Report:
Legislative Committee
Synopsis:
The Legislative Committee held its regular meeting on Friday, January 19, 1996. An attendance record is included for your information(Attachment 1). The next Legislative Committee meeting is Friday, February 16, 1996, at 8:30 a.m. in Conference Room CC8.
Recommended Action:
1. Approve the legislative positions recommended below.
Dr. William Burke, Chairman
Legislative Committee
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Attachments (6)
(c:296bdltr.doc)
Changes in State Assembly
Staff provided an update on the changes in the Assembly leadership, makeup of committees and Assembly rules (Attachment 2). The committees of most concern to the AQMD in the Assembly are Appropriations, Budget, Environmental Safety, Local Government, Natural Resources and Transportation. The chairs of most committees have been reassigned due to the change in the Assembly speakership. Several freshman legislators were appointed to key positions. Staff reported that not much movement has occurred yet on legislative bills since members have been busy with leadership issues.
Recommended Positions on Two-Year Bills
Staff reported on the status of two-year bills that must be out of their house of origin in the next few weeks (Attachment 3), and specifically commented on the following bills. Assembly Bill 1268 by Assembly Speaker Pringle dealing with AQMD city selection committee members was withdrawn and therefore will not become a vehicle for Pringle's proposals to change the AQMD. Senate Bill 1122 (Mountjoy), pertaining to small business and environmental regulations and very similar to AB 177 (see below), was defeated in the Senate Natural Resources Committee. Board Chairman Jon Mikels inquired about AB 1240 (Bordonaro) dealing with commercial space launches. Staff reported that the bill will be amended in the Senate to narrow its scope. The author's intent is to allow Vandenberg Air Force Base to develop launch vehicles for space orbit, but the bill is broadly written and could potentially exempt all aerospace from regulation.
Staff also reported there are a couple of new bills dealing with ozone-depleting compounds, but most new bills will not surface until next month. The deadline for the introduction of new bills is February 23.
Staff provided analyses and recommendations on three bills related to taxation policies (see Attachment 4). The specific bills discussed are as follows:
Summary of Recommendations
Bill/Title Recommended Positions
AB 177 (Mountjoy) -- Control Technology SUPPORT (tax credit portion)
and Tax Credits and seek clarification regarding
regulatory provisions
AB 913 (Cuneen) -- Vanpool Tax Credits SUPPORT
SB 780 (Leonard) -- Clean Fuel Tax Credits SUPPORT
SB 780 (Leonard) creates new tax credits and tax exemptions for clean fuel vehicle fleets and clean fuel stations. Staff reported that the bill was originally sponsored by United Parcel Service, but is now the California Trucking Association's bill. Amendments by the Air Resources Board, state Energy Commission and Franchise Tax Board have been incorporated into the current version. The bill now aims to fulfill requirements of the state implementation plan for heavy duty vehicles by providing tax credits for cleaner vehicles. Chairman Mikels distributed a letter he received from Denny Zane of Gladstein & Associates in support of the bill. In the Chairman's reply to the letter, he indicated the AQMD board had adopted a Support position on the bill during the last legislative session (Attachment 5). Staff recommended a "Support" position for this year with which the Committee concurred.
AB 913 (Cuneen) extends existing tax credits for private vanpools, employer shuttle vehicles and subsidized transit passes until January 1, 2001. Staff reported the bill received widespread support during the last legislative session, but was caught up in the broader issue of ridesharing. Staff recommended a "Support" position which the Committee approved.
AB 177 (Mountjoy) exempts companies using the "latest proven technological equipment" and those which voluntarily install BARCT from other air quality regulations. The bill also establishes a new 10% tax credit for environmental expenses. Staff indicated the bill was sponsored, in part, out of concern over VOC RECLAIM. Staff reported that the regulatory part of the bill has significant defects and could potentially affect the current RECLAIM program. Pat Leyden, Deputy Executive Officer/Stationary Source Compliance, indicated that if companies were only required to meet BARCT, the South Coast would not be able to reach attainment status. The Committee agreed that providing tax incentives was desirable, and approved a support position on that element, but asked that staff seek clarification and possible amendments on the regulatory provisions. During the public comment portion of the meeting, Mr. John Billheimer pointed out that the tax credits contained in AB 177 apply to equipment only and not to product reformulation. He suggested that the language be broadened to benefit all small businesses facing environmental regulations. Staff has reviewed Mr. Billheimer's suggestion and will make it a part of suggested amendments to the author.
Other Business
Council Member Nell Soto reported that she had met with several Legislators while in Sacramento recently and felt it was important that AQMD Board Members meet regularly with members of the Legislature. Supervisor Roy Wilson agreed that it was especially important this year due to changes in leadership and should be an ongoing effort. No formal Committee action was needed to implement Council Member Soto's suggestion. Members will simply pursue such contacts as travel plans allow, with staff's assistance.
Ethnic Community Advisory Council
Attached for your information are the Ethnic Community Advisory Council minutes for the December 13, 1995, meeting (Attachment 6).