BOARD MEETING DATE: October 4, 2002 AGENDA NO. 20
Legislative Committee
SYNOPSIS:
The Legislative Committee considered the following proposal for which the Board will consider approving a position:
Consideration of Position on Proposed Biodiesel Credits in Amendment to H.R. 4/Federal Energy Policy Act
RECOMMENDED ACTION:
Approve the legislative position recommended below.
Jane Carney, Vice Chair
Legislative Committee
Attendance
The Legislative Committee met on September 20, 2002. Present were Committee Vice- Chair Jane Carney and Committee Member Michael Antonovich (by teleconference), and Committee Member Roy Wilson (by videoconference). Pursuant to the Procedures for Standing Committees of the Governing Board, adopted March 8, 1996, Norma Glover, AQMD Chairman, was appointed as an ad hoc member of the Legislative Committee for the September 20, 2002, meeting only. Committee Chair Beatrice LaPisto-Kirtley and Committee Member Cynthia Verdugo-Peralta were unable to attend. [Attachment 1]
Federal Update
The Committee was provided a written federal activity report. No oral report was given. [Attachment 2]
Sacramento Update
The Committee was provided a written state activity report and legislative status report. No oral report was given. [Attachments 3 and 4]
Recommended Position on Federal Proposal
Staff provided a summary and background information on the following proposed amendment to H.R. 4 the Energy Act of 2001. [Attachment 5]
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Title |
Recommended Position |
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Proposed Expansion of Biodiesel Credits for Fleet Requirements |
OPPOSE |
Under the Energy Policy Act of 1992 (EPAct), most federal, state and public utility companies are required to have a certain percentage of light-duty Alternative Fuel Vehicles (AFVs) in their fleets. The EPAct was amended in 1999 to allow these fleets to meet 50 percent of that requirement by purchasing biodiesel for use in their heavy-duty vehicles. The proposed amendment [Section 817 of the Senate version of H.R. 4, the Energy Act of 2001] would allow fleets to meet 100 percent of their AFV requirement by purchasing biodiesel for their heavy-duty vehicles. This includes the use of B-20, a blend of 20 percent biodiesel and 80 percent petroleum.
The fleet requirement in the EPAct was put in place to reduce the dependence on imported oil and encourage the use of alternative fuels. This amendment would be counterproductive to the goal of the EPAct. Staff recommends an Oppose position on Section 817 of the Senate version of H.R. 4. The Legislative Committee unanimously voted to Oppose Section 817 of the Senate version of H.R. 4, which proposes expanding biodiesel credits for fleet requirements under the EPAct.
Other Business/Public Comment
No other business/public comment.
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