BILL ANALYSIS Ó SB 820 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 820 (Hertzberg) - As Amended April 12, 2016 ----------------------------------------------------------------- |Policy |Environmental Safety and Toxic |Vote:|7 - 0 | |Committee: |Materials | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Judiciary | |10 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill extends the sunset date for the California Land Reuse and Revitalization Act of 2004 (CLRRA) to January 1, 2027, and makes corresponding changes to provide continued immunity after the repeal of CLRRA. FISCAL EFFECT: SB 820 Page 2 1)Unknown costs, likely in the $50,000 range, for the Department of Toxic Substance Control (DTSC) to provide oversight for clean-up (Toxic Substances Control Account). 2)Minor costs, absorbable costs for the State Water Resources Control Board (SWRCB) DTSC and SWRCB costs are reimbursable through a fee-for-service agreement. According to DTSC, CLRRA sites represent a small fraction of their brownfield cleanup sites. DTSC currently oversees 24 active CLRRA sites and has 16 completed sites. Statewide DTSC typically has more than 1000 active cleanup projects, and currently has 280 active Voluntary Cleanup Program sites. Approximately 50 staff positions are assigned to these programs. COMMENTS: 1)Purpose. According to the author, because buyers of brownfield sites may be liable for contamination for which they did not cause, these hazardous sites can sit dormant for decades. This not only contributes to urban blight, but poses several environmental and health risks for surrounding communities. By extending CLRRA, this bill extends a tool for transforming polluted properties into productive uses of space that add economic value to blighted communities while reducing environmental and health risks. 2)Background. CLRRA provides innocent landowners, buyers, or contiguous property owners with immunity from liability for damages due to hazardous materials if; a) they assess and clean up the property; b) they enter into an oversight agreement with DTSC and/or SWRCB; and c) the clean-up of the SB 820 Page 3 property meets or exceeds existing standards. This program will sunset in January 2017, although the immunity from liability from agreeemnts entered into before January 2017 will continue. Brownfields are typically abandoned, idled, or underutilized sites, formerly used for industrial or commercial purposes, where perceived or actual contamination deters redevelopment. The costs associated with brownfield site clean-up can be prohibitively expensive for parties who purchase these properties, particularly when unexpected hazardous materials are encountered during site remediation. Consequently, many of these sites remain vacant for years. The USEPA estimates that there are approximately 90,000 brownfields in California. The large number of brownfield sites and the unavailability of sufficient public resources to remediate these sites prevent California's brownfields from being restored to productive use without significant participation by the private sector. 3)Prior Legislation. SB 143 (Cedillo, Chapter 167, Statutes of 2009) extended the sunset date for CLRRA from January 1, 2010 to January 1, 2017, and made corresponding changes to provide continued immunity after the repeal of CLRRA. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 SB 820 Page 4