BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Tom Torlakson, Chairman 1879 (Feuer) Hearing Date: 7/14/08 Amended: 6/17/08 Consultant: Miriam Barcellona IngenitoPolicy Vote: EQ 5-2 Page 2 AB 1879 (Feuer) _________________________________________________________________ ____ BILL SUMMARY: AB 1879 would create a new article in the Health and Safety code, entitled "Chemicals of Concern in Consumer Products." Under this article, the Department of Toxic Substances Control (DTSC) would be authorized to regulate seven chemicals in a consumer product or restrict the sale or use of a product that contains a chemical of concern, as specified. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2008-09 2009-10 2010-11 Fund Scoping/research/regulation > $100-$200 > $100-$200 General Program implementation See staff comments (out-year costs)General Support staff/equipmentunknown, potentially significant General _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. AB 1879 would require DTSC to develop a comprehensive program to identify the risks of the seven specified chemicals, design approaches for removing these chemicals of concern from commerce if warranted, and other actions necessary to prevent individuals from being exposed to these chemicals. DTSC estimates that in order to implement the provisions of AB 1879 and regulate the seven chemicals of concern listed in the bill, it will need to adopt regulations, develop the program (which includes performance measures, strategic planning, education and outreach to public and industry), enforce, and obtain technical support in the form of legal services, equipment, laboratory resources, and laboratory methods. DTSC estimates that the first two years would be dedicated to scoping the program and determining the amount of consumer products that would be included. Manufacturers would also need to be identified. DTSC would need to develop strategic consumer products to target (e.g., children's products, food packaging) and identify laboratory testing needs. In the first two years, DTSC also estimates it would develop education and outreach Page 3 AB 1879 (Feuer) efforts as well as analytical screening tools. Finally, DTSC would need to develop a website and start developing baseline. DTSC estimates its costs to do this would be one to two position years and $100,000 to $200,000. Given the work that it estimates needs to be done in that time, this estimate appears to be low. In 2011-2012, DTSC estimates it would initiate program implementation, which would require seven to nine position years and between $700,000 and $900,000. DTSC estimates it would continue research, development of baseline of information and development of its strategic direction. DTSC estimates it would begin the implementation with targeted pilot programs. In 2012-12, DTSC estimates it would move into a broader implementation and would require 13 to 16 position years and $1.3 to $1.6 million. DTSC expects it would begin to fully implement the provisions of AB 1879 in 2013-2014 with an additional six to 10 position years, for a total of $1.9 million to $2.3 million annually. DTSC did not provide an estimate for support staff, field or analytical lab equipment needs, specialized staff needs (i.e. peace officer equipment), lab method development, and lab staff resources to conduct sample preparation and analysis. These costs could be significant. Staff notes that while this new article is placed in the codes in a location that may suggest the use of Hazardous Waste Control Account (HWCA) monies could be used to fund its provisions, the uses prescribed in this bill do not appear to be consistent with that fund and there is not a clear nexus with those fee payers. Hazardous waste fee payers fund the HWCA, which is used by DTSC for hazardous waste administration and enforcement. Staff notes that the Toxic Substances Control Account (TSCA) is used for the administration and implementation of the provisions of law governing hazardous substance response actions, railroad safety and emergency planning and response, unreimbursed removal and remedial action costs, for allocation to the Office of Environmental Health Hazard Assessment, for the purchase of hazardous substance response equipment and other preparations for response to a release of hazardous substances, for the costs of health effects studies, and for the payment of the principal Page 4 AB 1879 (Feuer) of bonds sold. Revenues in the fund are from fines, fees, penalties and reimbursements from specified sections of law. The use of TSCA to fund the provisions of this bill is not possible since this activity is not included in statute as an authorized use. Additionally, expenditures from TSCA are anticipated exceed revenues in 2008-9 as they did in 2007-08 and the current projected reserve for economic uncertainties in this account is about $17.9 million, assuming all of the actions currently in the budget bill are signed into law.