[Senate Report 110-500]
[From the U.S. Government Publishing Office]
Calendar No. 1078
110th Congress Report
2d Session SENATE 110-500
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AN ACT TO ADDRESS THE HEALTH AND ECONOMIC DEVELOPMENT IMPACTS OF
NONATTAINMENT OF FEDERALLY-MANDATED AIR QUALITY STANDARDS IN THE SAN
JOAQUIN VALLEY, CALIFORNIA, BY DESIGNATING AIR QUALITY EMPOWERMENT
ZONES
_______
September 24, 2008.--Ordered to be printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 3565]
together with
MINORITY VIEWS
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred the bill (S. 3565) to address the health and economic
development impacts of nonattainment of federally-mandated air
quality standards in the San Joaquin Valley, California, by
designating air quality empowerment zones, reports favorably
thereon, and recommends that the bill do pass.
PURPOSES OF THE LEGISLATION
This legislation would address the health and economic
development impacts of nonattainment of federally mandated air
quality standards in the San Joaquin Valley, California, by
designating air quality empowerment zones within the Valley
that may apply for federal grants for the purpose of replacing
or retrofitting polluting vehicles and engines in order to
improve the health of the population living in the zones. This
legislation is intended to establish an empowerment zone model
that may be applied in the future elsewhere to address areas
heavily impacted by air pollution.
GENERAL STATEMENT AND BACKGROUND
The San Joaquin Valley faces serious air quality challenges
that impact the health, development, and economy of the Valley.
The San Joaquin Valley Air Basin has been designated under the
Clean Air Act as a nonattainment area with respect to the 8-
hour ozone standard and the PM2.5 standard. In order
to meet the 8-hour ozone standard under the Clean Air Act, the
Valley would have to reduce its nitrogen oxide emissions to not
more than 160 tons per day from the current emissions of
approximately 624 tons per day.
Elevated ozone levels in the Valley contributes to asthma
rates that are 3 times the State average and 5 times the
national average. Nonattainment of the Clean Air Act standards
costs the Valley more than $3 billion annually. This
legislation will address these serious air quality challenges
by authorizing the designation of geographical areas within the
Valley as air quality empowerment zones that are eligible for
Federal grants and technical assistance, to benefit the
residents of the zone through improved air quality and health.
These funds will be used to replace or retrofit heavily-
polluting vehicles or engines in order to improve the health of
the population living in the zones.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 would provide that the Act may be cited as the
``Air and Health Quality Empowerment Zone Designation Act of
2008''.
Section 2. Purpose
Section 2 would state that the purpose of the Act is to
establish criteria for the designation of specific geographic
areas as air and health quality empowerment zones that may
apply for grants authorized for the purpose of replacing or
retrofitting polluting vehicles or engines in order to improve
the health of the population living in the zones.
Section 3. Findings
Section 3 finds that the San Joaquin Valley faces serious
air quality challenges that impact the health, development, and
economy of the Valley, and that the failure of the Valley to
meet the Clean Air Act standards for ozone and PM2.5
contributes to school absences due to illness, asthma rates
that are 3 times the State average and 5 times the national
average, and costs the Valley more than $3 billion annually, an
area with chronic double-digit unemployment rates. Section 3
further finds that the Federal Government must partner with the
Valley and the State to address air quality, health and
economic development for Valley residents through designation
of areas within the Valley as air quality empowerment zones
that are eligible for Federal grants and technical assistance.
Section 4. Definitions
Section 4 would define the term ``Administrator'' to mean
the Administrator of the Environmental Protection Agency (EPA).
The term ``Agency'' would be defined to mean the EPA. Section 4
would define the term ``Clean Air Act'' to mean the Clean Air
Act (42 U.S.C. 7401 et seq.). The term ``PM2.5''
would be defined to mean particulate matter with a diameter
that does not exceed 2.5 micrometers. The term ``Strategic
Plan'' would be defined to mean, with respect to an area, the
plan contained in the application for designation of the area
under Section 5 of the Act. Finally, Section 4 would define the
term ``Valley'' to mean the San Joaquin Valley, California.
Section 5. Air Quality Empowerment Zone designation procedures
Section 5 would provide that the Administrator of EPA may
designate areas nominated for designation under this section as
air and health quality empowerment zones. The designation would
remain in effect for 10 years or until the Administrator
revokes the designation. The Administrator may revoke the
designation if the Administrator determines that the local air
pollution district in which the designated area is located has
been designated as being in attainment with the
PM2.5 and ozone standards under the Clean Air Act,
or is not complying substantially with, or fails to make
progress in achieving the goals of, the strategic plan.
No area may be designated an air and health quality
empowerment zone unless the area is nominated by the air
pollution control district with jurisdiction over the area, the
air pollution control district provides written assurances to
the Administrator that the strategic plan will be implemented,
and the Administrator determines that the information provided
is reasonably accurate. The Application for designation must
demonstrate that the area meets the eligibility criteria in
section 6 of the Act, and must include a strategic plan for
accomplishing the purposes of the Act. The strategic plan must
describe: the process by which the area is a full partner in
developing and implementing the plan; the extent to which local
institutions and organizations have contributed to the planning
process; the State, local, and private resources that will be
available and the public/private partnerships that will be
used; the funding requested under any Federal program in
support of the Act; baselines, methods, and benchmarks for
measuring success; and other information that may be required
by the Administrator.
Section 6. Eligibility criteria
Section 6 would provide that a nominated area is eligible
only if the area: (1) has been designated as being in extreme
nonattainment of the 8-hour ozone national ambient air quality
standard (NAAQS) and the NAAQS for PM2.5; (2) the
nominated area has emissions of nitrogen oxides from farm
equipment of at least 30 tons per day or emissions of volatile
organic compounds from farming operations of at least 40 tons
per day in calendar year 2010; (3) the area meets or exceeds
the national average in asthma rates or school days missed due
to the adverse health impacts of elevated ozone levels; (4) the
area experiences unemployment rates higher than the national
average; and (5) the State or local government will match at
least 50% of the funds provided by the Federal Government under
the Act.
Section 7. Eligible grant applicants
Section 7 would provide that any air pollution control
district or other local government entity authorized to
regulate air quality in a State under the Clean Air Act may
apply for a grant under the Act.
Section 8. Authorization of Air and Health Empowerment grants
Section 8 would authorize grants to areas designated air
and health quality empowerment zones under the Act, in an
amount determined by the Administrator based on need and the
information provided in the application.
Section 8 would require the Administrator to make a grant
to each designated air and health quality empowerment zone on
the date of the designation and again on the first day of the
first fiscal year that begins after the date of the
designation.
Section 8 would require the air pollution control district
or other local government entity with Clean Air Act
jurisdiction over the empowerment zone to oversee the use of
the grant funds. The grant funds can be used only to carry out
activities that achieve the purposes of the Act, in accordance
with the strategic plan, and for activities that benefit the
residents of the zone through improved air quality and health.
Section 8 would authorize the appropriation to the
Administrator of $20,000,000 for each of fiscal years 2009
through 2013 to provide grants under this Act.
LEGISLATIVE HISTORY
This legislation was sponsored by Senator Boxer. The
Committee on Environment and Public Works met on September 17,
2008, when it was ordered favorably reported by voice vote.
HEARINGS
The Committee did not hold hearings on this legislation
during the 110th Congress.
ROLLCALL VOTES
There were no rollcall votes. The Committee on Environment
and Public Works met to consider this legislation on September
17, 2008. A quorum of the Committee being present, it was
reported favorably without amendment by a voice vote.
REGULATORY IMPACT STATEMENT
In compliance with section 11(b)(2) of rule XXVI of the
Standing Rules of the Senate, the Committee states that there
are not expected to be regulatory costs to private entities
under this legislation, which provides grants to retrofit or
replace polluting vehicles or engines.
MANDATES ASSESSMENT
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the Committee finds that this legislation
would impose no Federal intergovernmental unfunded mandates on
State, local or tribal governments, and does not impose private
sector mandates.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
September 24, 2008.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for the Air and Health
Quality Empowerment Zone Designation Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 3565--Air and Health Quality Empowerment Zone Designation Act of
2008
Summary: This legislation would authorize the Environmental
Protection Agency (EPA) to create air quality empowerment zones
in the San Joaquin Valley in California. Certain entities
within those zones would then be eligible for grants to fund
the replacement or retrofitting of vehicles or engines to
reduce air pollution. The bill would authorize the
appropriation of $20 million for each of fiscal years 2009
through 2013 for EPA to provide such grants. Assuming
appropriation of the authorized amounts, CBO estimates that
implementing this legislation would cost $82 million over the
2009-2013 period and $18 million after 2013. Enacting the bill
would not affect direct spending or revenues.
This legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of this bill is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment). For this estimate, CBO
assumes that this legislation will be enacted near the start of
fiscal year 2009 and that the amounts authorized by the bill
will be appropriated each year. Estimated outlays are based on
historical spending patterns for similar programs.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
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2009 2010 2011 2012 2013 2009-2013
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CHANGES IN SPENDING SUBJECT TO APPROPRIATIONAuthorization Level..................................... 20 20 20 20 20 100
Estimated Outlays....................................... 8 16 18 20 20 82
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Intergovernmental and private-sector impact: This
legislation contains no intergovernmental or private-sector
mandates as defined in UMRA. Local governments and pollution
control districts would benefit from grants authorized by the
bill. Any costs to those entities, including matching funds to
comply with grant conditions, would be incurred voluntarily.
Estimate prepared by: Federal Costs: Susanne S. Mehlman;
Impact on State, Local, and Tribal Governments: Burke Doherty;
and Impact on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
MINORITY VIEWS OF SENATOR INHOFE
The Air and Health Quality Empowerment Zone Designation Act
of 2008 should be opposed and returned to the Environment and
Public Works Committee by the full Senate until a more
equitable solution is agreed to that does not ignore the
problems that other areas in the country are facing with
nonattainment. This bill addresses the health and economic
development impacts of nonattainment of federally mandated air
quality standards in the San Joaquin Valley, California, by
designating air quality empowerment zones within the Valley.
While the bill has good intentions to help address the severe
air quality situation in the San Joaquin valley, it
unfortunately amounts to an earmark specifically for the Valley
area.
I have been supportive of the use of diesel retrofits in
the past as the most cost effective method in reducing
NOX and particulate matter emissions. But rather
than creating another separate grant program that authorizes
$20 million annually and specifically eliminates the
consideration of other eligible areas that have attainment
problems, I support efforts to help all other areas who are
struggling to meet their attainment goals in an equitable
manner. While the bill's author claims the Act is to function
as a demonstration program, nothing in the Act calls for it to
be evaluated by an independent body or leaves it open to
expansion of other eligible areas.
I note that these struggling areas, including the San
Joaquin valley, will only increase as the planning gets
underway for the newly revised ozone and PM2.5
designations. These new designations will add more pressure on
struggling local economies and industries in these uncertain
economic times. I look forward to working in a bipartisan
manner on a more comprehensive approach that will address these
challenges to ensure that our most vulnerable areas of this
country in nonattainment can continue to achieve economic
prosperity while their air becomes cleaner.
James M. Inhofe.
CHANGES IN EXISTING LAW
Section 12 of rule XXVI of the Standing Rules of the Senate
requires the committee to publish changes in existing law made
by the bill as reported. Passage of this bill will make no
changes to existing law.