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Bill would let districts collect revenue SACRAMENTO - A bill on Gov. Jerry Brown's desk would let the South Coast Air Quality Management District try to cash in on the millions of dollars in research and other clean-air ventures it sponsors. The district, which includes western Riverside and San Bernardino counties, was the sponsor of legislation that would give air-quality agencies the power to negotiate revenue-sharing agreements with grant recipients. Under such deals, districts would have a stake in anything developed with district money. "Under current law, we haven't had the ability to recoup investments or to share in future profits if someone is very successful," said Barry Wallerstein, the district's executive officer. "There's a potential here to get a return of millions of dollars that would then be re-invested in technologies to improve public health and clean-air standards." The measure, SB 170 by state Sen. Fran Pavley, D-Agoura Hills, is modeled on systems already in place at other public agencies, such as the California Energy Commission and the California Institute for Regenerative Medicine. Those agencies share in the commercial success of products developed with the help of public grants. Pavley's legislation passed the Legislature in late August and arrived on the governor's desk last week. There was no organized opposition to the bill. Yet there was blanket Republican opposition to the measure in the Assembly and Senate. Among Republicans' concerns was that the bill could create a conflict of interest for air district officials. If a district stood to share revenue with the developer of a new clean-air technology, would that encourage the district to adopt a regulation requiring that technology, increasing its market demand? The bill's supporters said no. That kind of behavior would violate rules already in law, Pavley and Wallerstein said. The South Coast district currently gives out about $12 million annually for research in such areas as clean diesel, hybrid vehicles and other technologies meant to reduce emissions. It's unknown how much the district could make from sharing in recipients' revenue. The amount depends on the outcome of any negotiations if SB 170 becomes law, Wallerstein said. Districts would have to report to the Legislature annually on any intellectual property talks, whether or not they resulted in a deal. The bill would be re-evaluated in 2017. Brown has until Oct. 9 to act on measures delivered to his desk before the Sept. 9 conclusion of the 2011 legislative session. Source: The Press Enterprise |
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