BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1205
                                                                  Page  1

          Date of Hearing:   August 9, 2006 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   SB 1205 (Escutia) - As Amended:  June 20, 2006 

          Policy Committee:                             Natural Resources  
          Vote:        7-3
                       Judiciary                              6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill expands and increases civil penalties imposed by local  
          air districts on violators of nonvehicular air pollution control  
          laws, establishes a process by which a portion of funds  
          generated by a settlement agreement between a local air district  
          and a violator may be allocated to community programs addressing  
          health problems caused by air pollution, and requires enhanced  
          reporting and availability to the public of air pollution  
          violations.

           FISCAL EFFECT  

          1)Substantial penalty revenue, potentially in the millions of  
            dollars annually statewide starting 2006-07, generated by  
            several increased civil penalties imposed by local air  
            districts on violators of nonvehicular air pollution control  
            laws.  (Local air district accounts.)

          2)Potential shift, in the hundreds of thousands annually  
            starting in 2007-08, from local air district accounts to a  
            newly-established Children's Breathing Rights (CBR) Fund in  
            each district.  The size of this shift depends on how many  
            settlement agreements between local air districts and  
            violators include an allocation to a local CBR Fund, and the  
            size of each allocation.

          3)Moderate costs to local air districts, probably less than  
            $250,000 annually statewide starting in 2007-08, to administer  
            CBR Funds, to create and maintain CBR advisory committees, and  
            to submit violation date in a specific format to the Air  








                                                                  SB 1205
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            Resource Board (ARB).  These costs are reimbursable from the  
            state.  (GF)

          4)Minor costs, probably less than $75,000 annually starting in  
            2007-08, to the ARB to process local air district data and to  
            make this information available on its website.  (Air  
            Pollution Control Fund.)

           SUMMARY CONTINUED

           Specifically, this bill:

          1)Increases, from $1,000 to $10,000, maximum penalties imposed  
            for violation of several air pollution control laws by  
            nonvehicular sources.

          2)Increases, from $1,000 to $50,000, the maximum penalty imposed  
            for violation of air pollution control laws by a Title V  
            source (a major stationary source of air pollutants).

          3)Adds a $100,000 per day maximum penalty for each violation  
            committed by a "serious violator," defined by this bill as any  
            person who purposely or knowingly disconnects or disables a  
            monitoring device or method or lies in any permit-required  
            form, statement, or report, or who commits certain  
            "high-priority" violations.

          4)Requires local air districts to submit enforcement data in a  
            specific format to the ARB and requires the ARB to post  
            detailed penalty information on its website by January 1 of  
            each year.

          5)Allows a local air district, when it enters into a settlement  
            agreement with a violator, to allocate a portion of settlement  
            funds to a local CBR Fund, established by this bill.

          6)Requires money allocated from a CBR Fund to be allocated and  
            awarded to community and county clinics, schools,  
            organizations, asthma coalitions, and other entities engaged  
            in or promoting asthma care management, asthma prevention  
            activities, and lung health, and other programs and activities  
            addressing health problems related to air pollution in each  
            local air district.
           
          COMMENTS  








                                                                  SB 1205
                                                                  Page  3


           1)Rationale  .  The author argues that civil penalties imposed on  
            refineries and other stationary sources of air pollution for  
            violating air pollution control laws are not high enough to  
            adequately deter these entities from continually violating  
            these laws.  The author also believes that a portion of funds  
            generated by any agreement entered into between a local air  
            district and a violator to settle a violation for less than  
            the maximum penalty should be deposited in a local CBR Fund,  
            which the bill requires to be created in each air district,  
            and that money in those funds should be allocated for local  
            health-based programs, including asthma prevention.

           2)CAPCOA Opposition  .  While this bill is supported by several  
            environmental and health-related and children's advocacy  
            organizations and is opposed by oil companies and other major  
            air polluters, the California Air Pollution Control Officers  
            Association (CAPCOA) opposes SB 1205.  CAPCOA, with membership  
            from all 35 local air districts, believes SB 1205 "would make  
            enforcement more difficult for air districts and does not  
            achieve the goal of enhancing penalties in a workable way."

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081