BOARD MEETING DATE: September 13, 2002 AGENDA NO. 28
Legislative Committee
SYNOPSIS:
The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
H.R. 4867 (Hunter)/S. 2588 (Feinstein/Boxer)
Southern Border Air Quality Protection Act
RECOMMENDED ACTION:
Approve the legislative position recommended below.
Beatrice J. S. LaPisto-Kirtley, Chair
Legislative Committee
Attendance
The Legislative Committee met on August 9, 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). [Attachment 1]
Federal Update [Attachment 2]
Staff reported that Congress has introduced the Presidents Clear Skies Initiative. The legislation, H.R. 5266 (Barton and Tauzin) and S. 2815 (Smith), fills in the details of a plan first presented by President Bush in February to reduce emissions from power plants. There is also an alternative proposal introduced by Senator Jeffords (S. 556). The proposals pertain not only to NOx and SOx emissions from power plants, but also mercury and the issue of whether CO2 as a global warming gas should also be included.
Heavy-Duty Diesel (HDD) consent decrees filed by the U.S. Government in July 1999 were done to settle environmental violations with seven manufacturers of HDD engines that used illegal defeat devices for more than a decade to pass emissions testing. Rather than causing those manufacturers to recall the vehicles, the federal government worked out a settlement where the engine manufacturers would start introducing cleaner engines than would otherwise be required, beginning this October. As part of that package, if the manufacturers failed to introduce the cleaner engines, they would be assessed a monetary penalty. The U.S. EPA has just issued an adjustment to the proposed penalty that results in a penalty increase. The emissions from these engines cause a significant increase in the AQMDs NOx emission inventory.
Staff also reported that 44 Senators have sent a letter to U.S. EPA Administrator Whitman opposing any changes to the New Source Review (NSR) program that would likely result in increased air pollution. The Senators are urging EPA to conduct a rigorous analysis of the air pollution and public health impacts of the rule changes, as well as provide for public comment before finalizing any changes. In addition, 33 House members sent a letter to Administrator Whitman urging U.S. EPA to refrain from NSR changes that would result in more emissions from new or existing sources than are currently allowed. AQMD staff has also forwarded comments approved by the Board on the NSR changes to the U.S. EPA.
Sacramento Update [Attachments 3 and 4]
Allan Lind, AQMD Sacramento Legislative Representative, reported that August is the last month of the legislative session and there are a large number of bills still being considered by the Legislature. In addition, the state budget is still at an impasse.
With respect to legislation, the biggest air quality issue pending is AB 2637 (Cardoza), which would require the Bay Area AQMD to adopt and implement enhanced Inspection and Maintenance (Smog Check II). Except for the Bay Area, every other major metropolitan area in California has already gone to Smog Check II. The Bay Area AQMD opposes the bill and the San Joaquin Valley APCD and Sacramento AQMD are in support. The bill is likely to pass and go to the Governor. This bill does not affect the South Coast AQMD.
Senate Constitutional Amendment 7 (SCA 7) by Senator Burton would put into the state Constitution policy statements regarding open meeting laws and the Public Records Act. SCA 7 is sponsored by the Newspaper Publishers Association and opposed by the League of California Cities and the County Supervisors Association. The bill has missed the deadline this year to qualify for the November ballot. But, if passed, the issue can be placed on the primary election ballot in 2004. Key to the debate on SCA 7 is the implications for local government. The opposition believes SCA 7 will add confusion to current law, lead to litigation and impair the ability of units of local government to meet in closed session.
In other legislation, staff has been working closely with Assemblyman Lowenthal and the sponsors on AB 2650, which seeks to reduce truck idling in the port areas and would use any penalty monies received for noncompliance to fund a grant program to assist with the retrofit or replacement of older diesel engines. AB 2650 unanimously passed the Senate Local Government Committee after amendments were accepted in Committee that removed opposition. However, the amendments create an exemption from the bills provisions if the marine terminals establish an appointment system. Such a system could result in little, if any, revenue for the grant program. However, the consensus reached in the bill can be viewed positively as making a significant step toward reducing the idling time of diesel trucks in the port area.
The Department of Finance recently instructed all state agencies to prepare their budgets for the 2003-04 fiscal year, anticipating a 20 percent reduction in their expenditures. This will affect all those who are dependent and/or engaged in state programs. For air districts, the subvention program dollars could become vulnerable in the FY 2003-04 Budget process.
The Senate Agriculture and Water Resources Committee will hold an informational hearing on August 13 to discuss Title V exemptions for agriculture operations. There is a prohibition in state law that prohibits an air district from issuing a permit for agriculture equipment. Under Title V, the U.S. EPA has determined that agriculture equipment should be permitted. Initially, the Title V regulations in California went through an approval process at U.S. EPA and as a result of litigation, California now has to permit agriculture equipment to settle the litigation.
In the South Coast Air Basin, there may be about 200 agriculture permits that will have to be issued. If the Legislature does not remove the prohibition, then air districts are caught between the Legislature and the U.S. EPA, which could mean sanctions that could jeopardize the AQMDs offset ratio, transportation funding, etc. It is critical that this issue be resolved by the Legislature and the restriction on air districts be removed. There are a number of legislators from the South Coast Air Basin on the Senate Agriculture and Water Resources Committee. AQMD staff will prepare a fact sheet on the impact to this basin and Dr. Wallerstein will attend the hearing.
Recommended Position on Legislation
Staff provided a summary analysis and position recommendation on two identical bills and provided a brief description of the bills. [Attachment 5]
Bill/Title |
Recommended Position |
|
H.R. 4867 (Hunter)/S. 2588 (Feinstein/Boxer) |
SUPPORT |
H.R. 4867 and S. 2588, identical bills, would prohibit the export of natural gas from the United States to Mexico for use in electrical generation units near the U.S. border that do not meet the air quality requirements of the nearest air quality region to the unit. There is a significant concern, particularly in the areas near San Diego and Imperial counties, and the Coachella Valley area of Riverside, about power plants currently being built in Mexico near the U.S. border, and the potential impacts of increased emissions from these plants that are not being built to U.S. or California emission standards. The legislation offers the U.S. an opportunity to affect what is currently seen as a significant future impact to Californias air quality progress. The Legislative Committee adopted a Support position on H.R. 4867 and S. 2588.
Other Business/Public Comment
No other business/public comment.
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