Senate Bill No. 654

Introduced by Senator De León

February 27, 2015

An act to amend Section 25245 of the Health and Safety Code, relating to hazardous waste.

LEGISLATIVE COUNSEL’S DIGEST

SB 654, as introduced, De León. Hazardous waste: facility closure.

(1) Existing law, as part of the hazardous waste control law, requires the Department of Toxic Substances Control to adopt, and revise when appropriate, standards and regulations to, among other things, specify the financial assurances to be provided by an owner or operator of a hazardous waste facility that are necessary to provide for the cost of closure and subsequent maintenance of the facility. A violation of a regulation adopted pursuant to the hazardous waste control law is a crime.

This bill would additionally require the standards and regulations to specify the financial assurances to be provided to respond to the cost of closure, cleanup, and subsequent maintenance of the facility. Since a violation of a regulation adopted pursuant to the hazardous waste control law would be a crime, the bill would impose a state-mandated local program.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25245 of the Health and Safety Code is
amended to read:

25245.  

(a) The department shall adopt, and revise when
appropriate, standards and regulations begin delete which end delete begin insert that end insert shall do both of
the following:

(1) Specify the financial assurances to be provided by the owner
or operator of a hazardous waste facility that are necessary to
respond adequately to damage claims arising out of the operation
of that type of facility and to provide for the cost of begin delete closure end delete begin insert closure,
cleanup, end insert and subsequent maintenance of the facility, including,
but not limited to, the monitoring of groundwater and other aspects
of the environment after closure. If the facility is required to obtain
a permit under the federal act, the financial assurance shall be a
trust fund, surety bond, letter of credit, insurance, or any other
mechanism authorized under the federal act and the regulations
adopted pursuant to the federal act. If the facility is not required
to obtain a permit under the federal act, the financial assurance
may include any other equivalent financial arrangement acceptable
to the department.

(2) Provide that every hazardous waste facility can be closed
and maintained for at least 30 years subsequent to its closure in a
manner that protects human health and the environment and
minimizes or eliminates the escape of hazardous waste constituents,
leachate, contaminated rainfall, and waste decomposition products
to ground and surface waters and to the atmosphere.

(b) In adopting regulations pursuant to subdivision (a), to carry
out the purposes of this chapter, the department may specify policy
or other contractual terms, conditions, or defenses begin delete which end delete begin insert that end insert are
necessary or are unacceptable in establishing evidence of financial
responsibility.

(1) If an owner or operator is in bankruptcy pursuant to Title
11 of the United States Code, or where, with reasonable diligence,
jurisdiction in any state or federal court cannot be obtained over
an owner or operator likely to be solvent at the time of judgment,
begin delete any end delete begin insert a end insert claim arising from conduct for which this section requires
evidence of financial responsibility may be asserted directly against
the guarantor who provided the evidence of financial responsibility.

(2) The total liability of any guarantor is limited to the aggregate
amount begin delete which end delete begin insert that end insert the guarantor has provided as evidence of
financial responsibility to the owner or operator under this chapter.

(3) This subdivision does not limit any other state or federal
statutory, contractual, or common law liability of a guarantor to
the owner or operator, including, but not limited to, the liability
of the guarantor for bad faith in either negotiating or in failing to
negotiate the settlement of begin delete any end delete begin insert a end insert claim.

(4) This subdivision does not diminish the liability of any person
under Section 107 or 111 of the begin insert federal end insert Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(42 U.S.C. Secs. 9607 and 9611).

(5) For purposes of this subdivision, “guarantor” means begin delete any end delete begin insert a end insert
person, other than the owner or operator, who provides evidence
of financial responsibility for an owner or operator under this
section.

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.