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BOARD MEETING DATE: January 9, 2004
AGENDA NO. 12

REPORT:

Annual Report on AB 2766 Funds Report from Motor Vehicle Registration Fees for FY 2001-02

SYNOPSIS:

This report contains data on the AB 2766 Subvention Fund Program, for FY 2001-02 as requested by CARB.

COMMITTEE:

Mobile Source, November 21, 2003, Reviewed

RECOMMENDED ACTION:

  1. Approve the AB 2766 Subvention Fund Program report for submittal to CARB.
     
  2. Direct staff to include the AB 2766 Subvention Fund Program as an agenda item for discussion at the upcoming CARB and AQMD Board Members Summit.

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 these dollars quarterly 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, and the results of programs funded by the fees. The reporting by local governments follows the guidelines and methodology specified by CARB. The attached report to CARB for Fiscal Year 2001-02 satisfies this requirement. In discussion at the November 28, 2003, Mobile Source Committee meeting, it was suggested that in order to ensure that the expenditures in areas of quantifiable emission reductions are maximized, staff include this topic as an agenda item for discussion at the upcoming CARB and AQMD Board Members Summit.

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 2001-02. 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 158 (100%) cities and counties receiving Subvention Funds submitted annual project reports for FY 2001-02. The percentage of local jurisdictions submitting their annual reports electronically increased as well, up to 97% from 80% in FY 2000-01.

During FY 2001-02, local governments spent slightly more, $17.8 million, on mobile source emission reduction projects than what they received, $17.4 million, from motor vehicle fees and over $18 million or 73% of the ending balance was earmarked for future projects. This is an increase from FY 2000-01 where $17.6 million was earmarked for future projects. Quantifiable emission reductions from projects implemented during FY 2001-02 reduced 4,406 tons (VOC, NOx, PM10 and CO/7) of emissions using EMFAC 2002, Version 2.2, a decrease from 4,925 tons pollution eliminated in FY 00-01. This translates to about 12.07 tons per day of pollution eliminated.

The 4,406 tons of emissions reduced from projects funded during FY 01-02 had an overall average cost-effectiveness of $1 per pound of emissions reduced. Excluding one outlying Traffic Management project which had a significant effect on the overall cost-effectiveness, the cost-effectiveness would be $4.44 per pound, which is consistent with CARB’s statewide average cost-effectiveness for AB 2766 Subvention Fund projects. The cost-effectiveness of all project categories among South Coast cities and counties ranged from $0.17 -$34.60 per pound of emissions reduced and tends to vary from year to year.

Proposal

Staff recommends that the Board approve the attached report for submittal to CARB, and direct staff to coordinate with CARB staff to include the AB 2766 Subvention Fund Program as an agenda item for discussion at the upcoming CARB and AQMD Board Members Summit.

Attachment (900 KB)

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