South Coast Air Quality Management District

Legislative Committee

SYNOPSIS: 

The Board will consider adopting a state legislative agenda for the coming year. Staff recommendations for the agenda include filling gaps in AQMD's regulatory authority; implement the Board's policy initiatives with respect to environmental justice, children's health, and strategic alliances; stabilize state funding; and guard against large state fee increases for stationary sources. Specific proposals for consideration are listed in the Board letter.

RECOMMENDED ACTION:

Approve the State Legislative Agenda recommended below.

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

Attendance

The Legislative Committee met on November 8, 2002. Present were Committee Chair Beatrice LaPisto-Kirtley, Norma Glover, AQMD Chairman, and Committee Members Michael Antonovich, Cynthia Verdugo-Peralta and Roy Wilson (by videoconference). Committee Vice-Chair Jane Carney was unable to attend. [Attachment 1]

Outlook for the California Legislature in 2003 [Attachment 2]

Allan Lind, AQMD Sacramento Legislative Representative, reported that the November elections will likely give the Assembly two additional Republican seats, giving the Assembly a total of 48 Democrats and 32 Republicans. The Senate will continue with 26 Democrats and 14 Republicans. There are 13 new members within the South Coast jurisdiction. The new Legislature will convene on December 2 to organize and elect new leaders and committee chairs.

The November ballot also contained Proposition 51, the Traffic Congestion Relief Act, sponsored by the Planning and Conservation League. Proposition 51 would have provided funding for various transportation projects around the state and permanent funding for the Carl Moyer and Lower-Emission School Bus programs. In line with the Committee's "No Position", many disapproved of the so- called "special projects" included in the proposition, which likely contributed to its defeat.

State Legislative Proposals for 2003 [Attachment 3]

Pursuant to direction from the Legislative Committee, staff met with Allan Lind and his team to develop legislative proposals for the AQMD to pursue in the areas of fiscal policy and regulatory authority.

Mr. Lind outlined for the Committee four general themes and three specific proposals for consideration for the 2003 legislative year.

Themes

• Fill the gaps in AQMD's regulatory authority, including authority to regulate mobile sources and/or otherwise leverage CARB's authority to regulate mobile sources;
  
  
• Stabilize state funding resources;
  
  
• Implement the Board's policy initiatives with respect to environmental justice, children's health, and strategic alliances; and
  
  
• Guard against large state fee increases for stationary sources.
  [Earlier this year, as part of the Legislative Analyst's Office (LAO) analysis of the proposed FY 2002-03 budget, the LAO estimated an $18.7 million savings to the General Fund if CARB were to levy fees on stationary sources of pollution to replace funding from the General Fund. The measure was eventually defeated by the Legislature].

Proposals
 

	State subvention funding to local air districts: Statutory provision to stabilize this funding source.
	SB 1994 (Soto) Revisited: Fee on crude oil refining to mitigate air quality and groundwater quality impacts
	Authority to adopt rules regarding retrofit of on-road and off-road diesel engines, including locomotives along the Alameda Corridor

State subvention funding to local air districts

Mr. Lind reported that local air districts, after making great progress in increasing state subventions, saw a decrease this year because of the fiscal crisis. Discussions are underway with the Administration on whether the Governor's Budget, to be released in January, will restore local air district subventions to the FY 2001-02 level.

The Administration will likely seek to adjust the revenue base in the MVA next year and the local air districts should work to ensure that clean air programs get just consideration based on the principle that fees on motor vehicles and motorists serves three purposes: 1) enforcing motor vehicle laws; 2) regulating the motoring public; and 3) mitigating the air pollution caused by motor vehicles.

Dr. Wallerstein added that currently state subventions are disbursed through CARB to local air districts. The money is part of CARB's budget. If the Governor seeks additional budget cuts by state agencies between now and the next fiscal year, subventions not yet distributed are vulnerable. The uncertainty of this funding from year to year makes it difficult for air districts to plan their budgets.

Dr. Wallerstein also mentioned concern with the LAO's proposal from last year to increase fees on stationary sources to replace about $18 million in CARB funding from the General Fund. The concern is two-fold. One, businesses may not realize that the increase is from CARB and not the AQMD. Secondly, depending on which sources the fee is levied, there could be a 20-30% increase in fees in a single year for stationary sources. Staff believes this is not equitable or fair.

SB 1994 (Soto) Revisited
Dr. Wallerstein stated that in the last legislative session, the Board had voted to support SB 1994 (Soto) and AB 2682 (Chu). These identical bills would have created a permanent funding source for the Carl Moyer and Lower-Emission School Bus programs by levying a fee on crude oil refining. The bills failed to pass, but both authors have indicated they plan to reintroduce the legislation next year and look forward to working with the AQMD and other air districts to secure passage.

Authority to adopt rules regarding retrofit of on-road and off-road diesel engines, including locomotives along the Alameda Corridor
Board Chairman Glover inquired about the possibility of gaining additional authority to mitigate impacts from mobile sources, including locomotives along the Alameda Corridor. Supervisor Antonovich added that there is significant pollution generated by the Alameda Corridor, but the ports and the City of Los Angeles did not contribute funding for pollution mitigation. The Alameda Corridor East mitigation will cost approximately $950 million to mitigate the 55 intersections that generate significant pollution from traffic congestion, but only $400 million has been funded to date.

Supervisor Antonovich asked if the AQMD has control over the emissions from locomotives operating in the Corridor. Dr. Wallerstein stated that the AQMD has authority to exert some control over locomotives. As an example, heavy-duty trucks operate on diesel fuel with about 125 ppm sulfur. The AQMD Board and U.S. EPA, over the next few years, are moving toward 15 ppm sulfur for heavy-duty trucks. Locomotives use diesel fuel with up to 5,000 ppm sulfur so there is potential for cleaning up the fuel in locomotives. There is also future potential for particulate traps or some other NOx control on locomotives as well.

Supervisor Antonovich asked if a motion should be made to encourage Congress to require lower sulfur fuel in locomotives. Dr. Wallerstein responded that congressional action is preferred since CARB and U.S. EPA have principal authority. There are also border issues and potential interference with interstate commerce that need to be addressed. Dr. Wallerstein added that with the information now available on the impacts of the Alameda Corridor, the AQMD should include mitigations for pollution from idling trucks at rail crossings during the next phase of CEQA documentation on the Alameda Corridor East project. Supervisor Antonovich suggested working with the Executive Director of the Alameda Corridor East on the role the AQMD could play in getting the railroads and ports interested in mitigating pollution generated by idling locomotives and vehicles trapped at rail crossing. The Legislative Committee directed staff to contact the Executive Director of the Alameda Corridor East to discuss this issue and to work with the federal government on pollution control authority for the Alameda Corridor and Alameda Corridor East.

Ms. Verdugo Peralta asked staff for the status of particulate traps. Dr. Wallerstein responded that part of CARB's transit bus rule relied on retrofit of older buses with particulate traps. CARB has now acknowleged that the passive traps that clean themselves are not available now or in the near term to retrofit older vehicles. There is a possibility to use a different type of trap but it would be more cumbersome for the operators. Traps for 1991 and newer vehicles are available and being equipped on vehicles in the basin. Additional information on in-use performance is still needed and monitoring and demonstration programs are continuing.

The Legislative Committee adopted the State Legislative Agenda for 2003 and directed staff to also address Alameda Corridor East pollution-related traffic congestion concerns.

Other Business/Public Comment

No other business/public comment.

Attachments

1. Attendance Roster
2. 2003-04 State Legislative Delegation
3. Proposed State Legislative Agenda for 2003

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