BOARD MEETING

DATE: January 12, 1996

AGENDA NO. 17

REPORT: Legislative Committee

SYNOPSIS: The Legislative Committee held its regular meeting on Friday, December 15, 1995. An attendance record is included for your information (Attachment 1). The next Legislative Committee meeting is Friday, January 19, 1996, at 8:30 a.m. in Conference Room CC8.

RECOMMENDED ACTION:

1. Receive and file the attached report.

Dr. William Burke

Legislative Chairman

TE:CW:DAR

Attachments (3)

(1-96bdlt.doc)

Legislative Ramifications of Public Hearing on Rule 2202 and AQMD Position

As a result of the Board's adoption of Rule 2202 (On-Road Motor Vehicle Mitigation Options), staff reported that Senators Lewis and Hurtt may introduce one or more bills to either: 1) repeal the AQMD's action; 2) remove the AQMD's authority to impose employer-based regulations; or 3) restructure the AQMD in some fashion (perhaps by placing its budget under the Governor's authority). Staff recommended that the Board resume meetings with legislators to clarify and explain the Board's decision.

Board Member Hugh Hewitt reported that he would be meeting with Senator Hurtt and others on December 15. In the interim, he suggested that AQMD keep in close contact with Senator Lewis' and Senator Hurtt's offices, and that staff coordinate closely with the Air Resources Board. Later in the meeting, Mr. Hewitt also requested that staff send a memorandum to legislators about the two unfinished issues regarding Rule 2202; namely, whether school districts should be exempted from the program and/or from the payment of fees.

Congressional Update

Legislative staff provided the Committee a federal legislative update (Attachment 2). With regard to the federal Clean Air Act amendments proposed by Senator Lauch Faircloth (R-North Carolina), staff noted that the U.S. EPA and Wilson administration are reviewing the substantive effect of each change. Staff recommended that AQMD take the same approach in 1996, since it appears that the amendments to the Clean Air Act may be handled individually.

Forecast of 1996 Legislation

The end-of-year report contains forecasts of bills expected to be introduced, or carried forward, next year. Information about other air quality proposals is still sketchy, but staff expects amendments to the California Clean Air Act to dominate the session. Industry is also concerned about emission trading credits, and may pursue legislation to build on this year's lawmaking. Staff also reported that the Western States Petroleum Association is seeking funds to implement their scrappage bill (SB 501-Calderon), which has been signed into law. WSPA does not plan to attack AB 2766 funds in 1996, but may do so in the future. This discussion prompted a comment from Chairman Mikels, that in order to justify AB 2766 funds, cost-effectiveness analyses must be performed on funded projects. Ideally, he would like AB 2766 funds to offset ISRs. Larry Rhinehart explained that ARB's report on the statewide program includes cost-effectiveness ratings for some projects. The MSRC has a separate cost-effectiveness study underway, with Acurex, that should be completed shortly.

In response to a question about the status of two-year bills, staff indicated that it would bring updated analyses to the Committee next month. Board Chairman Jon Mikels and Mr. Hugh Hewitt suggested that the AQMD begin anew in 1996, and assume no policy positions on two-year bills until they have been considered by the Legislative Committee.

Board Member Hewitt asked who might chair the Assembly Committees with jurisdiction over air quality next year. Staff responded that no one knows for sure, but if the current Republican vice-chairs move up, the new chairman of the Assembly Natural Resources Committee will be Keith Oldberg (Victorville).

Other Business

The Air Resources Board held a hearing on its Zero-Emission Vehicle mandate on December 14, 1995, at which Chairman Jon Mikels testified. Board Member Hewitt inquired about the AQMD's role in the debate and whether the AQMD intended to criticize ARB's final decision in the media. Chairman Mikels and staff responded that AQMD has long supported ZEVs due to their critical role in the Air Quality Management Plan. In prior years, the AQMD pushed ARB to require even higher ZEV penetration by 2010. In 1994 (the last time the mandate was debated) the AQMD and ARB agreed on the current 2%, 5%, 10% schedule, with an additional, less specific mobile source control measure to make up the difference. Chairman Mikels' testimony noted that ZEVs were the cornerstone of the AQMP and that direct control measures are preferable to indirect source controls--even if they need some fine-tuning during the implementation process.

Board Member Hewitt noted that the trickle of Air Quality Investment funds may soon turn from a trickle to a flood given the adoption of Rule 2202. Accordingly, suggested that staff convene a conference with affected parties to discuss how these funds should be spent, and to collaborate with Mary Nichols (U.S. EPA Assistant Administrator) on this effort.

Ethnic Community Advisory Council

Attached for your information are the Ethnic Community Advisory Council minutes for the November 1995 meeting (Attachment 3).