BOARD MEETING DATE: February 5, 2010
AGENDA NO. 29

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, January 15, 2010.  The next Legislative Committee meeting is scheduled for Friday, February 12, 2010 at 9:00 a.m. in Conference Room CC8.  The Committee deliberated agenda items for Board consideration.

RECOMMENDED ACTION:

Adopt Legislative Committee recommendation to approve Federal Appropriations Requests for FY 2010-11.
 

Jane Carney, Chair
Legislative Committee


Background

Attendance [Attachment 1]

The Legislative Committee met on January 15, 2010.  Committee Member Jane Carney (Chair) was present.  Committee Members Michael Antonovich, Jan Perry, Tonia Reyes Uranga and Marion Ashley attended via videoconference.

Update on Federal Legislative Issues

Mr. Chris Kierig, AQMD federal legislative consultant, reported on federal issues, stating that priority issues in Washington, D.C. include health care, a new jobs creation bill, and the FY 2011 appropriation requests which are coming due for submittal to legislative offices in the coming weeks.  AQMD focus will be on accessing these funds.

Mr. Andy Ehrlich, AQMD federal legislative consultant, reported that the health care bill is the biggest priority in Washington, D.C.  Further, he reported that the State of the Union address will occur in a couple of weeks and will address new policy directions for the Administration. 

Both Mr. Kierig and Mr. Ehrlich reported that a vote on the U.S. Senate climate change bill may occur as early as Spring 2010.  Mr. Kierig mentioned that AQMD has already weighed in heavily with Senate staff regarding this legislation.  Also, Senator Lisa Murkowski is expected to introduce legislation in an attempt to limit the U.S. EPAs ability to regulate greenhouse gases. 

Update on State Legislative Issues

Mr. Will Gonzalez, AQMD state legislative consultant, reported that AQMD is attempting to secure spot bills to address multiple AQMD legislative priorities, including:
 
1) reducing unnecessary AQMD reporting requirements;  
2) changing statutory language requirements regarding the medical member of the AQMD Hearing Board, to be consistent with the requirements imposed on other air districts; and
3) clarifying state law to allow AQMD to prepay annual contributions to its SBCERA Retirement pension to allow for substantial cost savings.  There is a possibility that these issues could be included within an omnibus bill.

In addition, he reported that AB 118 (Logue) which would have suspended implementation of AB 32, failed passage.  However this issue may be resurrected within a statewide ballot initiative.

Chair Carney requested that, due to the large number of initiatives on the ballot in 2010, the Committee be kept informed and updated on all statewide ballot initiatives that could impact air quality. 

Mr. Jason Gonsalves, AQMD state legislative consultant, reported that the Governor delivered his State of the State address and that it contained no negative impacts on the District.  Mr. Gonsalves said that Proposition 57 (Economic Recovery Bond Act), AB 32 (Nunez) California Global Warming Solutions Act of 2006, and the political dynamics of SB 375 (Steinberg) Sustainable Communities Strategy would be policy issues being revisited in Sacramento this year.  Mr. Gonsalves also reported on a nearly $20 billion state budget deficit over the next two years that will need to be addressed; however, currently the state subvention fund is unaffected.  Further, the Legislature is requesting federal funding and the Governor has called for another extraordinary legislative session.  Additionally, he reported that there is a possibility of a 5% budget cut for all state agencies which would replace the current furlough approach, as well as calling for a 5% increase in employee contributions to their pensions. 

Ms. Carolyn V. Hunter, AQMD state legislative consultant, reported on SB 827 (Wright) and AB 1318, (Perez).  She said that a meeting with the Governors office has been scheduled and she will report on that at the next committee meeting.  They are also continuing with their efforts on outreach and education amongst state legislators regarding SB 827 implementation.

Oscar Abarca, DEO, Legislative and Public Affairs, requested that AQMD consultants actively participate and monitor the development of the needs assessment called for under AB 1318, in order to maintain considerations for air quality and local decision making.

Chair Carney stated that it would be helpful to have a needs assessment study to allow for a more rational approach to future power plant planning. 

Ms. Hunter stated that she will report on CARB and the California Energy Commission plans to move forward regarding these issues.

During public comment, Greg Adams, LACSD, stated that an update with regard to CARBs plans for the need assessment study was on the agenda for next weeks Home Rule Advisory Group meeting.

Federal Appropriations Request [Attachment 2]

Dr. Matt Miyasato, Assistant DEO, Science & Technology Advancement, gave an overview of the Federal Funding Request Proposals for FY 2010-11. His presentation is attached.

Chair Carney asked if staff is preparing a report on how AQMD has been spending federal funds received in previous years.  Dr. Miyasato responded in the affirmative and stated that the AQMD reports this information to the U.S. EPA.  Chair Carney stated her preference that the report should be broader, including how the money is being spent and what the benefit is for the legislators districts.  Dr. Anupom Ganguli, Assistant DEO, Legislative and Public Affairs, stated that the report would follow the format of previous reports submitted to Senator Feinstein regarding DERA funds previously received.

Mr. Kierig stated that AQMD was seeking an authorization for Diesel Emissions Reduction Act (DERA) funds to make it a line item in the federal budget and thus a more reliable funding mechanism.

The Legislative Committee approved the Federal Appropriations Request for FY 2010-11.

Summary of the Waxman/Markey and Boxer/Kerry Climate Change Bills [Attachment 3]

Ms. Jill Whynot, Director of Strategic Initiatives/Planning, Rule Development and Area Sources, gave a summary of pending federal climate change legislation.  She stated that the Senate bill on climate change would potentially be voted on in Spring 2010.  A copy of her presentation is attached.  Dr. Ganguli stated that the goal was to include AQMD priorities within the climate change legislation. 

Mr. Ehrlich stated that conventional thinking is that the Boxer/Kerry bill is a good first step and that Senators Graham, Kerry and Lieberman have been working on possible compromise legislative language to facilitate passage of this legislation.  Sen. Reid may take the lead with regard to its legislative process, and Sen. Baucus may hold hearings regarding the climate change bill and how its allocations are distributed around the country.  The bill will likely go through significant changes over the next four to six months.  He further stated that possible access points for this legislation include Senators Boxer, Feinstein, Reid, Graham, Kerry and Leiberman.

Home Rule Advisory Group Committee Legislative Report [Attachment 4]

Please refer to Attachment 4 for a written report

Other Business:  None

Public Comments:

Mr. Greg Adams, LACSD, commented that one significant difference between the two climate change bills (Waxman/Markey and Boxer/Kerry) is that the Senate bill does not include the energy portion; the energy portion is included within a separate bill authored by Sen. Jeff Bingaman.

Attachment (EXE, 1.8m)

1.         Attendance Roster
2.         Federal Appropriations Requests
3.         Summary of the Waxman/Markey and Boxer/Kerry Climate Change Bills
4.         Report from AQMD Home Rule Advisory Committee




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