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[Senate Report 111-218]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 453
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-218

======================================================================

 
    AIR AND HEALTH QUALITY EMPOWERMENT ZONE DESIGNATION ACT OF 2010

                                _______
                                

                  June 29, 2010.--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. 3373]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 3373) 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

    The purpose of this legislation is to help the most heavily 
polluted areas of the country, which also experience high 
levels of unemployment, address the health and economic 
difficulties that they face. This legislation provides grants 
to areas with some of the worst air pollution problems in the 
nation to increase the use of modern pollution controls by 
retrofitting or replacing heavily-polluting vehicles and 
engines.

                    GENERAL STATEMENT AND BACKGROUND

    According to the Environmental Protection Agency, both fine 
particulate matter pollution (PM2.5) and ozone (``smog'') are 
serious threats to public health. The Environmental Protection 
Agency recognizes that due to small size of PM2.5 pollution, it 
can penetrate deeply into the lungs of people where it can 
accumulate. The Agency also acknowledges that epidemiological 
studies have shown a significant association between elevated 
levels of PM2.5 pollution and health effects, including asthma 
attacks, aggravation of respiratory and cardiovascular disease, 
decreased lung function, lung disease, certain cardiovascular 
problems such as heart attacks, and premature death.
    The Environmental Protection Agency has also described a 
number of serious health effects related to ozone pollution. 
The Agency recognizes that ozone pollution increases asthma 
attacks, reduces lung function, increases susceptibility to 
respiratory infection, inflames and damages cells in the lungs, 
aggravates chronic lung diseases such as emphysema and 
bronchitis, and increases the risk of premature death.
    Smog and PM2.5 are widespread forms of pollution. According 
to the Environmental Protection Agency, more than a dozen 
states have counties with areas that are out of attainment with 
PM2.5 standards, including Pennsylvania, Alabama, Ohio, West 
Virginia, California, Michigan, Alaska, Oregon, Tennessee, 
Utah, Idaho, Wisconsin, New York, New Jersey, Connecticut, 
Arizona and Delaware. The Agency reports that more than 70 
million people live in these counties.
    The Environmental Protection Agency also reports that more 
than twenty states have counties with areas that are out of 
attainment with ozone standards, including New York, Michigan, 
California, Georgia, Maryland, Louisiana, Texas, Massachusetts, 
New Hampshire, Rhode Island, North Carolina, South Carolina, 
Illinois, Indiana, Ohio, Kentucky, Colorado, Wisconsin, 
Connecticut, Tennessee, Nevada, New Jersey, Pennsylvania, 
Delaware, Arizona, Missouri, Virginia, and the District of 
Columbia. The Agency reports that more than 121 million people 
live in these counties.
    This basic intent of this bill is to help, now and in the 
future, the most heavily polluted areas of the country that 
also suffer from high levels of unemployment to reduce the 
health and economic impacts of nonattainment with federally 
mandated air quality standards. One such area that is currently 
experiencing these types of harmful conditions is the San 
Joaquin Valley in California. Elevated ozone and PM2.5 levels 
in the Valley contribute 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 would allow areas that experience these 
conditions to become eligible for designation as air and health 
quality empowerment zones, at which point they could receive 
federal grants for the purpose of replacing or retrofitting 
polluting vehicles and engines. This would improve the health 
of the people living in such zones.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides that the Act may be cited as the ``Air 
and Health Quality Empowerment Zone Designation Act of 2008''.

Section 2. Purpose

    Section 2 states 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 contains the types of factors that are relevant 
to being eligible as an air and health quality empowerment zone 
by using a description of the conditions that currently exist 
in the San Joaquin Valley. The findings describe the serious 
air quality challenges that the Valley faces, which impact the 
health, development, and economy of the area. The section also 
notes the benefits that could accrue from federal assistance 
that helps to address serious air pollution problems through 
grants and technical assistance.

Section 4. Definitions

    Section 4 defines the term ``Administrator'' to mean the 
Administrator of the Environmental Protection Agency (EPA). The 
term ``Agency'' is defined to mean the EPA. Section 4 defines 
the term ``Clean Air Act'' to mean the Clean Air Act (42 U.S.C. 
7401 et seq.). The term ``PM2.5'' is defined to mean 
particulate matter with a diameter that does not exceed 2.5 
micrometers. The term ``Strategic Plan'' is 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 defines the term ``Valley'' to mean the San 
Joaquin Valley, California.

Section 5. Air Quality Empowerment Zone designation procedures

    Section 5 provides 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 provides 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; (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 provides 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 authorizes 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 requires 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 requires 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 authorizes the appropriation to the Administrator 
of $20,000,000 for each of fiscal years 2011 through 2015 to 
provide grants under this Act.

                          LEGISLATIVE HISTORY

    This legislation was sponsored by Senator Boxer. The 
Committee on Environment and Public Works met on May 20, 2010, 
when it was ordered favorably reported by voice vote.

                             ROLLCALL VOTES

    There were no rollcall votes. Senators Inhofe, Barrasso and 
Vitter were recorded as voting no. The Committee on Environment 
and Public Works met to consider this legislation on May 20, 
2010. 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

                                                      May 24, 2010.
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 S. 3373, the Air and 
Health Quality Empowerment Zone Designation Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 3373--Air and Health Quality Empowerment Zone Designation Act of 
        2010

    Summary: S. 3373 would authorize the Environmental 
Protection Agency (EPA) to create air and health quality 
empowerment zones in various regions of the country. Certain 
entities within those zones would then be eligible for federal 
grants to fund the replacement or retrofitting of vehicles or 
engines to reduce pollution. This legislation also would 
authorize the appropriation of $20 million a year over the 
2011-2015 period for such grants.
    Assuming appropriation of the authorized funds, CBO 
estimates that implementing S. 3373 would cost $82 million over 
the 2011-2015 period and $18 million after 2015.
    Pay-as-you-go procedures would not apply to this 
legislation because it would not affect direct spending or 
revenues.
    S. 3373 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 3373 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                                                                          2011-
                                                        2011      2012      2013      2014      2015      2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.................................        20        20        20        20        20       100
Estimated Outlays...................................         8        16        18        20        20        82
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: CBO assumes that S. 3373 will be enacted 
near the beginning of fiscal year 2011 and that the specified 
amounts will be appropriated in each year starting in 2011. 
Estimated outlays are based on historical spending patterns for 
similar programs.
    Intergovernmental and private-sector impact: S. 3373 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Susanne S. Mehlman; 
Impact on State, Local, and Tribal Governments: Ryan Miller; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                        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.

                                  
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