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AB-273 Hazardous waste and substances: corrective action: liability. (2015-2016)

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Assembly Bill No. 273
CHAPTER 456

An act to amend Sections 25187.2, 25360, and 25360.1 of the Health and Safety Code, relating to hazardous waste and substances.

[ Approved by Governor  October 02, 2015. Filed with Secretary of State  October 02, 2015. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 273, Committee on Environmental Safety and Toxic Materials. Hazardous waste and substances: corrective action: liability.
Existing law authorizes the Department of Toxic Substances Control to issue an order under the hazardous waste control laws requiring that a violation be corrected and imposing a civil penalty to specified persons, including a person who has violated various provisions regulating hazardous waste or provisions concerning removal and remedial actions for hazardous substance releases. A person who is issued that order is required to pay for oversight of the removal or remedial action.
Existing law, the Carpenter-Presley-Tanner Hazardous Substance Account Act, authorizes the department to take or oversee removal and remedial actions related to the release of hazardous substances. Existing law authorizes the Attorney General to recover from the liable person, as defined, the costs incurred by the department or a California regional water quality control board in carrying out the act and subjects any monetary obligation owed to the department pursuant to the act or the hazardous waste control laws to a specified rate of interest earned in the Surplus Money Investment Fund. Existing law authorizes the department to waive the interest if the obligation is satisfied within 60 days of the date of the invoice.
This bill would explicitly apply each of these provisions regarding a person’s liability for cost recovery to the release of hazardous waste constituents into the environment. The bill would also explicitly make the costs of response or corrective action recoverable.
The bill would, until June 30, 2021, subject a monetary obligation owed to the department under the act or these laws to an interest rate of 7% per annum. After that date, the bill would subject the monetary obligation to an interest rate of 10% per annum, except that, in the case of obligations of local governments, the rate after that date would remain at 7% per annum. The bill would require the department to waive the interest if the obligation is satisfied within 60 days or if the person, within 45 days of receiving an invoice, provides specified notice to the department disputing the obligation.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 25187.2 of the Health and Safety Code is amended to read:

25187.2.
 If an order or agreement issued by the department pursuant to Section 25187 to a potentially responsible party requires a person to take corrective action with respect to a release of hazardous waste or hazardous waste constituents into the environment, that person shall pay for the department’s costs incurred in overseeing or carrying out the corrective action.

SEC. 2.

 Section 25360 of the Health and Safety Code is amended to read:

25360.
 (a) A cost incurred by the department or regional board in carrying out or overseeing a response or a corrective action under this chapter or Chapter 6.5 (commencing with Section 25100) shall be recoverable pursuant to state or federal law by the Attorney General, upon the request of the department or regional board, from the liable person or persons. The amount of any response or corrective action costs that may be recovered pursuant to this section shall include interest on any amount paid.
(b) A person who is liable for response or corrective action costs incurred at a site shall have the liability reduced by any reimbursements that were paid by that person for that site pursuant to Section 25343.
(c) The amount of response or corrective action costs incurred by the department or regional board shall be recoverable at the discretion of the department or regional board, either in a separate action or by way of intervention as of right in an action for contribution or indemnity. Nothing in this section deprives a party of any defense that the party may have.
(d) Moneys recovered by the Attorney General pursuant to this section shall be deposited in the state account.

SEC. 3.

 Section 25360.1 of the Health and Safety Code is amended to read:

25360.1.
 (a) Until June 30, 2021, except as provided in subdivision (b), a monetary obligation to the department pursuant to Chapter 6.5 (commencing with Section 25100) or this chapter shall be subject to interest from the date of the demand at an interest rate of 7 percent per annum. Commencing July 1, 2021, except as provided in subdivision (b), a monetary obligation to the department pursuant to Chapter 6.5 (commencing with Section 25100) or this chapter shall be subject to interest from the date of the demand at an interest rate of 10 percent per annum, except that, for obligations of local governments, the interest rate shall be 7 percent per annum.
(b) The department shall waive the interest described in subdivision (a) if the obligation is satisfied within 60 days from the date of invoice. If, within 45 days of receiving an invoice, the liable person or persons provide written notice to the department in accordance with its invoice dispute resolution procedures disputing in good faith the monetary obligation specified in the invoice, or a portion thereof, the department shall waive the interest until the dispute is resolved.