BOARD MEETING DATE: March 5, 2010
AGENDA NO. 32

REPORT:

Legislative Committee

SYNOPSIS:

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

Bill/Title
Recommended Position
SBX8 37 (Cedillo & Pavley): Carl Moyer Memorial Air Quality: Standards Attainment Program: Air Quality Improvement Fund.
Support with Amendments
AB 846 (Torrico): State Agencies: Civil and Administrative Penalties
Watch

RECOMMENDED ACTION:

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 February 12, 2010. Committee Chair Jane Carney was present. Committee Members Michael Antonovich, Jan Perry, and Marion Ashley attended via videoconference.

Update on Federal Legislative Issues

Mr. Mark Kadesh, AQMD federal legislative consultant, reported that AQMD staff held meetings regarding federal appropriation requests with the offices of Congress Member Lucille Roybal-Allard and Senator Dianne Feinstein.

Andy Ehrlich, AQMD federal legislative consultant, also reported on AQMD staff’s visit to Washington, D.C. and reported that in spite of the weather constraints, several meetings were held with congressional members and/or their staff regarding AQMD’s priorities. A meeting was also held with the U.S. EPA.

Chair Carney commented that the schedule as planned was extensive and busy, but due to the weather constraints she was unable to attend. However, she thanked the AQMD consultants for their efforts.  

Update on State Legislative Issues

Mr. Will Gonzalez, AQMD state legislative consultant, reported on SBX8 37 (introduced by Senators Cedillo and Pavley). The legislation would eliminate cost effectiveness requirements under the Carl Moyer program for the remainder of 2010 and would appropriate $10 million from AB 118 funding to CARB to facilitate diesel truck owners’ compliance with the on-road truck diesel rule. He said that the diesel rule is under pressure from truckers who are suffering due to the weak economy, and believes that they are trying to provide some assistance to keep the rule intact.

Dr. Barry Wallerstein, Executive Officer, asked Mr. Gonzalez if AQMD needed to take a position on SBX8 37 at the meeting. Will Gonzalez, responded that it may be necessary to respond soon since the legislation is moving quickly.

Chair Jane Carney requested that this item be placed on the agenda as an urgency item, and a motion was made and duly passed to add SBX8 37 as an urgency item to the agenda.  

Urgency Item - SBX8 37 (Cedillo & Pavley)

[Attachment 2]

Dr. Wallerstein indicated that CARB has two major regulations for reducing diesel emissions taking effect in the near future.  One is the off-road engine rule for construction equipment and similar categories, and the other is the on-road truck regulation.  Dr. Wallerstein stated that the purpose of this legislation is to ease the implementation of those rules, during this time of recession.  CARB is contemplating possible regulatory relief for at least one of the two rules, if not both.  This legislation would address some technical problems that might occur in providing funding during this interim period. 

Dr. Wallerstein stated that staff believes that having these funds available is the only way to stay on track to realizing the emission reductions from the affected vehicle categories.  In contrast, if CARB delayed implementation of their regulation until 2014, then there would only be one year to catch up with emission reductions to meet the AQMP targets for 2015. 

Dr. Wallerstein further stated that staff recommends a position of support with amendments, and requests that the committee give staff some flexibility to figure out an appropriate way to suggest language for this legislation.  AQMD staff will work with the other air districts to try and work out clarifications as to appropriate legislative language that preserves the intent of the legislation, but distributes the funds in an equitable manner, with maximum air quality benefits.    

As part of public comments, Greg Adams of the LACSD asked if this bill would affect Rule 317 and Dr. Wallerstein responded that it wouldn’t likely have an effect.

The Legislative Committee recommended a position of Support with Amendments and to allow staff to work with other air districts and the author for clarifications. 

Continuation of Update on State Legislative issues

Mr. Gonzalez gave a brief update on the following state initiatives that qualified for the June 2010 ballot:

Proposition 14, Elections: open primaries.

Proposition 15, Political Reform Act of 1974: California Fair Elections Act of 2008.

Proposition 16, New Two-Thirds Requirement for Local Public Electricity Providers.

Proposition 13, Seismic Retrofitting.

Proposition 17, Auto Insurance Rate.

He also spoke briefly about the Safe, Clean, and Reliable Drinking Water Supply Act of 2010, a water bond initiative that qualified for the November ballot. In addition, he stated that an initiative that would have suspended implementation of AB 32 has failed to go on the ballot.

Supervisor Marion Ashley asked what position the bond issue would have on the ballot. Mr. Gonzalez responded that at this time, he did not know because the June ballot was not finalized. 

Mr. Jason Gonsalves, AQMD state legislative consultant, reported on the state budget. Mr. Gonsalves stated that the Conference Committee Hearings have been postponed. He reported that Senator Abel Maldonado is the Governor’s choice to fill the vacated Lieutenant Governor’s seat.

Mr. Gonsalves stated that he has met with CARB staff regarding Proposition 1B Air Quality Funds and focused on getting money from the funds to be appropriated and spent in this budget cycle.

Lastly, Mr. Gonsalves reported that the state revenue is up $1.2 to $1.3 billion from last year.

Ms. Carolyn V. Hunter, AQMD state legislative consultant, reported that their legislative efforts have continued to focus on educating legislative members and staff on the offsets issue.

Ms. Hunter reported that in December 2009, the California Energy Commission (CEC) issued its 2009 Integrated Energy Policy Report (IEPR). The report describes the second biggest issue affecting the electricity sector to be the scarcity of emissions credits for new power plants. The report is over 250 pages. Ms. Carney requested that an executive summary be sent to AQMD Governing Board members.

Recommended Position on the Following Federal Bill

[Attachment 3]

Ms. Jill Whynot, Director of Strategic Initiatives, Planning, Rule Development and Area Sources, gave an informational presentation on S 2995 – National Uniform Multiple Air Pollutant Regulatory Program for the Electric Generating Sector (“Clean Air Act Amendments of 2010”). (A copy of her presentation is attached).

Ms. Whynot stated that this legislation was introduced ten (10) days earlier. Dr. Wallerstein stated that it is coming forth as a bipartisan measure with Senator Lamar Alexander from Tennessee being the principal person that Senator Carper is working with. 

Recommend Position on State Bills

[Attachment 4]

Dr. Anupom Ganguli, Assistant DEO, Legislative & Public Affairs, briefed the Committee on the following state legislation:

AB 846 (Torrico) State Agencies: Civil and Administrative Penalties

This bill intends to ensure that there is no economic incentive to pollute the environment. It requires specified state agencies as well as the local air districts to charge the maximum fine or make express findings that no economic benefit was derived by the violator for the violation. Dr. Ganguli stated that the bill may be problematic for AQMD as it significantly limits an agency’s or district’s discretion.

Dr. Wallerstein stated that Governing Board Member Joseph Lyou felt that it would be advantageous for the committee members to be provided with an updated listing of the supporters and opponents of AB 846 in their deliberations.

Mr. William Sanchez, Senior Manager, Legislative & Public Affairs, read the following list of additional supporters and those in opposition, as an update to the previous list mailed to the Committee:

Additional supporters: National Resources Defense Council (sponsor), Breathe California, California Association of Environmental Health Administrators, California Labor Federation, California League of Conservation Voters, Clean Water Action, Community Water Center, Green California, Heal the Bay, Natural Resources Defense Council, Planning and Conservation League, San Francisco Baykeeper, and the Sierra Club California.

Additional opposition: California Chamber of Commerce, American Council of Engineering Companies of California, Apartment Association of Greater Los Angeles, Associated General Contractors of California, California Association of Joint Powers Authorities, California Apartment Association, California Business Properties Association, California Building Industry Association, California Chapter of the American Fence Contractors' Association, California Construction and Industrial Materials Association, California Fence Contractors' Association, California Grocers Association, California Hotel and Lodging Association, California Independent Grocers Association, California Independent Oil Marketers Association, California Manufacturers and Technology Association, California Professional Association of Specialty Contractors, California Restaurant Association, California Retailers Association, Engineering Contractors' Association, Flasher/Barricade Association, Independent Waste Oil Collectors and Transporters, Marin Builders' Association, Santa Barbara Rental Property Association, Santa Barbara Technology and Industry Association, Western Electrical Contractors Association, and Western Growers.

Dr. Wallerstein said staff is recommending a watch position on AB 846.

The Legislative Committee moved a Watch position for AB 846.

AB 1686 (Jeffries) South Coast District: Diesel Generators: Communication Facilities

This bill would prohibit AQMD from enforcing its rules and regulations with respect to diesel-powered generators that would provide either primary or back-up electricity to three communication sites in Riverside County (Santa Rosa Peak, Sunnyslope and Glen Avon sites). Dr. Ganguli stated that this bill is problematic for AQMD since it removes AQMD’s regulatory authority, and staff recommends a position of oppose unless amended and for staff to work with the author to resolve the underlying concerns.

Dr. Wallerstein stated that staff has met with the author’s staff, and that his understanding of the bill is that if there were to be a fire or other emergency, there would be a need to keep the communications towers operating, and thus adequate backup power would be needed for the towers. Dr. Wallerstein stated that it has been a long policy of AQMD to allow for the operation of essential public services during fires and natural disasters. Staff intends to meet with the Assembly member and interested parties to determine what is necessary to ensure such continued operation in case of emergencies, including a possible rule amendment.

Supervisor Ashley mentioned that this is an important issue for the Riverside County and urged staff to work out the perceived differences, so that emergency operations are not impeded.

Jason Gonsalves stated that the bill needs to be in print for 30 days, and it would not be heard until February 26 and there is sufficient time for staff to meet with the author and other interested parties.

Dr. Wallerstein recommended that this item be withdrawn, and if needed, a special legislative committee meeting could be convened to consider it at a later time. The Legislative Committee moved to withdraw this bill from current consideration. 

SB 518 (Lowenthal) Vehicles: Parking Services and Fees.

This bill strives to reduce traffic congestion, greenhouse gas emissions, and public costs by creating incentives for local governments to implement policies that reveal the actual cost of parking and reduce governmental or governmental-required subsidies of parking.

Dr. Ganguli stated that there are many areas of concern regarding SB 518, and that it is poorly structured and staff recommends working with the author to seek amendments. Chair Carney asked if the bill only affected government employees. Ms. Baird responded that it did not. Supervisor Antonovich stated that he was opposed to the content of the legislation as it puts additional burdens on state and local governments who are already struggling. Mr. Jason Gonzalves stated that he met with the author and he believes that the bill will be changing significantly and has drawn significant criticism.

After a brief discussion, the Committee decided to consider the bill at a later date.

The Legislative Committee moved to withdraw this bill from current consideration. 

 

Home Rule Advisory Group Committee Legislative Report

[Attachment 5]

Please refer to Attachment 5 for a written report

Other Business: None 

Public Comments: None 

Attachment (EXE, 798k)

  1. Attendance Roster

  2. Urgency Item - SBX8 37 (Cedillo & Pavley)

  3. Presentation on S 2995

  4. Bill Language and AQMD Bill Analyses

  5. Report from AQMD Home Rule Advisory Committee




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