44220-44246

HEALTH AND SAFETY CODE
SECTION 44220-44246




44220.  The Legislature hereby finds and declares as follows:
   (a) This chapter is intended to ensure that any county air
pollution control district, or unified or regional air pollution
control district, may, upon adoption of a resolution by the district
governing board, exercise fee authority similar to that provided the
south coast district pursuant to Section 9250.11 of the Vehicle Code
and the Sacramento district pursuant to Section 41081, in order to
ensure that districts, and, in the south coast district, other
implementing agencies, have the necessary funds to carry out their
responsibilities for implementing the California Clean Air Act of
1988 (Chapter 1568 of the Statutes of 1988).
   (b) The revenues from the fees collected pursuant to this chapter
shall 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.



44223.  (a) In addition to any other fees specified in this code,
the Vehicle Code, and the Revenue and Taxation Code, a district,
except the Sacramento district, which has been designated by the
state board as a state nonattainment area for any pollutant emitted
by motor vehicles may levy a fee of up to two dollars ($2) on motor
vehicles registered within the district. A district may impose the
fee only if the district board adopts a resolution providing for both
the fee and a corresponding program for the reduction of air
pollution from motor vehicles pursuant to, and for related planning,
monitoring, enforcement, and technical studies necessary for the
implementation of, the California Clean Air Act of 1988 (Chapter 1568
of the Statutes of 1988).
   (b) In districts with nonelected officials on their boards, a
resolution adopted pursuant to subdivision (a) shall be approved by
both a majority of the board and a majority of the board members who
are elected officials.
   (c) A fee imposed pursuant to this section shall become effective
on either April 1 or October 1, as provided in the resolution adopted
by the board pursuant to subdivision (a).



44225.  A district may increase the fee established under Section
44223 to up to six dollars ($6). A district may increase the fee only
if the following conditions are met:
   (a) A resolution providing for both the fee increase and a
corresponding program for expenditure of the increased fees for the
reduction of air pollution from motor vehicles pursuant to, and for
related planning, monitoring, enforcement, and technical studies
necessary for the implementation of, the California Clean Air Act of
1988 is adopted and approved by the governing board of the district.
   (b) In districts with nonelected officials on their governing
boards, the resolution shall be adopted and approved by both a
majority of the governing board and a majority of the board members
who are elected officials.
   (c) An increase in fees established pursuant to this section shall
become effective on either April 1 or October 1, as provided in the
resolution adopted by the board pursuant to subdivision (a).
   (d) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.



44225.  On and after April 1, 1992, a district may increase the fee
established under Section 44223 to up to four dollars ($4). A
district may increase the fee only if the following conditions are
met:
   (a) A resolution providing for both the fee increase and a
corresponding program for expenditure of the increased fees for the
reduction of air pollution from motor vehicles pursuant to, and for
related planning, monitoring, enforcement, and technical studies
necessary for the implementation of, the California Clean Air Act of
1988 is adopted and approved by the governing board of the district.
   (b) In districts with nonelected officials on their governing
boards, the resolution shall be adopted and approved by both a
majority of the governing board and a majority of the board members
who are elected officials.
   (c) An increase in fees established pursuant to this section shall
become effective on either April 1 or October 1, as provided in the
resolution adopted by the board pursuant to subdivision (a).
   (d) This section shall become operative on January 1, 2015.



44227.  Upon request of a district, the Department of Motor Vehicles
shall collect the fees established pursuant to Sections 44223 and
44225 upon renewal of the registration of any motor vehicle subject
to this part and registered in the district, except those vehicles
which are expressly exempted under the Vehicle Code from the payment
of registration fees.



44229.  (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts, which
shall use the revenues resulting from the first four dollars ($4) of
each fee imposed to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
   (b) Notwithstanding the provisions of Section 44241 and Section
44243, a district shall use the revenues resulting from the next two
dollars ($2) of each fee imposed pursuant to Section 44227 to
implement the following programs that the district determines
remediate air pollution harms created by motor vehicles on which the
surcharge is imposed:
   (1) Projects eligible for grants under the Carl Moyer Memorial Air
Quality Standards Attainment Program (Chapter 9 (commencing with
Section 44275) of Part 5).
   (2) The new purchase, retrofit, repower, or add-on equipment for
previously unregulated agricultural sources of air pollution, as
defined in Section 39011.5, for a minimum of three years from the
date of adoption of an applicable rule or standard, or until the
compliance date of that rule or standard, whichever is later, if the
state board has determined that the rule or standard complies with
Sections 40913, 40914, and 41503.1, after which period of time, a new
purchase, retrofit, repower, or add-on of equipment shall not be
funded pursuant to this chapter. The districts shall follow any
guidelines developed under subdivision (a) of Section 44287 for
awarding grants under this program.
   (3) The new purchase of schoolbuses pursuant to the Lower-Emission
School Bus Program adopted by the state board.
   (4) An accelerated vehicle retirement or repair program that is
adopted by the state board pursuant to authority granted hereafter by
the Legislature by statute.
   (c) The Department of Motor Vehicles may annually expend not more
than the following percentages of the fees collected pursuant to
Section 44227 on administrative costs:
   (1) During the first year after the operative date of this
chapter, not more than 5 percent of the fees collected may be used
for administrative costs.
   (2) During the second year after the operative date of this
chapter, not more than 3 percent of the fees collected may be used
for administrative costs.
   (3) During any year subsequent to the second year after the
operative date of this chapter, not more than 1 percent of the fees
collected may be used for administrative costs.
   (d) No project funded by the program shall be used for credit
under any state or federal emissions averaging, banking, or trading
program. No emission reduction generated by the program shall be used
as marketable emission reduction credits or to offset any emission
reduction obligation of any person or entity. Projects involving new
engines that would otherwise generate marketable credits under state
or federal averaging, banking, and trading programs shall include
transfer of credits to the engine end user and retirement of those
credits toward reducing air emissions in order to quality for funding
under the program. A purchase of a low-emision vehicle or of
equipment pursuant to a corporate or a controlling board's policy,
but not otherwise required by law, shall generate surplus emissions
reductions and may be funded by the program.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.


44229.  (a) After deducting all administrative costs it incurs
through collection of fees pursuant to Section 44227, the Department
of Motor Vehicles shall distribute the revenues to districts which
shall use the fees to reduce air pollution from motor vehicles and to
carry out related planning, monitoring, enforcement, and technical
studies necessary for implementation of the California Clean Air Act
of 1988. Fees collected by the Department of Motor Vehicles pursuant
to this chapter shall be distributed to districts based upon the
amount of fees collected from motor vehicles registered within each
district.
   (b) The Department of Motor Vehicles may annually expend not more
than the following percentages of the fees collected pursuant to
Section 44227 on administrative costs:
   (1) During the first year after the operative date of this
chapter, not more than 5 percent of the fees collected may be used
for administrative costs.
   (2) During the second year after the operative date of this
chapter, not more than 3 percent of the fees collected may be used
for administrative costs.
   (3) During any year subsequent to the second year after the
operative date of this chapter, not more than 1 percent of the fees
collected may be used for administrative costs.
   (c) This section shall become operative on January 1, 2015.



44231.  After consulting with the Department of Motor Vehicles on
the feasibility thereof, a district board may exempt from all or part
of the fee any category of low-emission motor vehicle.



44233.  Not more than 5 percent of the fees distributed to any
district pursuant to Section 44229, or distributed by a district to
any other public agency pursuant to this chapter, shall be used by
the district or other public agency for administrative costs.




44235.  A district shall not use fees established under Sections
44223 and 44225 for the purpose of establishing or maintaining the
district as a direct provider of carpool, vanpool, or other
ridesharing or transit services. However, a district may use these
funds to enter into, and implement, agreements with agencies which
directly provide carpool, vanpool, or other ridesharing or transit
services to provide these services.



44236.  A district may allocate funds raised by fees established
under Sections 44223 and 44225 to meet the requirements of Section
65089 of the Government Code, if those requirements are in compliance
with, and necessary for the implementation of, the California Clean
Air Act of 1988.



44237.  A district may use fees established under Sections 44223 and
44225 to enter into an agreement with a council of governments,
regional agency, or local agency to carry out Section 40717.



44241.  (a) Fee revenues generated under this chapter in the bay
district shall be subvened to the bay district by the Department of
Motor Vehicles after deducting its administrative costs pursuant to
Section 44229.
   (b) Fee revenues generated under this chapter shall be allocated
by the bay district to implement the following mobile source and
transportation control projects and programs that are included in the
plan adopted pursuant to Sections 40233, 40717, and 40919:
   (1) The implementation of ridesharing programs.
   (2) The purchase or lease of clean fuel buses for school districts
and transit operators.
   (3) The provision of local feeder bus or shuttle service to rail
and ferry stations and to airports.
   (4) Implementation and maintenance of local arterial traffic
management, including, but not limited to, signal timing, transit
signal preemption, bus stop relocation and "smart streets."
   (5) Implementation of rail-bus integration and regional transit
information systems.
   (6) Implementation of demonstration projects in telecommuting and
in congestion pricing of highways, bridges, and public transit. No
funds expended pursuant to this paragraph for telecommuting projects
shall be used for the purchase of personal computing equipment for an
individual's home use.
   (7) Implementation of vehicle-based projects to reduce mobile
source emissions, including, but not limited to, engine repowers,
engine retrofits, fleet modernization, alternative fuels, and
advanced technology demonstrations.
   (8) Implementation of a smoking vehicles program.
   (9) Implementation of an automobile buy-back scrappage program
operated by a governmental agency.
   (10) Implementation of bicycle facility improvement projects that
are included in an adopted countywide bicycle plan or congestion
management program.
   (11) The design and construction by local public agencies of
physical improvements that support development projects that achieve
motor vehicle emission reductions. The projects and the physical
improvements shall be identified in an approved area-specific plan,
redevelopment plan, general plan, or other similar plan.
   (c) (1) Fee revenue generated under this chapter shall be
allocated by the bay district for projects and programs specified in
subdivision (b) to cities, counties, the Metropolitan Transportation
Commission, transit districts, or any other public agency responsible
for implementing one or more of the specified projects or programs.
Fee revenue generated under this chapter may also be allocated by the
bay district for projects and programs specified in paragraph (7) of
subdivision (b) to entities that include, but are not limited to,
public agencies, consistent with applicable policies adopted by the
governing board of the bay district. Those policies shall include,
but are not limited to, requirements for cost-sharing for projects
subject to the policies. Fee revenues shall not be used for any
planning activities that are not directly related to the
implementation of a specific project or program.
   (2) The bay district shall adopt cost-effectiveness criteria for
fee revenue generated under this chapter that projects and programs
are required to meet. The cost-effectiveness criteria shall maximize
emissions reductions and public health benefits.
   (d) Not less than 40 percent of fee revenues shall be allocated to
the entity or entities designated pursuant to subdivision (e) for
projects and programs in each county within the bay district based
upon the county's proportionate share of fee-paid vehicle
registration.
   (e) In each county, one or more entities may be designated as the
overall program manager for the county by resolutions adopted by the
county board of supervisors and the city councils of a majority of
the cities representing a majority of the population in the
incorporated area of the county. The resolution shall specify the
terms and conditions for the expenditure of funds. The entities so
designated shall be allocated the funds pursuant to subdivision (d)
in accordance with the terms and conditions of the resolution.
   (f) Any county, or entity designated pursuant to subdivision (e),
that receives funds pursuant to this section, at least once a year,
shall hold one or more public meetings for the purpose of adopting
criteria for expenditure of the funds and to review the expenditure
of revenues received pursuant to this section by any designated
entity. If any county or entity designated pursuant to subdivision
(e) that receives funds pursuant to this section has not allocated
all of those funds within six months of the date of the formal
approval of its expenditure plan by the bay district, the bay
district shall allocate the unallocated funds in accordance with
subdivision (c).



44241.5.  The bay district board shall hold an annual public hearing
to review the expenditure of revenues received by the bay district
pursuant to Section 44241 to determine their effectiveness in
improving air quality.


44242.  (a) Any agency which receives funds pursuant to Section
44241 shall, at least once every two years, undertake an audit of
each program or project funded. The audit shall be conducted by an
independent auditor selected by the bay district in accordance with
Division 2 (commencing with Section 1100) of the Public Contract
Code. The district shall deduct any audit costs which will be
incurred pursuant to this section prior to distributing fee revenues
to cities, counties, or other agencies pursuant to Section 44241.
   (b) Upon completion of an audit conducted pursuant to subdivision
(a), the bay district shall do both of the following:
   (1) Make the audit available to the public and to the affected
agency upon request.
   (2) Review the audit to determine if the fee revenues received by
the agency were spent for the reduction of air pollution from motor
vehicles pursuant to the plan prepared pursuant to Sections 40233 and
40717.
   (c) If, after reviewing the audit, the bay district determines
that the revenues from the fees may have been expended in a manner
which is contrary to this chapter or which will not result in the
reduction of air pollution from motor vehicles pursuant to that plan,
the district shall do all of the following:
   (1) Notify the agency of its determination.
   (2) Within 45 days of the notification pursuant to paragraph (1),
hold a public hearing at which the agency may present information
relating to expenditure of the revenues from the fees.
   (3) After the public hearing, if the district determines that the
agency has expended the revenues from the fees in a manner which is
contrary to this chapter or which will not result in the reduction of
air pollution from motor vehicles pursuant to the plan prepared
pursuant to Sections 40233 and 40717, the district shall withhold
these revenues from the agency in an amount equal to the amount which
was inappropriately expended. Any revenues withheld pursuant to this
paragraph shall be redistributed to the other cities within the
county, or to the county, to the extent the district determines that
they have complied with the requirements of this chapter.
   (d) Any agency which receives funds pursuant to Section 44241
shall encumber and expend the funds within two years of receiving the
funds, unless an application for funds pursuant to this chapter
states that the project will take a longer period of time to
implement and is approved by the district or the agency designated
pursuant to subdivision (e) of Section 44241. In any other case, the
district or agency may extend the time beyond two years, if the
recipient of the funds applies for that extension and the district or
agency, as the case may be, finds that significant progress has been
made on the project for which the funds were granted.



44243.  Fee revenues generated under this chapter in the south coast
district shall be subvened to the south coast district by the
Department of Motor Vehicles, after deducting its administrative
costs pursuant to Section 44229, for expenditure in the following
manner:
   (a) (1) Thirty cents ($0.30) of every dollar subvened shall be
used by the south coast district for programs to reduce air pollution
from motor vehicles and to carry out related planning, monitoring,
enforcement, and technical studies which are authorized by, or
necessary to implement, the Clean Air Act Amendments of 1990 (P.L.
101-549), the California Clean Air Act of 1988, or the plan prepared
pursuant to Article 5 (commencing with Section 40460) of Chapter 5.5
of Part 3.
   (2) Funds allocated pursuant to paragraph (1) shall also be used
to provide technical assistance to cities receiving funds pursuant to
subdivision (b). That technical assistance shall include, but not be
limited to, workshops and direct assistance to individual cities on
how to develop and implement programs to reduce air pollution from
motor vehicles.
   (b) (1) Forty cents ($0.40) of every dollar subvened shall be
distributed by the district to cities and counties located in the
south coast district, based upon their prorated share of population,
to be used to implement programs to reduce air pollution from motor
vehicles which are authorized by, or necessary to implement, the
Clean Air Act Amendments of 1990, the California Clean Air Act of
1988, or the plan prepared pursuant to Article 5 (commencing with
Section 40460) of Chapter 5.5 of Part 3. No city or county may
receive funds pursuant to this subdivision unless, on or before April
1, 1992, or, for a newly incorporated city, within 90 days of the
date of incorporation, the city or county has adopted and transmitted
to the south coast district an ordinance which does all of the
following:
   (A) Expresses support for the adoption of motor vehicle
registration fees to be used to reduce air pollution from motor
vehicles pursuant to the Clean Air Act Amendments of 1990, the
California Clean Air Act of 1988, or the plan prepared pursuant to
Article 5 (commencing with Section 40460) of Chapter 5.5 of Part 3.
   (B) Expressly requires all fee revenues distributed to the city or
county pursuant to this subdivision or subdivision (c) to be spent
to reduce air pollution from motor vehicles pursuant to the Clean Air
Act Amendments of 1990, the California Clean Air Act of 1988, or the
plan prepared pursuant to Article 5 (commencing with Section 40460)
of Chapter 5.5 of Part 3.
   (C) Establishes an air quality improvement trust fund into which
all fee revenues distributed to the city or county shall be
deposited, and out of which expenditures shall be made to reduce air
pollution from motor vehicles pursuant to the Clean Air Act
Amendments of 1990, the California Clean Air Act of 1988, or the plan
prepared pursuant to Article 5 (commencing with Section 40460) of
Chapter 5.5 of Part 3.
   (2) If a city or county fails to adopt an ordinance pursuant to
this subdivision, the fee revenues which would be distributed to that
city or county shall instead be distributed to the other cities and
counties within the south coast district which have adopted an
ordinance pursuant to this subdivision, based upon their prorated
share of registered motor vehicles.
   (c) Thirty cents ($0.30) of every dollar subvened shall be
deposited by the district in an account to be used, pursuant to
Section 44244, to provide grants to fund projects for the exclusive
purpose of reducing air pollution from motor vehicles that are
authorized by, or necessary to implement, the Clean Air Act
Amendments of 1990, the California Clean Air Act of 1988, or the plan
prepared pursuant to Article 5 (commencing with Section 40460) of
Chapter 5.5 of Part 3.



44244.  (a) There is hereby created a regional Mobile Source Air
Pollution Reduction Review Committee. The committee shall be
comprised of one representative from each of the following agencies:
   (1) The south coast district.
   (2) The Southern California Association of Governments.
   (3) The San Bernardino Associated Governments.
   (4) The Los Angeles County Transportation Commission.
   (5) The Orange County Transportation Commission.
   (6) The Riverside County Transportation Commission.
   (7) The state board.
   (8) A regional ridesharing agency selected by the other members of
the committee.
   (b) Fees allocated pursuant to subdivision (c) of Section 44243
shall be used to provide grants for projects to be funded pursuant to
a work program developed and adopted by the committee and approved
by the south coast district board in the following manner:
   (1) The work program shall be adopted by an affirmative vote of a
majority of the committee members.
   (2) Upon adoption of the work program, the work program shall be
submitted to the south coast district board which, within 60 days,
may approve the work program by majority vote of the full south coast
district board. If the south coast district board fails to approve
the work program within 60 days of receiving it, the work program
shall be deemed disapproved. If the south coast district board
disapproves the work program, it shall be returned to the committee
which shall amend, readopt, and resubmit the work program to the
south coast district board for approval or disapproval.
   (c) The committee shall establish a technical advisory committee
to assist in the development of the work program. The technical
advisory committee shall include, but not be limited to,
representatives of agencies which make up the committee, a
representative of the cities from each county within the south coast
district, and a representative of the boards of supervisors of each
county within the south coast district. The technical advisory
committee shall also include one or more persons who have academic
training and professional expertise in air pollution control, and one
person who is a mechanical engineer specializing in vehicle engines.
The technical advisory committee may also include representatives of
other public agencies and other interested parties that the
committee may determine to be appropriate.
   (d) On or before July 1, 1993, the committee shall prepare, adopt,
and make available to the public clear and concise written
guidelines and procedures under which projects proposed for funding
under the work program will be reviewed and recommended for funding.
The guidelines shall specify that only those projects that include,
but are not limited to, the adoption and implementation of
transportation control measures, transportation demand management
programs, clean fuel and clean vehicle programs, and research and
monitoring programs, in compliance with the Clean Air Act Amendments
of 1990 (P.L. 101-549), the California Clean Air Act of 1988, or the
plan prepared pursuant to Article 5 (commencing with Section 40460)
of Chapter 5.5 of Part 3, and that result in direct and tangible
reductions in vehicular air pollution, shall be funded pursuant to
the work program.
   (e) The south coast district shall not be eligible for funds
allocated pursuant to this section.



44244.1.  (a) Any agency which receives fee revenues pursuant to
Section 44243 or 44244 shall, at least once every two years, be
subject to an audit of each program or project funded. The audit
shall be conducted by an independent auditor selected by the south
coast district in accordance with Division 2 (commencing with Section
1100) of the Public Contract Code. The district shall deduct any
audit costs which will be incurred pursuant to this section prior to
distributing fee revenues to cities, counties, or other agencies
pursuant to Sections 44243 and 44244.
   (b) Upon completion of an audit conducted pursuant to subdivision
(a), the south coast district shall do both of the following:
   (1) Make the audit available to the public and to the affected
agency upon request.
   (2) Review the audit to determine if the revenues from the fees
received by the agency were spent for the reduction of air pollution
from motor vehicles pursuant to the California Clean Air Act of 1988
(Chapter 1568 of the Statutes of 1988) or the plan prepared pursuant
to Article 5 (commencing with Section 40460) of Chapter 5.5 of Part
3.
   (c) If, after reviewing the audit, the south coast district
determines that the revenues from the fees may have been expended in
a manner which is contrary to this chapter or which will not result
in the reduction of air pollution from motor vehicles pursuant to the
California Clean Air Act of 1988 or the plan prepared pursuant to
Article 5 (commencing with Section 40460) of Chapter 5.5 of Part 3,
the district shall do all of the following:
   (1) Notify the agency of its determination.
   (2) Within 45 days of the notification pursuant to paragraph (1),
hold a public hearing at which the agency may present information
related to expenditure of the revenues from the fees.
   (3) After the public hearing, if the district determines that the
agency has expended the revenues from the fees in a manner which is
contrary to this chapter or which will not result in the reduction of
air pollution from motor vehicles pursuant to the California Clean
Air Act of 1988 or the plan prepared pursuant to Article 5
(commencing with Section 40460) of Chapter 5.5 of Part 3, the
district shall withhold these revenues from the agency in an amount
equal to the amount which was inappropriately expended. Any revenues
withheld pursuant to this paragraph shall be redistributed to the
other agencies or, upon approval of the district board, to entities
specified in the work programs developed by the mobile source
advisory committee, to the extent the district determines that they
have complied with this chapter.
   (d) Any agency which receives fee revenues pursuant to Section
44243 or 44244 shall expend the funds within one year of the program
or project completion date.



44246.  (a) For each school district that is required to submit a
trip reduction plan to the south coast district, the south coast
district shall waive any fee that would otherwise be imposed for the
submission or review of a trip reduction plan or for the submission
or review of any alternative compliance plan, and shall instead
recover that amount from the funds collected by the south coast
district pursuant to Section 44243.
   (b) The south coast district shall annually calculate the amount
necessary to recover the costs of school district plan reviews, and
the Mobile Source Air Pollution Reduction Review Committee shall
allocate that amount to the south coast district from the funds
collected pursuant to subdivision (c) of Section 44243.
   (c) This section shall remain in effect until January 1, 2010, or
until south coast district Rule 2202 is repealed in its entirety,
whichever first occurs, unless a later enacted statute that is
enacted before that date and before south coast district Rule 2202 is
repealed, deletes or extends that date.