BOARD MEETING DATE: September 5, 2008
AGENDA NO. 33

REPORT:

Legislative Committee

SYNOPSIS:

The Legislative Committee held its regular meeting on Friday, July 18, 2008. The next Legislative Committee meeting is scheduled for September 12, 2008 at 8:00 a.m. in Conference Room CC8. The Committee discussed Proposition 1: Safe Reliable High-Speed Passenger Train Bond Act for the 21st Century, Proposition 7: Renewable Energy, Proposition 10: Bonds – Alternative Fuel Vehicles and Renewable Energy, as advisory items. The committee additionally discussed principles to guide staff actions with respect to the anticipated 2009 Federal Surface Transportation Reauthorization Bill.

RECOMMENDED ACTION:

Receive and file this report.
 

Jane W. Carney, Chair
Legislative Committee

Attendance [Attachment 1] The Legislative Committee met on July 18, 2008. Committee Members Jane Carney (Chair) and Dr. Joseph Lyou were present. Committee Members Michael Antonovich, Jan Perry, Tonia Reyes Uranga, and Dr. S. Roy Wilson were present via videoconference.

Legislative Overview
Dr. Anupom Ganguli, Assistant Deputy Executive Officer, reported 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 to fund the Clean Fuels Program. Dr. Ganguli reported that the bill would next be acted upon during the Assembly Appropriations suspense hearing of August 7, 2008. It is anticipated that the bill will be voted out of Assembly Appropriations Committee and will progress to the Assembly floor. Assemblymember Ted Lieu has agreed to present our bill on the floor.

Update on Federal Legislative Issues
Chris Kierig, AQMD federal legislative consultant, presented the federal legislative update. The Maritime Pollution Prevention Act of 2007, HR 802 (Oberstar), has passed the U.S. Senate and is waiting for the President’s approval by August 24, 2008. The negotiations on the International Convention for the Prevention of Pollution from Ships are scheduled for October 2008. Dr. Wallerstein, Executive Officer, explained that this legislative progress is a significant step in the right direction; however, it was not enough to meet our State Implementation Plan needs. The California Air Resources Board (CARB) has yet to adopt low sulfur fuel standards for marine vessels. Concerning appropriations requests and the Marine Vessel Emissions Reduction Act (S 1499/HR 2548) status, Mr. Kierig stated that all federal legislation is at a standstill and no movement is expected until after the elections.

Update on State Legislative Issues
Will Gonzalez, AQMD state legislative consultant, reported on SB 974 (Lowenthal) Ports: Congestion Relief: Air Pollution Mitigation: Regulatory Fee, the state budget, and AB 118 (Nunez) Alternative Fuels and Vehicle Technologies: Funding Programs.

SB 974, which has been inactive on the Assembly floor for almost a year, moved out of the Assembly this week with numerous amendments. It is expected that the bill’s final version will raise up to $350 million a year that can be applied in equal amounts for air quality improvements and congestion mitigation. Under the bill, the District will collaborate with the Ports of Long Beach and Los Angeles to produce a list of air quality projects that CARB must approve or reject in its entirety. CARB cannot modify the list.

Mr. Gonzalez updated the Committee on the state budget. There is still no solution to the $15 billion plus budget deficit. The legislature is on call until August 4, 2008 awaiting the direction of the Big Five: Governor Schwarzenegger, Assembly Speaker Bass, Assembly Minority Leader Villines, Senate President Pro Tempore Perata, and Senate Minority Leader Cogdill.

With respect to AB 118 (Nunez), Mr. Gonzalez informed the Committee that this bill was chaptered in 2008 with the understanding that clean-up legislation would follow this year. AB 109 (Nunez) Air Pollution: Alternative Fuels and Vehicle Technologies constitutes the expected clean-up bill and is presently in the Senate Appropriations Committee. AB 109 further defines three AB 118 programs.

1. Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP)
   This program will be administered by the California Energy Commission for grants and loans to public and private entities to develop and use alternative and renewable fuels and vehicle technologies to attain climate change goals. $75 million has been appropriated for ARFVTP by the legislature.
    
2. Air Quality Improvement Program (AQIP)
   CARB will administer this program in consultation with districts for projects to reduce criteria air pollutants, improve air quality, and research impacts of alternative transportation fuels and vehicle technologies. The legislature appropriated $40.9 million for AQIP.
    
3. Enhanced Feet Modernization Program (EFMP)
   CARB and the Bureau of Automotive Repair will administer this program for voluntary retirement of passenger vehicles and light- and medium-duty trucks. After CARB develops regulations for EFMP, funding will be appropriated. $31.5 million per year is expected from DMV vehicle registration fees.
   
   Mr. Gonzalez, Dr. Wallerstein, and Dr. Lyou discussed the status of negotiations between the Governor and Senator Perata about the 33% renewable portfolio standard. There is still no consensus about how it should be handled. AQMD staff will monitor for any gut and amend bills. Dr. Wallerstein recommends a Legislative Committee special meeting if there are no other established board positions on other bills or general policy the District can develop.

Report on Certain Propositions that Qualified for the November Ballot [Attachment 2]
Marc Carrel, Program Supervisor, presented the propositions to the Committee.

Proposition 1: Safe Reliable High-Speed Passenger Train Bond Act for the 21st Century
This proposition provides the state portion of a $9.95 billion general obligation bond for an 800-mile high speed passenger rail system to the High Speed Rail Authority (Authority). The $9 billion in bond funding will be used to match federal and private dollars for planning and construction of the system; $950 million will be available for capital projects on other rail lines for system connectivity in addition to providing capacity enhancements and safety improvements to those lines.

Proposition 7: Renewable Energy
This proposition requires all California utilities to generate half of their power through renewable sources by 2025.

Proposition 10: Bonds – Alternative Fuel Vehicles and Renewable Energy
This proposition establishes the authority for a state general obligation bond of $5 billion toward clean renewable energy and fuel projects.

Dr. Wallerstein and Barbara Baird, Principal Deputy District Counsel, explained that Legislative Committee usually does not vote on a position regarding a proposition but that the Committee is not prohibited from taking a position provided that it does not use District resources to sway the public one way or the other.

Chair Carney recommended that Propositions 1, 7, and 10 be treated as informational items and that the Committee should discuss these in the future after further analysis and finalization of the state budget. In that future discussion Chair Carney requested staff to be ready to report on the state’s credit rating and total indebtedness

With respect to Proposition 10, Chair Carney also commented that the problem could be better addressed as a tax credit/general fund issue rather than a bond measure. She further opined that a more deliberative, legislative process would be a more appropriate approach for this complex matter than a bond measure.

Principles Regarding the Anticipated 2009 Federal Surface Transportation Reauthorization Bill [Attachment 3]
Dr. Ganguli and Mr. Carrel presented the attached guidelines for the Committee’s consideration. The guidelines are intended to help direct staff efforts as they engage in federal surface transportation reauthorization legislation which will be the successor legislation to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) adopted into law in 2005. Mr. Carrel further explained that the District would be just one player among many, and that this guidance would help guide staff on Board priorities and how to engage when there are issues that impact air quality. As specific legislative opportunities are identified, staff will return to the Committee for further direction.

Dr. Lyou noted his concerns with potential adverse environmental justice impacts and requested that the guidelines be amended such that any greenhouse gas reduction or offset efforts do not allow for any criteria or toxic emissions backsliding. The committee adopted the guidelines with Dr. Lyou’s amendment.

Public Comment
Concerning Proposition 7, Bill LaMarr of California Small Business Alliance inquired why there was an oppose position on the analysis when there seems to be an issue if the Committee can take a position on a proposition. Chair Carney clarified that AQMD staff recommends to oppose Proposition 7; however, the Committee decided not to take a particular position during this meeting.

Todd Campbell of Clean Energy, a proponent of Proposition 10, stated that this legislation changes the status quo by advancing research and technology in clean, renewable energy, complementing low-carbon fuels with high-efficiency vehicles, advancing air quality standards, promoting bill language promoting clean fuel vehicles and not diesel, and creating a state market in alternative fuel vehicle technology and low-carbon fuel.

AQMD Home Rule Advisory Group Committee Legislative Report [Attachment 4]
Please refer to Attachment 4 for a written report.
 

Attachments (ZIP, 97k)

1. Attendance Roster
2. AQMD Legislative Analyses: Propositions 1, 7, and 10
3. AQMD 2009 Federal Surface Transportation Reauthorization Legislation, Proposed Statement of Principles
4. Legislative Report from AQMD Home Rule Advisory Group