BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 820  


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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          |Policy       |Environmental Safety and Toxic |Vote:|7 - 0        |
          |Committee:   |Materials                      |     |             |
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          |             |Judiciary                      |     |10 - 0       |
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          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:









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          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  








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            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















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