BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 654


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          SENATE THIRD READING


          SB  
          654 (De León)


          As Amended  September 2, 2015


          Majority vote


          SENATE VOTE:  21-16


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Environmental   |5-2  |Alejo, Gonzalez,      |Dahle, Gallagher    |
          |Safety          |     |Gray, McCarty, Ting   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |12-5 |Gomez, Bloom, Bonta,  |Bigelow, Chang,     |
          |                |     |Calderon, Nazarian,   |Gallagher, Jones,   |
          |                |     |Eggman, Eduardo       |Wagner              |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Quirk, Rendon, Weber, |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Modifies the permitting process for hazardous waste  
          facilities permitted by the Department of Toxic Substances  








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          Control (DTSC).  Specifically, this bill:  




          1)Requires the owner or operator of a facility to submit a  
            complete application for a permit renewal at least 2 years  
            prior to the expiration date of the permit.


          2)Provides that when a complete renewal application has been  
            submitted before the end of a permit's fixed term, the permit  
            shall be deemed extended for a period not to exceed 36 months  
            until the renewal application is approved or denied.


          3)Requires the 36 month time period to include any applicable  
            rights to appeal the DTSC action on a permit. 


          4)Provides that an alternative timeline would apply to renewal  
            for permits that expire before January 1, 2019.


          5)Provides that permits applications would be provided to the  
            DTSC independent review panel.
          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, several fiscal effects from this bill including the  
          following:


          1)Increased ongoing DTSC costs of approximately $1.2 million  
            (Hazardous Waste Control Account) for staffing necessary to  
            make permit decisions within the required timeframes.


          2)Increased ongoing DTSC costs of approximately $880,000 to  
            extend one-time funding to address the current backlog and  
            ensure all permits are up to date in the future (Hazardous  








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            Waste Control Account).


          3)Increased one-time DTSC costs of approximately $65,000  
            (Hazardous Waste Control Account) to revise existing  
            regulations.


          





          COMMENTS: 


          Need for this 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 drawn out process has created de facto permitted operation  
          of hazardous waste facilities without adequate review of the  
          facilities permit and operation.  








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          "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 Hazardous Waste Control Act."


          Permitting hazardous waste storage, treatment, and disposal  
          facilities:  DTSC is responsible for the review of Resource  
          Conservation and Recovery Act (RCRA) and non-RCRA hazardous  
          waste permit applications to ensure safe design and operation;  
          issuance/denial of operating permits; issuance of post closure  
          permits; approval/denial of permit modifications;  
          issuance/denial of emergency permits; review and approval of  
          closure plans; provide closure oversight of approved closure  
          plans; issuance/denial of variances; provide assistance to  
          regulated industry on permitting matters; and provide for public  
          involvement.


          Hazardous waste facility permitting backlog:  DTSC currently has  
          a backlog of 24 permits operating as "continued permits" with  
          pending permit renewal applications.  The backlog is anticipated  
          to grow to 34 pending applications by 2017.  Facilities  
          operating under continued permits are held to the standards in  
          the original permit and do not have the advantage of the most  
          recent technologies, practices, and safeguards to prevent  
          releases of hazardous waste into the environment. In addition,  
          assessments to identify releases of hazardous waste from the  
          facility will not have been conducted, potentially allowing  
          contaminants to migrate further, possibly causing increased  
          environmental damage and public exposure.


          DTSC Advisory Committee:  Current law establishes an independent  
          review panel to make recommendations regarding improvements to  
          DTSC's permitting, enforcement, public outreach and fiscal  
          management.   SB 83 (Senate Budget Committee), Chapter 24,  








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          Statutes of 2015, established of an independent review panel at  
          DTSC to make recommendations regarding improvements to the  
          department's permitting, enforcement, public outreach, and  
          fiscal management.




          Analysis Prepared by:                                             
                          Bob Fredenburg / E.S. & T.M. / (916) 319-3965     
                                                                  FN:  
          0001943