BOARD MEETING DATE: March 3, 2006
AGENDA NO. 23

Legislative Committee

SYNPOSIS:

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

Bill/Title	Recommended Position
AB 1430 (Goldberg) Air Contaminants	Support as Amended

RECOMMENDED ACTIONS:

Receive and file this report and adopt position on the bill specified in this letter.

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

Attendance [Attachment 1]

The Legislative Committee met on February 10, 2006. Present was Committee Vice Chair Jane Carney. Present, by videoconference, were Committee Chair Bea LaPisto-Kirtley and Committee Members Roy Wilson and Michael Antonovich.

Recommended Position on One Bill [Attachment 2]

AB 1430 (Goldberg) Air Contaminants
Oscar Abarca, Deputy Executive Officer, reported that AB 1430, as originally introduced, included provisions which would have limited AQMD’s ability to amend or adopt credit trading programs (AQMD had originally taken an oppose position). Since then, staff has had discussion with the author and the bill has been amended to delete any concerns that AQMD previously had. The bill, as amended, requires CARB’s Advisory Committee on Environmental Justice to review each updated methodology. The Legislative Committees is recommending a support as amended position.

The Legislative Committee unanimously approved staff’s recommendation to SUPPORT AS AMENDED AB 1430.

Sacramento Report/Update

The Sacramento consultants provided updates as follows:

• Reported that AB 1101 by Assembly Member Oropeza was short of votes on the assembly floor. Staff and consultants worked together to secure the needed votes for passage of the bill.
   
• Regarding CARB’s Railroad MOU, Dr. Wallerstein reported that community members are contemplating sponsoring legislation to have the MOU rescinded by the legislature. In addition, some members of the legislature are talking about conducting an informational hearing on the MOU.
   
• Regarding the South Bay City Council of Government’s proposed legislation adding additional members to the AQMD Governing Board, Assembly Member Ted Lieu has agreed to sponsor this legislation. Dr. Wallerstein said that it is important that AQMD Board members personally engage in this matter. He did not feel that staff or lobbyists’ efforts in speaking on this matter would be enough. AQMD Board members should go to Sacramento and visit with legislators.
   
• Reported that there is renewed interest in reforming CEQA, and said that at least four spot bills have been introduced. SB 1191 provides a comprehensive reform of CEQA and will be linked to the Governor’s infrastructure bond package.
   
• Reported that they are continuing to monitor, on a weekly basis, the Senate and Assembly Transportation Committee hearings. These committees will be reviewing the various infrastructure bond proposals.
   
• Reported that the Assembly Democratic Caucus recently participated in a three-day retreat. Their legislative priorities are education, funding for public transportation system, and an increase in funding for environmental mitigation.
   
• Reported that they have drafted a port resolution. The proposed joint resolution by the State Legislature would call upon U.S. Environmental Protection Agency to adopt more stringent requirements for locomotives, marine vessels and aircrafts. They are working on securing an author. The resolution is not bound by the same timeline as the bills.

Dr. Wallerstein commented that Oscar Abarca has had weekly meetings in Sacramento with the consultants, with each one of them present. He had the opportunity to attend one of these meetings, and said that all of the consultants are working very diligently on the bills and initiatives.

Federal Report/Update [Attachment 4]

Lynn Jacquez reported that Congress convened for the President’s State of the Union Address. She said that the President spoke on energy efficiency and renewables.

With regard to the Diesel Emission Reduction Program, Ms. Jacquez reported that the President’s proposed budget is slightly under $50 million, which is more than double the original funding request. Dr. Wallerstein said that it is his understanding that the funding is being provided by cutting other areas of funding to the local air districts and state air agencies. He said that the task ahead is to make sure that this new money does not come from other needed local and state agencies dollars. Ms. Jacquez said that they will take an active role in this issue and look to Board support and letters regarding these activities.

Mr. Abarca said that staff had a meeting with the federal consulting team that lasted several hours. They discussed the Board’s federal legislative goals and objectives for 2006 and the Chairman’s Clean Port Initiatives. Mr. Abarca said that at the end of this meeting, there was clarity about expectations for goals and objectives, as well as the need to have monthly reports to the Legislative Committee that will focus on progress made on the goals and objectives.

Ms. Jacquez said that the Republican and Democratic Caucuses are on retreat where they are setting their priorities and legislative agenda for the coming year. She said that at the next Legislative Committee meeting they will identify, from an environmental and clean air perspective, action items and opportunities for insertion of the Board’s agenda. She also said that they are working with staff to identify particular project requests, so that they will be in better shape for the deadline at the end of the month and for the subcommittee deadlines in mid-March.

Regarding U.S. EPA’s new federal proposal for a coarse particulate standard, there is an exemption for mining industries and mining dust, and not making the ambient air quality standard applicable to rural communities with less than 100,000 people. Dr. Wallerstein said that staff is preparing comments pursuant to the Board’s general direction, that will go into the record on this matter. He also said that Senator Dean Florez is introducing a resolution in the state legislature asking that the California delegation oppose the proposed changes from the Bush administration.

Mr. Chris Strobel reported that after U.S. EPA announced the rules, their own scientific advisory committee, in a press conference, came out publicly challenging the agency’s proposal.

Ms. Jane Carney asked how ethanol could be used as a fuel or fuel additive, in ways that will improve air quality more efficiently, and if any funding was available. She asked this question in view of the large interest and incentives being offered by the Bush administration for ethanol.

Dr. Chung Liu said that the President has a six-year research proposal. To make ethanol more substantial for future transportation, the research includes looking at converting leaves and trees, so that there is a larger supply of raw material, but it will take at least six years for commercialization. Currently, the ethanol industry is pursuing E10 research, which is an increase from 6% to 10% in ethanol content of gasoline.

Ethanol blending is causing concern for air quality because of “commingling factors,” and increasing evaporation emissions. There is concern with increased NOx emissions. Dr. Liu also said that while there may be benefits to the use of ethanol, there are also drawbacks that must be addressed first.

Dr. Wallerstein said that the Board approved a contract to assist staff with the emissions estimates in motor vehicles. Part of the contract relates to the future use of ethanol, and staff will prepare an analysis that will point out any problems and possible solutions.

Chair Bea LaPisto-Kirtley asked if there was a way that the AQMD could be exempt from President Bush’s proposal of relaxing the effects of particulates from mining operations because we are in a severe non-attainment area. Dr. Wallerstein said that his recommendation is to provide comments and objections and to move forward to seek modification of their proposal.

Chair Bea LaPisto-Kirtley clarified that AQMD should take an oppose position, because she does not believe this to be good policy.

Dr. Wallerstein suggested that since this is a significant issue, it should be added to the next Governing Board Agenda for a position.

Public Comment

Mr. Ken Hudson said that under U.S. EPA’s proposal to modify the National Ambient Air Quality Standards, there is the benefit of additional compliance time by extending the deadline to 2020.

Mr. John Billheimer said that ethanol is being presented as a good thing for air pollution; however, AQMD is taking steps to eliminate it from the making of beverages. He said when Rule 219 is amended; he will seek an exemption for ethanol as a food product, since there is no substitute for ethanol.

Attachments (EXE 190kb)

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