BILL ANALYSIS Ó AB 1685 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1685 (Gomez) - As Amended April 11, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|10 - 5 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill increases maximum civil penalties for violations of California Air Resources Board (ARB) regulations, orders, or rules, regarding vehicles emissions to bring penalty assessments into alignment with those of the United States Environmental AB 1685 Page 2 Protection Agency (U.S. EPA). Specifically, this bill: 1)Increases the maximum civil penalty, from $500 to $37,000 per action for violations of certain air quality orders, rules, or regulations adopted by ARB. 2)Provides that violations involving portable fuel containers or small off-road engines remain subject to civil penalties of up to $500 per. 3)Authorizes ARB to adjust the above maximum penalties based on the California Consumer Price Index without having to go through rulemaking procedures. FISCAL EFFECT: Unknown additional penalty revenue, which would be deposited into the Air Pollution Control Fund. COMMENTS: 1)Background. To address transportation sector emissions, both ARB and U.S. EPA regulations require that, prior to introducing a vehicle for sale, a manufacturer must demonstrate that the vehicle meets certain emissions standards. In California, manufacturers must additionally demonstrate compliance with state air-quality standards and manufacturers who fail to comply are subject to civil penalties and other enforcement actions. AB 1685 Page 3 2)Purpose. According to the author's office, ARB's current penalty levels were established in the 1970s, and over time, the penalty amount has degraded in its deterrent effect as the price of cars and other large equipment has risen significantly. Despite the state's strict emissions standards and worst-in-the-nation air pollution, the state's penalty levels have trailed far behind those at the federal level for similar violations. AB 1685 brings California's penalties for mobile source violations in line with their federal counterparts in order to more effectively deter noncompliance with the state's air quality regulations, thus better protecting public health and the environment, preventing unfair competition for those manufacturers playing by the rules, and ensuring that California meets its pollution reduction and climate goals. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081