After a rare floor fight among key Democrats, the Assembly passed legislation this week that could make it easier to challenge key air, energy and other future regulations.
The controversy stemmed partly from a business-backed bill's release last week by its author, Assemblyman Felipe Fuentes, from the powerful Appropriations Committee that he chairs despite major amendments that had not been heard by a policy committee.
The measure, Assembly Bill 2529, would create a process in which critics of any economic impact analysis used by four key state agencies in creating new regulations could bankroll an independent study.
The bill comes at a critical time, both for California's economy and environment, as state leaders wrestle with how to reduce greenhouse emissions and protect natural resources without overregulating business and stifling job growth.
Democrats rarely quarrel openly among themselves on the Assembly floor and traditionally side with their leader, currently John A. Pérez, when high-stakes legislation threatens to create caucus fireworks.
Not this time.
After a handful of Democrats complained loudly that Fuentes had violated legislative protocol by sidestepping policy committees, the caucus split on AB 2529, with the bill's 45-17 passage due largely to GOP support.
Pérez, Fuentes and Majority Floor Leader Charles Calderon were joined by 16 fellow Democrats in voting yes, but 15 others voted no and 15 abstained. Two roll calls were needed because the first failed to garner the 41 votes necessary for passage.
Fuentes, in a written statement to a legislative committee, touted the bill as a way to ensure that analyzes of economic impacts are accurate so that they do not result in unanticipated adverse impacts on communities.
Gov. Arnold Schwarzenegger has taken no position on AB 2529.
Supporters include the Western States Petroleum Association, California Building Industry Association, Consumer Electronics Association, California Restaurant Association, California Hospital Association, and California Manufacturers and Technology Association.
Opponents include Environment California, National Resources Defense Counsel, California League of Conservation Voters and various other environmental groups.
Fuentes' measure would apply to regulations proposed by four state agencies that oversee key air pollution, wildlife and environmental issues: Air Resources Board, Energy Commission, Department of Fish and Game, and the Department of Housing and Community Development.
Under AB 2529, anyone objecting to the economic impact analysis of a proposed regulation -- excluding emergency regulations -- could pay for an independent evaluation that regulators would have to weigh.
The alternate study, called "peer review," would be conducted by the University of California, California State University, National Bureau of Economic Research or "a group of economists of comparable stature and qualifications," the bill says.
Opponents contend AB 2529 would provide grist for clogging courts with seemingly endless challenges of environmental regulations.
Assemblyman Kevin de León, D-Los Angeles, said it would benefit wealthy Capitol interests at the potential expense of low-income communities.
"This is for big oil, big business, not small businesses," de León said.
But Assemblyman Anthony Adams, R-Hesperia, said the bill does "nothing more than strike a reasonable balance between interests."
"I don't think it's outrageous at all," Adams said. "I think it makes perfect sense."
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