BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   June 22, 2004

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  John Laird, Chair
                    SB 493 (Cedillo) - As Amended:  June 16, 2004

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Hazardous materials:  liability.

           SUMMARY  :   Enacts the California Land Reuse and Revitalization  
          Act of 2004 (the act), which would provide that an innocent  
          landowner, a bona fide purchaser, or a contiguous property owner  
          qualifies for immunity from liability for response cost or  
          damage claims under most state statutory and common laws that  
          impose liability upon an owner or occupant of property, for  
          pollution conditions caused by a release or threatened release  
          of a hazardous material on, under, or adjacent to that property,  
          if the innocent purchaser, bona fide purchaser, or contiguous  
          property owner meets specified conditions ("qualifying property  
          owner").  Specifically,  this bill  : 

           Architecture
           1)Prohibits an agency from requiring a qualifying property owner  
            (QPO), which include certain innocent landowners, bona fide  
            purchasers, or contiguous property owners to take response  
            actions under those state laws, other than a response action  
            required in an approved agreement for site assessment or for a  
            response plan based on information provided by the QPO to the  
            agency pursuant to that site assessment.  

          2)Authorizes a court, in an action for contribution or recovery  
            of response costs incurred at a site, to award reasonable  
            attorneys' fees and experts' fees to a QPO.

          3)Requires the California Environmental Protection Agency  
            (CalEPA), by January 1, 2005, to develop a form containing  
            specified information that a QPO who is subject to immunity  
            would be required to complete and submit to the agency.  

          4)Requires CalEPA, by July 1, 2005, and annually thereafter, to  
            submit a report to the Legislature compiling this data and  
            comparing brownfield response actions completed by agencies  
            under the act with other similar response actions.









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          5)Requires a QPO who seeks to qualify for the immunity provided  
            by the act to enter into an  agreement  with an agency that  
            includes the performance of a  site assessment  , and if the  
            agency determines that a  response plan  is necessary, the  
            preparation and implementation of a response plan.  

          6)Requires person who enters into an agreement to reimburse the  
            agency that enters into the agreement for all agency costs.

          7)Specifies that a person who enters into an agreement with an  
            agency for oversight of a site assessment to submit a site  
            assessment plan to the agency.  The agency must evaluate the  
            adequacy of the site assessment plan to ensure that it  
            contains all necessary information and, after evaluating the  
            site assessment plan, if the agency finds that the plan is  
            adequate, the agency would be required to approve the plan and  
            provide notification to appropriate persons.

          8)Requires a person, after implementing the site assessment  
            plan, to submit a report of its findings to the agency.  The  
            agency,  based upon a review of this information  , must  
            determine whether a response action is necessary to address  
            any unreasonable risk from hazardous materials at the site.   
            If the agency determines that a response action is necessary  
            to prevent, control, or eliminate an unreasonable risk, the  
            bill would require the QPO to submit a response plan to the  
            agency to conduct a response action at the site.  

          9)Requires the agency to evaluate the adequacy of the response  
            plan and to approve the plan if the agency makes specified  
            findings.

          10)   Authorizes a response plan to require the use of a land  
            use control that imposes appropriate conditions, restrictions,  
            and obligations on land use or activities if, after completion  
            of theremoval and remedial actions specified in the response  
            plan, hazardous substances materials remain at the site at a  
            level that is not suitable for the unrestricted use of the  
            site, pursuant to a specified procedure.  

          11)   Authorizes the Department of Toxic Substances Control  
            (DTSC) to exclude any portion of a response action conducted  
            entirely onsite from certain hazardous waste facilities permit  
            requirements. 









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          12)   Makes findings related to the presence of thousands of  
            properties in the state and how the real or perceived  
            contamination by hazardous materials can hamper development  
            which can revitalize neighborhoods.

          13)   Sunsets a portion of the act on January 1, 2010, but would  
            provide that a person who is subject to immunity pursuant to  
            the act before January 1, 2010, would continue after that date  
            to have that immunity, if the person continues to be in  
            compliance with the requirements of the act.

          14)   Defines various terms for purposes of this act, including:

             a)   "Agency" means DTSC, the State Water Resources Control  
               Board (SWRCB) or a regional water quality control board  
               (RWQCB).

             b)   "All appropriate inquiries"  will be  defined by the  
               United States Environmental Protection Agency (USEPA) when  
               those standards and practices are finalized.  While the  
               bill makes the federal standard, upon adoption, the  
               exclusive criteria, it does allow state law to govern any  
               practice of engineering necessary to complete the inquiry.   
               Until then, properties acquired before December 1, 2000  
               must have undergone review according to the American  
               Society for Testing and Materials Standard El 527-97  
               entitled "Standard Practice for Environmental Site  
               Assessment": Phase 1 Environmental Site Assessment Process.  
                If the property was acquired after December 1, 2000,  
               compliance with American Society for Testing and Materials  
               Standard E1527-00.  Exempts from these inquiry standards  
               any properties that are  used solely for residential use  
               and have four or fewer units at the time of acquisition by  
               a nongovernmental or noncommercial entity.  In such case  
               "all appropriate inquiries" only needs to include a site  
               inspection and title search if they do not reveal a basis  
               for further investigation.

             c)   "Applicable law," for purposes of the scope of the  
               immunities, essentially means all of the provisions of  
               state statutory and common laws that could impose liability  
               on an owner or occupant of property for pollution  
               conditions caused by a release or threatened release of  
               hazardous material on, under, or adjacent to the property.   
               This would include laws relating to contribution, nuisance,  








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               trespass and equitable indemnity.

             d)   "Appropriate care" establishes, for purposes of this  
               act, what actions must have been completed by the QPO in  
               order to obtain the immunities.  This would include  
               initiation and completion (unless ongoing treatment is  
               required) of a response plan approved under this act.  The  
               immunities may also attach without any response action if,  
               the agency, after review of the site assessment, issues a  
               no further action (NFA) finding pursuant to this act.

             e)   QPO Definitions: "  Bona fide purchaser  " means a person,  
               or a tenant of a person, who acquires ownership of a site  
               on or after January 1, 2005.  A "  Contiguous property owner  "  
               means a person who owns a site that is adjacent to or  
               otherwise similarly situated with respect to another site  
               that is, or may be, contaminated by a release or threatened  
               release of a hazardous material and that is not owned by  
               that person.  An "  Innocent landowner  " means a person who  
               currently owns a site, did not cause or contribute to a  
               release or threatened release at the site.  In addition the  
               innocent landowner must have made all appropriate inquiries  
               (as determined by the commonly accepted practices of the  
               time) and did not know, and had no reason to know, of the  
               release or threatened release at the site.  A QPO can  
               maintain its immunity even if there is a subsequent release  
               at the site.  The release must be of a type, nature or  
               amount that does not require reporting pursuant to  
               applicable statutory and regulatory reporting requirements,  
               and the release must have been appropriately resolved to  
               the satisfaction of the agency.  For purposes of this act,  
               and determining whether there has been a release at a site  
               for which immunity has attached, a release does not include  
               passive migration.

          15)   "Endangerment" means a condition that poses an actual and  
            unreasonable risk to human health and safety arising from  
            actual or threatened exposure to hazardous materials.   Note  
            that this does not include risk to the environment  .

          16)   "Passive migration" means the leaking, leaching or  
            movement of a hazardous material into or through the  
            environment, for which no human activity by QPO preceeded the  
            initial entry of that substance into the environment.









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          17)   "Release" has the same meaning as defined in the state's  
            primary hazardous waste law, state Superfund (Chapter 6.8).

          18)   "Site" means real property located in an  urban infill  area  
            for which the expansion, redevelopment, or reuse may be  
            complicated by the presence or perceived presence of hazardous  
            materials.  This measure would not be applicable to federal  
            superfund sites, state Superfund sites, sites contaminated by  
            petroleum leaks from an underground storage tank if they are  
            eligible for reimbursement from the California Underground  
            Storage Tank Cleanup Fund.  

          19)   "Infill area" means a vacant or underutilized lot of land  
            within an urban area served by existing physical  
            installations, including, but not limited to, roads,  
            powerlines, and other infrastructure that is zoned for  
            commercial, industrial, or mixed use and has not been zoned  
            exclusively for open space agricultural use, or residential  
            use within the five years prior to the date an agreement is  
            entered into pursuant to this act.

          20)   "Urban area" includes any incorporated city or an  
            unincorporated area that is completely surrounded by one or  
            more incorporated cities that meets both of the following  
            criteria: if the population of the unincorporated area and the  
            population of the surrounding incorporated cities is equal to  
            a population of 100,000 or more, and the population density of  
            the unincorporated area is equal to, or greater than, the  
            population density of the surrounding cities.  

           Immunities to Liability
           
          21)   Requires a QPO to meet certain conditions in order to  
            obtain, and maintain, the immunities afforded by this act.   
            The QPO must show, by a preponderance of the evidence, that it  
            has made all appropriate inquiries into the previous ownership  
            and uses of the site.  The person must exercise appropriate  
            care with respect to the release or threatened release of  
            hazardous materials at the site, and provide full cooperation,  
            assistance, and access to a person who is authorized to  
            conduct response actions or natural resource restoration at  
            the site, including the cooperation and any access necessary  
            for the installation, integrity, operation, and maintenance of  
            complete or partial response actions or natural resource  
            restoration at the site.  The QPO must also be in compliance  








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            with land use controls established or relied on, in connection  
            with an approved response action at the site, and does not  
            impede the effectiveness or integrity of any aspect of any  
            remedy employed at the site in connection with a response  
            action.  Lastly, the QPO shall provide all notices and  
            satisfies reporting requirements required by state or federal  
            law with respect to the discovery or release of hazardous  
            substances at the site.

          22)   Grants a QPO, who did not cause or contribute to the  
            release at the site, the following immunities:

             a)   from a claim made by any person, other than an agency,  
               under any applicable statute for response costs or other  
               damages associated with a release of a hazardous material  
               at the site characterized in the site assessment conducted  
               pursuant to, or a response plan approved pursuant to this  
               act.

             b)   from any agency action under any applicable statute to  
               compel a response action, other than a response action  
               required in an approved response plan, with respect to a  
               hazardous material release at a site that is characterized  
               in the site assessment conducted pursuant to, or a response  
               plan approved pursuant to this act , unless  both  of the  
               following conditions apply:

               i)     The conditions on the property pose an  endangerment  ,  
                  and  

               ii)       The agency first makes all reasonable efforts to  
                 compel any necessary response action from other  
                 potentially responsible parties, or reasonably  
                 determines, after the exercise of reasonable inquiry,  
                 that no potentially responsible party exists with  
                 sufficient financial resources to perform the required  
                 response action at the site.

          23)   Provides that the act is not intended to modify or limit  
            the existing authority of a state or local agency to impose a  
            condition on the issuance of a discretionary permit relating  
            to the development, use, or occupancy of any site.

          24)   Attaches the immunities when the QPO enters into an  
             agreement  with an agency and shall remain in effect unless one  








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            of the following occurs: (a) the QPO receives a written notice  
            of an unapproved, material deviation from the agreement from  
            the agency, or (b) the QPO terminates the agreement before  
            obtaining a NFA or a certificate of completion (COC) after  
            performance of a response plan under this act.

          25)   A QPO, who otherwise qualifies for immunity under this  
            chapter and who commits fraud, intentional nondisclosure, or  
            misrepresentation to an agency with respect to disclosures  
            required under this chapter does not qualify as a bona fide  
            purchaser, innocent landowner, or contiguous property owner.

          26)   Immunity pursuant to this chapter does not cover: (a)  
            bodily injury or wrongful death, (b) any requirement imposed  
            for proper handling and disposal of hazardous material under  
            the respnse action, including, but not limited to, corrective  
            action and closure and post closure requirements, (c) criminal  
            acts; (d) permit violations; (e) contractual indemnity  
            agreements between purchasers and sellers of real property;  
            (f) any action taken by a redevelopment agency.

          "Windfall Profit"

          27)   Provides that, if there are unrecovered response costs  
            incurred by an agency at a site for which an owner of the site  
            is not liable as QPO, an agency shall have a lien on the site,  
            or may, by agreement with the owner, obtain from the owner a  
            lien on other property or other assurance of payment for the  
            unrecovered response costs  .  The lien amount shall not exceed  
            the increase in fair market value of the property attributable  
            to the response action at the time of a sale or other  
            disposition of the property, and shall not exceed the  
            unrecovered response costs actually incurred by the agency.    
            The lien is subordinate to the rights of a purchaser, holder  
            of a security interest, or judgment lien creditor whose  
            interest is perfected before notice of the lien has been filed  
            in the appropriate office within the state or county or other  
            governmental subdivision, as designated by state law.

           Litigation Tools for QPO and Agency
           
          28)   Authorizes a QPO to seek contribution from any person who  
            is responsible for a discharge or release of hazardous  
            materials for which the QPO incurs agency oversight costs for  
            the review of a response plan or oversight of the  








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            implementation of a response plan subject to the act.

          29)   Authorizes a court to award reasonable attorneys' fees and  
            experts' fees to a prevailing QPO who initiates a claim under  
            an applicable statute for contribution for, or recovery of,  
            response costs incurred for a response action, or for any  
            other response costs incurred at a site.  The QPO must serve  
            notice on the defendant 20 days prior to the trial with  
            information on the amount sought and the reasoning for the  
            claim for contribution.

          30)   Authorizes an agency to recover reasonable attorneys' fees  
            and experts' fees if it is the prevailing party in an action  
            arising out of this act.

           Reopeners
           
          31)   Specifies that an agency itself may conduct a response  
            action it determines is necessary to protect public health and  
            safety or the environment pursuant to an applicable statute.

          32)   Allows a state or local agency that is acquiring property  
            or taking it by eminent domain from evaluating and including  
            the impact on the value of the property resulting from a  
            release or threatened release of any hazardous material at a  
            proceeding to establish the value of the property.

          33)   Explicitly states that the only obligations of the QOP are  
            limited to those obligations specifically assumed by the owner  
            under the agreement to which he has entered pursuant to this  
            act.  In addition, the chapter does not limit any defenses to  
            liability available to a person under another section of law.

           Agency Review   
           
          34)   Directs CalEPA to develop a form that, upon approval of a  
            response plan, shall be completed and submitted to the agency  
            by a bona fide purchaser or innocent landowner who qualifies  
            for immunity pursuant to this chapter.  The form shall  
            include, but is not required to be limited to a description  
            of: (a) the site location, (b) the type and extent of  
            hazardous materials releases and threatened releases  
            identified for response at the site pursuant to a response  
            plan, (c) the estimate of the response action cost, (d) the  
            present and proposed use of the site and its zoning, (e) the  








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            land use restrictions, covenants, deed restrictions or other  
            conditions imposed on the site owned by the QPO, (f) the  
            concentrations of those hazardous materials or discharges that  
            will not be remediated pursuant to the response plan. 

          35)   Directs CalEPA, contingent on resources being available,  
            to compile the information submitted on the form and post a  
            report of its findings on its web site.  The report shall to  
            the extent practicable, compare the number and quality of  
            response actions completed pursuant to this chapter with  
            similar response actions completed prior to its enactment, and  
            shall evaluate the impact of the benefit of this chapter's  
            immunities on the acquisition and development of properties.   
            There is no instruction that site specific information be  
            posted on any web site.


           EXISTING LAW  , under, the Carpenter-Presley-Tanner Hazardous  
          Substance Account Act, imposes liability for hazardous  
          substances removal or remedial actions.  Existing law, including  
          the Porter-Cologne Water Quality Control Act and the provisions  
          regulating hazardous waste and releases from underground storage  
          tanks, impose various requirements with regard to corrective  
          action and cleanup and abatement, upon persons subject to those  
          acts.

          Establishes an extensive series of programs meant to encourage  
          reuse of brownfield properties including: 

             a)   The Comprehensive Environmental Cleanup, Response and  
               Liability Act [CERCLA 42 U.S.C. 9601 et. seq.] commonly   
               referred to as the federal Superfund Law).  This law  
               imposes strict joint and several liability on "responsible  
               parties" (i.e. current and previous owners and operators of  
               contaminated properties, as well as parties who caused or  
               contributed to contamination on the property) for the cost  
               of clean up of hazardous materials released on a site.

             b)   Under the Small Business Liability Relief and  
               Brownfields Revitalization Act (Pub. L. No. 107-118,  
               enacted January 2002, which amended CERCLA) establishes an  
               affirmative defense from cleanup liability under CERCLA  
               only for so-called "innocent purchasers" (IP's) under  
               specified conditions.  This was not given as an immunity  
               but as an affirmative defense.  When implementing this QPO  








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               "protection" the federal government also appropriated $1  
               billion for cleanup of contaminated "Brownfields"  
               properties.

             c)   Chapter 6.8 (Commencing with Section 25300) of the  
               Health and Safety Code, the Carpenter-Presley-Tanner  
               Hazardous Substance Account Act (commonly referred to as  
               the State Superfund program) which is administered by DTSC.  
                This act "responsible party" in the same manner as those  
               terms are defined under the federal CERCLA statutes and  
               authorizes DTSC to bring actions for the  cleanup of  
               contaminated properties pursuant to the federal CERCLA.   
               The state Superfund law provides an affirmative defense for  
               innocent purchasers of property identical to that provided  
               under CERCLA by cross-referencing the applicable provision  
                                                of federal law.

             d)   In addition to bringing actions under the CERCLA scheme,  
               authorizes DTSC to bring cleanup actions pursuant to state  
               law and establishes requirements for the DTSC to apportion  
               liability for cleanup costs among responsible parties for  
               each party's share of cleanup costs.

             e)   Authorizes DTSC to enter into prospective purchaser  
               agreements and "covenants not to sue" under which, in  
               exchange for the cleanup of a property, the department  
               agrees not to sue the purchaser or owner of the property  
               for additional cleanup and associated costs.

             f)   The Porter-Cologne Water Quality Control Act which  
               authorizes the State Water Resources Control Board (SWRCB)  
               and regional water quality control boards (RWQCB's) to  
               issue  orders to cleanup or abate "waste" (i.e. pollutant)  
               discharges from persons discharging those wastes that  
               cause, or threaten to cause, water pollution, nuisance, or  
               contamination.

             g)   The Polanco Redevelopment Act which authorizes  
               redevelopment agencies to order the investigation and  
               cleanup of property in redevelopment zones and provides  
               that if a property owner refuses to comply with such an  
               order, the redevelopment agency, or a person who has an  
               agreement with the redevelopment agency to redevelop the  
               property, may carry out the investigation and cleanup of  
               any release of contamination  on the property.  In such  








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               case, the Redevelopment Agency may recover its costs.  

             h)   The California Land Environmental Restoration and Reuse  
               Act (commonly referred to as the Escutia Law) which  
               establishes a process by which local government agencies  
               may determine whether properties that are within their  
               jurisdictions are impaired by hazardous material  
               contamination and, if they are contaminated, to compel  
               property owners to assess and cleanup the conditions of  
               their property, or to assess and cleanup the property  
               themselves.

             i)   The AB 2061 process which establishes the Unified Agency  
               Review of Hazardous Substance Release Sites law which  
               authorizes a responsible party to request a single state  
               oversight agency for a hazardous substances cleanup.  Upon  
               completion of the cleanup, no agency other than the  
               designated agency may take any further action for cleanup  
               of the release that was the subject of the cleanup action.   


             j)   The Cleanup Loans and Environmental Assistance to  
               Neighborhoods (CLEAN) Program, which provides low-interest  
               loans and grants of up to $100,000 to conduct preliminary  
               endangerment assessments for eligible contaminated  
               properties.  Loans can also be provided for site cleanup.   
               The funding for this program (which started at $85 million)  
               was severely cut in past years due to the state budget  
               situation.

             aa)   The Financial Assurance and Insurance for Redevelopment  
               (FAIR) Program, which is designed to lower property  
               cleanup, sale, and redevelopment costs through the  
               provision of pre-negotiated and standardized environmental  
               insurance policies to stimulate the cleanup and  
               redevelopment of brownfields and other environmentally  
               impaired properties throughout the state.  This program is  
               administered by CalEPA.

          For detailed description of the existing programs please see  
          Senate Environmental Quality Analysis of January 14, 2004.

           FISCAL EFFECT  :   Unknown.  Most costs for implementation of the  
          program are covered by the QPO.  However, further response  
          costs, except in limited situations, for further cleanup must be  








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          covered by the agencies or past responsible parties.

           COMMENTS  :  The author states that it is his intent to relieve  
          QPOs of liabilities and responsibilities that should be borne by  
          those who caused or, contributed to the contamination.  By  
          establishing another site assessment and response plan process  
          which can be elected by QPOs to make certain the extent of their  
          liability, if any, under state law for hazardous materials  
          contamination caused by other persons, the author hopes to  
          encourage the development of unused or underused properties in  
          urban areas.  He contends that SB 493 will address process  
          uncertainties and limit developer liabilities while continuing  
          to ensure that cleanups are protective of public health and  
          safety and the environment.

          1)This measure is sponsored by the California Building Industry  
            Association and the Home Ownership Advancement Foundation  
            (HOAF).  They note that across California, communities today  
            face the difficult challenges of attracting jobs and  
            employment, providing housing at prices affordable to an  
            expanding workforce, maintaining sufficient local revenue  
            sources to finance necessary infrastructure, services and  
            amenities, and ensuring a high quality of life and  
            environmental protection. 

          2)The sponsors contend SB 493 would help solve these challenges  
            by encouraging private investors to take dormant tracts of  
            land, often called "brownfields," and put them back into  
            productive use for new businesses, housing, parks and other  
            job-generating and community-enhancing projects.  The bill  
            accomplishes this by addressing one of the biggest impediments  
            to brownfield redevelopment - "uncertain" liability issues.

          3)The sponsors feel that SB 493 brings fairness to the existing  
            state liability scheme and provides the tools necessary to  
            turn environmental challenges into economic and social  
            triumphs in communities across the state.  In particular, the  
            bill reforms specific state laws to fairly assign liability  
            for clean-up costs to responsible parties.  They contend that  
            the bill imposes a clear and up-front clean-up obligation for  
            brownfield investors - known as "prospective purchasers.  As  
            an incentive for satisfactorily performing an approved  
            clean-up, these new purchasers and developers of the land  
            would be free from hidden or surprise costs, so long as they  
            have had nothing to do with any health-endangering incidents.








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          4)Opponents to this measure argue that it is much too broad.  By  
            taking property owners out of the responsible party category  
            and by giving such sweeping immunities, SB 493 would end up  
            saddling the state with cleanup costs it cannot afford.   
            Because the state has no funds to act on its own, people,  
            drinking water basins and the environment will be exposed to  
            ongoing pollution and risk.  

          5)Negotiations between the author, the sponsors, agencies and  
            the opposition are ongoing and further language is being  
            developed.  

           The key issues in contention that remain can be summarized as  
          follows  :

          6)The opposition feels that the  cleanup standards  should be  
            required not just for conditions that actually cause  
            groundwater contamination, but also for conditions that  
            threaten to cause contamination.  Requiring that any response  
            action must wait until there is actual contamination  
            drastically raises the cleanup costs.  The sponsors argue that  
            moving away from requiring responses only to "actual  
            contamination" starts to introduce uncertainties that would  
            limit the effectiveness of the measure.

          7)Another key point of contention is on the  reopeners  :  The  
            opposition contends that the agencies should be able to  
            require further response action from the QPO if subsequent  
            conditions would pose an unreasonable risk to the environment.  
             Currently the bill only allows a "reopener" if there is a  
            risk to human health.  

          8)SB 493 is meant to encourage revitalization of brownfield  
            properties.  This measure applies to  urban areas  and is much  
            more broadly written than past measures enacted on this  
            subject which kept a tight focus on inner city and  
            underutilized areas.  One reason for such focus is to help  
            prioritize limited agency staff and funds to those blighted,  
            inner city, situations which seem most intractable and would  
            be least likely to attract an investor.  Another reason is  
            because it does make some sense to "test" a new program in a  
            more narrow area, particularly one that could affect future  
            drinking water supplies to make sure that unintended  
            consequences from implementation do not make other matters  








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            worse.  The author however feels that cities in rural areas  
            with a depressed downtown should also have access to the  
            provisions of this law.  Opposition feels that the way the  
            measure is currently worded creates an incentive for sprawl by  
            reducing environmental compliance costs for projects at the  
            periphery of the urban areas and exposes more potential  
            drinking water sources to contamination.

          9)Two of the most sweeping and fundamental changes to current  
            approaches relate to the  immunity  provisions.  SB 493 takes  
            property owners out of the chain of responsible parties as a  
            way of encouraging them to invest in brownfield sites.  This  
            measure provides immunities (in contrast with the "affirmative  
            defenses" model) which must be challenged by the agencies  
            rather than asserted by the QPO if there is a question  
            relating to contamination at the site.  Indeed, based solely  
            on a site assessment that did not detect contamination (and  
            hence received an NFA), a QPO would be entitled to the full  
            protection of immunities that a QPO that conducted a response  
            action gets.  These immunities also protect the QPO against  
            challenges, not just under the provisions of this act, but  
            challenges that might be brought under all other state  
            pollution control laws and common law actions from agencies or  
            third parties.  The sponsors argue that this is necessary to  
            protect against nuisance suits.  However, the opponents  
            contend that these immunities are much too broad because the  
            reopeners are too narrow.  Harm to the environment is not  
            included as mentioned above.  It places too much of a burden  
            on the state to act as "guarantor" for cleanups of later  
            "newly" discovered hazardous material which was missed by the  
            assessment or which is discovered while a response action is  
            being carried out by the QPO under this act. 

          10)The act does provide for some  public participation  , but the  
            participation, as envisioned in the measure, is crafted in  
            each agreement between the agency and the QPO.  In addition,  
            it is permissive rather than mandatory.  The opponents feels  
            that the lack of uniformity in process will make it extremely  
            difficult for the concerned local residents to participate in  
            the process with enough time and with enough relevance to be  
            meaningful.  They believe the measure needs to provide for  
            public notice and comment prior to approval of any response  
            plan.  They suggest using the approach utilized by the SB 32  
            (Escutia), enacted in 2001. Sponsors argue that they intend  
            for there to be public participation but they do not want to  








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            create more impediments.

          11)A word about  ground lease tenants  :  As part of earlier  
            discussions, opposition had suggested using a ground lease  
            tenant approach as a way of meeting the same goals of SB 493  
            without requiring so many structural changes to California's  
            hazardous waste cleanup laws.  Under the ground lease model, a  
            developer leases (instead of purchasing) a property from the  
            party that holds title to the property (the "owner"),  
            typically under a ground lease of 50 years, or longer. The  
            developer is able to obtain financing for the project by using  
            the value of the ground lease as collateral for the financing.  
            The "Ground Tenant" (initially the developer) pays ground  
            lease payments to the owner for the full term of the lease,  
            but otherwise retains control over the use and profit-making  
            potential of the property during the life of the lease.  Two  
            of the advantages of this model is that the value of the  
            property will remain as a resource to pay for cleanup, and the  
            ground lease payments create funding sources for site  
            cleanups.  The sponsors argued that this concept was not  
            practical and would not be useful for promoting brownfield  
            redevelopment.  However, the opposition to this bill feel that  
            the concept is broadly used in many types of development  
            projects.  It may be productive to add them, at a minimum, to  
            the potential list of QPOs if the bill were to move forward in  
            this format.

           12)Technical and Procedural matters  :  If the author and the  
            Committee resolve the most significant disputes, there are  
            further technical that may be needed.  CalEPA has written a  
            support  if amended  letter, with amendments to follow.  We do  
            not yet have that language.  Discussions have been ongoing  
            between all of the parties, which may lead to addressing some  
            of these issues, but that is in flux.  There are also several  
            technical amendments that need to be made before the measure  
            is completed.  For instance, the sunset should operate to  
            terminate the provisions for both Chapters 6.82 (which  
            establishes the act) and 6.84 (which covers the implementation  
            of the agreements).  

          13)Some definitional references also need to be made.  For  
            example, if the parties agree that, in the sections relating  
            to when a QPO can still be a QPO even though there is a  
            release on the site (See page 7, lines 22-33), were meant to  
            address a de minimis release, then that language should be  








                                                                  SB 493
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            crafted in a separate section.  Else the Committee and the  
            author will need to further define what a "hazardous material  
            at issue" (page 7 line 22) and what "appropriately resolved to  
            the satisfaction of the agency means."  There are other  
            similar examples but many of the issues being discussed by the  
            stakeholders (substantive and technical) seem cross with such  
            areas for which the agency is going to suggesting amendments  
            as well.

          14)Another example is the definition of "significant threat to  
            the environment" (page 18, lines 28).  Recent amendments added  
            specific discharge standards which helps, but it does create a  
            whole new definition of threat.  A better way would be to  
            start with understood law, such as Porter-Cologne and track  
            that as closely as possible to preserve past legal  
            interpretations.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           Apartment Association of Greater Los Angeles
          Bay Area Council
          Building Industry Association
          Building Industry Association of Southern California
          CA Apartment Association
          CA Association of Realtors
          CA Black Chamber of Commerce
          CA Building Industry Association
          CA Business Properties Association
          CA Chamber of Commerce
          CA Environmental Protection Agency
          CA Housing Council, Inc.
          CA Manufacturers & Technology Association
          CA Redevelopment Association 
          CA State Controller Steve Westly
          Central City Association of Los Angeles 
          City of East Palo Alto Redevelopment Agency 
          City of Duarte 
          Civil Justice Association of CA 
          Consulting Engineers & Land Surveyors of CA 
          Greater Riverside Chambers of Commerce 
          Greater Sacramento Urban League 
          Home Builders Association of the Central Coast 
          Home Ownership Advancement Foundation
          Job-Center Housing Coalition 








                                                                  SB 493
                                                                  Page  17

          Law Offices of Reetz, Fox, & Bartlett 
          League of California Cities 
          Little Hoover Commission 
          Los Angeles Area Chamber of Commerce 
          National Coalition of Hispanic Organizations 
          Nisel Farmers League 
          People's Self-Help Housing Corporation 
          Ralphs/Food4Less 
          San Gabriel Valley Council of Government 
          Southern California Association of Non-Profit 
           
            Opposition 
           Breast Cancer Fund
          Breast Cancer Action
          Butte Environmental Council
          Californians for Alternatives to Toxics
          CA Communities Against Toxics
          CA Environmental Rights Alliance
          CA Partnership for Children's Health and the Environment
          CA League of Conservation Voters
          CA Safe Schools
          Center of Environmental Health
          Center for Race, Poverty and the Environment
          Community Coalition for Change
          Concerned Residents Initiative
          Consumer Attorneys of CA
          Del Amo Action Committee
          Desert Citizens Against Pollution
          Ecological Rights Foundation
          Environmental Working Group
          Friends of Midway Village
          Heal the Bay
          Marin-Goldengate Learning Disability Coalition
          National Environmental Trust
          Physicians For Social Responsibility
          Planning and Conservation League
          Sierra Club CA 
          South Bay CARES
          Southern California Watershed Alliance
          Tri-County Watchdogs
          Public Trust Alliance
          Philippine Action Group
          Residents for a Better Alhambra
          Willits Citizens for Environment Justice









                                                                  SB 493
                                                                  Page  18



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