BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            SB 654
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          |Author:    |de León                                              |
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          |Version:   |4/21/2015              |Hearing      |4/29/2015       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Rachel Machi Wagoner                                 |
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          SUBJECT:  Hazardous waste:  facilities permitting

            ANALYSIS:
          
          Existing law:

          1.Under the federal Resource Conservation and Recovery Act  
            (RCRA) of 1976, governs the disposal of hazardous waste:

              A.    Through regulation, sets standards for the treatment,  
                storage, transport, tracking and disposal of hazardous  
                waste in the United States.   

              B.    Authorizes states to carry out many of the functions  
                of the federal law through their own hazardous waste laws  
                if such programs have been approved by the United States  
                Environmental Protection Agency (US EPA).

          2.Under the California Hazardous Waste Control Act (HWCA) of  
            1972:

             A.    Establishes the Hazardous Waste Control program;

             B.    Regulates the appropriate handling, processing and  
                disposal of hazardous and extremely hazardous waste to  
                protect the public, livestock and wildlife from hazards to  
                health and safety.

             C.    Implements federal tracking requirements for the  
                handling and transportation of hazardous waste from the  







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                point of waste generation to the point of ultimate  
                disposition.  

             D.    Establishes a system of fees to cover the costs of  
                operating the hazardous waste management program.


             E.    Authorizes the Department of Toxic Substances Control  
                (DTSC) to enforce federal law and regulations under RCRA.

             F.    Requires DTSC to grant and review permits and enforce  
                HWCA requirements for hazardous waste treatment, storage  
                and disposal facilities.

             G.    Authorizes the Department of Toxic Substances Control  
                to issue an order under the hazardous waste control laws  
                requiring that a violation be corrected and imposing a  
                civil penalty to specified persons, including a person who  
                has violated various provisions regulating hazardous waste  
                or provisions concerning removal and remedial actions for  
                hazardous substance releases. A person who is issued that  
                order is required to pay for oversight of the removal or  
                remedial action. 

          This bill:  Revises the Department of Toxic Substances Control's  
          (DTSC) permitting process and public participation requirements  
          for hazardous waste facilities.  Specifically, this bill:

          1. Changes the requirements pertaining to the renewal of  
             hazardous waste facilities permits by:

             A.    Requiring that a complete renewal application,  
                containing both Part A and Part B of the application, be  
                submitted by the facility at least two years prior to the  
                expiration of the permit.

             B.    Requires DTSC to approve or deny the permit renewal  
                application within 36 months or the facility is deemed in  
                violation of the HWCA.

            Background
          
          1. DTSC Permitting Renewal Process.  









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          Title 22, California Code of Regulations, Section 66270.10(h)  
             requires "[a]ny hazardous waste management facility with an  
             effective permit shall submit a new application at least 180  
             days before the   expiration date of the effective permit,  
             unless permission for a later date has been granted by the  
             Department.  The Department shall not grant permission for  
             applications to be submitted later than the expiration date  
             of the existing permit."  To ensure completion of the permit  
             renewal application at least 180 days before the expiration  
             date of the effective permit, it is recommended that the  
             renewal application be submitted at least one year before the  
             expiration date of the permit.  Current applicants who apply  
             to renew RCRA permits, where the renewal application contains  
             significant changes in the facility's operation (equal to a  
             Class 3 Permit modification), must hold an informal  
             preapplication meeting.  Permit renewals must meet all of the  
             land use and permitting requirements for obtaining a new  
             permit.   
              
          2. DTSC Permitting Program Backlog.  

             The DTSC Office of Permitting is authorized to issue  
             hazardous waste facilities permits, and to impose conditions  
             specifying the types of hazardous waste that may be accepted  
             for transfer, storage, treatment, or disposal in California.   
             Currently there are 117 permitted Operating Facilities,  
             including 28 Post Closure Facilities (closed and going  
             through final remediation) in the State, that provide for the  
             treatment, storage, or disposal of substances regulated as  
             hazardous waste under federal and state law.  A total of 1.82  
             billion pounds of California toxic waste were disposed of in  
             these facilities in 2012, with 62% treated to the point where  
             it no longer met toxic standards, and 38% placed in  
             landfills.  From a staffing standpoint, currently there are  
             29 authorized positions allocated to the Office of  
             Permitting, located in Sacramento, Berkeley, and Chatsworth.

             There has been significant dissatisfaction with the  
             performance of the Permitting Office, directed at the cost  
             and length of time in completing the permit process and a  
             perception that the Office does not deny or revoke permits as  
             often as it should to address community concerns. The  
             stakeholder interviews conducted as part of this study  
             identified the following major concerns:








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                                     The need to create clear and  
                         objective criteria for making denial/revocation  
                         decisions that are based on valid standards of  
                         performance and risk;
                                     A clear standard for violations that  
                         would lead to a denial or revocation;
                                     The need for the Department to  
                         document and measure a "scorecard" of attributes  
                         that would be perceived as a "good result" for  
                         the permitting program;

             DTSC entered into a contract with CPS HR Consulting on  
             February 1, 2013, to conduct a Permitting Process Review and  
             Analysis. 

             CPS HR was asked to review the existing permitting program  
             and develop a recommended standardized process with clear  
             decision criteria and corresponding standards of performance.  
             CPS HR was also asked to document the changes in the  
             permitting process over the past five years based primarily  
             on the record obtained from past internal review, and to  
             obtain perspectives of designated subject matter experts,  
             including representatives from the environmentalist,  
             environmental justice, and industry communities. This report  
             provides findings in each defined area.

             The study found that the overall average permitting process  
             time, which was 5.0 years prior to FY2003, improved to a 3.2  
             year average for the period from FY2003 to FY2007, before  
             again increasing to 4.3 years in the most recent time period  
             (from FY2008 through part of FY2013). So while there was an  
             improvement from the oldest period studied to the most  
             recent, the current trend is again towards longer processing  
             time.

             The study notes several key findings regarding the recent  
             increase in permit processing time, which is attributed to at  
             least two major factors: 

                  A.        There was a reduction in staffing in the  
                    office. Permitting staffing has been reduced  
                    significantly from 95.8 personnel years utilized in FY  
                    2007 to just 24.6 personnel years utilized in FY2009.  
                    The initial change was a response to the economic  








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                    recession in 2009, and its required state budget  
                    reductions.  However, less than 26.1 personnel years  
                    have been utilized in each year since that time.  

                  B.        The study found that the second primary reason  
                    for permitting delays is poor management practices.  
                    Between December 2009 and June 2013, the Permitting  
                    Program Office did not maintain consistent uniform  
                    management, supervisory structure or clear consistent  
                    organizational structure. This is demonstrated by the  
                    fact that program managers were either reassigned to  
                    other duties or vacant for a majority of the time  
                    period from July 2009 through July 2013, while program  
                    supervisor positions for all personnel in the unit  
                    were either not authorized or vacant for more thaC.n  
                    half of this period. In other words, there was a  
                    fouryear period in which direct supervision of  
                    personnel lapsed. 

             This study concludes that while many aspects of the work  
             process required for a permit renewal are well defined and  
             well known, most of the difficult or complex steps are not  
             clear or well defined.  This is one of the most likely  
             reasons for prolonged delays, and for future process  
             improvement.

             The study further stated that much of the "process" knowledge  
             within the Office of Permitting is in the individual  
             professional knowledge of the DTSC staff which is  
             interpretive and not documented.  More importantly, a  
             re-review of the Permit Renewal Team effort of 20072009 has  
             not found any structural changes or permanent process changes  
             that have been implemented that could cause significantly  
             improved permit renewals in the future. According to CPS HR  
             the lessons learned from the Renewal team effort appear to  
             have been misconstrued, and the actions taken after the team  
             experience were damaging to management and supervision in the  
             unit.

             In 2014, DTSC released its Permitting Enhancement Work Plan  
             as a comprehensive roadmap to guide efforts to improve DTSC's  
             ability to issue protective, timely and enforceable permits  
             using more transparent standards and consistent procedures.









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             In the 2014-15 Budget Act DTSC requested and was granted 8  
             limited-term positions and $1.2 million for reduction of  
             backlogged permitting application review.

             As part of the 2015-16 Budget Act DTSC has requested an  
             additional $1.632 million and 16 limited term positions for  
             two years to address the permitting backlog.

          3. Exide Technologies, Vernon, California.  

          The Exide facility in Vernon, California was one of two  
             secondary lead smelting facilities in California which  
             recovered lead from recycled automotive batteries.  It has  
             over 100 employees.  It recycles 23,000 to 41,000 batteries  
             daily and has an average production of 100,000 to 120,000  
             tons of lead per year.  

             The facility has been used for a variety of metal fabrication  
             and metal recovery operations since 1922.  Previous owners  
             have included Morris P. Kirk & Sons, Inc., NL Industries,  
             Gould Inc., and GNB Inc. 

             The facility in Vernon has been operating with an interim  
             hazardous waste facility permit since 1981.  

             In recent years, the Exide facility has brought to light the  
             failings of DTSC's Permitting Program.  Over the 30 years  
             that the facility operated with an interim permit, there were  
             many violations of the permit as well as other regulatory  
             standards, such as those by the South Coast Air Quality  
             Management District, which caused environmental damage and  
             risk to public health.  

             In March, 2015 it was announced that an agreement was reached  
             between the United States Department of Justice and Exide  
             Technologies to permanently close the battery recycling  
             facility in Vernon, CA, and in order to avoid criminal  
             prosecution, Exide Technologies further agreed to a  
             stipulation and order with DTSC to complete remediation  
             activities as specified in the stipulation and order issued  
             by DTSC.  

             This example of a failed process calls into question whether  
             the statutory authorizations, requirements and direction to  








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             DTSC is adequate to ensure that the program runs correctly  
             and is appropriately protective of public health and the  
             environment, especially in the vulnerable communities where  
             there are permitted facilities.

             Additionally, it calls into question whether there are other  
             facilities that may currently be similarly causing harm to  
             the communities in which they are located.

            Comments
          
          1. Purpose of Bill.  According to the author, DTSC has a  
             long-standing failure to protect California's disadvantaged  
             communities through its lack of oversight and enforcement of  
             its hazardous waste facilities permitting process.  

             The author states that DTSC's consistent failure to complete  
             the permitting renewal process prior to permit expiration has  
             been a systemic problem with the program since its inception.  
              DTSC's regulations require a submittal of a permit renewal  
             application only six months prior to the permit expiration,  
             yet the time it takes for DTSC to review and decide on that  
             renewal is often two or more years.  It doesn't make sense to  
             have a timeline that assumes that the permit will expire and  
             then allow facilities to continue to operate without a  
             current permit under the assumption that the facility's  
             permit renewal should or will be granted.

             The author further states, that the drawn out process has  
             created de facto permitted operation of hazardous waste  
             facilities without adequate review of the facilities permit  
             and operation.  

             The author asserts that this negligence in permitting review  
             puts our most pollution vulnerable communities at risk.

             SB 654 will correct this failure in permitting by requiring  
             earlier submittal of permit renewal applications and states  
             that if the process is not complete then the facility will be  
             in violation with the HWCA.
            
          Related/Prior Legislation
          
          SB 673 (Lara) revises the Department of Toxic Substances  








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          Control's (DTSC) permitting process and public participation  
          requirements for hazardous waste facilities by creating the  
          Community Oversight Committee and by revising the statutes  
          related to permitting regulation.  This measure will be heard by  
          the Senate Environmental Quality Committee on April 29, 2015.

          SB 712 (Lara), Chapter 833, Statutes of 2014, requires the  
          Department of Toxic Substances Control (DTSC), on or before  
          December 31, 2015, to issue a final permit decision on an  
          application for a hazardous waste facilities permit that is  
          submitted by a facility operating under a grant of interim  
          status on or before January 1, 1986, by either issuing a final  
          permit or a final denial of the application.

          SB 812 (De León, 2014) would have required DTSC to adopt  
          regulations by January 1, 2017, to specify conditions for new  
          permits and the renewal of existing permits, as specified, and  
          establishes deadlines for the submission and processing of  
          facility applications, as specified.  SB 812 was vetoed by  
          Governor Brown.
            

          SOURCE:                    Author  

           SUPPORT:               None on file  

           OPPOSITION:    

          Western Placer Waste Management Authority  
          

           
                                          
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