BOARD MEETING DATE: January 10, 2003
AGENDA NO. 28

REPORT: 

Legislative Committee

SYNOPSIS: 

The Legislative Committee held its regular meeting on Friday, December 13, 2002. The next Legislative Committee meeting is scheduled for Friday, January 17, 2003, at 8:00 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file this report

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


Attendance

The Legislative Committee met on December 13, 2002. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich and Roy Wilson (by videoconference). Committee Vice-Chair Jane Carney and Committee Member Cynthia Verdugo-Peralta were unable to attend. [Attachment 1]

Washington Report/Update

Lynn Jacquez, AQMD Federal Legislative Representative, reported that the 107th Congress adjourned in November without completing 11 of the 13 Appropriations bills. The new 108th Congress will continue consideration of 2003 Appropriations bills when they convene in January, but the Senate is expected to introduce 11 new Appropriations bills and work to pass them, conference them with the House and submit a 2003 spending package to the President before the State of the Union address scheduled for January 28. How Congress will accomplish this task in the short time period remains unclear.

Three of AQMD’s funding proposals remain in limbo until the new Congress convenes. Contacts continue with the various Congressional offices and particularly Congressmen Christopher Cox and David Dreier to ensure AQMD’s projects are included in the final Appropriations bills. The AQMD did, however, receive a Defense appropriation for enhancements to its Air Monitoring System and AQMD staff is working with the Defense agency on this appropriation.

The Committee was also provided a written Federal Year-End Legislative Report which includes a list of new Senate Committee Chairs. Information on chairs of the respective subcommittees will be available after the new Congress convenes in January and will be provided to the Committee at the January meeting. [Attachment 2]

Sacramento Update

Allan Lind, AQMD State Legislative Representative, reported that in December the Legislature convened to organize itself for the 2003-04 session. The Governor then released his proposed budget cuts for the current fiscal year and convened a special legislative session to discuss the proposed cuts. Additionally, the state Legislative Analyst released an estimate of the state’s deficit, as well as a package of recommended legislation. Although the focus is not on environmental programs, the Legislative Analyst recommends that CARB increase its stationary source fees.

The Governing Board adopted the AQMD’s 2003 Legislative Agenda in December. Staff is working with Allan Lind and Associates to move forward the Agenda, which includes protecting state subventions, working with Senator Soto to reintroduce SB 1994 (a proposed fee on crude oil to help fund programs to reduce diesel emissions and exposure) and seeking authority to accelerate diesel retrofits in the South Coast Air Basin. Staff is now preparing background and supporting information for the Legislative Agenda and possible legislation. Preliminary discussions held with legislative staff members revealed a significant level of interest by some legislative offices to carry air quality legislation.

The AQMD’s authority relative to locomotives operating in the Alameda Corridor was discussed. Barbara Baird indicated she will explore whether the AQMD is restricted from taking action if an environmental issue is created due to pollution generated by vehicles at railroad crossings without underpasses or overpasses.

The Committee also discussed whether the AQMD has the authority to require the use of low-sulfur diesel fuel in locomotives operating in the Alameda Corridor. The use of low-sulfur diesel fuel in locomotives would be a direct emission benefit associated with particulates and Oxides of Sulfur (SOx) emissions that contribute to fine particulate downwind. Information recently provided to the AQMD from CARB indicates that locomotive emissions have been targeted for further emission reductions. This may provide an opportunity to address the issue of diesel reductions in the Alameda Corridor in the upcoming Air Quality Management Plan revision. Chair LaPisto-Kirtley asked staff to explore the possibility of requiring low-sulfur diesel fuel in locomotives operating in the Alameda Corridor.

The Committee also discussed the possibility of requiring low-sulfur fuel in marine vessels. The City of Los Angeles is now trying to have marine vessels cold-iron when they are in port, basically shutting down their boilers and engines and using shore-side electricity. The AQMD has offered to provide technical assistance to the Ports and may be able to adopt an emissions reduction credit rule whereby if the Ports go forward with the cold-iron proposal there would be an opportunity to generate emission reduction credits. The Ports are currently designing a pollution reduction plan for port activities and have committed to reducing pollution by capping emissions at current levels and further reducing emissions. The AQMD may have an opportunity to discuss the use of low-sulfur fuel in marine vessels as part of the Port’s pollution reduction plan.

The California Air Pollution Control Officers Association (CAPCOA) recently held a series of meetings with the Governor’s office, the Legislative Analyst’s Office, and the Department of Finance to discuss state subvention to air districts. The meetings were timely and the information was well received.

The Governor’s $10 billion Budget Reduction Plan has identified public safety as being outside the area of cuts the Governor would entertain and air districts escaped, for now, further cuts to state subvention. That, however, doesn’t guarantee that there won’t be any cuts directed at welfare and protection programs. There is a desperate search for alternative funding sources and redirection of special fund dollars may be considered. The Motor Vehicle Account is a special fund and also the source of air district subvention funding. The next key Budget milestone is the release of the Governor’s proposed 2003-04 Budget on January 10.

The Assembly has formed a special Budget Committee during the Governor’s special legislative session and expects to hold informational hearings in mid-December. Assemblywoman Fran Pavley (D-Agoura Hills) will chair the subcommittee devoted to environmental protection. Members of the subcommittee also include Assemblyman Tom Harman (R-Huntington Beach), newly-elected Assemblywoman Cindy Montanez (D-Sylmar), and newly-elected Assemblywoman Lois Wolk (D-Davis), who is a former Yolo-Solano County APCD Board member.

Lastly, staff briefed the Committee on an effort through CAPCOA on a provision in federal law for Title V permits. Under state law, farm equipment is exempt from air district permits. However, the U.S. EPA has decided that this equipment is subject to a Title V permit and hence, air districts cannot violate state law and issue these federal permits. The federal government has now started a sanction clock. The first sanction would occur November, 2003. This could have a significant effect on businesses and so the farm industry has approached CAPCOA to cosponsor legislation to amend existing state law to address this Title V issue and avoid sanctions. Concurrently, the farm industry is challenging the federal government on whether these federal permits are required for their operations. An urgency measure would be needed to ensure no lapse in time between legislative approval and the first mandatory sanction next November. A united front of air districts, farm interests and other trade associations could significantly benefit the effort.

Other Business/Public Comment

Chair LaPisto-Kirtley suggested that a request be made to the Administrative Committee to have the AQMD Advisory Groups submit a list of their accomplishments for 2002 to the AQMD Board. The motion was unanimously approved and was subsequently discussed at the December Administrative Committee meeting held the same day.

Attachments

  1. Attendance Roster
  2. Federal Year-End Legislative Report

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