Opinion ID: 3030204
Heading Depth: 3
Heading Rank: 2

Heading: Central Governmental Function

Text: [7] In assessing the second Mitchell factor—whether the entity performs a central governmental function—we evaluate whether the District addresses “a matter of statewide rather than local or municipal concern,” see Belanger, 963 F.2d at 253, and “the extent to which the state exercises centralized governmental control over the entity.” Savage, 343 F.3d at 1044. The District contends that it performs a central governmental function because it was created by the State of California to enforce statewide and nationwide air pollution standards. It is true that air pollution control districts are the mechanism through which the State meets and maintains state and federal air quality standards under the federal Clean Air Act and California law. See 42 U.S.C. §§ 7407(a) & 7410(a)(1) (requiring each state to submit a plan specifying how it will achieve and maintain national air quality standards in each air quality control region within the state); Cal. Health & Safety Code § 39602 (designating the California Air Resources Board (“the Board”) as the state agency responsible for preparing the implementation plan required by the Clean Air Act); Id. §§ 40001-40002, 40702 (establishing air pollution control districts and empowering them to adopt and enforce rules and regulations designed to meet and maintain state and federal air quality standards within their jurisdictions).7 7 Although the District is a state creation, see 42 U.S.C. § 7401(b)(4); Cal. Health & Safety Code §§ 40000-41133, an entity is not automatically entitled to sovereign immunity merely because it was created by the State. “[U]ltimate control of every state-created entity resides with the State, for the State may destroy or reshape any unit it creates. Political subdivisions exist solely at the whim and behest of the State, yet cities and counties do not enjoy Eleventh Amendment immunity.” Hess, 513 U.S. at 47 (internal quotation marks omitted). BEENTJES v. PLACER COUNTY AIR POLLUTION CONTROL 1555 [8] While air pollution control districts form a key part of this larger state and federal regulatory framework, they nonetheless have a highly localized function. Although the California Air Resources Board, a state agency, coordinates the activities of air pollution control districts that are necessary to comply with the Clean Air Act, id. § 39602, the Board’s limited oversight role over districts does not support the District’s contention that it is merely an enforcement agency of the Board and therefore performs a central governmental function. Indeed, the California Legislature has declared that “[l]ocal and regional authorities have the primary responsibility for control of air pollution from all sources other than vehicular sources.” Id. § 39002 (emphasis added); see also id. § 40000 (same). The Legislature also has declared that “[s]ince air pollution knows no political boundaries, . . . a regional approach to the problem should be encouraged whenever possible . . . .” Id. § 39001. As the California Supreme Court has explained, “Local and regional boards will be more familiar with local conditions, both environmental and economic, than the Board. . . . Thus the districts are asked to evaluate the economic consequences of air quality regulation in specific local situations where concrete relevant evidence may be presented.” Western Oil & Gas Ass’n v. Air Res. Bd., 691 P.2d 606, 619 (Cal. 1984). In sum, although the prevention of air pollution is a matter of statewide concern, air pollution control districts perform primarily local governmental functions. See Lynch v. San Francisco Hous. Auth., 65 Cal. Rptr. 2d 620, 627 (Cal. Ct. App. 1997) (noting that local housing authorities “admittedly address matters of concern to the state . . . but in doing so they function within, and are concerned with, a limited geographic area”).8 8 The District argues that “[a]ir pollution prevention falls under the broad police powers of the states,” and that the delegation of this important power to an air pollution control district makes it an arm of the state. The fact that an entity has enforcement or police powers, however, does not immunize it from suit. As the district court pointed out, municipalities, even though they often carry out or enforce state rules and regulations, are not entitled to sovereign immunity. 1556 BEENTJES v. PLACER COUNTY AIR POLLUTION CONTROL In addition to performing a primarily local function, air pollution control districts are entrusted with a variety of discretionary powers and have substantial autonomy in carrying out their duties.9 For instance, they may adopt their own rules and budgets, establish their own regulatory systems for reducing air contaminants, issue abatement orders, and bring actions to assess civil penalties against individuals who violate air pollution regulations. See Cal. Health & Safety Code §§ 40702, 40709, 40131, 42403, 42450. Districts also may delegate any functions related to implementing transportation control measures to any local agency. Id. § 40717(e). Further, just as California is allowed to implement air qual- Indeed, the fact that an entity provides a valuable public service does not make it an arm of the state. As the Supreme Court has explained: A charitable organization may undertake rescue or other good work which, in its absence, we would expect the State to shoulder. But none would conclude, for example, that in times of flood or famine the American Red Cross, to the extent it works for the public, acquires the States’ Eleventh Amendment immunity. Hess, 513 U.S. at 50 (footnote omitted) (rejecting the argument that the Port Authority is immune from suit because it supports public projects that the State would otherwise have to finance). 9 Although the Mitchell test does not explicitly discuss the concept of autonomy, we previously have incorporated this principle into the “central governmental function” prong. See, e.g., Savage, 343 F.3d at 1044 (noting that in analyzing the second Mitchell factor “we assess the extent to which the state exercises centralized governmental control over the entity” and concluding that Arizona school districts had “enormous autonomy in the management of public education”). Moreover, the consideration of local autonomy as a factor in our analysis is consistent with the practice of other circuits. See, e.g., S.J. v. Hamilton County, 374 F.3d 416, 420 (6th Cir. 2004) (considering as one factor “what degree of control the state maintains over the entity”); Vierling, 339 F.3d at 1314 (considering as one factor “what degree of control the state maintains over the entity”); Wojcik v. Mass. State Lottery Comm’n, 300 F.3d 92, 101 (1st Cir. 2002) (assessing, among other things, “whether the state exerts control over the agency, and if so, to what extent”); Southwestern Bell, 243 F.3d at 939 (same). BEENTJES v. PLACER COUNTY AIR POLLUTION CONTROL 1557 ity standards that are more stringent than federal requirements, see 42 U.S.C. § 7416, regional and local districts have discretion to promulgate and enforce air quality standards that are more stringent than state requirements. See Cal. Health & Safety Code § 41508. Air pollution control districts also have the discretion to balance statewide environmental concerns with potential local economic consequences by granting variances below state standards. Id. § 42350; Western Oil, 691 P.2d at 618. [9] In light of the decentralized structure of air quality enforcement in California, as well as the degree of autonomy enjoyed by local air pollution control districts, we agree with the district court that “while districts derive their authority from the State, they are granted wide latitude to conduct their affairs as they see fit, so long as they maintain standards at least as stringent as those adopted by the State.” In short, the District does not perform a central governmental function and this second prong of the Mitchell test favors a finding that the District is not an arm of the state.10 10 The District argues that it should be considered an arm of the state because we recognized in United States v. Price that an analogous district in Nevada acted under “state” authority when enforcing air pollution regulations. 314 F.3d 417, 421 (9th Cir. 2002). Price is inapposite, however. There, we applied the separate sovereign doctrine to determine that the Double Jeopardy Clause did not bar Price’s prosecution for a violation of the Clean Air Act even though the local district had levied a fine against Price for the same conduct. Id. Determining that an entity acts under the authority of a state as opposed to the federal government in the context of the Double Jeopardy Clause is far different from holding that the entity is an arm of the state under the Eleventh Amendment. Thus, our holding in Price does not compel a finding that the District here enjoys sovereign immunity. Cf. Edelman v. Jordan, 415 U.S. 651, 668 n.12 (1974) (noting that “while county action is generally state action for purposes of the Fourteenth Amendment, a county defendant is not necessarily a state defendant for purposes of the Eleventh Amendment”). The District also cites Sherwin-Williams Co. v. South Coast Air Quality Mgmt. Dist., 104 Cal. Rptr. 2d 288, 302 (Cal. Ct. App. 2001), for the proposition that California law considers an air quality management district 1558 BEENTJES v. PLACER COUNTY AIR POLLUTION CONTROL