HomeMy WebLinkAboutCity Council Agenda Item No. 21CITY OF
LAKE OLSIHORX
DREAM
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: THOMAS P. EVANS
INTERIM CITY MANAGER
DATE: SEPTEMBER 25, 2012
SUBJECT: CLEAN CAR/CLEAN AIR INCENTIVE PROGRAM
Recommendation
That the City Council:
1. Authorize the creation of a Clean Car /Clean Air Incentive Program for City
of Lake Elsinore residents purchasing or leasing from Lake Elsinore auto
dealers; and
2. Authorize the City Manager, or his designee, to administer the Program,
establish qualifying criteria, and to approve or deny requests for
reimbursement; and
3. Establish an initial budget of $25,000 for the Incentive Program of $2,000
for new vehicles and $1,000 for used vehicles.
Background
Assembly Bill (AB) 2766, which was signed into law in 1990, provides funding to
local governments for the implementation of programs to reduce air pollution
from motor vehicles. A motor vehicle registration fee surcharge of four - dollar ($4)
per vehicle is collected by the Department of Motor Vehicles and subvened to the
South Coast Air Quality Management District (AQMD) for disbursement. Forty
AGENDA ITEM NO. 21
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Clean Car /Clean Air Incentive Program
September 25, 2012
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percent (40 %) of the funds go to local governments to meet the requirements of
Federal and State Clean Air Acts. The legislation creating this revenue source
provides for oversight of the use of these funds by local governments. Cities and
counties under AQMD's jurisdiction provide annual program and financial
information to the AQMD. AB 2766 requires subvened funds be used for the
implementation of programs to reduce mobile source emissions.
The concept of the Clean Car /Clean Air Incentive program is a market - oriented
solution that would provide City residents with incentives to obtain and operate
new or used hybrid and Clean -Fuel Vehicles purchased or leased from existing
Lake Elsinore auto dealerships. This program would not only encourage auto
sales in the City of Lake Elsinore and reduce air pollution in the South Coast Air
Basin, but work to effectively reduce the City's overall environmental footprint.
Other jurisdictions throughout Southern California have implemented the
program. For example, the City of Riverside created a Clean Car /Clean Air
Incentive and between 2009 and 2012, there have been sixty -four (64) qualified
vehicles purchased in Riverside for which the program rebates were issued.
Discussion
The City of Lake Elsinore receives approximately fifty -six thousand dollars
($56,000) annually in AB 2766 funds. Currently, the City uses these monies to
fund a portion of the traffic signal timing and coordination program, and emission
reduction strategies.
In Lake Elsinore, there are at least two existing dealers selling hybrid vehicles
(Lake Elsinore Ford and Lake Chevrolet). Proposed program incentives are two -
thousand dollars ($2,000) for a new vehicle and one - thousand dollars ($1,000)
for a used Clean -Air Vehicle leased or purchased by a City resident from a Lake
Elsinore auto dealer. Also, by including used Clean Air Vehicles to the rebate
program may assist in increasing the number of vehicles sold locally. Thus the
proposed budget of $25,000 should be sufficient to fund the start of the program.
The creation of a Clean Car /Clean Air Incentive program would encourage City
residents to purchase and use clean hybrid and compressed natural gas (CNG),
or electric vehicles. According to the California Environmental Protection
Agency, passenger vehicles are major contributors to air pollution, with children
and the elderly at the greatest risk. The Clean Car /Clean Air Incentive Program is
designed to assist in bridging the purchasing price gap between conventional
vehicles and hybrid or CNG vehicles, and more importantly, to increase
awareness of the advantages of driving clean and green vehicles. For example,
in January 2009, as reported to the California Energy Commission by the
California Natural Gas Vehicle Coalition, vehicle incentives /buy downs were
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Clean Car /Clean Air Incentive Program
September 25, 2012
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identified as a key component to significantly expanding the use of clean fuels in
California.
The funds for the Clean Car /Clean Air Incentive Program for the City of Lake
Elsinore residents would come from the City's share of AB 2766 funds.
Reimbursements will be made on a first come, first served basis until allocated
funds are depleted annually.
To be eligible for a rebate, a vehicle must meet the following criteria:
• Fueled exclusively with Compressed Natural Gas (CNG), (one example is
the Honda Civic CNG); or
• A gasoline or gasoline electric hybrid (examples include Toyota Prius,
Honda Civic and Chevrolet Volt). The vehicle must have both:
• An EPA average fuel economy of 34 miles per gallon or better; and
• A smog score of 9 or better as listed on www.driveclean.ca.gov
• Be a plug in electric vehicle licensed for highway use (Nissan Leaf is one
example)
BMW, Chevrolet, Ford, Honda, Lexus, Lincoln, Mercury, Mitsubishi, Nissan,
Smart, and Toyota have vehicles from the 2010 to 2013 model years which
would be eligible. As time goes on, the number of qualifying vehicles is likely to
increase.
Fiscal Impact
Funds in the amount of $25,000 will be available in the Lake Elsinore Operations
Budget. These funds are available in Fund #606 (Mobile Source Air Pollution
Fund) and the current balance in this fund at the writing of this report is two -
hundred thousand dollars ($200,000).
Prepared and
Approved by: Thomas P. Evans
Interim City Manager
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