BILL ANALYSIS Ó SB 673 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 673 (Lara) - As Amended July 8, 2015 ----------------------------------------------------------------- |Policy |Environmental Safety and Toxic |Vote:|5 - 1 | |Committee: |Materials | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: SB 673 Page 2 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. SB 673 Page 3 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. SB 673 Page 4 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 SB 673 Page 5 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 SB 673 Page 6 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