BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 408
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          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 408 (Wieckowski) - As Amended:  April 12, 2011 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 9-0

          Urgency:     Yes                  State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill is described by the policy committee as an omnibus 
          hazardous materials and waste bill.  The bill makes changes to 
          several disparate statutes concerning (i) emergency response to 
          hazardous substances, (ii) hazardous waste transport, (iii) 
          hazardous materials reporting and (iv) mandatory minimum 
          penalties for publicly owned treatment works.  Specifically, 
          this bill:

          1)Expands the types of circumstances under which a local 
            government may recover costs for emergency response related to 
            hazardous substances.

          2)Expands the definition of "hazardous substance" for purposes 
            of local cost recovery.

          3)Allows, under limited circumstances, a transporter of 
            hazardous waste to use the consolidated manifest procedure for 
            the receipt of one shipment of used oil from a generator whose 
            identification number has been suspended.

          4)Allows the local Certified Unified Program Agency (CUPA) to 
            exempt reporting for hazardous material quantities less than 
            the federal Emergency Planning and Community Right-to-Know Act 
            (EPCRA) threshold levels for low hazard materials.

          5)Expands the compliance project "in lieu" provisions from the 
            mandatory minimum penalty violations provisions of the 
            Porter-Cologne Water Quality Control Act for publicly owned 
            treatment works (POTWs) serving a population of 20,000 or 
            fewer persons.








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           FISCAL EFFECT  

          1)Potential increase in costs recovered by local governments, 
            possibly in the millions of dollars annually, for their 
            responses to hazardous waste emergencies.

          2)Minor, absorbable costs to the Department of Toxic Substances 
            Control (DTSC) to receive and respond to additional notices of 
            suspended hazardous waste generator numbers.

          3)Potential loss of penalty revenue, likely in the tens of 
            thousands of dollars annually.  (Waste Discharge Permit Fund 
            and Cleanup and Abatement Fund)

           COMMENTS  

           1)Rationale.   The author contends this bill:
             a)   Allows locals governments to recover the cost of 
               emergency response to toxic spills that originate in the 
               public right of way.

             b)   Enables hazardous waste transporters to remove 
               potentially harmful loads of used oil even if the generator 
               has failed to renew his or her identification number. 

             c)   Resolves inconsistencies between state and federal 
               hazardous waste laws to reflect changed business practices.

             d)   Implements a recommendation from the State Water 
               Resources Control Board (SWRCB) report to increase from 
               10,000 persons to 20,000 the population of a community that 
               qualifies as a "small community" for purposes of 
               establishing mandatory minimum penalties that allow remedy 
               of water quality violation in lieu of monetary fine.

           2)Background  .

              a)   Cost Recovery for Emergency Response to Hazardous 
               Substance Spills.   According to the policy committee 
               analysis, in 2010, there were over 3,100 reported chemicals 
               spills in California.  In some cases, these spills may 
               originate on private property.  In other instances, the 
               spills originate in transit in a public right of way.









                                                                  AB 408
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               Under existing law, local governments can recover the cost 
               of emergency response only if the incident results in 
               either an evacuation "beyond the property where the 
               incident originates" or the spread of hazardous substances 
               "beyond the property of origin."  If the incident 
               originates on a public right-of-way, technically, it did 
               not spread beyond the property where the incident 
               originated.  Similarly, an incident on a large property may 
               require evacuation in an area well beyond the property, 
               even though the hazardous substance may not spread beyond 
               the property of origin.  In either case, the ability of 
               local government to recover the cost of emergency response 
               is questionable.

              b)   California IDs and Hazardous Waste Transport  .  DTSC 
               issues a California identification number (ID) to 
               businesses that generate, transport or dispose of 
               significant quantities of hazardous waste regulated by the 
               state of California. It is unlawful for any person to carry 
               on, or engage in, the transportation of these hazardous 
               wastes without a valid California ID, which must be renewed 
               annually.  These California ID numbers, which must be 
               included on any manifest for transport of hazardous waste, 
               allow DTSC to track hazardous waste from its origin, during 
               its transportation, and at its final place of disposal.  
               DTSC deactivates California ID numbers that are not renewed 
               annually.  A holder of a deactivated California ID number 
               can apply for reactivation of his or her identification 
               number. However, it takes DTSC three to five business days 
               to process such reactivation requests.
                
                Statute authorizes certain California hazardous wastes to 
               be transported using a consolidated manifest-a type of 
               documentation that allows a hazardous waste transporter to 
               combine hazardous wastes shipments from multiple generators 
               on one consolidated manifest.

              c)   Hazardous Substance Reporting.   Businesses that utilize 
               hazardous materials must have a response plans for releases 
               of specified hazardous materials and provide an annual 
               inventory of hazardous materials handled to certified local 
               enforcement agencies, known as CUPAs.  Among other 
               purposes, these plans ensure emergency response personnel 
               have advance knowledge of hazards they may confront, such 
               as in response to a fire.  








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              d)   Mandatory Minimum Penalties for Small Disadvantaged 
               Communities.   Existing law authorizes SWRCB or a regional 
               water quality control board, in lieu of assessing all or a 
               portion of the mandatory minimum penalties for water 
               quality violations, to require a POTW serving a small 
               community of 10,000 or less to spend an amount up to the 
               equivalent of the penalty towards the completion of a 
               compliance project proposed by the POTW.

           3)Support.   This bill is supported by the California Association 
            of Environmental Health Administrators and the Independent 
            Waste Oil Collectors and Transporters Association.

           4)Opposition  .  There is no registered opposition to this bill.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081