BILL NUMBER: AB 2585 CHAPTERED 09/29/04 CHAPTER 885 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2004 APPROVED BY GOVERNOR SEPTEMBER 29, 2004 PASSED THE ASSEMBLY AUGUST 24, 2004 PASSED THE SENATE AUGUST 19, 2004 AMENDED IN SENATE JUNE 29, 2004 AMENDED IN ASSEMBLY MAY 20, 2004 INTRODUCED BY Assembly Member Parra FEBRUARY 20, 2004 An act to add Section 40608 to the Health and Safety Code, relating to air pollution. LEGISLATIVE COUNSEL'S DIGEST AB 2585, Parra. San Joaquin Valley Air Pollution Control District: Joint Strike Fighter Impact Zone. Existing law requires the air quality management districts and air pollution control districts, subject to the powers and duties of the State Air Resources Board, to adopt and enforce rules and regulations to achieve and maintain the state and federal ambient air quality standards in all areas affected by emission sources under their jurisdiction. Existing law establishes the San Joaquin Valley Unified Air Pollution Control District, formed by the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare, and consisting of the Counties of Fresno, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare, and that portion of the County of Kern that is within the San Joaquin Valley Air Basin, as a single integrated agency. Existing law establishes the Air Pollution Control Fund in the State Treasury. This bill would state the Legislature's intent to encourage the United States Navy to select Lemoore Naval Air Station as the Navy's West Coast Operations Center to house the F-35 Joint Strike Fighter. This bill would authorize the San Joaquin Valley Unified Air Pollution Control District to develop and adopt by regulation, not later than January 1, 2008, a program to fund projects that the district determines will provide measurable reductions in emissions of air contaminants from stationary or mobile sources in the district, to offset or mitigate any increase in air pollution that may result if the United States Navy selects the Lemoore Naval Air Station to house the F-35 Joint Strike Fighter. The bill would require the California Research Bureau, in conjunction with the State Board of Equalization and Franchise Tax Board, to calculate specified state tax revenues derived from the Joint Strike Fighter Impact Zone for the 2003-04 fiscal year and for each fiscal year thereafter, commencing with the 2006-07 fiscal year. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) The F-35 Joint Strike Fighter, a high profile military jet capable of making carrier-landings and designed to drop bombs and to attack other aircraft, is scheduled to be ready for delivery to United States military customers as early as 2008. (2) The United States Navy is considering a number of sites to be the West Coast Operations Center to house the F-35 Joint Strike Fighter, one of which is the Lemoore Naval Air Station located in Kings County. (3) It is estimated that as many as 10,000 new jobs will be generated in and around the site selected to be the West Coast Operations Center that will house the F-35 Joint Strike Fighter. It is also estimated that there will be an increase in economic activity of $1 billion in the area surrounding the site that is selected to be the West Coast Operations Center chosen to house the F-35 Joint Strike Fighter. (4) The Lemoore Naval Air Station, as the Navy's newest air station that serves as the West Coast home of the Super Hornet aircraft, would be an excellent site to house the F-35 Joint Strike Fighter. (5) The Lemoore Naval Air Station facilities that would house the F-35 Joint Strike Fighter are in the proximity of training grounds, are surrounded by a three-mile ring of farmland, and are separated by a number of miles from the base's administration and housing areas. (6) If the Lemoore Naval Air Station is selected as the West Coast Operations Center to house the F-35 Joint Strike Fighter, there could be a negative impact on the ambient air quality within the San Joaquin Valley Unified Air Pollution Control District. (7) It is therefore necessary that any increased emissions of air contaminant associated with the operation of the F-35 Joint Strike Fighter within the San Joaquin Valley Unified Air Pollution Control District be offset or mitigated by reductions in emissions from other sources of emissions in the district. (b) (1) It is the intent of the Legislature to encourage the United States Navy to select the Lemoore Naval Air Station as the West Coast Operations Center to house the F-35 Joint Strike Fighter. (2) It is the further intent of the Legislature to calculate increases in state revenues derived from, and associated with, the selection of the Lemoore Naval Air Station as the West Coast Operations Center to house the F-35 Joint Strike Fighter, and to determine, after that calculation has been made, whether state funding should be provided in an amount based on that calculation to the San Joaquin Valley Unified Air Pollution Control District, for use in mitigating any increase in emissions of air contaminants that may result if the Lemoore Naval Air Station is chosen to be the West Coast Operations Center to house the F-35 Joint Strike Fighter. SEC. 2. Section 40608 is added to the Health and Safety Code, to read: 40608. (a) The district may develop and adopt by regulation, not later than January 1, 2008, a program to offset or mitigate the increased emissions of air contaminants resulting from the operation of the F-35 Joint Strike Fighter program within the district. If the district implements a program under this subdivision, the district shall provide grants to projects that the district determines will provide measurable reductions in emissions of air contaminants in the district, and may include projects that reduce emissions from stationary or mobile sources within the district. Any emission reductions achieved pursuant to this program shall be surplus, quantifiable, permanent, and enforceable and shall not otherwise be required by law or regulation. (b) For purposes of this section: (1) "Joint Strike Fighter Impact Zone" means Kings County. (2) "Base fiscal year" means the 2003-04 fiscal year. (3) "State tax revenues" includes revenues derived from the imposition of taxes under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code), and the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code). (c) (1) The California Research Bureau, in consultation with the State Board of Equalization and the Franchise Tax Board, shall, no later than December 31, 2004, calculate the state tax revenues derived from, or attributable to, the Joint Strike Fighter Impact Zone during the base fiscal year. (2) The California Research Bureau, in consultation with the State Board of Equalization and the Franchise Tax Board, shall, no later than December 31, 2007, and no later than December 31 of each following year, calculate the state tax revenues derived from, or attributable to, the Joint Strike Fighter Impact Zone during the preceding fiscal year.