BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 673 (Lara) - Hazardous waste. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 5, 2015 |Policy Vote: E.Q. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 18, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 673 would make additional requirements of the Department of Toxic Substance Control's (DTSC) permitting process and create an DTSC oversight committee. Fiscal Impact: Ongoing costs of $1.2 annually from the Hazardous Waste Control Account (special) beginning in 2015-16 and continuing through 2020-21to DTSC to administer and staff the DTSC California Communities Committee. One-time costs of no more than $600,000 costs from the Hazardous Waste Control Account (special) to develop additional permit criteria regulations and financial assurance regulations. Background: Under the California Hazardous Waste Control Act, facilities that treat, store, handle, and/or dispose of hazardous waste are SB 673 (Lara) Page 1 of ? required to be permitted by the DTSC. The hazardous waste facility permit outlines specific requirements for the facility to ensure safe operation. Proposed Law: SB 673 would revise the Department of Toxic Substance Control's (DTSC) permitting process and public participation requirements for hazardous waste facilities. Specifically, this bill would: 1.Require a person to pay for oversight of any correction action for which they are required with respect to hazardous waste. 2.Establish the DTSC California Communities Committee (committee) until January 1, 2021, which would comprise of five members appointed by the Secretary for Environmental Protection, four by the Speaker of the Assembly, and four by the Senate Committee on Rules, all of whom would serve at the pleasure of his or her appointing authority. 3.Charge the committee with providing information on the concerns of individual communities impacted by DTSC's permitting and for making recommendations for changes to that process. 4.Require the committee to meet at least three times in 2016 and quarterly thereafter with the secretary for Environmental Protection Agency, the director of DTSC, and DTSC staff. Its meetings would be required to be noticed and open to the public and subject to the Bagley-Keene Open Meeting Act. 5.Require DTSC to adopt regulations by January 1, 2018 that would establish additional criteria by which DTSC will base its permitting decisions. At a minimum, the additional criteria would be required to include the following: The number and type of past violations. The vulnerability and existing health risks to nearby populations. Minimum setback distances from sensitive populations. SB 673 (Lara) Page 2 of ? Evidence of financial responsibility, qualifications of ownership, and continuity of ownership and operation. Provision of financial assurances. 1.Require DTSC to develop and implement programmatic reforms by January 1, 2018, that are designed to improve the protectiveness, timeliness, legal defensibility, and enforceability of the DTSC permitting process. Related Legislation: SB 654 (de Leon) would require that a complete permit renewal application be submitted by a regulated facility at least two years prior to the expiration of the permit. DTSC would be required to approve or deny the permit renewal application within 36 months of the permit's expiration or the facility would be deemed in violation of the California Hazardous Waste Control Act. SB 654 is currently on the Senate Appropriations Suspense File. Staff Comments: The committee established by this bill is substantially similar to the committee that was proposed by SB 812 (de Leon, 2014) which was vetoed by the Governor. Similar to SB 812, DTSC preliminarily estimates that it will cost approximately $1.2 million to provide administration and staff to the committee. Staff notes that this is a relatively large cost for an oversight committee. However, given the ongoing criticisms of DTSC and its regulation of hazardous waste facilities, staff believes it is reasonable to assume that the committee will address a wide range of issues and have substantial involvement from the public. To adopt the expanded regulations regarding facilities permitting, DTSC estimates that it would need one-time costs of $600,000 to develop the regulations. However, because the bill would allow DTSC to spread this effort over two years, the regulatory costs may be lower. DTSC believes that the programmatic reforms required by the bill SB 673 (Lara) Page 3 of ? are consistent with the department's current workplan to improve their permitting process. Therefore, DTSC does not anticipate any additional costs from this portion of the bill. -- END --