BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 812
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          SENATE THIRD READING
          SB 812 (De León)
          As Amended August 22, 2014
          Majority vote 

           SENATE VOTE  :27-7  
           
           ENVIRONMENTAL SAFETY         5-1APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Alejo, Bloom, Gomez,      |Ayes:|Gatto, Bocanegra,         |
          |     |Lowenthal, Ting           |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Donnelly                  |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
           ----------------------------------------------------------------- 

           SUMMARY  :  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, 2017, 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.

          2)Establishes the DTSC Community 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.  

          3)Requires the Community Oversight Committee to be comprised of  
            thirteen members appointed by California Environmental  
            Protection Agency (five members), Senate Rules Committee (four  
            members) and Speaker of the Assembly (four members).  Members  
            of the Community Oversight Committee receive per diem and  
            serve at the pleasure of the respective appointing  
            authorities.








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          4)Specifies that the Community Oversight Committee is providing  
            input to the Director of DTSC on improving outreach and  
            communications with communities and stakeholders to increase  
            public participation and transparency.

          5)Provides that financial assurance requirements for hazardous  
            waste facilities contaminated with hazardous waste may be set  
            by DTSC at an early stage in the corrective action process  
            rather than only at the time that a full remediation plan has  
            been approved.

          6)Provides that DTSC may increase the penalty for late hazardous  
            waste cleanup cost recovery payments from the current rate  
            linked to the State's Pooled Money Investment Fund to the  
            penalty interest rate established by the State Board of  
            Equalization for delinquent tax payments.

           

          FISCAL EFFECT:   According to the Assembly Appropriations  
          Committee, this bill would result in the following costs:

          1)Increased costs to DTSC from the Hazardous Waste Control  
            Account (HWCA) of approximately $1.2 million to administer and  
            staff the Citizens Oversight Committee.  This bill requires  
            the Committee to operate independently from DTSC.

          2)Increased costs to DTSC from the HWCA of approximately $1.1  
            million to meet permit renewal processing deadlines.

          3)Increased costs to DTSC from the HWCA of approximately  
            $600,000 to implement financial assurance provisions.

          4)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.

           COMMENTS  :   

          Need for the bill:  According to the author, "SB 814 will  
          strengthen the hazardous waste regulatory system, beginning with  
          addressing when final permit decisions must be made by the  
          Department of Toxic Substances Control (DTSC).  We are not going  








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          to let hazardous waste facilities continue to pollute vulnerable  
          neighborhoods anymore.  Some facilities are emitting toxic  
          hazardous waste, including lead, mercury, and arsenic.  Many of  
          them have been operating under expired permits for decades.   
          Facilities not in compliance with public health and  
          environmental standards will be shut down."

          Permitting hazardous waste storage, treatment, and disposal  
          facilities:  DTSC is responsible for the review of Resource  
          Conservation and Recovery Act (RCRA) and non-RCRA hazardous  
          waste permit applications to ensure safe design and operation;  
          issuance/denial of operating permits; issuance of post-closure  
          permits; approval/denial of permit modifications;  
          issuance/denial of emergency permits; review and approval of  
          closure plans; provide closure oversight of approved closure  
          plans; issuance/denial of variances; provide assistance to  
          regulated industry on permitting matters; and provide for public  
          involvement.  There are currently 118 DTSC permitted hazardous  
          waste facilities in California.  These facilities include:  44  
          storage sites, 43 treatment facilities, three disposal sites,  
          and 28 post-closure sites.



          Criticism of the DTSC hazardous waste facility permitting  
          process:  A report entitled Golden Wasteland, prepared by a  
          consumer advocacy organization, issued in February of 2013, was  
          critical of DTSC hazardous waste permitting and enforcement  
          process.  According the report, DTSC settled cases out of court  
          with facility operators, levies ineffective fines, and fails to  
          develop and refer cases for prosecution.  It was asserted that  
          the DTSC often awards permits without environmental review, and  
          it has not revoked the permit of a serial violator of  
          environmental laws in more than 15 years, the report found.



          DTSC has undertaken a review of permitting and enforcement  
          processes for hazardous waste facilities.  To do this, DTSC has  
          contracted for an outside program evaluation by CPS HR  
          Consulting that provided a review of the DTSC permit process to  
          develop a standardized process with decision criteria and  
          corresponding standards of performance.  The DTSC process will  
          review and assess the current timeliness of decisions, and  








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          evaluate the adequacy of program staffing.  It will make  
          recommendations for process improvement.  DTSC is currently  
          taking action on the specific recommendations through the review  
          process for permit process changes.  The program changes have  
          been included with the Governor's budget for fiscal year  
          2014-2015.
           

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


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