BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 143|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 143
Author: Cedillo (D)
Amended: 4/23/09
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-0, 04/20/09
AYES: Simitian, Runner, Ashburn, Corbett, Hancock,
Lowenthal, Pavley
SENATE JUDICIARY COMMITTEE : 5-0, 4/28/09
AYES: Corbett, Harman, Florez, Leno, Walters
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/18/09
AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,
Leno, Wolk, Wyland, Yee
NO VOTE RECORDED: Oropeza, Runner, Walters
SUBJECT : Hazardous materials: California Land Reuse and
Revitalization Act of 2004
SOURCE : Author
DIGEST : This bill extends the date of repeal for the
California Land Reuse and Revitalization Act of 2004 from
January 1, 2010 to January 1, 2017, and makes a
corresponding change to a provision that provides for
continued immunity after the repeal of the Act.
ANALYSIS : Existing law generally provides for joint and
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several liability for current and previous owners of
property for the "response costs" (cost of clean up)
incurred by the government or any other party associated
with the contamination of a site by hazardous materials.
(Federal CERCLA, 42 USC Sec. 9601 et seq.;
Carpenter-Presley-Tanner Hazardous Substance Account Act,
Health and Safety Code Section 25300 et seq.; Hazardous
Waste Control Law, Health and Safety Code Section 25100 et
seq.; Keene Underground Storage Tank Cleanup Trust Fund
Act; Health and Safety Code Section 25299 et seq.)
Existing law, the California Land Reuse and Revitalization
Act of 2004 (CLRRA), provides innocent landowners, bona
fide purchasers, and contiguous property owners who did not
cause or contribute to a release with immunities from (1)
claims for response costs or other damages associated with
a release or threatened release of a hazardous material at
this site; or (2) agency action to require the individual
to rake a response action, other then the response action
required in an approved response plan, except under certain
conditions. (Health and Safety code Section 25395.60 et
seq.)
Existing law requires a bona fide purchaser, innocent
landowner, or contiguous property owner who seeks to
qualify for the above immunity to enter into an agreement
with an agency. Existing law requires that agreement to
include the performance of a site assessment, and, if the
agency determines that a response plan is necessary, to
prepare and implement the response plan. (Health and
Safety Code Section 25395.92.)
Existing law further requires individuals seeking to
qualify as bona fide purchasers, innocent landowners, or
contiguous property owners to:
1.Make all appropriate inquiries into the previous
ownership and uses of the site.
2.Exercise appropriate care with respect to the release or
threatened release of hazardous materials at the site.
3.Provide full cooperation, assistance, and access to a
person authorized to conduct response actions or natural
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resource restoration at the site.
4.Comply with land use controls established or relied on in
connection with an approved response action at the site.
5.Not impede the effectiveness or integrity of any aspect
of any remedy employed at the site in connection with a
response action.
6.Comply with all requests for information or
administrative subpoenas by an agency with jurisdiction.
7.Provide all notices, and satisfy reporting requirements
under state and federal law with respect to the hazardous
materials at the site. (Health and Safety Code Section
25395.80.)
Existing law will repeal the CLRRA on January 1, 2010,
unless a subsequent law repeals that requirement. Existing
law, operative January 1, 2010, provides that any
individual who qualifies for immunity as of December 31,
2009, retains their immunity, provided that they remain in
accordance with the requirements of the CLRRA. (Government
Code Sections 25395.109, 25395.110.)
This bill extends the repeal date to January 1, 2017. This
bill additionally extends the operative date of the
provision that provides for qualified immunity to January
1, 2017.
Background
Brownfields remain a continuing problem in California and
nationwide. Those properties represent abandoned, idled,
or under-used sites formerly utilized for industrial or
commercial purposes, resulting in perceived, or actual
contamination that deters redevelopment of the site. As
clean up costs can be expensive, especially when uncovering
unexpected hazardous materials during the cleaning of the
site, many of the sites remain vacant for many years.
Specifically in California, the California Environmental
Protection Agency (CalEPA) states:
"CalEPA's regulatory boards and departments plan an
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essential role in cleaning up contaminated sites to protect
public health and the environment. However, with an
estimated 90,000 properties in California that remain idle
or underutilized because or real or perceived environmental
contamination, it is clear that sufficient public resources
could never be allocated to accomplish this goal.
California's brownfields will not be restored to productive
use without significant participation by the private
sector. Discovering mutually beneficial ways to involve
investors in the future of these polluted properties is
crucial."
Traditionally, the federal Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA) and
various state laws, including the Carpenter-Presley-Tanner
Hazardous Substance Account Act, generally provided that
current and previous owners of contaminated property are
jointly and severally liable for the cost of clean up of
hazardous materials released on a site. (Joint and several
liability means that all parties are potentially liable for
the entire amount. If one property finds itself paying
more than its fair share of the total liability, that party
may seek to collect against other responsible parties, but
may still be held liable for the total amount.)
In 2002, the federal CERCLA was modified to grant immunity
to innocent and prospective purchasers, and innocent
contiguous property owners, for previously occurring
contamination for which the innocent or prospective
purchaser had not responsibility, subject to certain
conditions. Subsequently, in 2004, California enacted the
CLRRA, providing innocent landowners, bona fide purchasers,
and contiguous property owners, who did not cause or
contribute to a release, with a qualified immunity. To
take advantage of the provided immunity, qualifying
individuals must enter into an agreement with an oversight
agency that would require the individual to undertake
various tasks relating to cleanup of the hazardous
materials on the property.
Pursuant to its provisions, the CLRRA will sunset on
January 1, 2010, but any individual who qualifies for
immunity as of December 31, 2009, would retain their
immunity, as specified. This bill extends the sunset date,
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by seven years, to January 1, 2017, and makes a conforming
change to the provision that provides for continued
immunity.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
DTSC oversight Unknown, fully reimbursable
Special*
Water Board Minor costs, fully
reimbursable Special**
oversight
*Toxic Substances Control Account
**State Water Quality Control Fund
SUPPORT : (Verified 5/19/09)
California Major Builders Council
ARGUMENTS IN SUPPORT : The author's office notes that 20
sites have been approved under the CLRRA - 16 are in the
process of cleanup and four have been cleaned up and
revitalized. The four sites that have been cleaned up are:
(1) the Walker Landing Affordable Housing Project in
Hayward (site of a former food processing plant); (2) a 1.8
acre site purchased by Habitat for Humanity in Oakland; (3)
a 5.4 acre site in downtown San Diego; and (4) a 5.8 acre
property in the City of Los Angeles.
The author's office also maintains that, "Compared to all
other Brownfield programs administered by the Department of
Toxic Substances Control (DTSC), CLRRA is only surpassed by
the Voluntary Clean-Up Program in terms of its use. CLRRA
is one of a number of programs that serve as important
tools to achieve clean-up of contaminated sites. Its
continued use is important to encourage non-polluting
buyers to seek out infill sites in which t hey would not
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pursue without the liability protection offered through
CLRRA.
TSM:cm 5/19/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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