BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            AB 1075
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          |Author:    |Alejo                                                |
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          |Version:   |6/18/2015              |Hearing      |7/15/2015       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Rachel Machi Wagoner                                 |
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          SUBJECT:  Hazardous waste: enforcement.

            ANALYSIS:
          
          Existing law:  

          1)Under the federal Resource Conservation and Recovery Act  
            (RCRA) of 1976, governs the disposal of hazardous waste:  

             a)   Through regulation, sets standards for the treatment,  
               storage, transport, tracking and disposal of hazardous  
               waste in the United States.   

             b)   Authorizes states to carry out many of the functions of  
               the federal law through their own hazardous waste laws if  
               such programs have been approved by the United States  
               Environmental Protection Agency (US EPA).

          2)Under the California Hazardous Waste Control Act (HWCA) of  
            1972:

             a)   Establishes the Hazardous Waste Control program;

             b)   Regulates the handling, transport and disposal of  
               hazardous waste and authorizes the Department of Toxic  
               Substances Control (DTSC) to deny, suspend, or revoke any  
               permit, registration, or certificate applied for, or issued  
               to, a person or entity if that person or entity engaged in  
               specified activities in violation of the Hazardous Waste  







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               Control Law or other laws.

             c)   Authorizes DTSC to temporarily suspend any permit,  
               registration, or certificate prior to a hearing if the  
               department determines that action is necessary to prevent  
               or mitigate an imminent and substantial danger to the  
               public health or safety or the environment.

             d)   Requires DTSC, upon receipt of a notice of defense to  
               the accusation from the holder of the permit, registration,  
               or certificate, to set the matter for hearing within 15  
               days and to hold the hearing as soon as possible, but not  
               later than 30 days after receipt of the notice and requires  
               the hearing to be held without delay and completed as soon  
               as possible.

             e)   Requires a petition for judicial review of a final  
               decision of the department to grant, issue, modify, or deny  
               a permit, registration, or certificate be filed no later  
               than 90 days after the date that the notice of final  
               decision is served.

             f)   Provides for the imposition of civil and criminal  
               penalties upon persons who violate the requirements of the  
               hazardous waste control law or take other actions with  
               regard to the handling of hazardous waste.

          This bill:  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)Requires DTSC to consider, except under specified  
            circumstances, 3 or more violations of, or noncompliance with,  
            specified provisions for which a person or entity has been  
            found liable or has been convicted, with respect to a single  
            hazardous waste facility within a 5-year period, as compelling  
            cause to deny, suspend, or revoke a permit, registration, or  
            certificate applied for by, or issued to, that person or  
            entity. 


          2)Authorizes DTSC to temporarily suspend any permit,  








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            registration, or certificate prior to a hearing if DTSC  
            determines that conditions may present an imminent and  
            substantial endangerment to the public health or safety or the  
            environment.  The bill repeals the requirement that the  
            hearing be held without delay and completed as soon as  
            possible.


          3)Authorizes a person who filed comments on a draft permit or  
            participated in the public hearing on the draft permit to  
            appeal the department's decision to the Secretary for  
            Environmental Protection within 30 days, and would authorize  
            the secretary to sustain, reverse, or modify the decision of  
            the department if it was based on a finding of fact or  
            conclusion of law that was clearly erroneous, or if it was  
            based on an important policy consideration that the secretary  
            determines he or she should review. The bill would require  
            that a petition for judicial review be filed within 90 days of  
            the secretary's final decision.


          4)Imposes upon a person who is subject to the imposition of  
            those civil or criminal penalties, an additional civil penalty  
            of not less than $5,000 or more than $50,000 for each day of  
            each violation, if the person has been found liable for, or  
            been convicted of, 2 or more previous violations of certain of  
            these hazardous waste-related provisions within any  
            consecutive 60 months.

            Background
          
          1) 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  








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             facilities in California.  These facilities include:  44  
             storage sites, 43 treatment facilities, 3 disposal sites, and  
             28 post-closure sites.

          2) CPS HR Consulting Audit.  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.  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:
                               The need to create clear and objective  
                      criteria for making denial and revocation decisions  
                      that are based on valid standards of performance and  
                      risk;

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

                               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;

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

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









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          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 DTSC has a system to assess 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. 
            
          Comments
          
          Purpose of 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  
          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."

            Related/Prior Legislation
          
          SB 812 (de León, 2014) would have required DTSC to adopt  
          regulations by January 1, 2017, to specify conditions for new  
          permits and the renewal of existing permits, as specified, and  
          establishes deadlines for the submission and processing of  
          facility applications, as specified.  SB 812 was vetoed by  
          Governor Brown.

            SOURCE:                    Author  

           SUPPORT:               

          Asian Pacific Environmental Network 
          California District Attorneys Association








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          California Environmental Justice Alliance
          Center for Community Action & Environmental Justice 
          Center for Environmental Health
          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 
          Physicians for Social Responsibility - San Francisco Bay Area
          Sierra Club California
          Teens Against Toxins 
          The People's Senate and Leadership Institute 
          Worksafe
           
           OPPOSITION:    

          Automotive Specialty Products Alliance 
          California Business Properties Association 
          California Cement Manufacturers Environmental Coalition 
          California Chamber of Commerce 
          California Manufacturers and Technology Association 
          California Metals Coalition 
          California Trucking Association
          Chemical Industry Council of California 
          Clean Harbors Environmental Services, Inc. 
          Consumer Specialty Products Association 
          Industrial Environmental 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
           
           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 assert that, "in  
          practice, once DTSC issues a permit the agency rarely, if ever,  








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          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 believe 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 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."

                                          
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