BILL ANALYSIS Ó AB 681 Page 1 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 : AB 681 Page 2 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.) AB 681 Page 3 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 AB 681 Page 4 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 AB 681 Page 5 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 AB 681 Page 6 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