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CC – Item 4H – Staff Report – AB 2194 – Retention of $1 Motor Vehicle Technology Fee- Support \* stat feport TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER " l DATE: APRIL 7, 1997 RE: AB 2194(WASHINGTON)-RETENTION OF$1 MOTOR VEHICLE TECHNOLOGY FEE - SUPPORT In 1988. the Legislature approved a$1 fee to be added to Motor Vehicle License fees to be used by the South Coast Air Quality Management District for the development of advanced technologies and cleaner burning fuels. Since that time, the SCAQMD contends that the additional fee has resulted in innovative public/private partnerships resulting in products and technologies that have helped to clean the air in the Los Angeles basin. The fee is currently slated to "sunset" on August 1, 1999. In response, the SCAQMD is requesting support for AB 2194(Washington) which would extend the fee until August 1, 2010. 2010 is the year when the South Coast region is required to meet current EPA standards for ozone, as established by the Federal Clean Air Act. A copy of AB 2194 has been attached for the Council's review. RECOMMENDATION: It is recommended that the City Council support AB 2194 (Washington) and authorize the Mayor to send the appropriate correspondence. Ili cvmcmoab2194. COUNCIL. 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Copley Drive, Diamond Bar, CA 91765-4182 IAO • , (909) 396-2000 • http://www.agmd.gov Members of she -URGENT ACTION ITEM- Governing Board: Chairmen LOCAL RESOLUTIONS NEEDED Dr.William A.Burke Speaker or ilia Arambly FOR CLEAN FUELS PROGRAM Appo'nae Vice Common Norma J. Glover April 2, 1998 Coune membtr,Newness Bench Chins or-Orange Caunry Michael D.Anronovich Dear City Mayors and Councilmembers: suzniin,,Finn aserar Colney oils Angeles I am coming to you again asking for your assistance in a matter that is critical to local government interests. It is important that your city council adopt the Richard Alarcon counelmnmb,t.to,Angeles attached resolution in support of our Air District's Clean Fuels Program. Our Cries of Los Angeles County, Clean Fuels Program is the driving force behind the new and emerging clean air urn crr Regjo. technologies that must be in place for our region ro meet the 2010 deadline Mee Hae Lee mandated by the Clean Air Act. Senna Rule,Appomnc The attached resolution supports Assembly Bill 2194 and its reauthorization of the Ronald 0. Loveridge Clean Fuels Pro Meyer.a;.e,,;ae gram's funding mechanism. This mechanism is a$1.00 fee which Core,oils ivn,{e Couaty is already being paid upon renewal of vehicle registrations in our jurisdiction. We must have an extension of this fee so that we can continue the public/private Jon D.Mikels supr.aor.Saco:District partnerships which are now expanding the use of clean, alternative-energy sources Cuenty of San Bernardino (like fuel cells, electricity and compressed natural gas) for heavy-duty trucks, locomotives and municipal fleets. Wayne Nesrri Goaernuls Appointee Please have your City adopt this resolution as soon as possible and forward a copy Leonard Pallia to Barry Wallerstein, Acting Executive Officer. so that we can make sure it gets Cnuncdmember,Monr;Li r into the right hands at our State Legislature. Thank you for your help and please Gan ofSau aera,rdmo tuonty feel free to call Oscar Abarca, Intergovemmental Affairs Director(909-396- James W. Silva 3242), or myself(909-620-1240)if you have any questions. seeember.salad Dame Cnoneyn'Oange Sincerely, Nell Soro Cer.Nome /Lea/ AnF.rinGcounty/ FLttm ReSiw S. Roy Wilson,Ed.D. Nell Soto seeemaet Founh Divricr Cogency of Riverside 333 09 '99 08:599P1 SCCCMD CPO 909 3% 29E1 r. 0 '101 South Coast Air Quality Management District 21865 E. Copley Drive, Diamond Bar, CA 91765-4182 (909) 396-2000 - http://www.agmdgov Members of The Governing Board: Chairman April 8, 1998 Dr. William A. Burke 5pnk1 of the Assrm5ly Appointee Vice Chairman The Honorable Jay T. Imperial, Mayor Norma J. Glover Ci[ of Rosemead Couniilmenkr.Newport Bnch y Cues of oangr County 8838 East Valley Boulevard Rosemead, CA 91770 Michael D. Anronovich Sua:Roos Pkh assort Gainey of Loi Angeles As your representative on the Governing Board of the South Coast Air Quality Management District, I am seeking your support for a bill in the California Richard Alarcon Assembly that would reauthorize funding for clean fuels research. Councilmunbei.Lo Angeles Crie of Lw Acgdn County; Wrsma Rrvon Existing law authorizes the South Coast Air Quality Management District to impose a $1.00 fee on the renewal of motor vehicles in our jurisdiction to fund the Mee Hae Lee Clean Fuels Program. The existing legislation, which allows the money to be used Pai^tt to fund clean fuels research and demonstration projects, expires next year, If Ronald O. Loveridge signed into law, Assembly Bill 2194 (authored by Assemblymember Carl ts,yor,ail,:ra,ae Washington) will extend the funding through 2010. Coes of Riverside Cowry Jon D.Mike's Despite a high population growth rate, the South Coast Air Basin -- comprised of Superman!,Second Dis:,ia the urban portions of Los Angeles, Orange, Riverside, and San Bernardino c^wry of San Bernardino counties -- has experienced significant air quality thanks inProgram.q ty improvements in recent years, Wayne Naza; part to the Clean Fuels vvv-mor;Appointee Nevertheless, we still have the nation's worst air quality. This bill's passage is Leonard Paulirz critical in allowing us to meet federal standards by 2010, as required under the Couna nunber.UamdL! Cauca of San&march°County Clean Air Act. It will allow our Clean Fuels Progam to continue its partnerships with the public and private sectors to find further applications for heavy-duty James W.Silva trucks, locomotives, and municipal fleets to run on alternative-energy sources such Supcnioni.wane Dig rear as fuel cells, electricityand compressed natural gas. 9' uno(Onnge p Nell Soro Counolmunkr,Pomona Gum of Los Mgdu Counryl Espana Region S. Roy Wilson,Ed.D. Supervisor,Fourth OISITICI County of Riverside RPR 09 '99 08:58PM SCROMD CPO 909 396 2951 P.4i10 2_ We have drafted a resolution (attached) for your review and adoption. AQMD staff will be in touch with your city manager to request that the resolution be placed on a future council agenda. In the meantime, feel free to contact Oscar Abarca, Intereovemmental Affairs Director, at (909) 396-3242 should you have any questions. ely, �' Iff, ' � Neell!lSnl Soto Councilmember, City of Pomona AQMD Governing Board Member OA:DR:mt cc: Batty Wallerstein Attachment APR 09 '98 03:59RM SCQQ,MD CPO 909 395 2961 P,5/10 April 7, 1998 The Honorable Kevin Murray Chairman, Assembly Transportation Committee 600 Corporate Pointe#1020 Culver City, California 90230 Dear Chairman Murray: As mayor of the City of Glendale, I strongly urge your support for Assembly Bill 2194 now pending before the Legislature. AB 2194 reauthorizes a S1 surcharge on vehicle registrations with the South Coast Air Quality Management District to fund a clean fuels program to develop new technologies to reduce air pollution. Support of this bill reflects a broad consensus among my constituents that clean fuels technology is vital to the ability of the South Coast Air Basin to meet the requirement of the Federal Clean Air Act to reduce emissions from motor vehicles by 40 percent by the year 2010. We depend on technologies that do not exist today to meet this requirement. Funding for clean fuels technology research authorized under the current legislation has allowed AQMD to develop innovative projects through joint ventures with the private sector, resulting in dramatic air quality improvements, enhanced economic growth and a better relationship between government and industry. Despite our gains, however, we are far from meeting federal clean air standards and time is running out. Therefore, we urge an "aye"vote on AB 2194. Sincerely, Larry Zarian, Mayor City of Glendale cc: Barry R. Wallerstein Acting Executive Officer, SCAQMD RPP 9-'99 as 4qh%"C .-40.RD C°O 49q 9E 29E1.13 ?.Ella League of California Cities Los Angeles County Division 602 East Huntington Drive, Suite C April 0 199s Monrovia, California 91016 Telephone (626) 305-1315 Fax (826) 305.1345 SIDE The Honorable Kevinww,caeities.org Chair, Tr MurrayMa Mouw Transportation Commit(e:e Marshall Mayor Pro Tem California StateAssembly Glendora Room 4126 Sacramento, CA 95814 PBE IDQHT E v Boyd Condie RE: 19 Mayor --- -4 (Washington) Vehicle Fees; Air pollution lilham Mayor Reauthorization of Clean Fuels Program funding mechanism Notice of Support lisler os An The L Bob Pin2ler gcies.County Division of the League of California Cities has Mayor Pro Tern adopted a position is support of 194, The Los Angeles Co Redondo Reath comprised of(oral elated officials, is the largest of its!cindin the utas Division, represents 86 cities. state and TREASURER Beatrice Pico &Latta is important to all of the cities in Southern California because it Council Member continues to provide finding for the Crean Fuels program, The$1.00 fee is Pico Riven already being paid each time vehicles are registered in this area and does not represent any new taxes or fees on individuals. For cities in the Los Angeles Margaret CGUR fIBECT011 region, t�e bill �lis for municipal because it helps expand the use of clean, Council Member unidpal fleets Moreover, the funding from Rosemead this program helps to advance research on new technologies to improve rregi nal air quality.and control measuhoutre additional funding, cities will have to rely on In an era where regional es and more stringent re > nal economic development and buussines attraction businesses. important, further regulations would be d atuactfon is so detrimental to the regional economy. For these reasons, the Los Angeles County,Division of California Cities supports AB _2!94feel. Please the contact League of our position on this measure, to me regarding Sincerely, h# hail Mouw, President V r Los Angeles County Division League of California Cities RPR 09 '99 09:59RM SCPOMD CPO 929 395 2%1 P.7/1O EiSouth Coast Air Quality Management District 21865 E. Copley Drive, Diamond Bar. CA 91765-4182 IAG (909) 396-2000 - http_//www.agmd_gov REVMED3113/98 Summary of Assembly Bill 2194 By Assembly Member Carl Washington • State law enacted in 1988 requires the South Coast AQMD to establish a program to encourage participation in projects to increase the use of clean-burning fuels. • Existing law authorizes the South Coast AQMD to impose a $1 fee on the renewal of motor vehicles in the District to fund this Clean Fuels Program. • Legislative authority to impose this fee expires on August 1, 1999. • AB 2194 extends this fee until August 1, 2010. • 2010 is the date when the South Coast region is required to meet current EPA health standard for ozone under the federal Clean Air Act. • More stringent health standards recently promulgated by the EPA makes the South Coast region even more dependent on developing new technologies. RPR 03 '99 09:O3RM SCROMD CPO 909 396 2951 P.9/10 gaiSouth Coast Air Quality Management District AQ r, 21865 E. Copley Drive. Diamond Bar, CA 91765-4182 (909) 396-2000 • http://www.agmd.gov REVISED 3'13/98 South Coast AQMD's Clean Fuels Program What Is the Clean Fuels Program? Under the AQMD's Technology Advancement Office, this program: • Finds and nurtures clean fuels technologies for transportation and other mobile sources of air pollution. • Creates public-private partnerships to invest in these research and development projects. • Utilizes funds derived from Si on the registration fee for vehicles within the AQMD, generating $9.5 million annually. Why is this a Good Use of Public Funds? • AQMD leverages these funds by obtaining $4 in matching funds from private industry and other public agencies for every $1 from AQMD. • Since 1988, AQMD has leveraged its $60 million in Clean Fuels funds to obtain $250 million in matching funds from private sector and other partners to fund clean fuels projects valued at more than $310 million. Who are South CoastADM's Clean Fuels Partners? • Heavy-duty truck engine manufacturers: Detroit Diesel, Mack Trucks, Cummins, John Deere, Navistar, Caterpillar • Automakers: Ford, GM, Chrysler, Toyota, Honda, Nissan, Volkswagen, Hyundai, Volvo • Fuel cell developers: Ballard, Allied Signal, ONSI, Energy Partners • Fleet owners Vons, United Parcel Service, Federal Express, McKesson Water (Sparkletts), Arrowhead, Ryder, Golden State Foods, Wal-Mart, Unocal, Pima-Gro, Los Angeles Times, LA MTA, OCTA, Sunline Transit, OC Sanitation Districts, City of Glendale, City of Los Angeles • Universities' UCLA, UC Riverside, UC Irvine, several CalState campuses Why is the Clean Fuels Program Needed? • The South Coast Air Basin has made progress but still experiences the worst air quality in the United States, exceeds health standards on 1 of • every 4 days and has the largest US population exposed to unhealthful air. RPR e9 '9B 09:00gM SCROMO CPO 909 396 2961 P.9/13 • Achieving the EPA's new health standards for clean air.in Los Angeles, Orange, Riverside and San Bernardino counties will require reducing emissions from today's levels by up to 80%. • New clean fuel technologies are required for 70% of those emission reductions, most from transportation sources. What have the Clean Fuels Projects Accomplished? • Cleaner heavy-duty engines were developed for trucks and buses. • New locomotive engines emit 75% less pollution. • Clean fueled vehicles, like electric vehicles, now are on the market. • Large fleets were converted to alternative fuels, like natural gas. • Automakers are investing $1 Billion in fuel cells for electric vehicles. • Oil industry developed reformulated gasoline to remain competitive with cleaner, alternative fuels supported by the AQrVID and other agencies. • The clean fuels infrastructure has been expanded. • Emerging technologies have lowered the cost of businesses' compliance with air quality emission standards. • Millions of dollars have been invested into the local economy. • Local firms are competitive in the world market for clean air technologies. How Are Projects Selected? Seven key criteria are applied: • Emission reduction potential • Technological innovation • • Potential to reduce compliance costs • Commercialization potential • Contractor experience and capabilities • • Overall environmental impact (toxics, global warming, solid waste, water) • Cost-sharing from other sources Why is AB 2194 (Washington) Needed? • Funding for the Clean Fuels Program expires August 1, 1999, unless reauthorized by the Legislature. AB 2194 sponsored by Assemblyman Carl Washington extends the prop-am until 2010, the deadline for attaining the federal air quality health standard for ozone. Contacts: Dr. Chung Liu (909) 396-2105 or Lupe Valdez (909) 396-3780 4P4 09 '92 99:00RM SCfQMD CP0 999 396 296: P. 10/10 • Draft Resolution in Support of AB 2194 (Washington): Air Pollution: Clean Fuels Technologies Whereas, in 1988 the State Legislature authorized the adoption of a SI 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. and Whereas, since 1988, every dollar invested from this vehicle surcharge has been matched by another four dollars invested by private industry, universities and other public agencies, effectively leveraging the program's S60 million investment to obtain 5250 million in public-private matching funds to finance research and development projects valued at more than 5310 million, and Whereas, 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 projects currently underway,and Whereas, 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 worlds first fuel cell buses: hybrid-electric delivery trucks; and iocomotive engines running on liquefied natural gas, and Whereas, the local Southern California economy has benefited from tens of millions of dollars in public/private investments in clean fuel technologies since 1989_ and Whereas, 40%of the emission reductions needed in the South Coast District to meet the federal clean air standard for ozone by 2010 rely upon advanced technologies which do not exist today, and Whereas, a variety of projects funded by this program have resuitcd in real emission reductions through the introduction of zero-emitting vehicles powered by fuel cells and clean fueled public transit buses,and Whereas,the existing program has provided necessary research and development resources to technologies that might not have become commercially available without such investment, and • Whereas, the successful commercialization of technologies essential to achieving acceptable air quality in the South Coast is dependent on the continuation of the advanced technology program, and Whereas, Assembly Bill 2194, authored by Assembly Member Carl Washington, and introduced in the 1998 session of the California Legislature, would continue the clean fuels program until 2010, assuring that it will be an integral program to the regional efforts to achieve the federal air qualiry health standard for ozone by 2010, Now, ben therefore resolved, that the City/County of supports AB 2794 by Assembly Be it further resolved, that this resolution and/or letter communicating the City's/County's support for AB 2194 he sent to Barry Wallerstein, Acting Executive Officer of the South Coast Air Quality Management District,