American Coatings Association, Inc. v. South Coast Air Quality District

California Supreme Court Upholds Power of Regulatory Agencies to Require the Use of Technology that Does Not Exist Yet

In the recent opinion of American Coatings Association, Inc. v. South Coast Air Quality District (June 25, 2012), the California Supreme Court addressed the question of whether California Air Quality regulators have the power to promulgate “technology forcing” regulations that require manufacturers to meet certain air quality standards using technology that does not yet exist.

The Court held that air quality regulators did have power under the State’s Health & Safety Code to pass regulations that require the use of technology that does not currently exist so long as the regulatory body put forward evidence that it would be possible to meet the proposed air quality regulations with the new developing technologies by the effective date of the new regulation.

The Court’s decision will likely encourage the passage of more technology forcing regulations by California regulators. California businesses will need to closely monitor the regulatory environment, and comment on proposed rulemaking to avoid the passage of technology forcing regulations that are unworkable or not feasible.

Should you like more information on how BDG can help your company respond to the ever changing regulatory environment in California, please contact Brian J. Bergman at (310) 470-6110 or [email protected].

Tags: regulatory environment