BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 533|
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                                 THIRD READING


          Bill No:  SB 533
          Author:   Wright (D)
          Amended:  4/25/11
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-0, 5/2/11
          AYES:  Simitian, Blakeslee, Hancock, Kehoe, Lowenthal, 
            Pavley
          NO VOTE RECORDED:  Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Air Resources Board regulation

           SOURCE  :     California Council for Environmental and 
          Economic Balance


           DIGEST  :    This bill requires the State Air Resources Board 
          (ARB) to make available to the public, at the time that ARB 
          adopts a regulation pursuant to Administrative Procedure 
          Act (APA), any implementation schedule that is required to 
          comply with that regulation.  If a regulation adopted by 
          ARB specifically requires a reporting form, or a 
          "compliance tool," as defined, ARB would be required to 
          make this information available to the public on ARB's 
          Internet Web site at least 60 days prior to the date the 
          information is required for compliance with the regulation. 
           This bill requires training specifically required by a 
          regulation to be made available at least 60 days prior to 
          the compliance date for which the training is required.  
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          This bill authorizes ARB to revise a required 
          implementation schedule, reporting form, or compliance 
          tool, or training after adoption of a regulation, if ARB 
          makes a specified modification.

           ANALYSIS  :    

          Existing law:

          1. Under the APA (Government Code Section 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).  
                (Section11346.2)  The statement of reasons must 
                identify each technical, theoretical, and empirical 
                report upon which the agency relies in proposing the 
                regulation (Section11346.2(b)(2)), and the 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 Section39601.5). 

             B.    Requires OAL to either approve a submitted 
                regulation and transmit it to the Secretary of State 
                for filing, or 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.  (Section11349.3).

          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 

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             equivalent to that level, to be achieved by 2020 (Health 
             and Safety Code Section38500 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 (Section38562(h)).  Definitions 
             are provided for certain terms (Section38505).

          This bill, under CGWSA:

          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 Web site 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.

          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
           
           Purpose of Bill  .  According to the author, "SB 533 will 

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          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, this bill:  (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."

          As approved by the Senate in 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 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).

          This bill 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 

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          "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.

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  5/15/11)

          California Council for Environmental and Economic Balance 
          (source)
          California Chamber of Commerce 
          California Small Business Association
          Southern California Edison



          DLW:kc  5/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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