Bill Text: CA SB415 | 2023-2024 | Regular Session | Amended
Bill Title: Air quality: rules and regulations: socioeconomic impacts assessment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB415 Detail]
Download: California-2023-SB415-Amended.html
|
Amended
IN
Senate
April 10, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 415
| Introduced by Senator Durazo |
February 09, 2023 |
An act to amend Section 40728.5 of, and to add Sections 40728.7 and 40728.9 to, the Health and Safety Code, relating to air quality.
LEGISLATIVE COUNSEL'S DIGEST
SB 415, as amended, Durazo.
Air quality: rules and regulations: socioeconomic impacts assessment.
Existing law requires a local air pollution control district or an air quality management district (local air district) that intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations to perform, except as specified, an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or regulation, as provided. Existing law defines “socioeconomic impacts” to include, among other things, the type of industries or business, including small business, affected by the rule or regulation, the impact of the rule or regulation on employment and the economy of the region affected by the adoption of the rule or regulation, and the range of probable costs, including costs to industry or business, including small business, of the rule or regulation.
This bill would authorize a local air district to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would require a local air district to ensure that a prospective third-party contractor includes in its proposal for the assessment specified information, including, among other things, a conflicts statement and a proposed schedule and budget for the assessment. This bill would expand the definition of “socioeconomic impacts” to include the disproportionate impact, if any, of the proposed adoption, amendment, or repeal of the rule or regulation on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. The bill would require a local air district or the third-party contractor, if no
disproportionate impact is identified, to describe the basis for its conclusion that there is no disproportionate impact. By expanding the definition of “socioeconomic impact” for purposes of
This bill would require a local air district, whenever it intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, to perform an assessment of the socioeconomic impacts of the proposed action on the rule or regulation on families living within the jurisdiction whose annual income is less than $100,000. The bill would change the definition of “socioeconomic impacts” to, among other things, remove from consideration the types of industry and business, other than small business, that is affected, to remove from
consideration the impact of the proposed change on the economy of the region affected, and to include the range of probable costs for families living within the jurisdiction with an annual income of less than $100,000. By creating an income threshold and changing the parameters of a socioeconomic impacts assessment conducted by a local air district, this bill would increase the requirements on local officials, thereby imposing a state-mandated local program.
This bill would additionally require the State Air Resources Board, except as specified, to conduct an assessment of the socioeconomic impacts, as defined,
on families living within the jurisdiction whose annual income is less than $100,000, of a proposed adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, as provided, and similarly authorize the state board to contract with a third party to conduct the required assessment of socioeconomic impacts, or portion thereof, as provided. The bill would specify minimum standards for the assessment of socioeconomic impacts, and would require the state board or a third-party contractor to include in the assessment of socioeconomic impacts, impacts specified information and analysis, including, but not limited to, the disproportionate impacts analysis described above.
including an econometric analysis that includes, among other things, a baseline estimate of the costs on families living within the jurisdiction whose annual income is less than $100,000, as provided. The bill would prohibit the state board from approving an assessment of socioeconomic impacts that fails to meet those requirements.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 40728.5 of the Health and Safety Code is amended to read:40728.5.
(a) Whenever a district intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the district board shall, to the extent data are available, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by a
district pursuant to other provisions of this division, the district board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.
(c) Upon the approval by a majority vote of the district board, a county district is not required to include in its assessment of socioeconomic impacts required pursuant to subdivision (a) the analysis specified in paragraphs (2) and (4) of subdivision (f) for a rule or regulation that only adopts a requirement that is substantially similar to, or is required by, a state or federal statute, regulation, or applicable formal guidance document. Examples of state and federal formal guidance documents include, but are not limited to, federal Control Techniques Guidelines, state and federal reasonably available
control technology determinations, state best available retrofit control technology determinations, and state air toxic control measures.
(d) This section does not apply to a district with a population of less than 500,000 persons.
(e) (1) A district board may contract with a third-party contractor, consistent with applicable state and local laws, rules, and regulations, to conduct a socioeconomic impacts assessment, or portion thereof, and shall require the prospective third-party
contractor to include all of the following in the prospective third-party contractor’s proposal for the assessment:
(A) A conflicts statement that includes both of the following:
(i) A description of all work performed by the prospective third-party contractor in the last five years that potentially relates to or could potentially be directly impacted by the proposed action.
(ii) All financial, personal, or familial relationships of any person employed by the prospective third-party contractor with either of the following:
(I) An employee of the district that holds a designated position listed in Appendix A of Section 95000 of Title 17 of the Code of Regulations.
(II) An executive officer of any business or corporation that could potentially be directly impacted by the proposed action.
(B) A statement of the prospective third-party contractor’s experience and key staff’s expertise in conducting socioeconomic impact studies, or similar studies that involve cost analysis of environmental rules and regulations and their economic and demographic impacts, impacts on families living within the jurisdiction whose annual incomes is less than one hundred thousand dollars ($100,000), that includes both of the following:
(i) A list
of socioeconomic impact studies or similar studies conducted by the prospective third-party contractor in the last five years.
(ii) The curriculum vitae of the team leader and key professional team members whom the prospective third-party contractor proposes to conduct the assessment that includes the relevant expertise, education, and certifications, if any, of the proposed team leader and key professional team members.
(C) A proposed schedule for the assessment that includes the date by which the prospective third-party contractor will provide a draft assessment to the district board for review.
(D) A proposed budget for the assessment.
(2) The district board may
disqualify a prospective third-party contractor if the district board determines either of the following:
(A) The prospective third-party contractor’s conflicts statement submitted pursuant to subparagraph (A) of paragraph (1) reveals a material conflict of interest that violates Section 18730 of Title 2 of the California Code of Regulations.
(B) The experience and qualifications of the prospective third-party contractor or its employees identified pursuant to subparagraph (B) of paragraph (1) are insufficient to conduct the assessment.
(f) For purposes of this chapter,
section, “socioeconomic impacts” means all of the following:
(1) The types of industry and business, including small business,
small business affected by the rule or regulation proposed to be adopted, amended, or repealed.
(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action. employment.
(3) The range of probable costs, including costs to industry and business, including small business, of the
rule or regulation proposed to be adopted, amended, or repealed. costs for families living within the jurisdiction whose annual income is less than one hundred thousand dollars ($100,000).
(4) The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.
(5) The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.
(6) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
(7)The disproportionate impact, if any, of the proposed action on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. If no disproportionate impact is identified, the district board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
SEC. 2.
Section 40728.7 is added to the Health and Safety Code, to read:40728.7.
(a) Whenever the state board intends to propose the adoption, amendment, or repeal of a rule or regulation that will significantly affect air quality or emissions limitations, the state board shall, to the extent data are available and, consistent with Section 40728.9, perform an assessment of the socioeconomic impacts of the proposed adoption, amendment, or repeal of the rule or(b) To the extent that information on the socioeconomic impacts of the proposed adoption, amendment, or repeal of a rule or regulation is required to be developed by the state board pursuant to other provisions of this division, the state board may use or reference that information in the assessment of socioeconomic impacts required pursuant to subdivision (a) to comply with the requirements of this section.
(c) The state board may contract with a third party, consistent with Section 40728.9 and with applicable state and local laws, rules, and regulations, to conduct the assessment of socioeconomic impacts, or a portion thereof, required pursuant to subdivision (a). Nothing in this section,
however, requires the state board to contract with a third party to conduct the assessment.
(d) This section does not apply to either of the following:
(1) The proposed adoption, amendment, or repeal of a rule or regulation that results in a less restrictive emissions limit if the proposed action does not interfere with the state board’s adopted plan to attain ambient air quality standards or does not result in any significant increase in emissions.
(2) The proposed adoption, amendment, or repeal by the state board of a rule or regulation that has an economic impact of less than ten million dollars ($10,000,000).
(e) For purposes of this chapter,
section, “socioeconomic impacts” means all of the following:
(1) The type of industry and business, including small business, Small business affected by the rule or regulation proposed to be adopted, amended, or repealed.
(2) The impact of the proposed adoption, amendment, or repeal of the rule or regulation on employment and the economy of the region affected by the proposed action. employment.
(3) The range of probable costs, including costs to industry and business, including small business, of the rule or regulation proposed to be adopted, amended, or repealed.
costs for families living within the jurisdiction whose annual income is less than one hundred thousand dollars ($100,000).
(4)The availability and cost-effectiveness of alternatives to the rule or regulation proposed to be adopted, amended, or repealed.
(5)The emissions reduction potential of the rule or regulation proposed to be adopted, amended, or repealed.
(6)
(4) The necessity of adopting, amending, or repealing the rule or regulation to attain state and federal ambient air standards pursuant to Chapter 10 (commencing with Section 40910).
SEC. 3.
Section 40728.9 is added to the Health and Safety Code, to read:40728.9.
(a) For purposes of this section, the following terms have the following meanings:(1) “Assessment” means the assessment of socioeconomic impacts of a proposed adoption, amendment, or repeal of a rule or regulation required to be conducted by the state board pursuant to subdivision (a) of Section 40728.7.
(2) “Proposed action” means the proposed adoption, amendment, or repeal of a rule or regulation being contemplated by the state board.
(3) “Third-party contractor” means a third party with whom the state board contracts, consistent with
state and local laws, rules, and regulations, to conduct an assessment, or portion thereof.
(b) (1) This section outlines the minimum standards applicable to the state board when it is required to conduct an assessment of socioeconomic impacts required pursuant to subdivision (a) of Section 40728.7. Nothing in this section prohibits the state board from creating or imposing additional requirements on a third-party contractor relating to an assessment.
(2) The state board shall not approve an assessment pursuant to Section 40728.7 if the assessment does not comply with the requirements of this section.
(3) Nothing in this section shall be construed to supersede, modify, or otherwise affect, or exempt
the state board from, applicable state or local laws, rules, or regulations relating to the ability or authority of the state board to contract with an outside third party to conduct the assessment, including, but not limited to, the State Contract Act (Chapter 1 (commencing with Section 10100) of Part 2 of Division 2 of the Public Contract Code).
(c) (1) A state board may contract with a third-party contractor, consistent with applicable state laws, rules, and regulations, to conduct an assessment, or portion thereof, and shall require the prospective third-party contractor to include all of the following in the prospective third-party contractor’s proposal for the assessment:
(A) A conflicts statement that includes both of the following:
(i) A description of all work performed by the prospective third-party contractor in the last five years that potentially relates to or could potentially be directly impacted by the proposed action.
(ii) All financial, personal, or familial relationships of any person employed by the prospective third-party contractor with either of the following:
(I) An employee of the state board that holds a designated position listed in Appendix A of Section 95000 of Title 17 of the Code of Regulations.
(II) An executive officer of any business or corporation that could potentially be directly impacted by the proposed action.
(B) A statement of the prospective third-party contractor’s experience and key staff’s expertise in conducting socioeconomic impact studies, or similar studies that involve cost analysis of environmental rules and regulations and their economic and demographic impacts, impacts on families living within the jurisdiction whose annual income is less than one hundred thousand dollars ($100,000), that includes both of the following:
(i) A list of socioeconomic impact studies or similar studies conducted by the prospective third-party contractor in the last five years.
(ii) The curriculum vitae of the team leader and key
professional team members whom the prospective third-party contractor proposes to conduct the assessment that includes the relevant expertise, education, and certifications, if any, of the proposed team leader and key professional team members.
(C) A proposed schedule for the assessment that includes the date by which the prospective third-party contractor will provide a draft assessment to the state board for review.
(D) A proposed budget for the assessment.
(2) The state board may disqualify a prospective third-party contractor if the state board determines either of the following:
(A) The prospective third-party contractor’s conflicts statement submitted
pursuant to subparagraph (A) of paragraph (1) reveals a material conflict of interest that violates Section 18730 of Title 2 of the California Code of Regulations.
(B) The experience and qualifications of the prospective third-party contractor or its employees identified pursuant to subparagraph (B) of paragraph (1) are insufficient to conduct the assessment.
(d) The state board shall include, or require a third-party contractor with whom the state board contracts to include, at a minimum, all of the following in the assessment:
(1) All of the information and analysis required pursuant to
subdivision (e) of Section 40728.7.
(2) (A) A description of the specific methodologies employed by the state board or the third-party contractor to conduct the assessment.
(B) The state board and the third-party contractor shall comply with the Department of Finance’s methodological standards for state agencies outlined in Chapter 1 (commencing with Section 2000) of Division 3 of Title 1 of the California Code of Regulations in conducting the assessment.
(3)An analysis of the disproportionate impact, if any, of the proposed action on Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, gay, lesbian, bisexual, and transgender individuals and women. If no disproportionate impact is identified, the state board or the third-party contractor shall describe the basis for its conclusion that there is no disproportionate impact.
(4)
(3) An econometric analysis that includes all of the following:
(A) A baseline estimate of the costs, revenues, income, and other relevant economic factors for businesses and consumers affected by the proposed action. costs on families living within the jurisdiction whose annual income is less than one hundred thousand dollars
($100,000). The baseline estimate shall take into account economic and regulatory factors based on data available to the state board.
(B) A detailed description of the assumptions supporting the baseline estimate required pursuant to subparagraph (A), and which assumptions shall be based on the conditions specific to the region affected by the proposed action.
(C) An estimate of the impacts of the proposed action on the baseline estimate developed pursuant to subparagraph (A).
(D)An estimate of the impact that the proposed action will have on state revenues.
(5)
(4) A citation to each data source relied on in the assessment so that any person can view the original data source.
(6)
(5) Identification of the key assumptions and inputs entered into any model created or used for the assessment, including, but not limited to, assumptions regarding the responsiveness of labor supply to changes in wage rates and the responsiveness of consumer spending to changes in product or service prices.
(7)
(6) (A) Except as provided in subparagraph (B), a detailed description of any manipulation, calculation, interpolation, or extrapolation of original source data so that any person can reproduce the same estimates presented in the assessment.
(B) Complex calculations using generally accepted and publicly available input-output econometric models, such as the Regional Input-Output Modeling System (RIMS II) published by the Bureau of Economic Analysis of the United States Department of Commerce and the proprietary Economic Impact Analysis for Planning (IMPLAN), are exempt from the requirement in subparagraph (A) if the state board or the third-party contractor documents
all inputs.
(e) In developing the estimate of the impacts of the proposed actions on baseline estimates pursuant to subparagraph (C) of paragraph (4) (3) of subdivision (d), the state board or the third-party contractor shall do all of the following:
(1) Identify the direct cost of the proposed action on the entities impacted by the proposed action,
including separately identifying the costs for permitting, planning, purchasing, installation, and ongoing operations associated with any major investment needed to comply with the proposed action. families living within the jurisdiction whose annual income is less than one hundred thousand dollars ($100,000).
(2) Identify the basis for each component of the estimate.
(3) Consider input from entities affected by the proposed action in developing the estimate.
(4) Ensure that the estimate reflects statewide market conditions.
(5) Include the basis for the
assumptions used for the estimate, develop a reasonable range surrounding the estimate, and describe in detail the impacts of the range on the costs and benefits of the proposed action.
(6) Analyze the likely behavioral changes by affected entities
and individuals in response to the proposed action, including, but not limited to, the extent to which costs or benefits are retained by the affected entities or are passed on to others, including customers and employees.
(7) Take into account the types of occupations that would be impacted by job cutbacks or increases associated with the proposed action.
(8) Estimate direct, indirect, and induced impacts on consumers by income level. families living within the jurisdiction whose annual income is less than one hundred thousand dollars ($100,000).
(f) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
