BILL ANALYSIS
AB 1188
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Date of Hearing: April 28, 2009
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Wesley Chesbro, Chair
AB 1188 (Ruskin) - As Introduced: February 27, 2009
SUBJECT : Hazardous material: use of penalties payments.
SUMMARY : Revises a variety of programs funded by the Toxic
Substances Control Account (TSCA) used by the Department of
Toxic Substances Control (DTSC). Specifically, this bill :
1)Toxic Substances Control Account (TSCA)
Expands the potential uses of administrative penalties
assessed by DTSC and deposited in TSCA to include the Orphan
Share Reimbursement Trust Fund (not currently funded) and the
Pollution Prevention Technology Assistance Grant Fund (created
by this bill) and other DTSC pollution prevention activities.
2)Hazardous Waste Source Reduction Management.
a) Creates the Pollution Prevention Technology Assistance
Grant Fund, to receive General Funds appropriated by the
Legislature, administrative penalties from TSCA, and
related interest.
b) Provides that the money from the Pollution Prevention
Technology Assistance Grant Fund can be used for grants to
assist small business in purchasing pollution prevention
equipment.
EXISTING LAW:
1)Creates the Toxic Substances Control Account (TSCA) in the
General Fund to support activities of the Department of Toxic
Substances Control (DTSC). The fund is receives revenue from
the assessment of the environmental fee collected by the Board
of Equalization, administrative penalties assessed by DTSC and
other agencies, and reimbursements and interest.
2)Establishes a variety of accounts within TSCA, including the
Site Remediation Account and the Expedited Site Remediation
Trust Fund, among others.
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3)Establishes in the Hazardous Waste Source Reduction Management
and Review Act, which requires that generators of hazardous
waste prepare and submit plans to DTSC designed to reduce
their production of waste.
FISCAL EFFECT : Unknown.
COMMENTS :
1)Pollution Control Technology . According to the author, many
small businesses could reduce their hazardous wastes by using
new technologies, but are unable to afford the capital costs.
For example, auto repair shops frequently use organic solvents
to clean parts; a water-based system would release fewer
toxins, but is costly to install. Dry cleaners frequently use
perchloroethylenes in their process; a less toxic alternative
is available, but costly. This measure would create a funding
source to assist these small businesses.
2)TSCA . TSCA is one of the main accounts that funds DTSC. The
fund is capitalized by revenues from the assessment of the
environmental fee collected by the Board of Equalization,
administrative penalties assessed by DTSC and other agencies,
and reimbursements and interest. The fund is available upon
appropriation by the Legislature. This bill expands the uses
of excess penalty revenue deposited in TSCA to be transferred
to other funds to support the Orphan Share reimbursement
process, DTSC's efforts to develop pollution prevention
technologies, and a new grant program. Statute sets spending
limits for many of the programs administered out of TSCA, thus
the new uses as proposed by the bill would likely be from
excess penalty.
3)Pollution Prevention . This bill builds upon DTSC's exiting
Pollution Prevention Program (P2). It allows DTSC to
establish a grant program, primarily using transferred penalty
revenue, to help small businesses buy pollution prevention
equipment. P2 has been shown to be one of the most effective
control strategies. The philosophy of eliminating or reducing
hazardous substances from use is the most efficient way to
ensure that they do not cause harm to workers, consumers, the
general public or the environment. However, DTSC contends
that the one major impediment that stands in the way of more
wide scale implementation of these successful P2 strategies is
the availability of financial resources to fund investment in
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new technology.
4)Orphan Share Reimbursement Trust Fund (OSRTF). The
remediation cost of hazardous waste sites generally must be
paid by the parties responsible, either directly or
indirectly, for the release of hazardous substances that
caused the site to be so classified. In many cases, however,
responsible parties (RPs) either cannot be identified, do not
exist anymore, or do not have any financial assets to help pay
for remediation. Therefore, in 1999, the OSRTF was enacted
(Health and Safety Code Chapter 6.8) to provide responsible
parties the ability to recoup some of the cleanup costs
attributable to insolvent and defunct parties. The concept
was to provide a fund that could receive funds from RPs
collectively that could pay for the 'orphan share' of the
share of a cleanup where there is not an identified or viable
RP. However, to date there is no funding mechanism and the
account has never been funded.
5)Related Legislation :
a) AB 2729 (Ruskin), Chapter 644, Statutes of 2008,
contained the provision of AB 1188 when it was considered
in the ESTM committee in 2008 however the provisions where
removed prior to final action on the bill.
b) AB 1131 (Feuer), 2009, expands the pollution prevention
program within DTSC to reduce the production and use of
hazardous materials. This bill is awaiting action in the
Assembly ESTM committee.
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REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Professional Scientist
Opposition
None on file.
Analysis Prepared by : Bob Fredenburg / E.S. & T.M. / (916)
319-3965