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Home My WebLink About1990-01-23 - AGENDA REPORTS - FEDERAL CLEAN AIR ACT (2)AGENDA REPORT City Manager Approval Item to be presented by: NEW BUSINESS Mark Scott DATE: January 23, 1990 SUBJECT: Market Incentives in the Federal Clean Air Act DEPARTMENT: Community.Development BACKGROUND: The City has received a request by the Southern California Association of Governments (SCAG) seeking support for an amendment to the Federal Clean Air Act which would provide .for market incentives and disincentives. Common market incentives include the following: differential permit fees where the greater the emission, the higher the cost; road use charges for low occupancy vehicles; direct payments to employees who rideshare; and, pollutant emission charges on. home and consumer products. A copy of the' letter from SCAG and the proposed text amendment is attached. As indicated in the letter, the amendment .is also supported by the South Coast Air Quality Management District -Growth Management and Transportation Task Force, Los Angeles County,' Southern California Gas Company, Environmental Defense Fund and the Sierra Club. The City has consistently supported efforts to improve 'air quality in the South Coast Air Basin. The inclusion of market incentives would be 'another useful tool toward the achievement of better air quality. RECOMMENDATION: It is recommended that staff be directed to prepare a letter of support for the inclusion of market incentives into the. Federal Clean Air Act to Senators Cranston and Wilson for the Mayor's signature. ATTACHMENTS: Letter from SCAG Agenda Item: i JOUNego AJJOCIATIOA 818 West Seventh Street, 12th Floor . Los Angeles, California 90017 El (213) 236-1800 s FAX (213) 236-1825 EXECUTIVE Commrrrn President Mike Antonovich, Supervisor, Los Angeles County First Vice President Christine Reed, Councibnember, Santa Monica Second Vice President John Flynn, Supervisor Ventura County Past President Don Griffin, Councilmember, Buena Park Imperial County Abe Seabolt, Supervisor Los Angeles County Deane Dana, Supervisor Orange County Harriett Wieder, Supervisor Riverside County Kay Ceniceros, Supervisor San Bernardino County Jon Mikels, Supervisor Cities of Imperial County (To be filled) City of Los Angeles Tom Bradley, Mayor Los Angeles December 14, 1989 Dear Public Official: c PePeet, ' OMMUf/ P ,1989 SdA 1 cFp� 4F 4 „igpf W The Southern California Association of Governments and South Coast Air Quality Management District Growth Management and Transportation Task Force is seeking local governments' support for the inclusion of market incentives in the Federal Clean Air Act. Although H.R. 2323 (Waxman) and H.R. 3030 (Bush) contain such,provisions, S. 1630 (Baucus).does not. --- As we move forward to implement the Regional Air Quality Plan, we believe that a market incentives program would greatly en- hance public and private emission reduction efforts. To date, there is support from Los Angeles County, the Southern Califor- nia Gas Company, Environmental Defense Fund, Sierra Club, SCAG and SCAQMD for such an amendment. Gloria Molina,Councibnember, A copy of the language we submitted to Senate staff and an anal - Los Angeles ys i s of the role and benefits of market incentives in improving Robert Farrell,Councilmember, Southern California's air quality are enclosed for your rev *ew-., Los Angeles. City of Long Beach S. 1630 is scheduled to be heard on the Senate Floor, in `January. Clarence Smith, Councilmember, We are, therefore, asking that you write to Senators Cranston Long Beach and Wilson urging them to endorse the market incentives` amend - Cities of Riverside County Jack Clarke, Councilmember, Riverside Cities of San Bernardino County John Longville, Mayor Rialto Cities of Ventura County John Melton, Councilmember, Santa Paula Cities of Orange County Irwin Fried, Councilmember, Yorba Linda AT -LARGE DELEGATES Jacki Bacharach, Mavor, Rancho Palos Verdes Robert Gentry, Mayor, Laguna Beach Judy Nieburger, Councibnember. Moreno Valley ment. If you need any additional information, please contact Nona Edelen, SCAG Government Affairs, at 213-236-1870. We look forward to your participation in this important endeavor. Sincerely, A&&,- /e-�, MARK PISANO Executive Director MP/NEE/dj Enclosures ALTERNATES Imperial County o Jeanie Vogel, Supervisor . Los Angeles County o Edmund Edelman, Supervisor and Peter Schabar um, Supervisor • Orange County o Gadd[ Vasquez, Supervisor Riverside County o Melba Dunlap, Supervisor .San Bernardino County o Larry Walker, Supervisor •Ventura County o James Dougherty, Supervisor .Cities of Imperial County o Ron Rodriguez, Councilmember, Westmoreland -Cities of Los Angeles County o Vacant -Cities of Riverside County •Richard Deininger, Jr., Mayor, Corona .Cities of Orange County o John Kana[, Mayor No Tem, Cypress •Cities of San Bernardino County o Larry Rhinehart, Mayor Montclair .Cities of Ventura County o Frank McDevitt, Councilmember, Ojai o Richard Alatorre, CouncUrnember, Los Angeles . Michael Woo, Councibnember, Los Angeles • Joy Picas, Councilmember, Los Angeles -Long Beach 2nd Position Vacant • Vicky Howard, Councilmember. Simi Valley • Robert Bartlett, Mayor, Monrovia . Ruthelyn Plummer, Mayor Pro Tem, Newport Beach 6 L Why should a region with severe air quality problems want the Clean Air Act to include provisions for the use of market incentive approaches to emission con- trol activities? o The extent of our air quality problems will require a broad range of air pollution control activities. Some of these controls will require actions by millions of people. It is very difficult to control.all these individual decisions through a regulation approach. o Market approaches can be more effective and efficient in guiding these mil- lions of individual decisions because the market approach builds into the individual decision additional costs and benefits. Then individuals can make their decisions based upon these additional costs. o Harnessing with the market forces could achieve air quality goals more rap- idly and cost effectively than the "command -and -control" approach. o Market approaches can be used as supplements or complements to regulatory approaches. o Market approaches can raise revenues to support other air quality/transpor- tation actions while at the same time discouraging pollution activities. o Market forces can drive these decisions toward least -cost solutions and to- ward the development of new pollution -control technologies and expertise by private sector. o Market -incentive -based approaches have an added benefit; they make the en- vironmental debate more understandable to the general public. In the past EPA's regulatory approach has made it virtually impossible to use or implement market-based approaches. The reason for specifically adding market- based approaches to the Clean Air Act are to explicitly express Congressional intent to allow market approaches where they are appropriate. Some of the rea- sons for this change are: o There has been more consensus both regionally and nationally about the ad- vantages and needs of market incentive approaches to solve the air quality problem. o The proposed market approaches can be used as supplements or complements to regulatory approaches (i.e. all market-based measures are subject to EPA's requirements concerning surplus, quantifiable, enforceable, and permanent). o Incorporating market-based measures in the Clean Air Act would allow this region to.test the feasibility and effectiveness of this approach. o Successful trials of market approaches can be a good opportunity to demon- strate to EPA the effectiveness of market incentive approach. AMANAglikAnk romnf cfurwnf wodanom p "ammfxv 818 West Seventh Street, 12th Floor 0 Los Angeles, California 90017 (213) 236-1800 0 FAX (213) 236-1825 PROPOSED AMENDMENT TO S. 1630 ON ECONOMIC INCENTIVES On Page 50, after Line 23, insert the following: 11(4) An implementation plan for an extreme area revised in compliance with this section may include measures providing economic incentives and disincentives, such as differential emission fees, marketable permits, road use fees, and emis- sion charges for multiple or diffuse sources and consumer products, in combination with or as a supplement to regula- tory requirements." comm CRUF001614 eooamwa.wowouv 818 West Seventh Street, 12th Floor • Los Angeles, California 90017 = (213) 236-1800 • FAX (213) 236-1825