BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1205
                                                                  Page 1

          Date of Hearing:  June 26, 2006

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Loni Hancock, Chair
                    SB 1205 (Escutia) - As Amended:  June 20, 2006

           SENATE VOTE  :  21-13
           
          SUBJECT  :  Air pollution:  Children's Breathing Rights Act:   
          penalties.

           SUMMARY  :  Enacts the Children's Breathing Rights Act (Act) and  
          increases the penalty caps for specified violations.

           EXISTING LAW  :

          1)Provides that violation of an Air Resources Board (ARB) or air  
            district rule, regulation or permit is a misdemeanor, and  
            punishable by a fine up to $1,000, imprisonment up to six  
            months, or both.  Owners and operators of a source of air  
            pollutants which cause actual injury are guilty of a  
            misdemeanor and subject to a fine of up to $15,000, and  
            imprisonment up to nine months.

          2)Provides that a negligent emission of an air contaminant in  
            violation of a ARB or air pollution district rule, regulation,  
            permit or order is a misdemeanor, punishable by a fine up to  
            $25,000, imprisonment up to nine months, or both.  Knowing  
            emissions are misdemeanors, punishable by a fine up to  
            $40,000, imprisonment up to one year, or both.  Title V  
            knowing violations are also misdemeanors and are punishable by  
            a fine up to $10,000.

          3)Defines Title V as a stationary source required by federal law  
            to have an operating permit pursuant to the federal Clean Air  
            Act (CAA).

          4)Provides that violation of any rule, permit or order issued by  
            a district results in strict liability for a civil penalty of  
            not more than $10,000.

          5)Provides that an intentional or negligent violation of an  
            order of abatement results in civil liability up to $25,000  
            per day per violation.  Knowing violations of orders trigger  
            penalties up to $40,000 per day; knowing falsification of  








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            documents results in a penalty up to $35,000.

          6)Provides that any person who owns or operates a source in  
            violation that emits contaminants which causes actual injury  
            to the health and safety of the public is liable for a civil  
            penalty of not more than $15,000.

          7)Provides that a person who violates any rule, regulation, or  
            permit regarding airborne toxic control measures (ATCMs) is  
            strictly liable for up to $1,000 per day per violation.   
            Penalties up to $10,000 are authorized for violations of ATCMs  
            enforced under CAA.  The affirmative defense of unintentional,  
            non-negligent behavior is available when more than $1,000 per  
            day per violation is sought, unless the violation concerns  
            fully approved Title V sources, or toxic air contaminant  
            programs with approved enforcement authority under the CAA.

          8)Provides that proceeds from enforcement actions by air  
            pollution control officers go the treasurer of the district  
            where the violation occurred.
           
          THIS BILL  :

          1)Establishes the Act.

          2)Increases the maximum penalties for specified violations of  
            air pollution laws from nonvehicular sources to $10,000, and  
            to $50,000 in the case of Title V sources.

          3)Assess an additional civil penalty of not more than $100,000  
            per day for each violation committed by a serious violator.

          4)Defines "serious violator" to include a person who does any of  
            the following:

             a)   Purposely or knowingly disconnects or disables a  
               monitoring device or method required by an operating  
               permit;

             b)   Purposely or knowingly makes any false material  
               statement, representation, or certification in any form  
               notice, statement, or report required in connection with a  
               permit; or, 

             c)   Commits certain high priority violations (HPVs), as that  








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               term is used in CAA and as articulated in specified  
               policies of the United States Environmental Protection  
               Agency (US EPA).

          5)Requires ARB to post specified information on its website by  
            January 1 of each year, the same information on air quality  
            violations that the local air districts provide to US EPA.

          6)Requires local air districts to submit enforcement data in a  
            specified format to ARB.

          7)Authorizes a local air district to enter into a settlement  
            agreement wherein part of the settlement funds may be directed  
            to a local fund set up pursuant to this bill called the  
            Children's Breathing Rights Fund (Fund).

          8)Requires money allocated from the Fund to be directed to  
            community and county organizations and programs addressing  
            health-related problems caused by air pollution.

          9)Requires local air districts to utilize a Children's Breathing  
            Rights Fund Advisory Committee to determine how money in the  
            Fund is allocated and awarded.

          10)Requires local air districts to report to ARB specified  
            information regarding settlement funds contributed to each  
            local Fund and the allocation of that money.

           FISCAL EFFECT  :  Unknown.
























                                                                  SB 1205
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           COMMENTS  :

           1)Background  

          CAA, enacted in 1970, attempted to create a nationwide solution  
            to the growing problem of air pollution.  Under CAA, US EPA  
            develops national ambient air quality standards (NAAQS) for  
            certain pollutants.  CAA leaves the decision of how to  
            implement the NAAQS up to the states through their State  
            Implementation Plan (SIP).  Additionally, CAA mandated the  
            creation of New Source Performance Standards (NSPS) for new or  
            modified stationary sources.  California's implementation of  
            CAA, following US EPA's established standards, assigned  
            creation of standards to ARB.  ARB is designated as the state  
            agency with the primary responsibility for the control of  
            vehicular air pollution, while local air pollution control  
            districts are designated with the primary responsibility for  
            the control of air pollution from stationary sources.

          California is divided into 35 air quality districts.  Each  
            district is run by a local air pollution control officer with  
            discretion over enforcement of air pollution regulations  
            within that district.  Based on the type of violation, maximum  
            penalties range from between $1,000 to $1,000,000 per  
            violation per day.  No minimum penalty is required, leaving  
            the amount prosecuted at the discretion of the air pollution  
            control officer.  Offenses are generally strict liability, but  
            affirmative defenses are allowed when officers seek more than  
            $1,000 per day for certain non-Title V violations.  Title V  
            violations relate to operating permits required under CAA for  
            specified stationary sources, such as sources emitting more  
            than 100 tons per year of a criteria pollutant, affected  
            sources under acid rain requirements, and solid waste  
            incinerators.  

           2)Purpose of Bill

           According to the author, this bill addresses the problem of  
            current fines being a "minor inconvenience" for polluters:  

                Without increasing penalties for serious or chronic air  
               polluters, some of California's major air-polluting  
               industries that put profit over pollution prevention may  
               find it more cost-effective to violate environmental laws  
               and place competitors that comply with environmental laws  








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               at an economic disadvantage.

            The included findings and declarations state that air  
            pollution disproportionately impacts the health of young  
            children.  More than 2.8 million California children are  
            enrolled in schools "near reported air emissions of  
            carcinogens, reproductive toxins, nitrogen oxides, sulfur  
            dioxide or particulate matter."  Supporters add that "[o]ver  
            the course of the last ten years . . . asthma in youth has  
            increased by 60 percent and is the number one cause of student  
            absenteeism due to a chronic illness."

            The author proposes to address this problem by increasing caps  
            for serious and chronic violators, creating the Fund, and by  
            using a portion of settlement agreements to fund local  
            programs addressing health-related issues caused by air  
            pollution.




































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           3)Dual-Referral  

          This bill is double-referred.  Should this bill pass out of this  
            committee, it will be re-referred to the Judiciary Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Lung Association of California
          Breathe California of Los Angeles
          Bus Riders Union
          California Attorney General Bill Lockyer
          California District Attorneys Association
          California Environmental Rights Alliance
          California League of Conservation Voters
          California Medical Association
          California Safe Schools
          Children's Health Environmental Coalition
          Clean Power Campaign
          Community Action to Fight Asthma
          Environment California
          Environmental Working Group
          Girl Scout Councils of California
          Labor/Community Strategy Center
          Latino Issues Forum
          Literacy for Environmental Justice
          Long Beach Alliance for Children with Asthma
          Mexican American Opportunity Foundation
          Natural Resources Defense Council
          PHFE Management Solutions
          Physicians for Social Responsibility Los Angeles
          PICO California
          Planning and Conservation League
          Pueblo & Salud
          St. Mark AME Church
          Sierra Club California
          The 100% Campaign
          The California Environmental Health & Justice Team
          The Foundation for Early Childhood Education
            Union of Concerned Scientists

           Opposition 
           
          Agricultural Council of California








                                                                  SB 1205
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          Alliance of Western Milk Produers
          American Chemistry Council
          American Forest and Paper Association
          Bay Area Air Quality Management District
          California Air Pollution Control Officers Association
          California Association of Sanitation Agencies
          California Bean Shippers Association
          California Chamber of Commerce
          California Citrus Mutual
          California Cotton Ginners Association
          California Cotton Growers
          California Council for Environmental and Economic Balance
          California Farm Bureau Federation
          California Grain and Feed Association
          California Grape and Tree Fruit League
          California Independent Oil Marketers Association
          California Independent Petroleum Association
          California Restaurant Association
          California Seed Association
          California Space Authority
          California Trade Coalition
          California Warehouse Association
          Chemical Industry Council
          Consumer Specialty Products Association
          Grocery Manufacturers Association
          Harris Farms
          Industrial Environmental Association
          Nisei Farmers League
          Surface Technology Association
          Western Growers
          Western Plant Health Association
          Western State Petroleum Association
          Wine Institute


           Analysis Prepared by  :  Joanne Roy / NAT. RES. / (916) 319-2092