BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1131
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          Date of Hearing:   April 28, 2009

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Wesley Chesbro, Chair
                    AB 1131 (Feuer) - As Amended:  April 20, 2009
           
          SUBJECT  :   Hazardous materials: green chemistry and accidental  
          releases.

           SUMMARY  :   Expands the Department of Toxic Substances Control's  
          (DTSC) pollution prevention program by requiring DTSC to  
          establish a program for life cycle toxics reduction.  Transfers  
          the state's business and area plan program and the accidental  
          release prevention program from California Emergency Management  
          Agency (CAL EMA) to DTSC.  Specifically,  this bill  :
           
          Definitions  :


          1)Defines "chemical of concern" as a substance identified by  
            DTSC pursuant to regulations adopted in accordance with the  
            Green Chemistry law (Health and Safety Code Section 25252) as  
            a chemical of concern.



          2)Defines "life cycle toxics reduction" as an action that causes  
            a net reduction in the use, generation, release, or disposal  
            of a chemical of concern during a product life cycle  
            including, but not limited to, any of the following actions:



             a)   Input substitution by replacing a chemical of concern  
               used in a production unit with a nontoxic or less toxic  
               substance.



             b)   Produce reformulation by substituting an existing end  
               product with a new end product that is nontoxic or less  
               toxic upon use, release, or disposal.











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             c)   Production unit redesign or modification by developing  
               and using production units of a different design than those  
               currently used.



             d)   Production unit modernization by upgrading or replacing  
               existing production unit equipment and methods with other  
               equipment and methods based on the same production unit.



             e)   Improved operation and maintenance of production unit  
               equipment and methods by modifying or adding to existing  
               equipment or methods, including, but not limited to,  
               techniques such as improved housekeeping practices, system  
               adjustments, product and process inspections, or production  
               unit control equipment or methods.



             f)   Recycling, reuse, or extended use of a chemical of  
               concern by using equipment or methods that becomes an  
               integral part of the production unit, including, but not  
               limited to, filtration and other closed loop methods.



          3)Defines "product life cycle" as including, but not limited as,  
            all of the following stages of development and retirement of a  
            product: acquisition of raw materials; bulk material  
            processing; engineering materials production; manufacture;  
            assembly; distribution; use; retirement; disposal of residuals  
            produced in each stage.


           Pollution prevention program expansion  :



          1)Requires DTSC to establish a program for life cycle toxics  
            reduction.











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          2)Requires DTSC to coordinate the activities of all state  
            agencies with responsibilities and duties relating to  
            pollution prevention and green chemistry and to promote  
            coordinated efforts to encourage life cycle toxics reduction.



          3)Requires DTSC to adopt regulations to establish procedures for  
            exempting generators from the pollution prevention  
            requirements where the department determines that no life  
            cycle toxics reduction opportunities exist for the generator.


          4)Requires the California Source Reduction Advisory Committee to  
            evaluate the performance and progress of DTSC's life cycle  
            toxics reduction program.


          5)Requires DTSC to establish a technical assistance and outreach  
            program to promote implementation of life cycle toxics,  
            instead of model source, reduction measures in priority  
            industry categories.



          6)Requires DTSC, in its biennial hazardous waste reduction work  
            plan, to select at least six priority categories of  
            industries, instead of two categories of generators, as  
            defined.



          7)Requires that at least one selected category of industries is  
            a category that consists primarily of businesses affected by  
            one or more actions taken by DTSC pursuant to the Green  
            Chemistry law.
           
          Business and area plan program and Cal ARP program:   Transfers  
          authority to administer the business and area plan program and  
          the California Accidental Release Prevention Program (Cal ARP)  
          from the California Emergency Management Agency (CAL EMA) to  
          DTSC as follows:  

           
          1)Requires all business plans and area plans to meet the  








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            standards adopted by DTSC, rather than by CAL EMA.

          2)Requires DTSC, rather than CAL EMA, and the appropriate  
            administering agency in each city or county to implement the  
            Cal ARP program.



          3)Includes the Office of Health Hazard Assessment (OEHHA) in the  
            list of agencies that must be consulted with when the unified  
            program is developed and implemented.



          4)Requires the Secretary for Environmental Protection  
            (secretary) to oversee and coordinate the development of  
            regulations and policies by related agencies to ensure a  
            consolidated, coordinated, and consistent unified program.


          5)Requires the secretary to oversee and coordinate the  
            development and implementation of regulations and policies for  
            pollution prevention and green chemistry, in so far as they  
            affect the implementation of the unified program.


          6)Requires the secretary to oversee unified program standards  
            and requirements adopted by each state agency to ensure that  
            program requirements of coordination, consolidation, and  
            consistency are effectively achieved.


          7)Requires the secretary to ensure that the realignment of  
            program requirements of the unified program from CAL EMA to  
            DTSC includes oversight of ongoing program development and  
            effective coordination between the CAL EMA's emergency  
            response activities, OEHHA's risk management role, and DTSC's  
            green chemistry program.


          8)Requires that regulations adopted by the former Office of  
            Emergency Services (now CAL EMA) to remain in effect until  
            DTSC amends or revises those regulations.










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          9)Authorizes DTSC to develop materials, such as guidelines and  
            informational pamphlets, to assist businesses and unified  
            program agencies (UPAs) to fulfill their obligations under  
            this article.  Authorizes CAL EMA to develop materials, such  
            as guidelines and informational pamphlets, to assist  
            businesses and UPAs to fulfill their obligations concerning  
            spill and release reporting, area plans, and consolidated  
            contingency plans.  Requires, to the extent necessary, DTSC  
            and the CAL EMA to coordinate the consolidation of these  
            materials.


          10)Makes other conforming changes to realign the business and  
            area plan program and Cal ARP program requirements from CAL  
            EMA to DTSC.

           EXISTING LAW  :

           Pollution prevention program  :  (HSC Section 25244.15 et seq.)

          Requires DTSC to establish and administer a program for  
          hazardous waste source reduction, including the adoption of  
          regulations to do so.

           Business and area plans:   (HSC Section 25503 et seq).

          1)Requires the Office of Emergency Services (now CAL EMA) to  
            adopt, after a public hearing and consultation with the office  
            of the State Fire Marshal and other appropriate public  
            entities, regulations for minimum standards for business plans  
            and area plans.  (HSC Section 25503.)

          2)Requires all businesses, as defined, to establish and  
            implement a business plan for emergency response to a release  
            or threatened release of a hazardous material.

          3)Requires business plans to include: an inventory of chemicals  
            and hazardous materials; emergency response plans and  
            procedures in the event of a reportable release or threatened  
            release of a hazardous material; evacuation plans and  
            procedures, including immediate notice, for the business site;  
            training for all employees in safety procedures in the event  
            of a release or threatened release of a hazardous material.
           
           4)Requires an administering agency (local agency) to establish  








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            an area plan for emergency response to a release or threatened  
            release of a hazardous material within its jurisdiction.

          5)Requires all business plans and area plans to meet the  
            standards adopted by OES.
           
          Cal ARP program  :  (HSC Section 25533 et seq.)

          1)Establishes that the program for prevention of accidental  
            releases of regulated substances adopted by the US  
            Environmental Protection Agency (US EPA), with the additional  
            provisions specified by the state, is the accidental release  
            prevention program for the state (Cal ARP).

          2)Requires OES and the appropriate administering agency in each  
            city or county to implement the program.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :

          This bill has essentially two major components:  1) Expands  
          DTSC's pollution prevention (P2) program by adding a life cycle  
          toxics reduction program and 2) Transfers the business and area  
          plan programs and the California Accidental Release Prevention  
          (Cal ARP) from Cal EMA, to DTSC.

           Pollution prevention program expansion:   Current pollution  
          prevention law requires hazardous waste generators to seriously  
          consider source reduction as the preferred method of managing  
          hazardous waste.  This bill adds a life cycle toxics reduction  
          component to the program, thus shifting the focus of toxics  
          reduction from the end of a product's useful life to reduction  
          of toxics along the entire lifetime of the product (including  
          manufacture, use, disposal, etc.)  According to the author's  
          office, "AB 1131 addresses the current paradigm shift in  
          California's chemical policies from a source reduction strategy  
          to a more lifecycle-focused approach.  Since the adoption of SB  
          14 (Roberti; 1989) that incorporated this source reduction focus  
          into California chemicals policy, it has become clear that  
          simply reducing hazardous waste is not sufficiently protective  
          of public health and the environment.  AB 1131 expands DTSC's  
          pollution prevention program from simple waste reduction to  
          lifecycle toxics reduction.  Given the regulatory tools  
          available to DTSC under AB 1879 and SB 509 as part of the Green  








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          Chemistry program, it is essential that existing technical  
          assistance, such as the pollution prevention program, be  
          flexible enough to aid industries as they transition to safer  
          alternatives and products.  AB 1131 also expands the number of  
          industries eligible for assistance from 2 to 6 and adds  
          industries affected by AB 1879 and SB 509 as a category for  
          inclusion in the program."
           
          Green Chemistry recommendations  :  In December, 2008, DTSC  
          released its California Green Chemistry Initiative:  Final  
          Report, which included six policy recommendations for  
          establishing a comprehensive green chemistry program in  
          California.  Last year, the Governor signed AB 1879 and SB 509  
          into law, which enacted two of the six recommendations.  One of  
          the additional recommendations was "Expand Pollution Prevention  
          and product stewardship programs to more business sectors to  
          refocus additional resources on prevention rather than clean up;  
          Broaden the program to incorporate a green chemistry and  
          engineering design approach? as opposed to the current focus on  
          end-of-pipe hazardous waste generation; [and] Add a new  
          dimension to California's Accidental Release Program (Cal/ARP)  
          which works to prevent accidental release of regulated  
          substances.  By adding a pollution prevention planning  
          component, the Cal/ARP program can increase its effectiveness  
          for emergency response preparedness."  This bill attempts to  
          implement these, and other, recommendations.
           
          Source Reduction Advisory Committee recommendations  :  The Source  
          Reduction Advisory Committee (committee) was established under  
          SB 1916 of 1998 and has been working with DTSC since then to  
          provide advice on its pollution prevention (P2) program.  One of  
          the committee's charges is to provide advice on legislative  
          improvements to advance pollution prevention.  In October, 2008,  
          the committee recommended replacing references to source  
          reduction or reduction in the generation of hazardous waste with  
          a more holistic term; replacing references to hazardous waste  
          "generators" with a broader, more appropriate term; focusing  
          more on materials and use of chemicals, as well as multimedia  
          impacts; and expand the pool of possible business sectors in  
          which to do a project.  This bill attempts to implement these,  
          and other, recommendations.

           Limited to chemicals of concern  :  As drafted, the life cycle  
          toxics reduction program would be limited to "chemicals of  
          concern."  Will this limitation hamper DTSC's ability to create  








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          a comprehensive life cycle toxics reduction program?

           Hazardous materials business plan program  :  Owners or operators  
          of a facility are required to complete and submit a hazardous  
          material business plan (business plan) if the facility handles a  
          hazardous material or mixture containing a hazardous material  
          over a certain amount.  Business plans must contain detailed  
          information on the:  1) hazardous materials at a facility; 2)  
          emergency response plans and procedures in the event of a  
          reportable release or threatened release of a hazardous  
          material; and, 3) training for employees in safety procedures in  
          the event of a release or threatened release of a hazardous  
          material.  The intent of the business plan is to provide basic  
          information necessary for use by first responders in order to  
          prevent or mitigate damage to the public health and safety and  
          to the environment from a release or threatened release of a  
          hazardous material and to satisfy federal and state Community  
          Right-To-Know laws.
           
           Cal ARP Program:  The Cal ARP program was established to prevent  
          accidental releases of substances determined to potentially pose  
          the greatest risk of immediate harm to the public and the  
          environment.  The planning activities required by Cal ARP are  
          intended to minimize the possibility of an accidental release by  
          encouraging engineering and administrative controls.  The  
          program is further intended to mitigate the effects of an  
          accidental release, should one occur, by requiring an emergency  
          response program.  Certified unified program agencies (CUPAs),  
          participating agencies, or designated agencies (collectively  
          called Unified Program Agencies) are authorized to implement and  
          enforce the Cal ARP program in California.

           Cal ARP vs. business plans  :  The hazardous chemical reporting  
          requirements under H&SC, Chapter 6.95, Article 1 (business  
          plan), are separate and distinct from those under Article 2 of  
          the same chapter (Cal ARP).  Business plan reporting applies to  
          all hazardous substances and includes the types and amounts of  
          hazardous chemicals, location and storage information, and  
          facility contact information.  The Cal ARP risk management  
          program applies to a distinct set of regulated substances.  The  
          Cal ARP program requirements go beyond emergency planning and  
          reporting; they require a holistic approach to accident  
          prevention and mitigation.  Elements required under the risk  
          management program regulations vary for individual stationary  
          sources, but generally include a hazard assessment, a prevention  








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          program, an emergency response program, and a management system.

           Streamlining Cal EMA/ OES  :  As part of the Governor's efforts to  
          streamline the state's emergency response capabilities, in 2006  
          he signed AB 38, which combined the Office of Emergency Services  
          (OES) and the Governor's Office of Homeland Security (OHS) into  
          a new cabinet-level California Emergency Management Agency (Cal  
          EMA).  The merged agency has the responsibility of overseeing  
          and coordinating emergency preparedness, response, recovery and  
          homeland security activities in the state, effective January 1,  
          2009.
           
          Further streamlining of the Cal ARP Program.:


           In January 2009, the administration indicated its intent to move  
          Cal ARP from Cal EMA to DTSC, for purposes of improving  
          consistency and efficiency.  Cal ARP currently resides within  
          Cal EMA, and encompasses planning activities related to the  
          prevention of accidental releases of hazardous substances and  
          cleanup activities should a spill occur.  DTSC generally  
          regulates hazardous waste management, oversees contaminated  
          hazardous substance site cleanups, and implements pollution  
          prevention programs.



          On the administration's recommendation to transfer hazardous  
          material emergency activities to DTSC, the Legislative Analysts  
          Office commented that, "The proposal appears consistent with  
          past legislative action to consolidate the implementation of  
          various hazardous materials management programs previously  
          administered by multiple state and local entities.  This action  
          has reduced fragmentation in program implementation and improved  
          program effectiveness.  We find that the proposal has merit and  
          recommend that it be adopted."

           REGISTERED SUPPORT / OPPOSITION  :

           Support
          
          Breast Cancer Fund
          California Association of Environmental Health Administrators  
          (CAEHA)









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           Opposition
           
          Western States Petroleum Association (WSPA).
           

          Analysis Prepared by  :    Shannon McKinney / E.S. & T.M. / (916)  
          319-3965