BILL ANALYSIS Ó AB 913 Page 1 Date of Hearing: April 26, 2011 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Bob Wieckowski, Chair AB 913 (Feuer) - As Amended: March 31, 2011 SUBJECT : Hazardous waste: source reduction: certified green business program. SUMMARY : Requires the Department of Toxic Substances Control (DTSC) to develop a California Green Business Program and specifies requirements for that program. Specifically, this bill : 1)Requires, as part of implementing the source reduction program, DTSC to develop a California Green Business Program that provides for the voluntary certification of businesses that adopt environmentally preferable business practices, including, but not limited to, increased energy efficiency, reduced greenhouse gas emissions, promotion of water conservation, and reduced waste generation. 2)Requires the California Green Business Program to do all of the following: a) Assist the network of statewide local government programs in implementing guidelines and structures that establish and promote a level of consistency among green business programs across the state; b) Support, through staffing and contracts, the development and maintenance of a statewide database to register businesses and track measurable pollution reductions and cost savings; c) Solicit participation of additional local programs and facilitate the startup of new local programs; and, d) Develop technical guidance on pollution prevention measures, conduct industry studies and pilot projects, and provide policy coordination for participating local programs. EXISTING LAW , under the Hazardous Waste Source Reduction and Management Review Act of 1989: AB 913 Page 2 1)Requires DTSC to establish a program for hazardous waste source reduction. 2)Requires DTSC to establish a technical assistance and outreach program to promote implementation of model source reduction measures in priority industry categories. 3)Requires DTSC to establish a technical and research assistance program to assist generators in identifying and applying methods of source reduction and other hazardous waste management approaches. 4)Requires DTSC to expand the source reduction program to provide source reduction training and resources to Certified Unified Program Agencies (CUPAs), small business development corporations, business environmental assistance centers, and other regional and local government environmental programs so that they can provide technical assistance to generators in identifying and applying methods of source reduction. FISCAL EFFECT : Unknown. COMMENTS : Need for the bill : The author argues, "California's 3.6 million small businesses are the backbone of California's economy and represent the vast majority (97%) of private firm employers. Seemingly modest improvements in energy efficiency, pollution preventing and other environmental upgrades at small businesses can have significant environmental benefits when multiplied statewide. Efficiency upgrades and other environmental best practices can also save businesses money. Small businesses, however, do not have the same resources available to large businesses to design and implement best environmental practices. Green business certification programs give businesses a consolidated process to adopt environmentally preferable business practices. In addition to helping small businesses adopt environmentally-preferable practices, green business programs reduce government enforcement costs by requiring compliance with all federal, State and local environmental regulations and encourage a coordinated and cohesive approach to environmental regulation." The author contends, "AB 913 directs the ÝDTSC] to aid local AB 913 Page 3 governments in implementing green business certification programs by providing technical and other support for the development and implementation of industry-specific standards. AB 913 will also support the development of a statewide database that will be used to develop and maintain standards and to promote communication between businesses and efficiency providers, and directs DTSC to aid in the implementation of new green business certification programs." California Green Business Program : According to DTSC, the current California Green Business Program is a statewide network of local government programs that certify small businesses as "green." These local-level agencies coordinate with other programs in their jurisdictions to assist small businesses with regulatory compliance and in implementing multi-media pollution prevention and waste reduction measures to achieve measureable pollution reductions, energy savings, water conservation and sustainability. Businesses certified by this program make changes in product formulations, recycle waste, and use less water and energy. DTSC serves as a statewide program contact and coordinator. DTSC also develops technical guidance on pollution prevention measures, conducts industry studies and pilot projects, manages a database used to register and track measurable pollution reductions and cost savings, provides policy coordination and assists in establishing new programs throughout the state. DTSC's current work efforts focus in three main areas: (1) assisting the network in adapting its guidelines and structure to facilitate growth and achieve measureable outcomes; (2) support, through staffing and contracts, the development and maintenance of the database used for metrics collection and local program support; and (3) solicit and facilitate the startup of new local programs. DTSC states that there are currently 14 counties and 2 city-led programs that have certified over 2,600 businesses. The author asserts that, while a good start, the current California Green Business Program is limited in scope and function. He argues, "Green business programs are severely resource constrained and barely have enough money to fund their own programs. There's a bottle-neck of businesses that are waiting to apply in some municipalities with programs. Many businesses would like to apply to programs but are in industries AB 913 Page 4 where standards have not been developed yet. Many municipalities do not have green business programs and would like to establish them, but need guidance and do not have adequate staff resources." AB 913 is designed to build upon the current program by promoting standardization; helping local governments build new programs; and providing program coordinators with technical guidance on updating and designing standards. Related legislation: AB 2379 (Feuer), Chapter 386, Statues of 2010, expanded the number of priority categories of hazardous waste generators that DTSC must select for participation in DTSC's cooperative source reduction technical assistance and outreach program. AB 1131 (Feuer) of 2009 would have expanded the DTSC pollution prevention program and transferred the state's hazardous materials emergency programs- the business and area plan program and the accidental release prevention program (Cal ARP)- from the California Emergency Management Agency (Cal EMA) to DTSC. AB 1131 was held in the Assembly Appropriations Committee. REGISTERED SUPPORT / OPPOSITION : Support Accurate Auto Body Association of Bay Area Governments Barbara Chan Consulting Big Air Heating & Air Conditioning Braver Designs Breast Cancer Fund Breathing Room Brentwood Hand Car Wash Casa Verde Pediatrics Clean Water Action Contra Costa Clean Water Program County of Monterey Health Department County of Santa Clara Board of Supervisors County of Santa Cruz Department of Public Works Ecology Action Emeryville Chamber of Commerce Environmental Defense Fund AB 913 Page 5 Environmental and Public Health Consulting Garaventa Enterprises Green Wheelin' LLC High Spirits Event Planning HMR Associates ImageX Nan Phelps Photography No Trace Shedding Orinda Motors Inc. Progressive Wealth Management Pinkys Klassy Kar Wash San Francisco Green Business Program (SF Department of the Environment) Social Ventures Inc. Stanford's Restaurant Stanford Group Sustainable Earth Initiative Vital Nutrition & Wellness Veterinary Medical Specialists WinWinWeb, LLC dba Everything Grows Interior Landscaping Opposition None received. Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916) 319-3965