AB2776 - Hazardous materials.

Assembly Bill No. 2776 CHAPTER 408 An act to amend Sections 25117.5, 25123.3, 25123.5, 25125.7, 25160, 25201.5, 25218.1, 25270.2, 25270.4.5, 25270.6, 25270.8, 25288, 25290.1, and 25507 of the Health and Safety Code, relating to hazardous materials. [ Approved by Governor September 20, 2026. Filed with Secretary of State September 20, 2026. ] LEGISLATIVE COUNSEL'S DIGEST AB 2776, Committee on Environmental Safety and Toxic Materials. Hazardous materials. (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. Existing law prohibits an owner or operator of a storage facility, treatment facility, transfer facility, resource recovery facility, or disposal site from accepting, treating, storing, or disposing of a hazardous waste at the facility, area, or site, unless the owner or operator holds a hazardous waste facilities permit, as provided. Existing law provides that a facility with the onsite accumulation of hazardous waste for a specified period of time by a generator of less than 1,000 kilograms of hazardous waste in any calendar month is not a storage facility if the quantity of hazardous waste accumulated onsite never exceeds 6,000 kilograms, the generator is in compliance with certain federal regulations, and the generator does not hold acutely or extremely hazardous waste in an amount greater than one kilogram for a specified period of time. Existing state regulations authorize a small quantity generator to accumulate various quantities of hazardous waste without a permit if certain conditions are met. This bill would instead provide that a facility with the onsite accumulation of hazardous waste for a specified period of time by a generator of less than 1,000 kilograms of hazardous waste in any calendar month is not a storage facility if the generator complies with those above-described state regulations. Existing law imposes various manifest requirements for transporting hazardous waste, including, among others, requiring any person generating hazardous waste that is transported, or submitted for transportation, for offsite handling, treatment, storage, disposal, or any combination thereof, to complete a manifest, as provided. Existing law authorizes specified manifest requirements for transporting hazardous waste to be satisfied through the use of the United States Environmental Protection Agency electronic manifest (e-Manifest) system. This bill would require certain reports required to be submitted to the department when a manifest is not received to instead be submitted to the e-Manifest system. For purposes of the hazardous waste control laws, “treatment” means any method, technique, or process that is not otherwise excluded from the definition pursuant to these laws and that is designed to change the physical, chemical, or biological character or composition of any hazardous waste or any material contained therein, or that removes or reduces its harmful properties or characteristics for any purpose. Existing law excludes from that definition of “treatment” specified activities. This bill would exclude from that definition of “treatment” the compaction of hazardous waste under specified conditions, including, among others, requiring that the waste being compacted is not a free liquid, as defined, is not a solid that exhibits the characteristic of ignitability or reactivity, as described, does not alter the physical, chemical, or biological character or composition of the waste, beyond those physical changes inherent to compaction, and the compaction does not result in fugitive dust, fire, or explosion. Existing law designates certain generators of hazardous waste as a very small quantity generator if they generate less than certain amounts, based on type, of hazardous waste per calendar month established in a specified federal regulation. This bill would delete the reference to that federal regulation and instead designate as very small quantity generators those that generate less than certain amounts established in a state regulation with identical thresholds as the federal regulation for the generation of acute and nonacute hazardous waste, except as provided. This bill would also make other changes related to hazardous waste and nonsubstantive changes. To the extent this bill changes the conduct that constitutes the crime of violating the hazardous waste control laws, the bill would impose a state-mandated local program. (2) Existing law establishes the Board of Environmental Safety in the Department of Toxic Substances Control with specified duties. Existing law requires the board to annually prepare and transmit to the Secretary for Environmental Protection an annual review of the department’s performance as compared to its objectives, including, but not limited to, the performance of the Director of Toxic Substances Control. This bill would require the board to post that review on its internet website. The bill would authorize the review to include, to the extent feasible using existing resources, other reviews, recommendations, and findings related to the department’s performance, as specified. (3) The Aboveground Petroleum Storage Act (the act) generally regulates aboveground storage tanks that contain petroleum and that meet certain requirements. The act requires its provisions to be implemented by a unified program agency, as provided, and requires the Office of the State Fire Marshal to adopt regulations implementing these provisions. A knowing violation of specified provisions of the act after reasonable notice of the violation is a crime. The act specifically excludes from the definition of an “aboveground storage tank” for purposes of the act oil-filled electrical equipment if the oil-filled electrical equipment meets specified conditions. The act further excludes from that definition a tank in an underground area that has the capacity to store less than 55 gallons of petroleum, has secondary containment, and is inspected monthly, if a specified condition is met. For purposes of the act, a “tank in an underground area” means a stationary storage tank that meets specified criteria and, among other things, the structure in which the storage tank is located, at a minimum, provides for secondary containment, as provided. For purposes of this definition, a shop-fabricated double-walled storage tank with a mechanical or electronic device used to detect leaks in the interstitial space meets the requirement for secondary containment of the contents of the tank. This bill would revise the exemption for oil-filled electrical equipment by clarifying that it applies if the single piece of equipment meets those above-described conditions. The bill would revise the exemption for a tank in an underground area that has the capacity to store less than 55 gallons of petroleum by requiring the tank to have secondary containment of the contents of the tank, associated piping, and ancillary equipment, until cleanup occurs, and if the tank, piping, and ancillary equipment are inspected monthly. To the extent that the revisions to these exemptions would impose a higher level of service on local agencies, the bill would impose a state-mandated local program. The act further requires each owner or operator of a tank facility to immediately, upon discovery, notify the Office of Emergency Services and the unified program agency of the occurrence of a spill or other release of petroleum, as specified, that is required to be reported pursuant to specified water control laws imposing water discharge notice requirements. Existing water control laws exempt a discharge in compliance with waste discharge requirements or other water control laws from that notification requirement. This bill would instead make that notification requirement applicable to a discharge of any petroleum into or upon any waters of the state. The bill would make the exemption pursuant to the water control laws applicable to that notification requirement. By expanding the scope of a crime, the bill would impose a state-mandated local program. This bill would also make clarifying changes to the act. (4) Existing law provides for the regulation of underground storage tanks by the State Water Resources Control Board and the unified program agency. Existing law defines an “underground storage tank” for these purposes. Existing law requires the interstitial space of the underground storage tank to be maintained under constant vacuum or pressure such that a breach in the primary or secondary containment is detected before the liquid or vapor phase of the hazardous substance stored in the underground storage tank is released into the environment. This bill would make that requirement applicable to the interstitial space of the underground storage tank that is buried. Existing law requires a local agency to inspect every underground tank system within its jurisdiction at least once every year. Existing law requires a local agency to prepare a compliance report detailing the inspection and to send a copy of this report to the permitholder and the owner or operator, if the owner or operator is not the permitholder. Existing law requires, within 60 days after receiving a compliance report or special inspection report, the permitholder to file with the local agency a plan to implement all recommendations contained in the compliance report or to demonstrate, to the satisfaction of the local agency, why these recommendations should not be implemented. This bill would instead require the permitholder to return to compliance within 30 days after receiving a compliance report or special inspection report and would eliminate the requirement to file a plan to implement all recommendations. The bill would authorize the local agency to approve a plan to return to compliance in excess of 30 days, as long as the plan to return to compliance is received by the local agency within 30 calendar days of the permitholder receiving the compliance report or special inspection report. (5) Existing law requires a business to establish and implement a business plan for emergency response to a release or threatened release of a hazardous material in accordance with prescribed standards if the business meets specified conditions at any unified program facility, including, among other conditions, if the business handles a hazardous material or a mixture containing a hazardous material that has a quantity at any one time during the reporting year that is equal to, or greater than, 55 gallons for materials that are liquids, 500 pounds for solids, or 200 cubic feet for compressed gas. This bill would provide that the above-described provision does not apply to specified gasses, including oxygen, nitrogen, or nitrous oxide, as provided. (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 no reimbursement is required by this act for specified reasons. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 25117.5 of the Health and Safety Code is amended to read: 25117.5. Waste that is hazardous only because it is medical waste, as defined in the Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104) shall not be governed by, subject to fees assessed by, or otherwise subject to, the requirements of this chapter or regulations adopted pursuant to this chapter. SEC. 2. Section 25123.3 of the Health and Safety Code is amended to read: 25123.3. (a) For purposes of this section, the following terms shall apply: (1) “Liquid hazardous waste” means a hazardous waste that meets the definition of free liquids, as specified in Section 66260.10 of Title 22 of the California Code of Regulations, as that section read on January 1, 1994. (2) “Remediation waste staging” means the temporary accumulation of non-RCRA contaminated soil that is generated and held onsite, and that is accumulated for the purpose of onsite treatment pursuant to a certified, authorized, or permitted treatment method, such as a transportable treatment unit, if all of the following requirements are met: (A) The hazardous waste being accumulated does not contain free liquids. (B) The hazardous waste is accumulated on an impermeable surface, such as high density polyethylene (HDPE) of at least 20 mils that is supported by a foundation, or HDPE of at least 60 mils that is not supported by a foundation. (C) The generator provides controls for windblown dispersion and precipitation runoff and run-on and complies with any stormwater permit requirements issued by a California regional water quality control board. (D) The generator has the accumulation site inspected weekly and after storms to ensure that the controls for windblown dispersion and precipitation runoff and run-on are functioning properly. (E) The staging area is certified by a registered engineer for compliance with the standards specified in subparagraphs (A) to (D), inclusive. (3) “Transfer facility” means any offsite facility that is related to the transportation of hazardous waste, including, but not limited to, loading docks, parking areas, storage areas, and other similar areas where shipments of hazardous waste are held during the normal course of transportation. (b) “Storage facility” means a hazardous waste facility at which the hazardous waste meets any of the following requirements: (1) The hazardous waste is held for greater than 90 days at an onsite facility. The department may establish criteria and procedures to extend that 90-day period, consistent with the federal act, and to prescribe the manner in which the hazardous waste may be held if not otherwise prescribed by statute. (2) The hazardous waste is held for any period of time at an offsite facility that is not a transfer facility. (3) (A) Except as provided in subparagraph (B), the waste is held at a transfer facility and any one of the following apply: (i) The transfer facility is located in an area zoned residential by the local planning authority. (ii) The transfer facility commences initial operations on or after January 1, 2005, at a site located within 500 feet of a structure identified in paragraphs (1) to (5), inclusive, of subdivision (c) of Section 25227. (iii) The hazardous waste is held for a period greater than six days at a transfer facility that is located in an area that is not zoned industrial or agricultural by the local planning authority. (iv) The hazardous waste is held for a period greater than 10 days at a transfer facility that is located in an area that is zoned industri [Text truncated for display. Full text available on LegiScan.]