CC - Item 4I - SB98 & AB38 Retention of Motor Vehicle Tech Fee ;5 E M_E.
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: V n\FRANK G. TRIPEPI, CITY MANAGER '
DATE: IOJf' MARCH 17, 1999
RE: SB 98 (ALARCON) & AB 38 (WASHINGTON)-RETENTION OF $1
MOTOR VEHICLE TECHNOLOGY FEE- SUPPORT
Last May the City Council supported AB 2194 (Washington)to continue the$1 fee on motor
vehicle license renewals. That bill was approved by the legislature but vetoed by then Governor
Wilson. SB 98 (Alarcon) and AB 38 (Washington) are identical to last year's bill. The current fee
is scheduled to sunset this August.
Attached is a letter from the South Coast Air Quality Management District requesting that we
send letters of support to Senator Alarcon and Assemblymember Washington. Also attached are
both bills and a fact sheet.
RECOMMENDATION
It is recommended that the City Council support SB 98 (Alarcon) and AB 38 (Washington) and
direct staff to prepare the necessary correspondence for the Mayor's signature.
COUNCIL AGENDA
MAR 2 31999
ITEM No. . . Z
2
m.2/2
RPR 09 '43 OB a5PM
South Coast
c �!
Air Quality Ma ,.gement District
• 21865 E. Cop ey Drive, Diamond'CA 91765-4182
AOMLS- (909) 396-20- 'i ttp://www.agrp'Igov
't
n � February 18, 1999
Dear City Managers,
Last May, we received your city's support in our efforts to get legislative reauthorization
to continue a$1 fee on the renewal of motor vehicles in our jurisdiction to fund our Clean
Fuels Program. That bill, AB 2194 (Washington) was approved in both the Senate and
Assembly in bipartisan cooperation, but was vetoed by Governor Wilson.
This year, we again ask your support for our Clean Fuels Program. There are two bills,
SB 98 (Alarcon), and AB 38 (Washington), that are identical to last year's bill, AB 2194,
which you supported. We believe that this legislation is critical in allowing us to meet
clean air standards by 2010, as required under the federal Clean Air Act. It will allow our
clean fuels program to continue its partnerships with the public and private sectors to find
further applications for heavy-duty trucks, locomotives and municipal fleets to run on
alternative-energy sources such as fuel cells, electricity and compressed natural gas.
We are proceeding with this as an urgency bill. The Senate Transportation Committee
will hear SB 98 on March 2, 1999. We ask you to reaffirm your support for this program
by faxing a letter of support from your city directly to the Chairperson of the Senate
Transportation Committee, Betty Karnette, at(916-327-9113)with a copy to us, or call
mc to express your continued support at(909-396-3242).
Thank you.
Sincerely,
Oscar Abarca
Director of Intergovernmental
Affairs
MPR 04 '99 C4:59PM PUBLIC AFFAIRS 0.3112
•
Fact Sheet •
Senate Bill 98 (Alarcon), and Assembly Bill 38 (Washington)
• In 1988 the State Legislature authorized the adoption of a$1 surcharge on vehicle registrations
within the South Coast Air Quality Management District to fund a clean fuels program to find and
nurture new technologies to reduce air pollution.
Since1988,every dollar invested from this vehicle surcharge has been matched by another$4
invested by private industry,universities and other public agencies,effectively leveraging the
program's $60 million investment to obtain$2S0 million in public/private matching funds to
finance research and development projects valued at Sore than$310 million.
The existence of this program has resulted in a vibrant public/private partnership engaged in
developing new technologies to combat air pollution, with 87 of these programs currently
underway.
This program has been instrumental in the development and deployment of low- and zero-
emission technologies in critical transportation applications,including but not limited to:
advanced electric cars;the world's first fuel cell buses; hybrid-electric delivery trucks; and
locomotive engines running on liquefied natural gas.
The local SoutheniCalifomia economy has benefited from tens of millions of dollars in
public/private investments in clean fuel technologies since 1989. •
40%of the emissions reductions needed in the South Coast District to meet federal clean air
standards for ozone by 2010 rely on advanced technologies that do not exist today.
A variety of products funded by this program have resulted in real emission reductions through
the introduction of zero-emitting vehicles powered by fuel cells and clean fueled public transit
buses. -
The existing program has provided necessary research and development resources to technologies
that might not have become commercially available without such investment.
The successful commercialization of technologies essential to achieving acceptable air quality in
the South Coast District is dependent on the continuation of the advanced technology program.
Senate Bill 98, authored by Senator Richard Alarcon, and Assembly Bill 38, authored by
Assembly Member Carl Washington, both introduced in the 1999 session of the California
Legislature,would continue the clean fuels program until 2004,•assuring that it will be an integral
program to the regional.efforts to achieve the federal air quality health standard for ozone by
2010.
Mcq 04 '99 94:59°M CU9LIC PrFPIRS a,4/:T
CALIFORNIA LEGISLATURE-1999-0D REGULAR SESSION
•
ASSEMBLY BILL No. 38
Introduced by Assembly Member Washington •
(Coauthor: Assembly Member Wesson)
•
• December 7, 1998
•
An act to repeal and add Section 9250.11 of the Vehicle •
Code, relating to vehicles, and declaring the urgency thereof,
to take effect immediately.
•
LEGISLATIVE COUNSEL'S DIGEST
AB 38, as introduced, Washington. • Vehicles: fees: air
pollution.
The Lewis-Presley Air Quality Management Act requires •
the South Coast Air Quality Management District to establish
a program to encourage .participation in projects to increase
the utilization of clean-burning fuels, Existing law, until
August 1, 1999, also authorizes the south coast district. to
impose a $1 fee on the renewal of registration of motor
vehicles in the district, to fund that program.
This bill would extend that motor vehicle registration fee
authority until August 1, 2004. •
This bill would declare that it is to take effect immediately
as an urgency statute.
Vole: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
•
99
'9RR E.4 '99 05:aapM PUBLIC PFFRIRS :,.Si_2
AB 38 — 2—
The people of the State of California do enact as follows:
I SECTION I. Section 9250.11 of the Vehicle Code is
2 repealed.
3
5
-
13 --
20
21
23 and Safety Code.
26 : 4; I. - .. _ .. . :
28 fee;
29
30 aha11 adopt a,.,.eunting proecd re3 to• ensure that
31 : --
33
34
36 January 1, .2990, d„]ea,q--e, „xL.etds the &La on which it
99
MAR 04 '93 05:20PM PUBLIC AFFAIRS P.6/12
• —3 — AB 38
1 SEC. 2. Section 9250.11 is added to the Vehicle Code,
2 to read: -
3 9250.11. (a) In addition to any other fees specified in
4 this code and the Revenue and Taxation Code, a fee of
5 one dollar (SI) may be imposed -by The South Coast Air
6 Quality Management District and shall be paid to the
7 departuient, upon renewal of registration of any motor
8 vehicle subject to Part 5 (commencing with Section •
9 43000) of Division 26 of the Health and Safety Code and
10 registered in the south coast district, except any vehicle
11 that is expressly exempted under this code from the
12 payment of registration fees.
13 (b) Prior to imposing fees pursuant to this section, the
14 south coast district board shall approve the imposition of
15 the. fees through the adoption of a resolution by both a
16 majority of the district board and a majority of the district
17 board who are elected officials. After deducting all costs
18 incurred pursuant to this section, the department shall
19 distribute the additional fees collected pursuant to
20 subdivision (a) to the south coast district, which shall use
•
21 the fees to reduce air pollution from motor vehicles
22 through implementation of Section 40448.5 of the Health •
23 and Safety Code.
24 (c) Any memorandum of understanding reached
25 between the district and a county prior to the imposition
26 of a one dollar ($1) fee by a county shall remain in effect
27 and govern the allocation of the funds generated in that
28 county by that fee. •
29 (d) The South Coast Air Quality -Management District •
• 30 shall adopt accounting procedures to ensure that
31 revenues from motor. vehicle ,registration fees are not
32 commingled with other program revenues.
33 (e) This section shall become inoperative on August 1,
34 2004, and, as of Januaiy I, 2005, is repealed, unless a later
35 enacted statute, which becomes effective on or before
36 January I, 2005, deletes or extends the dates on which it •
37 becomes inoperative and is repealed.
38 SEC. 3. This act is an urgency statute necessary for the
39 immediate preservation of the public peace, health, or
40 safety within the meaning of Article IV of the
99
• P •
•
•
MAR 04 '99 05:02PM PUBLIC AFFAIRS P.7/—:e7
AB38 _4T
1 Constitution and shall go into immediate effect. The facts
2 constituting the necessity are:
3 In. order to help ensure that continuity of the Clean
4 Fuels Program of the South Coast Air Quality
5 Management District is maintained, it is necessary that
6 this act take effect immediately.
•
•
•0
99
SPR 04 '99 05:019M PUBLIC AFrPIRS P.8/12
SENATE BILL No. 98
Introduced by Senator Alarcon
December 8, 1998
•
An act to repeal and add Section 9250.11 of the Vehicle
• Code, relating to vehicles, and declaring the urgency thereof, •
to take effect immediately.
LEGISLATIVE COUNSELS DIGEST
SB 98, as introduced, Alarcon. Vehicles: fees: air pollution.
The Lewis-Presley Air. Quality Management Act requires
the South Coast Air Quality Management District to establish
a program to encourage participation in projects to increase
the utilization of dean-burning fuels. Existing law, until
August 1, 1999, also authorizes the south coast district to
impose a $1 fee on the renewal of registration • of motor
vehicles in the district, to fund that program.
This bill would extend that motor vehicle registration fee
authority until August I, 2004.
This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
•
The people of the State of California do enact as follows:
I SECTION 1. Section 9250.11 of the Vehicle Code is •
2 repealed.
• 3 9250.11. +4n addition to any other Les apeeifLJ I.
4 .6i., cede and 9,., Revenue—end 7:•atien Code, a f,._ of
5 one duller ($1) may b„ i.opea.d by the Soath Coast
99
MAR e4 '99 05:01PM PUBLIC AFFAIRS P.9/12
SB 98 —2—
•
4 4.3COp) of. D:ris:en 26 -of th.. Ikaith and S..f„ty Code LAi
5
-
7 pey.,,,.nt of registra.:e..Les.
8
10 thx Le„ through the adoption of a rrs.,llition by h.,th a
13 i.,ewa.d pursuant to . this „eetion, the d..paremee—akall
J4
17 through implementation of -Seetion 10118.5 of the Health
18 cudSnfct - —
19 (e) Any T -,..emeraedir... of u:,dhistandiag a,a21...1
20 - - •-- - - _ •- .
•23 tou.,ty L, that Le.
24 (e) The South Coast Air Quality M.,nugettent Dila-;et
25 -• ::_: : -•: - - - -
26 a..,...,...., fr.m. watch' .ehi.lc .egiatrat,en Les- o.,. ;,et
28 . . .. .._ .- _
29 ... :• ... , :eth . .
•
31 Janina-) 1,, 2000, th.Lths er extends the dat„s o.. whieh ;t
32 hceo.,..,., i..eperati.e ,std is r:.pealcd.
33 SEC. 2. Section 9250.11 is added to the Vehicle Code,
34 to read:
35 9250.11. (a) In addition to any other fees specified in
36 this code and the Revenue and Taxation Code, a- fee of
37 one dollar ($1) may be imposed by the South Coast Air
38 Quality Management District and shall he paid to the
39 department, upon renewal of registration of any motor
40 vehicle subject to Part 5 (commencing with Section
99
•
MR2 0= '99 95:C�t°M PUL_ IC RFFRIRS P. 'Qilc
—3— SB98
I 43000) of Division 26 of. the Health and Safety Code and
2 registered in the south coast district, except any vehicle
3 that is expressly exempted under this code from the
• 4 payment of registration fees.
•
5 (b) Prior to imposing fees pursuant to this section, the
6 south coast district board. shall approve the imposition of
7 the fees through the adoption of a resolution by both, a
8 majority of the district board and a majority of the district
9 board who are elected officials. Afterdeducting. all costs
10 incurred pursuant to this section, the department shall
11 distribute. the additional fees collected pursuant to
12 subdivision (a) to the south coast district, which shall use
13 the fees to reduce air pollution from motor vehicles
14 through implementation of Section 40448.5 of the Health
•15 and Safety Code.
• 16 • (c) Any memorandum of understanding reached
17 between the district and a county prior to the imposition •
18 of a one dollar (Si) fee by a county shall remain in effect
• 19 and govern the allocation of the funds generated in that
20 county by that fee_
21, (d) The South Coast Air Quality Management District •
22 shall adopt accounting procedures to ensure that
23 revenues from motor vehicle registration fees are not
24• commingled with other program revenues.
25 (e) This section shall become inoperative on August 1,
26 2004, and, as of January 1, 2005, is repealed, unless a later
27 enacted statute, which becomes effective on or before
28 January 1, 2005, deletes or extends the' dates 'on which it
29 becomes inoperative and is repealed.
30 SEC. 3. This act is an urgency statute necessary for the •
31 immediate preservation of the public peace, health, or
32. safety within the meaning of Article IV of the
33 Constitution and shall go into immediate effect. The facts
34 constituting the necessity are:
35 In order to help ensure that continuity of the Clean
36 Fuels Program of the South Coast Air Quality •
37 Management District is maintained, it is necessary that •
38 this act take effect immediately.
0
B4
MAR 04 '99 05:02PM PtBLIC AFFAIRS P. 11/1E
•
•
DRAFT
February 23, 1999
•
The Honorable Richard Alarc6n
The State Senate
State Capitol Room 4066
Sacramento, CA 95814 •
Re: SB 98 (Alarcon) and AB 38 (Washington)— Support
SB 98 and AB 38 are important legislation for all cities in Southern California because
these bills will provide finding for the Clean Fuels Program. Funding provided for
technological research under current legislation has allowed the AQMD to develop
projects that have resulted in dramatic air quality improvements and enhanced economic ,
growth.
SB 98 and AB 38 ensure funding for continuation of this effort through a $1.00 fee
already being paid in vehicle registration and does not represent any new tax or fees on
individuals.
Please help us to meet Federal requirements to improve regional air quality by
SUPPORTING SB 98 and AB 38.
•
Sincerely,
Mayor
•
cc: Assembly and Senate Representatives
City Council Members
Barry Wallerstein, Executive Officer, SCAQMD
MPR 04 '99 05:02PM PUBLIC RFFRIRS P.12't2
DRAFT
February 23, 1999
•
The Honorable Carl Washington
The State Assembly
State Capitol Room 2136
Sacramento, CA 95814
Re: SB 98 (Alarcon) and AB 38 (Washington)—Support
SB 98 and AB 38 are important legislation for all cities in Southern California because
these bills will provide funding for the Clean Fuels Program. Funding provided for
technological research under current legislation has allowed the AQMD todevelop
projects that have resulted in dramatic air quality improvements and enhanced economic
growth.
SB 98 and AB 38 ensure funding for continuation of this effort through a$1.00 fee
already being paid in vehicle registration and does not represent any new tax or fees on
individuals.
Please help us to meet Federal requirements to improve regional air quality by
SUPPORTpNG SB 98 and AB 38.
Sincerely,
•
Mayor
cc: Assembly and Senate Representatives
City Council Members
Barry Wallerstein, Executive Officer, SCAQMD