BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1205|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1205
          Author:   Escutia (D), et al 
          Amended:  8/24/06
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-1, 4/4/06
          AYES:  Dunn, Escutia, Kuehl
          NOES:  Ackerman
          NO VOTE RECORDED:  Vacancy

           SENATE ENV. QUALITY COMMITTEE  :  5-1, 4/24/06
          AYES:  Simitian, Chesbro, Escutia, Kuehl, Lowenthal
          NOES:  Runner
          NO VOTE RECORDED:  Cox

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 5/25/06
          AYES:  Murray, Alarcon, Alquist, Escutia, Florez, Ortiz,  
            Romero, Torlakson
          NOES:  Aanestad, Ashburn, Battin, Dutton, Poochigian

           SENATE FLOOR  :  21-13, 5/30/06
          AYES:  Alarcon, Alquist, Bowen, Cedillo, Dunn, Escutia,  
            Figueroa, Kehoe, Kuehl, Lowenthal, Migden, Murray, Ortiz,  
            Perata, Romero, Scott, Simitian, Soto, Speier, Torlakson,  
            Vincent
          NOES:  Aanestad, Ackerman, Ashburn, Battin, Cox, Denham,  
            Dutton, Hollingsworth, Maldonado, Margett, McClintock,  
            Morrow, Poochigian
          NO VOTE RECORDED:  Chesbro, Ducheny, Florez, Machado,  
            Runner, Vacancy

           ASSEMBLY FLOOR  :  Not available
                                                           CONTINUED





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           SUBJECT  :    Air pollution:  Childrens Breathing Rights Act:  
           penalties

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Childrens Breathing Rights  
          Act and increases the penalty caps for specified  
          violations.

           Assembly Amendments  (1) recast the direction that the  
          dollars collected would be deposited, and (2) recast the  
          bill with the same intent as when it left the Senate.

           ANALYSIS  :    

          Existing law:

          1. Provides that violation of an Air Resources Board (ARB)  
             or air district rule, regulation or permit is guilty of  
             a misdemeanor, and subject to 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, imprisonment up to nine months.

          2. Provides that negligent emission of an air contaminant  
             in violation of a ARB or air pollution district rule,  
             regulation, permit or order is guilty of 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 violations as a stationary source  
             required by federal law to have an operating permit  
             pursuant to the federal Clean Air Act.

          4. Provides that violation of any rule, permit or order  
             issued by a district results in strict liability for a  







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             civil penalty of not more than $10,000.

          5. Provides that 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 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 the  
             federal Clean Air Act (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 enacts the Children's Breathing Right Act and  
          increases the penalty caps for specified violations of  
          nonvehicular air pollution control laws.  Specifically,  
          this bill:

          1. Requires the ARB to post on its web site by January 1,  
             2008, and annually thereafter, the same information on  
             air quality violations that local air districts provide  
             to the United States Environmental Protection Agency in  
             an open and transparent manner.

          2. For local air districts serving a population of more  
             than 1,000,000, requires judgments and final settlement  
             agreements entered into by a local air district to be  







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             posted on the district's web site, if they are public  
             records.  For local air districts serving a population  
             of less than 1,000,000, requires either the information  
             be posted on the district's web site or post a statement  
             explaining how to obtain such information.

          3. Increases the maximum penalties for specified violations  
             of air pollution laws from nonvehicular sources, as  
             follows:

             A.    Any person who violates any rule or regulation,  
                emission limitation, or permit condition  is strictly  
                liable for a civil penalty not to exceed $10,000 for  
                each day  during any portion of which the violation  
                occurs.

             B.    Any person who violates any rule or regulation,  
                emission limitation, permit condition, order fee  
                requirement, filing requirement, duty to allow or  
                carry out inspection or monitoring activities, or  
                duty to allow entry for which delegation or approval  
                of implementation and enforcement authority has been  
                obtained is strictly liable for a civil penalty not  
                to exceed $50,000 for each day during any portion of  
                which the violation occurs.

             C.    Where a civil penalty in excess of $5,000 for each  
                day of violation is sought, there is no liability for  
                an amount above $5,000 for each day during any  
                portion of which a violation occurs, if the person  
                accused of the violation alleges by affirmative  
                defense and establishes that the violation is caused  
                by an act which was not the result of intentional or  
                negligent conduct. In a district in which a Title V  
                permit program has been fully approved, this  
                paragraph shall not apply to a violation of federally  
                enforceable requirements that occur at a Title V  
                source.

             D.    Any person who owns or operates any source of air  
                contaminants that causes a substantial risk of actual  
                injury to another person, whether the risk of injury  
                is immediate or in the future, is guilty of a  
                misdemeanor and is subject to a fine of not more than  







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                $25,000 or imprisonment in the county jail for not  
                more than nine months or both. 

             E.    Any person who owns or operates any source of air  
                contaminants that causes actual injury to another  
                person, is guilty of a misdemeanor and is subject to  
                a fine of not more than $50,000 or imprisonment in  
                the county jail for not more than nine months, or  
                both. 

             F.    Any person who negligently emits an air  
                contaminant that causes a substantial risk of actual  
                injury to another person, whether the risk of injury  
                is immediate or in the future, is guilty of a  
                misdemeanor and is punishable by a fine of not more  
                than $50,000 or imprisonment in the county jail for  
                not more than nine months, or both. 

             G.    Any person who negligently emits an air  
                contaminant that causes actual injury to another  
                person, is guilty of a misdemeanor and is punishable  
                by a fine of not more than $75,000 or imprisonment in  
                the county jail for not more than nine months, or  
                both. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions                2006-07     2007-08     
             2008-09               Fund  

            Penalty revenue shift         $350      $700       
            $700Special*
            Administrative costs                    $150       
            $400Special

            * Children's Breathing Rights Fund

           SUPPORT  :   (Verified  6/27/06) (Unable to reverify)








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          American Lung Association of California
          Breathe California, Los Angeles County
          Bus Riders Union
          California District Attorneys Association
          California Environmental Health & Justice Team of the  
            Women's Policy Institute
          California Environmental Rights Alliance
          California Medical Association
          California Safe Schools
          California Thoracic Society
          Children Now
          Children's Defense Fund
          Children's Health Environmental Coalition
          Children's Partnership
          Clean Power Campaign
          Community Action to Fight Asthma
          Environment California
          Environmental Working Group
          Foundation for Early Childhood Education
          Girl Scouts 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
          Office of the Attorney General
          PHFE Management Solutions
          Physicians for Social Responsibility, Los Angeles
          PICO California
          Planning and Conservation League
          Pueblo Y Salud, Inc.
          Sierra Club-California
          St. Mark AME Church
          100% Campaign

           OPPOSITION  :    (Verified  6/27/06) (Unable to reverify)

          Agricultural Council of California
          Alliance of Western Milk Producers
          American Chemistry Council
          American Forest and Paper Association
          California Air Pollution Control Officer's Association 
          California Association of Sanitation Agencies







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          California Bean Shippers Association
          California Chamber of Commerce
          California Citrus Mutual
          California Cotton Growers Association
          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 League of Food Processors
          California Manufacturers and Technology Association
          California Restaurant Association
          California Seed Association
          California Warehouse Association
          Civil Justice Association of California
          Consumer Specialty Products Association 
          Groceries Manufacturers Association
          Industrial Environmental Association
          Nisei Farmers League
          Sacramento Metropolitan Air Quality Management District 
          Southern California Alliance of Publicly Owned Treatment  
          Works
          Western Growers
          Western Plant Health Association
          Western States Petroleum Association
          Wine Institute

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          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  
          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  







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          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's office states that this bill addresses this  
          problem by increasing caps for serious violations, creating  
          the Children's Breathing Rights Fund, and by using a  
          percentage of fines and penalties received to fund  
          children's health initiatives and enhance enforcement  
          activities.

           ARGUMENTS IN OPPOSITION  :    Opponents, including the  
          California Chamber of Commerce, the Agricultural Council of  
          California, and the Western States Petroleum Association  
          state:  "SB 1205 is based on the false premise that certain  
          businesses choose to violate existing air rules while  
          accepting fines as the cost of doing business.  The bill is  
          another unjustified attempt to raise maximum penalties for  
          violations of permit requirements and air district rules.   
          The main purpose of the bill appears to be generation of  
          revenue.  Statewide, air quality has consistently improved  
          over the past 20 plus years, which indicates that the  
          current emissions control program is working well."


          RJG:mel  8/29/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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