• Authorizes State Air Resources Board and delegated air pollution control districts to award $218 million in state tax credits annually until January 2011, to encourage air-emissions reduction through acquisition, conversion, and retrofitting of:
-- vehicles, buses, and heavy-duty trucks;
-- hearth products;
-- construction vehicles and equipment;
-- lawn and garden equipment;
-- ambient air pollution destruction technology;
-- off-road, nonrecreational vehicles;
-- port equipment;
-- agricultural waste and rice straw conversion facilities;
and through research and development.
• Requires study of air quality market-based incentive program for prescribed burning projects.
• Establishes local transportation funds as trust funds.