BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 763
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 763
           AUTHOR:     Steinberg
           AMENDED:    April 28, 2011
           FISCAL:     Yes                                  HEARING 
           DATE:May 2, 2011
           URGENCY:    No                                  CONSULTANT:    
               Rachel Machi                                Wagoner
             
            SUBJECT  :    ENVIRONMENTAL PROTECTION: CALIFORNIA PERFORMANCE 
                          PLUS PROGRAM

            SUMMARY  :    
           
            Existing law  creates the California Environmental Protection 
           Agency (CalEPA) under the supervision of an executive officer 
           known as the secretary, appointed by the Governor and 
           confirmed by the California State Senate.  CalEPA is comprised 
           of the following boards, departments and offices:  The 
           California Air Resources Board, the California Water Resources 
           Control Board, the Department of Pesticide Regulation, the 
           Department of Toxic Substance Control and the Office of 
           Environmental Health Hazards Assessment.

            This bill  :  

           1) Authorizes the Secretary for Environmental Protection to 
              establish programs to, among other things, recognize 
              facilities and persons that have demonstrated a commitment 
              to enhanced environmental performance, including at a 
              minimum developing or initiating implementation of an 
              environmental management system.

           2) Defines "environmental management system" as a 
              comprehensive, cohesive set of policies and procedures 
              adopted by a facility or person and used to establish 
              environmental goals, meet and maintain those goals, 
              evaluate environmental performance, and achieve measurable 
              improvement in environmental performance.










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           3) Requires the secretary to develop guidelines and procedures 
              for implementation of the program.
           4) Requires for Governor's Performance Plus Awards to be 
              awarded annually to recognize participants in the program 
              that have demonstrated innovation in the implementation of 
              pollution prevention practices and other efforts to reduce 
              environmental impacts.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, by rewarding 
              companies with public recognition from the Governor, SB 763 
              provides an additional incentive for industry to shrink its 
              environmental footprint while fostering innovation and 
              growing profitability.  SB 763 will encourage businesses to 
              think about how they can improve California's environmental 
              quality and economic vitality by allowing participating 
              businesses to maximize their return on investment for 
              sustainability initiatives through recognition.

            2) Other State Programs  .  Oregon, Massachusetts, Michigan and 
              Wisconsin have enacted similar programs to reward 
              sustainable businesses.  Due to the unique nature of 
              California's environmental regulatory structure it would be 
              difficult to model a program directly after any of these 
              programs.  These programs do however offer some examples of 
              programs from which to learn.

            3) Above and Beyond Compliance  .  SB 763 aims to reward those 
              businesses that go beyond compliance with environmental 
              regulation and integrate sustainability into their business 
              philosophy and model to the benefit of both the business 
              and California.  The bill sets up a three-level system to 
              define and evaluate the "sustainability" of a business or 
              facility.  Those levels are broadly defined in the bill.  
              Because the term "sustainable" is not defined in California 
              statute, the bill should be amended to more narrowly 
              establish who is eligible for participation in this program 
              to prevent "green washing" and to truly capture the most 
              exemplary, sustainable businesses in California.  
              Additionally, as this is a new program for California, it 
              may be worthwhile to begin this program as a pilot project 
              capturing 5 to 10 of the most exemplary sustainable 









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              businesses from across the state and cross sectors to build 
              a successful program and ensure that the program does not 
              inadvertently capture practices or facilities that are not 
              sustainable.   

              The author should ensure that committee staff are involved 
              in the development of this program.

            4) Sustainable  .  When the Legislature contemplates legislation 
              and policy in California on sustainability, it looks at 
              issues relating to air, water, soil quality as well as 
              waste reduction and energy and water use.  CalEPA has 
              authority over air, water and soil quality but waste 
              reduction and energy and water use are regulated by other 
              agencies.  The author may wish to require coordination 
              among all of California's agencies that regulate some 
              aspect of being sustainable.

            SOURCE  :        The Sustainable Earth Initiative  

           SUPPORT  :       Bay Planning Coalition  

           OPPOSITION  :    None on file