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HomeMy WebLinkAbout06-26-2013 Steering Committee Agenda Packet.pdf Wednesday, June 26, 2013 Orange County Sanitation District 5:30 P.M. Regular Meeting of the Administration Building Steering Committee Conference Rooms A R B 10844 Ellis Avenue Fountain Valley, CA 92708 r, (714) 593-7130 AGENDA DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: 1. Approve Minutes of the May 22, 2013 Steering Committee Meeting. ACTION ITEMS: None. INFORMATION ITEMS: 2. Legislative Update CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. 06/26/13 Steering Committee Agenda Page 1 of 3 (1) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: James D. Herberg, General Manager, Jeff Reed, Director of Human Resources, and James D. Ruth, Chief Negotiator Employee Organizations: Supervisor Group and Professional Group (2) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representative: James D. Herberg, General Manager Unrepresented Employees: Managers Group (3) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representative: James D. Herberg, General Manager Unrepresented Employees: Executive Management Group (4) CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(4)) Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 Number of Potential Cases: 1 (5) CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)) Significant Exposure to Litigation pursuant to Paragraph (2) of subdivision (d) of Section 54956.9 & Paragraph 3 of subdivision (e) of Section 54956.9 Number of Potential Cases: 1 Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: O6/26/13 Steering Committee Agenda Page 2 of 3 ADJOURNMENT: The next Steering Committee meeting is scheduled for Wednesday, July 24, 2013, at 5:30 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's once at (714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Mafia E.Ayala Clerk of the Board (714)593-7130 mayala(d)ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7110 iherbemaocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 mhirelli biocsd.com Director of Engineering Nick Kanetis (714)593-7310 nkanetisaocsd.com Director of Facility Support Services Nick Arhontes (714)593-7210 narhontesGDocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Ityner(cDocsd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 ireed/glocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres omd.com 06/26/13 Steering Committee Agenda Page 3 of 3 STEERING COMMITTEE MeedngDate To ad.of Di, 06,26,13 -- AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: Nick Kanetis, Director of Engineering Originator: Michael Gold, Public Affairs Manager SUBJECT: LEGISLATIVE UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly legislative update that includes legislative and political information from Washington, D.C. and Sacramento, lobbyists' activities, and other information. ADDITIONAL INFORMATION Legislative Advocacy Plan As a follow-up to the May meeting, staff developed an aggressive outreach plan to meet the Steering Committee's objectives for a visible program with greater committee involvement. Staff identified five key issues: 1. Keep the Steering Committee informed and updated on legislative matters To keep the Steering Committee informed on Legislative and funding issues, staff will report monthly on timely issues including key bills, grants and critical legislative issues. In addition, the legislative advocates will give a regular report to the Steering Committee quarterly; either by phone or in person. At least twice per year, contract advocates will attend Steering Committee meetings. Each year staff will hold a legislative planning workshop with the Steering Committee to develop goals and objectives for the coming year. This will be held in December or January with a mid-year update report by staff in August or September. 2. Greater Steering Committee involvement in legislative advocacy The Steering Committee expressed its interest in taking a greater role in legislative advocacy. To meet this goal, staff proposes that in addition to the regular reporting, we will coordinate one to two trips to Sacramento each year to meet with legislators and Pagel of 10 discuss key issues. These trips will occur in May.lune and September to coincide with the budget and year-end flurry of bills. In addition, staff will coordinate one to two trips to Annual Activities Washington, D.C. each year to meet with Members of Congress and staff. These trips will occur in March- February-March April and September-October based on issues and the Adoption of Legislative Congressional calendar. Platform March 3. Proactively protect OCSD's property taxes Adv@ Steering es While the State Budget situation has stabilized, the @ Steering threat of OCSD losing its property taxes remains, March-April particularly as cities and counties struggle to deal with DC Trip 1 the loss of redevelopment agencies. May-June Staff will aggressively protect OCSD's property taxes Sacramento Trip 1 by meeting with legislators and their staff locally and in Sacramento to tell our story how OCSD has trimmed June costs and saved tax payer dollars. There are nine Advocates'Updates state legislators within OCSD's service area. Staff and @ Steering the legislative advocates will meet with all the August-September legislators to let them know how we use local property Advocates'Updates taxes and what we do to support the local economy. @ Steering 4. Aggressively advocate OCSD's legislative September-October Interests Sacramento Tnp 2 DC Trip 2 During the legislative sessions (throughout the year) staff will proactively identify key legislation that either December supports OCSD's mission or hinders our ability to Legislative Workshop serve the public. Each month, in addition to the full list w/advocates of bills we are tracking (the bill matrix) staff, will 11 highlight priority bills and the action we are taking to advocate OCSD's interests. When appropriate, staff and the lobbyists will request help from the Steering Committee through letters or phone calls. In the meantime, lobbyists and staff will meet regularly with legislators to tell our story and communicate our positions. These interactions will be reported back to the Steering Committee via the monthly report and updates. 5. Seek funding when appropriate In addition to legislative advocacy, the Steering Committee directed staff to seek grant opportunities that are appropriate. This means that funding will line up with projects and not cause heavy administrative or financial burdens on OCSD Staff. Page 2 of 10 Towards that end, staff and the grant consultants will aggressively pursue project funding opportunities and report all grant activity to the Steering Committee monthly. State Legislative Update Legislative Advocates: Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs (TPA) State Political Update On May 14 the Governor released his May Revise of the proposed state budget for Fiscal Year 2013-14. Overall the May Revise budget proposal assumes the State's revenues in 2013-14 will be approximately $1 billion less than anticipated in the January budget; it also assumes that the unanticipated revenues that were received in the first quarter of 2013 were one-time in nature and not indicative of a larger ongoing revenue stream. While the budget does assume modest economic growth over the next several years, it also factors in federal actions, such as the recent payroll tax increase and impacts of the sequester cuts, which will have a negative impact on growth. The Governor's May Revise does propose several significant changes from the January budget. Key items that are included in the May Revise are: targeted investment in K-14 education, state expansion of health care under the Affordable Care Act, and a modification of the state's economic development program. The month of June will be dominated by budget related activity, as the house of origin deadline for bills was May 31 and the second house deadline is still many weeks away. The bulk of work being done in the Capitol is related to the budget. The Budget Conference committee began meeting on May 31 and is expected to complete their work no later than June 10. While the conference committee will have reviewed all of the items that the Assembly and Senate differed on, there will still be items left to resolve with the Administration, including how to resolve differences in revenue projections between the Governor and Legislature. The Legislature is projected a rosier economic outlook than the Administration, resulting in their budget proposes more spending. The Governor, Assembly Speaker, and Senate Pro Tem will be meeting over the coming days to iron out all of these remaining differences. The current goal is to have a package of budget bills that can be voted on by the Legislature by June 14. This will allow the Legislature to take a vote prior to the constitutional deadline to pass a budget. The Legislature is set to recess for the summer on July 12 and does not return until mid-August. Page 3 of 10 OCSD Legislation of Interest AB 371 (Salas) This has been OCSD's top bill priority this year and we aggressively opposed this measure allowing Kern County to ban biosolids in certain parts of the County. As we have reported before, this bill would increase the costs of recycling biosolids and potentially even ban our ability to turn biosolids into compost in Kern. Staff met with the Orange County Delegation locally and in Sacramento while the advocates worked with CASAS and others on communicating our opposition. A coalition of Orange County, CASA, San Francisco, Los Angeles City and County fought hard and pushed back a bill that was headed for the Senate. Just a few weeks back, it was all but certain AB 371 would sail through the Assembly and we would have to fight it in the Senate or even at the Governor's office. After staff and the lobbyists spent a day discussing the bill in Sacramento just days before the May 31 deadline, the bill never made it to the Assembly floor. Currently AB 371 is on the inactive file. Meaning it is a two-year bill and will not be considered until January 2014. AB 690 (Campos) This measure would have amended provisions governing the formation of infrastructure financing districts. Included in these provisions was an elimination of the voter approval requirements, as well as the requirements that special districts opt-in before property tax revenues could be directed to the infrastructure financing district. The Assembly on Local Government Committee received overwhelming opposition to AB 690, arguing that the bill would unfairly divert necessary property tax revenues from districts. In response to the immense amount of opposition, the bill has now been amended to be aligned with current law requiring local agencies' consent prior to property tax revenue diversion for the creation of a Jobs and Infrastructure District (JID) program. OCSD opposes this bill unless amended and we sent letters and spoke to members about the bill before it was heard. The bill was held in the Assembly Committee on Local Government without ever being heard. The measure is not eligible to be considered again until January 2014. SIB 785 (Wolk) The bill makes three substantive changes to current law: (1) Lowering, from $2.5 million to $1 million, the value of projects that counties can construct using design-build; (2) Page 4 of 10 Eliminating the sunset dates that would have automatically repealed some statutes authorizing the use of the design-build method; (3) Eliminates the cap on the number of projects that the state can construct using the design-build method for specified types of projects. According to the California Legislative Analyst's Office, this bill is intended to "...rewrite design- build statutes to eliminate inconsistencies in existing law and consolidate state and local agencies' statutory authority to develop projects using design-build. By consolidating statutes and creating more uniform requirements, SB 785 makes the state laws governing the design- build method clearer, more flexible, and easier to use'. OCSD supports this bill and staff is working with CASA on the bill to keep it moving. The bill passed out of the Senate Governance and Finance committee, but was placed on the Inactive File on the Senate Floor by Senator Wolk. The measure received significant opposition from organized labor and did not have sufficient votes to pass the Floor. The measure will not be eligible for consideration until January 2013. The author expects this to be a two-year bill. SB 691 (Hancock) This bill is intended to narrowly target one-day violations that affect great numbers of individuals affected by air quality violation with higher civil penalties. Senator Hancock stated that current single-day violations of air quality regulations that affect entire communities lack adequate financial consequences. She also stated that having adequate penalties for non-compliance is essential to protecting public health and safety. However, opponents of the bill stated that immensely increasing the penalties would impose a penalty based simply on allegations of annoyance, whether or not the actual emissions are harmful or in violation of an existing permit standard or requirement. OCSD opposes this bill. The bill passed out of the Senate on a 22-15 vote and is now in the Assembly. The measure will likely be heard in an Assembly policy committee in the second half of June. Staff and TPA met with members of the Orange County delegation and members of the Senate Judiciary Committee prior to the measure being heard in the Senate to express the District's concems. As a result of our work, Senator Correa opposed the bill on the Senate floor. Staff and TPA have been working with Senator Hancock to amend the bill so that it will not apply to OCSD, but will still accomplish her objectives. On May 24 the measure was amended to exempt nuisance odor violations; however, there is still concern that this Page 5 of 10 language does not go far enough, so TPA will continue to work to further amend the language. The full list of bills being tracked by staff and Townsend Public Affairs is attached. Specific Activities of the Month: • TPA worked to develop a Sacramento Lobbying Day on May 14 and participated with OCSD to discuss priority legislation. • TPA testified in opposition to AB 371 at the Assembly Local Government hearing. • TPA met with numerous legislators prior to AB 371 being considered on the Assembly Floor. • TPA has been working with Senator Hancock's office to secure amendments for SB 691 that would exclude OCSD from its provisions. • TPA updated the Legislative Matrix for OCSD. • TPA is continually monitoring legislation that could have any potential impact on the District. Federal Legislative Update Legislative Advocate: Eric Sapirstein, ENS Resources Congress continued to move on spending bills during the past month. The prospect for final fiscal year 2014 spending bills by October 1, 2013 is remote because of differences between the House and Senate budget and spending committees. The challenge is found in the two chambers' baseline numbers from which the twelve spending bills are drafted. There is a ninety-one billion dollar difference between the two budgets. The House budget is the lower of the two baselines. Complicating matters is the absence of a formal budget conference committee to reconcile differences. Unless a breakthrough occurs in the next few weeks, the House and Senate will proceed to develop their own spending plans without an overall agreement on total spending. In the past, this situation resulted in a drawn out appropriations debate that resulted in the passage of a continuing resolution. This may become the outcome for this year. Another point that vividly illustrates the challenge is the White House took the unusual step of issuing a veto threat on the House spending bills for Homeland Security and Defense before even being passed. This veto threat was made because the spending levels that the Committee on Appropriations approved assume no agreement to avoid a second round of sequestration. Finally, during the past month, we met with the Steering Committee to review our proposed priorities for OCSD, outlining opportunities that may arise in the coming year. WRDA Passes Senate; House Committee Prepares Alternative As expected the Senate provided overwhelming support for renewal of the Water Resources Development Act (83-14). The House Committee on Transportation and Page 6 of 10 Infrastructure is in the process of determining how to proceed with the development of an alternative measure later this summer. The Senate measure, S. 601, is notable for a number of provisions that would devolve project-funded activities to local agency sponsors. For OCSD, this could have a benefit related to the SARI Line relocation and potential demands that OCSD remove riprap that has become a part of the river during the decades of the line being in the riverbed. Because of the questionable benefits of requiring OCSD to remove the riprap (due to the fact that it has become a part of the ecosystem), we initiated discussions with House committee staff on the potential need for clarification on when such actions can or should be mandated. The committee staff has requested that additional information on the background of the issue. As noted in past months, the Senate bill includes a program known as WIFIA. This pilot program would provide for a $50 million loan assistance program. This is similar to the SRF program, but with more lenient loan terms and a focus on large projects to enhance investments in water and wastewater infrastructure. In a troubling move, the provision provides that any project funded with WIFIA assistance is limited to 49% WIFIA funding for the project's costs. The remaining 51% would be precluded from using tax-exempt bonds. We discussed this matter with the Chairman's staff. They indicated that this prohibition was necessitated by arcane budget rules that require new program spending cannot increase federal revenue losses. Thus, the prohibition on tax- exempt financings would eliminate the prospect of tax-exempt bonds being issued and avoid revenue loss attributable the tax-exempt nature of the bond interest received. It is assumed that efforts will be taken during conference deliberations later this year or next to delete this prohibition. USEPA Administrator Nominee on Hold Gina McCarthy, the President's nominee to be USEPA Administrator, received a positive vote from the Committee on Environment and Public Works, but only after a contentious and failed first effort. Republican committee members boycotted the first vote to signal continued frustration over the Administration's refusal to provide adequate responses to questions raised during McCarthy's confirmation hearing. Only after committee Chairman Barbara Boxer threaten to invoke procedural rules to allow for a vote without Republican participation did the committee meet and approve the nomination for Senate Floor debate and a vote. However, McCarthy continues to have a "hold" on her nomination by a couple of Senators. As a result, it is highly improbable that the Senate will vote on the nomination before the July 41h Recess. Until a vote is taken and McCarthy is presumably approved, Acting Administrator Robert Perciasepe will continue managing the agency. Tax Reform The effort to eliminate or sharply curtail the benefits from tax-exempt funding at the state and local level is continuing to generate concerns that this may not be a political exercise. In the past month, the Senate Committee on Finance released a white paper outlining the findings from a series of hearings into ways to reform the tax code. The Page 7 of 10 paper details the distortion created by such bond financings and cites the value of considering the elimination of the tax exemption, as sought by the administration. If this effort becomes part of the anticipated tax reform legislative initiative, the impacts upon OCSD could be significant. The advocates and staff will continue to closely monitor the issue. We have already sent letters to members of the Orange County Delegation, and we discussed this issue when we were in DC a few months back. We will continue to aggressively advocate our position as details unfold. We are also participating in a U.S. Conference of Mayors stakeholders group to develop strategy to counter efforts to curtail the availability of this financing tool. Climate Resiliency Needs—No Change from Past Month While the Congress continues to avoid any discussion on climate change, the impact of severe storm events and drought continue to attract congressional interest. To that end, two bills have been introduced. The first bill, introduced by Representative Lois Capps (D-CA), is a rewrite of legislation from last Congress. Under the Water Infrastructure Resiliency and Sustainability Act of 2013 ft.R.765 ), USEPA would be required to implement a program to address infrastructure needs to weather climate impacts. The proposed grants program centers on water supply. However, provisions are provided to support improved water quality at municipal utilities and ecosystem protection. Grant assistance would be available on a 50% cost-shared basis. Funding is authorized at $50 million per year for five years. In the Senate, the WRDA rewrite, S. 601, contains a provision to provide $100 million in study assistance to support work to address impacts from storm events and recommend resiliency-related improvements at impacted infrastructure. Sunshine on Conflicts Act (H.R. 836) We continued to advocate for House action on this measure. At a recent House Committee on Transportation and Infrastructure hearing into USEPA's fiscal year 2014 budget request, a question was posed to the Acting Assistant Administrator of Water about the status of revising the rule governing regional water board appointees. The response that was provided was inconclusive. We contacted USEPA's Office of Water to follow-up. The agency is trying to determine if it will issue a rule to revise the income restriction test. At the same time, we arranged a meeting between Rep. Miller's staff and NACWA. At this meeting, Miller's staff asked NACWA to generate support for the legislation. Rep. Miller's staff is working with the committee to ascertain when a hearing on the legislation might be scheduled. If this hearing occurs, it would be a prime opportunity for the District to present testimony on behalf of the legislation Page 8 of 10 Senate Poised to Approve Farm Bill The Senate is expected to vote final approval of its version of the Farm Bill, S. 954. The measure is important to OCSD for two primary reasons. First, efforts to rollback a USEPA rule regulating pesticide applications from the air appears unlikely to be voted on. This regulation provides USEPA with the ability to permit such activities under the NPDES program. The prospect of a rollback would have further exposed OCSD and other POTWs to new control mandates related to pesticides in waterways. While such impacts might remain a possibility, the continued ability of the agency to require application conditions and other procedures should enhance an understanding of the transportation and fate of pesticides thereby allowing for more cost effective and appropriate control mandates. The second issue involves the use of agricultural funding assistance to develop collaborative watershed improvement programs between farmers and a POTW. Under the Natural Resources Conservation Service, the Senate bill provides $100 million to support such programs. Alternative Energy and Water Quality The energy water nexus continues to command a significant level of congressional attention. The Senate Committee on Energy and Natural Resources voted and reported the Shaheen-Portman energy efficiency legislation, the Energy Savings and Industrial Competitiveness Act of 2013 (S.761). We are assuming the bill will also be acted upon by the House with the President signing into law later this year. For OCSD, the legislation could provide for additional support for alternative energy priorities as well as any upgrades of technologies to reduce energy costs associated with water quality treatment. Grant Activity As a follow-up to the Tire-derived grant, staff submitted in December, we completed all the necessary paperwork and were notified that we were won the grant and will receive about $21,000 for landscape improvements. This is a reimbursable grant and we have until 2015 to complete the work. Grants activity for the month • We reviewed the 2014 National Coastal Wetlands Conservation Grant for eligibility, but OCSD does not have projects that would qualify for the program. • Staff reviewed the MWD Foundation Access Program for funding water recycling at Plant 2. We determined that based on the criteria, we are not eligible to apply. • Eric Sapirstein and staff are seeking funding to retrofit the Central Generators to meet air quality mandates. The project is estimated to cost about$30 million. • Staff is also working with Sapirstein to seek funding for the removal of rock in the Santa Ana River placed there during heavy storms to protect the SARI line. Page 9 of 10 PRIOR COMMITTEE/BOARD ACTIONS N/A CEQA N/A BUDGET ) DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: • OCSD Legislative Matrix (7 Pages) • NACO: Call to Action: Protect Municipal Bonds (14 Pages) Page 10 of 10 Return to Aaerda Report OCSD Legislative Matrix Updated Monday, June 10, 2013 AB 21 (Aleio D) Safe Drinking Water Small Community Emergency Grant Fund. Current Text: Amended: 2/14/2013 uz Ium Introduced: 12/3/2012 Last Amend: 2/14/2013 Status: 6/6/2013-Referred to Coms. on E.Q. and HEALTH. Location: 6/6/2013-S. E.Q. 2Year Desk Policy Fiscal I Floor DeskIlI Polic Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st Nouce 2nd House Conc. Calendar: 6/12/2013 9:30 a.m. -Room 3191 SENATE ENVIRONMENTAL QUALITY, HILL, Chair Summary: Would authorize the Department of Public Health to assess a specified annual charge in lieu of interest on loans for water projects made pursuant to the Safe Drinking Water State Revolving Fund, and deposit that money into the Safe Drinking Water Small Community Emergency Grant Fund, which the bill would create in the State Treasury. The bill would authorize the department to expend the money for grants for specified water projects that serve disadvantaged and severely disadvantaged communities, thereby making an appropriation. Position AB 26 (Bonill D) California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund. Current Text:Amended: 5/28/2013 oe, hv,, Introduced: 12/3/2012 Last Amend: 5/28/2013 Status: 6/3/2013-In Senate. Read first time. To Com. on RLS. for assignment. Location: 6/3/2013-S. RLS. 2Year Desk Policy Fiscal Floor Desk Polity Fiscal(Floor Conf. Enrolled IVetoed Chaptered Dead Is[House 2nd House Conc.l Summary: Would require projects involving construction, alteration, demolition, installation, repair, and maintenance work paid for in whole or in part from the Greenhouse Gas Reduction Fund to be considered public works, as defined. The bill would authorize moneys from the Greenhouse Gas Reduction Fund be made available to the owner or operator of a refinery to perform work to reduce greenhouse gas emissions if all work at the refinery related to reducing greenhouse gas emissions that is not performed by the owner's or operator's own employees and that falls within an apprenticeable occupation, as defined, will be performed by skilled journeypersons, as defined, and registered apprentices, as defined. This bill contains other related provisions. Position AB 37 (Peres D) Environmental quality: California Environmental Quality Act: record of proceedings. Current Text:Amended: 3/18/2013 uac tvml Introduced: 12/3/2012 Last Amend: 3/18/2013 Status: 6/6/2013-Referred to Com. on E.Q. Location: 6/6/2013-S. E.Q. 2Year Desk Polity Fiscal Floor Desk Polic Fiscal Floor Conf.l Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. Summary: Would require, until January 1, 2017, for specified projects or upon the request of a project applicant and the consent of the lead agency, that the lead agency among other things, prepare a record of proceedings concurrently with the preparation of negative declarations, mitigated negative declarations, EIRs, or other environmental documents for specified projects. Because the bill would require , for specified projects, a lead agency to prepare the record of proceedings as provided, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws. Position AB 8 (Skinner D) Proposition 39: implementation. Current Text:Amended: 5/24/2013 ecr h�, Introduced: 12/3/2012 Page 1 I J Return to Aaenda Report Last Amend: 5/24/2013 Status: 5/29/2013-In Senate. Read first time. To Cam. on RLS. for assignment. Location: 5/29/2013-5. RIS. 2Year Desk I Policy I Fiscal I Floor Desk Polic Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2ntl House Conc. Summary: Would require, for each fiscal year that revenues are deposited into the Clean Energy Job Creation Fund, that 75% of those revenues be provided to eligible Institutions for grants for eligible projects. The bill would require the State Department of Education to administer 89% of those revenues for local educational agencies for the purposes of eligible projects, as specified. The bill would require the Chancellor of the California Community Colleges to administer 11% of those revenues for the California Community Colleges. The bill would require 25% of the revenues deposited into the Clean Energy Job Creation Fund to be transferred to the State Energy Conservation Assistance Account, thereby making an appropriation. This bill contains other related provisions. Position Support if Amended A6 114 (Sala s D) Preposition 39: implementation:workforce development. Current Text:Amended: 5/8/2013 w norm Introduced: 1/14/2013 Last Amend: 5/8/2013 Status: 6/6/2013-Referred to Corns. on L. &I.R. and E., U., &C. Location: 6/6/2013-5. L. &I.R. 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc.l Calendar: 6/12/2013 9:30 a.m. -Rose Ann Vuich Hearing Room (2040) SENATE LABOR AND INDUSTRIAL RELATIONS, MONNING, Chair Summary: Would require the Labor and Workforce Development Agency, in consultation with specified entities, to develop and implement the Clean Energy Jobs and Workforce Development Program to award grants to eligible entities, as defined, for projects to provide job training on energy efficiency and clean energy projects that serve low-income or unemployed residents of economically disadvantaged communities. Position Watch AS 425 (Sala s D) Water: water transfers: water right decrees. Current Text: Amended: 4/23/2013 �r nwi Introduced: 2/15/2013 Last Amend: 4/23/2013 Status: 6/6/2013-Referred to Com. on N.R. &W. Location: 6/6/2013-5. N.R. &W. 2Year Desk Policy Fiscal Floor Desk Polic FiscalFloor C. Enrolled Vetoed Chaptered Dead 1st House 2ntl House Conc. Calendar: 6/25/2013 9:30 a.m. -Room 112 SENATE NATURAL RESOURCES AND WATER, PAVLEV, Chair Summary: Under current law, any water right determined under a court decree issued after January 1, 1981, is transferable as specified. This bill would eliminate the requirement that a court decree be issued after January 1, 1981. Position AS 436 (l9aes_Sawver D) Inverse condemnation: comparative fault. Current Text:Amended: 5/13/2013 ,r n�mi Introduced: 2/15/2013 Last Amend: 5/13/2013 Status: 6/6/2013-Referred to Com. on JUD. Location: 6/6/2013-5.JUD. 2Year Deskl Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead list House 2ntl House Conc.l Summary: Would apply the doctrine of comparative fault to inverse condemnation actions and would require a court or arbitrator to reduce the compensation paid to a plaintiff in an inverse condemnation proceeding in direct proportion to his or her percentage of fault, if any, in the damaging of property Page 2/7 Return to Aaentla Report that constitutes a taking , as specified . This bill contains other related provisions and other existing laws. Position Support AB 54 (Campo;<D) California Environmental Quality Act: translation. Current Text:Amended: 5/24/2013 z Introduced: 2/20/2013 Last Amend: 5/24/2013 Status: 6/3/2013-In Senate. Read first time. To Com. on RLS. for assignment. Location: 6/3/2013-5. RLS. 2Year I Deski Policy Fiscal Floor Desk Polic Fiscal Floor Conf. Enrolled Vetoed Cha ptered Dead 1st House 2nd House Conc. Summary: Would require a lead agency to translate, as specified, certain notices required by the California Environmental Quality Act and a summary of any negative declaration, mitigated negative declaration, or environmental impact report when a group of non-English-speaking people, as defined, comprises at least 25% of the population within the lead agency's jurisdiction and the project is proposed to be located at or near an area where the group of non-English-speaking people comprises at least 25% of the residents of that area. By requiring a lead agency to translate these notices and documents, this bill would Impose a state-mandated local program. This bill contains other related provisions and other existing laws. Position Oppose Unless Amended AS 792 (Mull O D) Local government: open meetings. Current Text:Amended: 5/6/2013 uyt html Introduced: 2/21/2013 Last Amend: 5/6/2013 Status: 5/23/2013-Referred to Com. on GOV. & F. Location: 5/23/2013-5. G. &F. 2Year Deskl Policyl Fiscal I Floor Desk I Policy I Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead I list House 2nd House Conc. Summary:The Ralph M. Brown Act requires that the agenda or notice of both regular and special meetings be freely accessible to members of the public, and be posted on the local agency's Internet Web site, if the local agency has one. This bill, if the local agency is unable to post the agenda or notice on Its Internet Web site because of software, hardware, or network services Impairment beyond the local agency's reasonable control, would specify that the local agency may conduct the meeting as long as the legislative body meets specified requirements, Including, among other things, posting the agenda or notice immediately upon resolution of the technological problems, as specified. This bill contains other related provisions and other existing laws. Position Support AS 803 (Gomez D) Water Recycling Act of 2013. Current Text:Amended: 4/22/2013 Introduced: 2/21/2013 Last Amend: 4/22/2013 Status: 5/29/2013-In Senate. Read first time. To Com. on RLS. for assignment. Location: 5/29/2013-5. RLS. 2Year I Desk PolIcVJ Fiscal I Floor Desk Policy]Fiscal I Floor Conf. Enrolled Vetoed Cha ptered Dead list House 2nd House Conc. Summary: Current law requires the State Department of Public Health to establish uniform statewide recycling criteria for each varying type of use of recycled water where the use involves the protection of public health. Current regulations prescribe various requirements and prohibitions relating to recycled This bill , the Water Recycling Act of 2013, would provide that this notifcation requirement does not apply to an unauthorized discharge of effluent of treated sewage defined as recycled water, as defined. This bill contains other related provisions and other current laws. Position Support AS 1140 (Daly D) Public works: prevailing wages. Current Text:Amended: 5/24/2013 per nmi Page 3/7 Return to Mends Rom Introduced: 2/22/2013 Last Amend: 5/24/2013 Status: 6/3/2013-In Senate. Read first time. To Com. on RLS. for assignment. Location: 6/3/2013-5. RLS. 2Year Desk Polity Fiscal Flaar Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House C onc.I Summary: Would state that If the Director of Industrial Relations determines, within a semiannual period, that there is a change in any prevailing rate of per diem wages in a locality, that determination applies to any public works contract that is awarded or for which notice to bidders is published on or after January 1, 2014. The bill would authorize any contractor, awarding body, or specified representative affected by a change in rates on a particular contract to, within 20 days, file with the director a verified petition to review the determination of that rate, as specified. Position Oppose AB 1333 (Hernandez. Roger D) Local government: contracts. Current Text:Amended: 5/20/2013 oar n�mi Introduced; 2/22/2013 Last Amend: 5/20/2013 Status: 5/29/2013-In Senate. Read first time. To Com. on RLS. for assignment. Location: 5/29/2013-5. RLS. 2Year I Desk Policy I Fiscal Flaar Desk Policy I Fiscal Floor Conf. Enrolled Vetoed Chaptered Deatl let House 2nd House Conc.I Summary: Would require , with a specified exception, the legislative body of a city, county, or district to review any contract or memorandum of understanding (MOU) with a private party, with a total annual value of $250,000 or more and containing an automatic renewal clause, at least once every three years on or before the annual date by which the contract may be rescinded. This bill contains other related provisions. Position Oppose Unless Amended AB 1336 (Frazis[D) Prevailing wages: payroll records. Current Text:Amended: 4/17/2013 ¢i ttmi Introduced: 2/22/2013 Last Amend: 4/17/2013 Status: 6/6/2013-Referred to Coors. on L. &I.R. and IUD. Location: 6/6/2013-5. L. &I.R. 2Year DesklPolicyl Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc.I Calendar: 6/12/2013 9:30 a.m. -Rose Ann Vuich Hearing Room (2040) SENATE LABOR AND INDUSTRIAL RELATIONS, MONNING, Chair Summary:A Joint labor-management committee, established pursuant to a specified provision of federal law, is authorized to bring an action against any employer who fails to pay prevailing wages as required by state law. The action Is required to be commenced not later than 180 days after the filing of a valid notice of completion in the office of the county recorder in each county in which the public work, or some part thereof, was performed, or not later than 180 days after acceptance of the public work, whichever occurs last. This bill would delete the requirement that the action be commenced not later than 180 days after the filing of a valid notice of completion, as prescribed, or not later than 180 days after acceptance of the public work, whichever occurs last, and would instead require that the action be commenced not later than 24 months after the wages were due. This bill contains other related provisions and other existing laws. Position Oppose SB 11 (Payley D) Alternative fuel and vehicle technologies:funding programs. Current Text:Amended: 5/28/2013 w tvm Introduced: 12/3/2012 Last Amend: 5/28/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk Policy Fiscal Floor Desk Policy) Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Con'• Pa&e4/7 Return to Aaenda Recod Summary: Would provide that the State Air Resources Board, until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the board to aggregate and make available to the public, no later than January 1, 2014, and every year thereafter, the number of hydrogen-fueled vehicles that automobile manufacturers project to be sold or leased over the next 3 years, as reported to the board, and the number of hydrogen-fueled vehicles registered with the Department of Motor Vehicles through April 30. This bill contains other related provisions and other existing laws. Position Support SB93 (Wolk D) Shared Renewable Energy Self-Generation Program. Current Text: Amended: 5/28/2013 earl Introduced: 12/11/2012 Last Amend: 5/28/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead Is[House 2ntl House Conc. Summary: Would enact the Shared Renewable Energy Self-Generation Program. The program would authorize a retail customer of an electrical corporation to acquire an interest, as defined, in a shared renewable energy facility, as defined, for the purpose of receiving a bill credit to offset all or a portion of the customer's electricity usage, consistent with specified requirements. The bill would repeal the program on January 1, 2019. This bill contains other related provisions and other existing laws. Position Watch 59i_fi¢ (Corbett D) Proposition 39: implementation. Current Text: Amended: 5/28/2013 �f ocj Introduced: 1/10/2013 Last Amend: 5/28/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Deski Policy I Flscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead list House 2ntl House Conc. Summary: Would require the State Energy Resources Conservation and Development Commission to develop and administer a competitive financial assistance program for energy efficiency and clean energy onsite generation projects that are consistent with specified provisions of the California Clean Energy Jobs Act and to develop and adopt certain guidelines for the program. The bill would provide that eligible facilities for the competitive financial assistance program include, but are not limited to, hospitals and wastewater treatment facilities. Position SB 32 (Hues D) Water recycling. Current Text: Amended: 5/28/2013 u ocl Introduced: 2/19/2013 Last Amend: 5/28/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk I Policy I Fiscal I Floor I Desk Policy Flscal Floor Dead I lConf. Enrolled Vetoed Chaptered st House I I Conc. Summary: Would require the State Department of Public Health, in consultation with the State Water Resources Control Board, to Investigate the feasibility of developing uniform water recycling criteria for direct potable reuse and to provide a final report on that investigation to the Legislature not later than December 31, 2016. This bill would also require the department to complete the public review draft of its report by September 1, 2016. This bill contains other related provisions and other existing laws. Position Page 5/7 Return to Agenda Report 5B 434 (Jackson D) California Environmental Quality Act: notice. Current Text:Amended: 4/3/2013 uyt hlml Introduced: 2/21/2013 Last Amend: 4/3/2013 Status: 5/29/2013-In Assembly. Read first time. Held at Desk. Location: 5/29/2013-A. DESK 2Year I Desk Policy Fiscal Floor Desk PoityFiscal Floor FCO.f. Enrolled Vetoed Chaptered Dead list House 1Conc. Summary: Would require a lead agency to conduct at least one public scoping meeting for the specified projects and to provide notice to the specified entities of at least one public scoping meeting. This bill contains other related provisions and other existing laws. Position SB 633 (Pavlev D) CEQA. Current Text:Amended: 5/6/2013 y isms Introduced: 2/22/2013 Last Amend: 5/6/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead let House 2nd Rouse Conc. Summary:The California Environmental Quality Act prohibits a lead agency or responsible agency from requiring a subsequent or supplemental environmental impact report (EIR) when an EIR has been prepared for a project pursuant to its provisions, unless one or more of specified events occurs, including, among other things, that new information, which was not known and could not have been known at the time the EIR was certified as complete, becomes available. This bill would specify that the new information that becomes available was not known and could not have been known by the lead agency or any responsible agency at the time the EIR was certified as complete. This bill contains other related provisions and other existing laws. Position SB 69 (Hancock D) Nonvehicular air pollution control: penalties. Current Text:Amended: 5/24/2013 unt mm Introduced: 2/22/2013 Last Amend: 5/24/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead It House 2nd Rouse Conc. Summary: Current law, commencing January 1, 2014, prohibits a person from discharging from nonvehicular sources air contaminants or other materials that cause Injury, detriment, nuisance, or annoyance to the public, or that endanger the comfort, repose, health, or safety of the public, or that cause injury or damage to business or property, as specified. This bill would require, unless the original penalties prescribed are greater, that on the initial date of a violation of this provision, a person who violates this provision by emitting a discharge from a stationary source required by federal law to be included in an operating permit program established pursuant to Title V of the federal Clean Air Act, when that discharge includes the release of toxic air contaminants, to be liable for a civil penalty of not more than $100,000. This bill would require that the recovery of a civil penalty under these provisions precludes prosecution of a misdemeanor for the same offense. Position Oppose SB 731 (Steinberg D) Environment: California Environmental Quality Act and sustainable communities strategy. Current Text:Amended: 5/24/2013 m[ tvm Introduced: 2/22/2013 Last Amend: 5/24/2013 Status: 5/30/2013-In Assembly. Read first time. Held at Desk. Location: 5/30/2013-A. DESK 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Page 6/7 R rn A n R Dead 1 1st House 2nd House Conc. Summary: Would provide that aesthetic Impacts of a residential, mixed-use residential, or employment center project, as defined, within a transit priority area, as defined, shall not be considered significant Impacts on the environment. The bill would require the office to prepare and propose, and the Secretary of the Natural Resources Agency to certify and adopt, revisions to the guidelines for the implementation of CEQA establishing thresholds of significance for noise, and for the transportation and parking impacts of residential, mixed-use residential, or employment center projects within transit priority areas. This bill contains other related provisions and other existing laws. Position Total Measures: 21 Total Tracking Forms: 21 Page 7/7 0 National Association of Counties The Voice of America's Counties CALL TO ACTION : PROTECT MUNICIPAL BONDS NACO.ORG JUNE 2013 Return to Aoenda Reoorl THE IMPACT OF CHANGING THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS Municipal Bonds: Immediate Action Needed ! ® R f t lll.� N f in " URGE YOUR SENATORS: 1. To support the tax-exemption for municipal bonds as the debates over the federal debt and deficit and comprehensive tax reform continue URGE YOUR HOUSE MEMBERS: 1. To co-sponsor House Resolution 112 which former local elected officials Reps.Lee Terry(R-NE)and Richard Neal (D-MA)introduced to reinforce the importance of municipal bonds. ✓ If your Members would like to sign on,have their staff contact either A.T.Johnston in Rep.Terry's office (at.iohnstongmail.house.gov or 202.225.4155)or Ann Jablon in Rep.Neal's office (ann.iablonOmail.house.gov or 202.225.5601) 2. To sign on to a House"Dear Colleague"letter led by former county executive Rep.Dutch Ruppersberger(D-MD) and Rep. Randy Hultgren (R-IL)to oppose any changes to the tax-exempt status of municipal bonds ✓ If your Members would like to sign on,have their staff contact either Walter Gonzales in Rep. Ruppersberger's off ice(walter.aonzales(mmail.house.gov or 202.225.3061)or Scott Luginbill in Rep. Hultgren's office(Scott.LURinbill0mail.house.gov or 202.225.2976) Return to Aoenda Reoorl NAI: 0:; THE IMPACT OF CHANGING National Association of Coun BONDSTHE TAX-EXEMPT STATUS OF MUNICIPAL MEL MUNICIPAL BONDS: A CRITICAL ROLE IN LOCAL INFRASTRUCTURE, JOBS AND EVERY DAY LIFE ♦ Tax-exempt municipal bonds are the single most important tool that local governments use for financing critical infrastructure ♦ Any change to the taxation status of often voter-approved debt issued by local governments risks: 1. Nature of the U.S. federal-state-local partnership 2. Slowing economic recovery and investments in vital infrastructure 3. Shifting tax burden to local level, especially property tax owners 4. Forcing more cuts in local gov't jobs (i.e. teachers, police, firefighters) Current Market = Over bonds outstanding, 11 Return to Agenda Reoorl JUNE 13 NAL�� National AssociationotCountier , THE IMPACT OF CHANGING THE TAX-EXEMPT STATUS OF • . BONDS Proposals to Alter the Tax-Exempt Status of Municipal Bonds Continue to Remain a Threat to County Government •Simpson-Bowles: Proposed elimination of all income tax expenditures; interest earned on state r and local municipal bonds would be fully taxable for newly-issued tax exempt municipal bonds • President's FY2013 Budget Proposal: Proposed placing a 28 percent limit on the value of specified deductions or exclusions from AGI and all itemized deductions; the limit would apply on interest 4 earned for new and outstanding state and local tax exempt bonds • FY2014 Senate Budget Resolution:Suggested the possibility of a cap being placed on tax expenditures, which could include the exemption for interest earned on state and local municipal r bonds Vfdent's FY2014 Budget Proposal: Reiterates 28 percent cap on the value of certain tax fits, including interest earned on new and outstanding state and local tax exempt bonds Return to Aoenda Reoorl JUNE 2013 THE IMPACT OF THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS U.S. SENATE UPDATE ■ FY2014 Senate Budget Resolution:The Senate Budget Resolution, passed by a vote of 50-49, suggested the possibility of a cap being placed on tax expenditures—which could include the exemption for interest earned on municipal bonds. This language could support either a 28 percent cap (as proposed by the Obama Administration) or total elimination (as proposed by the Simpson-Bowles Commission)of tax- exempt financing ♦ Impact:If a 28-percent benefit cap an tax-exempt interest had been in effect during the last decade, it is estimated that this would have cost states and localities an additional$173 billion in interest expense for infrastructure projects financed over the past ten-year period ■ Major Coalition Letter to Senate Leaders: NACo/N LC/U SCM led a major coalition on a letter to Senate leaders urging them to protect municipal bonds as they considered the FY2014 Budget Resolution. Nearly 60 major groups signed on ■ Sen. Begich(D-AK) Letter to President Obama:Sen. Begich circulated a letter in the Senate urging the Administration to protect the tax-exempt status of municipal bonds in the ongoing debt and deficit negotiations. Fourteen Senators signed on and the letter was sent in early April ■ Senate Finance Committee Working on Tax Reform:The Senate Finance Committee, led by Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT), continue to convene regularly to discuss options for tax reform Return to Aoenda Reoorl THE IMPACT OF CHANGING THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS U.S. HOUSE OF REPRESENTATIVES UPDATE ■ House Ways and Means Committee Hearing on Tax Reform:Hearing held March 19,"Tax Reform and Tax Provisions Affecting State and Local Government,"primary topic of discussion was tax-exempt municipal bonds IN House Ways and Means Committee Established Working Groups to Tackle Tax Reform: 11 working groups gathered stakeholder feedback and data on topics related to tax reform,then submitted the information to the Joint Committee on Taxation,who compiled the findings in a report to Ways and Means Committee. The report was released on May 6 ■ Reps.Terry and Neal Lead House Resolution to Support Muni Bonds:H.Res.112, introduced by Reps. Lee Terry(R-NE)and Richard Neal (D-MA),celebrates the importance of municipal bonds;co-sponsors still needed ✓ If your Members would like to sign on, have their staff contact either A.T.Johnston in Rep.Terry's office (at.iohnston(dmail.house.gov or 202.225.4155)or Ann Jablon in Rep. Neal's office(ann.iablon(almail.house.gov or 202.225.5601) ■ Reps.Ruppersberger and Hultgren Lead Letter to House Leadership Urging Preservation of Tax-Exempt Status of Municipal Bonds: Reps. Dutch Ruppersberger(D-MD)and Randy Hultgren(R-IL)are circulating a "Dear Colleague"letter to House Leadership that urges preserving the tax-exempt status of municipal bonds ✓ If your Members would like to sign on, have their staff contact either Walter Gonzales in Rep.Ruppersberger's office (waltecgonzales@mail.house.gov or 202.225.3061)or Scott Luginbill in Rep. Hultgren's office (Scott.Lueinbill@mail.house.gov or 202.225.2976) Return to Aoern-Reoort THE IMPACT OF THE TAX-EXEMPT STATUS OF BONDS ADMINISTRATION UPDATE ■ President Obama's FY2014 Budget Request: Similar to FY2013 request, includes 28 percent cap on the value of certain tax benefits, including tax-exempt interest on municipal bonds ♦ Cap represents a partial tax on otherwise tax-exempt bond interest and would apply to taxpayers in the 33, 35, and 39.6 percent tax brackets ♦ Cap would apply to outstanding as well as new bonds, beginning in 2014 ♦ In addition to tax-exempt interest, the cap would also apply to itemized deductions and certain other tax preferences ■ Continue to Engage in Debt and Deficit Negotiations R rn A n R THE IMPACT OF THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS TOP 10 U.S. INFRASTRUCTURE PURPOSES FOR MUNI BONDS 2003-2012 _SCHOOLS 6 I TRANSIT f514.1 BILLION 1E105.6 BILLION 2 ________HOSPITALS IAIRPORTS E287.9 BILLION 1E49.3 BILLION 3 8 - ---- ___MOUSING __WATER AND SEWER 1 $31 0 BILLION $267.9 BILLION 9 y - - fBRIDGES ROADS E1780 BILLION l$20.2 BILLION 5 10 _-__- _ f COMBINED UTILITIES __POWER UTILITIES �$142 BILLION $1470 BILLION Source;Thomson-Reuters data,February 2013 Return to Aaenda Reoorl IMPACTTHE OF THE TAX-EXEMPT STATUS OF 'A BONDS State and local governments financed more than$1.65 trillion of Infrastructure over the last decade(2003-2012) through the tax4tcompt bond market 6,000 State and Local kkni Bonds Issuances for Inhastructure Purposes,2003-2012 $400 7,000 $350 6,000 $300 5,000 $250 4,000 $186 Billion 5190 Billion S197 Billion $� $179&Ilan $179 Billion S 160 Btllion $158 Billion 3.000 SIag EJdlmn S140 B411011 $150 $123 Billion2,000 $100 1,000 $50 2003 2004 2005 2006 2007 2008 2009 2G10 2[11 III I2 aninValue of muN bonds Issuances(billion of dollars) —.—Nun1ner o•III u III :boas issuances Source;Thomson-Reuters data,February 2013 Return to Agenda Report NAI11 \I NationalAssaiation at Counties THE IMPACT OF CHANGING BONDSTHE TAX-EXEMPT STATUS OF MUNICIPAL ♦ Tax-exempt municipal bonds are the most important tool in the U.S. for financing investment in schools, roads, water and sewer systems, airports, bridges and other vital infrastructure. State and local governments financed more than $1.65 trillion of infrastructure investment over the last decade (2003-2012) through the tax-exempt bond market ♦ Ninety (90) percent of infrastructure muni-bonds financing went to schools, hospitals, water, sewer facilities, public power utilities, roads and mass transit over the last 10 years. During that decade, $514 billion of primary and secondary schools were built with financing from tax exempt bonds, nearly $288 billion of financing went to general acute-care hospitals, nearly $258 billion to water and sewer facilities, nearly $147 billion to public power projects, $105.6 billion to mass transit and nearly $178 billion to roads, highways and streets ♦ In 2012 alone, more than 6,600 tax-exempt municipal bonds financed more than $179 billion worth of infrastructure projects ♦ State and local governments finance small and large infrastructure projects with muni- bonds. In 2012, the average municipal bond issuance varied from $338 million for bridges to $2.2 million for fire stations and equipment Return to Aaenda Reoorl IMPACTTHE OF THE TAX-EXEMPT STATUS OF 'A BONDS Interest costs with and without tax exemption � LI current law with 28-percent cap with full repeal ESTM UD INTEREST COST ESTWMD TOTK COSr INCREASE ;STIMUrEDTMI C(YiT MCRERSE WRN TM WPTION ASS IMFAEST COST IMERES`r O 2003 114,128.55 130,876.97 16,748.42 161,981.19 47,852.64 2004 96,239.27 110,820.97 14,581.71 137,901.29 41,662.02 2005 121,966.14 141,458.44 19,492.31 177,658.44 55,692.30 2006 118,248.09 137,017.62 18,769.54 171,875.34 53,627.25 2007 125,282.78 145,214.14 19,931.35 182,229.50 56,946.72 2008 140,294.09 161,012.63 20,718.54 199,489.91 59,195.82 2009 110,288.35 126,8%.90 16,602.55 157,724.20 47,435.85 2010 91,207.92 105,952.85 14,744.93 133,336.29 42,128.37 2011 83,022.35 95,965.70 12,943.35 120,003.35 36,981.00 2012 100,111.45 118,949.63 18,838.18 153,934.81 53,823.36 Source:SIFMA estimates based on Thomson-Reuters data using the report's assumptions Return to Aaenda Report IMPACTTHE OF TAX-EXEMPTTHE OF 'A BONDS ADDITIONAL RESOURCES ♦ Presentation with charts and infographics ♦ Legislative fact sheet on municipal bonds ♦ Joint NACo/USCM/NLC report on the impact of municipal bonds ♦ 50 state profiles showing potential impact of cap or elimination Return to Mende Report N A[/ I I National Association o/ � • . OF CHANGING THE TAX-EXEMPT STATUS OF MUNICIPAL BONDS Contact Us ! For questions or more information, feel free to contact us below OR Deborah Cox, NACo Legislative Director Mike Belarmino, Associate Legislative Director 202.942.4286 or dcox@naco.org 202.942.4254 or mbelarmino@noco.org NA National Association of Counties The Voice of America's Counties 25 Massachusetts Avenue, N.W. ♦ Suite 500 Washington, D.C. 20001 202.393.6226 www.naco.org ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.