Amended in Assembly June 11, 2014

Amended in Senate March 27, 2014

Senate Bill No. 1458

Introduced by Committee on Environmental Quality (Senators Hill (Chair), begin delete Corbett, end delete Fuller, Gaines, Hancock, Jackson, Leno, and Pavley)

February 24, 2014

An act to amend Sections 25123.3, 25196, 25299, 25299.15, 25299.50, 25299.50.2, 25299.51, and 25299.56 of, to add Sections 25150.65 and 25227 to, and to repeal Section 25150.6 of, the Health and Safety Code, and to amend Sections 13176, begin delete 13321, end delete 13395.5, 13550, 13552.8, 13553.1, 13554, and 13554.2 of the Water Code, relating to hazardous wastes and substances.

LEGISLATIVE COUNSEL’S DIGEST

SB 1458, as amended, Committee on Environmental Quality. Hazardous substances.

(1) Existing law establishes various standards for management and control of hazardous waste, and authorizes the Department of Toxic Substances Control to exempt, by regulations adopted until January 1, 2008, a hazardous waste management activity from certain statutory requirements related to hazardous waste management if specified conditions for exemption are met. A violation of the hazardous waste control laws is a crime.

This bill would repeal the provisions that authorized, until January 1, 2008, the department to exempt hazardous waste management activities from those standards but would provide that those exceptions adopted prior to that date shall remain valid, unless repealed.

(2) Chapter 39 of the Statutes of 2012, effective June 27, 2012, authorizes a person to apply to the department for a written variance from a land use restriction imposed by the department on a hazardous waste property if certain requirements are met, including providing a statement containing specified information supporting the grant of a variance, and repealed a provision that prohibited certain uses of land that is hazardous waste property without a specific variance approved in writing by the department for the land use and land in question.

This bill would enact a prohibition similar to the one repealed against taking certain specified actions on land that is subject to a recorded land use restriction, unless a person obtains a specific approval in writing from the department for the land use on the land in question. The bill would make conforming changes with regard to this requirement. Since a violation of the bill’s prohibition would be crime, the bill would impose a state-mandated local program by creating a new crime.

(3) Existing law provides for the regulation of underground storage tanks by the State Water Resources Control Board, and requires the board, until January 1, 2022, to conduct a loan and grant program to assist small businesses in upgrading, replacing, or removing tanks meeting applicable local, state, or federal standards (UST upgrade program). Existing law creates the Underground Storage Tank Cleanup Fund in the State Treasury, and authorizes the board to expend moneys in the fund, upon appropriation by the Legislature, for purposes of the program. Existing law requires that specified funds, including moneys from civil penalties collected by the board or the regional board for violations of specified program requirements, be deposited in the fund.

This bill would additionally require that moneys recovered as compensation for expenditures associated with specified investigations or enforcement actions and moneys recovered to correct a previously overpaid expenditure be deposited in the fund. The bill would authorize the board to use moneys in the fund, upon repeal of those provisions governing the loan and grant program on January 1, 2022, to pay for specified expenditures related to the repayment of loans, and actions necessary to carry out rights, obligations, or authorities under the program. The bill would revise various requirements for determining an applicant’s eligibility for a claim for correction action costs or begin delete third-party end delete begin insert 3rd-party end insert compensation costs.

begin delete

(4) Existing law, the Porter-Cologne Water Quality Control Act, with certain exceptions, subjects a person to civil liability if the person causes or permits any hazardous substance to be discharged in any of the waters of the state where it creates a condition of pollution or nuisance. The act authorizes a party aggrieved by a regional water quality board’s action or failure to act with regard to the administration of specified water quality laws and regulations to obtain review of the order by the State Water Quality Control Board by filing a petition for writ of mandate within 30 days of the action or failure to act. Existing law authorizes the state board, in the case of a review by the state board, upon notice and hearing, if a hearing is requested, to stay, in whole or in part, the effect of the decision or order of a regional board or of the state board.

end delete begin delete

This bill would authorize an aggrieved party, within 30 days of any order of the state board issuing or denying a stay, to file with the superior court a petition for writ of mandate. The bill would require the superior court, if an aggrieved party files such a petition for writ of mandate, to uphold the order of the state board issuing or denying the stay unless the order is arbitrary, capricious, or entirely lacking in evidentiary support, or the state board failed to follow specified procedures or give required notices, as prescribed. The bill would also specify that any stay granted by the state board or the superior court pursuant to those petitions may be made effective as of the effective date of the regional board or state board decision or order.

end delete begin delete

Existing

end delete

begin insert (4) end insert begin insert   end insert begin insert Existing end insert law requires the begin delete state board, end delete begin insert State Water Resources Control Board, end insert for the purpose of preparing health risk assessments, to enter into contracts or agreements with the State Department of Public Health, or with other state or local agencies, subject to the approval of the State Department of Public Health.

This bill would instead require the state board, for the purpose of preparing those health risk assessments, to enter into contracts or agreements with the Office of Environmental Health Hazard Assessment.

(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 25123.3 of the Health and Safety Code
is amended to read:

25123.3.  

(a) For purposes of this section, the following terms
have the following begin delete meaning: end delete begin insert meanings: end insert

(1) “Liquid hazardous waste” means a hazardous waste that
meets the definition of free liquids, as specified in Section 66260.10
of Title 22 of the California Code of Regulations, as that section
read on January 1, 1994.

(2) “Remediation waste staging” means the temporary
accumulation of non-RCRA contaminated soil that is generated
and held onsite, and that is accumulated for the purpose of onsite
treatment pursuant to a certified, begin delete authorized end delete begin insert authorized, end insert or
permitted treatment method, such as a transportable treatment unit,
if all of the following requirements are met:

(A) The hazardous waste being accumulated does not contain
free liquids.

(B) The hazardous waste is accumulated on an impermeable
surface, such as high density polyethylene (HDPE) of at least 20
begin delete mills end delete begin insert mils end insert that is supported by a foundation, or high density
polyethylene of at least 60 begin delete mills end delete begin insert mils end insert that is not supported by a
foundation.

(C) The generator provides controls for windblown dispersion
and precipitation runoff and run-on and complies with any
stormwater permit requirements issued by a regional water quality
control board.

(D) The generator has the accumulation site inspected weekly
and after storms to ensure that the controls for windblown
dispersion and precipitation runoff and run-on are functioning
properly.

(E) The staging area is certified by a registered engineer for
compliance with the standards specified in subparagraphs (A) to
(D), inclusive.

(3) “Transfer facility” means any offsite facility that is related
to the transportation of hazardous waste, including, but not limited
to, loading docks, parking areas, storage areas, and other similar
areas where shipments of hazardous waste are held during the
normal course of transportation.

(b) “Storage facility” means a hazardous waste facility at which
the hazardous waste meets any of the following requirements:

(1) The hazardous waste is held for greater than 90 days at an
onsite facility. The department may establish criteria and
procedures to extend that 90-day period, consistent with the federal
act, and to prescribe the manner in which the hazardous waste may
be held if not otherwise prescribed by statute.

(2) The hazardous waste is held for any period of time at an
offsite facility that is not a transfer facility.

(3) (A) Except as provided in subparagraph (B), the waste is
held at a transfer facility and any one of the following apply:

(i) The transfer facility is located in an area zoned residential
by the local planning authority.

(ii) The transfer facility commences initial operations on or after
January 1, 2005, at a site located within 500 feet of a structure
identified in paragraphs (1) to (5), inclusive, of subdivision (c) of
Section 25227.

(iii) The hazardous waste is held for a period greater than six
days at a transfer facility located in an area that is not zoned
industrial or agricultural by the local planning authority.

(iv) The hazardous waste is held for a period greater than 10
days at a transfer facility located in an area zoned industrial or
agricultural by the local planning authority.

(v) The hazardous waste is held for a period greater than six
days at a transfer facility that commenced initial operations before
January 1, 2005, is located in an area zoned agricultural by the
local planning authority, and is located within 500 feet of a
structure identified in paragraphs (1) to (5), inclusive, of
subdivision (c) of Section 25227.

(B) (i) Notwithstanding subparagraph (A), a transfer facility
located in an area that is not zoned residential by the local planning
authority is not a storage facility, if the only hazardous waste held
at the transfer facility is hazardous waste that is generated as a
result of an emergency release and that hazardous waste is collected
and temporarily stored by emergency rescue personnel, as defined
in Section 25501, or by a response action contractor upon the
request of emergency rescue personnel or the response action
contractor, and the holding of that hazardous waste is approved
by the department.

(ii) For purposes of this subparagraph, “response action
contractor” means any person who enters into a contract with the
department to take removal or remedial action pursuant to Chapter
6.8 (commencing with Section 25300) in response to a release or
threatened release, including any subcontractors of the response
action contractor.

(4) (A) Except as provided in subparagraph (B), the hazardous
waste is held onsite for any period of time, unless the hazardous
waste is held in a container, tank, drip pad, or containment building
pursuant to regulations adopted by the department.

(B) Notwithstanding subparagraph (A), a generator that
accumulates hazardous waste generated and held onsite for 90
days or less for offsite transportation is not a storage facility if all
of the following requirements are met:

(i) The waste is non-RCRA contaminated soil.

(ii) The hazardous waste being accumulated does not contain
free liquids.

(iii) The hazardous waste is accumulated on an impermeable
surface, such as high density polyethylene (HDPE) of at least 20
begin delete mills end delete begin insert mils end insert that is supported by a foundation, or high density
polyethylene of at least 60 begin delete mills end delete begin insert mils end insert that is not supported by a
foundation.

(iv) The generator provides controls for windblown dispersion
and precipitation runoff and run-on and complies with any
stormwater permit requirements issued by a regional water quality
control board.

(v) The generator has the accumulation site inspected weekly
and after storms to ensure that the controls for windblown
dispersion and precipitation runoff and run-on are functioning
properly.

(vi) The generator, after final offsite transportation, inspects the
accumulation site for contamination and remediates as necessary.

(vii) The site is certified by a registered engineer for compliance
with the standards specified in clauses (i) to (vi), inclusive.

(5) The hazardous waste is held at a transfer facility at any
location for any period of time in a manner other than in a
container.

(6) The hazardous waste is held at a transfer facility at any
location for any period of time and handling occurs. For purposes
of this paragraph, “handling” does not include the transfer of
packaged or containerized hazardous waste from one vehicle to
another.

(c) The time period for calculating the 90-day period for
purposes of paragraph (1) of subdivision (b), or the 180-day or
270-day period for purposes of subdivision (h), begins when the
facility has accumulated 100 kilograms of hazardous waste or one
kilogram of extremely hazardous waste or acutely hazardous waste.
However, if the facility generates more than 100 kilograms of
hazardous waste or one kilogram of extremely hazardous waste
or acutely hazardous waste during any calendar month, the time
period begins when any amount of hazardous waste first begins
to accumulate in that month.

(d) Notwithstanding paragraph (1) of subdivision (b), a generator
of hazardous waste that accumulates waste onsite is not a storage
facility if all of the following requirements are met:

(1) The generator accumulates a maximum of 55 gallons of
hazardous waste, one quart of acutely hazardous waste, or one
quart of extremely hazardous waste at an initial accumulation point
that is at or near the area where the waste is generated and that is
under the control of the operator of the process generating the
waste.

(2) The generator accumulates the waste in containers other
than tanks.

(3) The generator does not hold the hazardous waste onsite
without a hazardous waste facilities permit or other grant of
authorization for a period of time longer than the shorter of the
following time periods:

(A) One year from the initial date of accumulation.

(B) Ninety days, or if subdivision (h) is applicable, 180 or 270
days, from the date that the quantity limitation specified in
paragraph (1) is reached.

(4) The generator labels any container used for the accumulation
of hazardous waste with the initial date of accumulation and with
the words “hazardous waste” or other words that identify the
contents of the container.

(5) Within three days of reaching any applicable quantity
limitation specified in paragraph (1), the generator labels the
container holding the accumulated hazardous waste with the date
the quantity limitation was reached and either transports the waste
offsite or holds the waste onsite and complies with either the
regulations adopted by the department establishing requirements
for generators subject to the time limit specified in paragraph (1)
of subdivision (b) or the requirements specified in paragraph (1)
of subdivision (h), whichever requirements are applicable.

(6) The generator complies with regulations adopted by the
department pertaining to the use and management of containers
and any other regulations adopted by the department to implement
this subdivision.

(e) (1) Notwithstanding paragraphs (1) and (4) of subdivision
(b), hazardous waste held for remediation waste staging shall not
be considered to be held at a hazardous waste storage facility if
the total accumulation period is one year or less from the date of
the initial placing of hazardous waste by the generator at the staging
site for onsite remediation, except that the department may grant
one six-month extension, upon a showing of reasonable cause by
the generator.

(2) (A) The generator shall submit a notification of plans to
store and treat hazardous waste onsite pursuant to paragraph (2)
of subdivision (a), in person or by certified mail, with return receipt
requested, to the department and to one of the following:

(i) The CUPA, if the generator is under the jurisdiction of a
CUPA.

(ii) If the generator is not under the jurisdiction of a CUPA, the
notification shall be submitted to the agency authorized, pursuant
to subdivision (f) of Section 25404.3, to implement and enforce
the requirements of this chapter listed in paragraph (1) of
subdivision (c) of Section 25404.

(B) If, after the notification pursuant to subparagraph (A), or
during the initial year or the six-month extension granted by the
department, the generator determines that treatment cannot be
accomplished for all, or part of, the hazardous waste accumulated
in a remediation waste staging area, the generator shall immediately
notify the department and the appropriate local agency, pursuant
to subparagraph (A), that the treatment has been discontinued. The
generator shall then handle and dispose of the hazardous waste in
accordance with paragraph (4) of subdivision (b).

(C) A generator shall not hold hazardous waste for remediation
waste staging unless the generator can show, through laboratory
testing, bench scale testing, or other documentation, that soil held
for remediation waste staging is potentially treatable. Any fines
and penalties imposed for a violation of this subparagraph may be
imposed beginning with the 91st day that the hazardous waste was
initially accumulated.

(3) Once an onsite treatment operation is completed on
hazardous waste held pursuant to paragraph (1), the generator shall
inspect the staging area for contamination and remediate as
necessary.

(f) Notwithstanding any other provision of this chapter,
remediation waste staging and the holding of non-RCRA
contaminated soil for offsite transportation in accordance with
paragraph (4) of subdivision (b) shall not be considered to be
disposal or land disposal of hazardous waste.

(g) A generator who holds hazardous waste for remediation
waste staging pursuant to paragraph (2) of subdivision (a) or who
holds hazardous waste onsite for offsite transportation pursuant to
paragraph (4) of subdivision (b) shall maintain records onsite that
demonstrate compliance with this section related to storing
hazardous waste for remediation waste staging or related to holding
hazardous waste onsite for offsite transportation, as applicable.
The records maintained pursuant to this subdivision shall be
available for review by a public agency authorized pursuant to
Section 25180 or 25185.

(h) (1) Notwithstanding paragraph (1) of subdivision (b), a
generator of less than 1,000 kilograms of hazardous waste in any
calendar month who accumulates hazardous waste onsite for 180
days or less, or 270 days or less if the generator transports the
generator’s own waste, or offers the generator’s waste for
transportation, over a distance of 200 miles or more, for offsite
treatment, storage, or disposal, is not a storage facility if all of the
following apply:

(A) The quantity of hazardous waste accumulated onsite never
exceeds 6,000 kilograms.

(B) The generator complies with the requirements of
subdivisions (d), (e), and (f) of Section 262.34 of Title 40 of the
Code of Federal Regulations.

(C) The generator does not hold acutely hazardous waste or
extremely hazardous waste in an amount greater than one kilogram
for a time period longer than that specified in paragraph (1) of
subdivision (b).

(2) A generator meeting the requirements of paragraph (1) who
does not receive a copy of the manifest with the handwritten
signature of the owner or operator of the facility to which the
generator’s waste is submitted, within 60 days from the date that
the hazardous waste was accepted by the initial transporter, shall
submit to the department a legible copy of the manifest, with some
indication that the generator has not received confirmation of
delivery.

(i) The department may adopt regulations that set forth
additional restrictions and enforceable management standards that
protect human health and the environment and that apply to persons
holding hazardous waste at a transfer facility. A regulation adopted
pursuant to this subdivision shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation
of the public peace, health and safety, and general welfare, and
may be adopted as an emergency regulation in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code.

SEC. 2.  

Section 25150.6 of the Health and Safety Code is
repealed.

SEC. 3.  

Section 25150.65 is added to the Health and Safety
Code, to read:

25150.65.  

Any regulation that was adopted prior to January 1,
2008, pursuant to former Section 25150.6, exempting a hazardous
waste management activity from one or more of the requirements
of this chapter, shall remain valid unless repealed.

SEC. 4.  

Section 25196 of the Health and Safety Code is
amended to read:

25196.  

A person who knowingly violates a provision of
subdivision (a) of former Section 25221 as that section read on
January 1, 2012, and who violated that provision prior to the
effective date of Chapter 39 of the Statutes of 2012, or who
knowingly violates Section 25227, shall be subject to a civil penalty
not to exceed 25 percent of the fair market value of the land and
improvements, 25 percent of the sale price of the land and
improvements, or fifty thousand dollars ($50,000), whichever has
been established and is greatest.

SEC. 5.  

Section 25227 is added to the Health and Safety Code,
to read:

25227.  

A person shall not engage in any of the following on
land that is subject to a recorded land use restriction pursuant to
former Section 25229, 25230, or 25398.7, as those sections read
on January 1, 2012, or pursuant to Section 25202.5, 25221, or
25355.5, unless the person obtains a specific approval in writing
from the department for the land use on the land in question:

(a) A new use of the land, other than the use, modification, or
expansion of an existing industrial or manufacturing facility or
complex on land that is owned by, or held for the beneficial use
of, the facility or complex on or before January 1, 1981.

(b) Subdivision of the land, as that term is used in Division 2
(commencing with Section 66410) of Title 7 of the Government
Code, except that this subdivision does not prevent the division of
a parcel of land so as to divide that portion of the parcel that
contains hazardous materials, as defined in subdivision (d) of
Section 25260, from other portions of that parcel.

(c) Construction or placement of a building or structure on the
land that is intended for use as any of the following, or the new
use of an existing structure for the purpose of serving as any of
the following:

(1) (A) Except as provided in begin delete paragraph end delete begin insert subparagraph end insert (B), a
residence, including a mobilehome or factory built housing
constructed or installed for use as permanently occupied human
habitation.

(B) The addition of rooms or living space to an existing
single-family dwelling or other minor repairs or improvements to
residential property that do not change the use of the property,
increase the population density, or impair the effectiveness of a
response action, shall not constitute construction or placement of
a building or structure for the purposes of subparagraph (A).

(2) A hospital for humans.

(3) A school for persons under 21 years of age.

(4) A day care center for children.

(5) A permanently occupied human habitation, other than those
used for industrial purposes.

SEC. 6.  

Section 25299 of the Health and Safety Code is
amended to read:

25299.  

(a) An operator of an underground tank system shall
be liable for a civil penalty of not less than five hundred dollars
($500) or more than five thousand dollars ($5,000) for each
underground storage tank for each day of violation for any of the
following violations:

(1) Operating an underground tank system that has not been
issued a permit, in violation of this chapter.

(2) Violation of an applicable requirement of the permit issued
for the operation of the underground tank system.

(3) Failure to maintain records, as required by this chapter.

(4) Failure to report an unauthorized release, as required by
Sections 25294 and 25295.

(5) Failure to properly close an underground tank system, as
required by Section 25298.

(6) Violation of an applicable requirement of this chapter or
any regulation adopted by the board pursuant to Section 25299.3.

(7) Failure to permit inspection or to perform a monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.

(8) Making a false statement, representation, or certification in
an application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.

(9) Tampering with or otherwise disabling automatic leak
detection devices or alarms.

(b) An owner of an underground tank system shall be liable for
a civil penalty of not less than five hundred dollars ($500) or more
than five thousand dollars ($5,000) per day for each underground
storage tank, for each day of violation, for any of the following
violations:

(1) Failure to obtain a permit as specified by this chapter.

(2) Failure to repair or upgrade an underground tank system in
accordance with this chapter.

(3) Abandonment or improper closure of an underground tank
system subject to this chapter.

(4) Violation of an applicable requirement of the permit issued
for operation of the underground tank system.

(5) Violation of an applicable requirement of this chapter or a
regulation adopted by the board pursuant to Section 25299.3.

(6) Failure to permit inspection or to perform a monitoring,
testing, or reporting required pursuant to Section 25288 or 25289.

(7) Making a false statement, representation, or certification in
an application, record, report, or other document submitted or
required to be maintained pursuant to this chapter.

(c) A person who intentionally fails to notify the board, the
regional board, or the local agency when required to do so by this
chapter or who submits false information in a permit application,
amendment, or renewal, pursuant to Section 25286, is liable for a
civil penalty of not more than five thousand dollars ($5,000) for
each underground storage tank for which notification is not given
or false information is submitted.

(d) (1) A person who violates a corrective action requirement
established by, or issued pursuant to, Section 25296.10 is liable
for a civil penalty of not more than ten thousand dollars ($10,000)
for each underground storage tank for each day of violation.

(2) A civil penalty under this subdivision may be imposed in a
civil action under this chapter, or may be administratively imposed
by the board or a regional board pursuant to Article 2.5
(commencing with Section 13323) of Chapter 5 of Division 7 of
the Water Code.

(e) A person who violates Section 25292.3 is liable for a civil
penalty of not more than five thousand dollars ($5,000) for each
underground storage tank for each day of violation.

(f) (1) A person who falsifies any monitoring records required
by this chapter, or knowingly fails to report an unauthorized
release, shall, upon conviction, be punished by a fine of not less
than five thousand dollars ($5,000) or more than ten thousand
dollars ($10,000), by imprisonment in the county jail for not to
exceed one year, or by both that fine and imprisonment.

(2) A person who intentionally disables or tampers with an
automatic leak detection system in a manner that would prevent
the automatic leak detection system from detecting a leak or
alerting the owner or operator of the leak, shall, upon conviction,
be punished by a fine of not less than five thousand dollars ($5,000)
or more than ten thousand dollars ($10,000), by imprisonment in
the county jail for not more than one year, or by both the fine and
imprisonment.

(g) In determining both the civil and criminal penalties imposed
pursuant to this section, the board, a regional board, or the court,
as the case may be, shall consider all relevant circumstances,
including, but not limited to, the extent of harm or potential harm
caused by the violation, the nature of the violation and the period
of time over which it occurred, the frequency of past violations,
and the corrective action, if any, taken by the person who holds
the permit.

(h) (1) A civil penalty or criminal fine imposed pursuant to this
section for a separate violation shall be separate, and in addition
to, any other civil penalty or criminal fine imposed pursuant to
this section or any other provision of law, except that no civil
penalty shall be recovered under subdivision (d) for violations for
which a civil penalty is recovered pursuant to Section 13268 or
13350 of the Water Code. The penalty or fine shall be paid to the
unified program agency, the participating agency, or the state,
whichever is represented by the office of the city attorney, district
attorney, or Attorney General bringing the action.

(2) Any penalties or fines paid to a unified program agency or
a participating agency pursuant to paragraph (1) shall be deposited
into a special account and shall be expended only to fund the
activities of the unified program agency or participating agency
in enforcing the unified program, as specified in subdivision (c)
of Section 25404, within the jurisdiction of that agency pursuant
to the unified program specified in Chapter 6.11 (commencing
with Section 25404).

(3) All penalties or fines collected by the board or a regional
board or collected on behalf of the board or a regional board by
the Attorney General shall be deposited in the State Water Pollution
Cleanup and Abatement Account in the State Water Quality
Control Fund, and are available for expenditure by the board, upon
appropriation, pursuant to Section 13441 of the Water Code.

(i) Paragraph (9) of subdivision (a) does not prohibit the owner
or operator of an underground storage tank, or his or her designee,
from maintaining, repairing, or replacing automatic leak detection
devices or alarms associated with that tank.

SEC. 7.  

Section 25299.15 of the Health and Safety Code is
amended to read:

25299.15.  

“Environmental impairment liability insurance”
means liability insurance against liability for bodily injury, as
defined in Section 25299.12, and for property damage, as defined
in Section 25299.23, arising from an occurrence, as defined in
Section 25299.19.

SEC. 8.  

Section 25299.50 of the Health and Safety Code is
amended to read:

25299.50.  

(a) The Underground Storage Tank Cleanup Fund
is hereby created in the State Treasury. The money in the fund
may be expended by the board, upon appropriation by the
Legislature, for purposes of this chapter. From time to time, the
board may modify existing accounts or create accounts in the fund
or other funds administered by the board, which the board
determines are appropriate or necessary for proper administration
of this chapter.

(b) Except for funds transferred to the Drinking Water Treatment
and Research Fund created pursuant to subdivision (c) of Section
116367, all of the following amounts shall be deposited in the
fund:

(1) Money appropriated by the Legislature for deposit in the
fund.

(2) The fees, interest, and penalties collected pursuant to Article
5 (commencing with Section 25299.40).

(3) Notwithstanding Section 16475 of the Government Code,
any interest earned upon the money deposited in the fund.

(4) Any money recovered by the fund pursuant to Section
25299.70.

(5) Any civil penalties collected by the board or regional board
pursuant to Section 25299.76.

(6) Money recovered as compensation for expenditures
associated with investigations or enforcement pursuant to
subdivision (j) of Section 25299.51.

(7) Money recovered to correct a previously overpaid
expenditure issued pursuant to this chapter.

(c) Notwithstanding subdivision (a), any funds appropriated by
the Legislature in the annual Budget Act for payment of a claim
for the costs of a corrective action in response to an unauthorized
release, that are encumbered for expenditure for a corrective action
pursuant to a letter of credit issued by the board pursuant to
subdivision (e) of Section 25299.57, but are subsequently not
expended for that corrective action claim, may be reallocated by
the board for payment of other claims for corrective action pursuant
to Section 25299.57.

SEC. 9.  

Section 25299.50.2 of the Health and Safety Code is
amended to read:

25299.50.2.  

(a) The Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund is hereby established
in the State Treasury.

(b) (1) Except as provided in paragraph (2), the sum of ten
million dollars ($10,000,000) is hereby transferred, for each of the
2008-09, 2009-10, and 2010-11 fiscal years, from the
Underground Storage Tank Cleanup Fund to the Underground
Storage Tank Petroleum Contamination Orphan Site Cleanup Fund.

(2) Available federal moneys may be deposited in the
Underground Storage Tank Petroleum Contamination Orphan Site
Cleanup Fund. The amount transferred pursuant to paragraph (1)
in a fiscal year shall be reduced by the amount of federal moneys
deposited in the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund in that fiscal year.

(c) The board may expend the moneys in the Underground
Storage Tank Petroleum Contamination Orphan Site Cleanup Fund,
upon appropriation by the Legislature, for the costs of response
actions to remediate the harm caused by a petroleum contamination,
at a site that meets all of the following conditions:

(1) The site meets the conditions described in paragraph (2) of
subdivision (a) of Section 25395.20.

(2) The petroleum contamination is the principal source of
contamination at the site.

(3) The source of the petroleum contamination is, or was, an
underground storage tank.

(4) A financially responsible party has not been identified to
pay for remediation at the site.

(5) If the expenditure includes federal moneys deposited in the
Underground Storage Tank Petroleum Contamination Orphan Site
Cleanup Fund, the expenditure at the site is consistent with all
applicable requirements for expenditure of the federal moneys.

(d) Any funds in the Underground Storage Tank Petroleum
Contamination Orphan Site Cleanup Fund that are not expended
in the 2009-10, 2010-11, or 2011-12 fiscal years shall remain in
the Underground Storage Tank Petroleum Contamination Orphan
Site Cleanup Fund until they are encumbered.

(e) Notwithstanding Section 16304.1 of the Government Code,
a disbursement in liquidation of an encumbrance may be made
before or during the four years following the last day the
appropriation is available for encumbrance.

(f) A recipient of a grant that was awarded pursuant to former
Section 25299.50.2, as that section read on December 31, 2007,
and whose encumbrance under the grant was not liquidated within
the time period prescribed in Section 16304.1 of the Government
Code, may receive the undisbursed balance of the encumbrance
from the Underground Storage Tank Petroleum Contamination
Orphan Site Cleanup Fund consistent with the terms of the grant
until June 30, 2011.

SEC. 10.  

Section 25299.51 of the Health and Safety Code is
amended to read:

25299.51.  

The board may expend the moneys in the
Underground Storage Tank Cleanup Fund, created under
subdivision (a) of Section 25299.50, for all the following purposes:

(a) In addition to the purposes specified in subdivisions (c), (d),
and (e), for the costs of implementing this chapter and for
implementing Section 25296.10 for a tank that is subject to this
chapter.

(b) To pay for the administrative costs of the State Board of
Equalization in collecting the fee imposed by Article 5
(commencing with Section 25299.40).

(c) To pay for the reasonable and necessary costs of corrective
action pursuant to Section 25299.36, up to one million five hundred
thousand dollars ($1,500,000) per occurrence. The Legislature
may appropriate the money in the fund for expenditure by the
board, without regard to fiscal year, for prompt action in response
to any unauthorized release.

(d) To pay for the costs of an agreement for the abatement of,
and oversight of the abatement of, an unauthorized release of
hazardous substances from underground storage tanks, by a local
agency, as authorized by Section 25297.1 or by any other provision
of law, except that, for the purpose of expenditure of these funds,
only underground storage tanks, as defined in Section 25299.24,
shall be the subject of the agreement.

(e) To pay for the costs of cleanup and oversight of unauthorized
releases at abandoned tank sites. The board shall not expend more
than 25 percent of the total amount of money collected and
deposited in the fund annually for the purposes of this subdivision
and subdivision (h).

(f) To pay claims pursuant to Section 25299.57.

(g) To pay, upon order of the Controller, for refunds pursuant
to Part 26 (commencing with Section 50101) of Division 2 of the
Revenue and Taxation Code.

(h) To pay for the reasonable and necessary costs of corrective
action pursuant to subdivision (f) of Section 25296.10, in response
to an unauthorized release from an underground storage tank
subject to this chapter.

(i) To pay claims pursuant to Section 25299.58.

(j) To pay for expenditures by the board associated with
discovering violations of, and enforcing, or assisting in the
enforcement of, the requirements of Chapter 6.7 (commencing
with Section 25280) with regard to petroleum underground storage
tanks.

(k) For transfer to the Petroleum Underground Storage Tank
Financing Account, for purposes of Chapter 6.76 (commencing
with Section 25299.100).

(l) Upon repeal of Chapter 6.76 (commencing with Section
25299.100), to pay for expenditures authorized by subdivision (b)
of Section 25299.117, as that section reads on December 31, 2021,
immediately preceding its repeal.

SEC. 11.  

Section 25299.56 of the Health and Safety Code is
amended to read:

25299.56.  

(a) The board shall determine an applicant’s
eligibility for a claim for corrective action costs or third-party
compensation costs pursuant to Section 25299.57 or 25299.58 and
notify the applicant of that determination within 60 days from the
date of the receipt of the fund application. The board may classify
the claimant’s application pursuant to Section 25299.52 after that
60-day period. If the board sends an applicant a determination of
eligibility pursuant to this subdivision, the board shall not revoke
that determination of eligibility, unless the application contained
fraudulent information or a misrepresentation. However, the board
may suspend making a reimbursement for a claim until the claimant
corrects any deficiencies that are the basis for the suspension.
Reinstatement of reimbursement shall occur when funds are
available and that reinstatement shall be made ahead of any new
letters of commitment issued as of the date of reinstatement.

(b) A claimant may request review of any determination of
eligibility or disapproval of reimbursement. The review shall be
conducted and a decision rendered within 30 days from the date
of receipt of the request.

(c) A claimant may file a petition for review, in writing, with
the board with regard to any determination or disapproval that is
unresolved to the satisfaction of the claimant upon expiration of
the 30-day period specified in subdivision (b) and the board shall
take final action on the petition within 90 days of the board’s
receipt of a complete petition for review, except that if the board
initiates an adjudicative proceeding on the petition, the board shall
take final action within 270 days of the board’s receipt of a
complete petition for review.

(d) Final action on a petition taken by the board is a final agency
action for the purposes of judicial review of a board decision.

(e) A claimant may, not later than 30 days from the date of final
action by the board pursuant to subdivision (c), file with the
superior court a petition for writ of mandate for review of the
decision. If the claimant does not file a petition for writ of mandate
within the time provided by this subdivision, a board decision shall
not be subject to review by the court. Section 1094.5 of the Code
of Civil Procedure shall govern the proceeding for a petition filed
pursuant to this subdivision. For purposes of subdivision (c) of
Section 1094.5 of the Code of Civil Procedure, the court shall
uphold the decision if the decision is based upon substantial
evidence in light of the whole record.

(f) Except as specified in subdivision (g), the procedures in
Article 8 (commencing with Section 11435.05) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of, and in Section 11513 of, the
Government Code apply to any adjudicative proceedings conducted
by the board pursuant to this article.

(g) (1) Notwithstanding subdivision (f), Sections 801, 802, 803,
804, and 805 of the Evidence Code apply to any adjudicative
proceeding conducted by the board pursuant to this article.

(2) This section is not a limitation on the authority of the board
to authorize the use of the procedure provided in Article 10
(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code.

SEC. 12.  

Section 13176 of the Water Code is amended to read:

13176.  

(a) The analysis of any material required by this
division shall be performed by a laboratory that has accreditation
or certification pursuant to Article 3 (commencing with Section
100825) of Chapter 4 of Part 1 of Division 101 of the Health and
Safety Code. This requirement does not apply to field tests, such
as tests for color, odor, turbidity, pH, temperature, dissolved
oxygen, conductivity, and disinfectant residual.

(b) A person or public entity of the state shall not contract with
a laboratory for environmental analyses for which the State
Department of Public Health requires accreditation or certification
pursuant to this chapter, unless the laboratory holds a valid
certification or accreditation.

begin delete

SEC. 13.  

Section 13321 of the Water Code is amended to read:

13321.  

(a) In the case of a review by the state board under
Section 13320 or review by the state board of a decision or order
issued under authority delegated to an officer or employee of the
state board where the state board, by regulation, has authorized a
petition for reconsideration, the state board, upon notice and
hearing, if a hearing is requested, may stay in whole or in part the
effect of the decision or order of a regional board or of the state
board.

(b) (1) Within 30 days of any order of the state board issuing
or denying a stay, an aggrieved party may file with the superior
court a petition for writ of mandate. Except as otherwise provided
in this section, Section 1094.5 of the Code of Civil Procedure shall
govern proceedings concerning petitions filed under this section.

(2) If an aggrieved party files a petition of writ of mandate with
the superior court pursuant to paragraph (1), the superior court
shall uphold the order of the state board issuing or denying the
stay unless the order is arbitrary, capricious, or entirely lacking in
evidentiary support, or the state board failed to follow the
procedures or give the notices required by subdivision (a).

(c) If the state board or the superior court grants a stay under
this section, the stay may be made effective as of the effective date
of the regional board or state board decision or order.

(d) If a petition is filed with the superior court under Section
13330, any stay in effect at the time of the filing the petition shall
remain in effect by operation of law for a period of 20 days from
the date of the filing of that petition.

end delete

begin delete SEC. 14. end delete
begin insert SEC. 13. end insert   

Section 13395.5 of the Water Code is amended to
read:

13395.5.  

The state board may enter into contracts and other
agreements for the purpose of evaluating or demonstrating methods
for the removal, treatment, or stabilization of contaminated bottom
sediment. For the purpose of preparing health risk assessments
pursuant to Section 13393, the state board shall enter into contracts
or agreements with the Office of Environmental Health Hazard
Assessment, or with other state or local agencies, subject to the
approval of the Office of Environmental Health Hazard
Assessment. The costs incurred for work conducted by other state
agencies pursuant to this chapter shall be reimbursed according to
the terms of an interagency agreement between the state board and
the agency.

begin delete SEC. 15. end delete
begin insert SEC. 14. end insert   

Section 13550 of the Water Code is amended to read:

13550.  

(a) The Legislature hereby finds and declares that the
use of potable domestic water for nonpotable uses, including, but
not limited to, cemeteries, golf courses, parks, highway landscaped
areas, and industrial and irrigation uses, is a waste or an
unreasonable use of the water within the meaning of Section 2 of
Article X of the California Constitution if recycled water is
available which meets all of the following conditions, as
determined by the state board, after notice to any person or entity
who may be ordered to use recycled water or to cease using potable
water and a hearing held pursuant to Article 2 (commencing with
Section 648) of Chapter 1.5 of Division 3 of Title 23 of the
California Code of Regulations:

(1) The source of recycled water is of adequate quality for these
uses and is available for these uses. In determining adequate
quality, the state board shall consider all relevant factors, including,
but not limited to, food and employee safety, and level and types
of specific constituents in the recycled water affecting these uses,
on a user-by-user basis. In addition, the state board shall consider
the effect of the use of recycled water in lieu of potable water on
the generation of hazardous waste and on the quality of wastewater
discharges subject to regional, state, or federal permits.

(2) The recycled water may be furnished for these uses at a
reasonable cost to the user. In determining reasonable cost, the
state board shall consider all relevant factors, including, but not
limited to, the present and projected costs of supplying, delivering,
and treating potable domestic water for these uses and the present
and projected costs of supplying and delivering recycled water for
these uses, and shall find that the cost of supplying the treated
recycled water is comparable to, or less than, the cost of supplying
potable domestic water.

(3) After concurrence with the State Department of Public
Health, the use of recycled water from the proposed source will
not be detrimental to public health.

(4) The use of recycled water for these uses will not adversely
affect downstream water rights, will not degrade water quality,
and is determined not to be injurious to plantlife, fish, and wildlife.

(b) In making the determination pursuant to subdivision (a), the
state board shall consider the impact of the cost and quality of the
nonpotable water on each individual user.

(c) The state board may require a public agency or person
subject to this article to furnish information which the state board
determines to be relevant to making the determination required in
subdivision (a).

begin delete SEC. 16. end delete
begin insert SEC. 15. end insert   

Section 13552.8 of the Water Code is amended to
read:

13552.8.  

(a) Any public agency, including a state agency, city,
county, city and county, district, or any other political subdivision
of the state, may require the use of recycled water in floor trap
priming, cooling towers, and air-conditioning devices, if all of the
following requirements are met:

(1) Recycled water, for these uses, is available to the user and
meets the requirements set forth in Section 13550, as determined
by the state board after notice and a hearing.

(2) The use of recycled water does not cause any loss or
diminution of any existing water right.

(3) If public exposure to aerosols, mist, or spray may occur,
appropriate mist mitigation or mist control is provided, such as
the use of mist arrestors or the addition of biocides to the water in
accordance with criteria established pursuant to Section 13521.

(4) The person intending to use recycled water has prepared an
engineering report pursuant to Section 60323 of Title 22 of the
California Code of Regulations that includes plumbing design,
cross-connection control, and monitoring requirements for the
public agency, which are in compliance with criteria established
pursuant to Section 13521.

(b) This section applies to both of the following:

(1) New industrial facilities and subdivisions for which the
building permit is issued on or after March 15, 1994, or, if a
building permit is not required, new structures for which
construction begins on or after March 15, 1994, for which the State
Department of Public Health has approved the use of recycled
water.

(2) Any structure that is retrofitted to permit the use of recycled
water for floor traps, cooling towers, or air-conditioning devices,
for which the State Department of Public Health has approved the
use of recycled water.

(c) (1) Division 13 (commencing with Section 21000) of the
Public Resources Code does not apply to any project which only
involves the repiping, redesign, or use of recycled water for floor
trap priming, cooling towers, or air-conditioning devices necessary
to comply with a requirement prescribed by a public agency under
subdivision (a).

(2) The exemption in paragraph (1) does not apply to any project
to develop recycled water, to construct conveyance facilities for
recycled water, or any other project not specified in this
subdivision.

begin delete SEC. 17. end delete
begin insert SEC. 16. end insert   

Section 13553.1 of the Water Code is amended to
read:

13553.1.  

(a) The Legislature hereby finds and declares that
certain coastal areas of the state have been using sea water to flush
toilets and urinals as a means of conserving potable water; that
this practice precludes the beneficial reuse of treated wastewater
and has had a deleterious effect on the proper wastewater treatment
process, and has led to corrosion of the sea water distribution
pipelines and wastewater collection systems; and that this situation
must be changed.

(b) There is a need for a pilot program to demonstrate that
conversion to the use of recycled water in residential buildings for
toilet and urinal flushing does not pose a threat to public health
and safety.

(c) A city that is providing a separate distribution system for
sea water for use in flushing toilets and urinals in residential
structures may, by ordinance, authorize the use of recycled water
for the flushing of toilets and urinals in residential structures if the
level of treatment and the use of the recycled water meets the
criteria set by the State Department of Public Health.

begin delete SEC. 18. end delete
begin insert SEC. 17. end insert   

Section 13554 of the Water Code is amended to read:

13554.  

(a) Any public agency, including a state agency, city,
county, city and county, district, or any other political subdivision
of the state, may require the use of recycled water for toilet and
urinal flushing in structures, except a mental hospital or other
facility operated by a public agency for the treatment of persons
with mental disorders, if all of the following requirements are met:

(1) Recycled water, for these uses, is available to the user and
meets the requirements set forth in Section 13550, as determined
by the state board after notice and a hearing.

(2) The use of recycled water does not cause any loss or
diminution of any existing water right.

(3) The public agency has prepared an engineering report
pursuant to Section 60323 of Title 22 of the California Code of
Regulations that includes plumbing design, cross-connection
control, and monitoring requirements for the use site, which are
in compliance with criteria established pursuant to Section 13521.

(b) This section applies only to either of the following:

(1) New structures for which the building permit is issued on
or after March 15, 1992, or, if a building permit is not required,
new structures for which construction begins on or after March
15, 1992.

(2) Any construction pursuant to subdivision (a) for which the
State Department of Public Health has, prior to January 1, 1992,
approved the use of recycled water.

(c) Division 13 (commencing with Section 21000) of the Public
Resources Code does not apply to any project which only involves
the repiping, redesign, or use of recycled water by a structure
necessary to comply with a requirement issued by a public agency
under subdivision (a). This exemption does not apply to any project
to develop recycled water, to construct conveyance facilities for
recycled water, or any other project not specified in this
subdivision.

begin delete SEC. 19. end delete
begin insert SEC. 18. end insert   

Section 13554.2 of the Water Code is amended to
read:

13554.2.  

(a) Any person or entity proposing the use of recycled
water shall reimburse the State Department of Public Health for
reasonable costs that department actually incurs in performing
duties pursuant to this chapter.

(b) (1) Upon a request from the person or entity proposing the
use of recycled water, the State Department of Public Health shall,
within a reasonable time after the receipt of the request, provide
an estimate of the costs that it will reasonably incur in the
performance of its duties pursuant to this chapter.

(2) For purposes of implementing subdivision (a), that
department shall maintain a record of its costs. In determining
those costs, that department may consider costs that include, but
are not limited to, costs relating to personnel requirements,
materials, travel, and office overhead. The amount of
reimbursement shall be equal to, and may not exceed, that
department’s actual costs.

(c) With the consent of the person or entity proposing the use
of recycled water, the State Department of Public Health may
delegate all or part of the duties that department performs pursuant
to this chapter within a county to a local health agency authorized
by the board of supervisors to assume these duties, if, in the
judgment of that department, the local health agency can perform
these duties. Any person or entity proposing the use of recycled
water shall reimburse the local health agency for reasonable costs
that the local health agency actually incurs in the performance of
its duties delegated pursuant to this subdivision.

(d) (1) Upon a request from the person or entity proposing the
use of recycled water, the local health agency shall, within a
reasonable time after the receipt of the request, provide an estimate
of the cost it will reasonably incur in the performance of its duties
delegated under subdivision (c).

(2) The local health agency, if delegated duties pursuant to
subdivision (c), shall maintain a record of its costs that include,
but is not limited to, costs relating to personnel requirements,
materials, travel, and office overhead. The amount of
reimbursement shall be equal to, and may not exceed, the local
health agency’s actual costs.

(e) The State Department of Public Health or local health agency
shall complete its review of a proposed use of recycled water within
a reasonable period of time. That department shall submit to the
person or entity proposing the use of recycled water a written
determination as to whether the proposal submitted is complete
for purposes of review within 30 days from the date of receipt of
the proposal and shall approve or disapprove the proposed use
within 30 days from the date on which that department determines
that the proposal is complete.

(f) An invoice for reimbursement of services rendered shall be
submitted to the person or entity proposing the use of recycled
water subsequent to completion of review of the proposed use, or
other services rendered, that specifies the number of hours spent
by the State Department of Public Health or local health agency,
specific tasks performed, and other costs actually incurred.
Supporting documentation, including receipts, logs, timesheets,
and other standard accounting documents, shall be maintained by
that department or local health agency and copies, upon request,
shall be provided to the person or entity proposing the use of
recycled water.

(g) For the purposes of this section, “person or entity proposing
the use of recycled water” means the producer or distributor of
recycled water submitting a proposal to the department.

begin delete SEC. 20. end delete
begin insert SEC. 19. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.