BOARD MEETING DATE: MARCH 7, 2008 AGENDA NO. 27

BOARD MEETING DATE: March 7, 2008
AGENDA NO. 27

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, February 8, 2008. The Committee approved AQMD’s FY 2009-10 Federal Appropriation requests. The next Legislative Committee meeting is scheduled for Friday, March 14, 2008 at 8:00 a.m. in Conference Room CC-8.

RECOMMENDED ACTIONS:

Approve the Committee’s recommendation for AQMD’s FY 2009-10 Federal Appropriation requests, and receive and file this report.

Jane W. Carney, Chair
Legislative Committee

Attendance [Attachment 1] The Legislative Committee met on February 8, 2008. Present were Committee Members Jane Carney (Chair) and Dr. Joseph Lyou. Present, by videoconference, were Committee Members Jan Perry (Vice Chair), Michael Antonovich, Tonia Reyes Uranga, and Dr. S. Roy Wilson.

Update on State Legislative Issues

William Sanchez, Senior Public Affairs Manager, stated that Legislative Counsel is two weeks behind schedule in processing requests for language for new and amended bills. There are two dozen new bills, of which two are air quality related. Regarding bills that have AQMD’s support, AB 218 (Saldana) which would have required a smog certificate to be filed prior to the registration of a vehicle, and AB 493 (Ruskin) which would have provided for incentive rebates for low-emission cars, failed to leave their house of origin.

Mr. Sanchez also reported that staff is continuing to monitor Senator Lowenthal’s container fee bill (SB 974). He noted that negotiations between the author’s office and the Administration are ongoing. Mr. Sanchez further clarified that the recent container fees passed by the ports are temporary and limited to funding projects within the ports themselves. By contrast, SB 974 is an opportunity to fund needed regional infrastructure and emission reductions projects. Assembly Member Warren Furutani is considering the introduction of legislation which would end sales tax exemptions on the sale of bunker fuel.

Dr. Wallerstein, Executive Officer, stated that a container fee bill has been introduced by Congressman Ken Calvert. Mark Kadesh, AQMD legislative consultant, said that the bill is called the “On Time Act” which is co-sponsored by Congressman Jesse Jackson, Jr. Mr. Kadesh said that they will schedule a visit with Congressman Calvert when the AQMD Governing Board Members visit Washington, D.C.

Committee Member Dr. Joseph Lyou requested that staff provide more information on SB 375 (Steinberg). He is interested in localized impacts, assertions about saving vehicle miles traveled, and environmental justice implications to inner-city communities. Dr. Wallerstein said that this is an important bill and it will be added to the agenda for the next Legislative Committee meeting.

Will Gonzalez, AQMD legislative consultant, reported on Proposition 1B. He said that trade corridor transportation projects have been submitted. All projects submitted were part of the Southern California consensus with the exception of one which is a project submitted by Caltrans in partnership with BNSF and Union Pacific Railroads regarding the Colton Crossings Flyover, which is a $74 million project. Public comments are expected by February 19, and the California Transportation Commission is expected to act on the projects on April 10.

Regarding air quality funds, the draft guideline and funding target have been announced and will be finalized at the February 28 CARB meeting. At this time, AQMD is expected to receive 55% of the funding; however, San Joaquin Valley APCD is seeking to reduce AQMD’s share to 43% ($120 million reduction). Dr. Wallerstein said that he will be attending the CARB meeting.

Regarding the school bus funding, Mr. Gonzalez said that AQMD is expected to receive $22.5 million for FY 2008-09 and $22.5 million for FY 2009-10. The guidelines are expected to be similar to the previous year, and should be approved in March.

Mr. Gonzalez said that there are three potential solar energy bills that deal with the same subject, and are all taking a different approach. The utilities want full ownership of renewable energy credits, and the environmental industry wants the ownership to be shared. Initially there has been support from leadership on both sides for this issue, and he said that he would expect to see legislation this year. Committee Member Roy Wilson stated that this legislation should be watched closely.

Update on Federal Legislative Issues

Mr. Kadesh reported that Oscar Abarca, Peter Greenwald and he met in Washington, D.C. in preparation for the Governing Board Member visits. The topics that they discussed included:

Appropriations issues;
Marine vessel legislation; and
Introduction of legislation on regulation of locomotives.

With regard to Item No. 2, the Senate Environment and Public Works Committee will be holding a hearing on this legislation on February 14, and Dr. Wallerstein will be testifying.

Federal Appropriations Requests [Attachment 2]

Dr. Pom Pom Ganguli discussed FY 2009-10 proposed federal appropriation requests that will also be used in preparation of the Governing Board Member visits to Washington, D.C. in late February. The seven appropriation requests that Dr. Ganguli discussed were:

Continuation of Diesel Emissions Reduction Program;
Electric Yard Hostler for Goods Movement;
Heavy-Duty Hydraulic Hybrid Vehicles;
Enhanced Public and Interagency Communications during Wildfire Events;
Advanced Technology Demonstrations at Military Installations;
Renewable Energy Projects; and
Plug-in Hybrid Electric Vehicle Program.

Dr. Wallerstein and AQMD Consultant, Mark Kadesh, both noted that it would be highly unlikely for all of these requests to successfully make it through the appropriations process, in view of the budget outlook and the expressed sentiments against earmarks.

Dr. Wallerstein informed the committee that AQMD has received notice from the Department of Energy, that AQMD is in line to receive funds on the plug-in hybrid request. [Refer to Attachment 2 for additional information on this item.]

The committee approved the FY 2009-10 Federal Appropriation Requests.

Update on AB 846 (Blakeslee): Clean Marine Fuels Tax Incentive Act/Existing California Tax Exemption for Bunker Fuel [Attachment 3]

Pursuant to a request by Board Member Tonia Reyes Uranga at the January committee meeting, staff provided the committee with a written report on AB 846. The bill failed to pass the appropriations committee, and is no longer active.

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

Please refer to Attachment 4 for a written report.

Other Business

Mr. Abarca reported that AQMD’s annual legislative briefing in Sacramento took place and was well attended by multiple legislative offices, and committee staff. Comments received from those in attendance were all very positive.

BOARD MEETING DATE: March 7, 2008 AGENDA NO. 27

BOARD MEETING DATE: March 7, 2008
AGENDA NO. 27