BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 712 (Lara) - Hazardous waste facility: permitting: interim  
          status.
          
          Amended: January 16, 2014       Policy Vote: EQ 8-0
          Urgency: No                     Mandate: No
          Hearing Date: January 21, 2014                    Consultant:  
          Marie Liu     
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
          
          
          Bill Summary: SB 712 would establish deadlines for the  
          Department of Toxic Substances Control (DTSC) to take final  
          action on permit applications from hazardous waste facilities  
          operating under an interim status grant. 

          Fiscal Impact: 
           No costs in 2014-15 and 2015-16 for permitting one facility  
            operating on an interim status grant.
           Unknown, but likely insignificant, costs from the Hazardous  
            Waste Control Account (special), for permitting facilities on  
            an interim status grant in the long-term future.

          Background: Under the California Hazardous Waste Control Act,  
          facilities that treat, store, handle, and/or dispose of  
          hazardous waste are required to be permitted by the DTSC. The  
          hazardous waste facility permit specifies specific requirements  
          for the facility to ensure safe operation. There are currently  
          117 facilities permitted by DTSC. While these permits expire  
          after 10-years, the facility is allowed to continue to operate  
          past this date while DTSC considers their permit renewal  
          application. There are currently 24 facilities operating under  
          these so-called "continued permits." 

          One permit of the 117 is an interim permit for a facility owned  
          by Exide Technologies in Vernon, California. The interim permit  
          was first issued in 1981. Over the next 30 years, while there  
          have been some steps taken to get the facility under a regular  
          permit, regular permit has not yet been issued. There are no  
          other facilities in California that are currently operating  
          under an interim permit.








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          Proposed Law: This bill would DTSC to take final action on a  
          permit application for a facility operating under an interim  
          status grant according to the following schedule:
                 By December 31, 2015 for any interim status granted  
               before January 1, 1986,
                 By January 1, 2020 for any interim status granted after  
               January 1, 1986 but before January 1, 2015, and
                 Within five years for any interim status granted after  
               January 1, 2015. 

          This bill would also allow DTSC to temporarily suspend the  
          operation of a facility operating under a continued permit or an  
          interim status grant in order to protect public health or safety  
          or the environment. DTSC would have specified timelines to  
          notify the owner and operator of the facility, set a hearing to  
          consider the suspension, and to make a final determination. The  
          temporary suspension would be lifted if DTSC failed to meet  
          these time limits.

          Related Legislation: SB 812 (De Le�n) would establish deadlines  
          for DTSC to take action on applications for permit renewals for  
          hazardous waste facility permits. SB 812 is to be heard by this  
          committee on January 21, 2014.

          Staff Comments: There is only once facility currently operating  
          under an interim status grant in the state. DTSC intends on  
          taking final action on that facility's permit application within  
          the timeframes outlined in this bill and with their existing  
          staffing levels. Therefore, there are no costs related to the  
          provisions of the bill requiring action on facilities issued an  
          interim status grant prior to January 1, 2015. 

          DTSC does not anticipate issuing any future interim status  
          grants. In the past, broad expansions of the hazardous waste  
          laws prompted the use of interim status grants as it allowed the  
          agency to better understand the newly regulated industries and  
          fine tune permit conditions before they were finalized. Should  
          there be another broad expansion of the hazardous waste laws in  
          the future, there is a small possibility that interim status  
          grants could be used again. Staff notes that even in the event  
          that interim status grants were to be used again, the cost  
          impacts of this bill would be mixed with the impacts of a large  
          number of changes underway and anticipated to DTSC's permitting  








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          process. Compared to the other changes to the permitting  
          process, staff believes the cost impact of a three-year limit on  
          interim status grants would be minimal.