BOARD MEETING DATE: November 17, 2000 AGENDA NO. 22

The Legislative Committee met on November 3, 2000. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee members Michael Antonovich and Cynthia Verdugo-Peralta. Committee members Jane Carney and Supervisor Roy Wilson were unable to attend. (Attachment 1)

Peter Robertson, AQMD Washington Legislative Representative, provided the Committee with an update on activities in Washington. Mr. Robertson expressed disappointment in not achieving funding for the Clean Air Technology Transfer proposal in this year's VA HUD appropriations bill. While there was good support from a number of people, there was some objection from the Senate Appropriations Committee staff. Ideas are currently being discussed about ways to overcome objections next fiscal year.

A potential source of new funding for the AQMD this fiscal year may be through Appropriations legislation recently passed. Known as "The Care Legislation", it provides new funding for the protection of wildlife and landscape and may have provisions that lend itself to environmental funding, including clean air funding, for coastal states. This option is being looked at. Mr. Robertson reported that Congress has taken no further action on bills of importance to the AQMD, but many will probably resurface in the next Congress.

Lupe Valdez, Deputy Executive Officer of Public Affairs and Transportation Programs, shared with the Committee the table of contents for the 2000 AQMD Legislative End-of-Year Report. (Attachment 2) Staff is compiling the report which will include a summarization of the 2000 legislative year, a forecast for year 2001, detailed summaries of air quality legislation approved by the Governor and a brief summary of each bill tracked by the AQMD. Summaries of all federal legislation tracked will also be included. The report will be released in December.

Ms. Valdez reviewed draft legislative concept proposals submitted by staff for the 2001 legislative session. (Attachment 3)

State Concept 1	--	Funding to Assist in Compliance with AQMD Fleet Rules
State Concept 2	--	Sustain State Subventions for Local Air Districts; Seek Clarification on Use of Funds
State Concept 3	--	Hearing Board: Variances by County
State Concept 4	--	Diesel Fuel Tax
State Concept 5	--	Performance Audits
State Concept 6	--	Diesel Retrofit Requirements

Federal Concept 1	--	Funding for AQMD Research and Demonstration Programs
Federal Concept 2	--	Establish AQMD as a Leader in Upcoming Clean Air Act Hearings and Activities
Federal Concept 3	--	Explore New Clean Air Funding Possibilities
Federal Concept 4	--	Funding to Assist in Compliance with AQMD Fleet Rules

Ms. Valdez briefly described each legislative concept and the Committee considered each separately.

State Legislative Concept 1 would seek to support legislation, in partnership with local governments and public/private entities, to provide expanded or new funding opportunities to assist with costs of complying with AQMD fleet rules. State Legislative Concept 2 seeks to sustain current state subvention to air districts for general operating costs and clarification on the use of the funds. State Legislative Concept 3 will seek to repeal obsolete law which requires the Hearing Board to process variances in the county in which the variance is applicable. State Legislative Concept 4 seeks to support legislation to create a financial incentive for the production and consumption of low sulfur diesel fuel. And, State Legislative Concept 5 will allow the sunset of a law requiring a triennial performance audit of the AQMD. The Legislative Committee approved State Legislative Concepts 1-5 without discussion.

State Legislative Concept 6 will seek to require the ARB to adopt regulations to require that every diesel vehicle in the South Coast Air District has a least a particulate trap and uses 15 ppm diesel fuel, at the earliest feasible date. Allan Lind, AQMD Sacramento Legislative Representative, added that the ARB has developed an ambitious program to achieve cleaner diesel through its low sulfur diesel fuel program and vehicle regulations. In September, ARB adopted their diesel risk reduction plan, which includes 14 separate regulations. ARB intends on adopting a rule in 2001. Mr. Lind suggested amending Legislative Concept #6 to support accelerated implementation of ARB’s Diesel Risk Reduction Plan, so that every diesel engine in the South Coast District, for which it is feasible, has at least a particulate trap, and uses 15 ppm diesel fuel, at the earliest feasible date. The Legislative Committee approved State Legislative Concept 6 with suggested change by Mr. Lind.

Federal Legislative Concept 1 will allow the AQMD to seek funding for research and demonstration programs. The Legislative Committee approved Federal Legislative Concept 1 without discussion.

Federal Legislative Concept 2 will have AQMD prepare information and testimony for the renewal of the federal Clean Air Act and establish the AQMD as a leader in the upcoming Clean Air Act hearings and activities. Mr. Robertson added that this effort helps raise the profile for AQMD in Washington. When you raise the profile, you lend assistance to those efforts to secure funding, whether it is through the legislative process or continuing efforts to obtain grants from EPA and other agencies. This concept is good synergy with the other federal legislative concepts that include obtaining more money for the AQMD to do its work. There will be a significant amount of attention paid to the Clean Air Act next year and the AQMD should be front and center in that process. The Legislative Committee approved Federal Legislative Concept 2.

Federal Concept 3 will explore new clean air funding opportunities with other agencies for new, innovative technology programs, and Federal Concept 4 will explore, in partnership with local governments and private entities, new funding opportunities to assist with costs to comply with AQMD fleet rules. The Legislative Committee approved Federal Legislative Concepts 3 and 4 without discussion.

In line with Federal Legislative Concept 2, Chair LaPisto-Kirtley proposed to support federal policies to accelerate the reduction of mobile source diesel emissions nationwide, at the earliest feasible date. On a federal level, mandate that all trucks use low sulfur diesel fuel and particulate traps. Mr. Robertson stated that he agreed with Chair LaPisto-Kirtley and endorsed the concept. The Legislative Committee approved this proposal and directed staff to prepare the concept for Board consideration. The proposal is included here as Legislative Concept 5.

Mr. Lind briefed the Committee on various activities in Sacramento. Mr. Lind explained that he is coordinating briefings for Assembly and Senate staff members for November 14. AQMD staff will provide legislative staff with information on AQMD activities.

On the issue of power plant citing, AB 970, which was approved by the Governor this year, provides for a speed up of power plant citing. One of the features of the bill is to create a Governor's Green Team to look at long range problems with regard to power plant citing. The Green Team shall include representatives from local air districts. CAPCOA was asked to nominate individuals and nominated Executive Officers David Crow, San Joaquin APCD; Ellen Garvey, Bay Area AQMD; and Richard Sommerville, San Diego AQMD to serve on the Green Team. Also, during the month of November, ARB will begin its certification process for small electrical generators, or distributed generation facilities.

ARB is also embarking on its diesel reduction program. One of the first actions occurred at LAX on November 3. The program is the International Retrofit Advisory Committee to explore ways of accelerating the retrofit of diesel engines.

The California Fuel Cell Partnership recently had its grand opening in Sacramento. AQMD Chairman Burke and Board Members Cynthia Verdugo-Peralta, Leonard Paulitz and Roy Wilson attended. The event drew media coverage from every major and local network. Mr. Lind reminded everyone that the AQMD was the first public agency to risk research and demonstration money, in conjunction with Ballard, to explore fuel cells for its utility in the transportation sector.

Lastly, ARB is preparing to hold two hearings, one in Los Angeles and one in the Bay Area, in response to a resolution by Assemblyman Marco Firebaugh (ACR 132). ACR 132 directs the ARB to hold public hearings to discuss the impact of its diesel rules and reformulated gasoline transportation alternative fuels.

Ms. Valdez stated that there is a need to appoint a new member to the Ethnic Community Advisory Group (ECAG), but the item came to staff’s attention after the Legislative Committee meeting agenda was posted. Ms. Valdez requested that this item be added to the agenda for consideration at this time. The Committee unanimously determined that there was a need to take immediate action and that the need for action came to the District’s attention after the agenda was posted.

Ms. Valdez explained that ECAG was formed in September, 1990, to serve as an advisory body to the Governing Board with specialized expertise on the impact of air quality issues on the ethnic communities in the South Coast Air Basin. The ECAG reports to the Board through the Legislative Committee. The ECAG just recently completed a review of its membership and is now requesting that the Legislative Committee approve their nomination of Paul Avila as a new member of the ECAG. The Legislative Committee approved sending the nomination of Paul Avila, to serve as a member of the ECAG Latino Caucus, to the Governing Board for approval.

Since the agenda will be light in December, Ms. Valdez asked if it was the Committee’s desire to cancel the December meeting. The Committee agreed to cancel its December 8 meeting.

John Billheimer, Environmental Reality, stated that the coverage of transportation and mobile sources in the proposed Legislative Concepts is very clear and technically necessary, but added that two-thirds of the AQMD funding comes from stationary sources.

Mr. Billheimer suggested that if the business community were to examine the AQMD’s proposed legislative concepts and consider that they are paying a major share of the AQMD bill, they may want to see some token respect of good progress of stationary sources in AQMD’s agenda.

Ms. Valdez noted that the AQMD’s advocacy for the state legislative concept seeking to eliminate a redundant performance audit responds to requests from the business community. Their feeling is that the AQMD is spending money on unnecessary audits when the money could be better spent on permitting or other sources.

South Coast Air Quality Management District