BOARD MEETING DATE: February 7, 2003
AGENDA NO. 19

Legislative Committee

SYNOPSIS: 

The Legislative Committee held its regular meeting on Friday, January 17, 2003. The next Legislative Committee meeting is scheduled for Friday, February 14, 2003, at 8:00 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file this report

Jane Carney, Vice-Chair
Legislative Committee

Attendance

The Legislative Committee met on January 17, 2003. Present were Committee Vice-Chair Jane Carney and Committee Members Fred Aguiar, Michael Antonovich and Roy Wilson (by videoconference). Committee Chair Beatrice LaPisto-Kirtley and Board Chair William Burke were unable to attend. [Attachment 1]

Washington Report/Update

Lynn Jacquez, AQMD Federal Legislative Representative, reported that Senator Ted Stevens (R-AK) is the new Chair of the Senate Appropriations Committee. As Chair, Senator Stevens has introduced an Omnibus bill containing all eleven Appropriations bills for 2003. The bill is currently being debated and the Senate hopes to conference with the House and submit a bill to the President before the State of the Union address on January 28. The President’s proposed 2004 Budget is scheduled for release on February 3.

Committee leadership positions in Congress have changed. A listing of new Committee memberships is attached. [Attachment 2]

Sacramento Update

Allan Lind, AQMD State Legislative Representative, reported that the Legislature reconvened on January 6, the Governor held his State of the State address on January 8 and then released the 2003-04 Budget on January 10. The Governor’s proposed budget continues subvention funding for local air districts at the 2002-03 level of $10 million statewide. The 2003-04 Budget also contains $23 million for the Carl Moyer Program provided by Proposition 40, passed by the voters in 2002. The current state budget crisis is being cast as an 18-month, $34 billion problem. The Administration is trying to close a $10 billion gap in the current fiscal year and a $24 billion gap in the 2003-04 Budget.

The California Air Resources Board (CARB) is facing a $10 million reduction in funding for their stationary source program for the 2003-04 Budget and beyond. Existing law permits CARB to impose a fee on stationary sources emitting more than 500 tons per year with a cap of $3 million total. The Governor has introduced a proposal to remove the cap, drop the threshold to sources emitting 250 tons per year or more and to also include fees on Consumer Products and Architectural Coatings. A proposal for stationary source fees for CARB was recommended by the Legislative Analyst’s Office last year, but was ultimately defeated by the Legislature. This year’s proposal has already passed the Senate and Assembly Budget Committees and is expected to pass the Legislature during the current special session, which was convened by the Governor to address the current year budget problems.

The AQMD and CAPCOA have spent the last three months working with the Administration to possibly prevent a proposal for stationary source fees. But given the current Budget problems, legislative staff has indicated that such a proposal is necessary. Architectural Coatings and Consumer Products represent a very significant component of the overall emissions inventory. Staff has looked at the emission contribution for the South Coast Air Basin and believes that new fees on Consumer Products and Architectural Coatings are appropriate because of the air quality significance of their pollutant emissions. It is hoped that stationary sources will be the last source to be affected.

On behalf of the AQMD Board, staff worked with the Legislature to allow air districts to opt out of collecting the fee for CARB. The AQMD currently does billing for CARB and some have misinterpreted those billings to be from the AQMD.

Assemblyman Marco Firebaugh has become the new Chair of the Latino Caucus, replacing termed-out Senator Richard Polanco. In the Senate, a new Select Committee on Air Quality in the Central Valley has been formed and Senator Dean Florez will Chair the committee. A Select Committee on the Alameda Corridor East was formed last year but their agenda has not been set. Senator Martha Escutia will Chair the committee and Senators Jim Brulte, Bob Margett, Nell Soto and Betty Karnette will serve on the committee. The mission of this Committee is consistent with the AQMD’s 2003 Legislative Agenda. Additionally, at the request of Supervisor Antonovich, AQMD staff met with representatives of the Alameda Corridor and there may be an opportunity to work together on a number of issues.

In the Assembly, Assemblyman John Laird is the new Chair of the Assembly Environmental Safety Committee and Assemblywoman Sarah Reyes is the new Chair of the Assembly Utilities and Commerce Committee. The Assembly also has a new Select Committee on Air Quality to be Chaired by Assemblywoman Fran Pavley.

The goals of AQMD’s 2003 State Legislative Agenda are to 1) preserve state subventions; 2) explore the petroleum fee mitigation proposal that was introduced last year; and 3) address air pollution problems associated with the Alameda Corridor. The agenda was approved by the Governing Board in December and is attached for information purposes. [Attachment 3] Legislative proposals are being discussed with potential authors and will be brought to the Committee at a future date.

Other Business

A motion was made to add to the agenda, as an urgency item, a proposal to seek legislation to regulate motor vehicles, off-road engines and consumer products beyond the AQMD’s current authority. Motion failed for lack of a unanimous vote of the Committee members present to add the item. Committee members Carney and Wilson aye, with Antonovich and Aguiar opposed.

Public Committee

None

Attachments

1. Attendance Roster
2. Listing of Federal Committee Assignments
3. 2003 State Legislative Agenda

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