BILL ANALYSIS Ó SB 654 Page 1 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 SB 654 Page 2 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 SB 654 Page 3 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. SB 654 Page 4 "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, SB 654 Page 5 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