BOARD MEETING DATE: July 13, 2007
AGENDA NO. 23

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, June 8, 2007. The Legislative Committee considered agenda items including the following state and federal legislation for which the Board will consider a position:

RECOMMENDED ACTION:

Receive and file this report, and adopt position on the bills specified in this letter.

Jane Carney, Chair
Legislative Committee

ATTENDANCE [Attachment 1]

The Legislative Committee met on June 8, 2007. Present was Committee Chair Jane Carney. Present, by videoconference, were Committee Members Roy Wilson, Tonia Reyes Uranga, Michael Antonovich, and Jan Perry.

RECOMMENDED POSITION ON BILLS [Attachment 2]

Anupom Ganguli, Assistant Deputy Executive Officer, stated that there were three urgency measures that need to be discussed and added to the agenda. He identified three measures: AB 1610 (Nunez) regarding petroleum refineries; a House of Representatives measure on preemption of state and local jurisdictions regarding greenhouse emissions; and SB 886 (Negrete-McCloud) regarding AQMD Board composition. The urgency in each instance arose because amendments were submitted or proposed after the posting of the agenda and which required action prior to the next meeting of the Board or Legislative Committee. The Legislative Committee unanimously approved staff’s recommendation to add the three measures as urgency items to the agenda.

Staff provided a brief presentation on the following bills for which the committee made a recommendation:

AB 558 (Feuer) Toxic Chemicals: Use Reduction

Jill Whynot, Planning and Rules Manager, provided the presentation on AB 558, as amended on April 18, 2007. Please refer to Attachment 2, AB 558 for AQMD staff analysis. Staff recommended to support AB 558 in concept, and will continue to see the development of this legislation to ensure that there is no overlap or conflict with state or local toxic rules. The Legislative Committee approved staff’s recommendation to support AB 558 in concept and recommend amendments.

AB 1119 (Fuller) Air Pollution: Carl Moyer Memorial Air Quality Standards Attainment Program

Fred Minassian, Technology Implementation Manager, provided the presentation on AB 1119 as amended on April 9, 2007. Staff recommended a support with clarifications position for this bill. Please refer to Attachment 2, AB 1119 for AQMD staff analysis. The Legislative Committee approved staff’s recommendation to support AB 1119 with clarifications.

AB 1209 (Karnette) State Air Resources Board: Emission Reduction Projects and Measures

William Sanchez, Sr. Public Affairs Manager provided the presentation on AB 1209 as amended on April 19, 2007. Staff recommended a support position for this legislation. Please refer to Attachment 2, AB 1209 for AQMD staff analysis. The Legislative Committee approved staff’s recommendation to support AB 1209.

AB 1428 (Galgiani) Energy: Biogas Digester and Manure-Fueled Customer-Generator Pilot Program

Mohsen Nazemi, Assistant Deputy Executive Officer, provided the presentation on AB 1428 as amended on May 17, 2007. Staff recommended a watch position for this legislation. Please refer to Attachment 2, AB 1428 for AQMD staff analysis. Chair Carney asked staff if the California Energy Commission (CEC) had identified the location of the equipment. Staff stated that this was a statewide bill and the location of the equipment is both inside and outside AQMD jurisdiction. The Legislative Committee approved staff’s recommendation to watch AB 1428.

AB 1610 (Nunez and Eng) California Petroleum Refinery Facilities Standards Board

Carol Coy, Deputy Executive Officer, provided the presentation on AB 1610. Staff recommended a watch position for this legislation. Please refer to Attachment 2, AB 1610 for AQMD staff analysis.

Committee Chair Carney asked staff what kind of coordination would be provided between the newly created board and CEC. Staff stated that CEC would have one board member on the new board, but specifics on how coordination between the two would occur have not been fully clarified. Staff stated that there would also be a California Air Resources Board (CARB) member, an APCD/AQMD board member, a public member, and a technical expert on the new board. Mike Wang of WSPA stated that his organization shares some of the same concerns as AQMD. Mr. Wang stated that the turnaround and scheduling of turnarounds are important parts of the industry due to safety issues, regular maintenance and upgraded rule and technology advancements. Mr. Wang stated that AB 1610 could have adverse effects and WSPA would like to work with the author and AQMD to achieve a reasonable approach. The Legislative Committee approved staff’s recommendation to watch AB 1610.

SB 140 (Kehoe) Fuels: Renewable Diesel Fuel

Paul Wuebben, Clean Fuels Officer, provided the presentation on SB 140, as introduced on May 1, 2007. Staff recommended a support with major amendments position for this legislation. Please refer to Attachment 2, SB 140 for AQMD staff analysis. The Legislative Committee approved staff’s recommendation to support with major amendments.

SB 886 (McLeod) regarding AQMD Board composition [Attachment 3]

Mr. Sanchez reported on the South Bay Council of Government’s proposals on the potential realignment between the Eastern and Western cities. After discussion, the Committee directed staff to continue working with Senator McLeod, Assemblyman Ted Lieu and the South Bay Cities to ensure a realignment which best balances the population between the Eastern and Western Sectors; maximizes the integrity of the various Councils of Governments within the Eastern and Western Sectors; allows the sitting members to serve out their present terms; and maximizes the geographic contiguity of the cities within the Eastern and Western Sectors.

The Committee also accepted Senator Polanco’s recommendation to move as expeditiously as possible to have the amendments submitted by June 20^th.

During the discussion, Board member Jan Perry asked under what scenario would Calabasas and Hidden Hills be grouped with the beach cities and if they would oppose any of the proposals. Committee Chair Carney responded that these cities would be grouped with the beach cities and they would be placed in the western sector. Staff stated that Malibu and Calabasas have indicated that all five of the scenarios would be satisfactory, but staff would report back to the committee on Hidden Hills' position. Board Member Antonovich stated that he opposes the configuration proposals because they will increase the size of the Board, making it unworkable and allowing for San Bernardino, Riverside and Orange Counties to propose increasing their representation on the Board. He further stated that cities in the Los Angeles County should be able to work together on their own to establish some type of rotating system, and to burden the entire Board by adding more members is counterproductive to our ability to represent its constituents.

Committee Chair Carney asked whether another guiding principle could be added to include that no COG should oppose the proposal, adding that AQMD does not want to be in the position of going forward with the proposal if some major group of cities being impacted remain opposed. She stated that AQMD is accommodating South Bay COG and many board members are in agreement with Board Member Antonovich’s comments. Board Member Reyes Uranga stated that Assembly Member Ted Lieu has been an integral part of the discussion and has been in agreement with the scenarios so there should no be opposition. Staff stated that they are not aware of any opposition at this time. Board Member Jan Perry asked staff why they were so concerned with being surprised if opposition surfaced. Staff responded that the proposals affect 88 cities throughout the region and staff wants to make sure that they were not presented with an untenable situation on June 27. Committee Chair Carney stated that it may not be surprising if a city representative finds out about the proposal at the last minute and opposes the proposal. Board Member Reyes Uranga stated the western cities have been informed of the proposals so the only issue may be with a city in the eastern sector. Board Member Reyes Uranga further stated that because Assembly Member Lieu has been involved, she believes that any city in opposition would have already come forth.

S. 1419 (Reid) Renewable Fuels, Consumer Protection and Energy Efficiency Act of 2007

William Sanchez provided the presentation on S. 1419. Staff recommended a watch position for this U.S. Senate legislation and to work with the author to discuss AQMD’s concerns. Please refer to Attachment 3, S. 1419 for AQMD staff analysis. Mr. Sanchez expressed concern that the bill promotes bio fuels, but does not address the potential for negative air quality impacts. Mr. Sanchez stated that the bill being carried by the majority leader would eventually pass and it is important that staff works with the author in conference committee to address AQMD concerns. The Legislative Committee approved staff’s recommendation to watch S. 1419 and work with the author.

Draft Proposed Federal Energy Legislation

Mr. Sanchez reported on the draft energy legislation to increase the production of alternative and renewable fuels and to increase motor vehicle efficiency. Mr. Sanchez stated that AQMD is concerned with proposed provisions that would preempt California and local jurisdictions from implementing laws requiring the reduction of greenhouse gas emissions and prohibits EPA from granting waivers. Mr. Sanchez stated that Speaker Pelosi and most of the California delegation have announced that they would oppose that provision in the bill. The Legislative Committee approved staff’s recommendation to watch and work with author and others.

UPDATE ON SACRAMENTO LEGISLATIVE ISSUES [Attachment 4]

William Sanchez reported that AB 630 (Price) has been held in Committee on Appropriations. Staff stated that they had negotiated amendments with the committee that addressed the fiscal concerns and were surprised when the bill was held. In the aftermath of the hearing two issues were raised as to why the bill may have been held. First, appropriations staff commented on how the bill may unduly infringe upon CARB discretion. Second, it was reported that there was a policy dispute between the Appropriations Committee and the Transporation Committee. The policy committee wanted the right to request a waiver limited to AQMD, but the fiscal Committee argued that it should be made available to all the districts. Mr. Sanchez reported that SB 886 (Negrete-McCloud), Air Quality District Board, has passed out of the Senate and will be heard on June 27 in the Assembly. Mr. Sanchez reported that SB 1028 (Padilla) -Necessary Measures to Attain Clean Air Standard was voted out of the Senate and will be scheduled to be heard in the Assembly.

Will Gonzalez, AQMD Sacramento lobbyist, reported that the budget committees have indicated that they would like to move the bond monies, specifically the $2 Billion bond relating to the trade corridor. Mr. Gonzalez stated that there are many bills that have been introduced that would create criteria for the trade corridor money, but the budget committees want to move the money prior to the criteria being established. Mr. Gonzalez stated that the Senate and Assembly have agreed to move $200 million from the bond to the budget with no environmental assurance on projects that may be implemented other than it would be limited to grade separations. Mr. Gonzalez also stated that there appears to be $60 million in the Carl Moyer Program to assist companies in meeting requirements for clean construction. He reported that SB 974 (Lowenthal) Port Container, has passed the Senate and is now moving on to the Assembly.

UPDATE ON WASHINGTON D.C. LEGISLATIVE ISSUES [Attachment 5]

Chair Carney stated that the Air Quality Institute has been scheduled for June 25 with follow-up meetings with elected representatives. To date, Board Member Reyes Uranga is the only board member able to attend. Staff stated that the AQI is a meeting primarily consisting of staff, and board members who will meet on a one-on-one basis with the Members of Congress on Tuesday, June 26.

Andrew Kauders, AQMD Washington consultant, reported that Speaker Pelosi’s staff has indicated that the provisions that block California’s Pavley Law and overturns the Supreme Court’s decision on greenhouse gas emissions are dead on arrival. Mr. Kadesh stated that the provisions will probably not progress in the Senate as well. He stated that his office has met with Senator Feinstein’s office to ensure that AQMD issues are addressed. Specifically, he reported that the “renewable energy reserve” may provide opportunities for tax credits. This reserve was created by legislation that repealed $14 billion in subsidies that was given to big oil companies. Mr. Kadesh reported that the marine vessel bill was introduced by Senators Boxer and Feinstein and introduced by Solis, Waxman, Capps, & Harman of the House of Representatives. Staff stated that they are working with the Ports of Los Angeles and Long Beach who are in support. The ports have approached the Association of Ports and Harbors on a national basis to obtain support and it will be discussed at a future meeting.

Report from AQMD Home Rule Advisory Group Committee [Attachment 6]

Please refer to Attachment 6 for written report.

Other Business:

None.

Public Comments:

See public comment under AB 1610.

Attachment (EXE 1.1mb)

1. Attendance Roster
2. Recommended Position on Legislation
3. Proposals for Potential Configurations for Western Sector AQMD Seat
4. Update on Sacramento Legislative Issues
5. Update on Washington D.C. Legislative Issues
6. Legislative Report from AQMD Home Rule Advisory Group