BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 673 (Lara) - Hazardous waste.
          
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          |Version: May 5, 2015            |Policy Vote: E.Q. 5 - 2         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 18, 2015      |Consultant: Marie Liu           |
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          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  







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          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.








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                     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  








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          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.




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