BOARD MEETING DATE: May 2, 2008
AGENDA NO. 25

RECOMMENDED ACTIONS:

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

Jane W. Carney, Chair
Legislative Committee

Background

Attendance [Attachment 1] The Legislative Committee met on April 11, 2008. Committee Members Jane Carney (Chair) and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Tonia Reyes Uranga, and Dr. S. Roy Wilson were present via videoconference.

Legislative Overview

Oscar Abarca, Deputy Executive Officer, updated the Committee on AQMD’s sponsored bill, SB 1646 (Padilla): Clean Fuels Reauthorization, which removes the sunset on AQMD’s authority to levy a $1 fee on motor vehicles registered in the District to fund the Clean Fuels Program. He reported that Senator Torlakson, Appropriations Committee Chair, had ruled the bill eligible for Section 28.8 which means that it has no significant state costs and the Committee would waive jurisdiction and move the bill directly to the Senate Floor.

Regarding the Marine Vessel Emissions Reduction Act (MVERA), Mr. Abarca stated that Senators Carper and Clinton are now co-sponsors of the bill. In addition, the Ports of New Jersey and New York also support the bill with letters on file. Mr. Abarca thanked the American Lung Association for their efforts in generating more support for the MVERA in Delaware, Virginia, Washington, and other areas.

Mr. Abarca also reported on the well-received goods movement presentation given by Peter Greenwald, Senior Policy Advisor, during an annual advisory group meeting of the New Jersey Environmental Protection Agency.

Mr. Greenwald reported that the International Maritime Organization’s (IMO) Marine and Environmental Protection Committee voted to propose emission standards for marine vessels to be considered in October 2008. The proposed emission standards are stringent; however, the implementation date is later than necessary to reach attainment. Nevertheless, the IMO’s proposal has shifted the focus of discussion to expediting reductions rather than their feasibility. Dr. Barry Wallerstein, Executive Officer, emphasized that much effort is still required to attain AQMD’s goals in spite of the remarkable progress with IMO negotiations.
 

Update on Federal Legislative Issues

Mark Kadesh, AQMD federal legislative consultant, reported on the status of the MVERA. The U.S. Environmental Protection Agency currently maintains a “no position” on MVERA. Senator Boxer is strongly committed to moving this bill forward.

Chris Kierig, AQMD federal legislative consultant, updated the Committee on the status of the Lieberman-Warner bill. He reported that the bill would be taken up on the floor on June 2 or 3. In light of the upcoming elections, Mr. Kierig and Mr. Kadesh do not anticipate enough votes either in the U.S. Senate or in the House of Representatives during this legislative cycle.

Concerning appropriations requests, Mr. Kierig stated that all have been submitted. Passage is not expected to occur, if at all, until close to the end of the year given the dominance of the Iraq bill on Capitol Hill and the distraction of the upcoming elections.

Chair Carney noted how this is the best we have been positioned in Washington D.C. that she can recall and noted how we were advancing substantive legislation and getting results.
 

Update on State Legislative Issues

Will Gonzalez, AQMD state legislative consultant, updated the Committee on leadership changes, the budget, Proposition 1B funding, and solar energy legislation in the Capitol. Assembly Member Mark DeSaulnier replaced Assembly Member Pedro Nava as the Chair of the Assembly Committee on Transportation. Assembly Member Karen Bass, Speaker-elect of the California Assembly, is expected to take the Speakership as early as May 13, 2008.

With respect to the budget, it is a relatively slow period. On the spending side, the legislature is rejecting most of the Governor’s cuts and on the revenue side of the equation, no actions are anticipated before early Summer.

Mr. Gonzalez further notified the Committee that the still poorly defined “Public and private partnership” concept was gaining traction as a partial solution to the budget deficit. The Governor, the California Transportation Committee (CTC), and private industry are advancing the concept in the context of roadways and toll lanes.

The CTC programmed $4.1 billion for the Trade Corridor Improvement Fund (TCIF) of which $1.65 billion are allocated to Southern California. Grade separation projects will receive most of this funding. Mr. Gonzalez noted that the projects included the Colton Crossing, but not the expansion of either the Union Pacific or BNSF International Gateway yards.

Mr. Gonzalez further reported that the CTC made clear that the railroads would have to approve projects on their lines. Dr. Barry Wallerstein, Executive Officer, noted that the railroads might use their role in the grade separations process to leverage approval of their railyard expansion projects. Environmental justice and environmental organizations are also concerned about programming project funding prior to environmental review.

Chair Carney directed District Counsel to study the process requirements to ensure that decisions are truly vetted in public, rather than being privately negotiated and then merely ratified at a public forum.

Dr. Wallerstein commended staff especially Henry Hogo, Mr. Greenwald, and AQMD consultant Mr. Gonzalez for their TCIF efforts and the progress thus far with the CTC. For example, the screening tool used by the CTC to evaluate projects was developed by AQMD staff and is now also being used by other agencies and out-of-state entities.

With respect to solar energy legislation, Mr. Gonzalez stated that there are an unprecedented number of bills being introduced. He characterized the bills as either further incentivizing, facilitating or removing regulatory impediments to increased solar power energy. In addition, he noted a proposed ballot initiative for the November 2008 elections that would increase the renewable portfolio standards to 50% by 2020.

Dr. Lyou raised some concerns regarding legislation identified as Bills of Interest in Attachment 2. Specifically,

AB 616 (Jones) Annual Smog Check; Repair Assistance: Dr Lyou inquired whether there were any provisions in the bill to provide assistance to low income vehicle owners. Staff affirmed that the bill provides for monetary assistance to residents with a household income below three times the federal poverty level.

AB 700 (Lieu) Santa Monica Airport: Dr. Lyou noted that the study and report required in the legislation should be done in conjunction with the Los Angeles Airport. Dr. Lyou further requested that the bill be brought to the next meeting of the Legislative Committee for action.

AB 1077 (Lieber) CARB: Plug-in hybrid element: Dr. Lyou requested staff to recommend to the author changing the term “citizens” to “residents” given the large number of non-citizens that comprise a significant portion of the population in the region.

AB 1209 (Karnette) State Air Resources Board: Emission reduction: Dr. Lyou requested that the bill also require that the public health impacts be a criteria in the allocation of Proposition 1B funding.

Recommended Positions on State Bills [Refer to Attachment 3 for additional information]

Chair Carney pulled AB 2269 (Fuentes) and SB 1714 (Negrete-McLeod) from the Committee agenda because of the substantial redrafting of the bills from their current version. Mr. Abarca summarized the staff analyses and recommendations for the following bills.

AB 2216 (Gaines) Health Facilities: Backup Generators

Health and Safety Code § 41514.1 requires the weekly testing of backup diesel generators at hospitals. This bill extends the code section’s January 1, 2009 sunset date by two years until January 1, 2011. The bill additionally reduces the testing requirement from once a week to once a month. This bill was brought before the Committee at the request of the Hospital Association. Staff recommended a position of support because the reduction in unnecessary run time for diesel backup generators will reduce diesel emissions and reduce toxic risk to the surrounding area.

The Legislative Committee voted to support AB 2216 according to staff recommendations.

AB 2991 (Nunez) Air Pollution: Research

The Speaker’s bill expands the California Air Resources Board’s (CARB) Research Screening Committee from 9 to 11 members, adding individuals with expertise in the field of climate change. Staff recommended a position of support because the new expertise to be brought to the Research Screening Committee is not only appropriate, but also necessary given CARB’s expanded mission under the Global Warming Solutions Act.

The Legislative Committee voted to support AB 2991 according to staff recommendations.

AB 2560 (Lieu) Medium- and Heavy-Duty Vehicles

As already required for light-duty and passenger vehicles, this bill requires state agencies to rank the environmental and energy benefits and costs of medium- and heavy-duty vehicles for potential procurement by state and local governments. Staff recommended a position of support given the bill’s impetus for the accelerated utilization of clean fuel vehicles.

The Legislative Committee voted to support AB 2560 according to staff recommendations.

AB 2638 (Coto) Motor Vehicle Purchase Fees: Mitigation Programs

This bill sets up a one-time fee on the purchase of new motor vehicles weighing 10,000 pounds or less that cost $80,000 or more and have a fuel economy rating of 15 miles per gallon or less. Monies raised would finance projects and programs that will mitigate or prevent air pollution harm caused by vehicles subject to the fee. Staff noted that the bill could encourage automobile buyers to purchase cleaner vehicles and also encourage manufacturers to offer more low emitting vehicles. However, staff suggested that the bill should be amended to exempt vehicles certified on a clean alternative fuel, such as CNG, and demonstrate a full life-cycle benefit as compared to conventional fuels. Staff also suggested that the bill be amended such that monies raised should be allocated to the air district jurisdiction where the vehicles are sold.

During the discussion, Dr. Wilson questioned why the bill’s applicability was limited to vehicles worth $80,000 or more. Dr. Wallerstein replied that it is an extreme greenhouse gas emissions provision similar to federal “gas-guzzler” legislation.

Staff recommended a position of support if amended.

Legislative Committee voted to support, if amended according to staff recommendations.

SB 375 (Steinberg) Transportation planning: travel demand models

SB 375 makes numerous changes with respect to regional transportation and land use planning with the overall goal of reducing greenhouse gas emissions attributable to the transportation sector. Both the Committee and the Governing Board had originally approved a position of support with amendments. The suggested amendments generally restored CEQA protections that the bill had weakened or made more flexible.

The position letter was presented to Senator Steinberg and the requested amendments were discussed with his staff. The Senator and his staff took the amendments under consideration, but admitted that they could not be accepted at this time without unraveling months of negotiations with the many parties in support of the bill. Consequently, the Senator requested that AQMD consider a simple position of support instead.

Dr. Lyou disagreed with a position of support for the bill. He expressed concerns about potential impacts on the inner city, proposed reduction of CEQA protections relevant to air quality and traffic mitigation.

Staff emphasized that a position of support would not impede their ability to continue to work with the author.

A majority of the Legislative Committee voted to support SB 375. The Committee further directed the staff to continue to work with the author to address outstanding concerns.

William Sanchez, Senior Public Affairs Manager, presented the following two bills for consideration by the Committee.

AB 2179 (Furutani) Air Quality Renewable Diesel Fuel

This bill mandates state diesel vehicles to use at least 20% by volume (B20) renewable biodiesel starting in 2009 for vehicles purchased that year, and 2014 for vehicles purchased prior to 2009. Staff suggested the following amendment on page 3, line 14 (in italics):

(2) The state board finds in a public hearing that the use of renewable biomass-based diesel fuel will not result in any increase in emissions of air pollutants, including local emissions of oxides of nitrogen or toxic air contaminants, based on a full life cycle analysis that quantifies and takes into account the emissions from the production, distribution, sale, and use of the fuel.

Staff recommended a position of support with amendment given the substantial safeguard provided by the provisions against any criteria pollutant backsliding.

However, Chair Carney advocated that AB 2179 does not have significant emissions reduction and potentially could have a negative impact on air quality and further bolster the use of diesel engines. Staff noted that a position of support if amended with the additional safeguard for NOx emissions would be consistent with the policy behind AB 32, the Global Warming Solutions Act. It provides for a greenhouse gas strategy while preventing any backsliding for criteria pollutants.

The Legislative Committee rejected the staff recommendation and instead voted to adopt a position of work with the author.

AB 2240 (Tran and Price) Use Fuel Tax: Exemption: Biodiesel

AB 2240 would provide an exemption from the excise tax for biodiesel manufactured in the state with California feedstock and require the California Energy Commission, in cooperation with the Board of Equalization, to oversee the tax incentive program. The bill also requires a report on the impact of the tax exemption on biodiesel consumption, economic benefit to the state, and the amount of greenhouse gas reductions. Staff additionally suggested that the required report also include a calculation and assessment of any increases in oxides of nitrogen and its impact on the attainment of federal clean air standards.

Staff recommended a position of working with the author because without more stringent safeguards, the legislation could result in an increase of oxides of nitrogen.

The Legislative Committee voted to adopt a position of work with the authors according to staff recommendations.

Chair Carney requested AB 1920 (Huffman), AB 2180 (Lieu), AB 2791 (Blakeslee), AB 2804 (Hayashi), and SB 1012 (Kehoe) to be brought back for consideration during the next meeting.
 

Public Comment

Regarding grade separations and locomotives, Sarah Weldon, representative of the Association of American Railroads, pointed out that grade separations do not result in increased locomotive speed. In response, Dr. Wallerstein cited downtown Riverside as an example where there are pedestrians and cars at grade with the rail line and queried whether there really is no difference on the operating speed of locomotives if vehicles and pedestrians are present at grade.

Ms. Weldon responded that she is unfamiliar with the designated speeds of locomotives in urban areas, but that she was certain that the presence of vehicles and pedestrians at grade did not impact the locomotive’s speed.

Regarding biofuel legislation, Greg Adams, a representative of the Los Angeles County Sanitation District, requested a Governing Board policy with respect to projects using alcohol-based fuel and biofuels.
 

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

Please refer to Attachment 4 for a written report.
 

Attachments (exe 1184 kb)

1. Attendance Roster
2. AQMD 2007 – 2008 Legislative Bills of Interest
3. AQMD Legislative Analysis Summary & Bill Language: AB 2216, AB 2991, AB 2560, AB 2638, SB 375, AB 2179, AB 2240
4. Legislative Report from AQMD Home Rule Advisory Group