HomeMy WebLinkAbout15 SUSPEND AB 32/SB 375Agenda Item
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AGENDA REPORT C ty Ma~ager
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MEETING DATE: DECEMBER 2, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: REQUEST TO SUSPEND AB 32 AND SB 375
SUMMARY
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At the November 18, 2008, City Council meeting, Mayor Amante requested that staff
agendize a discussion regarding the recommended suspension of Assembly Bill No. 32
and Senate Bill No. 375 for a period of twenty-four (24) months.
Attached is a draft letter that urges Governor Schwarzenegger to suspend the
implementation of the two bills due to the threat of significant economic harm to the State
of California.
RECOMMENDATION:
That the City Council direct staff to transmit the attached letter to Governor
Schwarzenegger.
FISCAL IMPACT:
The cost to local governments associated with the implementation of AB 32 and SB 375
will be significant. A twenty-four (24) month suspension would ease the financial burden
during the current economic crisis.
BACKGROUND AND DISCUSSION:
At the November 18, 2008, City Council meeting, Mayor Amante requested that staff bring
back to the Council a draft letter recommending that Governor Schwarzenegger suspend
the implementation of Assembly Bill No. 32 and Senate Bill No. 375.
Assembly Bill No. 32, the Global Warming Solutions Act of 2006, addresses climate
change and global warming resulting from the release of greenhouse gas (GHG)
emissions into the atmosphere. A key goal of AB 32 is a reduction in the state's GHG
emissions to 1990 levels by 2020. SB 375 seeks to achieve this goal in the automobile
City Council Report
AB 32 and SB 375
December 2, 2008
Page 2
and light truck sectors by providing for regionally based GHG reduction targets achieved
through integrated transportation, land use, and housing planning designed to reduce
vehicle miles travelled.
There are costs associated with the administration, implementation, and enforcement of
emissions reduction measures. For example, the retrofitting of existing fleets or the
purchasing of alternative fueled vehicles by local governments is very expensive. Even
more significant are the costs associated with the upgrading of utilities and other
infrastructure necessary to support more intensive development in infill areas capable of
supporting increased transit usage.
Attached for the Council's consideration is a draft letter to Governor Schwarzenegger,
urging him to consider the financial constraints associated with these two pieces of
legislation and to suspend their implementation for at least twenty-four (24) months.
Staff will continue to monitor the implementation of Assembly Bill No. 32 and Senate Bill
No. 375 and report back to the Council as needed.
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Scott Reekstin
Senior Planner
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Elizabeth A. Binsack
Community Development Director
Attachment: Draft Letter to Governor Schwarzenegger
S:\Cdd\CCReports\AB 32 SB 375 Suspension.doc
December 3, 2008
Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
SUBJECT: REQUEST TO SUSPEND AB 32 AND SB 375
Dear Governor Schwarzenegger:
On behalf of the Tustin City Council, I urge you to suspend Assembly Bill No. 32
pursuant to the provisions of Health and Safety Code Section 38599 and postpone
the implementation of Senate Bill No. 375 for a minimum of twenty-four (24) months
due to the threat of significant economic harm throughout California.
According to the California Air Resources Board (ARB), the implementation of AB 32
will generate economic benefits by 2020, including increases in economic production,
gross state product, overall personal income, per capita income, and jobs. However,
these projected long-term benefits can only be achieved with a considerable level of
investment in the short term.
As stated in its executive summary, the ARB Proposed Scoping Plan for AB 32
proposes "a comprehensive set of actions designed to reduce overall greenhouse gas
emissions in California, improve our environment, reduce our dependence on oil,
diversify our energy sources, save energy, create new jobs, and enhance public
health." We are concerned about how these objectives are proposed to be achieved
without adequate funding.
For example, the Proposed Scoping Plan calls for a voluntary 15 percent reduction
goal in greenhouse gas (GHG) emissions generated by municipal operations to match
the State's reduction target. However, the funding sources needed to achieve the
reduction in GHG emissions have not been identified or committed, and recent
declines in-local property tax, sales tax, and other revenue sources have eroded city
budgets.
Furthermore, the state's recent raid of $350 million in local redevelopment dollars
makes it more difficult for local governments to facilitate compact infill development
and provide infrastructure upgrades in redevelopment areas, which could support
increased transit usage and reduced GHG emissions, and which would be consistent
with the Sustainable Communities Strategy to be prepared pursuant to SB 375.
AB 32 and SB 375 Suspension
December 3, 2008
Page 2
As the state and local governments face critical budget shortages, additional costs to
heavily invest in GHG emission reduction technologies will become more
burdensome. The development community is also facing unfavorable economic
conditions. Therefore, significant incentives and funding mechanisms would need to
be offered to local governments and developers to encourage development which will
contribute to reductions in GHG emissions. In fact, Assembly Bill 32 requires that
reductions in GHG emissions must be technologically feasible and cost-effective and
that the ARB "consider the cost-effectiveness of these regulations." (HSC §38560)
On behalf of the City of Tustin, I urge you to consider the financial constraints
associated with the implementation of Assembly Bill No. 32 and Senate Bill No. 375
and postpone further implementation of these sweeping reforms until the economy
has stabilized to give local governments and the development community some time
to recover from the impacts of the current economic crisis.
If you or your staff has any questions regarding the City's position, I can be reached at
(714) 573-3012.
Sincerely,
Jerry Amante
Mayor
cc: Lacy Kelly, League of California Cities -Orange County Division
Tony Cardenas, League of California Cities
Tustin City Council
William A. Huston
Doug Holland
Elizabeth A. Binsack
Scott Reekstin
S:\Cdd\SCOTT\Legislation\AB 32 SB 375 Suspend Letter.doc