REPORT:
Annual Report on AB 2766 Funds from Motor Vehicle Registration Fees for FY 2002-03
SYNOPSIS:
This report contains data on the AB 2766 Subvention Fund Program for FY 2002-03 as requested by CARB.
COMMITTEE:
Mobile Source, August 27, 2004, Reviewed
RECOMMENDED ACTION:
Approve the AB 2766 Subvention Fund Program report for FY 2002-03 for submittal 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." 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 2002-03 satisfies this requirement. Summary of Subvention Fund Program Report This report accounts for the projects, financial expenditures, quantifiable emission reductions and associated cost-effectiveness implemented through the AB 2766 Subvention Fund Program for FY 2002-03. 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 2002-03. During FY 2002-03, local governments received $17.8 million from motor vehicle fees and spent slightly more than that on mobile source emission reduction projects ($19.0 million), by using their respective unspent balances from prior years. Over $20 million or 78% of their ending balances were earmarked for future projects. This is an increase from FY 2001-02 where $18.3 million was earmarked for future projects. Expenditures in the Alternative Fuels/Electric Vehicles category have continued to increase over the last three years as local governments have expanded their spending priorities to comply with AQMD’s Fleet Rules. Quantifiable emission reductions from projects implemented during FY 2002-03 reduced 4,406 tons (VOC, NOx, PM10 and CO/7) of emissions, as estimated using EMFAC 2002, Version 2.2; this is the same tonnage of pollution reduced in FY 2001-02. The 4,406 tons of emissions reduced from projects funded during FY 2002-03 had an overall average cost-effectiveness of $0.92 per pound of emissions reduced. Excluding one outlying Traffic Management project which had a significant effect on the overall cost-effectiveness, the average cost-effectiveness would be $4.39 per pound, which is relatively consistent with CARB’s reported statewide average cost-effectiveness for AB 2766 Subvention Fund projects of approximately $4 per pound. The cost-effectiveness of all project categories among South Coast cities and counties ranged from $0.13 - $212.62 per pound of emissions reduced. Proposal Approve the attached staff report for submittal to CARB. Attachment
AB 2766 Funds Report from Motor Vehicle Registration Fees for FY 2002-03 / / /
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