BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 493
                                                                  Page  1

          Date of Hearing:   August 4, 2004 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    SB 493 (Cedillo) - As Amended:  June 29, 2004 

          Policy Committee:                             Environmental  
          Safety & Toxic Materials                      Vote: 4-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill transfers $25 million from the Toxic Substances  
          Control Account (TSCA) to the Cleanup Loans and Environmental  
          Assistance to Neighborhoods (CLEAN) Account to fund loans  
          provided by the Department of Toxic Substances Control (DTSC)  
          for assessment and cleanup related activities at brownfields and  
          other underutilized urban properties.

           FISCAL EFFECT  

          Transfers $25 million from the TSCA to the CLEAN Account to fund  
          loans for the assessment and cleanup of brownfields and other  
          urban properties.  (TSCA.)

           COMMENTS  

           1)Rationale  .  This bill reestablishes funding for the DTSC's  
            CLEAN program, by which the department provides loans to help  
            finance preliminary assessment and other cleanup-related work  
            at contaminated urban sites known as "brownfields."  While $85  
            million (GF) was appropriated in the 2000 Budget Act for CLEAN  
            loans, virtually all of this money was reverted to the GF in  
            FY 2001-02 to help close the GF deficit for that year.  As a  
            result, only          $5.5 million has been loaned since the  
            program was established by SB 667 (Sher) - Chapter 912,  
            Statutes of 2000.
           
          2)The TSCA  was established by SB 660 (Sher) - Chapter 870,  
            Statutes of 1997 to provide ongoing and dependable funding for  
            hazardous waste site cleanup activities statewide.  The TSCA's  
            primary source of funding is the revenue generated by an  








                                                                  SB 493
                                                                 Page  2

            environmental fee imposed on most corporations doing business  
            in California and fees charged by the DTSC for oversight of  
            hazardous waste cleanup sites.  Between $35 million and $40  
            million is annually deposited into the TSCA.  The 2004 Budget  
            Act appropriates $45 million from the TSCA, leaving a year-end  
            reserve of $4 million.  There is, therefore, insufficient TSCA  
            funds available to carry out the $25 million transfer required  
            by this bill.

           Analysis Prepared by  :    Steve Archibald / APRO / (916) 319-2081