BOARD MEETING DATE: May 1, 2009
AGENDA NO. 28
REPORT:
Legislative Committee
SYNOPSIS:
The Legislative Committee held its regular meeting on Friday, April 10, 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 agenda items including the following state legislation for Board consideration:
Bill/Title Recommended Position AB 96 (Ruskin) Gasoline: Underground Storage Tanks Support with amendments AB 414 (Galgiani) Carl Moyer Memorial Air Quality Standards Attainment Program: heavy-duty fleet modernization projects Support with amendments AB 758 (Skinner) Energy: energy audit Support SB 632 (Lowenthal) Ports: Congestion Relief: Air Pollution Mitigation Support AB 1135 (Skinner) Vehicles: registration renewal Support with amendments SB 425 (Simitian) Vehicle trip reduction Support with amendments SB 435 (Pavley) Smog Check Program; Motorcycles Support SB 626 (Kehoe) Electrical infrastructure: plug-in hybrid and electric vehicles Support with amendments Recommended Principle Recommended Position Recommend Principles for Improvement of Goods Movement Infrastructure & Environment Support with amendments
RECOMMENDED ACTION:
Receive, file this report, and approve positions on the bills or principles specified in this letter.
Jane W. Carney, Chair
Legislative Committee
Attendance [Attachment 1] The Legislative Committee met on April 10, 2009. Committee Chair Jane Carney and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Jan Perry, and Tonia Reyes Uranga were present via videoconference.
Update on Federal Legislative Issues
Mark Kadesh, AQMD federal legislative consultant, reported that Congressman Waxman, Chair of the Energy and Commerce Committee, has circulated a draft climate change/energy bill which is to be marked up by May. Mr. Kadesh reported that AQMD staff is still reviewing the draft. Mr. Kadesh informed the Committee that there were meetings with Senator Boxer and her staff who confirmed that their climate change bill will move slower than the House version. Mr. Kadesh also reported talking with Senate Environment and Public Works (EPW) Committee staff and others about the transportation reauthorization bill, which is supposed to pass this year or early next year.
Update on State Legislative Issues
Will Gonzalez, AQMD state legislative consultant, reported that CARB’s Enhanced Vapor Recovery (EVR) rule continues to generate controversy. Mr. Gonzalez stated that there is a coordinated effort with CAPCOA and other air districts to manage good information flowin order to deal with the controversy at the Capitol. Senator Polanco agreed and added that it is a good time to educate and inform others about this issue.
Mr. Gonzalez reported that there could be a problem with the Prop 1B program as the District would be required to send emission reductions funds back to CARB if one contractor happens to back out of their contract. AQMD is seeking a solution to this problem with proposed legislation. Mr. Gonzalez also reported that there are several bills trying to establish a feed-in tariff program for renewable resources. The Public Utilities Commission (PUC) recently issued a draft ruling and they are proposing a feed-in tariff for generation of power up to 20 megawatts. Mr. Gonzalez stated that there will be a legislative briefing on April 14th with members of the staff in the Capitol. The briefing will involve the offsets issue and the present situation with CARB’s EVR regulation.
Mr. Polanco stated that AQMD staff is engaging various stakeholders regarding SB 696 (Wright). Mr. Polanco reported that although the bill has not been assigned to a particular policy committee, but the support that is necessary is developing.
Dr. Lyou asked if the staff needs direction from the Committee or the Board to support the PUC regulatory process on feed-in tariffs. Dr. Barry Wallerstein stated that the Board’s positions on legislation would serve as a guide.
Mr. Oscar Abarca stated that in order to support legislative initiatives it is important to continue to have meetings in Sacramento at AQMD’s office. Mr. Abarca added that these meetings help to ensure that information is shared with stakeholders effectively and efficiently.
Recommend Positions on the following state bills
[Attachment 2]
Mr. Abarca briefed the Committee on the following bills:
AB 96 (Ruskin): This bill would make loans and grants available for compliance with the state’s EVR requirements. It makes one-time transfer of funds for the purpose of making loans and grants in the 2008-09 and 2009-10 fiscal years for vapor recovery compliance, and extends the repeal date of a former grant and loan program.
Chair Carney asked where the funds come from. Mr. Abarca stated that currently under state law, there is a fund that is used for converting underground storage tanks at gas stations. Mr. Abarca added that there would be a one-time $8 million transfer from that account to the new subaccount.
Staff recommended supporting the bill with an amendment, to substitute loans instead of grants. Loans are preferred to grants, since grants to facilities who have delayed compliance are unfair to those who have complied at their own expense previously. Loans carry repayment terms and are therefore more equitable, while serving to fulfill the immediate needs of some gas station owners.
The Legislative Committee recommended to Support AB 96 with Amendments.
AB 414 (Galgiani): The bill would require CARB to develop and implement a trade-down program that provides assistance to owners of high-use, older model, heavy-duty fleet vehicles. The bill would provide that the trade-down program would be eligible for funding under the Carl Moyer program if it meets specified criteria, thus offering additional flexibility to modernize fleets and further reduce emissions.
Dr. Wallerstein asked Fred Minassian to clarify that a similar program was implemented with school buses and Mr. Minassian explained the program for school buses. Dr. Lyou stated that the legislative history of this bill needs to be made clear. Chair Carney suggested that the language of the bill be cleaned up. Mr. Abarca stated that staff is working with the author of the bill and will suggest that they clarify the language.
Staff recommended supporting the bill with amendments. Although this bill would enhance the emission reduction potential of the Moyer Program, it could be strengthened if it were broadened to include Proposition 1B funding as well. Staff recommended another amendment for an additional four years for compliance, consistent with the Moyer program.
The Legislative Committee recommended to Support AB 414 with Amendments.
AB 758 (Skinner): This bill would require the Energy Commission, by March 1, 2010, to establish a regulatory proceeding to develop a comprehensive program to achieve greater energy savings in the state's existing residential and commercial building stock.
Dr. Lyou stated that according to a previous study there are right and wrong ways to conduct energy audits, and suggested that the cited material be shared with Assemblymember Skinner.
The Legislative Committee recommended to Support AB 758.
SB 632 (Lowenthal): This bill would require the Ports of Long Beach, Los Angeles, and Oakland, beginning January 1, 2010, to assess their infrastructure and air quality improvement needs, including, but not limited to, projects that improve the efficiency of the movement of cargo while reducing pollution associated with the movement of that cargo, and the replacement of trucks, cargo handling equipment, locomotives, and ships that move that cargo. This bill would include in the assessment the total costs of the infrastructure and air quality improvements and possible funding options for these projects.
Ms. Carney asked for clarification of the bill’s intent. Mr. Abarca stated that this is intended to be a placeholder and as legislation moves forward, this may be the vehicle for the reintroduction of funding sources, as in previous year’s proposal. Dr. Wallerstein stated that another important aspect to the bill is that it incorporates the Port of Oakland. Dr. Wallerstein informed the Committee that currently the Port of Oakland’s air plan has limited substance according to the Bay Area District.
The Legislative Committee recommended to Support SB 632.
Dr. Anupom Ganguli, Assistant Deputy Executive Officer, briefed the Committee on the following bills:
AB 1135 (Skinner): This bill would require an owner of a motor vehicle, upon application for renewal of a vehicle registration, to report the current odometer reading of the vehicle. The bill will require that information, except for the name of the vehicle owner, to be public information. This information will assist in achieving California’s climate change policy objectives as well as the state’s air quality and transportation planning goals. More accurate data about vehicle-miles-traveled would provide essential information to guide local air quality, transportation, and land use planning.
Dr. Lyou stated that it is not clear by reading the language what information would be collected and made available to the public. Dr. Ganguli stated that the vehicle owner’s name would be withheld, and that staff will check with the author for more specifics. Dr. Lyou recommended that street address information should be kept confidential.
Staff recommended supporting the bill with amendments that include reference to air pollutants as well as Greenhouse gas reductions, and address the confidentiality issue mentioned above.
The Legislative Committee recommended to Support AB 1135 with Amendments.
SB 425 (Simitian):This bill would require the Air Resources Board, in coordination with the Department of Transportation, to develop a program for employers employing more than 100 individuals to reduce the number of single-occupant vehicle trips.
In response to questions from the Committee, Ms. Carol Gomez stated that this bill drops the threshold down to employers with 100 employees versus AQMD’s rule threshold of 250 employees, which will include a larger number of employers.
Staff recommended supporting the bill with amendments to add air districts to the list of sources from which CARB will collect information, in order to avoid duplication and expedite data collection.
The Legislative Committee recommended to Support SB 425 with Amendments
SB 435 (Pavley): This bill would require the Department of Consumer Affairs to include newer model motorcycles in the Smog Check program, since they are currently exempt, and constitute a significant source of emissions.
Dr. Wallerstein stated that in general, motorcycles, although smaller than a car, are far more polluting. Dr. Lyou asked if the strikeout language in the legislation was incorrect. Dr. Ganguli stated that staff would look into this.
The Legislative Committee recommended to Support SB 435.
SB 626 (Kehoe): This bill would require the Public Utilities Commission, in consultation with the Energy Commission, CARB, electrical corporations, and the motor vehicle industry, to evaluate and implement policies to develop infrastructure to support the widespread deployment and use of plug-in hybrid and electric vehicles. Staff recommended amendments to include participation by air districts for infrastructure development since they are key participants.
Dr. Lyou stated that if air districts are going to be added through the amendments, then consumer and environmental advocates as well as other stakeholders should also be included in the amendments.
The Legislative Committee recommended to Support SB 626 with Amendments
Recommend Principles for Improvement of Goods Movement Infrastructure & Environment [Attachment 3]
Dr. Ganguli stated that Dr. Lyou submitted several amendments to the Principles and gave a brief overview of Dr. Lyou’s amendments, which are shown in the attachment. Staff supported these clarifications and revisions which strengthen the recommended principles.
The Legislative Committee recommended to Approve the Statement of Principles for Improvement of Goods Movement Infrastructure and Environment, as amended.
Public Comments
Bill LaMarr stated that the language in SB 696 fails to mention small businesses. Mr. LaMarr stated that his organization would continue to support the bill if “small businesses” could be added in the language. Dr. Wallerstein stated that the findings should denote small business, and staff will look into the issue.
Legislative Report from AQMD Home Rule Advisory Group Committee
[Attachment 4]
Please refer to Attachment 4 for a written report.
Report on Sacramento Legislation being tracked
[Attachment 5]
Please refer to Attachment 5 for the bill report.
Dr. Lyou stated that in the next report, the bills that the Committee supports and their positions should appear first on the list.
Attachments (EXE, 413k)
- Attendance Roster
- Bill Language and AQMD Bill Analyses
- Statement of Principles Regarding Federal Goods Movement Legislation
- Legislative Report from AQMD Home Rule Advisory Group
- Report on Sacramento Legislation being tracked.