BILL ANALYSIS
AB 2469
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Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2469 (Bill Berryhill) - As Amended: April 27, 2010
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill establishes a "dispute resolution process" for a
person who violates any Air Resources Board (ARB) rule or
regulation.
FISCAL EFFECT
1)Potential annual costs to ARB of an unknown amount for legal
and administrative work resulting from the dispute resolution
process. It is impossible to predict the amount of these
costs because they will depend upon (a) the number of people
who choose to use the dispute resolution process and (b) the
complexity of the cases subjected to the process.
Potential costs, however, can be illustrated by assuming 30%
of ARB's roughly 2,000 annual enforcement cases are subject to
the dispute resolution process, and by further assuming that
each of those cases represents the average amount of work for
such a process. ARB estimates an average case will involve
six days of attorney activity and nine days of work for an
Office of Administrative Hearings administrative law judge,
which ARB also will need to cover. Under such a scenario,
annual ARB costs would total approximately $2.7 million in
attorney costs and approximately $8 million in administrative
law judge costs (APCF).
2)Potential annual savings to ARB of an unknown amount, but
possibly in the millions of dollars and maybe in excess of the
costs generated by this bill, resulting from decreased
litigation costs, which presumes those who partake in the
dispute resolution process are generally satisfied with the
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outcomes of that process (APCF).
COMMENTS
1)Rationale . The author claims ARB makes significant
enforcement decisions not subject to review and that ARB lacks
a process to extend compliance deadlines, should it wish to do
so. As a result, the author argues, those subject to ARB
rules and regulation have no recourse other than to sue, which
requires significant resources not reasonably available to the
majority of regulated parties and which frequently fails to
solve problems. The author contends an administrative dispute
resolution process, as authorized by this bill, provides a
fair, efficient, and predictable process available to all
regulated parties and reduces the money and time spent
defending lawsuits and in informal negotiations, all while
increasing transparency.
2)Background . 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).
As described by the Natural Resources Committee's analysis of
this bill, ARB has a process and resources for resolving
disputes over enforcement of ARB rules and regulations. This
process includes a public rulemaking process, with regulations
reviewed by the Office of Administrative Law before
implementation. Parties subject to ARB regulations may seek
administrative relief from the executive officer, the board,
or judicial review.
In addition, federal law requires ARB to have 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)Support . As introduced, this bill was supported by the
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California Chamber of Commerce and other industry groups, who
contend, like the author, ARB lacks a dispute resolution
process other than legal challenge.
4)Opposition . As introduced, this bill was opposed by several
air quality, environmental and public health groups, who
expressed concern that the bill will delay implementation and
enforcement of ARB regulations and add costs to ARB's
processes without providing additional funding.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081