BILL NUMBER: SB 1387 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2016
AMENDED IN SENATE APRIL 7, 2016
INTRODUCED BY Senators De León, Allen, and Lara
FEBRUARY 19, 2016
An act to amend amend, repeal, and add
Sections 39616, 40420, 40420 and
40424 of of, and to add Section 40426.1 to,
the Health and Safety Code, relating to nonvehicular air
pollution.
LEGISLATIVE COUNSEL'S DIGEST
SB 1387, as amended, De León. Nonvehicular air pollution:
market-based incentive programs: South Coast Air Quality
Management District board.
(1) Existing law authorizes the board of an air pollution control
or air quality management district to adopt a market-based incentive
program as an element of a district's plan for the attainment of the
state or federal ambient air quality standards. Existing law requires
a district board, within 5 years from the date of the adoption of a
market-based incentive program, to commence public hearings to
reassess the program and, within 7 years from the date of the air
district's initial adoption of the program, to ratify specified
findings with the concurrence of the State Air Resources Board.
This bill instead would require a district board to submit to the
State Air Resources Board for review and approval the district's plan
for attainment or a revision to that plan, as specified. The bill
also would require a district board to submit to the state board for
review and approval the district's market-based incentive program and
any revisions to that program, as specified. The bill would
prescribe specified actions for the state board to take if the state
board determines that a plan for attainment, a revision of a plan for
attainment, a market-based incentive program, or a revision to a
market-based incentive program do not comply with law. By adding to
the duties of air districts, this bill would impose a state-mandated
local program.
(2) Existing
Existing law establishes the South Coast Air Quality
Management District vested with the authority to regulate air
emissions from stationary sources located in the South Coast Air
Basin and establishes a district board, consisting of 13 members.
This bill bill, until January 1, 2025,
would add 3 members to the district board, as specified. The
bill would make various conforming changes.
This bill also would prohibit a member of the south coast district
board from being issued a vehicle from the south coast district for
greater than 7 days in a 30-day period if the board member is
eligible for a vehicle or vehicle allowance from the local government
from which he or she is appointed.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 39616 of the Health and
Safety Code is amended to read:
39616. (a) The Legislature hereby finds and declares all of the
following:
(1) Several regions in California suffer from some of the worst
air quality in the United States.
(2) While traditional command and control air quality regulatory
programs are effective in cleaning up the air, other options for
improvement in air quality, such as market-based incentive programs,
may be explored, provided that those programs result in greater
emission reductions while ensuring disadvantaged communities, as
identified pursuant to Section 39711, are not disproportionately
impacted by pollution.
(3) The purpose of this section is to establish requirements
under which a district board may adopt market-based incentive
programs in a manner that achieves the greatest air quality
improvement while strengthening the state's economy and preserving
jobs.
(b) (1) A district board may adopt a market-based incentive
program as an element of the district's plan for the attainment of
the state or federal ambient air quality standards.
(2) A market-based incentive program that satisfies the
conditions in this section may substitute for current command and
control regulations and future air quality measures that would
otherwise have been adopted as part of the district's plan for
attainment, and may be implemented in lieu of some or all of the
control measures adopted by the district pursuant to Chapter 10
(commencing with Section 40910) of Part 3.
(c) In adopting rules to implement a market-based incentive
program, a district board shall, at the time that the rules are
adopted, make express findings, and shall, at the time that the rules
are submitted to the state board, submit appropriate information to
substantiate the basis for making the findings that each of the
following conditions is met on an overall districtwide basis:
(1) The program will result in an equivalent or greater reduction
in emissions at equivalent or less cost compared with current
command and control regulations and future air quality measures that
would otherwise have been adopted as part of the district's plan for
attainment.
(2) The program will provide a level of enforcement and
monitoring, to ensure compliance with emission reduction
requirements, comparable with command and control air quality
measures that would otherwise have been adopted by the district for
inclusion in the district's plan for attainment.
(3) The program will establish a baseline methodology that
provides appropriate credit so that stationary sources of air
pollution that have been modified prior to implementation of the
program to reduce stationary source emissions are treated equitably.
(4) The program will not result in a greater loss of jobs or more
significant shifts from higher to lower skilled jobs, on an overall
districtwide basis, than that which would exist under command and
control air quality measures that would otherwise have been adopted
as part of the district's plan for attainment. A finding of
compliance with this requirement may be made in the same manner as
the analyses made by the district to meet the requirements of Section
40728.5.
(5) The program will promote the privatization of compliance and
the availability of data in computer format. The district shall
endeavor to provide sources with the option to keep records by way of
electronic or computer data storage systems, rather than mechanical
devices, such as strip chart recorders.
(6) The program will not in any manner delay, postpone, or
otherwise hinder district compliance with Chapter 10 (commencing with
Section 40910) of Part 3.
(7) The program will not result in disproportionate impacts,
measured on an aggregate basis, on those stationary sources included
in the program compared to other permitted stationary sources in the
district's plan for attainment.
(d) (1) A district's plan for attainment or plan revision
submitted to the state board shall achieve equivalent emission
reductions and reduced cost and job impacts compared to current
command and control regulations and future air quality measures that
would otherwise have been adopted as part of the district's plan for
attainment. A district shall not implement a market-based incentive
program or any revisions to an adopted market-based incentive program
unless the state board has determined that the plan or plan revision
complies with this paragraph.
(2) (A) A plan or plan revision shall meet the provisions of
subdivision (c) and Section 40440.1 if applicable. The state board
shall review, approve, disapprove, or amend and approve the plan or
plan revision prior to program implementation, and shall make its
determination not later than 60 days from the date of submission of
the plan or plan revision.
(B) (i) If the state board determines that a plan or plan revision
submitted pursuant to this paragraph does not comply with this
section, the state board within 60 days of the date of the submission
of the plan or plan revision, shall do all of the following:
(I) Notify the district.
(II) Revise the plan or plan revision so that the plan or plan
revision complies with this section.
(III) Approve the plan or plan revision.
(ii) If the state board approves a plan or plan revision pursuant
to this subparagraph, the plan or plan revision shall take effect
immediately and be binding on the district.
(3) (A) Upon the adoption of rules to implement the program in
accordance with subdivision (c), the district shall submit the rules
to the state board. The state board shall, within 90 days from the
date of submission, determine whether the rules meet the requirements
of this section and Section 40440.1, if applicable. This paragraph
does not prohibit the district from implementing the program upon the
approval of the plan or plan revision and prior to submission of the
rules.
(B) (i) If the state board determines that a district rule does
not comply with this section, the state board, within 60 days of the
date of the submission of the rule, shall do all of the following:
(I) Notify the district.
(II) Revise the rule so that the rule complies with this section.
(III) Adopt the rule.
(ii) If the state board approves a rule pursuant to this
subparagraph, the rule shall take effect immediately and have the
same legal force and effect as a district rule.
(e) Within five years from the date of the adoption of a
market-based incentive program, the district board shall commence
public hearings to reassess the program and shall, not later than
seven years from the date of the district's initial adoption of the
program, ratify the findings required pursuant to paragraphs (1),
(2), (5), and (6) of subdivision (c) and the district's compliance
with Section 40440.1, if applicable, with the concurrence of the
state board. If the district board fails to ratify the findings
within the seven-year period, the district board shall make
appropriate revisions to the district's plan for attainment.
(f) The district board shall reassess a market-based incentive
program if the market price of emission trading units exceeds a
predetermined level set by the district board. The district board may
take action to revise the program. A predetermined market price
review level shall be set in a public hearing in consideration of the
costs of command and control air quality measures that would
otherwise have been adopted as part of the district's plan for
attainment, costs and factors submitted by interested parties, and
any other factors considered appropriate by the district board. The
district board may revise the market price review level for emission
trading units every three years during attainment plan updates
required under Section 40925. In revising the market price review
level, the district board shall consider the factors used in setting
the initial market price review level as well as other economic
impacts, including the overall impact of the program on job loss,
rate of business formation, and rate of business closure.
(g) For sources not included in market-based incentive programs,
this section does not apply to, and shall in no way limit, existing
district authority to facilitate compliance with particular emission
control measures by imposing or authorizing sourcewide emission caps,
alternative emission control plans, stationary for mobile source
emission trades, mobile for mobile source emission trades, and
similar measures, whether imposed or authorized by rule or permit
condition.
(h) This section does not apply to the implementation of
market-based transportation control measures that do not involve
emissions trading.
SEC. 2. SECTION 1. Section 40420 of
the Health and Safety Code is amended to read:
40420. (a) The south coast district shall be governed by a
district board consisting of 16 members appointed as follows:
(1) (A) Two members appointed by the Governor, with the advice and
consent of the Senate.
(B) One member appointed pursuant to this paragraph shall
be a representative of a bona fide nonprofit environmental justice
organization that advocates for clean air and pollution reductions in
one or more communities within the South Coast Air Basin.
reside in and work directly with communities in the South Coast
Air Basin that are disproportionately burdened by and vulnerable to
high levels of pollution and issues of environmental justice,
including, but not limited to, communitie s with diverse
racial and ethnic populations and communities with low-income
populations. In addition to any other applicant who may be
considered, the Governor shall accept an application from a member of
a city council or county board of supervisors who meets the criteria
in this subparagraph and shall give appropriate consideration to
appointing that applicant.
(2) (A) Two members appointed by the Senate Committee on Rules.
(B) One member appointed pursuant to this paragraph shall
be a representative of a bona fide nonprofit environmental justice
organization that advocates for clean air and pollution reductions in
one or more communities within the South Coast Air Basin.
reside in and work directly with communities in the South Coast
Air Basin that are disproportionately burdened by and vulnerable to
high levels of pollution and issues of environmental justice,
including, but not limited to, communities with diverse racial and
ethnic populations and communities with low-income populations. In
addition to any other applicant who may be considered, the Senate
Committee on Rules shall accept an application from a member of a
city council or county board of supervisors who meets the criteria in
this subparagraph and shall give appropriate consideration to
appointing that applicant.
(3) (A) Two members appointed by the Speaker of the Assembly.
(B) One member appointed pursuant to this paragraph shall
be a representative of a bona fide nonprofit environmental justice
organization that advocates for clean air and pollution reductions in
one or more communities within the South Coast Air Basin.
reside in and work directly with communities in the South Coast
Air Basin that are disproportionately burdened by and vulnerable to
high levels of pollution and issues of environmental justice,
including, but not limited to, communities with diverse racial and
ethnic populations and communities with low-income populations. In
addition to any other applicant who may be considered, the Speaker of
the Assembly shall accept an application from a member of a city
council or county board of supervisors who meets the criteria in this
subparagraph and shall give appropriate consideration to appointing
that applicant.
(4) Four members appointed by the boards of supervisors of the
counties in the south coast district. Each board of supervisors shall
appoint one of these members, who shall be one of the following:
(A) A member of the board of supervisors of the county making the
appointment.
(B) A mayor or member of a city council from a city in the portion
of the county making the appointment that is included in the south
coast district.
(5) Three members appointed by cities in the south coast district.
The city selection committee of Orange, Riverside, and San
Bernardino Counties shall each appoint one of these members, who
shall be either a mayor or a member of the city council of a city in
the portion of the county included in the south coast district.
(6) A member appointed by the cities of the western region of Los
Angeles County, consisting of the Cities of Agoura Hills, Artesia,
Avalon, Bell, Bellflower, Bell Gardens, Beverly Hills, Calabasas,
Carson, Cerritos, Commerce, Compton, Cudahy, Culver City, Downey, El
Segundo, Gardena, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden
Hills, Huntington Park, Inglewood, La Habra Heights, La Mirada,
Lakewood, Lawndale, Lomita, Long Beach, Lynwood, Malibu, Manhattan
Beach, Maywood, Montebello, Norwalk, Palos Verdes Estates, Paramount,
Pico Rivera, Rancho Palos Verdes, Redondo Beach, Rolling Hills,
Rolling Hills Estates, Santa Fe Springs, Santa Monica, Signal Hill,
South Gate, Torrance, Vernon, West Hollywood, Westlake Village, and
Whittier. These cities shall organize as a city selection committee
for the purposes of subdivision (f), and shall be known as the city
selection committee of the western region of Los Angeles County. The
member appointed shall be either a mayor or a member of the city
council of a city in the western region.
(7) A member appointed by the cities of the eastern region of Los
Angeles County, consisting of the cities in Los Angeles County that
are not listed in paragraph (6) or (8), and excluding the Cities of
Lancaster, Los Angeles, and Palmdale. These cities shall organize as
a city selection committee for the purposes of subdivision (f), and
shall be known as the city selection committee of the eastern region
of Los Angeles County. The member appointed shall be either a mayor
or a member of the city council of a city in the eastern region.
(8) A member appointed by the Mayor of the City of Los Angeles
from among the members of the Los Angeles City Council.
(b) All members shall be appointed on the basis of their
demonstrated interest and proven ability in the field of air
pollution control and their understanding of the needs of the general
public in connection with air pollution problems of the South Coast
Air Basin.
(c) The member appointed by the Governor who is not the member
appointed pursuant to subparagraph (B) of paragraph (1) of
subdivision (a) shall be either a physician who has training and
experience in the health effects of air pollution, an environmental
engineer, a chemist, a meteorologist, or a specialist in air
pollution control.
(d) Each member shall be appointed on the basis of his or her
ability to attend substantially all meetings of the south coast
district board, to discharge all duties and responsibilities of a
member of the south coast district board on a regular basis, and to
participate actively in the affairs of the south coast district. A
member shall not designate an alternate for any purpose or otherwise
be represented by another in his or her capacity as a member of the
south coast district board.
(e) Each appointment by a board of supervisors shall be considered
and acted on at a duly noticed, regularly scheduled hearing of the
board of supervisors, which shall provide an opportunity for
testimony on the qualifications of the candidates for appointment.
(f) The appointments by cities in the south coast district shall
be considered and acted on at a duly noticed meeting of the city
selection committee, which shall meet in a government building and
provide an opportunity for testimony on the qualifications of the
candidates for appointment. Each appointment shall be made by not
less than a majority of all the cities in the portion of the county
included in the south coast district having not less than a majority
of the population of all the cities in the portion of the county
included in the south coast district. Population shall be determined
on the basis of the most recent verifiable census data developed by
the Department of Finance. Persons residing in unincorporated areas
or areas of a county outside the south coast district shall not be
considered for the purposes of this subdivision.
(g) The members appointed by the Senate Committee on Rules and the
Speaker of the Assembly who are not the members appointed pursuant
to subparagraph (B) of paragraph (2) or subparagraph (B) of paragraph
(3) of subdivision (a) shall have one or more of the qualifications
specified in subdivision (c) or shall be a public member.
None of those Those appointed members may
not be a locally elected official.
(h) All members shall be residents of the district.
(i) (1) The member who was serving on the district board as of
June 1, 2007, who had been appointed to represent the eastern region
of Los Angeles County shall be deemed on January 1, 2008, to be the
member appointed to represent the western region of Los Angeles
County pursuant to paragraph (6) of subdivision (a) and shall serve
from January 1, 2008, until the end of the term of office for the
member who had been appointed to represent the western region of Los
Angeles County. At the end of that term, the city selection committee
of the western region of Los Angeles County shall make an
appointment pursuant to paragraph (6) of subdivision (a).
(2) The member who was serving on the district board as of June 1,
2007, who had been appointed to represent the western region of Los
Angeles County shall be deemed on January 1, 2008, to be the member
appointed pursuant to paragraph (8) of subdivision (a) until the end
of that member's term. At the end of that term, the Mayor of the City
of Los Angeles shall make an appointment pursuant to paragraph (8)
of subdivision (a).
(3) On or after January 1, 2008, the city selection committee of
the eastern region of Los Angeles County shall convene promptly to
make an appointment pursuant to paragraph (7) of subdivision (a).
(j) This section shall remain in effect only until January 1,
2025, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2025, deletes or extends
that date.
SEC. 2. Section 40420 is added to the
Health and Safety Code , to read:
40420. (a) The south coast district shall be governed by a
district board consisting of 13 members appointed as follows:
(1) One member appointed by the Governor, with the advice and
consent of the Senate.
(2) One member appointed by the Senate Committee on Rules.
(3) One member appointed by the Speaker of the Assembly.
(4) Four members appointed by the boards of supervisors of the
counties in the south coast district. Each board of supervisors shall
appoint one of these members, who shall be one of the following:
(A) A member of the board of supervisors of the county making the
appointment.
(B) A mayor or member of a city council from a city in the portion
of the county making the appointment that is included in the south
coast district.
(5) Three members appointed by cities in the south coast district.
The city selection committee of Orange, Riverside, and San
Bernardino Counties shall each appoint one of these members, who
shall be either a mayor or a member of the city council of a city in
the portion of the county included in the south coast district.
(6) A member appointed by the cities of the western region of Los
Angeles County, consisting of the Cities of Agoura Hills, Artesia,
Avalon, Bell, Bellflower, Bell Gardens, Beverly Hills, Calabasas,
Carson, Cerritos, Commerce, Compton, Cudahy, Culver City, Downey, El
Segundo, Gardena, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden
Hills, Huntington Park, Inglewood, La Habra Heights, La Mirada,
Lakewood, Lawndale, Lomita, Long Beach, Lynwood, Malibu, Manhattan
Beach, Maywood, Montebello, Norwalk, Palos Verdes Estates, Paramount,
Pico Rivera, Rancho Palos Verdes, Redondo Beach, Rolling Hills,
Rolling Hills Estates, Santa Fe Springs, Santa Monica, Signal Hill,
South Gate, Torrance, Vernon, West Hollywood, Westlake Village, and
Whittier. These cities shall organize as a city selection committee
for the purposes of subdivision (f), and shall be known as the city
selection committee of the western region of Los Angeles County. The
member appointed shall be either a mayor or a member of the city
council of a city in the western region.
(7) A member appointed by the cities of the eastern region of Los
Angeles County, consisting of the cities in Los Angeles County that
are not listed in paragraph (6) or (8), and excluding the Cities of
Lancaster, Los Angeles, and Palmdale. These cities shall organize as
a city selection committee for the purposes of subdivision (f), and
shall be known as the city selection committee of the eastern region
of Los Angeles County. The member appointed shall be either a mayor
or a member of the city council of a city in the eastern region.
(8) A member appointed by the Mayor of the City of Los Angeles
from among the members of the Los Angeles City Council.
(b) All members shall be appointed on the basis of their
demonstrated interest and proven ability in the field of air
pollution control and their understanding of the needs of the general
public in connection with air pollution problems of the South Coast
Air Basin.
(c) The member appointed by the Governor shall be either a
physician who has training and experience in the health effects of
air pollution, an environmental engineer, a chemist, a meteorologist,
or a specialist in air pollution control.
(d) Each member shall be appointed on the basis of his or her
ability to attend substantially all meetings of the south coast
district board, to discharge all duties and responsibilities of a
member of the south coast district board on a regular basis, and to
participate actively in the affairs of the south coast district. A
member shall not designate an alternate for any purpose or otherwise
be represented by another in his or her capacity as a member of the
south coast district board.
(e) Each appointment by a board of supervisors shall be considered
and acted on at a duly noticed, regularly scheduled hearing of the
board of supervisors, which shall provide an opportunity for
testimony on the qualifications of the candidates for appointment.
(f) The appointments by cities in the south coast district shall
be considered and acted on at a duly noticed meeting of the city
selection committee, which shall meet in a government building and
provide an opportunity for testimony on the qualifications of the
candidates for appointment. Each appointment shall be made by not
less than a majority of all the cities in the portion of the county
included in the south coast district having not less than a majority
of the population of all the cities in the portion of the county
included in the south coast district. Population shall be determined
on the basis of the most recent verifiable census data developed by
the Department of Finance. Persons residing in unincorporated areas
or areas of a county outside the south coast district shall not be
considered for the purposes of this subdivision.
(g) The members appointed by the Senate Committee on Rules and the
Speaker of the Assembly shall have one or more of the qualifications
specified in subdivision (c) or shall be a public member. None of
those appointed members may be a locally elected official.
(h) All members shall be residents of the district.
(i) This section shall become operative on January 1, 2025.
SEC. 3. Section 40424 of the Health and Safety Code is amended to
read:
40424. (a) Except as provided in subdivision (b), nine members of
the south coast district board shall constitute a quorum, and no
official action shall be taken by the south coast district
board except in the presence of a
quorum and upon the affirmative votes of a majority of the members of
the south coast district board.
(b) Notwithstanding subdivision (a), whenever there are two or
more vacancies on the south coast district board, eight members shall
constitute a quorum, and the two vacant positions shall not be
counted toward the majority required for official action by the south
coast district board. Thereafter, whenever at least one of those
vacancies is filled, the quorum and voting requirements of
subdivision (a) shall apply.
(c) This section shall remain in effect only until January 1,
2025, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2025, deletes or extends
that date.
SEC. 4. Section 40424 is added to the
Health and Safety Code , to read:
40424. (a) Except as provided in subdivision (b), seven members
of the south coast district board shall constitute a quorum, and no
official action shall be taken by the south coast district board
except in the presence of a quorum and upon the affirmative votes of
a majority of the members of the south coast district board.
(b) Notwithstanding subdivision (a), whenever there are two or
more vacancies on the south coast district board, six members shall
constitute a quorum, and the two vacant positions shall not be
counted toward the majority required for official action by the south
coast district board. Thereafter, whenever at least one of those
vacancies is filled, the quorum and voting requirements of
subdivision (a) shall apply.
(c) This section shall become operative on January 1, 2025.
SEC. 5. Section 40426.1 is added to the
Health and Safety Code , to read:
40426.1. A member of the south coast district board who is
eligible for a vehicle or vehicle allowance from the local government
from which he or she is appointed shall not be issued a vehicle from
the south coast district for greater than seven days in a 30-day
period.
SEC. 4. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.