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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 2784 (Margett)	-- Mandatory Fleet Engine Conversion
SB 1408 (Alarcón)	-- Environmental Justice Grants
SB 1726 (Burton)	-- Zero Emission Vehicles
SB 1865 (Perata)	-- Air Pollution Penalties
SB 1991 (Solis)	-- Clean Alternative Fueled School Bus Program
SB 2068 (Solis)	-- Public Transit, School Bus and Public Works Trucks Tax Exemption

RECOMMENDED ACTION

Approve the legislative positions recommended below.

Beatrice J.S. LaPisto-Kirtley, Chair
Legislative Committee

Attendance

The Legislative Committee met on April 14, 2000. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee member Michael Antonovich. Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Norma Glover, AQMD Vice-Chair, and Leonard Paulitz, Board Member, were appointed as ad hoc members of the Legislative Committee for the April 14, 2000, meeting only. Committee member Roy Wilson was unable to participate.
(Attachment 1)

Washington Update

Peter Robertson and Ed Newberry, AQMD Washington Legislative Representatives, provided the Committee with an update on activities in Washington. Mr. Robertson briefed the Committee on the status of AQMD’s Clean Air Technology Transfer Program proposal.

Relative to the proposal, Mr. Robertson stated that individual letters from members of Congress have been sent to the Appropriations Committee chair requesting funding for the proposal. The letters have been sent from Congressional members David Dreier, Christopher Cox, Ron Packard, Xavier Becerra and Senator Dianne Feinstein. There is also a California delegation letter circulating for signatures. Six signatures have been received; 15-20 are expected. Mr. Robertson added that Congress just passed a budget resolution, which is a blueprint for the spending plan FY 2001. It highlights the challenge presented to us because funding in the environmental arena is roughly being held at last year’s level and there won’t be much of an increase in funding for EPA.

Lupe Valdez, Deputy Executive Officer/Public Affairs and Transportation Programs, provided the Committee with a copy of the AQMD’s Federal Clean Air Technology Transfer Program proposal.

Sacramento Legislative Update

Allan Lind, AQMD Sacramento Legislative Representative, briefed the Committee on recent activities in Sacramento. (Attachment 2) Mr. Lind reported that the Senate budget subcommittee approved the Governor's proposal for $50 million to replace school buses and the augmentation request made by CAPCOA to increase subventions to local air districts by $7.6 million. The subcommittee also added $7 million to ARB’s budget for a competitive grant program that would be available to local air districts for the acquisition of equipment and other activities, and would be one-time money. Mr. Lind added that the Assembly budget subcommittee also approved the augmentation for the subvention funding and approved the $50 million for the school bus replacement program, but did not approve the $7 million for the one-time grant program. The $7 million funding for the one-time grant program was placed on a checklist and will be subject to consideration at the end of the Assembly subcommittee budget hearing process. With respect to the school bus funding, both committees have determined that they want further guidance on how to provide for the allocation of the school bus funds.

Mr. Lind stated that the Governor has introduced a Transportation Initiative, which is an expenditure proposal combining both state general fund dollars, as well as a proposed bond measure for the November ballot. The Initiative contains two specific appropriations for alternative fuel buses: $150 million for MTA and $50 million for OCTA. The Initiative will now make its way through the legislative process.

Recommended Positions on Bills

Staff provided analyses and recommendations on six bills and provided a brief description of each bill. (Attachment 3)

• AB 2784 (Margett), prohibits the ARB and air districts from adopting a motor vehicle fuel specification or from requiring a mandatory fleet engine conversion unless the regulation receives a multimedia evaluation reviewed by the California Environmental Policy Council, the Secretary of the Trade and Commerce Agency, the State Energy Resources Conservation and Development Commission, and the Secretary of the Business, Transportation and Housing Agency. Ms. Valdez stated that staff is recommending an Oppose unless Amended position on this bill with a suggested amendment to require the CEQA analysis, which is done for all rules, to be submitted to the specific agencies rather than an additional multimedia analysis, and consult with these agencies during the rulemaking process. Ms. Valdez explained that the stated intent of the legislation is to avoid another MTBE situation where MTBE had known air quality benefits, but unknown impacts on water. Dr. Barry Wallerstein, Executive Officer, indicated that AB 2784, as proposed, is very restrictive and does not seem to allow for any impact to occur. It may be more beneficial to amend current CEQA guidelines and build on that process, rather than adding another layer of review. The Legislative Committee concurred with staff's recommendation to Oppose AB 2784 unless amended to have the CEQA analysis fulfill the multimedia evaluation requirement and to ensure that ARB and air districts consult with the key environmental stakeholders identified in the proposed bill during the CEQA public review and comment period.
  
  
• SB 1408 (Alarcón), directs the Office of Planning and Research to award grants of up to $25,000 to community-based nonprofit organizations in low-income or minority populations so they may obtain technical assistance to participate in a decision to issue a permit by any entity within CalEPA. Ms. Valdez stated that staff recommends Support in Concept on this bill, and believes that more detail is needed on how the grants will be awarded and the maximum amount of funding available for the program. Staff also wants to suggest to the author to explore utilizing the expertise California universities with environmental programs offer. Dr. Wallerstein added that staff wants to work with the author to suggest ideas to strengthen the bill and suggested reconvening the AQMD Environmental Justice Task Force to come up with ideas for Senator Alarcón on how to tailor the bill to receive support from both business and community groups. Chair LaPisto-Kirtley suggested first approaching Senator Alarcón regarding coordination with universities before reconvening the task force. The Legislative Committee concurred with staff's recommendation to Support in Concept SB 1408, and directed staff to work with the author on amendments to the bill to provide more detail and suggest that the program utilize the expertise of universities with accredited environmental programs. Staff will also offer to reconvene the AQMD Environmental Justice Task Force.
  
  
• SB 1726 (Burton), provides between January 1, 2001 and January 1, 2006, a tax credit to encourage consumers and businesses to lease or buy zero-emission vehicles instead of more-polluting cars. Ms. Valdez added that this bill is limited to light-duty vehicles and although there is no direct impact on the AQMD, the bill offers an incentive to help stimulate sales of zero-emission vehicles in the South Coast District. The Legislative Committee concurred with staff's recommendation to Support SB 1726.
  
  
• SB 1865 (Perata), increases the maximum criminal and civil penalties for air pollution violations and creates separate penalties for public nuisance violations based on harm to the public and seeks to conform air pollution laws to other state environmental laws. Dr. Wallerstein said that there are some things in the bill that are important to have, but at this time would recommend a Watch position, see how the bill progresses, and then consider offering amendments. Peter Mieras, Chief Prosecutor, highlighted some important provisions in the bill. First, the bill eliminates the defense of no negligence to the strict liability level and would allow smaller air districts to recover higher penalties that are commensurate with those from the AQMD. The air pollution penalties are tiered and the AQMD has been able to recover adequate penalties for serious violations under this penalty scheme (air district penalties are limited to $1,000 per day if the source can show that they were not negligent). Air districts with limited staff cannot analyze those claims of no negligence on a case-by-case basis and opt for lower penalties. That makes other air district penalties lower on average than our district. The bill's proposed changes bring penalties more in line with those issued by the AQMD.
  
  Secondly, Mr. Mieras explained that financial recovery from public nuisance violations are limited to actual injuries, which are very rare for air pollution violations. Barbara Baird, District Counsel, added that "actual injury" is defined in current law to be "any physical injury which, in the opinion of a licensed physician and surgeon, requires medical treatment involving more than a physical examination".
  
  Curt Coleman, California Manufacturers and Technology Association, expressed concern that as businesses use new technologies sometimes equipment does not operate properly. While AQMD staff has been sympathetic to that, SB 1865 proposes to remove the prohibition against simultaneous criminal and civil lawsuits and raise the penalty for strict liability violations. He felt that charging a company that is unsuccessfully attempting to operate their equipment was unfair.
  
  John Billheimer, Small Business Coalition, expressed his concern that most of the discussion regarding this legislation was with respect to major violations, and small sources have been overlooked. He suggested that penalties be scaled to the magnitude of emissions.
  
  The Legislative Committee concurred with staff's recommendation to take a Watch position on SB 1865.
  
  
• SB 1991 (Solis), establishes the Clean Alternative Fueled School Bus Program and appropriates $50 million for the program. ARB will administer the program and appropriate funds to air districts. Air districts shall award grants to school districts to purchase clean alternative fuel buses and who provide matching funds of $1 for every $4 provided by the program. Ms. Valdez stated that the bill covers pre-1987 buses. Staff is recommending Support for SB 1991 and suggests amendments to allow some funding for retrofit, ensure buses donated under the rural switch program be equipped with particulate traps before reuse in California, and allow matching funds to come from public and private sources in the applicable air district.
  
  Tim Carmichael, Coalition for Clean Air and sponsor of SB 1991, stated concern regarding particulate traps. Several engine manufacturers have serious concerns about whether particulate traps will work on pre-1991 buses. Mr. Carmichael suggested a demonstration that particulate traps operate correctly on pre-1991 buses and because there are a limited amount of funds, that only 25 percent of the funding, as opposed to 50 percent the AQMD is recommending, go to retrofitting.
  
  Dr. Wallerstein proposed an additional amendment to the bill to include a provision similar to the Board's proposal for an Adopt-a-Bus Program. Mr. Lind will investigate current law regarding signage on school buses and possible California Highway Patrol and local government restrictions regarding the feasibility of this proposal. The Legislative Committee concurred with staff's recommendation to Support SB 1991 with suggested amendments for consideration by the author and approved an additional amendment to explore the feasibility of including a provision in the bill to allow for an Adopt-a-Bus program. Suggested amendments include:
  
  
  1) flexibility to use up to 50 percent of funds for retrofitting existing school buses to
  allow school districts to have an overall cleaner fleet.
  
  2) require school buses donated as part of the rural switch-out program to be retrofitted with particulate traps before reuse in California.
  
  3) allow matching funds to come from public or private sources within the applicable air districts.
  
  4) allow school bus fleets subject to local air district fleet rules to receive priority funding.
  
  5) require funding for infrastructure to be allocated to air districts rather than school districts to improve coordination between bus purchases and the need for infrastructure.
  
  
• SB 2068 (Solis), provides for a tax exemption through January 1, 2010, for the sale or lease of any natural gas, electric, or fuel cell powered bus or truck used exclusively in public transit, school bus, or public works service. Chair LaPisto- Kirtley agreed with staff's recommendation but also asked that staff look into the implications of this bill on local governments. The Legislative Committee concurred with staff's recommendation to Support SB 2068.

Other Business

No other business.

Public Comment

See discussion above for public comment.

Ethnic Community Advisory Group
Attached for information is the Ethnic Community Advisory Group minutes for the February 9, 2000, and March 8, 2000, meetings. (Attachments 4 and 5)

Attachment

1. Attendance Roster
2. Legislative Status Report
3. Recommended Positions on Bills
4. Ethnic Community Advisory Group Minutes (February 9, 2000)
5. Ethnic Community Advisory Group Minutes (March 8, 2000)

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