BOARD MEETING DATE: October 1, 2010
AGENDA NO. 29
REPORT:
Legislative Committee
SYNOPSIS:
The Legislative Committee held a meeting on Friday, September 17, 2010. The next Legislative Committee meeting is scheduled for Friday, October 8, 2010 at 9:00 a.m. in Conference Room CC8. The Committee deliberated on agenda items for Board consideration and recommended the following positions:
This reflects the concurrence of those committee members present.
RECOMMENDED ACTION:
Receive and file this report, and approve positions on the bills as specified in this letter.
Jane Carney, Chair
Legislative Committee
Background
Attendance [Attachment 1]
The Legislative Committee met on September 17, 2010. Committee Chair Jane Carney was present. Committee Member Jan Perry was present via videoconference.
Update on Federal Legislative Issues
With regard to the federal Clean Air Act Section 185 issues, Mark Kadesh, AQMD federal legislative consultant, reported that Senator Feinstein’s personal staff and EPW Committee staff are engaged at very high levels with EPA and are working towards a solution in the short term. Senators Boxer and Feinstein have both reached out to Congressman Waxman due to his significant interest in the matter. Chris Kierig, AQMD federal legislative consultant, added that AQMD staff has been extraordinarily responsive to highly technical questions coming from the Senators’ offices.
Regarding our appropriations requests, Mr. Kierig explained that the Senate Appropriations Committee was going to consider the Interior Appropriations bill this week, but this action has been delayed. When the bill moves again, AQMD’s DERA funding request will be included. If the bill does not move in a timely fashion, the request is expected to be funded through a continuing resolution. Mr. Kierig was optimistic about continued appropriations for AQMD’s DERA program.
Mr. Kierig also acknowledged that Senator Reid officially announced that Climate Change legislation will not be taken up this year.
Andy Ehrlich, AQMD federal consultant, reported that S.3495 (Dorgan) on electrification passed the Senate Energy and Natural Resource Committee and that it might see action this year after the election or early next year. Mr. Ehrlich also reported that he is working with Senator Boxer’s office to determine if AQMD’s concerns regarding locomotive emissions may be addressed through Senator Carper’s so-called 3-P bill regarding power plant air pollution.
Mr. Ehrlich stated that he is also focused on the Administration’s transportation proposal for opportunities for Electrification in Goods Movement and other areas.
Bill La Marr, Executive Director, Small Business Alliance, appreciated the comments made and the assistance and support they have received from AQMD staff and consultants in Washington, D.C., regarding the Section 185 issues.
David Rothbart, Los Angeles County Sanitation Districts, echoed Mr. La Marr’s comments and asked if a timeline existed to resolve the Section 185 issues. Mr. Kierig explained that while this matter was being given high priority in Washington, D.C., it was impossible to give any specific timeline.
Recommend Position on the following Federal Bills [Attachment 2]
Anupom Ganguli, Assistant DEO/Public Advisor, briefed the Committee on the following federal legislation:
S. 3495 (Dorgan) Promoting Electric Vehicles Act of 2010
This bill will establish a national electric drive vehicle deployment program within the Department of Energy. It would deploy about 700,000 electric drive vehicles – both plug-in hybrids and battery-electric vehicles. While the driving force behind the bill is energy security, co-benefits would include greenhouse gas reductions, criteria pollutant emission reductions and the development of a national electrification infrastructure. It would also provide up to $500 million in funding to 5-15 targeted communities around the country.
Staff is suggesting that the bill be amended to include community selection criteria that take into account, in general, air quality needs and health impacts to the population (reduction of health risk). This will provide the greatest benefit where it is most needed.
Staff recommends a position of SUPPORT WITH AMENDMENTS.
Chair Carney asked how the bill was defining “community.” Dr. Ganguli responded that such definition is usually left to the DOE for implementation, and staff will look into this issue.
The Committee concurred with the staff’s recommendation.
S. 3608/H.R. 5174 (Schumer/Tonko) Fuel Cell Industrial Jobs Act of 2010 (related bills)
Dr. Ganguli reported that these two related bills would amend the Internal Revenue Service Code to maintain the existing $8,000 tax credit for fuel cell vehicles which were placed in service after 2009. The bill would also extend the credit to certain off-highway vehicles.
H.R. 5174 (Tonko) contains additional provisions that would provide for increased tax credit for certain categories of off-highway vehicles that achieve higher electricity generation efficiency. Staff is seeking clarification for this portion of the bill.
Staff recommends positions of SUPPORT for S. 3608 (Schumer) and SUPPORT WITH CLARIFICATION for H.R. 5174 (Tonko).
Chair Carney asked if the AQMD highlights any of these tax credit opportunities on our website or materials. Henry Hogo, Assistant Deputy Executive Officer, replied that the IRS has a form that lists all tax credits and we promote that form through vendor outreach.
The Committee concurred with staff’s recommendations.
S. 3629/H.R. 5976 (Lautenberg/Sires) Freight Transportation Policy and Strategic Development (companion bills)
Mr. Hogo explained that this bill defines the federal government’s role in freight transportation policy and planning. Ultimately, the goal of these bills is to reduce delays in goods delivery and improve travel time. This bill would also reduce GHGs by 40% by 2030 and create the Office of Freight Planning and Development in the Department of Transportation which would coordinate federal funding investments and facilitate communications among public and private stakeholders. Within two years of the creation of the office, it would develop a national freight transportation plan. The bill also establishes a grant program to fund major infrastructure projects and improve goods movement efficiency. No authorization of funds is available at this time but the definition of a “major” project is anything over $500 million dollars.
To ensure that the needs of the South Coast Basin are addressed, staff recommends that air agencies be eligible applicants for technology-based transportation projects and that they have a defined role in the development of the national freight transportation plan. In addition, environmental scoring criteria should be developed for the evaluation of freight and other transportation projects. Staff also recommends that advanced zero-or near-zero-emission transportation systems be added to the list of eligible projects.
Staff recommends a position of SUPPORT WITH AMENDMENTS.
Chair Carney asked what types of grants we want AQMD to be eligible for. Mr. Hogo replied that we would seek programs that would not only improve the efficiency of the freight transportation system but also give a higher score to cleaner technologies.
Chair Carney inquired if the additional points for environmental benefits would address real air quality benefits. Dr. Barry Wallerstein, Executive Officer, stated that it is a judgment call. It would be our preference to make this a requirement. However, as an air district, we are still trying to form coalitions with transportation agencies, and this may not be conducive to establishing such relationships.
The Legislative Committee concurred with staff’s recommendation.
End of Session Report [Attachment 3]
Mr. Oscar Abarca, Deputy Executive Officer, reported that staff and consultants have been successful in having AQMD positions and policies incorporated into key pieces of federal legislation, specifically in the areas of climate change and surface transportation reauthorization.
In addition to legislation, Mr. Abarca noted other successes on the federal side. The International Maritime Organization approved the USEPA’s application for an Emission Control Area (ECA) designation for North America (Canada and United States). He also noted that through the efforts of staff and consultants, AQMD has secured about $75 million in various grants from the federal government for clean air projects.
Regarding AQMD efforts in Sacramento, Mr. Abarca reminded the Committee that we started out the new year in a defensive posture, safeguarding legislative successes from the last few years. Early on, consultants and staff were successful in defeating all the major pieces of legislation that would have threatened district regulatory authority. Additionally, we were able to gain support from legislators who were critical of AQMD last year. In fact, some of them stepped up this year to author the District’s sponsored legislation: Senator Lowenthal introduced SB 632 on Motor Vehicle Fees and Senator Pavley introduced SB 778 on Intellectual Property for the Public Benefit.
Mr. Abarca updated the committee on SB 632 (Lowenthal) and reported that the bill was placed on hold on the last day of the legislative session by the Speaker. Discussions with the Speaker and his staff are continuing and work on this issue will continue into the next year.
The SB 778 (Pavley) AQMD intellectual property bill ran into opposition with the Senate and Assembly Judiciary Committees. While they agreed in concept with AQMD’s position, they were not willing to move the bill forward until an overall statewide policy was established that is consistent with federal law. Senator Pavley has committed to champion the bill for us in the coming year, and meanwhile, the Judiciary Committees staff are working with AQMD staff to discuss and resolve the outstanding issues.
Carolyn V. Hunter, AQMD state legislative consultant, reported that they continued to educate staff and members about the implementation of the offset related bills, SB 827 (Wright) and AB 1318 (V.M. Perez).
Ms. Hunter reported that AB 2037 (V.M. Perez) was passed out successfully. This bill prohibits the Public Utilities Commission from approving contracts with electrical generating facilities in California or in a “shared pollution area” if that facility does not meet current air pollution control emission requirements. The bill is currently on the Governor’s desk.
SB 1033 (Wright) did not have the same success. SB 1033 would have required the Air Resources Board to distribute greenhouse gas allowances exclusively to regulated entities, but it failed passage in the Assembly Natural Resources Committee.
Ms. Hunter also updated the Committee on SB 1224 (Wright) regarding odor nuisances, which was modeled after AQMD’s current enforcement policies and practices. This bill is awaiting action by the Governor.
Ms. Hunter reported that she continues to monitor how the California Energy Commission is going to deal with the task of analyzing electric system reliability pursuant to the requirements of AB 1318 (M. Perez). The CEC and CARB both found that the July 1, 2010 deadline could not be met so they opted to include it in their Integrated Energy Policy Report proceedings next year.
Chair Carney asked if the CEC plans to combine the report for the legislature into the planning process that they typically go through to develop their integrated energy report. Ms. Hunter confirmed that this is the stated intent on their scoping order dated August 31, 2010. Chair Carney also inquired if there was a timeline for the new process. Ms. Hunter provided a breakdown of the available timeline. Dr. Wallerstein added that the report is, in part, getting caught up in other politics. The state air board is scheduled next week to adopt a regulation on the Renewable Portfolio Standard, which is an issue of debate with the legislature as to whether CARB has the authority to do so, and this further impacts the energy report.
Will Gonzalez, AQMD state legislative consultant, stated that SB 1479 (Committee on Public Employment and Retirement) was signed by the Governor this month. This is the omnibus bill for the Committee on Public Employment and Retirement. Among other items, it contains language allowing AQMD to prepay its retirement obligation to the San Bernardino County Employee Retirement Association, resulting in an annual cost savings of $1 million a year.
Mr. Gonzalez reported that SB 722 (Simitian) failed, representing the third year in a row that legislation increasing the renewable portfolio standard to 33% by 2020, has failed.
Mr. Gonzalez stated that, with regard to SB 778 (Pavley), it was a marked victory for AQMD to have the opportunity to partner with Senator Pavley, who is well known around the country as a strong environmentalist.
Ms. Carney added that the intellectual property bill is an opportunity for the public to share in the profits that come from the investments of public money. She hoped that when the staffs of the two judiciary committees look at the issue that they have some real expertise with respect to intellectual property licensing. If public money is used to fund innovative technology development, she felt that is was hard to foresee any public detriment, if the public benefits from that. Mr. Gonzalez stated that those were the same comments made by Senator Pavley.
Jason Gonsalves, AQMD state consultant, reported that there were five bills supported by AQMD. First was ACR 109 (Nestande), where we were able to introduce amendments that recognized Supervisor S. Roy Wilson’s service on the AQMD board. The resolution was adopted by the Governor in June 2010. In addition, there are three bills that have moved on to the Governor that were supported by AQMD. This includes:
AB 2289 (Eng) which proposed to establish Smog Check program upgrades as well as technological upgrades.
SB 1433 (Leno) which would require CARB to annually adjust maximum penalties for air pollution violations beginning in March 2011.
AB 1863 (Gaines) which will extend the provisions of current law regarding the periodic testing of diesel generators at hospitals until January 1, 2016.
Update on State Budget
Mr. Gonsalves further reported that the state is facing the longest budget delay in history and no solid ground exists to believe in a quick resolution.
Mr. Abarca asked whether the Governor was still committed to pension reform in the budget discussions. Mr. Gonsalves stated that statewide pension reform discussion is still on the table.
Home Rule Advisory Group Committee Legislative Report
[Attachment 4]
Please refer to Attachment 4 for written reports.
Other Business: None
Public Comments: See public comments under Update of Federal Legislative Issues.
Attachment (EXE, 907k)
Attendance Roster
Federal Bill Language and AQMD Bill Analyses
End of Session Report
Reports from AQMD Home Rule Advisory Committee