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REPORT:

AB 2766 Subvention Funds Report from Motor Vehicle Registration Fees for FY 1996-97 and FY 1997-98

SYNOPSIS:

This report contains data for two fiscal years of the AB 2766 Subvention Fund Program as requested by California Air Resources Board (CARB).

COMMITTEE:

Mobile Source, May 28, 1999, Recommended for Approval

RECOMMENDED ACTION:

Approve the attached report for submittal to the California Air Resources Board.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In September 1990, AB 2766 was signed into law authorizing a $2 motor vehicle registration fee surcharge, with a subsequent increase to $4 in 1992. Section 44223 of the Health & Safety Code, enacted by AB 2766, specifies that this motor vehicle registration fee be used "solely to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies necessary for the implementation of the California Clean Air Act of 1988." Local jurisdictions receive 40% of each vehicle registration fee dollar to implement projects that reduce mobile source emissions.

Health & Safety Code Section 44247 requires local governments imposing vehicle registration fees for air pollution programs to report to CARB on their use of the fees, the results of programs funded by the fees, and to cooperate with the Board in the preparation of its annual report to the legislature. The attached report to CARB on the results of AB 2766 subventions to local governments in the South Coast Air Basin for Fiscal Years 1996-97 and 1997-98 satisfies this requirement.

Summary of Staff Report

CARB has adopted criteria and guidelines for the use of motor vehicle registration fees. The primary goal of these guidelines is to ensure that funding is used efficiently to reduce motor vehicle emissions through cost-effective measures. The threshold of acceptable cost effectiveness, as recommended by CARB, is $20,000 per ton or $10 per pound of pollutant reduced.

The top three project categories funded during FY 1996 -97and FY 1997-98 were Traffic Management, Transportation Demand Management, and Alternative Fuels/Electric Vehicles. The average cost-effectiveness of quantifiable projects implemented over both fiscal years was $3 per pound of emissions reduced.

The funds subvened to local governments were approximately $15 million during FY 1996-97, and $16 million during FY 1997-98.

Future Direction

Evaluation of local government reports indicates an overall increase in the number of projects quantifiable. However, there are several areas where local governments should focus on improving AB2766 program activities during future fiscal years. Accordingly, the staff emphasis will be to guide and assist local jurisdictions in decreasing their fund balances, increasing fund expenditures on direct emission reductions, selecting more cost-effective projects, and improving the quality of annual report data.

Attachments

Staff Report: AB 2766 Subvention Funds Report from Motor Vehicle Registration Fees
for FY 1996-97 and FY 1997-98

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