BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 553
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          Date of Hearing:   April 13, 2011

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
                 AB 553 (Monning) - As Introduced:  February 16, 2011
           
          SUBJECT  :   Employment safety: hazardous materials.

           SUMMARY  :   Requires the Occupational Safety and Health Standards 
          Board (Standards Board) to promulgate standards dealing with 
          certain toxic materials in a specified manner.  Specifically, 
           this bill  :

          1)Requires the Standards Board, when adopting standards dealing 
            with toxic materials for which a quantitative risk assessment 
            has been prepared by other specified state and federal 
            agencies, to adopt a permissible exposure limit (PEL) as 
            follows:

             a)   The PEL must correspond with a "health-based 
               occupational exposure limit" (as defined) to the extent 
               feasible.

             b)   The "health-based occupational exposure limit" shall be 
               calculated from the lowest quantitative risk assessment 
               that addresses cancer or reproductive, developmental, or 
               other serious physical harm.

             c)   There is a rebuttable presumption that any PEL adopted 
               shall be the same as the "health-based occupational 
               exposure limit" unless it is not feasible.

          2)Requires the Standards Board to place primary emphasis on 
            attainment of the highest degree of health and safety 
            protection, as specified.

          3)Specifies that, when calculating the "health-based 
            occupational exposure limit," adjustments shall be made to 
            reflect a standard work week over a working life period of 40 
            years.

          4)Specifies that for carcinogens, the PEL shall ensure that 
            there is no significant risk to employee health (defined as 
            not less protective than the level that would result in cancer 
            in one employee per 100,000 employees exposed to the 








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            carcinogen over a working lifetime).

          5)Specifies that for other toxicants that cause or contribute to 
            reproductive, developmental or serious physical harm, the PEL 
            shall be at a level at which no harm occurs.

          6)Requires the Standards Board, in determining feasibility, to 
            consider the most cost-effective approach possible.

          7)Requires the determination of feasibility to include 
            evaluating whether an employer may achieve compliance through 
            the substitution of a safer alternative.  If no safer 
            alternative exists, the Standards Board may consider a 
            reasonable phase-in period.

          8)Specifies that if the Standards Board adopts a PEL that is 
            less protective that the "health-based occupational exposure 
            limit," it shall do both of the following:

             a)   Make findings of fact regarding feasibility, giving more 
               weight to independently verified evidence, as specified.

             b)   Identify the degree of excess cancer risk and risk of 
               reproductive, developmental, or serious physical harm for 
               the PEL compared to the "health-based occupational exposure 
               limit."

          9)Makes related legislative findings and declarations.

           EXISTING LAW  : 

          1)Establishes the Standards Board as the only agency in the 
            state authorized to adopt occupational safety and health 
            standards.

          2)Requires the Standards Board to adopt occupational safety and 
            health standards that are at least as effective as federal 
            standards promulgated under the Occupational Safety and Health 
            Act of 1970.

          3)Requires the Standards Board, in promulgating standards 
            dealing with toxic materials or harmful physical agents, to 
            adopt the standard that most adequately assures, to the extent 
            feasible, that no employee will suffer material impairment 
            even if the employee regular and prolonged exposure to the 








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            hazard.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  This bill proposes to revise the manner in which 
          permissible exposure limits (PELs) are adopted for toxic 
          substances in the workplace.

           General Background
           
          Labor Code Section 144.6 requires the Standards Board, when 
          dealing with standards for toxic materials and harmful physical 
          agents, to adopt standards which most adequately assure, to the 
          extent feasible, that no employees suffer material impairment of 
          health or functional capacity, even if the employee has regular 
          exposure to the hazard for the period of one's working lifetime. 
           This section also requires the Standards Board to base 
          standards on research, demonstrations, experiments and other 
          information that may be appropriate.  Labor Code Section 144.6 
          also lists other considerations (such as the latest scientific 
          literature, the reasonableness of the standards, and the 
          experience gained in other health and safety laws) that are to 
          be considered.

           The Advisory Committee Process and the 2007 Policy and Procedure
           
          The issue of permissible exposure limits (PELs) for hazardous 
          substances is generally dealt with by the Division of 
          Occupational Safety and Health (DOSH) and the Standards Board 
          through an administrative process in which an advisory committee 
          reviews  scientific information and makes recommendations to the 
          Standards Board.   

          By some accounts, this advisory committee process has been 
          delayed in recent years.  Some observers have alleged that 
          particularly controversial proposals (where it is difficult to 
          reach consensus among industry and employee representatives) or 
          proposals seeking to establish PELs below certain levels have 
          been pulled out of the rulemaking process and delayed and/or 
          ultimately abandoned.

          In 2007, DOSH convened an advisory group to establish a formal 
          "policy and procedure" for the advisory committee process 
          related to PELs for airborne contaminants.  On March 16, 2007, 
          DOSH released its final version of the PEL process document, 








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          which outlined the formal process to be used by DOSH to develop 
          proposals for new or revised PELs.

          Under this procedure, a three-part advisory committee process is 
          primarily used.  First, DOSH staff develops a list of existing 
          and new substances to be review for possible inclusion or 
          updating and an advisory committee will be held to review the 
          entire list of substances to be considered.  Second, a health 
          expert advisory committee (HEAC) is used to review the 
          scientific literature and, where it deems there is sufficient 
          scientific evidence, recommend a new or revised PEL to protect 
          the health of employees.  Third, the recommended PEL from the 
          HEAC is then considered by a feasibility advisory committee 
          (FAC).  The FAC provides an opportunity for interested parties 
          to comment in an informal process prior to formal rulemaking on 
          technical and economic feasibility of recommended PELs.  The 
          primary focus of the FAC is to determine whether, and if so how, 
          a PEL proposed by HEAC should be modified based on feasibility 
          issues.

          The 2007 document also outlined procedures intended to improve 
          public notice and interested party involvement in the advisory 
          committee process.

           Current Process for Determining a Prioritized List of Substances

           The 2007 policy and procedure document stated that, prior to the 
          formation of the HEAC and FAC, DOSH staff will develop a list of 
          existing and new airborne contaminant substances to be reviewed 
          for possible inclusion or updating. 

          The document also directed DOSH staff to prioritize the list of 
          substances based on the following considerations:

                     Evidence of a serious potential hazard not 
                 adequately addressed by existing regulations of DOSH or 
                 other governmental agency.
                     A substantial change in the value of an OEL that 
                 could contribute to increased protection of workers if 
                 adhered to by employers.
                     The degree to which a substance is in widespread use 
                 in California or to which there are other indications of 
                 pervasive and potentially hazardous worker exposure to 
                 the substance.   
                     The seriousness of the nature of the health hazard 








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                 presented by the substance.  For example, substances with 
                 apparent potential for cancer, reproductive, 
                 developmental, or sensitizing effects would generally 
                 receive a higher priority for consideration than 
                 substances where the major hazard potential is mild 
                 respiratory irritation.  
                     The potential for exposure in California in 
                 combination with the degree of hazard.  For example, a 
                 limited exposure to a highly toxic substance may be just 
                 as significant as widespread exposure to a less toxic 
                 substance.  
           

          Current Substances Under Consideration and What Else Is In the 
          "Pipeline"

           With respect to airborne contaminants currently going through 
          the PEL process, it appears that nine substances are in various 
          stages of readiness for discussion by the HEAC.  Six substances 
          are in mid-discussion by the HEAC.  Fourteen substances are 
          through the committee process.  Of these, four substances 
          (carbon disulfide, hydrogen fluoride, sulfuric acid, and 
          toluene) have been noticed for discussion by the Standards Board 
          this month (April 2011).  These appear to be the first four 
          substances for which a proposed PEL has been developed under 
          this new updated process. 
           
           With respect to other substances on the priority list, there are 
          25 substances designated as "Priority 1" for which sufficient 
          information and California usage are available to warrant work 
          by the HEAC.  Fifteen of these substances are already in the 
          pipeline discussed above.  "Priority 2" substances are those 
          requiring more initial DOSH research before moving.  There are 
          55 substances on this list.  "Priority 3" substances are those 
          probably not warranting more research for promotion to higher 
          priority due to likely low usage.  Sixty-three substances are on 
          the priority 3 list.  "Priority 4" is defined as other 
          substances not currently anticipated for additional work, and 
          there appear to be 123 substances on this list.
           
          How is the Revised Process Working?
           
          Unfortunately, the answer to this question depends on who you 
          ask.









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          Supporters of this bill allege that the current process is 
          delayed and inadequate, despite the 2007 revisions to the policy 
          and procedure document.  They contend that there are several 
          substances that have been of concern for many years that have 
          not yet made it through the PEL process.  Supporters contend 
          that industry representatives delay the process for years, that 
          DOSH allows the process to "drag on" for years, and sometimes 
          refuses to even send along a recommendation that came out of the 
          advisory committee process to the Standards Board.

          Opponents of the bill, on the other hand, contend that the 
          current PEL development process takes all available and relevant 
          information into account, including the levels recommended by 
          other agencies.  This process is designed to evaluate 
          discrepancies in the available data and professional opinions in 
          order to facilitate the most informed and scientifically 
          defensible decision possible.

          Opponents note that 18 PELs were adopted in December 2009.  
          These PELs did not go through the updated process, but were 
          completed by DOSH while running the updated process.
          According to industry representatives, a least two of these PELs 
          were adopted despite strong industry concerns.  Opponents also 
          point to two other standards (for diacetyl and aerosol 
          transmissible disease) which were highly contentious rules 
          adopted to protect workers from airborne hazardous substances.







           ARGUMENTS IN SUPPORT  :

          According to the author, this bill amends current law to require 
          the Standards Board to establish PELs that meet specified 
          criteria, with an emphasis on obtaining the highest degree of 
          health and safety protection for workers.  The author states 
          that this will ensure that the Standards Board adequately 
          protects workers against effects of substances/chemicals that 
          may cause cancer or reproductive, developmental or other serious 
          physical harm when it regulates hazardous substances or toxic 
          materials. 









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          The author states that California workers are exposed to toxic 
          chemicals known to cause cancer or reproductive, developmental 
          and other serious physical harm to workers and their children.  
          However, it can take years before the Standards Board adopts 
          protective PELs for various toxic chemicals when data exists 
          clearly showing their dangerous nature.  The Standards Board 
          delays protecting the workers when it unnecessarily duplicates 
          the effort of other California and national agencies that have 
          already researched and prepared quantitative risk assessments 
          for toxic chemicals that cause cancer or reproductive, 
          developmental and other serious physical harm.  The author 
          argues that the Standards Board should bear the responsibility 
          to rely on the scientific findings of these other governmental 
          agencies that protect the public and apply equal protections for 
          workers when exposed to the same chemicals in the workplace.

          Similarly, supporters contend that many chemicals known to cause 
          cancer or reproductive toxicity are unregulated or 
          under-regulated in the workplace.  Fifteen toxic chemicals known 
          to cause cancer or reproductive toxicity (as listed under 
          Proposition 65) are simply not regulated in the workplace.  
          Additionally, fifty-three toxic chemicals on the Proposition 65 
          list are regulated in the workplace, but only to protect against 
          acute or short-term health effects like headaches or irritation 
          but not cancer or reproductive toxicity.

           ARGUMENTS IN OPPOSITION  :

          Opponents contend that this bill is an unwarranted attempt to 
          pre-empt the Standards Board and DOSH from crafting and adopting 
          rational consensus standards for workplace exposures to 
          hazardous substances. The Standards Board is the only agency in 
          the state authorized to adopt, amend or repeal occupational 
          safety and health standards. This bill would undermine the 
          Standards Board's authority and mission by constraining its 
          ability to consider all relevant data and derive reasonable 
          PELs.  Opponents argue that this bill is intended to drive PELs 
          lower using risk estimates based on worst-case exposure 
          scenarios that do not reflect actual workplace conditions. 

          Opponents argue that California already leads the nation in both 
          quantity of new PELs and their protectiveness.  The first set of 
          PELs developed under DOSH's updated process is scheduled for 
          public hearing before the Standards Board this month. Also, 
          opponents state that DOSH has new federal funding for a Med-Tox 








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          unit staffed with a doctor and two toxicologists who will 
          provide new analytical resources to the PEL setting process.  
          This bill would seriously disrupt the current flow of PELs to 
          the Standards Board.

          In addition, opponents state that this bill requires a costly 
          "safer-alternatives" analysis for every affected manufacturing 
          process.  This will substantially delay the PEL setting process 
          and divert limited resources from higher-risk substances not 
          covered under this bill. For example, substances causing severe 
          irritation such as asthma or central nervous system effects like 
          narcosis could be pushed aside, though they may be far more 
          important to worker health.

          Finally, opponents argue that this bill constructs unreasonable 
          hurdles for the consideration of feasibility as a real factor in 
          setting PELs.  It requires a series of findings that demand 
          original research and analysis well beyond Standards Board and 
          DOSH capacity and would make the Board a target for litigation.  
          For example, the Board would have to find that an employer 
          couldn't achieve compliance through the substitution of a safer 
          alternative.  In addition, they contend that the bill would 
          force the Board to discount the value of employer or industry 
          data which has not been "independently verified" (undefined), 
          and publish an estimate of the additional illnesses or deaths 
          that would result from the higher PEL based on worst-case 
          exposure scenarios that do not reflect actual workplace 
          conditions.  Opponents state that these feasibility hurdles will 
          lead inevitably to a rubber stamp of the lowest limit based on a 
          quantitative risk assessment by one of the few agencies named in 
          the bill.  Hence, the lowest value may not be a solid foundation 
          on which to set a PEL.

           PRIOR LEGISLATION  :

          This bill is similar to AB 515 (Lieber) from 2007.  That measure 
          was held in the Senate Committee on Environmental Quality.

          This bill is also similar to AB 815 (Lieber) from 2005, which 
          was held in the Senate Committee on Appropriations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








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          Asian Law Caucus
          Asian Pacific American Legal Center
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Healthy Nail Salon Collaborative
          California Labor Federation, AFL-CIO
          California Nurses Association
          California Official Court Reporters Association
          California Rural Legal Assistance Foundation
          California Teamsters Public Affairs Council
          Consumer Attorneys of California
          Engineers and Scientists of California
          Health Officers Association of California
          International Longhsore and Warehouse Union
          National Lawyers Guild Labor & Employment Committee
          Natural Resources Defense Council
          Northern California District Council, ILWU
          Physicians for Social Responsibility (San Francisco Bay Area 
          Chapter)
          Professional and Technical Engineers, Local 21
          San Mateo County Central Labor Council
          SCOPE, Laborers International Union of North America
          Sierra Club California
          UNITE HERE!
          United Food and Commercial Workers Union, Western States 
          Conference
          Utility Workers of America, Local 132
          Women's Employment Rights Clinic - Golden Gate University School 
          of Law
          Working Partnerships USA
          Worksafe, Inc.

           Opposition 
           
          Advanced Medical Technology Association
          American Chemistry Council
          American Industrial Hygiene Association
          Associated General Contractors
          BIOCOM
          California Chamber of Commerce
          California Framing Contractors Association
          California Healthcare Institute
          California Industrial Hygiene Council
          California League of Food Processors
          California Manufacturers and Technology Association








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          Chemical Industry Council of California
          Consumer Specialty Products Association
          CSAC Excess Insurance Authority
          District Council of Ironworkers/California Ironworker Employer 
          Council Safety Institute
          Industrial Environmental Association
          Residential Contractor's Association
          Styrene Information and Research Center
          Western Growers
          Western Plant Health Association
          Western States Petroleum Association
          Western Steel Council
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091