Report:

AQMD Funding Sources and Motor Vehicle Registration Fees Report to CARB for FY 1995-96

Synopsis:

This report contains data for two of the three segments of the AB 2766 Program as requested by CARB. The third, MSRC, segment was approved by the Board on January 10, 1997.

Committee:

The portion of this report that covers the 30% AQMD and Subvention segment of the AB 2766 Program was reviewed by the Administrative Committee on April 18, 1997 and recommended for approval. The Mobile Source Committee met April 25, 1997 and members Nell Soto and Cody Cluff communicate their concurrence with the Executive Officer’s recommendation.

Recommended Action:

Approve submittal of the FY 1995-96 AQMD Funding Sources Report and the AQMD and local government Subvention portions of the Motor Vehicle Registration Fees Report to CARB.

James M. Lents, Ph.D.
Executive Officer

Background

Section 42311.1 of the Health and Safety Code requires CARB to submit a comprehensive report to the governor and the legislature contemporaneously with the annual State Budget on the sources of funding for each (air quality) district with an annual budget which exceeds $1,000,000. Section 44247 of the Health and Safety Code, which was enacted by AB 2766 and AB 434, requires local agencies imposing vehicle registration fees for air pollution programs to report to the state board on their use of the fees and the results of the programs funded by the fees, and to cooperate with the state board in the preparation of its report. This report to CARB for FY 1995-96 meets these requirements.

Summary of Report

During FY 1995-96, a total of more than $40 million in vehicle registration fees was received for use in three program segments. AQMD received approximately $12 million (30%) in AB 2766 monies for use in promoting the reduction of mobile source emissions. These funds were used to support such activities as air monitoring, mobile source related rule making, planning, and administration.

The Discretionary Fund (MSRC) received approximately $12 million (30%) which was in addition to the balance of $1.7 million carried forward from the previous year, $1.2 million in interest and $3.6 million returned from canceled/completed projects, for a total of $18.5 million. This report was approved on January 10, 1997 by the Governing Board and submitted under separate cover to CARB.

The Local Government Subvention Fund received approximately $16 million (40%) which, along with earned interest, was disbursed to local governments participating in the Subvention Fund program. Project categories included planning, motor vehicle emission reductions, Transportation Control Measures development and implementation, air quality monitoring, modeling, mobile source inventory, public education, and administration.

As shown in Attachment C, the emphasis that has been placed on utilization of the subvention fund to local governments has had a positive effect. During FY 1995/96, the cities spent or earmarked over $3.3 million more than they received. As a result, the unspent reserve has been reduced by that amount.

While this is a good first step, other issues, such as effectiveness of expenditures, continue to receive criticism. AQMD staff are now working with cities and CARB to develop a menu of recommended projects and mechanisms to quantify their effectiveness. These actions are expected to further improve the quality, quantity and effectiveness of projects selected by cities in the future.

Attachments

Attachment A - Report to the California Legislature on Funding Sources of California’s Air Pollution Control Districts with Budget Exceeding $1,000,000 (Funding Report): provides general fiscal information about District funding sources and how these funds are allocated among District programs.

Attachment B - The Motor Vehicle Registration Fees Questionnaire (Fees Questionnaire/District): provides information specifically on the revenues and expenditures relating to motor vehicle registration fees received by the AQMD (30%);

Attachment C - The Motor Vehicle Registration Fees Questionnaire (Fees Questionnaire/Local Government): provides detailed information on the revenues and expenditures of motor vehicle registration fees distributed to local governments (40%)..

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