BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 681
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          Date of Hearing:   March 22, 2011

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
               AB 681 (Wieckowski) - As Introduced:  February 17, 2011

                                  PROPOSED CONSENT
           
          SUBJECT  :   EMERGENCY RESPONSE: HAZARDOUS SUBSTANCES: COSTS

           KEY ISSUE  :  SHOULD LOCAL GOVERNMENTS NO LONGER BE PRECLUDED FROM 
          RECOVERING THEIR COSTS FOR EMERGENCY RESPONSE TO HAZARDOUS 
          SUBSTANCE SPILLS WHEN THE SPILL IMPACTS A PUBLIC RIGHT-OF-WAY OR 
          OTHERWISE IS NOT CONTAINED TO THE PROPERTY OF THE PARTY 
          RESPONSIBLE FOR THE SPILL?

           FISCAL EFFECT  :  As currently in print this bill is keyed 
          non-fiscal.

                                      SYNOPSIS
          
          According to the author and sponsor, current law unnecessarily 
          limits the ability of local government to recover costs 
          associated with emergency response to hazardous material spills 
          based on whether the spill was contained to the property of the 
          responsible party.  They contend that spills of hazardous 
          materials frequently occur on or spread to public right-of-ways 
          and other properties, necessitating the services of city or 
          county hazardous materials teams, yet local government is 
          precluded from recovering their emergency response expenses 
          unless the spill is contained to the property of the responsible 
          party.  This non-controversial bill seeks to expand local cost 
          recovery to incidents that result in an evacuation from the 
          building, structure, property, or public right-of-way where the 
          incident originates, or that result in the spread of hazardous 
          substances or fire beyond the building, structure, property, or 
          public right-of-way where the incident originates.  The bill 
          also changes the definition of "hazardous substance" for the 
          purpose of these provisions to make the definition more 
          consistent under the Health and Safety Code.  There is no known 
          opposition to this bill.

           SUMMARY  :  Enables local government cost recovery for emergency 
          response to hazardous substances spills under a wider range of 
          circumstances.  Specifically,  this bill  :   








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          1)Provides that those expenses of an emergency response 
            necessary to protect the public from a real and imminent 
            threat to health and safety by a public agency to confine, 
            prevent, or mitigate the release, escape, or burning of 
            hazardous substances, as defined, are a charge against any 
            person whose negligence causes the incident, if either of the 
            following occurs:

             a)   Evacuation from the building, structure, property, or 
               public right-of-way where the incident originates is 
               necessary to prevent loss of life or injury.

             b)   The incident results in the spread of hazardous 
               substances or fire posing a real and imminent threat to 
               public health and safety beyond the building, structure, 
               property, or public right-of-way where the incident 
               originates.

          2)Expands the definition of "hazardous substance", for the 
            purposes of these provisions, to include those listed by 
            subdivision (q) of Section 25501 of the Health and Safety 
            Code.

           EXISTING LAW  :  


          1)Provides that those expenses of an emergency response 
            necessary to protect the public from a real and imminent 
            threat to health and safety by a public agency to confine, 
            prevent, or mitigate the release, escape, or burning of 
            hazardous substances, as defined, are a charge against any 
            person whose negligence causes the incident, if either of the 
            following occurs: 

             a)   Evacuation beyond the property where the incident 
               originates is necessary to prevent loss of life or injury. 

             b)   The incident results in the spread of hazardous 
               substances or fire posing a real and imminent threat to 
               public health and safety beyond the property of origin.  
               (Health and Safety Code Section 13009.6(a).  All references 
               are to this Code unless otherwise noted.)  










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          2)Requires deduction of the amount of any reimbursement for 
            eligible costs received by a public agency pursuant to Chapter 
            6.8 (commencing with Section 25300) of Division 20 of the 
            Health and Safety Code from any amount otherwise recoverable 
            under this section.  (Section 13009.6(b).)  

          3)Defines "hazardous substance" to mean any hazardous substance 
            listed in Health and Safety Code Section 25316 or in Section 
            6382 of the Labor Code.  (Section 13009.6(c).)  


          4)Pursuant to Section 25501(q), also defines "hazardous 
            substance" to mean any substance or chemical product for which 
            one of the following applies:

             a)   The manufacturer or producer is required to prepare a 
               MSDS for the substance or product pursuant to the Hazardous 
               Substances Information and Training Act (Chapter 2.5 
               (commencing with Section 6360) of Part 1 of Division 5 of 
               the Labor Code) or pursuant to any applicable federal law 
               or regulation.

             b)   The substance is listed as a radioactive material in 
               Appendix B of Chapter 1 of Title 10 of the Code of Federal 
               Regulations, maintained and updated by the Nuclear 
               Regulatory Commission.

             c)   The substances listed pursuant to Title 49 of the Code 
               of Federal Regulations.

             d)   The materials listed in subdivision (b) of Section 6382 
               of the Labor Code.

           COMMENTS  :  According to the author and sponsor, current law 
          unnecessarily limits the ability of local government to recover 
          costs associated with emergency response to hazardous material 
          spills based on whether the spill was contained to the property 
          of the responsible party.  They contend that spills of hazardous 
          materials frequently occur on or spread to public right-of-ways 
          and other properties, necessitating the services of city or 
          county hazardous materials teams, yet local government is 
          precluded from recovering their emergency response expenses 
          unless the spill is contained to the property of the responsible 
          party.  This non-controversial bill seeks to expand local cost 
          recovery to incidents that result in an evacuation from the 








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          building, structure, property, or public right-of-way where the 
          incident originates, or that result in the spread of hazardous 
          substances or fire beyond the building, structure, property, or 
          public right-of-way where the incident originates.

           Limitations on recovery of emergency response expenses.   Under 
          existing law, cost recovery for emergency response is available 
          only if the incident either results in (1) an evacuation "beyond 
          the property where the incident originates" or (2) the spread of 
          hazardous substances "beyond the property of origin."  (Section 
          13009.6(a).)  In both cases, the operative word is "beyond."  
          However, if the incident originates on a public right-of-way 
          (e.g. a tanker truck spills hazardous materials on a public 
          highway), existing law arguably does not allow cost recovery 
          because evacuation of the affected section of the highway does 
          not constitute evacuation "beyond the property where the 
          incident originates", and a spill on the highway may not 
          necessarily spread "beyond" the highway.  Similarly, if the 
          incident originates in a building or structure on a large 
          property, requiring emergency response, but the evacuation or 
          spread of hazardous materials remains within the confines of the 
          large property, it would appear that local cost recovery for the 
          emergency response is precluded because neither the evacuation 
          nor spread occurred strictly "beyond the property of origin."

          The California Association of Environmental Health 
          Administrators, the sponsor of the bill, contends that there 
          have been numerous incidents where local governments have, in 
          fact, been prevented from recovering their emergency costs under 
          existing law.  They cite the following examples: 

              Transportation accidents represent a significant number 
              of responses these often require sections of the road 
              and on occasion residences to be closed or evacuated.  
              In 2005, a tanker carrying chrome etch failed, causing 
              the evacuation of several houses and closing the freeway 
              for several hours in San Diego.  The county was unable 
              to get cost recovery.  

              In fall of 2010, the San Diego Hazardous Incident 
              Response Team responded to a commercial laundry in North 
              County where the operator had inadvertently mixed two 
              incompatible chemicals into the same tank during an 
              off-loading operation.  The incident resulted in the 
              evacuation of the facility but no other properties or 








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              public right of ways were affected.  The incident took 
              many hours to resolve, but it was ineligible for cost 
              recovery under existing law.

              In the city of Artesia, an ice company had several 
              incidents involving the release of the chemical compound 
              NH4. The release was confined to the property of origin 
              so the current law would not allow cost recovery.  At a 
              supermarket warehouse in El Monte, there was another NH4 
              release that required the building to be evacuated but 
              did not go beyond the property of origin. 

              Many calls in response to mercury releases result in 
              evacuation of the facility or building, but not the 
              entire property, and may not affect offsite properties.  
              ÝTwo examples in San Diego County cited.]  Many of these 
              incidents result in resource and time intensive 
              responses without reimbursement.  

              There have also been incidents that trigger emergency 
              response because of an offsite release that does not 
              warrant an evacuation.  An example is when a hazardous 
              substance enters a storm drain has an offsite impact but 
              does not result in an offsite evacuation. 
           
          This bill expands local cost recovery for emergency response to 
          cover additional circumstances, but does not change the 
          liability standard for recovery.   To address the type of 
          incidents described above, this bill would expand local cost 
          recovery to incidents that result in an evacuation from the 
          building, structure, property, or public right-of-way where the 
          incident originates, or that result in the spread of hazardous 
          substances or fire beyond the building, structure, property, or 
          public right-of-way where the incident originates.  Cost 
          recovery would therefore be permitted when the incident resulted 
          in an evacuation from or spread of hazardous substances beyond a 
          building or structure where the incident originated, even when 
          the evacuation or spread of hazardous substances remains within 
          the overall property.  Cost recovery would also be permitted 
          where the incident originated on and required evacuation of a 
          public right-of-way-- a frequent occurrence in the case of 
          vehicle accidents involving the transport of hazardous 
          materials, according to proponents of the bill.

          Importantly, this bill does not change the standard of liability 








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          for recovery under existing law because costs remain a charge 
          against a person only if the incident was caused by that 
          person's negligence.  

          Because incidents involving evacuation or spread of hazardous 
          materials that threaten public health and safety frequently 
          require emergency response by local government regardless of 
          whether the hazardous materials migrate "beyond" the boundaries 
          of the property of origin, it is reasonable that the ability of 
          local agencies to recover their costs from the person whose 
          negligence caused the incident should not be limited on this 
          basis.  

           This bill also changes the definition of "hazardous substance" 
          for these provisions.   According to the sponsor, this bill 
          changes the definition of "hazardous substance" to make it 
          "consistent with other elements" within the Health and Safety 
          Code.  Under existing Section 13009.6, the definition of 
          "hazardous substance" means any hazardous substance listed in 
          Section 25316 or Section 6382 of the Labor Code.  This bill 
          expands that definition by adding those substances described in 
          Section 25501(q) of the Health and Safety Code-which, it should 
          be noted, cross-references those materials listed in subdivision 
          (b) of Section 6382 of the Labor Code.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Environmental Health Administrators 
          (CAEHA)
          California Fire Chiefs Association
          California Police Chiefs Association

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334