Amended in Senate August 19, 2016

Amended in Senate May 25, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2891

Introduced by Committee on Environmental Safety and Toxic Materials (Assembly Members Alejo (Chair), Arambula, Lopez, and McCarty)

February 29, 2016

An act to amend Sections 25173.7 and 25205.6 of the Health and Safety Code, relating to hazardous waste.

LEGISLATIVE COUNSEL’S DIGEST

AB 2891, as amended, Committee on Environmental Safety and Toxic Materials. Hazardous waste: funding.

Existing law, the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Superfund Act), imposes liability for hazardous substance removal or remedial actions and authorizes moneys in the Toxic Substances Control Account in the General Fund to be expended by the Department of Toxic Substances Control to pay, among other things, all costs of removal or remedial actions incurred by the state and for the state’s share of the costs of removal or remedial actions mandated by the federal Comprehensive Environmental Response Compensation, and Liability Act of 1980, commonly known as the Federal Superfund Act. Existing law expresses the intent of the Legislature that the funds deposited in the account be appropriated in the annual Budget Act each year in a specified manner, begin delete including, but not limited to, end delete begin insert including end insert not less than $6,750,000 to the Site Remediation Account in the General Fund for direct site remediation costs, as defined. begin insert Existing law defines orphan sites as those with no reasonably identifiable responsible parties. end insert

This bill would instead express the intent of the Legislature that the funds deposited in the account be appropriated in the annual Budget Act each year to the Site Remediation Account in an amount begin insert that is end insert sufficient to pay for estimated costs for direct site begin delete remediation, including, but not limited to, end delete begin insert remediation end insert at both federal Superfund orphan sites and at begin delete state-only end delete begin insert state end insert orphan begin delete sites. Existing law defines orphan sites as those with no reasonably identifiable responsible parties. end delete begin insert sites, and that not less than $10,750,000 be appropriated in the annual Budget Act each year to the account for direct site remediation costs. end insert The bill would require the department to include those estimated costs in a report submitted to the Legislature with the Governor’s Budget each year.

Existing law requires the department to provide the State Board of Equalization with a schedule of codes identifying the types of organizations that use, generate, store, or conduct activities in this state related to hazardous materials. Each organization type identified in the schedule is required to pay an annual fee, which is deposited in the Toxic Substances Control Account. Existing law expresses the intent that those organization fee rates are intended to provide sufficient revenue to fund, among other things, appropriations in any given fiscal year of $3,300,000 to fund the state’s clean-up obligation under the Federal Superfund Act. If the department determines that the state’s obligation under the Federal Superfund Act will exceed $3,300,000 in any fiscal year, existing law requires the department to report that determination to the Legislature in the Governor’s Budget.

This bill would repeal that expression of legislative intent and a related requirement that the Legislature specify in the annual Budget Act changes to those rates necessary to fund the state’s increased obligation under the Federal Superfund Act. The bill would instead express the intent of the Legislature that those rates are intended to provide sufficient revenue to fund appropriations in any given fiscal year to fund the state’s obligation under the Federal Superfund Act. begin delete The bill would require the department to determine the state’s obligation under the Federal Superfund Act and to annually include the determination in the report described above that is submitted to the Legislature with the Governor’s Budget. end delete

This bill would also make conforming changes and delete obsolete provisions.

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 25173.7 of the Health and Safety Code
is amended to read:

25173.7.  

(a) It is the intent of the Legislature that funds
deposited in the Toxic Substances Control Account shall be
appropriated in the annual Budget Act each year in the following
manner:

(1) An amount sufficient to pay for the estimated costs identified
by the department in the report submitted pursuant to subdivision
(c) to the Site Remediation Account in the General Fund for direct
site remediation costs, as defined in Section 25337.

begin insert

(2) Not less than ten million seven hundred fifty thousand dollars
($10,750,000) to the Site Remediation Account in the General
Fund for direct site remediation costs, as defined in Section 25337.

end insert begin delete

(2)

end delete

begin insert (3) end insert  Not less than four hundred thousand dollars ($400,000) to
the Expedited Site Remediation Trust Fund in the State Treasury,
created pursuant to subdivision (a) of former Section 25399.1, for
purposes of paying the orphan share of response costs pursuant to
former Chapter 6.85 (commencing with Section 25396).

begin delete

(3)

end delete

begin insert (4) end insert  An amount that does not exceed the costs incurred by the
State Board of Equalization, a private party, or other public agency,
to administer and collect the fees imposed pursuant to Article 9.1
(commencing with Section 25205.1) and deposited into the Toxic
Substances Control Account, for the purpose of reimbursing the
State Board of Equalization, public agency, or private party, for
those costs.

begin delete

(4)

end delete

begin insert (5) end insert  Not less than one million fifty thousand dollars ($1,050,000)
for purposes of establishing and implementing a program pursuant
to Sections 25244.15.1, 25244.17.1, 25244.17.2, and 25244.22 to
encourage hazardous waste generators to implement pollution
prevention measures.

begin delete

(5)

end delete

begin insert (6) end insert  Funds not appropriated as specified in paragraphs (1) to begin delete (4), end delete
begin insert (5), end insert inclusive, may be appropriated for any of the purposes
specified in subdivision (b) of Section 25173.6, except the purposes
specified in subparagraph (C) of paragraph (1) of, and paragraph
(13) of, subdivision (b) of Section 25173.6.

(b) (1) The amounts specified in paragraphs (2) to begin delete (4), end delete begin insert (5), end insert
inclusive, of subdivision (a) shall be adjusted annually to reflect
increases or decreases in the cost of living during the prior fiscal
year, as measured by the Consumer Price Index issued by the
Department of Industrial Relations or by a successor agency.

(2) Notwithstanding paragraph (1), the department may, upon
the approval of the Legislature in a statute or the annual Budget
Act, take either of the following actions:

(A) Reduce the amounts specified in paragraphs (1) to begin delete (4), end delete begin insert (5), end insert
inclusive, of subdivision (a), if there are insufficient funds in the
Toxic Substances Control Account.

(B) Suspend the transfer specified in paragraph begin delete (2) end delete begin insert (3) end insert of
subdivision (a), if there are no orphan shares pending payment
pursuant to former Chapter 6.85 (commencing with Section 25396).

(c)  begin delete (1) end delete begin delete   end delete The department shall submit to the Legislature with the
Governor’s Budget each year a report that includes an estimate of
the funding needed to begin insert fund direct site remediation costs at state
orphan sites and end insert meet the state’s obligation to pay for direct site
remediation begin delete costs, including, but not limited to, end delete begin insert costs end insert at federal
Superfund orphan sites begin delete and at state-only orphan sites. end delete begin insert pursuant to
paragraph (3) of subsection (c) of Section 104 of the federal
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)). end insert The
estimate shall include projected begin insert costs for the end insert current budget year
and begin delete out-year costs, end delete begin insert the two following budget years, end insert including, but
not limited to, begin insert the state’s 10- end insert begin insert percent funding obligation end insert begin delete at federal
Superfund orphan sites and at state-only orphan sites, for new and
ongoing operations and maintenance, new and ongoing
remediation, and any other related costs. end delete begin insert for remedial actions at
federal Superfund orphan sites, the state’s 100- end insert begin insert percent funding
obligation for ongoing operation and maintenance at federal
Superfund orphan sites, and ongoing operation and maintenance
costs at state orphan sites. end insert

begin delete

(2) For purposes of this section, “orphan site” shall have the
same meaning as defined in Section 25385.1.

end delete

SEC. 2.  

Section 25205.6 of the Health and Safety Code is
amended to read:

25205.6.  

(a) For purposes of this section, “organization” means
a corporation, limited liability company, limited partnership,
limited liability partnership, general partnership, and sole
proprietorship.

(b) On or before November 1 of each year, the department shall
provide the board with a schedule of codes, that consists of the
types of organizations that use, generate, store, or conduct activities
in this state related to hazardous materials, as defined in Section
25501, including, but not limited to, hazardous waste. The schedule
shall consist of identification codes from one of the following
classification systems, as deemed suitable by the department:

(1) The Standard Industrial Classification (SIC) system
established by the United States Department of Commerce.

(2) The North American Industry Classification System
(NAICS) adopted by the United States Census Bureau.

(c) Each organization of a type identified in the schedule adopted
pursuant to subdivision (a) shall pay an annual fee, which shall be
set in the following amounts:

(1) Two hundred dollars ($200) for those organizations with 50
or more employees, but fewer than 75 employees.

(2) Three hundred fifty dollars ($350) for those organizations
with 75 or more employees, but fewer than 100 employees.

(3) Seven hundred dollars ($700) for those organizations with
100 or more employees, but fewer than 250 employees.

(4) One thousand five hundred dollars ($1,500) for those
organizations with 250 or more employees, but fewer than 500
employees.

(5) Two thousand eight hundred dollars ($2,800) for those
organizations with 500 or more employees, but fewer than 1,000
employees.

(6) Nine thousand five hundred dollars ($9,500) for those
organizations with 1,000 or more employees.

(d) The fee imposed pursuant to this section shall be paid by
each organization that is identified in the schedule adopted pursuant
to subdivision (a) in accordance with Part 22 (commencing with
Section 43001) of Division 2 of the Revenue and Taxation Code
and shall be deposited in the Toxic Substances Control Account.
The revenues shall be available, upon appropriation by the
Legislature, for the purposes specified in subdivision (b) of Section
25173.6.

(e) For purposes of this section, the number of employees
employed by an organization is the number of persons employed
in this state for more than 500 hours during the calendar year
preceding the calendar year in which the fee is due.

(f) The fee rates specified in subdivision (c) are the rates for the
1998 calendar year. Beginning with the 1999 calendar year, and
for each calendar year thereafter, the State Board of Equalization
shall adjust the rates annually to reflect increases or decreases in
the cost of living during the prior fiscal year, as measured by the
Consumer Price Index issued by the Department of Industrial
Relations or by a successor agency.

(g) (1) Pursuant to paragraph (3) of subsection (c) of Section
104 of the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C.
Sec. 9604(c)(3)), the state is obligated to pay specified costs of
removal and remedial actions carried out pursuant to the federal
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).

(2) The fee rates specified in subdivision (c) are intended to
provide sufficient revenues to fund the purposes of subdivision
(b) of Section 25173.6, including appropriations in any given fiscal
year to fund the state’s obligation pursuant to paragraph (3) of
subsection (c) of Section 104 of the federal Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, as amended (42 U.S.C. Sec. 9604(c)(3)).

begin delete

(3) The department shall annually determine the state’s
obligation under paragraph (3) of subsection (c) of Section 104 of
the federal Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (42 U.S.C.
Sec. 9604(c)(3)), and shall include the determination in the annual
report submitted to the Legislature with the Governor’s Budget
specified in subdivision (c) of Section 25173.7.

(4) Any changes in the fee rates approved by the Legislature in
the annual Budget Act pursuant to this subdivision shall have effect
only on the fee payment that is due and payable by the end of
February in the fiscal year for which that annual Budget Act is
enacted.

end delete

(h) This section does not apply to a nonprofit corporation
primarily engaged in the provision of residential social and personal
care for children, the aged, and special categories of persons with
some limits on their ability for self-care, as described in SIC Code
8361 of the Standard Industrial Classification (SIC) Manual
published by the United States Office of Management and Budget,
1987 edition.

(i) The changes made to this section by the act of the 2005-06
Regular Session of the Legislature amending this section shall not
increase fee revenues in the 2006-07 fiscal year.