Judge Sides with Businesses in Permit Flap

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Local businesses and public agencies notched a victory Thursday as a state superior court judge ruled that local air quality regulators could resume issuing air pollution reduction permits for hundreds of construction projects that had been stalled by a lawsuit from environmentalists.

Los Angeles Superior Court Judge James Chalfant threw out the lawsuit filed by a coalition of environmental groups aimed at stopping state legislation to reinstate the permits.

Last year, Gov. Arnold Schwarzenegger signed into law SB 827, which was specifically crafted to reinstate permits that had been granted for hundreds of public and private-sector construction projects in Los Angeles, Orange, Riverside and San Bernardino counties.

The South Coast Air Quality Management District permits were frozen by another state judge in late 2008 as the result of a lawsuit filed by environmental groups challenging the district’s awarding of emission reduction credits at below-market costs. The environmental groups contended that the awarding of the credits would increase pollution around the construction projects.

In December, the environmental groups Communities for a Better Environment, California Communities Against Toxics and Coalition for a Safe Environment filed suit to block SB 827 from taking effect on Jan. 1 of this year.

However, Judge Chalfant concluded that the environmental groups had no legal basis for their lawsuit.

“This decision will allow businesses and public facilities to continue receiving permits when they expand or modernize using the latest air pollution control equipment,” said Barry Wallerstein, executive officer of the South Coast Air Quality Management District.

At issue in all the legal wrangling is the air district’s practice of making emission reduction credits available at little or no cost to small businesses and public facilities (such as police stations, landfills and sewage treatment plants) so they can proceed with expansion projects or new facilities. The market rates for these credits could go into the millions of dollars, making them unaffordable for small businesses.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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