)   (f)  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. 2. Section 44258.4 of the Health and Safety Code is amended to read: 44258.4. (a) Any moneys utilized  by this act   pursuant to this chapter  from the Greenhouse Gas Reduction Fund, established 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 Air Quality Improvement Program funding plan for the 2016-17 fiscal year, 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)  (i)    Eligibility is limited based on income.  (ii) For applicants classified as low or moderate income under the criteria adopted pursuant to this paragraph, the amount of the rebate may be deducted from the motor vehicle's price when calculating the cost price to the purchaser pursuant to Section 10753 of the Revenue and Taxation Code. The state board shall develop a standardized certificate for issuance to low- or moderate-income rebate recipients that states the amount of the rebate received. Upon submission of this certificate to the Department of Motor Vehicles by the vehicle owner, the Department of Motor Vehicles shall adjust the cost price to the purchaser as authorized by this clause.  (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 44125) 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.