BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 408
                                                                       

                       SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                         Senator S. Joseph Simitian, Chairman
                               2011-2012 Regular Session
                                            
           BILL NO:    AB 408
           AUTHOR:     Wieckowski
           AMENDED:    April 12, 2011
           FISCAL:     Yes               HEARING DATE:     July 6, 2011
           URGENCY:    Yes                                 CONSULTANT:      
             Rachel Machi                                  Wagoner   
            SUBJECT  :    HAZARDOUS SUBSTANCES AND MATERIALS

            SUMMARY  :    
           
            Existing law  :

           1) Provides that those expenses of an emergency response 
              necessary to protect the public from a real and imminent 
              threat to health and safety by a public agency to confine, 
              prevent, or mitigate the release, escape, or burning of 
              hazardous substances, as defined, are a charge against any 
              person whose negligence causes the incident, if either of the 
              following occurs: 

              a)    Evacuation beyond the property where the incident 
                 originates is necessary to prevent loss of life or injury. 


              b)    The incident results in the spread of hazardous 
                 substances or fire posing a real and imminent threat to 
                 public health and safety beyond the property of origin.  

           2) Requires all generators, transporters and facility operators 
              that handle hazardous wastes to obtain an identification 
              number from the United States Environmental Protection Agency 
              (US EPA) or Department of Toxic Substances Control (DTSC) 
              depending on the amount and types of hazardous waste they 
              handle, and pay an annual fee. 

           3) Requires generators, transporters and facility operators to 
              complete a manifest that tracks the shipment of hazardous 
              waste from generation to disposal. 










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           4) Authorizes certain California hazardous wastes, as defined, 
              to be transported using a consolidated manifest.

           5) Requires businesses to have response plans for releases of 
              specified hazardous materials and provide an annual inventory 
              of hazardous materials handled to the Certified Unified 
              Program Agencies (CUPAs).  Requires any person who handles 
              hazardous material to annually submit an inventory of 
              hazardous materials to the CUPA.

           6) Under the Porter-Cologne Water Quality Control Act any person 
              who violates prescribed provisions of the Act is subject to 
              civil liability, and sets requirements for determining the 
              amount of any liability.

           7) Authorizes the State Water Resources Control Board (SWRCB) or 
              a regional water quality control board (RWQCB), in lieu of 
              assessing all or a portion of the mandatory minimum 
              penalties, to require a publically owned treatment works 
              (POTW) serving a small community of 10,000 or less to spend 
              an equivalent amount towards the completion of a compliance 
              project proposed by the POTW.

            This bill  makes changes to hazardous material reporting, 
           emergency response, hazardous waste manifest requirements and 
           Water Code violations.  Specifically this bill:

           1) Enables local government cost recovery for emergency response 
              to hazardous substances spills under a wider range of 
              circumstances.

           2) Provides that those expenses of an emergency response 
              necessary to protect the public from a real and imminent 
              threat to health and safety by a public agency to confine, 
              prevent, or mitigate the release, escape, or burning of 
              hazardous substances, as defined, are a charge against any 
              person whose negligence causes the incident, if either of the 
              following occurs:

              a)    Evacuation from the building, structure, property, or 
                 public right-of-way where the incident originates is 
                 necessary to prevent loss of life or injury; or










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              b)    The incident results in the spread of hazardous 
                 substances or fire posing a real and imminent threat to 
                 public health and safety beyond the building, structure, 
                 property, or public right-of-way where the incident 
                 originates.

           3) Expands the definition of "hazardous substance" for purposes 
              of local government cost recovery.

           4) Allows for the consolidating manifesting procedures for 
              haulers of hazardous waste to be used for the receipt, by a 
              transporter, of one shipment of used oil from a generator 
              whose identification number has been suspended, if certain 
              requirements are met.  Sunsets this authority on January 1, 
              2014.

           5) Allows a CUPA to exempt reporting for hazardous material 
              quantities less than the federal Emergency Planning and 
              Community Right-to-Know Act (EPCRA) threshold levels for low 
              hazard materials.

           6) Expands the compliance project "in lieu" provisions from the 
              mandatory minimum penalty violations provisions of the 
              Porter-Cologne Water Quality Control Act for publicly owned 
              treatment works (POTWs) serving a population of 20,000 or 
              fewer persons.

           7) Contains an urgency clause.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "AB 408 provides a 
              wide-ranging series of regulatory reforms addressing the 
              problems of business, local governments, and emergency 
              personnel in complying with California hazardous material and 
              hazardous waste laws.  In many cases we find conflicting 
              standards between State and federal agencies or the laws have 
              failed to keep up with changing industrial practices.  This 
              bill brings together primarily technical elements of our 
              statutes that need to be easier to understand, simpler for 
              business and local governments to comply with but done in a 
              way that increases the actual protection on the public health 
              and the environment."









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            2) Local emergency response  .  Local government emergency 
              response agencies face toxic chemical spills and accidents 
              every day.   In 2010 there were over 3100 reported chemical 
              spills reported in California.  The cost of responding to 
              many of these incidents falls on local taxpayers.  Toxic 
              spills may originate in a public right-of-way and results in 
              highway closure or the spread of a hazardous substance beyond 
              a public right-of-way.

              Under existing law, cost recovery for emergency response is 
              available only if the incident either results in (a) an 
              evacuation "beyond the property where the incident 
              originates" or (b) the spread of hazardous substances "beyond 
              the property of origin."  (Health and Safety Code 
              �13009.6(a))  In both cases, the operative word is "beyond."  
              However, if the incident originates on a public right-of-way 
              (e.g. a tanker truck spills hazardous materials on a public 
              highway), existing law arguably does not allow cost recovery 
              because evacuation of the affected section of the highway 
              does not constitute evacuation "beyond the property where the 
              incident originates," and a spill on the highway may not 
              necessarily spread "beyond" the highway.  Similarly, if the 
              incident originates in a building or structure on a large 
              property, requiring emergency response, but the evacuation or 
              spread of hazardous materials remains within the confines of 
              the large property, it would appear that local cost recovery 
              for the emergency response is precluded because neither the 
              evacuation nor spread occurred strictly "beyond the property 
              of origin."

            3) Consolidated manifest for hazardous waste collection  .  This 
              bill addresses issues raised by the inability of a used oil 
              transporter to pick up a load of used oil from generators who 
              did not return their annual ID number verification and 
              related forms and fees.  Often these are small generators who 
              infrequently generate used oil and have not acknowledged the 
              need to keep their ID number up to date.  This bill allows 
              for a one-time pick up with both the generator and the 
              transporter reporting the pick up to DTSC.

            4) Business Plans -- Emergency Response and Annual Inventories  :  
              Chapter 6.95, �25503, of the Health and Safety Code requires 









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              any business that handles/stores a hazardous material or a 
              mixture containing a hazardous material, to establish and 
              implement a Business Plan for Emergency Response to a release 
              or threatened release of a hazardous material, if handled in 
              the following "reportable" quantities:

              a)    Equal to or greater than 500 pounds, 55 gallons, or 200 
                 cubic feet of gas (gas calculated at standard temperature 
                 and pressure); or

              b)    Equal to or greater than the applicable federal 
                 threshold planning quantity (TPQ) for an extremely 
                 hazardous substance; or

              c)    Radioactive materials that are handled in quantities 
                 for which an emergency plan is required under federal law.

                 A central purpose of current law requiring businesses to 
                 devise a plan for managing hazardous materials and 
                 reporting on this annually is to ensure that emergency 
                 response personnel (e.g. firefighters) will have advance 
                 knowledge of hazards they may be confronting, such as in 
                 response to a fire.

                 Businesses currently must disclose very low hazard 
                 materials such as soaps, food constituents, cement, inert 
                 gases and many other similar materials when present at or 
                 exceeding quantities of 55 gallons, 500 lbs. or 200 cubic 
                 feet.

            5) SWRCB Water Quality Improvement Initiative:  Mandatory 
              minimum penalties for Water Code violations:  Expansion of in 
              lieu compliance projects affects penalty deterrent  .  When 
              mandatory minimum penalties were added in 1999, the SWRCB, 
              RWQCBs, and POTWs were authorized to require a discharger to 
              complete and implement pollution prevention, comply with that 
              plan, and make the plans available for public review.  The 
              SWRCB, RWQCBs, and POTWs were authorized to assess civil 
              liability and penalties, and to include a pollution 
              prevention plan in any waste discharge requirements or other 
              permit issued by the entity.

           Because discharges are introduced into POTWs for treatment, and 









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              POTWs undertake the compliance project for treatment purposes 
              (as well as have the responsibilities described above), the 
              compliance project in lieu of penalties is limited to POTWs - 
              not other types of dischargers.  Moreover, the mandatory 
              minimum penalty provisions, as well as related provisions 
              enacted in the mandatory minimum penalty measures, do not 
              contain references to drinking water systems.  

               In policy deliberations before the Senate Environmental 
              Quality Committee, the general direction of the Committee has 
              been to ensure that at a minimum, the economic benefit of a 
              violation of law should be recovered.  This perspective is 
              supported, in part, by various reports documenting the lack 
              of deterrence against violations of environmental law due to 
              insufficient sanctions.  The in lieu compliance project 
              alternative is intended to apply to a specific circumstance - 
              POTWs serving a small community meeting certain conditions.  
              Expanding that provision by increasing the population cap 
              largely defeats the original purpose for establishing 
              mandatory minimum penalties.

              If there are concerns about compliance programs, the author 
              may wish to consider other alternatives, such as extending 
              payments and alternative sources to finance improvements.
            
           6) Expansion of population cap inconsistent with other Water 
              Code "small community" definitions  .  The Water Code contains 
              5 definitions for "small community" with population caps for 
              certain programs.  None of these references exceed 10,000 
              persons.

            Water Code�                                                       
                Population Cap  
           �13999.2(j)     Clean Water Bond Law of 1984                     
                   5,000 or less
           �14052(k)              Clean Water/Reclamation Bond Law of 1988  
                  3,500 or less
           �78610(d)              Clean Water/Water Recycling Program      
              5,000 or less
           �79084(b)              Costa-Machado Water Act of 2000           
                 10,000 or less
           �79120(d)              Costa-Machado Water Act of 2000           
                 10,000 or less









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           Because other Water Code "small community" definitions do not 
              contain a population cap exceeding 10,000 persons, expanding 
              the population cap for the in lieu compliance project process 
              is inappropriate and should be stricken.

            7) D�j� vu  .  Over the past several years the Senate 
              Environmental Quality Committee has considered bills with 
              similar or identical provisions (AB 914 (Logue) of 2009, AB 
              25 (Gilmore) of 2009-10 and SB 1284 (Ducheny) of 2010) and 
              voted each time to strike this language to increase the 
              population threshold for the above stated policy reasons.  

           8) Prior Legislation  :  

               AB 25 (ESTM Committee) of 2010 allows a hazardous waste 
              transporter, under certain circumstances, to receive one 
              shipment of used oil from a generator whose identification 
              number has been suspended.  This bill was vetoed by Governor 
              Schwarzenegger stating that, "the Department of Toxic 
              Substances Control (DTSC) already allows a conditional 
              reactivation of a suspended identification number for 30 days 
              for generators and transporters.  Given this existing 
              process, this bill would simply create additional bureaucracy 
              and reporting requirements for a subset of transporters and 
              generators and do nothing to reduce the number of suspended 
              identification numbers or streamline the reactivation 
              process."
            
               AB 914 (Logue) of 2010 specified that SWRCB may take into 
              consideration the additional criterion of impacts of 
              mandatory minimum penalties on individual ratepayers when 
              making a determination of "financial hardship" of a small 
              community served by a POTW.  This bill was vetoed by Governor 
              Schwarzenegger stating that "The bill is unnecessary since 
              the Board already has the authority under current law to take 
              any factor it deems appropriate into consideration when 
              making a determination of financial hardship of a small 
              community served by a POTW."
            
               AB 2388 (Miller) of 2010 requires the DTSC, by July 1, 2011, 
              to provide a method for the immediate reactivation, by means 
              of a wireless communication device, of a suspended 









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              identification number of a hazardous waste generator.  AB 
              2388 was held in the Assembly Appropriations Committee.  

               SB 1284 (Ducheny) Chapter 645, Statutes of 2010, exempted 
              certain Water Code violations of waste discharge reporting 
              requirements from existing mandatory minimum penalties.  
            
            9) Clarifying Amendments Needed  .  Section 2 of the bill needs to 
              be amended to clarify the roles of the transporter and the 
              generator in complying with this section.  
                  
               A code cleanup amendment is needed in the CUPA authorizing 
              statute, Divisions 20 and 21 of the Health and Safety Code, 
              to change "Uniform Fire Code" to "California Fire Code."   

            SOURCE  :          California Association of Environmental Health 
           Administrators
            
            SUPPORT  :      Independent Waste Oil Collectors and Transporters
            
           OPPOSITION  :    None on file