BILL ANALYSIS Ó AB 408 Page 1 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. AB 408 Page 2 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 Page 3 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. AB 408 Page 4 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