BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1387 (De León) - Nonvehicular air pollution: market-based incentive programs: South Coast Air Quality Management District board ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 7, 2016 |Policy Vote: E.Q. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1387 requires an air pollution control or air quality management district board (AQMD) to submit the following to the State Air Resources Board (ARB) for review and approval: (1) the district's plan for attainment of state and federal ambient air quality standards or a revision to that plan and (2) the district's market-based incentive program and any revisions to that program. The bill also prescribes specified actions for the ARB to take if it determines that either plan does not comply with law. The bill also adds members to the district board, as specified. Fiscal Impact: Unknown, likely significant, costs to the ARB (Air Pollution Control Fund). SB 1387 (De León) Page 1 of ? Background:1) Local air districts and their governing boards have primary jurisdiction over air pollution from all sources in their air basin, other than emissions from mobile sources. As prescribed by state law, the SCAQMD board is made up of 13 members: three appointed by the state (one each by the Senate Rules Committee, the Speaker of the Assembly, and the Governor) and 10 appointed by local governments, as prescribed in statute. The members of the board serve four-year terms. Currently Dr. William Burke, appointed by the Speaker of the Assembly, serves as the Chairman of the SCAQMD Board. Since the SCAQMD is a nonattainment region for particulate matter (an area considered to have air quality worse than the National Ambient Air Quality Standards) and in extreme nonattainment for ozone, statute requires the district to adopt a plan, the Air Quality Management Plan (AQMP), to achieve and maintain the state and federal ambient air quality standards for the South Coast air basin and submit this plan, subject to approval, to the ARB for inclusion into the state implementation plan (SIP). SIPs are comprehensive state plans required by the federal Clean Air Act for states that have nonattainment regions, detailing how regions will attain and maintain attainment. The AQMP was originally adopted in 1982, and is formally reviewed every two years. The SCAQMD is currently working on the 2016 AQMP. Proposed Law: This bill: 1) Strikes the January 1, 1993 date for plan or plan revision submission, and requires any district plan or plan revision achieve equivalent emission reductions and reduced cost and job impacts compared to current command and control regulations and future air quality measures that would SB 1387 (De León) Page 2 of ? otherwise have been adopted as part of the district's plan for attainment. 2) Prohibits a district from implementing any revisions to an adopted market-based incentive program, unless ARB determines the plan or plan revision complies with the above requirements. 3) Requires, if ARB determines a plan or plan revision does not meet the specified requirements for a market-based incentive program, that ARB do all the following: a) Notify the district; b) Revise the plan or plan revision so that it complies with specified requirements; and c) Approve the plan or plan revision. 4) Specifies that the above plan or plan revision approved by ARB must take effect immediately and is binding on the district. 5) Requires, if ARB determines a district rule does not meet the specified requirements for a market-based incentive program, ARB do all the following: a) Notify the district; b) Revise the rule so that it complies with specified requirements; and c) Adopt the rule. SB 1387 (De León) Page 3 of ? 6) Specifies that the above rule approved by ARB must take effect immediately and have the same legal force and effect as a district rule. 7) Expands the SCAQMD Governing Board, from 13 to 16 members, with the additional members appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly. 8) Requires the above appointees be representatives of a bona fide nonprofit environmental justice organization that advocates for clean air and pollution reductions in one or more communities within the South Coast air basin. Related Legislation: AB 1288 (Atkins, Chapter 586, Statutes of 2015) expanded the Board membership of ARB from 12 to 14 members, and required that those members be persons who work directly with pollution-burdened and vulnerable communities. Staff Comments: According to the author, "The SCAQMD is one of the leading voices for clean air and climate pollution reductions in the southern California region. In the past six months, with its recent changes in governance, it has voted to dismiss its longstanding executive officer and weaken clean air regulations over its expert staff's recommendations. Outside parties have worked to reduce diversity on the board and to install a majority that is more concerned with polluters than with public health. SB 1387 seeks to modernize the membership of the governing board and to ensure the ARB can conduct speedy oversight of any amendments to smoke stack regulations made by the new board." -- END -- SB 1387 (De León) Page 4 of ?