Bill Text: CA SB883 | 2025-2026 | Regular Session | Amended
Bill Title: Reactive chemicals: facilities: methyl methacrylate.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Engrossed) 2026-07-02 - Read second time and amended. Re-referred to Com. on APPR. [SB883 Detail]
Download: California-2025-SB883-Amended.html
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Amended
IN
Assembly
July 02, 2026 |
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Amended
IN
Assembly
June 18, 2026 |
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Amended
IN
Senate
March 23, 2026 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 883
| Introduced by Senator Umberg (Coauthors: Assembly Members Bennett and Connolly) |
January 13, 2026 |
An act to add Section 65850.21 to the Government Code, to amend Section 25532 of, and to add Section 25404.7 to, the Health and Safety Code, and to add Section 17138.9 to the Revenue and Taxation Code, relating to hazardous materials.
LEGISLATIVE COUNSEL'S DIGEST
SB 883, as amended, Umberg.
Reactive chemicals: facilities: methyl methacrylate.
(1) Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires every county to apply to the secretary to be certified to implement the unified program, and authorizes a city or local agency that meets specified requirements to apply to the secretary to be certified to implement the unified program, as a certified unified program agency. Existing law authorizes a state or local agency that has a written agreement with a certified unified program agency, and is approved by the secretary, to implement or enforce one or more of the unified program elements as a participating agency. Existing law requires the certified unified program agency in each jurisdiction, in conjunction with participating agencies, to develop
and implement a single, unified inspection and enforcement program to ensure coordinated, efficient, and effective enforcement of the unified program and any local ordinance or regulation pertaining to the handling of hazardous waste or hazardous materials.
This bill would prohibit a city or county county, or city and county, from approving a building permit for a new reactive chemical storage facility facility, as defined, with the potential for an explosion
explosion, including, but not limited to, due to thermal runaway reaction reaction, that may cause injury or death death, unless the proposed facility has a backup cooling system or other contingency system approved by the unified program agency and is not adjacent to a home or other building that may contain people. The bill would require a city
council or county,
county board of supervisors, before approving a building permit for that purpose, to provide the public with notice and the opportunity to comment. If a city or county county, or city and county, approves a building permit for that purpose, the bill would require the city or county county, or city and county, to notify the Office of Emergency Services and the Office of Environmental Health Hazard Assessment. The bill would make the approval of a building permit for that purpose
a reactive chemical storage facility ineligible for a specified exemption from the California Environmental Quality Act. By imposing additional requirements on cities and counties, the bill would impose a state-mandated local program. The bill would provide that, if a thermal runaway reaction explosion occurs, an explosion, or threat of an explosion, occurs at a reactive chemical storage facility, the fire department or fire authority, as applicable, has primary jurisdiction to mitigate the crisis rather than the county health department. The bill would require the Office of Emergency Services to develop, post on its internet website, and update a map of reactive chemical storage facilities, as prescribed.
The bill would require the Office of Environmental Health Hazard Assessment to consider reactive chemical storage facilities as a factor in determining pollution burden as part of a specified health screening tool, commonly known as CalEnviroScreen, used to identify disadvantaged communities for various purposes under existing law.
This bill would require the certified unified program agency in each jurisdiction to routinely conduct an inspection of each reactive chemical storage facility in its jurisdiction no less than once annually. The bill would require the certified unified program agency to report the results of the inspection to the California Environmental Protection Agency, the Office of the State Fire Marshal, and the Office of Emergency Services. By imposing additional requirements on certified uniform program agencies, the bill would impose a state-mandated local program.
(2) Existing law
requires the California Environmental Protection Agency to obtain and maintain state delegation of, and to implement, the federal accidental release prevention program, with certain amendments specific to the state. Pursuant to these provisions, a stationary source, as defined, with a process that has a regulated substance present in more than a threshold quantity is required to prepare and submit to the United States Environmental Protection Agency and the unified program agency a risk management plan, unless the unified program agency makes a specified determination to exempt the stationary source from the program. Existing law imposes criminal penalties upon a stationary source that knowingly violates the requirements of the program.
This bill would expand the program’s definition of “regulated substance” to include methyl methacrylate. By adding an additional substance to the program, the bill would expand the scope of a crime and impose a state-mandated local
program. The bill would provide that a stationary source that stores or uses methyl methacrylate is not eligible for exemption from the program. Because the bill would make changes to provisions enforced by unified program agencies, the bill would impose a state-mandated local program.
(3) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill would, for taxable years beginning on or after January 1, 2026, exclude from gross income any amount received by a qualified taxpayer, as defined, in settlement for claims relating to the May 2026 chemical incident at the GKN Aerospace manufacturing facility.
(4) Existing law requires that
any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, contain, among other things, specific goals, purposes, and objectives that the tax expenditure or exemption will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(6) 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 with regard to certain mandates no reimbursement is required by this act for specified reasons.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 65850.21 is added to the Government Code, immediately following Section 65850.2, to read:65850.21.
(a) Unless all of the following conditions are satisfied, a city or(1) The proposed facility has a backup cooling system for the reactive chemical storage. storage or other contingency system approved by the unified program agency.
(2) The application for the building permit demonstrates that the proposed facility is not adjacent to a home or other building that may contain people such as a school or business.
(3) The city council or county board of supervisors provides the
public with notice and the opportunity to comment on the proposed facility.
(b) If an explosion explosion, or threat of an explosion, described in subdivision (a) occurs, the fire department or fire authority, as applicable, has primary jurisdiction to mitigate the crisis rather than the county health department.
(c) If a city or county county, or city and county, approves a building permit pursuant to subdivision (a), the city or county
county, or city and county, shall notify the Office of Emergency Services and the Office of Environmental Health Hazard Assessment.
(d) The approval of a building permit pursuant to subdivision (a)
for a reactive chemical storage facility is not eligible for the advanced manufacturing exemption from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) under paragraph (4) of subdivision (a) of Section 21080.69 of the Public Resources Code.
(e)The Office of Emergency Services shall, by January 1, 2028, develop and post on its internet website a map identifying all existing facilities described in subdivision (a) in the state and shall update the map when a new facility described in subdivision (a) is approved for a building permit.
(f)
(e) The Office of Environmental Health Hazard Assessment shall consider a facility described in subdivision (a) as a factor in determining pollution burden as part of the California Communities Environmental Health Screening, Screening Tool, also known as CalEnviroScreen, that is used to identify disadvantaged communities pursuant to Section 39711 of the Health and Safety Code.
(f) For purposes of this section, “reactive chemical storage facility” means a stationary
source, as defined in Section 25532 of the Health and Safety Code, that has a process involving a reactive substance.
SEC. 2.
Section 25404.7 is added to the Health and Safety Code, to read:25404.7.
(a) Notwithstanding Section 25537 or any other law, the certified unified program agency in each jurisdiction shall routinely conduct an inspection of each reactive chemical storage facility in its jurisdiction no less than once annually.(b) Following an inspection, the certified unified program agency shall report the results of the inspection to the California Environmental Protection Agency, the Office of the State Fire Marshal, and the Office of Emergency Services.
(c) For purposes of this section, “reactive chemical storage facility”
means a stationary source, as defined in Section 25532, that has a process involving a reactive substance.
SEC. 3.
Section 25532 of the Health and Safety Code is amended to read:25532.
Unless the context indicates otherwise, the following definitions govern the construction of this article:(a) “Accidental release” means an unanticipated emission of a regulated substance or other extremely hazardous substance into the ambient air from a stationary source.
(b) “Agency” means the California Environmental Protection Agency.
(c) “Covered process” means a process that has a regulated substance present in more than a threshold quantity.
(d) “Local implementing agency” means the entity that has been designated by
a local governing body to develop, implement, and maintain an integrated alerting and notification system, which may include a local law enforcement or fire agency, joint powers agency, authority, or entity, or other local agency.
(e) “Modified stationary source” means an addition or change to a stationary source that qualifies as a “major change,” as defined in Subpart A (commencing with Section 68.1) of Part 68 of Subchapter C of Chapter I of Title 40 of the Code of Federal Regulations. “Modified stationary source” does not include an increase in production up to the source’s existing operational capacity or an increase in production level, up to the production levels authorized in a permit granted pursuant to Section 42300.
(f) “Person” means an individual, trust, firm, joint stock company,
business concern, partnership, limited liability company, association, or corporation, including, but not limited to, a government corporation. “Person” also includes any city, county, city and county, district, commission, the state or any department, agency, or political subdivision thereof, any interstate body, and the federal government or any department or agency thereof to the extent permitted by law.
(g) “Process” means any activity involving a regulated substance, including any use, storage, manufacturing, handling, or onsite movement of the regulated substance or any combination of these activities. For purposes of this definition, any group of vessels that are interconnected, or separate vessels that are located so that a regulated substance could be involved in a potential release, shall be considered a single process.
(h) “Qualified person” means a person who is qualified to attest, at a minimum, to the completeness of an RMP.
(i) “Regulated substance” means a substance that is any of the following:
(1) A regulated substance listed in Section 68.130 of Title 40 of the Code of Federal Regulations pursuant to paragraph (3) of subsection (r) of Section 112 of the federal Clean Air Act (42 U.S.C. Sec. 7412(r)(3)).
(2) (A) An extremely hazardous substance listed in Appendix A of Part 355 (commencing with Section 355.1) of Subchapter J of Chapter I of Title 40 of the Code of Federal Regulations that is any of the following:
(i) A gas at standard temperature and pressure.
(ii) A liquid with a vapor pressure at standard temperature and pressure equal to or greater than 10 millimeters mercury.
(iii) A solid that is any of the following:
(I) In solution or in molten form.
(II) In powder form with a particle size less than 100 microns.
(III) Reactive with a National Fire Protection Association rating of 2, 3, or 4.
(iv) A substance that the Office of Environmental Health Hazard Assessment determines may pose a regulated substances accident risk pursuant to
subclause (II) of clause (i) of subparagraph (B) or pursuant to Section 25543.3.
(B) (i) The agency shall, in consultation with the Office of Environmental Health Hazard Assessment, determine which of the extremely hazardous substances listed in Appendix A of Part 355 (commencing with Section 355.1) of Subchapter J of Chapter I of Title 40 of the Code of Federal Regulations do either of the following:
(I) Meet one or more of the criteria specified in clause (i), (ii), or (iii) of subparagraph (A).
(II) May pose a regulated substances accident risk, in consideration of the factors specified in subdivision (g) of Section 25543.1, and, therefore, should remain on the list of regulated substances
until completion of the review conducted pursuant to subdivision (a) of Section 25543.3.
(ii) The agency shall adopt, by regulation, a list of the extremely hazardous substances identified pursuant to clause (i). Extremely hazardous substances placed on the list are regulated substances for purposes of this article.
(3) (A) Methyl methacrylate.
(B) A stationary source that stores or uses methyl methacrylate is not eligible for exemption from this article pursuant to Section 25534.
(j) “Regulated substances accident risk” means a potential for the accidental release of a regulated substance into the environment that could produce a
significant likelihood that persons exposed may suffer acute health effects resulting in significant injury or death.
(k) “RMP” means the risk management plan required under Part 68 (commencing with Section 68.1) of Subchapter C of Chapter I of Title 40 of the Code of Federal Regulations and by this article.
(l) “Special needs population” means individuals who may have additional response assistance needs before, during, and after an incident in functional areas, including, but not limited to, maintaining independence, communication, transportation, supervision, or medical care. Individuals in need of additional response assistance may include those who have disabilities, live in institutionalized settings, are elderly, are children, are from diverse cultures,
have limited English proficiency or are non-English speaking, or are transportation disadvantaged.
(m) “State threshold quantity” means the quantity of a regulated substance described in subparagraph (A) of paragraph (2) of subdivision (i), as adopted by the agency pursuant to Section 25543.1 or 25543.3. Until the agency adopts a state threshold quantity for a regulated substance, the state threshold quantity shall be the threshold planning quantity for the regulated substance specified in Appendix A of Part 355 (commencing with Section 355.1) of Subchapter J of Chapter I of Title 40 of the Code of Federal Regulations.
(n) “Stationary source” means any stationary source, as defined in Section 68.3 of Title 40 of the Code of Federal Regulations.
(o) “Threshold quantity” means the quantity of a regulated substance that is determined to be present at a stationary source in the manner specified in Section 68.115 of Title 40 of the Code of Federal Regulations and that is the lesser of either of the following:
(1) The threshold quantity for the regulated substance specified in Section 68.130 of Title 40 of the Code of Federal Regulations.
(2) The state threshold quantity.
(p) “Transient population” means individuals in a location in which they do not normally reside, including, but not limited to, train stations, office buildings, shopping malls, and colleges, and individuals who are homeless.
(q) “Unified program agency” has the same meaning as specified in Section 25501.
SEC. 4.
Section 17138.9 is added to the Revenue and Taxation Code, to read:17138.9.
(a) For taxable years beginning on or after January 1, 2026, gross income does not include any qualified amount received by a qualified taxpayer.(b) For purposes of complying with Section 41, the Legislature finds and declares that the goal of the tax expenditure allowed pursuant to this section is to assist those who were forcibly evacuated due to the GKN Aerospace manufacturing facility chemical incident in May 2026. The purpose and objective is to adequately and economically compensate the victims, which cannot be achieved if they pay taxes on the money paid back to them through settlement. The performance indicator of the success of the tax expenditure is
whether the taxpayers who receive this settlement are exempted from gross income tax.
(c) (1) The Franchise Tax Board shall, unless there was no exemption in the prior calendar year, annually deliver to the Legislature a written report that includes both of the following for the prior calendar year:
(A) The number of taxpayers that excluded settlement amounts from gross income as a result of the tax expenditure allowed pursuant to this section.
(B) The aggregate amount of those settlement payments excluded from gross income arising out of the May 2026 chemical leak at the GKN Aerospace manufacturing facility.
(2) The report required by
this subdivision shall be delivered to the Legislature pursuant to Section 9795 of the Government Code.
(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2, and any taxpayer information shall be in an aggregate and anonymized form.
(d) The settlement entity shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
(e) For purposes of this section, the following definitions apply:
(1) “Qualified amount” means any amount received in settlement
for claims relating to the May 2026 chemical incident at the GKN Aerospace manufacturing facility.
(2) “Qualified taxpayer” means any of the following:
(A) A taxpayer who owned real property located in the County of Orange during the May 2026 chemical incident at the GKN Aerospace manufacturing facility who paid or incurred expenses and received amounts from a settlement arising out of the May 2026 chemical incident at the GKN Aerospace manufacturing facility.
(B) A taxpayer who resided in the County of Orange during the May 2026 chemical incident at the GKN Aerospace manufacturing facility who paid or incurred expenses and received amounts from a settlement arising out of the May 2026 chemical incident at the GKN
Aerospace manufacturing facility.
(C) A taxpayer who had a place of business in the County of Orange during the May 2026 chemical incident at the GKN Aerospace manufacturing facility who paid or incurred expenses and received amounts from a settlement arising out of the May 2026 chemical incident at the GKN Aerospace manufacturing facility.
(3) “Settlement entity” means the entity deemed responsible or its subsidiary that is making the settlement payment to a qualified taxpayer.
SEC. 5.
The Legislature finds and declares that due to the extreme risk to persons and property from explosions at reactive chemical storage facilities, including, but not limited to, due to thermal runaway chemicalSEC. 6.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
