BOARD MEETING DATE: September 7, 2007
AGENDA NO. 30

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, July 20, 2007. The next Legislative Committee meeting is scheduled for Friday, September 14, 2007 at 8:00 a.m. in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file this report.

S. Roy Wilson, Ed.D., Acting Chair
Legislative Committee

Attendance [Attachment 1] The Legislative Committee met on July 20, 2007. Committee member Roy Wilson was present, by videoconference and served as the chair of the meeting. Also present at the meeting were committee members Joe Lyou (in person) and Jane Carney (via telephone conference call).

Update on Washington D.C. Legislative Issues

Andrew Kauders, AQMD Washington D.C. consultant, reported on appropriation matters. In the House of Representatives, the $1 million AQMD allocation for a Plug-in Hybrid Electric Vehicle (PHEVs) Demonstration program has passed both the full committee and the house floor. This bill is expected to go to the conference committee after their August recess. On the Senate side, he reported that Senator Feinstein has put forward $7.5 million as part of the Diesel Emissions Reduction Act. Senate floor action has not been scheduled, but expected prior to their August recess.

Regarding climate change legislation, Mr. Kauders said that members of congress and their staff believe that this issue will be addressed later in the fall. At this time, it is not clear if the legislation will be a cap-and-trade bill or a comprehensive climate change bill.

He also reported that he is continuing to monitor legislation that has been introduced by Senator Inhofe and which is similar to legislation previously introduced by the Senator. He believes that this legislation would undermine climate change and clean air efforts. Although this bill is not expected to go anywhere since the Democrats schedule all legislation, and there will be no time on the senate floor to address this bill, he will still continue to monitor.

Mark Kadesh, AQMD Washington D.C. consultant, reported that as an update to the series of meetings with staff and Board Member Tonia Reyes Uranga in Washington, there are now nine co-sponsors of the Marine Vessel Emission Reduction Act. He also reported that there are others that have expressed a strong interest of support. The next step for this legislation is for a hearing in the Environmental and Public Works Committee. Senator Boxer has agreed to do a field hearing at the Port of Los Angeles currently scheduled for August 9.

Jane Carney thanked both consultants for their reports and their great work. She said that AQMD is making significant progress on items that are of interest to AQMD.

Joe Lyou said that he has been working on LAX issues ensuring that modernization projects are going forward, and are as clean as possible. He said that the Federal Aviation Administration has cut funding from NASA’s budget for jet engine research and development, and asked if the consultants could make some inquiries. Mr. Kadesh said that he would work with Mr. Kauders and would report to staff their findings.

Update on Sacramento Legislative Issues [Attachment 2]

William Sanchez, Senior Public Affairs Manager, reported on AQMD’s key sponsored bills and updated the Committee on other bills that the Committee and Board had previously taken a position on.

Sponsored Bills:

• SB 886 has passed all policy committees and is scheduled for appropriations on August 22.
• SB 1028 has passed all policy committees and the Assembly Appropriations and is expected to go to the floor soon.

Other Bills with AQMD Positions:

William Sanchez reported that every bill that the AQMD had taken a position of oppose had already failed. On several other bills the Committee was supportive, but had some outstanding concerns. Consequently, the Committee voted for either a position of support in concept, support with amendments, or support with clarifications. Staff reported that in each such instance, amendments were accepted that substantially addressed the Committee’s concerns.

Mr. Sanchez noted that recurring issues have included ensuring AQMD’s eligibility under various funding streams and ensuring that the various bills related to greenhouse gases do not permit backsliding on criteria pollutants.

Board member Joe Lyou had a question regarding the process for legislation that AQMD is seeking amendments or changes to. He asked if AQMD’s position automatically changes to a “support position” if such concerns are addressed.

Mr. Sanchez replied that it depends on the position the Board has adopted. For example, if the position is support, if amended, and AQMD’s amendments have been accepted, the policy consultants know that they will list AQMD as supporting the legislation.

William Gonzalez, AQMD Sacramento Consultant, reported the state budget has been approved by the Assembly, but the Senate still needs to take a vote, and the budget may be approved almost at the end of the deadline.

He also reported that the bond implementation criteria for spending funds from Proposition 1B (originally in the budget), will now be in the form of legislation. At this time, there are several bills, senate and assembly versions, that are active, and which will eventually become one bill. CARB will be required to prioritize the spending on projects that are near trade corridors, and goods movement facilities, with an emphasis on emission reductions, exposure, and health impacts. The two bills AQMD is following are SB 9 and AB 995.

Staff has been actively engaged in working with interested parties regarding the requirement that clean construction equipment is used on bond-funded projects. In addition, Mr. Gonzalez said that CARB has been working on a statewide rule on construction equipment. The legislature is moving $200 million out of the $1 billion for air quality to be utilized for CARB’s next fiscal year.

Regarding the Governor’s Employee Post Retirement Commission, the commission has conducted a statewide survey of all public employee pensions (state, local and special districts), and have found that the pensions, for the statewide average, are funded at about 89% level, which is a shortfall of $63 billion. The commission has now established the parameters of the issues they will be dealing with statewide. They have scheduled a hearing later in the month in San Diego, and will be looking mostly at school employees. It is likely that the commission will make recommendations, and will follow-up with legislation the following year. The commission has prepared an initial report, which he will leave with staff. Board member Jane Carney requested that she be provided a copy of the report.

He also reported that Assembly Member Mark Desaulnier is considering introducing legislation that would require a comprehensive review of the air quality gap problems in the state and to explore funding options. The Governor has appointed Mary Nichols to chair CARB, and during her confirmation hearing, she made positive comments about wanting to improve the working relationship and coordination with air districts.

Report from AQMD Home Rule Advisory Group Committee [Attachment 3]

Please refer to Attachment 3 for written report.

Closing Comments:

Oscar Abarca, Deputy Executive Officer, expressed his appreciation to Board Member Tonia Reyes Uranga, Peter Greenwald, Senior Policy Advisor and Barbara Baird, Principal Deputy District Counsel, for their contributions to the success achieved in Washington D.C.

Barry Wallerstein acknowledged and thanked Barbara Baird who has been AQMD’s principal witness in Sacramento.

Other Business: None

Public Comments: None

Attachments (exe 81kb)

1. Attendance Roster
2. Update on Sacramento Legislative Issues
3. Legislative Report from AQMD Home Rule Advisory Group