BOARD MEETING DATE: November 7, 2008 AGENDA NO. 28

BOARD MEETING DATE: November 7, 2008
AGENDA NO. 28

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, October 10, 2008. The next Legislative Committee meeting is scheduled for November 14, 2008 at 8:00 a.m. in Conference Room CC8. Staff reported on the legislative outcomes for 2008 and the committee additionally discussed the Goals & Objectives for the 2009 Legislative Agenda.

RECOMMENDED ACTIONS:

Receive and file this report.

Jane W. Carney, Chair
Legislative Committee

Background

Attendance [Attachment 1] The Legislative Committee met on October 10, 2008. Committee Members Jane Carney (Chair) and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Jan Perry, Tonia Reyes Uranga, and Roy Wilson were present via videoconference.

Update on Federal Legislative Issues

AQMD Consultant Mr. Mark Kadesh reported that given the election year politics and the financial crisis, all appropriations issues have been put off until after the election and probably into 2009.

Consultants and staff commented that there was a positive outcome in regard to solar tax credits. Solar tax credits for residential and commercial properties were extended for eight years. In addition, instead of a $2000 cap on the tax credits for residential solar power systems, the federal tax credit was expanded to cover up to 30 percent on such systems. For a top $40,000 rooftop solar system, this means the credit would be up to $12,000. This is a significant tax credit, representing approximately $3 billion over ten years.

Update on State Legislative Issues

AQMD Consultant Mr. Will Gonzalez updated the committee on state legislative issues. He noted that already there is an approximate $17 billion shortfall in the current State budget and the challenge for next year’s budget will only be worse.

AQMD’s sponsored bill, SB 1646 (Padilla) Clean Fuels Reauthorization, not only passed the legislature without amendment, but was signed by the Governor into law.

The landmark environmental legislation that was signed this year was Senator Steinberg’s SB 375 which focuses on housing and transportation planning decisions to reduce fossil fuel consumption and conserve farmlands and habitat.

On the other hand, the Governor vetoed Senator Lowenthal’s container fee bill, SB 974, which would have provided up to $400 million annually for congestion mitigation and air quality improvements. In his veto message the Governor cited three reasons for his decision:

No funding guarantee for San Joaquin Valley.
Insufficient guarantees that spending would be consistent with the State Implementation Plan.
Troubled state and federal economy.

Senator Lowenthal has indicated he would not re-introduce his legislation under the current administration.

Mr. Gonzalez additionally reported that the Governor signed AB 2522 by Assembly Member Arambula which allows the San Joaquin Air District to raise DMV vehicle fees by up to $30.00. In the following Committee discussion it was noted that the law had multiple implications for the AQMD. First, this may now be considered a feasible measure in terms of the federal attainment plan. Second, it could financially impact AQMD as San Joaquin could now take a larger share of state monies that require local matching funds. Committee Chair Jane Carney noted that first the San Joaquin Board had to impose the fee.

Dr. Anupom Ganguli noted that SB 1714 by Senator Negrete McLeod, the landmark solar bill this year at the state level, failed on concurrence. The bill would have required a feed-in tariff rate for all solar power generators 3 megawatts or less. The bill failed due to a late agricultural amendment added to the bill, but it will be reintroduced in 2009.

Mr. Gonzalez reported that CARB’s AB 32 scoping plan that was to be out Friday, October 3^rd, has been delayed.

Committee Discussion and Recommendations Regarding Augmentation of AQMD’s Legislative Goals and Objectives

Dr. Ganguli revisited the approved 2009 Legislative Goals and Objectives and asked the Committee if they wanted to add or modify any items. The Committee agreed that no changes were necessary and Dr. Lyou noted that the document was drafted sufficiently broad to protect the AQMD’s interests.

Dr. Wallerstein recommended and the Committee agreed to direct staff to secure a spot bill to respond to any unforeseen contingencies.

Dr. Lyou requested that the Legislative Committee be given an update after the election regarding its impact on the AQMD and its programs.

Dr. Wallerstein noted that Oscar Abarca and PomPom Ganguli were working on a document that will be presented to the Legislative or Administrative Committee detailing key recommendations to the new administration regarding air quality.

Execute Sole Source Contract for Legislative Representation in Sacramento.

Dr. Ganguli recommended to the Committee that the District enter into a sole-source contract with Joe A. Gonsalves & Son for additional legislative representation in Sacramento. In view of the ambitious legislative agenda, the bad economy and state budget, it will be difficult to move our agenda and significant resources will be needed to simply defend the District’s interests. The firm has over thirty years of experience and is well-respected by both sides of the aisle. In addition, they have a good working relationship with key state agencies and many cities and municipal associations throughout the state that we will have to work with to move the AQMD’s agenda forward.

Chair Carney inquired if we know whether Gonsalves & Sons have any ties to the San Joaquin Valley. Dr. Ganguli replied he knew of none.