BILL ANALYSIS Ó
AB 440
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Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 440 (Gatto) - As Introduced: February 15,
2013
Policy Committee: Environmental
Safety Vote: 6-1
Local Government 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes local government agencies to remedy or
remove a release of hazardous substances within the boundaries
of the local agency. This bill indemnifies the local agency and
future developers if the cleanup of the property is in
accordance with guidelines or remedial action plans approved by
the Department of Toxic Substances Control (DTSC), the regional
water quality control board or, under specified circumstances,
the local environmental health agency or officer.
FISCAL EFFECT
1)One-time special fund costs to in the range of $120,000 to
$300,000 to adopt guidelines.
2)Assuming about three plans per year, annual special fund costs
in the $300,000 range.
COMMENTS
1)Purpose. This bill is designed to replicate the authority and
immunity from future liability provided to redevelopment
agencies engaged in brownfield remediation activities and
offer the same protections to local government.
According to the author, there is no clear statutory authority
for redevelopment successor agencies to compel brownfield
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clean up. Redevelopment Agencies used to exercise powers to
clean up and redevelop brownfields.
Despite the Legislature's effort to pass legislation that
transferred all RDA development powers to local government or
local housing authorities, it is the opinion of Legislative
Counsel, CalEPA and private developers that this does not
extend to brownfield remediation powers.
Additionally, even if local authorities did retain the right
to utilize Polanco Act powers, under the law as written, they
would only be able to exercise those powers within
redevelopment areas, which will be phased out of existence
with the end of RDAs. The Polanco Act powers need to be
saved, and the areas where they may be used must be redefined.
2)Background. AB 3193 (Polanco), Chapter 1113, Statutes of 1990
(Polanco Redevelopment Act), as part of the Community
Redevelopment Act, was enacted to help redevelopment agencies
respond to brownfield properties in their redevelopment areas.
It prescribes processes for redevelopment agencies to follow
when cleaning up a hazardous substance release in a
redevelopment project area. It also provides specified
immunity from liability for sites cleaned up under a cleanup
plan approved by DTSC or a regional water quality control
board.
Prior to their dissolution, RDAs could use tax increment
financing in combination with Polanco Redevelopment Act
liability protection to remediate and develop brownfields
throughout California. With the RDA wind-down process set
forth in AB 1X 26, (Blumenfield) Chapter 5, Statutes of 2011,
these activities are now subject to uncertainties and could
potentially be discontinued. AB 1X 26 requires successor
agencies to expeditiously dispose of assets and properties of
former RDAs. However, among those properties are many
brownfield sites that will either be difficult for successor
agencies to sell due to the actual or perceived contamination
of the site.
3)Support. According to the Natural Resources Defense Council,
when RDAs were dissolved, there was no clear successor to the
Polanco Act powers. This bill would renew the Polanco Act by
transferring the powers to cities, counties, and successor
housing agencies.
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Environmental and housing advocates support the bill because
it would encourage infill development and the cleanup of
environmental contamination by authorizing local governments
to compel cleanup of contaminated properties while reducing
their exposure to liability.
4)There is no opposition to this bill.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081