BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 533
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 533
           AUTHOR:     Wright
           AMENDED:    April 25, 2011
           FISCAL:     Yes               HEARING DATE:     May 2, 2011
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    REGULATORY REQUIREMENTS

            SUMMARY  :    
           
            Existing law  :

           1) Under the Administrative Procedure Act (APA) (Government 
              Code �11340 et seq.) establishes rulemaking procedures and 
              standards for state agencies.  State regulations must also 
              be adopted in compliance with regulations adopted by the 
              Office of Administrative Law (OAL).  The APA, among other 
              things: 

              a)    Requires every agency to prepare and submit a 
                 specified notice of the proposed action and make certain 
                 information available to the public (e.g., draft 
                 regulation in "plain English;" statement of reasons for 
                 proposing the adoption, amendment, or repeal of a 
                 regulation; evidence to support a determination that the 
                 action will not have a significant adverse economic 
                 impact on business).  (�11346.2).  The statement of 
                 reasons must identify each technical, theoretical, and 
                 empirical report upon which the agency relies in 
                 proposing the regulation (�11346.2(b)(2)), and the 
                 California Air Resources Board (ARB) must make this 
                 information public that is related to, but not limited 
                 to, air emissions, public health impacts, and economic 
                 impacts before the comment period for any regulation 
                 proposed for adoption by ARB (Health and Safety Code 
                 �39601.5). 

              b)    Requires OAL to either approve a submitted regulation 
                 and transmit it to the Secretary of State for filing, or 









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                 disapprove it, within 30 working days.  If OAL fails to 
                 act within 30 working days, the regulation is deemed 
                 approved and OAL must transmit it to the Secretary of 
                 State.  (�11349.3).

           2) Under the California Global Warming Solutions Act of 2006 
              (CGWSA), requires ARB to determine the 1990 statewide 
              greenhouse gas (GHG) emissions level and approve a 
              statewide GHG emissions limit that is the equivalent to 
              that level, to be achieved by 2020 (Health and Safety Code 
              �38500 et seq.).  ARB must adopt rules and regulations to 
              achieve greenhouse gas emission reductions to achieve the 
              maximum technologically feasible and cost-effective 
              reductions in GHGs, subject to certain requirements 
              (�38562(h)).  Definitions are provided for certain terms 
              (�38505).

            This bill  , under the California Global Warming Solutions Act 
           of 2006:

           1) Requires ARB to make any implementation schedule that is 
              required to comply with a regulation available to the 
              public at the time ARB adopts the regulation.

           2) Requires ARB to make a required reporting form or 
              compliance tool available to the public and on ARB's 
              Internet website at least 60 days prior to the date the 
              reporting form or compliance tool is required for 
              compliance with the regulation, if a regulation 
              specifically requires a reporting form or compliance tool.

           3) Requires training to be made available at least 60 days 
              prior to the compliance date for which training is 
              specifically required by regulation.

           4) Authorizes ARB to revise an implementation schedule, 
              reporting form, or compliance tool required to be made 
              available to the public after ARB adopts a regulation if 
              the ARB modifies the compliance deadline for the revised 
              regulatory requirement to allow entities at least 60 days 
              to comply.











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           5) Defines "compliance tool" to mean the following items 
              specified in a regulation for compliance:  a) computer 
              models, b) databases, c) algorithms, d) formulas, e) forms, 
              f) software, g) labels, h) protocols, and i) metrics.

           6) Makes clarifying and technical amendments. 



            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "SB 533 will 
              require the �ARB], when adopting regulations, to include 
              implementation schedules, procedures, and forms necessary 
              for compliance with the proposed regulation."  The author 
              notes that this will enable "California businesses and 
              public agencies to comply or prepare for compliance with 
              the new regulations."

           In response to this concern, SB 533:  a) requires ARB to make 
              any implementation schedule available to the public when 
              ARB adopts a regulation under the CGWSA; b) requires ARB to 
              make a reporting form or compliance tool available to the 
              public at least 60 days prior to the date the reporting 
              form or compliance tool is required; c) allows ARB to 
              revise an implementation schedule, reporting form, or 
              compliance tool if certain conditions are met; and d) 
              defines "compliance tool."

            2) Trying again  .  As approved by the Committee April 22, 2010 
              (5-0), and the Senate May 24, 2010 (24-0), SB 1351 (Wright) 
              focused on ARB making any CGWSA implementation schedule 
              available to the public at the time ARB adopts a 
              regulation, while also requiring any reporting form to be 
              available 45 days prior to the date required to file the 
              form in accordance with the implementation schedule if the 
              reporting form is required to initiate compliance with a 
              regulation.

           Assembly amendments broadened the scope of this bill to also 
              apply to a metric, compliance tool, or training - while 
              requiring the metric, compliance tool, or training to be 










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              made available at least 60 days before being required in 
              accordance with the implementation schedule; provide 
              definitions for "compliance tool" and "metric"; and 
              authorize ARB to revise an implementation schedule, 
              reporting form, compliance tool, or training if ARB also 
              modifies the compliance deadline to allow regulated 
              entities 60 days to comply.  SB 1351 was referred to 
              Committee under Senate Rule 29.10 for an August 19, 2010, 
              hearing where certain issues were raised, and the bill 
              failed (2-1).

           SB 533 responds to the issues raised in the SB 1351 August 19, 
              2010, analysis by:  a) referencing an implementation 
              schedule, reporting form, or compliance tool that is "made 
              available" to the public rather than "published;" b) 
              clarifying that a modified compliance deadline refers to 
              the revised regulatory requirement rather than the entire 
              regulation; and c) specifying items under the "compliance 
              tool" definition rather than providing that the definition 
              is also not limited to those specified items.

            SOURCE  :        California Council for Environmental and 
                          Economic Balance  

           SUPPORT  :       CalChamber
                          California Small Business Association
                          Southern California Edison
            
           OPPOSITION  :    None on file