Sacramento air board adopts FY2025–26 budget, amends Title V rule and approves transportation MOU

The Sacramento Metropolitan Air Quality Management District Board of Directors on July 22 approved the district’s fiscal year 2025–26 budget and fee schedule, adopted amendments to District Rule 207 (the Title V federal operating permit program), and approved a memorandum of understanding with the Sacramento Transportation Authority on State Transportation Improvement Program subregional allocations.

The actions were taken during a hybrid public meeting at which the board also received the district’s statutorily required annual report on vacancies and recruitment under Assembly Bill 2561 and heard the Air Pollution Control Officer’s report on telework policy, an ozone-attainment celebration and other programs.

The board adopted the FY 2025–26 budget and a fee schedule that will take effect July 1, 2025. Staff presented proposed revenues of about $62.3 million and proposed expenditures of about $66.0 million, reflecting a planned use of fund balance of roughly $3.7 million and a projected combined ending fund balance of about $113.8 million. The district’s general fund was shown with approximately $26 million in revenues and about $29 million in proposed expenditures, a planned use of fund balance of about $2.8 million, and a projected year-end fund balance near $24.5 million. The board approved a 3.84% adjustment to the district fee schedule, effective July 1, 2025.

Mark Cooley, an air quality engineer in the district’s monitoring, planning and rules section, presented proposed amendments to District Rule 207, which implements the federal Title V permit program under the Clean Air Act. Cooley said the amendments remove the “emergency affirmative defense” provision and remove greenhouse gases (GHGs) as a sole basis for determining Title V applicability, changes required by recent court decisions and EPA direction. Cooley told the board the emergency affirmative defense provision had not been used by any Sacramento County facility and that staff will submit the adopted amendments to EPA by the agency’s deadline.

The board also approved a memorandum of understanding with the Sacramento Transportation Authority to participate in a subregional working group for allocations from the State Transportation Improvement Program (STIP). Paul Philly of the district’s Transportation and Climate Change Division said the MOU is intended to help jurisdictions coordinate project packaging and improve competitiveness for programming STIP funds; Sacramento County’s approximate share of the current cycle was presented as $28.4 million.

On item 6.1, Denise Booth, the district’s human resources officer, presented the annual vacancies and recruitment report required under Assembly Bill 2561 and the Meyers-Milias-Brown Act. Booth said the district has 105.8 full-time-equivalent positions (106 positions), seven vacancies, and an overall vacancy rate of about 6.6% (a 9.72% vacancy rate in the unit identified in the presentation). She said two vacancies were for new positions, one was a backfill after an internal promotion, and others were separations.

The board approved a nomination to serve as the alternate member to the Sacramento Valley Basinwide Air Pollution Control Council and noted that the alternate is not expected to need to attend frequently. The board heard the Air Pollution Control Officer’s report highlighting the district’s annual review of its telework policy (the district proposes a minimum one in-office day per week and monthly in-person all-staff meetings), a regional celebration planned to mark attainment of the 2008 ozone standard (to be held in Folsom with EPA participation), the district’s co-sponsorship of SB 88 on biomass utilization, and a student-led project converting a lowrider vehicle to electric drive for workforce and education purposes.

Public comment was not offered on these items during the meeting. All items listed on the record were approved by roll call vote.

Votes at a glance - Item 6.1 — Vacancies and recruitment report (AB 2561): Approved by roll call. Outcome: approved. - Item 6.2 — Fiscal Year 2025–26 proposed budget and fee schedule (resolution adopting FY25–26 budget; fee increase 3.84% effective 07/01/2025): Approved by roll call. Outcome: approved. - Item 6.3 — Amendments to District Rule 207 (Title V federal operating permit program; remove emergency affirmative defense and remove GHG sole-determination provisions): Approved by roll call. Outcome: approved. - Item 7.1 — Memorandum of understanding with Sacramento Transportation Authority (STIP subregional allocations / working group participation): Approved by roll call. Outcome: approved. - Item 7.2 — Appointment of alternate to Sacramento Valley Basinwide Air Pollution Control Council: Approved by roll call. Outcome: approved.

What this means The budget approval sets the district’s operating plan and a modest fee increase for FY 2025–26; staff said reserves remain within the district’s policy (120 days of expenditures). The Rule 207 amendments are intended to align the district with federal court and EPA requirements and avoid federal deficiency findings or sanctions. The transportation MOU formalizes the district’s participation in subregional STIP planning to influence project selection aimed at reducing mobile-source emissions. The vacancy report indicates low turnover overall and no immediate changes to recruitment procedures.

The board’s actions require no further local approvals to take effect; staff said Rule 207 amendments will be forwarded to EPA as part of federal submittal timelines, and the budget and fee schedule will be effective on July 1, 2025.

Board members and staff who spoke during the record: Denise Booth (HR officer), Patty Kepner (controller), Mark Cooley (air quality engineer), Paul Philly (Transportation & Climate Change Division), and Alberto (Air Pollution Control Officer).