Council of the District of Columbia Committee on the Environment, Public Works, and Transportation Committee Report 1350 Pennsylvania Avenue, N.W., Washington, DC 20004 To: Members of the Council of the District of Columbia From: Mary M. Cheh, Chairperson Committee on Transportation and the Environment Date: April 15, 2014 Subject: Bill 20-368, the “Air Quality Amendment Act of 2013” The Committee on Transportation and the Environment, to which Bill 20-368, the “Air Quality Amendment Act of 2013” was referred, reports favorably on the legislation, which the Committee revised to incorporate air quality concerns raised at the public hearing and to better achieve the aims of the original act, and recommends its approval by the Council of the District of Columbia. CONTENTS Statement of Purpose and Effect Page 2 Legislative History Page 2 Background and Committee Reasoning Page 3 Section-by-Section Analysis ___ __Page 6 List of Witnesses and Hearing Record _____ Page 9 Impact on Existing Law _____ Page 10 Fiscal Impact _____ Page 10 Committee Action _____ Page 10 Attachments _____ Page 11 1 STATEMENT OF PURPOSE AND EFFECT To amend the District of Columbia Air Pollution Control Act of 1984 to modify and clarify the authority of the Mayor to establish a comprehensive program for the control and prevention of air pollution in the District of Columbia, to establish an indoor air hazard education program, to provide the Mayor with inspection authority and a right of entry to safeguard and preserve air quality in the District, to require the Mayor to establish an electronic procedure for receiving and responding to air quality complaints, to provide for civil, criminal, administrative and other enforcement of the act, to provide a penalty for false statements, to provide a right to an administrative appeal of certain actions, to require disclosure of information related to the operation of demand response generating sources to the District Department of the Environment, to prohibit emergency generators from being used as demand response generating sources, to require that demand response generating sources meet lowest achievable emissions rate technology; to amend the Rental Housing Act of 1985 to require disclosure by residential property owners to tenants of indoor mold contamination; to provide definitions for indoor mold contamination, professional indoor mold assessment, and professional indoor mold remediation, to require the District Department of the Environment to set a threshold of indoor mold contamination beyond which professional remediation is required, to require the District Department of the Environment to issue standards and certifications for indoor mold assessment and remediation, to require residential property owners to remediate indoor mold contamination, to provide that in a cause of action by a tenant against a residential property owner for a violation of the District Housing or Property Maintenance Codes (“Codes”), an indoor mold assessment finding a certain level of contamination shall create a rebuttable presumption of a violation of the property owner’s obligation to maintain the property under the Codes, to establish the Indoor Mold Assessment and Remediation Fund, to establish authority for the Mayor to promulgate rules, a schedule of fees and fines and seek reimbursement of costs; and to repeal a section of the District of Columbia Air Pollution Control Act of 1984. LEGISLATIVE HISTORY June 26, 2013 Introduction of B20-368 by Councilmembers McDuffie, Cheh, Wells, and Grosso June 26, 2013 Referral of B20-368 to the Committee on Transportation and the Environment July 5, 2013 Notice of Intent to Act on B20-368 is published in the District of Columbia Register November 29, 2013 Notice of a Joint Public Hearing on B20-368 is published in the District of Columbia Register January 2, 2013 Public Hearing on B20-368 held by the Committee on Transportation and the Environment 2 April 15, 2013 Consideration and vote on B20-368 by the Committee on Transportation and the Environment BACKGROUND/COMMITTEE REASONING I. Background & Legislative Action A. Air Quality in the District Poor air quality, whether outdoor or indoor, can negatively affect District residents’ health and quality of life. Although air quality in the District has improved in recent years, the District’s rate of childhood asthma is significantly higher than the national average,1 and the region remains a federally-designated non-attainment zone for both ozone and particulate matter 2.5 national ambient air quality standards.2 Additionally, the U.S. EPA is considering an even more stringent ozone standard that the District will need to take increased measures to attain.3 The District’s original air quality law, the District of Columbia Air Pollution Control Act of 1984 predates Home Rule and was enacted as a combination of governing law and implementing regulations. Due to the structure of this law, the District Department of the Environment (DDOE) has never been able to fully access the intended authority of the act. The original act is in need of an update to incorporate modern penalties and air pollution complaint procedures, and to move certain authorities granted in the act through regulatory provisions into statute to ensure the District’s air quality control programs are enforceable. In addition to the District’s air quality program enforcement concerns, recent changes in U.S. EPA regulations allowing owners of diesel-powered back-up or emergency internal combustion engines (“emergency generators”) to be paid to operate their generators during times of high demand on the grid have created a potential threat to improvement of the District’s outdoor air quality.4 In a densely-populated urban area such as the District, unrestricted participation in these programs could generate hot spots of high ozone, NOX, and particulate matter on high-demand days, which are often already the worst air quality days of the year.5 The District must take steps to protect its residents from the unintended consequences of EPA’s reduced standards. 1 See American Lung Association, State of the Air 2013, available at http://www.stateoftheair.org/2013/states/district-of-columbia/district-of-columbia-11001.html. 2 See http://www.epa.gov/oaqps001/greenbk/ancl.html. 3 Keith A. Anderson, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 4; Ali Mirzakhalili, Committee on Transportation and the Environment Hearing on B20-368 and B20569, January 2, 2014, at 1. 4 See National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines; New Source Performance Standards for Stationary Internal Combustion Engines, Final Rule, EPA Docket No. EPA-HQ-OAR-2008-0708, 78 Fed. Reg. 6674, January 30, 2013. 5 Mirzakhalili Testimony at 1-2; Northeast States for Coordinated Air Use Management, Air Quality, Electricity, and Back-up Stationary Diesel Engines in the Northeast, August 1, 2012, at 3. 3 Indoor air quality also affects the health and quality of life of District residents. In particular, indoor mold can also be a health hazard, particularly for children with asthma.6 There are no nationwide standards establishing unsafe levels of indoor mold, and mold itself is not a District housing code violation. Additionally, unlike some other states, the District has no certification program for indoor mold remediators and sets no remediation standards, so it can be very difficult for tenants to resolve the issue of persistent indoor mold in their dwelling units if they do not have a cooperative landlord. B. Legislative Action: Description & Analysis A. Air Pollution Control Program This bill would amend the District of Columbia Air Pollution Control Act of 1984 to clarify the authority of DDOE to protect the District’s air quality and enforce air pollution laws through emissions limits, permitting, inspections, fines, and other methods. It would also direct DDOE to make public an electronic air quality complaint form, to allow public tracking of air quality complaints, and to report quarterly on air quality complaints in the District. Due to the structure of original law, DDOE has not been able to fully implement the intended authority of the act. Additionally, science has advanced and awareness of the importance of environmental stewardship has increased since 1984. This bill amends the act to incorporate modern penalties based on federal air pollution laws, to add air pollution complaint procedures, and to codify certain compliance and enforcement authorities to ensure DDOE can adequately enforce the District’s air quality laws. B. Restriction of Demand Response Generating Sources This bill would limit the participation of internal combustion engines in demand response (DR) programs by prohibiting the use of back-up or emergency generators in such programs, and requiring any source wishing to participate in DR programs to implement lowest achievable emissions rate technology (LAER). Back-up or emergency generators are often old, diesel-fired, highly-polluting engines that are subject to fewer emission controls than other sources, because they are traditionally understood to operate only during emergencies.7 Due to recent changes in EPA regulations, these pollution sources have become eligible to participate in emergency DR programs, wherein owners are paid to turn on emergency generators during times of high demand on the electric grid. Allowing this type of DR has the unintended consequence of replacing more traditional DR, which relies on energy conservation and efficiency, with dirty, behind-the-meter generation by polluting sources throughout the city. To make matters worse, emergency DR is often called into use on hot days when demand on the grid is high, which are usually the worst air quality days of the year. 6 Dr. Jerome Paulson, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 3-5. 7 Joseph E. Bowring, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 3. 4 PJM, the District’s regional transmission organization, and Monitoring Analytics, the PJM Independent Market Monitor, made clear through testimony at the hearing that, despite its name, “emergency” DR is solely an economic product, and the participation of emergency generators in DR is not necessary for grid reliability. 8 The bill’s limits on DR generating sources would restrict DR in the District to primarily energy conservation-based demand response, which provides all the same reliability benefits as diesel-powered generation DR without the environmental costs.9 District law needs to place firm limits on the use of new air polluting sources in demand response programs to protect air quality. C. Indoor Air Quality Disclosure The bill would amend the Rental Housing Act of 1985 to require landlords to disclose unremediated indoor mold contamination found by a professional assessor to be above a threshold level set by DDOE. D. Indoor Mold Assessment and Remediation Studies have shown associations between visible mold and the development of asthma in young children, and indoor mold can exacerbate asthma caused by allergies, as well.10 At the hearing, the Committee heard many anecdotal cases of low-income or elderly tenants with health problems due to significant indoor mold that they have been unable to properly remediate. 11 The Office of the Tenant Advocate estimates that half of its intake cases involving housing code violations also involve a complaint of indoor mold,12 and the D.C. Legal Aid Society calculated that half of the complaints filed with the D.C. Superior Court Housing Conditions Calendar list indoor mold as a problem in the tenant’s home.13 At the public hearing, Dr. Jerome A. Paulson, Director of the Mid-Atlantic Center for Children's Health and the Environment and Medical Director for National and Global Affairs at the Child Health Advocacy Institute at Children's National Health System, testified: There is no doubt that exposure to mold causes human health problems. . . . For the most part, mold causes problems with the eyes, nose, throat and lungs. Most commonly, people who react to mold have runny, red, itchy eyes, runny nose, scratchy throat and/or cough. For those with asthma, exposure to mold can cause worsening of symptoms such as cough, shortness of breath and sleeping problems and make such symptoms difficult to control. For some with asthma, exposure to 8 Terry Boston, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 2; Bowring Testimony at 5-6. 9 In fact, the PJM Independent Market Monitor indicates that allowing back up generators unrestricted participation in DR programs may even destabilize grid reliability. See Bowring Testimony at 5-6. 10 Dr. Paulson Testimony at 3-5. 11 See, e.g., Jennifer L. Berger, Committee on Transportation and the Environment Hearing on B20-368 and B20569, January 2, 2014, at 2-3. 12 Johanna Shreve, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 3. 13 Beth Mellen Harrison, Committee on Transportation and the Environment Hearing on B20-368 and B20-569, January 2, 2014, at 2. 5 mold can cause the onset of an asthma attack and make such an attack difficult to control. There is also a growing body of evidence that exposure to visible mold is associated with the de novo development of asthma in young children.14 Dr. Paulson also stressed the importance of remediation of indoor mold wherever it is found to be present, and stated that a notification requirement alone was “insufficient to protect human health of those in buildings covered under the proposal. . . . In order for this legislation to be effective, it must require cleanup of known mold contamination . . . .”15 Bill 20-368 would require DDOE to establish a mold assessment and remediation certification and licensing program, and to set a threshold of indoor mold contamination beyond which professional remediation would be required. The bill also creates a rebuttable presumption of a housing code violation in a private action by a tenant against a landlord when a professional indoor mold assessment finds contamination above the level set by DDOE, the landlord has been notified, and the landlord has not remediated the mold. Further, it authorizes fees for the certification program and establishes a non-lapsing fund where they are to be deposited. Any excess monies in the fund are to be used to provide indoor mold assessments to low-income tenants, or to assist in compliance with remediation requirements for low-income landlords. SECTION-BY-SECTION ANALYSIS Title I. Air Pollution Control Program Section 101 amends the District of Columbia Air Pollution Control Act of 1984 as follows: Subsection (a) amends section 5 to outline the powers that the Mayor may exercise in the administration of a comprehensive program for the control and prevention of air pollution in the District, including research and education, cooperation with other jurisdictions, adoption of air pollution and air quality standards, adoption of standards governing nuisance air pollutants, and the establishment of an indoor air hazard education program. Additionally, this subsection authorizes the Mayor to hold hearings, secure necessary services, receive and administer grants and donations, and take any other action necessary. Finally, it directs the Mayor to create a public electronic air quality complaint form and to track and report complaints. Subsection (b) redesignates section 6 as section 14. Subsection (c) adds new sections 6 through 13. Section 6 authorizes inspections of premises reasonably believed to be subject to the act with consent or a warrant, and authorizes the Mayor to investigate and require persons or entities subject to the act to maintain and submit records, install monitoring equipment, sample emissions, and require any other information the Mayor requires. 14 15 Paulson Testimony at 2. Id. at 4. 6 Section 7 establishes that each day of a violation of the act is a separate offense. Section 8 establishes civil penalties of not more than $37,500 per day per offense for violations of the act, and allows the Mayor to impose alternative sanctions. Section 9 establishes criminal penalties for willful or reckless violations of the act, not to exceed $25,000 per offense per day, imprisonment not to exceed one year, or both. Section 10 provides that a person who makes false statements in documents submitted or maintained under the act is guilty of a misdemeanor and subject to a fine not to exceed $10,000, imprisonment not to exceed 6 months, or both. Section 11 provides that the Mayor may impose other sanctions such as revocation or denial of permits or certifications for failure to comply with the act, and authorizes the Attorney General to initiate civil actions to enforce compliance with the act. Section 12 authorizes the Mayor to issue cease and desist orders where a hazardous condition endangering the health or safety of District residents or the environment is determined to exist due to noncompliance with the act; and authorizes the Mayor to issue compliance orders and take any measures necessary to remedy a hazardous condition. Section 13 provides an administrative appeals process for persons aggrieved by actions of the Mayor taken pursuant to the act. Title II. Demand Response Generating Sources Section 201 defines “lowest achievable emissions rate” and “demand response generating source.” Section 202 requires a person who owns or operates an internal combustion engine as a demand response generating source to track and submit an annual operating report for the source. Section 203 limits the use of internal combustion engines as demand response generating sources by prohibiting the use of emergency generators as demand response sources and requiring all demand response generating sources to implement lowest achievable emissions rate technologies as defined by DDOE. Title III. Indoor Air Quality Subtitle A. Indoor Mold Disclosure Amendment Section 301 amends the Rental Housing Act of 1985 to add subparagraph (K) requiring landlords to disclose to potential tenants any information known about indoor mold above 7 DDOE’s threshold requiring professional remediation in the previous 3 years, unless the mold has been remediated. Subtitle B. Residential Indoor Mold Assessment and Remediation Section 302 defines “Director,” “dwelling unit,” “indoor mold assessment professional,” indoor mold contamination,” “indoor mold remediation professional,” “professional indoor mold assessment,” and “professional indoor mold remediation.” Section 303 directs DDOE to set a threshold level of indoor mold contamination requiring professional indoor mold remediation, and to issue guidelines for removal of indoor mold in concentrations below that threshold. Section 304 directs DDOE to issue certifications and licenses for conducting indoor mold assessment and remediation in the District, and authorizes fees necessary to administer the section. Section 305 establishes indoor mold remediation obligations for residential property owners who receive notice that indoor mold contamination exists in a tenant’s dwelling unit or in a common area of the property. Section 306 establishes that, in a private action, a professional indoor mold assessment finding contamination at or above the threshold set by DDOE requiring professional remediation creates a rebuttable presumption of a violation of the property maintenance and housing codes, and gives the Mayor discretion to rely upon a professional indoor mold assessment in issuing notices of violations of the property maintenance and housing codes. Section 307 clarifies that nothing in the act is intended to create a private right of action against the District and its officers or employees. Section 308 establishes a non-lapsing indoor mold assessment and remediation fund to be used to administer the indoor mold certification program and to issue grants to low-income residents for indoor mold assessment or to assist in compliance with remediation obligations. Section 309 clarifies that nothing in the act affects any common law remedies otherwise available. Title IV. Rules, Fees, and Fines Section 401 authorizes the mayor to promulgate regulations to implement the act. Section 402 authorizes the Mayor to establish fees applicable to the act. Section 403 authorizes the Mayor to establish civil penalties or fines to enforce the act and to require reimbursement of costs for services. 8 Title V. Repealer Section 501 repeals section 4 of the District of Columbia Air Pollution Control Act of 1984. Section VI. Fiscal Impact Statement and Effective Date Section 601 adopts the fiscal impact statement. Section 602 provides the effective date of this legislation. LIST OF WITNESSES AND HEARING RECORD On Thursday, January 2, 2014, the Committee on Transportation and the Environment held a hearing on Bill 20-368, the “Air Quality Amendment Act of 2013.” A video recording of the hearing can be viewed at oct.dc.gov. The record was open until January 16, 2014. The following witnesses testified at the hearing or submitted statements outside of the hearing: Terry Boston, President and CEO, PJM Ali Mirzakhalili, Director, Division of Air Quality, Delaware Dept. of Natural Resources and Environmental Control Joe Bowring, Monitoring Analytics, PJM Independent Market Monitor Rick Counihan, Vice President Regulatory Affairs, EnerNOC, Inc. Bruce C. Bereano, Lobbyist, EnerNOC, Inc. Don DiCristofaro, President, Blue Sky Environmental Parisa B. Norouzi, Executive Director, Empower DC Amanda Northcross, Empower DC and the Ivy City Civic Association Karla Butler, Commissioner, ANC 5C Evelyn Fraser, Public Witness Gerald Fittipaldi, Public Witness Dr. Jerry Paulson, Children’s National Medical Center Kathy Zeisel, Esq., Senior Supervising Attorney, Children’s Law Center Nicola Y. Whiteman, Esq. VP of Government Affairs, DC AOBA Katalin Peter, DC Association of Realtors Gloria Dunbar, ARM Assistant VP Borger Management, Inc. Beth Melon Harrison, Supervising Attorney, Legal Aid Housing Unit Lauren Godles, Legal Assistant, Legal Aid Housing Unit Misty Thomas, Staff Attorney, Washington Legal Clinic for the Homeless Dr. Ronique Shields Harris, Medical Officer of HSCSN Craig Channell, Vice President & Director of Operations, WC Smith & Co. Cynthia Briggs, Public Witness Peta-Gay Lewis, Public Witness Jennifer Berger, AARP Legal Counsel for the Elderly 9 Monica McLamore, Public Witness (Client of Jennifer Berger) Deborah Akel, President, Rochelle Tenants Association Farah Fosse’, Director, Affordable Housing Preservation Anna Duncan, Latino Economic Development Center Bruno Avila, 1111 Massachusetts Ave. NW Tenants Association Herbert Mutt, 1111 Columbia Rd. NW Tenants Association Tisha Allen, DC Preservation League Comm Kathy Henderson, ANC 5B Keith A. Anderson, Director of the District Department of the Environment The Hearing Record for this public hearing is on file with the Office of the Secretary. IMPACT ON EXISTING LAW Bill 20-368 would amend the District of Columbia Air Pollution Control Act of 1984, effective March 15, 1985 (D.C. Law 5-165; D.C. Official Code § 8-101.01 et seq.), to expand and clarify the authority granted to the Mayor under the District’s air pollution control program. B20-368 would amend Section 222 of the Rental Housing Act of 1985, effective July 17, 1985 (D.C. Law 6-10; D.C. Official Code § 42-3502.22) to require landlords to disclose knowledge of unremediated indoor mold beyond a threshold set by the District Department of the Environment to potential tenants. FISCAL IMPACT A fiscal impact statement prepared by the Chief Financial Officer and dated __________ is attached to this report. COMMITTEE ACTION On April 15, 2014, the Committee on Transportation and the Environment convened a mark-up on Bill 20-368, the “Air Quality Amendment Act of 2013.” Present and voting were Chairperson Mary M. Cheh …. The meeting was adjourned. LIST OF ATTACHMENTS (A) (B) (C) (D) (E) Bill 20-368, as introduced Fiscal Impact Statement Legal Sufficiency Determination Comparative Print of Bill 20-368 Committee Print of Bill 20-368 10