Chapter 3.30 — AIR QUALITY IMPROVEMENT TRUST FUND

The City Council finds and declares as follows:

A. The City is committed to protecting the public health, safety, and welfare which includes
aspects involving air quality.

B. As identified by the South Coast Air Quality Management District (SCAQMD) in the Air
Quality Management Plan (AQMP), mobile sources are a major contributor to air pollution
in the South Coast Air Basin (SCAB).

C. As determined by the SCAQMD and expressed in the AQMP, State and Federal ambient
air quality standards for the SCAB cannot be met without reducing air pollution from
mobile sources.

D. Cities and counties have the opportunity to implement programs and projects that reduce
air polluting emissions from mobile sources in order that the SCAB attain State and Federal
ambient air quality standards as required by the California Clean Air Act of 1988,
California Health and Safety Code Section 39000 et seq.

E. Section 44223, added to the Health and Safety Code by action of the California Legislature
on September 30, 1990 (Chapter 90-1705), authorizes SCAQMD to impose an additional
motor vehicle registration fee to finance the implementation of mobile source air pollution
reduction programs necessary to attain State and Federal ambient air quality standards as
required by the California Clean Air Act of 1988.

F. To the extent possible, the financial burden of local implementation of mobile source air
pollution reduction programs should be shifted from the general fund to the revenues
collected by the additional motor vehicle registration fee.

G. For cities and counties located within the jurisdiction of the SCAQMD that comply with
§ 44243 of the California Health and Safety Code, $0.40 of every dollar collected under
California Health and Safety Code § 44223 shall be distributed to the cities and counties on
the basis of the jurisdiction's prorated share of population as defined by the State
Department of Finance.

H. Cities and counties that fail to adopt an ordinance pursuant to California Health and Safety
Code Section 44243(b) shall have the fee revenues which would be distributed to that city
or county distributed to the other cities and counties within the jurisdiction of the
SCAQMD which have adopted an ordinance pursuant to Section 44243(b) based on their
prorated share of registered motor vehicles.

I. The City is located within the jurisdiction of the SCAQMD and is eligible to receive a
portion of the revenues from the additional motor vehicle registration fee upon adoption of
this ordinance.

J. The City, after careful consideration, hereby finds and declares that the imposition of the additional motor vehicle registration fee by the SCAQMD to finance mobile source air pollution reduction programs, is in the best interest of the general welfare of the City and its residents. Therefore, the City deems it is advisable to adopt the Ordinance as codified in

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City of Newport Beach, CA § 3.30.010 REVENUE AND FINANCE § 3.30.050

this chapter.

(Ord. 91-23 § 1, 1991; Ord. 2023-22 § 127, 2023; Ord. 2025-37, 1/13/2026)

The intent of this chapter is to establish a special fund to receive revenue distributed by the SCAQMD, to support the SCAQMD’s imposition of the additional vehicle registration fee and to bring the City into compliance with the requirements set forth in California Health and Safety Code Section 44243 to receive fee revenues for the purpose of implementing mobile source air pollution reduction programs. (Ord. 91-23 § 2, 1991; Ord. 2023-22 § 128, 2023)

A. “Fee Administrator” shall mean the Administrative Services Director of the City.

“Mobile source air pollution reduction programs” shall mean any program or project
implemented by the City to reduce air pollution from motor vehicles pursuant to the
California Clean Air Act of 1988 or the plan proposed pursuant to California Health and
Safety Code Section 40460 et seq.

(Ord.B. 91-23 § 3, 1991; Ord. 2023-22 § 129, 2023; Ord. 2025-37, 1/13/2026)

A. Receipt of Fee. Vehicle registration fees due pursuant to this chapter, disbursed by the SCAQMD and remitted to the City, shall be accepted by the Fee Administrator.

B. Transfer of Funds. Upon receipt of the City’s share of the additional vehicle registration
fees, the Fee Administrator shall deposit the fees into a separate account as specified in
subsection (C) below.

C. Establishment of Air Quality Improvement Trust Fund. The Fee Administrator shall
establish a separate interest-bearing air quality improvement trust fund account in a
financial institution authorized to receive deposits of City funds. Interest earned by the fees
in this account shall be credited only to this account.

D. Use of Funds. The fees deposited in and interest credited to the air quality improvement
trust fund account shall only be used for the financing of mobile source air pollution
reduction programs or projects.

E. Audits. The City consents to providing the findings of its annual independent audit for
mobile source air pollution reduction programs and projects financed by the additional
motor vehicle registration fee. The audit of those programs and projects shall be conducted
in accordance with the procedure established to fulfill the audit requirement under
California Health and Safety Code Section 44244.1.

F. Appeals. The City shall have the right to appeal the findings and determinations made as a
result of the SCAQMD audit procedure through the public hearing process described in
California Health and Safety Code Section 44244.1.
(Ord. 91-23 § 4, 1991; Ord. 2023-22 § 130, 2023)

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City of Newport Beach, CA § 3.30.050 NEWPORT BEACH CODE § 3.30.050

The provisions of this chapter shall be liberally construed to effectively carry out its purposes, which are hereby found and declared to be in furtherance of the public health, safety, welfare and convenience. (Ord. 91-23 § 5, 1991)

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City of Newport Beach, CA § 3.32.010 REVENUE AND FINANCE § 3.32.010