BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1075


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          ASSEMBLY THIRD READING


          AB  
          1075 (Alejo)


          As Amended  May 13, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Environmental   |5-2   |Alejo, Gonzalez,     |Dahle, Gallagher     |
          |Safety          |      |Gray, McCarty, Ting  |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |11-4  |Gomez, Bloom, Bonta, |Bigelow, Chang,      |
          |                |      |Calderon, Eggman,    |Gallagher, Wagner    |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Holden, Quirk,       |                     |
          |                |      |Rendon, Weber, Wood  |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          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:  









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          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, three 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  
               hazardous waste laws.


          4)Excludes minor violations from violations that would be counted  
            toward the three incident standards.
          5)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..


          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.









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          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, three or more previous violations within any  
            consecutive 60 months.



          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill would result in minor, if any state costs  
          associated with increased legal work if regulated entities choose  
          not to settle potential violations captured under this bill and  
          instead require DTSC to file a claim in court (Hazardous Waste  
          Control Account).  This bill would provide unknown cost savings  
          resulting from increased compliance in order to avoid the  
          additional penalties and repeat violations (Hazardous Waste  
          Control Account).

          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 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  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  








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          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  
          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.   

          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.  








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          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 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. 


          Analysis Prepared by:                                               
                          Bob Fredenburg / E.S. & T.M. / (916) 319-3965  FN:  
          0000478