BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 673  


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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 673  
          (Lara) - As Amended July 8, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill revises the Department of Toxic Substance Control's  
          (DTSC) permitting process and creates an oversight committee.   
          Specifically, this bill: 









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          1)Establishes the DTSC California Communities Committee  
            (Committee) within DTSC and requires the Committee to make  
            recommendations to increase public participation and the  
            transparency of the decision making process, Requires the  
            Committee to serve as a resource and liaison for communities  
            and residents in communication with DTSC.  Sunsets the  
            Committee on January 1, 2021.



          2)Requires the Committee to be comprised of thirteen members  
            appointed by: California Environmental Protection Agency (five  
            members); Senate Rules Committee (four members); and Speaker  
            of the Assembly (four members).  Provides Committee members  
            may receive per diem and serve at the pleasure of the  
            respective appointing authorities.



          3)Requires DTSC, by July 1, 2018, to adopt additional criteria  
            for use in determining whether to issue a new or modified  
            hazardous waste facilities permit or a renewal of a hazardous  
            waste facilities permit.  Requires DTSC to develop and  
            implement programmatic reforms designed to improve the  
            protectiveness, timeliness, legal defensibility, and  
            enforceability of DTSC's permitting program.



          4)Requires DTSC to consider vulnerable communities in making  
            permit decisions using the CalEnviroScreen tool, local and  
            regional health risk assessments, the region's federal Clean  
            Air Act attainment status, and other indicators of community  
            vulnerability, cumulative impact, and potential risks to  
            health and well-being.











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          5)Requires DTSC to consider minimum facility setback distances  
            from sensitive receptors, such as schools, child care  
            facilities, residences, hospitals, elder care facilities, and  
            other sensitive locations when making permit decisions.



          6)Requires DTSC to establish criteria for the completion of a  
            health risk assessment associated with facility permit  
            reviews.



          7)Requires a person to pay for oversight of any corrective  
            action required of the person with respect to hazardous waste.



          FISCAL EFFECT:


          1)Increased one-time cost of $600,000 for DTSC to revise  
            permitting regulations (Hazardous Waste Control Account).



          2)Increased ongoing annual costs of $300,000 to staff the CA  
            Communities Committee (Hazardous Waste Control Account).
          COMMENTS:


          1)Rationale.  An external peer review of permit reforms  
            undertaken by DTSC found significant dissatisfaction with the  
            performance of the department, and in particular, a perception  
            that the office is not responsive to community concerns. That  
            report also recommended that clear and objective permitting  
            criteria should be developed to establish when permits should  
            be revoked or not renewed. 









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            Additionally, recent high profile cases involving permitted  
            facilities such as the Exide Technologies battery recycling  
            facility in Vernon, CA, and the Kettleman Hills Hazardous  
            Waste Facility in Kings County have raised significant  
            concerns from the communities surrounding the facilities and  
            have led to criticism of the department's permitting  
            procedures and responsiveness to community concerns. 


            This bill addresses DTSC shortcomings raised by peer reviews  
            and community reactions.


          2)Background.  Under the California Hazardous Waste Control Act,  
            facilities that treat, store, handle, and/or dispose of  
            hazardous waste are required to be permitted by the DTSC. The  
            hazardous waste facility permit specifies specific  
            requirements for the facility to ensure safe operation. There  
            are currently 117 facilities permitted by DTSC. While these  
            permits expire after 10-years, the facility is allowed to  
            continue to operate past this date while DTSC considers their  
            permit renewal application. These permits are referred to as  
            "continued permits." 
            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.


          3)Permit Process Review and Analysis.  DTSC entered into a  








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            contract with CPS HR Consulting 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 records obtained from past internal review, and to obtain  
            perspectives of designated subject matter experts, including  
            representatives from the environmentalist, environmental  
            justice, and industry communities. 





            The CPS review found that the overall average permitting  
            process time, which was 5.0 years prior to 2003, improved to a  
            3.2 year average for the period from 2003 to 2007, before  
            increasing to 4.3 years in the most recent time period.  While  
            there was an improvement from the oldest period studied to the  
            most recent, the current trend is towards longer processing  
            times again.


          4)Related Legislation. SB 654 (de Leon) requires a complete  
            permit renewal application to be submitted by a regulated  
            facility at least two years prior to the expiration of the  
            permit.  This bill requires DTSC 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 pending in  
            this committee.  


          5)Prior Legislation. The committee established by this bill is  








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            substantially similar to the committee that was proposed by SB  
            812 (De León, 2014) which was vetoed by the Governor.





          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081