BILL ANALYSIS
SB 1402
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1402 (Dutton) - As Amended: June 24, 2010
Policy Committee: Natural
ResourcesVote:7-0
Judiciary 10-0
Urgency: Yes State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Air Resources Board (ARB) to include
specified information in its written communications alleging
that a penalty for air pollution violation will be or could be
imposed. Specifically, this bill:
1)Requires ARB to include the following information as part of
its written communications that the board or another entity
will or could impose an administrative or civil penalty for
air quality violation, and to make the information available
to the public:
a) How the penalty amount was determined;
b) The provision of law under which the penalty is being
assessed and an explanation of why that provision is most
appropriate; and,
c) Whether the penalty is being assessed for a provision of
law that prohibits a specified level of emissions and, if
so, a quantification of the pollution emitted in violation
of that level.
2)Directs ARB to report annually to the Legislature and governor
on imposition of air pollution penalties.
3)Requires ARB to publish, by March 11, 2011, a policy for air
pollution penalties.
FISCAL EFFECT
SB 1402
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Costs of an unknown amount, potentially in excess of $150,000
per year, for up to one position at ARB to include specified
information in written communications, to make it available to
the public, and to update and publish penalty policy and report
to the Legislature and governor. (Air Pollution Control Fund)
COMMENTS
1)Rationale . The author describes entities subject to ARB
regulation as having expressed concern over the lack of
information on how ARB determines and assesses penalties. The
author also notes complaints about a lack of consistency in
penalty amounts and justifications. The author intends this
bill to: (a) ensure that this information is provided to
alleged air pollution violators and is publicly available, (b)
codify some of ARB's improvements to the transparency of its
penalty policies, (c) provide legislative oversight, and (d)
ensure penalties are assessed consistently by establishing a
written penalty policy.
2)Background . Under current law, the ARB and/or local air
pollution control districts are authorized to impose civil or
administrative penalties for a variety of violations of state
air pollution laws and regulations. Administrative penalties
of up to $100,000 may be assessed for certain violations. ARB
and the courts are required to consider several factors when
determining the amount of an administrative or civil penalty -
including the harm to the public, the compliance history of
the defendant, preventative efforts made by the defendant, and
other factors. Fine and penalty revenues are generally
deposited in the APCF, where they are available, upon
appropriation of the Legislature, for environmental cleanup,
abatement, or pollution prevention, or in the General Fund.
3)Support . This bill is supported by numerous industry groups
subject to regulation by ARB and/or local air districts, who
contend ARB oftentimes fails to provide adequate information
regarding air quality violations and inconsistently imposes
penalties for violation.
4)Opposition . The Department of Finance was opposed to an
earlier version of this bill, which Finance asserts is
unnecessary because it duplicates actions ARB already is
undertaking administratively. Finance also notes that the
SB 1402
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bill contains no new funding to pay for the workload it
creates, which Finance estimates will cost approximately
$500,000 a year-a cost estimate substantially greater than the
cost estimate provided by this analysis-to ensure penalty
communications are adequately detailed. It is not known
whether Finance remains opposed to the latest version of the
bill, the provisions of which are similar to the version of
the bill Finance opposed.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081