BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1075


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          Date of Hearing:  April 14, 2015


           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS


                                  Luis Alejo, Chair


          AB 1075  
          (Alejo) - As Introduced February 27, 2015


          SUBJECT:  Hazardous waste:  Enforcement


          SUMMARY:  Establishes standards for what constitutes a repeat  
          serious hazardous waste facility violation and specifies the  
          enforcement action to be taken by the Department of Toxic  
          Substances Control (DTSC).  Specifically, this bill:  


          1)Defines a repeating or recurring pattern of violation or  
            noncompliance as a facility operator that has previously been  
            found to be liable for, or convicted of, two or more  
            violations of, or noncompliance with, within a five-year  
            period.

          2)Specifics that violation or noncompliance means an action that  
            creates a significant threat of immediate and acute exposure  
            to hazardous waste or hazardous waste constituents at a  
            facility or offsite from a facility.

          3)Defines a serious violation as including any of the following:
             a)   Fire, explosion, or an uncontrolled chemical reaction;
             b)   Serious or acute injury or illness;
             c)   Violation of any order issued by DTSC to the applicant  
               or holder of the permit; or
             d)   Federal or state felony conviction for violations of  








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               hazardous waste laws.

          4)Provides that DTSC shall consider a repeating or recurring  
            pattern of violation or noncompliance as compelling cause to  
            deny, suspend, or revoke the permit for a hazardous waste  
            facility.

          5)Provides that if DTSC finds that extraordinary circumstances  
            exist, including that a denial, suspension, or revocation of a  
            permit would endanger the public health or safety or the  
            environment then the facility would not be subject to permit  
            revocation.

          6)Authorizes DTSC to temporarily suspend a hazardous waste  
            facility permit prior to a hearing, if the DTSC determines  
            that conditions may present an imminent and substantial  
            endangerment to the public health or safety or the  
            environment.

          7)Imposes an additional civil penalty of not less than $5,000 or  
            more than $50,000 for each day of a serious hazardous waste  
            violation, if the person has been found liable for, or been  
            convicted of, 2 or more previous violations within any  
            consecutive 60 months.



          EXISTING FEDERAL LAW:


          1)Requires owners and operators of facilities that treat, store,  
            or dispose of hazardous waste to obtain an operating permit  
            pursuant to the Resource Conservation and Recovery Act (RCRA).

          2)Authorizes, by the United States Environmental Protection  
            Agency (US/EPA), DTSC to be the lead agency for enforcing the  
            provisions of RCRA.  As an authorized state, California's  
            regulations to be consistent with, and at least as strict as,  
            the federal regulations.








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          EXISTING STATE LAW: Pursuant to the Hazardous Waste Control Act,  
          (Chapter 6.5 of Health and Safety Code):


          1)Requires any person who stores, treats, or disposes of  
            hazardous waste to obtain a hazardous waste facility permit  
            from DTSC.  

          2)Requires hazardous waste facilities to operate subject to  
            permits issued by DTSC and which are in accordance with  
            applicable federal law, including RCRA.

          3)Requires DTSC to issue a hazardous waste facilities permit for  
            a fixed term, which is prohibited from exceeding ten years,  
            for any land disposal facility, storage facility, incinerator,  
            or other treatment facility.   

          4)Defines a "Class I violation" as any deviation from the  
            requirements of a permit that represents a significant threat  
            to human health or safety or the environment based on one of  
            the following:
             a)   The volume of the waste;
             b)   The relative hazardousness of the waste; or 
             c)   The proximity of the population at risk.
           
          FISCAL EFFECT:  Not known.


          COMMENTS:  


          Need for the bill:  According to the author, "AB 1075  
          establishes a bright regulatory line for permit denial and  
          revocation.  The key feature of AB 1075 is to strengthen the  
          authority of the Department of Toxic Substance Control (DTSC) by  
          specifying that three or more serious violations during a  
          five-year period results in a clear obligation on DTSC to revoke  
          a hazardous waste facility permit.  AB 1075 was developed based  








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          on the information gathered at the Environmental Safety and  
          Toxic Materials oversight hearing in September of 2014, where  
          community groups came forward to report on issues in their  
          neighborhood."


          Permitting hazardous waste storage, treatment, and disposal  
          facilities:  DTSC is responsible for the review of RCRA and  
          non-RCRA hazardous waste permit applications to ensure safe  
          design and operation; issuance and denial of operating permits;  
          issuance of post-closure permits; approval and denial of permit  
          modifications; issuance and denial of emergency permits; review  
          and approval of closure plans; providing closure oversight of  
          approved closure plans; issuance and 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, 3 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 the 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 asserted that 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.


          DTSC has undertaken a review of permitting and enforcement  
          processes for hazardous waste facilities.  To do this, DTSC  








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          contracted for an outside program evaluation by CPS HR  
          Consulting which provided a review of the DTSC permit process in  
          order to develop a standardized process with decision criteria  
          and corresponding standards of performance.  The DTSC evaluation  
          included a review and assessment of the current timeliness of  
          decisions, and evaluates the adequacy of program staffing.  It  
          will make recommendations for process improvement.   

          The program analysis of DTSC carried out by CPS HR Consulting of  
          DTSC permitting process found that there has been significant  
          dissatisfaction with the performance of the permitting office,  
          due to the cost and length of time in completing the permit  
          process and a perception that the office does not deny or revoke  
          permits as often as it should to address community concerns.   
          The stakeholders included in the review identified the following  
          major concerns:


          1)The need to create clear and objective criteria for making  
            denial and revocation decisions that are based on valid  
            standards of performance and risk;

          2)A clear standard for violations that would lead to a denial or  
            revocation;

          3)The need for the DTSC to document and measure a "scorecard" of  
            attributes that would be perceived as a "good result" for the  
            permitting program;

          4)The need to identify and measure appropriate permitting  
            process timelines; and,

          5)The need to document, maintain and implement effective  
            financial assurance standards to ensure that facilities can  
            meet their permitted obligations. 

          Creating a bright line for regulatory action on hazardous waste  
          facility permits: The CPS HR Consulting report recommended that  
          DTSC develop a new system of categorizing violations that  








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          reflects whether they present an immediate and direct threat to  
          human health and safety, versus a less urgent threat that can be  
          mitigated or resolved through further actions of DTSC.  The  
          current definition of "Class I violations," although mandated by  
          law, includes both violations that pose immediate and direct  
          threats along with many that are relatively low- or long-term  
          threats. Until the DTSC has a system to asses violations that  
          can distinguish between significant threats to human health and  
          safety and lesser threats, it will not be able to provide an  
          objective standard to guide its own staff actions and to inform  
          the public that the significant threats have been mitigated  
          through actions such as permit modification, denial or  
          revocation. 

          Arguments in support: A coalition of community and environmental  
          organizations including the Center for Community Action &  
          Environmental Justice supported the strengthening of standards  
          for facility permits.  Specifically, they found that, "in  
          practice, once DTSC issues a permit the agency rarely, if ever,  
          uses its authority to revoke or suspend that permit. In fact, a  
          report commissioned by DTSC found that the agency's permitting  
          program lacked clear objectives and criteria for denying or  
          revoking permits based on past compliance. As a result, numerous  
          hazardous waste facilities across California have continually  
          and repeatedly violated the terms of their permit and threatened  
          the health and safety of nearby residents without any real  
          consequence. These failures disproportionately affect low income  
          communities and communities of color who are already most  
          burdened by toxic pollution.

          Arguments in opposition: A coalition of business groups,  
          including the California Chamber of Commerce voiced concerns  
          related to AB 1075.  Specially, they report that, "AB 1075  
          substantially expands DTSC's existing authority by providing  
          DTSC with "compelling cause" to deny, suspend or revoke  
          hazardous waste permits for mere minor or paperwork violations  
          that pose absolutely no endangerment to the public health,  
          safety or the environment. Specifically, AB 1075 states that a  
          mere violation of any order issued by DTSC to the applicant or  








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          permit holder would constitute a violation or noncompliance  
          which, if repeated three times in five years, would provide DTSC  
          with "compelling cause" to deny, suspend, or revoke a permit."





          PRIOR LEGISLATION:


          1)SB 712 (Lara) Chapter 833, Statutes of 2014.  Established  
            deadlines for DTSC to take final action on permit applications  
            from hazardous waste facilities operating under an interim  
            status grant.

          2)AB 1330 (John A. Pérez) 2014.  Would have increased the  
            coordination and enforcement of environmental protection laws  
            by DTSC and CalEPA, and increased funding for environmental  
            improvements specifically for environmental justice  
            communities. Held on the Senate Floor.

          3)SB 812 (De Leon) 2014. Would have modifies the permitting  
            process for hazardous waste facilities and the public  
            participation requirements for DTSC. Vetoed by Governor Brown.
          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Asian Pacific Environmental Network 










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          California District Attorneys Association


          California Environmental Justice Alliance
          Center for Community Action & Environmental Justice 
          Center on Race, Poverty & the Environment 
          Clean Water Action
          Communities for a Better Environment
          Concerned Neighbors of Wildomar


          Environmental Action Committee of West Marin 
          Environmental Working Group 
          Pesticide Action Network North America 
          Physicians for Social Responsibility - Los Angeles 
          Teens Against Toxins 
          The People's Senate and Leadership Institute 


          




          Opposition


          Automotive Specialty Products Alliance 


          California Business Properties Association 


          California Cement Manufacturers Environmental Coalition 


          California Chamber of Commerce 










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          California Manufacturers and Technology Association 


          California Metals Coalition 


          Chemical Industry Council of California 


          Clean Harbors Environmental Services, Inc. 


          Consumer Specialty Products Association 


          Metals Finishing Association of Northern California 


          Metals Finishing Association of Southern California 


          U.S. Department of Defense, Region 9


          West Coast Chapter, Institute of Scrap Recycling Industries 


          West Coast Lumber & Building Material Association 


          Western Plant Health Association 


          Western States Petroleum Association




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








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          319-3965