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Socioeconomic Impact Analysis Policy
Learn how the Air District studies economic and community impacts when it creates or updates air quality rules. These studies help the Air District Board of Directors make informed decisions.
Why the Air District Does This Work
The Air District Board of Directors adopts rules that control pollution from many different sources. Under California law (Health and Safety Code section 40728.5), the Air District must consider the economic impacts of the new or updated rules on residents, businesses, and the regional economy. The law says the Air District must:
- Study the socioeconomic impacts of adopting, changing, or removing a rule when the information is available.
- Make a good‑faith effort to reduce negative economic impacts.
The Policy for Socioeconomic Impact Analysis was adopted by the Board of Directors on September 2, 2026.
What “Socioeconomic Impact” Means
The law defines what types of different information and impacts need to be considered when assessing “socioeconomic impacts,” including information such as:
- Which industries and businesses (including small businesses) would be affected;
- How the rule may affect jobs and the Bay Area economy;
- The likely costs for businesses to comply with the new requirements, and;
- Whether there are cheaper alternatives to the proposed changes.
How the Air District Studies These Impacts
The Air District often works with outside experts to study how new requirements may change economic activity in the region. This analysis usually covers how businesses or organizations would be affected; determining economic value these groups bring to the Bay Area; figuring out the costs they may face to comply with the rule; and, how the rule might affect their future business performance.
The Air District sometimes provides additional information beyond what the law requires. This supplemental work can provide useful information and context: it often includes modeling of health and equity benefits, expansive and detailed assessments of potential economic impacts, and deeper analysis of how rules may affect different groups and communities.
Examples of Recent Expanded Analyses
- 2023 Amendments to Regulation 9: Inorganic Gaseous Pollutants, Rule 4: Nitrogen Oxides from Natural Gas-Fired Furnaces (Rule 9-4) and Regulation 9: Inorganic Gaseous Pollutants, Rule 6: Nitrogen Oxides Emissions from Natural Gas-Fired Boilers and Water Heaters (Rule 9-6)
- 2025 Amendments to Regulation 5: Open Burning and Regulation 6: Particulate Matter, Rule 3: Wood-burning Devices (Rule 6-3)
- Woodsmoke White Paper: Appendix B – Emissions Inventory, Air Modeling, and Estimated Health Impacts
- Socioeconomic Impact Analysis of Amendments to Regulation 5
- Socioeconomic Impact Analysis of Amendments to Rule 6-3
Meetings, Workshops and Events
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Last Updated: 9/23/2026