BILL ANALYSIS
AB 1188
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Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1188 (Ruskin) - As Introduced: February 27, 2009
Policy Committee: ESTM Vote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill allows revenue generated from penalties imposed by the
Department of Toxic Substances Control (DTSC) to be spent on
other programs and creates a grant program at the department.
Specifically, this bill:
1)Allows excess penalty revenue deposited in Toxic Substance
Control Account (TSCA) to be transferred to other funds to
support the Orphan Share reimbursement process, the
department's efforts to develop pollution prevention
technologies. These funds are available to pay the claims of
parties who take on the responsibility of responding to a
hazardous substance release but are not responsible for the
release.
2)Allows DTSC to establish a grant program, primarily using the
transferred penalty revenue, to help small businesses buy
pollution prevention equipment.
FISCAL EFFECT
1)Moderate reallocation, perhaps $2 million annually starting in
2009-10, of penalty revenue deposited in TSCA to make more
reimbursement claim payments for orphan hazardous waste sites
and to provide grants to small businesses.
2)Minor one-time costs, likely less than $150,000 in 2009-10, to
DTSC to develop and implement a grant program to help small
businesses buy pollution prevention equipment. The grant
program is primarily funded from available penalty revenue
AB 1188
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transferred from TSCA to the newly-created Pollution
Prevention Technology Assistance Grant Fund.
COMMENTS
1)Rationale . According to the author, many small businesses
could reduce their hazardous wastes by using new technologies,
but are unable to afford the capital costs. The author
contends this measure creates a funding source to assist these
small businesses.
2)TSCA . TSCA is one of the main accounts that funds DTSC. The
fund is capitalized by revenues from the assessment of DTSC's
"environmental fee," administrative penalties assessed by DTSC
and other agencies, and reimbursements and interest. The fund
is available upon appropriation by the Legislature. This bill
expands the uses of excess penalty revenue deposited in TSCA
to be transferred to other funds to support the Orphan Share
reimbursement process, DTSC's efforts to develop pollution
prevention technologies, and a new grant program.
3)DTSC Environmental Fee. DTSC's environmental fee, which is
collected by BOE, is levied against corporations with 50 or
more employees. DTSC uses fee revenue for cleanup and cleanup
oversight at toxic waste sites (including "orphan" sites);
promotion of pollution prevention; evaluation of hazardous
waste source reduction plans of waste generators;
certification of new environmental technologies. Legislative
Counsel has opined that the DTSC's environmental fee is, in
effect, a tax.
4)Orphan Share Reimbursements . The remediation of hazardous
waste sites generally must be paid for by the parties
responsible, either directly or indirectly, for the release of
hazardous substances that caused the site to be so classified.
In many cases, however, responsible parties either cannot be
identified, do not exist anymore, or do not have any financial
assets to help pay for remediation. Proponents of projects to
remediate a hazardous waste site who are not responsible
parties can be reimbursed by DTSC for some or all their costs
under the Orphan Share Reimbursement program. This bill
increases the resources available to the department to pay
these claims and may encourage more project proponents to get
involved in hazardous waste site remediation.
AB 1188
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5)Related Legislation. When heard by this committee, AB 2729
(Ruskin, Chapter 644, Statutes of 2008) included provisions
nearly identical to the provisions of this bill. AB 2729 won
passage in this committee on a vote of 12-5.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081