HomeMy WebLinkAbout09 LEGISLATIVE UPDATES 04-21-09-, ~' Agenda Item 9
~~~~ ~ AGEN~A ~P~R~ Reviewed:
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,. _ ~,i City Manager
Finance Director N/A
MEETING DATE: APRIL 21, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: CITY CLERK'S OFFICE
SUBJECT: LEGISLATIVE REPORTS
SUMMARY:
Staff has prepared two (2) agenda reports that discuss the following legislative items:
SB 406, as introduced, DeSaulnier. Land use: environmental quality. The Planning
and Zoning Law establishes the Planning Advisory and Assistance Council in the
Office of Planning and Research, and prescribes the membership and duties of the
council. Existing law authorizes the Department of Motor Vehicles to collect a
surcharge imposed on vehicle registration fees by ordinance or resolution of a local
entity. SB 406 can be summarized as follows:
• The bill would change the designated membership, of the Planning Advisory and
Assistance Council and would require that the council work with the Strategic
Growth Council.
• The bill would also require the council to report to the Legislature on specified
regional performance measures and on the manner in which state agencies are
implementing the 5-year infrastructure plan.
• The bill would authorize a municipal planning organization or council of
governments to adopt a resolution to impose a $2 motor vehicle registration
surcharge on vehicles registered in the entity's jurisdiction that would be collected
by the Department of Motor Vehicles and, after deducting its administrative costs,
would be transmitted to the entity imposing the surcharge.
• The bill would require that the surcharge revenue be expended to develop and
implement a regional blueprint plan and would specify that 5% of the surcharge
revenue be transmitted to the council for performance of its functions.
• The bill would provide that the council is to perform specified new functions only
when the council has received sufficient revenue from this source.
Staff Recommendation: Pleasure of the City Council.
Page 2
2. SUPPORT OF AB 118 AND SB 295
At the April 7, 2009, City Council meeting, Council members requested that staff
agendize a discussion regarding State Assembly Bill (AB) 118 and State Senate
Bill (SB) 295. AB 118 would repeal the California Global Warming Solutions Act
of 2006 (AB 32) in its entirety. SB 295 would postpone the requirements of AB 32
until the required programs receive more funding and other thresholds are met.
Attached are two draft letters expressing support of these two bills due to the
threat of significant economic harm to the State of California that could occur if
AB 32 is implemented as adopted.
Staff Recommendation:
authors of the legislation
legislature.
RECOMMENDATION:
Pleasure of the City Council.
Direct staff to transmit the letters of support to the
and to the Governor if either bill is passed by the
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Maria R. Huizar
Chief Deputy City Clerk
TUSTIN
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5 AGENDA REPORT
6u11.IJ~NG Oua FUTU2E
nuNUKwc oon rwsr
MEETING DATE: APRIL 21, 2009
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: LEGISLATIVE REPORT -SENATE BILL (SB) 406
Agenda Item 9
Reviewed:
City Manager
Finance Director NIA
SUMMARY:
SB 406 generally can be summarized as follows:
• The bill would change the designated membership, of the Planning Advisory and
Assistance Council and would require that the council work with the Strategic
Growth Council.
• The bill would also require the council to report to the Legislature on specified
regional performance measures and on the manner in which state agencies are
implementing the 5-year infrastructure plan.
• The bill would authorize a municipal planning organization or council of governments
to adopt a resolution to impose a $2 motor vehicle registration surcharge on vehicles
registered in the entity's jurisdiction that would be collected by the Department of
Motor Vehicles and, after deducting its administrative costs, would be transmitted to
the entity imposing the surcharge.
• The bill would require that the surcharge revenue be expended to develop and
implement a regional blueprint plan and would specify that 5% of the surcharge
revenue be transmitted to the council for performance of its functions.
• The bill would provide that the council is to perform specified new functions only
when the council has received sufficient revenue from this source.
RECOMMENDATION:
Pleasure of the City Council.
FISCAL IMPACT:
Senate Bill 406 would impose a $2 motor vehicle registration surcharge on vehicles
registered in the entity's jurisdiction that would be collected by the Department of Motor
Vehicles and, after deducting its administrative costs, would be transmitted to the entity
imposing the surcharge. No impact to General Fund is anticipated at this time.
SB 406
April 21, 2009
Page 2
DISCUSSION:
Existing Law
Proposition 84 enacted "The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006," and authorized $5.4 billion
in state bonds. One purpose is "Revitalizing our communities and making them more
sustainable and livable by investing in sound land use planning, local parks and urban
greening." $580 million is available for those purposes with $90 million specifically set
aside for "planning grants and incentives."
The Strategic Growth Council awards and manages these grants (SB 732, Steinberg,
2008). The six-member Council consists of the:
• Director of the Governor's Office of Planning and Research (OPR),
• Secretary of the Natural Resources Agency,
• Secretary of the Environmental Protection Agency,
• Secretary of the Business, Transportation and Housing Agency,
• Secretary of the California Health and Human Services Agency, and
• A public member, appointed by the Governor.
The Strategic Growth Council coordinates the state's activities and programs to improve
air and water quality, improve natural resources protection, increase the availability of
affordable housing, improve transportation, meet the goals of California Global Warming
Solutions Act ("AB 32"), encourage sustainable land use planning, and revitalize
community centers. The Council must comment on the state's five year infrastructure
plan and OPR's State Environmental Goals and Policies Report.
OPR is the state's comprehensive planning agency, responsible for helping local and
regional officials with land use planning. Located within the Office of the Governor,
OPR is supposed to coordinate state agencies' planning activities. Every four years,
OPR must prepare a State Environmental Goals and Policies Report, a 20- to 30-year
look ahead at state growth and development. The State Environmental Goals and
Policy Report must be consistent with the state's planning priorities to:
• Promote infill development and equity,
• Protect environmental and agricultural resources, and
• Encourage efficient development patterns (AB 857, Wiggins, 2002).
The Planning Advisory and Assistance Council (PAAC) is OPR's advisory panel,
meeting at least twice a year to offer advice and help shape the State Environmental
Goals and Policies Report. OPR's Director appoints the PAAC members:
• Three city representatives, nominated by the League of California Cities;
• Three county representatives, nominated by the California State Association of
Counties;
• One representative from each of the regional planning districts designated by
OPR, at least two from metropolitan area planning organizations and, at least
one from a nonmetropolitan planning organization; and
• One representative of Indian tribes with reservations in California.
SB 406
April 21, 2009
Page 3
Cities and counties have formed joint powers agencies called councils of government
(COGs) to conduct area wide studies and implement various regional planning
requirements, particularly regional housing needs assessments and regional
transportation plans. Many COGs are federally recognized metropolitan planning
organizations (MPOs).
A new state law requires the California Air Resources Board to assign each MPO a
GHG emissions reduction target, and then requires each MPO to prepare a "sustainable
communities strategy" as a component of its regional transportation plan (SB 375,
Steinberg, 2008). This strategy will serve as a blueprint for communities to achieve the
region's GHG emissions reduction target. If the sustainable communities strategy does
not achieve the reduction target, the MPO must prepare an alternative planning
strategy.
Proposed Law
Senate Bill 406 affects the duties, membership, and funding for the Strategic Growth
Council and the Planning Advisory and Assistance Council, funded by revenues from a
new motor vehicle license surcharge.
Strategic Growth Council. SB 406 requires the Strategic Growth Council to consult
with and coordinate its recommendations with the Planning Advisory and
Assistance Council (PAAC) within the Governor's Office of Planning and Research
(OPR).
II. Planning Advisory and Assistance Council. SB 406 changes the PAAC's
membership to:
• Three city representatives, nominated by the League of California Cities;
• Three county representatives, nominated by the California State Association of
Counties;
• Seven representatives of regional planning organizations:
1. One from the Southern California Association of Governments,
2. One who is a member of the governing bodies of both the Metropolitan
Transportation Commission and the Association of Bay Area
Governments,
3. One from the San Diego Association of Governments,
4. One from the Sacramento Area Council of Governments,
5. One from the San Joaquin Valley Regional Policy Council,
6. One from the other metropolitan planning organizations or councils of
governments, nominated by the California Association of Councils of
Governments, and
7. One from a regional transportation planning agency that is neither a
metropolitan planning organization nor a council of governments,
nominated by the California Association of Councils of Governments;
• One member of the State Air Resources Board;
• One member of the California Transportation Commission;
SB 406
April 21, 2009
Page 4
• One member of the State Energy Resource Conservation and Development
Commission;
• One member appointed by the Assembly Speaker;
• One member appointed by the Senate Rules Committee; and,
• One representative of Indian tribes with reservations in California.
The bill assigns the PAAC five new duties:
1. Work with the Strategic Growth Council to facilitate the implementation of
regional blueprint projects.
2. Facilitate coordination between regional blueprint plans and state growth and
infrastructure funding plans by developing recommendations to state
agencies, including the Strategic Growth Council, State Department of
General Services, State Allocation Board, State Department of Housing and
Community Development, California Transportation Commission, California
Housing and Finance Agency.
3. Receive reports, including the state's five-year infrastructure plan.
4. Report to the Legislature on how state agencies implement the state's
planning priorities.
5. Report to the Legislature on regional performance measures that evaluate
each region based on the PAAC's criteria for improving the regions'
employment, environmental protection, education, housing, and mobility.
SB 406 directs the PAAC to start performing these new duties when it receives
sufficient funding from metropolitan planning organizations, councils of
government, or county transportation commissions and subregional councils of
government jointly preparing subregional sustainable communities strategies.
III. Motor Vehicle License Surcharge. SB 406 authorizes a metropolitan planning
organization, council of governments, or a county transportation commission and a
subregional council of governments jointly preparing a subregional sustainable
communities strategy to adopt a resolution imposing a surcharge of up to $2 on a
motor vehicle registered to an owner within its jurisdiction.
Within the Southern California Association of Governments, the surcharge
resolutions must be jointly adopted by a county transportation commission and a
subregional council of governments. The county transportation commission and
the subregional council of governments must agree on how to divide the revenue.
The regional and subregional agencies must use the surcharge revenues solely for
a sustainable communities strategy or a regional blueprint plan to identify land use
strategies to reduce the use of motor vehicles and motor vehicle emissions.
However, the regional and subregional agencies must send 5% of their revenues
to the Planning Advisory and Assistance Council.
The bill includes provisions for the State Department of Motor Vehicles to
administer the new vehicle license surcharge, including provisions for registrations,
exempt vehicles, and the Department's expenses.
SB 406
April 21, 2009
Page 5
Comments and/or concerns
For more than 70 years, state law has required cities and counties to adopt and follow
comprehensive general plans that balance competing values within each community.
At the regional level, there are commissions and COGs that struggle to make sense out
of topics that are larger-than-local. Within state government, the OPR and its PAAC
and the requirement for a State Environmental Goals and Policies Report try to balance
all pieces of State's law. Last year, the legislators created new entities such as
Strategic Growth Council. SB 406 tries to connect the new Strategic Growth Council to
OPR's PAAC. The bill adds state agencies to the PAAC while giving specific seats to
certain COGs and MPOs. It is unclear if the addition of agencies would make sense out
of a long-range planning effort.
California invests no State General Funds to support local comprehensive planning.
Cities and counties must rely on their own budgets, augmented by local fees. COGs
rely on mixes of federal funds and members' dues. Although Proposition 84 offers $90
million in local and regional planning support, it is hardly enough to properly plan for a
state with 38 million residents that will have 50 million residents shortly after 2030. SB
406 allows regional agencies to raise the revenues they need by imposing a new
vehicle license surcharge. Californians already pay several license surcharges for
freeway emergencies, abandoned cars, vehicle theft programs, and some regional air
quality efforts. Adding on another vehicle license surcharge may not make sense
during the current economic downturn.
SB 406 merely facilitates coordination, requiring more consultation, inserting state
officials on the PAAC, and commissioning more reports to the Legislature. SB 406
further entangles state, regional, and local officials without a clear outcome. The bill
does not demonstrate a clear purpose of SB 406.
Under the existing law, OPR must prepare and the Governor must issue the State
Environmental Goals and Policy Report every four years. In 1972, Governor Reagan
issued the first State Environmental Goals and Policy Report. In 1978, Governor Brown
issued his version, An Urban Strategy for California. Governors Deukmejian and Wilson
issued none. In November 2003, OPR prepared a State Environmental Goals and
Policy Report, a month after the recall election, but Governor Davis never endorsed it.
The Schwarzenegger Administration has not issued a Report. It is not clear if the new
vehicle license surcharge funds permitted by SB 406 will be sufficient to renew state
officials' interest in producing and implementing a State Environmental Goals and
Policies Report.
li~,t,~-~
ustina ~ om
Principal Planner
Attachment: SB 406
S \Cdd~CCREPORT~S6 406.dac
~r
Elizabeth A. Bi s ck
Community Development Director
SENATE BILL N0.406
By Senator DeSaulnier
SENATE BILL No. 406
Introduced by Senator DeSaulnier
February 26, 2009
An act to amend Section 65040.6 of, and to add and repeal Section
65083 of, the Government Code, to amend Section 75125 of the Public
Resources Code, and to add and repeal Section 9250.6 of the Vehicle
Code, relating to land use.
LEGISLATIVE COUNSEL'S DIGEST
SB 406, as introduced, DeSaulnier. Land use: environmental quality.
The Planning and Zoning Law establishes the Planning Advisory and
Assistance Council in the Office of Planning and Research, and
prescribes the membership and duties of the council. Existing law
authorizes the Department of Motor Vehicles to collect a surcharge
imposed on vehicle registration fees by ordinance or resolution of a
local entity.
This bill would change the designated membership, as specified, of
the Planning Advisory and Assistance Council and would require that
the council work with the Strategic Growth Council, as specified. The
bill would also require the council to report to the Legislature on
specified regional performance measures and on the manner in which
state agencies are implementing the 5-year infrastructure plan. The bill
would authorize a municipal planning organization or council of
governments to adopt a resolution to impose a $2 motor vehicle
registration surcharge on vehicles registered in the entity's jurisdiction
that would be collected by the Department of Motor Vehicles and, after
deducting its administrative costs, would be transmitted to the entity
imposing the surcharge. The bill would require that the surcharge
revenue be expended to develop and implement a regional blueprint
plan and would specify that 5% of the surcharge revenue be transmitted
99
SB 406
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to the council for performance of its functions. The bill would provide
that the council is to perform specified new functions only when the
council has received sufficient revenue from this source.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
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SECTION 1. (a) The Legislature finds and declares the
following:
(1) Uncoordinated and unplanned growth together with a lack
of common goals to effect the public's interest in the conservation
and wise use of our lands, pose a threat to the environment,
sustainable economic development, and the health, safety, and
high quality of life enjoyed by residents of this state.
(2) Therefore, it is in the public interest that state residents,
communities, local governments, and the private sector cooperate
and coordinate with one another in comprehensive, sustainable
land use planning.
(b) It is the intent of the Legislature to update the duties and
composition of the Planning Advisory and Assistance Council to
assist in the state's land use planning processes by providing
funding to support the development and implementation for
regional blueprints and related planning and to work with state
agencies providing funding for resource protection and local
infrastructure to facilitate coordination between state planning and
funding decisions and regional blueprints.
SEC. 2. Section 65040.6 of the Government Code is amended
to read:
65040.6. (a) The Planning Advisory and Assistance Council
is hereby created within the office, the membership of which shall
be as follows: three city representatives; three county
representatives; ,
;seven representatives of
regional planning organizations; one member of the State Air
Resources Board,' one member of the State Ener~v Resource
Conservation and Development Commission; one member
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appointed by Speaker of Assembly; one member appointed by the
Senate Committee on Rules; and one representative of Indian tribes
and bands which have reservations or rancherias within California.
The city and county representatives appointed pursuant to this
subdivision shall be selected by the director from nominees
submitted by the League of California Cities and by the California
State Association of Counties. Representatives of regional
planning organizations appointed pursuant to this subdivision shall
be selected by the director from nominees submitted by theI
aree regional planning organizations ---~`'-=- `'-~ ~`~`~ ^`'-~°
set forth
in paragraphs (1) to (S), inclusive, of subdivision (b) and from
nominees submitted by the California Association of Councils of
Governments for the representatives of organisations set•forth in
paragraphs (6) and (7) of subdivision (b). The representative of
Indian tribes and bands shall be a member of one tribe or band,
and shall be selected by the director.
Appointment to the advisory council shall be for a term of two
years, provided that the members of the first council shall classify
themselves by lot so that one-half shall serve an initial term of one
year and one-half shall serve an initial term of two years. Vacancies
shall be filled in the same manner provided for the original
appointment.
(b) Seven of the council 's members shall be• fi om the governing
body of each of the following.•
(1) The Southern California Association of Governments.
(2) The Metropolitan Transportation Commission or the
Association of Bay Area Governments. The person appointed to
the council pursuant to this paragraph shall be a member of the
governing body for both the Metropolitan Transportation
Commission and the Association of Bay Area Governments.
(3) The San Diego Association of Governments.
(4) The Sacramento Area Council of Governments.
(S) The San Joaquin Talley Regional Policy Council.
(6) A metropolitan planning organization of council of
governments that is not ident~ed in paragraphs (1) to (S),
inclusive.
(7) A regional transportation planning agency, as defined in
Section 65080, that is neither a metropolitan planning organization
nor a council of governments.
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(c) The council shall provide such advice as may be necessary
to assist the office in discharging the requirements of Sections
65040 to 65040.4, inclusive. In particular, the council shall:
(1) Assist the office in the preparation of the state long-range
goals and policies, in the manner specified in subdivision (a) of
Section 65040.
(2) Evaluate the planning functions of the various state agencies
involved in planning, in the manner specified in subdivision (c)
of Section 65040.
(3) Make appropriate decisions and provide such advice and
assistance as may be required by federal statute or regulation in
connection with any federal program administered by the office.
(4) Work with the Strategic Growth Cormcil, created pursuant
to Section 75121 of the Public Resources Code, regional agencies,
szrch as metropolitan planning organizations or cozmcils of
governments, and with cities and cozrnties to facilitate the
implementation of regional blueprint projects.
(S) Develop recommendations to the Strategic Growth Council,
created pursuant to Section 75121 of the Public Resources Code,
to the Department of General Services, to the State Allocation
Board, to the Department of Hoarsing and Community
Development, to the California Transportation Commission, to
the California Hoarsing and Finance Agency, and to any other
state agencies to facilitate the coordination between regional
bhreprint plans and state growth and infrastructtrre funding plans.
(6) Receive reports, including, but not limited to, a copy of the
frve year infrastrzrcturepian described in Section 13102.
(7) Report to the Legislature, in consultation and coordination
with the Strategic Growth Cozrncil, created pursuant to Section
75121 of the Public Resources Code, on the manner in which state
agencies are implementing the requirements of Chapter 1016 of
the Statutes of 2002.
(8) Report to the Legislature on regional performance measures,
evaluating the progress of each region of the state in improving
results for its residents in employment, environmental protection,
edarcation, housing, mobility, and other criteria as determined by
the council. The council shall provide the Legislature with updates
to the report periodically as the council determines is required.
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(d) The council shall meet on call of the director of the office,
who shall convene at least two council meetings during each year.
(e) Council members shall serve without compensation, but
they may be reimbursed for actual expenses incurred in connection
with their duties.
(~ The council shall begin to perform the functions and other
duties set forth in paragraphs (4) to (8), inclusive, of subdivision
(c) when sufficient funding, as determined by the coLrrrcil, exists
from the revenue transmitted to it b_y the metropolitan planning
organization or council of governments pursuant to subdivision
(b) of Section 65083.
SEC. 3. Section 65083 is added,to the Government Code, to
read:
65083. (a) A metropolitan planning organization, as defined
in Section 134 of Title 23 of the United States Code, or a council
of governments, as defined in Section 65582, may impose a
surcharge of up to two dollars ($2) pursuant to Section 9250.6 of
the Vehicle Code, on a motor vehicle registered to an owner with
an address in its jurisdiction. The surcharge may be imposed only
if the metropolitan planning organization or the council of
governments adopts a resolution authorizing the surcharge. A
resolution by the Metropolitan Transportation Commission or the
Association of Bay Area Governments to impose the surcharge
shall be jointly adopted by resolution of both of those entities, and
the revenue from the surcharge shall be divided in accordance with
an agreement between these two entities.
(b) All revenue received pursuant to this section shall be used
by the metropolitan planning organization or by the council of
governments solely to develop and implement a regional blueprint
plan to identify land use strategies to reduce the use of motor
vehicles in its jurisdiction and thereby reduce emissions into the
environment from motor vehicles. The metropolitan planning
organization or the council of governments shall transmit 5 percent
of all surcharge revenue it receives pursuant to Section 9250.6 of
the Vehicle Code to the Planning Advisory and Assistance Council
created pursuant to Section 65040.6.
(c) For purposes of this section, a sustainable communities
strategy and an alternative planning strategy shall both be
considered to be a regional blueprint.
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SB 406
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(d) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.
SEC. 4. Section 75125 of the Public Resources Code is
amended to read:
75125. The council shall do all of the following:
(a) Identify and review activities and funding programs of
member state agencies that maybe coordinated to improve air and
water quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet
the goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code), encourage sustainable land use planning, and
revitalize urban and community centers in a sustainable manner.
At a minimum, the council shall review and comment on the
five-year infrastructure plan developed pursuant to Article 2
(commencing with Section 13100) of Chapter 2 of Part 3 of
Division 3 of the Government Code and the State Environmental
Goals and Policy Report developed pursuant to Section 65041 of
the Government Code.
(b) Recommend policies and investment strategies and priorities
to the Governor, the Legislature, and to appropriate state agencies
to encourage the development of sustainable communities, such
as those communities that promote equity, strengthen the economy,
protect the environment, and promote public health and safety,
and is consistent with subdivisions (a) and (c) of Section 75065.
(c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing
and planning sustainable communities.
(d) Manage and award grants and loans to support the planning
and development of sustainable communities, pursuant to Sections
75127, 75128, and 75129. To implement this subdivision, the
council may do all of the following:
(1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
(2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan
to an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
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the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.
(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned by
the Pooled Money Investment Board.
(4) Provide for the time period for repaying a loan made
pursuant to this article.
(5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the State Controller to recover funds by
any available means.
(6) Provide technical assistance for application preparation.
(7) Designate a state agency or department to administer
technical and financial assistance programs for the disbursing of
grants and loans to support the planning and development of
sustainable communities, pursuant to Sections 75127, 75128, and
75129.
(e) No later than July 1, 2010, and every year thereafter, provide
a report to the Legislature that shall include, but is not limited to,
all of the following:
(1) A list of applicants for financial assistance.
(2) Identification of which applications were approved.
(3) The amounts awarded for each approved application.
(4) The remaining balance of available funds.
(5) A report on the proposed or ongoing management of each
funded project.
(6) Any additional minimum requirements and priorities for a
project or plan proposed in a grant or loan application developed
and adopted by the council pursuant to subdivision (c) of Section
75216.
(7) In making recommendations pursa+ant to subdivisions (a)
and (b) and in providing data and information pursuant to
subdivision (c), the council shall consadt with and coordinate its
recommendations with the Planning Advisory and Assistance
Council created pursua~rt to Section 65040.6 of tlae Government
Code.
SEC. 5. Section 9250.6 is added to the Vehicle Code, to read:
9250.6. (a) (1) In addition to any other fees specified in this
code, the Health and Safety Code, and the Revenue and Taxation
Code, a surcharge of up to two dollars ($2) may be imposed by a
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metropolitan planning organization or by a council of governments
and shall be paid to the department as follows:
(A) Upon initial registration on or after the date the department
begins collecting the fee of a motor vehicle not previously
registered in this state that is registered to an owner with an address
in the jurisdiction of the metropolitan planning organization or
council of governments requesting imposition of the surcharge.
(B) Upon renewal of registration of a motor vehicle to an owner
with an address in the jurisdiction of the metropolitan planning
organization or council of governments requesting imposition of
the surcharge for which the registration period expires after the
date the department begins collecting the fee.
(2) This subdivision applies to a motor vehicle subject to Part
5 (commencing with Section 43000) of Division 26 of the Health
and Safety Code, except a vehicle that is expressly exempted under
this code from the payment of registration fees. The department
shall begin collecting the fee on January 1 of the year immediately
following the date the department receives the request to do so
from the metropolitan planning organization or council of
governments.
(b) Prior to the adoption of a surcharge pursuant to this section,
the metropolitan planning organization or council of governments
shall approve the imposition of the surcharge through the adoption
of a resolution, as specified in Section 65083 of the Government
Code.
(c) The metropolitan planning organization or council of
governments shall pay for the costs identified by the department
to administer the surcharge. After deducting those costs, the
department shall transmit the surcharge revenue quarterly to the
metropolitan planning organization or council of governments.
(d) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.
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99
i~.
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MEETING DATE:
TO:
FROM:
SUBJECT:
AGENDA REPORT
APRIL 21, 2009
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
SUPPORT OF AB 118 AND SB 295
Agenda Item _ 9
Reviewed:
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Cit
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Finance Director NIA
SUMMARY:
At the April 7, 2009, City Council meeting, Council members requested that staff agendize
a discussion regarding State Assembly Bill (AB) 118 and State Senate Bill (SB) 295. AB
118 would repeal the California Global Warming Solutions Act of 2006 (AB 32) in its
entirety. SB 295 would postpone the requirements of AB 32 until the required programs
receive more funding and other thresholds are met.
Attached are two draft letters expressing support of these two bills due to the threat of
significant economic harm to the State of California that could occur if AB 32 is
implemented as adopted.
RECOMMENDATION:
That the City Council direct staff to transmit the attached letters of support to the authors of
the legislation and to the Governor if either bill is passed by the legislature.
FISCAL IMPACT:
The cost to local governments associated with the implementation of AB 32 will be
significant. A postponement or revocation of AB 32 would ease the financial burden during
the current economic crisis.
BACKGROUND AND DISCUSSION:
AB 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.
There are significant costs anticipated with the administration, implementation, and
enforcement of greenhouse gas (GHG) emissions reduction measures. For example, the
retrofitting of existing fleets or the purchasing of alternative fueled vehicles by local
City Council Report
AB 118 and SB 295
April 21, 2009
Page 2
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. The City Council
has previously taken a position of urging the suspension of AB 32 due to the current
economic crisis.
AB 118 (Logue)
In response to the significant anticipated costs associated with AB 32 and the current
economic situation, AB 118 (Logue) would repeal AB 32 in its entirety.
SB 295 (Dutton)
SB 295 (Dutton) would postpone the requirements for development and implementation of
GHG emissions regulations related to AB 32. Development of the regulations prescribed
by AB 32 would be delayed until all of the following occur: (1) July 1, 2009, at the earliest;
(2) additional studies are completed to determine the impacts of the requirements; and (3)
the study in (2) is certified by the legislative analyst. In addition, the implementation of any
such regulation would be delayed until the state unemployment rate is below 5.8 percent
for three consecutive months. Finally, the costs associated with any new regulation made
in response to AB 32 would have to be made public.
Attached for the Council's consideration are copies of AB 118 and SB 295 along with draft
letters of support urging their passage.
Staff will continue to monitor the implementation of Assembly Bills 32 and 118 and Senate
Bill No. 295 and report back to the Council as needed. Should either bill pass and move on
to the Governor for signature, Council concurrence with this matter would also include
forwarding a letter of support to the Governor.
Cari Meyer
Assistant Planner
Elizabeth A. Binsa
Community Development Director
Attachments:
Assembly Bill 118
Senate Bill 295
Draft Letter to Assemblyman Dan Logue
Draft Letter to Senator Robert Dutton
S:\Cdd\CCREPORIIAB 118 SB 295 Support.doc
CALIFORNIA LEGISLATURE-2009-10 REGULAR SESSION
ASSEMBLY BILL No. 118
Introduced by Assembly Member Logue
January 15, 2009
An act to repeal Division 25.5 (commencing with Section 38500) of
the Health and Safety Code, relating to air pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 118, as introduced, Logue. California Global Warming Solutions
Act of 2006.
The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the reporting
and verification of emissions of greenhouse gases and to monitor and
enforce compliance with the reporting and verification program, and
requires the state board to adopt a statewide greenhouse gas emissions
limit equivalent to the statewide greenhouse gas emissions levels in
1990 to be achieved by 2020. The act requires the state board to prepare
and approve a scoping plan for achieving the maximum technologically
feasible and cost-effective reductions in greenhouse gas emissions. The
state board is required by January 1, 2011, to adopt greenhouse gas
emissions limits and emission reduction measures by regulation to
achieve the prescribed emission reductions.
This bill would repeal the California Global Warming Solutions Act
of 2006.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
99
AB 118
The people of the State of California do enact as follows:
1 SECTION 1. Division 25.5 (commencing with Section 38500)
2 of the Health and Safety Code is repealed.
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99
AMENDED IN SENATE APRIL 13, 2009
SENATE BILL No. 295
Introduced by Senator Dutton
(Coauthors: Senators Cox and Runner)
(Coauthors: Assembly Members Bill Berryhill, DeVore, Fuller, Hagman,
Jeffries, Niello, and Silva)
February 25, 2009
An act to amend Section 38563 of, and to add Section 38561.5 to,
the Health and Safety Code, relating to air pollution, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 295, as amended, Dutton. California Global Warming Solutions
Act of 2006.
The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the reporting
and verification of emissions of greenhouse gases and to monitor and
enforce compliance with the reporting and verification program, and
requires the state board to adopt a statewide greenhouse gas emissions
limit equivalent to the statewide greenhouse gas emissions~evels level
in 1990 to be achieved by 2020. The act requires the state board to
prepare and approve a scoping plan for achieving the maximum
technologically feasible and cost-effective reductions in greenhouse
gas emissions. The state board is required to evaluate the total potential
costs and total potential economic and noneconomic benefits of the
plan. The state board is required by January 1, 2011, to adopt greenhouse
gas emissions limits and emission reduction measures by regulation to
achieve the prescribed emission reductions.
98
SB 295 - 2
This bill, notwithstanding this provision or any other provision of
law, would prohibit the state board or its staff from beginning to develop
these regulations until~e July 1, 2009, and until the state board
reevaluates the evaluation of costs discussed above. The bill would
prohibit the state board from implementing those regulations until the
unemployment rate in the state is below 5.8% for 3 consecutive months.
The bill would also require the state board to evaluate, and make public,
the costs of those regulations.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: z/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares all of the
2 ,following:
3 (a) The State Air Resources Board is required by the California
4 Global Warming Solutions Act of 2006 to design emission
5 reduction measures to meet a statewide emissions limit ,for
6 greenhouse gases in a manner that minimizes costs and maximizes
7 benefits for California's economy.
8 (b) The State Air Resources Board is required to consider the
9 economic impacts of the measures ident~ed in its scoping plan
10 through ara economic analysis.
11 (c) The Legislative Analvst found that the economic analysis of
12 the scoping plan adopted on December I1, 2008, was inconsistent
13 and incomplete. Peer reviewers also criticized the economic
14 analysis.
15 (d) The State Air Resources Board has committed to perform a
16 new economic analysis by December 31, 2009.
17 (e) In February 2009, the California unemployment r°ate rose
18 to 10.5 percent. State budget revenues are declining and California,
19 as well as the nation, is in the midst of a significant recession.
20 (~ Given the severity of the current economic situation, and the
21 lack of y-eliable economic analysis of the impacts of the measures
22 in the scoping plan, the State Air Resources Board should perform
23 a useful and complete economic analysis of the scoping plan as
24 soon as possible to inform policymakers about the economic impact
25 of the plan.
~~a
3 - SB 295
1 (g) The State Air Resources Board has the resources and
2 information needed to perform a valid economic analysis by July
3 1, 2009.
4 ~,,r~
5 SEC. 2. Section 38561.5 is added to the Health and Safety
6 Code, to read:
7 38561.5. (a) Notwithstanding Section 38562 or any other
8 provision of law, the state board or its staff shall not begin to
9 develop the regulations described in Section 38562 until all of the
10 following occur:
11 (1) July 1, 2009, at the earliest.
12 (2) The state board has completed an additional peer-reviewed
13 study to reevaluate the evaluations made pursuant to subdivision
14 (d) of Section 38561 that takes into consideration any
15 peer-reviewed comments on the original evaluations. This
16 additional study shall include all of the following:
17 (A) Estimates of the actual costs in every year, and for every
18 sector of the economy, of the recommendations identified in the
19 scoping plan adopted pursuant to Section 38561, and shall not
20 include only annual averaged costs.
21 (B) Estimates of overall costs and savings and the
22 cost-effectiveness of the reductions identified in the scoping plan
23 adopted pursuant to Section 38561, including appropriate inclusion
24 of reductions in copollutants.
25 (C) Estimates of the timing of capital investments, annual
26 expenditures to repay those investments, and the resulting cost
27 savings.
28 (D) Sensitivity of the results to changes in key inputs, including
29 energy price forecasts and estimates of measure costs and savings.
30 (E) Impacts on small businesses.
31 (3) The Legislative Analyst has certified that the study required
32 by paragraph (2) has been completed.
33 (b) Notwithstanding Section 38562 or any other provision of
34 law, the state board shall not implement the regulations described
35 in Section 38562 until the unemployment rate in the state is below
36 5.8 percent for three consecutive months. The state board shall not
37 be required to suspend regulations implemented after the
38 unemployment rate in the state is below 5.8 percent for three
39 consecutive months, if the unemployment rate again rises to 5.8
40 percent or greater.
98
SB 295 -4
1 (c) The state board shall evaluate, and make public, the costs
2 of each regulation adopted pursuant to Section 38562.
3 ~-~
4 SEC. 3. Section 38563 of the Health and Safety Code is
5 amended to read:
6 38563. Except as provided in Section 38561.5, nothing in this
7 division restricts the state board from adopting greenhouse gas
8 emission limits or emission reduction measures prior to January
9 1, 2011, imposing those limits or measures prior to January 1,
10 2012, or providing early reduction credit where appropriate.
11 ~~
12 SEC. 4. This act is an urgency statute necessary for the
13 immediate preservation of the public peace, health, or safety within
14 the meaning of Article IV of the Constitution and shall go into
15 immediate effect. The facts constituting the necessity are:
16 In order to ensure that the adoption of greenhouse gas emission
17 reduction regulations does not negatively impact the state's
18 economy, it is necessary that this act take effect immediately.
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9R
April 22, 2009
Assemblyman Dan Logue
State Capitol Building, Room 2114
Sacramento, CA 95814
SUBJECT: AB 118 -LETTER OF SUPPORT
Dear Assemblyman Logue:
On behalf of the Tustin City Council, I wish to express our support for Assembly Bill
118 to repeal Assembly Bill 32 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. However, these projected long-term benefits
can only be achieved with a considerable level of investment in the short term.
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.
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)
AB 118 Support
April 22, 2009
Page 2
On behalf of the City of Tustin, in consideration of the financial constraints associated
with the implementation of Assembly Bill 32, I wish to offer our support of Assembly
Bill 118 repeal these sweeping reforms.
If you or your staff has any questions regarding the City's position, I can be reached at
(714) 573-3012.
Sincerely,
Doug Davert
Mayor
cc: Fiscal Committee
Committee on Natural Resources
Richard Dixon, Southern California Association of Governments
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\Cari\Legislation\AB 118 SB 295 Support Letter.doc
April 22, 2009
State Senator Robert Dutton
State Capitol Building, Room 5094
Sacramento, CA 95814
SUBJECT: SB 295 -LETTER OF SUPPORT
Dear Senator Dutton:
On behalf of the Tustin City Council, I wish to express our support for Senate Bill 295
to postpone the implementation of the requirements of Assembly Bill 32 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. However, these projected long-term benefits
can only be achieved with a considerable level of investment in the short term.
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.
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)
SB 295 Support
April 22, 2009
Page 2
On behalf of the City of Tustin, in consideration of the financial constraints associated
with the implementation of Assembly Bill 32, I wish to offer our support of Assembly
Bill 118 repeal these sweeping reforms.
On behalf of the City of Tustin and in consideration of the financial constraints
associated with the implementation of Assembly Bill 32, I wish to offer our support of
Senate Bill 295 to postpone 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,
Doug Davert
Mayor
cc: State Senator Dave Cox, Room 2068
State Senator George Runner, Room 4090
Assembly Member Bill Berryhill, Room 4009
Assembly Member Chuck DeVore, Room 4102
Assembly Member Jean Fuller, Room 3098
Assembly Member Curt Hagman, Room 4116
Assembly Member Kevin Jeffries, Room 5128
Assembly Member Roger Niello, Room 6027
Assembly Member Jim Silva, Room 2170
Senate Committee on Environmental Quality
Fiscal Committee
Richard Dixon, Southern California Association of Governments
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\Cari\LegislationWB 118 SB 295 Support Letter.doc