WASHINGTON - On Dec. 14, the National Paint & Coatings Association (NPCA) filed a lawsuit in the Superior Court of California challenging California's fee program for volatile organic compound (VOC) emissions authorized by legislative initiative AB 10X and enacted by California Gov. Gray Davis in March 2003. The program directs the state's Air Resources Board (ARB) to impose a "fee" for emissions from consumer products and architectural coatings sold in the state if a manufacturer's total statewide sales will result in the emissions of 250 tons or more per year of VOCs and increases fees for stationary sources (facilities).

"NPCA members operating in California are already burdened with significant emission restrictions and compliance costs," said NPCA Lead Counsel Heidi McAuliffe. "Now, AB 10X has imposed on them arbitrary and unjustified annual fees ranging from $14,000 to $725,000. Such fees amount to an unfair and illegal backdoor tax designed to solve the state's continuing budget deficit."