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PROPOSAL:

Review of South Orange County Permit Consolidation Zone

SYNOPSIS:

SB 1299 provides that cities or counties with populations of more than 5,000 may apply to the State to have all or part of their jurisdictions designated as a Permit Consolidation Zone. Through this program, facilities may choose to substitute a consolidated Facility Compliance Plan (FCP) in lieu of various environmental permits. Cal EPA has requested the District to voluntarily participate with other environmental permitting agencies in the South Orange County Permit Consolidation Zone Pilot Program. All permit applications submitted to the District for inclusion in a FCP will be evaluated on a case by case basis.

COMMITTEE:

Stationary Source, August 28, 1998, Reviewed

RECOMMENDED ACTION:

Consider approval of the AQMD’s participation in South Orange County Permit Consolidation Zone Pilot Program.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Senate Bill 1299 (Peace) required the Secretary for Environmental Protection, by January 1, 1997, to adopt regulations for a pilot program for facility permitting that replaces individual environmental permits with a single, multi-media comprehensive facility compliance assurance plan. It requires those regulations to be developed by the Secretary in coordination with other specified state agencies and in consultation with representatives of cities, counties, local environmental agencies, and certified uniform program agencies. SB 1299 will be implemented through a pilot program in up to 20 communities throughout California, beginning in 1997 with applications for zone designation. The Secretary for Environmental Protection and the Secretary for Trade and Commerce are required to prepare and submit an annual report to the Governor and the Legislature by January 31 of each year, and to submit recommendations for additional legislation to implement the pilot program.

Most industrial and commercial facilities now require environmental permits from a broad range of agencies. Each agency has its own requirements, which differ considerably in terms of monitoring, permit term, financial requirements, fees, etc. SB 1185 (Bergeson, Chapter 419, 1993) provides a means of coordinating these permit approvals, but is only a first step in developing a true facility permit where all regulatory requirements would be specified and balanced in a more coherent document. New Jersey currently is in the third year of a pilot program that collapses their permits into a facility permit. U.S. EPA is currently considering similar efforts.

As part of the regulatory reform effort in 1996, the Permit Consolidation Zone Pilot Program was enacted into law. The Pilot Program is designed to test a new and simplified model for environmental protection and permitting business facilities in California. Under the Pilot Program, local agencies can apply to designate geographic areas as Permit Consolidation Zones. In a Permit Consolidation Zone, environmental permits are condensed into a single Facility Compliance Plan (FCP). Following a sixty (60)-day pre-plan submission and consultation process, permitting agencies would review the FCP within forty-five (45) days.

The South Orange County cities are proposing that South Orange County be designated as a Permit Consolidation Zone.

Proposal

SB 1299 provides that cities or counties with populations of more than 5,000 may apply to the State to have all or part of their jurisdictions designated as a Permit Consolidation Zone. Through this program, facilities may voluntarily choose to substitute a consolidated FCP in lieu of various environmental permits. Cal EPA has requested the District to voluntarily participate with other environmental permitting agencies in the South Orange County Permit Consolidation Zone Pilot Program. This would require the District to work with other environmental agencies to review cross media project plans and develop a single FCP. All permit applications submitted to the District for inclusion in a FCP will be evaluated on a case by case basis. Use of FCPs is anticipated to expedite environmental permitting within the designated zone while testing the FCP concept through this pilot program. A copy of the proposed program agreement is attached. Cal EPA has informed staff that the other 22 organizations have approved the agreement.

Implementation

A five-(5) member policy board will be created to guide and direct this pilot project. One member of the policy board will be appointed by each of the following: Secretary of the California Environmental Protection Agency, County of Orange Board of Supervisors, South Orange County Association of Mayors, South Orange County Chambers of Commerce, and one from among the General Managers of the participating sewer/sanitation agencies.

A Joint Participating Agencies Committee with two subcommittees, a cities/county planning and development subcommittee and an environmental agencies subcommittee, will work through a zone administrator to provide technical information to the policy board and coordinate inter-agency efforts to ensure timely and effective completion of the zone’s action plan as approved by the policy board.

While SB 1299 provides a proposed schedule for review and approval of a FCP, the actual procedure for processing a FCP through the South Orange County Permit Consolidation Zone Pilot Program will be developed following program approval by the Secretary for Environmental Protection.

A report on South Orange County Permit Consolidation Zone Pilot Program performance will be submitted to the Secretary of Cal/EPA and the participating agencies by December 31 each year. The term of this pilot project ends December 31, 2002 unless extended by mutual agreement.

Policy Issues

In order to meet the requisite forty-five (45)-day FCP review time, some AQMD permit applications processed through the South Orange County Permit Consolidation Zone may require expedited processing resulting in disproportionate impacts to other applicants. If this issue is of concern to Governing Board members, staff recommend mitigation through the assessment of higher fees provided by Rule 301(y) – Optional Express Permit Processing Fee.

Socioeconomic Impacts

Cal/EPA has determined that the adoption of the proposed pilot program action will not result in any adverse economic impacts on California businesses. The expedited process for obtaining environmental permits in a permit consolidation zone is expected to result in the creation of new businesses and the expansion of existing businesses in the State. The growth and expansion will result from the availability of an expedited process that may attract businesses to locate in California. Since the designation of permit consolidation zones is expected to stimulate the growth of business in California, a resulting increase in employment in certain areas could occur but it is not realistic at this time to project the potential magnitude of any increase.

Resource Impacts

Current AQMD resources are sufficient to implement this program.

Attachments
South Orange County Permit Consolidation Zone Pilot Program Participating Agencies Agreement
Exhibit A – Geographic Area of Proposed Zone
Exhibit B – Facility Compliance Plan
Exhibit C – Appeal Process for Applications Deemed Incomplete or Inadequate

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