Golden Gate University School of Law GGU Law Digital Commons California Assembly California Documents 2-14-1994 California's Plan for Fuel Standards and Clean Vehicles: Impact on Emissions, the Economy, and Public Health Assembly Committee on Transportation Follow this and additional works at: http://digitalcommons.law.ggu.edu/caldocs_assembly Part of the Environmental Law Commons, and the Legislation Commons Recommended Citation Assembly Committee on Transportation, "California's Plan for Fuel Standards and Clean Vehicles: Impact on Emissions, the Economy, and Public Health" (1994). California Assembly. Paper 301. http://digitalcommons.law.ggu.edu/caldocs_assembly/301 This Hearing is brought to you for free and open access by the California Documents at GGU Law Digital Commons. It has been accepted for inclusion in California Assembly by an authorized administrator of GGU Law Digital Commons. For more information, please contact [email protected]. ASSEMBLY COMMITTEE ON TRANSPORTATION HEARING ON CALIFORNIA'S PLAN FOR FUEL STANDARDS AND CLEAN VEHICLES: IMPACT ON EMISSIONS, THE ECONOMY, AND PUBLIC HEALTH February 14, 1994 State Capitol Sacramento, California HONORABLE RICHARD KATZ CHAIRMAN MEMBERS Honorable Jim Costa Honorable Pete Knight Honorable Martha Escutia Honorable Barbara Lee Honorable Robert Frazee Honorable Juanita McDonald Honorable Jan Goldsmith Honorable Bruce McPherson Honorable Dan Hauser Honorable Grace Napolitano Honorable Kathleen Honeycutt Honorable Tom Umberg Honorable Betty Karnette Honorable Ted Weggeland STAFF John R. Stevens Erik Lange Kate Riley 22 Alice Livingston T65 0511-A TABLE OF CONTENTS Page Opening Statement - Chairman Richard Katz 1 Dr. Malcolm Currie, Chairman Emeritus of GM-Hughes; Co-Chairman Project California 4 Assemblyman Pete Knight 12 Assemblywoman Betty Karnette 13 Assemblywoman Kathleen Honeycutt 14 James Strock, Secretary, California Environmental Protection Agency 15 Assemblyman Bruce McPherson 18 Mike Gage, President, CALSTART 19 Assemblyman Jan Goldsmith 26 Assemblyman Dan Hauser 27 Bill Craven, Vice President, Horizon Battery 28 Assemblywoman Barbara Lee 38 Barbara Levin, Special Projects Coordinator,Ovonics Battery 39 Joe Barrington, CEO, Group IX Systems 46 Jim Quillan, Executive Secretary-Treasurer, California Conference of Machinists 48 Carl Perry, Executive Vice President, U.S. Electricar 54 Andrew Card, Jr., President and CEO, American Automobile Manufacturers Association 59 Assemblyman Ted Weggeland 67 Greg Dana, Vice President, Automobile Importers of America 68 David Montgomery, DRI, McGraw-Hill 70 Jacqueline Schafer, Chair, Air Resources Board 84 Robert Trunek, Sr., Vice President, Manufacturing, Engineering & Technology, ARCO 92 i Carolyn Green, Director Government & Public Affairs, Ultramar, Inc. 100 Jeff Irvin, President, California Independent Oil Marketers Association (CIOMA) 104 Appendices Agenda 108 Opening Statement, Chairman Richard Katz 109 Staff Report 111 Statement, Dr. Malcolm Currie 126 Statement, Secretary James Strock, Environmental Protection 131 Statement, Barbara Levin 133 Statement, DRI/McGraw-Hill 141 Statement, W. David Montgomery, Charles River Associates 146 Statement, Jacqueline Schafer, Chair, Air Resources Board 150 Statement, Robert J. Trunek, ARCO 162 Statement, California Independent Oil Marketers Association (CIOMA) 167 Statement, Dave Calkins, U.S.Environmental Protection Agency 171 Statement, Veronica Kun, Natural Resources Defense Council 180 ~etter, Mary D. Nichols, U.S.Environmental Protection Agency 194 Letter, Michael Bradley, Executive Director, Northeast States for Coordinated Air Use Management 196 Statement, John C. Cox, Member, SCAG Regional Council 198 Statement, Kahl Associates 201 Statement, Bill Campbell, President, Manufacturers Assn. 204 Report, California Motor Car Dealers Association 207 Statement, Randall M. Ward, HEV Coalition for Clean Air 223 ii Informational Hearing ASSEMBLY TRANSPORTATION COMMITTEE CALIFORNIA'S PLAN FOR FUEL STANDARDS AND CLEAN VEHICLES: Impact on Emissions, the Economy, and Public Health February 14, 1994 Sacramento, California CHAIRMAN KATZ: Let me make some brief comments and then we're going to go on with the schedule as it's outlined on the agenda. The only change in the agenda is we're going to move Secretary Strock up after Doctor Currie, trying to accommodate his schedule. He's promised me that right after he does that, he's going to go resolve the smog. check problem. California has traditionally led the country in cleaning up air emissions. We continued this tradition with the implementation of the clean diesel program last fall, with our heavy vehicle smoke reduction program, and with other vehicle-related clean-up programs. We're considering today two programs which are crucial to cleaning up our air. The low-emission, zero-emission vehicles or ZEV program as it is known, and the Phase II reformulated gasoline, or RFG program. Last year, the Committee stopped a bill which would have rolled back the clean diesel regulation. We held firm not only because clean diesel improved air quality, but because we believe that changing regulatory course in mid-stream is unfair and harmful to the business climate in California. Unfortunately, the - 1 - implementation of clean diesel brought much controversy and pain. We in the Committee were aware of that and concerned about it. This hearing is designed to prevent future controversy about the ZEV program or the RFG program. California's plan to require 2% of the vehicles to be zero-emission by 1998 has already been endorsed by the northeastern states and has led to vigorous job creation activities in our state. But that requirement is under attack. We want to hear from those who are creating jobs to meet the mandate and those who oppose the mandate. What the Committee must consider is where is the future of the auto industry. This is really what I believe this debate is about. I believe to some extent it's about batteries and electric cars, but the greater reality in my mind at least is: where's the future of the auto industry--in Detroit or in California? The sub-text that underlines this discussion is where are we going to be building the transportation vehicles of the future. Most of us on the panel, frankly all of us, would vote for that to be California. The question is: How do we get there? If we hold firm on the ZEV mandate we will likely bring that next generation of automobile development to California. And again the question has to be asked--and that is part of the hearing today: What· message are we sending to the business community that is now investing in low-polluting or zero-polluting vehicles if that mandate is changed mid-stream? Even more immediately important to our constituents is the transition to Phase II reformulated gas in '96. RFG's an extraordinarily effective way to clean up the air. If the transition is rocky, it will make the clean diesel troubles - 2 - look like a Sunday picnic. We need to hear from the regulators and from the industry about the transition. How can we ensure that we will not experience the transition pains that we saw with clean diesel? For both these regulations we need to ask: If we delay or change them, what other steps must we take to meet the steps towards deadlines to clean up the air? It's m¥ belief that the alternatives to these regulations would be harmful to our state, both from an air standpoint and a business standpoint. California is at a turning point. We can clean up our air and rebuild our economy if we have the courage to stay on the course. I, frankly, reject those who would try and convince us that you have to choose between clean air and jobs. To me, that is like choosing to eat on Monday and breathe on Tuesday. We have to find a way to have both clean air and jobs. I think these regulations are one way to get there. I think that the work that has been done, and we will hear about today, is part of getting us there. There will be bills that we will hear later in the year. I know Mr. Richter has a bill; I assume there will be others. We will be working out bill schedules with Assemblyman Sher's committee. We will not do joint hearings of the committees, but we will work with the authors to ensure that we have as many witnesses as possible and we make it as easy as possible for people to testify here in Sacramento. That is essentially what this hearing is about today. Again, what we're interested in hearing is from those involved in this effort, both those who think it's going in the right direction or - 3 - those to think it's not. What I'm trying to avoid is having someone else sit here in 1996 or 1997 and hear from everyone who says: We would have loved to have met those 1998 deadlines, but it's just too late now. If only someone had said something to us in '94 or '95, or had asked what we could have done back then. We're trying to avoid that happening this time by getting ahead of the curve and saying: This is a mandate for 1998. What is it going to take to meet it? What is it going to take to make it practical? What's the impact on jobs for Californians in meeting that mandate? Are there Committee members who wish to make statements? If not, we will start with the agenda. We will start with Dr. Malcolm Currie, who is the Chairman Emeritus of GM Hughes, and the Co-chairman of Project California. We will follow that with Jim Strock, Secretary of Cal-EPA. Then go on with the rest of the panels as outlined in the agenda. Dr. Currie, I appreciate your being here and appreciate your juggling your schedule. I know it wasn't easy. DR. MALCOLM CURRIE: Thank you very much Mr. Chairman and members of the Assembly Committee on Transportation for this opportunity to appear before you on this very important issue regarding California's clean air standards and the related enormously promising electric vehicle industry.