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Environment, Energy and Transportation Program

Clean Air Newsletter

A Quarterly Review of Legislation and Air Quality Issues

June 2003
Vol. 7, No. 2

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IN THIS ISSUE

FEDERAL ACTIONS

EPA Proposes Non-Road Diesel Emission Reductions
EPA Proposes Implementation Strategy for 8-Hour Ozone Standard
EPA Approves Regional Haze Plan

STATE ACTIONS

Texas Emissions Reduction Plan Closer to Full Funding
Indiana Legislature Passes NSR Bill; Governor Vetoes Legislation
California Legislation Challenges Federal NSR Reforms
California Air Resources Board Modifies ZEV Regulation

NCSL MEETINGS

STATE LEGISLATION

Summaries of Selected 2003 State Air Quality Bills

FEDERAL ACTIONS

EPA Proposes Non-Road Diesel Emission Reductions

Dramatic reductions in the emissions from non-road diesel engines used in construction, agricultural and industrial equipment have been proposed by the U.S. Environmental Protection Agency (EPA). Included in the proposal are stringent non-road engine controls and reductions in the amount of sulfur allowed in diesel fuel. EPA argues that the program not only will achieve vast air quality improvements throughout the country, but also protect the health of all Americans, especially those more susceptible to diesel pollution, such as children and the elderly.

The effective date of the proposal for new engines is 2008, to be fully phased in by 2014. The planned 90 percent emission reductions from today's engines are for particulate matter (PM) and nitrogen oxides (NOx). This is the first time that advanced emission control systems will be incorporated into non-road equipment. The sulfur content of diesel will be reduced from its current uncontrolled level of 3,400 parts per million (ppm) to 500 ppm in 2007; it will then be reduced to 15 ppm in 2010, which will be equivalent to a 99-percent reduction from current levels.

Non-road diesel engines are significant contributors to ozone and PM problems. An estimated 44 percent of diesel PM emissions and 12 percent of NOx (an ozone precursor) emissions from mobile sources nationwide are from non-road diesel engines. Diesel exhaust particles are small enough to be inhaled deep into the lungs and have been linked to cancer, premature death and serious respiratory illness. EPA projects that, by 2030, the new emission standards will annually prevent more than 9,600 premature deaths, 16,000 heart attacks and nearly 1 million work days lost due to illness.

The Federal Register notice for the proposed regulations may be viewed on EPA's Web site. The public comment period for the proposed rule ends August 20, 2003.

EPA Proposes Implementation Strategy for 8-Hour Ozone Standard

The U.S. Environmental Protection Agency (EPA) published a proposed rule in the Federal Register on June 2 that presents two options for states to implement the new 8-hour ozone standard. EPA indicated that the alternative approaches are designed to provide states with as much flexibility as possible to incorporate compliance with the standard into their state implementation plans, and to provide a smooth transition from compliance with the original 1-hour standard to the tougher 8-hour standard.

EPA had originally promulgated the 8-hour ozone standard in July 1997. The new standard reduced the allowable level for ozone from 0.12 parts per million (ppm) to 0.08 ppm and averaged its measurement over an 8-hour period instead of one hour. The U.S. Supreme Court upheld the constitutionality of the standard in challenges filed by some industry groups and states on February 21, 2001, but determined that EPA's implementation strategy was unlawful and remanded the standard to the agency to develop a more reasonable approach. In a unanimous decision handed down March 26, 2002, in the case of American Trucking Associations vs. Environmental Protection Agency, the U.S. Court of Appeals for the District of Columbia Circuit denied a petition for further review of the standard.

Under the federal agency's preferred approach, areas that are in attainment with the 1-hour standard would have greater discretion in devising measures to comply with the 8-hour standard. The proposed rule outlines more detailed requirements for areas that currently do not meet the 1-hour standard. EPA will not designate areas that do not comply with the new standard until April 15, 2004. EPA is accepting comments on the proposed rule through August 1, 2003. The proposed rule is available online.

EPA Approves Regional Haze Plan

On May 22, the U.S. Environmental Protection Agency (EPA) approved changes to its regional haze rule designed to improve visibility in western national parks and wilderness areas. The amended rule would set a cap on emissions of sulfur dioxide (SO2) that would be further reduced each year to achieve an 85 percent reduction in emissions from power plants and other industrial sources between 2003 and 2018. The Western Regional Air Partnership (WRAP) first proposed the revised plan to EPA in 2000. WRAP is a collaborative effort of states, tribes and federal agencies that was set up to develop technical and policy options to comply with the regional haze rule. Under the proposed rule, a secondary SO2 emissions trading program would be triggered if the regional total of SO2 emissions from regulated sources exceeds an annual milestone.

Implementation of the plan depends upon adoption by states in the region no later than December 31, 2003. Although she applauds EPA's adoption of the regional plan, Vickie Patton, senior attorney with Environmental Defense in Boulder, Colorado, noted that, "The western states helped develop this plan, but there will be no air pollution clean-up unless they follow through with concrete action." Arizona, New Mexico, Oregon and Utah anticipate submitting plans to EPA by the end of the year, but some western states have been hesitant to participate. California, Colorado, Idaho and Nevada have expressed reservations about doing so; Wyoming is undecided.

In Colorado, the director of the Department of Public Health and Environment, Doug Benevento, has noted that the state may not benefit from the emissions trading program because Colorado is a "downwind" state that may be the recipient of more pollution from facilities further "upwind" that have purchased pollution allowances from in-state sources. There is also a question of "timing," since the Colorado General Assembly must approve the plan and the legislature adjourned before EPA had approved it.

EPA can expect challenges to the new plan from industry groups. The Center for Energy and Economic Development (CEED) opposes the plan based on a U.S. Circuit Court of Appeals ruling in 2002 that found that EPA could not "group" together emission sources in determining which source had to install pollution control technology. CEED notes that, " ... the degree to which stationary sources can be required to make emission reductions must be tied to a source-by-source review of the costs and benefits of such reductions."

STATE ACTIONS

Texas Emissions Reduction Plan Closer to Full Funding

The Texas Legislature enacted the Texas Emissions Reduction Plan (TERP) in 2001. The plan replaced two regulatory programs with a set of incentive-based programs in an attempt to reduce ozone pollution in the Dallas/Fort Worth and Houston/Galveston nonattainment areas. The primary funding mechanism was a new $225 inspection fee for out-of-state motor vehicles (projected to raise $113 million, or 85 percent of the program's cost).

A state court overturned the fee last year as a violation of the U.S. Constitution's interstate commerce and equal protection clauses, forcing the Legislature to come up with at least $100 million annually to meet all TERP components. Absent new legislation this year, Texas faced having to implement a 2:1 emissions offset program (requiring new facilities to reduce emissions by two tons for every one ton produced, which could significantly affect new development in nonattainment areas) or losing federal highway funds.

The Legislature responded with passage of House Bill 1365. The legislation establishes a new funding mechanism for TERP, comprised primarily of revenue from an increase in the fee on the transfer of a vehicle title from $13 to $33 in nonattainment areas (Dallas/Fort Worth and Houston/Galveston), and from $13 to $25 in areas that meet federal air quality standards. It allocated the funds to two programs created in the original 2001 legislation: 87.5 percent of the revenue will go to the diesel emissions reduction program, and 9.5 percent is earmarked for the new technology research and development program.

The funding package was not easily settled upon; the two chambers had major differences over the primary source of revenue. Although the Senate version of the bill included the formula that eventually was adopted, the House preferred funding the package with a 3-cents-per-gallon tax on bulk diesel shipments. As a tradeoff, the House won approval for language that prohibits the state from lowering the speed limit to comply with air quality standards.

Indiana Legislature Passes NSR Bill; Governor Vetoes Legislation

The Indiana General Assembly became the first state legislature to pass legislation to adopt the federal New Source Review (NSR) program that became effective March 3, 2003. The legislation was vetoed, however, by the governor. Senate Bill 440 requires the state Air Pollution Control Board to issue regulations adopting the U.S. Environmental Protection Agency's new NSR program no later than March 1, 2004. In addition, the bill authorizes the board to prohibit any new major stationary air emission source or major modification of an existing stationary air emission source from causing " ... an emissions increase that will exceed 80 percent of the available growth increment allowed under the prevention of significant deterioration air permit program." The legislation also sets emission limitations for several contaminants, including mercury. SB 440 sunsets these provisions on January 1, 2005.

In drafting the legislation, Senator Beverly Gard, chair of the Senate Environmental Affairs Committee, notes a need for NSR reform because " ... Indiana's manufacturing base has been hit harder than most states in having a large number of aging industrial plants." As a proponent of land conservation measures, she expresses concern that, " ... if these plants are forced to shut down, we'll have unwanted brownfields and development on greenfields." Senator Gard supports the statewide emission caps contained in the new NSR program, which she feels " ... will provide companies with incentives to reduce overall emission limits in the most cost-effective manner." SB 440 can be viewed online.

California Legislation Challenges Federal NSR Reforms

The California Legislature is considering a bill that would adopt the federal New Source Review (NSR) program as it existed before the U.S. Environmental Protection Agency (EPA) issued changes to the program on December 31, 2002. Senate Bill 288, sponsored by the chair of the Senate Environmental Quality Committee, Senator Byron Sher, would require the California Air Resources Board (CARB) to adopt regulations that incorporate all EPA regulations to implement the NSR program that were in effect on December 30, one day before the agency issued its changes. The regulations would have to be "at least as stringent as" those federal rules. In addition, SB 288 would require CARB or an air quality management district to prevent the construction or modification of a major air emission source that fails to comply with the provisions of the bill.

The bill makes a specific determination that " ... the program set forth in this chapter imposes more stringent standards than the new federal 'revised base program'" promulgated in the Federal Register on December 31. It goes on to state that, "Nothing in this chapter prohibits the state or any political subdivision thereof to adopt or enforce any standard or limitation respecting emissions of air pollutants or any requirement respecting control or abatement of air pollution, except that if an emission standard or limitation is in effect under this chapter, such state or political subdivision may not adopt or enforce any emission standard or limitation which is less stringent than the standard or limitation under this chapter."

If enacted, the bill could place California at odds with EPA over which NSR approach-the "old" or the "new" federal program-provides greater environmental and public health protection. California has had leeway under the Clean Air Act to implement pollution control measures that are tougher than federal rules because of the severe air quality problems that face the state. If EPA requires states to adopt rules that are at least as stringent as those contained in the new NSR program and if the federal agency determines that the old program is not as stringent as the new one, California and other states that choose to follow California's lead may risk losing delegated authority to manage certain federal air quality programs. SB 288 online.

California Air Resources Board Modifies ZEV Regulation

The California Air Resources Board (CARB) voted to make modifications and upgrades to the state's zero emission vehicle (ZEV) regulation on April 24, 2003. The decade-old regulation was amended to authorize a new ZEV pathway that gives manufacturers the choice of two options for meeting their ZEV requirements.

Auto manufacturers now have the choice of meeting their obligations by following standards that are similar to the ZEV rule as it existed in 2001. They can use a formula that allows a vehicle mix of 2 percent pure ZEVs, 2 percent AT-PZEVs (advanced technology partial ZEVs) and 6 percent PZEVs (extremely clean conventional vehicles), based on the number of passenger cars and small trucks a manufacturer sells in California.

Alternatively, a manufacturer may choose to meet part of its requirement by producing its sales-weighted market share of approximately 250 fuel cell vehicles by 2008. The remainder of the commitment could be attained by producing 4 percent AT-PZEVs and 6 percent PZEVs. Automakers are authorized to substitute battery electric vehicles for up to 50 percent of their fuel cell vehicle requirements.

The ZEV regulations currently are on hold for 2003-04 pending resolution of lawsuits filed by automakers. Because of this, the new requirements will not go into effect until 2005. During the interval, automakers will be able to receive credit for any ZEV vehicles they sell or lease during 2003-2004.

Reaction to CARB's decision was varied. Members of the ZEV Alliance-the Sierra Club, the American Lung Association and the Natural Resources Defense Council-praised the increase in the fuel cell mandate. In addition, the alliance stated that the rule provides excellent requirements and incentives for automakers to continue producing ultra low emission vehicles. On the other hand, the California based Planning and Conservation League felt that, with CARB's decision, California is ceding its leadership role with regard to promoting pure zero emission technology within the state. The regulatory documents for the 2003 amendments to the zero emission vehicle regulations are available online.

NCSL MEETINGS

The 2003 NCSL Annual Meeting will be held July 21-25 in San Francisco at the Moscone Center. Several sessions will address air quality issues.

July 22, 9:00-10:30 a.m.

Environment and Natural Resources Committee
Air Quality: State and Federal Update
132-Exhibit Level-Moscone Center

Discussion of recent EPA actions, including 8-hour ozone implementation strategy and non-road diesel engine rule, and state New Source Review legislation, among other issues.

Moderator
Representative Carole Rubley, Pennsylvania

Speakers
Jack Broadbent, Director, Air Division, Region 9, U.S. Environmental Protection Agency, San Francisco, California
Senator Beverly Gard, Chair, Senate Environmental Affairs Committee, Indiana
Assemblywoman Hannah-Beth Jackson, Chair, Assembly Natural Resources Committee, California

3:15-5:00 p.m.

Concurrent Session
State Policy and Greenhouse Gases
202-210-East Mezzanine Level-Moscone Center

States can take a leading role in reducing greenhouse gases. This session will not attempt to reach a conclusion on climate science. Instead it will review state initiatives to address greenhouse gases and then host a detailed discussion of the advantages and disadvantages of each policy approach.

Moderator
Senator Clifton Below, New Hampshire

Speakers
Ken Colburn, Executive Director, Northeast States for Coordinated Air Use Management, Boston, Massachusetts
Barry Rabe, University of Michigan, Ann Arbor, Michigan
John Sandoval, Department of Environmental Quality, Boise, Idaho

July 23, 8:00-9:15 a.m.

Environment and Natural Resources Committee

Energy and Electric Utilities Committee
Alternative Fuels and Alternatively Fueled Vehicles
124-Exhibit Level-Moscone Center

Discussion of a recent shift in policy by the California Air Resources Board away from battery powered vehicles and toward fuel cells and hybrid electric vehicles that will have implications for other states.

Speakers
Analisa Bevan, Zero Emission Vehicle Program, California Air Resources Board, Sacramento, California
Greg Dana, Environmental Affairs, Alliance of Automobile Manufacturers, Washington, D.C.

For additional information about these or other sessions at Annual Meeting, contact Larry Morandi in NCSL's Denver office at (303) 364-7700, or e-mail at larry.morandi@ncsl.org.

STATE LEGISLATION

Summaries of Selected 2003 State Air Quality Bills

Arizona		Arkansas			California
Colorado		Connecticut			Florida
Georgia		Illinois			Indiana
Louisiana		Maryland			Massachusetts
Nevada		New Jersey			New York
Oklahoma		Rhode Island			Texas
Washington		West Virginia			Wyoming
State	Category		Bill Number	Status		Description
Arizona	Alternative Fuel		SB 1177	Enacted		Removes the state's authority to enforce state air quality laws on Indian tribal lands. Allows the owner of an original equipment manufactured alternative fuel vehicle to pay an emissions fee for the first three years of registration in-lieu of emissions testing the vehicle.
Arkansas	Alternative Fuel		HB 1327	Enacted.		Creates an Alternative Fuels Commission to promote the use of alternative fuels in the state and to make grants and loans for research projects.
Arkansas	Alternative Fuel		SB 173	Enacted.		Creates an Alternative Fuels Fund to be comprised of voluntary fees paid by electric and natural gas utilities. The fund will be used to pay for the operation of the Alternative Fuels Commission, grants for alternative fuels research, and grants and loans for alternative fuels projects.
California	Fees		AB 10	Enacted.		Authorizes the State Air Resources Board to impose additional permit fees on nonvehicular sources within an air pollution control district's jurisdiction. Imposes a fee on a manufacturer's total sales of consumer products that result in the emission of a minimum of 250 tons per year of volatile organic compounds (VOCs). The fees are to be used to mitigate or reduce air pollution in the state.
California	Alternative Fuel		AB 114	In Assembly Committee.		Would allow hybrid electric vehicles to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle.
California	Electric Utilities		AB 151	Passed Assembly; in Senate Committee.		Would require any person that imports electricity into the state to pay up to $0.001 per kilowatt-hour air as an air emission mitigation fee. The fee would apply only to an electric utility owned by a U.S. company located in Mexico that affects air quality in California. The bill would establish an Imported Electricity Air Pollution Mitigation fund, whose revenue would be distributed to local air quality districts affected by emissions from applicable electric utilities. Each district receiving revenue from the fund would be required to finance projects to mitigate the environmental or health impacts of electric utilities.
California	Alternative Fuel		AB 927	In Assembly Committee.		Would require the State Air Resources Board to adopt regulations establishing statewide guidelines for the production and licensing of hydrogen fuel cell refueling stations in the state.
California	Motor Vehicle Emissions		AB 1063	In Assembly Committee.		Would authorize the South Coast Air Quality Management District to adopt regulations, permissible under federal law, requiring any motor vehicle, nonroad engine and nonroad vehicle to install retrofit controls to reduce emissions of air contaminants to the maximum extent feasible.
California	New Source Review		SB 288	Passed Senate; In Assembly Committee.		Would require the State Air Resources Board to adopt regulations that incorporate all EPA regulations implementing the New Source Review (NSR) program that were in effect on December 30, 2002, one day before the federal agency issued changes to the NSR rule. The regulations would have to be "at least as stringent as" those federal rules. In addition, the bill would require the state board or an air quality management district to prevent the construction or modification of a major air emission source that fails to comply with the bill.
California	Air Quality		SB 656	In Senate Committee.		Would require the State Air Resources Board to identify a list of all control measures, no later than January 1, 2004, that could be employed by the state board and local districts to reduce particulate matter emissions from new and existing stationary and area sources. The board and districts would also be required to attempt to reduce particulate emissions from stationary, mobile, and area sources, as well as diesel-powered vehicles and equipment.
Colorado	Motor Vehicle Emissions Testing		HB 1053	Enacted.		Increases from 2 years to 4 years the model year exemption from emissions testing for heavy-duty diesel vehicles, and decreases the frequency of testing from annually to biennially for vehicles of model year 1995 or newer. The bill also requires emissions testing of all diesel vehicles that routinely operate within the Front Range metropolitan area even if they are not registered in the area.
Colorado	Alternative Fuel		SB 91	Enacted.		Provides a state income tax credit for hybrid electric vehicles, and allows hybrid electric vehicles to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle.
Connecticut	MTBE		RB 840	Enacted.		Repeals the ban on the use of MTBE as a gasoline additive scheduled for Oct. 1, 2003, and in its place requires the Department of Environmental Protection to adopt regulations by Oct. 1, 2003, to plan for the phase down of MTBE.
Connecticut	Motor Vehicle Emissions		RB1006	In Joint Committee.		Would allow the Commissioner of Environmental Protection, as part of the State Implementation Plan under the Clean Air Act, to establish a program to allow the sale, purchase and use of motor vehicles in compliance with adopted regulations that implement the California motor vehicle emissions standards for purposes of generating emission reduction credits.
Connecticut	Air Quality Standards		RB 6402	Enacted.		Among other provisions, authorizes the Department of Environmental Protection to adopt by reference California's requirements for heavy-duty diesel engines and the state's low-emission vehicle tailpipe standards.
Connecticut	Greenhouse Gas Emissions		HB 6245	In Joint Committee.		Would establish a baseline measurement of the state's carbon dioxide emissions in order to gradually reduce such emissions.
Florida	Alternative Fuel		SB 88	Enacted.		Allows inherently low emission vehicles to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle.
Georgia	Alternative Fuel		HB 719	Enacted.		Would authorize hybrid vehicles to use designated travel lanes by adding hybrid vehicles to the definition of alternative fueled vehicles.
Illinois	Emissions Trading		HB 3551	In House Committee.		Would allow the Illinois Environmental Protection Agency to sell certain early reduction nitrogen oxide credits and allowances to specified Illinois sources.
Indiana	Motor Vehicle Emissions Testing		HB 1439	Enacted.		Prohibits the Air Pollution Control Board from requiring motor vehicle emissions testing in certain counties, and repeals existing requirements in those counties.
Indiana	Air Quality Standards		HB 1671	Enacted.		Prohibits the Air Pollution Control Board from adopting standards that are more stringent than corresponding federal standards.
Indiana	New Source Review		SB 440	Passed both Houses; Vetoed by Governor.		Would require the State Air Pollution Control Board to issue regulations adopting EPA's new New Source Review program no later than March 1, 2004. The bill also would set emission limitations for several contaminants, including mercury.
Louisiana	Permits		HB 545	In Senate Committee.		Would create an exception from permit requirements to operate or to construct air emissions sources that emit less than 5 tons per year of regulated contaminants, emit less than 15 tons per year of all pollutants combined, and emit less than the minimum amount subject to Department of Environmental Quality (DEQ) regulations.
Louisiana	Fees		HB 886	In Senate Committee.		Would authorize the Department of Environmental Quality to adopt a fee mandated by the Clean Air Act for major sources of air pollution in severe and extreme ozone nonattainment areas.
Maryland	Alternative Fuel		HB 61	Enacted.		Exempts qualified hybrid electric vehicles from motor vehicle emissions testing requirements.
Massachusetts	Alternative Fuel		SB 1751	In Joint Committee.		Would require the state to purchase ultra low emission vehicles, super ultra low emission vehicles or zero emission vehicles certified under California's Low Emission Vehicle program. Would allow drivers of low emission vehicles to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle. Would provide a sales tax exemption for the purchase of a low emission vehicle.
Massachusetts	Alternative Fuel		SB 1768	In Joint Committee.		Would eliminate the state sales tax on the purchase of electric and hybrid electric vehicles.
Nevada	Motor Vehicle Emissions Testing		SB 189	Enacted.		Would require biennial motor vehicle emissions testing for model years 1996 and newer in counties with a population of 400,000 or more. The maximum fee would be $35.
New Jersey	Alternative Fuel		AB 409, AB 3393; SB 121	AB 409 and AB 3393 in Assembly Committee; SB 121 in Senate Committee.		Would require the Department of Environmental Protection to implement Phase II of California's Low Emission Vehicle program beginning in 2006.
New Jersey	Alternative Fuel		AB 417; SB 771	AB 417 in Assembly Committee; SB 771 in Senate Committee.		Would authorize a corporate business tax credit for the purchase of alternative fuel vehicles or technology equal to 15% of the purchase price.
New Jersey	Motor Vehicle Emissions Testing		AB 572	In Assembly Committee.		Would exempt from the emissions testing requirement motor vehicles that are five years old or less.
New Jersey	MTBE		AB 941; SB 1871	AB 941 in Assembly Committee; SB 1871 in Senate Committee.		Would prohibit the sale of gasoline containing MTBE beginning Jan. 1, 2004. Would require the Department of Environmental Protection to request a waiver of the oxygenate fuel requirements from EPA. Would establish a Transportation Energy Security Council to monitor progress in complying with the MTBE prohibition.
New Jersey	Alternative Fuel		AB 2186; SB 791	AB 2186 in Assembly Committee; SB 791 in Senate Committee.		Would provide a sales tax exemption for the purchase of a super ultra low emission vehicle, a partial zero emission vehicle or a zero emission vehicle certified under Phase II of California's Low Emission Vehicle program, provided the vehicle meets certain fuel efficiency ratings.
New Jersey	Alternative Fuel		AB 2694; SB 1605.	AB 2694 in Assembly Committee; SB 1605 in Senate Committee.		Would require that 5% of all alternative fuel vehicles purchased by the state be fuel cell powered vehicles, provided sufficient quantities exist. The percentage would increase to 20% based upon future availability.
New Jersey	Alternative Fuel		AB 2745; SB 1604	AB 2745 in Assembly Committee; SB 1604 in Senate Committee.		Would authorize a corporate business tax credit for the purchase of fuel cell powered vehicle equal to 20% of the purchase price.
New Jersey	Alternative Fuel		AB 3116	In Assembly Committee.		Would require the state to purchase only vehicles certified as low emission vehicles or alternative fuel vehicles, provided such vehicles exist. Would phase-in a requirement that over a 5-year period all state purchased vehicles be zero emission vehicles.
New Jersey	Alternative Fuel		AB 3244; SB 2483	AB 3244 in Assembly Committee; SB 2483 in Senate Committee.		Would authorize a state income tax credit equal to the incremental cost of the purchase of a certified clean fuel vehicle.
New Jersey	Alternative Fuel		SB 1810	In Senate Committee.		Would provide a state income tax credit up to $2,000 for the purchase of a hybrid electric vehicle.
New York	Mercury		AB 479	In Assembly Committee.		Would require the Department of Environmental Conservation to develop a methodology for determining annual mercury emissions from various sources and set a mercury emissions cap for those sources. The bill would also prohibit any source from exceeding the annual emissions cap beginning Jan. 1, 2010.
New York	Alternative Fuel		AB 682	In Assembly Committee.		Would provide a state sales tax exemption for new vehicles that meet California's emission standards for super-ultra-low emission vehicles, and that have a fuel efficiency at least 1.5 times the average fuel efficiency for the class of vehicle.
New York	Alternative Fuel		AB 1350	In Assembly Committee.		Would exclude fuel-efficient vehicles, zero-emission vehicles, flexible-fuel vehicles and alternative-fuel vehicles from the state sales tax, and provide a $1,000 state income tax credit for each vehicle purchased.
New York	Greenhouse Gas Emissions		AB 4082	In Assembly Committee.		Would require the Department of Environmental Conservation to adopt California's regulations to achieve cost-effective reductions in greenhouse gas emissions from motor vehicles. The regulations would apply to 2009 model year vehicles and later.
New York	Multi-Pollutant Strategy		AB 5933	Passed Assembly; in Senate Committee.		Would require the Commissioner of Environmental Conservation to adopt regulations to reduce emissions of nitrogen oxides, sulfur dioxide, carbon dioxide (CO₂) and mercury from power plants to specified levels. Would authorize an emissions trading program to help achieve CO₂ reductions.
New York	Acid Rain		AB 6780	In Assembly Committee.		Would direct the Department of Environmental Conservation to promulgate rules and regulations reducing air pollution emissions causing acid rain.
New York	Electric Utilities		AB 7239	In Assembly Committee.		Would require the Department of Environmental Conservation to promulgate rules and regulations establishing performance standards for emissions from small electric generating sources equivalent to new dual cycle major source generators meeting best available control technology.
New York	Alternative Fuel		AB 7474	In Assembly Committee.		Would permit the use of high occupancy vehicle (HOV) lanes by clean vehicles. Would exempt clean or electric vehicles from paying tolls for a period of two years.
New York	Motor Vehicle Emissions		SB 3043	In Senate Committee.		Would provide a sales and compensating use tax exemption for retail sales of new motor vehicles that meet the "clean vehicle standard" regarding emissions and fuel economy.
New York	Electric Utilities		SB 3172	In Senate Committee.		Would charge the Department of Environmental Conservation with promulgating regulations to reduce electric power plant emissions of various pollutants. Would establish a mercury emissions cap, but does not supersede any other more stringent requirements.
Oklahoma	Greenhouse Gas Emissions		HB 1051	Enacted.		Establishes the "Oklahoma Carbon Sequestration Act" to document and quantify such efforts on agricultural and nonagricultural land within the state to enhance the ability of the state's landowners to participate in carbon dioxide emissions marketing or trading systems.
Oklahoma	Alternative Fuel		HB 1705	Enacted.		Allows all school and government vehicles to be converted to operate on alternative fuel. The state, any county or municipal government and any school district is given access to the Oklahoma Alternative Fuels Conversion Fund.
Rhode Island	Alternative Fuel		HB 5040	In House Committee.		Would provide a state income tax credit equal to 50% of the costs of constructing an alternative fuel filling station, and 50% of the incremental costs of purchasing an alternative fuel vehicle or converting a conventional vehicle to alternative fuel.
Rhode Island	MTBE		SB 31	In Senate Committee.		Would phase-out the use of MTBE beginning July 1, 2004.
Texas	Fees		HB 1365	Enacted.		Establishes a new funding mechanism for the Texas Emissions Reduction Program to be comprised primarily of revenue from an increase in the fee on the transfer of a vehicle title from $13 to $25 in attainment areas, and from $13 to $33 in nonattainment areas. Allocates funds to the diesel emissions reduction program (87.5%) and the new technology research and development program (9.5%).
Washington	Alternative Fuel		HB 1467	In House Committee.		Would reduce the state sales tax on hybrid electric and fuel cell powered vehicles to 3.2% from 6.5%.
Washington	Alternative Fuel		SB 5386; SB 5468	In Senate Committee.		Would permit inherently low emission vehicles and hybrid electric vehicles to use high occupancy vehicle (HOV) lanes without regard to the number of passengers in the vehicle.
Washington	Alternative Fuel		SB 5467	In Senate Committee.		Would exempt the purchase of clean alternative fuel vehicles, fuel cell powered vehicles and hybrid electric vehicles, and related equipment from the state sales tax.
Washington	Alternative Fuel		SB 5469	In Senate Committee		Would provide a tax credit for the use of clean alternative fuel vehicles equal to 30% of the price or $5,000, whichever is less, for vehicles under 10,000 pounds, or 30% of the price or $25,000, whichever is less, for vehicles over 10,000 pounds. Would also provide a maximum tax credit for related equipment equal to 50% of the price or $200,000, whichever is less.
West Virginia	Emissions Trading		HB 2603	Enacted.		Authorizes the Department of Environmental Protection to promulgate a legislative rule relating to the nitrogen oxides (NOx) budget trading program to control and reduce NOx emissions from electric and nonelectric generating units.
Wyoming	Emissions Trading		HB 245	Enacted.		Authorizes the Department of Environmental Quality to establish an intrastate, or participate in an interstate, emissions trading program.

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Environment, Energy and Transportation Program

Clean Air Newsletter

A Quarterly Review of Legislation and Air Quality Issues

June 2003 Vol. 7, No. 2

IN THIS ISSUE

FEDERAL ACTIONS

STATE ACTIONS

STATE LEGISLATION

June 2003
Vol. 7, No. 2