Jarrell Cook

CMTA successfully protects integrity of state agency rulemaking and analysis

By Jarrell Cook, Associate Policy Director

Capitol Update, Feb. 2, 2018 Share this on FacebookTweet thisEmail this to a friend

CMTA recently saw success at the California State Court of Appeals, securing a favorable ruling in the case of Lawson Rock & Oil, Inc., California Trucking Association vs. California Air Resources Board.

The case involved the California Air Resources Board’s (CARB) amendments to its “Truck & Bus Rule”. The plaintiffs sued CARB for failing to properly analyze or consider the significant evidence they presented during the rulemaking process regarding the impact of CARB’s proposal on California’s economy. CARB asserted that California law did not require that it analyze such evidence after it completed its initial economic assessments, and that it was entitled to deference by the Court.

CARB’s position was in direct contravention of the enhanced rulemaking requirements of SB 617, a 2011 bill that CMTA supported, which improved California’s regulatory process by requiring agencies to conduct a substantive analysis of the economic impact of their major regulations on the state. CMTA, and a coalition of business and industry stakeholders, filed an amicus brief highlighting CARB’s deficient analysis.

The Appellate Court agreed with CMTA, holding that CARB violated the APA and California agencies “must consider whether the[ir] regulation will have a significant statewide adverse economic impact directly affecting business,” in addition to their rule’s economic impact on what they are attempting to regulate directly. CARB was not permitted to ignore evidence of economic impact presented during the rulemaking process.

This ruling is a step in the right direction for improving regulatory accountability and analysis, affirming the requirement that state agencies fully consider the economic impact of their rules on California’s economy

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