REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, October 24, 1997. The next Legislative Committee meeting is scheduled for Friday, November 21, 1997, at 8:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION

Receive and file this report.

Richard Alarcón, Chairman
Legislative Committee

Attendance

Present were Committee Chairman Richard Alarcón and Committee Vice Chair James Silva. In the absence of Committee members Roy Wilson, Michael Antonovich, and Nell Soto (arrived 9:45 a.m.), and pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Board members Wayne Nastri and Norma Glover were appointed as ad hoc members of the Legislative Committee for the October 24, 1997, meeting only. (Attachment 1)

Final Status of 1997 Legislation

A summary list was provided with the Governor’s veto messages on pertinent bills. Councilman Alarcón asked staff to characterize the year overall. Catherine Witherspoon, Legislative Director, responded that from an emissions standpoint, there was a modest setback on Smog Check II which will eventually have to be made up. However, that has to be weighed against the risk of program termination (which would have had greater impact and which many legislators supported). The rest of the 1997 legislative session was mild by comparison, except for the reformulated gasoline debate which was eventually resolved. Regarding AQMD-supported bills which did not pass, Councilman Alarcon inquired whether these legislative proposals would be reintroduced. Staff responded that many of the issues would resurface, noting environmental justice initiatives among others. (Attachment 2)

Returning to the emissions shortfall issue, Councilman Alarcón inquired what was occurring at the federal level on marine shipping and airport expansion. Barry Wallerstein, Acting Executive Officer, responded that EPA designed their rulemaking to match the 1994 ozone SIP but had fallen a little behind. He added that AQMD is actively encouraging EPA to control marine and airport sources and to redesign current proposals to address PM₁₀ attainment. Wayne Nastri then asked whether the District could sue EPA to force speedier action. Peter Greenwald, General Counsel, noted that AQMD intervened in the prior Federal Implementation Plan (FIP) lawsuit for precisely that purpose, to compel EPA to meet its control obligations. However, federal law grants EPA wide discretion for controlling mobile sources. Wayne Nastri commented that the AQMD may need a more creative approach in working with EPA on this issue. Councilman Alarcón commented that federal advocacy efforts would be helpful in that regard and directed staff to report back to the Legislative Committee with a specific program to implement strategies at the federal level.

Report on Senate Transportation Committee Interim Hearing on Heavy-Duty
Vehicles and Diesel Engines

Catherine Witherspoon reported that the hearing was well attended by advocates for alternative fuel, oil company representatives, environmental groups and others. AQMD Chairman Bill Burke and Acting Executive Officer Barry Wallerstein testified on the impact of diesel emissions in the South Coast Air Basin. No immediate action was taken but the hearing clearly added momentum to AB 1368 (Villaraigosa) -- state grants for diesel controls, and SB 1096 (Brulte) -- tax incentives for natural gas trucks. Assemblyman Villaraigosa plans to work closely with Senator Brulte on a bipartisan approach.
Councilman Alarcón added that he also testified at the hearing on behalf of the City of Los Angeles, recommending that incentives be added for the relocation of marine shipping lanes. Councilman Alarcón asked staff to seek amendments to the legislation to include this issue.

Report on Planning and Conservation League (PCL) Initiative

The Planning and Conservation League (PCL) has drafted an initiative for the 1998 ballot known as "The California Air Quality Improvement Program." Staff provided a summary of this initiative. Preliminary polling data indicate public support for environmentally oriented tax credits. Also, the initiative contains several different elements meant to attract diverse support. Supervisor Silva inquired whether all parties are truly supporting this initiative. Staff responded that there is no official opposition at this time, though CARB has some concerns about its impact on the Board. The California Trucking Association and the petroleum industry appear to support tax credits over other fiscal strategies, given their testimony at the October 15 Senate Transportation Committee hearing. Future opposition may emerge from taxpayer groups or school advocates, because the initiative draws revenue from the state’s general fund. (Attachment 3)

Discussion on TAO Reauthorization Strategy

The AQMD Governing Board held a special study session on TAO Reauthorization on October 17, 1997, and directed staff to pursue reauthorization in the 1998 legislative session. Dr. Wallerstein provided the Committee with a brief overview of the Clean Fuels Program Reauthorization effort. The Committee was also provided with a draft resolution and proposed timeline for 1998 bill passage. Mr. Nastri expressed strong support for the resolution and stated that CARB supports the current clean fuels program. He also said he would continue to work with the Governor’s Office for formal support. Supervisor Silva expressed some initial concern about the proposal but, after hearing Mr. Nastri’s remarks, agreed to support it. The Committee forwarded the Clean Fuels Program Reauthorization Resolution to the Governing Board for approval. (This will be a separate item on the November 14, 1997, Board agenda.)

Report on Federal Advocacy Program

As requested at the previous Legislative Committee meeting, staff provided a matrix on staff interactions regarding federal policies (Attachment 4). Dr. Wallerstein briefly reviewed the matrix and key issues where AQMD interacts with EPA, including stationary and mobile sources, small business assistance/outreach, and various task forces and advisory committees. Staff will continually update this matrix and provide it, bimonthly, to the Governing Board in the Legislative Committee report. Mr. Nastri inquired whether the matrix would break out specific activities during the bimonthly period. Dr.
Wallerstein responded that staff would include a column to reflect recent and ongoing activities. Councilman Alarcón added a request that the matrix detail the various levels at which the AQMD interacts with EPA.

Discussion on Release of RFPs for Legislative Consulting Services

Councilman Alarcón proposed that there may be a benefit to contracting for outside legislative consulting services at the state and federal level. He added that there is an urgent need for representation at the state level with the departure of Catherine Witherspoon on October 31, 1997. Dr. Wallerstein reported that he met with Lupe Valdez, Deputy
Executive Officer/Public Affairs and Local Government Assistance, and evaluated the options for the legislative program. While staff members in the Sacramento Legislative Office could continue to carry out the day-to-day activities, it was felt that adding outside legislative consulting services would benefit the current program.

Supervisor Silva expressed concern about outside consulting for legislative services with current fiscal concerns and suggested that in-house local government staff be utilized instead. Supervisor Silva added that there are coordination problems between AQMD and CARB; keeping the program in-house would improve coordination. Supervisor Silva then commented favorably on Intergovernmental Affairs Director Oscar Abarca’s testimony before CARB, stating that this demonstrated the competence of in-house staff.
Dr. Wallerstein responded that while local government staff has assisted with legislative outreach, reassigning staff to legislative outreach could hinder local government outreach opportunities. By contrast, an outside contractor would provide special expertise on various issues and would only be utilized to the extent necessary, on a time and materials
basis. Mr. Nastri added that an outside lobbying firm could bring special expertise,
access and credibility. It is important to maintain a presence in Sacramento, and, at a minimum, the current staffing level should be maintained.

Relative to federal level advocacy efforts, Councilman Alarcón requested that an RFP for legislative consulting services in Washington, D.C., be considered. Supervisor Silva
suggested that Mr. Cameron of the Governor’s office be utilized before issuing a RFP for federal consulting services. Mr. Nastri suggested that the Governor’s office option could be evaluated on a trial basis. Councilman Alarcón stated that the AQMD should strategically utilize the Governor’s office, but that AQMD needs an independent presence in D.C. Councilwoman Glover commented that the proposed level of funding would limit the extent of federal lobbying services AQMD could expect. Nonetheless, she supported the issuance of an RFP for the purposes of determining the strengths and capabilities of applicant lobbying firms.

Ultimately, the Committee recommended, with Supervisor Silva opposing and Mr. Nastri abstaining, the issuance of RFPs for legislative consulting services for Sacramento, California, and Washington, D.C., for Governing Board consideration at their November 14, 1997, meeting. (This will be a separate item on the November 14, 1997, Board agenda.) The Committee also directed Ms. Valdez to come back to the Committee with a plan to restructure current staff to fill the vacancy left by the departure of Catherine Witherspoon.

Other Business/Public Comments

There were no public comments.

Ethnic Community Advisory Group

Attached for your information are the Ethnic Community Advisory Group minutes for the September 10, 1997, meeting. (Attachment 5)

Attachments

1. Attendance Roster

2. Final Legislative Status Report with Veto Messages

3. Planning and Conservation League (PCL) Initiative

4. Interactions Regarding Federal Policies Matrix

5. Ethnic Community Advisory Group (September 10, 1997, minutes)

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