BOARD MEETING DATE: May 2, 2003
AGENDA NO. 25
Legislative Committee
SYNOPSIS:
The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
AB 1500 (Diaz) – Petroleum Pollution Cleanup and Prevention Act
of 2003
SB 207 (Ackerman) – Gasoline Vapor Emission Control Systems
SB 656 (Sher) – Particulate Matter
SB 700 (Florez) – Agricultural Operations
RECOMMENDED ACTION:
Approve the positions recommended below.
Beatrice J.S. LaPisto-Kirtley, Chair,
Legislative Committee
Attendance
The Legislative Committee met on April 11, 2003. Present were Committee Vice-Chair Jane Carney and by videoconference Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich and Roy Wilson. Committee member William Burke was unable to attend. [Attachment 1]
Washington Report/Update
Lynn Jacquez, AQMD Federal Legislative Representative, reported that Congress has been busy debating a 2003 Budget resolution. The Budget resolution needs to be passed by April 15 per statute so the Appropriations process can begin. The resolution will allow the House and Senate to pass two different levels of tax cuts that can then be reconciled.
The House and Senate have both introduced Energy bills, which have provisions for alternative fuels, tax credits, requirements for renewable fuels and hydrogen research and development. The Senate Energy and Natural Resources Committee is currently marking up provisions of the Senate Energy bill pertaining to hydrogen research and development. The bill, which has not yet been numbered, authorizes $1.3 billion over five years for research and development on storage and delivery of hydrogen fuel and $1.6 billion for demonstration and commercialization of hydrogen fuel vehicles and stationary fuel cells, including $50 million per year for vehicle demonstration programs. It is important to understand that these are only authorizations and do not translate into actual funding unless there is a budget request or appropriations attached to it.
Sacramento Update [Attachment 2]
Allan Lind, AQMD State Legislative Representative, reported that the budget crisis remains the most dominant issue facing the Legislature. This may create complications for some legislation because Legislators are exercising caution on any legislation that increases a fee or affects revenue generally in the state. Budget hearings are being held causing Legislators to make some tough decisions on where to make the necessary budget cuts.
Efforts continue on the AQMD’s two sponsored bills: SB 981 and AB 1063. SB 981 by Senator Soto will have its first hearing on April 21 in the Senate Environmental Quality Committee. Advance work has been done with the committee members and staff, as well as some allies, and the author has received a number of support letters. The opposition’s main concerns are that SB 981 will have economic impacts on the petroleum industry and they question the need for addressing the problems identified in the bill, as well as the nexus being established. If SB 981 passes the Senate Environmental Quality Committee, the bill will then go to the Senate Revenue and Taxation Committee and could be heard on April 30.
AB 1063 by Assemblyman Firebaugh is also scheduled for hearing on April 21 in the Assembly Transportation Committee. Recent amendments to AB 1063 will encourage the U.S. EPA and CARB to take steps that are within their authority to reduce certain emissions in the South Coast Air Basin in a timely manner. With respect to U.S. EPA, if the U.S. EPA is unable to impose emission controls on railroads and vessels in the ports within a specified time period, then the AQMD would be authorized to impose a mitigation fee on these sources. However, if U.S. EPA regulates such sources then that would obviate the need for the AQMD to impose a fee. The AQMD Governing Board would be allowed to set a fair share emission reduction target for these source categories that are under the control of the federal government. If the federal government achieves the necessary emission reductions, then there will be no need for the mitigation fee.
Similarly, AB 1063 would also authorize the AQMD to adopt rules and regulations for the retrofit of heavy-duty diesel engines operating primarily within the South Coast Air Basin if CARB did not adopt statewide retrofit rules by a certain date. The retrofit of diesel engines would pertain to both on- and off-road sources and would apply to particulate and NOx emissions from heavy-duty engines, including construction equipment. These provisions stem from the Governing Board’s interest during the development of the fleet rules to require particulate trap retrofits if the technology was feasible and cost effective.
Other Legislation:
AB 740 (Pavley), which would create a bond measure for clean air, water and coastal protection, passed its first committee. The AQMD has a Support position.
Assemblyman Koretz has decided to drop his bill, AB 854, in deference to AB 998 (Lowenthal). Both bills place a fee on perc to create funding for dry cleaners to transition to cleaner alternative processes, but AB 854 also required the phaseout of perc by 2014, which differs from the AQMD’s phase out date of 2020. AB 998 is moving forward and passed its first committee hearing.
Executive Summary for Report to the Legislature on the Regulatory Activities of the South Coast Air Quality Management District for Calendar Year 2002
[SB 1928 Report] [Attachment 3]
Staff reported that the AQMD is required to submit an annual report to the Legislature on regulatory activities of the preceding calendar 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 Audit Report. The Executive Summary was provided as an information item only. The full report is a separate agenda item on the May Board agenda.
Recommended Positions on Legislation
Staff provided analyses and position recommendations on four bills. A brief description of each bill is provided below. A motion was made to add to the agenda, as an urgency item, AB 1500 (Diaz). The need for immediate action on this measure came to the attention of staff after posting of the meeting agenda. The Legislative Committee unanimously added AB 1500 to the agenda for consideration. [Attachment 4]
| Bill/Title | Recommended Position |
| SB 207 (Ackerman) – Gasoline Vapor Emission Control Systems | OPPOSE |
| SB 352 (Escutia) – Sources of Pollution at Schools | Pulled from consideration |
| SB 656 (Sher) – Particulate Matter | SUPPORT |
| SB 700 (Florez) – Agricultural Operations | SUPPORT w/Amendments |
| AB 1500 (Diaz) – Petroleum Pollution Cleanup and Prevention
Act of 2003 |
SUPPORT |
SB 207 (Ackerman) would provide that any defect or malfunction of a certified gasoline vapor emission control system will not be considered a major violation of any air pollution regulation if, after detection, the defect or malfunction is corrected within 21 days. Under existing law CARB is required to certify gasoline vapor recovery systems in cooperation with air districts. In turn, the air districts are required to ensure compliance. SB 207 states that if a violation is detected the operator would be given 21 days to correct the deficiency before a Notice of Violation could be issued, effectively removing any incentive on the part of service station operators to comply with vapor recovery regulations. This could risk unwarranted exposure to toxic emissions for service station customers. This source category is one of the South Coast Air Basin’s largest Volatile Organic Compound (VOC) source categories and it has been one where there have been problems in achieving the necessary emission reductions. Staff believes SB 207 would completely undermine the AQMD’s enforcement efforts and recommends Oppose. The Legislative Committee adopted staff’s recommendation to Oppose SB 207.
SB 352 (Escutia) would allow schools to use their modernization funding for the investigation and control of air quality problems that may result from a school residing near freeways or other significant air pollution sources. Schools would also be allowed to use their maintenance account funds to purchase and install air quality control systems and filters and would prohibit the siting of a school within 1,000 feet from a freeway or busy roadways unless certain conditions are met.
Chair LaPisto-Kirtley asked that consideration of SB 352 be held over to allow additional time to explore the provisions of the bill to ensure that school districts would not be burdened in trying to build schools. The Legislative Committee unanimously agreed to delay consideration of SB 352.
SB 656 (Sher) would require CARB to identify a list of all readily available, feasible and cost-effective control measures to reduce PM 10 and PM 2.5 emissions from new and existing stationary and area sources, as well as from diesel-powered engines in stationary and mobile applications. CARB and air districts would be required to adopt implementation schedules for the measures, and strive to reduce emissions to the maximum extent feasible. Currently, when CARB adopts measures for ozone they develop a suggested control measure for air districts to implement or achieve through alternative means. The intent of SB 656 is to begin a statewide process to develop prototype control measures for particulate because existing state law does not have the same level of planning requirements and effort by CARB for particulate matter that exists for ozone precursors. Staff believes SB 656 is necessary for the AQMD to achieve federal attainment deadlines. Staff recommends Support and seeks direction from the Board to offer the resources of the AQMD to work out the details of the bill. The Legislative Committee adopted staff’s recommendation to Support SB 656 and work with the author on the details of the legislation.
SB 700 (Florez) would remove the "agricultural exemption" from State statute and would compel air districts to adopt rules or regulations that require each agricultural stationary source to obtain operating permits required by the federal Clean Air Act for stationary sources. As presently drafted, the bill would require agricultural sources to obtain their permits by January 1, 2005. Staff is proposing an amendment that would require agricultural sources to only apply for the necessary permits by this date. The change would make the bill consistent with U.S. EPA’s proposed timeframe and allow air districts to issue the permits consistent with that timeframe. SB 700 would also require air districts to adopt best management practices for use by agricultural operations. Staff is seeking an amendment in order to allow air districts to adopt such standards after January 1, 2005. Given the lack of technological information available on permitting of agricultural operations, this amendment would allow air districts to adopt such standards by January 1, 2005, and after, as further technological information is obtained. Staff recommends a Support position with amendments outlined above.
Senator Florez is from the San Joaquin Valley and initially introduced ten bills related to air pollution control and air quality improvement. Given the Senator’s concerns about the high air pollution levels in the Central Valley, the Senator has requested information on the South Coast AQMD’s programs. SB 700 is helping to correct the need to change state law to come into compliance with the federal Clean Air Act and avoid 2:1 offset sanctions that are otherwise going to take effect at the end of November. The Legislative Committee adopted staff’s recommendation to Support SB 700 with amendments outlined above.
On a related issue, the U.S. EPA is expected to publish a regulation that will become final, without further action, after the comment period closes. The regulation will take a series of agricultural engines, specifically water pumps, and reclassify them from stationary sources to mobile sources provided that farmers avail themselves of federal grant dollars to cleanup the engines. These engines will then be removed from AQMD authority for future control. Staff will analyze the Federal Register publication on the regulation and report back to the full Board.
AB 1500 (Diaz) would place a $1 fee on each barrel of crude oil received at a refinery in California to provide funding for a variety of programs to reduce air emissions, remediate groundwater contamination and "brownfields," and fund public transit programs.
AB 1500 is similar to SB 981 (Soto). The most significant difference is that AB 1500 specifies programs that can be funded and earmarks portions of the revenue for specific types of programs. One of the largest set asides would be for public mass transportation. AB 1500 also proposes to provide about $100 million for the Carl Moyer and Lower-Emission Schoolbus Replacement programs, consistent with the Board’s past desires to have an ongoing funding source for these programs. Staff believes AB 1500 is worthy of the AQMD’s support. The Legislative Committee adopted staff’s recommendation to Support AB 1500.
Other Business/Public Comment
None
- Attendance Roster
- 2003 Legislative Status Report
- Executive Summary for Report to the Legislature on the Regulatory Activities of the AQMD for Calendar Year 2002
- Recommended Positions on Legislation
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