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

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held a special meeting on Friday, August 31, 2007. The Committee considered the following items, for which it made recommendation for Board consideration.

RECOMMENDED ACTION:

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

Michael D. Antonovich, Acting Chair
Legislative Committee

Attendance [Attachment 1] The Legislative Committee held a special meeting on August 31, 2007 at 9:00 a.m. Committee Members Michael Antonovich and Jane Carney participated by phone; Committee Member Tonia Reyes Uranga participated via video teleconference; and Committee Member Joe Lyou was present. Supervisor Antonovich chaired the meeting.

General announcements

Oscar Abarca, Deputy Executive Officer, reported that the two AQMD sponsored bills, SB 1028 (Padilla) and SB 886 (Negrete McCloud), will be heard before the Assembly Floor and, if they pass, will be returned to the Senate Floor for concurrence.

Barbara Baird, Principal Deputy District Counsel, reported that the Honorable William B. Shubb from the federal court in Sacramento issued a ruling invalidating the CARB’s low sulfur diesel rule for marine vessels. Without this rule and CARB’s planned rule for marine vessel main engines, which would have been implemented within the next year, the AQMD will not meet the PM2.5 standard. Consequently, Senator Boxer’s Marine Vessel Emission Reduction Act of 2007 (S. 1499), which compels U.S. EPA to regulate the sulfur content in marine fuels, becomes even more important. At this time it is unknown, whether CARB intends to appeal the ruling.

Recommended Position on SB 411 [Attachment 2]

Ms. Jill Whynot, Planning and Rules Manager, provided the presentation on SB 411 as amended on July 17, 2007. Please refer to Attachment 2, SB 411 for AQMD staff analysis. Staff is recommending support with clarification. Ms. Whynot stated that the bill does not clearly state that the large municipality owned power plants fall under this bill, thereby not maximizing the opportunities to increase the renewable portions of their sales. Committee Member Lyou stated that the intent of the bill was to explicitly exclude the municipalities and that he would support efforts to ensure that large municipalities are included in the bill. The Legislative Committee approved staff’s recommendation to Support SB 411 and work with the author.

Proposed Emergency Air Quality Legislation [Attachment 3]

William Sanchez, Sr. Public Affairs Manager, provided the presentation on the proposed California Emergency Air Quality Task Force legislation. Please refer to Attachment 3, California Emergency Air Quality Task Force legislation for AQMD staff analysis. This bill would establish the California Emergency Air Quality Task Force, composed of 17 members representing air districts (including SCAQMD), public health groups, CARB and the regulated sectors. Mr. Sanchez stated that the primary purpose of the proposed legislation would be to establish a statewide funding strategy focusing on incentive-based programs. The two primary authors of the proposed legislation are Assembly Member DeSaulnier and Senator Florez. The proposed legislative concept has been approved by Speaker Nunez and there appears to be a wide base of support from both the environmentalists and the regulated sectors.

Committee Member Jane Carney queried whether the legislation was directed towards establishing the statistical and analytical background for a potential air quality bond issue. Will Gonzalez, AQMD Sacramento lobbyist, stated that the key component of the bill is to determine the potential funding sources and options and then provide a recommendation to legislative committees. Committee Member Lyou requested staff to amend the motion to include a provision where ranking would be based upon the maximization of public health gains in addition to cost effectiveness and feasibility. The Legislative Committee approved staff’s recommendation to support with amendment.

General Sacramento Update

Committee Member Reyes Uranga requested clarification regarding the status of Senator Lowenthal’s Container Fee Bill, SB 974. Will Gonzalez reported that the Bill passed out of the Assembly appropriations committee the evening before without the amendments requested by the City of Los Angles to have the container fees fund the replacement of two bridges in the harbor.

Committee Member Reyes Uranga requested clarification regarding trailer bill AB 201 and its impacts to the railroads. Mr. Gonzalez stated that the bill allowed railroads to access funding for the retrofit of locomotives, even if they already signed onto any agreements as long as the emissions were not necessary to meet the requirements of the MOU. Without that provision, the railroads would have been excluded from using any of the Proposition 1B funding for retrofits.

Mr. Gonzalez stated that the remaining bond bills are being actively negotiated in the Legislature. SB 9 (Lowenthal) was held in Assembly Appropriations Committee and AB 995 (Nava) was vote out of the Senate Appropriations Committee. With one week remaining, there is a large gap between the House and the Senate on how to move forward on the bills. Mr. Gonzalez stated that SB 9 includes provisions relating to railroads that would allow access to funding and set criteria for them to have the cleanest locomotives. Mr. Gonzalez stated that the railroads have successfully convinced both the Assembly and Senate that any requirements of the railroad to access the TCIF would result in their non participation. As a result, the Senate has removed all criteria on the railroad in SB 9 and the railroads continue to oppose any inclusion in AB 995. AQMD continues to lobby that language be included requiring railroads to use Tier 4 locomotive engines if they access the bond funds.

Public Comments: None

Attachments (exe 64kb)

1. Attendance Roster
2. Recommended Position on SB 411
3. Proposed Legislation