BOARD MEETING DATE: March 7, 2003
AGENDA NO. 26

Legislative Committee

SYNOPSIS: 

The Legislative Committee considered the 2003 Federal Legislative Agenda, which includes continued support for funding for demonstration projects to enhance the hydrogen refueling infrastructure; accelerating natural gas vehicles and infrastructure; exploring technology transition assistance funding for dry cleaners; seeking additional funding to enhance the AQMD Laboratory’s stationary and mobile monitoring equipment; identifying opportunities to participate in disbursement of CMAQ funding; exploring funding for an Air Pollution Health Effects study; and exploring a goods movement fee to fund air quality improvement initiatives in the region. The Agenda also includes two federal legislative proposals for which the Board will consider a position:
-- Initiative to Promote Hydrogen Fuel Cell Filling Stations and Vehicles (Cox/Wyden)
-- Hydrogen Fuel Cell Act of 2003 (Dorgan)

RECOMMENDED ACTION:

Approve the 2003 Federal Legislative Agenda and the legislative positions recommended below.

Beatrice J.S. LaPisto-Kirtley, Chair, 
Legislative Committee

Attendance

The Legislative Committee met on February 14, 2003. Present were Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich and Roy Wilson (by videoconference). Committee Vice-Chair Jane Carney and Board Chair William Burke were unable to attend. [Attachment 1]

Washington Report/Update

Lynn Jacquez, AQMD Federal Legislative Representative, reported that Congress has passed the Fiscal Year 2003 Appropriations Omnibus bill, which is now on its way to the President for signature. Committees will now begin discussions for Fiscal Year 2004.

House and Senate committee assignments are nearing completion and full committee rosters are expected shortly.

Sacramento Update [Attachment 2]

Allan Lind, AQMD State Legislative Representative, reported that the Legislature has passed the CARB stationary source fee bill, which will now go to the Governor. The bill is an Administration proposal and will likely be signed by the Governor.

Language was submitted to Legislative Counsel for two of the AQMD’s State Legislative Proposals. The proposal for a fee on crude oil refining to mitigate air quality impacts was submitted by Senator Soto, who will author the legislation. The Alameda Corridor proposal is in progress, but an author has not yet been confirmed. The third proposal to protect state subventions has been put aside until the Legislative Analyst’s Office releases its report on the state budget, expected by the end of February. The legislative deadline to introduce bills is February 21. About 400 bills have been introduced to date; about 3,000 are expected by the deadline.

Per Governing Board directive, staff has been evaluating areas where the District might seek additional authority to reach air quality attainment standards. Discussions have taken place with CARB’s Executive Officer and after further discussions, staff will coordinate with stakeholders and return to the March Legislative Committee meeting with suggestions.

The Assembly will hold a joint committee informational hearing on February 19 entitled "Why California’s Children Can’t Breathe." AQMD staff will be in attendance.

Federal Legislative Agenda for 2003 [Attachment 3]

Staff participated in a Federal Legislative Retreat with the Legislative Committee Chair LaPisto-Kirtley, Committee Member Antonovich, and AQMD’s Federal legislative representatives to develop a set of draft recommendations to represent AQMD’s 2003 Federal Legislative Agenda. The draft agenda continues to seek funding for the proposals the Board approved for 2002, which include 1) funding for demonstration projects to enhance the hydrogen refueling infrastructure in the South Coast Air Basin; 2) funding to accelerate natural gas vehicles and infrastructure in the Basin; 3) explore opportunities to assist dry cleaners with technology transition assistance funding; and 4) funding to enhance AQMD’s Laboratory with state-of-the-art stationary and mobile monitoring equipment. The AQMD did secure $1 million from the federal government last year for monitoring equipment and staff proposes to seek additional funding from that source.

In addition to the four proposals adopted in 2002, three additional concept proposals were developed that recommend that AQMD’s Federal legislative representative: 1) seek a greater role for the AQMD in the decision-making process for the disbursement of funds through the Congestion Mitigation and Air Quality Improvement (CMAQ) program; 2) pursue funding for a health study consistent with Chairman Burke’s Initiatives; and 3) work to secure additional authority to impose a fee for goods movement that flows from the Ports of Los Angeles and Long Beach to mitigate the impacts of air pollution from the transportation of those goods.

Consistent with the 2003 Federal Legislative Agenda, staff also shared information on two federal legislative proposals that will soon be introduced. Congressman Christopher Cox (R-CA) and Senator Ron Wyden (D-OR) plan to introduce legislation in the coming weeks that would provide tax credits and incentives for the purchase of fuel cell vehicles and hydrogen fuel and would require federal fleets to purchase fuel cell vehicles.

A second, similar proposal by Senator Byron Dorgan (D-ND) would authorize funding for fleet acquisition and research and development of hydrogen passenger vehicles, buses, and heavy-duty vehicles. The legislation would require the government to purchase vehicles in their fleet and would authorize federal appropriations for hydrogen infrastructure. The legislation is a $6.5 billion federal investment over 10 years. Because the Cox/Wyden legislation will be a tax incentive bill and the Dorgan legislation will be an Appropriations bill, they will be heard by different committees but will eventually have to be worked together. Staff recommended a Support in Concept position on both proposals, consistent with the 2003 Federal Legislative Agenda.

The Legislative Committee adopted the 2003 Federal Legislative Agenda and staff’s recommendation to Support in Concept the Cox/Wyden and Dorgan legislative proposals.

Other Business

Supervisor Wilson stated that it was recently brought to his attention that the Public Utilities Commission (PUC) is considering imposing a 2- to 5-cent-per-kilowatt-hour "exit" fee on those who avoid utility charges by using an off-grid system, such as solar panels. The fee could reduce the differential and the amortization by about 40 percent and would deter people from using solar power as an alternative energy source for their homes or businesses. Supervisor Wilson asked staff to look into whether the AQMD could take a position on this issue before the PUC.

Public Committee

None

Attachments

1. Attendance Roster
2. 2003 State Legislative Status Report
3. 2003 Federal Legislative Agenda
4. Position Paper on Initiative to Promote Hydrogen Fuel Cell Filling Stations and Vehicles
5. Position Paper on Hydrogen Fuel Cell Act of 2003

///