CC - AB 2194 - Retention of $1 Motor Vehicle Technology Fee - Support - Box 066I
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
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.
ccmemo.ab2194.fgt
COUNCIL AGENDA
APR 14 1998
ITEM No. . CC-}l
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APR 09 98 oe:5eAM SCAQMD CPO 909 396 2961 P.2110
South Coast
Air Quality Management District
21865 E. Copley Drive. Diamond Bar, CA 91765-4182
a (909) 396-2000 • http://wwvv.agmd.gov
Members of the -URGENT ACTION ITEM-
Governing Boazd:
Chai<man LOCAL RESOLUTIONS NEEDED
Dr. William A. Burke
Spkcr of du Aa¢mhly
Spm FOR CLEAN FUELS PROGRAM
Appointer
vice Chairmen
April 2, 1998
Norma J. Glover
Councilmtmbrr, Ncwporr Balch
Cities of Orange County
Dear City Mayors and Councilmembers:
Michael D. Anconovich
Super ienr, Fifth District
County of Los 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
Countilmember. Los Angelo
attached resolution in support of our Air District's Clean Fuels Program. Our
Cries of Ins Angeles County/
Clean Fuels Program is the driving force behind the new and emerging clean air
western Region
technologies that must be in place for our region to meet the 2010 deadline
Meeftae Lee
mandated by the Clean Air Act.
Senate Rules Appointee
The attached resolution supports Assembly Bill 2194 and its reauthorization of the
Ronald 0. Loveridge
Mayor, Ri+ewdc
Clean Fuels Program's funding mechanism. This mechanism is a $1.00 fee which
Cites of Riverside County
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
Supervisor, Second District
partnerships which are now expanding the use of clean, altemative-energy sources
County of San Bernardino
(like fuel cells, electricity and compressed natural gas) for heavy-duty trucks,
locomotives and municipal fleets.
Wayne Nasai
Governors Appointee
Please have your City adopt this resolution as soon as possible and forward a copy
Leonard Paulin
to Barry Wallerstein, Acting Executive Officer, so that we can make sure it gets
Councilmemher, Montclair
into the right hands at our State Legislature. Thank you for your help and please
Cities of San Berromlino County
feel free to call Oscar Abarca, Intergovernmental Affairs Director (909-396-
James W. Silva
3242), or myself (909-620-1240) if you have any questions.
Supervisor. Second District
County of Omngr
Sincerely,
Nell Soto
Cm
s mbcr,
Pornont,
I /7
e
¢iu o of f Los
Cos Angdn & unryl
Fuum Region
.
S. Roy Wilson, Ed.D. Nell Soto
supervisor, Fourth District
County of Riverside
APR 09 198 08:56AM SCAQMD CPO 909 39G 2961 P.3i10
South Coast
fi Air Quality Management District
21865 E. Copley Drive. Diamond Bar, CA 9 1 765-41 82
(909) 396-2000 - http://www.aqmd.gov
Members of the
Governing Board:
Chaimyn April 8, 1998
Dr. William A. Burke
Spcelar of the Assembly
Appointee
vicechvmm
The Honorable Jay T. Imperial, Mayor
Norma J. Glover
City of Rosemead
Councilmembcr, Newport Beach
Guesof Orange coumry
8838 East Valley Boulevard
Rosemead, CA 91770
Michael D. Anronovich
Supervisor. Fifth District
(:aunty of Los 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 Uuc6n
Assembly that would reauthorize funding for clean fuels research.
Councilmembet, Los Angeles
Cities of Los Angeles Cowry/
Western Rrgion
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
Senate Rules Appointee
to fund clean fuels research and demonstration projects, expires next year. If
Ronald 0. Loveridge
signed into law, Assembly Bill 2194 (authored by Assemblymember Carl
Nbyor, Ri~rrsidc
Washington) will extend the funding through 2010.
Goes of Riverside Cowry
Jon D. Mikels
Despite a high population growth rate, the South Coast Air Basin comprised of
Supervisor, Second District
the urban portions of Los Angeles, Orange, Riverside, and San Bernardino
Counry of San Bernardino
counties has experienced significant air quality improvements in recent years,
Wayne Nastri
thanks in part to the Clean Fuels Program.
Governor's Appointee'
Nevertheless, we still have the nation's worst air quality. This bill's passage is
Leonard Paulitz
critical in allowing us to meet federal standards by 2010, as required under the
Ckies; of Sin Bd&mMuontdino clair County
fides of Sin
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
James W. Silva
trucks, locomotives, and municipal fleets to run on alternative-energy sources such
sup y or. o(Ora ra nnge District
County
as fuel cells, electricity and compressed natural gas.
Nell Soto
C0061111 mlkr, Pomona
Grins of Los Angeles County/
Bestetn Region
S. Roy Wilson, Ed.D.
Supervisor, Fourth District
County of Riwaide
APR 09 '98 08:58AM SCAOMD CPO 909 396 2961
-2-
P. 4/10
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, Intergovernmental Affairs Director, at (909)
396-3242 should you have any questions.
Sincerely,,
Nell Soto
Councilmember, City of Pomona
AQMD Governing Board Member
OA:DR:mt
cc: Barry Wallerstein
Attachment
APR 09 198 08:59AN SCROMD CPO 909 396 2961
April 7, 1998
The Honorable Kevin Murray
Chairman, Assembly Transportation Committee
600 Corporate Pointe #1020
Culver City, California 90230
Dear Chairman Murray:
P. 5/10
As mayor of the City of Glendale, 1 strongly urge your support for Assembly Bill 2194 now
pending before the Legislature. AB 2194 reauthorizes a $1 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
APR 09 "98 08:596MlSCA0MD-CP0 909 396 2989=3 3051345 P. C/10
League of California Cities
Los Angeles County Division
602 East Huntington Drive, Suite C
Monrovia, California 91016
"W
April 7, 1999 Telephone (626)305-1315
~
Fax (626) 305.1345
www.caeities.orq
~BSIDBNT
The Honorable Kevin Murray
Marshall Mouw
Chair, Transportation Comm *e
Mayor Pro Tem
California State Assembly
Glendora
Room 4126
Sacramento, CA 95814
PRESIDENT EL CT
Boyd Condie
RE: AD 2194 (Washington) Vehicle Fees: Air Pollution
Mayor
Reauthorization of Clean Fuels Program flrnding mechanism
Alhsmbra
Notice of Support
VICE SIDENT
pip
27
Bob
The Los Angeles County Division of the League of California Cities has
Mayor Pro Tem
adopted a position
inauPportofAB 2194, The Los Angeles County Division
Redondo Beach
,
comprised of local elected officials, is the largest of its kind in the state and
represents 86 cities.
TR A
eatrice Proo
194 is important to all of the cities in Southern California because it
nci
Council Member
continues to provide 9rnding for the Clean Fuels program. The $1.00 £ee is
Pico Rivera
already being paid cub time vehicles are registered in this area and does not
represent any new taxes or fees on individuals. For cities in the Los Angeles
STATE LEAGUE DIRECTOR
region, the bill is especially important because it helps expand the use of clean
Margaret Clark
,
alternative-w=gy sources for municipal fleets. Moreover, the funding from
Council Member
this program helps to advance research on new technologies to im
rov
Rosemead
p
e
regional air quality. Without the additional funding, cities will have to rely on
command and control measures and more stringent regulations on businesses
.
In an era where regional economic development and business attraction is so
important, further regulations would be detrimental to the regional economy,
For these reasons, the Los Angeles County Division of the League of
California Cities supports AR 2194, Please feel free to contact me regarding
our position on this measure,
Sincerely, ~A
CxsGUEt~G! y,,
hall Mouw, Presideai
Los Angeles County Division
League of California Cities
APR 09 198 09:59AM SCAQMD CPO 999 396 2961
P.7/10
. South Coast
Air Quality Management District
21865 E. Copley Drive, Diamond Bar, CA 91765-4182
° (909) 396-2000 • http_//www.agmd.gov REVISED3/13198
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.
APR 09 98 09:00AM SCAQMD CPO 999 396 2961 P.@i10
. South Coast
Air Quality Management District
21865 E. Copley Drive, Diamond Bar, CA 91765-4182
Y*0 (909) 396-2000 - htt //www.a md. ov
P~ 9 $ REVISED3%i3l98
South Coast AQMD's Clean Fuels Program
Wliat 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 $1 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 Coast AQMDIs 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.
APR 09 '98 09:00AM SCAOMD CPO 909 396 2961 P.9i10
• 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 AQMD 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 program 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
APR 09 '98 09:00AM SCAOMD CPO 909 396 2961 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 S I 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 $60 million investment to obtain $250 million in public-private matching funds to finance
research and development projects valued at more than $310 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 world's first fuel cell buses: hybrid-electric delivery trucks; and locomotive 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 % cf 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 resulted 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 quality health standard
for ozone by 2010,
Now, be it therefore resolved, that the Ciry/County of supports AB 2194 by Assembly
Member Washington, and
Be it further resolved, that this resolution and/or letter communicating the City's/County's support for AB
2194 be sent to Barry Wallerstein, Acting Exwutive Officer of the South Coast Air Quality Management
District.