BOARD MEETING DATE: July 11, 2003
AGENDA NO. 25

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
AB 1214 (Firebaugh) – Net Energy Metering for Fuel Cells
AB 1468 (Pavley) – Negative Air Machines; Asbestos Removal
SB 352 (Escutia) – Sources of Pollution at Schoolsites

RECOMMENDED ACTION:

Approve the positions recommended below.

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


Attendance

The Legislative Committee met on June 13, 2003. Present by videoconference were Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich and Roy Wilson. Committee Vice-Chair Jane Carney and Committee Member William Burke were unable to attend. [Attachment 1]

Washington Report/Update [Attachment 2]

Lynn Jacquez, Jeff Shockey and Michael Kubayanda, AQMD Federal Legislative Representatives, reported that the Senate continues to debate issues related to the Energy bill. To date, only the sections addressing renewable fuel standards and loan guarantees for the nuclear industry have been approved. An amendment introduced by Senator Dorgan and passed by the Senate will require the Department of Energy to meet certain targets for the deployment of hydrogen fuel cell vehicles. The Senate expects to conference its Energy bill with the House bill before the congressional summer recess.

A letter has been sent to the Department of Energy from House members requesting funding for hydrogen fuel projects in the South Coast Air Basin. The letter was signed by four Congressional members and sent to Secretary Abraham. An effort is now underway to have a similar letter sent from Senators Feinstein and Boxer.

The federal Appropriations process for Fiscal Year 2004 is now beginning and the various subcommittees are starting to do bill markups. The AQMD’s funding requests through the Department of Defense and the Department of Energy will continue to be monitored. The subcommittees are working to pass Appropriations bills before the summer recess.

Congress is beginning work to draft a new surface transportation bill to replace the current law, the Transportation Equity Act of the 21st Century (TEA-21), which expires September 30. In May, the Bush Administration released its Reauthorization proposal, called the Safe, Accountable, Flexible and Efficient Transportation Equity Act (SAFETEA). SAFETEA was introduced at the Administration’s request by the leaders of the House Transportation Committee (HR 2088) and the Senate Environment Committee (S 1072). The House Transportation’s Infrastructure Committee Chairman Don Young (R-Alaska) is expected to introduce his own Reauthorization bill in July that is expected to include an increase in the federal gas tax. As introduced, SAFETEA would increase funding for the Congestion Mitigation Air Quality (CMAQ) program to $8.8 billion, compared to $8.1 billion in TEA-21. This program helps states meet federal air quality standards by funding projects that reduce traffic congestion and automobile emissions. Projects typically funded through the CMAQ program include public transit initiatives, traffic flow improvements, ridesharing incentives for bicycle and pedestrian traffic and alternative fuel conversions. The CMAQ program has received criticism in the past and Congress is expected to change the program as part of Reauthorization process.

Sacramento Update [Attachment 3]

Allan Lind, AQMD State Legislative Representative, provided an update on legislation of importance to the AQMD. The AQMD’s sponsored bills, SB 981 (Soto) and AB 1063 (Firebaugh) are currently being held in committee. Opponents of the two measures have offered to work with the AQMD to explore alternatives to achieve similar policy outcomes as prefaced in the bills.

The State Budget Conference Committee is currently at an impasse and the Legislative leadership and the Governor have been meeting in an attempt to work out the larger budget issues. State subvention for air districts remains constant. However, a proposal by the State Legislative Analyst to increase CARB stationary source fees above what the Legislature approved earlier this year has been passed by the Senate, but was defeated in the Assembly. The conference committee remains at an impasse on this issue, as well as on many other fee issues.

Below is an update on other legislation the AQMD is actively following:

AB 998 (Lowenthal), which places a fee on perchloroethylene to fund a transition grant program for dry cleaners, passed the Assembly and is now in the Senate awaiting committee assignment.

SB 288 (Sher), which would create the New Source Review Restoration Act of 2003, passed the Senate and has been referred to the Assembly Natural Resources Committee.

SB 656 (Sher) would require CARB to identify all readily available, feasible and cost-effective measures that could be implemented to reduce Particulate Matter emissions from stationary sources and from mobile and stationary diesel engines. SB 656 passed the Senate and has been referred to the Assembly Natural Resources Committee.

SB 700 (Florez), which addresses the current agricultural exemption in the California Clean Air Act, passed the Senate and is now in the Assembly awaiting committee assignment.

Recommended Positions on Legislation

Staff provided analyses and position recommendations on legislation. A brief description of each bill is provided below. [Attachment 4]
 
Bill/Title Recommended Position
AB 1214 (Firebaugh) – Net Energy Metering for Fuel Cells SUPPORT & seek amendments
AB 1468 (Pavley) – Negative Air Machines; Asbestos Removal SUPPORT & seek amendments
SB 352 (Escutia) – Sources of Pollution at Schoolsites SUPPORT & seek amendments

AB 1214 (Firebaugh) creates an incentive for fuel cell technology. Currently, existing law establishes net metering programs for solar and wind systems and biogas digester energy systems. AB 1214 creates a similar pilot program for net energy metering of energy created using fuel cells. In order to establish net metering of energy generated using fuel cells, AB 1214 requires every electrical corporation to file a standard tariff with the Public Utilities Commission, prohibits the imposition of any additional charge to fuel cell customers that is not imposed upon other customers, and sets certain requirements for eligible fuel cell customer generators. Staff recommends a support position with amendments to clarify the language regarding "eligible stationary fuel cell customer-generators." The bill currently defines the eligible customer as a customer with a facility in a community with the "most significant" exposure to air contaminants.

Staff believes that the use of the phrase "the most" creates ambiguity, and there is concern that a utility may use this to find that certain units are not eligible.
ACTION: The Legislative Committee adopted staff’s recommendation to Support AB 1214 and work with the other on amendments to clarify the bill’s language.

AB 1468 (Pavley) would require a monthly leak test on negative air machines used in asbestos removal projects. Negative air machines are designed to capture asbestos fibers and provide adequate air changes for ventilation and worker safety within an abatement project enclosure. At the time of manufacture, the high efficiency particulate matter (HEPA) filter used with negative air machines is tested and must be at least 99.97 percent efficient. However, at this time no subsequent testing is required to guarantee that the filter will continue to operate at the certified efficiency. AB 1468 will require monthly testing to ensure efficiency and will require that certification be affixed to the unit and also maintained by the owner/operator. Air districts would be required to enforce the testing and certification requirements. The provisions of AB 1468 are consistent with the current practices of the AQMD regarding negative air machines. Staff recommends support for AB 1468 and suggests amendments for consideration by the author to 1) establish a statewide procedure for conducting the leak test and 2) include additional information in the certification documents. Staff has had preliminary discussions with the author’s office and the author is very receptive to the AQMD’s input on this bill.
ACTION: The Legislative Committee adopted staff’s recommendation to support AB 1468 and suggest amendments to the author as described above.

SB 352 (Escutia) states that a project, which involves the acquisition of a schoolsite or construction of a new elementary or secondary school, may not be approved by a school district if the project is within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor unless a health risk analysis determines that there are not any significant acute or chronic health risks to pupils or staff. The bill also requires school districts, when applying for modernization funds, to certify that it has considered the potential for adverse health impacts due to degraded air quality that could result from being within 500 feet of the edge of the closest traffic lane of a freeway or other busy traffic corridor.

SB 352 was first brought to the Legislative Committee for consideration in April. At that time, the Committee asked that consideration be delayed until May. At the May meeting the Committee asked staff to quantify the effects of recent bill amendments that relaxed the school siting requirement from 1,000 to 500 feet.

Pursuant to direction at the May Legislative Committee meeting, staff prepared an analysis that considered the effects of "relaxing" the school siting requirements. The analysis indicates that cancer risks initially drop off rapidly in the first 500 feet but the decrease is much more gradual at distances beyond 500 feet. In addition, the analysis shows that cancer risks are reduced by more than 68 percent at 500 feet and by over 81 percent at 1,000 feet.

At this time, staff continues its recommendation to support SB 352 and seeks direction from the Board to work with the author on amendments to include Caltrans and the local transportation management agencies in discussions with regard to identifying potential sources of pollution and in order to determine the types of intended analyses to be used in determining "significant acute or chronic health risks."
ACTION: The Legislative Committee adopted staff’s recommendation to support SB 352 and work with the author on amendments to address AQMD’s concerns.

Other Business/Public Comment

None

Attachments

  1. Attendance Roster
  2. 2003 Federal Legislative Status Report
  3. 2003 State Legislative Status Report
  4. Recommended Positions on Legislation

/ / /