Report 2015-125 Recommendation 2 Responses

Report 2015-125: San Joaquin Valley Air Pollution Control District: To Cover Its Costs, It Recently Increased Permit Fees and Continues to Use Supplemental Revenue but Can Improve Consistency and Transparency for Certain Program Requirements (Release Date: April 2016)

Recommendation #2 To: San Joaquin Valley Air Pollution Control District

To make certain that it can demonstrate consistency and transparency in its decision-making process when it determines which permit applicants it requires to provide additional financial security, the district—after it updates its guidance documents—should follow its revised published policy and updated internal methodology for requiring indemnification agreements and letters of credit.

60-Day Agency Response

This response is confirmation that the District is following, and will continue to follow, all external policies and internal methodologies developed by the District for requiring indemnification agreements and letters of credit.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

The district provided examples of a project where it did require an indemnification agreement and one where it did not. In both cases, the district had included a paragraph explaining its decision to require an indemnification agreement, consistent with its revised policy.

All Recommendations in 2015-125

Agency responses received are posted verbatim.