BOARD MEETING DATE: November 5, 2010 AGENDA NO. 27

BOARD MEETING DATE: November 5, 2010
AGENDA NO. 27

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held a meeting on Friday,
October 8, 2010. The next Legislative Committee meeting is scheduled for Friday, November 12, 2010 at 9:00 a.m. in Conference Room CC8. The Committee deliberated on agenda items for Board consideration and recommended the following position:

Bill/Title

Recommended Position

H.R. 6291 (Richardson) Freight FOCUS Act of 2010

Support with Amendments

RECOMMENDED ACTION:

Receive and file this report, and approve position on the bill as specified in this letter. Also, approve staff to participate in future discussions regarding SB 375 implementation with legislative representatives and other governmental agencies.

Jane Carney, Chair
Legislative Committee

Attendance [Attachment 1]

The Legislative Committee met on October 8, 2010. Committee Chair Jane Carney was present. Committee Members Jan Perry and Michael D. Antonovich were present via videoconference.

Update on Federal Legislative Issues

With regard to the Federal Clean Air Act Section 185 issue, Mr. Mark Kadesh, AQMD federal legislative consultant, reported that there continues to be good progress. Additionally, AQMD staff has been very responsive to requests for information from Congressional staff on this issue.

Regarding our appropriations requests, Mr. Chris Kierig, AQMD federal legislative consultant, explained that current funding levels are expected to be maintained through a continuing resolution in late December or early next year.

Mr. Andrew Wheeler, AQMD federal legislative consultant, reported that they continue to work with Congressman Waxman regarding the Section 185 issue. He added that they are also working to communicate to members of Congress the favorable U.S. EPA decision that dismissed NRDC’s petition regarding the use of New Source Review offsets. Mr. Wheeler also reported that they continue to work with AQMD staff to identify bills that will be important to AQMD for next year’s legislative strategy.

Recommend Position on the following Federal Bills [Attachment 2]

Henry Hogo, Assistant DEO, briefed the Committee on the following federal legislation:

H.R. 6291 (Richardson) Freight FOCUS Act of 2010

Mr. Hogo, explained that this bill, which addresses similar policy areas as S. 3629 (Lautenberg), will establish a national process for freight planning and prioritization of funding. This bill establishes a transportation Trust Fund, which will be used for funding eligible projects focused on improving goods movement, based on specified merits. The Trust Fund would be funded in part by a twelve cent increase in the diesel tax paid by trucks. Staff’s proposed amendments include suggestions to include air quality and health related impacts and costs, allow local air pollution control agencies to provide input, and prioritize projects involving “zero or near-zero emissions technology”.

Staff recommends a position of SUPPORT WITH AMENDMENTS.

The Legislative Committee approved staff’s recommendation to Support H.R. 6291 with Amendments.

Anupom Ganguli, Assistant DEO/Public Advisor, briefed the Committee on the following federal legislation:

S. 3072/H.R. 4753 (Rockerfeller/Rahall) Stationary Source Regulations Delay Act

Dr. Ganguli reported that these two identical companion bills would suspend, for a two- year period, any U.S. EPA action for greenhouse gas (GHG) regulations under the Clean Air Act with respect to carbon dioxide or methane, except for motor vehicle emissions and reports or enforcement of reporting requirements. Since this is contrary to AQMD’s past policies and Board actions, staff recommended an Oppose position.

Dr. Wallerstein added that the U.S. EPA was very responsive to comments made by AQMD and other agencies regarding the phasing in of GHG requirements for stationary sources, and that there were co-benefits for air pollution reduction from such actions.

Chair Jane Carney stated that she would like to hear public testimony on AQMD’s proposed rule regarding this subject in the future, and suggested a delay in taking this item up. The Legislative Committee directed staff to bring this issue back at its November meeting.

Update on Sacramento Legislative Issues

Mr. Paul Gonsalves, AQMD state legislative consultant, reported that a budget for the state of California had just been adopted. Additional information will be available in the near future. Mr. Gonsalves added that pension reform was also passed which impacts new state employees hired on or after November 10, 2010.

Ms. Carolyn V. Hunter, AQMD state legislative consultant, reported that they have been monitoring bills that were moved to the Governor’s desk. Ms. Hunter added that there has been some movement regarding the process relating to AB 1318 and the needs analysis, including several internal meetings between California Air Resources Board (CARB) and California Energy Commission. Discussions are underway about possibly holding a public workshop at AQMD within the next month or so.

Discussion on SB 375 implementation

Dr. Barry Wallerstein, AQMD Executive Officer, reported on SB 375 implementation. Dr. Wallerstein reminded the committee that the intent of the bill was to reduce GHG emissions. At their last meeting, CARB established regional GHG emission reduction targets, on a per capita basis. However, the SCAG Regional Council had asked CARB to establish lower targets than were proposed. For 2020, SCAG asked for a 6% decrease and for 2035, an 8% decrease, as a target. However, CARB adopted an 8% decrease for 2020 and a 13% decrease for 2035, as a target. An agreement was reached to have an update in February 2011 to revisit the 13% target to see if it needs to be modified based on additional analyses. SCAG is required to submit a sustainable communities plan directed at achieving these targets. Dr. Wallerstein added that part of the rationale from SCAG in asking to establish lower targets are decreases in funding.

Dr. Wallerstein requested that the committee allow AQMD staff to participate in future discussions on implementation, including funding with legislative representatives and other governmental agencies in order to protect AQMD’s policy priorities.

The Legislative Committee approved AQMD staff to participate in future discussions regarding SB 375 implementation with legislative representatives and other governmental agencies.

Governor’s Final Actions on Bills Passed by the Legislature. [Attachment 3]