California Legislature—2015–16 Regular Session

Assembly Bill No. 273

Introduced by Committee on Environmental Safety and Toxic Materials (Assembly Members Alejo (Chair), Dahle (Vice Chair), Gonzalez, McCarty, and Ting)

February 11, 2015

An act to amend Sections 25187.2, 25360, and 25360.1 of the Health and Safety Code, relating to hazardous waste and substances.

LEGISLATIVE COUNSEL’S DIGEST

AB 273, as introduced, Committee on Environmental Safety and Toxic Materials. Hazardous waste and substances: corrective action: liability.

Existing law authorizes the Department of Toxic Substances Control to issue an order under the hazardous waste control laws requiring that a violation be corrected and imposing a civil penalty to specified persons, including a person who has violated various provisions regulating hazardous waste or provisions concerning removal and remedial actions for hazardous substance releases. A person who is issued that order is required to pay for oversight of the removal or remedial action.

Existing law, the Carpenter-Presley-Tanner Hazardous Substance Account Act, authorizes the department to take or oversee removal and remedial actions related to the release of hazardous substances. Existing law authorizes the Attorney General to recover from the liable person, as defined, the costs incurred by the department or a California regional water quality control board in carrying out the act and requires that any monetary obligation owed to the department pursuant to the act or the hazardous waste control laws be subject to a specified rate of interest earned in the Surplus Money Investment Fund. Existing law authorizes the department to waive the interest if the obligation is satisfied within 60 days of the date of the invoice.

This bill would require a person to pay for oversight of any corrective action required of the person with respect to hazardous waste, and would authorize the recovery by the Attorney General of costs incurred with regard to carrying out or overseeing a removal action, a remedial action, or a corrective action under the act or under the hazardous waste control laws. The bill would require a monetary obligation owed to the department under the act or these laws to be subject to an interest rate of 10% per annum, or, in the case of local governments, 7% per annum. The bill would instead require the department to waive the interest if the obligation is satisfied within 60 days or if the person provides notice to the department disputing the obligation, for a period determined as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25187.2 of the Health and Safety Code
is amended to read:

25187.2.  

If a begin delete removal or remedial action order issued pursuant
to Section 25187 to a potentially responsible party requires a end delete person
begin insert is required end insert to take corrective action with respect to hazardous
waste, that person shall pay for oversight of the begin delete removal or
remedial end delete begin insert corrective end insert action. This section does not prohibit the
department or unified program agency from assessing any other
penalty or recovering any costs for oversight of a removal or
remedial action, pursuant to any other provision. Nothing in this
section limits the due process requirements of Section 25187.

SEC. 2.  

Section 25360 of the Health and Safety Code is
amended to read:

25360.  

(a)  begin delete Any costs end delete begin insert A cost end insert incurred by the department or
regional board in carrying out begin insert or overseeing a removal action, a
remedial action, or a corrective action under end insert this chapter begin insert or
Chapter 6.5 (commencing with Section 25100) end insert shall be recoverable
pursuant to state or federal law by the Attorney General, upon the
request of the department or regional board, from the liable person
or persons. The amount of any response action costs that may be
recovered pursuant to this section shall include interest on any
amount paid. begin delete The interest on amounts paid from the state account
or the Site Remediation Account shall be calculated at the rate of
return earned on investment in the Surplus Money Investment
Fund pursuant to Section 16475 of the Government Code. end delete

(b) A person who is liable for costs incurred at a site shall have
the liability reduced by any reimbursements that were paid by that
person for that site pursuant to Section 25343.

(c) The amount of cost determined pursuant to this section shall
be recoverable at the discretion of the department, either in a
separate action or by way of intervention as of right in an action
for contribution or indemnity. Nothing in this section deprives a
party of any defense that the party may have.

(d)  begin delete Money end delete begin insert Moneys end insert recovered by the Attorney General pursuant
to this section shall be deposited in the state account.

SEC. 3.  

Section 25360.1 of the Health and Safety Code is
amended to read:

25360.1.  

begin delete Any end delete begin insert (a) end insert begin insert   end insert begin insert Except as provided in subdivision (b), a end insert
monetary obligation to the department pursuant to Chapter 6.5
(commencing with Section 25100) or this chapter shall be subject
to interest from the date of the demand at begin delete the same rate of return
earned on investment in the Surplus Money Investment Fund
pursuant to Section 16475 of the Government Code, except the
department may end delete begin insert an interest rate of 10 percent per annum, except
that, for local governments, the interest rate shall be 7 percent per
annum. end insert

begin insert (b) end insert begin insert   end insert begin insert The department end insert begin insert shall end insert waive the interest begin insert described in
subdivision (a) end insert if the obligation is satisfied within 60 days from
the date of invoice. begin insert If, within 60 days of receiving an invoice, the
liable person or persons provide written notice to the department
disputing the monetary obligation specified in the invoice, or a
portion thereof, the department shall waive the interest until the
dispute is resolved, or 180 days from the date the department
received the written notice disputing the obligation, whichever
occurs first. If the dispute is not resolved within that 180 days,
then upon the accrual of 180 days, the liable person or persons
shall pay the obligation specified in the invoice, including interest,
or seek judicial or other legal relief, as appropriate. end insert