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HomeMy WebLinkAboutCC AG PKT 2004-05-24 #O • AGENDA REPORT 64D. h 35 d` DATE: May 24, 2004 TO: Honorable Mayor and City Council d ) THRU: John B. Bahorski, City Manager FROM: June Yotsuya, Assistant City Manager SUBJECT: ADOPTION OF RESOLUTION IN SUPPORT OF SB1397 - (ESCUTIA) PROVIDING AUTHORITY TO SCAQMD TO REGULATE EMISSIONS OF AIR CONTAMINANTS FROM LOCOMOTIVES AND RAIL YARDS SUMMARY OF REQUEST: City Council is requested to adopt a resolution supporting SB1397 (Escutia) that will provide authority to SCAQMD to regulate air contaminant emissions from locomotives and rail yards. DISCUSSION: The South Coast Air Quality Management District (SCAQMD) is responsible for ensuring that the South Coast Air Basin meet federal clean air standards. Since its creation by the California Legislature in 1977, it has made significant progress in reducing air pollution from stationary sources such as manufacturers, refineries and small businesses. However, the SCAQMD does not have authority to regulate pollution emissions from mobile sources such as trains, planes, ships, trucks and cars, that account for over 75% of pollution emissions in the region. Pollution from those sources may prevent the Basin from achieving clean air standards by the legally mandated federal deadline of 2010. Failure to meet this deadline may result in more economic and business constraints by the federal government and a loss of federal transportation dollars. SB1397 would authorize the SCAQMD, to the extent permissible under federal law, to (1) adopt regulations regarding non -road vehicle retrofit requirements; and (2) set and collect a mitigation fee on railways. The SCAQMD is seeking support for this legislation. FINANCIAL IMPACT: No projected direct fiscal impact to cities. Agenda Item 0 May 24, 2004 City Council Agenda Report- Support of SB1397- SCAQMD Authority over Locomotive and Rail Yard Air Contaminant Emissions Page 2 RECOMMENDATION: City Council to consider the adoption of Resolution No. supporting SB1397 (Escutia) that will provide authority to SCAQMD to regulate air contaminant emissions from locomotives and rail yards. Submitted by: e Yot a, Assistant City Manager NOT • A D , PPROVED John B. : or• ', City Manager Att. ents • AMENDED IN SENATE APRIL 29, 2004 AMENDED IN SENATE APRIL 16, 2004 AMENDED IN SENATE APRIL 1, 2004 SENATE BILL No. 1397 Introduced by Senator Escutia February 18, 2004 An act to add Article 4.5 (commencing with Section 40459.5) to Chapter 5.5 of Part 3 of the Health and Safety Code, relating to air pollution. LEGISLATIVE COUNSEL'S DIGEST SB 1397, as amended, Escutia. Air pollution: South Coast Air Quality Management District: emissions of air contaminants: locomotives and rail yards. (1) Existing law designates the State Air Resources Board as the state agency charged with coordinating efforts to attain and maintain ambient air quality standards. Existing law generally designates the state board as the state agency with the primary responsibility for the control of vehicular air pollution, and air pollution control districts and air quality management districts with the primary responsibility for the control of air pollution from all sources other than vehicular sources. Existing law, the Lewis - Presley Air Quality Management Act, designates the South Coast Air Quality Management District as the sole and exclusive authority within the South Coast Air Basin with the responsibility for comprehensive air pollution control. Existing law, the federal Clean Air Act, prohibits any state from adopting or enforcing any standard relating to the control of emissions from new motor vehicles or new motor vehicle engines, but requires the Administrator 96 r SB 1397 — 2 — of the federal Environmental Protection Agency to waive that prohibition, or authorize California to adopt and enforce standards relating to nonroad vehicles and locomotives, if California determines that the state standards are at least as protective of human health as the federal standards. This bill would, notwithstanding any other provision of law, and to the extent permissible under federal law, authorize the south coast district to adopt regulations requiring the owner or lessee of any heavy -duty motor vehicle, nonroad engine, and nonroad vehicle, as those terms are defined in federal law, to install retrofit controls to reduce emissions of air contaminants to the maximum extent feasible, if that vehicle or engine operates substantially in a rail yard in the south coast district and is part of a fleet of 15 or more vehicles or engines that are operated by a single owner or lessee. The bill would prohibit any regulation adopted pursuant to that authority that is applicable to motor vehicles from having an implementation date prior to January 1, 2007. The bill would require the state board to submit any regulations adopted by the south coast district to the federal Environmental Protection Agency for a waiver from, or the authorization to enforce the state standards in lieu of, any existing federal standards. The bill would require the south coast district board to adopt binding and enforceable rules to achieve fair share emission reduction targets to be met by locomotives operating within the Alameda Corridor, eastern corridor rail lines, and the Route 710 corridor to assist in attaining federal one -hour ozone, PM 10, 8 -hour ozone, and PM2.5 standards, and applicable state standards. The bill would specifically require any targets relating to the federal one -hour ozone standard and the PM10 standard to be established by December 31, 2005. The bill would require the south coast district board to establish an advisory committee to make recommendations to the district board relating to those fair share emission reduction targets. The bill would authorize the south coast district, on or after January 1, 2006, to adopt by regulation a reasonable mitigation fee on railroad companies that operate in whole or in part within the Counties of Los Angeles, Orange, Riverside, or San Bernardino, but would prohibit the south coast district from taking those actions if all of the affected railroads have entered into a binding agreement with the south coast district board to meet the fair share emission reduction target established pursuant to the bill, or if the United States Environmental Protection Agency has adopted regulations that will fully meet those 96 r — 3 — SB 1397 fair share emission reduction targets. The bill would prohibit the south coast district board from imposing the mitigation fee unless it first determines that (1) there is a clear nexus between the activities for which the fee is charged and the pollution impacts sought to be mitigated; (2) the fee is necessary to mitigate the adverse impacts on health and the environment caused by air pollution resulting from the activities for which the fee is imposed; (3) the fee does not exceed the reasonable costs of mitigating the identified air pollution impacts resulting from those operations; (4) the fee will not result in a significant adverse impact on air quality in any area in the south coast district as a result of shifting traffic from rail to other forms of transportation; and (5) the fee is apportioned in a manner that bears a fair and reasonable relationship to the air pollution impacts caused by each feepayer's operations. The bill would authorize the revenues resulting from the imposition of the mitigation fee to be used by the south coast district only to mitigate the emission impacts of the activity or activities for which the fee is imposed, including, but not limited to, mitigating or avoiding emissions from vehicle idling at rail crossings in the Counties of Los Angeles, Orange, Riverside, or San Bernardinond. The bill would require ,:: . - - - - - - - - - - - - ' - - - • : .. :. . :. .. :. . . - , . .- - -: . : the south coast district beafd to ensure that not less than 50% of the funds are expended in a manner that directly reduces air contaminants or reduces the public health risks associated with air contaminants, including, but not limited to, airborne toxics and particulate matter, in communities in the Alameda Corridor, the Alameda Corridor East, and the Route 710 corridor with the most significant exposure to air contaminants or localized air contaminants, or both, including, but not limited to, communities of minority populations or low - income populations. The bill would require the south coast district board to proportionately reduce the applicable fair share target in establishing the emissions to be mitigated by the fee if all of the affected railroads have entered into a binding agreement with the state board, or the United States Environmental Protection Agency has adopted regulations, that partially meet the established fair share targets. The bill would require the south coast district board, after holding at least one public hearing, and taking into consideration any recommendations of the advisory committee, but prior to expending 96 • L SB 1397 — 4 — any revenues resulting from the imposition of the mitigation fee, to adopt a program of projects for the expenditure of those revenues. The bill would require the program of projects to include an identification of proposed expenditures that sets forth the expected costs and the quantitative and qualitative emission reduction benefits of each proposed program, and an identification of the cost - effectiveness of each proposed project, or in the case of an air toxics emission reductions project, a quantification of the expected benefit of each project. The bill would require the south coast district, within 18 months after adopting the program of projects, and by March 31 of each year thereafter, to issue a public report on the amount and use of the revenue received as mitigation fees in the prior year. The bill would exempt any passenger rail equipment operating in the south coast district from the provisions of the bill. The bill would impose a state - mandated local program by imposing additional duties on the south coast district. The bill would make legislative findings and declarations relating to the emissions of air contaminants contributed to the South Coast Air Basin by locomotives, and the need for emissions from locomotives to be controlled or mitigated to attain state and federal standards for ozone and particulate matter. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. (a) The Legislature fmds and declares all of the 2 following: 3 (1) The South Coast Air Basin is one of two extreme 4 nonattainment air basins in the United States, and achieving 5 attainment of federal and state public health standards will require 6 extraordinary effort by federal, state, and local regulatory 7 authorities working in concert. 96 r — 5 — SB 1397 1 (2) Federal and state health -based ambient air quality standards 2 for ozone and PM10 are exceeded regularly and by a wide margin 3 in the South Coast Air Basin. 4 (3) The federal Environmental Protection Agency has recently 5 adopted more stringent 8 -hour ozone and PM2.5 standards that 6 will require even greater emission reductions in the South Coast 7 Air Basin. 8 (4) Air pollution emissions from locomotives in the South 9 Coast Air Basin contribute significantly to exceedances of federal 10 and state ozone and PM10 standards, as well as to emissions of 11 diesel exhaust, a toxic air contaminant. 12 (5) In order to attain state and federal standards for ozone and 13 PM2.5, it is necessary that emissions from locomotives be 14 controlled or otherwise mitigated. 15 (6) The federal Environmental Protection Agency has 16 authority to adopt regulations limiting emissions from 17 locomotives, but state and local regulatory authority to control 18 emissions of air contaminants from locomotives is restricted by 19 federal law. In order to attain state and federal ambient air quality 20 standards, it is necessary that emissions from locomotives be 21 controlled or mitigated by the federal government or, if necessary, 22 by state or local governments using the authority available to them. 23 (7) In 1998, the State Air Resources Board entered into a 24 memorandum of understanding with the Burlington Northern and 25 Santa Fe Railroad Company, and the Union Pacific Railroad 26 Company, under which the railroads agreed to utilize locomotives 27 in the South Coast Air Basin that meet certain emissions 28 limitations. 29 (8) In 2003, the South Coast Air Quality Management District 30 adopted the most recent revision to its air quality management 31 plan. That plan includes stringent emissions standards for 32 factories, powerplants, on -road and off -road mobile sources, and 33 other sources that are within the regulatory jurisdiction of the south 34 coast district and the State Air Resources Board, including, but not 35 limited to, sources that, like locomotives, are powered by diesel 36 engines. The percentage of emission reductions that will be 37 achieved by significant sources subject to state and local authority 38 is substantially greater than the percentage of emissions reductions 39 that will be achieved by locomotives under existing federal 40 regulations and that memorandum of understanding. 96 n SB 1397 — 6 — 1 (9) The 2003 south coast district plan proposes a significant 2 amount of emissions reductions through means that are yet to be 3 specifically determined. To the extent that emissions from 4 locomotives are not controlled, additional emissions reductions 5 from sources subject to state and local regulatory jurisdiction, 6 which have already been stringently regulated, will be required. 7 (10) One means of mitigating emissions from locomotives is 8 by funding programs to reduce equivalent emissions from other 9 sources that contribute to ozone, PM10, PM2.5, or toxic air 10 pollution. For example, the lack of grade separations between rail 11 lines and surface streets in the South Coast Air Basin contributes 12 to emissions from idling vehicles and is an indirect emissions 13 impact of increasing rail traffic in the Alameda Corridor and 14 eastern corridor rail lines. Funds developed through a locomotive 15 emissions mitigation program could be utilized to establish 16 additional grade separations, as well as other control strategies. 17 (11) Unless and until the federal Environmental Protection 18 Agency adopts regulations requiring locomotives in the South 19 Coast Air Basin to achieve all feasible emission reductions as 20 necessary to achieve federal clean air standards, the south coast 21 district should be authorized to adopt a locomotive emission 22 reduction and mitigation program. That program could be based 23 on a mitigation fee for locomotive emissions that is proportionate 24 to the health and environmental harms resulting from those 25 emissions, provided the mitigation fee does not result in a shift or 26 increase in emissions to other parts of that basin. 27 (b) It is therefore necessary that legislation authorize the south 28 coast district to implement a locomotive emission reduction and 29 mitigation program, based on specific principles and criteria. 30 SEC. 2. Article 4.5 (commencing with Section 40459.5) is 31 added to Chapter 5.5 of Part 3 of the Health and Safety Code, to 32 read: 33 40459.5. (a) The purpose of this article is to authorize the 34 establishment of a locomotive emission reduction and mitigation 35 program in the south coast district. 36 (b) It is the intent of the Legislature that the criteria and 37 principles for a locomotive emission reduction and mitigation 38 program include, but not be limited to, the following: 39 (1) Emissions from all significant sources of air pollution in the 40 south coast district should be controlled as expeditiously as 96 — 7 — SB 1397 1 practicable and to the extent feasible in order to ensure that no 2 source category will bear an unfair burden to achieve clean air. 3 (2) Emission reduction strategies for particular source 4 categories should keep pace with emission reduction schedules 5 required of other source categories using similar equipment. 6 (3) Control strategies shall take into consideration any net 7 emission increases due to the shifting of emissions to other source 8 categories prior to the implementation of the control strategy. 9 (4) Emission control strategies should achieve expeditious 10 benefits from application of existing control technologies, and 11 should provide incentives or requirements for future technological 12 advances. 13 (5) In appropriate cases, mitigation programs to reduce 14 emissions from significant sources, including, but not limited to, 15 a program for those sources to fund emission control projects, 16 should be required. 17 (6) Control programs directed at mobile sources should 18 consider routing the lowest- emitting equipment currently 19 available to areas with the most extreme air quality problems. 20 (7) Emission control strategies should be enforceable to a 21 degree comparable to existing programs adopted by the south 22 coast district. 23 (8) Emission control strategies should be based on the best 24 available technical evidence, and should be designed to minimize 25 adverse socioeconomic impacts. 26 (9) Emission control strategies should be designed with active 27 consideration of the views of, and information submitted by, the 28 affected public and regulated sources. 29 40459.5.1. (a) Notwithstanding any other provision of law, 30 and to the extent permissible under federal law, the south coast 31 district may adopt regulations requiring the owner or lessee of any 32 heavy -duty motor vehicle, nonroad engine, and nonroad vehicle 33 to install retrofit controls to reduce emissions of air contaminants 34 to the maximum extent feasible, as determined by the south coast 35 district, if that vehicle or engine meets both of the following 36 criteria: 37 (1) Operates substantially in a rail yard in the south coast 38 district, as determined by the south coast district. 39 (2) Is part of a fleet of 15 or more vehicles or engines that are 40 operated by a single owner or lessee. 96 • P SB 1397 — 8 — 1 (b) A regulation adopted pursuant to subdivision (a) that is 2 applicable to motor vehicles may not have an implementation date 3 that is prior to January 1, 2007. 4 (c) The state board shall submit any regulations adopted by the 5 south coast district pursuant to this section to the federal 6 Environmental Protection Agency for a waiver pursuant to 7 subdivision (b) of, or authorization pursuant to subdivision (e) of, 8 Section 7543 of Title 42 of the United States Code, if the south . 9 coast district board makes the findings required by those 10 subdivisions. 11 (d) For the purposes of this section, "motor vehicle," 12 "nonroad engine," and "nonroad vehicle" have the same 13 meaning as those terms are defined in Section 7550 of Title 42 of 14 the United States Code. 15 (e) It is the intent of the Legislature that, in adopting regulations 16 pursuant to this section, the south coast district board grant priority 17 to reducing emissions of air contaminants from vehicles and 18 engines that contribute to air pollution problems in areas impacted 19 by the Alameda Corridor, eastern corridor rail lines, and the Route 20 710 corridor, as determined by the south coast district. 21 40459.5.2. (a) The south coast district board shall adopt 22 binding and enforceable rules to achieve fair share emission 23 reduction targets to be met by locomotives operating within the 24 Alameda Corridor, eastern corridor rail lines, and the Route 710 25 corridor, to assist in attaining federal one -hour ozone, PM10, 26 eight -hour ozone, and PM2.5 standards, and applicable state 27 standards. These targets may be adopted as part of, or pursuant to, 28 any air quality management plan required by state or federal law. 29 For the federal one -hour ozone standard and the PM 10 standard, 30 the targets shall be established by December 31, 2005. 31 (b) The south coast district board shall establish an advisory 32 committee to make recommendations to the district board on all 33 of the following: 34 (1) The fair share emission reduction target. 35 (2) The amount of the mitigation fee imposed pursuant to 36 Section 40459.5.3. 37 (3) The program of projects funded by fee revenues adopted 38 pursuant to Section 40459.5.4. 39 (c) In establishing the fair share emission reduction target, the 40 south coast district board shall consider at a public meeting any 96 r — 9 — SB 1397 1 recommendations of the advisory committee established pursuant 2 to subdivision (b). 3 40459.5.3. (a) (1) On or after January 1, 2006, the south 4 coast district board may adopt by regulation a reasonable 5 mitigation fee and impose that fee upon railroad companies that 6 operate in whole or in part within the Counties of Los Angeles, 7 Orange, Riverside, or San Bernardino after making the findings 8 specified in subdivision (b). In determining the amount of that fee, 9 the district board shall consider at a public meeting any 10 recommendations of the advisory committee established pursuant 11 to Section 40459.5.2. 12 (2) Notwithstanding the authority granted to the south coast 13 district board to impose a mitigation fee pursuant to paragraph (1), 14 the south coast district board may not impose that mitigation fee 15 if either of the following has occurred: 16 (A) All of the affected railroads have entered into a binding 17 agreement with the south coast district board to meet the fair share 18 emission reduction target established pursuant to Section 19 40459.5.2. 20 (B) The United States Environmental Protection Agency has 21 adopted regulations that will fully meet the fair share emission 22 reduction targets established pursuant to Section 40459.5.2. 23 (b) A mitigation fee may not be imposed pursuant to 24 subdivision (a) unless the south coast district board has made all 25 of the following findings: 26 (1) There is a clear nexus between the activities for which the 27 fee is charged and the pollution impacts sought to be mitigated: 28 (2) The fee is necessary to mitigate the adverse impacts on 29 health and the environment caused by air pollution resulting from 30 the activities for which the fee is imposed. 31 (3) The fee does not exceed the reasonable costs of mitigating 32 the identified air pollution impacts resulting from those 33 operations, including vehicle idling at rail crossings. 34 (4) The fee will not result in a significant adverse impact on air 35 quality in any area in the south coast district as a result of shifting 36 traffic from rail to other forms of transportation. 37 (5) The fee is apportioned in a manner that bears a fair and 38 reasonable relationship to the air pollution impacts caused by each 39 feepayer's operations. 96 r SB 1397 — 10 — 1 (c) (1) The revenues resulting from the imposition of the fee 2 described in subdivision (a) may only be used by the south coast 3 district to mitigate the emission impacts of the activity or activities 4 for which the fee is imposed, including, but not limited to, 5 mitigating or avoiding emissions from vehicle idling at rail 6 crossings in the Counties of Los Angeles, Orange, Riverside, or 7 San Bernardino. 8 (2) The south coast district shall 9 fcc revenues to those communitics most impacted by 10 ... .. . . -, . - -- - -. , -- .. 11 tlistriet-bear-d7 ensure that not less than 50 percent of the funds are 12 expended in a manner that directly reduces air contaminants or 13 reduces the public health risks associated with air contaminants, 14 including, but not limited to, airborne toxics and particulate 15 matter, in communities in the Alameda Corridor, the Alameda 16 Corridor East, and the Route 710 corridor with the most 17 significant exposure to air contaminants or localized air 18 contaminants, or both, including, but not limited to, communities 19 of minority populations or low - income populations. 20 (d) The south coast district board shall proportionately reduce 21 the applicable fair share emission reduction target in establishing 22 the emissions to be mitigated by the fee if all of the affected 23 railroads have entered into a binding agreement with the state 24 board, or the United States Environmental Protection Agency has 25 adopted regulations, that partially meet the established fair share 26 emission reduction target established pursuant to Section 27 40459.5.2. 28 (e) Not more than five percent of the annual revenues derived 29 from the fee may be used for administration of the fee and the 30 mitigation program established by this article, including 31 mitigating or avoiding emissions from vehicle idling at rail 32 crossings. This five- percent limitation does not include actual 33 program implementation. 34 40459.5.4. (a) After holding at least one public hearing, and 35 taking into consideration any recommendations of the advisory 36 committee established pursuant to Section 40459.5.2, but prior to 37 expending any revenues resulting from the imposition of the 38 mitigation fee authorized by Section 40459.5.3, the south coast 39 district board shall adopt a program of projects for the expenditure 40 of those revenues. 96 r — 11 — SB 1397 1 (b) The program of projects shall include both of the following: 2 (1) An identification of proposed expenditures that sets forth 3 the expected costs and the quantitative and qualitative emission 4 reduction benefits of each proposed program. 5 (2) An identification of the cost - effectiveness of each proposed 6 project, or in the case of an air toxics emission reductions project, 7 a quantification of the expected benefit of each project. 8 (c) Within 18 months after first adopting a program as specified 9 in this section, and by March 31 of each year thereafter, the south 10 coast district shall issue a public report that sets forth all of the 11 following: 12 (1) The revenue received as mitigation fees in the prior fiscal 13 year. 14 (2) The actual costs of the projects funded during the prior 15 fiscal year. 16 (3) The results achieved during the prior fiscal year. 17 (4) How these results compare with the expected costs and 18 benefits. 19 (5) Any problems that were encountered in implementing the 20 projects during the prior fiscal year. 21 40459.5.5. This article does not apply to any passenger rail 22 equipment operating in the South Coast Air Basin. 23 SEC. 3. No reimbursement is required by this act pursuant to 24 Section 6 of Article XIII B of the California Constitution because 25 the only costs that may be incurred by a local agency or school 26 district are the result of a program for which legislative authority 27 was requested by that local agency or school district, within the 28 meaning of Section 17556 of the Government Code and Section 29 6 of Article XIII B of the California Constitution. 0 96 P � SEAI g ` 011 Se.a, geacg. �� ���RPOR4TF�"� a o � o• �� 0UNTV C CITY HALL 211 EIGHTH STREET SEAL BEACH. CALIFORNIA 90740 (562) 431 -2527 • y vw.ci.scal- heach.ca.us May 27, 2004 The Honorable Ross Johnson State Senate, 35 District State Capitol, Rom 3063 Sacramento, CA 95814 Dear Senator Johnson, On May 24, 2004, the Seal Beach City Council passed Resolution No. 5235 in support of Senate Bill 1397, sponsored by Senator Martha Escutia. This bill would authorize the South Coast Air Quality Management District (SCAQMD), to the extent permissible under federal law, the ability to adopt regulations for non -road, vehicle retrofit requirements. In addition, SCAQMD would also be able to set and collect a mitigation fee on railways. The South Coast Air Quality Management District is responsible for ensuring that the • South Coast Air Basin meet federal clean air standards. Since its creation by the California Legislature in 1977, it has made significant progress in reducing air pollution from stationary sources such as manufacturers, refineries and small businesses. However, the SCAQMD does not have authority to regulate pollution emissions from mobile sources such as trains, planes, ships, trucks and cars, that account for over 75% of pollution emissions in the region. Pollution from those sources may prevent the Basin from achieving clean air standards by the legally mandated federal deadline of 2010. Failure to meet this deadline may result in more economic and business constraints by the federal government and a loss of federal transportation dollars. SB1397 would assist the district in fulfilling its mandate. Your assistance in passage of SB1397 is greatly appreciated. Sincerely, - Paul Yost Mayor • ' OD EA pOAPO 4 7��'�Ck C 0 Ac k i-,i4 k mobiL_ )*$ o ce422 � �G'� ' ° �Fg27 19` C °LINTY C P CITY HALL 211 EIGHTH STREET SEAL BEA CALIFORNIA 90740 (562) 431 -2527 • 1cV, ,V1c ciscal- beach.La.us May 27, 2004 The Honorable Tom Harmon State Assembly, District 67 P.O. Box 942849 Sacramento, CA 94249 -0067 Dear Assemblyman Harmon, On May 24, 2004, the Seal Beach City Council passed Resolution No. 5235 in support of Senate Bill 1397, sponsored by Senator Martha Escutia. This bill would authorize the South Coast Air Quality Management District (SCAQMD), to the extent permissible under federal law, the ability to adopt regulations for non -road, vehicle retrofit requirements. In addition, SCAQMD would also be able to set and collect a mitigation fee on railways. The South Coast Air Quality Management District is responsible for ensuring that the South Coast Air Basin meet federal clean air standards. Since its creation by the California Legislature in 1977, it has made significant progress in reducing air pollution from stationary sources such as manufacturers, refineries and small businesses. However, the SCAQMD does not have authority to regulate pollution emissions from mobile sources such as trains, planes, ships, trucks and cars, that account for over 75% of pollution emissions in the region. Pollution from those sources may prevent the Basin from achieving clean air standards by the legally mandated federal deadline of 2010. Failure to meet this deadline may result in more economic and business constraints by the federal government and a loss of federal transportation dollars. SB1397 would assist the district in fulfilling its mandate. Your assistance in passage of SB1397 is greatly appreciated. Sincerely, _ i i-.0 ', Paul Yost Mayor