BOARD MEETING DATE: June 4, 2010
AGENDA NO. 26
PROPOSAL:
Legislative Committee
SYNOPSIS:
The Legislative Committee held a special meeting on Friday,
May 14, 2010. The next Legislative Committee meeting is scheduled for Friday, June 11, 2010 at 9:00 a.m. in Conference Room CC8. The Committee deliberated on agenda items for Board consideration and recommended the following positions:
occupancy vehicles: sunset date
RECOMMENDED ACTIONS:
Receive, file this report, and approve positions on the bills as specified in this letter.
Jane Carney, Chair
Legislative Committee
Attendance [Attachment 1]
The Legislative Committee met on May 14, 2010. Committee Chair Jane Carney was present. Committee Members Michael Antonovich and Marion Ashley were present via videoconference.
Update on Federal Legislative Issues
Mr. Chris Kierig, AQMD federal legislative consultant, reported that there were some significant developments in Washington, D.C. in terms of climate change legislation. Senators Kerry and Lieberman will be moving their climate change bill forward without Senator Graham. The Kerry-Lieberman bill mirrors the Waxman-Markey bill in many respects. It does in fact preempt some state laws. Mr. Kierig reported that the tailoring rule was also released by the U.S. EPA, which implements a permitting program for greenhouse gas (GHG) emissions reductions from stationary sources. U.S. EPA estimates that nearly 70 percent of GHG emissions from stationary sources would fall within the permitting program.
Mr. Kierig reported that marine vessel policy discussions are continuing between the Senate Environmental Public Works Committee and the U.S. EPA. Issues remain that need to be worked out. In addition, Mr. Kierig reported that regarding appropriations, both Senators Feinstein and Boxer have now submitted AQMD’s request to continue our DERA program in the FY 2011 bill. It remains to be seen if there is actually going to be a FY 2011 bill, but if there is, our request will be considered seriously.
Andrew Wheeler, AQMD federal legislative consultant, reported that as part of the climate change legislation, facilities covered by the Kerry-Lieberman bill will not be subject to the Clean Air Act requirements. The bill targets only the largest facilities in the country. On the state side, the bill preempts state law and prevents states from instituting a cap-and-trade program, which would be a major concern for California. The bill does, however, have a provision to reimburse states for costs that they would have incurred or costs that were anticipated for implementing such a program.
The tailoring rule changes will complicate the issue as to which facilities will be covered between the tailoring rule, the EPA regulations and the climate legislation. U.S. EPA will increase the emissions threshold from 25,000 tons per year to as much as 100,000 tons per year for existing facilities and 75,000 tons per year for new facilities. This will greatly diminish the number of facilities that will have to comply with U.S. EPA regulations. Mr. Wheeler also reported that staff is investigating the options to address the Section 185 fees.
Dr. Barry Wallerstein recommended that staff provide a full briefing on the Kerry- Lieberman bill and how it compares with the Waxman-Markey bill at the next committee meeting.
Update on State Legislative Issues
Mr. Will Gonzalez, AQMD state legislative consultant, provided an update on the following legislation:
SB 1479 contains language that would allow the District to prepay its retirement contribution to San Bernardino County Employees Retirement Association (SBCERA). This bill has cleared the Senate and will likely move forward without opposition.
AB 1740 (Jeffries) exempts specialty cars from smog checks and other emission requirements. AB 1740 has been amended and it now proposes a narrower exemption. It is being referred to the Senate Transportation Committee.
AB 2289 (Eng) among other things, authorizes smog check stations to use computerized onboard diagnostic systems for new vehicles rather than utilizing the traditional smog check. The bill is currently on the suspense file in appropriations, but is an administration priority.
The Governor and Senate leadership are in negotiations regarding the Renewable Portfolio Standard. The Governor has relented in his opposition to labor friendly provisions and has agreed that at least 50% of renewable energy should be produced in California. However, there is currently no conceptual agreement, and drafting language will be difficult because of constitutional issues.
Mr. Gonzalez reported that over 800,000 petition signatures supporting the temporary suspension of AB 32 were submitted to qualify the measure for the 2010 November ballot.
Mr. Chris Flaig from the City of Los Angeles asked if staff is aware that the California Public Utility Commission (CPUC) voted to stay the tradable renewable energy credits (TREC) decision.
Mr. Gonzalez stated that the CPUC is waiving this issue, which is essentially a mechanism for bringing renewable generation from out of state. The CPUC has been helping utilities use those credits to comply and has recently issued a decision that severely limits the amount of out of state TREC that would be allowable for the current 20% RPS requirement. That decision caused a huge reaction by renewable energy developers and the Governor. However, the CPUC has stayed the decision and will revisit the issue in collaboration with the California Energy Commission.
Mr. Paul Gonsalves, AQMD state legislative consultant, provided an update on the following legislation:
SB 1433 (Leno) requires the Air Resources Board, on March 1, 2011, and annually thereafter, to adjust the maximum civil and criminal penalties for inflation for non-vehicular pollution violations and to publish the inflation-adjusted maximum penalties on the internet. This bill will most likely be taken to the floor next week.
SB 1299 (Lowenthal) regarding vehicles miles traveled (VMT) fee is currently on the appropriations suspense file. If the bill does not move off the suspense file, it may become a budget item.
SB 908 (Wyland) exempts employers in the armored car industry from meal and rest period requirements. The bill was set to be heard on April 28, 2010, but the hearing was canceled by the author and the bill is not expected to move.
AB 1863 (Gaines) extends until January 1, 2016, existing provisions related to testing of diesel back-up generators in hospitals. This bill passed the assembly floor on April 22, 2010 and is now set to be heard in the Senate Environmental Quality and Senate Health Committees.
ACR 109 (Nestande) is a resolution that names a portion of State Highway Route 74 in Riverside County as the Roy Wilson Memorial Highway. This bill will be amended to reflect Supervisor Wilson’s service to the AQMD.
Mr. Gonsalves reported that the Governor’s May budget revision was scheduled to be released on May 14, 2010, with a deficit of approximately $20 billion. Mr. Gonsalves informed the Committee that Speaker Perez and Senate President Pro-Tem Steinberg just returned from Washington D.C., after lobbying for funds to assist with the State’s budget deficit. Mr. Gonsalves reported that their trip to Washington D.C. generated 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, and concluded stating that the Governor dropped his T-Ridge oil drilling project.
Ms. Carolyn Veal Hunter, AQMD state legislative consultant, provided an update on the following legislation:
AB 2037 (M. Perez) regarding power generation issues is currently in the Senate Rules Committee and is expected to move without opposition.
SB 1033 (Wright) is a greenhouse gas cap-and-trade bill and staff will continue to work with Senator Wright’s office to incorporate AQMD’s suggested language.
SB 1224 (Wright) is a bill on odors and enforcement. Senator Wright did not accept the amendments offered by the District. Ms. Nancy Feldman, AQMD Acting Chief Prosecutor attended the Senate Environmental Quality Committee hearing and answered questions from the Committee.
Update on efforts by the Governor and others to reform the public employee retirement system and consideration of requests on behalf of AQMD
[No written material]
Dr. Anupom Ganguli, Assistant DEO, Legislative & Public Affairs, reported that due to a number of factors, the pension issue has become a priority in Sacramento.
Dr. Ganguli stated that there are three bills in the legislature to address pension issues. The first bill is SB 919 (Hollingsworth) which applies to state employees only and seeks to realign public employee pension benefits closer to that of the private sector. In addition, SB 1425 (Simitian) and AB 1987 (Ma) strengthen the anti-spiking provisions to prevent unusual compensation increases from impacting retirement benefits for public sector employees.
Mr. Gonsalves added that SB 1425 (Simitian) and AB 1987 (Ma) are double joined together and both bills would need to pass in order to take effect.
Chair Carney asked if SB 919 (Hollingsworth) and the incorporation of the concepts in the Governor’s budget would only affect state employees, and Mr. Gonsalves affirmed this.
Mr. Mike O’Kelly, Chief Financial Officer, reiterated that the bills do not apply to the county employee retirement fund, and only apply to state employees. He stated that for AQMD to move forward with any true pension reform, it would require legislation to change the county employee retirement law. Chair Carney stated that this would leave the decision- making up to the County of San Bernardino, and asked if AQMD wanted to sponsor legislation that would provide flexibility that we do not have today, and what would it look like. Mr. O’Kelly responded that it would need to be legislation that mirrored what some other counties have done with a two-tier system, but it would need to be specific to districts within a specific county retirement system.
Dr. Wallerstein stated that for the long term stability of the agency, he would recommend that the District should seek legislative authority to move to a two-tiered system. The two-tiered system would require new employees that are hired to have a potentially different benefit structure.
Chair Carney asked if there will be an updated report at the next committee meeting, which Dr. Wallerstein affirmed.
Recommend Position on State Bills
[Attachment 2]
Dr. Ganguli briefed the Committee on the following state legislation:
AB 1500 (Lieu) High-occupancy lanes: single occupancy vehicles: sunset date
This bill allows vehicles with white stickers issued by the Department of Motor Vehicles (DMV) continued access to the HOV lanes until January 1, 2014. To have qualified for the white stickers, the vehicles must be ultra-low or super ultra-low emission vehicles that also meet the federal inherently low-emission vehicle standards for evaporative emissions. Absent this legislation, the “white sticker” program would sunset on January 1, 2011.
Staff recommends a support position for this bill because access to HOV lanes by single-occupancy vehicles that meet the federal ILEV standard is an effective way to encourage the purchase and lease of low-polluting alternative fuel vehicles. In addition, staff also recommends amendments to allow HOV lane access for plug-in hybrid vehicles to encourage their deployment and market acceptance.
The Legislative Committee approved staff’s recommendation to Support AB 1500 with amendments
AB 2313 (Buchanan) Greenhouse gas: emissions: significant effects
This bill sets CEQA significance thresholds on a statewide basis, consistent with current AQMD working group efforts to establish significance thresholds for land use (residential, commercial) projects. Presently, there are no statewide standards. Staff recommends a support position.
Dr. Wallerstein stated that he wanted to clarify that a single statewide threshold is the appropriate thing to do, although there is a risk that the state could set a very high threshold which means that there would be negligible mitigation of GHG emissions. However, due to the nature of GHG emissions staff believes that a single state threshold would be appropriate.
The Legislative Committee took no position on AB 2313
AB 2514 (Skinner) Energy Storage Systems
This bill requires that procurement targets be established for “viable and cost-effective” energy storage systems for each investor-owned utility (IOU) and each publicly-owned utility (POU) for the years 2015 and 2020. Staff recommends a support position in the interest of clean air and renewable energy. The bill has a full list of support from various environmental groups; however, there is opposition from utility companies and their affiliated labor groups.
Chair Carney asked if this is about building facilities to store energy. Dr. Ganguli stated that such systems were needed to store energy in order to supply electricity when the renewable power source is not available, such as at night (solar) or under calm wind conditions (wind), etc.
The Legislative Committee approved staff’s recommendation to Support AB 2514.
SB 1156 (Cedillo) Heavy-duty trucks: grants: compliance
This bill appropriates $10 million from the Air Quality Improvement Program fund to the state Air Resources Board (CARB) for purposes of providing grants to on-road heavy-duty diesel truck owners for the purchase of equipment for compliance with emission reduction regulations.
AQMD has generally been opposed to “paying for compliance”; however, the amount involved is limited and the magnitude of the current economic downturn has been exceptional. Consequently, staff recommends that, in this instance, AQMD should support regulatory compliance via grant money and support this legislation in the interest of cleaner air sooner, rather than later.
Nicole Nishimura, Dr. Lyou’s board assistant, stated that Dr. Lyou asked about the reason for SB 1156. Dr. Lyou also speculated that maybe the regulation has become so stringent that grants are no longer viable for people who want to go above and beyond compliance, and they simply need the money to meet the requirements. Dr. Wallerstein stated that the main policy issue is that when the Carl Moyer program was originally crafted it was not intended to pay for compliance. This approach helps with compliance, but given the state of the economy and the fact that CARB is contemplating rolling back diesel emission reduction regulations, we would rather see an easing in of the regulations through mechanisms such as this, especially for small business operators.
The Legislative Committee approved staff’s recommendation to Support SB 1156.
SB 1224 (Wright) Air discharges
Concerned that state law does not provide guidance on how odor complaints are to be processed by the different air districts, and to address the issue of “vexatious complaints,” Senator Wright introduced SB 1224. This bill would authorize air districts to adopt rules or regulations that, consistent with protecting the public, ensure that district staff and resources are not used to investigate complaints of nuisance odors that are determined to be repeated and unsubstantiated. Those districts that do adopt rules or regulations pursuant to this bill, must report the rule or regulation within 30 days of adopting it to the Senate Committee on Environmental Quality and the Assembly Committee on Natural Resources.
AQMD staff worked with the Senator’s office and provided language based on our District’s protocols. After discussions, Senator Wright and the Committee opted for alternative language that allows for the maximum flexibility for each air district to determine its own guidelines. The bill does not mandate that any action be taken by the air districts, but it spurs all air districts to take a closer look at this issue, in light of the guidance suggested.
Ms. Nishimura asked if air districts are currently mandated to respond to complaints that are repeated and unsubstantiated. Ms. Feldman stated that there is no mandate that directs any air district to respond to repeat or unsubstantiated complaints.
The Legislative Committee approved staff’s recommendation to Support SB 1224
Home Rule Advisory Group Committee Legislative Report
[Attachment 3]
Please refer to Attachment 3 for a written report.
Other Business: None
Public Comments: None
Attachment (EXE 715kb)
Attendance Roster
State Bill Language and AQMD Bill Analyses
Report from AQMD Home Rule Advisory Committee