Back

REPORT: 

Legislative Committee

SYNOPSIS: 

The Legislative Committee held its regular meeting on Friday,
November 19, 1999. The next Legislative Committee meeting is scheduled for Friday, December 17, 1999, at 8:30 a.m., in Conference Room CC8

RECOMMENDED ACTION

Receive and file this report.

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

Attendance

The Legislative Committee met on November 19, 1999. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee members Roy Wilson (video conference) and Michael Antonovich. Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Dr. William Burke, AQMD Chair, was appointed as an ad hoc member of the Legislative Committee for the November 19, 1999, meeting only. (Dr. Burke participated by video conference.) (Attachment 1)

Washington Update

John O'Donnell, John Montgomery, and Raul Tapia, AQMD Washington Legislative Representatives, briefed the Committee on activities in Washington. Mr. O'Donnell reported that Dr. Barry Wallerstein traveled to Washington in early November and met with Congressional and White House staff and U.S. EPA representatives regarding the AQMD's 1999 amendment to the 1997 AQMP, the MATES II, the Lowest Achievable Emissions Rate (LAER) requirements and Clean Air Partnership proposal. Congressional staff was surprised to learn how much air pollution is caused by diesel engines. Mr. O'Donnell added that it would be timely for AQMD staff to return to Washington in March, after the AQMD Board addresses the Air Toxics issue, to provide an update on what the AQMD has adopted and how it will be implemented. That trip would also be a good time to discuss the Clean Air Partnership proposal, if AQMD wants to pursue the proposal again next year. Chair LaPisto-Kirtley confirmed that the AQMD is interested in pursuing the Clean Air Partnership proposal next year. Mr. O'Donnell suggested the AQMD Board send letters to the congressional delegation conveying the AQMD's interest in pursuing the Clean Air Partnership proposal again next year.

Mr. Montgomery reviewed the efforts during 1999 on the Clean Air Partnership proposal. Board Vice-Chair Glover and Legislative Committee Chair LaPisto-Kirtley were able to get the money into the House Appropriations bill. Unfortunately, the Senate never put the money into their bill. Mr. Montgomery added that the Administration plans to include funding for this program in next year's budget request. Dr. Burke asked if the AQMD could have gone for an earmark of $7 million this year. Mr. Montgomery responded yes, but the AQMD would have split themselves from the bigger proposal. Mr. Montgomery suggested seeking an AQMD earmark next year as an alternative if the Clean Air Partnership proposal does not pass, and added that Congressional staff also suggested the same.

Mr. Montgomery inquired on the status of the LAER proposal. Dr. Wallerstein responded that the U.S. EPA has indicated that both the regional and Washington offices are agreeable to a revision by AQMD for ten-ton sources and under. AQMD is currently awaiting a letter from U.S. EPA. Mr. Montgomery suggested that once received, that AQMD update those congressional members that signed the letter so they are aware of the progress on this issue.

Sacramento Legislative Update

Allan Lind, AQMD Sacramento Legislative Representative, briefed the Committee on recent activities in Sacramento. While the Legislature is currently in recess, it is holding interim hearings. Specifically, Assemblywoman Nell Soto held a hearing on the environmental impacts of the Alameda Corridor East at which Lupe Valdez, DEO/Public Affairs and Transportation Programs testified. Senator Byron Sher held a hearing on greenhouse gas emissions; Senator Richard Alarcón held a hearing on environmental justice; and Assemblyman Tom Torlakson held a hearing on transportation financing in Orange County.

Mr. Lind stated that Dr. Wallerstein hosted a briefing in Sacramento for legislative staff. The turnout of representatives from relevant policy and fiscal committees, as well as staff from the Administration and Legislative Analyst's office, was good. Attendees were very interested in air toxics and AQMD fiscal affairs. Legislative staff appreciated Dr. Wallerstein's presentation and are interested in future briefings on AQMD issues.

Mr. Lind reported that Ms. Valdez met with Assemblyman Marco Firebaugh on the $200,000 grant Assemblyman Firebaugh requested on behalf of the AQMD for the children's initiative.

Mr. Lind reported that the Davis Administration is currently working on their 2000-2001 budget proposal, which is required by January 10, 2000. The Governor is also rounding out the appointments for his Administration. Dr. Burke asked if there has been any indication by the Governor to fill appointments to the AQMD Board and ARB. Mr. Lind responded that he has not heard of any leading candidates or when the decision will be made. Dr. Burke stated that the AQMD should take an advocacy position for an appointment to the Board and added that the AQMD Board needs to operate at full strength. Dr. Burke requested that Mr. Lind check into the process of appointments to the AQMD Board and an AQMD appointment to the ARB. Chair LaPisto-Kirtley asked Dr. Burke if he would be willing to send a letter to the Governor inquiring on the status of AQMD appointments and Dr. Burke agreed to send a letter to Governor Davis.

Chair LaPisto-Kirtley asked if this would be an appropriate time, if the AQMD desired, to ask the Legislature to create a separate funding source to convert school buses to clean fuels. Schools typically have their buses for 20 years, as opposed to 12 years for transit buses, and they do not have the funds to convert them. Mr. Lind responded that the idea is a distinct possibility. There was a recent press conference by the Coalition of Clean Air on this issue. It's possible a proposal to use some general fund dollars for a "one-time" expenditure to update the fleet of school buses around the state could be introduced next session. This could bode well for future Carl Moyer Program funding.

Lastly, Mr. Lind reported that in conversations with other air districts the highest priority next year continues to be an increase in the subvention funding.

Draft 1999 End-of-Year Legislative Report

Staff presented the draft report on 1999 air quality legislation. The report describes all bills monitored during the 1999 session and their outcome. Also included in the report are detailed summaries of air quality legislation approved by the Governor. Final copies of the report will be available after December 17, 1999, in the AQMD Public Information Center and Library. (Attachment 2)

Legislative Reception

The holiday reception is scheduled for Wednesday, December 8, at the Industry Hills Sheraton. Staff will call invitees after the Thanksgiving holiday. Ms. Valdez added that the reception will be noticed as a special meeting of the Board.

Draft 2000 Legislative Concept Proposals

Ms. Valdez reviewed draft legislative concept proposals submitted by staff for the 2000 legislative session (Attachment 3)

State Concept 1 -- Fee Authority
State Concept 2 -- Hearing Boards: Closed Session
State Concept 3 -- AQMDs and APCDs: Increased Subvention
State Concept 4 -- Hearing Board: Variances by County
State Concept 5 -- Reporting Requirements

Legislative Concept #1 seeks to amend state law to give the AQMD the same fee authority enjoyed by all other air districts in California, i.e., to charge fees sufficient to cover the actual costs of district programs related to stationary sources, without being limited to the Consumer Price Index (CPI). Dr. Wallerstein noted that at this time staff believes the AQMD should at least conceptually raise this issue. Staff is not necessarily recommending moving forward on this proposal at this time, but believes the Board should have their Millennium retreat and look at the AQMD's overall legislative posture in Sacramento. Chair LaPisto-Kirtley asked if the proposals were suggestions to be discussed at the retreat. Dr. Wallerstein responded that of the legislative proposals submitted, staff strongly recommends moving forward with the proposal to seek increased subventions. However, in the Governor's veto message last year on the statewide subvention increase, the Governor took the position that air districts should just raise fees. Air districts feel they should continue to seek increased subvention so that it is not a matter of local businesses paying when the bulk of the problem is the mobile sources.

Chair LaPisto-Kirtley asked if the CPI cap affects permit fees only. Rick Pearce, Financial Officer, agreed and added that this only affects permit processing emission fees and annual renewal fees. Barbara Baird, District Counsel, added that emission fees are set at a certain dollar amount per ton. As emissions go down, revenue from that source goes down even though the work doesn't necessarily go down at the same rate. So, the CPI has a particularly adverse impact on the emission fee as opposed to some of the straight dollar fees.

John Billheimer, Small Business Coalition, stated that this proposal is an alarming development to the small business people because they depend upon the CPI cap to protect them from a sudden raise in fees. He asked if the AQMD moves forward with this legislative proposal, that they provide a clear and simple budget picture to permit holders on the use of their money and that a 90-day public notice period be given.

Curt Coleman, CMA/Southern California Air Quality Alliance, stated that the Alliance was the sponsor of the legislation that instituted the CPI cap. It was done in response to what was perceived as a huge and unwarranted expansion of the AQMD staff and fee increases of 10-20% per year. Mr. Coleman added that the CPI cap has had the desired affect and the Alliance cooperated with the District a few years ago in having the absolute cap removed. The cap is now on the budget. While there is a CPI cap on individual fee increases it can be overridden if the Board makes certain findings that it is the appropriate process to follow. Mr. Coleman stated that the Alliance is still concerned that the pace of permitting is too slow, inefficient and if the CPI cap is removed, the tendency may be to charge the fees based on the inefficient system, rather to make the system more efficient so fees stay low. Mr. Coleman added that the Alliance is willing to discuss this issue further with staff as part of the budget review process. The Alliance wants to keep measures in place that will ensure that the District's operations become more efficient. Mr. Coleman stated that the Alliance appreciates the work staff and the Board has done with the permit streamlining and recordkeeping task force, but added that the number one complaint he receives about the District is on how long it takes to get a permit. This issue remains the number one priority of the Alliance.

Dr. Wallerstein asked Mr. Coleman if the Alliance would be willing to join the AQMD in discussions with the Governor's office about an increase in subvention. Mr. Coleman responded that the Alliance would join in on that discussion. Dr. Wallerstein stated that if the District can get the subvention increase, then he would recommend not pursuing the legislative proposal to remove the CPI cap.

Supervisor Antonovich asked what could be done to streamline the permit process. Dr. Wallerstein responded that a meeting was held this month with the Permit Streamlining Task Force and recommendations are about to come online. Staff hopes to see improvements shortly. Chair LaPisto-Kirtley asked what the average time is to process a permit request. Dr. Wallerstein responded that it depends on the type of permit. Mr. Billheimer stated that he believes it takes approximately six months to get a permit. Much of it is because so much is required on the permit in terms of toxics, CEQA, and other factors.

Ms. Baird added that what also tends to cause a delay in the permit process is the LAER requirement for even the very small sources. The LAER requirement requires Engineering to do many analyses and searching of the country for the most stringent requirements. With the recent commitment from EPA to allow the AQMD to amend its New Source Review rule for the smaller sources, staff we will be able to use a more flexible determination of BACT and that should help the permit process. Dr. Wallerstein added that one of the concepts that came out of the Permit Streamlining Task Force was to require common types of equipment applications to have a standard permit. That concept is near implementation.

Legislative Concept Proposal #2 seeks to amend current law to authorize hearing boards to hold closed sessions to discuss information that qualifies as a trade secret under Government Code Section 6254.7. The Committee supported this concept last year, but staff was unable to get this language into a bill. Chair LaPisto-Kirtley stated that this issue is a concern because it is felt that hearing boards are not getting all the information from the people presenting their case because they don't want to divulge their trade secrets.

Legislative Concept Proposal #3 seeks to increase subventions for air districts for general operating costs. The Legislative Committee supported this proposal last year and the AQMD took an active role, with CAPCOA as the lead, on this issue.

Legislative Concept Proposal #4 seeks to amend state law to delete Health and Safety Code Section 40501(b), which states that the Hearing Board has to travel to each of the four counties once a month. Since moving to Diamond Bar, not only has the frequency of Hearing Board meetings increased to more than once a month, but the Hearing Board has been very cooperative in having hearings out in the communities, when there is an interest to do so. The Hearing Board also holds hearings in the evenings.

Legislative Concept Proposal #5 seeks to streamline legislative reporting requirements. Ms. Valdez reported that this proposal would direct staff to look at the various reports the AQMD is required by law to prepare. The SB 1928 Report, which contains information on various AQMD regulatory actions of the preceding year, is required by law April 1 of each year. Much of the information in this report is also compiled for other reports either required by statute or Board policy. Preparing this report takes an inordinate amount of staff time to compile and is duplicative of other reports done throughout the year. Dr. Wallerstein stated this legislative proposal is worthy of discussion but recommended being cautions about doing something that could be perceived as trying to avoid disclosing information. Dr. Wallerstein suggested meeting with the business community and developing a joint proposal, with business community support, that would give the Legislature some confidence that in fact these are inefficient things that are taking staff time away from other matters that should be a higher priority. Mr. Coleman stated that he would support the idea of a joint proposal and added that the Alliance is very interested in reducing this type of redundant paperwork and having the District concentrate on core areas.

At the December Legislative Committee meeting, the Committee will interview candidates for Washington representation. Dr. Wallerstein recommended that the Committee postpone formal action on any federal legislative proposals until the Board has decided who will represent the AQMD in Washington and can have an opportunity to have a strategy meeting with them. Dr. Wallerstein added that there are basically three federal funding options for next year: (1) seek an earmark for the AQMD; (2) continue to fight for the Clean Air Partnership proposal; or (3) both. The AQMD may benefit from the advice and wisdom of our Washington representatives.

Chair LaPisto-Kirtley said that in light of the MATES II study, mobile source programs should be added to the federal proposals. Dr. Wallerstein stated that staff would broaden the write up to include mobile sources.

Other Business

Ms. Valdez stated that the Legislative Committee meeting date for December may change. The purpose of the December meeting is to interview candidates for Washington representation. Notice of a date change will be mailed to all interested parties.

Public Comment

See discussion under "Draft 2000 Legislative Concept Proposals" for public comments received.

Attachments

1. Attendance Roster
2. Draft End-of-Year Legislative Report
3. Draft 2000 Legislative Concepts
4. Ethnic Community Advisory Group Minutes (July 14, 1999)
5. Ethnic Community Advisory Group Minutes (September 8, 1999)
6. Ethnic Community Advisory Group Minutes (October 13, 1999)

/ / /