BOARD MEETING DATE: October 3, 2003 AGENDA NO. 26

BOARD MEETING DATE: October 3, 2003
AGENDA NO. 26

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
SB 11 (Cedillo) – AQMD Board Membership

RECOMMENDED ACTION:

Approve the position recommended below.

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

Attendance

The Legislative Committee met on September 12, 2003. Present were Committee Vice-Chair Jane Carney and by videoconference Committee Chair Beatrice LaPisto-Kirtley and Committee Members Michael Antonovich and Roy Wilson. Committee Member William Burke was unable to attend.

Washington Report/Update [Attachment 1]

Lynn Jacquez, Lance Larson, and Michael Kubayanda, AQMD Federal Legislative Representatives, reported that Congress has returned from summer recess and started discussions on the Appropriations bills. Not all Appropriations bills will be completed by October 1, therefore, continuing resolutions will be necessary to keep the federal government funded until all bills are passed. Proposed funding for the AQMD is still pending in the Department of Defense and VA HUD Appropriations bills.

Progress has stalled on the full reauthorization of the six-year Transportation Equity Act for the 21st Century (TEA-21); the deadline for the current six-year bill expires at the end of September. Congress has been debating how to provide additional funding for the bill, which could mean a potential gas tax or indexing of the current gas tax; both are unpopular with many members of Congress. The House and Senate are privately debating whether or not deliberations over a six-year bill should occur in March, which is close to when leadership anticipates they will debate the Fiscal Year 2005 Budget.

The House and Senate Energy bills are now in conference committee. The California delegation members on the conference committee are Congressmen Henry Waxman, Duncan Hunter, Richard Pombo, Buck McKeon, Bill Thomas, and George Miller. No California Senators are on the committee.

Board Member Cynthia Verdugo-Peralta recently traveled to Washington, DC and met with Congresswoman Hilda Solis’ office. The congresswoman has expressed her interest in assisting the AQMD, if necessary, with any issues or concerns at the federal level.

Sacramento Report/Update [Attachment 2]

Allan Lind, AQMD State Legislative Representative, reported that the Legislature has adjourned for the year. The following bills of interest to the AQMD have gone to the Governor: AB 998 (Lowenthal); AB 1090 (Longville); AB 1214 (Firebaugh); SB 288 (Sher); SB 656 (Sher); and SB 700 (Florez).

Dr. Wallerstein briefed the Committee on the outcome of SB 288 and SB 700. SB 288 will maintain the current emission reductions from the New Source Review program already in place as opposed to the Bush Administration’s proposal, which would represent a rollback in California’s New Source Review program. The bill also includes a five-year extension for the AQMD’s Clean Fuels program. This represents about $60 million in continued funding for the Clean Fuels program over the next five years, beginning in 2005.

SB 700 will eliminate the agricultural exemption in state law that has caused the U.S. EPA to issue a sanction clock to California. Without SB 700, the AQMD, commencing at the end of November, would need to increase the offset ratio in the South Coast district from 1.2:1 to 2:1 for major sources in the South Coast Basin. The bill also specifies best available control measures for agricultural operations and requires permits for large dairy operations to minimize emissions. The bill was extensively negotiated in its final form, with agricultural industry representatives participating in the negotiations. As the AQMD Board and other air district boards in the state adopt control requirements, they will all be using the same procedures, standards and cost-effectiveness that they use for other source categories. There are also provisions in the bill to ensure that the agricultural industry is treated fairly and appropriately.

Mr. Lind added that Dr. Wallerstein was instrumental and his assistance was greatly appreciated by several members of the Legislature in helping to harmonize SB 700 and there was a great deal of appreciation from the Legislature for AQMD’s leadership regarding the bill.

Mr. Lind also reported that SB 1078 (Chesbro), which was not previously being tracked by the AQMD, was recently amended to take on a new subject matter that proposes to increase the tipping fee garbage trucks pay at landfills. The increased revenue would be used to finance diesel retrofit responsibilities that the garbage companies will have under CARB’s proposed diesel risk reduction rule. This bill came into play very late in the process and received mixed reviews. This is now a two-year bill.

Lastly, Assemblywoman Pavley’s Select Committee on Air and Water Quality held an informational hearing in August. Dr. Wallerstein testified at the hearing, which was held to explore financial incentives for achieving clean air and to lay the groundwork for legislation that Assemblywoman Pavley may want to consider in the coming year.

Other Business [Attachment 3]

A motion was made by Supervisor Antonovich, and approved by the Committee, to add to the agenda as an urgency item, consideration of SB 11 (Cedillo), regarding AQMD Board membership.

Staff explained that SB 11 originally pertained to public safety. It was very recently amended to give the City of Los Angeles a seat on the AQMD Board and then allow representatives from the remaining cities in the Western region to vie for the Western region seat, thereby increasing the AQMD Board membership from 12 to 13 members. The bill has become a two-year bill.

Supervisor Antonovich moved to oppose SB 11, explaining that this was a bill that sat dormant since last December and was then gutted and amended late in the session with the current language. The bill also moves some cities between the Eastern and Western Los Angeles regions. The Legislative Committee unanimously voted to take an oppose position on SB 11 and directed Mr. Lind to communicate the Committee’s position to Senator Cedillo, as well as to Senators Sher and Burton.