BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2469
                                                                  Page  1

          Date of Hearing:  April 12, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
             AB 2469 (Bill Berryhill) - As Introduced:  February 19, 2010
           
          SUBJECT  :  State Air Resources Board (ARB): dispute resolutions.

           SUMMARY  :  Establishes a dispute resolution process for any  
          person who is, or will be, in violation of any rule, regulation  
          or order adopted by ARB.

           EXISTING LAW  :

          1)Establishes ARB within the California Environmental Protection  
            Agency.  ARB's primary duties are controlling motor vehicle  
            emissions, coordinating activities of air districts for the  
            purposes of the federal Clean Air Act, and implementing the  
            California Global Warming Solutions Act (AB 32).

          2)Requires ARB to administer an Ombudsman's Office that serves  
            as a general resource to small businesses, large businesses,  
            trade associations, and individual community members regarding  
            air quality regulations.

          3)Provides for the establishment of county air pollution control  
            districts, and requires that a county district be established  
            in every county, unless the entire county is included within  
            the Antelope Valley Air Quality Management District, the Bay  
            Area Air Quality Management District, the Mojave Desert Air  
            Quality Management District, the South Coast Air Quality  
            Management District (SCAQMD), the San Joaquin Valley Air  
            Quality Management District, if that district is created, a  
            regional district, or a unified district.

          4)Subject to the powers of the ARB, requires air districts to  
            adopt and enforce rules and regulations to achieve and  
            maintain the state and federal ambient air quality standards  
            in all areas affected by non-vehicular emission sources under  
            their jurisdiction. 

          5)Authorizes air districts to establish a permit system that  
            requires, except as specified, that before any person builds,  
            erects, alters, replaces, operates, or uses any article,  
            machine, equipment, or other contrivance that may cause the  








                                                                  AB 2469
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            issuance of air contaminants, the person obtain a permit from  
            the air pollution control officer of the district.

          6)Requires each air district to appoint a five-member hearing  
            board, including a lawyer, an engineer, and a medical  
            professional, for the purpose of hearing applications for  
            variances from district rules.  Districts are authorized to  
            collect fees from applicants to cover the costs of the hearing  
            board process.

           THIS BILL  :

          1)Establishes a dispute resolution process where any person who  
            is, or will be, in violation of any rule, regulation or order  
            adopted by ARB, may apply for a dispute resolution order,  
            which may be granted by a single hearing officer, to provide  
            any relief deemed appropriate by the hearing officer.

          2)Establishes detailed hearing procedures and conditions for  
            granting an order based on the SCAQMD's existing variance  
            process.

          3)Authorizes the hearing officer to change rules adopted by ARB,  
            order rehearing of her/his decision if a petition is filed  
            within 10 days, and authorizes judicial appeal of a hearing  
            officer's order by filing a petition for a writ of mandate  
            within 30 days after the decision.

          4)Requires the hearing officer to be an administrative law judge  
            from the Office of Administrative Hearings.  Prohibits an  
            officer or employee of ARB from serving as a hearing officer.

          5)Authorizes ARB, after conducting a hearing, to modify or  
            revoke a hearing officer's order under specified  
            circumstances.

           FISCAL EFFECT  :   Unknown, but probably significant costs to ARB  
          and the Office of Administrative Hearings to conduct dispute  
          resolution hearings.

           COMMENTS  :   

           1)Purpose of the bill.   According to the author:

               Currently, the ARB executive officer and staff make  








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               significant enforcement decisions that are not subject to  
               review.  In addition, in cases where the ARB would like to  
               extend a compliance deadline, there is no process to  
               formally and publicly adopt that extension.  The only  
               appeal process available to a regulated party is to sue the  
               state.  This requires significant resources and time that  
               are not reasonably available to the majority of regulated  
               parties.  In addition, lawsuits frequently do not solve  
               problems?An administrative dispute resolution process will  
               provide a fair, efficient, and predictable process  
               available to all regulated parties and will reduce the  
               money and time spent defending lawsuits and in informal  
               negotiations.  It will also increase the transparency of  
               the appeal process as all interested stakeholders can weigh  
               in during the hearing.  The proposed dispute resolution  
               process is modeled after existing air pollution hearing  
               processes developed for disputes that could occur under  
               local air pollution district rules.

           2)Existing resources for dispute resolution at ARB.   Before a  
            regulation is adopted, ARB must follow the usual rulemaking  
            process, which offers all parties an equal opportunity to  
            comment on proposed regulations, participate in hearings and  
            workshops, and lobby the board itself.  The ARB process is  
            then followed by review by the Office of Administrative Law  
            before a regulation is implemented.  Parties aggrieved by  
            adopted regulations may seek administrative relief from the  
            executive officer, the board, or via judicial review.  In  
            addition, ARB is federally mandated to house an Ombudsman  
            Office to assist small and large businesses, trade  
            associations, and individual community members regarding any  
            aspect of the ARB regulatory process.  The Ombudsman's mission  
            includes education on California's air quality management  
            system, guidance on air quality rules and regulations,  
            assisting small businesses in compliance with those  
            regulations, and providing help toward solutions when there is  
            an air quality compliance problem.  The Ombudsman reports  
            directly to the ARB Chair.

           3)Bill addresses different circumstances and proposes different  
            standards than air districts' variance process.   The scope of  
            this bill is much broader than any existing air district  
            variance process because it permits any person who must comply  
            with any ARB regulation, including stationary and mobile  
            sources, consumer products makers, even air districts and  








                                                                  AB 2469
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            other public agencies, to appeal for relief.  The number of  
            entities eligible for relief is therefore many times greater  
            than any air district.  Unlimited appeals could swamp the  
            dispute resolution process and delay compliance with air  
            quality and climate change goals.

            In addition, the bill proposes that petitions for relief be  
            decided by a single ALJ, rather than the five-member hearing  
            boards in the air district process, and requires no particular  
            qualifications for the ALJ.  Finally, unlike the air district  
            process which requires applicant fees to cover the cost of  
            review, the bill provides no specific fee authority to fund  
            the hearing process.

           4)Double referral.   Should this bill be approved by this  
            committee, it will be re-referred to the Judiciary Committee  
            for policy review of its hearing procedures and relationship  
            to the judicial review process.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Chamber of Commerce
          California Council for Environmental and Economic Balance  
          (sponsor)
          Western States Petroleum Association

           Opposition 
           
          American Lung Association
          Bay Area Air Quality Management District
          Breathe California
          Environment California
          Environmental Defense Fund
          Sierra Club California
          Union of Concerned Scientists
           

          Analysis Prepared by :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092