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Assembly Member Hancock State Capitol 942849 Sacramento, CA 95814 Dear Assembly Member Hancock: I am writing in opposition to SB 240 (Florez) which would authorize the San Joaquin Valley Unified Air Pollution Control District (SJVAPCD) to impose a new $300 annual fee on all stationary and areawide sources of air pollution. It allows the SJVAPCD to increase vehicle licensing fees up to $30 per vehicle. SB 240 would impose new state mandates on a district that is successfully dealing with addressing the Valley’s most pressing issue—improving air quality. SB 240 places a disproportionate emphasis on highly-regulated stationary sources in the San Joaquin Valley, which account for 20 percent of the Valley’s pollution. The most significant source of pollution comes from the huge volume of vehicles traveling along the Interstate 5 and Highway 99 corridors. Furthermore, it is estimated that 20 to 30 percent of all truck movements don’t even originate or end in the San Joaquin Valley but are passing through. The SJVAPCD has limited authority to regulate these mobile source emissions. So it is not reasonable to require businesses with stationary sources, which currently pay emission fees, to shoulder this added burden Furthermore, SB 240 is unclear how the new stationary fee will be assessed. Will all stationary sources be treated in the same manner or will fees vary from industry to industry? Will the new fee be levied on individual equipment or on a per-site basis? Hence it is difficult to calculate the total amount of fees that will be collected under this bill or to ascertain its economic impact. If regulators decide to impose the new fees on all permitted equipment and facilities, one agribusiness estimated that their emissions fees would skyrocket from just $300 to $150,000 per year! Finally, SB 240 does not go into effect unless SB 719 (Machado) is passed, which increases the size of the SJVAPCD Governing Board and modifies the local appointment process. The use of funds to achieve air quality standards is unrelated to the makeup of the SJVAPCD Board and SB 240 should not be joined to this bill. I urge you to oppose this bill. SB 240 is more about politics and control rather than improving Valley air quality.