Amended  IN  Senate  February 16, 2022
Amended  IN  Senate  June 25, 2021
Amended  IN  Assembly  February 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 158


Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Chiu, Cooper, Frazier, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)

January 08, 2021


An act to amend, repeal, and add Section 6103.10 of the Government Code, to amend Sections 25144.6, 25150.84, 25178.1, 25200, 25200.2, 25200.3, 25201.4.1, 25201.5, 25201.6, 25204.7, 25205, and 25205.21 of, to amend, renumber, and add Section 25110.3 of, to amend and repeal Sections 25174.1, 25174.2, 25174.6, 25174.7, 25205.3, 25205.4, 25205.12, 25205.14, 25205.15, and 25218.6 of, to amend, repeal, and add Sections 25160, 25173.6, 25174, 25175, 25205.2, 25205.5, 25205.5.1, 25205.6, 25205.16, 25205.22, 25207.12, 25250.24, and 25404.5 of, to add Sections 25174.01, 25174.02, 25174.8, 25187.3, 25200.05, 25200.25, 25200.27, 25205.2.1, 25205.5.01, 25205.6.1, 25246.1, 25246.2, and 25355.3 to, to add Article 2.1 (commencing with Section 25125) to Chapter 6.5 of Division 20 of, to repeal Sections 25135.1, 25135.2, 25135.3, 25135.4, 25135.5, 25135.6, 25135.7, 25135.7.5, 25135.8, 25135.9, 25174.11, 25205.9, and 25205.20 of, and to repeal and add Section 25135 of, the Health and Safety Code, and to amend Sections 43053, 43054, 43101, 43152, 43152.8, 43152.9, and 43160 of, to amend and repeal Sections 43051, 43151, 43152.12, and 43152.15 of, to amend, repeal, and add Sections 43002.3, 43012, 43152.6, and 43152.7 of, and to repeal Sections 43005.5, 43055, 43152.11, 43152.16, and 43153 of, the Revenue and Taxation Code, relating to hazardous waste, and making an appropriation therefor, to take effect immediately, bill related to the budget. An act relating to the Budget Act of 2022.


LEGISLATIVE COUNSEL'S DIGEST


AB 158, as amended, Committee on Budget. Hazardous waste. Budget Act of 2022.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2022.

(1)The hazardous waste control laws require the Department of Toxic Substances Control to regulate the handling and management of hazardous waste and hazardous materials. A violation of the hazardous waste control laws is a crime.

This bill would establish the Board of Environmental Safety in the department, consisting of 5 members, with 3 members appointed by the Governor subject to confirmation by the Senate, one member appointed by the Senate Committee on Rules, and one member appointed by the Speaker of the Assembly. The bill would require the board to perform certain activities, including setting of fees related to the handling of hazardous substances and hazardous waste, hearing appeals of the hazardous waste facility permitting decisions, and conducting a specified analysis. The bill would establish an office of the ombudsperson in the board to receive complaints and suggestions from the public, to evaluate complaints received, to report findings and make recommendations to the Director of Toxic Substances Control and the board, and to render assistance to the public. The bill would require the director and the chairperson of the board to, when requested, but no less than annually, appear before the appropriate policy committees in the Assembly and Senate to provide an update on the department’s performance, as provided.

(2)Existing law requires a person who disposes of hazardous waste in this state to pay a disposal fee for the disposal of hazardous waste to land, based on the type of waste placed in the disposal site. Existing law imposes, except for certain specified exceptions, a manifest fee for each California Hazardous Waste Manifest form or electronic equivalent used by a person. Existing law authorizes the Department of Toxic Substances Control to impose an annual verification fee on certain generators, transporters, and facility operators that possess a valid identification number issued by the Department of Toxic Substances Control or by the United States Environmental Protection Agency.

This bill would make the provisions establishing the disposal fee, manifest fee, and verification fee inoperative on January 1, 2022, or July 1, 2022, as applicable.

(3)Existing law requires specified money to be deposited in the Hazardous Waste Control Account, including money from the disposal fee, generator fee, facility fee, and manifest fee, from specified fees for the oversight of corrective action, and from the federal government pursuant to the federal Resource Conservation and Recovery Act of 1976. Existing law authorizes funds deposited in the account to be expended, upon appropriation by the Legislature, for specified purposes, including for the administration and implementation of the hazardous waste control laws, including, but not limited to, for programs regulating specific products, including, among others, metal-containing jewelry, lead wheel weights, and consumer products.

This bill, on January 1, 2022, would revise those provisions to require the generation and handling fee to be deposited in the account, as discussed in paragraph (4), and to authorize other money to be deposited in the account only if that money is for costs at sites that are not operated by authorized hazardous waste facilities, as provided. The bill would revise the purposes for which money may be expended from the account and would prohibit expenditure from the account for hazardous waste regulatory activities at sites operated by an authorized hazardous waste facility and for other specified programs regulating specific products under the hazardous waste control laws. The bill would additionally authorize expenditure from the account to the Department of Toxic Substances Control for costs incurred by the Board of Environmental Safety, as provided. The bill would make other conforming changes.

This bill, on July 1, 2022, would establish the Hazardous Waste Facilities Account in the Hazardous Waste Control Account, to be administered by the Director of Toxic Substances Control. The bill would require specified money for costs at sites operated by authorized hazardous waste facilities to be deposited in the Hazardous Waste Facilities Account, as provided. The bill would authorize expenditure from the Hazardous Waste Facilities Account, upon appropriation by the Legislature, for specified purposes relating to hazardous waste regulatory activities at sites operated by an authorized hazardous waste facility or related to the owner or operator of an authorized hazardous waste facility, as provided.

(4)Existing law requires a generator of hazardous waste who generated 5 or more tons of hazardous waste in the prior calendar year to pay a generator fee, pursuant to a tiered payment structure, based on a specified base rate. Existing law authorizes the California Department of Tax and Fee Administration to annually adjust the base rate to reflect the increase or decrease in the cost of living, as provided. Existing law provides certain exemptions to the generator fee. Existing law requires the generator fee to be deposited in the Hazardous Waste Control Account. Existing law requires the California Department of Tax and Fee Administration, upon appropriation by the Legislature, to pay refunds to generators from surplus funds in the Hazardous Waste Control Account, as provided.

This bill, on January 1, 2022, would repeal the generator fee and would instead require a generator to pay to the California Department of Tax and Fee Administration a generation and handling fee of $49.25 for each ton or fraction of a ton of hazardous waste generated, except as specified. The bill would require the Board of Environmental Safety to establish by regulation a schedule of rates for the generation and handling fee to be applicable commencing July 1, 2023, and would authorize the board to adjust that schedule no more frequently than annually, subject to specified requirements, but not to exceed a specified amount. The bill would require the generation and handling fee to be deposited in the Hazardous Waste Control Account. The bill would not extend certain generator fee exemptions to the generation and handling fee. The bill would repeal the provision requiring the California Department of Tax and Fee Administration to provide refunds to generators from surplus funds in the Hazardous Waste Control Account. Because the failure to pay the generation and handling fee would be a crime, the bill would impose a state-mandated local program.

(5)Existing law requires an operator of a hazardous waste facility to pay a facility fee for each reporting period, or any portion of a reporting period, to the California Department of Tax and Fee Administration based on the size and type of the facility. Existing law sets the amount of the facility fee in a flat amount for facilities with a postclosure permit or a standardized permit and sets the facility fee for all other facilities pursuant to a tiered payment structure, based on a specified base rate. Existing law requires the California Department of Tax and Fee Administration to annually adjust the base rate to reflect the increase or decrease in the cost of living, as provided. Existing law provides certain exemptions to the facility fee, including, among others, for household hazardous waste collection facilities and facilities operated by a local government agency. Existing law requires the facility fee to be deposited in the Hazardous Waste Control Account.

This bill, on July 1, 2022, would increase the base rate and revise the tiered payment structure for the facility fee, as provided. The bill would require the Board of Environmental Safety to establish by regulation a schedule of rates for the facility fee to be applicable commencing July 1, 2023, and would authorize the board to adjust that schedule no more frequently than annually, subject to specified requirements, but not to exceed specified amounts. The bill would make those exemptions to the facility fees inoperative on July 1, 2022. The bill would require the facility fee to be deposited in the Hazardous Waste Facilities Account, instead of the Hazardous Waste Control Account.

(6)Existing law establishes the Toxic Substances Control Account in the General Fund and requires that specified funds be deposited in that account, including the charge imposed on organizations that use, generate, store, or conduct activities in this state related to hazardous materials, and penalties imposed pursuant to the hazardous waste control laws or the Carpenter-Presley-Tanner Hazardous Substance Account Act. Existing law authorizes the appropriation of funds from the Toxic Substances Control Account to the Department of Toxic Substances Control for specified purposes, including, among other things, site remediation and response costs. Existing law, known as the green chemistry program, requires the Department of Toxic Substances Control to adopt regulations to establish a process to identify and prioritize chemicals or chemical ingredients in consumer products that may be considered as being chemicals of concern.

This bill would authorize the appropriation of funds from the Toxic Substances Control Account for the green chemistry program and for costs incurred by the Board of Environmental Safety in the administration and implementation of its duties. The bill, on January 1, 2022, would additionally authorize the appropriation of funds from the Toxic Substances Control Account for certain programs under the hazardous waste control laws that regulate specific products, including, among others, metal-containing jewelry and lead wheel weights.

(7)Existing law requires the Department of Toxic Substances Control to provide the California Department of Tax and Fee Administration with a schedule of codes identifying the types of organizations that use, generate, store, or conduct activities in the state related to hazardous materials. Existing law requires each organization type identified in the schedule to pay an annual tax at a specified amount based on the number of employees at the organization, which is deposited in the Toxic Substances Control Account. Existing law requires the California Department of Tax and Fee Administration to annually adjust those amounts to reflect the increase or decrease in the cost of living, as provided.

This bill would increase the amount of that tax and would require the schedule of rates for the tax on and after July 1, 2023, to be established by regulation by the Board of Environmental Safety no more frequently than annually, subject to specified requirements, but not to exceed specified amounts.

(8)Existing law requires the Department of Toxic Substances Control to prepare and adopt a state hazardous waste management plan with certain elements, to be reviewed annually and revised at least every 3 years. Existing law requires the state hazardous waste plan to be prepared in conjunction with, and to take into account, hazardous waste management plans adopted by counties and regional councils of governments.

This bill would repeal these provisions and instead require the Department of Toxic Substances Control, by March 1, 2023, and every 3 years thereafter, to prepare, and post on its internet website, a report that includes an analysis of available data related to hazardous waste that includes specified components. The bill would require the Department of Toxic Substances Control, by March 1, 2025, and every 3 years thereafter, to prepare a state hazardous waste management plan based on the report, to be presented to the Board of Environmental Safety for approval. The bill would require the state hazardous waste management plan to include a baseline of the amount and types of hazardous waste generated and disposed of in the state, among other components. The bill would authorize the department, with approval from the Department of Finance, to enter into necessary contracts to procure subject matter expertise or other technical assistance to implement these requirements.

(9)Existing law requires the Department of Toxic Substances Control to, among other things, issue hazardous waste facilities permits to facilities handling hazardous waste. Existing law mandates that any hazardous waste facilities permit issued by the department, including a standardized permit, shall be for a fixed term, which shall not exceed 10 years for any land disposal facility, storage facility, incinerator, or other treatment facility. Existing law requires an owner or operator of a hazardous waste facility intending to extend the term of a hazardous waste facilities permit to submit a complete Part A application for a hazardous waste facilities permit renewal and, at any time following submittal of the Part A application, a complete Part B application and any other information requested by the department. Existing law provides that when a complete Part A application, and any other information requested by the department, has been submitted to the department prior to the end of the hazardous waste facilities permit’s fixed term, the hazardous waste facilities permit is deemed extended until the department approves or denies the hazardous waste facilities permit renewal application and the owner or operator of the hazardous waste facility has exhausted all applicable rights of appeal.

This bill would mandate that a hazardous waste facilities permit, including a standardized permit, shall be for a fixed term, not to exceed 10 years, regardless of the type of hazardous waste facility. The bill would provide for the extension of an existing hazardous waste facilities permit or standardized permit if certain criteria are met, including, but not limited to, that the owner or operator of the hazardous waste facility submits a Part A and Part B application for renewal of the permit prior to the expiration of the permit and the Part A and Part B application is deemed complete, as provided. The bill would provide that, upon meeting these criteria, a hazardous waste facilities permit or standardized permit is deemed extended until the department approves the renewal application and a new permit is effective or the department denies the permit renewal application and all parties have exhausted all applicable rights of appeal.

This bill would require an owner or operator of a hazardous waste facility with a hazardous waste facilities permit or standardized permit that expires before January 1, 2025, seeking to renew the permit to submit a Part A and Part B application to the department at least 180 days before the end of the permit’s fixed term. The bill would require the department to post on its internet website the estimated date for a permit decision, and issue a permit decision within three years of the effective date of these provisions or within three years after the end of the permit’s fixed term, whichever is later. The bill would require an owner or operator of a hazardous waste facility with a hazardous waste facilities permit or standardized permit that expires on or after January 1, 2025, seeking to renew the permit to submit a Part A and Part B application at least two years before the end of the permit’s fixed term. The bill would require the department to post on its internet website the estimated date for a permit decision, and issue a permit decision within one year after the end of the permit’s fixed term.

This bill would require the department, within 90 days after receiving an application for a hazardous waste facilities permit, including a standardized permit, to post on its internet website a timeline with the estimated dates of key milestones in the hazardous waste facilities permit application review process, as specified. The bill would require the department, in the event that it fails to make a timely hazardous waste facilities permit decision, to issue a public report that includes the reasons why the final hazardous waste facilities permit was not made on time and a proposed schedule for issuing the final hazardous waste facilities permit decision, among other information. The bill would require the department, after issuing the report, to request, among other things, that the board schedule a hearing for the department to present the report and a proposed schedule for issuing the final hazardous waste facilities permit decision.

(10)Existing law generally prohibits the Department of Toxic Substances Control from issuing or renewing a permit to operate a hazardous waste facility unless the owner or operator of the hazardous waste facility establishes and maintains financial assurances, as required. Existing law requires the department to adopt standards and regulations that, among other things, specify the financial assurances to be provided by an owner or operator of a hazardous waste facility, including those facilities required to obtain a permit under the federal Resource Conservation and Recovery Act.

This bill would prohibit the department from issuing or renewing a permit to operate a hazardous waste facility unless the owner or operator of the facility establishes and maintains financial assurances, as specified, including, but not limited to, financial assurances for the costs of corrective action, closure, and postclosure. The bill would require the department to review, at least every 5 years, the financial assurances required to operate a permitted hazardous waste facility and the cost estimates used to establish the amount of financial assurances required. The bill would require the department to notify the owner or operator if the department finds that the cost estimates forming the basis for the financial assurances for the facility are inadequate for any reason. The bill would require the owner or operator, in response, to provide to the department for review and approval an updated cost estimate and establish financial assurance mechanisms for the approved revised cost estimate amounts, as provided.

(11)Existing law requires the Department of Toxic Substances Control, and any permit issued by the department, to require corrective action for all releases of hazardous waste or hazardous waste constituents from a solid waste management unit or a hazardous waste management unit at a facility engaged in hazardous waste management, as defined, regardless of when the release occurred. Existing law authorizes the department to issue an order or enter into an enforceable agreement requiring corrective action whenever it determines that there is or has been a release of hazardous waste or hazardous waste constituents into the environment from a hazardous waste facility or to address the threat of release or releases of hazardous substances into the environment.

This bill would require the department to request, and an owner or operator of a facility or a respondent or proponent required to conduct corrective action at a facility from which releases that necessitate corrective action have occurred to submit to the department for review and approval, as provided, a written cost estimate for corrective action if specified criteria are met. The bill would require the department to provide a written notice of deficiency if the department determines that the corrective action cost estimate is substantially incomplete or includes substantially unsatisfactory information. The bill would require the owner or operator or a respondent or proponent required to conduct corrective action under department oversight at a facility to submit a revised corrective action cost estimate to the department for review and approval, and to fund the corrective action cost estimate or enter into a schedule of compliance for assurances of financial responsibility for completing the corrective action. The bill would specify the allowable financial assurance mechanisms, if required. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program.

This bill would require an owner or operator of a facility for which corrective action under department oversight is required to include a corrective action cost estimate in any corrective measures study submitted to the department pursuant to a specified order or agreement. The bill would require the owner or operator to demonstrate financial assurances as provided by specified existing law, but would authorize the department to approve an alternative financial assurance mechanism, as provided. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program.

This bill would require the department to ensure that a responsible party who is required to undertake corrective action obligations pursuant to a department determination demonstrates and maintains financial assurances, as specified. The bill would require the responsible party to demonstrate financial assurances as provided by specified existing law, but would authorize the department to approve an alternative financial assurance mechanism, as provided. The bill would provide that the department’s duties to implement these provisions are contingent upon an appropriation by the Legislature for these purposes.

(12)This bill would appropriate to the Department of Toxic Substances Control the total sum of $822,400,000 from the General Fund and the Toxic Substances Control Account, with $500,000,000 of that total amount appropriated from the General Fund for allocation over the 2021–22, 2022–23, and 2023–24 fiscal years, as prescribed, for, among other things, the discovery, cleanup, and investigation of contaminated properties, a grant program to fund response actions at brownfield sites, and a job and development training program to promote public health and community engagement, promote equity and environmental justice, and support the local economy. The bill would transfer the remaining $322,400,000 of that total amount as a loan from the General Fund to the Toxic Substances Control Account and would appropriate those funds from the account for allocation over the 2021–22, 2022–23, and 2023–24 fiscal years, as prescribed, for activities, including job training activities, related to the cleanup and investigation of properties contaminated with lead in the communities surrounding the former Exide Technologies facility in the City of Vernon. The bill would require funds recovered from potentially responsible parties for the former Exide Technologies facility to be used to repay those loans and would authorize forgiveness of the remaining loan balance under certain circumstances. The bill would require the Board of Environmental Safety to annually conduct an analysis of the expenditure of the appropriated General Fund moneys until the funds have been entirely liquidated.

(13)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.

(14)This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

(15)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YESNO   Local Program: YESNO  

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


SECTION 1.

 It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2022.