BILL ANALYSIS
SB 1433
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Date of Hearing: June 28, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 1433 (Leno) - As Amended: May 5, 2010
SENATE VOTE : 21-7
SUBJECT : Air pollution penalties: inflation adjustments
SUMMARY : Requires the Air Resources Board (ARB) to adjust for
inflation the maximum values for specific stationary source
fines and that are enforced by ARB and by local air districts
beginning March 1, 2011.
EXISTING LAW :
1)Establishes that ARB is the state agency responsible for the
enforcement of all vehicular and federal air pollution
regulations.
2)Establishes that local air districts have the primary
responsibility of enforcement of stationary source air
pollution laws.
3)Establishes fines and criminal penalties for specific
violations of stationary source air pollution laws.
THIS BILL :
4)Requires ARB, beginning March 1, 2011, to annually adjust the
maximum penalties for violations of air pollution standards
enforced by ARB, a local air pollution control district, or a
local air quality management district.
5)Requires that the inflation adjustment calculation be
prospective only and be based on the California Consumer Price
Index that is released during the January of that year by the
Department of Industrial Relations.
6)Requires ARB to publish the annually adjusted maximum penalty
values on their Internet Web site.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
SB 1433
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COMMENTS :
1)Background. Fines and penalties are generally established in
order to accomplish several basic objectives: 1) encourage
timely compliance with the law in order to eliminate negative
ongoing impacts of violation of the law; 2) create a level
playing field economically and competitively so that violators
do not reap competitive advantages; 3) discourage further
violations with the law. These principles, in general, apply
universally to most violations. Many of these penalties are
established by legislation and, in some cases, have not kept
up with inflation.
Stationary sources of air pollution in California are
typically overseen by local air pollution control districts.
The fines associated with these specific air pollution
violations were last established in 1982 at a maximum level of
$1,000 for a case of strict liability and have not been
adjusted for inflation since then. This bill adjusts maximum
penalties for stationary source violations. However, this
adjustment will not be retroactive. For example, if this
specific air pollution maximum fine had been annually adjusted
for inflation since the time of its establishment in 1982, the
current $1,000 ceiling would now be approximately twice that
value (~$2,000). If the provisions of this bill take effect
in 2011, the new maximum fine value will rather be calculated
prospectively. For example, if the provisions of this bill
were to have taken effect in 2009, the 2010 maximum penalty
value allowable for stationary air pollution violators would
have been approximately $1010. In addition, the penalty
adjustments are for maximum values, and no minimum values are
established, and courts and local air pollution control
districts take into account additional information including
mitigating factors when establishing the appropriate penalty
when a violation is identified.
At the federal level, the existing policy of the U.S.
Environmental Protection Agency (EPA) is to annually adjust
penalties for inflation for both statutory and regulatory
violations. The EPA is required to adjust their penalties for
inflation at least every four years.
2)Related legislation:
SB 1433
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SB 1865 (Perata), Chapter 805, Statutes of 2000, raised the
civil penalties for some non-strict liability violations of
air pollution limits.
AB 846 (Torrico) is currently in the Assembly Governmental
Organization Committee and pertains to inflation adjustments
to a wide range of non-air pollution associated penalties.
REGISTERED SUPPORT / OPPOSITION :
Support
American Lung Association
Bay Area Air Quality Management District
Breathe California
California Air Pollution Control Officers
California Environmental Rights Alliance
Coalition for Clean Air
Community Action to Fight Asthma
East Yard Communities for Environmental Justice
Environmental Working Group
Planning and Conservation League
Public Health Institute
Regional Asthma Management and Prevention
Sierra Club California
South Coast Air Quality Management District
Union of Concerned Scientists
Opposition
California Chamber of Commerce
California Council for Environmental and Economic Balance
Western Growers
Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916)
319-2092