BOARD MEETING DATE: February 3, 2006
AGENDA NO. 30

Legislative Committee

SYNPOSIS:

The Legislative Committee considered agenda items including a “spot bill” for possible revenue enhancement for AQMD’s general operation; and the establishment of a set of principles regarding the District’s position on the Governor’s Infrastructure Financing Proposals. In addition, the Board will consider a position for the following legislation:

Bill/Title	Recommended Position
AB 1231 (Horton) Air Pollution	Support as Amended

RECOMMENDED ACTIONS:

Receive and file this report.

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

Attendance [Attachment 1]

The Legislative Committee met on January 13, 2006. Present was Committee Vice Chair Jane Carney. Present, by videoconference, were Committee Chair Bea LaPisto-Kirtley and Committee Members Roy Wilson, Michael Antonovich and Jan Perry.

Recommended Position on One Bill [Attachment 2]

One state bill was presented for which the committee recommended a position. Oscar Abarca, Deputy Executive Officer, led the presentation.

AB 1231 (Horton) Air Pollution

Last year, AQMD opposed this bill because it would have replaced district-appointed hearing board officers with CARB-appointed hearing board officers and would have limited a district’s authority to grant variances and orders for abatements.

The bill, as amended on January 3, removes all controversial provisions of the earlier bill, which AQMD opposed. The amended bill will require that air districts provide biennial statistical reports to CARB on specific hearing board actions to determine if they are consistent with the State Implementation Plan (SIP). Staff recommends that AQMD withdraw its previous oppose position and support this bill, as amended. Staff will also work with the proponents of the bill to resolve concerns that may have prompted the introduction of the earlier version of this bill.

The Legislative Committee unanimously approved staff’s recommendation to SUPPORT AB 1231, as amended.

Proposed Funding Augmentation for AQMD’s Annual Operating Budget

Oscar Abarca stated that for the past several years, the Board has expressed concerns regarding a decrease in traditional revenue sources for AQMD’s annual budget. Mr. Abarca provided several options available to AQMD to generate funding of approximately $10 million per year for general AQMD operations. He also noted that this is a high legislative priority for 2006 and is part of AQMD’s goals and objectives. He said that there are two parallel paths which staff should pursue; one involves stand-alone legislation, and the second would be to work within the framework of the federal and state budget process. He said that with respect to a legislative path bill concept, it would need to be introduced to legislative counsel by January 27, and the actual bill introduced by February 24.

Mr. Abarca said that a first option would be for staff to research existing revenue streams, such as the state’s motor vehicle account. He said that currently there is approximately $2.6 billion in revenues in this account that are used by the California Highway Patrol, Department of Motor Vehicles and to a lesser extent, air districts and CARB.

A second option, also related to the motor vehicle account, would be to create a new revenue stream, such as a modest increase in the motor vehicle registration fee (i.e., $1) to be used exclusively for the South Coast basin.

A third option is for AQMD to actively engage in discussion of the various infrastructure bond measures currently proposed by the legislature and the administration.

A fourth option is for staff to research and broaden the list of consumer products that contribute to air pollution. These products are assessed a fee.

A fifth option is to review existing fees on the transport of both goods and passengers, such as landing fees on airplanes, ships, docking fees at ports, containers and other modes.

Mr. Abarca also said that staff would continue to work with its Washington, DC lobbyist to identify and secure all federal revenues available for AQMD operating programs.

Barry Wallerstein, Executive Officer, said that staff is also seeking the committee’s approval to begin having generic conversations with the business community and the environmental community to get their input into approaches for additional funding. He mentioned that he has spoken to CCEEB over the past year about these types of approaches and the need for strong support from the business and environmental communities for any initiative.

Mr. Abarca said that Senator Polanco would be the lead consultant on this item once an option is determined to secure necessary additional revenue for AQMD. Dr. Wallerstein also said that he had mentioned in a previous committee meeting, that a small contract has been issued to former Senator Bryon Sher, whom Mr. Abarca has been in consultation with, on this matter.

Mr. Abarca said that staff is seeking authorization to move forward in studying these options and to introduce a “spot bill” to keep AQMD’s options open.

The Legislative Committee unanimously approved staff to research the above-listed options for possible revenue enhancement for AQMD’s general operation and to introduce a “spot bill.”

Board Position on Infrastructure Financing [Attachment 3]

Peter Greenwald, Senior Policy Advisor, said that there are a number of proposals being discussed for funding infrastructure projects to improve goods movement. Although not all of the proposals are in legislative form at this time, staff believes there may be an opportunity for the AQMD to have input into the development of the proposals.

He said that staff is seeking the committee’s approval for a set of general principles which staff will use in attempting to influence the development of these proposals.

The principles are given in Attachment 3.

A seventh principle was suggested by Chair LaPisto-Kirtley and accepted by consensus, is that public agencies should place these types of projects first in their permitting queue, giving them a high priority in streamlining the process.

Dr. Wallerstein noted that precedent for this latter principle was established during the state’s power crisis when AQMD expedited review of power-generation projects yet maintained environmental safeguards.

The Legislative Committee unanimously approved the Principles Regarding the AQMD’s Position on Infrastructure Financing Proposals.

Sacramento Report/Update

The Sacramento consultants each provided an update as follows:

Senator Richard Polanco reported that SB 459 and AB 888 are currently out of their respective houses of origin and will not be heard in policy committee until all bills from their house of origin are heard (i.e., all Assembly bills move to the Senate house).

He said that the Sacramento team will continue to reach out to let others know of the importance of these bills’ issues, and the nexus between railroad and health risks in the communities that are impacted along the corridors.

Jared Ficker reported that CARB’s hearing on their MOU is scheduled for January 27. The team is also drafting an Assembly resolution consistent with the Clean Ports Initiative.

With regard to the Governor’s package on infrastructure bonding ($222 billion in bonds being proposed over ten years), $2 billion is earmarked for air quality mitigation. As more details on the “mega-bond” become available, staff and consultants will return to this committee for their review and thoughts.

Lastly, he reported that they are working with SoCal-based legislators inviting them to attend AQMD’s Asthma Conference.

Allan Lind reported the status of the following bills that were left over from last year and that AQMD had concerns with:

• AB 1101 is still on the Assembly floor. It must pass out of the Assembly by January 31 or it will be dead.
   
• AB 1439 is on the Assembly floor, and the author does not appear to have the votes to get it out.
   
• SB 870 is approaching the Senate floor; however, it appears that it may have difficulty by the end of the month.
   
• He also spoke with Senator Lowenthal, who is very pleased with the Governor’s infrastructure package with its emphasis on the ports.

Dr. Wallerstein said that with regard to the South Bay Cities Council of Government (SBCCOG) proposal on increasing the size of AQMD’s Governing Board, he spoke with Susan Seamans and asked if she had received a report regarding the January AQMD Governing Board meeting on this issue. Ms. Seamans said that she only received a limited report. Dr. Wallerstein was concerned that she was not aware of the full extent of the Governing Board’s discussion on this issue and that the Governing Board’s perspective is that the current structure is satisfactory. He suggested that it may be appropriate for Chairman Burke to send a follow-up letter to the cities that are members of the SBCCOG so that they know that the Governing Board discussed the issue in detail, and the reasons why AQMD does not support this legislation.

Jan Perry said that she had called SBCCOG’s consultant and other COG members to let them know how concerned she was at their not sending an elected official to the Governing Board meeting. She said that she had requested this of them in advance. Jane Carney said that she would like this highlighted in the letter.

Chair LaPisto-Kirtley requested that once the letter is drafted that it be reviewed by the Legislative Committee members.

Staff was directed to prepare a draft letter to the Cities for Chairman Burke’s signature.

Allan Lind said that the portable equipment bill sponsored by CAPCOA is currently held on the Senate floor. Dr. Wallerstein said that when the bill was introduced and moving, the business community, WSPA, CCEEB and others approached CAPCOA to work this out through a rule amendment with CARB and a negotiated consensus was reached which would meet the local air quality needs of the local districts. CARB will consider rule amendments at their May or June meeting. Dr. Wallerstein said that Carol Coy, Deputy Executive Officer, is the lead person on this CARB rulemaking effort. He also said that if CARB amends the rule then there is no need to move forward with this legislation.

Federal Report/Update [Attachment 4]

Lynn Jacquez reported that Congress is in recess and that they are preparing for the upcoming second session. They will be monitoring the appropriations for programs such as the Department of Energy authorization bill and the transportation bill, and all of the “clean diesel” programs. In addition, they are monitoring the potential introduction of legislation by Senator Harper on Clear Skies, and port activities.

She also reported that they are monitoring state activities, such as the infrastructure bonds and any activities at the federal level that could influence the effort.

She said that she will be meeting with AQMD staff to finalize the legislative agenda and to plan an implementation of the agency’s goals and objectives.

Chair LaPisto-Kirtley requested that she join the meeting by telephone conference.

Public Comment

None

Attachments (EXE 168kb)

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