BOARD MEETING DATE: June 5, 2009
AGENDA NO. 30
REPORT:
Legislative Committee
SYNOPSIS:
The Legislative Committee held its regular meeting on Friday, May 8, 2009. The next Legislative Committee meeting is scheduled for Friday, June 12, 2009 at 8:00 a.m. in Conference Room CC8. The Committee deliberated on agenda items including the following state legislation and principles for Board consideration:
Bill/Title Recommended Position SB 811 (DeSaulnier) Vehicles: Specially Constructed Vehicles Support AB 859 (Jones) Smog Check: Annual Inspection: Repair Assistance Program Support Recommended Principle Recommended Position Revised policy recommendations for Principles for American Clean Energy and Security Act of 2009 (Waxman-Markey) Approve Policy Recommendations Proposed South Coast AQMD Statement of Principles regarding Enhanced Vapor Recovery (EVR) Requirements of CARB Support with amendments
RECOMMENDED ACTION:
Receive, file this report, and approve positions on the bills and principles specified in this letter.
Jane W. Carney, Chair
Legislative Committee
Attendance [Attachment 1]
The Legislative Committee met on May 8, 2009. Committee Chair Jane Carney and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Jan Perry, and Dr. Roy Wilson were present via videoconference.
Oscar Abarca, Deputy Executive Officer, reported that the legislative leadership has taken an interest in the enhanced vapor recovery requirements. This is the issue addressed by the urgency item that is being presented to the Committee today. Mr. Abarca stated that there will be upcoming negotiations with potential resolution of the issue and added that staff thought it would be advantageous to get guidance through a set of principles to assist in the negotiations with various stakeholders and legislators.
The Committee agreed to add the urgency item to agenda.
Update on Federal Legislative Issues
Mark Kadesh, AQMD federal legislative consultant, reported that Congressman Waxman, Chair of the Energy and Commerce Committee is working to obtain votes from the subcommittee to move the climate change bill. Mr. Kadesh stated that currently Congressman Waxman is in negotiations primarily with Congressmen Rick Boucher and Mike Doyle. Mr. Kadesh added that if the bill does not move by Memorial Day recess, the bill may be put aside and the focus will then be on health care for most of the summer.
Chris Kierig, AQMD federal legislative consultant, reported that the details of the President’s budget have been released. Mr. Kierig reported that the President proposed to keep the DERA program funded at $60 million for FY 2010. Additionally, it was reported that the President may not ask for the continuation of the California Diesel Emission Reduction program, which is where money has been drawn from for the past couple of years. Mr. Kierig stated that an effort to cut this program occurred last year as well, but the funding was restored, and that he expected the same to happen this year as well. Mr. Kierig then said that in order to help justify keeping the program, AQMD will need to provide information about how the money is being utilized under the program.
Update on State Legislative Issues
Will Gonzalez, AQMD state legislative consultant, reported on three bills that AQMD opposed. Mr. Gonzalez stated that AB 28 (Jeffries) failed in committee. Mr. Gonzalez added that regarding AB 397 (Jeffries) and SB 554 (Hollingsworth), the authors withdrew the bills from consideration on the first hearing date.
Oscar Abarca reported that AQMD sponsored bill SB 696 (Wright) was scheduled to be heard in the Senate Energy and Utilities Committee on May 12, 2009, however, the hearing was canceled at the request of the author. Mr. Abarca stated that the author of the bill contacted the President Pro Tem and asked him to try to find a resolution to this issue. Mr. Abarca informed the committee that we have a robust list of supporters that includes Labor, Local Governments, and Essential Public Services. Mr. Abarca stated this issue has resonated with the President Pro Tem and he wants to personally intervene and assist in finding a resolution.
Dr. Barry Wallerstein, Executive Officer, stated that through the hard work of the legislative team, staff, and the consultants, it is quite clear to the legislature that the ongoing impact of this current litigation is dramatic in terms of the California economy; particularly in Southern California.
Policy Issues for Waxman-Markey “ACES” Bill [Attachment 2]
Staff prepared a summary of recommendations for the Waxman-Markey “American Clean Energy and Security Act of 2009.” During the Special Legislative Committee meeting held on April 24, 2009, the Committee members requested further staff analysis on Recommendation No. 2 involving fuel standards and part of Recommendation No. 8 involving cap and trade program standards. At issue with both of these items was whether greenhouse gas emission credits should or should not be created under a federal program through stricter reduction standards required by a state program. Committee members also requested further discussion of several issues presented by the bill that were not included in the staff recommendations.
Barbara Baird, District Counsel, briefed the Committee on a summary and further staff analysis of Issue 2 and Issue 8 of the staff policy recommendations.
Chair Carney stated that in regard to Issue 2, her preference is that AQMD not comment on that section of the rule.
Greg Adams stated that there are still other issues in the document that the Committee might want to discuss. Mr. Adams stated that there is no mention of protection for early action items. Mr. Adams further added that, on one of the energy titles there is an item that is contradictory to the policy of the agency, which is demand reduction programs via turning on standby generators; also known as “interruptible load programs”. Mr. Adams stated these issues, as well as others in the Waxman-Markey draft, deserve further discussion. Dr. Wallerstein stated that staff would work to address these two issues.
Supervisor Roy Wilson stated that he agreed with Chair Carney’s position. Mr. Wilson stated that his major concern is becoming distracted by many of these issues that may not even get through committee. Mr. Wilson stated that he would be willing not to take a position on issue 2, and focus on more critical issues.
The Legislative Committee recommended taking no action on Issue 2. [Attachment 2]
Dr. Joseph Lyou asked if Issue 8 allows instate companies to utilize out of state credits to comply with state or regional standards. Ms. Baird replied no and stated that the issue involves a federal cap and trade program. If California was to adopt a more stringent program, California businesses would go beyond the federal requirement which might allow them to create credits under the federal system which they could sell to other companies in other states. Such a situation might reduce the benefit of stricter state standards.
Barbara Baird stated that the Committee has already approved certain staff recommendations to have the bill provide for a waiver of preemption. Ms. Baird stated what is at issue is whether AQMD should also recommend that credits not be available under the federal program for reductions that are required by a state program that goes beyond federal requirements.
The Legislative Committee approved the staff recommendation on Issue 8.
Additional Issues related to the American Clean Energy and Security Act of 2009 (Waxman-Markey)
Jill Whynot, Director of Strategic Initiatives, briefed the Committee on several additional policy recommendations related to the American Clean Energy and Security Act of 2009 (Waxman-Markey). These issues were raised at the Special Legislative Committee Meeting on April 24, 2009.
Dr. Lyou suggested various language changes for the first policy recommendation relating to protections against the creation or exacerbation of local or regional cumulative impacts.
The Legislative Committee approved staff recommendations with amended language on Issue 1 under Title III-Reducing Global Warming Pollution, relating to protections against the creation or exacerbation of cumulative impacts.
The Legislative Committee approved staff recommendations on Issue 2 under Title III-Reducing Global Warming Pollution, relating to the most polluted communities receiving the most co-pollutant benefits.
The Legislative Committee approved staff recommendations on Issue 3 under Title III-Reducing Global Warming Pollution, relating to the prevention of backsliding.
The Legislative Committee approved staff recommendations on Issue 4 under Title III-Reducing Global Warming Pollution, relating to the prohibition of international offsets.
The Legislative Committee approved staff recommendations on Issue 5 under Title III-Reducing Global Warming Pollution, relating to the prohibition of trading and offsets related to black carbon.
The Legislative Committee approved staff recommendation of taking no position on Issue 6 under Title III-Reducing Global Warming Pollution, relating to how allowances will be distributed under a cap-and-trade program.
Recommend Positions on the following state bills [Attachment 3]
Dr. Pom Pom Ganguli briefed the Committee on the following bills:
SB 811 (DeSaulnier): This bill will close an existing loophole that allows owners of specially constructed vehicles (SPCNS) to avoid California’s strict emissions requirements by registering it out-of-state and then bringing it back to California.
The Legislative Committee recommended to Support SB 811.
AB 859 (Jones): This bill would require the Department of Consumer Affairs to incorporate the annual inspection of motor vehicles that are model 15 years old or older into the motor vehicle inspection and maintenance program by January 1, 2011, and would require funds generated through additional inspection fees to be deposited into the High Polluter Repair or Removal Account.
Chair Carney asked how AB 859 is funded. Mr. Gonzalez reported that the bill is funded through the smog check certificate fee that is paid, and the program is completely self-funded.
The Legislative Committee recommended to Support AB 859.
Legislative Report from AQMD Home Rule Advisory Group Committee [Attachment 4]
Please refer to Attachment 4 for a written report.
Proposed Principles Regarding Enhanced Vapor Recovery (EVR) Requirements of CARB [Attachment 5]
Oscar Abarca stated that this issue has recently drawn a lot of attention from the legislators in Sacramento. There seems to be a difference of opinion in how to find a fix between the Senate and the Assembly. Therefore, the general principles were developed to guide staff in their discussions on policy positions regarding state legislation or related matter affecting CARB’s Enhanced Vapor Recovery requirements within the jurisdiction of South Coast AQMD.
Dr. Lyou proposed an amendment changing the language of number III of the principles.
The Legislative Committee recommended to approve the Proposed Principles Regarding Enhanced Vapor Recovery (EVR) Requirements of CARB with amendments.
Public Comments
None
Attachments (EXE, 126k)
- Attendance Roster
- Revised Policy Recommendations for Principles for American Clean Energy and Security Act of 2009 (Waxman-Markey)
- Bill Language and AQMD Bill Analyses
- Report from AQMD Home Rule Advisory Committee
- Urgency Item – Proposed Statement of Principles Regarding Enhanced Vapor Recovery (EVR) Requirements of CARB