California Air Resources Board Demands Over $21 Million in Penalties in 2022

April 2024

Although 2024 is well underway, it is important to take a moment to reflect on the California Air Resources Board (CARB) enforcement report from the past year. California businesses face numerous challenges, particularly in complying with the intricate environmental requirements set by CARB.

CARB is responsible for developing regulations and programs to reduce criteria pollutants, toxic air contaminants, and greenhouse gas emissions. The California Health and Safety Code outlines CARB’s regulatory and enforcement authority. These statutes uphold the legal doctrine of “strict liability,” which means that any prohibited act constitutes a violation, regardless of intent or the level of precaution taken to prevent violations. The maximum penalty amounts authorized by statute range by CARB program, but can exceed $10,000 per violation, per day, in some cases. Notably, specific provisions stipulate higher penalties for intentional or willful violations. CARB’s regulations are in Titles 13 and 17 of the California Code of Regulations.

In late 2023, CARB took another step towards transparency by releasing its 2022 (the most recent year available) Enforcement Activities Annual Report. The report is available in interactive web portal format, allowing users to access and customize the data according to their interests. This approach aims to provide more transparency and make the information more accessible to users.

Key Highlights of CARB’s 2022 Enforcement Activities:

Enforcement Actions and Settlements. In 2022, CARB settled 8,293 enforcement actions, resulting in an astounding $21,504,488 in penalties.
Inspections. There were multi-agency efforts to inspect ten oil and gas facilities, 23 landfills, and nearly 10,000 vehicles and marine vessels for compliance in 2022.
Portable Emissions Acquisition System Deployments. The deployment of the Portable Emissions Acquisition System led to 223 citations for non-compliance with heavy-duty diesel truck regulations.
Investment in Environmental Projects. CARB allocated $7.75 million in penalties towards Supplemental Environmental Projects.

CARB Enforcement

There are different ways that CARB’s enforcement process can be triggered, including inspections, tips from the public, data analysis, referrals from other agencies, mandatory emissions reporting, and voluntary disclosure. At the start of an informal enforcement process, the agency often sends a letter to the business contact identifying issues that CARB believes exist related to the business’ compliance with a particular CARB program. Alternatively, CARB inspectors may request to visit the business location to audit the company’s records for the applicable CARB program. There is an opportunity for the business or the business’ counsel to discuss the issues with the agency and to respond to a request for, or volunteer, documentation that may demonstrate compliance. If CARB alleges violations, the parties may engage in discussions to resolve the matter and enter into a written settlement agreement that involves the business paying a civil penalty amount and the agency releasing its relevant known claims. By statute, CARB must consider several penalty mitigating factors, and the member of the regulated community must be given a meaningful opportunity to present its position with respect to those statutory mitigating factors.

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