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REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday,
July 24, 1998. The next regular Legislative Committee meeting scheduled for August 21, 1998, has been canceled and will be rescheduled in August with a date to be determined.

RECOMMENDED ACTION

Receive and file this report.

Richard Alarcón, Chairman
Legislative Committee

Attendance
The Legislative Committee met on July 24, 1998. Richard Alarcón, Chairman of the Legislative Committee and Committee member Roy Wilson (by video conference) were present. Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Leonard Paulitz was appointed as an ad hoc member of the Legislative Committee for the July 24, 1998, meeting only. Committee members Michael Antonovich and Nell Soto arrived after the meeting commenced. Committee member Jim Silva was absent. (Attachment 1)

Washington Update
Raul Tapia and John O'Donnell, Legislative Representatives in Washington, D.C., briefed the Committee on recent activity in Washington and distributed a memorandum to the Committee. (Attachment 2) Mr. O'Donnell reported that efforts were ongoing to secure funding of $5 million for innovative programs but, unfortunately, the Appropriations process started in January and our efforts began late April. Mr. O'Donnell added that even though no funding was appropriated to AQMD for FY 99, the effort made this year has set the stage for next year. Congressman Lewis is very interested in AQMD programs and considers funding for them a priority. Discussions with Appropriations staff have revealed that they also believe AQMD's request has merit, but was late in the process. Discussions will now continue with Appropriations staff and AQMD staff to prepare a request for next year.

Mr. Tapia reported on HR 8 (Bilbray) -- Border Smog Reduction Act of 1998. This bill amends the Clean Air Act to direct Federal departments and agencies to cooperate in state and local enforcement of state auto emission standards and vehicle registration laws concerning noncommercial vehicles entering the United States. HR 8 is pending in the Senate Environment Public Works Committee.

Update on AB 2194 (Washington) – Clean Fuels Reauthorization
The Senate Appropriations Committee vote on AB 2194 was distributed to Committee members. (Attachment 3) Lupe Valdez, Deputy Executive Officer of Public Affairs, reported that AB 2194 passed the Senate Appropriations Committee on July 13 with a bi-partisan vote of 11-1. The bill is now before the full Senate for vote and could be considered as early as July 30.

Sacramento Update and Legislative Status Report
An updated Legislative status report was included in the Committee package. (Attachment 4) Ms. Valdez reported that budget negotiations are still underway and regular activity on legislation will resume August 3. Councilman Alarcón asked how the AQMD is doing in terms of performance. Ms. Valdez responded that the AQMD has enhanced its presence in Sacramento, especially with the assistance of Board member participation in Sacramento. Ms. Valdez added that there are few bills that the AQMD is opposing. Staff will prepare a year-end report on the 1998 legislative year and evaluation of legislative activities.

Barry Wallerstein, Acting Executive Officer, stated that the clearest indication of how the AQMD is doing is the Clean Fuels Reauthorization and its passage out of Senate Appropriations with support by key Republican members. Councilman Alarcón stated that it is important to track performance on all issues and that it is the Legislative Committee's responsibility to ensure the AQMD's legislative advocacy program is successful.

Matrix on Interactions Regarding Federal Policies
An updated matrix was provided to the Committee as information only. (Attachment 5)

Update on Proposed Legislative Conference
Ms. Valdez reported that Marguerite Archie-Hudson would probably be unable to continue work on the Legislative Conference planned for Sacramento. Staff will meet with Ms. Archie-Hudson and report to the Committee on progress to date on this effort.

Recommended Positions on Bills:
Staff provided analyses on two bills and provided a brief description of each bill. (Attachment 6)

Bill/Title		Recommended Position
AB 2067 (Cunneen) -- Hazardous Wastes: Clean Air Solvents		NO CHANGE IN BOARD POSITION
SB 1083 (Polanco) -- Diesel Exhaust Emissions		NO POSITION

• AB 2067 (Cunneen) amends hazardous waste control laws and alters hazardous waste fees and imposes a manifest fee for the disposal of used clean air solvents that are considered hazardous wastes. Ms. Valdez reported that previously the Legislative Committee took a Support with Amendments position on this bill and directed staff to work with the author to clarify the definition of clean air solvents. At that time the bill exempted clean air solvents from a hazardous waste manifest fee. Recent amendments to the bill, however, no longer provide for this exemption and instead would impose a $3.50 fee per manifest. In light of these amendments, staff recommends a Neutral position on the bill.
  
  Councilman Alarcón asked what the rationale is for going Neutral. Ms. Valdez responded that previously the AQMD only supported the portion of the bill dealing with clean air solvents and not a fee for disposing of clean air solvents. Dario Frommer, AQMD Sacramento Legislative Representative, added that the AQMD has encouraged businesses in the South Coast Air Basin to use clean air solvents and now this bill would make these solvents hazardous waste and require users to pay a hazardous waste fee. Councilman Alarcón asked if this bill would deincentivize companies from using these solvents and Mr. Frommer said yes. Councilman Alarcón asked whether the position would change if the fee were lower. Mr. Frommer responded that there have been ongoing discussions to find a medium where there would be some reduction in fees for those using compliant solvents but no agreement has been reached.
  
  Councilman Alarcón stated that he does not see Neutral as a proactive position and that an analysis should be done to determine at what point the AQMD might change its position. Dr. Wallerstein noted that staff's intent on this issue was that if it was possible to push towards the original language or to get the $3.50 fee lowered, then that would be advantageous in promoting clean air solvents. Councilman Alarcón stated that a Neutral position says nothing. The Legislative Committee referred this item back to staff for reconsideration. No change recommendation was made to the Board.
  

• SB 1083 (Polanco) prohibits the Air Resources Board from listing diesel exhaust as a toxic air contaminant until a report is submitted to the Legislature substantiating diesel exhaust as a known human carcinogen. This bill also requires the Business, Transportation, and Housing Agency to conduct a study to determine feasibility and economic impact of replacing diesel-fueled engines. Ms. Valdez reported that this bill was originally a Child Assistance bill by Senator Watson. Senator Polanco took over the bill and amended it on July 10 to address diesel exhaust. Councilman Alarcón asked if there are sufficient studies to make the determination of diesel exhaust as a toxic air contaminant. Dr. Wallerstein responded that the Air Resources Board's technical staff has sufficient studies to make that determination. Dr. Wallerstein added that staff recommends meeting with Senator Polanco’s staff to discuss the AQMD’s concern prior to taking a position. The Legislative Committee directed staff to work with Senator Polanco's staff on this bill. No position recommendation was made to the Board.

Motion on Permits at Los Angeles Export Terminal (LAXT) Regarding Plans to Mitigate Pollution from Petroleum Coke
Councilman Alarcón excused himself as Chairman and appointed Councilwoman Soto as chair of the Committee for discussion of this item only.

Councilman Paulitz stated that he understands there has been backsliding on commitments that were made by LAXT and asked if this issue could be handled administratively. Dr. Wallerstein stated that LAXT agreed to construct domes to cover petroleum coke storage piles. Plans were submitted to the AQMD, which were reviewed and approved in 1997. There is now a new director of the LAXT project and a plan revision has been submitted to the AQMD, which deletes the domes and calls for increased storage. Staff is reviewing this plan revision and hopes to complete review by August 1. Dr. Wallerstein added that staff remains very concerned about this proposal. Monitoring data conducted at the site indicates a contribution from the site of 49.1 micrograms of particulate, which is very close to the 50 microgram threshold in AQMD Rule 403. Although the technical analysis is not yet complete, there is concern based on the monitoring data. In the event the AQMD does not approve the plan revision, LAXT would then likely proceed to the Hearing Board.

Councilman Paulitz asked whether the Legislative Committee should review this item or refer this issue to another Committee. Dr. Wallerstein responded that although this has been a major legislative issue in that it affects AQMD relations with the City of Los Angeles, the surrounding community and has created great public concern over the last year, it would be appropriate for any Committee to make a recommendation to the Board. Councilman Paulitz recommended this item be referred to the Stationary Source Committee for consideration at their July 24, 1998, meeting. This recommendation was approved by the Legislative Committee, with Councilman Alarcón abstaining.

Other Business/Public Comment
Ms. Valdez reported that the AQMD has been invited to attend the Inland Empire Economic Partnership Air Quality Conference on August 21 from 7:00 a.m. to 1:30 p.m. at the Ontario Hilton. This is also the date of the next regular Legislative Committee meeting. Dr. Wallerstein added that Supervisor Wilson was approached by the organizers of the event and forwarded a request to Dr. Burke to have the Committee meetings rescheduled. Conference organizers have offered use of conference rooms at the Ontario Hilton if any Committee wants to hold their meeting in the afternoon at the hotel. Councilman Alarcón stated that he is interested in attending the conference and that the Legislative Committee meeting could be rescheduled, but asked if this Conference is one that AQMD should participate in. Dr. Wallerstein responded that this Conference is a great opportunity for Board member participation. Conference organizers anticipate Inland Empire Congressional and Sacramento members, and have invited Carol Browner of EPA to attend. Staff will work with Councilman Alarcón to reschedule the August Legislative Committee meeting.

Ethnic Community Advisory Group
Attached for information are the Ethnic Community Advisory Group minutes for the April 8, 1998, and May 13, 1998, meetings. (Attachments 7 and 8)

Attachments

1. Attendance Roster
2. Washington Update
3. Senate Appropriations Committee vote on AB 2194 (Washington) -- Clean Fuels
Reauthorization
4. Legislative Status Report
5. Matrix on Interactions Regarding Federal Policies
6. Bill Analyses
7. Ethnic Community Advisory Group Minutes (April 8, 1998)
8. Ethnic Community Advisory Group Minutes (May 13, 1998)

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