BILL ANALYSIS Ó SB 812 Page 1 Date of Hearing: August 6, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 812 (De Leon) - As Amended: June 24, 2014 Policy Committee: Environmental Safety and Toxic Materials Vote: 5-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill revises the Department of Toxic Substance Control's (DTSC) permitting process and public participation requirements for hazardous waste facilities. Specifically, this bill: 1)Requires DTSC to adopt regulations by January 1, 2016 to specify conditions for new permits and the renewal of existing permits as specified. Establishes deadlines for the submission and processing of facility applications as specified. Requires DTSC to adopt regulations by January 1, 2016 to specify the necessary financial assurance required to receive a permit. 2)Terminates an interim status granted for a facility on or after January 1, 2015 five years from the date it was granted or on the date DTSC takes a final action, whichever is earlier. 3)Requires DTSC to contract with an independent third party for testing and verification that a hazardous waste release is abated and the site is remediated. 4)Requires DTSC to updates its website to include Spanish translation of facility permits, facility status and DTSC's evaluation of permitting criteria, and evaluations or findings that support permitting decisions. 5)Establishes the DTSC Citizens Oversight Committee to receive and review allegations of misconduct from the public, and establishes the Bureau of Internal Affairs to oversee DTSC and investigate department conduct. SB 812 Page 2 6)Requires the Secretary of CalEPA to appoint the director of the Bureau of Internal Affairs. Requires the Citizens Oversight Committee to be comprised of 13 members appointed by the Governor (five members), Senate Rules Committee (four members) and Speaker of the Assembly (four members.) Members of the Citizens Oversight Committee receive per diem and serve at the pleasure of the respective appointing authorities. 7)Requires the Citizens Oversight Committee to review allegations of misconduct from the Bureau of Internal Affairs. Requires the Bureau of Internal Affairs to forward the disposition of allegations to the Citizens Oversight Committee as well as post on the website. FISCAL EFFECT 1)Increased costs to DTSC, from the Hazardous Waste Control Account (HWCA), of over $6 million for Spanish translation for existing permit information and newly required website postings. 2)Increased costs to DTSC, from the HWCA, of approximately $2.8 million to administer and staff the Bureau of Internal Affairs. This bill requires the Bureau to operate independently from DTSC. 3)Increased costs to DTSC, from the HWCA, of approximately $1.2 million to administer and staff the Citizens Oversight Committee. This bill requires the Committee to operate independently from DTSC. 4)Increased costs to DTSC, from the HWCA, of approximately $1.1 million to meet permit renewal processing deadlines. 5)Increased costs to DTSC, from the HWCA, of approximately $600,000 to develop permit criteria regulations and financial assurance regulations. 6)Increased costs to DTSC, from the HWCA, of approximately $450,000 to post expanded information on the website (English) and provide pre-permit public notice and comment periods. SB 812 Page 3 7)Minor costs of approximately $50,000 to DTSC from the HWCA for third-party testing. COMMENTS 1)Purpose. According to the author, some hazardous waste facilities are emitting toxic hazardous waste, including lead, mercury, and arsenic. Many facilities have been operating under expired permits for decades. According to the author, this bill will strengthen the hazardous waste regulatory system and result in the closure of noncompliant facilities. 2)Background. The California Hazardous Waste Control Act requires facilities handling hazardous waste to obtain a permit from DTSC. There are currently 118 DTSC-permitted hazardous waste facilities in California including: 44 storage sites; 43 treatment facilities; three disposal sites; and 28 post-closure sites. The Act requires an owner/operator of a facility intending to renew the facility's permit to submit a completed permit renewal application to DTSC prior to the expiration of the permit. Permits expire after 10 years, but a facility is allowed to operate past this due date while DTSC considers the permit renewal application. There are currently 24 facilities operating under "continued permits." 3)Interim Permits. The United States Environmental Protection Agency (US EPA) authorized states to issue permits to all hazardous waste management facilities before the Resource Conservation and Recovery Act (RCRA) federal program became effective in November 1980. RCRA establishes provisions to treat certain facilities as though they had been issued a permit until final administrative action was taken on their permit applications. This statutory grant of a permit is referred to as "interim status." One permit of the 117 is an interim permit for a facility owned by Exide Technologies in Vernon, California. The interim permit was first issued in 1981. Over the last 30 years, while there have been some steps taken to get the facility under a regular permit, regular permit has not yet been issued. 4)Related legislation. SB 712 (Lara) establishes deadlines for SB 812 Page 4 DTSC to take final action on permit applications from hazardous waste facilities operating under a grant of interim status. SB 712 will be heard by this committee August 6, 2014. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081