South Coast Air Quality Management District

AB 2766 Funds Report from Motor Vehicle Registration Fees for FY 1999-00

SYNOPSIS: 

This report contains data on the AB 2766 Subvention Fund Program, Discretionary Fund Program, and AQMD’s funding portion for FY 1999-00 as requested by CARB.

COMMITTEE: 

Mobile Source, May 25, 2001, Reviewed

RECOMMENDED ACTIONS:

1. Approve the AB 2766 Subvention Fund and the South Coast AQMD Program portions for submittal to CARB.
   
   
2. Receive and file the Discretionary Fund portion, which was approved by the MSRC at its June 27, 2001 meeting, and will be submitted directly to CARB.

Barry R. Wallerstein,
D.Env. Executive Officer

Background

In September 1990, Assembly Bill 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."

AB 2766 provisions specify that the fees collected by the Department of Motor Vehicles be subvened to the South Coast Air Quality Management District (AQMD) for the purpose of funding three distinct programs – The Subvention Fund Program; the Discretionary Fund Program; and AQMD air quality programs: In FY 1999-00, $40.6 million in vehicle registration fees was divided between these programs with the prescribed allocations as follows: the local government Subvention Fund Program portion (40%) is distributed on a quarterly basis to South Coast Basin cities and counties based upon their prorated share of population to implement projects that reduce emissions from mobile sources; the AQMD segment (30%) goes towards agency planning, monitoring, research, and other activities that reduce mobile source emissions; the Discretionary Fund Program (30%) is administered by the Mobile Source Air Pollution Reduction Review Committee (MSRC), to support projects that reduce pollution from mobile sources.

Health & Safety Code Section 44247 requires local agencies 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 presentation of its annual report to the legislature. The attached reports to CARB for Fiscal Year 1999-00 satisfy this requirement.

Summary of Subvention Program

This report accounts for the projects, financial expenditures, emissions reduced, and cost-effectiveness of projects implemented through the AB 2766 Subvention Fund Program for FY 1999-00. It also gives an update on the AQMD’s efforts in assisting local governments with managing their Subvention Fund programs.

In previous fiscal years local government spending fluctuated between $16 to $17 million. During FY 1999-00 spending increased to approximately $19 million with approximately 4,500 tons of annual emissions reduced, which translates into about 12 tons per day of pollution eliminated from projects implemented.

The 12 tons per day of emissions reduced from the projects funded during FY 1999-00 had an average cost-effectiveness of $2/lb. This reporting cycle’s average cost-effectiveness of $2/lb. remained unchanged from FY 1998-99. Moreover, the last three fiscal years emission reductions have increased dramatically from approximately 1.6 million pounds in FY 1997-98 to 5.9 million pounds in FY 1998-99, to nearly 9 million pounds in FY 1999-00. In sum, approximately 7.4 million pounds of additional emissions were reduced between fiscal years 1998-99 and 1999-00.

Over the last two fiscal years the percentage of ending balances earmarked for future projects rose to 72% in FY 1998-99 and 73% in FY 1999-00, up from 47% in FY 1997-98. The increase in earmarks signifies greater movement to near term projects that will produce additional emission reductions.

Summary of AQMD Program

During FY 99-00 the AQMD received and expended approximately $12 million on promoting the reduction of mobile source emissions. The AQMD portion of AB 2766 funding is used for programs to reduce air pollution from motor vehicles and to carry out related planning, monitoring, enforcement and technical studies authorized by, or necessary to implement the California Clean Air Act of 1988 or the Air Quality Management Plan (AQMP). The AQMD Work Program activities include the following major categories: ensure compliance with clean air rules; develop programs to achieve clean air; develop rules to achieve clean air; and monitoring air quality. Other activities include customer service, ridesharing program, tracking legislation, marketing and educational materials, and outreach through business programs and public service initiatives.

Summary of Discretionary Program

The Discretionary Fund (MSRC) received approximately $12 million in FY 99-00. During this period, the MSRC Work Program funded over $20 million in projects. On an annual basis, the MSRC submits to the California Air Resources Board (CARB) a report that provides a detailed accounting of the MSRC Work Program expenditures and quantitative assessment of each project funded during the prior year. The Air Resources Board uses this data to compile a statewide summary of benefits and effectiveness of the AB 2766 Motor Vehicle Registration Fee programs.

Attachment

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