(c)

1. (1) The board may reduce the diversion requirements of Section 41780 for a rural regional agency, if the rural regional agency demonstrates, and the board concurs, based on substantial evidence in the record, that achievement of the diversion requirements is not feasible because adverse market or economic conditions beyond the control of the rural regional agency prevent it from meeting the requirements of Section 41780.

2. (2) Before a rural regional agency may be granted a reduction in diversion requirements pursuant to paragraph (1), it shall demonstrate that, at a minimum, it has established all of the following regionwide programs:

   1. (A) A source reduction and recycling program or programs designed to handle the predominant classes and types of solid waste generated within the rural regional agency.
   2. (B) A regional diversion and procurement program or programs.
   3. (C) A regional public information and education program or programs.

(d)

1. (1) Notwithstanding Section 40974, any civil penalty imposed on a rural regional agency by the board pursuant to Section 41813 or 41850 shall be imposed only on a member rural city or county that is in violation of this division as a city or county irrespective of its membership in the rural regional agency. If a rural regional agency elects to apportion penalties pursuant to this subdivision, the member jurisdiction to that rural regional agency shall, as a condition of the agreement establishing the rural regional agency, be required to account on an individual jurisdictional basis for their compliance with the diversion requirements of Section 41780, as prescribed by Section 41780.2.

2. (2) In determining whether to impose a penalty on a member of a rural regional agency pursuant to this subdivision, the board may consider all of the following:

   1. (A) The relevant circumstances that resulted in the agency’s failure to achieve the diversion requirements of paragraphs (1) and (2) of subdivision (a) of Section 41780, and whether the member contributed to the circumstances that resulted in the failure to achieve the diversion requirements.
   2. (B) Whether the agency’s joint powers agreement specifies that all liability for fines and penalties rests with the member, with no liability assigned to the agency.
   3. (C) Whether the imposition of penalties on members and not on the agency would provide for flexibility that would allow the agency to resolve the problem that is preventing the members from meeting the diversion requirements.
   4. (D) Limiting penalties to a maximum of ten thousand dollars ($10,000) per day if a member’s failure does not cause other members or the agency to fail to implement programs in the agency’s source reduction and recycling element.