BOARD MEETING DATE: June 3, 2005
AGENDA NO. 30

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
 

Bill/Title	Recommended Position
SB 419 (Simitian) Ultrahazardous Waste Transportation: Railroad Tank Cars	Support with amendments
SB 475 (Runner) Air Pollution: Stationary Sources: Emissions Reductions: Banking	Support as amended
SB 975 (Ashburn) Air Quality Biodiesel Fuel	Oppose

RECOMMENDED ACTION:

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

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

Attendance [Attachment 1]
The Legislative Committee met on May 13, 2005. Present were Vice-Chair Jane Carney and in attendance via videoconference were Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich, Jan Perry, and Roy Wilson.

Recommended Positions on Three Bills [Attachment 2]
Three state bills were presented for which the committee recommended positions. Oscar Abarca, Assistant Deputy Executive Officer, led the presentation.

SB 419 (Simitian) Ultrahazardous Materials: Transportation: Railroad Tank Cars
This bill would require the retrofit of both trucks and railcars with the best available safety equipment. Staff suggested an amendment to require that these vehicles be retrofitted for emission reduction purposes. Dr. Wallerstein said that staff believes this bill is consistent with the Board's past policies and direction to ensure that hazardous materials transported in the region are done so in the safest manner possible, including reducing any potential air quality and public health impacts.

The Legislative Committee unanimously approved staff's recommendation to SUPPORT WITH AMENDMENTS SB 419

SB 475 (Runner) Air Pollution: Stationary Sources: Emission Reduction Credits
Staff has had numerous discussions with the author regarding the original bill, and the author has agreed to significantly amend this bill to incorporate AQMD's recommendations. The amended bill will require the Mojave and the Antelope Valley Air Districts to work jointly with AQMD to conduct a study looking into methods and opportunities for generation and possible transfer of emission reduction credits to other air basins. Staff recommends a Support position, as amended.

The Legislative Committee unanimously approved staff's recommendation to SUPPORT SB 475, as amended.

SB 975 (Ashburn) Air Quality: Biodiesel Fuel
This bill would allow for the use of a mix of diesel, vegetable oil, and other products (biodiesel) in military vehicles.

Staff believes that this approach conflicts with CARB regulations and AQMD fleet rules.

Dr. Wallerstein reported that this bill puts forth a decision prior to an appropriate analysis being completed to fully determine whether biodiesel is less polluting. Staff is recommending an Oppose position.

The Legislative Committee unanimously approved staff's recommendation to OPPOSE SB 975

Discussion on Three Bills [Attachment 3]

AB 990 (Lieber) Toxic Substances: California Safer Chemical Substitutes Act of 2005
Dr. Wallerstein said that this bill would phase out the use of chlorinated solvents, which AQMD has been regulating, and codify their phase-out into law. He said that staff would not be making any recommendation on this bill at this time because he would like to allow staff sufficient time to complete analysis to ensure that nothing be codified into law without reviewing the Governing Board's adopted exemptions to rules due to special needs.

SB 757 (Kehoe)
Petroleum Demand Reduction Act
Mr. Abarca said that this bill would require Cal EPA, in consultation with CARB, the California Energy Commission and AQMD, to adopt recommendations and policies to increase the diversity of the state's transportation energy supplies consistent with the goal of increasing the use of non-petroleum fuels to 20% of on-road consumption by 2020. Staff will discuss with the author the need to ensure that there is a mechanism in place that would allow AQMD to recoup costs associated with developing recommendations.

SB 870 (Escutia)
Air Quality Violations: Nonvehicular Sources: Business Penalties
Dr. Wallerstein reported that there are two key principles to this bill. The first principle is to create a financial deterrent for chronic violators of air district rules and regulations; the second principle is to secure additional funding for air districts for additional enforcement. Dr. Wallerstein commented that this is an important bill and that staff has met with the author to discuss AQMD's concerns with the original bill, which would have taken penalty monies from AQMD and given 40% to CARB, 50% to fund a new program for asthma, and only 10% of the money for AQMD. He said that Senator Escutia's staff has expressed an interest in significantly amending the bill to address AQMD's, as well as other air districts’, concerns. He informed the committee that staff will continue to work with Senator Escutia's office to develop an amended bill that AQMD can support.

Update on Proposal to Modify the Composition of the AQMD Governing Board [Attachment 4]
Claudette Moody, consultant to South Bay Cities Council of Governments, provided the committee with a brief update on her review of the AQMD Governing Board western section seat and selection process. Of the two proposals that were shared with the committee, the first includes adding four additional members to the AQMD Governing Board (one additional municipal representative for each county in AQMD's jurisdiction). Within Los Angeles County, there would be a designated seat for the City of Los Angeles and a reconfiguration of the western sector seat to include the Cities of Malibu and Calabasas and other cities to be determined. The second alternative that has been proposed would be to reconfigure the Governing Board so that it resembles the Bay Area AQMD's Governing Board (doing away with appointees by the Governor, Assembly and Senate). Ms. Moody said that the South Bay Cities COG is in the process of preparing a matrix with several proposals, which would include these two. She also said that the League of California Cities - Los Angeles Division is also broadening its review to include the selection process for other boards within the Los Angeles County, not just AQMD's Governing Board.

Chair LaPisto-Kirtley commented that South Bay COG should proceed with caution because increasing the number of members according to city votes could possibly create a huge Governing Board.

Vice Chair Carney suggested that possibly the seats should be weighted relative to the amount of air pollution in the represented area.

Ms. Moody said that at this time, there are no proposals to be moved forward; South Bay COG is only in the discussion phase. She said that she will continue to update AQMD staff and committee members of South Bay COG’s progress.

Federal Report [Attachment 5]
Transportation Bill
Lynn Jacquez of Copeland, Lowery, Jacquez, Denton, and White reported that on May 12, the Senate voted to approve an amendment that would add $11 billion to the Transportation Reauthorization Bill (TEA-21), bringing the total amount of the bill to $295 billion. The increased funding allows for $8.9 billion more in authorized highway spending and $2.3 billion for transit. The White House has threatened to veto any version of the transportation bill that spends above the originally agreed upon level of $284 billion, but the Senate’s vote in favor of the amendment was large enough to override a Presidential veto.

The Senate will likely complete debate as soon as possible to provide time to iron out differences between the Senate and House versions of the bill in conference committee. AQMD will have another opportunity to address its concerns about the CMAQ program when the bill is in conference committee, which will hopefully coincide with the Legislative Committee Chair LaPisto-Kirtley’s visit to Washington, DC.

Energy Bill
According to Ms. Jacquez, the Senate Energy and Natural Resources Committee Chairman Pete Domenici (R-NM) has scheduled committee markups of the bill for May 17, 18 and 19, because he wants to move quickly on marking up the energy bill. Ms. Jacquez stated that it is unclear how this will affect the two provisions in the energy bill that are of interest to AQMD, the streamlined permitting of oil refineries and the approval process for the siting of liquefied natural gas (LNG) terminals. She said that these two issues were definitely live, meaning that they could be amended or removed at any time. Big differences are expected between the energy tax incentives offered in the House and Senate versions of the energy bill, and therefore Ms. Jacquez stated that this bill will probably not move until after Memorial Day.

Appropriations
The Energy and Water appropriations bill was marked up on May 12. Both of AQMD’s priorities for FY06 funding were submitted to the Energy and Water subcommittee. Ms. Jacquez reported that she spoke with Congressman Doolittle’s office, and that in terms of numbers and allocations, the bill was not good. She stated that she would continue to monitor and update AQMD as soon as information becomes available.

The Interior appropriations bill moved in the House on the week of May 6. That bill included U.S. EPA funding for the clean diesel program, which includes the West Coast Diesel Collaborative. The U.S. EPA’s budget request was $15 million, and the House approved $10 million for the West Coast Diesel Collaborative. Ms. Jacquez stated that funding for new programs is often hard to secure, therefore the $10 million that the West Coast Diesel Collaborative has earmarked so far is good. It is unclear what funding will be in the Senate version of this bill.

Finally, Ms. Jacquez stated that she had not yet heard back from Congresswoman Solis’s office regarding the Congresswoman’s offer to sponsor a House Resolution on AQMD’s railroad policies.

Sacramento Report [Attachment 6]
Jared Ficker, AQMD Sacramento consultant, reported on AQMD's three bills:

SB 459 (Romero) Locomotive Emissions Mitigation is expected to be voted on in a Senate floor session on May 19.

AB 888 (De La Torre) Railyard Emission Reduction Bill will be heard in the Assembly Appropriations Committee before the end of May. Mr. Ficker added that AQMD and California Strategies are working with the bill’s author, Assembly Member De La Torre, on some technical issues. He stated that CARB plans to release a rail yard equipment regulation in November.

AB 1222 (Jones) Remote Sensing is in the Assembly Appropriations Committee, which will decide on the bill by the last week of May. Before that happens, however, the bill may change substantially due to discussions between AQMD and the railroad industry. Currently, AQMD and the railroad industry have been exchanging language on a modified bill.

Dr. Wallerstein then added his comments about AQMD’s three bills. He said that on May 12, AQMD was able to secure concurrence from both the railroads and CARB on the content of AB 1222. He said that it will create a pilot study to be conducted by CARB and advised by an advisory group. The advisory group would consist of 14 members, 7 designated by the AQMD (including community members, technical experts, AQMD staff, as well as a representative from the Sacramento metro district) and 7 members designated from the railroad industry.

Dr. Wallerstein added that the new agreement would be that AQMD and the railroad industry split the cost of the bill, which was roughly $500,000. He added that there are many potential benefits of this type of study, and that similar project studies have been successful in the past.

Dr. Wallerstein then discussed technical issues with AB 888 that Mr. Ficker had referenced. He said that AQMD’s main issue with CARB’s regulation is that the regulation may not address the needs of the South Coast Air Basin. If that is the case, then AB 888 will allow AQMD to go beyond CARB’s regulation. Dr. Wallerstein reminded the Committee that the Governing Board has been requesting retrofit particulate control authority for rail yard engines for several years.

Dr. Wallerstein provided an update on the following five bills:

AB 1101 (Oropeza) Air Pollution: Diesel Magnet Sources
Dr. Wallerstein reported that this bill would require that diesel magnet sources (the largest ports, airports, railyards and warehousing operations) be brought into the AB 2588 Risk Assessment program. These diesel magnet sources would then be required to conduct a risk assessment, notification and risk reduction. Unlike the existing program, where there is a maximum of 10 years to meet the risk reduction threshold, this bill would give diesel magnet sources additional increments of time. Dr. Wallerstein reported that the bill moved out of the Assembly Transportation Committee and is currently in the Assembly Appropriations Committee’s "suspense file," but it may be moved out later in May.

Dr. Wallerstein added that there is a group of environmental justice activists that have expressed significant concerns about the risk assessment approach. Despite those concerns, Dr. Wallerstein stated that AB 1101 is a very good bill that could provide some meaningful analysis, public awareness and education, and ultimately risk reduction.

SB 109 (Ortiz) Air Quality Violations
Dr. Wallerstein reported that Senator Ortiz has not agreed to the AQMD’s proposed amendments to her bill. The bill is now in the Assembly Appropriations Committee’s suspense file; to move it again the author will need to narrow the scope of her bill. Specifically, if the bill was amended to remove the ban on civil and criminal penalties for only the most egregious and worst offenders, then Dr. Wallerstein would be prepared to come back to the Committee and recommend a support position on the bill.

AB 1430 (Goldberg) Air Contaminants
Dr. Wallerstein gave an update on this bill, which basically banned the use of credits, whether they were ERCs under New Source Review, RECLAIM trading credits under the cap and trade program, or the use of mobile-to-stationary credits. He reported that after a meeting between AQMD and the Environmental Safety and Toxic Materials Committee staff, the bill was narrowed down to only address the use of mobile source credits for stationary source purposes. He added that Assembly Member Goldberg's office has requested language from AQMD for amending the bill. He said that AQMD will discuss with Goldberg’s office some additional procedural steps or safeguards for AQMD to take when using mobile-to-stationary source credits. Also, Dr. Wallerstein noted that there is still a significant need to further discuss and modify AB 1430 so that it does not adversely affect AQMD programs.

AB 1220 (Jones) Air Quality: Portable Equipment Registration
Dr. Wallerstein reported that meetings and negotiations have taken place with the business community on this bill, and if a resolution is reached, this bill may no longer be necessary and CARB will move forward with a consensus-based rulemaking process.

SB 225 (Soto) Carl Moyer Program
Dr. Wallerstein stated that a major part of the discussion in the legislature this year has been about how to get additional funding for the Moyer Program, because last year's funding was characterized as a "down payment." He said that the business community representatives have proposed a concept to add a 1¢ surcharge tax per gallon on all gasoline purchases. The proceeds of this surcharge would then be used to fund the Moyer Program, which in turn funds on-road and off-road engine emissions clean-up. This concept proposal is in addition to the business community’s request for a community air quality benefits program. Dr. Wallerstein stated that if the committee is comfortable with AQMD participating in discussions on this concept, then he will proceed with the discussions. Chair LaPisto-Kirtley and Vice-Chair Carney agreed that discussions should continue.

Allan Lind, AQMD Sacramento consultant, reported that thus far AQMD has taken a position on over 45 bills, including three bills that AQMD is sponsoring. He added that AQMD staff has been tasked by legislative offices with rewriting amendments for one-half dozen other bills due to AQMD’s observations about their workability.

This past month has been extremely busy because of legislative policy committee deadlines. He said that legislative action is now shifting to the Appropriations Committees of the Assembly and Senate.

Mr. Lind also mentioned that the May Revise of the State Budget has been released.

Other Business None

Public Comments
John Bilheimer commented in regards to SB 990 (Lieber). He said that when materials that are substituted contain more volatile organic compounds (VOCs) or have a higher reactivity rating, the legislature should consider them and construct a policy in order to address toxics effectively.

Attachments (1,419 KB)

1. Attendance Roster
2. Recommended Positions on Bills
3. Discussion on Bills
4. Update on Proposal to Modify the Composition of AQMD Governing Board
5. Federal Report/Update
6. Sacramento Report/Update

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