BOARD MEETING DATE: May 6, 2005
AGENDA NO. 29B

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held a special meeting to consider the following legislation for which the Board will consider approving a position:
 
Bill/Title

Recommended
Position

AB 1231 (Horton) Air Pollution Control Accountability Act of 2005

Oppose

AB 721 (Nunez) Metal Plating Facilities:
Pollution Reduction Fund

Support with amendments

AB 1407 (Oropeza) California Environmental Health and Air Quality Funding Act of 2005

Support with amendments

AB 1660 (Pavley) Vehicular Air Pollution:
Alternative Fuel Vehicle Purchasing Program

Support

AB 386 (Lieber) Air Pollution:
Motor Vehicle Inspection and Maintenance

Support

AB 453 (Benoit) Grade Separation Projects

Support

AB 1362 (Levine) Renewable Energy:
California Renewables Portfolio Standard Program:
Renewable Energy Credits

Support

SB 107 (Simitian and Perata) Renewable Energy

Support

AB 1547 (Levine) Energy:
Renewable Energy:
Solar Generation of Electricity

Support

SB 849 (Escutia) Environmental Health Data Tracking

Support

SB 976 (Ashburn) Air Quality:
Stationary Sources

Oppose

AB 728 (Negrete McLeod) Electricity:
Biogas Digester Customer-Generators:
Net Metering

Support

AB 993 (Canciamilla) Planning and Forecasting:
Liquefied Natural Gas

Support

AB 1365 (Ruskin) Greenhouse Gas Emission Levels

Support

AB 825 (Levine) Air Resources:
Binational Committee

Support in concept

SB 369 (Simitian) Ecological Labeling

Support with amendments

AB 1317 (Ruskin) Environmental Laboratories

Support with amendments

SB 771 (Simitian) Oceangoing Ships

Support

SB 1017 (Campbell) Solar Energy:
Taxation

Support

AB 1629 (Bermudez) Taxation:
Credit

Support in concept

AB 578 (Horton, Shirley) Air Pollution:
Smog Check:
Test-Only Stations

Oppose

AB 383 (Montanez) Air Pollution:
Motor Vehicle Inspection Program:
Repair Assistant

Support

SB 497 (Simitian) Low-Emissions Contractor Incentive Program

Support in concept

HR 444 (Issa) The Hybrid Vehicle HOV Access Act

Support

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 April 20, 2005 for a special meeting. Present were Committee Vice-Chair Jane Carney (who served as Chair of the committee) and Committee Member Gary Ovitt, in attendance via videoconference were Committee Members Jan Perry, and Roy Wilson. Committee Member Mike Antonovich was also present at the start of the meeting, however, due to a scheduling conflict; he was not available when bill recommendations from the committee took place. Absent was Chair Beatrice LaPisto-Kirtley.

Recommended Position on Bills [Attachment 2]
One federal and 25 state bills were presented for which the committee took positions. Oscar Abarca, Assistant Deputy Executive Officer, led the presentation.

AB 1231 (Horton) Air Pollution Control Accountability Act of 2005
This bill would include the replacement of the AQMD’s Hearing Board with a Hearing Officer appointed by CARB; prohibit hearing officers from approving any variance authorizing non-compliance with federal approved State Implementation Plan rules; prohibit hearing officers from approving any variance authorizing the emissions of any toxic air contaminant; limit all variances to a period of six months; require written notice to residents and business within a one mile radius of a facility seeking a variance or which is the subject of a Petition for an Order of Abatement.

In response to a question from Chair Carney, on how AQMD provides notice, Principal Deputy District Counsel Barbara Baird replied that currently there is newspaper notice given and also the Clerk of the Hearing Board gives notice by mail to CARB, EPA and people that have requested to have notice such as environmental groups. The law currently mandates newspaper notice.

Chair Carney asked what the current appeal process from a hearing board decision was. Ms. Baird replied that there is one remedy which is a Writ of Mandate to the Superior Court. There is also an oversight function performed by CARB where all the orders that the hearing board issued are forwarded to CARB to see whether they feel that it is in compliance with the statutory requirements. State law gives CARB the authority to revoke or modify a variance after a hearing if it feels that it has not been issued in compliance with statute. Ms. Baird replied that to her knowledge CARB has not brought any decision back to the Hearing Board.

Mr. Abarca said that staff is recommending opposing this bill because staff believes that the current system is efficient and effective and if this bill is enacted into law it could flood the AQMD Governing Board with appeals of Hearing Board decisions.

The Legislative Committee unanimously adopted staff's recommendation to OPPOSE AB 1231

AB 721 (Nunez) Metal Plating Facilities: Pollution Reduction Fund
This bill would require the Business, Transportation and Housing Agency to create the "Chrome Plating Pollution Prevention Account" with the State Treasury. The money would be expended by the agency to make specified loan and loan guarantees for the reduction of environmental health risks associated with chrome plating facilities.

Dr. Barry Wallerstein said that it is important to note that this bill is similar to the a bill that AQMD supported last year and is modeled in large part by AQMD Governing Board's programs for dry cleaners and other small businesses.

Staff recommends a support with amendment position. The amendment is to direct funds to be provided to support environmental compliance, pollution prevention, and emission reduction measures to ensure the proper utilization of funds upon implementation.

Committee Member Perry expressed her desire to discourage the proliferation of plating activity close to sensitive receptor areas such as schools. Committee Member Perry made a motion that, in addition to staff’s recommended amendment, language requesting relocation money for chrome plating businesses be included so that this type of businesses could be relocated away from sensitive receptor areas.

The Legislative Committee unanimously adopted staff's recommendation to SUPPORT WITH AMENDMENTS AB 721

AB 1407 (Oropeza) California Environmental Health and Air Quality Funding Act of 2005
This bill would place a 5¢ per gallon fee on certain types of diesel fuels for specified off-road engine uses. These fees would be placed into a fund for retrofitting or re-powering these same engines for reducing their exhaust emissions.

Staff recommends a support for AB 1407 with the following amendments: 1) to ensure that 5% administrative costs be allowed for local administrative agencies such as air districts; and 2) to include the replacement of engine projects in addition to the new and retrofitted engines projects.

Committee Member Ovitt expressed opposition to this bill because it increased fees.

Dr. Wallerstein said that this bill is augmentation to the Carl Moyer program where the fees are rebated to the same type of engines and are restricted and cannot be used elsewhere.

The Legislative Committee adopted staff's recommendation to SUPPORT WITH AMENDMENTS 1407. Committee Member Ovitt opposed staff's recommendation and the motion.

AB 1660 (Pavley) Vehicular Air Pollution: Alternative Fuel Vehicle Purchasing Program
This bill would create the California Energy Efficient Vehicle Group Purchase program which would require the state government to partner with cities, counties and special districts to create the nation’s first state-wide government group purchase program for alternative fuels. Staff recommends supporting AB 1660.

The Legislative Committee adopted staff's recommendation to SUPPORT AB 1660. Committee Member Ovitt opposed staff's recommendation and the motion.

AB 386 (Lieber) Air Pollution: Motor Vehicle inspection and Maintenance
This bill would move the existing Smog Check Program from Bureau of Automotive Repair (BAR) within the Department of Consumer Affairs (consumer agencies) to CARB (environmental regulatory agency). CARB would have the sole responsibility for program changes and the control of funding aspects.

Staff recommends supporting AB 386.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT AB 386.

AB 453 (Benoit) Grade Separation Projects
This bill will grant local jurisdictions an additional year in which to execute contracts for railroad grade separation projects (currently only one year). In the prior version of this bill staff recommended a support with amendments, however, this bill no longer deals with reduction of financial contributions from railroads for these projects. Staff recommends a support position.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT AB 453.

Energy
AB 1362 (Levine) Renewable Energy: California Renewables Portfolio Standard Program: Renewable Energy Credits
This bill seeks to change the amount of electricity generated per year from renewable energy resources to an amount that equals at least 20% of the total electricity generated for consumption in California by 2010. It also requires the Energy Commission to develop a Renewable Tradable Credit Program to assist smaller utilities to achieve their goals.

Some of the utility companies are in debate over the implementation details. Staff recommends a support position.

The Legislative Committee adopted staff's recommendation to SUPPORT AB 1362. Committee Member Ovitt opposed staff's recommendation and the motion.

SB 107 (Simitian and Perata) Renewable Energy
This bill authorizes the Renewable Tradable Credit Program, and contains the details in assigning responsibilities to various state agencies to implement the program. Staff recommends a support position.

The Legislative Committee adopted staff's recommendation to SUPPORT SB 107. Committee Member Ovitt opposed staff's recommendation and the motion.

AB 1547 (Levine) Energy: Renewable Energy: Solar Generation of Electricity
This bill promotes the use of solar energy. It would require the Energy Commission to ensure proportional program support through the Emerging Renewable Resources Account, for affordable housing units, within certain limits. This bill has passed its first committee on an 11-0 vote. Staff recommends a support position.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT AB 1547.

Health/Education
SB 849 (Escutia) Environmental Health Data Tracking
This bill would require the establishment of an Interagency Office of Environmental Health Tracking. This office would be within the State Department of Health Services' Division of Environmental and Occupational Disease Control and will be responsible for tracking health and environmental issues and creating data bases to assist professionals and environmental regulatory communities with interactive data which reflect data of health effects. This bill has passed its committee on a vote of 5-3. Staff recommends a support position.

Committee Member Ovitt said that he would oppose this bill because in his opinion, it would add an additional layer of government oversight.

The Legislative Committee adopted staff's recommendation to SUPPORT SB 849. Committee Member Ovitt opposed staff's recommendation and the motion.

Planning/Rules
SB 976 (Ashburn) Air Quality: Stationary Sources
This bill would exempt the replacement of any permitted stationary source on a military installation from the requirements in the Protect California Act of 2003. The AQMD’s Board has consistently supported the premise that AQMD rules should be applied uniformly to the greatest extent possible and this bill could create a separate group of permitted equipment that is subject to less stringent regulations. Staff recommends an oppose position.

The Legislative Committee adopted staff's recommendation to OPPOSE SB 976. Committee Member Ovitt’s position was to support the bill.

AB 728 (Negrete McLeod) Electricity: Biogas Digester Customer-Generators: Net Metering
This bill proposes to expand and make permanent a previous pilot program to provide net energy metering for certain biogas digester customers. Electrical corporations would be required to pay users of biogas generators for the extra electricity that they generate. Staff feels that this legislation would help the agricultural sources to comply with new requirements that may be imposed on them under SB 700 (Flores) from last year which eliminated air quality permit exemptions for any equipment used in agricultural operations in the growing of crops or the raising of fowl or animals. Staff recommends a support position.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT AB 728.

AB 993 (Canciamilla) Planning and Forecasting: Liquefied Natural Gas
Under current law, the California Energy Commission is to adopt an integrated energy policy (report) every two years, which includes an overview of major energy trends in the future. This bill would require the Commission to assess the role of liquefied natural gas, in meeting California’s natural gas needs, including a cost benefit analysis. This report would also ensure that the potential benefits and drawbacks of liquefied natural gas are fully considered by state policy makers. Staff recommends a support position.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT AB 993.

AB 1365 (Ruskin) Greenhouse Gas Emission Levels
This bill would add greenhouse gas emission goals for the reduction of greenhouse gas emissions by at least 7% by 2010 and 10% by 2020 (based on the 1990 greenhouse gas emission levels). Staff recommends a support position.

As part of the public comment, Ron Wilkniss, WSPA, commented that he was concerned about creating an "un-level" economic playing field between California and the rest of the country.

The Legislative Committee adopted staff's recommendation to SUPPORT AB 1365. Committee member Ovitt opposed staff's recommendation and the motion.

AB 825 (Levine) Air Resources: Binational Committee
This recently amended bill will require the Air Resources Board to establish two committees to develop programs for the reduction of pollution along the Mexican border. The two committees would be divided according to the air basins, Calexico-Mexicali Air Basin Committee and the San Diego-Tijuana Air Basin Committee. Staff recommends to support in concept as this proposal would benefit efforts to improve air quality.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT IN CONCEPT AB 825.

SB 369 (Simitian) Ecological Labeling
This bill would require Cal EPA to establish a commission on Ecological Labeling and would require the commission to enter into a contract, using a competitive bid process, with a vendor, to award the Green Bear Eco-Label to a product or service that meets the criteria adopted by the commission or is subject to a determination by a specified panel of experts. Staff recommends a support with amendments adding a requirement that a product meet the most stringent environmental standards.

The Legislative Committee adopted staff's recommendation to SUPPORT SB 369 WITH AMENDMENTS. Committee member Ovitt opposed staff's recommendation and the motion.

AB 1317 (Ruskin) Environmental Laboratories
This bill would establish a uniform standard for Environmental Laboratories by clarifying existing laws relating to the certification of environmental laboratories and to improve the process to ensure that these lavatories are measuring up to state standards. For the last several years, an association of environmental laboratory managers have been working on establishing uniformed standards for certifying environmental laboratories. Staff is recommends supporting with amendments to clarify language regarding applicability, scope and, cost.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT WITH AMENDMENTS AB 1317.

Ports/Harbors
SB 771 (Simitian) Oceangoing Ships

Last year the author successfully introduced a similar bill that would ban incineration by cruise ships operating within 3 miles of the state high tide line. This year, the author is proposing that the 3 miles limitation now apply to oceangoing ships.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT SB 771.

Taxes/Fees
SB 1017 (Campbell) Solar Energy: Taxation

At the April 8 Legislative Committee meeting, the committee took a support position on SB 1(Murray) Energy: Renewable Energy Resources: Million Solar Roofs Initiative. SB 1017 along with SB 1 would create an incentive program to install 1 million solar energy systems on new and existing residential and commercial customer sites throughout the state of California by the year 2018. Staff recommends supporting this bill.

The Legislative Committee unanimously adopted staff’s recommendation to SUPPORT SB 1017.

AB 1629 (Bermudez) Taxation: Credit
This is a "spot bill" that declares legislative intent to provide tax incentives for the purchase and installation of particulate traps for diesel fuel trucks that are manufactured up to, and including the 2006 models. Staff is recommends to support in concept position as this would incentivize the retrofitting of these vehicles. This bill will not make any legislative amendments or create new law, but expresses the legislative intent. However, some of the details need to be worked out with the author.

The Legislative Committee unanimously adopted staff's recommendation to SUPPORT IN CONCEPT AB 1629.

Transportation
AB 578 (Horton, Shirley) Air Pollution: Smog Check: Test-Only Stations
Existing law establishes a motor vehicle inspection and maintenance program (smog check), to be administered by the Department of Consumer Affairs. This program provides for the inspection of all motor vehicles, except those specifically exempted from the program.

A provision of this bill could limit the number of vehicles directed to test-only stations. The number of consumers voluntarily going to test-only stations for a smog check is equivalent to those being directed to these test-only stations for purpose of SIP credits. We should not support any weakening of the smog check program in order to justify increased business for test-and-repair stations. Additionally, this bill would allow the functions currently carried out by the referee program to be performed by the test-and-repair contractors - thereby weakening the program. The referee program is currently operated by the Foundation of Community Colleges and is thus an unbiased third party.

Staff recommends an oppose position because this bill will weaken the existing program, and that any enhancement of the test-only program should result in additional emission reductions.

The Legislative Committee adopted staff's recommendation to OPPOSE AB 578. Committee Member Ovitt opposed staff's recommendation and the motion.

AB 383 (Montanez) Air Pollution: Motor Vehicle Inspection Program: Repair Assistant
Currently the Bureau of Automotive Repair has a repair assistance program to provide financial assistance to low-income motor vehicle owners whose vehicles fail a smog check inspection. The intent of this bill is to expand the definition of low-income motor vehicle owners and therefore increase eligibility for the program. Staff recommends a support position.

The Legislative Committee adopted staff's recommendation to SUPPORT AB 383. Committee Member Ovitt abstained.

SB 497 (Simitian) Low-Emissions Contractor Incentive Program
This bill would require the Department of General Services to implement the "Cleaner Construction Program" to reduce air pollution from off-road equipment used in the performance of all state agency and department contracts for the construction of roads, highways, buildings, and other state infrastructure projects. It would also that vendor’s bidding documents include a requirement for construction projects to have cleaner diesel engines. There is also a provision that any construction within 1,000 feet of sensitive receptors will have Level 3 control standards.

Staff recommends a support position.

As part of the public comments, Clayton Miller requested that the committee not take a support position on this bill at this time. He said that CARB has been in the process of developing a particulate matter measure for the use of off-road equipment. CARB's goal is to reduce PM emissions from a 2000 baseline by 75% by 2010, and 80% by 2020. CARB has held a workshop and several working group meetings. CARB has a survey on the web where construction industry members can log on to describe the way that they operate which will give a better understanding on how the construction industry works (i.e. purchases and leases). CARB expects to go to their Board in 2006. Mr. Miller also said that California contractors have used approximately $52 million from the Carl Moyer funding and other incentive programs and approximately $19 million of their own money to voluntarily repower over 900 pieces of heavy duty diesel power construction equipment. He noted this bill would not allow for 750 pieces of equipment that have Tier 1 engines to be used.

He added that he feels that CARB is working through this process on a statewide basis and that it is effective and that if includes a public process (i.e. workshops, web surveys, etc.).

Dr. Chung Liu, Deputy Executive Officer, Science and Technology replied that staff believes that this bill is important and that more incentives need to be made available to construction industry so that they will be motivated to use cleaner burning construction equipment. Staff believes that at the time of implementation of Tier 1 controls, most equipment will be beyond this level.

Mr. Abarca said that last year Committee Member Antonovich encouraged AQMD to pursue this type of incentive program.

Mr. Miller stated that their concern is that there are 750 Tier 1 engines, a few Tier 2 engines, but at this time there are no larger engines in the state that can be verified as Tier 3. Thus, only larger companies will be able to compete.

Vice Chair Carney suggested that the committee change staff's recommendation of support to support in concept since there appears to be more details that need to go into the rule.

The Legislative Committee recommended to SUPPORT IN CONCEPT SB 497. Committee Member Ovitt abstained.

HR 444 (Issa) The Hybrid Vehicle HOV Access Act
This bill will create an exception to the federal law that regulates what vehicles are allowed in High Occupancy Vehicle (HOV) lanes, allowing hybrid vehicles with one occupant and a fuel economy highway rating higher than 45 miles-per-gallon to use the HOV lanes. Staff recommends a support position. This Legislative Committee, with ratification by the full board, supported the original state initiative last year.

The Legislative Committee unanimously adopted staff's recommendation to SUPPORT HR 444.

Staff also provided a brief description and recommended position on AB 1292 (Evans) School Facilities: Air Quality, which was tabled to allow staff additional time to see what position school districts and others are taking.

Staff also provided a brief description and recommended position on the following bills for which the committee did not take a position:

AB 1585 (Blakeslee) Renewable Energy Resources: California Renewables

SB 427 (Hollingsworth) California Environmental Quality Act: Exemption: CAL-TRANS: Right-of-Ways

AB 1007 (Pavley) Air Quality: Alternative Fuels

SB 419 (Simitian) Ultrahazardous Waste Transportation: Railroad Tank Cars

Public Comment: Included under pertinent topic.

Attachments (3,508 KB)

  1. Attendance Roster
  2. Recommended Positions on Bills

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