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.  








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          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.








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          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
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            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