BOARD MEETING DATE: June 6, 2008
AGENDA NO. 31

The Legislative Committee convened on Friday, May 9, 2008. The next Legislative Committee meeting will be held on Friday, June 13, 2008 at 8:00 a.m. in Conference Room CC8. The Committee conferred on the following state bill for Board consideration:

 

Bill/Title	Recommended Position
AB 2009 (Hernandez and Huff) Utility User Taxes: Exemption: Natural Gas	Support

RECOMMENDED ACTIONS:

Receive, file this report, and adopt a position on the bill as specified in this letter.

Jan Perry, Vice Chair
Legislative Committee

Attendance [Attachment 1] The Legislative Committee met on May 9, 2008. Committee Members Jan Perry and Michael Antonovich participated via videoconference. Vice Chair Jan Perry acted as Chair in Jane Carney’s absence. Committee Member Dr. Joseph Lyou was present. Dr. S. Roy Wilson was present (but not participating) by phone. Acting Chair Jan Perry appointed Governing Board Member Dennis Yates, who was present, to the Legislative Committee for this meeting.

Legislative Overview [Attachment 2]

Oscar Abarca, Deputy Executive Officer, updated the Committee on key legislation in Sacramento.

SB 1646, AQMD’s sponsored bill regarding the Clean Fuels Program, continues its progress. Last week this bill was voted off the Senate Floor and is currently in the Assembly Rules Committee pending referral to an Assembly Policy Committee.

Mr. Abarca further informed the Committee that Senator Florez and Assembly Member Arambula have committed to remove provisions in SB 240 and AB 2522, respectively, which could have allowed the San Joaquin Valley Air Pollution Control District to receive a portion of motor vehicle fees paid by vehicles registered within AQMD jurisdiction.

Assembly Member De Leon has agreed to drop his bill, AB 2865, in its current form which would have increased Carl Moyer multi-district funding from 10 to 20 percent - to the detriment of this region.

Update on Federal Legislative Issues

Mark Kadesh, AQMD federal legislative consultant, reported on the progress of S 1499/HR 2548, the Marine Vessel Emissions Reduction Act (MVERA). On May 14, the bill will be marked up in the U.S. Senate Committee on Environment and Public Works (EPW). AQMD staff is collaborating with the EPW Committee and the Senator’s staff in preparation for the hearing.

Mr. Kadesh commented that progress on all appropriation bills is now at a standstill and will probably not resume until after the presidential elections.

Update on State Legislative Issues

Will Gonzalez, AQMD state legislative consultant, updated the Committee on key Sacramento issues.

Concerning the state budget, the Governor’s “May Revise” will be presented by next weekend. A budget shortfall of $16 to $20 billion is expected. Thus far, the California Air Resources Board’s (CARB) budget is intact.

With regard to solar legislation, Mr. Gonzalez further reported that AB 1920 (Huffman), Solar and Wind Generating Resources: Net Metering, and SB 1714 (Negrete McLeod), Renewable Electric Generation Facilities, seem to be the two key bills that will address net metering and tariff rates, ensuring reimbursement to customer-producers for their surplus energy. Negotiations with the utility companies are ongoing.

Regarding the railroad negotiations about accessing Proposition 1B funding, Mr. Gonzalez and Barbara Baird, Principal Deputy District Counsel, have been advocating an open negotiation process with state officials. Acting Chair Perry recommended that the Committee should have a strategy to ensure negotiations with the railroad are public and on record. She noted that private negotiations are much less effective.

Recommended Position on State Bill AB 2009 (Hernandez and Huff) Utility User Taxes: Exemption: Natural Gas [Attachment 3]

Mr. Abarca explained that AB 2009 would exempt the consumption of natural gas by a public transit operator for public transportation purposes from any utility user’s tax (UUT) imposed by any local agency. This legislation is a clarification to existing law that intends to put natural gas on par with diesel fuel that is already exempt from utility taxes. Staff recommends a position of support for this bill since local utility taxes should not be a disincentive for the broader use of clean fuels.

Board Member Yates inquired if the bill identified only natural gas use for mobile sources. Mr. Abarca replied that AB 2009 is intended for transit operations, not domestic fuel consumption.

In reply to Board Member Yates’ further inquiry, Mr. Abarca stated that the California League of Cities does not have a position on the bill at this time.

The Legislative Committee unanimously voted to support AB 2009 according to staff recommendations.

Other Business

Mr. Abarca commented on a meeting that occurred on May 3, 2008 between Senator Boxer, Governing Board Chairman William Burke, and Dr. Barry Wallerstein, Executive Officer. Senator Boxer remains firmly committed to MVERA, moving it out of the EPW Committee, and resolving differences with shipping industry stakeholders.

Public Comment

None

AQMD Home Rule Advisory Group Committee Legislative Report [Attachment 4]

Please refer to Attachment 4 for a written report.

Attachments (exe 271KB)

1. Attendance Roster
2. 2007 – 2008 Legislative Session Bills with AQMD Position, AQMD 2007 – 2008 Legislative Session Bills of Interest, AQMD 2007 – 2008 Inactive Bills
3. AQMD Legislative Analysis Summary & Bill Language: AB 2009
4. Legislative Report from AQMD Home Rule Advisory Group