BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   June 14, 2016


           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS


                                  Luis Alejo, Chair


          SB  
          820 (Hertzberg) - As Amended April 12, 2016


                                  PROPOSED CONSENT


          SENATE VOTE:  38-0


          SUBJECT:  Hazardous materials:  California Land Reuse and  
          Revitalization Act of 2004


          SUMMARY:  Extends the sunset on the California Land Reuse and  
          Revitalization Act (Act). Specifically, this bill:  


             1)   Extends, from January 1, 2017, to January 1, 2027, the  
               sunset on the Act.  


             2)   Extends, from January 1, 2017, to January 1, 2027, the  
               sunset on the qualification for immunity under the Act.   


          EXISTING LAW:   


             1)   Establishes the Act to cleanup and reuse hazardous  








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               material contaminated sites in a manner protective of  
               public health and safety and the environment, and to  
               encourage the development and redevelopment of unused or  
               underused properties in urban areas. (Health & Safety Code  
               (H&S) § 25395.61, et seq.)


             2)   Sunsets the Act on January 1, 2017. (H&S § 25395.109)


             3)   Provides immunity from response costs or other relief  
               associated with the release or threatened release of a  
               hazardous material at a site for a bona fide ground tenant.  
               (H&S § 25395.104)


             4)   Authorizes a person who, before January 1, 2017,  
               qualifies for immunity to continue to have that immunity on  
               and after January 1, 2017, if the person continues to be in  
               compliance with the requirements of the Act. (H&S §  
               25395.110)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, the impact of this bill is unknown, but would likely  
          result in $50,000 in special funds for the Department of Toxic  
          Substance Control (DTSC) oversight of clean-up projects and  
          minor costs for the State Water Resources Control Board. These  
          costs could be reimbursed through a fee-for-service agreement.    
            

          COMMENTS:  


          Need for the bill: According to the author, "[s]ince buyers of  
          brownfield sites may be liable for contamination they had no  
          role in, these hazardous sites can sit dormant for years and  
          decades. This not only contributes to urban blight, but poses  
          several environmental and health risks for surrounding  








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          communities. By extending [the Act], SB 820 preserves a great  
          tool for transforming polluted properties to become productive  
          uses of space adding economic value to blighted communities  
          while reducing environmental and health risks."


          Brownfield cleanup: Brownfields remain a continuing problem in  
          California and nationwide.  Those properties represent  
          abandoned, idled, or under-used sites formerly utilized for  
          industrial or commercial purposes, resulting in perceived or  
          actual contamination that deters redevelopment of the site.  As  
          cleanup costs can be expensive, especially when uncovering  
          unexpected hazardous materials during the cleaning of the site,  
          many of the sites remain vacant for many years.


          According to DTSC, there are an estimated 90,000 properties  
          throughout the state that remain vacant or underutilized due to  
          real or perceived environmental contamination.





          According to the Center for Creative Land Recycling, there are  
          approximately 2,355 hazardous properties throughout the State  
          that could benefit from the extension provided in this bill.

          California recognizes that cleaning up brownfield properties  
          frees previously unavailable land for productive reuse, while  
          taking development pressures off undeveloped open land, thereby  
          improving and protecting the environment.  Brownfields are  
          properties that are contaminated, or thought to be contaminated,  
          and are underutilized due to perceived remediation costs and  
          liability concerns. Timely investigations and cleanups of  
          brownfield sites promotes economic development and reinvestment  
          in California through post-cleanup development and sustainable  
          reuse. 









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          California Land Reuse and Revitalization Act of 2004 (Act): The  
          intent of the Act was stated as follows "The underutilization of  
          brownfield sites in the state results in environmental, social,  
          and economic detriments to the state and its citizens. The  
          estimated 120,000 brownfield sites in California represent an  
          opportunity for the development of housing, parks and mixed use  
          developments."


          The Act provides liability protections to bona fide purchasers,  
          innocent landowners and contiguous property owners, which are  
          intended to promote the cleanup and redevelopment of blighted  
          contaminated properties. The Act establishes a process for  
          eligible property owners to obtain the statutory immunities,  
          conduct a site assessment, and implement a response action, if  
          necessary, to ensure that the property is ready for reuse. 



          The sunset date for the enacting legislation, AB 389 (Montanez,  
          Chapter 705, Statutes of 2004), was 2010.  In 2010, SB 143  
          (Cedillo, Chapter 167, Statutes of 2009) extended the sunset to  
          January 1, 2017. 


          Immunity: SB 143 authorized a prospective purchaser who is in  
          contract to acquire a site and who qualifies as a bona fide  
          purchaser to enter into an agreement, which provides the  
          qualified bona fide prospective purchaser with immunity upon  
          site acquisition. 

          Traditionally, federal and state law provided that both current  
          and previous owners of a property are potentially liable for the  
          cost of cleanup of hazardous materials released on the property.  
           In 2002, federal law was modified to grant conditional immunity  
          to innocent and prospective purchasers and to innocent  
          contiguous property owners for previously occurring  
          contamination for which the innocent or prospective purchaser  








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          had no responsibility.  In 2004, California enacted the Act,  
          providing qualified immunity to innocent landowners, bona fide  
          purchasers, and contiguous property owners who did not cause or  
          contribute to a release of contaminants.  

          To take advantage of the provided immunity, qualifying  
          individuals must enter into an agreement with an oversight  
          agency that would require the individual to undertake various  
          tasks relating to cleanup of the hazardous materials on the  
          property.  

          Without a legislative sunset extension, the program will expire  
          on January 1, 2017. 


          Arguments in support: According to the Civil Justice Association  
          of California, "In order to be eligible for liability  
          protection, the purchaser or landowner must agree to a site  
          assessment and, if necessary, prepare and submit a response  
          plan. The [Act] provides immunity from liability to purchasers  
          or landowners for costs or damages associated with contamination  
          characterized in the site assessment or response plan."





          REGISTERED SUPPORT / OPPOSITION:




          Support


          Bay Area Council


          Brown & Winters








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          California Association for Local Economic Development


          California Building Industry Association


          California Business Properties Association


          California Council for Environmental & Economic Balance


          California Infill Builders


          California Main Street Alliance 


          Center for Creative Land Recycling


          City of Carson


          City of Chula Vista


          City of Redding


          Civil Justice Association of California


          League of California Cities 


          Los Angeles Neighborhood Land Trust








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          Pacoima Beautiful 




          Opposition


          None on file. 




          Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916)  
          319-3965