BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                                2015 - 2016  Regular 

          SB 612 (Jackson) - Hazardous materials
          
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          |Version: April 6, 2015          |Policy Vote: E.Q. 7 - 0         |
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          |Urgency: No                     |Mandate: Yes (see staff         |
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          |Hearing Date: April 27, 2015    |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  SB 612 would make various changes to the Aboveground  
          Petroleum Storage Act and other aspects of the unified program  
          to regarding the duties and responsibilities of local and state  
          administrators.




          Fiscal  
          Impact:  First-year costs of $150,000 and $100,000 ongoing from  
          the Unified Program Account (special) to the State Fire Marshall  
          for additional responsibilities under the Aboveground Petroleum  
          Storage Act.


          Background:  Existing law requires the California Environmental Protection  
          Agency (CalEPA) to implement a unified hazardous waste and  
          hazardous materials management regulatory program (unified  







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          program). The program is administered by unified program  
          agencies (UPAs), which is the state, a designated local agency,  
          or one of 83 local government agencies that have certified by  
          the secretary of CalEPA as having met specified requirements  
          necessary to implement the unified program agency (certified  
          unified program agency or CUPA). The Department of Toxic  
          Substances Control, the Office of the State Fire Marshal (SFM),  
          the California Emergency Management Agency, and the State Water  
          Resources Control Board have various oversight responsibilities  
          in the unified program.  
          Existing law requires UPAs to establish area plans for emergency  
          response to a release or threatened release of a hazardous  
          material. UPAs also responsible for requiring businesses that  
          handles hazardous materials to establish and implement business  
          plans that include an inventory of specified information that  
          would necessary in a response to a release or threatened release  
          of a hazardous material. Part of the business plan is a site map  
          that includes information such as access and exit points and  
          emergency shutoffs.


          Existing law establishes the Aboveground Petroleum Storage Act  
          (APSA) which is largely administered by the CUPAs with oversight  
          by the SFM.


          Existing law (HSC §25404.5) requires CUPAs to institute a single  
          fee system, which is required to include a surcharge to cover  
          the necessary and reasonable costs of the state agencies in  
          carrying out their responsibilities in the unified program. The  
          surcharge amount is determined by the CalEPA secretary annually.




          Proposed Law:  
            This bill would make various changes to the state's hazardous  
          waste laws. Specifically, this bill would:
           Modify definitions, including the definition of "aboveground  
            storage tank" and "storage" to help align responsibilities  
            between the APSA, the Underground Storage Tank law, and the  
            Hazardous Waste Control Act. One of these changes clarifies  
            that a storage tank that is an underground area in a structure  
            (such as a vault or basement), can be regulated as an above  








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            ground tank.


           Clarifying visual inspection requirements under the APSA.


           Require the SFM to adopt regulations implementing the APSA. 


           Require the SFM to approve alternative inspection and  
            compliance plans submitted by an UPA under the APSA.


           Expand requirements of the contents of a business plan  
            submitted under the APSA.


           Allow an UPA to make additional requirements of the site map  
            that is part of a business plan.


           Specify the authority of UPAs to inspect and regulate used oil  
            collection centers.


           Make various technical changes to the hazardous waste laws.


           Make legislative findings and declarations relative to the  
            unified program, including findings in the California  
            Accidental Release Prevention Program, that the owners and  
            operators of stationary sources dealing with hazardous  
            materials have a general duty to identify hazards which might  
            result in spills and to take necessary steps to prevent spills  
            and minimize the consequences of accidental spills that do  
            occur.


          Related  
          Legislation:  
           SB 1261 (Jackson) Chapter 715, Statutes of 2014 revised and  
            recast the area and business plan requirements for CUPAs.










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           SB 483 (Jackson) Chapter 419, Statutes of 2013 revised and  
            recast the area and business plan requirements including  
            authorization for CUPAs to implement and enforce specific  
            provisions.


           AB 1566 (Wieckowski) Chapter 532, Statutes of 2012 established  
            the SFM as the state oversight agency under the APSA.




          Staff  
          Comments:  This bill would make the SFM's authority to adopt the  
          regulations to implement the APSA a mandatory activity. The  
          approved 2013-14 budget provided two additional positions for  
          the SFM for its then-new oversight responsibilities under the  
          APSA due to the passage of AB 1566, including the development of  
          implementing regulations. This regulatory process is currently  
          underway and is anticipated to be completed by the end of 2015.  
          As these regulatory actions are already funded, this bill would  
          not necessitate any additional costs for regulation development.  
            
          This bill would increase the duties of the SFM in overseeing the  
          APSA, including training CUPAs and fire code officials on the  
          changes proposed in the bill. The SFM estimates that its  
          expanded duties will require an additional PY at an ongoing cost  
          of $100,000 annually with an additional $50,000 in one-time  
          costs in the first year.


          This bill creates a state mandate on local agencies as it  
          modifies existing crimes and creates new crimes. However, costs  
          associated with these mandates are not reimbursable pursuant to  
          the California Constitution. Additionally, any mandates of the  
          CUPAs are also not reimbursable as the CUPAs have existing fee  
          authority to recover their costs.




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