BOARD MEETING DATE: January 9, 2009
AGENDA NO. 17
PROPOSAL:
Legislative Committee
SYNOPSIS:
The Legislative Committee held its regular meeting on Friday, December 12, 2008. The next Legislative Committee meeting is scheduled for January 16, 2009 at 8:00 a.m. in Conference Room CC8. Staff updated the Committee on Sacramento and Washington, D.C. issues and sought the Committee’s approval on federal appropriations requests, economic stimulus package proposals, marine vessel legislation and recommendations to the President- Elect and his transition team.
RECOMMENDED ACTIONS:
Adopt Legislative Committee recommendations to:
- Submit seven appropriations requests and pursue additional projects for possible inclusion in the anticipated economic stimulus package.
- Pursue marine vessel emissions reduction legislation which implements and expedites the new IMO standards.
- Approve proposals submitted to President-Elect Obama and his transition team.
Jane W. Carney, Chair
Legislative Committee
Attendance [Attachment 1] The Legislative Committee met on December 12, 2008. Committee Members Jane Carney (Chair) and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Jan Perry, and Roy Wilson were present via videoconference.
Update on State Legislative Issues
AQMD consultant Mr. Will Gonzalez updated the Committee on state legislative issues. He noted that there is a $40 billion deficit in the current and next year’s budgets. The Governor has called another special session to deal with the crisis, and it is acknowledged to be worse than anyone remembers. Much anticipated is the first detailed Republican leadership proposal scheduled to be released on December 16, 2008. The Legislature will have a vote on a budget proposal before the holiday break, but there is little expectation that anything will be accomplished until the New Year.
Mr. Gonzalez further reported that only a few bills have been introduced this session so far, including Senator Negrete-McLeod’s reintroduction of her feed-in-tariff solar bill, SB 32. The PUC along with the Governor and the leadership from both houses have indicated strong support for the bill. In the Assembly, Felipe Fuentes is introducing a similar bill that may be merged with this bill. Several solar net-metering bills are also anticipated that staff will monitor.
Supervisor Wilson asked if there would be efforts to mitigate the utility opposition on SB 32. Mr. Gonzalez stated that utilities actually are not opposed to the bill. Last year it was the agricultural amendment which proved to be problematic as it would have depleted available financial rebates.
Mr. Gonzalez added that there are two bills dealing with the Renewable Portfolio Standard (RPS), increasing RPS requirements from currently required 20% in 2010 to 35% by 2020. Both houses and the Governor have committed to signing an RPS bill in the first 90 days of session. Dr. Lyou inquired if transmission issues have been dealt with. Mr. Gonzalez reported that transmission issues are being addressed by attempting to streamline the process on the regulatory side.
Other major bills to watch include Senator Lowenthal’s container fee bill; however, due to the deterioration of the economy and the 15-20% downturn at the ports, the bill will not likely be introduced. Regarding SB 375, Senate President Pro-Tem Steinberg has committed to pursuing clean-up language to last year’s landmark land-use planning and greenhouse gas bill. As of yet there is no indication as to what shape that bill will take, but staff and consultants will be working closely with Senator Steinberg and his staff.
Senator Polanco (retired), AQMD consultant, stated that Senator Alex Padilla was named Chair of the Energy and Utilities Committee and Assembly Member Felipe Fuentes is expected to be named Chair of the Utilities and Commerce Committee. He further indicated that given their stance on the issues and their close working relationship with the District, this is a positive development.
Update on Federal Legislative Issues
AQMD consultant Mark Kadesh reported that the ascendancy of Henry Waxman to Chair of the House Energy Committee is beneficial as he is a strong air quality advocate. The 111th Congress will be starting quickly with the stimulus package. Mr. Kadesh indicated that in the 111th Congress, we can anticipate an energy bill and also a climate change bill. Of strong interest to AQMD will be the Federal Surface Transportation Reauthorization bill. Senator Barbara Boxer has specified that she wants to see air quality as a major component of the reauthorization. Dr. Barry Wallerstein and AQMD staff will be meeting with members of the Obama transition team, the Environment and Public Works Committee staff and other key member offices to review potential AQMD priorities in December 2008.
Chris Kierig, AQMD Consultant, reported that U.S. EPA is holding back 15% of Section 103 and 105 grants, due to the difference in 2008 and 2009 budgets. Mr. Kierig anticipates a favorable resolution when the budget is introduced in the New Year. Mr. Kierig added that a key opportunity will be the economic stimulus package that will range from $300 to $700 billion. Details are still unknown as the legislative leadership and members of the Obama transition team are still looking for ideas – in particular, they are seeking proposals that can obligate money quickly and which will create jobs.
Federal Appropriations Requests [Attachment 2]
Dr. Matt Miyasato presented seven proposed appropriations requests for the Committee’s consideration. The proposals would be submitted for consideration under the stimulus package as well as through the regular appropriations process. The focus for these proposals would be projects that have identifiable air quality benefits and also create jobs or maintain job security in certain sectors of the economy.
The proposed projects are:
1. Continuation of Diesel Emissions Reduction Act (DERA) Program $28M*
2. Heavy-Duty Electric and Hydraulic Hybrid Vehicles $19M
3. Advanced Goods Movement Technologies $10M
4. Continuation of Plug-in Hybrid Electric Vehicle Program $10M
5. Hydrogen in Market Transformation Niches $5M
6. Air Purification Filters for Schools $20M
7. Alternative Fuel Taxicab Deployment $8M
TOTAL $100M*
Dr. Chung Liu provided an additional outline of supplemental projects [Attachment 3] for the committee’s consideration, to be proposed as part of the economic stimulus package, recognizing that these concepts would be further developed over the coming weeks with leaders in Washington, D.C.
During discussion, Dr. Miyasato reported that the Air Purification Filters for Schools Project is limited to 250 - 300 schools in the most impacted areas. Board Member Jan Perry asked if Proposition Q monies could also be used for school modernization. Dr. Wallerstein stated that staff would explore additional funding opportunities. Dr. Wallerstein further added that the genesis of Air Purification Filters for Schools is consistent with job creation and could work in conjunction with President-Elect Obama’s School Enhancement Program. Chair Carney proposed studying the possibilities of not limiting the program to schools, but expanding the program to Senior Care Centers where residents typically spend 24 hours a day, seven days a week versus students who are in school only about a third of the day, five days a week.
Chair Carney requested that staff research how to broaden and not concentrate monies in project areas in order to assist in creating jobs to stimulate the economy. Chair Carney further added that projects should be transformational, new and significant.
The Legislative Committee voted to approve in concept the Federal Appropriations Requests and the economic stimulus package proposals.
Marine Vessel Emissions Reductions Legislation [Attachment 4]
Peter Greenwald stated that since the Marine Vessel Emissions Reductions
Act, S 1499 was introduced by Senator Boxer, the International Maritime Organization has adopted Marine Vessel Emission Standards. The benefits of this are significant emission reductions; however, they are still not sufficient to meet the requirements of the State Implementation Plan for this region. Consequently, staff is proposing legislation that would further expedite the IMO standards. Specifically, it would require U.S. EPA to adopt the most stringent IMO standards on an expedited timeframe, including standards applicable to emissions control areas, or as an alternative, to adopt standards that achieve the greatest degree of emissions reductions achievable, provided that reduction is no less stringent than emissions and fuel standards adopted by IMO. Mr. Greenwald explained that having the flexibility of the two alternatives i.e. (Proposed legislation and a letter requesting U.S. EPA action) would be helpful as staff begins discussions with members of Congress and their staff.
The Legislative Committee voted to approve the staff approach to new Marine Vessel Emissions Reductions Legislation.
Recommendations to President-Elect [Attachments 5a and 5b]
Dr. Wallerstein explained that the document is intended to be presented as a discussion piece with the transition team. The document reflects AQMD Governing Board’s approach and is consistent with President-Elect Obama’s stated objectives. Committee members acknowledged the sophisticated and substantial policy and broad technical expertise of staff as reflected in the document, but requested that it be supplemented by a companion piece that outlines a few important early action items.
Legislative committee approved the recommendations to the President-Elect, to be supplemented by a one-page early action document. [Included in Attachment 5a]
Report from AQMD Home Rule Advisory Committee [Attachment 6]
Written report received and filed.
Public Comment
Mr. Bill La Marr asked why offset credit issues and their negative impact were not included in the recommendations to the transition team. Dr. Wallerstein explained that offsets will be part of the discussions in Washington, D.C. and in the AQMD in the next few weeks.
Attachments (EXE, 1.7m)
- Attendance Roster
- SCAQMD’s Economic Stimulus and Federal Funding Request Proposal
- Potential Projects To Be Considered for the Economic Stimulus Package
- Federal Legislative Proposal – Oceangoing Marine Vessels
- Recommendations to the President-Elect
- Legislative Report from AQMD Home Rule Advisory Group
Revised from the figures of $20M for requested DERA funds and $92M in total funding requested.