BOARD MEETING DATE: May 1, 2009
AGENDA NO. 28B
REPORT:
Legislative Committee
SYNOPSIS:
The Legislative Committee held a Special Meeting on Friday, April 24, 2009. The next Legislative Committee meeting is scheduled for Friday, May 8, 2009 at 8:00 a.m. in Conference Room CC8. The Committee deliberated on the following agenda items for Board consideration:
Federal Bill Recommended Action American Clean Energy and Security Act of 2009 (Waxman-Markey) Approve Policy Recommendations State Bill Recommended Position SB 554 (Hollingsworth) Air Pollution Control Districts: Residential Wood-Burning Devices Oppose
RECOMMENDED ACTION:
Receive, file this report, and approve policy recommendations or positions on the bills specified in this letter.
Jane W. Carney, Chair
Legislative Committee
Attendance
A special meeting of the Legislative Committee was held on April 24, 2009. Committee Members Jane Carney (Chair), Michael Antonovich, Tonia Reyes Uranga, and Dr. Joseph Lyou were present via telephone conference.
American Clean Energy and Security Act of 2009 (Waxman-Markey) [Attachment 1]
Barbara Baird, District Counsel, and Jill Whynot, Director of Strategic Initiatives, briefed the Committee on a summary and staff policy recommendations relating to the American Clean Energy and Security Act of 2009 (Waxman-Markey).
Dr. Lyou requested a clarification regarding the content of staff policy recommendation #5 relating to “Efficacy Reports for Transportation GHG Reduction Plans”. Ms. Baird acknowledged that staff’s recommendation would help increase accountability by increasing transparency of the effectiveness of GHG reduction plans and goals created through the requirements of this bill.
Ms. Carney requested a clarification regarding the content of staff policy recommendation #2 relating to “No Credits for Compliance with More Stringent State Fuel Standards”. Ms. Carney stated that, in contrast to the staff recommendation, consideration should be given to allow California businesses to generate emission credits for complying with state requirements that are more stringent than the proposed federal law for low-carbon fuels. Ms. Carney stated that this might allow California companies to get a financial benefit for leading the way in GHG emission reduction efforts, in addition to developing better GHG reduction technology, demonstrating feasibility, and allowing for co-benefits of criteria pollutant reduction. Ms. Baird clarified that this issue applies largely to California transportation fuel providers, which are primarily refineries and importers.
With respect to staff policy recommendation #8 relating to the preemption of cap and trade programs adopted by a state or political subdivision for greenhouse gases, Ms. Carney reiterated that consideration should be given to allow California businesses to generate emission credits for complying with state requirements that are more stringent than the proposed federal law, such as those in California. Ms. Carney requested further staff analysis on this issue.
Dr. Lyou expressed a concern that the federal bill proposes to export the criteria pollutant co-benefits from GHG emission reductions to other countries and that certain policy items included in AB 32 were not included in the proposed federal bill, such as addressing cumulative impacts. Dr. Lyou also expressed concerns about the lack of anti-backsliding provisions, the possible trading of black carbon through the proposed federal program, and subsidies for carbon capture and sequestration.
Mark Kadesh, federal legislative consultant, stated that the proposed federal bill could move through the federal subcommittee process by next week, but would likely not move through the full committee process until May 2009.
The Legislative Committee recommended to Approve all staff policy recommendations regarding the American Clean Energy and Security Act of 2009 (Waxman-Markey), except for the following policy recommendations, which were held for further staff analysis and reconsideration by the Committee at its next regular meeting on May 8, 2009:
- Issue #2 – Staff Policy Recommendation Regarding No Credits for Compliance with More Stringent State Fuel Standards.
- Portion of Issue #8 – Staff Policy Recommendation Regarding Preemption of cap and trade programs adopted by a state or political subdivision for greenhouse gases. Specifically, the policy recommendation regarding the inability of an entity to create allowances, credits or offsets from emission reductions which go beyond the proposed federal law requirements, due to more stringent state, regional, or local requirements.
Recommend Positions on the following state bill [Attachment 2]
Dr. Anupom Ganguli, Assistant Deputy Executive Officer/Public Advisor, briefed the Committee on the following bill:
SB 554 (Hollingsworth)
This bill would prohibit any district from adopting a rule or regulation that restricts or prohibits the installation or operation of any wood-burning device in any new or existing residential structure. The bill would eliminate a key part of the AQMP control strategy to achieve the federal 2015 PM2.5 standard.
The Legislative Committee recommended to Oppose SB 554.
Attachments (EXE, k)
- A. American Clean Energy and Security Act of 2009 (Waxman-Markey) Staff Summary
B. American Clean Energy and Security Act of 2009 (Waxman-Markey)
Staff Recommendations (As modified by Legislative Committee.)
- Recommend Position on state bill SB 554 (Hollingsworth).