Senate Bill 158 (Ch. 73, St. 2021) 

Following months of stakeholder input, the Legislature passed and the Governor signed SB 158 (Ch. 73, St. 2021). Senate Bill 158 establishes the Board of Environmental Safety (Board) within DTSC to provide policy direction to the Director, restructures the Hazardous Waste Control Account (HWCA) and the fees deposited into it, modifies the Toxic Substances Control Account and the Environmental Fee deposited into it, creates a Hazardous Waste Facilities Account (HWFA) within HWCA, and makes various other changes to the statutes DTSC
implements.

Governance Reform

• Establishes a five-member Board of Environmental Safety in DTSC
  • Specifies:
    • Number of members and appointing authorities for each
    • Board member qualifications, terms, and compensation
    • Rules of conduct for the board members
    • Designates a board member as liaison to federal Department of Defense
    • Number and location of public meetings
  • Specifies duties/responsibilities of the board, including:
    • Setting fee rates
    • Hearing and deciding permit appeals
    • Providing opportunities for public hearings for permitted and remediation sites
    • Reviewing and approving director’s priorities and adopting performance metrics for DTSC
    • Conducting an analysis of DTSC’s fee structure
    • Conducting an analysis of DTSC’s programs and their relationship with related programs in other agencies
    • Developing a multiyear schedule to develop long term goals for DTSC’s programs
    • Authorizes the board to form advisory subcommittees on any topic, including fees and environmental justice
    • Authorizes the board to adopt regulations governing its operations
    • Requires the director to appear before the board as requested
    • Requires the board to prepare an annual performance review of DTSC (and the director)
    • Establishes an office of the ombudsperson in the board
    • Requires the director and board chair to appear before Legislative policy committee

To learn more about the Board of Environmental Safety, visit the Board’s homepage.

Fee Reform

• Fee Reform Overview
  • Simplifies DTSC’s fee system by eliminating three fees (Disposal, Manifest User and EPA ID Verification fees)
  • Revises remaining fees and establishes new rates:
    • Facility Fee
      • Revenues are to be deposited into a newly created account (HWCA)
      • Authorized to be used only for hazardous waste regulatory activities associated with authorized (permitted) facilities
      • All fee exemptions eliminated
      • Sets the base rate at $94,910 (currently $35,943), a rate that reflects DTSC level of service expected in FY 2022-23 and
        begins to establish a prudent reserve
      • Revises timing of fee payments to correspond to fiscal year when assessed (changed from half due in February and half due in August (calendar year) to half due November 30 and half due February 28 (fiscal year))
      • Authorizes the Board of Environmental Safety to realign fee rates annually to reflect to the amount the Legislature appropriates from HWFA (up to a specified cap)
    • Generation and Handling Fee
      • Revenues are to be deposited into HWCA
        • Authorized to be used only for hazardous waste regulatory activities not associated with authorized (permitted) facilities, and specifically excludes DTSC’s products related authorities
        • Retains Fee exemption for small quantity generators (less than 5 tons per year)
        • Eliminates exemption for used oil
        • Fee rate and structure modified
          • Changes from tiered rate structure to per ton charge
          • Fee to be assessed on hazardous wastes generated in previous calendar year.
          • Rate set at $49.25 per ton (currently between $10 and $100 per ton)
          • Rate set at amount that would generate revenues necessary to fund DTSC’s level of service expected in FY 2022-23 and begins to establish a prudent reserve
          • Revises timing of fee payments to correspond to fiscal year when the fee assessed (changed from half due in February and half due in August (calendar year) to half due November 30 and half due February 28 (fiscal year))
          • Authorizes Board of Environmental Safety to realign fee rates annually to reflect to the amount the Legislature appropriates annually from HWCA (up to a specified cap)
    • Environmental Fee
      • Revenues deposited into TSCA.
      • Exempts small businesses (those with less than 100 employees)
      • No rate increases for businesses with 100 – 500 employees
      • Rate increases on businesses with more than 500 employees
      • Rates set at amounts that would generate revenues necessary to fund DTSC’s level of service expected in FY 2022-23 and begins to establish a prudent reserve
      • Authorizes the Board of Environmental Safety to revise fee rates annually to correspond to the amount of annual
        appropriation from TSCA (up to a specified cap)
    • Makes conforming changes throughout Health and Safety Code and
      Revenue and Taxation Code

To learn more about DTSC’s Fees webpage.

Programmatic Reform

• Programmatic Reform Overview
  • Establishes contemporary Hazardous Waste Management Plan to be prepared and updated beginning March 1, 2025 and every 3 years thereafter
    • Based on a comprehensive set of hazardous waste data to be gathered beginning March 1, 2023 and every 3 years thereafter
    • To be presented to the Board of Environmental Safety
    • Recommendations to include:
      • Establishing waste reduction goals
      • Updating DTSC’s Pollution Prevention Program
      • Reducing the risk of exposure to communities threatened by releases of hazardous wastes
    • Strengthens financial assurance requirements
      • DTSC to review cost estimates and mechanisms every five years
      • Hazardous waste facilities to establish and maintain financial assurance for corrective action (when cost estimates are requested)
      • All other sites with releases (hazardous waste or hazardous substances) to establish and maintain financial assurance for
        corrective or response actions
      • Financial Assurance required to be established when cost estimates are requested and approved.
      • Clarifies procedures for cost estimates and financial assurance (for transparency)
    • Establishes accountability requirements for DTSC’s permit renewals
    • Deadline for permit application submittal
    • DTSC to post estimated decision date and milestones
    • Deadline for DTSC to make permit decisions
    • DTSC responsibilities if permit deadline missed (accountability)

For more information, visit DTSC’s Hazardous Waste Management Plan webpage.

Cleanup in Vulnerable Communities Initiative (CVCI)

• CVCI Overview
  • Appropriates $822,400,000 as follows:
  • For 2021-22: $431,400,000
    • $300,000,000 for
      • Site discovery, investigation, cleanup
      • Brownfield grants
      • Job development/training program
      • Technical assistance grants
      • EJ Council support
      • Accelerated HWM Plan implementation
    • $131,400,000 as loan to TSCA for:
      • Exide residential cleanup
      • Exide job training
  • For 2022-23: $200,000,000
    • $100,000,000 for
      • Site discovery, investigation, cleanup
      • Brownfield grants
    • $100,000,000 as a loan to TSCA for:
      • Exide residential cleanup
      • Exide job training
  • For 2023-24: $191,000,000
    • $100,000,000 for
      • Site discovery, investigation, cleanup
      • Brownfield grants
    • $91,000,000 as a loan to TSCA for:
      • Exide residential cleanup
      • Exide job training

For more information, visit DTSC’s CVCI webpage.

A STRONG DTSC: Recovery and Rebuilding a California For All

The Newsom Administration’s vision is to expand the California dream so that every person can achieve a better life, regardless of where they start out, to create a California for All. DTSC’s role is critical to this vision, as it seeks to create a California where all have an equitable opportunity to thrive in a healthy environment.

DTSC is critical to helping achieve equitable economic recovery in California – particularly in communities suffering from the continued burden of pollution caused by some of the worst polluters in our state. DTSC’s work intersects with key elements of the Governor’s Equitable Recovery for California’s Businesses and Jobs plan, specifically the Housing and Infill Infrastructure Grant Program.

Building upon the significant programmatic and process improvements already underway within the department, the Administration is committed to transforming its governance structure and providing fiscal stability for the department. The Administration’s budget proposals align with its broad priorities:

• Equitable recovery from the health and economic crisis caused by COVID-19
• Increasing the availability and affordability of housing
• Equitably reducing toxic chemicals in homes, workplaces, and the natural environment in all corners of the state

Meeting Our Mission Today and Tomorrow

The Governor’s Budget proposes governance and fiscal reform for the Department of Toxic Substances Control to provide greater transparency, accountability, and fiscal stability. These improvements will provide the structure needed in the long term to address future cleanups of orphan sites and reduce harmful toxic substances in the environment.

The Administration’s proposal answers three key questions:

1. What programs and activities should DTSC be delivering to protect Californians and the environment?

DTSC’s Workload Analysis outlined significant gaps between the work that stakeholders would like the department to do and the resources it receives to fund those activities. The Governor’s Budget Proposal provides for a contemporary Hazardous Waste Management Plan, strengthens requirements that hold facilities accountable for cleanup and closure costs, and establishes timing/deadline requirements for permit renewals.

2. What fees and revenues are required to support those service levels while disincentivizing the use and mismanagement of hazardous substances in our economy and environment?

The Governor’s Budget Proposal is designed to produce sufficient revenues to address structural deficits in DTSC’s primary fund accounts and close the most critical gaps identified in its Workload Analysis. The proposal also streamlines DTSC’s complex fee system and revises the payment schedule to require payments in the same fiscal year that the fees are assessed.

3. What governance structure best provides greater transparency and stronger community engagement?

The Governor’s Budget Proposal creates the Board of Environmental Safety, a 5-member board that will set fees and fee rates, decide permit appeals, provide opportunities for public hearings on permitted or remediation sites, discuss long-term goals, and review the Director’s annual priorities and performance metrics. The proposal also establishes an Ombudsperson to receive and evaluate complaints and suggestions regarding any action, program, or policy of the department.

Explore each issue by visiting the following pages.

Reference Documents

• DTSC Governance and Fiscal Reform TBL Overview