69–010 

Calendar No. 1078 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–500 

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. 


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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 heavilypolluting 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 


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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 


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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. 


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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— 

2009 2010 2011 2012 2013 2009– 

2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ....................................................................... 20 20 20 20 20 100 

Estimated Outlays ........................................................................ 8 16 18 20 20 82 

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. 


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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. 


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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. 


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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. 

Æ 


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