BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Tom Torlakson, Chairman 258 (Krekorian) Hearing Date: 8/30/07 Amended: 8/27/07 Consultant: Miriam Barcellona IngenitoPolicy Vote: EQ 5-2 -1- AB 258 (Krekorian) Page 2 _________________________________________________________________ ____ BILL SUMMARY: AB 258 would create the Preproduction Plastic Debris Program under the State Water Resources Control Board (SWRCB). _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2007-08 2008-09 2009-10 Fund Reissue General Industrial $65 $65 Special* Permit Review, Process & Issue$91 $78 Special* Notices of Intent Non-exposure certifications/ $156 $299 Special* Notice of Non-applicability Review Annual Reports $520 $520 Special* Inspections and enforcement $408 $2,042 $2,042Special* Contracts $137 $87 $87 Special* Implementation (general) $130 $293 $293Special* *Waste Discharge Permit Fund, funded through fees. _________________________________________________________________ ____ STAFF COMMENTS: Suspense file By January 1, 2009, AB 258 would require SWRCB and regional water quality control boards (regional boards) to implement a program to control the discharge of preproduction plastic from point and nonpoint sources. AB 258 would specify minimum control measures and minimum requirements. AB 258 would also require SWRCB, at a minimum, to require specified best management practices in all permits issued under the national pollutant discharge elimination system (NPDES) program that regulate plastic manufacturing, handling, or transportation facilities. AB 258 would require SWRCB to establish criteria for submittal for no exposure certification requirements subject to specified federal regulations and would require no exposure certification to be obtained annually. AB 258 would require any entity that manufactures, handles, distributes, or transports AB 258 (Krekorian) Page 3 preproduction plastic to apply for coverage under a general permit for storm water discharges associated with industrial activities. The general permit fees would be used by SWRCB to implement this chapter. SWRCB estimates that there are approximately 2,700 plastics facilities statewide, but that only a few (no more than one-third) of these facilities are currently enrolled under the general industrial permit. The current fee for facilities enrolled under the General Industrial Storm Water Permit is $700 per year. SWRCB does not have a current fee for no exposure, but for the purposes of providing staff with an estimate for this bill, used $200 per year. SWRCB estimates that statewide costs to implement this bill would include seven positions in the first year, 20.25 positions in the second year and seven and one-quarter position annually thereafter. The costs include re-issuance of the general industrial storm water permit with expanded coverage to include all preproduction plastics facilities or issuance of a separate general permit for plastics facilities, development of no-exposure criteria, enrollment of facilities in the program, inspections, and enforcement. Contract costs would amount to $137,000 in the first year, and $162,000 in subsequent years; this accounts for database development, student assistance, travel to complete inspections, and possible judicial enforcement through the Attorney General's Office. Author's amendments (taken on Suspense) would delete the requirement for SWRCB and regional boards to implement a program to control the discharge of preproduction plastic from point and nonprofit sources. Instead, it would require SWRCB to include criteria for submitting a no exposure certification pursuant to specified federal regulations in all NPDES permits regulating plastic manufacturing, handling, or transportation facilities. Those facilities that satisfy the no exposure certification criteria are conditionally exempt from specified federal permitting requirements. The no exposure certification would be required every five years or more frequently as determined by SWRCB or a regional board. The author's amendments appear to address important policy issues but would not significantly reduce costs. AB 258 (Krekorian) Page 4