BOARD MEETING DATE: July 8, 2005
AGENDA NO. 24

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving positions:
 
Bill/Title

Recommended
Position

SB 109 (Ortiz) Air Pollution: Minor Violations: Stationary Sources: Prosecution of Violations

Support

SB 467 (Lowenthal) Carl Moyer Air Quality Attainment Program

Support*

SB 578 (Escutia) Railroads: Safety

Support, if amended*

SB 757 (Kehoe) Oil Conservation, Efficiency, and Alternative Fuels Act

Support in concept*

SJR 13 (Escutia) Railroad Safety

Support with amendments*

HR____ (Cox) Hydrogen Highways Green Light Act

Support in concept*

*This reflects the concurrence of those committee members who were present.

RECOMMENDED ACTION:

Receive and file this report and adopt positions on the bills as specified in this letter.

Jane Carney, Vice-Chair
Legislative Committee


Attendance [Attachment 1]

The Legislative Committee met on June 10, 2005. Present were Vice-Chair Jane Carney (who served as Chair of the Committee). In attendance via telephone conference was Committee Member S. Roy Wilson. In attendance via videoconference was Committee Member Michael Antonovich. Absent were Chair Beatrice LaPisto-Kirtley, and Committee Members, Gary Ovitt and Jan Perry.

Recommended Positions on Bills [Attachment 2]

AB 158 (Bermudez) Railroads: Safety Study:
This has become a two-year bill. The committee did not take a position.

SB 109 (Ortiz) Air Pollution: Minor Violations: Stationary Sources: Prosecution of Violations
This bill would allow a criminal prosecution for certain air pollution offenses, despite the recovery of civil penalties for the same offense, and would allow a civil action for certain offenses to proceed, despite the filing of a criminal complaint for the same offense.

This bill would also extend the requirement that the state board and each district adopt a regulation or a rule that classifies certain violations as minor, for six more years, until January 1, 2012.

Staff is seeking a support, if amended position. The amendments would narrow the bill to refer only to the more egregious violations and to add language that would eliminate the bar on civil prosecution if there was a criminal case.

Ms. Carney asked if these recommendations are considered critical, and if the two proposals that were provided in staff’s original analysis should not be considered optional. Dr. Wallerstein replied that staff’s recommendations in the analysis provided at the meeting would be dropped, for a support position.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT SB 109.

SB 467 (Lowenthal) Carl Moyer Air Quality Attainment Program
This bill would make a modification to the Carl Moyer Program to enhance the eligibility of non-road engines (electric engines and electric vehicles such as forklifts) to qualify for Carl Moyer funding. These electric engines and vehicles would need to meet the cost-effectiveness criteria of the Carl Moyer Program. Barbara Baird, AQMD legal counsel, explained that Federal law defined non-road engines as those which are neither used on roads, nor are stationary sources. This bill has passed the Senate on a vote of 34 to 1.

Those Committee Members present concurred with staff’s recommendation to SUPPORT SB 467.

SB 578 (Escutia) Railroads: Safety
This bill would require railroad corporations to notify the Office of Emergency Services (OES), the California Highway Patrol, and designated county public safety agencies when there is a runaway train or uncontrolled train movement that threatens public health and safety.

Staff is recommending a support with amendments that would require the OES to also notify air districts of similar emergencies. This notification would be in parallel to existing OES emergency response, following notification to first responders,and would allow the air districts to be better prepared with their equipment to respond to an emergency if there is a release of air contaminants.

Those Committee Members present concurred with staff’s recommendation to SUPPORT WITH AMENDMENTS SB 578.

SB 757 (Kehoe) Oil Conservation, Efficiency, and Alternative Fuels Act
This bill, also known as the "Petroleum Demand Reduction Act," would establish a state policy requiring all state and local agencies to adopt regulations requiring private and public vehicle fleets to purchase and use alternative fuel vehicles. It would also require public and private fleet operators to use alternative fuel vehicles and advanced transportation technologies, where technologically feasible and cost-effective, to reduce petroleum use.

Ms. Carney expressed concern with staff’s support recommendation because she felt that this bill was beyond staff’s expertise could be seen as outside the agency’s purview.

Dr. Wallerstein replied one example within AQMD’s purview would be that the California Air Resources Board (CARB) will be bringing a measure to their Board dealing with transit bus operations and dual -paths, if the emissions comprise of cleaner diesel and alternative fuel paths are equivalent. He added noted that history has shown over the years that a diesel path is not not in fact equivalent to the an alternative fuel path. In the past CARB has rolled back this requirement. For these reasons staff believes this is a healthy legislative proposal.

Mike Wang, Western States Petroleum Association, testified that his organization is in opposition to this bill. They maintain that the coming energy shortage is due to growth, and they are seeking to sustain petroleum use. They agree with the use of alternative fuels, the promotion of energy diversity, and the use of other sources of fuel; but not necessarily some at the expense of the others.

Greg Adams, Los Angeles County Sanitation District, questioned how this would impact Best Available Control Technology (BACT) policy. BACT policy requires the lowest possible emissions from a piece of equipment as opposed to an emphasis on energy efficiency.

Dr. Wallerstein replied that he did not see any problems and that AQMD does have some regulations that utilize energy efficiencies as part of the calculations in the emissions standard settings. He added that by supporting this bill in concept others could work out further details.

Those Committee Members present recommended to SUPPORT IN CONCEPT
SB 757.

SJR 13 (Escutia) Railroad Safety
This resolution would urge the President and the Congress of the United States to amend the Federal Railroad Safety Act to increase the authority of state and local governments for railroad safety regulations, as long as they do not conflict with Federal law, nor impose an unreasonable burden on interstate commerce.

Staff recommended a support position with an amendment to include the Federal Railroad Administration’s consideration of environmental health and safety issues in addition to operational and equipment safety concerns when granting authority to California officials to adopt standards.

Those Committee Members present concurred with staff’s recommendation to SUPPORT WITH AMENDMENTS SJR 13.

HR____ (Cox) Hydrogen Highways Green Light Act
This bill has not been formally introduced. This bill would, under the Federal Solid Waste Disposal Act, require a study to determine if there are any adverse health effects from the byproduct (sodium borate) of chemical hydride (hydrogen) generators. It would also preclude state and local government from imposing greater restrictions on hydrogen transportation than what is currently imposed on gasoline.

Dr. Ganguli reported that Congressmember Cox had approached Chairman Burke for assistance with this bill. Staff has analyzed the bill’s concept and would like to support it, however, there are a number of small items that need to be clarified. Staff recommended to support in concept and requested approval to work out details of the bill as it moves forward, with a goal to eventually co-sponsor this legislation.

Those Committee Members present concurred with staff’s recommendation to SUPPORT IN CONCEPT HR __ (COX).

HR 3 (Young) S 197 (Boxer) Rail Crossing Safety Act
This amendment by Senator Boxer, to HR3: the Federal Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2005 (SAFTEA), would establish a grant program to provide financial assistance for local rail line relocation projects.

Staff is seeking a support with amendments position to incorporate language in the bill to require consultation with local air districts when studies are conducted regarding the remediation of blocked highway-railroad grade crossings.

Dr. Ganguli added that this item was brought to this committee’s attention by Chairperson, Bea LaPisto-Kirtley after her recent visit to Washington. The amendment that staff is seeking relates to highway-railroad grade crossings because they have an air quality impact. The suggested language will ask the Secretary of Transportation to consult with the AQMD Governing Board when grade crossings are either funded or otherwise supported as part of the safety funding program.

Ms. Carney was concerned that AQMD could not support the study without supporting the funding. Lynn Jacquez, AQMD’s Washington D.C. legislative consultant, answered that it was a provision in the overall bill and said that it may be helpful to take single positions on a variety of the provisions that are in the overall bill, rather than highlight or single out one provision at this time. She said that they could come back with a list of specific provisions that AQMD would want to support in the overall bill.

Dr. Wallerstein asked Ms. Jacquez if that would be timely enough. Ms. Jacquez responded that they are currently in conference and things are moving. She added that it would be helpful to take a position on the study and the rail grade crossing act itself at this time, because she understood that AQMD would like to involve local air quality districts in consultations on any expenditure for grade separations and not necessarily rail relocations.

Dr. Wallerstein recommended to the committee that if issues were not resolved by the next Legislative Committee meeting on the broader bill, then a defined list of those provisions would be brought back for their consideration.

Those Committee Members present took no position.

Discussion of SB 225 (Soto) Carl Moyer Program [Attachment 3]
Dr. Wallerstein reported that negotiations for building a consensus on additional amendments to the Carl Moyer Program are occurring every two weeks. The business community representatives have proposed three concepts for funding. The first is to add a 1¢ surcharge per gallon on all gasoline purchases as discussed at last month’s meeting. The second concept is to place a fee at the ports on goods coming into the ports to mitigate air quality impacts of the port. The third concept is regarding potential funding sources for school buses.

Dr. Wallerstein referenced Senator Poochigian’s bill, SB 698, that proposed to take Proposition 98 money and allocate those funds for school bus replacements. However, that bill failed. The group discussed that although school money is not air quality money they should be doing something regarding air quality. The business community is asking that if we support these fees, there should be a provision in our Air Quality Management Plan looking at regulatory flexibility.

He added that there are several environmental justice groups which have expressed their concern on this proposal and staff is working to get them to the table to discuss their specific concerns and any possible remedies. Dr. Wallerstein explained that he recently received a letter from Joe Lyou, California Environmental Rights Alliance, who referenced the proposal as "environmental racism at its worst." Dr. Wallerstein said that staff would continue to move forward on AQMD’s commitment and would be writing a letter in response to Mr. Lyou. The next meeting will be reserved for environmental groups and others so that they can discuss their specific concerns.

Federal Report [Attachment 4]
Ms. Jacquez reported that they are continuing to work with Congressmember Solis’s office (who is working with Congressmember Waxman’s office) regarding a House Resolution on AQMD’s railroad policies.

Debate on the Energy Bill will be starting on June 13 with the Finance Committee working on their portion of the bill on June 14. This may go through the Senate within the next two weeks. They are working with staff and with Senator Feinstein’s office on the LNG facility siting provision. At this time there is nothing on the Senate side that is from the House, but they will seek positions of support and guidance once the conference starts.

With regard to the Interior Appropriations bill, Senator Bond is attempting to insert language that would preclude regulation on small engines, requiring a safety study. This study on potential fire hazards would have to be completed within six months. The additional language would allow for additional regulations at the state and local level, even if job losses occur. Once the bill is enrolled and is available in print she will provide it to AQMD.

Ms. Jacquez’s firm is continuing their work on the Senate Energy and Water Appropriations Committee. They continue to visit Senate offices, and Appropriations staff to remind them of AQMD’s hydrogen infrastructure request of $5 million.

The Transportation Bill has started conference activity and there are overall funding issues at this time. On AQMD’s behalf they are working with staff to put forward issues regarding local air quality district decision making, and the allocation and distribution of that money. At this time, there is an $11 billion difference between the Senate and House passed bills, but they are considering a compromise of cutting the difference in half and going forward. There is still a veto threat by the President, who has threatened to veto bills that go over the $284 billion level approved by the Administration.

Sacramento Report [Attachment 5]
Senator Richard Polanco (Ret.), AQMD’s Sacramento consultant, prefaced his update by thanking Board Members, Dr. Wallerstein, Oscar Abarca, and AQMD staff who made themselves available and provided resources to communicate an effective message regarding AQMD bills.

SB 459 (Romero) Locomotive Emissions Mitigation
This bill has passed the Senate with 22 aye votes and 15 no votes. Opponents to this bill are California Chamber of Commerce, California Railroad Industry, California Trade Coalition, California Taxpayer’s Association and the Engine Manufacturers Association. This is the most difficult bill of the three AQMD sponsored bills. AQMD had a broader coalition of support and provided a more effective message which enabled this bill to get out of the Senate. He also said that Senator Romero, her staff, AQMD staff and the solicited community support made this bill a model on how to move difficult legislation.

AB 888 (De La Torre) Railyard Emission Reduction Bill
This bill passed the Assembly with 42 Ayes. This was difficult to achieve because at the time the bill was introduced there were 21 members not voting. A It was a significant developmentlot of people were surprised that they were able to get the bill out of the Assembly. This was a stellar job in terms of working together with all the right components in unison and that moved this bill out of the Assembly. Dr. Wallerstein added that this was a remarkable job because we had been lacking the necessary votes and now CARB has given their formal opposition to the bill. He also commented that he is still hopeful that railroad operators will come to the table.

AB 1222 (Jones) Remote Sensing
This bill has passed out of the Assembly with 54 Aye votes. For all intents and purposes, a compromise has been worked out.

Other Business: None

Public Comments: Included under pertinent topic.

Attachments (EXE 5.9mb)

  1. Attendance Roster
  2. Recommended Positions on Bills
  3. Discussion on Bills
  4. Federal Report/Update
  5. Sacramento Report/Update

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