BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 686
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 686 (Quirk)
          As Amended  May 24, 2013
          Majority vote 

           ENVIRONMENTAL SAFETY       7-0  APPROPRIATIONS      16-0        
           
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          |Ayes:|Alejo, Dahle, Bloom,      |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Donnelly, Lowenthal,      |     |Bocanegra, Bradford, Ian  |
          |     |Stone, Ting               |     |Calderon, Campos,         |
          |     |                          |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Hall, Linder, Pan, Quirk, |
          |     |                          |     |Wagner, Weber             |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Department of Toxic Substance Control  
          (DTSC) to develop recommendations for standards and guidelines  
          for the operation of on-site hazardous waste management and  
          recycling pharmaceutical manufacturing and processing  
          facilities.  The report is required to be submitted by January  
          1, 2016, and identify any necessary statutory or regulatory  
          actions as specified.

           EXISTING LAW  :

          1)Requires, pursuant to the Federal Resource Conservation and  
            Recovery Act (RCRA), any person who owns or operates a  
            facility where hazardous waste is treated, stored, or disposed  
            to have a RCRA hazardous waste permit issued by the U.S.  
            Environmental Protection Agency (US EPA).

          2)Requires any person who stores, treats or disposes of  
            hazardous waste as described in the Hazardous Waste Control  
            Law (Health and Safety Code, Division 20, Chapter 6.5) must  
            obtain a permit or a grant of authorization from DTSC.

          3)Requires DTSC to regulate onsite hazardous waste treatment  
            operations under the "tiered permit" system which was adopted  
            in 1992.  The system, which has no federal equivalent, is made  
            up of four tiers:  conditionally authorized, permit-by-rule,  
            standardized permit, and conditionally exempt, which are  
            characterized by increasingly stringent regulation,  








                                                                  AB 686
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            respectively.  A given treatment process is assigned to a tier  
            based on statutory criteria that are believed to be indicative  
            of the potential hazards associated with various  types of  
            treatment operations, therefore, the greater the perceived  
            hazard, the higher the tier.

          4)Exempts a pharmaceutical manufacturer's neutralization  
            activities from specific laws applying to hazardous waste  
            facilities, including requirements to operate in accordance  
            with hazardous waste facility permit.  Requires a  
            pharmaceutical manufacturer to satisfy specified conditions  
            for pharmaceutical neutralization.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, increased costs to DTSC from the Hazardous Waste  
          Control Account (HWCA) or General Fund (GF) in the $100,000 to  
          $200,000 range.  Expenditures and revenues in the HWCA account  
          are currently about equal.  While the account carries a small  
          surplus, it is used to pay monthly costs.   It is unlikely DTSC  
          would be able to absorb this additional expenditure without a  
          fee increase or GF appropriation.
           
           
          COMMENTS  :

           1)Need for the bill  .  According to the author, "The federal  
            Resource Conservation and Recovery Act (RCRA) excludes a  
            narrow range of materials that qualify as "comparable fuels"  
            from the definition of solid waste, allowing these fuels to be  
            used to produce energy without requiring a Treatment, Storage,  
            and Disposal Facility (TSDF) permit.  For example, acetone,  
            which is a common by-product of the pharmaceutical  
            manufacturing process, is a candidate for this exclusion  
            because it has a heating value and viscosity in the range  
            required by the federal exclusion.  Furthermore, it qualifies  
            on the basis of meeting all of the constituent concentration  
            limits specified in the federal exclusion.

            Although this material would qualify as a comparable fuel  
            under the RCRA exclusion, California has not incorporated the  
            same exclusion into its Hazardous Waste Control Law.  
            Therefore, under current California law, facilities that would  
            otherwise be authorized to use manufacturing by-products as a  
            fuel source for CHP would first need to obtain a hazardous  








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            waste treatment permit from the Department of Toxic Substances  
            Control.  The cost, administrative burden and timeframes  
            involved in procuring and maintaining this permit would render  
            these projects infeasible. "

          2)This bill is sponsored by the American Pacific Fine Chemicals  
            a company in Rancho Cordova, California.  The company  
            manufactures pharmaceutical ingredients and registered  
            intermediates sold to the pharmaceutical industry.  According  
            to American Pacific Fine Chemicals Company generates  
            approximately 1,000 gallons of acetone hazardous waste per  
            day, which they propose to burn in a cogeneration facility at  
            their site.  The facility currently relies on natural gas and  
            propane to operate the heat and steam facility.


           Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965 


                                                                FN: 0000836