BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1095
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          Date of Hearing:  May 2, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 1095 (Bill Berryhill) - As Amended:  March 31, 2011
           
          SUBJECT  :  Air pollution:  hearing board:  State Air Resources 
          Board

           SUMMARY  :  Requires a hearing board within the Air Resources 
          Board (ARB) based on existing statutory requirements for air 
          district hearing boards, to the extent those provisions can be 
          made applicable.

           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)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. 

          4)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.

           FISCAL EFFECT  :  Unknown

          COMMENTS  : 

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








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            The Air Resources Board's role has evolved from a Board that 
            primarily regulated mobile sources to one regulating all 
            emission sources.  At present, several regulations are being 
            developed that give the Executive Officer additional authority 
            to make decisions outside the open and public regulatory 
            process.  Currently, air quality management districts that 
            have similar executive authority also have statutory or 
            adopted dispute resolution hearing boards. In cases in which 
            individuals or companies come into conflict with rules and 
            regulations, these hearing boards weigh the evidence and reach 
            a decision.  

            Currently, the ARB Executive Officer and staff make 
            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 publically 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.

            For example, the AB 32 program requires that ARB create a new, 
            far-reaching, and complex program under very tight statutory 
            deadlines.  The statutory deadlines are driving rapid 
            development of regulations which may have unintended 
            consequences and unknowable problems.  These types of problems 
            need a dispute resolution process to allow discussion and 
            opportunity outside of traditional enforcement processes and 
            litigation.  An administrative dispute resolution process will 
            provide a fair, efficient, and predictable forum available to 
            all regulated parties and will reduce the money and time spent 
            in litigation.  It will also increase the transparency of the 
            appeal process and thus afford all stakeholders the 
            opportunity to comment during the hearing.  The proposed 
            dispute resolution process is modeled after existing air 
            pollution hearing processes in HSC Chapter 8, � 40800 - 40865, 
            part 3 which have worked well in resolving regulatory 
            compliance issues at the air pollution control districts in a 
            timely and cost-effective manner.

           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 








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            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.

           REGISTERED SUPPORT / OPPOSITION :

           Support 
           
          California Council for Environmental and Economic Balance 
          (sponsor)
          California Asian Pacific Chamber of Commerce
          California Chamber of Commerce
          California League of Food Processors
          California Manufacturers & Technology Association
          California Retailers Association
          Consumer Specialty Products Association
          Evergreen Oil
          National Federation of Independent Business
          Southern California Contractors Association
          Western Growers
          Western States Petroleum Association
          Wine Institute

           Opposition 
           
          None on file

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










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