BILL ANALYSIS Ó AB 1075 Page 1 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 AB 1075 Page 2 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. AB 1075 Page 3 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 AB 1075 Page 4 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 AB 1075 Page 5 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 AB 1075 Page 6 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 AB 1075 Page 7 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 AB 1075 Page 8 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 AB 1075 Page 9 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) AB 1075 Page 10 319-3965