South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: September 21, 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:
ABX2 86 (Florez) - Diesel Fuel Tax
Federal Clean Green School Bus 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 September 14, 2001. Present were Committee Chair Beatrice LaPisto-Kirtley, Vice Chair Jane Carney, and Committee members Cynthia Verdugo-Peralta and Roy Wilson (by videoconference). Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, William Burke, AQMD Chair, and Norma Glover, AQMD Vice-Chair, were appointed as ad hoc members of the Legislative Committee for the September 14, 2001, meeting only. Supervisor Michael Antonovich was not able to attend. [Attachment 1]
Washington Update [Attachment 2]
Peter Robertson, AQMD Washington Legislative Representative, reported that Congress has halted discussions on Appropriation matters for the upcoming budget in order to address higher priorities created by the terrorist attacks that took place on September 11. Activity will resume on proposed funding requests when Congress resumes normal activities and additional contacts with congressional members will only be made if deemed appropriate by the Legislative Committee.
Mr. Robertson reported that the U.S. EPA is organizing a panel to assess progress made in the automobile and fuels industries in complying with the phase-out of higher sulfur levels in diesel fuel. The formation of the panel is targeted for May, 2002. Dr. Barry Wallerstein, Executive Officer, stated that the AQMD wants to be involved in the Committee and directed staff to work with Mr. Robertson on a letter to U.S. EPA asking to participate on the panel.
Sacramento Update [Attachments 3 and 4]
Allan Lind, AQMD Sacramento Legislative Representative, reported that the legislative session is scheduled to end on September 14 and the Legislature has been working expeditiously to pass legislation on time. The Governor will have until October 14 to sign or veto legislation.
The Legislature still has several hundred bills under consideration. Some major issues include Southern California Edison financial recovery, Worker’s Compensation reform, redistricting of legislative and congressional seats, school and college bonds, and gun safety. Since the August Legislative Committee meeting, SBX2 24 (Knight), that would have deleted Governing Board authority to approve the transfer of emission reduction credits out of the Basin, failed passage, and SBX2 79 (Knight), similar to SBX2 24, was withdrawn by the author. AQMD has offered to work with Senator Knight and the downwind districts on this issue. Lastly, ABX2 60 (Hollingsworth), which would have created a program for environmental dispatch of backup generators to prevent blackouts, was held in Committee and there will be no further action on the bill. The AQMD had an Oppose position on these bills.
Bills supported by the AQMD that have passed the Legislature and gone to the Governor include AB 451 (Firebaugh) - Architectural Coatings; AB 621 (Corbett) - Interruptible Energy Contracts; and SB 702 (Escutia) - Environmental Health Surveillance System. AB 1390 (Firebaugh), which requires environmental justice considerations in the expenditure of state clean air funds is still being considered by the Legislature but expected to pass. [Please see Attachment 4 for summaries of the above-mentioned bills and other AQMD-interest legislation.]
Dr. Wallerstein reported that the approved State Budget contained $16 million for the Carl Moyer Program, $16 million for the school bus replacement program and $16 million for energy crisis mitigation programs. Ten percent of the $16 million for energy crisis mitigation was to be used to reimburse local air districts for staff efforts related to the energy crisis. The remainder of the money was for programs to offset the air quality impacts or potential future air quality impacts related to the energy crisis. Staff has now learned that the Executive Officer of the California Air Resources Board (CARB) intends on not exercising the $16 million appropriation authority earmarked for energy crisis mitigation. Staff’s understanding is that the money will not be available based on the decision by CARB’s Executive Officer. Dr. Wallerstein added that the AQMD has received countless calls over the last nine months from various state departments and the Administration stating that there is an electricity crisis and that it is not over. Summer weather was mild and diesel generators were not run in large numbers, but a great amount of effort was expended by staff and the challenge of sufficient clean energy supply is not past. Moreover, excessive use of power plants has occurred and greater use of diesel generators is still possible.
Ms. Verdugo-Peralta added that when the state went through the energy crisis and had the Stage 1 and 3 alerts it was during what was considered off peak during the winter season, not during what would normally be designated a high peak summer season. Chair LaPisto-Kirtley asked if the CARB Board could reverse the Executive Officer’s decision and Mr. Lind believed they would have that authority. A letter will be sent from the AQMD Board Chair to the CARB Board Chair on this issue.
Lastly, the Legislature is considering a natural resources and parks bond that currently contains $50 million for the Carl Moyer Program. The measure is awaiting support by the Governor.
Ethnic Community Advisory Group Minutes
Attached for information are the Ethnic Community Advisory Group minutes for the June 13, 2001, meeting. [Attachment 5]
Ethnic Community Advisory Group Charter
At the August Legislative Committee meeting Chair LaPisto-Kirtley requested that staff provide Committee members with a copy of the Ethnic Community Advisory Group Charter. Per this request, attached for information is the current charter for the Ethnic Community Advisory Group. [Attachment 6]
Issue RFP for Legislative Consulting Services in Washington, DC, and Request Approval to Extend Contract for Sacramento, CA, Legislative Consulting Services Under One-Year Renewal Option
Staff requested approval to issue an RFP to solicit proposals for future representation in Washington, DC. The current contract will expire on December 31, 2001. The RFP will be released on September 21 to allow sufficient response time and evaluation of proposals and a recommendation to the Board before Congress convenes in January.
Staff also requested approval to extend the current contract with Allan Lind and Associates for legislative representation in Sacramento, CA, with an adjustment for inflation. The current contract expires on December 31, 2001, and contains an option to renew for one additional year. Allan Lind and Associates were successful in securing passage of the Clean Fuels legislation in 1999, and assisted last year in securing increased subvention for air districts, and maintaining that increase for FY 2001-02. Most importantly, the firm has been successful in garnering support for the AQMD and its programs and has been instrumental in negotiating amendments to legislation that may have negatively impacted the AQMD. This firm has represented the AQMD in Sacramento during the last four years without an adjustment for inflation. Staff recommends renewal of the contract with Allan Lind and Associates for one additional year, with a cost of living adjustment [3.74% (CPI)].
The Committee approved staff’s recommendation to issue an RFP for legislative consulting services in Washington, DC, and to extend the current contract with Allan Lind and Associates for legislative representation in Sacramento, CA, for a period of one year, at an amount not to exceed $129,675. [Please see Agenda Item #9 for the September 21, 2001, Governing Board meeting for information on this item.]
Recommended Positions on Legislation
Staff provided analyses and recommendations on three bills and provided a brief description of each bill. [Attachment 7]
|
Bill/Title |
Recommended Position |
|
ABX2 86 (Florez) - Diesel Fuel Tax |
SUPPORT |
|
AB 1618 (Matthews) - Engine Fuels |
SUPPORT with Amendments |
|
Federal Clean Green School Bus Act of 2001 |
SUPPORT and Suggest Amendments |
ABX2 86, Florez, would exempt the water portion of a diesel fuel/water emulsion from the excise tax on diesel fuel. The Lubrizol Corporation, the manufacturer of PuriNOx, a blend of diesel fuel, water and an additive that binds the fuel to the water, is seeking through ABX2 86 to exempt the water-based portion (approximately 17 percent) of PuriNOx fuel and other similar fuels from the diesel fuel excise tax. The California Air Resources Board (CARB) awarded Lubrizol in July a $2.25 million grant under CARB’s NOx-PM Reduction Program, for the blending and testing of up to 8 million gallons of PuriNOx in fleet vehicles. According to CARB, PuriNOx fuel reduces the emissions of NOx by 14 percent and PM by 62.9 percent, compared with untreated diesel fuel.
Additionally, CARB found that PuriNOx results in hydrocarbon emissions that are at least 25 percent lower than any applicable diesel vehicle emission standard. The exclusion from the tax on the water portion of such alternative fuels would apply only if a diesel fuel blend meets CARB standards. Staff recommended Support.
Dr. Wallerstein added that to the degree this fuel reduces NOx and is being used in existing vehicles, it is an instant way to try and reduce NOx emissions. Staff noted that the bill would include other development fuels only if they meet CARB standards. After discussion, the Legislative Committee voted to adopt a Watch position only on ABX2 86.
AB 1618 (Matthews), would allow the Department of Food and Agriculture (DFA) to grant a variance from specified engine fuel specifications to manufacturers of developmental engine fuels, such as PuriNOx, manufactured by Lubrizol. Currently, several engine fuel manufacturers are evaluating new fuel technology that there are no recognized consensus organization standards for (such as ASTM or SAE standards). Such standards have been adopted for gasoline, diesel fuel, kerosene and fuel oil. Development of standards for new fuel technology could take up to two years and without the standards the DFA does not have the authority to allow the sale of development fuels. AB 1618 would authorize DFA to grant a variance from fuel specifications for developmental engine fuels. The bill outlines specific conditions that must be met for a variance.
Staff initially recommended Support with amendments on AB 1618 to require CARB approval before DFA issues a variance for a developmental fuel, as well as a specific amendment to the definition of "developmental engine fuel" to ensure that such fuels achieve equivalent or better air quality benefits. However, since the Legislature is scheduled to recess on September 14 for the year, it is too late for amendments. Alternatively, staff recommended Support for AB 1618 if a letter is submitted to the legislative journal clarifying the intent of the legislation with respect to equivalent air benefits and CARB approval.
Ms. Carney expressed concern with a support position on legislation that may encourage the introduction of many new reformulated diesel fuels, and recommended support for the letter, but not to link it with a support position on the legislation. Ms. Verdugo-Peralta asked what the technical findings on PuriNOx have been. Dr. Wallerstein responded that there has been some testing on engine durability with the use of this fuel and CARB has said that they are comfortable that there would be no durability problems with PuriNOx. CARB has awarded Lubrizol $2.25 million to test up to 8 million gallons of PuriNOx in fleet vehicles. Staff would like to see more durability testing, but at the same time if engines can get a 15% reduction in NOx and it can be done with this method, then staff believes it should be embraced.
Dr. Wallerstein stated that there was concern at first with the proposal unless there was a provision requiring CARB to certify equal air quality benefits. It is important at this late date that if the legislation cannot be changed that we seek a clarifying letter for the record. Dr. Wallerstein also suggested that it might be beneficial to contact the Governor’s office to ask that the Governor note this understanding in his signing message on this bill. The Legislative Committee moved to support a letter to the journal and contact with the Governor’s office to clarify the intent of the legislation. The Committee took no position on AB 1618.
Federal Clean Green School Bus Act of 2001 (Boehlart), would establish a pilot grant program within the Department of Energy and appropriate $300 million over five years to assist school districts nationwide with replacing existing school buses with cleaner alternative fueled or ultra-low sulfur diesel fuel buses. Also creates a Fuel Cell Development and Demonstration Program. The proposed Act is sponsored by the Union of Concerned Scientists, which has launched a nationwide campaign to gather support for this measure.
Staff supports increased funding to accelerate the replacement of dirtier school buses, preferably with alternative fuel school buses, and agrees that the majority of the funding should be available for the alternative fuel school buses rather than for ultra-low sulfur diesel school buses. The Act, however, limits the amount of funding any one state can receive per year to ten percent, with no exceptions made for states with areas rated "extreme" nonattainment. Staff believes that extreme nonattainment status should merit more than ten percent of the funding. Additionally, staff believes that distribution of funding based on per capita determinations should also be considered. Staff recommends working with the author and sponsors to have per capita distribution and level of air quality problem considered in the grant process.
In addition, staff recommends that the NOx emission criteria for ultra-low sulfur diesel school buses be the same as the NOx emission criteria set for alternative fuel school buses. Although the provisions of the Clean Green School Bus Act have passed the House of Representatives, there may be an opportunity for amendments if the Senate inserts similar language into their Energy Authorization bill or possibly during the joint conference committee process. Therefore, staff recommends Support and Suggest Amendments. The Legislative Committee adopted a Support and Suggest Amendments position on the Clean Green School Bus Act of 2001.
Other Business/Public Comment
No other business or public comment.
/ / /