BOARD MEETING DATE: June 1, 2007
AGENDA NO. 31

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, May 11, 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 May 11, 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 in the State Legislature [Attachment 2]

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

AB 118 (Nunez) Alternative Fuels and Vehicle Technologies: Funding Program

Paul Wuebben, Clean Fuels Officer, provided the presentation on AB 118, as amended on April 17, 2007. Please refer to Attachment 2, AB 118 for AQMD staff analysis. This bill would create the Air Quality Improvement Program to fund air quality improvement projects, upon appropriation, relating to fuel and vehicle technologies. Mr. Wuebben reported that staff is recommending a support position with proposed amendments. The first proposed amendment would be to eliminate the provision that calls for the funding of mitigation projects related to the introduction of Phase III gasoline. The second proposed amendment is to modify the Air Quality Improvement Program to include consultation with local districts, including AQMD. Committee Chair Carney requested clarification on the definition of alternative fuels. Staff stated that the broader definition of alternative fuels would allow for renewable low carbon strategies to optimize low level blends including any petroleum fuel blended with any percentage of non-petroleum fuel constituents. The Legislative Committee approved staff’s recommendation to SUPPORT AB 118 and seek amendments.

AB 233 (Jones) Diesel Vehicles and Engines: Healthy Heart and Lung Act

Dean Saito, Fleet Rule Manager, provided the presentation on AB 233 as amended on March 28, 2007. Please refer to Attachment 2, AB 233 for AQMD staff analysis. This bill would prohibit the Department of Motor Vehicles from registering any pre-1994 heavy duty diesel trucks but allows registration of renewals or transfers. It would also require ARB to increase penalties for idling diesel trucks and buses from $100 to $300 and require ARB to assess their enforcement resources in terms of its ability to enforce idling trucks and bus rules. This bill is consistent with one of the 2007 draft AQMP control measures to accelerate fleet turnover of heavy duty trucks. Board member Uranga asked staff why the Western States Petroleum Association (WSPA) was opposing this bill. Staff responded that they did not have WSPA’s proposed amendment but will transmit this information to committee members prior to the next committee meeting. The Legislative Committee approved staff’s recommendation to SUPPORT AB 233.

AB 493 (Ruskin) Motor Vehicle Greenhouse Gas Emissions: Incentive Program

Paul Wuebben, Clean Fuels Officer, provided the presentation on AB 493 as amended on April 11, 2007. Please refer to Attachment 2, AB 493 for AQMD staff analysis. This bill would establish a surcharge rebate program of up to $2,500 starting July 1, 2010 relative to the degree of greenhouse gas emissions of new vehicles and imposes a surcharge of up to $2,500 for new vehicles that emit higher volumes of these gases and pollutants. The bill would exempt diesel-powered motor vehicles that are purchased for public use (emergency or fleet vehicles) or for vehicles purchased by low income residents. Mr. Wuebben stated that the only conflict with this program is that there is no current prohibition on impacting criteria emissions, resulting in a potential backslide in Hydrocarbon and NOx emissions. Staff is recommending that the bill be amended to ensure that the Air Resources Board (ARB) maintains the program design to its full benefits of the Low Emission Vehicle Program for all vehicles and that no backsliding or loss of criteria emission benefits occurs for any pollutant. Committee Chair Carney asked staff to clarify the exemption of diesel powered vehicles. Mr. Wuebben stated that only diesel-powered motor vehicles for public or state emergency vehicles or low vehicle residents would fall under the exemption category. The Legislative Committee approved staff’s recommendation to SUPPORT AB 493 with amendment.

AB 631 (Horton) & recent Stanford Study

Paul Wuebben, Clean Fuels Officer, provided the presentation on AB 631 (Attachment 3) and the recent Stanford Study that was released by Dr. Jacobson. Please refer to Attachment 2, AB 631 and Comments on Jacobson’s Ethanol (E85) paper for AQMD staff analysis. The bill would require that new fueling stations provide E85 fuel after 2010. Committee Chair Carney asked if Dr. Jacobson was using the latest ARB certification numbers in his study. Mr. Wuebben stated that Dr. Jacobson is not using the ARB certification numbers and thus is not utilizing the latest model technology. At its April 13, 2007 meeting, the Legislative Committee adopted a support in concept position for AB 631. The support in concept position was considered by the Governing Board on May 4, 2007. The Board referred the bill back to the Legislative Committee, vacating the interim position. The Legislative Committee approved staff’s recommendation to ask a member of the legislature to conduct an informational hearing on ethanol as it relates to air quality. Staff will continue to watch AB 631.

AB 700 (Lieu) Air Pollution: Santa Monica Airport

Philip Fine, Atmospheric Measurements Manager, provided the presentation on AB 700, as amended on April 25, 2007. Please refer to Attachment 2, AB 700 for AQMD staff analysis. The bill would require ARB to complete a study of air pollution by jets and turbo-prop airplanes at the Santa Monica Airport to obtain data on aircraft idling and taxing aircraft operations. Staff is recommending that the bill be amended to ensure that ARB coordinates its study and monitoring efforts with AQMD, local community groups and the Santa Monica Airport authorities. The Legislative Committee approved staff’s recommendation to SUPPORT AB 700 with amendment.

H.R. 802 (Oberstar) To Amend the Act to Prevent Pollution from Ships to Implement MARPOL Annex VI [Attachment 4]

William Sanchez, Sr. Public Affairs Manager, provided the presentation on H.R. 802. Please refer to Attachment 4, H.R. 802 for AQMD staff analysis. Staff is recommending that the bill be amended to ensure that it is consistent with the AQMP and it continues to ensure that no other federal, state or local authority is preempted.

The Legislative Committee approved staff’s recommendation to SUPPORT H.R. 802 with amendments.

Update on Sacramento Legislative Issues [Attachment 5]

William Sanchez, Sr. Public Affairs Manager, reported that all but one of AQMD sponsored bills have moved out of the policy committees and are now in Appropriations or on their way to the respective floors of each House. Mr. Sanchez reported that SB 1028 (Padilla), Necessary Measures to Attain Clean Air Standards, was approved by the Senate Environmental Quality Committee and staff is now in negotiations with Appropriations to move it to the Senate Floor. Mr. Sanchez reported that AB 630 (Price), South Coast District Board, has been amended to restrict its applicability to AQMD. The bill was passed out of committee on a bipartisan basis and is on its way to the Assembly Appropriations. SB 886 (Negrete McLeod), Air Quality District Board was voted out of the Senate Local Government Committee and is in Senate Appropriations. The bill presently includes elimination of term limits for the chairs of the Mojave Desert , Sacramento District and South Coast District. The amendments regarding the expansion of the Governing Board which were approved at the regular meeting on May 4^th will be added to the bill once it is in the Assembly and once the new Eastern/Western realignment is determined. Mr. Sanchez reported that the author of SB 857 (Correa), Taxation: Credits: Air Pollution, has requested that the bill become a two-year bill pending more detailed language being submitted by the Tax Incentive Work Group. Staff is working with the Tax Incentive Work Group to produce a consensus proposal.

William Gonzalez, AQMD Sacramento lobbyist, reported that the Governor will be releasing the revised January state budget which includes revenues forecast that may not meet previous projections. The revised budget may be lean but potential impacts to AQMD have not yet been determined. Mr. Gonzalez reported that the Senate Appropriations Committee has decided to meet on May 21, 2007 regarding the Proposition 1B Infrastructure Bonds. The construction industry has increased its campaign efforts with Union support to not impose any restrictions on what types of construction equipment can be used on these projects. AQMD staff has been working with the PUC board and members of the Senate Committee to ensure environmental considerations remain in the Bond implementation.

Mr. Gonzalez reported that the Pension Reform Commission is currently under debate and is scheduled to release a policy proposal on the state pension obligations. The meetings have focused on reviewing the assumptions of each actuary analysis to determine the problem. Labor is well represented and they feel that the problem is skyrocketing healthcare costs while local governments are arguing that the unfunded obligations go beyond the healthcare component and what needs to be looked at is overall reform. Future meetings have not been scheduled. Committee Chair Carney asked if AQMD could introduce a bill to address its own retirement plan funding issues. Staff responded that the bill would need to be introduced in January 2008.

Update on Washington D.C. Legislative Issues [Attachment 6]

Anupom Ganguli, Assistant DEO/Public Affairs, reported on federal funding priorities for diesel emission reductions. Please refer to Attachment 6 for AQMD staff analysis. Andrew Kauders, AQMD Washington consultant, reported that while they are continuing to monitor the budget, there may be $20 billion above the present budget for discretionary spending which may translate into more resources for environmental compliance and energy conservation programs. Mr. Kauders reported that his office is tracking bills that are related to air pollution and is working with staff to determine what bills may materialize.

Mark Kadesh, AQMD Washington consultant, reported on the Chairman’s Initiatives and reaction to U.S. EPA’s Clean Diesel Locomotive and Marine Vessel draft rule.

Mr. Kadesh stated that he and AQMD staff have held discussions with Senator Boxer and Senator Feinstein’s staff to address AQMD’s concerns with U.S. EPA’s Clean Diesel Locomotive and Marine Vessel draft rule.

Report from AQMD Home Rule Advisory Group Committee [Attachment 7]

Please refer to Attachment 7 for written report.

Other Business:

Oscar Abarca reported that SCAG’s Regional Council has declared a state of emergency on air quality. SCAG has prepared an informational flyer and has asked AQMD to add its logo onto it. SCAG has adopted a support position on SB 1028 and AB 630. A delegation of SCAG Regional Council members including Mayor Ron Loveridge, Councilwoman Tonia Reyes Uranga and Supervisor Ovitt will be advocating support for these two bills in Sacramento on May 15, 2007. AQMD has also been asked to participate in a press conference with SCAG. Committee Chair Carney stated that the flyer also indicated that an air quality crisis summit has been scheduled for July 6, 2007.

Public Comments:

There was no public comment. The meeting was adjourned.

Attachments (EXE 2.93mb)

1. Attendance Roster
2. Recommended Position on Bills in the State Legislature
3. Recent Stanford Study on E85
4. Recommended Position on Bills in the Federal Legislature
5. Update on Sacramento Legislative Issues
6. Update on Washington D.C. Legislative Issues
7. Legislative Report from AQMD Home Rule Advisory Group