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HomeMy WebLinkAbout07. Legislative Update Page 1 of 32 Item 7. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 20, 2018 SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERS AND POTENTIAL BALLOT PROPOSITIONS AND PROVIDE DIRECTION ON PRIORITY LEGISLATION SUBMITTED BY: INITIATING DEPARTMENT: EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND INTERGOVERNMENTAL RELATIONS INTERGOV REL MANAGER REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ANN SASAKI, DEPUTY GENERAL MANAGER Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to staff on positions related to priority legislation. BACKGROUND Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special significance to the Board, the General Manager will present information to the Board on priority legislation. The Board may then provide direction as to Central San's position on the legislation. September 20, 2018 Regular Board Meeting Agenda Packet- Page 46 of 134 Page 2 of 32 Staff has reviewed pending legislation and worked with member associations to identify possible direct impacts on Central San. The process to create and pass legislation is constantly in flux; the priority legislation presented in this Position Paper represents the most confident analysis and due diligence research at this time. As new information becomes available, it will be presented at future Board meetings. Attached is an updated Priority Legislative Tracking Sheet and other attachments of interest. At this meeting, staff is recommending that the Board take action or provide direction on the priority legislation listed on the Priority Legislative Tracking Sheet based on staff recommendations listed in the Board Legislative Summary Table. ALTERNATIVES/CONSIDERATIONS The Board may choose from the following positions on each piece of legislation: • Support • Support if Amended • Neutral • Oppose Unless Amended • Oppose FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION If applicable, take one of the following actions on Priority Legislative Tracking Sheet or another legislative matter: 1. Adopt staff recommended position(s) on the priority legislation; or 2. Adopt a different position on one or more pieces of the priority legislation; or 3. Take no action Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness ATTACHMENTS: 1. Central San Priority Legislation Tracking Sheet 2. Title XVI background fact sheet 3. Title XVI-W1 I N reauthorization proposal 4. Central San support letter of SB 929 McGuire September 20, 2018 Regular Board Meeting Agenda Packet- Page 47 of 134 Page 3 of 32 5. SB 212 Analysis from Senate Environmental Quality Committee September 20, 2018 Regular Board Meeting Agenda Packet- Page 48 of 134 Page 4 of 32 Central San 2018 Priority Legislative Tracking Sheet as of 9/10/18 Federal/ Industry Position Date of Board Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board otes State a List/Position Staff Direction Decision 1 Federal President President's Protect Cuts to The President's FY19 budget request WateReuse - oppose Oppose 4 03/15/18 Op 9/6/18 Submitted Central San input for FY19 budget Title XVI and included an over 90% cut to the Bureau of cuts WaterReuse call to action in support of Title XVI- request Increase funding Reclamation's Title XVI water reuse program WIIN Reauthorization. 3/6/18 - Call to action for WaterSMART from $34.5M in FY17 to $3M. Title XVI is the received by WateReuse to sign onto WateReuse and Title XVI only federal program that specifically multiagency letter by COB March 12. WateReuse programs supports water recycling efforts. The Association is asking Congress to reject these program has invested $692 million in direct cuts and provide at least level funding for Title XVI federal spending while leveraging at least an in FY19. Letter deadline for House is March 16 additional $2.07 billion of local investment to and Senate is March 30. provide a sustainable long-term reliable supply of water for residents and businesses in the West. 0 2 Federal Napolitano (D- H. R. 5127 Water Recycling Establishes a grant program for the funding Western Recycled Water Support 03/15/18 3/6/18 In House Committee on Natural Resources: 32) Los Angeles Investment and of water recycling and reuse projects. Coalition - Support, Referred to Subcommittee on Water, Power and area, Co-author Improvement Act WateReuse - Support Oceans. Introduced on 2/27/18. In both House DeSaulnier (CA- Committee on Natural Resources and Committee 11) on Transportation and Infrastructure 3 Federal Katko (R-NY 24) H. R. 4902 Drinking Water Amends the Water Infrastructure Finance CASA- Support Support 03/15/18 Support 2/2/18 In House Committee on Science, Space and Clean Water and Innovation Act of 2014; provides to state and Technology: Referred to Subcommittee on Loans infrastructure financing authorities additional Environment. 1/31/18 Introduced and in House opportunities to receive loans under that Act Committee on Transportation & Infrastructure: to support drinking water and clean water Referred to Subcommittee on Water Resources state revolving funds to deliver water and Environment. infrastructure to communities across the United States. 4 Federal Boozman (R- S. 2364 Drinking Water Amends the Water Infrastructure Finance CASA- Support Support 03/15/18 Support Introduced in Senate Committee on AR), Co-Author (Identical bill to and Clean Water and Innovation Act of 2014; provides to state Environment and Public Works Feinstein (D-CA) H.R. 4902) Loans infrastructure financing authorities additional opportunities to receive loans under that Act to support drinking water and clean water state revolving funds to deliver water infrastructure to communities across the United States. September 20, 2018 Regular Board Meeting Agenda Packet- Page 49 of 134 Page 5 of 32 Central San 2018 Priority Legislative Tracking Sheet as of 9/10/18 5 State Wieckowski cry 831 Similar ADUs update Would prohibit the imposition of any fees, Watch: CASA, ACWA, Oppose 03/15/18 Watch 3/31/18 SB 831, AB 2890 has officially failed. All bolls AB 2Qon including connection or capacity fees, for the CSDA on 5/3/18 Sills have failed. AB 2890 In Senate. Read Second Tong and SB construction of an accessory dwelling unit. SUP_ : Bay Area Oppose on time and amended. Re-referred to Appropriations. 1469 Skinner The bill is attached for your review. ACWA Council (sponsor); Bay 3/15/18 SB 831 6/27/18 Heard Asm Local Gov't (all three hills proposed SB 831 edits: (b)AGGessory dwelling Area Rapid Transit Committee - remains in committee. AB 2890 are dead) units and juni0F aeeessory dwelling units permitted (BART); California Passed Senate Governance and Finance pursuant to this non+.nn shall not be ..",.,oi.JororJ by Apartment Association; Committee and now in Senate Appropriations. a local ge +„ , speeial, .,o,."residential+,,, „�o for the OF water California Association of 4/25/18 Author has agreed to remove language ..+o I..,.I.,+�e re ng si enti.l u e f.r t h Realtors; California eliminating fee authority for water/ww connection PUFPoses ew development. For an accessory dwelling unit tha Building Industry and capacity charges to fall in line with last year's is not described in paragraph (1)or paragraph (2 Association (CBIA); ADU agreement. 4/17/2018 - Central San sent of subdivision (a), a local agency, special district; California Chamber of opposition letter to the committee to register or water corporation may require a new or Commerce; opposition to bill. CASA concerns: Eliminating fee separate utility connection directly between the authority for one particular type of residential accessory dwelling unit and the utility. Consistent construction is contrary to our obligations to with Section 66013, the connection may be assess proportional fees under Propositions 218 subject to a connection fee or capacity charge, or and 26. It could lead to one class of ratepayers equivalent charge for new service that shall be subsidizing rates for another class, which is proportionate to the burden of the proposed accessory dwelling unit, based upon either its size prohibited by Prop 218. Finally, CASA believes or the number of its plumbing fixtures, upon the that there has not been sufficient time to evaluate water or sewer system. This fee or charge shall the impact of the fee restrictions agreed to in SB not exceed the reasonable cost of providing this 1069 in 2016 and SB 229 in 2017. service. 6 State Bloom AB 2379 Waste Requires that clothing made from fabric that Californians Against Support 03/15/18 Support 6/20/18 This bill has officially failed. 6/4/18 Ir. Management: is more than a specified percentage of Waste - Support Assembly. To inactive file (dormant). 4/30/18 in Polyester polyester bear a conspicuous label stating Assembly for third reading. 4/18/18 amendments Microfiber that the garment sheds plastic microfibers remove recommendation to handwash the when washed and reeammending hand clothing. Some BAPPG members suggesting Wig. Prohibits a person from selling or support. 2/14/18 introduced. offering for sale clothing made from fabric that is more than a specified percentage polyester that does not bear that label. September 20, 2018 Regular Board Meeting Agenda Packet- Page 50 of 134 Page 6 of 32 Central San 2018 Priority Legislative Tracking Sheet as of 9/10/18 AB 3037 Community Would establish a new version of redevelopment agencies CSDA - Oppose Unless Opposed Unless 05/03/18 Opposed 6/8/18 This bill has officially failed. 5/25/18 Held in Redevelopment (,e-termed redevelopment housing and infrastructure agencies). 1. Uses the Enhanced Infrastructure Financing Amended. Amended Unless Assembly Appropriations Committee. 4/30/18 a Law of 2018 District(EIFD)law as a model in many ways; however, like Amended Passed second reading to third no amendments former RDAs,the new redevelopment housing and since 4/26. 4/25 passed out of Asm Local Gov't infrastructure agencies do not require voter approval and Committee - now on to Appropriations. 4/11 they are able to access the school/State share of the property tax increment. Their access to the school/State passed out of Asm Housing and Community share of the property tax increment requires approval from Development Committee. AB 1792 Fraiser spot bill the California Department of Finance and will be capped at is similar. Set for hearing on 4/25/18 in Asm Local a yet-to-be-determined amount.2. As with EIFDs,each Gov't Committee. affected taxing entity(each special district and typically the county)within the jurisdiction of the redevelopment agency would be given one seat on the board of the redevelopment agency;the city creating the agency would have two seats total;there would also be two public seats., 3.Similar to EIFDs and former RDAs,the proposed redevelopment housing and infrastructure agencies would require a certain percentage of all revenue to go toward affordable housing projects. The current draft requires 30 percent,which is more than what EIFDs and former RDAs were required to set aside.4. Unlike former RDAs,the stated intent is to keep affected taxing entities(special districts and counties) "whole"in terms of property tax revenue.The bill attempts to achieve this by establishing a"passthrough"equivalent to the amount of property tax increment diverted from the county and special districts. The passthrough is primarily funded with ERAF dollars. 8 State Portantino SB 1263 Ocean Protection Requires the State Ocean Protection Council CASA- Sponsored Leg Support 05/03/18 Support 9/6/18 To Governor for signature. 8/28/18 Passed Council: to adopt and implement a Statewide Senate concurrence. 8/20-27 1-2-3 Asm Statewide Microplastics Strategy relating to microplastic Readings. Passed out of Asm on 80-0 vote. Microplastics materials that pose an emerging concern for 8/16/18 pulled from Asm suspense file and passer Strategy ocean health and that includes specified out of Asm Appropriation 6/28/18 In Assembly components, to the extent funds are amended and re-referred to Appropriations available from bonds or other sources. Committee. )/26/18 Passed out of Asm Enviro 5atety and Toxic Materials Committee and now in Asm Appropriations. 6/19/18 Authors amendments from Asm Water, Parks and Wildlife Committee. 6/11/18 To Assembly Water, Parks & Wildlife and Enviro Safety & Toxic Materials Committees. 5/31/18 PASSED Senate. 5/29/18 In Senate - to Special Consent Calendar due to lack of opposition. 5/22/18 hearing set in Senate Appropriations. September 20, 2018 Regular Board Meeting Agenda Packet- Page 51 of 134 Page 7 of 32 Central San 2018 Priority Legislative Tracking Sheet as of 9/10/18 State Ting AB 2065 Local Agencies: Expands the definition of local agency to CSDA - Oppose Unless Oppose 05/03/18 Oppose 6/8/18 This bill has officially failed. 5/25/18: Held in surplus land include sewer, water, utility, and local and Amended. Assembly Appropriations Committee. 5/15/18 regional park districts, joint powers Letter signed by Central San GM to oppose. authorities, successor agencies to former 5/2/18 In Assembly Appropriations on Suspense redevelopment agencies, housing authorities, file. 4/16/18 Read second time and amended. Re- and other political subdivisions of this state referred to Appropriations Committee. and any instrumentality thereof that is empowered to acquire and hold real property, thereby requiring these entities to comply with the requirements for the disposal of surplus land. State Daly AB 2003 Public contracts: Currently, Sanitation Districts are required to Orange County Support 05/03/18 Support 5/16/18 Author removed bill - Orange Co. sanitation post bid notices over a certain amount in a Sanitation District Sanitation will look to try again in 2019 Legislative districts: notice print newspaper of general circulation. These sponsored legislation. Session. 5/9/18 at 1:30 heard in Asm Local costs can be quite large, and bids for local CASA- Support, CSDA - Government Committee. Orange County San wastewater projects generally do not come Support estimates approximately $500,000 in savings over from print newspaper adds. This bill would 10 years should bill pass. instead require the notice to be published in a manner that the district board determines to be reasonable, which may include, but is not limited to, newspapers, Internet Web sites, radio, television, or other means of mass communication. 11 State McGuire SB 929 Special Districts: Requires every independent special district to CSDA - Sponsored Support 05/03/18 Support 8/28/18 to Governor for signature. 8/23/18 Central Internet Web maintain an Internet Web site that clearly Legislation San sent letter requesting Governor's signature. Sites lists contact information for the special 8/22/18 Passed Senate concurrence 39-0. 8/20/18 district. Passed Assembly 80-0. 8/16/ In Asm for 3rd reading from consent. 7/2/18 In Assembly. To thirc reading. 6/27/18 Passed from Asm Appronriation- Committee 16-0. To consent calendar 6/13/18 In Assembly Appropriations Committee. 4/30/18 In Assembly Local Gov't Committee. 4/23/18 In Senate: Read third time. Passed on 38-0 vote to Asm. 4/17/18 Read second time - Senate. 4/16/18 passed out of Senate Appropriations on 7-0 vote. 3/22/18 Central San Letter of Support sent - CSDA Call to Action State MS AB 2613 Failure to Pay Makes an employer, or other person acting Oppose 05/17/18 Oppose oi,D i/ i o i , is bill has officially failed. 6/28/18 This Wages: Penalties individually or as an officer, agent, or bill is likely d(-Ad but staff will cnntimip tn monitor. employee of another person, who fails to pay 6/4/18 In Assembly. To Inactive File. 5/29/18 In or causes a failure to pay specified wages of Assembly for third reading. 5/11/18 Asked CASA each employee, subject to a penalty payable to add to their bill tracking list - Watch. 5/2/18 In to each affected employee, per pay period Assembly Committee on Appropriations: To where the wages due are not paid on time. Suspense File. ep em er Regular board Meeting Agenda PacRet- Page b2 oT *134 Page 8 of 32 Central San 2018 Priority Legislative Tracking Sheet as of 9/10/18 13 State Cervantes ACA 31 Public employee Prohibits an employee of a public employer CSDA - Oppose Oppose 06/07/18 Oppose 8/31/18 This constitutional amendment has Constitutional salaries: limit from receiving an annual base salary or pay officially failed. 6/21/18 To Asm Public Employees, Amendment rate that exceeds the salary of the Governor Retirement and Social Security Committee. as established by the Citizens Compensation 5/24/18 Sent to print - 3 printing days. 5/23/18 Commission that is effective at the time the Introduced. An" employment contract is entered. AMM 14 State Jackson and SB 212 Solid Waste: Establishes a pharmaceutical and sharps California Product Support 06/21/18 Support 9/8/18 Enrolled (certified then sent to Governor for =A Ting Pharmaceutical waste stewardship program, under which Stewardship Council - signature). 8/24/18 Central San signed onto large- and Sharps each manufacturer of covered drugs or Sponsored Legislation scale coalition letter in support. 6/27/18 In Disposal sharps, as defined, in the state would be Assembly. Coauthors revised. Language required to establish and implement, either amendments in Aug after summer recess. 6/26/18 on its own or as part of a group of covered Passed out of Enviro Safety and Toxic Materials manufacturers through membership in a Committee and on to Asm Appropriations pharmaceutical and sharps waste Committee. 6/19/18 Call-to-Action request from stewardship organization, a pharmaceutical CPSC for 6/19 only to have support letter for Asm and sharps waste stewardship program. Enviro Safety and Toxic Materials Committee. Central San sent letter of support. Central San member of CPSC. 6/19/18 - Gut and amend bill with new language in print on this day. 15 Federal Transportation Clean Water Act NPDES Permit The Clean Water Act requires publicly owned CASA- Sponsored Support 06/21/18 Support 7/3/18 Support letter included in the Board packet. and term extensions clean water agencies to secure a permit to Legislative Amendments 6/19/18 CASA has recently made ground on this Infrastructure discharge highly treated wastewater and issue securing support of Congressmen Committee serve their function of protecting the Garamendi and Lowenthal to raise issue and environment and public health. National proposed CASA amendment language. CASA Pollutant Discharge Elimination System requests call to action of Central San send letter of (NPDES) permits expire five years from the support to Congressmember DeSaulnier in time of issuance by either a state or USEPA. support of the amendment changes to 10-year This five-year renewal cycle results in permit. financial and technical burdens on local agencies and the permitting authorities, which must prepare and issue the permits. Amendments of Clean Water Act, Section 402(b)(1)(B) would allow for ten (10) year permit terms allowing adequate time to comply with existing regulatory requirements before imposition of new mandate(s). September 20, 2018 Regular Board Meeting Agenda Packet- Page 53 of 134 Page 9 of 32 OWATEREUSE Bureau of Reclamation Title XVI Water Reclamation and Reuse Grant Program The Bureau of Reclamation's Title XVI Water Reclamation and Reuse grant program is a highly successful federal cost-share program that leverages local funding to build critical water recycling projects throughout the western states.These water recycling projects provide secure and sustainable water supplies for communities throughout the arid West to protect the environment and sustain local economies.With more frequent and severe droughts and changing hydrologic conditions throughout the West,the demand for water recycling is increasing. Title XVI Background • Congress established the Title XVI Water Reclamation and Reuse grant program within the Bureau of Reclamation in 1992 as the only federal funding program solely focused on support for western water recycling projects; • The program provides up to 25%of project costs with a $20 million maximum for a cost- effective 3:1 leverage ratio; • The 2009 earmark moratorium in Congress prevented the authorization of further Title XVI projects. Creation of Title XVI-WIIN • The 2016 Water Infrastructure Improvements for the Nation (WIIN)Act created a mechanism to ensure drought-stricken western communities continued to have access to federal funding for water recycling projects through a new competitive grant program within Title XVI (Title XVI-WIIN); • Title XVI program funding receives a single appropriations allocation and within this appropriation,Congress allocates funding between Title XVI-WIIN and the Congressionally- authorized Title XVI projects; • The allocation for Congressionally-authorized Title XVI projects has been significantly higher than the amount allocated to WIIN Title XVI projects. Title XVI by the Numbers • Since the program's inception in 1992,Congress has authorized 53 Title XVI recycling projects producing more than 400,000 AF of drought-proof water supplies; • Approximately$672 million in federal funding has been leveraged with non-federal funding to implement more than$3.3 billion in water reuse improvements-a greater than 3:1 leverage ratio; • By creating drought-resistant water supplies,water recycling provides many indirect and secondary benefits by sustaining local economies; • There are currently 16"active"authorized Title XVI projects with a total federal cost-share of approximately$190 million; • There are currently 44 Title XVI-WIIN eligible projects with a total federal cost-share of approximately$528 million (after FYI appropriations are enacted); • The federal cost-share backlog for Title XVI-WIIN will continue to grow as more projects become eligible; • Federal funding for this important program must increase to match the growing demand. September 20, 2018 Regular Board Meeting Agenda Packet- Page 54 of 134 Page 10 of 32 OWATEREUSE Title XVI-WIIN Reauthorization Conceptual Legislative Proposal Purpose and Request To reauthorize Title XVI-WIIN at$225 million over five years.Congress established a competitive grant program within the U.S.Bureau of Reclamation's Water Reclamation and Reuse program in the 2016 Water Infrastructure Improvements for the Nation (WIIN)Act(hereafter referred to as Title XVI-WIIN). Congress is expected to reach the $50 million 5-year Title XVI-WIIN authorization with enactment of the FYI Energy and Water Appropriations Act. The proposed $225 million 5-year authorization would be off-set or"paid for" by deauthorizing inactive Title XVI projects through a process similar to that which Congress enacted for U.S.Army Corps inactive projects in the 2014 Water Resources and Reform Development Act. Background With successive $20 million funding allocations for the Title XVI-WIIN grant program in the FY 2018 and FY 2019 Energy and Water(E&W)Appropriations measures-combined with the $10 million in the FYI E&W spending measure-the 2016 WIIN Act's $50 million authorization level for the Title XVI competitive grant program will be officially exhausted.Therefore,Congress will need to reauthorize the Title XVI-WIIN program this year or next in order to ensure funding is available for communities facing water scarcity challenges in the arid West. Further driving the need for a Congressional WIIN reauthorization effort are the expiring authorizations of the western water storage funds ($335 million) and the desalination program ($30 million).The two-year budget deal that Congress agreed to earlier this year increased the overall "caps"on federal domestic discretionary funding.This has resulted in a significantly higher allocation for the overall Title XVI program for both fiscal years 2018 and 2019. The FY 2019 House E&W Appropriations measure provided $65 million to the Title XVI program and the FY 2019 Senate E&W Appropriations measure provided $55 million to the Title XVI program. After accounting for the $20 million per year for the Title XVI-WIIN program,the approximate two- year(FYI 8 and FYI 9)funding level for the previously authorized Title XVI projects will be between $60 million and $70 million.This means that after the FYI Title XVI grant awards are selected for the previously authorized Title XVI projects,the federal funding backlog for the remaining Congressionally authorized projects(currently at 16)will be approximately$190 million. After the FY 2018 and 2019 awards are granted,the demand for the eligible Title XVI-WIIN projects will be$528 million(federal share). However,the$528 million figure assumes a"static"Title XVI-WIIN project eligibility level,which will not be the case as more eligible projects are expected to come online over the next year or so. Currently,there are 44 projects that Reclamation has approved as feasibly eligible to compete for Title XVI-WIIN funding. September 20, 2018 Regular Board Meeting Agenda Packet- Page 55 of 134 Page 11 of 32 Key Elements of the Title XVI-WIIN Reauthorization Proposal Reauthorization and Program Funding • Reauthorize Title XVI-WIIN program at$225 million over five years • Preserve the separate funding allocation for pre-2010 Congressionally-authorized Title XVI projects($35 m in FYI 8) • Allocate annual funding for the pre-2010 Congressionally-authorized Title XVI projects and for eligible Title XVI-WIIN projects proportionate to the outstanding backlog for projects under each portion of the Title XVI program • Establish a mechanism for USBR to deauthorize the approximately$200 million plus in "inactive"Congressionally-authorized Title XVI projects(see below for further details on the proposed deauthorization provision) Congressional Approval of Awards • Rescind the 2016 WIIN Act provision requiring that USBR grant award determinations for Title XVI-WIIN projects be included in subsequent Congressional E&W Appropriations measure before USBR can officially execute them. • Instead, require USBR to notify the House and Senate Appropriations Committees of recommended Title XVI-WIIN awards,and if no objections are made by Committees within 30 days,USBR could then proceed with grant awards to selected recipients. Project Selection Criteria The reauthorization proposal would retain most of the project prioritization and criteria as established in the 2016 WIIN Act,with all other project selection criteria established by USBR.The 2016 WIIN Act Title XVI criteria maintained in this proposal include the following: • Projects that are likely to provide a more reliable water supply for States and local governments. • Projects that are likely to increase the water management flexibility and reduce impacts on environmental resources from projects operated by Federal and Stateagencies. • Projects that are regional in nature. • Projects with multiple stakeholders. • Projects that provide multiple benefits, including water supply reliability,eco-system benefits,groundwater management and enhancements,and water quality improvements. Project Deauthorization Mechanism To"pay for"the$225 million total authorization funding level as proposed,the legislation would deauthorize inactive or uninitiated Congressionally-authorized Title XVI projects,following a similar deauthorization process Congress enacted for the U.S.Army Corps of Engineers projects in 2014. A review of the inactive Congressionally-authorized Title XVI projects shows that approximately $200 million could be deauthorized from projects that have never received appropriations or have been inactive for a decade or longer.The proposed measure would establish a procedure Page 2 of 3 September 20, 2018 Regular Board Meeting Agenda Packet- Page 56 of 134 Page 12 of 32 administered by the USBR which would determine projects for deauthorization based upon one or more of the following criteria: • Projects that have never received any Title XVI funding since authorization; • Projects that have not received Title XVI funding within the last ten fiscal years;or • Projects that do not have completed plans and specifications and that cannot reasonably be demonstrated as"construction ready"within 12 months. Should a project be determined by USBR to be deauthorized based upon the above criteria,the USBR will publish an interim list in the Federal Register,and impacted project sponsors shall have 180 days to submit information demonstrating the project's active status to USBR with a request to revoke the deauthorization. USBR shall review submitted information and make a final determination regarding the deauthorization list within 180 days,and publish the final list of deauthorized projects in the Federal Register. Title XVI Projects — Outstanding Federal Cost Share TOTAL TITLE XVI BACKLOG$718 M(APPROX.) 26.5%of total program backlog Ily IF 1 Congressionally — Authorized Title XVI: <16 projects $528 M WIIN Act Title XVI: >44 Eligible Projects 73.5%of total program backlog Note:amounts shown reflect post FY 2018&FY 2019 USBR Award Allocation Page 3 of 3 September 20, 2018 Regular Board Meeting Agenda Packet- Page 57 of 134 Page 13 of 32 Central Contra Costa Sanitary District Protecting • 94553-4392 PHONE (925)228-9500 August 23, 2018 FAX (925)676-7211 www.centralsan.org ROGER S'BAILEY General Manager The Honorable Edmund G. Brown, Jr. KENTONL ALM for the Governor, State of California Couns(510)808-'2000 State Capitol KATIE YOUNG Sacramento, CA 95814 Secretary of the District RE: Senate Bill 929 (McGuire) — Request for Signature Dear Governor Brown: On behalf of the Board of Directors of the Central Contra Costa Sanitary District (Central San), I respectfully request your signature on Senate Bill (SB) 929 (McGuire), which would require that all special districts maintain a website. Central San, established in 1946, provides wastewater collection and treatment services to nearly 500,000 residents and more than 3,000 businesses in the East San Francisco Bay Area. Within its 145-square mile service area, Central San operates a 54 million gallon-per-day capacity treatment plant, 18 pumping stations, over 1,500 miles of sewer lines, a Household Hazardous Waste Collection Facility, 13 pharmaceutical collection bins, and commercial and residential recycled water fill stations. Special districts like ours provide millions of Californians with essential local services and infrastructure. Communities form special districts when there is something the community wants, the community wants done well, and the community wants done with local control. As local service providers, few agencies in the state are as impactful on the day-to-day lives of Californians. SB 929 will grant the public with greater access to their services, as well as greater transparency and accountability of the governing bodies who oversee them. Although Central San operates and maintains a robust website affording the greatest level of transparency to our customers, we realize not all special districts may have the same level of information or a working website. SB 929 will help provide a standardization for special district websites and specify the information to be incorporated on the websites. SB 929 will help provide the public with greater access to special district services, and greater transparency and accountability of the governing bodies who oversee them. Specifically, SB 929 would require that, by 2020, every independent special district must have a website. The sites will meet existing local agency website requirements including: a link to the district's meeting agendas, Financial Transaction Reports, and Compensation Reports, as well as a copy of the district's enterprise systems catalog. The bill will also ensure the sites contain contact information for the district. SB 929 provides an exemption for districts that cannot comply due to hardships such as lacking broadband access, or the necessary finances or staff to construct and maintain a website. September 20, 2018 Regular Board Meeting Agenda Packet- Page 58 of 134 Page 14 of 32 Senate Bill 929 (McGuire) - Request for Signature August 23, 2018 Page 2 We believe that special districts are the most local form of government, and we are committed to empowering our community to engage in its government. The increased transparency provided by SB 929 is consistent with our district's outreach efforts, and making information more widely available on the Internet will improve public awareness and access to special district services in our community. For these reasons, Central San requests your signature on Senate Bill 929 (McGuire). Please feel free to contact Emily Barnett at ebarnett(a-centralsan.org if you have any questions. Sincerely, /-,-`� Ann Sasaki, P.E. Deputy General Manager cc: The Honorable Mike McGuire Tom Dyer, Chief Deputy Legislative Secretary, Office of Governor Brown Dillon Gibbons, Senior Legislative Representative, California Special Districts Association September 20, 2018 Regular Board Meeting Agenda Packet- Page 59 of 134 Page 15 of 32 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2017 - 2018 Regular Bill No: SB 212 Author: Jackson Version: 8/27/2018 Hearing Date: 8/31/18 Urgency: No Fiscal: Yes Consultant: Rachel Machi Wagoner SUBJECT: Medical waste ANALYSIS: Existing federal law: 1. Under the Food,Drug, and Cosmetic Act, the Food and Drug Administration (FDA) is authorized to oversee the safety of food,drugs, and cosmetics. 2. Under the Resource Conservation and Recovery Act (RCRA) of 1976, the management of solid and hazardous wastes is regulated. In the context of pharmaceuticals, RCRA imposes strict protocols for the collection of controlled substances. 3. The Secure and Responsible Drug Act of 2010 eases the restrictions on the collection of controlled substances;final regulations are currently under development, and are expected to be published in March 2014. Existing state law: 1) Under the California Hazardous Substances Act, the Department of Toxic Substances Control(DTSC) is authorized to regulate hazardous materials and wastes in accordance with RCRA. 2) Under the California Integrated Waste Management Act: a) Requires the Department of Resources Recycling and Recovery (CalRecycle) to implement a statewide household hazardous waste substance information and collection program. b) Authorizes local jurisdictions to include in their Household Hazardous Waste Elements a program for the safe management of sharps waste. September 20, 2018 Regular Board Meeting Agenda Packet- Page 60 of 134 Page 16 of 32 SB 212 (Jackson) Page 2 of 18 c) Requires pharmaceutical manufacturers that sell or distribute a medication in California that is self-injected at home through the use of a hypodermic needle, pen needle, intravenous needle, or any other similar device to submit to CalRecycle a plan that describes what actions, if any, the manufacturer supports for the safe management of sharps waste. 3) Under the Medical Waste Management Act (MWMA): a) Requires the California Department of Public Health (DPH) to regulate the management and handling of medical waste. b) Defines "pharmaceuticals" as a prescription or over-the-counter human or veterinary drug. "Pharmaceutical" does not include any pharmaceutical that is regulated pursuant to either RCRA or the Radiation Control Law and certain items, such as household waste, are specifically excluded from the definition of medical waste. c) Defines "pharmaceutical waste" as any pharmaceutical that for any reason may no longer be sold or dispensed for use as a drug and excludes from this definition those pharmaceuticals that still have potential value to the generator because they are being returned to a reverse distributor for possible manufacturer credit. d) Specifies that waste comprised only of pharmaceuticals is biohazardous, and is considered"medical waste." e) Home-generated pharmaceutical waste is not defined in statute or regulations, however, the California Department of Public Health has viewed the consolidation and disposal of pharmaceutical waste as a public health necessity and regulates this waste stream as medical waste. This bill: Requires entities that sell drugs or sharps in the state to individually, or with other entities, develop and implement a statewide home-generated drug stewardship plan, or a home-generated sharps waste stewardship plan, or both for the collection and proper disposal of home-generated drug and sharps waste. Requires the Department of Resources,Recycling and Recovery(CalRecycle) to oversee and enforce each stewardship plan (Plan). Specifically: 1) Defines "covered drug" as a drug, including a brand name or generic drug, sold, offered for sale, or dispensed in the state in any form, including, but not limited to, prescription and nonprescription drugs approved by the United States Food and Drug Administration (FDA) a drug marketed as an over-the-counter drug; and, a drug in a medical device. Exempts from the definition of a "covered September 20, 2018 Regular Board Meeting Agenda Packet- Page 61 of 134 Page 17 of 32 SB 212 (Jackson) Page 3 of 18 drug" drug for veterinary use. Exempts from the definition of a "covered drug" drugs that are used for animal medicines and dialysate drugs or other saline solutions required to perform kidney dialysis. 2) Defines "covered product" as a covered drug or home-generated sharps waste. 3) Defines "drug" as an article recognized in the official United States pharmacopoeia, the official national formulary, the official homeopathic pharmacopeia of the United States, or any supplement of the formulary or those pharmacopoeias; a substance intended for the use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals; a substance, other than food, intended to affect the structure or any function of the body of humans or other animals; or, a substance intended for use as a component of any substance specified in the bill. 4) Defines a "covered entity" as a manufacturer of covered products that are sold into the state. If there is not a manufacturer for a covered product,then the covered entity is the distributor of the covered product sold into the state. If there is not a manufacturer or distributor for a covered product,then the covered entity is the owner or licensee of a trademark or brand name under which covered products are sold into the state. If there is not a manufacturer, distributor, or owner or licensee of trademark or brand name, then the covered entity is the importer of the covered product into the state. 5) Defines "stewardship organization" as an organization established by a group of covered entities to develop, implement, and administer a stewardship program. 6) Defines "stewardship plan (Plan)" as the plan for collecting and properly managing covered products that is developed by a covered entity or stewardship organization. 7) Defines "stewardship program" as a stewardship program for the collection, transportation, and disposal of covered products. 8) Defines "program operator" as a covered entity, or stewardship organization on behalf of a group of covered entities, that is responsible for operating a stewardship program. 9) Defines "sharps" as hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications. 10) Establishes a process where a stewardship organization can establish a stewardship program for covered drugs, or for home-generated sharps waste, or for both. September 20, 2018 Regular Board Meeting Agenda Packet- Page 62 of 134 Page 18 of 32 SB 212 (Jackson) Page 4 of 18 11) Requires a stewardship program for covered drugs to have specific requirements of its program operator including the requirement of a minimum number of collection sites; provisions for handling, transporting, and disposing of the covered drugs; the allowance of a mail-back program; an alternative form of collection and disposal of covered drugs if allowed under state and federal law; provisions for the collection of covered drugs from an ultimate user who is homeless, homebound, or disabled; provides for a service schedule that meets the needs of a collection site so that it is serviced often enough to avoid reaching capacity; and, demonstrated adequate funding for all administrative and operation costs to be borne by participating covered entities. 12) Requires a stewardship program for home-generated sharps waste to be a mail- back program; maintain an internet website and toll-free number for providing information about the program; provide for the handling, transport, and disposal of home-generated sharps waste; provide containers and mail-back materials at no cost to the ultimate user; provide the sharps waste container and mail-back materials at the point of sale to the extent allowed by law; provide reimbursement to local agencies for disposal costs related to home-generated sharps waste; and, demonstrate adequate funding for all administrative and operation costs to be borne by participating covered entities. 13) Requires a covered entity, no later than April 1, 2019, to provide a list of covered products,and a list and description of any covered products that it sells or offers for sale in the state to the Board. 14) Requires a program operator to conduct a comprehensive education and outreach program intended to promote participation in the stewardship program. 15) Requires a program operator, within six months of adoption of regulations by CalRecycle, to submit a Plan for the establishment and implementation of a stewardship program to CalRecycle, for approval. 16) Requires CalRecycle to approve a Plan submitted to it that meets the requirements of this bill. 17) Requires a program operator, at least 120 days before submitting a Plan to CalRecycle, to notify each potential authorized collector in the county or counties in which it operates of the opportunity to serve as an authorized collector. 18) Requires a retail pharmacy to make a reasonable effort to serve as an authorized collector. Requires a retail pharmacy chain, if there are not at least September 20, 2018 Regular Board Meeting Agenda Packet- Page 63 of 134 Page 19 of 32 SB 212 (Jackson) Page 5 of 18 five collection sites in a county, to have at least fifteen percent of its store locations serve as authorized collectors. 19) Requires a program operator to initiate operation of an approved stewardship program no later than 270 days after approval of the Plan by CalRecycle. 20) Requires CalRecycle to make all Plans submitted to it available to the public, except for proprietary information in the Plan. 21) Requires a program operator, at the time it submits a Plan to CalRecycle to submit an initial stewardship program budget for the first five calendar years of operation. 22) Requires a program operator, on or before March 31, 2022, and each year thereafter, to prepare and submit to CalRecycle both of the following: a written report describing the stewardship program activities during the previous reporting period of one year, and a written program budget for stewardship program implementation for the upcoming calendar year. 23)Requires the program operator to keep minutes, books, and records that clearly reflect the activities and transactions of the program operator's stewardship program and requires the program operator to be audited by an independent certified public accountant at least once each calendar year. Requires the program operator to provide the audit to CalRecycle. 24) Requires each covered entity, individually or through a stewardship organization, to pay all administrative and operational costs associated with establishing and implementing the stewardship program, including the cost of collecting, transporting, and disposing of covered products, as well as the regulatory and oversight costs of CalRecycle and any other state agency involved in this regulatory program. 25) Requires CalRecycle, on or before June 30, 2022, and at least annually thereafter, to post on its Internet Web site a list of covered entities, stewardship organizations, authorized collections sites, retail pharmacies, and retail pharmacy chains in compliance with the stewardship program. 26) Requires all handling, transport, and disposal undertaken as part of a stewardship program to comply with applicable state and federal laws, including, but not limited to,regulations adopted by the United State Drug Enforcement Agency (US DEA). 27) Requires CalRecycle to adopt regulations for implementation of the bill with an effective date no later than January 1, 2021. September 20, 2018 Regular Board Meeting Agenda Packet- Page 64 of 134 Page 20 of 32 SB 212 (Jackson) Page 6 of 18 28) Requires a covered entity to be in compliance with the provisions of the bill one year from the adoption of regulations by CalRecycle. 29) Requires a stewardship plan for covered drugs or home-generated sharps waste or both to include provisions to expand into local jurisdictions that currently have a local drug or home-generated sharps waste stewardship program, if that local jurisdiction repeals its local stewardship program. 30) Sets the amount of the administrative penalty CalRecycle may impose at up to $10,000 per day for violations of the bill, except for violations that are intentional, knowing or reckless, in which case the penalty may not exceed $50,000 per day. 31) Provides that the bill does not apply to a drug or sharp within a jurisdiction that is subject to a local stewardship program if that local program took effect before April 18, 2018. Requires, if that local ordinance is repealed, covered drugs or home-generated sharps waste to be in compliance with this bill within 270 days after the date the ordinance is repealed. 32) Provides that this bill shall preempt a local stewardship program for covered products enacted by an ordinance that has an effective date on or after April 18, 2018. Background 1) Pharmaceuticals. According to the U.S. Centers for Medicare & Medicaid Services, which publishes the National Health Expenditure Projections 2012- 2022, approximately $275.9 billion in prescription drugs were predicted to be prescribed in the US in 2014. However, 2014 expenditures were almost $100 billion more than predicted according to the IMS Institute for Healthcare Informatics. In an April 2015 study, IMS stated that spending rose 13%, to a total of$374 billion. After accounting for population growth and inflation, the increase equaled 10%. A record 4.3 billion prescriptions were filled in 2014." 2) Environmental contamination. There are two general sources of pharmaceutical contamination in the environment: human excretion and disposal. Estimates suggest that 3 to 50% of prescriptions become waste. United States hospitals and long-term care facilities annually flush approximately 250 million pounds of unused pharmaceuticals down the drain. It is unknown (if not impossible) to determine how much household pharmaceutical waste is flushed down the toilet. However, anecdotally waste water treatment facilities note that scraping pills off of water filtration systems is a problem, in addition to the removal of pharmaceutical agents from the water. September 20, 2018 Regular Board Meeting Agenda Packet- Page 65 of 134 Page 21 of 32 SB 212 (Jackson) Page 7 of 18 A study conducted by the United States Geological Survey from 1999-2000 sampled 139 streams across 30 states and found that 80% had measurable concentrations of prescription and nonprescription drugs, steroids, and reproductive hormones. Since the USGS released its report in 2002, a number of studies have demonstrated the low-level presence of pharmaceutical agents throughout the environment and water supply. Recent studies have found a variety of drugs in crops, such as cholesterol medications, caffeine, and triclosan. In a recent study, researchers found that the anticonvulsive epilepsy drug, carbamazepine, can accumulate in crops irrigated with recycled water and end up in the urine of produce-eaters not on the drug. The researchers found that while the amounts of the drug in a produce-eater's urine were four orders of magnitude lower than what is seen in the urine of patients purposefully taking the drug, there is a possibility that trace amounts could still have health effects in some people, such as those with a genetic sensitivity to the drugs, pregnant women, children, and those who eat a lot of produce, such as vegetarians. With the growing practice of reclaiming wastewater for crop irrigation, the produce contamination could become more common and more potent. California, which grows a large portion of US produce, currently uses reclaimed water for 6% of its irrigation needs. Additionally, as California's climate continues to change and the state endures longer droughts, recycling and reusing groundwater and surface water recharge will become more important and ensuring contamination prevention and removal will be more crucial. While the human effects of pharmaceutical agents in the environment are not fully understood,harm to aquatic organisms and ecosystems due to low levels of pharmaceutical agents are clearly established. Life-long exposure to ppb levels of an estrogen-based synthetic hormone resulted in complete population failure in fish due to the males failing to develop properly. Mood altering drugs, such as Prozac,lead to changes in the behavior of fish, making them easier prey. The presence of persistent antibiotics, particularly downstream from hospitals, September 20, 2018 Regular Board Meeting Agenda Packet- Page 66 of 134 Page 22 of 32 SB 212 (Jackson) Page 8 of 18 has been partially credited for the rise in resistant bacterial strains, which may also have an indirect human impact. 3) Diversion. a) President Bush 's Administration Recommendations. In February 2007, the White House Office of National Drug Control Policy, the Health and Human Services Agency, and the US Environmental Protection Agency released new Federal prescription drug disposal guidelines urging Americans to utilize pharmaceutical take-back locations because "improper drug disposal is a prescription for environmental and societal concern." b) SubstanceAbuse and Mental Health Services Administration 's National Survey on Drug Use and Health (NSDUH). According to the 2011 NSDUH more than six million Americans abuse prescription drugs. That same study revealed more than 70% of people abusing prescription pain relievers got them through friends or relatives, a statistic that includes raiding the family medicine cabinet. c) President Obama's Administration 's NationalDrug Control Strategy. In 2011, President Obama released a statement to Congress stating, "Every sector of our society is affected by drug use and the consequences of drug use. Drug use and its consequences hamper our Nation's ability to out- educate our global competitors and increase graduation rates. It lessens the ability of our workforce to be fully productive, and it takes the lives of too many fellow Americans. "Prescription drug abuse is America's fastest-growing drug problem, and one largely fed by an unlikely source—Americans' medicine cabinets. The passage of the Secure and Responsible Drug Disposal Act of 2010 will save lives by providing patients with safe, environmentally sound ways to dispose of unused or expired prescription drugs. "By taking a balanced approach to drug policy, one that emphasizes both public health and public safety, we can help make our neighborhoods and communities even stronger." d) National Strategy on Preventing Prescription Drug Abuse. The Obama administration has identified four major areas to reduce prescription drug abuse: education, monitoring, proper medication disposal,and enforcement. In particular, the national strategy includes action to "develop convenient and environmentally responsible prescription drug September 20, 2018 Regular Board Meeting Agenda Packet- Page 67 of 134 Page 23 of 32 SB 212 (Jackson) Page 9 of 18 disposal programs to help decrease the supply of unused prescription drugs in the home." 4) United States Drug Enforcement Agency (DEA) regulation. Prior to 2010, as a matter of federal law, individuals who wanted to dispose of unused, unwanted, or expired pharmaceutical controlled substances only had limited disposal options because the federal Controlled Substances Act(21 U.S.C. Sec. 801 et seq.)only permitted individuals to either destroy those substances themselves (such as by flushing or discarding), surrender them to law enforcement, or otherwise seek assistance from the Drug Enforcement Administration (DEA). According to the DEA, these restrictions resulted in the accumulation of pharmaceutical controlled substances in household medicine cabinets that were available for abuse,misuse, diversion, and accidental ingestion. In 2010, the federal Secure and Responsible Drug Disposal Act of 2010 (Disposal Act) was enacted, amending the Controlled Substances Act to authorize certain individuals ("ultimate users")to deliver their pharmaceutical controlled substances to another person for the purpose of disposal in accordance with regulations promulgated by the US Attorney General. In September of 2014, the DEA issued its final rule implementing the Disposal Act and governing the secure disposal of controlled substances by registrants and ultimate users. Those regulations have expanded the options available to collect controlled substances from ultimate users for the purpose of disposal, including take-back events, mail-back programs, and collection receptacle locations and, among other things, allow authorized manufacturers, distributors, reverse distributors, narcotic treatment programs, hospitals/clinics with an on-site pharmacy, and retail pharmacies to voluntarily administer mail- back programs and maintain collection receptacles. While the changes to federal law are rather recent, there has already been a significant pushto increase the use and availability of secure drug take-back programs both across the nation and in this state. For example, one major retailer, Walgreens, announced in 2016 that it has begun to install safe medication disposal kiosks in more than 500 drugstores in 39 states and Washington, D.C. to make the disposal of medications — including opioids and other controlled substances —easier and more convenient while also helping to reduce the misuse of medications and the rise in overdose deaths. 5) Medical sharps: An estimated one million Californians inject medications outside traditional health care facilities, which generate approximately 936 September 20, 2018 Regular Board Meeting Agenda Packet- Page 68 of 134 Page 24 of 32 SB 212 (Jackson) Page 10 of 18 million sharps each year which then need to be properly disposed. The numbers of patients using injectable medications will continue to grow because it is an effective delivery method for various medications. The most common home use of sharps is to manage diabetes. Other reasons to inject at home include hepatitis, multiple sclerosis, infertility, migraines, allergies, hemophilia, and medications for pets. According to statistics from CalRecycle, 43% of all self-injectors throw needles in the trash. 6) Sharps collection: Home-generated sharps waste is required to be put into an approved sharps container before being transported out to an approved drop-off location or via mail-back program. CalRecycle maintains the Facility Information Toolbox(FacIT)Website, which currently lists more than 600 facilities where residents can take their home-generated sharps such as hospitals, pharmacies, or household hazardous waste (HHW) facilities. While disposal of sharps in landfills is illegal, there is no statewide statutory program in place to require the management of sharps by manufacturers, pharmaceutical companies, pharmacies, or others. Current law allows for a streamlined oversight structure for those that do wish to provide a voluntary disposal for sharps to their customers or the general public, but there is no mandate for them to do so. Some pharmacies and health care providers have developed programs as a way to assist their customers and have reported some success. 7) Sharps collection requirements under the MWMA: CDPH has the authority to approve locations as points of consolidation for the collection of home- generated sharps waste, which, after collection, is transported and treated as medical waste. An approved consolidation location is known as a "home- generated sharps consolidation point." A home-generated sharps consolidation point must comply with all of the following requirements: (1) All sharps waste shall be placed in sharps containers; and, (2) sharps containers ready for disposal shall not be held for more than seven days without the written approval of the enforcement agency. 8) Background on take-back programs. a) DEA Take-backprograms. The DEA's Take-Back events are a significant piece of the White House's prescription drug abuse prevention strategy released in 2011 by the Office of National Drug Control Policy. "Drug Take-Back Days," which are typically administered by law enforcement in conjunction with county health offices or other local government agencies, are one-time events that allow for individuals to dispose of prescription or non-prescription medications; following the collection, the pharmaceuticals September 20, 2018 Regular Board Meeting Agenda Packet- Page 69 of 134 Page 25 of 32 SB 212 (Jackson) Page 11 of 18 are taken to a safe disposal site. The DEA's seventh National Take-Back Day in October 2013 collected 324 tons of expired and unwanted medications across all 50 states. Since the inception of the National Take-Back Day in 2010, the DEA has collected over 3.4 million pounds ofinedicine from circulation. The next national collection event is scheduled for April 29, 2017. b) International take-backprograms. In 1999, British Columbia established the "Post-Consumer Pharmaceutical Stewardship Association" (PCPSA)to establish a pharmaceutical drug take-back program funded by manufacturers. Manufacturers are required to pay for the cost of collecting and managing the program; they are not required to pay for cost of agency oversight. Currently, over 100 companies participate in the PCPSA. Within British Columbia, 95% of pharmacies choose to participate in the program, accounting for over 1,000 collection sites. In 2009, the program diverted 112,000 pounds of medication from improper disposal or abuse for an estimated cost of$400,000. Australia established a national collection system in place since 1998. The European Union has required a national collection system for unused or expired medicines since 2004. c) Take-backprograms in the US. Locally run take-back programs are prevalent throughout the US. A few states, such as Michigan and Maine, have enacted laws to facilitate the collection of pharmaceutical waste at locations such as pharmacies (MI) or to create mail-back programs for pharmaceutical waste (ME). Recreational marijuana is now legal in Colorado,however it remains highly regulated at the federal level and has a high diversion potential. In response to Colorado's recreation marijuana use statute, the Colorado Springs Airport installed two marijuana take-back bins, providing a location for travelers to safely and legally dispose of their marijuana. d) SB 966Model Guidelines in CA. Under the California Integrated Waste Management Act (SB 966, Simitian, Kuehl, Chapter 542, 2007), CalRecycle created a model collection program for household hazardous substances, such as pharmaceuticals, and evaluated how local programs implemented take-back programs. Programs that followed the model September 20, 2018 Regular Board Meeting Agenda Packet- Page 70 of 134 Page 26 of 32 SB 212 (Jackson) Page 12 of 18 guidelines were released from any liability associated with collecting home-generated pharmaceuticals. The model program sunsetted on January 1, 2013. e) Local programs in CA. In 2010, CalRecycle identified 297 take-back programs in California. This includes one-time take-back events, continuous take-back programs, and mail-back programs. The majority of these programs are funded and run by local governments, although San Francisco has a program that is partially funded by PhRMA and Genetech. In 2012, Alameda County passed a first in the nation Safe Drug Disposal Ordinance (based on the British Columbian model) that requires producers of covered drugs to operate take-back programs, including the creation, administration, promotion, and payment of the program. The ordinance was challenged by Pharmaceutical Research and Manufacturers of America, Generic Pharmaceutical Association, and Biotechnology Industry Organization on the basis that the ordinance violates the dormant Commerce Clause for interstate commerce and discriminates against out- of-county producers. In August 2013, the US District Court upheld the ordinance, although litigation is ongoing. Several other California counties are considering similar ordinances. In 2010, San Francisco introduced a Safe Drug Disposal Ordinance. However, in 2012 the city chose to instead accept$110,000 from PhRMA and Genentech to fund a pilot project to collect data on the issue. In August 2013 the same two organizations provided another payment of$125,000 to fund the pilot project an additional year. A separate Safe Drug Disposal Information Ordinance was passed in May 2011 to supplement the PhRMA-funded pilot program by requiring pharmacies that won't host a bin to advertise those that do. The Safe Medicine Disposal Pilot program has been well-utilized, with over 37,000 pounds collected in the first 26 months. Following the US 9th Circuit Court of Appeals ruling upholding Alameda's ordinance, San Francisco Board President David Chiu reintroduced a San Francisco ordinance on October2l, 2014. Board President Chiu was elected to the California State Assembly in November 2014 and Supervisor London Breed became the author of the ordinance which was passed unanimously and was signed by Mayor Lee on March 26, 2015 and enacted 30 days after signing. September 20, 2018 Regular Board Meeting Agenda Packet- Page 71 of 134 Page 27 of 32 SB 212 (Jackson) Page 13 of 18 In recent years numerous other local governments have either adopted or are considering adoption of similar ordinances, including, but not limited to: Contra Costa,Marin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara and Los Angeles. 7) Walgreens'National Retail Leadership. In 2016 Walgreens became the first retailer to implement an ongoing national stewardship program by installing safe medication disposal kiosks in more than 500 drugstores in 39 states and Washington, D.C. to make the disposal of medications — including opioids and other controlled substances—easier and more convenient while helping to reduce the misuse of medications and the rise in overdose deaths. In a Walgreens press release announcing the program, Richard Ashworth, Walgreens president of pharmacy and retail operations said "Walgreens pharmacists play an important role in counseling patients on the safe use of their medications, and now we are leading the way in retail pharmacy's fight against prescription drug abuse." 8) Extended producer responsibility. CalRecycle defines EPR as a strategy to place a shared responsibility for end-of-life product management on the producers, and all entities involved in the product chain, instead of the general public; while encouraging product design changes that minimize a negative impact on human health and the environment at every stage of the product's lifecycle. This allows the costs of treatment and disposal to be incorporated into the total cost of a product. It places primary responsibility on the producer,or brand owner, who makes design and marketing decisions. It also creates a setting for markets to emerge that truly reflect the environmental impacts of a product, and to which producers and consumers respond. By shifting costs and responsibilities of product disposalto producers and others who directly benefit, EPR provides an incentive to eliminate waste and pollution through product design changes. There are a number of existing, statewide EPR programs for various products, including, but not limited to,paint, used oil, and, most recently, mattresses. Comments 1) Purpose of Bill. According to the author, "For too long, our communities have dealt with the impacts from improperly disposed pharmaceutical drugs and medical sharps. The cost of inaction has been enormous to our public health, environment, water quality, and public safety. This bill establishes an industry- run and funded program, overseen by the state, that will ensure we provide convenient locations for Californians to safely dispose of their unused September 20, 2018 Regular Board Meeting Agenda Packet- Page 72 of 134 Page 28 of 32 SB 212 (Jackson) Page 14 of 18 prescriptions and other medical waste. This is an important step to finally getting unused and discarded medical products out of our public spaces,municipal waste systems, and our environment." 2) Referral to the Committee pursuant to Senate Rule 29.10. SB 212, as heard by the Senate Environmental Quality Committee, would have defined "Home- generated pharmaceutical waste" as a prescription or over-the-counter human or veterinary home-generated pharmaceutical, as defined in Section 109925 of the Federal Food,Drug, and Cosmetic Act, as amended (21 U.S.C.A. Sec. 321(g)(1)), that is a waste, as defined in Section 25124, derived from a household, including, but not limited to, a multifamily residence or household. The bill was amended to its current form in the Assembly. Consistent with Senate Rule 29.10(d) the Senate Rules Committee has referred the amended bill to the Senate Environmental Quality Committee for a hearing of the amendments. Related/Prior Legislation SB 1229 (Jackson and Stone, Chapter 238, Statutes of 2016) This bill provides certain collectors that are authorized under federal law to engage in drug take-back collection with limited protection from civil and criminal liability (or "qualified immunity") for any injury or harm that results from a collector maintaining a secure drug take-back bin on its premises, provided that the collector, not for compensation, acts in good faith to take specified steps to ensure the health and safety of consumers and employees and the proper disposal of the home-generated pharmaceutical waste contained in the secure drug take-back bin. This qualified immunity shall not apply in the case of personal injury or wrongful death which results from the collector's gross negligence or willful or wanton misconduct in maintaining a secure drug take-back bin. AB 45 (Mullin, 2016) requires CalRecycle, in consultation with affected industries, to adopt one or more model ordinances for a comprehensive program for the collection of HI-IW for adoption by a local jurisdiction that provides for the residential collection and disposal of solid waste. AB 45 was discussed in the Senate Committee on Environmental Quality, however a vote of the committee was not taken at request of the author. AB 2039 (Ting, 2016) proposes building on the models of the aforementioned programs to develop EPR for home-generated medical sharps. This bill was referred to the Assembly Committee on Environmental Safety and Toxic Materials. Hearing was cancelled at request of the author. September 20, 2018 Regular Board Meeting Agenda Packet- Page 73 of 134 Page 29 of 32 SB 212 (Jackson) Page 15 of 18 SB 1014 (Jackson,2014) establishes the Home-Generated Pharmaceutical Waste Collection and Disposal Act. SB 1014 passed the Senate Committee on Environmental Quality on a vote of 5 to 1. The bill was held in the Assembly Appropriations Committee by request of the author. AB 403 (Stone/Eggman, 2013) proposed requiring manufacturers that sell medical sharps to establish a product stewardship plan for home-generated medical waste. AB 403 was held in the Assembly Appropriations Committee by request of the author. AB 333 (Wieckowski, Chapter 564, Statutes of 2013) makes various changes to the Medical Waste Management Act. AB 467 (Stone, Chapter 10, Statutes of 2013) creates a licensure category for a surplus medication collection and distribution intermediary. SB 727 (Jackson, 2013) requires a producer of a pharmaceutical sold in this state, individually or through a stewardship organization, to submit a plan to CalRecycle by January 1, 2015. This bill was referred to the Senate Environmental Quality Committee. Hearing was cancelled at request of the author. AB 1442 (Wieckowski, Chapter 689, Statutes of 2012) defines pharmaceutical waste, exempted the waste generator from certain hauling requirements, and allowed the waste to be transported by a common carrier in order to reduce costs for handling expired pharmaceutical wastes. SB 966 (Simitian/Kuehl, Chapter 542, Statutes of 2007) requires the Integrated Waste Management Board to identify and develop model programs for the safe disposal of household generated pharmaceutical waste. AB 2335 (Saldana, Chapter 166, Statutes of 2006) makes various clarifying changes to the MWMA with the aim of reducing medical waste management costs and clarifying the complex regulatory framework. SB 1305 (Figueroa, Chapter 64, Statutes of 2006) prohibits a person from knowingly placing home-generated sharps waste in the commercial and residential solid waste collection containers after September 1, 2008. SB 1362 (Figueroa, Chapter 157, Statutes of 2004) allows a household hazardous waste collection facility to operate as a home-generated sharps consolidation point if certain conditions are met. The bill also allows a city or county HHW Element to collect, treat, and dispose of household sharps. September 20, 2018 Regular Board Meeting Agenda Packet- Page 74 of 134 Page 30 of 32 SB 212 (Jackson) Page 16 of 18 SB 407 (Alpert, Chapter 139, Statutes of 1999) authorizes the use of chemical disinfection as a treatment method for certain types of laboratory-generated medical waste if specified requirements were met. SB 1966 (Wright, Chapter 536, Statutes of 1996) moved the management and handling of waste pharmaceuticals under DPH and the MWMA and reestablished fee authorities for DPH for small quantity medical waste generators. SB 372 (Wright, Chapter 877, Statutes of 1995) makes various changes to the MWMA, including revisions to the definition of large quantity generator, medical waste exclusions, and storage. The bill also incorporated additional classes into the definition of medical waste and authorized the use of high temperatures to treat medical waste prior to disposal. SB 1360 (Committee on Health and Human Services, Chapter 415, Statutes of 1995) moved the MWMA to the DPH during Governor Wilson's reorganization of the Department of Health Services to DPH and the California Environmental Protection Agency. SOURCE: Author SUPPORT: Alameda County Board of Supervisors Butte County Board of Supervisors California Association of Environmental Health Administrators California Cattlemen's Association California Product Stewardship Council California. Resource Recovery Association California School Employees Association, AFL-CIO California State Association of Counties California Teamsters Californians Against Waste Central Contra Costa Sanitary District City of Chula Vista City of Palo Alto City of Santa Monica City of Sunnyvale City of Thousand Oaks City of Torrance City of West Hollywood September 20, 2018 Regular Board Meeting Agenda Packet- Page 75 of 134 Page 31 of 32 SB 212 (Jackson) Page 17 of 18 Communities Against Abuse of Prescription Drugs County Health Executives Association of California County of Humboldt County of Sacramento County of Santa Clara County of Mendocino County Sanitation Districts of Los Angeles County Covanta Del Notre Solid Waste Management Authority Delta Diablo Dublin San Ramon Public Services District East Bay Municipal Utility District Gallinas Watershed Council GreenWaste Groundwater Resources Association of California Heal the Bay Las Galhnas Valley Sanitary District League of California Cities Long Beach Gray Panthers Los Angeles County Solid Waste Management Committee/Integrated Management Task Force Medical Waste Services Mendocino Solid Waste Management Authority Metropolitan Recycling, LLC Monterey County Prescribe Safe Initiative Monterey Regional Waste Management District Mojave Desert & Mountain Recycling Authority National Stewardship Action Council Orange County Sanitation District Prescribe Safe Monterey County ReThinkWaste Riverside County Department of Waste Resources Rural County Representatives of California Salinas Valley Solid Waste Authority San Benito County Integrated Waste Management San Joaquin County Save the Bay Shasta County Solid Waste Association of North America Sonoma County Waste Management Agency Stop Waste Surfrider Foundation September 20, 2018 Regular Board Meeting Agenda Packet- Page 76 of 134 Page 32 of 32 SB 212 (Jackson) Page 18 of 18 Surfrider Foundation, Los Angeles Upper Valley Waste Management Agency Watershed Alliance of Marin Western Placer Waste Management Authority Western United Dairymen 7t Generation Advisors OPPOSITION: Association for Accessible Medicines Health Distributors Alliance Lupin Pharmaceuticals Otay Water District Pharmaceutical Research and Manufacturers of America (PhRMA) -- END -- September 20, 2018 Regular Board Meeting Agenda Packet- Page 77 of 134