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HomeMy WebLinkAbout03-28-2012 Steering Committee Agenda Packet Wednesday, March 28, 2012 Orange County Sanitation District w """* 4 5:00 P.M. Regular Meeting of the r Administration Building Steering Committee _ Conference Rooms A & B 10844 Ellis Avenue , Fountain Valley, CA 92708 .�5 •^' tMl•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 February 22, 2012 Steering Committee Meeting. ACTION ITEMS: 2. Recommend to the Board of Directors to: Adopt the 2012 Legislative Platform and Goals. INFORMATION ITEMS: 3. Public Affairs Report 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. 03/28/12 Steering Committee Agenda Page 1 of 3 (1) CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government Code Section 54956.9(b)) Significant Exposure to Litigation Number of Potential Cases: 2 (a) EnerTech Rialto Facility Contract (b) Vallejo Gallery Claim for Damages (2) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Subdivision (a) of Section 54956.9) Contractual Arbitration with the Santa Ana Watershed Project Authority (3) PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957(b)(1)) Number of Employees: 2 (a) General Manager (b) General Counsel 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: ADJOURNMENT: 03/28/12 Steering Committee Agenda Page 2 of 3 The next Steering Committee meeting is scheduled for Wednesday, April 25, 2012, at 5:00 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 office 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. Maria E.Ayala Clerk of the Board (714)593-7130 mayala(cocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Ruth (714)593-7110 Iruth(c�ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelliC@ocsd.com Assistant General Manager Jim Herberg (714)593-7300 iherberg(o)ocsd.com Director of Facility Support Services Nick Arhontes (714)593-7210 narhontesC@ocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Ityner(cDocsd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 freed ocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 03/28/12 Steering Committee Agenda Page 3 of 3 STEERING COMMITTEE Meeting Date To Bd. of Dir. 03/28/12 03/28/12 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: 2012 Legislative Platform and Goals GENERAL MANAGER'S RECOMMENDATION Adopt the 2012 Legislative Platform and Goals SUMMARY Last month, staff presented the draft 2012 Legislative Platform and the group discussed goals for the coming year. These goals provide staff and lobbyists with direction in both policy and funding areas at the state and federal levels. . PRIOR COMMITTEE/BOARD ACTIONS February 2011 — Board of Directors adopted the Legislative Platform. ADDITIONAL INFORMATION Attached to this report is the 2012 Legislative Platform. This document guides staff in taking positions on legislation in Sacramento and Washington, D.C. so we can act quickly, when necessary. Generally all bills being tracked by staff are listed in a matrix that is included in the monthly Public Affairs report for the Steering Committee. When a bill is controversial or requires additional attention, staff will report these out to the Steering Committee for information or direction. Following the comments from last month's Steering Committee meeting, staff added the following platform statement: ( Oppose efforts that diminish OCSD's ability to govern efficiently and effectively, including expanding the size of the Board of Directors. Staff is also proposing the following legislative goals for 2012: ( Federal Goals o Work with Congress and the EPA on the Sunshine on Conflicts Act to ensure passage or implement rule changes. o Work with Congress on legislative and regulatory changes related to the Clean Water Act. Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 1 o Seek Federal Funding for projects, including ecosystem restoration and alternative energy projects. ( State Goals: o Continue to monitor the State Budget and aggressively protect local property taxes. o Monitor the dissolution of redevelopment agencies in Orange County to protect OCSD's interests. o Aggressively monitor and track legislation impacting OCSD's operations and governance. Staff is requesting adoption of the 2012 Legislative Platform. Accomplishments Last year, staff met with all the members of the Orange County State delegation to discuss OCSD's property taxes and how important they are to our operations. We effectively communicated this importance and protected OCSD's property taxes through the budget process. OCSD was also involved in bill related to beach water testing and we negotiated a more effective solution than was originally proposed. Staff worked with Los Angeles County to directly negotiate with the author and County Health Agencies. At the Federal level, we worked with CASA and Congressman Miller to introduce the Sunshine on Conflicts Act, to more effectively deal with appointments to regional water boards. This bill was the result of meetings in DC attended by the Chair and Vice Chair. Finally, staff secured $1 million in State Grants through Proposition 84 for secondary treatment upgrades. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS 2012 Legislative Platform Form No.DW-102-1 Agenda Report—SC Revised:01/08/07 Page 2 Orange County Sanitation District 2012 Legislative Platform Legislative Updates ` i. :eS Please click the link below foi the latest Legislative Tracking Maui) nation q hael Gold. legis a ive p a es Legislative Bill Tracking Tracking(42,9 KB) _ V � Collaborate t JNt� SANIT�T� 2 � .o ti 9 : rFCT�Ns THE Orange County Sanitation District 2012 Legislative Platform Legislative Affairs Team OCSD Staff Michael Gold Ph: (714) 593-7529 mgold@ocsd.com Public Affairs Manager Cell: (714) 263-5541 Robert Ghirelli (714) 593-7400 rghirelli@ocsd.com Assistant General Manager James D. Ruth (714) 593-7110 jruth@ocsd.som General Manager Federal Lobbying Team Eric Sapirstein (202)466-3755 esap@ ENS Resources ensresources.com Sacramento Lobbying Team Townsend Public Affairs Christopher Townsend (949) 399-9050 ctownsend@ TownsencIPA.com Heather Stratman (949) 399-9050 hstratman@ TownsencIPA.com 2 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform Introduction The Orange County Sanitation District (OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected.Towards that end, the legislative affairs team monitors activities in Sacramento and Washington, D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year,the Board of Directors adopts a Legislative Platform, which is a summary of goals, key issues and OCSD's policy position. The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities' and policy needs.These Board- approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency.The Legislative Platform is a dynamic document, adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform, including, but not limited to, drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District, particularly those that fall within the goals and objectives identified by the Board of Directors. Staff will monitor bills being watched by similar agencies in Orange County(OCWD, MWDOC, etc.) as well as State Agencies such as California Association of Sanitation Agencies (CASA),the California Special Districts Association (CSDA) and the Association of California Water Agencies (ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board- adopted Legislative Platform or adopted goals, staff can send letters and give direction to the lobbyists to advocate that position. 3. Where a particular issue is not urgent, all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent, staff may use the signature stamp, so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue, staff will seek direction from the Steering Committee. 6. If a bill does not fall within the scope of the Legislative Platform, but the California Association of Sanitary Agencies (CASA),the California Special Districts Association (CSDA) or the National Association of Clean Water Agencies (NACWA) has an adopted position, staff may follow this position but must inform the Steering Committee of such action at the next regularly scheduled meeting. 3 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform Federal and State Legislative Policies 1. Air Quality: OCSD is committed to complying with federal, state, and local air quality laws and rules. OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the California and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals. e. Support, in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AQMP)to the extent that such actions could subject the basin to sanction or conformity penalties. 2. Biosolids: OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county, or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 4 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform 3. Grant Funding: OCSD is committed to offsetting its research, special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements. a. Support appropriations legislation, bonds, programs, and projects that provide funding for infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality,wastewater processing, urban runoff, water conservation, and water recycling. b. Support projects that provide for public benefit, over projects that are primarily intended for private benefit or gain. c. Support continued federal funding for protecting and realigning the Santa Ana River Interceptor project and for secondary treatment upgrades. d. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations:OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer-employee relations, including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act (FLSA) on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. 5 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform S. Planning: OCSD ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments' (SCAG) sub-regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. a. Support hazard mitigation, emergency response, planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support (generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works: OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry,thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. 6 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e. emergency and standby generators) exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers (including cities and special districts) against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. 8. Revenue and Taxation:Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax, sales tax,vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, health, and welfare programs. 9. Special Districts: OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner. a. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies (ACWA), California Association of Sanitation Agencies (CASA), and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members' reserves. c. Oppose further state regulations that adversely impact special district financing and operations. d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. 7 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. 10. Water Quality and Supply: OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. a. Support continued federal and state funding for the Santa Ana River Interceptor Relocation project. b. Support (generally) measures to increase water supply and improve water quality in the region. c. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. d. Support U.S. Army Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. e. Support measures that promote and provide for the use of reclaimed water. f. Support "watershed-based" solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. g. Support policy development,funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial,viral and other contaminants and human pathogens. h. Support measures to evaluate water quality standards, as needed,to ensure the objectives are appropriately protecting the designated use. i. Support measures to develop a state-wide consistent policy for total maximum daily load (TMDL) listing and delisting. j. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff, which provide for long- term capital improvements (like storm drain diversions and filters), and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. k. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. I. Support legislation that provides "amnesty"from administrative civil liability(ACL)fines from Regional Boards for agencies participating in comprehensive watershed studies that will, when complete, address the problem that resulted in the ACL fine. m. Support efforts, including legislation, clarifying that Regional Water Quality Control Board rules that require spending funds are unfunded mandates. n. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. o. Support measures for alternative energy sources. 8 Originally Adopted December,2005 Revised February, 2012 Orange County Sanitation District 2012 Legislative Platform p. Support efforts to reduce the toxic and non-reusable waste load. q. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. r. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. s. Support legislation that provides for groundwater management on a local level, with respect to coordination of programs, extraction and production rights, long-term protection and groundwater quality protection. t. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. u. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. v. Oppose efforts to make all NPDES permits the same. Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. w. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). x. Support measures supporting urban runoff studies and urban runoff reduction. y. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state,whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs, and in any other relevant process. 9 Originally Adopted December,2005 Revised February, 2012 STEERING COMMITTEE Meeting Date To Bd. of Dir. 03/28/12 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: Public Affairs Update GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly Public Affairs Division update that includes legislative and political information from Washington, D.C. and Sacramento, lobbyists' activities, and outreach education and communication programs to member cities, employees and the public. ADDITIONAL INFORMATION Public Affairs Update New website, outreach and social media We are pleased to announce our new website, under the domain name www.ocsewers.com. This new site is streamlined and makes it easier for the public to find the information they need. The goal is to have important information within a few clicks. We are also connected to social media. A unique feature to our new site is an all-in-one page for access to public information and transparency. Entitled "OpenGov," this page has links to employee salaries and board compensation, agendas and minutes, financial information, public information requests and other documents of interest to the general public. We designed the site for easy navigation with everything within a few clicks and there are easy ways for the public to sign up for updates. At the Steering Committee, we will highlight some of the key features of the new site. Ramping up the outreach As reported in the past, the Public Affairs team is leading efforts to ramp up our outreach efforts in the service area. We are demonstrating our "We're here for you" message by explaining who we are and what we do to educate the public about what to flush down the drain and keeping our sewers clean. This year, we have participated in 35 community outreach events, given tours to 1785 guests and visited with nine of our member agency PIOs. Page 1 of 5 2012 Legislative Platform Attached to this report is the 2012 Legislative Platform. This document guides staff in taking positions on legislation in Sacramento and Washington, D.C. so we can act quickly, when necessary. Generally all bills being tracked by staff are listed in a matrix that is included in the monthly Public Affairs report for the Steering Committee. When a bill is controversial or requires additional attention, staff will report these out to the Steering Committee for information or direction. Following the comments from the last meeting, staff added the following platform statement: ( Oppose efforts that diminish OCSD's ability to govern efficiently and effectively, including expanding the size of the Board of Directors. Staff is also proposing the following legislative goals for 2012: ( Federal Goals o Work with Congress and the EPA on the Sunshine on Conflicts Act to ensure passage or implement rule changes. o Work with Congress on legislative and regulatory changes related to the Clean Water Act. o Seek Federal Funding for projects, including ecosystem restoration and alternative energy projects. ( State Goals: o Continue to monitor the State Budget and aggressively protect local property taxes. o Monitor the dissolution of redevelopment agencies in Orange County to protect OCSD's interests. o Aggressively monitor and track legislation impacting OCSD's operations and governance. Legislative updates from our advocates This month, our advocates from Townsend Public Affairs will be at the meeting to provide an update and outlook on the happenings in Sacramento. Federal Legislative Update Legislative Advocate: Eric Sapirstein, ENS Resources CASA DC Meeting March 12-14 Chair Crandall attended the CASA Washington DC meeting. There, he met with members of the Orange County Delegation and EPA to discuss the 10 percent income rule (Mr. Miller's Sunshine on Conflicts Act); NPDES Permits, Clean Water Act issues and funding for alternative energy. The meeting was well attended with 50 participants from all over California. Page 2 of 5 Enforcement of environmental mandates On January 9, the U.S. Supreme Court heard arguments on U.S. EPA's practice of using Administrative Orders that deny recipients due process. The issue is that these orders cannot be appealed to a court as the agency maintains they are not final enforcement orders. The Justices' questions suggested that the Court was highly skeptical of the agency's position and it appears the Court could rule by a large majority or even unanimously against the EPA. Assuming that the Court does overturn the agency's process, it could spark an effort in Congress to reassess how federal environmental mandates are enforced, including permit conditions and other mandates. Income restrictions and water board appointments Congressman Miller's bill to revise income restrictions for water board appointments continues to gain traction. Mr. Miller is determining if he can convene a hearing to examine the issues around his bill, H.R. 2765 the Sunshine on Conflicts Act. In discussions with Committee on Transportation and Infrastructure staff, Miller's staff was informed that USEPA continues to develop an administrative revision to the current definition of "significant income" to address concerns about the current income rule. Since USEPA has been slow to develop the administrative solution, Mr. Miller has advised that he will pursue a hearing and markup of H.R. 2765 in the coming months. Citizen suits and related protections against abuses Representative Tom McClintock continues his efforts to revise the way in which the Clean Water Act's citizen suits provisions are used. His bill, H.R. 3644, provides a series of defenses to POTWs to avoid such litigation, including acts of God, war or third party actions. Additionally, the bill provides an extended NPDES permit terms of 15 years for POTWs and requires that any new or renewed permit conditions be subject to cost-benefit analysis to ensure benefits of any mandates outweigh the costs. Representative McClintock continues to work with Committee on Transportation and Infrastructure Chairman John Mica to secure a legislative hearing on the issue as a first step toward House floor debate and passage later this year. State Legislative Update Legislative Advocates: Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs State Political Highlights To address the deficit, Governor Brown has all but staked his governorship on his tax initiative slated for the November 2012 ballot. The Governor's tax proposal is supposed to generate $4.6 billion (increasing to $7 billion in future years) by imposing a temporary half-cent increase in the State sales tax as well as raise the income tax rate on Californians making over $250,000. Both the income and sales tax increases would expire in 2017. If the Governor's tax proposal is not approved by the voters, then the budget proposes several trigger cuts that would go into effect on January 1 , 2013. Governor Brown has attempted to clear the field of several rival tax measures on the 2012 ballot in order to increase the likelihood of passage of his proposal. So far he has been unsuccessful. Brown recently stated that a proposed tax on millionaires backed by Page 3 of 5 attorney Molly Munger and the California Federation of Teachers would attract many of the same voters who might otherwise support his plan; thus, splitting the vote and likely leading to the defeat of both measures. The Governor has also argued that the other tax proposals would not address the state budget deficit. To drum up support for his initiative, the Governor has traveled the State and secured the support of members of the business community, Native American tribes, as well as labor unions, like SEIU and the CTA. Representing many of the state's largest corporations, the California Business Roundtable recently stopped short of endorsing the Governor's tax initiative, but did express interest if he were to address pensions and regulations. Brown's goal is to raise $30 million to secure passage of his initiative. In a recent Public Policy Institute of California poll, Brown's initiative polled with 52 percent support and 40 percent opposed. The Legislative Analyst Office analyzed the Governor's Budget and estimated that it would not fully close the budget gap, due largely to revenue assumptions that are less optimistic. The LAO's reasoning is based on numerous economic factors and if the LAO is correct in its analysis, then the State will need to find additional significant cuts in order to adopt a balanced budget. The LAO's analysis would have been more pessimistic had Facebook not filed paperwork for an initial public stock offering, which will likely result in about $2 billion through June 2013 in Facebook IPO-related income tax payments. The LAO recommended that the Legislature wait until the Governor release his May budget revise before writing the 2012-13 budget. Pension Reform On February 22, State Republican legislators, led by Senate Republican leader Bob Huff, held a press conference announcing the introduction of legislation mirroring Governor Brown's 12-Point Pension Plan. During the press conference, Senator Huff remarked that they "haven't changed one comma, one period or one word" of Brown's pension reform package. To implement the Governor's plan, Republicans introduced a series of bills, including some reforms that will require a constitutional amendment through a ballot initiative. This action by State Republicans follows the Governor's Feb. 2 letter to the leaders of the state legislature's Conference Committee on Public Employee Pensions to implement his 12-point pension reform plan. In his letter, Governor Brown called for "urgent and decisive action." Since its release in October 2011, however, Brown's 12- Point Pension Reform Plan has not gained any significant traction within the Democratic-controlled Legislature. In reaction to the Republican announcement, Democrats reiterated that they are reviewing the Governor's Plan and want to allow the Joint Conference Committee on Pension Reform to produce its recommendations before introducing any formal legislation. Page 4 of 5 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Page 5 of 5