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REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee considered agenda items including recommended positions on the following bills for which the Board will consider adopting positions:
AB 2140 (McClintock) -- Preferential Use Lanes
AB 2237 (Escutia) -- Environmental Protection
SB 1782 (Thompson) -- Low-Emission Vehicles
SB 1941 (Sher) -- Greenhouse Gas Emissions
SB 2119 (Hurtt) -- Reports to the Legislature: Internet Access and
The California Air Quality Improvement Program

RECOMMENDED ACTION:

Approve the legislative positions recommended below.

Richard Alarcón, Chairman
Legislative Committee

Attendance

The Legislative Committee met on May 22, 1998, at 8:30 a.m. Richard Alarcón, Chairman of the Legislative Committee, Jim Silva, Vice-Chair, and Committee members Michael Antonovich, Nell Soto, and Roy Wilson (by video conference) were present. Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Wayne Nastri was appointed as an ad hoc member of the Legislative Committee for the May 22, 1998, meeting only. Mr. Nastri later was excused as an ad hoc member of the Committee and Norma Glover was appointed as an ad hoc member for the May 22, 1998, meeting only. (Attachment 1)

Strategic Work Plan for Legislative Consulting Services in Sacramento

This item was deferred to the June 19, 1998, Legislative Committee meeting.

Washington Update

Raul Tapia and John O'Donnell, Legislative Representatives in Washington, DC, briefed the Committee on recent efforts in Washington. Mr. Tapia stated that Councilwoman Glover traveled to Washington and met with House Appropriations Committee Chair Jerry Lewis, Congressman Esteban Torres, Senator Barbara Boxer and White House representatives Monica Dixon and Linda Lynch.

Mr. Tapia reported that Congressman Lewis was impressed with the staff work devoted to preparing a list of projects that could be funded with the $5 million appropriation the District is seeking from Congress. Councilwoman Glover added that Congressman Lewis is very familiar with air quality issues and the need to find new sources or technological answers and does not want to be more restrictive on stationary sources. Mr. Tapia stated that Congressman Lewis welcomes the opportunity to establish stronger communication between his office and the AQMD leadership.

A meeting was also held with Congressman Torres regarding efforts to obtain $3 million for fuel cell research from the Department of Energy. Congressman Torres has been supportive of this effort. Councilwoman Glover reported that she met with Senator Barbara Boxer and stated that the Senator is also very familiar with AQMD issues and has indicated that she will support both of the AQMD appropriation measures when considered in the Senate.

Mr. Tapia also reported that the meeting with White House representatives Monica Dixon and Linda Lynch regarding a decision from EPA on the District's Air Quality Management Plan went well. The concept that the AQMD was very open to working with EPA was emphasized. The White House will follow up with Region IX. Councilman Alarcón stated that he believes the greatest success the AQMD will have is by continuing discussions with Region IX and that the current discussions with EPA and the Vice President's office are investments into the future. Councilman Alarcón asked what the timing is on these issues and Mr. Tapia responded that he will follow up with the Vice President's office within a week.

Mr. O'Donnell briefed the Committee on the ISTEA legislation before Congress. The House version allows states to divert monies from the Congestion Management Air Quality (CMAQ) account into other programs and the Senate version does not. Many local governments favor the Senate version. The issue is still being discussed. Mr. O'Donnell added that an amendment relating to the new particulate matter standard was adopted by the conferees. Pollutants that cause regional haze are also governed by the PM2.5 rule and the concern is that local jurisdictions would have to implement a regional haze rule that would force earlier compliance with the particulate regulations. The amendment allows states to submit their implementation plans on regional haze at the same time they submit an implementation plan for particulate matter.

Update on AB 2194 (Washington) – Clean Fuels Reauthorization

The Assembly floor vote on AB 2194 and a list of supporters for the bill were distributed to Committee members. (Attachment 2) Allan Lind reported that AB 2194 passed the Assembly on May 21 with a bi-partisan vote of 51-23. The results reflect good coordination from Board Members, allied interests in the Capitol, and other lobbying interests. Some legislators from outside the south coast district spoke in favor of the bill. Dr. Barry Wallerstein, Acting Executive Officer, added that the assistance of the Board Members in this effort made an important difference.

Board Member Nastri commented that the results on AB 2194 speak for themselves. There was great bi-partisan support. Mr. Nastri commended Assembly Member Washington and the Sacramento legislative team. Mr. Nastri added that there is still a tremendous battle ahead and even greater support amongst Board Members is needed.

Legislative Status Report

An updated Legislative status report was included in the Committee package.
(Attachment 3) Mr. Lind reported that the Clean Diesel package (AB 1368-Villaraigosa/ SB 1857-Brulte) is moving well in the Legislature. The Governor appears to be supporting this package and has proposed money in the state budget for this purpose. The package envisions spending $50 million over three years.

Mr. Lind added that several bills the AQMD is supporting were on the Assembly Appropriations suspense file and have now moved forward. Senate Bill 432 was amended in Assembly Appropriations pursuant to the Board's request for the relief of the $1.5 million for voluntary ridesharing. SB 432 passed Assembly Appropriations and is now on the Assembly floor.

Mr. Nastri asked if there was anything more the AQMD could do to lend support to Senator Lewis on SB 432. Mr. Lind responded that if the bill passes the Assembly floor, it will then go back to the Senate floor for concurrence, so there is a need to communicate to Senate leaders that SB 432 is consistent with Board direction. Lupe Valdez, DEO/Public Affairs and Local Government Assistance, stated that staff has been advising Senate staff involved with this bill on what the next steps would be. Mr. Lind added that it is Senator Lewis' goal to have SB 432 enacted by June 1, 1998.

Governor's "May Revision"

Mr. Lind reported that the "May Revision" was presented to the Legislature as a set of amendments to the budget bill which was introduced January 10, 1998. This reflects that the Administration has now revised the revenue estimates to the state General Fund. The Administration has determined that there will be an increase in revenues in the current year that will go unexpended and an additional increase in general fund revenues is projected. In total, the Governor is forecasting approximately $4 billion in unanticipated revenues. This combination of revenues makes it possible for the Governor and the Legislature to entertain proposals to expend those dollars.

Mr. Lind explained that one of the key proposals embraced by the Administration is a 75% reduction in vehicle license fees, which the Governor is proposing to phaseout over three years. There is also another account, the Motor Vehicle Account, which provides revenues from vehicle registrations and that account has paid for a large portion of the activities of the California Air Resources Board and to a lesser extent certain activities at local districts. The Motor Vehicle Account continues to experience some financial downturns so the Governor is proposing that a portion of the unanticipated General Fund revenues be used to substitute for the Motor Vehicle Account dollars that the ARB would otherwise use. In addition, the Governor would substitute General Fund dollars for the portion of Motor Vehicle Account dollars that flow to local air districts. A line item in the budget provides $7.5 million to be distributed to all air pollution control districts and air quality management districts and the Governor is providing for a dollar to dollar substitution. The South Coast AQMD receives about $2.9 million each year from that account. Mr. Lind added that there was a proposal in the Legislature to increase the subventions to local air districts, but that proposal has been held back. (Attachment 4)

Update on Proposed Legislative Conference

Marguerite Archie-Hudson, AQMD Public Outreach Consultant, reported that the AQMD Legislative Conference in Sacramento is scheduled for June 25. Speaker Villaraigosa and Senator Polanco have both expressed an interest in co-sponsoring the conference. Senator Johnson and Assembly Member Leonard were also asked to participate. Assembly Member Leonard responded that this is not an agenda item for him this year and that he would not be interested; Senator Johnson has not yet responded.

Ms. Archie-Hudson added that the conference will take place in a Capitol hearing room, which increases the possibility that legislators will be able to attend. In addition, legislative leaders have agreed to co-sponsor a reception.

Supervisor Silva asked whether Senator Johnson gave a date when he might make a decision. Ms. Archie-Hudson responded that Senator Johnson did not indicate a response date. However, his co-sponsorship would give bi-partisan support to the conference.

Recommended Positions on Bills:

Staff provided analyses and recommendations on six bills and provided a brief description of each bill. (Attachment 5)

	Recommended
Bill/Title	Position
AB 2140 (McClintock) -- Preferential Use Lanes	SUPPORT with AMENDMENTS
AB 2237 (Escutia) -- Environmental Protection	SUPPORT
SB 1782 (Thompson) -- Low-Emission Vehicles	SUPPORT
SB 1941 (Sher) -- Greenhouse Gas Emissions	SUPPORT
SB 2119 (Hurtt) -- Reports to the Legislature: Internet Access	SUPPORT
The California Air Quality Improvement Program	SUPPORT

• AB 2140 (McClintock), requires the California Department of Transportation to contract with the University of California to conduct a traffic model study evaluating the comparative benefits of establishing exclusive or preferential use traffic lanes (i.e., HOV and HOT lanes). Ms. Valdez stated that staff is suggesting an amendment to the bill to include particulate matter in the list of pollutants measured by the proposed study. Councilman Alarcón stated that this study would be very positive. The Legislative Committee concurred with staff’s Support with Amendment recommendation.

• AB 2237 (Escutia), requires state environmental agencies to make specified information relating to environmental loans and grants available to the public and requires, to the extent possible, state environmental agencies to ensure that communities that experience disproportionately high and adverse human health or environmental effects receive access to environmental funding commensurate with those effects. The Legislative Committee concurred with staff’s recommendation to Support, with Supervisor Silva voting against the recommendation.

• SB 1782 (Thompson), exempts from the vehicle license fee the incremental cost associated with making a new vehicle an ultra-low or zero-emission vehicle. This exemption applies to vehicles sold before 2003. Ms. Valdez stated that the League of California Cities opposes this bill because it would impact some of the fees going to local cities. Dr. Wallerstein added that SB 1782 relieves new car purchasers from the increment of costs related to having the electric vehicle, but purchasers still have to pay the base fee of what a regular vehicle costs. Councilman Alarcón stated he sees SB 1782 as good legislation that incentivizes alternative fuel vehicles and would directly impact emissions. The Legislative Committee concurred with staff’s Support recommendation, with Councilwoman Glover voting against the recommendation and Councilwoman Soto abstaining.

• SB 1941 (Sher), requires the Energy Resources Conservation and Development Commission, in consultation with the Air Resources Board, to establish and inventory greenhouse gas emission sources and further requires advice on feasible methods to reduce such gases. The Legislative Committee concurred with staff’s recommendation to Support, with Supervisor Silva voting against the recommendation.

• SB 2119 (Hurtt), requires every state and local agency that is mandated to submit a report to the Legislature to file the report on the Internet and notify the Legislature by email of the report's availability. The Legislative Committee concurred with staff’s recommendation to Support.

• The California Air Quality Improvement Program, provides tax credits to speed attainment of state and federal air quality standards by providing incentives for voluntary pollution reductions. Jerry Meral, Executive Director for the Planning and Conservation League (PCL), briefed the Committee on this Initiative. The Initiative comes from the Truck Working Group and addresses the problem of emissions from sources that are difficult to regulate or control. The primary focus is older diesel trucks that stay on the road 20 years or more. These trucks meet the emission standards they were required to meet when first put on the road but which are far weaker than the standards a new truck has to meet today. The Initiative also addresses other sources of emissions such as agricultural burning.

  Mr. Meral added that the Initiative takes the approach that these sources would be very hard to regulate, either politically or from an expense point of view. By offering tax incentives to those who are creating the emissions, we could convince them that it is in their own interest and the best interest of the state to reduce their emissions by either adopting retrofit technology, acquiring new clean vehicles or reducing agricultural burning and other kinds of emissions. The PCL worked with industry, health and environmental groups to draft an Initiative all could support. Many amendments were drafted on this issue and all worked to respond to the fiscal responsibility issues that were raised by the business community. The main focus was NOx reduction and particulates.
  
  In closing, Mr. Meral named supporters of the Initiative (included in Attachment 5). The Initiative also has support from Lieutenant Governor Gray Davis and Senator Ross Johnson and will qualify for the November ballot. Support for this Initiative will help solve air quality problems statewide in a way that is non-confrontational with business and that gets the support of the environmental health community, as well as the voters. There is no known opposition to the Initiative. Supervisor Silva asked how many trucks are on the highways. Mr. Meral responded that ARB estimates approximately 300,000 active old diesel trucks are on the highway today. The Legislative Committee concurred with staff’s recommendation to Support.

Other Business/Public Comment

Councilman Alarcón commented that the success on AB 2194 demonstrated what can happen when the talents and perspectives of the AQMD are fully utilized. Bi-partisan support was the goal from the beginning. This success reaffirms the need for teamwork to strategically gain support. There is also a sense of a balanced approach such as the Clean Diesel Package. Many want to move forward but recognize that an investment must be made in order to provide businesses the opportunity to make the transition. Councilman Alarcón commended the Sacramento legislative team and Board Members for their efforts on
AB 2194. Councilwoman Glover added that the support of all Board Members is essential when AB 2194 goes to the Senate.

Curt Coleman, CMA So-Cal Air Quality Alliance, commented that CMA's lobbyist, Jot Condie, has been working with legislators on AB 2194 and encourages the importance of having some of the Republican Board Members make contact with Republicans in the Senate to get a start on forging a bi-partisan coalition on AB 2194. CMA is also concerned that there may be confusion between legislation to abolish vehicle license fees and AB 2194. Republicans have made eliminating or reducing vehicle license fees a priority this year and CMA wants to ensure that AB 2194 is not caught up with that effort. If AB 2194 is a bi-partisan effort, that may be avoided.

Supervisor Antonovich commented that the vehicle license fee repeal does not include CHP, administration of DMV, or AQMD. Mr. Coleman responded that there can be some confusion.

Mr. Nastri commented that it is important to recognize that we have bi-partisan support for AB 2194 and it needs to continue. Allan Lind has done a great job of differentiating between the vehicle license fees and AB 2194. The message and support that we have developed needs to be continued and the full support of the entire Governing Board is needed because the battle is just beginning. Mr. Nastri commended industry for their support of AB 2194 and urged their continued support.

Councilwoman Soto commended staff for their efforts on AB 2194.

Attachments
1. Attendance Roster
2. Update on AB 2194 (Washington) -- Clean Fuels Reauthorization
3. Legislative Status Report
4. Governor's "May Revision"
5. Recommended Positions on Bills

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