BILL ANALYSIS                                                                                                                                                                                                    
                                                                  AB 2328
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          Date of Hearing:  April 12, 2010
                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 2328 (Niello) - As Introduced:  February 10, 2010
           
          SUBJECT  :  State Air Resources Board:  public membership:  small  
          business owner.
           SUMMARY  :  Requires that one of the two public members of the Air  
          Resources Board (ARB) be a small business owner. 
           EXISTING STATE LAW  establishes the ARB within the California  
          Environmental Protection Agency (CalEPA).  The ARB is  
          responsible for controlling emissions from motor vehicles as  
          well as enforcing federal air pollution regulations.  The board  
          consists of 11 members who are appointed by the Governor and are  
          subject to confirmation by the Senate.  With the exception of  
          the chair, all other members are part-time positions.  Two of  
          the 11 members appointed by the Governor are "public" members,  
          who are defined as any California resident that is not an  
          elected official.  
           
           EXISTING FEDERAL LAW  requires the ARB to administer an  
          Ombudsman's Office that serves as a general resource to small  
          businesses, large businesses, trade associations, and to  
          individual community members regarding air quality regulations.
           THIS BILL  requires that one of the two public members of the ARB  
          appointed by the Governor be the owner of a small business which  
          is generally defined by the California Employment Development  
          Department (EDD) to be any incorporated business with less than  
          100 employees.
           FISCAL EFFECT  :  Unknown
           COMMENTS  :
          The ARB has resources for small businesses needing to comply  
          with state air quality standards.  For example, the ARB website  
          has information specific to small businesses on how to interpret  
          and comply with air quality regulations that aim to comply with  
          the greenhouse gas reduction measures, such as AB 32, that are  
          enacted by the Legislature.  Specifically, the ARB provides  
                                                                  AB 2328
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          information regarding the California Capital Access Program  
          within the California Pollution Control Financing Authority.   
          This program can ensure bank loan awards up to $1.5 million in  
          an individual loan to small businesses for energy efficiency  
          upgrades such as the acquisition of land, building renovation,  
          building construction, and equipment purchases.  Previously, the  
          ARB provided over $1 billion in funding for truck and bus diesel  
          vehicles through the Carl Moyer, the Proposition 1B Goods  
          Movement Emission Reduction, and the Lower Emission School Bus  
          Programs.  These programs, among others, provide non-competitive  
          grants to vehicle owners for vehicle upgrades including exhaust  
          retrofits and vehicle replacement.  
          The ARB has resources for small businesses wanting to  
          participate in the creation of new air quality regulations, and  
          to comment on regulations in the process of formulation.  During  
          the formulation of any air quality regulation regarding state  
          policy that is first created by the state legislature, the ARB  
          publicly announces any new regulations on their website and  
          allows for 45 days of public comment, either electronically or  
          via regular mail, before the board meets for a public hearing  
          prior to voting to adopt the policy.  This public comment period  
          is open to any member of the community, including small business  
          owners.  All public comments on pending ARB policies are posted  
          publicly on the ARB website.  In addition, the ARB holds public  
          hearings subsequent to the 45 day comment period for any new  
          pending air quality regulation policy, where any members of the  
          public, including small business owners, may voice concerns and  
          questions before the board member prior to a board vote.  In  
          addition, the ARB accepts proposals for new policies from the  
          public as well as from the legislature.  Small businesses are  
          welcome to submit new ideas for policy, or for policy changes,  
          to the ARB in this manner.
          As mentioned above, the ARB is federally mandated to house an  
          Ombudsman Office (OO) where small and large businesses, trade  
          associations, and individual community members have a resource  
          for help on any aspect of the ARB regulatory process.  Among its  
          provisions, the OO mission to the public includes education on  
          California's air quality management system, guidance on air  
          quality rules and regulations, assisting small businesses in  
          compliance with those regulations, and providing help toward  
          solutions when there is an air quality compliance problem.  
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          The ARB is currently required to include an additional impact  
          report specifically concerning small businesses in every new  
          regulation package that is sent to the California Office of  
          Administrative Law (OAL) which ensures that California agency  
          regulations are clear, necessary, legally valid, and available  
          to the public.  The OAL oversees the publication and  
          distribution of the California Code of Regulations and the  
          California Regulatory Notice Register.  
          The ARB currently has 2 members that are small business owners  
          in addition to their existing board qualifications.
           REGISTERED SUPPORT / OPPOSITION  :
           Support 
           
          O&M Industries, Inc.
           Opposition 
           
          American Lung Association
          Breathe California
          Coalition for Clean Air
          Natural Resources Defense Council
          Sierra Club California
          Union of Concerned Scientists
           
          Analysis Prepared by  :  Jessica Westbrook / NAT. RES. / (916)  
          319-2092