ARIZONA STATE SENATE
Phoenix, Arizona
vehicle emissions; in lieu
fee
Eliminates
the in lieu emissions test fee collected from the owners of the five newest
model year vehicles in the Phoenix and Tucson metropolitan areas.
The
owners of 1967 and newer vehicles in the greater Phoenix and Tucson
metropolitan areas (Area A and Area B respectively) are required to take and
pass an annual emissions test, except that the owners of 1981 and newer
vehicles in Area A must take and pass a biennial emissions test. The owners of the five newest model years
are not required to take an emissions test, however current law allows them the
option of either taking the test and paying for it, or paying a biennial in
lieu emissions test fee of $25 in Area A and an annual $9 in lieu fee in Area
B.
The
Arizona clean air fund (ACAF) was established in 1996 to promote the use of
alternative fuels by providing grants for the purchase of alternative fuel
vehicles and to assist in the establishment of alternative fuel refueling
facilities. The primary source of
revenues for the ACAF is the emissions test in lieu fee. According to Joint Legislative Budget
Committee (JLBC) staff, annual revenues to the ACAF for the next two fiscal
years are estimated at $12,350,000 per year. Of this amount, $11.7 million is
estimated to be generated from the in lieu emissions test fee each year.
During the Second Regular
Session of the 44th Legislature, S.B. 1504 was enacted to, among
other things, expand tax credits and provide other incentives for alternative
fuel vehicles and the construction of alternative fuel refueling
facilities. The bill also mandated
specified uses of monies in the ACAF, including the use of ACAF monies to
buydown the vehicle emissions inspection fee during calendar year 2001 (Laws
2000, Chapter 405). The amount of the
buydown reduces the current biennial emissions test fee in Area A to approximately
$25, the annual test fee in Area A to $12.50 and the annual fee in Area B to
approximately $9.00. The test fee in
Area A without the buydown for the remainder of the current emissions
inspection program contract (through 2001) is $31.50 for the biennial test and
$15.75 for the annual test. The test
fee without the buydown in Area B is $10.00 annually.
S.B. 1317 eliminates the in
lieu emissions test fee and eliminates the use of monies in the ACAF to reduce
the emissions test fees in calendar year 2001.
There is no anticipated
state general fund impact associated with S.B. 1317, however the bill will
eliminate the primary revenue source of the ACAF at a cost of $11.7 million per
year. Additionally, the elimination of
the in lieu test fee eliminates the buydown of the emissions test fee for the
balance of calendar year 2001. A JLBC
fiscal note on S.B. 1317 has been requested.
1. Eliminates the in lieu emissions test fee for the five newest model year vehicles in Area A and Area B.
2. Eliminates the use of monies from the ACAF to buydown the emissions test fee in Area A and Area B during calendar year 2001.
3. Makes technical and conforming changes.
4. Provides for a general effective date.
Prepared by Senate Staff
February 2, 2001