South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: August 17, 2001 AGENDA NO. 23
Legislative Committee
SYNOPSIS:
The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving positions:
AB 1390 (Firebaugh) – Air Pollution Programs
ABX2 60 (Hollingsworth) – Standby and Portable Backup Generators
SBX2 24 (Knight) – Emission Reduction Credits; Energy-Producing Facilities
HR 318 (McGovern) – Commuter Benefits Equity Act of 2001
HR 906 (McGovern) – Mass Transit Tax Credit Act of 2001
S 217 (Schumer) – Commuter Benefits Equity Act of 2001
RECOMMENDED ACTION:
Approve the legislative positions recommended below.
Beatrice J.S. LaPisto-Kirtley, Chair
Legislative Committee
Attendance
The Legislative Committee met on August 10, 2001. Present were Committee Chair Beatrice LaPisto-Kirtley, Vice Chair Jane Carney, and Committee members Michael Antonovich and Cynthia Verdugo-Peralta. 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 August 10, 2001, meeting only. Supervisor Wilson was unable to attend.
[Attachment 1]
Washington Update [Attachment 2]
Peter Robertson, AQMD Washington Legislative Representative, reported that Congress is currently on summer recess. This provides an opportunity to make additional contacts on the four federal funding proposals, especially with the congressional member sponsors, before Congress reconvenes on September 4. Board Members are also being asked to contact members of the California delegation to encourage them to contact the proposal sponsors to offer their individual support for their proposals.
Activity is building on the multi-pollutant bill with regard to New Source Review. President Bush’s Energy Plan directed the U.S. EPA and the Department of Justice to do a 90-day review of the multi-pollutant bill. Recommendations have been compiled on this New Source Review analysis and an announcement will be made August 17. There is likely to be a lot of activity on this issue in the coming months and more information will be provided to the Committee at their next meeting.
Before Congress adjourned for recess, the Senate was debating the Transportation Appropriations bill that contains an amendment that would restrict Mexican trucks from traveling in the United States under the North American Free Trade Agreement (NAFTA). President Bush has stated that he would veto the bill if the bill contains this amendment. The safety of these trucks is the central issue of the debate, but pollution concerns are increasing. Supervisor Antonovich asked what the restrictions are on Canadian trucks and stated that if there are restrictions on one country there should be restrictions on the other country as well. The Committee agreed and Chair LaPisto-Kirtley added that there should be regulations that protect not only the safety but the health of our population as well. Ms. Verdugo-Peralta stated she would be meeting with the Mexican consulate and asked for additional information on this issue. Mr. Robertson will prepare a position paper on this issue for Ms. Verdugo-Peralta and other interested individuals.
Lastly, Mr. Robertson reported that the U.S. EPA is assembling a panel to reexamine the implementation schedule of the sulfur levels in diesel fuel. This has the possibility of affecting the diesel fuel undertakings that the AQMD has had under consideration recently. The panel is expected to include representatives from the automobile and oil industries, state environmental agencies and non-governmental organizations. Dr. Wallerstein suggested it might be appropriate to have the AQMD send a letter to the new U.S. EPA Assistant Administrator for Air and Radiation, Jeff Holmstead, asking to participate on this panel. Mr. Holmstead previously worked in the first Bush Administration and worked closely on the passage of the Clean Air Act Amendments of 1990. Ms. Carney suggested that a letter of congratulations be sent to Mr. Holmstead, inviting him to visit the AQMD.
Sacramento Update [Attachments 3 and 4]
Allan Lind, AQMD Sacramento Legislative Representative, reported that no blackouts have occurred in California since May. This is due in part to conservation efforts, new power production, and new power purchasing contracts. The Legislature will continue to discuss other outstanding issues related to the energy crisis, such as the Memorandum of Understanding with Southern California Edison to help restore their creditworthiness, when the Legislature reconvenes on August 20.
The state budget was passed and the state received $48 million for state air quality programs ($16 million each for the Carl Moyer; lower-emission school bus program and diesel mitigation programs). Mr. Lind also reported that the Legislature will continue to consider regular session legislation when they reconvene on August 20. Additional information on the status of AQMD-interest bills will be reported on at the next Legislative Committee meeting.
Recommended Positions on Legislation
Staff provided analyses and recommendations on six bills and provided a brief description of each bill. [Attachment 5]
|
Bill/Title |
Recommended Position |
|
AB 1390 (Firebaugh) – Air Pollution Programs |
SUPPORT |
|
ABX2 60 (Hollingsworth) – Standby and Portable Backup Generators |
OPPOSE |
|
SBX2 24 (Knight) – Emission Reduction Credits; Energy-Producing Facilities |
OPPOSE |
|
HR 318 (McGovern) – Commuter Benefits Equity Act of 2001 |
SUPPORT |
|
HR 906 (McGovern) – Mass Transit Tax Credit Act of 2001 |
SUPPORT |
|
S 217 (Schumer) – Commuter Benefits Equity Act of 2001 |
SUPPORT |
AB 1390, Firebaugh, would require the California Air Resources Board (CARB), in consultation with air districts with a population of one million or greater, to expend at least 50 percent of monies appropriated, until January 1, 2007, for the Carl Moyer Program, lower-emission school bus program and diesel mitigation programs, in a manner that directly reduces air contaminants or the public health risks associated with air contaminants, in communities that are disproportionately impacted by localized air contaminants. Air districts with fewer than one million residents are encouraged to apply similar principles to the extent feasible. Assemblyman Firebaugh worked with staff when amending the bill to ensure that while the state programs work to further air quality goals they do so in an environmental justice sensitive manner. AB 1390 complements existing law relating to environmental justice and ongoing efforts by the AQMD.
Dr. Wallerstein added that AB 1390 was originally drafted in a more restrictive manner. But, the way it is drafted now makes it a good public policy statement and can easily be implemented in this basin. This bill is supported also by other air districts through CAPCOA. Staff recommends Support. The Legislative Committee concurred with staff’s recommendation to Support AB 1390.
ABX2 60, Hollingsworth, would require the Energy Commission, in cooperation with investor-owned utilities, municipal utility districts and air districts, to evaluate and categorize permitted standby and portable backup generators by their emission levels. Authorizes agreements whereby investor-owned utilities can then call on the owners of standby and backup generators, in order of fuel source used, to use these generators to provide additional energy to the grid when blackouts are determined to be imminent.
ABX2 60 proposes to reduce the demand on the power grid when the California Independent System Operator declares that rotating blackouts are imminent by calling on those customers with backup generation to power up to help prevent a blackout from occurring. Provisions of the bill will also pay customers to run backup generation, which is inconsistent with Board policy on this issue. Staff agrees with the concept of "environmental dispatch." However, it is unknown how many generators will be needed to avoid a blackout and how long those generators will be needed. With a minimal number of clean-burning generators in this basin, this bill could essentially require a substantial number of diesel-powered generators to power up and that could have a detrimental effect on the air quality in this basin. Furthermore, there are numerous other concerns that staff has regarding this bill, that are stated in the bill analysis. Staff recommends Oppose.
Ms. Verdugo-Peralta commented that she agreed with provisions in the bill requiring an evaluation of the types of generators in the state and the emission levels from them and suggested that staff meet with Assemblyman Hollingsworth to learn the intent of the legislation. The evaluation provisions in the bill could provide useful information. The Legislative Committee adopted an Oppose position on ABX2 60.
SBX2 24, Knight, would eliminate the requirement for approval by the upwind air district’s Governing Board for emission reduction credit transfers between air districts for the purpose of siting a power plant on the grounds of a former military base in a downwind district, in a county that in 2001 has a population of between 1,689,000 and 1,700,000 residents. SBX2 24 is similar to Senator Knight’s SBX2 79, for which the Committee adopted an Oppose position on in June, except that SBX2 79 applies to all credit transfers for power plant siting and SBX2 24 applies specifically to power plant siting on a former military base in a county with a specified population. Staff recommends an Oppose position, but it continues to be staff’s desire that the Board’s recent action that lifted the moratorium on transferring credits from this basin would suffice and the legislation would not be needed. Staff recommends an Oppose position. The Legislative Committee adopted an Oppose position on SBX2 24.
HR 318, McGovern and S 217 (Schumer) would amend the Internal Revenue Code to provide a uniform dollar limitation for all types of transportation fringe benefits excludable from gross income. These two bills seek to increase the monthly tax-free benefit for transit passes and vanpool benefits from $65 to $175 per month, equal to the current parking benefit. The bills are similar to HR 3546 and S 2083 from last year, which the Committee supported. Staff recommends a Support position.
Ms. Glover asked staff to look into the benefits of these commuter incentive programs. The Legislative Committee adopted a Support position on HR 318 and S 217.
HR 906, McGovern, would amend the Internal Revenue Code to allow a business credit for employers who provide their employees with certain qualified transportation fringe benefits (transit passes and vanpools). Existing law allows employers a general business tax deduction. This additional 25% business tax credit is specifically for those employers who provide transit passes and vanpool benefits to their employees. Staff recommends a Support position. The Legislative Committee adopted a Support position on HR 906.
Other Business/Public Comment
Chair LaPisto-Kirtley stated that she recently learned that the Ethnic Community Advisory Group (ECAG) minutes are to be routed through the Legislative Committee for consideration but instead have been passed to the Governing Board as an attachment to the Legislative Committee Board report, without Committee consideration. Chair LaPisto-Kirtley asked staff to include the ECAG minutes on the Legislative Committee meeting agenda beginning in September and asked that Mr. Abarca provide the Committee with copies of the duties of the ECAG.
Ms. Carney asked how much of ECAG’s activity is legislative and Ms. Verdugo-Peralta responded that they have no legislative activity. The ECAG is strictly an advisory group and, although they are comprised of the three caucuses, Latino, African-American and Asian Pacific, they also include Native American. The limitations of the ECAG, a group that really wants to do something and wants to be involved, is currently being discussed with staff and the ECAG chairs. They also want to be part of the International Conference and will have a booth there to let people know about ECAG and how they integrate with AQMD and their communities. Mr. Abarca added that the Administrative Committee recently mandated a blue ribbon panel to review all of the charters of the various AQMD advisory groups. Ms. Carney suggested that the panel also consider whether the Legislative Committee is the correct reporting mechanism for the ECAG.
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