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 AB 304 (Williams) Page 1 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 AB 304 (Williams) Page 2 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 AB 304 (Williams) Page 3 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.