South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: March 16, 2001 AGENDA NO. 25
Legislative Committee
SYNOPSIS:
The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving positions:
ABX1 31 (Wright) – Electricity Curtailment Programs
ABX1 100 (Mountjoy) – Electrical Backup Generation
SBX1 29 (Soto) – Methane Demonstration Project
SBX1 38 (Oller) – Use of Backup Generators
RECOMMENDED ACTION:
Approve the legislative positions recommended below.
Beatrice J.S. LaPisto-Kirtley, Chair
Legislative Committee
Attendance
The Legislative Committee met on March 9, 2001. Present were Committee Chair Beatrice LaPisto-Kirtley, Vice Chair Jane Carney, and Committee members Michael Antonovich, Cynthia Verdugo-Peralta and Roy Wilson (by videoconference). (Attachment 1)
Washington Update
Peter Robertson, AQMD Washington Legislative Representative, reported he is working on potential funding projects to submit to congressional members from the South Coast Air Basin for consideration, and will contact Board members to discuss ideas. Congressional members have until May 1 to submit all funding requests. [Attachment 2]
Mr. Robertson reported that Congressman Bill Lipinski [D-Illinois] has introduced HR 677 relating to inspection of commercial motor vehicles entering the United States along the United States-Mexico border. Congressman Lipinski is a member of the Transportation and Infrastructure Committee and supported similar legislation last year. Mr. Robertson will contact Congressman Lipinski’s staff to discuss the possibility of attaching provisions to HR 677 addressing pollution from these trucks. Senator Bob Smith [R-New Hampshire] continues to show an interest in introducing legislation to create a "cap and trade" program for utilities and legislation to further reduce emissions from automobiles.
Chair LaPisto-Kirtley asked what affect the Supreme Court ruling on the clean air standards may have on the 2001 Air Quality Management Plan (AQMP). Mr. Robertson responded that the ruling upheld the US EPA’s recently adopted ozone and particulate standards, but sent the implementation plan back to the EPA for reworking. It will take EPA some time to work out the implementation schedule and the ruling should not affect work on the 2001 AQMP.
Ms. Carney recommended sending thank you letters to the appropriate individuals regarding EPA’s position on the diesel fuel and engine rules. Mr. Robertson suggested that a letter to EPA Administrator Christine Todd Whitman and Mitchell Daniels, Director of the Office of Management and Budget, would be appropriate and appreciated. The Legislative Committee recommended that a letter be sent from Dr. Burke on behalf of the Board.
Sacramento Update
Allan Lind, AQMD Sacramento Legislative Representative, reported that the Legislature introduced over 2,800 bills in the regular session by the February 23 deadline. [Attachment 3] Over 200 bills have been introduced in the special session on the energy crisis, and bills may continue to be introduced in the special session. The Legislature continues to explore ideas to provide for a more stable and reliable energy future. The District has a Support position on the special session bill SBX1 28 (Sher), which addresses powerplant siting speed up and contains provisions allowing for the use of mitigation fees in lieu of emission credits. AQMD staff helped draft amendments to the bill, and Senator Battin, who added the amendments to the bill, conveyed his appreciation to the AQMD for their help.
Mr. Lind reviewed the progress on some of the District’s state legislative proposals for 2001. [Attachment 4] Proposal #1 is to support legislation for additional funding for implementation of the fleet rules. Four bills introduced deal generally with vehicles and emission reductions from vehicles. Within the context of these four bills there is a foundation to work with for this proposal. Proposal #2 is to preserve air district subventions in the state budget. Subvention funding was included in the Governor’s budget released in January. Mr. Lind added that the Senate Budget Committee met and determined they will cut $2.5 billion of one-time expenditures or new program expansions from the budget. They plan to set aside a list of potential projects to cut, deal with the core budget, and then if there is money left over, they will revisit the cuts. On the list of cuts is the $100 million proposed for the Governor’s NOx reduction program and the $50 million for a zero-emission vehicle (ZEV) incentive program.
Dr. Barry Wallerstein, Executive Officer, stated that it is his understanding that the state is spending approximately $40 million a day on electricity and there are probably difficult times ahead, but that the District does expect to get the Carl Moyer funding appropriated in the current FY 2000-2001 state budget. However, the school bus replacement monies and the ZEV incentive program monies are being used toward the energy crisis. Staff will be requesting permission from the Board to apply for the school bus and ZEV program funding so the request will be in should the funding get reinstated.
Mr. Lind stated that an $8 billion surplus was forecast for the period July 1, 2001 through June 30, 2002, so the Legislature is spending money they do not actually have yet. The intent of the Legislature is to replace general fund expenditures that have been made by selling revenue bonds. The revenue would be derived from electric utility rates. There is currently a debate on whether or not the existing electric utility rates will produce enough revenue to retire the bonds. The Wall Street Journal did a very thorough article recently contending that there is a mismatch between what the anticipated revenue is from electric utility bills and what the debt service would be on the respective bonds.
There are six bills introduced that deal with diesel fuel incentives, but not specific to low sulfur diesel fuel as specified in Proposal #4. A few bills would repeal the taxes on diesel fuel and one bill, AB 986, would assess a $50 fee on all diesel trucks in California and deposit those monies into a Carl Moyer-type program. AB 986 (Firebaugh) is sponsored by the California Trucking Association (CTA). The bill also has provisions relating to Proposition 65 noticing requirements whereby CTA is proposing that the ARB publish a Proposition 65 notice that incorporates all trucking facilities so individual notices are not required. Dr. Wallerstein added that the CTA has been very proactive, and recently championed the federal diesel standards and lobbied the new Administration to not hold back the standards.
Ms. Carney asked that staff look at AB 986 to see if the AQMD could support parts of the bill. Dr. Wallerstein added that he would like to work to broker a compromise between the two parties to arrive at a consensus so everyone could support the legislation.
Mr. Lind reported he was unable to secure an author for Proposal #7, which would allow the Hearing Board to seek an Order of Abatement in advance of a violation of an air permit. It may still be possible to have this language added to a spot bill and that effort will continue. Dr. Wallerstein stated that this is an important mechanism for the Hearing Board, especially during this energy crisis, and recommended that the Hearing Board Chair travel with him to Sacramento to meet with Legislators on this issue.
Executive Summary for Report to the Legislature on the Regulatory Activities of the South Coast Air Quality Management District for Calendar Year 2000
The Executive Summary of the AQMD’s SB 1928 Report to the Legislature on Regulatory Activities was provided to the Committee. [Attachment 5] Oscar Abarca, Assistant Deputy Executive Officer of Public Affairs and Transportation Programs, reported that since 1991, the District has been required to submit an annual report to the Legislature summarizing all rules that have been adopted or amended, a summary of permits to construct, operate, and denied, the approved budget and any findings of a required Triennial Audit, as well as a report on the Technology Advancement and RECLAIM programs. In addition to the required elements of the report, staff includes a summary of outreach efforts by the Public Advisor's Office. The full report will be before the Board at the March meeting.
Consideration of Positions on Extraordinary Session Legislation
Summaries of 26 extraordinary session bills were included in the Committee’s package. [Attachment 6] Mr. Lind recommended the Committee consider positions on four bills, pursuant to the Board-approved resolution concerning California’s energy crisis. The Legislative Committee considered positions on the following bills:
| Bill/Title | Recommended Position |
|
ABX1 31 (Wright) – Electricity Curtailment Programs |
OPPOSE unless AMENDED |
|
ABX1 100 (Mountjoy) – Electrical Backup Generators |
OPPOSE |
|
SBX1 29 (Soto) – Methane Demonstration Project |
SUPPORT in CONCEPT |
|
SBX1 38 (Oller) – Use of Backup Generators |
OPPOSE |
ABX1 31, Wright, eases air pollution rules for backup generators under utility "interruptible service" programs. Pursuant to the adopted resolution, an Oppose unless Amended position was communicated during a committee hearing on the bill. CAPCOA has also taken an Oppose unless Amended position. Board Vice Chair Glover and Dr. Wallerstein met with Assemblyman Wright, as well as with Assembly Natural Resources Committee staff, to impress upon them the importance of preserving the clean air laws during the energy crisis. The bill was amended, but unfortunately the amendments do not address all of AQMD’s concerns. It was recommended that an Oppose unless Amended position be continued and that a letter be sent to the author outlining specific AQMD concerns. The Legislative Committee concurred with the recommendation to continue an Oppose unless Amended position on ABX1 31 and recommended that staff prepare a letter to the author for Dr. Burke’s signature.
ABX1 100, Mountjoy, would exempt electric generating backup units from any rule or regulation by a local air district during a Stage 2 or Stage 3 emergency. Dr. Wallerstein commented that under guidance issued by ARB and under the AQMD Executive Orders, when pre-blackout condition occur, the generators can come on. There is a 200-hour limit, but the AQMD will likely show some flexibility if there is a greater need, especially with a hot summer. To bring the generators on under any Stage 2 or 3 condition would lead to excessive use of diesel backup generators and the emissions impact of that is of great concern. An Oppose position was recommended and Dr. Wallerstein added that the recommended position is consistent with the Board’s resolution on the energy crisis. The Legislative Committee concurred with the recommendation to Oppose ABX1 100.
SBX1 29, Soto, appropriates state funds to the Inland Empire Utilities Agency to demonstrate the use of methane gas derived from dairy cow manure by converting that to electricity with the objective of reducing the air and water pollution that would otherwise result. Dr. Wallerstein stated that he met with the Inland Empire Utilities Agency and they have a number of concerns regarding the power crisis. This bill helps air quality.
Ms. Carney commented that the bill states an unspecified funding amount and her understanding is that digesters used in this process are quite expensive. Mr. Lind responded that there are some funding options available. There could be funding from the General Fund, but may be difficult with the energy crisis. There are also specialized funds through the Energy Commission that may be appropriate for this use. Dr. Wallerstein recommended a Support in Concept position with a suggestion to Senator Soto to look at a specialized fund to provide funding for the provisions of this bill. Ms. Carney also asked if the emissions from the process are known and Dr. Wallerstein responded that the permitting process would have to been done and emission requirements met, but added that an emissions profile reviewed a few years ago for a similar type project looked quite good. The Legislative Committee concurred with the recommendation to Support in Concept SBX1 29 and suggest to the author that a specialized fund be considered for the funding.
SBX1 38, Oller, requires the ARB to immediately suspend any of its regulations that prevent the operation of a backup generator during a Stage 1, 2, or 3 electrical emergency declared by the Independent System Operator. The bill is similar to ABX1 100. The Legislative Committee concurred with the recommendation to Oppose SBX1 28. Supervisor Antonovich abstained.
Ms. Verdugo-Peralta stated that she also has concerns about ABX1 75 (Calderon) and SBX1 34 (Knight) and asked Mr. Lind to provide her with additional information.
Other Business/Public Comment
John Billheimer, Environmental Reality, stated that the Office of Environmental Health Hazard Assessment (OEHHA) released, on March 5, a list of priority toxics to be pursued under the Children’s Air Quality Initiative created in 1999 by SB 25 (Escutia). Mr. Billheimer stated that he believes that the contaminant of most impact to the South Coast Air Basin is the glycol ethers that are essential to a water-based strategy. The question that will arise is does the District want to take a proactive stance for its glycol ether program or stand back and see what ARB and OEHHA do on the matter. This may put a dampening on water-based strategies and that could have a great effect on the AQMP. [Attachment 7]
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