BOARD MEETING DATE: July 9, 2010
AGENDA NO. 32
REPORT:
Legislative Committee
SYNOPSIS:
The Legislative Committee held its regular meeting on Friday, June 11, 2010. The next Legislative Committee meeting is scheduled for Friday, July 16, 2010 at 9:00 a.m. in Conference Room CC8. Less than a quorum was present; the Committee Members present expressed their concurrence and forwarded these items to the Board for approval.
* This reflects the concurrence of those committee members who were present.
RECOMMENDED ACTIONS:
Receive, file this report, and approve positions and language on the bills as specified in this letter.
Jane Carney, Chair
Legislative Committee
Attendance [Attachment 1]
The Legislative Committee met on June 11, 2010. Committee Chair Jane Carney was present. Committee Member Marion Ashley was present via videoconference.
Update on Federal Legislative Issues
Mr. Mark Kadesh, AQMD federal legislative consultant, reported that they have been in discussions with Senators and Committee staff to explain the problems with Section 185. Mr. Kadesh reported they have been extremely receptive and would like to work with staff on addressing the problem. He also reported that the EPW Committee has been pursuing EPA for marine vessels emissions reductions, and would now like to schedule an in-person meeting with senior staff at EPA. Mr. Kadesh will follow up with AQMD staff to discuss options.
Mr. Chris Kierig, AQMD federal legislative consultant, stated that today the Legislative Committee will consider language relating to Senator Boxer’s air quality empowerment legislation and that the EPW Committee staff is willing to work with AQMD to amend the bill. Mr. Kierig reported that in regards to appropriations, AQMD received $5 million for FY 2010 and he anticipates the allotment of another $5 million for FY 2011 for the DERA program. Mr. Kierig reported there is a general lack of clarity regarding if appropriation requests are going to move forward this year.
Mr. Andy Ehrlich, AQMD federal legislation consultant, reported that staff worked with Congresswoman Richardson to propose legislative amendments to her CLEAN ports bill. Mr. Ehrlich also reported that AQMD’s feedback and concerns regarding Senator Carper’s bill were shared with the author’s office. He also reported that they are working on the Section 185 issue on the House side. Mr. Ehrlich stated that the Murkowski resolution which would have overturned the EPA’s endangerment finding regarding GHGs, failed 47 – 53 in the Senate, with both California Senators in opposition. Mr. Ehrlich further added that he is expecting a legislative energy and climate debate in June or July.
Chair Jane Carney asked about the likelihood that climate change legislation be passed this year. Mr. Ehrlich responded that he thought it was unlikely to happen by ‘election day’. Mr. Kadesh stated that he agreed and that Congress may just address the utility/power sector.
Update on State Legislative Issues
Mr. Will Gonzalez, AQMD state legislative consultant, provided an update on the renewable portfolio standards and reported that SB 722 is not likely to move until the end of session. There is a new proposal on the table that would resolve the in-state vs. out-of-state power development debate. The new proposal would apply a loading order which would prioritize renewable power that has the most important attributes for California.
Mr. Jason Gonsalves, AQMD state legislative consultant, provided a brief update on the budget, stating that the Governor has issued the May revise with a deficit of approximately $20 billion. Shortly, thereafter, the Senate President Pro-tem Steinberg proposed a budget plan calling for a series of tax increases and in less than 24 hours the Speaker of the Assembly released his own budget proposal. Mr. Gonsalves further reported that the State Controller issued a letter to the Governor and the legislative leadership stating that the state can pay its bills through August and would not have to issue IOU’s until October. The Governor has reiterated his position that he will not sign a budget without pension reform.
Mr. Gonsalves informed the Committee that Speaker Perez and President Pro-tem Steinberg just returned from Washington D.C., after lobbying for funding, and receiving commitments for approximately $3 to $4 billion from the federal government to assist with the state’s budget deficit. He also reported that tax revenues were up at the beginning of the year, but have decreased in the past month.
Ms. Carolyn Veal Hunter, AQMD state legislative consultant, reported that there still have not been any public meetings regarding the implementation of SB 1318 and the needs assessment study. Ms. Hunter reported that all of the meetings have been behind the scenes and the goal is still to issue some type of documentation in mid-July. She further stated that staff is continuing to work with Senator Wright’s office on SB 1033 (Wright). Ms. Carney requested that staff and board members receive a copy of the report regarding SB 1318 when it is released in mid-July, which Ms. Hunter affirmed.
Update on Federal Legislation Regarding Non-Attainment Areas
[Attachment 3]
Dr. Anupom Ganguli, Assistant DEO, Legislative & Public Affairs, gave an update on S. 3373 introduced by Senator Boxer and its identical companion bill in the House, H.R. 5296 introduced by Congressman McNerney (of the Central Valley).
Staff has proposed language for the Committee’s approval which will include criteria for inclusion of the South Coast region in the bill and increase the total funding from $20 million to $40 million for ‘qualifying areas’. Staff requested the Committee’s approval of the proposed legislative language so that it can be shared with the authors.
Chair Carney asked if the strategic plan would be drawn from the current AQMP, which was confirmed by staff.
The Committee concurred with staff’s recommendation for the legislative amendment language regarding non-attainment areas.
Proposal for District to Introduce Legislation Regarding Intellectual Property Rights
[Attachment 4]
Mr. Oscar Abarca, DEO, Legislative & Public Affairs, presented the proposal which would allow AQMD to share in revenues generated by intellectual properties developed with AQMD funds. Most recently the Board has expressed interest in expending some of those funds, if successfully obtained, to further reduce air pollution, or prevent, mitigate, or cure the adverse health effects of air pollution. Staff requested the Committee’s approval of the legislative language in order to start the process to implement this proposal.
The Committee concurred with staff’s recommendation to introduce legislation regarding intellectual property rights.
Status Update on State Legislation on AQMD’s Retirement System Reforms
Mr. Gonzalez reported that SB 1479, which would allow AQMD to prepay retirement contributions, with considerable savings, is moving and is currently in the Assembly Committee on Public Employment and Retirement. Mr. Gonzalez stated that as to a broader pension discussion, there are three pension bills pending in the legislature. Two of those pension bills are fairly narrow dealing with pension spiking. SB 919 (Hollingsworth) which addresses the broad state employee pension reform issue is not moving in the legislature. Mr. Gonzalez noted that SB 919 is a state employee reform bill and would likely not affect AQMD. He further added that the Governor has made it very clear that he will not sign any budget without pension reform.
Ms. Carney asked if the Governor has indicated what elements of pension reform he views as critical. Mr. Gonzalez reported that SB 919 focuses more on formulas and the retirement ages of public safety employees, but he does not know the Governor’s focus.
Status Update on State Legislation Previously Considered by the Legislative Committee [Attachment 5]
Mr. Gonzalez reported that SB 1156 (Padilla) was previously stalled, but is now moving forward and scheduled to be heard in the Senate Transportation & Housing Committee next week. Mr. Abarca reported that staff will be holding a conference call with the sponsor of SB 1033 (Wright) to address concerns regarding SB 1033 prohibiting AQMD from engaging in greenhouse gas emission reduction efforts.
Update on Federal Climate Change Legislation and the U.S. E.P.A.’s proposed tailoring rule [Refer to Attachment 2 for additional information]
Ms. Jill Whynot, Director of Strategic Initiatives, gave an update on federal climate change legislation entitled the “American Power Act”.
Ms. Carney asked if Ms. Whynot had a sense of the rigor of the science behind the proposals, what type of technology is used to reduce emissions, and how are industries selected to participate. Ms. Whynot stated that the process is largely political, but there is also a lot of technical input in these decisions.
Ms. Carney asked about the Natural Resources Adaptation plan, and Ms. Whynot stated that it is similar to the adaptation plan California adopted which addresses the impacts of global warming.
Nicole Nishimura, Dr. Joseph Lyou’s board assistant, stated that Dr. Lyou had a question about the revenues to assist disproportionately impacted individuals in the legislation. Dr. Lyou wanted to know if there are any other environmental justice protections and/or any anti-backsliding provisions. Ms. Whynot stated that she did not see any such provisions. There are studies to look at the effects of climate change, but she did not see any specific language addressing environmental justice.
Ms. Carney asked what would be considered “disproportionately impacted individuals”. Ms. Whynot stated it generally refers to individuals with lower income.
Ms. Carney stated that Barbara Baird’s presentation on the U.S. E.P.A.’s proposed tailoring rule would be presented at the next Committee meeting.
Home Rule Advisory Group Committee Legislative Report
[Attachment 6]
Please refer to Attachment 6 for a written report.
Other Business: None
Public Comments:
Mr. Chris Flaig from the City of Los Angeles expressed his concerns about S. 3381 and its definition of biomass. Mr. Flaig stated that he would like to see language in this bill that would incorporate biosolvents, biomass, biogas or biogenics. Mr. Flaig commented that it would be difficult to maximize our renewable resources if the definition of biomass is limited to a very small spectrum.
Ms. Carney asked if lobbyists from the City of Los Angeles are working on this. Mr. Flaig stated he did not know, but he would be finding out shortly. Ms. Carney asked staff to research this bill and find out if it relates to air quality.
Attachments (EXE, 1M)
Attendance Roster
Update on Federal Climate Change Legislation and the U.S. EPA’s proposed Tailoring Rule
Update on Federal Legislation Regarding Non-Attainment Areas
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Proposal for District to Introduce Legislation Regarding Intellectual Property Rights
Status Update on State Legislation Previously Considered by the Legislative Committee
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Report from AQMD Home Rule Advisory Committee