BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 162| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 162 Author: Galgiani (D) Amended: 5/5/15 Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE: 3-3, 4/15/15 (FAIL) AYES: Gaines, Bates, Pavley NOES: Wieckowski, Hill, Leno NO VOTE RECORDED: Jackson SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 4/29/15 AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza and Nielsen SUBJECT: Treated wood waste: disposal SOURCE: Western Wood Preservers Institute DIGEST: This bill extends the sunset date for Alternative Management Standards (AMS) for treated wood waste (TWW) to June 1, 2020, and requires the Department of Toxic Substances Control (DTSC) to conduct a comprehensive evaluation of the AMS and make findings regarding the adequate protection of public health and the environment. ANALYSIS: Existing law: SB 162 Page 2 1)Under the Hazardous Waste Control Act (HWCA), provides for the registration, licensure and permitting of hazardous waste generators, transporters and storage, transfer and disposal facilities. HWCA requires the DTSC to implement and enforce the HWCA. 2)Defines "treated wood" as wood that has been treated with a chemical preservative for purposes of protecting the wood against attacks from insects, microorganisms, fungi, and other environmental conditions that can lead to decay of the wood and the chemical preservative is registered pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act. 3)Defines "wood preserving industry" as business concerns, other than retailers, that manufacture or sell treated wood products in the state. 4)Requires TWW to be disposed of in either a Class I hazardous waste landfill, or in a composite-lined portion of a solid waste landfill unit that meets specified requirements. 5)Requires each wholesaler and retailer of treated wood and treated wood-like products to conspicuously post specified warning information at or near the point of display or customer selection of treated wood and treated wood-like products used for fencing, decking, retaining walls, landscaping, outdoor structures, and similar uses. 6)Requires the DTSC, in consultation with the California Integrated Waste Management Board (now the Department of Resources, Recycling and Recovery), the State Water Resources Control Board, and the Office of Environmental Health Hazard Assessment, and after consideration of any known health hazards associated with treated wood waste, to adopt regulations, as specified, establishing AMS for TWW. Authorizes the DTSC to subsequently revise these regulations as necessary. 7)Provides that the AMS shall remain in effect June 1, 2017. 8)Requires the DTSC, on or before June 1, 2011, to prepare and post on its Internet Web site a report that makes a SB 162 Page 3 determination regarding the successful compliance with, and implementation of, TWW laws and regulations. This bill extends the above-stated sunset date to June 1, 2020, and requires the DTSC to conduct a comprehensive evaluation of the AMS and make findings regarding the adequate protection of public health and the environment. Background Purpose of bill. The author states that this bill "would extend the operation of provisions in current law that require TWW to be disposed of in either a Class I hazardous waste landfill or in a composite-lined portion of a solid waste (Class II and III) landfill and maintains the existing management standards established in the original statute in 2004. This bill extends current law as it sunsets on June 1, 2017." The author states that "industrial customers of treated wood, such as railroads, utilities, ports, marinas, harbors and parks are among the users of treated wood who benefit from the continuation of the current disposal structure of treated wood waste in California. Additionally, contractors and consumers of housing and decking material would assume the benefit of making current law permanent." The author asserts that "this statute has been successful for business, the environment and regulators." California's TWW Program. During the 1980s, the DTSC issued a number of variances authorizing the disposal of wood waste treated with wood preservatives at lined municipal landfills rather than at Class I facilities if the water quality permits allow for such disposal. In the late 1990s, the variances were scrutinized as not providing sufficient protection to public health and the environment and the DTSC opined that the variances were illegal and intended to rescind them in the early 2000s. The treated wood industry pursued legislation essentially codifying the variances previously granted and proposed to be rescinded by the SB 162 Page 4 DTSC. AB 1353 (Matthews, Chapter 597, Statutes of 2004), was enacted, creating disposal guidelines and regulatory authority for TWW, requiring the DTSC to adopt regulations establishing AMS for TWW and authorizing the disposal of TWW in either a Class I hazardous waste landfill, or in a composite-lined portion of a solid waste landfill unit that meets specified requirements. What is treated wood, TWW and why is it a hazardous waste? Treated wood contains hazardous chemicals that pose a risk to human health and the environment. Arsenic, chromium, copper, creosote, chromated copper arsenate (CCA) and pentachlorophenol are among the chemicals used to preserve wood and are known to be toxic or carcinogenic. Treated wood is commonly used to build telephone poles, road signs and marine pilings as well as decks, play structures and raised garden beds. Insects and mold can damage wood over time. To prevent that damage, wood is often treated with these pesticides and preservatives. Precautions have been taken by both the federal and state governments in concert with the treated wood industry to limit exposure to these harmful chemicals, especially in residential settings. As of January 1, 2004, United States Environmental Protection Agency does not allow CCA products to be used to treat wood intended for any of these residential uses such as: wood used in play-structures, decks, picnic tables, landscaping timbers, residential fencing, patios, and walkways/boardwalks. Wood preservatives help to extend the life of wood, however as the product degrades in the environment, preservatives can slowly leach into the surrounding soil or water. Additionally, touching the wood can leave residue on exposed skin. While the product is in use it is important to keep the wood sealed, providing a protective barrier, in order to prevent human exposure and leaching into surrounding soil and groundwater. SB 162 Page 5 At end of life, the wood and its sealant are degraded providing opportunity for the pesticides and preservatives to more easily leach out, presenting health and environmental risks. Proper handling is essential to protecting human health and the environment. Harmful exposure to these chemicals may result from exposure to both treated wood and TWW. The exposure pathways are touching, inhaling or ingesting the chemicals (e.g., handling of wood, especially wood with degraded sealant or degraded wood, inhaling sawdust and smoke or putting one's hand to one's mouth after touching degraded wood or wood with degraded sealant). What is hazardous waste and what are the statutory protections of the HWCA? A hazardous waste is a waste with a chemical composition or other property that make it capable of causing illness, death, or some other harm to humans and other life forms when mismanaged or released into the environment. Among the risks associated with hazardous waste are ground water contamination, air pollution, soil contamination, and human health risks associated with direct exposure. In California, HWCA provides for registration, training and/or permitting of hazardous waste generators, transporters/haulers, collection, storage or transfer facilities and disposal facilities. Additionally, HWCA provides for tracking of hazardous waste by all parties who handle the waste through a universal manifest system and ultimately requires that those manifests are provided to the DTSC in order to track, account for all hazardous waste in California, and enforce HWCA and the regulations implementing HWCA. This system creates accountability and when followed protects the environment and public health from release of, or exposure to, the hazards of the waste. Comments SB 162 Page 6 DTSC report. AB 1353 required the DTSC to conduct an evaluation of TWW statute and regulations and report back to the Legislature. In 2011, the DTSC issued a 12-page report that contained vague language and insufficient information to evaluate the program. For instance: "To obtain baseline information about compliance with AB 1353 and the AMS regulations, DTSC's Enforcement and Emergency Response Program has inspected a number of TWW generators and facilities. This initial survey reveals that the rate of compliance by TWW facilities is generally high. Generators of TWW appear to have more compliance issues, however." "DTSC's initial round of inspections found that TWW facilities are generally in compliance with most AMS regulatory requirements for storage and disposal of TWW, as well as with reporting requirements. Most commonly violated by TWW facilities was the requirement to provide specific occupational safety and health training to employees who handle TWW." "Based on a very limited number of inspections, TWW generators inspected by DTSC were found to have more - and more- serious - violations, some of which posed potential threats to the environment and /or public health." What do "a number," "appears to," "generally," "most commonly," "a very limited number," and "more-and more-serious" mean? The intent of the Legislature in asking for this report from the DTSC was to gain insight and information to evaluate the efficacy of allowing AMS for this wastestream, assuming that a scientific regulatory agency, such as the DTSC, would have provided a report with specific data to allow that evaluation. These vague statements raise significant concerns about what type of risks are actually occurring in the mishandling of this wastestream. It is clear that there are risks to worker safety, public SB 162 Page 7 health, and the environment. What is not clear is why and to what extent. To address the inadequacy of this report, SB 162 requires a thorough and robust evaluation based on comprehensive data collected on inspections of a more representative number of facilities and generators. Emerging issues - biomass conversion. In recent years, California has developed, explored and created incentives for alternative technologies for waste disposal that have the potential to harness our waste and use it for energy. One of these technologies is biomass conversion. Biomass conversion is the controlled combustion of agricultural waste, yard and garden clippings, leaves and forestry residue, wood chips, wood waste, and non-recyclable pulp or non-recyclable paper materials (when these substances are separated from other solid waste) {for the production of electricity}. According to the California Energy Commission (CEC), at present, biomass in California is converted to electric power though one of two processes based on the characteristics of the biomass. Two-thirds of California's biomass power capacity is generated by the direct combustion of solid biomass in boiler-steam turbine plants. The remainder is generated by the combustion of landfill gas and biogas in a range of power generating equipment, including boiler-steam turbine systems, reciprocating engines, and gas turbines. According to the California Biomass Collaborative, there are 27 wood waste and agricultural biomass conversion facilities in commercial operation in California. These plants are located throughout the state, often near timber harvest or agricultural operations. Could TWW be going into biomass conversion facilities? If so, those facilities do not have the technology built into the operation to extract the hazardous chemicals released during the combustion process. This would present a public health and environmental risk. SB 162 Page 8 Without adequate tracking and enforcement, there is no way to know if TWW could be going to these facilities. Additionally, the energy created by biomass conversion is eligible for diversion credit from the Department of Resources, Recycling and Recovery and renewable portfolio standard (RPS) credit from the CEC, which creates an incentive to send wood to these facilities. Related/Prior Legislation AB 1353 (Matthews, Chapter 597, Statutes of 2004) rescinded variances that had been previously issued by the DTSC allowing TWW to be disposed of in lined municipal landfills. At the same time AB 1353 provided for the disposal of TWW under similar restrictions as provided by the rescinded variance while DTSC adopted predisposal management and worker safety regulations. A final version of these regulations took effect July 1, 2007. SB 909 (La Malfa, Chapter 601, Statutes of 2011) extended the sunset of above statute related to TWW disposal requirements from 2012 to 2017, deleted obsolete sections of code, and specified the Web site and phone number that wholesalers and retailers of treated wood and treated wood-like products are required to post on warning signs so that consumers can access information about treated wood. (NOTE: This bill, as introduced, would have removed the sunset date, extending the program indefinitely. However, because the DTSC's report had not been released at the time the legislation was in the Legislature, the bill was amended to extend the sunset date.) FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According the Senate Appropriations Committee would have the following fiscal impact: Annual costs of $600,000 for two years from the Hazardous Waste Control Account (special) for required inspections and reporting requirements. SB 162 Page 9 Unknown annual costs for two years with the first year costs likely being a minimum of $150,000, to identify, then inspect, TWW generators that are not required to report to the DTSC under existing regulations. SUPPORT: (Verified5/28/15) Western Wood Preservers Institute (source) Allweather Wood, LLC American Forest & Paper Association American Wood Council Brooks Manufacturing Company California Cascade Industries California Chamber of Commerce California Construction and Industrial Materials Association California Farm Bureau Federation California Forestry Association California Manufacturers & Technology Association Chemical Industry Council of California Exterior Wood, Inc. JH Baxter McFarland Cascade Natural Wood Solutions, LLC Osmose Railway Tie Association Republic Services, Inc. Rio Tinto Minerals Ruetgers Canada, Inc. Rural County Representatives of California Solid Waste Association of Northern America, California Chapters Southeastern Lumber Manufacturers Association Southern Pressure Treaters Association Treated Wood Council West Coast Lumber & Building Material Association Western Wood Preservers Institute Wine Institute OPPOSITION: (Verified5/28/15) SB 162 Page 10 None received ARGUMENTS IN SUPPORT: According to the sponsor, "this legislation will continue to provide clear statutory guidance for the disposal of treated wood waste in either a Class I hazardous waste landfill or in a composite-line portion of a solid waste (Class II and III) landfill. When treated wood waste is properly disposed of, it becomes non-hazardous waste." Prepared by:Rachel Machi Wagoner / E.Q. / (916) 651-4108 5/31/15 13:03:47 **** END ****