BOARD MEETING DATE: May 5, 2006
AGENDA NO. 25
Legislative Committee
SYNOPSIS:
The Legislative Committee considered agenda items. In addition, the Board will consider positions for the following legislation:
Bill/Title Recommended
PositionAB 2501 (Lieu) South Coast Air Quality Management District: Airport Emissions
Watch
SB 1271 (Escutia) Public Officers: Conflicts of Interest
Support
SB 1252 (Florez) Air Pollution: Penalties: Particulate Matter
Support in Concept
SB 1829 (Lowenthal) Hazardous Materials: Accidental Releases: Ambient Air
Watch
AB 2647 (Oropeza) Vehicular Air Pollution: Truck Parking Space Electrification Program
Support
SB 1377 (Soto) State Air Resources Board: Memorandum of Understanding
Support with Amendments
AB 2490 (Ruskin) California Toxic Release Inventory Program
Support with Amendments
AB 2553 (Arambula) Air Quality: Loans: Tax Incentives
Support, if Amended
AB 2264 (Pavley) State Motor Vehicle Fleets
Support
SB 1505 (Lowenthal) Fuel: Hydrogen Alternative Fuel
Watch
SB 1511 (Ducheny) Renewable Fuels: Regulations
Oppose
SB 1675 (Kehoe) Biodiesel Blend Fuels
Watch
SB 1205 Air Pollution: Children’s Breathing Rights Act: Penalties
Oppose
SB 1368 (Perata) Electricity: Emissions of Greenhouse Gases
Support with Amendments
RECOMMENDED ACTION
Receive and file this report and adopt positions on the bills specified above.
Beatrice J.S. LaPisto-Kirtley, Chair
Legislative Committee
Attendance [Attachment 1]
The Legislative Committee met on April 14, 2006. Present was Committee Vice Chair Jane Carney. Present, by videoconference, were Committee Chair Bea LaPisto-Kirtley and Committee Members Roy Wilson, Michael Antonovich and Jan Perry.
Consent Calendar
Legislation with an AQMD staff recommendation of “watch” was placed under the consent calendar.
A motion was made to move SB 1252 and SB 1829 from the consent calendar for further discussion under “Recommended Positions on Bills.”
The consent calendar was passed with a WATCH position on AB 2501. [Attachment 2]
Oscar Abarca, Deputy Executive Officer, reported that AB 2015 (Lieu), seeking to reconfigure the AQMD Governing Board, will be amended two days prior to its first policy committee hearing. The amendment would seek only one additional member to the AQMD Governing Board, from the City of Los Angeles. AQMD Board Member Roy Wilson will represent the Board at the first policy committee hearing to testify in opposition.
Jan Perry, later in the meeting, stated that she received a call from Susan Devers, who said that she understood that Lieu had pulled his bill and that there has been some agreement about expanding the board by one seat. Dr. Barry Wallerstein, Executive Officer, replied that this was “incorrect.”
Staff stated that there is strong opposition to this bill from the Inland Empire and Orange County. He said that the amendment reducing the addition of board members from 4 to 1 does not resolve any concerns expressed by the AQMD Governing Board and others. The Inland Empire’s perspective is that this amendment may make it worse.
Recommended Positions on Bills [Attachment 3]
SB 1271 (Escutia) Public Officers: Conflicts of Interest
An urgency action was taken to add SB 1271 to the agenda. Mr. Abarca reported that this bill was recently amended and would provide that service on the AQMD Board shall not be considered incompatible with service on the governing body of another government agency, including, but not limited to, a board of a municipally owned utility.
Dr. Wallerstein stated that staff believes that this bill may try to address the situation where Dr. Burke, AQMD Governing Board Chair, was appointed to the Los Angeles Department of Water & Power (LADWP) Board. AQMD’s District Counsel and Los Angeles’ City Attorney had differing opinions on whether or not the two offices are incompatible. He also said that Dr. Burke supports this bill and felt AQMD should encourage an amendment that would apply the same principle statewide for anyone who served on an air district board. This bill will provide AQMD Governing Board Members more freedom with respect to boards that they may serve on.
Jane Carney asked if a person who serves on a board as well as a regulated entity would abstain from voting on matters affecting that entity.
Barbara Baird responded that there are two separate issues, but they would not necessarily have to abstain from voting. It depends on whether under other law there would be a conflict of interest. An incompatible office means that you can’t hold both offices. A conflict of interest may affect voting, but that would be on a case-by-case basis. The Legislative Committee recommended to SUPPORT SB 1271.
SB 1252 (Florez) Air Pollution: Penalties: Particulate Matter
Dr. Wallerstein reported that this bill was driven by proposed changes by the Bush Administration regarding particulate matter ambient air quality standards, exempting mining crustal material, and affecting cities with less than 100,000 population. The bill proposes to increase penalties based on contribution to the violation of a standard. CAPCOA members have expressed their concern that this will be difficult to implement and enforce. Staff recommended supporting this bill, with suggested language provided by CAPCOA (copy attached). After a brief discussion, the committee recommended a support in concept position until an amended bill is available in print. The Legislative Committee recommended to SUPPORT IN CONCEPT SB 1252.
SB 1829 (Lowenthal) Hazardous Materials: Accidental Releases: Ambient Air
Carol Coy, Deputy Executive Officer, reported that this bill was gutted and amended. The amended bill relates to marine terminals in the major ports of the South Coast Air Basin and Oakland. The bill requires marine terminals to operate to limit truck idling (idling not to exceed more than 30 minutes entering the gate). It would also require marine terminals to operate in a manner that requires that trucks, once they are in the property, to have a maximum of 30-minute turnaround time or transaction time within the facility. Marine terminals are to keep records of the entry and exit times. The bill removes requirements that exempted marine terminals with off-hours gates, or that had special staffing situations. The bill also removes AQMD and local air districts from enforcement and turns it over to CARB. Ms. Coy said that staff is recommending a support in concept position.
Dr. Wallerstein said that he had been in Sacramento the past few days and that he had a conversation with Catherine Witherspoon of CARB. She is asking for all air districts’ assistance in implementing their adopted anti-idling regulations. He is concerned that if CARB encourages local districts to conduct enforcement, the need for state law may be obviated since AQMD already has such enforcement authority.
Jan Perry recommended a watch position to clarify language in the bill that AQMD has the enforcement authority and has already undertaken this responsibility. In addition, staff will speak with the author. The Legislative Committee recommended a WATCH position for SB 1252.
AB 2647 (Oropeza) Vehicular Air Pollution: Truck Parking Space Electrification Program
Mr. Abarca reported the bill relates to idling of heavy-duty diesel trucks, particularly in distribution centers, truck stops, ports, and other areas prone to truck idling. The bill will empower the State Energy Resources Conservation and Development Commission to develop and implement a revolving loan program through the issuance of direct/no interest, or low interest loans. The program will be available to owners/operators of trucks or related facilities for the purchase of clean technology. The Legislative Committee recommended to SUPPORTAB 2647.
SB 1377 (Soto) State Air Resources Board: Memorandum of Understanding
Oscar Abarca reported that this bill would ensure that there is a process that guarantees public participation in the execution of future MOUs. Mr. Abarca stated that a significant number of legislators had communicated to CARB that the 2005 MOU they entered into with the two railroads be nullified because it was conducted in private, without any public participation. CARB staff has put the legislator and AQMD on notice that not only do they intend to continue with this MOU, but that they intend to execute additional MOUs.
In this bill, the senator is addressing whether or not an agency like CARB, can enter into an MOU, with negotiations being held in private, and exclude those affected by the sources of pollution. The bill will codify a public process similar to the one used in the adoption of rules and regulations, which are enforceable - unlike the MOU.
Jane Carney commented that MOUs should be used to achieve results that cannot be achieved by rules or regulations. Ms. LaPisto-Kirtley was not comfortable with a 2-year deadline on MOUs. Dr. Wallerstein will direct staff to speak with the senator, and request a modification such that the MOU would last only until appropriate regulation or legislation is enacted to address those sources. He also reported that the sponsors of this bill are the community groups from the Inland Empire and the City of Commerce. The Legislative Committee recommended to SUPPORT WITH AN AMENDMENT SB 1377.
AB 2490 (Ruskin) California Toxic Release Inventory Program
Elaine Chang, Deputy Executive Officer, reported that this bill will create a California Toxic Release Inventory Program similar to federal EPA’s program. The changes to EPA’s program would raise the threshold amount of toxic chemicals that are required to be reported and would decrease the frequency with which such reports are required. This is a relaxation of the current program. Staff recommends a support position, but only if the proposed changes to the federal EPA program passes. The Legislative Committee recommended to SUPPORT WITH AMENDMENTS AB 2490.
AB 2553 (Arambula) Air Quality: Loans: Tax Incentives
Tracy Goss, Program Supervisor, reported that this bill would establish air quality zones to be designated by EPA based on the non-attainment standards for PM10 or PM2.5, and for severe or extreme 8-hour ozone standards. The bill allows businesses, within an California Air Quality Zone, a 10% tax credit and the ability to take a deduction on depreciation. There is limited scope for AQMD, in that only those areas which have previously been designated as enterprise zones, or as seaports would qualify.
Dr. Wallerstein stated that staff is unaware of any rationale as to why the AQMD would be treated differently than other districts in the state. Mr. Goss stated one of the reasons for restrictions in the bill is because the San Joaquin Valley heavily supports it and that the author was afraid that if the scope of this bill was too broad, the policy committee may not pass it. He also said that the bill would likely be amended to be applicable only to PM 2.5 non-attainment areas.
Dr. Wallerstein stated that to give tax credits for things that are already required, doesn’t provide an incentive for early compliance. Staff recommended an amendment to the bill for incentives for early compliance with air quality regulations and to include the AQMD and remove Los Angeles County limitations on enterprise zone designation. The Legislative Committee recommended to SUPPORT, IF AMENDED, AB 2553.
AB 2264 (Pavley) State Motor Vehicles Fleets
Mr. Paul Wuebben, Clean Fuels Officer, reported that this bill would require the Department of General Services and the California Energy Commission, as of January 1, 2007 to adopt fuel economy standards for state fleet vehicles and as of January 1, 2008 new state fleet purchases would have to comply with such standard. It would exclude emergency vehicles from fuel economy standard requirements. Staff said that it would reduce petroleum consumption as well as emissions associated with the incremental fuel production, import distribution and fuel retailing. The Legislative Committee recommended to SUPPORTAB 2264.
SB 1505 (Lowenthal) Fuel: Hydrogen Alternative Fuel
Paul Wuebben reported that this bill will require a set of standards with respect to the production and use of hydrogen for transportation purposes, setting a threshold of 500,000 kg by mass as a trigger point for the use of cleaner production technologies. Staff believes that this bill is complex, but the underlying concepts are positive. Staff believes that the establishment of a threshold in the absence of some flexibility may present some degree of difficulty since there are no equivalent greenhouse gas emission standards.
After a brief discussion, the committee felt that this bill is in a technology development transition phase and that a watch position is appropriate at this time. This will allow staff time to speak with the author for further clarification. The Legislative Committee recommended a WATCH position on SB 1505.
SB 1511 (Ducheny) Renewable Fuels: Regulations
Mr. Paul Wuebben reported that this bill would require CARB to optimize the gasoline and diesel fuel specifications which will increase the use of renewable fuels (i.e., ethanol and biodiesel). It would mandate maximum flexibility for the year round use of renewable fuels and increased fuel supplies from refiners. Staff reported that there is no provision in the bill that guarantees the potential negative impacts of renewable fuel use and that VOC and NOx emissions would be mitigated. Mr. Wuebben said low ethanol blends have been shown to increase fuel volatilty and permeation emissions. Also, biodiesel blends have the potential to increase NOx emissions
Staff believes that by rushing to increase the use of biodiesel without careful and full consideration, there would be a potential for increased NOx emissions without any mitigation. Staff believes that there should also be some flexibility for refineries to reformulate renewable fuels so that there is no increase in emissions, especially in the summer months. The Legislative Committee recommended to OPPOSE SB 1511.
SB 1675 (Kehoe) Biodiesel Blend Fuels
Mr. Wuebben reported that this bill would require 2% biodiesel in diesel fuel effective January 1, 2008, to be increased to 10% on January 1, 2010. It would allow some exemptions by CARB if they found that there would be adverse impacts on emission control equipment, fuel systems, or engine performance. There are no current ASTM standards for a fully blended product. Staff is recommending to support this bill, if there is some requirement to fully offset the NOx increases either in after treatment or some type of fuel additive.
Jane Carney said that this bill was premature, and until we have a study that biodiesel blends do not increase emissions, we should not support it. Dr. Wallerstein said that staff will take a watch position which will allow them to speak with the consultant of the policy committee, as well as Senator Kehoe, to express AQMD’s concerns. He also suggested the possibility that this bill be in two parts so that CARB could conduct a study prior to this being implemented or mandated to show that there are benefits to air quality. The Legislative Committee recommended a WATCH position on SB 1675.
SB 1205 (Escutia) Air Pollution: Children’s Breathing Rights Act: Penalties
Dr. Wallerstein reported that there are two parts to this bill. The first part deals with the penalty structure for various types of violation notices. The second part of the bill would take away AQMD penalty monies, rather than allowing AQMD Governing Board discretion.
Staff has been working with the senator’s staff consistently, and has had discussions with Breathe California (a sponsor of this bill). In addition, staff has worked extensively with Bay Area attorneys, as well as other attorneys in the state. Staff is concerned with the penalty structure of the bill because it allows local air districts to have full discretion to penalize a party for up to $100,000 per day (for minor violations). Staff believes that this is improper; and that there should be an appropriate penalty structure. In addition, this bill would take penalty monies away from the local air districts.
Staff is scheduling a meeting with the senator to discuss AQMD’s concerns. The Legislative Committee recommended to OPPOSE SB 1205.
SB 1368 (Perata) Electricity: Emissions of Greenhouse Gases
Mohsen Nazemi, Assistant Deputy Executive Officer, reported that the intent of this bill is to reduce greenhouse gas emissions. Staff supports the intent in general,however, clarification is needed to determine what a baseload unit is. The bill is silent as to whether or not there is an offset provision. Also, the way standards are to be established is not clear because it uses life-cycle emissions methodology which is new and not very well documented. The Legislative Committee recommended to SUPPORT WITH AMENDMENTS SB 1368.
Sacramento Report/Update [Attachment 4]
See Attachment 4.
Update on AQMD’s Federal Legislative Agenda [Attachment 5]
Pom Pom Ganguli, Assistant Deputy Executive Officer/Public Advisor, reported on his recent visit to Washington with Peter Greenwald, Senior Policy Advisor. Dr. Ganguli provided an update on the federal legislative agenda.
While in Washington, they visited 15 congressional offices, and held meetings with US EPA senior staff in the Office of Transportation and Air Quality and International Affairs.
He said that AQMD was successful with letters sent to the congressional delegation requesting their opposition to the President’s proposed cuts to EPA’s budget, which would have reduced AQMD’s subvention grants, but there are no guarantees. At the same time, they asked for support of the President’s proposal for $50M in the diesel emissions reduction program, which is a step up from the $5M in the 2006 budget. They had widespread support on this issue from a number of offices.
The most important focus on their discussion with the congressional delegation was on mobile sources. They verified that EPA’s rulemaking to address locomotive emissions from new locomotive engines is expected to occur by year-end or in 2007. Staff had originally been told that this would occur in mid-2006.
The senate has given their consent to the MARPOL Annex VI Treaty, which sets the sulfur standards to about 15 thousand parts per million (as opposed to 30 or 40 thousand). However, staff found that the White House has sent forward an implementation bill, the Act to Prevent Pollution from Ships (APPS), but there are no details available at this time. This bill will implement the MARPOL Annex VI Treaty. Dr. Wallerstein said that he has heard of concerns that this may be used as a mechanism to prevent state or local air districts from taking action on things such as sulfur content of fuels. Dr. Ganguli said that this was discussed with the consultants, who will be monitoring to see if such language appears, and if so, to work to have it removed.
Regarding AQMD’s appropriations requests, they have been sent to subcommittees and we should hear more about them in mid-May.
He also reported that Senator Tom Carper may introduce the Clean Air Planning Act which is a recycle of similar legislation from last year (Clear Skies) that was opposed by AQMD.
Public Comment
John Billheimer said that ethanol is considered a toxic compound with respect to stationary sources, which needs to be addressed, and that he would provide more details at a future meeting.
Attachments:
1. Attendance Roster
2. Consent Calendar
3. Recommended Positions on Bills
4. Sacramento Report/Update
5. Federal Report/Update