BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1433
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      SB 1433 (Leno) - As Amended:  May 5, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:5-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill directs the Air Resources Board (ARB), effective March  
          1, 2011, to adjust for inflation, based on the California  
          Consumer Price Index (CCPI), the maximum amount that may be  
          levied by the ARB and by local air districts for specified  
          stationary source air quality violations.  The bill also  
          requires ARB to annually publish on its Web site the  
          CCPI-adjusted penalty amounts.

           FISCAL EFFECT  

          1)Minor, absorbable costs to ARB to annually update penalty  
            amounts and to publish those amounts on ARB's Web site.

          2)According to ARB, potential annual increase in revenue to the  
            Air Pollution Control Fund of approximately $150,000, based on  
            average annual penalties of $4.6 million and a 3% annual CCPI  
            inflation factor.

           COMMENTS  

           1)Rationale  .  According to the Bay Area Air Quality Management  
            District (sponsor), the maximum amounts that ARB and local air  
            districts may charge for "strict liability" air quality  
            violations-the most minor types of air quality violations-have  
            not been adjusted since they were established in 1982.  The  
            district and other proponents explain that the nominal maximum  
            penalty amounts have remained the same in the ensuing decades  
            while inflation has persisted.  The effect, proponents  
            contend, is erosion of the real penalty amounts and, as a  
            consequence, their deterrent effect.   The proponents conclude  








                                                                  SB 1433
                                                                  Page  2

            tying the maximum penalty amounts to the CCPI will maintain  
            their real and dissuasive values.

           2)Related Legislation  .

              a)   SB 1865 (Perata), Chapter 805, Statutes of 2000  ,  
               increased civil and criminal penalties for air quality  
               violations resulting from willful and egregious conduct.

              b)   AB 846 (Torrico)  requires certain entities, other than  
               ARB, that regulate environmental, health, and workplace  
               safety violations to adjust for inflation their minimum and  
               maximum penalties.  The bill passed the Assembly 47-30 and  
               is pending action before the Senate Committee on  
               Governmental Organization.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081