BILL ANALYSIS SB 1291 Page 1 Date of Hearing: August 21, 1995 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Bernie Richter, Chair SB 1291 (Wright) - As Amended: July 7, 1995 SUBJECT Hazardous Waste: facility permits; tiered permitting; household hazardous waste collection facilities DIGEST 2/3 vote required. This bill impacts a number of code sections and major programs within the generic cover area of "toxic and hazardous substances." The length of the measure and the number of areas covered gives the impression that this is a complicated and far-reaching measure. In reality, this measure, although complex, is carefully crafted and very straight-forward (contrary to the programs themselves). This bill is designed to facilitate the Department of Toxic Substances Control's (DTSC) Regulatory Structure Update (RSU) program. The bill augments and clarifies the tiered permitting program established by AB 1772 (Polanco) Chapter 1345, Statutes of 1992, as well as other aspects of the non-RCRA program. Existing law: 1) The Resource Conservation and Recovery Act (RCRA), enacted in 1976 as an amendment to the Solid Waste Disposal Act, is the primary federal statute regulating solid waste. Subtitle (C) of RCRA established the nation's basic hazardous waste management program. Under RCRA, persons which generate, transport, treat, store or dispose of hazardous waste are subject to a number of regulatory requirements. The California Department of Toxic Substances Control (DTSC) has been authorized by the US Environmental Protection Agency (EPA) to be the lead agency for enforcing the provisions of RCRA. As an authorized state, SB 1291 Page 2 California's regulations must be consistent with, and at least as strict as, the federal regulations. 2) The Hazardous Waste Control Act, Chapter 6.5 of Health and Safety Code (HSC), requires any person who stores, treats or disposes of hazardous waste in excess of specified limits to obtain a hazardous waste facility permit from the DTSC. Imposes a complex system of fees and a labyrinthine set of regulations on persons who generate, store, treat, dispose of or otherwise manage hazardous waste. Requires the DTSC to adopt regulations that specify the criteria that identify wastes which are hazardous wastes and to adopt a list of wastes that have been determined to be hazardous. Requires the DTSC to adopt analytic tests which must be used to determine when a waste is a hazardous waste. Because DTSC has adopted tests which are, in some instances, more stringent than the equivalent federal tests, more types of wastes meet the definition of hazardous waste in California than meet the federal definition. The result is that two classes of hazardous waste have been created: a) RCRA hazardous wastes regulated by both federal and state programs, and b) non-RCRA hazardous wastes regulated only by the state program. Wastes in this category include most of the wastes subject to the "Household Hazardous Waste program." Requires DTSC to adopt standards and regulations which specify the financial assurances required to be provided by the owner or operator of a hazardous waste facility for responding to third-party damage claims and for the costs of closure and subsequent maintenance. Defines recyclable and recycled material and hazardous waste recycling. Specifies, among other things, that specified recyclable materials, unless granted a variance, are subject to the requirements of the hazardous waste management program. 3) The Wright-Polanco-Lempert Hazardous Waste Treatment Reform Act of 1992 established the "tiered permitting" system which is applicable to facilities that treat only nonRCRA and/or non-regulated RCRA waste. The tiered permitting system consists of four levels of regulation that SB 1291 Page 3 establish increasingly more stringent operating requirements and impose significantly more costly permitting regimes. The tiers in ascending order of complexity and associated costs are: a) Conditionally exempt. This tier is applicable to small volume treatment operations (less than 500 pounds or 55 gallons per month) and very low hazard treatment activities such as silver recovery from developing solutions, drum recycling, spent resin mixing and neutralization of food processing wastes. Persons treating hazardous wastes under this tier are regulated basically like hazardous waste generators; however, they must notify DTSC of their treatment activities and pay an annual fee to the department. b) Conditionally authorized. This tier covers a wide variety of treatment operations. In general, if a waste solution meets specific concentrations limits and acidic content (pH) limits, and the treatment operation also meets specified volume limits it falls into this tier. Treatment operations may be used only for on-site wastes, must be carried out in tanks and containers and must meet a number of specified conditions. The facility is subject to inspections and must conduct an environmental assessment, and must carry out corrective action if contamination is found on the site. c) Permit-by-rule. All on-site treatment activity of nonRCRA waste that cannot otherwise be classified in the two lower tiers fall under permit-by-rule. Regulatory requirements applicable to this tier are similar to those that apply to treatment in the conditionally authorized tier; HOWEVER, the owner/operators must also provide certification by a professional consultant that the secondary containment, closure plan and corrective action requirements are being met. d) Standardized permit. This tier applies to commercial off-site facilities that treat nonRCRA wastes sent to them by hazardous waste generators. The standardized permit is similar and as costly to obtain as a regular hazardous waste facilities permit issued by DTSC under the hazardous waste management program. Exempts until December 31, 1994, a facility or transportable treatment unit operating pursuant to permit-by-rule from standards and regulations which specify the financial assurances required to be provided by the owner or operator of a hazardous waste facility for responding to SB 1291 Page 4 third-party damage claims and for the costs of closure and subsequent maintenance (except as specified) until January 1, 1995. A conditionally authorized generator is exempt, until December 31, 1994, from those standards. 4) SB 1082 (Calderon), Chapter 418, Statutes of 1993, created the Unified Hazardous Waste and Hazardous Materials Management Regulatory Program. This program requires the Secretary for Environmental Protection to implement this program in accordance with prescribed procedures and requirements. The program is commonly referred to as the "Certified Unified Program Agency" or CUPA. a) Requires every county to apply to the secretary to be certified to implement the unified program. b) Permits a local agency which meets specified requirements to apply to the secretary to implement the unified program. c) Requires the CUPA in each jurisdiction to, among other things, develop and implement a program which consolidates all permits or other grants of authorization to the maximum extent feasible within statutory constraints to consolidate, coordinate and make consistent any local or regional regulations, ordinances, requirements or guidance documents with the provisions of the Hazardous Waste Management Act and program. d) Permits a CUPA to incorporate as part of the unified program within its jurisdiction the implementation and enforcement of "law" which the agency is authorized to implement and enforce other than those specified in this program. 5) The California Integrated Waste Management Act requires local governments to prepare county-wide integrated waste management plans to handle and dispose of the solid waste generated in their respective counties. Each county-wide plan must include, among other things, a program for the safe collection, recycling, treatment and disposal of hazardous waste that would otherwise be placed in the municipal solid waste stream by homeowners. To meet the requirements of the household hazardous waste elements in solid waste plans, cities and counties may use any of a variety of methods for collecting household hazardous waste and keeping it out of the main solid waste stream. Among these are permanent household hazardous waste SB 1291 Page 5 collection centers, curbside, door-to-door and residential pickup services, centers for the collection of specified types of recyclable materials (latex paints, used oil, batteries, etc.) and mobile and temporary household hazardous waste collection facilities. Curbside, door-to-door and residential pickup service vehicles are authorized to haul the household hazardous wastes to a household hazardous waste collection center. The vehicles are also exempt from the normal requirements that apply to hazardous waste transport. Exempts household hazardous waste collection centers from the requirement to obtain a hazardous waste facilities permit if they accept only specified types of household hazardous waste or manage specific wastes as specified. Exempts a person transporting household hazardous waste within specified weight limits and conditionally exempts small quantity generators transporting hazardous waste to an authorized waste collection facility from certain requirements. Authorizes businesses that are small quantity generators to transport waste to household hazardous waste collection facilities operated under PBR or a standardized permit, but prohibits such business from using registered hazardous waste transporters to take this waste to such facilities. Prohibits landfill load-check programs and local agencies managing abandoned wastes from delivering hazardous waste to a PBR or standardized permit household collection facility because these facilities cannot accepting waste from a registered waste hauler. This bill makes a number of changes to several major program elements within the Hazardous waste management program relative to California only wastes (non-RCRA): Tiered Permitting Program 1) Authorizes the DTSC to administratively convert a hazardous waste facilities permit or a grant of interim status into authorization under a Permit-by-rule (PBR), conditional authorization, or conditional exemption, if the facility is not required to obtain a permit under the federal act and the unit(s) in question meet the applicable conditions for SB 1291 Page 6 authorization under the specific tier of the tiered permitting regime. 2) Establishes a process by which DTSC may, by regulation, add new activities to the list of activities eligible for operation under the tiered permitting program and requires DTSC to conduct a risk assessment and a risk management evaluation of the specific activity and waste stream prior to making additions to the two lower tiers of the program. 3) Delays the closure assurance requirement for persons operating under a PBR or conditional authorization until January 1, 1996, and requires DTSC to adopt emergency regulation by February 1, 1996, specifying closure assurance requirements for these tiers. 4) Exempts persons operating under a PBR from the requirement to obtain third-party liability coverage. 5) Deletes the requirement for generators conducting activities under more than one of the three lower tiers in the tiered permitting program to pay a separate fee for each tier. 6) Permits DTSC to accelerate the commencement of operation of treatment activities under the two lowest tiers of the program as specified. 7) Permits persons subject to both tiered permitting and local publicly owned treatment works (POTWs) requirements to operate pursuant only to the POTW requirements, provided that those requirements are substantially similar to those of the tiered permitting program and the POTW is included within a CUPA. 8) Expands the existing exemption from the hazardous waste facility permitting requirements for certain low-risk elementary neutralization activities to include the elementary neutralization of waste waters resulting from the food processing industry and requires DTSC to "study the safety of elementary neutralization of acids and alkalis and report the results to the Legislature as specified." Standard Permitting Program 1) Authorizes DTSC to issue "series C" standardized storage permits for non-RCRA hazardous waste held in surface impoundments for not more than 30 days, subject to certain conditions. SB 1291 Page 7 2) Permits reactive, ignitable or extremely hazardous wastes to be managed under the lowest level of standardized permitting (series C) if the other criteria for series C are met. 3) Extends the date by which all standardized permit facilities currently operating under interim status must obtain a final standardized permit. Household Hazardous Waste Collection Facilities Allows mobile household hazardous waste collection facilities and registered hazardous waste transporters carrying certain types of hazardous waste to transport hazardous waste to household hazardous waste collection facilities (provided that they comply with manifesting and transporter registration requirements). Definition of Storage Facility 1) Requires persons operating pursuant to the transfer facility exemption to place hazardous waste in containers only. 2) Allows generators to accumulate hazardous waste generated on-site in drip pads (which are used by the wood preserving industry) and containment buildings (used for hazardous waste storage) for up to 90 days. Variance Process 1) Clarifies that DTSC may variance non-RCRA requirements which are unimportant or insignificant in preventing or minimizing a potential hazard to human health and safety and the environment. 2) Clarifies that DTSC shall take into consideration the conditions, limitations, and other requirements included in the variance when evaluating potential impacts on human health and safety and the environment. 3) Clarifies that DTSC may modify or revoke a variance at any time. Modification Procedures for Inactive Interim Status Facilities Allows inactive interim status facilities that have notified DTSC of their intent to close, to utilize the streamlined modification process allowed for interim status facilities under the federal regulations for implementing SB 1291 Page 8 changes at these inactive, closing facilities. Cleanup Amendments Makes non-substantive cleanup amendments to a number of sections in Chapter 6.5 FISCAL EFFECT Minor, absorbable cost to DTSC. According to the bill analysis prepared by the State Board of Equalization, the revenue loss attributable to this bill would be approximately $1.6 million. COMMENTS Background: This bill is sponsored by the DTSC. The tiered permitting program is now in its third year of implementation. According to DTSC, many issues have been identified during its implementation that must be addressed to correct problems and to further develop the program. The bill as amended provides needed clarification and augmentation to the tiered permitting program established by AB 1772, as well as to other aspects of the non-RCRA program. Further, according to the sponsor, this measure will bring California's program into alignment with recent amendments to the federal RCRA program. The bill also requires DTSC to study more controversial reforms and to report its findings to the Legislature. Specifically, provision of the bill will among other things: 1) Enable facilities that complied with hazardous waste facility permitting requirements prior to the implementation of the tiered permitting program to transfer to the on-site tiered permitting program without having to close the facility or be subjected to fees. 2) Enable DTSC to complete the development and adoption of regulations which provide businesses with affordable, flexible options for providing financial assurance to cover the cost of closing PBR and conditionally authorized units. 3) Delete unworkable requirements for owner/operators relative to specific insurance requirements because (according to DTSC) there are no environmental liability policies available which are affordable for SB 1291 Page 9 persons operating under PBR (typically smaller businesses with limited financial resources). 4) Eliminate the duplicative permitting requirements between the Department and the Publicly-Owned Treatment Works pretreatment program in jurisdictions where a Certified Unified Program Agency has been formed. 5) Eliminate duplicative requirements for short lived impoundment programs. Currently, these surface impoundments must meet waste discharge and groundwater monitoring requirements and are regulated by both the regional water quality control boards and DTSC. This amendment would give generators that occasionally need to store large volumes of liquid hazardous waste for short periods of time prior to treatment some regulatory relief. For example, it would allow utility companies, that periodically generate large volumes of contaminated waste water when cleaning their boilers, to be regulated by DTSC under a series C permit rather than a full permit (i.e., series C permits is less expensive). DTSC believes that a standardized permit provides an appropriate and adequate level of regulation. 6) Provides an extension to facilities currently operating under interim status that is necessary to allow orderly completion, with adequate review, of all standardized permits within the limited resources available to DTSC. Failure to extend this deadline will force businesses, who are operating under interim status and who are not issued a final permit by October 1, 1995, to close their hazardous waste operations. SB 1291 Page 10 7) Permits specified small quantity generators to use registered hazardous waste transporters to transport their waste to a household hazardous waste collection facility and allows landfill load-check programs and local agencies managing abandoned wastes to deliver hazardous waste to a household hazardous waste collection facility. The Department states that the existing prohibition is unnecessary, and actually prevents these generators from using the safest method of transportation. 8) This bill also deals with a number of other aspects of the non-RCRA program including standardized permitting, household hazardous waste collection facilities, and variances. Concern: This bill, SB 1135 (Costa), and AB 1245 (Frusetta) modify Section 25123.3 of the Health and Safety Code. AB 1245 specifically conforms California law to federal law relating to the temporary storage of hazardous waste in transfer facilities which are not permitted hazardous waste facilities (as specified) by increasing the time period permitted to store such waste from six days (144 hours) to 10 days. AB 1245 was approved by this Committee and passed the Senate Floor 40-0. Author's amendment is solicited to provide assurance that if SB 1291, and/or AB 1245 are signed into law, the provisions of SB 1135 relative to HSC section 25123.3 are controlling and the pertinent provisions of SB 1291 and AB 1245 are not to be chaptered out. SPONSOR: Department of Toxic Substances Control SUPPORT: Norcal Waste Systems The Printed Circuit Alliance Northern California Association of Metal Finishers Anheuser-Busch Companies, Inc. The IT Corporation OPPOSED: Sierra Club (unless amended) Analysis prepared by: David C. Nunenkamp / aestm / 445-0991 8/20/95 SB 1291 Page 11