BOARD MEETING DATE: July 10, 2009
AGENDA NO. 30

REPORT:

Update on SB 696 (Wright): Air Quality: CEQA Exemptions: Emission Reduction Credits and Related Legislation

SYNOPSIS:

SB 696 (Wright), sponsored by the AQMD, was significantly amended by the author on June 9, 2009. The amended bill was discussed at the June 12 Legislative Committee which recommended that the amendments be reviewed by the full Board at the July meeting.

RECOMMENDED ACTIONS:

Receive and file.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Due to a recent state court CEQA decision, AQMD has been forced to stop issuing permits relying on our internal offsets accounts. As a result, more than 1,200 permits are on hold, with potentially over 3,000 existing permits representing over 2,000 facilities in further jeopardy, and subject to cancellation. Affected businesses include essential public services, including sewage treatment plants, hospitals, schools, fire and police stations; as well as other facility modernizations, air pollution control installations, emergency equipment procurement, and projects at small emission sources.

SB 696 by Senator Rod Wright is a comprehensive solution which will allow the issuance of permits for small businesses, and other exempt sources, essential public services and needed power plants. This AQMD-sponsored bill addresses the viability of AQMD’s internal offset account as well as the processing of permits ‘caught’ in the permitting moratorium.

SB 696 was originally set for hearing on May 12, but was pulled from the Committee agenda when the Senate President Pro Tem indicated that he wanted to see further negotiations between AQMD and the litigants in the state lawsuit. Accordingly, Senator Wright endeavored to mediate between the parties and conducted a series of meetings where he personally met with AQMD staff and the litigants, first separately, and then together. As a result of these discussions, bill language was drafted, but a mutually acceptable settlement was not reached.

Nevertheless, Senator Wright decided to move the bill forward and crafted Author’s amendments based on his mediation discussions. The Author’s amendments to SB 696 were in print on June 9 and on June 11 the Senate Energy, Utilities and Communications Committee set the bill for hearing on June 16.

On June 17, the Committee made minor clarification and technical amendments to the bill which is the version attached herein.
 

Discussion

Staff informed the Board’s Legislative Committee of the recent developments on SB 696 (Wright) at the June 12 meeting, where Committee members expressed a desire to have the full Board updated the Author’s latest amendments to SB 696. Since the Legislative Committee meeting, there have been additional actions related to SB 696. In addition, AB 1318 (Pérez) a related subject matter bill has been moving forward in the Assembly and overlaps SB 696 on certain issues. Staff will summarize the current status of SB 697 at the July Board meeting and describe the next steps in the legislative process.
 

Recommended Action

Receive and file the report.
 

Attachment (DOC, 138k)

SB 696 (Wright) Bill Language