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REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, October 23, 1998.
The next Legislative Committee meeting is scheduled for Friday, November 20, 1998, at 8:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION

Receive and file this report.

Richard Alarcón, Chairman
Legislative Committee

Attendance

The Legislative Committee met on October 23, 1998. Present were Committee Chairman Richard Alarcón, Vice Chair James Silva, and Committee members Michael Antonovich, Nell Soto and Roy Wilson (by video conference). (Attachment 1)

Washington Update

Raul Tapia, John O'Donnell and John Montgomery, Legislative Representatives in Washington, DC, briefed the Committee by teleconference on activities in Washington. Mr. Tapia reported that they are working to schedule meetings in November for Councilman Alarcón with Terry Garcia, Assistant Secretary of the National Oceanic and Atmospheric Administration (NOAA) and William Daley, Secretary for the Department of Commerce (DOC), as well as White House staff. Dr. Wallerstein added that the purpose of a November trip is two-fold: 1) to follow-up with DOC on the initial contacts made relative to possible funding for technology advancement and the relationships to jobs and clean air in the South Coast Air Basin, and 2) to visit with White House staff regarding the 1997 AQMP and AQMD's inability to either get an approval or disapproval of the Plan from U.S. EPA. A meeting between Councilman Alarcón and Vice President Al Gore, if possible, is preferred.

Mr. O'Donnell asked if an additional meeting with Bob Perciasepe, Assistant Administrator of Air and Radiation, would be appropriate and Dr. Wallerstein responded that if the Assistant Administrator is available, the contact would be appropriate. Councilman Alarcón added that a key change since the last meeting with Mr. Perciasepe is the court decision on EPA and, at a minimum, we should update him on the AQMD's posture on the decision. This decision by the court actually pushes our perspective that EPA needs to make a decision. Dr. Wallerstein added that any time EPA can hear directly from our Board members it is extremely important.

Councilman Alarcón stated that it is clear that the Administration wants to work with businesses to overcome their animosity toward air quality issues and they can do that if they can advance technology resources or research that might bridge the gap between air quality and jobs. Mr. Montgomery added that this may be an issue to integrate into the Clean Air Act reauthorization. Councilman Alarcón agreed and offered to work with staff on this. Mr. O'Donnell suggested having a draft proposal ready to share with White House representatives during meetings in November. Councilman Alarcón agreed and added that it would have to be in the context of national, the implications being that if we can develop technologies in the South Coast Air Basin they would advance the cause throughout the nation.

Mr. O'Donnell reported that contact with House and Senate staff has been made regarding the Clean Air Act reauthorization and there is interest in including funding for research, development, and demonstration programs based on the size of the South Coast Air Basin. Councilman Alarcón requested a conference call with Washington legislative representatives and key AQMD staff during the week of October 26 to discuss this issue further.

Councilman Alarcón stated that his staff will work with Mr. Tapia and Lupe Valdez, DEO/Public Affairs and Transportation Programs, to coordinate an agenda for the November Washington meetings. Councilman Alarcón added that an important issue right now with DOC is the closure of a Price Pfister plant in his Council district. The DOC may want to provide support and assistance in developing an economic development strategy to bridge the gap between job loss and air quality demands. A strategy that would go beyond the circle of accessible funding that we've been trying to achieve in the past.

Councilman Alarcón directed Mr. Tapia to work with staff to develop a proposal to explore, within the DOC, discretionary funds that may be available or existing funds that might pertain to economic development. In addition, search for federal legislation where an economic development program could be added.

Mr. Tapia reported that the omnibus budget bill passed this week and contains a provision that stops the EPA from accepting challenges from citizen groups using a provision of the 64 Civil Rights Act to stop construction or expansion of industrial facilities based on Environmental Justice issues. Currently, the EPA has approximately 15 challenges pending before it. This provision does not stop consideration of those 15, but stops EPA from considering any future challenges. Dr. Wallerstein asked Mr. Tapia for additional information on this issue.

Ms. Valdez and Dr. Wallerstein reported that a settlement was reached between U.S. EPA and diesel engine manufacturers on October 22. In the settlement, seven large engine manufacturers agreed to pay $83.4 million in fines, $109.5 million to fund research into clean fuel projects, and at least $850 million to produce new, cleaner engines over the next few years. Dr. Wallerstein added that he has directed AQMD legal counsel to look at the possibility of incorporating this issue into the litigation the Board has authorized regarding EPA not doing its fair share. Mr. Montgomery asked for information on AQMD's interpretation on diesel fuel and Dr. Wallerstein responded that Chung Liu, Assistant DEO/Technology Advancement, would forward information on this issue. Ms. Valdez stated that it could be beneficial to pursue where these fines might go across the country and, if possible, tap into them and asked Mr. Tapia to look into this issue.

Final Status of 1998 State Legislation

Allan Lind, Legislative Representative in Sacramento, gave a brief report on the final status of 1998 state legislation. Mr. Lind reported that the one-page final status list included in the meeting package summarizes the final action on approximately 50 bills the AQMD tracked. (Attachment 2) Additionally, a year-end report to be completed in November will provide more detail on all bills tracked during 1998. Significant of the bills vetoed was Clean Fuels Reauthorization (AB 2194, Washington) and the Diesel Package (AB 1368, Villaraigosa and SB 1857, Brulte). Mr. Lind stated that while the District did not have a position on many of the bills approved by the Governor, many are complimentary to District programs. Mr. Lind suggested the possibility of changing position of "None" to "Watch" next year since bills with no position are actually being "watched" for possible amendments that may prompt a District position.

Matrix on Interactions Regarding Federal Policies

An updated matrix was provided to the Committee as information only. (Attachment 3)

Discussion on Strategy for Reauthorization of Clean Fuels Program

With the legislative session due to convene on December 7, Mr. Lind stated that he is looking to the Committee for guidance on whether to seek reauthorization of the Clean Fuels Program in 1999. Bills can be introduced in early December and Mr. Lind added that if a bill is introduced early, there is a chance of getting it through the process by June. If an urgency clause is added to the bill, it would need a two-thirds vote to pass and would become effective immediately upon approval by the Governor. The Clean Fuels Program sunsets on August 1, 1999, so an urgency measure would provide no disruption in the Clean Fuels Program. However, it may be a struggle to get two-thirds vote. Without an urgency measure, an approved bill wouldn't take affect until January 1, 2000, so there would be a five-month disruption in the flow of revenues to the Clean Fuels Program.

Dr. Wallerstein suggested that if the Committee recommends pursuing reauthorization of the Clean Fuels Program in 1999, that Allan Lind and Associates have flexibility to move the bill at a pace they believe would be most successful. This could be to fast-track with early introduction or a slower pace to allow new members time to get familiar with the issues and give AQMD’s consultants and staff time to review new committee structures.

Councilman Alarcón asked if the urgency route would preclude switching to the normal process and Supervisor Antonovich responded that the bill could revert to the majority vote. If two-thirds vote cannot be reached then it can drop to majority vote. Councilman Alarcón stated that the bill this year received a lot of support and would have passed except for last minute politics. With the elections soon over, we should go in as quickly as possible. Mr. Lind agreed and added that things do get crazy around the budget crunch time at the end of June and end of session when stalemates occur. If the process is started in December and completed by June, circumstances beyond our control may be avoided.

The Legislative Committee voted to seek reauthorization of the Clean Fuels Program in 1999, and provided Allan Lind and Associates flexibility in determining the best approach. Supervisors Antonovich and Silva opposed the recommendation.

Mr. Lind shared that Senator Burton has appointed new chairs to a few of the Senate committees and they are intended to be permanent as long as Senator Burton is President pro Tempore. Specifically, Senator Betty Karnette has been named the new chair of the Senate Transportation Committee. Senator Karnette was very helpful to the AQMD on the AB 2194 Clean Fuels reauthorization.

1999 Legislative Concepts/Proposals

Ms. Valdez reviewed legislative concepts for the 1999 legislative session. (The text of 1999 legislative concepts is contained in Attachment 4.) Concept 1 is reauthorization of the Clean Fuels Program. Concepts 2-4 were solicited from staff internally, as well as the Hearing Board, and Concepts 5-7 were developed by AQMD Legislative Representatives in Washington, DC. The concepts for Committee consideration are:

Concept 1 -- Clean Fuels Program Reauthorization
Concept 2 -- Hearing Boards: Appeals
Concept 3 -- Hearing Boards: Closed Session
Concept 4 -- AQMDs and APCDs; Increased Subvention
Concept 5 -- Federal Funding for AQMD Research and Demonstration Programs
Concept 6 -- Establish AQMD as a Leader in Upcoming Federal Clean Air Act
Hearings and Activities
Concept 7 -- Explore New Federal Clean Air Funding

Ms. Valdez briefly described the concepts. Concept 1 is to seek reauthorization of the AQMD Clean Fuels Program (discussed under separate agenda topic). Concept 2 would amend the Health and Safety Code to allow a 30-day timeframe to appeal a permit denial to a Hearing Board. Currently, only 10 days are allowed and the Hearing Board believes this timeframe is insufficient. Ms. Valdez added that this proposal would be helpful for people going through the Hearing Board process.

Concept 3 would amend the current law to authorize Hearing Boards to hold closed sessions to discuss information that qualifies as trade secret. New changes to the Brown Act have created problems with the issue of trade secret information in a public setting. Staff would direct Allan Lind & Associates to work with CAPCOA on Concepts 2 and 3 since they affect Hearing Boards statewide. Concept 4 would seek additional subventions for AQMDs and APCDs for general operating costs. Dr. Wallerstein added that CAPCOA unsuccessfully pursued a similar effort in 1998.

Mr. Montgomery reviewed Concepts 5-7 and stated that the intent is to seek additional funding for the South Coast Air Basin. A lot of effort has been done on these issues already and the response from Congressional leaders has been positive.

Supervisor Antonovich asked if the Committee needed to consider action on alternative fuel transit buses under the legislative concepts. Dr. Wallerstein responded that the Board reaffirmed a policy relative to alternative fuel busses being preference at the October 9 Board meeting.

The Legislative Committee approved Legislative Concepts 1-7, with Supervisors Antonovich and Silva opposing Legislative Concept 1.

Other Business/Public Comment

No other business/public comment.

Ethnic Community Advisory Group

Attached for information are the Ethnic Community Advisory Group minutes for the
August 12, 1998, September 9, 1998, meetings. (Attachments 5 and 6)

Attachments

1. Attendance Roster
2. Final Status of 1998 State Legislation
3. Matrix on Interactions Regarding Federal Policies
4. 1999 Legislative Concepts/Proposals
5. Ethnic Community Advisory Group Minutes (August 12, 1998)
6. Ethnic Community Advisory Group Minutes (September 9, 1998)

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