South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: July 12, 2002 AGENDA NO. 22
Annual Report on AB 2766 Funds Report from Motor Registration Fees for FY 2000-01
SYNOPSIS:
This report contains data on the AB 2766 Subvention Fund Program, for FY 2000-01 as requested by CARB.
COMMITTEE:
Mobile Source, May 24, 2002 and Legislative, June 14, 2002, Reviewed
RECOMMENDED ACTION:
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." Local jurisdictions receive 40% of each vehicle registration fee dollar to implement projects that reduce mobile source emissions. The AQMD distributes quarterly these dollars to South Coast cities and counties based upon their prorated share of population.
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 report to the legislature. The attached report to CARB for Fiscal Year 2000-01 satisfies this requirement. In discussion at the Mobile Source Committee, it was suggested that staff explore methods to assure local governments expend money on quantifiable reduction, and to capture emissions reductions for SIP purposes when they are surplus, real and quantifiable.
Summary of Subvention Fund Program Report
This report accounts for the projects, financial expenditures, quantifiable emissions reduced and their cost-effectiveness implemented through the AB 2766 Subvention Fund Program for FY 2000-01. It also gives an update on the AQMD’s efforts in assisting local governments with managing their Subvention Fund programs.
AQMD staff provided technical assistance to local governments including one-on-one meetings, telephone calls and training sessions to guide them in determining project eligibility, emission reduction quantification and project reporting. All 157 (100%) cities and counties receiving Subvention Funds submitted annual project reports for FY 2000-01. The percentage of local jurisdictions submitting their annual reports electronically increased as well, up to 80% from 10% in FY 1997-98.
During FY 99-00 project spending peaked at $19 million, up from the two previous fiscal years when local government spent between $16 and $17 million. This past year, FY 00-01, project spending decreased to approximately $18 million. However, despite this decrease, quantifiable emission reductions from projects implemented increased from 4,476 tons in FY 99-00 to a high of 4,925 tons of pollution eliminated in FY 00-01. This translates into about 13.5 tons per day, up from 12 tons per day in FY 99-00. Thus, most of the local funding was spent on quantifiable emission reductions. In effect, between FY 98-99 and FY 00-01, emissions reductions from Subvention Fund Projects increased by 2,000 tons.
The 4,925 tons of emissions reduced from the projects funded during FY 00-01 had an average cost-effectiveness of slightly less than $2/lb. This is the first year that cost-effectiveness was below the $2 per pound benchmark reached in the two prior years.
Proposal
Approve staff's report for submittal to CARB. Coordinate with CARB staff to amend its Subvention Fund Guidance Document to focus local government expenditures and reporting on projects having quantifiable emission reductions. Also, capture surplus emissions reductions that are real and quantifiable for SIP purposes.
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