BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Jack Scott, Chair
                           2005-2006 Regular Session
                                        

          BILL NO:       SB 698
          AUTHOR:        Poochigian
          AMENDED:       March 29, 2005
          FISCAL COMM:   Yes            HEARING DATE:  April 20, 2005
          URGENCY:       No             CONSULTANT:Lynn Lorber


           NOTE  :  This bill has been referred to both the Senate  
          Education Committee and the Energy, Utilities and  
          Communications Committee.  A "do pass" motion should  
          include a referral to the Senate Energy, Utilities and  
          Communications Committee.

           SUBJECT  :  Schoolbus replacement
          
           SUMMARY  

          This bill annually appropriates $50 million from the  
          General Fund (Proposition 98) to the Clean Air and  
          Schoolbus Safety Fund for the replacement first of  
          schoolbuses manufactured before 1977, and subsequently  
          those built before 1987.  

           BACKGROUND  

          The Katz Safe Schoolbus Clean Fuel Efficiency Demonstration  
          Project (demonstration project) requires the Energy  
          Commission to determine, in consultation with the  
          California Highway Patrol (CHP) and the Superintendent of  
          Public Instruction (SPI), the local education agencies that  
          are to participate in the demonstration project and receive  
          replacement schoolbuses.  

          Staff understands that General Fund support for the  
          demonstration project has ceased or will soon, and that the  
          State Air Resources Board (ARB) is helping to support the  
          project through fee collections.  This bill provides a  
          significant level of funding that is estimated to cover the  
          costs of replacing all schoolbuses that were built before  
          1977, and some that were built before 1987.  California  
          public schools are reportedly using almost 6,000  




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          schoolbuses that were built before 1987, 1,000 of which  
          were built before 1977. 

          Pursuant to the settlement of Williams v. State of  
          California, the School Facilities Emergency Repair Program  
          receives $100 million per year from the Proposition 98  
          Reversion Account.  Reversion account funds are also  
          provided to CalWORKs Stage 2 child care, and the  
          Administration proposes $20 million in one-time Proposition  
          98 Reversion Account funding to increase coordination  
          between community colleges and high schools for fully  
          articulated, industry-driven career technical education  
          curricula, as part of the Administration's Career Technical  
          Education initiative.  It is estimated that the Reversion  
          Account for 2005-06 will have $166 million.

           ANALYSIS  

           This bill  appropriates $50 million from the General Fund  
          (Proposition 98) annually for five years for the  
          prioritized replacement of schoolbuses based on manufacture  
          date and average daily mileage.  Specifically, this bill:

          1)   Eliminates the Katz Safe Schoolbus Clean Fuel  
               Efficiency Demonstration Program, establishes a  
               similar Clean Air and Schoolbus Safety Program and  
               requires the Controller, each year beginning with the  
               2006-07 fiscal year, to annually transfer $50 million  
               from the Proposition 98 Reversion Account to the Clean  
               Air and Schoolbus Safety Fund.  This bill requires the  
               funds to be used for the replacement of schoolbuses  
               and requires the Energy Commission to administer the  
               fund according to the following order of priority:

               a)        Schoolbuses manufactured before 1977.

               b)        After all schoolbuses made before 1977 have  
                    been replaced, schoolbuses with the:

                    i)             Earliest manufacture date.

                    ii)            Average daily mileage.

          2)   Requires a school district to use the funds to  
               purchase schoolbuses that comply with federal and  
               state safety standards and emission standards adopted  




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               by the ARB.  

          3)   Removes the role of the CHP and the SPI in advising  
               and consulting with the Energy Commission in the  
               project of replacing schoolbuses, instead requiring  
               the Commission to seek advice from and consult with  
               the ARB.

          4)   Prohibits the Energy Commission from using more than  
               5% of any state schoolbus replacement funds for  
               administrative costs.

           STAFF COMMENTS  

           1)   Role of the CHP and SPI .  This bill removes role of  
               CHP and SPI in advising and consulting with the Energy  
               Commission, and instead gives that role to the ARB.   
               The CHP and SPI were apparently included because the  
               demonstration project was new.  The project has since  
               demonstrated success and the ARB has worked  
               effectively with the Energy Commission on the project.

           2)   Special circumstances  .  The demonstration project  
               provided a process by which local education agencies  
               may ask for consideration of special circumstances  
               that may warrant the replacement of a schoolbus that  
               may not otherwise qualify for replacement.  This bill  
               deletes that provision, but it is estimated that the  
               funding proposed by this bill will ensure the  
               replacement of all buses that may be in extreme  
               disrepair.  

           3)   Related legislation  .  AB 1107 (Berg) establishes the  
               purchase of new schoolbuses to replace buses  
               manufactured prior to January 1, 1987, as the third  
               priority for state funds provided to small school  
               districts for replacement or reconditioning of  
               schoolbuses, and establishes the reconditioning of  
               schoolbuses manufactured prior to January 1, 1987, as  
               the fourth priority.  AB 1107 is pending in the  
               Assembly Appropriations Committee.

           SUPPORT  

          Eureka Union School District
          School Transportation Coalition




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           OPPOSITION  

          None received