BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE HEALTH AND HUMAN SERVICES
                               COMMITTEE ANALYSIS
                        Senator Deborah V. Ortiz, Chair


          BILL NO:       SB 201                                       
          S
          AUTHOR:        Romero                                       
          B
          AMENDED:       April 29, 2003
          HEARING DATE:  May 7, 2003                                  
          2
          FISCAL:        Appropriations                               
          0
                                                                      
          1
          CONSULTANT:                                                
          Hailey / ak
                                        

                                     SUBJECT
                                         
          Regulation of radioactive materials and disposal:  Transfer  
                                         of authority

                                     SUMMARY  

          Transfers responsibilities to regulate radioactive  
          materials, including their transportation, from the  
          Department of Health Services to the Department of Toxic  
          Substances Control, and requires that future cleanups of  
          sites contaminated by radioactivity in California meet US  
          Environmental Protection Agency standards.

                                     ABSTRACT  

          Existing law:
          1.Under the federal Atomic Energy Act of 1954 and the  
            Low-level Radioactive Waste Policy Act (42 U.S.C.A.  
            Section 2014-2114), generally vests the Nuclear  
            Regulatory Commission (NRC) with the authority to  
            regulate radioactive materials and wastes, and provides  
            that the NRC may delegate authority over low-level  
            radioactive materials and wastes (essentially all  
            radioactive wastes other than spent nuclear fuel rods and  
            the like) to "agreement states" such as California.   
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          2


          

          2.Under Chapter 8 (Commencing with Section 114960) of the  
            Health and Safety Code (generally referred to as the  
            Radiation Control Law), requires the Department of Health  
            Services (DHS) to regulate the use, handling, transport  
            and disposal of ionizing radiation (essentially all  
            radioactive wastes other than high-level wastes which are  
            regulated by the NRC, and X-Ray and other medical-related  
            devices) for the protection of public health and safety.   
            The law also does all of the following:
                 Establishes civil and criminal penalties for  
               violations of the law but does not expressly establish  
               administrative civil penalties that may be imposed by  
               DHS for such violations.
                 Prohibits the disposal of radioactive waste unless  
               it will result in no significant radioactive  
               contamination being released into the environment. 

          1.Under Chapter 6.5 (commencing with Section 25100) of the  
            Health and Safety Code requires the Department of Toxic  
            Substance Control (DTSC) to establish standards and  
            regulations for the management of hazardous wastes to  
            protect against the hazards to public health, domestic  
            livestock, wildlife and the environment.

          2.Under the California Integrated Waste Management Act  
            (Division 30 commencing with Section 40000) of the Public  
            Resources Code, provides that the Integrated Waste  
            Management Board shall have no jurisdiction over  
            facilities that accept both hazardous wastes and  
            radioactive waste and that such facilities shall be  
            regulated by DTSC and DHS pursuant to the statutes  
            referenced above.

          This bill:
          1.Repeals the Radiation Control Law described under (2)  
            above and re-enacts those provisions as the Radioactive  
            Materials Management Act.

          2.Transfers authority, jurisdiction, and responsibility for  
            the regulation of radioactive materials and waste from  
            DHS to DTSC.

          3.Transfers staff responsible for the regulation of  
            radioactive materials and waste, up to management level,  
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          3


          
            from DHS to DTSC.  Specifies the scientific positions,  
            units, and branches at DHS which are transferred to DTSC,  
            requires DTSC to perform a job classification review of  
            the positions affected by the bill and requires DTSC to  
            report the Legislature on additional statutory changes  
            needed to effectuate that change.    

          4.Requires persons applying for licenses for receipt,  
            possession, or transfer of radioactive materials to  
            submit a disclosure statement which includes specified  
            information on the person's identity, fingerprints,  
            business interests, and past violations of law, requires  
            DTSC to forward fingerprint cards, images and related  
            information to the Department of Justice (DOJ) prior to  
            issuing any licenses, and requires DOJ to provide  
            reciprocal information to DTSC on the criminal history of  
            the applicant.

          5.Prohibits any person from selling, transferring or  
            leasing radioactively contaminated property, other than a  
            former military base, for any subsequent land use until  
            DTSC certifies that the radioactive contamination has  
            been remediated pursuant to the standards, guidance,  
            procedures, and practices established under the federal  
            Comprehensive Environmental Response, Compensation, and  
            Liability Act of 1980, as amended (CERCLA) (42 U.S.C.  
            Section 9601 et. seq.), also referred to as the federal  
            Superfund Law.

          6.Exempts from the prohibition in (5) any portion of a  
            radioactively contaminated property that is  
            uncontaminated.

                                  FISCAL IMPACT  

          Unknown. 


                            BACKGROUND AND DISCUSSION  

          DHS Activities Under Radiation Control Law Subject of  
          Extensive Legislative and Judicial Oversight and Criticism 
          For at least fifteen years, the subject of DHS'  
          implementation of radiation control law has been the  
          subject of legislative oversight hearings, investigations,  
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          4


          
          and litigation in the state and federal courts.  In the  
          mid-1980's when California was under pressure to site a  
          low-level radioactive waste disposal facility and to adopt  
          a multi-state compact for the disposal of such wastes, the  
          State Assembly's Natural Resources Committee held extensive  
          hearings on the activities of DHS in licensing parties to  
          construct the facility and related issues.  More recently,  
          the Senate Select Committee on Urban Landfills (chaired by  
          the author of this measure) has held oversight hearings on  
          DHS' proposals to allow the disposal of radioactive  
          materials at solid waste landfills.

          In addition, two recent and notable actions were taken by  
          the courts relative to DHS' radiation control program:   
          last year, DHS proposed regulation to allow low-level  
          radioactive wastes to be disposed at landfills was  
          overturned by the Superior Court in Sacramento County last  
          year.  In setting aside the regulation, Judge Gail D.  
          Ohanesian stated that the regulations "will have a  
          significant adverse environmental effect."  In addition,  
          the judge found that, contrary to the claims of state  
          officials, California has authority to pursue more  
          protective standards for radioactive waste disposal, but  
          failed to consider that option--a breach of state law.

          In a ruling dated April 10, 2002 (Case No. 01CS01445) the  
          court made the following specific findings:
           There was no merit to DHS' contention that the regulation  
            was exempt from the California Environmental Quality Act  
            (CEQA).
           DHS' contention that the regulation offered a more  
            stringent disposal standard was "not persuasive."  "In  
            practice, decommissioned sites have been required to meet  
            a more stringent standard . . . than the 25 millirem  
            standard in the subject regulation."
           DHS failed to comply with the Administrative Procedure  
            Act by failing to provide a sufficient statement of  
            reasons for the regulation.  DHS failed to discuss and  
            consider alternatives to the regulation.

          The ruling came in response to a lawsuit filed by the  
          Committee to Bridge the Gap, the sponsor of this measure,  
          and the California Federation of Scientists and Physicians  
          for Social Responsibility, a supporter of this measure,  
          both of whom argued that landfills are not engineered to  
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          5


          
          accommodate nuclear waste safely.

          The regulation was proposed by DHS in the summer of 2000  
          and took effect in November 2001.  The regulations would  
          have set allowable exposure levels at more than 12.5 times  
          greater than exposure for the low-level radioactive waste  
          (LLRW) facility that had been proposed for Ward Valley.

          The second recent action took place when a court rejected  
          the contention of the licensee for the proposed Ward Valley  
          LLRW disposal facility that the state had violated the law  
          in not following through on the construction and operation  
          of the facility.

          Governor's Actions In 2002 on LLRW Summarized
          Last year, several measures addressing radiation control  
          issues were passed by the Legislature and sent to the  
          governor.  While vetoing most measures that reached his  
          desk, the governor issued an executive order that did all  
          of the following:

           Imposed a moratorium on the disposal of all  
            decommissioned materials with emissions above background  
            levels in public landfills (Class III) and unclassified  
            waste management facilities and directed the State Water  
            Resources Control Board (SWRCB) to begin implementation  
            of the moratorium within the next 30 days.

           Directed DHS to develop regulations for decommissioning  
            licensed facilities utilizing the CEQA process and as  
            part of that process, to include an assessment of the  
            public health and environmental risk factors regarding  
            disposal of decommissioned material and to make  
            recommendations at the conclusion of this review.

           Stated that if further restrictions are recommended by  
            DHS based on sound scientific evidence, that the governor  
            would "act on those recommendations."

           Stated that the moratorium on disposal of decommissioned  
            materials above background levels in public landfills  
            will be in place until the department completes its  
            assessment and the regulations take effect, at which time  
            a new executive order or legislation may be considered.

                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          6


          
          US EPA/NRC Sign MOU on Cleanup of Certain Contaminated  
          Sites
          After decades of jurisdictional wrangling, NRC and US  
          Environmental Protection Agency (EPA) recently signed a  
          Memorandum of Understanding (MOU) last year establishing  
          outlines of authority and provisions for joint consultation  
          on cleanup of specified contaminated sites.  According to a  
          press release on the NRC website, 

               On October 9 the Nuclear Regulatory Commission signed  
               an agreement with the Environmental Protection Agency  
               on the radiological decommissioning and  
               decontamination of NRC-licensed sites."

               The Memorandum of Understanding (MOU) signed by NRC  
               and EPA provides that EPA will defer exercise of  
               authority under the Comprehensive Environmental  
               Response, Compensation and Liability Act (Superfund)  
               for the majority of facilities decommissioned under  
               NRC authority.  The MOU includes provisions for NRC  
               and EPA consultation for certain sites when, at the  
               time of license termination, (1) groundwater  
               contamination exceeds EPA-permitted levels; (2) NRC  
               contemplates restricted release of the site; and/or  
               (3) residual radioactive soil concentrations exceed  
               levels defined in the MOU.

               The MOU responds to a 1999 report from the House  
               Committee on Appropriations that stated: "In the  
               interest of ensuring that sites do not face dual  
               regulation, the Committee strongly encourages both  
               agencies to enter into an MOU which clarifies the  
               circumstances for EPA's involvement at NRC sites when  
               requested by the NRC."  The MOU also is responsive to  
               a Government Accounting Office report issued in 2000.   
               The MOU does not fully meet the intent of the  
               Appropriations Committee because the threat of dual  
               regulation remains for certain licensees.

               ?The MOU does not impose any new requirements on NRC  
               licensees and will reduce the involvement of EPA with  
               NRC licensees who are decommissioning.  Most sites are  
               expected to meet the NRC criteria for unrestricted  
               use, and NRC believes that only a few sites will have  
               groundwater or soil contamination in excess of the  
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          7


          
               levels specified in the MOU which trigger consultation  
               with EPA.  If there are other hazardous materials on  
               the site, EPA may be involved in cleanup.

          Remediation of Nuclear Waste
          There are two sets of standards available nationally for  
          the cleanup of nuclear waste.  The first is set by the NRC  
          and is used by DHS' Radiologic Health Branch.  These  
          standards are "dose-based," that is, they are based on an  
          assessment of the dose at which an individual begins to  
          experience adverse health effects.  This bill would  
          substitute standards developed by the EPA, which are  
          "risk-based," that is, they establish the statistical  
          incidence of a particular health outcome resulting from  
          given levels of exposure, for example, cancer deaths per  
          million persons.  

          There is disagreement among scientists as to which  
          standards are more appropriate to the cleanup of  
          radioactive waste.  Moving from the NRC to the EPA  
          standards is also controversial because the EPA standards  
          are more restrictive and therefore more costly to meet. 

          Arguments in Support
          The author states that: 
           DHS has engaged in lax enforcement of licensees.
           DHS has adopted disposal standards that are not  
            protective of human health and the environment, adopting  
            the less protective of two available Federal standards.
           The Sacramento Superior Court has struck down existing  
            DHS regulations for not following CEQA and the  
            Administrative Procedures Act.
           Radioactive leachate, above safe drinking water  
            standards, has been discovered in 22 of 50 landfills  
            monitored by the SWRCB despite DHS assurances that their  
            disposal practices did not harm human health or the  
            environment.
           DHS has failed to adequately monitor licensees in  
            possession of radioactive devices resulting in  
            potentially serious security problems and public safety  
            concerns.

          According to the sponsor of the bill, the Committee to  
          Bridge the Gap, this measure is intended to transfer and  
          strengthen the regulation of radioactive materials in order  
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          8


          
          to ensure greater public health and environmental  
          protection.  The sponsors state that the activities  
          proposed to be transferred under the bill's provisions are  
          activities analogous to those DTSC already performs for  
          hazardous substances and wastes. 





          Arguments in Opposition 
          Opponents to this measure state that transferring radiation  
          control activities from DHS to DTSC would disrupt the  
          current effective regulatory program and disrupt cleanup  
          activities already underway.  The opponents assert that the  
          application of CERCLA cleanup standard in lieu of those  
          currently used by DHS and the NRC would create new costs,  
          regulatory confusion, and are unnecessary to protect public  
          health.  Finally, opponents state that the transfer of DHS  
          responsibilities to DTSC will disrupt and set back  
          California's radiological counter-terrorism and response  
          teams, newly established by the Radiologic Health Branch.

          Recent actions:
          The Senate Environmental Quality Committee amended and  
          passed this bill on a 5-2 vote, April 21, 2003.

          This analysis borrows extensively from the analysis  
          prepared for the Environmental Quality Committee's hearing.

                          QUESTIONS BEFORE THE COMMITTEE
                                         
          1.Is the regulation of radioactive material, including the  
            decommissioning of a nuclear power plant, rightly placed  
            within the department responsible for environmental  
            quality and toxic substances (DTSC) rather than the  
            department responsible for ensuring the public health  
            (DHS)?

          2.Should radioactive materials be regulated under  
            risk-based standards set for hazardous chemicals (CERCLA)  
            rather than dose-based standards established by the  
            federal Nuclear Regulatory Agency?

                                    POSITIONS 
                                                         Continued---




          STAFF ANALYSIS OF SENATE BILL 201 (Romero)            Page  
          9


          

          Support:       Committee to Bridge the Gap (sponsor)
                         Americans for a Safe Future 
                         California League of Conservation Voters
                         Committee to Bridge the Gap
                         Concerned Citizens to Stop Outside Dumping
                         East Valley Coalition
                         Physicians for Social Responsibility, Los  
                         Angeles  
                         Rocketdyne Cleanup Coalition  
                         Sierra Club California 
                         Southern California Federation of Scientists
                         7 individuals

          Oppose:   American College of Nuclear Physicians 
                         BIOCOM San Diego
                         The Boeing Company
                         California Chamber of Commerce
                         California Council for Environmental and  
                         Economic Balance

























                                                         Continued---










                         California Space Authority
                         California Healthcare Institute
                         California Manufacturers and Technology  
                         Association
                         Council on Radionuclides and  
                         Radiopharmaceuticals Inc.
                         California Radioactive Materials Management  
                         Forum
                         Industrial Environmental Association
                         Ligand Pharmaceuticals
                         Pacific Gas and Electric Company
                         Solid Waste Association of North American,  
                         California Chapters
                         Southern California Edison


                                   -- END --
          



























                                                         Continued---