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
          
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          |Version: April 7, 2016          |Policy Vote: E.Q. 5 - 2         |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 9, 2016       |Consultant: Narisha Bonakdar    |
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          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). 







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       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  








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             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.









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          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."




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