BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 162|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   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:









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          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  








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            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  








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          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.









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          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








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          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  








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          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. 









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          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.








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           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)








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          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


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