BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 304 (Williams) - Pesticides: toxic air contaminant: control  
          measures.
          
          Amended: July 2, 2013           Policy Vote: EQ 9-0
          Urgency: No                     Mandate: No
          Hearing Date: August 30, 2013                     Consultant:  
          Marie Liu     
          
          SUSPENSE FILE.
          
          
          Bill Summary: AB 304 would set a two-year deadline for the  
          director of the Department of Pesticide Regulation (DPR) to  
          adopt control measures for pesticides listed as a "toxic air  
          contaminant" (TAC).  

          Fiscal Impact: 
              No additional costs to DPR for the determination of control  
              measures for TACs.
              Annual cost pressures up to $120,000 through 2016 from the  
              Department of Pesticide Regulation Fund (special) for the  
              Office of Environmental Health Hazard Assessment's (OEHHA)  
              consulting responsibilities to DPR regarding TACs.
              Annual cost pressures up to $174,000 through 2016 from the  
              Department of Pesticide Regulation Fund for the Air  
              Resources Board's (ARB) consulting responsibilities to DPR  
              regarding TACs.
              Minor and absorbable costs to the Department of Food and  
              Agriculture for its consulting responsibilities to DPR  
              regarding TACs.

          Background: The Toxic Air Contaminant Act (AB 1807 (Tanner)  
          Chapter 1047/1983) created the statutory framework for the  
          evaluation and control of TACs, which are defined as air  
          pollutants that may cause or contribute to increases in serious  
          illness or death, or that may pose a present or potential hazard  
          to human health. Included in the definition are substances  
          listed as hazardous air pollutants (HAPs) under United States  
          Code.  DPR is responsible for the evaluation of pesticides as  
          TACs.

          The TAC program consists of two phases: risk assessment and risk  








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          management. 

          The program's first phase involves the evaluation of the  
          candidate pesticide to assess potential adverse health effects  
          and to estimate levels of exposure associated with its use.  DPR  
          must prepare a report on this assessment, which is subject to  
          review by OEHHA, the ARB, a scientific review panel, and the  
          public. At the end of this phase, the director of DPR determines  
          whether the pesticide is a TAC and if so, adds it to the TAC  
          list. A pesticide may also be designated a TAC if it is listed  
          as a hazardous air pollutant (HAPTACs) by federal regulation.

          Once a candidate pesticide has been listed as a TAC, phase two  
          is to determine mitigation measures to minimize the risk posed  
          by the TAC. DPR, in consultation with OEHHA, the ARB and local  
          air pollution control districts, investigates the need for, and  
          appropriate degree of, control for the TAC. If reductions in  
          exposure are needed, DPR must develop control measures to reduce  
          emissions to levels that adequately protect public health.  In  
          developing control measures, DPR consults with agricultural  
          commissioners, air pollution control districts, and air quality  
          management districts. Control measures may include product  
          labeling changes; applicator training; limits on application  
          methods, crops, or locations; reclassifying the pesticide as a  
          restricted material; and banning the product.

          DPR is not required to develop control measures for HAPTACs.

          The 2013-14 Budget Act, as approved by the Legislature augmented  
          DPR's budget with five positions and $633,000 to increase  
          enforcement of state pesticide regulations. Governor Brown  
          reduced this augmentation by two positions and issued the  
          following signing message: "However, I am sustaining $383,000  
          and 3 positions to develop mitigation measures for toxic air  
          contaminants. I will be working with the Legislature over the  
          next few months to enact legislation that requires the  
          development of control measures on pesticides."


          Proposed Law: This bill would require the director of DPR to  
          adopt control measures to protect human health from TACs within  
          two years of the director's determination that control measures  
          are necessary. For any TAC which was determined to need control  
          measures before January 1, 2014, the two-year period begins  








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          January 1, 2014. 

          This bill would require that HAPTACs be subject to the same risk  
          management assessment as a TAC to determine if control measures  
          are needed, and if so, what those measures should be. The  
          adoption of control measures for HAPTACs must also occur within  
          two years of the determination that such measures are needed.

          If the director is unable to adopt control measures within two  
          years, the director would be required to submit a report to the  
          Legislature explain the reasons for the delay. The director must  
          also report on any pesticide that s/he determines no longer  
          needs control measures because the pesticide has been banned or  
          there has been a dramatic decline in use.

          This bill would also make the director's written determination  
          and any other written comments made by the consulting agencies  
          available to the public.

          Staff Comments: Currently there are eight listed TACs and 10  
          HAPTACs, of which two (one TAC and one HAPTAC) have been  
          determined to need control measures but no measures have yet  
          been approved. DPR is in the process of determining control  
          measures for both at this time. This bill would require that  
          this process be completed within two years beginning January 1,  
          2014. Staff notes that DPR has taken up to eight years to  
          develop control measures once it was determined that control  
          measures were needed. Despite the fact that that this bill  
          imposes a time limitation that is substantially shorter than  
          DPR's past actions, staff believes that a two-year limit is  
          sufficiently long to make it unlikely that this provision will  
          result in increased costs to DPR or its consulting agencies. 
          There are five HAPTACs that DPR will be required to conduct risk  
          management assessments for as a result of this bill's  
          requirement that HAPTACs be subject to the same risk management  
          assessment as TACs. By increasing the number of pesticides that  
          are subject to risk management assessments, this provision  
          results in likely costs. As DPR received three additional  
          positions in this year's budget for the purpose of developing  
          mitigation measures per the Governor's signing message, DPR does  
          not anticipate any additional costs. However, ARB and OEHHA have  
          indicated that to the extent that this bill increases the number  
          of TACs and HAPTACs reviewed, they will have increased costs.  
          ARB indicates that their costs could be approximately $175,000  








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          annually ongoing for one position. OEHHA indicates that it may  
          need approximately $130,000. Staff notes that ARB and OEHHA are  
          only consulted with in the determination if control measures are  
          needed, but not in the development of those control measures.  
          Air districts are involved in both steps. Staff believes that  
          the ARB and OEHHA cost estimates are likely maximums. The  
          Department of Food and Agriculture does not anticipate any  
          additional costs as a result of this bill for the agricultural  
          commissioners to consult with DPR on the development of control  
          measures.

          The TAC program is likely to see additional activity, such as an  
          increase in the number of risk assessments performed on  
          candidate TACs, which may result in additional risk management  
          assessments, as a result of this year's budget augmentation.  
          Such an increase in activity may result in costs to the  
          consulting agencies including OEHHA and ARB regardless of the  
          passage of this bill. Thus, such increased costs would be a  
          consequence of the budget augmentation and should not be  
          attributed to this bill. 

          DPR's activities regarding TACs are paid for by the Department  
          of Pesticide Regulation Fund. Consulting agencies are likely to  
          seek reimbursement from the fund for their activities.