July 14, 1995

South Coast Air Quality

Management District Board

Joint Legislative and Mobile Source Committee

Report and Recommendations

The Legislative and Mobile Source Committees held a special joint meeting on Friday, June 23, 1995, primarily to discuss trip reduction legislation. An attendance record is included for your information (Attachment 1).

Summary of Recommendations

Recommended

Position Changes

AB 526 (Sher) -- Indirect Source Controls WATCH to

SUPPORT WITH

AMENDMENTS

SB 382 (Lewis) -- Parking Charges; Shopping Trips NEUTRAL to

SUPPORT

SB 437 (Lewis) -- Restriction: Trip Reduction NEUTRAL to

SUPPORT WITH

AMENDMENTS

SB 501 (Calderon) --Vehicle Retirement; Scrappage OPPOSE UNLESS

` AMENDED to

CONDITIONAL

SUPPORT

SB 772 (Hurtt) -- Prohibit Trip Reduction Plans NEUTRAL to

SUPPORT WITH

AMENDMENTS

SB 836 (Lewis) -- Trip Reductions: Statewide Definition NEUTRAL to

SUPPORT WITH

AMENDMENTS

SJR 2 (Russell) -- Employer Trip Reduction Plans: NEUTRAL to

Resolution on ECO Mandate SUPPORT WITH

AMENDMENTS

SJR 5 (Kopp) -- Federal Clean Air Act: Resolution on NEUTRAL to

SUPPORT WITH

AMENDMENTS

Report

Legislative Status Report

The Legislative Committee was provided with a mid-session status report

(Attachment 2). In addition, staff reported changes to the Assembly committees made by Speaker Doris Allen (as outlined in Attachment 3).

Position on SB 501 (Calderon) Regarding Scrappage

At a prior meeting, the Legislative Committee recommended an "Oppose Unless Amended" position on SB 501 due to insufficient funding, potential conflicts with other programs (e.g., the state's electric vehicle mandate), and the lack of clear implementation mechanisms. Staff reported that the bill has improved considerably, causing several parties to remove their opposition and causing the Governor's Office to lean towards support. However, the funding issue is still unresolved. SB 501 will generate only $24 million annually in revenues (best case scenario), while the statewide scrappage measure will cost between $40-$75 million annually by 1999. Also, the Bureau of Automotive Repair has indicated a $20 million annual shortfall in California's existing smog check program using the same revenue source that SB 501 proposes to use. This funding gap threatens existing revenues, most notably the vehicle registration surcharge that local government, air districts, and the South Coast Mobile Source Air Pollution Reduction Review Committee currently receive (also known as AB 2766 funds). After much discussion, the joint Committees recommended that the Governing Board change its position on SB 501 to "Support" with the condition that independent funding is secured. The bill is in a state of flux and continues to be amended. (See Attachment 4 for staff's analysis of the most recent version in print.)

Modifications to Positions on Trip Reduction Mandates

The Legislative Committee has been wrestling with recommended positions on trip reduction bills since the April 14, 1995, Governing Board hearing when substantial amendments to Rule 1501 were adopted. On April 21, the Legislative Committee resolved not to oppose these bills, instructing staff, instead, to appeal to the authors for one year's grace to implement the revised rule. On June 9, when staff reported that these appeals had been denied and the legislation was still moving forward, the Legislative Committee recommended that the District's policy position be set for a full public hearing including the opportunity to testify. On June 16 the Board's Mobile Source Committee requested a special joint meeting with the Legislative Committee to discuss this subject. Hence, on June 23, the joint Committees met, conferred and modified the recommended positions on trip reduction bills and the recommended Board action as described below.

Eight bills were discussed on June 23: AB 19XX (Pringle); AB 526 (Sher); SB 382 (Lewis); SB 437 (Lewis); SB 772 (Hurtt); SB 836 (Lewis); SJR 2 (Russell); and SJR 5 (Kopp). (See Attachment 5 for individual analyses of these bills.) Staff also presented detailed information on the current cost-effectiveness of Rule 1501, its relationship to the District's attainment plan, and the need for substitute measures if trip reduction and related indirect source measures are legally prohibited.

After considerable discussion, the joint Committees resolved to recommend:

1) that the Governing Board revisit Rule 1501 in October at a full public hearing to discuss alternative measures, the need for State Implementation Plan amendments, enacted state legislation and the status of federal mandates;

2) that the Governing Board support the eight bills listed above with the amendments noted on each analysis (where applicable); and

3) that the Governing Board affirm that any shortfall in emission reductions resulting from these actions shall not result in additional controls upon stationary sources.

Ethnic Community Advisory Council

Attached for your information are the Ethnic Community Advisory Council minutes for the April and May 1995 meetings (Attachment 6).

Next Legislative Committee Meeting

The next Legislative Committee meeting is Friday, July 21, at 8:30 a.m. in Conference Room CC8.

THEREFORE, IT IS RECOMMENDED THAT THE BOARD

--Approve the recommended legislative position changes above; and

--Receive and file this report.

Sincerely,

Candace Haggard

Chair, Mobile Source Committee

Dr. William Burke

Chair, Legislative Committee

TE:CW:DAR

Attachments (6)

(7-95bdlt.doc)