BILL ANALYSIS Ó
AB 1071
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Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1071 (Atkins) - As Amended May 7, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires each board, department and office within the
California Environmental Protection Agency (CalEPA) to establish
a policy on supplemental environmental projects (SEPs) to
benefit environmental justice communities. Specifically, this
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bill:
1)Defines SEP as an environmentally beneficial project a person
subject to an enforcement action agrees to undertake in
settlement of the action and to offset a portion of a civil
penalty.
2)Requires the Air Resources Board (ARB), CalRecycle, the
Department of Toxic Substances (DTSC), the Department of
Pesticide Regulation (DPR), and the Office of Environmental
Health Hazard Assessment (OEHHA ) to establish policies on
SEPs to benefit environmental justice communities. Requires
the policies to include the following:
a) A public process to solicit potential supplemental
environmental projects from environmental justice
communities.
b) A provision allowing a SEP to comprise up to 50% of an
enforcement action brought by a CalEPA board, department,
or office.
c) An annual list of SEPs that may be selected to settle a
portion of an enforcement action.
3)Requires CalEPA to consolidate and post the list of SEPs on
its website.
FISCAL EFFECT:
1) Unknown significant revenue shifts resulting from
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penalty diversions.
Current policy developed by CalEPA suggests a cap of 25%
for penalty diversions to a SEP. This bill increases the
cap to 50% for SEP funding for environmental justice
projects (all CalEPA enforcement/penalty funds). Depending
on the cost pressures on the various funds, it is very
likely other expenditures would have to be reduced.
2) Absorbable administrative costs.
COMMENTS:
1)Purpose. According to the author, there is no strong
mechanism to ensure communities disproportionally impacted by
multiple sources of pollution receive any improvements after
environmental damage has occurred. When an environmental
violation occurs, there is no mechanism to ensure that the
communities who are directly impacted by the violation are
able to receive any benefits. This bill addresses that
problem by requiring all CalEPA boards, departments, and
offices to establish a specific SEP policy for environmental
justice communities.
2)Supplemental environmental projects. SEPs are environmentally
beneficial projects that a violator agrees to undertake as
part of a settlement for an enforcement action, but which the
violator is not otherwise legally required to perform. In
2003, CalEPA released guidelines for the use of SEPs for its
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boards, departments, and offices. The guidelines require SEPs
to improve, protect, or reduce risks to public health and the
environment at large.
The enforcing agency must have the opportunity to shape the
scope of the project before it is implemented and the project
must not commence until the enforcing agency has identified a
violation. Finally, the SEP must not be required by a
federal, state, or local law or regulation. CalEPA's SEP
guidelines suggest limiting the SEP to 25% of the total
enforcement action.
Within CalEPA, ARB, DTSC, and SWRCB have adopted SEP policies.
ARB and DTSC's policies are consistent with CalEPA's
guidelines and allow SEPs up to 25% of the amount of the
enforcement action. SWRCB, consistent with authority granted
by SB 1733 (Aanestad), Chapter 404, Statutes of 2006, allows
SEPs of up to 50% of the amount of the penalty.
According to CalEPA's 2012 Environmental Compliance and
Enforcement Report, for three hazardous waste law violations
totaling over $33.9 million, $5.5 million was used for SEPs.
ARB assessed just under $16.1 million in penalties, and
$525,000 was used for SEPs. In the report, SWRCB provided
aggregated data for "backlogged violations," which showed
total penalties of over $25 million, and $2.5 million for
SEPs.
3)Environmental Justice. According to the federal Environmental
Protection Agency (EPA),
Environmental Justice is the fair treatment and meaningful
involvement of all people regardless of race, color, national
origin, or income with respect to the development,
implementation, and enforcement of environmental laws,
regulations, and policies.
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Environmental justice will be achieved when everyone enjoys
the same degree of protection from environmental and health
hazards and equal access to the decision-making processes.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081