Assigned to NRAE                                                                                                                                FOR COMMITTEE

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2449

 

air quality; CARB diesel.

(NOW:  air quality fee; diesel)

 

Purpose

 

Provides a dedicated funding source for the Voluntary Vehicle Repair and Retrofit (VVRR) program by assessing a $10 fee on each diesel vehicle registered in this state.  Allows diesel vehicles that fail the centralized emissions test to be eligible to participate in the VVRR program. Contains a Proposition 108 clause.

 

Background

 

            The VVRR program was established in 1998 to provide for the repair of qualifying vehicles in Area A and Area B that fail the emissions inspection test (Laws 1998, Chapter 217).  The program is currently administered by Maricopa and Pima Counties and provides grants of up to $700 for repairs and $800 for an engine retrofit. A $150 co-pay by the vehicle owner is required. The current program also provides for grants of up to $1,000 for the repair or retrofit of diesel vehicles with a gross vehicle rating of more than 8,500 pounds that fail the roadside emissions test.  Diesel vehicle owners must pay for half of the repair or retrofit costs.  Only 20 percent of the monies in the VVRR program funds in any year may be used for the diesel repair or retrofits. H.B. 2449 expands the eligibility to participate in the VVRR program to include diesels that fail the centralized emissions test.

 

From January 1, 1999 through October 2000, the VVRR program in Maricopa County repaired 2,153 vehicles and retrofitted 70 vehicles at a cost of approximately $873,000. The Pima County program did not get up and running until November 1999.  As of the end of October 2000, a total of 408 vehicles were repaired in Pima County at a total cost of approximately  $155,000. The cost benefit of the estimated emission reductions annualized over two years equals approximately $650 per metric ton of emissions.

 

To date, the VVRR program has been funded through general fund appropriations and transfers from the Arizona clean air fund.  There is currently no ongoing funding source for the VVRR program and Maricopa County estimates that its existing program funds will run out by July 1, 2002.

 

            The Governor’s Brown Cloud Summit recommendations identified the VVRR program for gasoline vehicles as the most effective measure for decivue improvement.  The program was the fifth most cost effective measure recommended by the Brown Cloud Summit.  According to the Brown Cloud Summit report, the average emissions reductions for the VVRR program are:    

 

Hydrocarbons              84%

Carbon Monoxide        88%

NOx                            75%

Additionally, PM 2.5 reductions are estimated at 32 tons per year.

 

            H.B. 2449 provides a dedicated funding source for the VVRR program by assessing a $10 emissions fee on diesel vehicles with a gross vehicle weight rating over 8,500 pounds that are registered in Arizona, and a fee based on the percentage apportionment on apportioned trucks.  According to the Motor Vehicle Division, there are currently approximately 78,000 in‑state trucks registered in Arizona (over 8,500 GVW) and 95,000 apportioned trucks (over 8,000 GVW).

 

Provisions

 

1.      Establishes a $10 fee for each diesel vehicle with a gross vehicle weight rating of over 8,500 that is registered in Arizona.  Diesel vehicles that are subject to an apportioned registration fee pay an apportioned $10 fee based on their apportioned registration fee. 

 

2.      Specifies that the diesel fees are paid at the time of vehicle registration and are only in effect until and unless the U.S. Environmental Protection Agency grants a fuel waiver for this state under the federal Clean Air Act.

 

3.      Requires the diesel fees to be deposited to the VVRR fund to be used for the repair and retrofit of vehicles that fail the emission inspection test in Area A and Area B.

 

4.      Allows diesel vehicles with a gross vehicle rating of over 8,500 pounds that fail the centralized emissions test to participate in the VVRR program and receive grants for repairs or engine retrofits up to $1,000.

 

5.      Contains a Proposition 108 clause, requiring a two-thirds vote of both the Senate and the House of Representatives for passage.

 

House Action

 

ENV                2/27/01            DPA/SE           10-0-0-0

3rd Read           3/14/01                                    44-9-7-0

 

 

Prepared by Senate Staff

March 20, 2001