BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 965
                                                                  Page 1

           REPLACE  :  08/30/2012 

          SENATE THIRD READING
          SB 965 (Wright)
          As Amended August 24, 2012
          Majority vote

           SENATE VOTE  :   33-1
            
           ENVIRONMENTAL SAFETY         9-0GOVERNMENTAL ORGANIZATION    
          15-0                
           
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          |Ayes:|Wieckowski, Miller,       |Ayes:|Hall, Nestande, Atkins,   |
          |     |Campos, Chesbro, Davis,   |     |Block, Chesbro, Cook,     |
          |     |Donnelly, Feuer, Bonnie   |     |Galgiani, Garrick, Gatto, |
          |     |Lowenthal, Morrell        |     |Hill, Jeffries, Ma,       |
          |     |                          |     |Perea, Silva, Bradford    |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      17-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Hall, Hill, Lara,         |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes allowable ex parte communications with 
          State Water Resources Control Board (SWRCB) and Regional Water 
          Quality Control Board (RWQCB) members and increases the public 
          access to the SWRCB and RWQCB public processes.  Specifically, 
           this bill  : 

          1)Allows ex-party communications with members of the SWRCB and 
            the RWQCBs as follows:

             a)   Defines "interested person" as:

               i)     A participant in the proceeding regarding a matter 
                 before a board, or an agent, employee, or a person 








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                 receiving consideration for representing that 
                 participant;

               ii)    A person with a financial interest in a matter 
                 before a board, or an agent, employee, or a person 
                 receiving consideration for representing that person; 
                 and,

               iii)   A representative acting on behalf of a civic, 
                 environmental, neighborhood, business, labor, trade, or 
                 similar organization who intends to influence the 
                 decision of a board member on a matter before the board.

             b)   Defines "ex parte communication" as an oral or written 
               communication between a board member and an interested 
               person about a matter within the board's jurisdiction, 
               which does not occur in a public hearing, workshop, or 
               other official proceeding, or on the official record of the 
               proceeding on the matter.

             c)   Allows ex parte communication if the contact is 
               initiated by an interested person and directed to a SWRCB 
               or RWQCB member regarding:

               i)     Waste discharge requirements;

               ii)    Conditions of water quality certification; and, 

               iii)   Conditional waivers of waste discharge requirements 
                 where the board action does not identify specific persons 
                 or dischargers, but instead allows persons to enroll or 
                 file an authorization to discharge under the action.

             d)   Requires a notice of the ex parte communication to be 
               provided to the SWRCB and RWQCBs record within seven days 
               of the communication.

             e)   Requires the SWRCB or RWQCB to place in the public 
               record any report of an ex parte communication involving 
               that board.

          2)Requires the SWRCB and RWQCB public meeting rules to provide 
            adequate time for public witnesses who are testifying before 
            the SWRCB and RWQCBs.   Requires that the SWRCB and RWQCBs 
            provide at least twice the testimony time for a member of the 








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            public who utilizes a translator.  The requirement for 
            additional testimony time would not apply in those cases where 
            simultaneous translation services are required.

          3)Requires the SWRCB and RWQCBs to establish an environmental 
            justice (EJ) coordinator whose duties include:

             a)   Identify best practices for State and regional boards EJ 
               programs;

             b)   Conduct training and develop informational materials on 
               EJ issues for State and regional board staff; 

             c)   Incorporate relevant EJ legislation into State and 
               regional programs;

             d)   Provide assistance to the California Environmental 
               Protection Agency (Cal-EPA) Environmental Justice Advisory 
               Committee; and,

             e)   Incorporate the SWRCB bilingual program into public 
               meetings to insure full participation for all Californians.

           EXISTING LAW  :

          1)Prohibits communications between SWRCB or RWQCB members and 
            any other person about a pending, quasi-judicial matter if 
            such communications occur in the absence of other parties to 
            the matter without notice and an opportunity for all parties 
            to participate in the discussion.

          2)Allows SWRCB or RWQCB members to have communications with the 
            public and governmental officials outside of a noticed public 
            meeting if the topic of discussion is a general issue within 
            the board's jurisdiction or a rulemaking or other regulatory 
            proceeding. 

          3)Establishes the Cal-EPA Interagency Working Group on 
            Environmental Justice (IWG) to assist the Secretary with 
            developing an EJ strategy. 

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill would result in minor, absorbable costs to 
          the SWRCB and the regional boards to manage ex parte 
          communication requirements.








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           COMMENTS  :

           Need for the bill  .  According to the author, the ex parte 
          communication rules of the SWRCB and RWQCBs should be reformed 
          to allow more communication between decision-makers and 
          stakeholders.  The author contends that the regulated community 
          should have greater opportunity to talk with board members who 
          have such significant power to influence their activities.  The 
          boards should adopt rules similar to those used by other state 
          regulatory boards such as the Air Resources Board and the 
          California Coastal Commission, which allow communication between 
          regulators and the regulated as long as it is disclosed at 
          public meetings.

          The author argues that, "The current rules in place at the State 
          �Water] Board severely restrict participation by affected 
          stakeholders in the state board permitting process, and prohibit 
          communication with Members of the State Water Board once a draft 
          permit or other notice of proposed action has been prepared and 
          released by staff of the water board.  Instead, local 
          governments, businesses and other stakeholders are often limited 
          to just a few minutes of testimony before the board during a 
          formal hearing, despite the profound impact board decisions can 
          have on these regulated entities?

          "These self-imposed ex parte rules adopted by the water boards 
          have resulted in a lack of transparency and accountability.  A 
          strict prohibition against ex parte communications undermines 
          stakeholder confidence in the system."

           Why limit ex parte communications  ?  Rules regarding ex parte 
          communications have their roots in constitutional principles of 
          due process and fundamental fairness.  With public agencies, ex 
          parte communications rules also serve an important function in 
          providing transparency.  Ex parte communications may contribute 
          to public cynicism that decisions are based more on special 
          access and influence than on the facts, the laws, and the 
          exercise of discretion to promote the public interest.

          Ex parte communications are concerning in adjudicative 
          proceedings because they involve an opportunity by one party to 
          influence the decision maker outside the presence of opposing 
          parties, thus violating due process requirements.  Such 
          communications are not subject to rebuttal or comment by other 








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          parties.  Ex parte communications can frustrate a lengthy and 
          painstaking adjudicative process because certain decisive facts 
          and arguments would not be reflected in the record or in the 
          decisions.

           SWRCB and RWQCB ex parte communication requirements  .  According 
          to the SWRCB, the ex parte communications rules reflect the 
          SWRCB and RWQCBs hybrid powers.  Unlike the Legislature, the 
          SWRCB and RWQCBs have attributes of both legislative power and 
          judicial power.  The ex parte communications prohibition arises 
          when the SWRCB or RWQCBs are exercising their judicial power.  
          Rules and due process preclude judges from receiving ex parte 
          communications on matters pending before them.  Similarly, even 
          when exercising legislative power, the SWRCB and RWQCBs do so 
          within the narrow confines of power granted by the Legislature.  


           Environmental justice process at Cal-EPA.    Senate Bill 89 
          (Escutia, Chapter 728, Statutes of 2000) established the Cal-EPA 
          IWG to assist the Secretary with developing an EJ strategy, and 
          the Cal-EPA Advisory Committee on Environmental Justice 
          (Advisory Committee) to assist and advise the IWG in making 
          recommendations to the Secretary on the strategy.
          
          In 2004, Cal-EPA completed an agency-wide strategy (Inter-Agency 
          Environmental Justice Strategy) to identify and address any gaps 
          in existing programs, policies, and activities that may impede 
          the achievement of environmental justice. The strategy is the 
          overarching environmental justice document for the Cal-EPA 
          boards, departments, and office, including the SWRCB and the 
          RWQCBs, follow. 

           Related current legislation  :

          AB 2117 (Gorell) allows ex parte communication with staff and 
          members of the SWRCB or RWQCBs regarding pending storm water 
          waste discharge requirements by affected parties, provided that 
          the discussion is publicly disclosed.  The ex-parte provisions 
          were removed by the author in the Assembly Environmental Safety 
          and Toxic Materials Committee.  Status: held in the Assembly 
          Appropriations Committee.

          AB 2063 (Alejo), allows ex parte communications for the 
          adoption, modification, or rescission of specified types of 
          general permits if the RWQCB or SWRCB member makes an 








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          after-the-fact report of the communication to the board, on the 
          record, at the next hearing.  Status: held in the Senate 
          Environmental Quality Committee.


           Analysis Prepared by  :    Bob Fredenburg/ E.S. & T.M. / (916) 
          319-3965 


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