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BOARD MEETING DATE: August 13, 1999 AGENDA NO. 17

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 1450 (Calderon) -- Composting Odors: Jurisdiction

SB 821 (Sher) --Revisions to California Clean Air Act

RECOMMENDED ACTION

Approve the legislative positions recommended below.

Beatrice LaPisto-Kirtley, Chair
Legislative Committee

Attendance

The Legislative Committee met on July 23, 1999. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee member Roy Wilson (by video conference). Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Norma Glover, AQMD Vice-Chair, was appointed as an ad hoc member of the Legislative Committee for the July 23, 1999, meeting only. (Attachment 1)

Washington Update

Lupe Valdez, Deputy Executive Officer/Public Affairs and Transportation Programs, briefed the Committee on activities in Washington, DC, and distributed HR 2427, legislation introduced by Congressman Christopher Cox, which seeks to amend the Clean Air Act to remove a provision limiting States to proportionately less assistance than their respective populations. (Attachment 2) HR 2427 has been referred to the House Committee on Commerce and the AQMD Washington Legislative Representatives will monitor this legislation. Chair LaPisto-Kirtley stated that this legislation is due to the efforts and contacts made by AQMD Vice-Chair Norma Glover.

Ms. Glover stated that Congressman Cox is opening up the Clean Air Act for economic purposes only, not to change the essence of the Clean Air Act. Ms. Glover added that it is important to seek support from national, state and local environmental groups for this effort.

Ms. Valdez also reported that AQMD's federal funding request is still pending. The Senate will consider markups to the Appropriations bill the week of July 26. Staff will continue to keep the Committee apprised of this ongoing effort.

Lastly, Ms. Valdez reported that the Metropolitan Transportation Authority (MTA) is seeking support from the AQMD on pending federal legislation. The request from MTA is two-fold: 1) to support their request for additional funding in HR 2084 for projects which all have air quality benefits and 2) oppose a provision in S. 1143, which would create a 12.5 percent per-state annual spending cap. This could mean a loss to Southern California of approximately $50 million a year in transit funds. Staff is requesting approval to send a letter to Congress in Support of HR 2084 and Opposition to the spending cap in S. 1143. The Committee concurred with staff's recommendation.

State Legislative Update/Status Report

Allan Lind, AQMD Sacramento Legislative Representative, provided an update on activities in Sacramento. (Attachment 3) Mr. Lind reported that the Legislature is currently in summer recess and will return on August 16 and will then adjourn on September 10. Mr. Lind added that the Senate has formed a Select Committee on Environmental Justice, chaired by Senator Richard Alarcón. The committee will hold an interim hearing in the Fall.

Mr. Lind briefed the Committee on state budget activities (Attachment 4) The Governor approved the state’s FY 1999-2000 Budget and it contains a number of features that are beneficial to the AQMD. However, the Governor also disapproved an increase in the subvention program, administered by the ARB, which distributes dollars to all air districts on a per capita basis. No adjustments for inflation have been made for this program for approximately 20 years. The current funding level is $7.5 million. An additional $7.5 million was requested in the FY 1999-2000 Budget. The Governor approved only the current funding level. Mr. Lind added that he has since learned that the Governor's intention with the first budget was to resist augmentations that built the base of ongoing programs. Mr. Lind recommended pursuing this issue again next year.

Mr. Lind stated that the Governor did approve a $200,000 appropriation, through the Department of Health Services (DHS), for the AQMD to implement the Children's Initiatives. Mr. Lind stated that this funding through DHS opens a new avenue for dialogue with the state administration and DHS. Assembly Member Marco Firebaugh assisted the AQMD in securing this appropriation. Mr. Lind added that the Governor also approved a one-time funding request from Senator Martha Escutia for an assessment of how well ARB regulations address the unique needs and circumstances of children. In addition, the ARB received an additional $2 million to study the effects of air pollution and the cause of asthma in children throughout the state. The study will be focused in Fresno County, but builds on ARB's current children’s analysis that is taking place in the South Coast Air Basin.

Funding was also retained in the state budget for the Carl Moyer Program. Mr. Lind stated that the Legislature appropriated $25 million for the program; the Governor reduced it to $23 million, with no explanation for the $2 million reduction. The program will continue to operate in the same manner as in the current year. The program could receive some refinements if AB 1571 (Villaraigosa/Brulte) is passed. The primary objective of the bill was to establish an ongoing funding source for the Carl Moyer Program, but that funding source has yet to be identified. The bill may become a two-year bill or get narrowed in scope to deal with administrative issues. AB 1571 is currently in Senate Transportation, but the deadline to hear the bill has passed. More should be known on AB 1571 after the Legislature reconvenes on August 16.

Ms. Glover asked if AB 1571 speaks to the distribution of the $23 million approved in the state budget and Mr. Lind responded that if the bill is enacted by January 1, then it would have a controlling influence on those funds. Ms. Glover also asked what the rational was for AB 1571. Mr. Lind responded that AB 1571 genuinely memorializes the program as the Carl Moyer Memorial Funding Program. It also puts in statute a number of formulas, mechanisms and qualifications for what are eligible expenditures. Currently, the program is administered at the discretion of the ARB. When introduced, the sponsors of the bill saw the main value as simply identifying the long-term funding source. The legislation's secondary benefit is to clarify what types of projects are eligible expenditures.

Mr. Lind briefed the Committee on the following bills, on which the Board has previously taken a position:

AB 1401 (Longville), would require the Board to approve or disapprove the
MSRC work program within 60 days of receipt or work program is deemed approved. Requires 3/4 vote of full Board to disapprove the work program. The bill went to the Governor on July 15.

SB 63 (Solis), would reduce the minimum occupancy requirement for vehicles using the HOV lane on the San Bernardino Freeway from three to two persons. SB 63 went to the Governor on July 16.

The Governor has 12 days to sign or veto AB 1401 and SB 63.

SB 1195 (Hayden) requires the AQMD to include PM2.5 in forecasts, reports, and notifications regarding pollutant levels. The AQMD suggested a number of amendments to the bill, which were accepted by Senator Hayden. The bill was amended on July 15.

AB 1679 (Local Government Committee) extends the 10-day time period to 30 days to file an appeal of a permit denial to an air district. The bill is on the consent calendar in Senate Appropriations.

Mr. Lind also reported on AB 60 (Knox), which the Governor recently signed into law. The bill makes overtime wages paid after an 8-hour day, as opposed to a 40-hour week. Chair LaPisto-Kirtley asked how the bill affects law enforcement, which has existing 4/10 schedules. Mr. Lind responded that AB 60 has provisions for alternative work schedules. Ms. Valdez added that the ridesharing community was concerned about this bill and the effect on companies with alternative work schedules. Staff added that after the bill becomes effective January 1, 2000, employers could still introduce a 4/10 schedule as long as the alternative schedule did not exceed 40 hours a week and was approved by two-thirds of the affected employees.

Draft Request for Proposals (RFPs) for Legislative Consulting Services in Sacramento, CA, and Washington, DC

Ms. Valdez explained that two years ago the District chose to seek outside legislative consulting services for Sacramento and Washington. At that time the process was condensed to ensure services commenced prior to the start of the respective legislative sessions. This year, to ensure adequate time for the process, staff is recommending release of RFPs in August, Legislative Committee review in November and award of contracts at the December Board meeting. Current contracts expire January, 2000.

Ms. Glover asked if it is necessary to issue RFPs if the District currently has contractors for these services. Dr. Barry Wallerstein, Executive Officer, asked Counsel if there is a legal requirement that the District issue RFPs if the Board is satisfied with existing contractors. Peter Greenwald, General Counsel, responded that there is no legal requirement, but the Board has adopted a policy requiring a sole-source justification if there is no RFP.

Ms. Glover asked how much staff time is involved in the RFP process. Ms. Valdez responded that the amount of staff time and resources would depend on the number of RFPs received.

This item was brought to the Committee for information only. This item was also reviewed by the Administrative Committee on July 23, 1999.

Recommended Positions on Bills

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

Bill/Title Recommended Position

AB 1450 (Calderon) -- Composting Odors: Jurisdiction SEEK CLARIFICATION

SB 821 (Sher) -- Revisions to the California Clean Air Act SUPPORT

AB 1450 (Calderon), would authorize air districts to abate nuisance odors emanating from composting facilities which compost, or are designed to compost, biosolids or sewage sludge. The bill also authorizes air districts to require permits for persons who build, or intend to build, any operation, which composts biosolids or sewage sludge. Ms. Valdez stated that issues relating to composting surface at AQMD town hall meetings. Individuals are concerned and unsure which agency to contact. Ms. Valdez added that there is opposition to the bill and the author recently pulled the bill from committee consideration. Mr. Lind stated AB 1450 was amended on July 1 to address composting and the sponsors are interested in having the AQMD's involvement and input. Mr. Lind added that Senator Byron Sher, who was the author of legislation that preceded this bill (AB 59), is the chair of the relevant policy committee that will consider this bill. Senator Sher has indicated an interest in holding an interim hearing in the fall to discuss this issue.

Greg Adams, Los Angeles County Sanitation District, stated that the Sanitation District opposes AB 1450, which seeks to implement a statewide solution to a local problem. The origin of the problem, he said, is that a developer, Kernross Estates in the Antelope Valley, is four miles downwind of a proposed biosolid composting operation. The Los Angeles County Planning Commission finally approved the project after much negotiation and Supervisor Michael Antonovich was in opposition to the project. AB 1450 exacerbates the ability for wastewater agencies around the state to dispose of their biosolids in an environmentally acceptable manner and is contrary to previous bills implemented (AB 989 and AB 59, both by Senator Sher). Mr. Adams stated that AB 59 transferred, in 1995, jurisdiction with respect to odor nuisances to the California Integrated Waste Management Board's (CIWMB) local enforcement agencies, but the air districts still have permitting authority for everything else that could cause an emission-related public nuisance, including dust or particulate matter. Mr. Adams added that a statewide provision, which in effect is going to stop composting and impose an additional burden on landfills, is not needed and creates overlapping jurisdictions. Mr. Adams asked that the Committee consider delaying action on AB 1450 for 30 days in order to allow the AQMD, the Los Angeles County Sanitation District and Supervisor Antonovich's office to work together to come up with an acceptable compromise on this bill.

Dr. Wallerstein stated that since AB 1450 may become a two-year bill, delaying consideration for 30 days could be done. But, the end of the legislative session is near, and if the bill does move forward, it is important that AQMD’s concerns identified thus far be considered. Chair LaPisto-Kirtley stated that the AQMD would begin to work with the Los Angeles County Sanitation District and Supervisor Antonovich's office on additional clarifications to the bill. AQMD staff will coordinate this effort with Mr. Adams. The Legislative Committee concurred with staff’s recommendation to Seek Clarification on AB 1450 and requested staff to work with the Los Angeles County Sanitation District and Supervisor Antonovich’s office on this bill.

SB 821 (Sher), makes various changes, including several technical "cleanup" amendments, to some provisions of the California Clean Air Act. Ms. Valdez stated that the bill proposes to add to the inventory of air pollution sources, prepared by the ARB, mobile sources and area sources of emissions and makes a number of changes to the requirements for gasoline vapor systems. Chair LaPisto-Kirtley noted that SB 821 is sponsored by CAPCOA and supported by the Sierra Club and CCEEB. The Legislative Committee concurred with staff’s recommendation to Support SB 821.

Other Business

No other business

Public Comment

Public comment was received on AB 1450 (Calderon) and is included under the discussion on AB 1450.

Ethnic Community Advisory Group

Attached for information is the Ethnic Community Advisory Group minutes for the May 12, 1999, and June 9, 1999, meetings. (Attachment 6)

Attachments

1. Attendance Roster
2. HR 2427 (Cox) and Introduction Remarks
3. Legislative Status Report
4. Memorandum on State Budget Actions Affecting the AQMD
5. Recommended Positions on Bills
6. Ethnic Community Advisory Group Minutes (May 12, 1999, and June 9, 1999, meetings)

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