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MINUTES - 06221993 - H.A
H.A THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on June 22, 1993 by the following vote: AYES: NOES: (See below for vote) ABSENT: ABSTAIN: SUBJECT: Presentation by the Contra Costa Industrial Coalition on Economic Development James M. Cleary, President of the Contra Costa Industrial Coalition and Chief Executive Officer of Tosco Refining Company, spoke on the goal of the Coalition to build productive partnerships to support the Board of Supervisors' 1993 theme, ContraCostaWorks. He presented the following key proposals for Board consideration: * Adopt, as Board policy, Supervisors Powers and McPeak's proposal to encourage business growth and development in Contra Costa County. * Establish a Board appointed, 9-member Advisory Committee on Industry and refer County Ordinance 86-100 (Land Use) to the committee. * Endorse the 5 Point Plan of CART (Californians Against Red Tape) . * Support SB 1113 to prioritize capital spending necessary for compliance with the proposed Bay Area Air Quality Management District's regulation. (The State Assembly's Natural Resources Committee is hearing SB 1113 on July 12, 1993 . ) Val Alexeeff, Director, Growth Management and Economic Development Agency (GMEDA) , referred to two committees proposed and accepted in concept by the Board: 1) The ContraCostaWorks Council that will include Supervisors Bishop and Smith and have a total membership of 15 with the purpose of responding to criteria and interests similar to that presented by Mr. Cleary; 2) The second committee that will include Supervisors Powers and McPeak and have a membership of nine with the purpose of dealing with regulations at various levels (local, state, and federal) . He also called attention to the Economic Summits the Board has planned: the Unified Summit on September 30, 1993 , and the individual meetings the districts are in the process of scheduling. Supervisor Powers noted the similarity between the Industrial Committee that he and Supervisor McPeak have agreed to serve on and the advisory committee proposed by the Coalition. He proposed that this be interpreted as one industrial advisory committee. Therefore, Supervisor Powers recommended that the Board formally establish the 9-member Industrial Advisory Committee with he and Supervisor McPeak appointed as the Board's representatives to that Committee. The Board found that the need to take action on the proposals presented by the Coalition and under discussion today arose after the Board Agenda was posted on Friday (June 18, 1993) , and therefore voted as follows to add to the agenda: Ayes: Supervisors Powers, Smith, Bishop, McPeak, Torlakson Noes: None Abstain: None The Chair then called for the vote on the recommen- dation of Supervisor Powers for the establishment of the 9-member Industrial Advisory Committee with Supervisors Powers and McPeak appointed as members. The vote was as follows: Ayes: Supervisors Powers, Smith, McPeak, Torlakson Noes: None Abstain: Supervisor Bishop Therefore, it is so ORDERED. Following discussion, the Board agreed to vote on the remaining proposals of the Coalition with some modifications. Therefore, IT IS BY THE BOARD ORDERED that the following actions are APPROVED: 1. Adopted as Board Policy the September 22, 1992, Proposal to encourage business growth and development in Contra Costa County. 2 . Deferred to July 13, 1993 , consideration of the CART Plan, and requested the Director, Growth Management and Economic Development Agency, to include a report from the California Council on Partnerships, "Cutting Through the Red Tape. " 3 . Adopted a position in support of SB 1113 and directed staff to provide on July 13 , 1993, a status report on the proposed legislation with recommendations for further amendments that may be required. 4 . Referred to the newly established Industrial Advisory Committee County Ordinance 86-100. The vote on the motion was as follows: Ayes: Supervisors Powers, Smith, McPeak, Torlakson Noes: None Abstain: Supervisor Bishop Supervisor Torlakson requested staff to also include on the July 13 , 1993 , Board Agenda the membership for the ContraCostaWorks Council (Supervisors Bishop and Smith) . I hereby certify that this Is a true and correct Copy of an action taken and entered on the minutes of the cc: Director, GMEDA Board of Supervisors on the date shown. ATTESTED: � a a y.,J� _ County Administrator PHIL B TCHELOR,Clerk of the a/!Board of Supervisors and County Administrator By _ ,.Q. a.._ Depute CONTRA COSTA INDUSTRIAL COALITION Board of Supervisors Presentation Tuesday, June 22, 1993 In follow-up to the January 12, 1993, presentation to the Board on behalf of the 40,000 men and women of the industrial community in Contra Costa County. The Industrial Coalition proposes to expand our dialogue and build productive partnerships which will support the Board's 1993 theme, CONTRA COSTA WORKS. KEY PROPOSALS: ► Adopt, as Board Policy, Supervisors Powers and McPeak's September, 22, 1992, Proposal to Encourage Business Growth and Development in Contra Costa County. ► blish Board appointed, 9 member, Advisory Committee on Industry I 'fifer ounty Ordin00 L nd Use) to the committee. ► Endorse the 5 Point Plan of CART (Californians Against Red Tape),,..... Supp 111; writing to prior capital spending necessary for ,�mpliancti the proposed BAAQMD i OX egulation. Among organizations in support of these proposals are: BALIA (Bay Area League of Industrial Associations) CICC (Chemical Industry Council of California) CMA (California Manufacturers Association) / Contra Costa Council Contra Costa County Chambers of Commerce `�7 V Council of Industries, West Contra Costa 1 Industrial Association of Contra Costa County ' WSPA (Western States Petroleum Association) Presented by James M. Cleary, President.and Chief Executive Officer of Tosco Refining Company. rn1an� caY A � al Red Tape r ......... ------ atr� 3 j 1� nViYo��eflt Pr Qtect the E Save Jobs f Cit Red Take f Sa. e 1 _ i i I r ■ � i i r i i i I ■ I I i 0 I I hA$k,.}kat,.+:v.+p't$d-5•',q �"L fi' S:{ .t��ah•,z.�: (. 3i:.f�, ::�;UR�:=.o.;,:2 z�:��•�;�Y�...fi�<h"�a-'•f��,�'��,�,tx,�;,e. %arY�a Ya:ta:>3:>.;"'�s�•¢"+:{':<�`r.n'?y"}�•'Y„�rw��•t ;',,':N' v.fi' tth l�y.r:�k'• .ty`3ti.•'`.;a,v, �'''d3'3��'-T,�c k4. • K"ni"+}•`".`'�r,.�'vr;�6w°'�53.'. 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I .;�;��ka�:""'�...`..',7..:.LkS'.%Cr:::.:•�o='hv'i�, 2�-:. 1 1 I C I � • i I I , I I..'T1jj111j!�lllI i ICut Rei Tape SaveProtectohs the I f Environ ment i CD p, co O s. o 0 tro o CP 0 t3 (n C3 0 Z 0 CD W o 0 =3 c CL 0 3 CD =3 CD =3 0 w (n _0N. CD CD CD Cr 0 Cl) 0 cn CD =3 0 0 =3 CL 0 (a 0 0 -60 r-+ 0 3 0 CD I< _0 0 3 to cr 3 (n 3 w mq -< CD CLcD 0 0-0 cncome (n CD 0 "4% Su — 0 0 - rCD.+ Lcn CF- On co r-jr �@ * 0 0 r-0) 0 U) 3 N ® (i CD U) ca 0 (D -0 co CD > CD CD _0to <:3 =r =t =3 .0) (D v) m > vii0 P co cn CD OR m cn >=3 cn 3 _0 3 CF CD CD m cn CD 3 o SD a 3 CA)m A. cr CD a m I 0 < 3 m 0 W W 0 0 E co o .0 -�` CL C= r-+ cn CD (n CD x 0 r 0 0 r"+ 3-a CD m < 00 cro (n 00 a CALIFORNIANS AGAINST RED TAPE 5-Point Plan to but Red Tape, Save Jobs and Protect the Environment All Californians want a clean environment cmd good jobs. To achieve these goals, we must reshape a system of regulatory laws that has become unworkable and costly. 1. Eliminate RegglatoKy Duplication and Overlav That Waste Taxpayer Dollars, Cost California Jobs and Add Nothing to Environmental Protection. Problem: Hundreds of local,state,and federal agencies regulate businesses in California.More than 70 agencies have environmen- tal authority to regulate business in Los Angeles County alone,according to the Los Angeles 2000 Committee. In addition, California's regulations often differ from federal requirements. All of this adds up to a confusing maze that California employers,cities and counties are left to navigate on their own. The result?Wasted taxpayer dollars,fewer jobs for Californians and exasperated employers looking for a way out. Solution: •Identify and Eliminate Bureaucratic Duplication. Identify specific areas of overlap and duplication in federal, state and local regulatory programs and propose legislation that will eliminate the bureaucratic repetition. 2. Ston the Explosive Increases in Fees. Ensure that Existing Fees Represent the Actual Cost of Reaulation. Rather Than the Cost of Keeping the Bureaucracy Alive., Problem: Many California agencies are self-funded,relying entirely on the foes and fines they can collect for their survival. Allowing fines to be used to support a regulatory agency budget encourages bureaucracies to put a premium on the number of fines imposed,often at the expense of other priorities.Too often,fee hikes represent the desire to protect or expand agency budgets,not the actual cost of regulation. CALIFORNIANS AGAINST RED TAPE Cut Red Tape• Save Jobs•Protect the Environment P.O.Box 1736,Sacramento,CA 95812 •(916)444-6670 o FAX(916)444-6685 111 Anza Blvd.,Suite 406,Burlingame,CA,94010•(415)340-0470•FAX(415)340.1740 11444 W.Olympic Blvd.,Suite 1018,Los Angeles,CA 90064•(310)445-8885•(FAX)310-445-8870 4 This is like making a police department budget dependent on the amount of traffic tickets issued. Police departments should spend their time investigating serious crimes.Regulatory agencies should spend their time improving environmen- tal quality. This built-in incentive to increase the fines collected along with a lack of budget oversight has led to an alarming escala- tion in the size of fees and agency budgets. Solution: Mahe Fees Deflect Costs of Regulation. Fees must be reviewed to assure they reflect accurate costs. A moratorium should be imposed on fee increases until such a review is completed. •Redirect Penalty and Fine Revenues Away from Operating Budgets. Fines and penalties should be redirected from operating budgets to specific funds, such as a fund to promote quality management training, to finance emergency response, for superfund cleanups or pollution prevention. •Establish Budget Accountability and Prioritize Programs. Funding of state and local agencies must be based on a budget process that prioritizes programs and establishes accountability for the money they spend. 3. Promote a More Efficient Permit and Regulatory System. Eliminate the Hostile Attitude Many A gencies Have Toward Employers. Problem: Many bureaucrats who work for regulatory and permitting agencies look upon employers as"the enemy". The ADEPT(Assembly Democratic Economic Prosperity Team)report cited the example of the"apparent zeal of many environmental inspectors who appear to be more interim in collecting fines than in improving environmental condi- tions." Solution: •Establish Quality Management Programs. All state and local regulatory agencies should participate in quality management programs that promote a more efficient permit and regulatory system, focus priorities and help improve the hostile attitude agencies have toward employers. These programs should be funded through existing agency budgets. Californian's Against Red Tape—Page 2 1 4. Open the Regulatory Process to Ensure Policies are Based on the Best Scientific Knowledge Available, Marginial Costs As Well As Benefits Are Considered and Employers Are Given Some Flexibility in Meeting Reaulatory Goals. Problem: A Wider Range of Scientific Input Should be Utilized to Dever Regulations The scientific support for regulations isnot always Acer-reviewed.Too often,the input of industry and other outside scientists is discouraged or ignored and the work of state scientists is questioned by industry and academic scientists. Result:Regulations are adopted with limited scientific input. The Marginal Costs and Benefits are Not Evaluated Many of California's regulations are developed and implemented with little consideration given to the marginal costs and benefits.In some cases as much as 80%of the goal could be achieved for a fraction of the cost while saving jobs at the same time. Inflexible Regulations Stifle Innovative and Cost Effective Solutions California's regulations are based on"command-and-control"principles rather than letting employers choose the most cost effective way to meet the environmental goals.Providing this flexibility would save jobs and protect the environment. Solution; • Open Regulatory Process to Broader Scientific Input. CaUEPA should ops the regulatory decision-malting process to the broader scientific commurrity, taking advantage of the opportunity for comments and peer review by scientists outside government. •Avoid Duplicating Federal Scientific Reviews. Cal/EPA should avoid duplicating the peer-reviewed work of the federal EPA and focus the work of state scientists on chemicals and exposures common to California and for which there are no federal standards or guidelines. Consider Marginal Costs and Benefits. The Legislature should require agencies to evaluate the marginal costs and benefits of all major existing and proposed environmental regulations, forcing the consideration of alternatives that would achieve maximum benefit at minimum cost. The marginal costs and benefits of state and local rules that differ from federal regulations should be analyzed as well. • Give Jobs and the Economy a Voice in the Process. The newly-created Trade and Commerce Agency should be given the express mission as the voice of California's employers. It should work to ensure that economic impacts and jobs are fairly and accurately considered in the regulatory process. Speed the Process through Privatization. The Legislature should authorize regulatory agencies to privatize certain functions. This could speed up the permitting and enforcement process without increasing the cost to employers or taxpayers. Californian's Against Red Tape—Page 3 9 ' i 5. Streamline the CEQA and Environmental Permit Processes to Meet Their Orizinal Goals Without Causing Unnecessary Cost or Delay to Legitim".e- Prpjeets. Problem: The original goal of CEQA(California Environmental Quality Act)was to ensure the environmental impacts of projects would be considered.The reality has become a costly,time-consuming,cumbersome process that too often stops legiti- mate projects while doing little to advance CEQA's original goal. CEQA is administered by multiple agencies and,according to the Council on Competitiveness,there is no limit on the number or type of reviews that a local jurisdiction may rewire. Permitting times of two or more yews are not uncommon.The entire commercial life span of many of today's manufac- tured products,such as computer chips,is but one or two years. California manufacturers cannot effectively compete under these circumstances. Solution: •Ensure that Compliance with CEQA Does Not Require Duplicate Work Already Completed at Other Levels in the Process. The Legislature.must revise CEQA policies to reflect that it is just one part of the federal- state-local planning process. Utilize Less Complex EIR.s. The Legislature should streamline CEQA by emphasizing the use of focused, less complex EIRs (Environmental Impact Reports). •Make the CEQA Process More Clear and Certain. The Legislature should clarify CEQA litigation procedures and provide for better up-front notice to the public with the goal of helping prevent abuses of the CEQA process that could result in killing legitimate projects. •Focus Regulatory Efforts on Projects that Need the Most Review. Environmental compliance projects should be exempt or relieved of CEQA constraints. Also, simple permit or lease renewals should not trigger CEQA review unless there are truly significant changes. •Standardize the Permit Process. Cal/EPA needs to standardize the necessary steps to take when applying for an environ- mental permit. If an employer completes all the required steps, an agency should not be allowed to deny that application on the basis of"incomplete information". In addition,realistic timetables for review of applications should be established and monitored. •Relieve the Paperwork Burden on Activities with Minimal Environmental Impact. Cal/EPA should provide a"low-bureaucracy" alternative to the full permit process for industries or regulated activities that have little or no environmental impact. This would seed job creation and reduce the load on an already overburdened permit process. Californian's Against Red Tape--Page� 4!7/93 i Presented by Californians Against Red Tape COMPANY: Pro-Line Paint Company (Paint Manufacturers, Coating Engineers.) ADDRESS: 2646 Main Street Sin Diego, CA 92113-3697 PHONE: (619) 231-2313 COMPANY CONTACT: Ernest Soderick Vice President-Operations/Chief Chemist Exorbitant Fee Increases In six years, the San Diego Air Pollution Control District (SDAPCD) fees for annual permits to operate paint-manufacturing machinery increased approxi- mately 2,700 percent! 1985 - 5 permits @ $ 32 = $ 160 1986 - 5 permits @ $ 70 = $ 350 1987 - 5 permits @ $145 = $ 725 1988 - 5 permits @ $463 = $2,315 1989 - 5 permits @ $470 = $2,350 1990 - 5 permits @ $867 = $4,335 1991 - 5 permits @ $922 = $4,610 In one year, the fee charged this company by the SDAPCD for handling and monitoring for an "Emissions Inventory Report of Toxic Chemicals", acting on AB 2588, rocketed nearly 500 percents In 1991, the fee was $340. It was $2,000 in 1392. Hostile.Attitudes A SDAPCD inspector, conducting a review in 1990, saw sone-pint can con- t ainingtwo epoxy components mixed on a counter in the Quality Control Labora- tory. It was uncovered. Pro-Line technicians were running tests to determine the pot life of the two components after being mixed in the field. The test required the container to be uncovered. Nevertheless, the inspector cited Pro-Line for an "open container". (continued) Pro-Line Page 2 The inspector continued to the tinting department and saw an open one- gallon container under an empty tinting canister. The tinting technician had left it to walk a few yards to get additional tinting material to refill the canister. The circumstances did not impress the inspector. He cited Pro-Line for "open con- tainer left unattended." Pro-Line was fined $700 for those "violations". In 1969, Pro-Line constructed apaint-storage building on Boston Avenue. In 1977, the company added another building nem to it. Both were for the de- clared purpose of storing paint and flammable liquids and appropriate building permits were issued and inspections made. In 1983, the San Diego Fire Department ordered sprinkler systems in these warehouses and containment dikes built around the buildings. The company complied. Periodic Fire Department inspections were made during the past 10 years and never was any mention made of the structures being in non-compli- ance. In 1992, after an annual Fire Department inspection, Pro-Line was cited for storing hazardous material in non-complying buildings which should be of H-3 a ("Hazardous Materials, Grade 3) construction. Pro-Line officials say: "The cost of converting these warehouses to H-3 buil gs now would be financially devas- tating to our company." In 1991, Pro-Line applied to the California-Food and Agriculture Depart- ment to register its marine anti-fouling paint, "Product No. 1088-C, Colors." The paint is made in black, blue and red. "We submitted one application, noting it was for "colors" because all ingredients are exactly the same except for an tiny bit of color in each." The paint was registered, but the nem year, Food and Ag officials said the registration was for the red, only; the company should have filed three applications —one for each color. And then fined Pro-Line $45,000 for the "violation." Company officials, outraged, indicated they would appeal under the process provided in the registration law. They said Food and Ag officials threatened that, if they appealed, the $45,000 fine might increase to $110,000. The small firm decided to pay the $45,000 and forget the appeal. 000 Presented by Californians Against Red Tape (CARS COMPANY: Albert Paper Company (Wholesaler of paper products and janitorial supplies.) ADDRESS: Post Office Box 8630 Stockton, California 95208 PHONE: (209) 466-7931 COMPANY CONTACT: R. A. Schmitz, Board Chairman Exorbitant Fees and Costs This small business firm, with about 30 employees, is required by the San Joaquin County Office of Emergency Services to submit a Hazardous Materials Management Plan and inventory annually. Fee: $420. Preparation costs, in- volving time of chairman, one upper-level executive and four mid-management staffers plus clerical support: $1,000. Hostile Attitudes The company is required to report "maximum" and "average" inventories that will exist for the coming year. Chairman R. A. Schmitz declares: "One must be God Almighty to be able to do that accurately!" The regulation also requires that WHENEVER there's a change in the inventory, a revised elan must be submitted. Silly-but-sad note: Because state law exempts all retail establishments, many large supermarkets carry larger inventories of household bleach, ammonia and--in those with swimming pool supplies--muriatic acid and more highly con- centrated chlorine than does Albert Company. CAL/OSHA requires Albert and similar firms to develop formal, written programs, and conduct periodic (and documented) safety meetings for all work- ers. When Schmitz asked what instructions should be given his handful of office employees, he said CAL/OSHA responded with this: (continued) Albert Paper Company J Page 2 1. Be careful in closing your desk drawer so you don't pinch your fingers. 2. Don't leave a file drawer open; someone may run into it. 3. Be careful you don't fall off your chair and hurt yourself. Overlaps and Duplications State law requires costly and bothersome inventories, plans and reports from wholesalers, regardless of the fact they may stock less and weaker hazard- ous materials than many retail stores that are exempt from such requirements. However, federal OSHA regulations do not require hazardous chemical reports for: • Any substance to the extent that it is used for personal or house- hold purposes, or • Any substance packaged in a similaz manner and present in the same concentration as the substance when packaged for use by the general public, whether or not it is intended for distribution to the general public or used for the same purpose. Albert and other such firms insist California law should be amended to be the same as the federal. 000 Presented by Californians Against Red Tape COMPANY: Kirkhill Inc. (Manufacturer and distributor of plumbing supplies.) ADDRESS: 12021 Woodruff Avenue P.O. Box 7012 Downey, California 90241-0030 PHONE: (310) 803-3713 COMPANY CONTACT: Gary A. Riopelle President and CEO Hostile Attitudes: Kirkhill employs 160 people in California and is owned by its employees through astock-ownership plan. The company, in 1989, sought closure permits from the Los Angeles County Department of Public Works, Waste Management Division, for four rarely-used underground fuel storage tanks. Over the next three years, Kirkhill spent more than $150,000 on repeated borings, soil samples, soil treatment, removal of the tanks, and reports to the county, even though the soil had never been contaminated according to state and federal guidelines. Unlike soil contamination guidelines for California and counties like Orange and Ventura which are quantifiable, the Los Angeles County Guidelines for Report Submittal. Underground Storage Tank Local Oversight Program states, "All final maximum acceptable levels of contamination will be determined at the discretion of the Local Oversight Program Project Engineer, regardless of levels determined by any other source". Kirkhill was required to submit at least five reports to the Waste Manage- ment Division and each time was told different (and previously unrequested) information was needed. (continued) Kirkhill Inc. Page 2 The division billed Kirkhill for the County's Local Oversight Program Project Engineer's time -- a bill that amounted to $4,000 to $5,000 in 1991 (the 1992 bill hasn't been received yet). Finally, Kirkhill turned to Supervisor Deane Dana's office for help and obtained its closure permits in August of 1992. They were told by the project engineer that they would have never gotten clearance without the supervisor's assistance. 000 Presented by Californians Against Red Tape (CARI) COMPANY: San Joaquin River Water Users Co. (Mon-profitcorporation operating irrigation pumps for about 10 farms near Vernalis.) ADDRESS: c/o Wilson, Hoslett &Whitridge,Attorneys at law 311 East Main Street - Suite 504 Stockton, California 95202 PHONE: (209) 943-5551 COMPANY CONTACT: David P.Whitridge Bureaucratic Crossfire Every few years—for the past 60 or more—this small company and its predecessors have cleaned out silt from a little oxbow slough off the San Joaquin River to maintain flow capacity for their two pumps (total capacity: approx. 90 horsepower). On May 4, 1992, the company applied to the U.S. Army Corps of Engineers for a dredging permit to continue their cleanout routine. The corps then received comments from numerous regional, state and fed- eral agencies. State Fish and Game wants to negotiate for"a streambed alteration agree- ment" but does not demand installation of a fish screen due to its possible liabil- ity for installing or maintaining such a screen. Federal fisheries officials, having no such liability, all commented that the pumps, at least, and possibly the entire slough, should be screened to mitigate for the dredging. They also want the dredge spoils placed in an area the company says is impossible to reach if the dredging is performed in the slough—which is where it normally is done. This area," says Company Spokesman Whitridge, "is far outside the area in which Sacramento winter-run Chinook salmon could be present and, thus, the Marine Fisheries Service admits there are no endangered or threatened species within its jurisdiction in this area—but continues to demand the screens, none- theless." (continued) S. J. River Water Users � Page 2 After participating in endless meetings, conducting site inspections for various agency personnel and running up engineering and legal fees in excess of $10,000, the frustrated little band of farmers suggested to all the official agencies that a testing program be conducted to determine the effect of the pumps, if any. Catch 22 But the water company didn't receive a response from any of the agencies. And the Corps of Engineers declared it would"terminate the processing" of the dredging application "due to this delay". The company responded by requesting the corps to require responses to the water users' proposal. But it has received no response from the corps to that request. The company has now, through negotiations with the State Department of Water Resources, obtained a state commitment for the DWR and the State De- partment of Fish and Game to test the pump intakes for effects on fish while, at the same time, pointing out that failure to maintain the channel inlet would eventually result in the loss of the waterway as a fishery and riparian habitat. 000 Presented by Californians Against Red Tape COMPANY: H I. Tullis, Inc. (Supplier of gas products, including instrument calibration mixtures.) ADDRESS: 2677 Signal Parkway Long Beach, California 90806 PHONE: (310) 427-0099 COMPANY CONTACT: Richard Falk Manager, Specialty Gases Ignoring Best Scienti fie Knowledge Available: Tullis ships its high pressure instrument-calibration gas mixtures in alumi- num cylinders. South. Coast Air Quality Management District rules require many of these these cylinders to be re-analyzed and re-certified every six months. In some cases, a customer has not used all of a cylinder's product within six months. Nevertheless, the partially-used cylinders must be returned for re- certification. This causes needless waste and inconvenience -- and additional costs equal to about a third of the original cost of the product. Federal standards for re-certification of these gas mixtures are far different. Until January, 1993 the EPA required re-certification of compressed gas shipped in stainless steel or aluminum cylinders every 18 months. However, based on the recommendation of the National Institute of Science and Technology -- which studied the improved technology of compressed gas mixing and storage -- the EPA changed the re-certification requirement to every 36 months for these gas mixtures. In other words, an aluminum cylinder, which requires a single certification during a 36-month period under federal regulation, requires six certifications to comply with local SCAQNID rules. 000 Y j Presented by Californians Against Red Tape (CARS COMPANY: Spreckels Sugar Company, Inc. (Sugar processor.) ADDRESS: 40600 County Road 18C Post Office Box 2240 Woodland, California 96778 PHONE: (916) 668-2517 COMPANY CONTACT: Larry Bailey, Manager, Safety and Environment Exorbitant Fee Increases Despite no net increase in their emissions , the air permit fees paid to the Yolo/Solano Air Pollution Control district for Spreckels' Woodland factory in- creased from $3,569 in 1992 to $32,767 in 1993, an 818 percent increase in one Year! 000 Californians 1viav410 199 Ag a in s t Red Tape Here are some of the key bills that, in their present form, CART is supporting: SB 1082 (Calderon) AB 969 (Jones) AB.1144 (Goldsmith) AB 1520 (Aguiar) American Electronics Association AB MI (Umberg) Associated General Contractors of California Automobile Club of Southern California SB 428 ('Thompson) Building Industry Association of Southern California California Aerospace Alliance SB 659 (Deddeh) California Building Industry Association California Business Properties Association California Cattlemen's Association SB 660 (Deddeh) California Chamber of Commerce California Circuits Association California Council for Environmental SB 919 (Dills) and Economic Balance California Forestry Association California League of Food Processors SB 1031 CMompson)California Manufactured Housing f 9 Institute California Manufacturers Association SB-1185 (Bergeson)California Newspaper Publishers Association California Trucking Association Chemical Industry Council of California Economic Development Corporation of Los Angeles County Federation of Minority Business Associations Forest Resources Council Inland Empire Economic Partnership Los Angeles County Hotel/Motel Group National Federation of Independent Business Small Business Committee- California Chamber of Commerce Southern California Business Association Ventura County Economic Development Association Western Growers Association Western States Petroleum Association P.O. Box 1736 ❑ 11444 West Olympic Blvd., Suite 1018 ❑ 111 Anzz Blvd., Suite 406 Sacramento, CA 95812-1736 Los Angeles, CA 90064 Burlingame,CA 94010 (916)444-6670 (310)445-8885 (415)340-0470 FAX(916)444-6685 FAX(310)445-8870 FAX(415)340-1740 Cut Red Tape Savejobs P r SUM.. NIARY OF LEGISLATION SB 1082 (Calderon) • Requires state and local regulatory and permitting agencies to institute quality management programs. • Breaks the dependency of many regulatory agencies on fines and penalties to support operating budgets. Directs otherwise uncommitted revenues from fines and penalties to anewly-created special fund to promote quality in government. • Imposes a moratorium on new or increased fees until regulatory agencies can demonstrate they have quality management programs in place and can meet certain other conditions as to need and accountability. • Opens the risk assessment and scientific review processes to the scientific input from the public and industry. • Requires the Trade and Commerce Agency to represent the needs of California business, creates in that agency an Office of Ombudsman to assist business, and requires the agency to review the economic impacts of regulations identified by the Cal/EPA agencies in rule-making. AB 969 (Jones) • Requires that when a state or local agency proposes to adopt or amend an administrative regulation, the agency shall provide a statement on the impact of the proposed regulation on California's business climate. AB 1144 (Goldsmith) • Requires state and local agencies to hold hearings and make a finding, prior to the adoption of standards, rules or regulations which differ fiom federal law, that they are justified by benefit to human health, safety and the environment. AB 1520 (Aguiar) • Streamlines the air district permitting process,by limiting the information that a district can request in a permit application to information that is necessary for the district to establish and monitor compliance with emission limitations. AB 2061 (Umberg) • Requires the California Environmental Protection Agency to designate a single agency to oversee site cleanups. � SB 428 (Thompson) 3 • Extends by 24 months the expiration dates of tentative maps approved, or previously extended, pursuant to specified provisions of the Subdivision Map Act. SB 659 (Deddeh) • Requires approval or disapproval of a development project within six months from the date of certification by the lead agency of the environmental report for the project. SB 660 (Deddeh) • Includes within the definition of the term"development project" the amendment of a zoning ordinance, the approval of or amendment to a specific plan or community plan, or the amendment of a general plan that is requested in connection with an application for a development project that has been filed with and deemed complete by a city, county, or city and county. SB 919 (Dills) • Places legislative intent language into the law, declaring, among other things, the importance of encouraging modernization and expansion of job-intensive and job-creating manufacturing businesses. • Directs courts to follow the existing statutory law as to judical review of California Environmental Quality Act (CEQA) decisions by requiring"substantial evidence" in light of the whole record to overturn a CEQA decision, as opposed to a "fair argument" standard (in which a decision could be overturned if it is found "fairly arguable" that significant environmental impact would occur.) • creates a "trigger" threshold for CEQA review of a modernization or expansion of an existing commercial or industrial facility. No CEQA review would be necessary if the project results in a net increase in production capacity of 20 percent or less. • Exempts from CEQA review any modifications of an existing commercial or industrial facility that results from any requirement imposed pursuant to any law or regulation for the protection of the environment. • Exempts from CEQA review any modification of an existing commercial or industrial facility that results in a net reduction of emissions to the environment. -3- SB 1031 (Thompson) • Clarifies the definition of a "project" under CEQA. • Provides statutory support and criteria for the use of a mitigated negative declaration. • Clarifies CEQA litigation procedures. SB 1185 (Bergeson) • Streamlines and consolidates the current environmental permitting process by instituting a lead permit agency process. When more than one permitting agency is responsible for issuing permits to a single facility, one would be designated in regulation as the lead permit agency and would be responsible for issuing one permit that would incorporate all the requirements of the other involved agencies. -4- CALIFORNLANS AGAINST RED TAPE Cut Red Tape • Save Jobs • Protect the Environment California's system of regulatory laws has become unworkable and costly. Employers report daily how the failed system costs Californians their jobs. I.. PROBLEM: Hundreds of local, state and federal agencies regulate business activities in California. Employers are forced to navigate a confusing maze of overlapping agencies that require duplicate information. Example: The Lockheed Corporation, in the San Francisco Bay Area,.found it had to deal with 16 municipal agencies in five different cities, 12 county/regional agencies and 7 state agencies. Lockheed found that for its Austin, Texas plant, it had to deal with just one agency. Source:Council on California Competitiveness SOLUTION: • Pass legislation to eliminate this costly and wasteful duplication and overlap. 2. PROBLEM:- Many agencies depend on the fees and fines collected for budget support. This and lack of budget oversight have resulted in an alarming increase in the size of fees and bureaucracy.budgets. Example: In six years, the Pro-Line Paint Company was forced to swallow these increases in fees charged by the San Diego Air Pollution Control District for five required permits. 1985- $ 160 1988- $20315 1991 - $4 0 610 1986- $ 350 1989- $2P350 1987- $ 725 1990- $4,335 These fees represent an increase of approximately 2,700%! Source: Pro-Line Paint Company,San Diego,California SOLUTION: Pass legislation that will: • Make fees reflect costs. • Establish budget accountablilty and prioritize programs. • . Redirect penalty and fine revenue away from operating budgets. 3. PROBLEM: Many bureaucrats who work for regulatory and permitting agencies look upon employers as "the enemy". Example: Kern County employers were asked to describe a typical experience with the permitting and regulatory process. Here are some of the responses: `?Most seem interested in collecting fees,penalties and fines rather Um helping you solve the problem." `: . . said if I didn't like it, there were businesses waiting to get into Dern County and they didn't need me." Source: Kern County Board of Trade Council on Competitiveness SOLUTION: • .Establish quality management programs that will promote more efficient regulation and help improve hostile agency attitudes . (over) 4. PROBLEM: The current regulatory process restricts scientific input, fails to consider the marginal cost and benefit of regulations and allows an inflexible system to stifle innovative and cost-effective solu- tions to problems. ExaYn le: In a notice of public hearing, the California Air Resources Board states that the cost of requiring refineries to produce cleaner, reformulated gasoline will be $4 to $7 � g billion dollars which translates into an increase at the pump of 14 to 20 cents a gallon. Amazingly, the same document claims this will not require small businesses to "necessarily incur any costs". Source: California Air Resources Board Notice of Public Hearing SOLUTION: Pass legislation requiring agencies to: • Open regulatory process to broader scientific input. • Consider marginal costs and benefits. • Avoid duplicating federal scientific reviews. • Give jobs and the economy a voice in the process. • Speed the process through privatization of.certain functions. 5. PROBLEM:- The California Environmental Quality Act(CEQA) and the environmental permit process are in place to ensure the environmental impacts of projects are considered. The reality has become a costly, time-consuming, cumbersome process that manages to stop legitimate projects while doing little to advance the original goal. Example: A former site selector for Target Department stores recounted in the October 29, 1990 issue of Forbes magazine the time Target applied simultaneously for approval to build two nearly identical 500,000-square-foot distribution centers, one in Pueblo, Colorado and the other outside Los Angeles. The Colorado facility was completed and operating before major construction was allowed to begin in California. Source: Senate Republican Caucus Study of California's Business Environment SOLUTION: Pass legislation that will: • Ensure that compliance with CEQA does not duplicate work already completed at other levels in the process. • Utilize less complex EIRs. • Make the.CEQA process more clear and certain. • Focus regulatory efforts on projects that need the most review. Standardize the permit process. • Relieve the paperwork burden on activities with minimal environmental impact. CALIFORNIANS AGAINST RED TAPE Cut Red Tape• Save Jobs•Protect the Environment P.O.Box 1736,Sacramento,CA 95812 (916)444-6670 • FAX(916)444-6685 111 Anna Blvd.,Suite 406,.Burlingame,CA,94010•(415)340-0470•FAX(415)340-1740 11444 W.Olympic Blvd.,Suite 1018,Los Angeles,CA 90064 9(310)445-8885•(FAX)310-445-8870 4/12/93 - r California.n`s CARTAMMiau Ag a ie American Electronics Association nst Associated General Contractors of California R e Ta p eCalifornia Aerospace Alliance : f California Building Industry Association California Business Properties Association ....w.l::. California Cattlemen's Association California Chamber of Commerce California Circuits Association California Council for Environmental and Economic Balance California Forestry Association California Highway Users Conference California Independent Petroleum Association California League of Food Processors California Manufactured Housing Institute ICS.A 57S0Cli;t lc7r? California Manufacturers Association `..'•CI'Cd( _"i,,era� tYG7CtorS California-Nevada Conference of operating Engineers. !i y%7i?f.7iil= -C)Utherti (_'cm)orma :t.111�7111c1 i'1"'iLIS 0-1SOC,c7tinn of California Newspaper Publishers Association .•��'rC?�,.7ace.-i111�7i1i.� California State Council of Laborers - c7Ci' :allfornica fjtaiiJiml Industri,.1;sociation r:.:11i;vY11!�!Eusiricss Properties California Taxpayers Association California Trucking Association � ;rJ1''?!ca��:�i�'lricn s t�so�i�rt!el7 -Ldirornt a Chcamk►er or"Commerce Liiit'Orliica C•i'"C!UtS.?SSOCiXiOn Chemical Industry Council of California _*t7 J 1.cc- Co tlr,c.►- an. FtTti 1►vnme'litcai Federation of Minority Business Associations :.;11;7�ii:'11omii:�•`:ca1Ca'7cE� it01"11!:1 1 0 .-Aji0C1Ut10t7 • or11!:a ii:;�ict�'c�;Food Pro,, ssors. Forest Resources Council lw'cict`;'c`'H`'".Si"a National Federation of Independent Business Small Business Committee, California Chamber of Commerce -;:�i�'r.`1i,.� ...•'.'S��.it'•i:1•'�Cl 71151?t'1 Western Growers Association aii%or,?ick i-ruci:lnt!AS.SOCiat 0" "? ii;cOL;11cii°r'-�,iito!"'iica Western States Petroleum Association nomic Dc:-elooment Corporation of '•s.a1i;e ie {!"tti: Automobile Club of Southern California :�.S9dat,ons Building Industry Association of Southern California rest,�'esr.-urces C ouncli Enwire t<<,no►riic 1'a►-triersii►p Economic Development Corporation of Los Angeles County i?yeles :;1;11•Hotelllvlotel Group .",'Otlonai Federation of independent Inland Empire Economic Partnership '3!iSit7e.s.s »aii Y[Is111CS.S :lnmIttee- Latin Business Association `:_;iirorma C?anwer or Commerce utI -n�gal ii orm.a Business.Association Los Angeles County Hotel/Motel Group `.ctltUra ccunry t.conomic :yeti elopment association Santa Clara County Manufacturing Group ' . .;t,'•►,_)t�[ r'c=tr01eLW7 Association Southern California Business Association Ventura County Economic Development Association .__ P.O. Box 1736 11444 West Olympic Blvd., Suite 1018 111 Anza Blvd.,Suite 406 Sacramento, CA 95812-1736 Los Angeles,CA 90064 Burlingame,CA 94010 (916)444-6670 (310)445-8885 (415)340-0470 FAX(916)444-6685 FAX(310)44S-8870 FAX(415)340-1740 ' • � � ' Save s Protect the Environment DEMOCRATS and REPUBLICANS, BUSINESS and GOVERNMENT, ALL AGREE CALIFORNIANS . . . MUST ACT NOW TO CUT RED TAPE, TO SAVE JOBS and TO PROTECT THE ENVIRONMENT! "The burden of excessive regulation does not just affect business. It also affects our local and re- gional governments and delcrvs vitally needed infrastructure. . . "Testimony was received from over a dozen counties and more than 30 cities on their inability to navigate the regulatory maze and their view that too many agencies are irrvolveal the statutes and regula- tions are ambiguous and the results being achieved do not justify the taxpayer costs. " California's Jobs and Future Council on California Competitiveness The Task Force finds a series of barriers.to business development ani thus, to jobs at the local level: • Unnecessary delays. • Overly-burdensome compliance costs aruipunitive enforcement. • Difficult-to-understand requirements. . . lack of clarity. • Inconsistent and conflicting demands. • Indifference, inflexibility and risk-avoidance. • Ineffective communication" Report of Red Tape Task Force Published by California Counties Foundation in Cooperation With General Telephone & Electric Co. (Continued) THEY ALL AGREE ... Paye 2 "Even as 1ve must protect the environment in which we live, we must as well develop processes for accomplishing that which are clear, coherent,fair and come to closure much more expeditiously. The ready commitment of most all the business leaders we conversed with to maintain the goals and stan- darrls for protecting our environment provides us with encouragement that with enough good work and good will, we can accomplish such a streamlining of our environmental protection and permitting pro- cesses at every level ofgovernment. " Preliminary Report of the Assembly Democratic Economic Prosperity Team (ADEPT) "Regulatory and permitting concerns will remain a leading impetus for California's business exodus until reforms are enacted . . The type and degree of regulatory reforms needed require the active and willing participation of the Legislature. " A Study of California's Business Environment, Senate Republican Caucus `7f the region is to absorb the inevitable increase in its population without profound social disruption a vigorous economy must continue to flourish . . A degraded environment can damage the economy as 1ve11 as public health However, increasing environmental regulation may, under certain circumstances, very 1ve11 inhibit economic growth " Final Report Los Angeles 2000 Committee SAMPLE RESOLUTION IN SUPPORT OF CALIFORNIANS AGAINST RED TAPE'S s-POINT PLAN TO CUT RED TAPE, SAVE JOBS AND PROTECT THE ENVIRONMENT WHEREAS, California's current weak economy means that employers are either not hiring new employ- ees, laying off current employees, or are leaving the state;and WHEREAS, California should do all that can be done to keep employers in the state, rather than provide them with more reasons to scale back or leave;and WHEREAS, one of the major causes of California's ailing economy is overregulation;and WHEREAS,Democrats and Republicans,business and government all agree we must act now to reign in California's regulatory bureaucracy;and WHEREAS, Californians Against Red Tape(CART)is proposing a five-point plan to cut red tape,to save jobs and to protect the environment;and WHEREAS the CART plan first calls for the elimination of regulatory duplication and overlap that wastes taxpayers dollars, costs California jobs and adds nothing to environmental protection;and WHEREAS,the CART plan secondly calls for a stop to the explosive increase in fees and the assurance that existing fees represent the actual cost of regulation,rather than the cost of keeping the bureaucracy alive;and WHEREAS,the CART plan thirdly calls for a more efficient permit and regulatory system,and the. elimination of the hostile attitude many agencies have toward employers;and WHEREAS,the CART plan fourthly calls for the opening of the regulatory process to ensure that policies are based on the best scientific knowledge available,that marginal costs as well as benefits are consid- ered and that employers are given some flexibility in meeting regulatory goals;and WHEREAS,the CART plan fifthly seeks the streamlining of the California Environmental Quality Act and Environmental Permit processes to meet their original goals without causing unnecessary cost or delay to legitimate projects;and WHEREAS, Californians Against Red Tape is supporting legislation to solve these five problems; THEREFORE BE IT RESOLVED, supports the Californians Against Red Tape's 5-point plan. Signature Please print name and title of authorized signatory Address city ZIP Telephone Date Please fax completed foam to Ted Green at(310)445-8870 or mail to: Californians Against Red Tape, 11444 W. Olympic Blvd., Suite 1018,Los Angeles, CA 90064.Telephone: (310)445-8885 Imw to-W W 0 tow 0 Zo- 0 .��• �•�'.' Q G� r N'C�v a � �,,, J �v�op.o a••� O p woo 4) .0-- Iwo a), to W .4.0 o- 00 io'o co 0 0 104 0 o Roo-•-c; os -Z�- 4) .!� 3� 0 vo" ;6D 1.55�vo: i--# U.) ., c; 0 7p 0) 0-0 4) 1*04) .0 ,%—r Co. voo 0 up ip 4) dOPP ID W.N. sa 16 ce 0 ;woo Co Vo" rod C4 0- 0 ip so N 'A Vow rw- 0. oo* C4 r 0 0 C4 a.rook Ora A *io I-P is 0' C4 ADi py o mop do IP is woo* is 0 0 *Oro, 0 0 40 as fo 0 Jow*A- %w 40 40- sk 4 - - - - s@ % 40 0 0000 y z a 0 0. rp do o.5 0 o 0 "�' ; -' ; =oma ✓�� - 0 0 0 -0- 0.0 go-61 ro 0 C4 o 0, ;0- to C.4 t) It * S 00 * 4o# 0- too 0 0 00 410 0 000" 4) 0 0 Q 0 C6, c�'�V ? O�@' f—f-- r) to N C*A 0 0014 s4a ') f-f- - roC4- C,wn • -ij-p f roo S W. 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' - C., ol woo 0 Too C.� X, oo DO` „moi `.j, t4 p�► t _ ^,� -0" woo woo too ?OOA Vol �n uroaa puollic ana political SLIP- would back stricter IMILS on some BLAME claims brought by employees ,Wt. against empioyers stemming from "With the public so schizo- Continued from Al Job-related injury or illness, if that phrenic, even the wisest political aimost three in five of those polled would keep business and jobs from ieaders will have a hard time agreed that taxes are too high and leaving California. getting a consensus for action," there IS too much regulation. Times Poll Director John Bren- Brennan said. Nearly the same number-57% nan noted that although Wilson In other findings: responded positively to the question: and other Republicans have been Generally,Californians remain "Would you be willing successful with their arguments, satisfied with the communities in will' to limit some ,f the environmental regulations they are reaping little political gain ,.vhlch they live (70%), but 37% from the increasingty pro- ,.etect a decline in th California places on businesses if e quality of that would keep businesses and jobs business, anti-regulation mood of Ife in those areas. from leaving the state or not`?" t he public. e In spite of the pro-business As might be expected. Republi- Those who believe business is attitudes expressed by many in the cans and.conservatives were most ,overregulated disapprove of the lob poll. 59% still think that growth insistent that-high taxes and exces- Wilson is doing by 58% LO 34%, and development should be con- sive regulation were at the root of a Brennan said.The margin of disap- trolled or slowed,even though that poor California business. climate. proval is almost identical among might result in the loss of some jobs But there also' was substantial those who think business taxes are in their communities. support for that view among Dem- too high. * Californians were split on a ocrats and liberals.Fifty percent of These same pro-business poll question pitting business concerns the registered Democrats said they respondents split over whether the against the threat to endangered were willing to limit some environ- Democratic Party or the Republi- species. Forty-seven percent said mental..regulations if that would can Party can better handle the they were sympathetic to concerns keep business and jobs from mov- state's problems, about wildlife,, while 44% sided ing to other states. These perceptions,if unchanged,, with business. An increasing number of Demo- could become important as Califor- * Only 37%of California's motor crass in the Legislature have joined nia approaches another critical vehicle owners favor the concept the bandwagon this year for easing election year. Few economists are of a "pay-at-the-pump" program burdens on business. confident of a significant turn- to provide universal auto insur* Californians were not specifical- around in the California economy ance;56%were opposed. ly asked which environmental before 1994, when Wilson will be rules they might be willing -to seeking a second four-year term. relax. But the poll showed there is Poll respondents also sent mixed stronger sentiment for this in signals when asked about the on- going state budget crisis and how solve it. to THE TIMES An increasing number say th0i POLLquality of services they get from state and local governments are inadequate.Still,,a majority thought Southern California than in the San that even more reductions in state Francisco Bay Area,traditionally a programs might be needed to bal- center of environmental activism. ance the budget. And 55% said The most intense public discus- higher taxes may be necessary. sion in the Los Angeles area the Asked what actions would be past year has been over an array of necessary"to balance the budget, anti-smog rules imposed by the 41% said mostly program cuts, South Coast Air Quality Manage- 25% mostly taxes, and 26% an ment District. In the Los Angeles equal combination of the two. region, 60% of the respondents In the long run, however, most indicated they were agreeable to a Californians thought that higher relaxation of environmental stric- taxes were a greater evil than tures to help business while 32% further reductions in essential were opposed.In the Bay Area,the state services. margin was 50%to 43 The question was phrased this The Times Poll interviewed way: "In your view, what is the 1,294 California adults Saturday greater danger for California right through Monday. The poll has a now: that state spending has been sampling error of plus or minus.3 cut to the point where essential percentage points. government programs and services The case for regulation and taxes will be threatened, or that taxes as the cause of business flight has have been raised to the point won support even though there has where people won't be able to been no significant increase in state handle the burden?" business taxes in recent years and Sixty percent said the tax burden in spite of some studies questioning was the greater danger while only whether there has been an exodus 29% listed cuts in essential servic- of business to other states.because es and 11% said they did not know of California taxes and regulations. or did not respond. While California continues to Given the option of what servic- lead the nation in unemployment, es to cut,,the most often mentioned much of the state's job loss in the spending item (34%) was welfare. past several years has been attrib- Respondents were most protective uted to layoffs by defense-related of education (42%) when asked industries that have lost federal which progrw should not be cut, contracts and to a decline in the or should be cut the leant. These construction industry. views are consistent with priorities Although the respondents most expressed in past polls. often mentioned high taxes as the Brennan said it is not unusual for biggest problem facing business in respondents to seem to contradict California (45%).. a considerable themselves when answering a long number (33%) listed the economic and complicated series of ques- recession, the same percentage as tions—as when they deplore the for business regulation.About one- condition of the environment but fourth each also said that the cost seem willing to sacrifice it to a of workers' compensation and degree to help business. competition from foreign business "State leaders will not find the were big factors. solutions to their problems simply Each Person Polled was allowed from polling the public," Bretinan two responses when prompted with said. "Unlike policy-makers, the a list of Potential business problems. public has the luxury to contradict There was considerable agree- itself on major issues and the right mens--78%—that business leaving to react nevativelv to whatever 1.ii make, Sacramento 113ee October 16, 1992 p 11 fi D Wake�u ca or emocrats he report on the state economy issued make economic development and partner- the other day by a team of Assembly ship with business central to its mission. Democrats plows familiar ground in describ- They suggest that business and state lead- ing California's woes.But it's important never- ers work together to create a strategic eco- theless. It's a sign that some leading Dem- non-dc development plan to coordinate poli- ocrats now understand, too, that California's cies on issues such as worker education, business leaders haven't just been crying infrastructure,technical research,business reg- wolf. Their wake-up call is reason to hope for ulation, defense conversion and taxes. some serious bipartisan action next year on They signal their readiness to move ahead curing what ails the state. on workers' compensation reform, new tax After months of meetings with business policies and streamlined environmental reg- leaders, the Assembly team, led by John ulation. Vasconcellos and including Speaker Willie All of that is encouraging. But Democrats, Brown, has concluded that California is suf- who've controlled the Legislature for years, fering from more than just a garden-variety can't collect credit for recommendations recession. An expensive workers' compensa. alone. What counts is action. tion system, obtrusive regulation, heavy in- direct costs for environmental review, exces- othing the Assemblyteam proposes is sive litigation, unresponsive governments N at odds with traditional Democratic locked in adversarial relationships with principles. But many of its recommenda- business - all are making California less at. tons will require changes in areas dear to some tractive for business expansion and stifling of the Democrats' strongest energies, constituen- entre reneurial ies, the Democrats cies: public-employee unions, trial lawyers P g found. And in a rare bit of political honesty, and environmentalists, among others. The they have admitted that Assembly Demo- test, both for Gov. Pete Wilson, who talks a crats deserve a share of the blame for the good game on business climate but hasn't .distrust between government and business. done much and for legislative Democrats, Calling the state's situation "critical," the who weren't even talking about it until now, Democrats now call for action on a useful, if will be whether next year brings less talk still incomplete, list of recommendations. and more progress in restoring California's They propose restructuring government to business competitiveness. TUESDAY. `PARCH 23. 1993 LOS ANGELES fly :!I ..EDITORIALS ���� of THE TIMES] Somet.hi 9 Is Wro g With This Picture Proposed Fox expansion gets ambushed at almost every turn by red tape and chaos As the entertainment capital of the The lengthy holdups in the project including requirements for separate world,Los Angeles has a huge vested speak as much to the Byzantine licenses or permits involving devel- interest in the movie and television nature of the regulatory process as to opment, zoning, environmental- im- business. But the city's inability to the disorganized nature of urban pact; air quality, traffic mitigation, settle along-running dispute over planning in Los Angeles. density and seismic safety—against plans to eland Fox Studios points to By all appearances Fox has reason- Fox to further delay an already the absence of a cohesive strategy to ably addressed most of the objections lengthy approval process. foster wealth-producing industries— to the project. The studio has made This obstructionist ploy is all too such as entertainment—that are vital commitments to designate the site for easy in a city that has trouble in just to the long-term economic health of "studio use only," meaning that the identifying valuable projects; much Los Angeles. studio could not change the use of the less in hastening their approval. For more than three years,Fox has property without city approval; to It is obvious that the city must do a struggled to gain approval from the spend more than $5 million to miti- better job of targeting and retaining city to construct new administrative gate traffic;to limit the height of new those industries that are crucial to its office space and to renovate old structures to seven stories, and to economic.well-being. It would help if studios at its 53-acre motion picture preserve historic buildings and sound city and state leaders found a way to and television production facility in stages.Fox is also negotiating to scale consolidate and streamline all the Century City. back the amount of new office space regulatory functions. The cost of delay is significant not and complete construction in several A worthy project simply should not only to Fox but to Los Angeles,which phases. be required to comply with more must wait for 1,600 new jobs and Yet these assurances have not sat- than 700 separate conditions. It's not forgo millions of dollars in potential isfied the often highly vocal oppo- reasonable. It's all too clear that city revenue as deficits grow ever nems of the project. The opposition something is very wrong with this larger. has used city and state.regulations— picture. r1rhe tol3ce Wednesday, May 5, 1993 Grou us S cut, in sta.t r d tap By Mary Lynne vellinga ■ A requirement per- Bee t that state and local per Bee Staff Writer mitting agencies start quality management programs. The same bill would freeze fees A coalition of business and labor groups until agencies could show they had such led by the California Chamber of Commerce programs in place. Tuesday backed a list of legislative propos- ■ The creation of an Office of the Om- als it said would help lift the burden of state budsman within the Trade and Commerce regulations on business here. Agency to assist businesses going through The group — calling itself Californians the regulatory process. Against Red Tape—said its proposals would New regulations requiring one agency eliminate delays and duplication without to issue a single permit for a facility that compromising existing environmental pro- now would have to obtain permits tections. from numerous agencies. The sin- "We want to ' improve the California obs gle permit would encompass all p jobs climate by implementing current standards the requirements of the othera encies. in a rational and efficient manner without Th coalition sacrificing environmental safe a new coalition is backed by g guards," said two large construction urians -- Kirk West, resident of the California the State Council of Laborers and Chamber of Commerce. the California-Nevada Conference Some environmentalists disagreed. of Operating Engineers. "Their real motive is to get rid of state "We have 35 percent unemploy- standards for air quality, water quality and ment in our industry right now, hazardous waste, said Jennifer Jennings, and if it weren't for natural disas- general counsel for the Planning& Conser- ters, we`d have 50 percent," said vation League,a statewide umbrella organi- Ron Wood, education and re- zation for environmental groups. search director for the Operating Jennings said business leaders involved Engineers. in the coalition want to have environmental matters governed by.federal rules, which Other key labor groups—includ- tend to be less stringent. ing the California Labor Federa- The legislative agenda released by the co- tion--have not signed on to the co- alition Tuesday is comprised of 11 bills now alition's plan. "I don't know pending in the state Assembly and Senate. anything about it; I wasn't con- Provisions contained in the bills include: sulted,"'Jack Henning,head of the ■ A change in state law that would make federation,said Tuesday. it harder for environmental organizations to West said he did discuss the challenge a local or state governments deci- plan with Henning, but didn't for•- sion not to order the preparation of an envi- many ask him to join. He said he ronmental impact report for a construction intends to do so. project. two r%' •tip' r •".. V J two ,� .�'� . +'' w .`0 w t/1 :tet rr,.�✓'y{ .. G� 000 • J G3 rAr lip ct tt tz } I S°• /�.] � v/ +'".S! w,,, a. Zi •�,��• 'f�•y1.'•: .. `;�, � ^ A' i y� � ,,r, a,,,� ,n ,,•� �.► ,^ `+� p• ;.� Y' M+' ►- 1. ./ 1► �ii 4 t• '/ �.'I':::�=�' '/{•� Ww V• C7 tn bz 0000. cd f r•.. G S� " .. 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Lriis was new Lrrouna tur But the Yorktown Project's extensive n any event. the carefully nurtured ,qh. The EPA. even though air-pollution- testing revealed that the EPA's basic as. trust had been shattered. With the project , in jeopardy,Mr.Reilly picked up the phone .Introl I often sumptions in requiring such a system--as-a central mission. doesn't ,.ieasure emissions from industrial plants. sumptions based largely on a 1959 study of and,in a move with virtually no precedent 1 4 enforces regulations spelling out what benzene emissions from pools of dirty in environmental regulation, called -(iuipment a plant must have, with the water known as separators" — were Amoco's chairman. H. Laurance Fuller in Jelief that this will keep pollution low. It wrong for this refinery.Fumes and evapo- Chicago. Recusing himself from any fur- ,nav check that a certain type of smoke- ration- of benzene from the plant's dirty ther dealings on the lead fine. Mr. Reilly .,),Lack is a certain height, for instance, or water was, in fact, 20 times less than the said he was sorry Amoco hadn't received hether a water filter is in place.But these 1959 study predicted it would be. anv warning and hoped it wouldn't pull out .V les are often based on old or over-gener- The real benzene problem was at the Of'the Yorktown Project. .,,zed information, and rarely allow for loading docks, where fuel is pumped onto Although the call patched up a lot, .djustment to individual cases. barges. Fumes released here carry 1.6 there was awkwardness in the air"at the Regulators from each of the pollution- # million pounds of pollutants into the atmos- work group's next meeting, Ms. Sparks .Ontrol divisions — air, water and solid I phere a year, the study found. The EPA says. It was a little like finding your rules didn't address loading docks. xaste -- visit plants every few years with spouse cheated on you,and it takes time to :ng checklists. Too many missed checks Indicting Evidence get over it."But Amoco people,seeing that :Tray result in an order to modify the plant I - %'It was like 'My God, a blind person their EPA counterparts were also troubled or in a fine.But to what extent the rules are could see this,I tv says Amoco's Ms. by the fine,grudgingly moved ahead with I actually reducing pollution at a given Sparks, recalling when she first heard work on the common goal of seeking a site—and whether they are doing so in the about the data. "This is what we believed way to cut the loading-dock benzene re most proficient or efficient way--are nor- in our hearts but never had the data to leases the study had uncovered. And in malty not at issue. 99 September 1991. the team finally began Nor does the regulated industrial comIn a way, it was also what some EPA- demonstrate. writing the Yorktown Project's report. parry generally measure actual pollution. Air Attack It,too,focuses on the rules it must meet. people were secretly-hoping for: evidence Then,EPA's North Carolina air office-- If the project was going to learn any- indicting the current rigid structure of the one that didn't give a definite answer thing at all about the efficiency of current checklists and often-outdated assump- tions. "We didn't know as much as we when asked to rule on the appropriateness pollution-control efforts, it would have to thought we knew about what is being of the test method—weighed in. devise ways to measure the pollutants released to the environment," says the "They tried to submarine the whole given off by the refinery as a whole— EPA's Mr.Podar. thing,"says a senior EPA official.661t was fumes, fluids and solid wastes. Only then Madeline Grulich, a Virginia environ- ludicrous that a minute before midnight could it consider the best ways to keep mental official who worked with the pr0j• they complained about technical problems them out of the air and water and soil. ect.,says,"Those were astonishing conclu- they could have addressed" more than a Separate Fiefs sions that the waste water was not the year before when Mr. Klee had pressed The Amoco executives were surprised problem and that the loading dock was.At them to approve the testing procedures. to learn that the EPA officials regulating the time,loading docks weren't something The air office now said that the testing each of those three kinds of pollution regulators were even looking at. methods were improper,,and that the con- seldom spoke to one another. They By early 1991, the work group was clusions drawn from that data were too operated from separate offices, enforcing ready for a show,and 120 people from the broad. separate pollution laws and maintaining EPA and Amoco gathered at the Williams- The EPA's Mr. Podar,, who says his their own regulatory staffs, burg Inn in Virginia.But a small problem Buddhist beliefs don't allow him to get It was for that reason that the EPA arose. EPA's per them expense limit was angry, says simply: "The air objections oversaw its end of the study from its policy short of what a room costs at the sumptu. unfortunately came later than I would office in Washington,away from turf-con- ous colonial inn. "In an aberrant mo- have liked.'t scions division regulators.J.Clarence Da- ment,to says Amoco's Mr.Klee,"I decided The EPA's acting assistant administra- vies, who headed the policy office, says why don't we have EPA people and Amoco for for the air office,, Michael Shapiro, that some within EPA were strongly op- people share rooms." contends the tardiness wasn't sinister but posed to'the joint project with Amoco. 641 Strange as the idea seemed to some.,it merely bureaucratic,reflecting the EPA's suspect."he says, "that half the people in helped to thaw the cold war. Deborah difficulty coordinating its various offices. the EPA water or air office,, the people Hanlon of the EPA says her Amoco roo- In any case,,senior EPA officials arrived to doing the regulating, think they're the mie turned out to be "a real blast." One arbitrate.After difficult negotiations,they good guys going after the bad guys." night, Ms. Hanlon rounded up 10 Amoco ruled that the air office I s objections didn't To measure air pollution, Amoco de- and EPA people to go dancing at a country change the fundamental findings but only signed testing methods with the help of its and western bar. "What was so exciting modified them in some instances,and the regulatory colleagues. But the methods was not just the camaraderie,0 9 she says, project should proceed. needed approval by the EPA's air pollution 6'but it was like we were all on the same Even with that,there was frustration at office in North Carolina.After several trips team." Amoco. Armed with study data showing and many calls to the office in the spring of At one workshop during the conference,, the waste-water plant's benzene emissions 1990, Amoco's Mr. Klee still didn't have people had to think about being a vegeta,• were only a tiny fraction of what the EPA what he felt was a definitive response. ble,then tell the group what vegetable they had assumed them to be, the company Finally, Mr. Podar, reading EPA tea would be. One Amoco executive was a petitioned in early 1992 for an exemption to leaves, said that the air office's neutral carrot,, because most of him was under- rules requiring it to complete its massive stance meant it had no objections. ground and he revealed little. sewer system.EPA said no—there was no it was a risky supposition. But it al- By the final night, Mr. Klee says, the procedure to waive.extsting environmental lowed work to continue. EPA attitude seemed to be, "Gee, you laws and regulations, even if they were So the group began measuring pol- don't all have horns." The Amoco con- contradicted by an EPA-sanctioned study. lution. Forty wells were drilled to test sensus. "Wow, not everybody at EPA Prescribed Remedy the water all about the grounds, a few was walking around with a pair of hand- miles from where British troops sur- cuffs.99 As for the loading area that the study rendered in the last major battle of the Sudden Setback had fingered as a worse eulprit,the group Revolutionary War. decided that controlling its benzene fumes But shortly after the conference came would take a special two-nozzle hose.The When winds prevented using a crane to an episode that shook Amoco's faith. second and would suck in escaping put a test device atop a 130-foot smoke- The EPA,, describing a 64 nationwide fumes,and pipes would carry them away. stack, they built 55,000 of scaffolding crackdown to enforce lead laws . . . with Cost of the system:about 56 million. around the stack,drilled a hole in the side particular emphasis on high blood levels in and inserted a sampling probe. The data The group also agreed. the refinery proved ambiguous, and they had to do it children," hit Amoco's Yorktown refinery could stand about $5 Million of other again months later,scaffolding and all. with a$5.5 million fine.Virtuallyeveryone, modifications, like new sMokestacb,, ex- from the oil company working on the joint tra tank seals and cooling equipment for Yorktown's main pollution problem is project — and a few people from the EPA open-atr sludge ponds. One Yorktown benzene, a carcinogenic byproduct of oil contingent—thought it was retribution for sludge pond., the study showed., emitted I refining.For years,benzene-tainted waste getting too cozy. twice as Much hydrocarbons as the EPA's water ran into pipes that led to an open-air Gordon Binder,,who was chief of staff to rules assumed.The low-cost solution.low- treatment facility.Though laws passed in then-EPA Administrator William Reilly, ering the pond's temperatures. 1977 said substances like benzene needed doubts that Amoco was targeted. But Late last Year, Amoco completed its to be controlled,it wasn't until 1990 that the "it raised a very real dilemma," he says. high-tech water-treatment system. Build- EPA,which slowed its rule-writing during "When you're working with industry coop- ing that costly facility (something many the Reagan years, finally drafted specific eratively, shouldn't you reward good be- other refineries have.had to do over the rules to contain benzene. havior?At the same time,you've got your past two years) brings Yorktown current Based on them, Amoco in 1990 began established procedures. with environmental I building a S41 million enclosed canal and water treatment system that would cap- laws.The plant now controls the modest ture the benzene vapors.Other oil refiner. output of benzene ies also had to build one. fumes from its waste water. A A. 5 Five times that much benzene still rises from the refin- ery's docks. "It's " not required to be controlled, so it's , not," says Chris Klasing, an Amoco manager. 1'tfahesh Podar EPA officials concede the point. The Yorktown study points to"potential opportunities"for bet- ter, cheaper pollution control, says the agency's Mr.Podar,but"we must confirm them before we make national policy.' EPA officials say new regulations to con- trol benzene at loading docks should be drafted by the mid-1990s. Winding Down The final Yorktown report is nearing completion.The volumes done so far make the basic argument that each plant is different,and each requires unique pollu- tion solutions. They say only exhaustive testing at each plant will accurately tell what needs to be cleaned up. Short of rewriting laws like the Clean Air Act,there is little hope for immediate, far-reaching change such as setting a ,benzene maximum and letting a plant meet the goal any way it wishes. If York- town cuts pollution at its loading dock or the EPA requires it to do so, that doesn't mean the agency would let Yorktown out of any requirements at its waste-water plant, even if they were based on faulty assump- tions. Says Mr, Davies: "You invest so much in terms of time,money and political chits in arriving at one of these regulatory decisions that to go back and change it is something nobody wants to do." Still, there are signs that EPA regula- tion is evolving.The air,water and solid- waste offices talk more to each other, as Yorktown's report recommends.And EPA Administrator Browner says, "The idea that one solution works in every situation is something we've probably passed be- yond, and we need to recognize that. We need to become more flexible." As the rare industry-agency joint ven- ture winds down,many of its participants have moved on.Amoco's Howard Klee and Debora Sparks both have new assign- ments, as do the EPA's Jim Lounsbury and Mahesh Podar.Summing up his expe- rience, Mr. Podar says, "Some of my colleagues may not agree, but Yorktown shows that EPA and industry can work together.You can find more effective ways to meet environmental objectives." Ms. Sparks, whose spotting of Mr. Lounsbury aboard the 1989 flight led to the project,even feels a certain ennui,as if a precious union has ended. "You know," she says, quietly, "I should call Mahesh and Jim. I haven't even wished them a happy New Year."