BILL ANALYSIS
SB 143
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 143 (Cedillo) - As Amended: July 16, 2009
Policy Committee: Environmental
Safety Vote: 7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill extends the sunset date of the California Land and
Reuse Revitalization Act of 2004 (CLRRA) from January 1, 2010,
to January 1, 2017.
FISCAL EFFECT
According to the Department of Toxic Substances Control, the
department is reimbursed for all CLRRA project oversight costs
by project proponents and responsible parties. Therefore, this
bill will entail no state costs.
COMMENTS
1)Rationale . The author, who coauthored CLRRA, claims that
despite numerous and successful site clean ups and
developments as a result of CLRRA, brownfields remain a
problem in California. 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. The
author contends this bill, which extends the limited immunity
protections provided in CLRAA, will continue to encourage
buyers to seek out and improve properties they would not
pursue without the liability protection offered through CLRRA.
2)Background .
SB 143
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a) California Brownfields Abound. Brownfields are
properties that are contaminated, or thought to be
contaminated, and are underutilized due to perceived
cleanup costs and liability concerns. According to the
California Environmental Protection Agency, there are
approximately 90,000 brownfield sites in California.
b) Law Provides for Limited Immunity . Traditionally,
federal and state law provided that both current and
previous owners of a property are potentially liable for
the cost of cleanup of hazardous materials released on the
property. In 2002, federal law was modified to grant
conditional immunity to innocent and prospective purchasers
and to innocent contiguous property owners for previously
occurring contamination for which the innocent or
prospective purchaser had no responsibility. In 2004,
California enacted CLRRA, providing qualified immunity to
innocent landowners, bona fide purchasers, and contiguous
property owners who did not cause or contribute to a
release of contaminants. 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. CLRRA will
sunset on January 1, 2010, though any immunity provided to
property owners will continue beyond the sunset date.
3)Supporters , including the American Federation of State, County
and Municipal Employees (AFSCME), the California Major
Builders Council, and the California Redevelopment
Association, claim that the CLRRA program has led to the
successful clean up and development of numerous sites in the
state that would otherwise remain contaminated and underused.
The act's record of success, these proponents claim, warrants
its continuation.
There is no registered opposition to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081