BOARD MEETING DATE: May 3, 2002
AGENDA NO. 24

Legislative Committee

SYNOPSIS: 

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
AB 2221 (Keeley) - Air Pollution Civil Actions
AB 2312 (Chu) - Environmental Justice Grants
AB 2650 (Lowenthal) - Diesel Pollution at Ports
AB 2682 (Chu) & SB 1994 (Soto) - Petroleum Pollution Cleanup
AB 2718 (Oropeza) - Distributed Generation
SB 1827 (Torlakson) - AB 2766 Funding
CARB Stationary Source Fee

RECOMMENDED ACTION:

Approve the legislative positions recommended below.

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

Attendance

The Legislative Committee met on April 12, 2002. Present were Committee Chair Beatrice LaPisto-Kirtley, Vice-Chair Jane Carney, and Committee members Michael Antonovich, Cynthia Verdugo-Peralta, and Roy Wilson (by videoconference). Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Norma Glover, AQMD Chairman, was appointed as an ad hoc member of the Legislative Committee for the April 12, 2002, meeting only. [Attachment 1]

Federal Update

Lance Larson and Jeff Shockey of Copeland, Lowery & Jacquez, Federal Legislative representatives, reported that AQMD's appropriation request for $2.5 million to provide transition assistance for dry cleaning operations has been submitted to Congressman Cox for submittal to the VA HUD subcommittee for funding through the U.S. EPA's Office of Science and Technology Account. Congressman Cox's office has prepared a draft letter for signature by various California delegation members in support of the requested appropriation. Two other AQMD appropriation requests have also been submitted to the Interior Subcommittee. The requests to the Department of Energy, Office of Transportation Technologies, are for $3 million in funding for a Natural Gas Engine Research, Demonstration, and Deployment Project, and $5 million for a Hydrogen Fueling Infrastructure Project. Congressman Cox is also assisting with these requests.

The Senate resumed debate this week on their version of the Energy bill. The House has already passed their version. A proposed amendment on the Arctic National Wildlife Refuge could delay the chance of the bill going into conference with the House version. A vote is expected the week of April 15.

Chair LaPisto-Kirtley asked that a written recap of the Federal report be sent to Committee members following each meeting.

Sacramento Update [Attachments 2 and 3]

Allan Lind, AQMD Sacramento Legislative Representative, reported that March and April have been dedicated to budget hearings and hearings on legislation. The most significant progress for air districts has been the restoration of subvention funding by the Assembly and Senate Budget Committees. The subvention funding would be restored through the use of unspent funds that had been dedicated to the zero-emission vehicle (ZEV) programs at CARB, with a general agreement with the ZEV community on the redirection of these unspent ZEV monies. AQMD Board Chairman Glover was instrumental in the decision to restore subvention funding through letters sent to Assembly and Senate Budget Committee chairs and members.

Discussions continue in the budget process on the allocation of Carl Moyer Program funding available through the passage of Proposition 40. Dr. Wallerstein stated that CAPCOA is in agreement with a proposal that approximately 20 percent of this funding be dedicated to school bus cleanup, with a provision that if school districts did not seek to use the money in a specified time period, the funding could then be available for another source category. Currently, because school buses do not operate as many miles or hours as other sources, they often have difficulty competing for funding through the Carl Moyer Program on a strictly cost-effectiveness basis.

Board Chairman Glover asked if the AQMD has a program to educate school districts about cleaner diesel versus natural gas buses. Dr. Wallerstein responded that part of the responsibility of the AQMD’s Intergovernmental Affairs staff is to work with school districts. Committee Chair LaPisto-Kirtley commented that the most success may come with educating school board members. Ms. Carney added that various school officials have statewide conferences and maybe AQMD staff could participate in such conferences. Chair LaPisto-Kirtley added that there is a school board association that meets annually and suggested that the AQMD’s outreach start with the larger school districts that are currently not accessing available monies. Ms. Verdugo-Peralta also recommended publishing a success story in the Advisor.

Executive Summary for Report to the Legislature on the Regulatory Activities of the South Coast Quality Management District for Calendar Year 2000 [SB 1928 Report] [Attachment 4]

Staff reported that the AQMD has been required since 1991 to submit an annual report to the Legislature on the regulatory activities of the preceding year. The report includes rulemaking and permitting activities, as well as the budget forecast for the following fiscal year, the annual report of the Clean Fuels Program, and the Annual RECLAIM report. The Executive Summary was provided as an information item only. The full report is a separate agenda item on the May Board agenda.

Recommendation by State Legislative Analyst’s Office for CARB Stationary Source Fee [Attachment 5]

Mr. Lind reported that the state is facing a $5 billion budget shortfall or greater. In January, Governor Davis released his draft budget proposal and in February the state Legislative Analyst Office (LAO) presented its perspective on the budget outlook. The LAO report made recommendations on measures the Legislature and state departments could take to reduce the demand on the General Fund. One recommendation is to replace $18.7 million of General Fund monies that support CARB’s Stationary Source Program through the imposition of fees on stationary sources statewide.

Dr. Wallerstein stated that staff is recommending that the Legislative Committee and Governing Board adopt a position of Opposition to this proposal. Staff is concerned about business community reaction to such a large increase in fees and any confusion that may occur over which agency is actually imposing the fee. Presently, the AQMD collects fees for CARB under the Air Toxics "Hot Spots" program and fees from the larger sources under the California Clean Air Act.

Ms. Carney stated that stationary sources in this Basin have already reduced their pollution by about 90 percent and the general public also needs to pay a fair share. Dr. Wallerstein added that such things as consumer products and automobiles are dominating some of our emissions inventory and the Legislature needs to decide whether they want to look to some of these other source categories for funding.
The Legislative Committee adopted an Oppose position on the LAO proposal to impose a statewide CARB stationary source fee.

Recommended Positions on Legislation

Staff provided analyses and position recommendations on seven bills and provided a brief description of each bill. [Attachment 6]
 

AB 2221 (Keeley), would authorize any person to sue any source who is constructing or operating any equipment without a required permit, or in violation of a permit or for nuisance, or odor, or any emission standard, or limitation. Also would authorize any person to bring a civil action against any air district that is alleged to have failed to take action against violators.

Dr. Wallerstein stated that the author has decided not to go forward with the bill. However, a Committee position is still needed in the event the bill is resurrected. Staff recommends an Oppose position. The Legislative Committee adopted an Oppose position on AB 2221.

AB 2312 (Chu), creates an Environmental Justice Small Grant Program within CalEPA and redirects 10 percent of fines and penalty monies received by CalEPA into the new fund. Funds from the program would be available on a competitive basis to community organizations located in areas directly affected by environmental pollution and hazards. Staff is recommending a Support with Amendments position on AB 2312, specifically to work with the author on amendments to: appropriate the monies to universities with expertise on environmental issues to then work with the various community groups on these issues; add an outreach component; require a final report on expenditure of funds; look at linking monies collected from the various CalEPA departments to work on those specific types of environmental issues; and delay implementation of the bill until the next fiscal year, 2003-04.

Ms. Carney asked if the bill contained a sunset clause and staff responded that as currently written, the bill contains no sunset date. The Committee recommended adding a 5-year sunset clause. The Legislative Committee adopted a Support position on AB 2312 with amendments as detailed above and an amendment to add a 5-year sunset clause.

AB 2650 (Lowenthal), would impose a $250 fee on marine terminals for each diesel truck that idles for longer than 15 minutes while waiting to enter the port to load or unload cargo, and would require AQMD inspectors to issue citations for violations. Marine terminals are exempt from the provisions of the bill if they stay open 16 continuous hours, plus 2 hours before and after peak commuter hours. The bill also contains provisions that would create a new Carl Moyer Program aimed at reducing particulate matter from heavy-duty trucks.

Staff added that the provisions of AB 2650 do not provide funding to air districts to increase their support staff to cite violators. Staff’s recommendation is that the Committee discuss this proposal in order to provide direction to staff.

AQMD Chairman Glover asked if the ports or trucks are concerned that the AQMD will not be reimbursed for staff time. Dr. Wallerstein responded that many of the independent truck drivers represented by the California Trucking Association are paid by the truckload. The intent of AB 2650 is to create funding for an additional Carl Moyer-type program to cleanup particulate from heavy-duty engines and to try and increase efficiency in trucks entering and exiting the terminals since they are paid by the truckload. Staff has two principal issues with AB 2650: 1) if additional inspectors are needed to enforce this legislation, there should be compensation to do so; and 2) staff wants to ensure adequate guidance to the AQMD, in statute, in the event of a labor issue and trucks decide to line up to provoke citations to the terminal.

Ms. Carney asked about the possibility of adding a sunset date to the bill in order to evaluate the effectiveness of the program after a certain period of time. The Committee agreed and asked for an amendment to add a 5-year sunset clause. The Legislative Committee adopted a Support position on AB 2650 with amendments to: seek compensation for AQMD enforcement staff; ensure adequate guidance in statute to prevent AQMD involvement in labor actions or issues; and add a 5-year sunset clause.

AB 2682 (Chu)/SB 1994 (Soto), identical bills, would enact the California Clean Communities and Petroleum Pollution Cleanup Act of 2002, to require refinery operators to pay a 30¢ fee for each barrel of crude oil refined at the respective refinery to the State Board of Equalization. Monies received from the fee would be used to permanently fund remediation of petroleum contamination of groundwater and diesel emission reduction projects through the Carl Moyer Program and a Lower-Emission School Bus Program. The Legislative Committee adopted a Support position on AB 2682/SB 1994.

AB 2718 (Oropeza), would expand existing law which offers incentives for businesses to use distributed generation (DG) units to provide self-generation. Expands the definition to include small DG units (less than one megawatt) operating on waste gas. This would redirect waste gas, currently flared, to create additional supplies of electricity. Staff recommends Support. The Legislative Committee adopted a Support position on AB 2718.

SB 1827 (Torlakson), would commit a portion of AB 2766 funds to a particular project to be carried out by an unspecified small public transit system in Los Angeles County. The proposed project may not be the best use of funding from this program and staff believes this may set a precedent for the expenditure of funds from this program, without consideration of funding programs that will provide a greater reduction in emissions for the cost. Staff recommends Oppose. The Legislative Committee adopted an Oppose position on SB 1827.

Other Business/Public Comment

None.

Attachments

1. Attendance Roster
2. State 2002 Legislative Proposal Matrix
3. State Legislative Status Report
4. SB 1928 Report Executive Summary
5. Recommendation by State Legislative Analyst’s Office
6. Recommended Positions on Legislation

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