BOARD MEETING DATE: September 5, 2003
AGENDA NO. 22

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, August 8, 2003. The next legislative Committee meeting is scheduled for Friday, September 12, 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 August 8, 2003. Present by videoconference were Committee Chair Bea 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]

Oscar Abarca, Assistant DEO/Public Affairs, reported that Congress is currently on summer recess and will return after Labor Day. Before adjourning for recess, the Senate passed the Energy bill from last session, S. 517 in place of the Energy bill that was introduced earlier this year, S. 14. The bill will now be considered in Conference Committee with the House Energy bill, HR 4.

Senators John Edwards (D-North Carolina) and Joe Lieberman (D-Connecticut) attempted to include in the Senate Energy bill an amendment that would have prevented U.S. EPA from forcing states to implement the New Source Review rollback unless the U.S. EPA could prove that the air would become cleaner, not dirtier. The amendment was not added but could be offered again in Conference Committee. Staff will monitor and report back to the Committee.

Sacramento Update and Update on the California Budget and Funding of AQMD Programs [Attachment 3]

Allan Lind, AQMD State Legislative Representative, reported that the Legislature passed and the Governor signed the state budget with air district subventions and Carl Moyer Program funding intact. The Budget is predicated on increased revenues from a number of fee increases for which there is no statutory authority. The Legislature will need to pass budget trailer bills when they return from recess in order to increase some of these fees.

Staff continues to work with the authors and sponsors on two very important pieces of legislation: SB 288 (Sher) and SB 700 (Florez)

SB 288 would create the New Source Review Restoration Act to prevent any backsliding with respect to the actions taken by U.S. EPA on New Source Review. Staff reported that the Board adopted a Support in Concept position and directed staff to work with the author and sponsors of the bill. The general portions of the bill are consistent with the Board’s litigation against U.S. EPA relative to New Source Review. However, the bill continues to have citizen suit provisions and staff and the business community continue to have concerns on how these provisions might be used. Staff has indicated to the sponsors that the AQMD will have to change to an Oppose position unless these provisions are removed from the bill.

SB 700 seeks to address the current exemption in the California Clean Air Act for agricultural sources. Staff believes some provisions in the bill are good, such as requiring best available control measures for particulate control at agricultural sources. One remaining provision, however, could subject all farms to the New Source Review Program. This provision would essentially require that 1) a new farm obtain offsets and, in the South Coast Air Basin, particulate offsets are $25,000 per pound; and 2) the AQMD would then be in the offset business for agriculture and could not ensure that offsets are real, quantifiable and permanent.

CAPCOA presented a proposal to the sponsors of SB 700 that would accomplish the initial goal of the bill and the sponsors indicated they are willing to work within the framework that CAPCOA recommended, but stated they would like to "tighten" the language. CAPCOA is awaiting a response from the sponsors. If this issue is not resolved, staff intends to change to an Oppose position when the bill is considered in the Assembly Appropriations Committee on August 20.

The Legislature will reconvene from summer recess on August 18 and will continue to meet on legislation until September 12 when they recess for the year. The Appropriations Committees will meet the last two weeks in August and then the respective houses will meet to pass bills during the first two weeks in September. The Governor will then have 30 days to sign or veto bills.

Assemblywoman Fran Pavley has invited the AQMD to speak at an informational hearing being hosted by her Assembly Select Committee on Air and Water Quality on August 19. The hearing is intended to address the costs of air pollution and what types of investments will be needed to deal with those costs.

Public Comment [Attachment 4]

John Billheimer, Enviro-Reality, commented that he has provided a preliminary listing which shows how VOCs, NOx, and PM10 inventory may be decreased in magnitude as related to the AQMP. He added that SB 656 (Sher) makes reference to stationary, mobile and area sources with regard to PM10, but is unclear as to whether stationary is limited to point sources or includes area sources. [Please see Attachment 4 for further details.]

Other Business

The Legislative Committee discussed switching their meeting time to 8:00 a.m. beginning in September. The Committee members present agreed to the time switch and asked staff to poll the other committee members.

Attachments

  1. Attendance Roster
  2. 2003 Federal Legislative Status Report
  3. 2003 State Legislative Status Report
  4. Handout by John Billheimer

/ / /