Department of Toxic Substances Control · PDF file · 2017-11-092017-11-09 · Department of Toxic Substances Control Matthew Rodriquez Secretary for Environmental Protection Barbara

Department of Toxic Substances Control

Matthew Rodriquez Secretary for

Environmental Protection

Barbara A. Lee, Director 1001 “I” Street P.O. Box 806

Sacramento, California 95812-0806

Edmund G. Brown Jr.

Governor

Printed on Recycled Paper

November 9, 2017 Mr. Gideon Kracov, Chairman DTSC Independent Review Panel Department of Toxic Substances Control 1001 I Street Sacramento, California 95814 Mr. Mike Vizzier Vice Chair DTSC Independent Review Panel Department of Toxic Substances Control 1001 I Street Sacramento, California 95814 Ms. Arezoo Campbell, Member DTSC Independent Review Panel Department of Toxic Substances Control 1001 I Street Sacramento, California 95814 Dear Panel Members: For nearly two years, the Department of Toxic Substances Control (DTSC) has worked with the Independent Review Panel (IRP) to fulfill its statutory mandate. Through this forum, DTSC has presented to the IRP a number of strategies and initiatives undertaken by DTSC to better protect public health and the environment. As previously discussed with the Panel, DTSC is providing the IRP with a summary of process improvements initiated during the last few years to increase the level of environmental protection while improving the quality and efficiency of the programs that enforce state and federal environmental protection statutes. We are committed to continuously improving the quality of our programs and engaging our community across the state to shape DTSC’s path forward. We appreciate the IRP members for being an important part of this process.

Mr. Gideon Kracov Mr. Mike Vizzier Ms. Arezoo Campbell November 9, 2017 Page 2 Enclosed you will find a detailed summary of DTSC’s progress towards instituting continuous quality improvement. Sincerely,

Barbara A. Lee Director Enclosure

Department of Toxic Substances Control

Process Improvements Summary for the

Independent Review Panel

November 2017

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S T A T E O F C A L I F O R N I A

Edmund G. Brown, Jr. Governor

Matthew Rodriguez Secretary, Environmental Protection Agency

Barbara A. Lee Director, Department of Toxic Substances Control

Francesca Negri Chief Deputy Director, Department of Toxic Substances Control

Department of Toxic Substances Control 1001 J Street P.O. Box 4025

Sacramento, CA 95812-4025

www.dtsc.ca.gov/PublicationsForms

http://www.dtsc.ca.gov/PublicationsForms


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TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................................ 1

DTSC PERFORMANCE MANAGEMENT STRATEGIES .................................................... 5

CROSS-PROGRAM COORDINATION .................................................................................... 7

ENSURING REGULATORY WORK IS PROPERLY RESOURCED ................................ 13

HAZARDOUS WASTE MANAGEMENT PROGRAM ......................................................... 19

BROWNFIELDS AND ENVIRONMENTAL RESTORATION PROGRAM ....................... 37

SAFER PRODUCTS AND WORK PLACES PROGRAM................................................... 51

PUBLIC ENGAGEMENT .......................................................................................................... 57

ENVIRONMENTAL CHEMISTRY LABORATORY .............................................................. 65

INFORMATION TECHNOLOGY ............................................................................................. 69

LEAN SIX SIGMA PROJECTS ............................................................................................... 73

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EXECUTIVE SUMMARY

This report includes a number of strategies and initiatives undertaken by the Department of Toxic Substances Control (DTSC) to better protect public health and the environment. Background information is provided for context; however, the focus of the report is on DTSC’s recent implementation of program and process improvements, with

measurable performance objectives. Together, they demonstrate DTSC’s commitment

to improving the quality of its services and products. Examples of specific projects, programs or events Success stories are included in this report, along with the 2016 DTSC Programs and Accomplishments Report (http://www.dtsc.ca.gov/InformationResources/upload/DTSC-2016-Accomplishments-Report.pdf), to illustrate the result of these efforts.

This report starts with a description of Department-wide efforts to strengthen DTSC’s

performance management strategies, support coordination between DTSC’s core and

support programs, and leverage DTSC’s resources as mandates increase. These enterprise initiatives are followed by program-specific overviews, highlights of accomplishments, operational activities, and staff-driven endeavors to make DTSC more efficient while ensuring the public and environment are protected.

DTSC Performance Management Strategies

Over the last several years, DTSC has implemented phased improvements to fulfill its mission to protect California’s people and environment from the harmful effects of toxic

substances. More detailed descriptions of improvements by various DTSC programs and offices follow a summary description of this work. Over the course of 2016 and 2017, DTSC shared elements of these ongoing efforts with its Independent Review Panel (IRP or Panel) and incorporated input from the Panel into DTSC’s operations. Similarly, DTSC developed program improvements in collaboration with sister agencies within the state, regulatory partners at the federal and local level, and members of the public.

Cross-Program Coordination

DTSC recognizes that cross-program coordination presents an opportunity for improvement and appreciates the feedback it has received from its external partners. DTSC is embedding environmental justice, scientific and technical advancements, and quality management into all its programs, along with the core values of respect, diversity and inclusion, and striving for continuous improvement. To coordinate this work across the Department, DTSC will continue to improve its overall organizational health by

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implementing initiatives and strategies specifically focused on improving communication between all programs within the Department.

Ensuring Regulatory Work is Properly Resourced

DTSC continues to consider how to ensure its funding structure keeps pace with increased mandates and a growing need for its services. Though recent changes to the Hazardous Waste Control Account have relieved some pressure, the fees that fund this account do not always cover the cost of managing the State’s hazardous waste. Similarly, the Toxic Substances Control Account may not have sufficient funding to cover future operations and management costs at federal cleanup projects requiring long-term oversight by the State. DTSC continues to evaluate the best means of leveraging its resources while also modernizing its fiscal management systems, both internally through cost recovery processes and externally though upgraded information technology improvements.

Hazardous Waste Management Program (HWMP)

HWMP and enforces California’s Hazardous Waste Control Law. In 2015 and 2016,

HWMP implemented several key initiatives to improve program performance. These included a two-year Permitting Enhancement Work Plan, a Permitting Backlog Reduction Initiative, an Enforcement Program Enhancement Initiative, and ten Lean Six Sigma projects targeting measurable improvements in specific processes in permitting, enforcement and criminal investigations.

Brownfields and Environmental Restoration Program (Cleanup Program)

The Cleanup Program restores and safeguards communities through the investigation and cleanup of contaminated properties. Currently, the Cleanup Program is undertaking the largest residential cleanup in State history, and one of the largest in the country, in the community around the Exide Facility in Vernon, California. The Cleanup Program is also working on process improvements, such as developing and deploying a Spatial Prioritization Geographic Information Tool, enhancing the voluntary cleanup program and developing regulations for Toxicity Criteria and Post-Closure. The Program is also working on enhancing remedy selection for corrective actions and on three Lean Six Sigma projects.

Safer Products and Work Places Program (SPWP)

SPWP houses the Health and Safety Branch (HSP), which keeps all DTSC staff protected and productive in the office and out in the field, and the Safer Consumer Products Branch (SCP), which is charged with accelerating the quest for safer

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chemicals in consumer products. HSP continues to provide statewide training to more than 1,000 staff each year. SCP has developed processes to implement the first three steps of the mandated four-step regulatory process for analyzing selected chemicals of concern in priority consumer products. Program staff embraced a culture of continuous improvement from the outset. As each regulatory step is developed and implemented, staff reviews the processes and identifies lessons-learned. SCP completed a Lean Six Sigma project to increase the efficiency of the process used to develop Priority Product profiles.

Office of Environmental Justice and Tribal Affairs (EJ and Tribal Affairs)

EJ and Tribal Affairs has established new processes and procedures in its work with other programs and in building relationships with communities. EJ and Tribal Affairs is actively consulting with tribes to establish early outreach protocols for projects that involve activities that may disturb cultural, archeological or natural resources. It also is working with HWMP to consult with tribes and develop environmental justice analyses early in the permit application or renewal process.

Office of Public Participation (OPP)

OPP is developing a work plan to create flexible processes that better meet the needs of individual communities, provide quick and easy access to information, provide early public involvement and establish ongoing regional relationships with communities. It includes additional meetings, briefings, fact sheets, extended comment periods, and the establishment of advisory groups. Changes implemented include mailing list process improvements, internal coordination between programs, the addition of technical advisors, community networking, a Spanish-speaking media focus, and the enhanced use of social media.

Office of Communications (OC)

The OC is developing a comprehensive communications strategy to increase transparency and inform the public and stakeholders of activities, services, and successes. The OC manages internal and external communications through various platforms involving print, web, and video products. As such, the OC is evaluating DTSC’s website and media presence to ensure stakeholders and community members can learn about projects in their neighborhood and understand how DTSC works to protect people and the environment.

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Environmental Chemistry Laboratory (ECL)

The ECL is the reference laboratory for the State of California. In that capacity, ECL provides DTSC and other boards, departments, and offices within the California Environmental Protection Agency (CalEPA) with expertise and laboratory capacity in the areas of analytical and environmental chemistry. Scientists identify and measure concentrations of toxic chemicals in many different media including air, water, soil, hazardous waste streams, and biological or human tissues. These efforts require the application or adaptation of existing procedures as well as the development of new analytical methods when needed. ECL has implemented a series of quality improvement initiatives as it pursues ISO 17025 international laboratory quality management standard. Achieving this accreditation will provide an additional, independent, measure of the quality of the work produced by the lab. In addition, ECL has upgraded analytical equipment and is engaged in the State’s process to replace

and upgrade the Laboratory Information System.

Office of Environmental Information Management (OEIM)

OEIM is responsible for the implementation, enhancement, and maintenance of DTSC’s

computer systems and supporting infrastructure. OEIM provides support for equipment, email, calendaring, purchasing, and training, as well as help desk support to all DTSC staff. With all technological enhancements at DTSC, OEIM assists programs in developing innovative procurement approaches and coordinating all aspects of the most complex and sensitive acquisitions related to information technology (IT) projects.

Lean Six Sigma Projects

DTSC implemented a total of 14 Lean Six Sigma Projects, which are discussed throughout this report. The Lean Six Sigma methodology addresses process-based issues that cause delays in services to both internal and external stakeholders. Ten (10) of DTSC’s projects were pursued through the Governor’s Office of Business and

Economic Development (GO-Biz) Green Belt Certification, and three through the U.S. Environmental Protection Agency’s (U.S. EPA) Green Belt Certification. In addition, the

Permitting Division pursued one project internally using the tenets of Lean Six Sigma methodology and arranged for 12 employees to attend a one-day U.S. EPA Yellow Belt training provided in July 2016.

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DTSC PERFORMANCE MANAGEMENT STRATEGIES

In December of 2015, Director Barbara Lee and the Executive Management Team provided an overview of the DTSC and its vision for improvement to the IRP. This vision was laid out in four main goals: enhance accountability, improve relationships with the communities we serve, establish a sustainable framework for ensuring continued success, and ensure the cost of performing its regulatory work is properly resourced. To achieve those goals, DTSC’s staff have led several initiatives across multiple programs

to ingrain organizational excellence into their daily work and make DTSC an exceptional place to work.

Vision for Improvement

DTSC’s management supports the staff’s dedication to owning and taking pride in their

work. Employees are DTSC’s most valuable resource, and their dedication enables the

organization to fulfill its mission. Respect for this mission and the staff motivates the executive management team to align DTSC’s priorities at all levels of the organization.

Staff will see their hard work at the heart of the strategic planning process and in the long-term success of DTSC.

Creating a forward-looking Department

Initiatives over the last few years set performance metrics for short-term improvements, but as DTSC cast a wider net of enhancements beyond core programs, the vision for improvement transformed into a longer-term outlook. Historically, DTSC based performance metrics on annual work plan commitments and whether those

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commitments were met. Program outputs, such as actions taken and units of work completed, were measured. In the last two years DTSC has begun tracking measures of program performance, in particular, timeliness and efficiency, but also other performance aspects.

Through the strategic planning effort now under way, the performance metrics developed from ongoing programmatic and Department-wide initiatives will be mission-driven. By implementing sophisticated, cross-functional performance metrics that can be measured against strategic goals, DTSC is developing an organization that is capable of ongoing and sustainable success. In other words, management will be tracking annual commitments as well as evaluating whether those commitments are propelling DTSC toward better accountability, stronger relationships with stakeholders, aligned regulatory costs, and a culture of continuous improvement.

Where we are today

Department-wide initiatives are converging with programmatic initiatives in a bottom-to-top approach to developing the 2018-2021 Strategic Plan. This grassroots tactic enables DTSC to establish long-term strategic goals based on its vision and core values, and define success in terms of progress toward achieving its mission. In addition to the performance metrics generated by DTSC, the Department is considering recommendations from the IRP and other stakeholders.

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CROSS-PROGRAM COORDINATION

Throughout meetings between November 2016 and October 2017, the IRP requested general information about DTSC, including budget change proposals, recently enacted legislation and promulgated regulations, reporting obligations, and ongoing initiatives. DTSC responded to 15 requests about overarching and miscellaneous topics and Organizational Excellence initiatives via reports, presentations, and other supplemental information.

For more information, visit the IRP’s web page at

http://www.dtsc.ca.gov/GetInvolved/ReviewPanel/Independent-Review-Panel.cfm.

Overarching and Miscellaneous and Organizational Excellence Information Requests to DTSC 15 Recommendations for the Governor and Legislature 0 Recommendations for DTSC 0 Recommended Goals and Performance Metrics 0

This section highlights some of the collaborative work with the IRP and provides an update as to where DTSC stands on implementing the various initiatives, including developing a holistic, fully-integrated Strategic Plan following best-practice methodology. To prepare for the Strategic Plan, we will focus on organizational excellence as a necessary first step, followed by ensuring that the organization and staff are aligned, and that the leadership team has the knowledge and capabilities they need to be successful.

Strategic Plan 2018-2022

DTSC is developing its next Strategic Plan with active engagement from the management team and input from staff. The Strategic Plan will also be informed by external events, work cross-functionally and be able to adapt and change as needed.

Division and Branch Chiefs in HWMP and the Cleanup Program have completed their training on strategic planning and performance metrics and have submitted draft program-level strategic plans to the DTSC Executive Team for review and approval. Other program plans are nearing completion.

The Executive Team is integrating these program plans with the recommendations from the Organizational Health Assessment and the Diversity and Inclusion Work Group. The team is also refining DTSC’s mission and vision statements as well as its core values,

looking towards 2020 and beyond. The team plans to engage staff at key points in the development of the Strategic Plan, and to also seek input from stakeholders.

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Organizational Health Assessment

The first initiative launched was an Organizational Health Assessment that gauged employees’ knowledge and perspective to establish a benchmark for tracking progress,

and to get a snapshot of DTSC’s current culture. The survey and focus groups sought to identify strengths and opportunities for improvement, and develop change resiliency strategies at all levels of the organization. The focus groups emphasized management and organizational structure, communication and decision-making processes.

The Organizational Health Assessment included a best practices methodology for collecting and analyzing qualitative and quantitative data directly from staff. The survey response rate was 76 percent: 789 employees responded to the survey and provided 3,118 comments in response to open-ended questions. In addition, 20 senior staff and 15 program staff were interviewed, and more than 100 staff participated in 12 focus group sessions.

The final report will include recommendations DTSC executive staff will use to develop objectives, strategies, and performance metrics to be incorporated into DTSC’s strategic

planning process. It will be released in Fall 2017. The DTSC Strategic Program Development Team is also developing a performance management system to increase transparency and accountability.

Workforce and Succession Planning

DTSC’s Office of Administrative Services is on track with developing Recruitment and

Succession Plans to increase the number of candidates, with the right skills, to fill vacant positions, and to build capacity among current employees to succeed in key leadership positions when they become vacant. These plans are scheduled to be completed in the Fall 2017.

The Office of Administrative Services is also developing an online New Employee Orientation to improve the onboarding process, ensuring new employees have the information they need to be effective in their jobs. This online training is being finalized and will incorporate information recommended by the Diversity and Inclusion Work Group (see below).

Leadership Training

Leadership development is a crucial element in creating organizational excellence. DTSC established a Leadership Academy, including training for supervisors and managers, and a pilot program for aspiring leaders. This program will enhance the skills of journey level analysts, engineers, scientists, and others who aspire to assume

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leadership positions. Academy courses include communicating effectively, cultural proficiency, team motivation, conflict resolution, and succession planning.

The DTSC Leadership Academy pilot program graduated its first cohort of first- and second line supervisors in May 2017. Feedback from this pilot program will be used to further strengthen the course curriculum. The Academy will offer a second program in January 2018.

The Aspiring Leaders Program course also graduated its first cohort in May 2017, and the second cohort began mid-September 2017. The Program is using feedback from these courses to improve the course curriculum. This program is designed to develop the next generation of DTSC leaders who demonstrate a vision for enterprise-wide thinking, strong potential for upward mobility, and experience carrying out their organization’s mission and vision. The program consists of seven courses covering a variety of topics similar to those of the Leadership Academy.

Five of six HWMP and Cleanup Program Division Chiefs have completed the Leadership for the Government Executive program with California State University, Sacramento (CSUS). The DTSC Leadership Academy curriculum is aligned with the CSUS program, so there will be continuity between the two programs. The sixth Division Chief from the Office of Criminal Investigations (OCI), participated in a 104-hour Management Training Course provided by the Commission on California Police Officer Standards and Training in November 2016.

The Executive Management Team has received executive-level training that builds on the same core competencies emphasized in the Leadership Academy, and will engage in ongoing training as part of DTSC’s commitment to strengthening leadership

competencies to support the organization.

Diversity and Inclusion Work Group

In September 2016, DTSC launched a Diversity and Inclusion Work Group to recommend strategies and best practices to support DTSC’s development as an

employer of excellence. The group is composed of 16 staff members from offices statewide who bring a broad range of professional and life experiences, both in and out of state service. The Work Group is sponsored by DTSC’s Chief Deputy Director, the

Deputy Directors for SPWP and OPP, and the Assistant Director for EJ and Tribal Affairs.

The Diversity and Inclusion Work Group started by learning about issues related to diversity and inclusion in the workplace, including how other progressive employers are addressing these areas. They reviewed DTSC’s practices and policies, and are

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preparing recommendations to achieve a sustainable culture of inclusion and diversity throughout DTSC.

The Work Group will release a report on their recommendations in late 2017. DTSC will also use this report to develop objectives, strategies, and performance metrics in its strategic planning process.

Office of Environmental Justice and Tribal Affairs

EJ and Tribal Affairs was created with the 2016-2017 Budget Act. This new program is building on DTSC’s efforts to enhance protections for vulnerable communities, and

ensure that those most impacted by multiple sources of pollution have a voice in the decision-making process. Under the direction of the Assistant Director for EJ and Tribal Affairs, staff collaborates with impacted communities and government agencies to promote equitable data collection and communication, improve public access to technical resources and decision-makers, and enhance protections for vulnerable communities. EJ and Tribal Affairs has nine staff, including environmental scientists and analysts, in Sacramento and Chatsworth.

Office of Public Participation

OPP was created as a standalone office with the 2016-2017 Budget Act. This office is charged with ensuring that the public is informed and involved early in the decision-making process; that their issues and concerns are heard; and that their comments are considered prior to final decisions by DTSC staff and management. Under the direction of the Deputy Director, public participation specialists organize public meetings, workshops and other events where members of the public can engage with DTSC on a range of program issues and actions. Public participation specialists also develop and make available a variety of written materials, respond to inquiries, and provide training on risk communication. The Deputy Director of OPP oversees 24 staff in five regional units, each of which are supervised by a Public Participation Supervisor.

Strategic Development Team

The Strategic Development Team is developing and implementing performance management strategies across DTSC. The team is working with core programs and support services to evaluate their strengths, weaknesses, opportunities and barriers to excellence. The work will be completed in collaboration with program staff and management, and in partnership with EJ and Tribal Affairs. The Team completed its first program review and developed a prioritization method to aid the Executive Management Team in identifying the next programs for review.

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Independent Review Panel

Senate Bill 83 (Committee on Budget and Fiscal Review), Chapter 24, Statutes of 2015, added section 57014 to the Health and Safety Code (HSC), establishing the Independent Review Panel within DTSC. The IRP was directed to review DTSC’s

programs and make recommendations regarding improvements to permitting, enforcement, public outreach, and fiscal management. Since 2015, DTSC has worked collaboratively with the IRP and made more than 25 presentations at IRP meetings, responded to nearly 200 requests for information, recommendations and performance metrics, and provided approximately 4,000 pages of documentation for the IRP’s consideration.

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ENSURING REGULATORY WORK IS PROPERLY RESOURCED

The IRP devoted portions of three public meetings between November 2016 and January 2017 to DTSC’s fiscal management and a brief evaluation in August, November and December 2016. These meetings culminated in the Panel’s fifth

quarterly report, which included information requests, recommendations to the Governor’s Office and Legislature, recommendations for improvements to DTSC, and

recommended performance metrics specific to fiscal management. As a result of the Panel’s focus, DTSC responded to more than 20 requests and recommendations via

reports, presentations, and other supplemental information.

For more information, visit the IRP’s web page at http://www.dtsc.ca.gov/GetInvolved/ReviewPanel/Independent-Review-Panel.cfm.

Fiscal Management Information Requests to DTSC 14 Recommendations for the Governor and Legislature 3 Recommendations for DTSC 6 Recommended Goals and Performance Metrics 6

This section highlights some of the collaborative work with the IRP and provides an update as to where DTSC stands on implementing the various initiatives.

Administration and Budget

Staffing has remained relatively constant since DTSC was formed in 1991 while legislative mandates have increased considerable. Further, actual spending has declined by 26 percent when adjusted for inflation. The net result is DTSC has fewer resources today than when it was created, and those resources must be stretched to accomplish more.

During the most recent fiscal year (FY) 2016-17, DTSC had a little more than 1,000 employees and a budget of $280 million. While this represents a 19 percent increase from the year before, the majority of additional resources (82 percent) were allotted for the Exide Technologies residential cleanup program.

Hazardous Waste Control Account (HWCA)

HWCA is one of two primary funds available to DTSC, providing 21.77 percent of DTSC’s budget, and is supported by fees and cost recovery. A structural deficit has steadily depleted its reserves for several years. If this trend continues, it will soon result in a negative fund balance. To address the true cost of processing permit applications, the FY 2016-17 Budget Act adjusted the Permit Fees to a cost-reimbursement basis.

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Prior to this change, applicants either chose to pay a flat fee or pay a reimbursement fee for the actual costs of reviewing permit applications. This change is expected to lessen pressures on the account, but it will not completely resolve it as the Permit Activity Fee is only one of six fees that support the HWCA.

Toxic Substances Control Account (TSCA)

TSCA is the largest fund for DTSC’s core program activities, providing 18.06 percent of

DTSC’s budget when not including Exide funding. Funding for Exide adds an additional 23.39 percent, bringing total TSCA funding to 41.45 percent of DTSC’s core program

activities. It is adversely impacted by new statutory mandates, cost of living increases and the growth of various programs. Of particular concern is the need to fund the U.S. EPA National Priorities List (NPL or Superfund) and state orphan sites, which are highly contaminated properties that lack responsible parties to pay for cleanup. DTSC estimates the demand for funding NPL and state orphan sites will cost approximately $19 million to $24 million annually for the next few years and possibly thereafter.

Site Remediation Account (SRA)

Under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the U.S. EPA pays 90 percent of the cost for constructing a NPL site cleanup remedy, while the state pays the remaining 10 percent. The state’s

financial responsibility increases to 100 percent when sites transition from construction, to operation and maintenance. This amounts to millions of dollars in new costs that must be borne by DTSC and funded through an annual transfer from TSCA to the SRA.

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Federal Superfund Demands Compete with Orphan Site Cleanups (in thousands)

Historically, DTSC has been allocated $10 million a year for the cleanup of orphan sites and federal NPL sites. There are 98 active NPL sites in California. Of these, 22 are federally funded ("fund-lead") NPL orphan sites, i.e., contaminated sites without financially viable responsible parties. The fund-led NPL demand fluctuates and for future years is likely to exceed the current minimum annual appropriation set forth in statute. In FY 2017, DTSC received an additional $3.7 million and was able to fund response activities at 34 state orphan sites. By FY 2019-20, the fund-lead NPL demand is expected to exceed the statutory funding level leaving a shortage of funding for state orphan sites.

Program Budgets

Hazardous Waste Management Program

In FY 2016-17, HWMP received $66.3 million from the HWCA. Additional funding was provided through the TSCA, federal grants and the State General Fund, for a total of $84.2 million. Beginning in 2016, the Permitting Division switched from a flat fee to a fee-for-service structure to recoup the cost of processing permit and permit modification applications. DTSC projects are expected to collect between $3.5 to $3.9 million in revenue annually as a result of the new fee structure.

Brownfields and Environmental Restoration Program

In FY 2016-2017, the Cleanup Program received $135.6 million in funding. This includes $43.7 million from the General Fund for Legacy Landfills and the Exide facility

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

15/16 16/17 17/18 18/19 19/20 20/21 21/22

Est NPL Demand Est Orphan Demand Current Funding Level

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and surrounding areas, and $39.4 million from the TSCA fund to support a variety of cleanup activities. Funding sources include the Federal Trust Fund, reimbursements (or cost recovery from those responsible for contamination), settlements, and other miscellaneous sources.

Safer Products and Work Places Program

In FY 2016-17, SPWP received approximately $15.6 million. This includes a little more than $8.2 million for its core work (including DTSC’s library services), as well as, funds

to support some functions of the ECL and associated participation in the Biomonitoring California program. Ninety-four (94) percent of program revenue is from the TSCA fund. Other special funds also support the biomonitoring work (Childhood Lead Poisoning, Pesticide Regulation, Air Pollution Control, and Birth Defects Monitor Funds). SCP was awarded a one-time competitive Pollution Prevention Grant by the U.S. EPA.

Sustainable Cost Recovery Systems Work Plan

Following the disclosure that 10 percent of historical cleanup costs had not been fully accounted for, DTSC began implementing a work plan called Sustainable Cost Recovery Systems. This work began in July 2014 to maximize the recovery of DTSC’s

past, present and future response costs,

In August 2014, the State Auditor issued findings and recommendations for DTSC’s

cost recovery program. Of the 11 recommendations, nine called for action by DTSC and two called for action by the Legislature. As of July 2016, the State Auditor classified all nine recommendations that required action by DTSC as “Fully Implemented.”

In 2016, the Cleanup Program completed the review of all 1,621 sites, and implemented the following cost recovery improvements. As of October 2017, 1,456 sites have a zero balance and are completely resolved, while DTSC continues to pursue costs at:

• 66 sites undergoing advanced searches for potentially responsible parties, insurance policies, or active negotiations with responsible parties,

• 41 sites that are in pending or active litigation, settlement or bankruptcy proceedings, and

• 58 sites that are pending formal documentation, discovery of source contamination, or where the U.S. EPA is the lead agency for cost recovery.

In addition to resolving unaccounted costs, DTSC made significant changes to its cost recovery processes to prevent future cost recovery backlogs. Improved procedures

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include worksheets and online tracking tools that streamlined the cost recovery process and provided for real-time performance evaluation.

DTSC’s 27 Departmental Procedural Memorandums (DPMs) are living documents that

clearly outline roles, responsibilities and procedures for staff in maximizing cost recovery. The DPMs are essential roadmaps for addressing historical costs and for ensuring ongoing costs are collected to the greatest extent possible. These DPMs are reviewed and updated on a regular cycle. DTSC is also pursuing replacement of its antiquated Cost Recovery Billing System (CRBS) with a new and enhanced platform. This is an IT project subject to a prescribed state approval and procurement process.

Standardized Accounting and Reporting Systems

Prior to FY 2015-16, DTSC used the California State Accounting and Reporting System (CALSTARS) to perform its accounting functions. CALSTARS served to track all revenue, expenditures, receipts, disbursements and property of the state. CALSTARS was specifically designed to improve the timeliness and accuracy of financial information, standardize the accounting and reporting functions within and across the state agencies, and expand each agency's accounting and reporting capabilities. In 2007, the State of California determined that CALSTARS did not meet the state’s

operational needs because it used outdated technologies that were costly to maintain; lacked functionality; were not integrated; and did not use standardized processes. Given these limitations, the State began the process of procuring a new accounting, budgeting, and purchasing system called the Financial Information System of California (FI$Cal).

For many years, CALSTARS served as an interface with DTSC’s CRBS. CRBS is a

database that serves as a vehicle for recovering DTSC’s costs. As such, CRBS

performs a mission-critical function. CRBS issues invoices to responsible parties, tracks costs data, records payments, and reconciles account balances that ensure that claims for reimbursement are accurate. The CRBS also serves to maintain data on the number of invoices processed and the amount of reimbursements received. The information maintained in CRBS is critical to support litigation undertaken by DTSC and the Attorney General against responsible parties, and to respond to Public Record Act requests. Finally, CRBS serves as the source of information for reports and tracking tools containing cost recovery information.

In 2012, DTSC began the process of replacing CRBS. The decision to replace CRBS was based on a variety of factors. The most compelling reason for replacement was the fact that CRBS was developed in 2002 using Visual Basic 6, which Microsoft stopped supporting in spring 2008. Critical security patches cannot be applied to CRBS, as they would impact system functionality. This means that CRBS is at risk from new and

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emerging viruses. The system also cannot be modified to meet business requirements, such as tracking settlements and issuing collection letters and delinquent notices, which can cause DTSC to be noncompliant with State Administrative Manual requirements. In addition, the system cannot be modified to meet changes in statute that call for a two-tier interest penalty rate structure.

In 2013, DTSC began the process of procuring a replacement to the CRBS. This effort was discontinued because representatives from FI$Cal anticipated that the accounting system it was responsible for developing and implementing would meet DTSC’s cost

recovery needs. As a result, in May 2013 DTSC’s implementation of FI$Cal was moved ahead of schedule by two years. DTSC implemented FI$Cal in July 2015. In December 2015, FI$Cal representatives informed DTSC that it could independently procure its own cost recovery management system to better meet operational needs.

DTSC is pursuing funding and completing the prescribed IT procurement authorization process to build a replacement for CRBS. As envisioned, the replacement for CRBS will meet the functional needs of DTSC and stakeholders. DTSC anticipates the replacement system will serve to reduce time required to generate collection letters, improve the ability to track and reconcile settlement agreements and judgment payments, and reduce the time required to address requests from billable parties and project managers. In addition, DTSC anticipates the replacement system will ensure 100 percent security level compliance, reduce time spent researching, reconciling, or adjusting costs, provide better detail on time charges to support invoice creation, and improve cost recovery monitoring. Finally, the replacement system will help DTSC comply with new and existing statutory requirements.

DTSC is working closely with the Department of Technology to procure a replacement for CRBS. Currently, DTSC is in the third phase of the procurement. DTSC anticipates awarding a contract if funding can be secured. DTSC must implement a replacement system by 2021, when the statutory mandate to charge different interest penalty rates takes effect.

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HAZARDOUS WASTE MANAGEMENT PROGRAM

The IRP devoted five public meetings between March and July 2016 to DTSC’s HWMP

and additional, more modest evaluations in November, December and August 2016. Specifically, the IRP explored the Permitting Division between March and April 2016. The IRP then evaluated the Enforcement and Emergency Response Division (EERD) and OCI between May and July 2016. These meetings culminated in the Panel’s

second and third quarterly reports, which included information requests, recommendations to the Governor’s Office and Legislature, recommendations for improvements to DTSC, and recommended performance metrics related to permitting and enforcement.

Additionally, the IRP devoted a portion of the August 2017 meeting to HWMP’s

Community Protection and Hazardous Waste Reduction Initiative (CPHWRI). The IRP’s

seventh and eighth quarterly reports included recommendations to the Governor’s

Office, Legislature, and DTSC. As a result of the Panel’s focus, DTSC responded to

more than 50 requests and recommendations via reports, presentations, and other supplemental information.

For more information, visit the IRP’s web page at http://www.dtsc.ca.gov/GetInvolved/ReviewPanel/Independent-Review-Panel.cfm.

Permitting Division Information Requests to DTSC 15 Recommendations for the Governor and Legislature 9 Recommendations for DTSC 7 Recommended Goals and Performance Metrics 8 Enforcement (EERD and OCI) Information Requests to DTSC 22 Recommendations for the Governor and Legislature 3 Recommendations for DTSC 7 Recommended Goals and Performance Metrics 5 Source Reduction (CPHWRI) Information Requests to DTSC 1 Recommendations for the Governor and Legislature 3 Recommendations for DTSC 3 Recommended Goals and Performance Metrics 0


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Overview

HWMP is charged with enforcing California’s Hazardous Waste Control Law and the

regulations that implement that law. HWMP has approximately 330 staff positions, including engineers, scientists, investigators, and other professionals and support staff. Staff are organized into four divisions: Permitting, EERD, OCI, and Policy and Program Support.

HWMP staff regulate hazardous waste from when it is first generated, to when it is disposed. The work includes issuing, denying, revoking, or modifying hazardous waste facility permits, conducting regular and targeted inspections of facilities that manage hazardous waste, responding to complaints of illegal storage, treatment, or disposal of hazardous waste or other illegal activities, and assisting local law enforcement agencies with hazardous waste investigations. HWMP staff responds to emergencies involving the release of hazardous materials, in coordination with other federal, state and local emergency responders. They assist with, clarify, and interpret statutory and regulatory requirements, and manage certain compliance and tracking data. HWMP also inspects hazardous waste transporters, tracks waste shipments to and from California locations, and enforces various statutory restrictions and bans on the use or sale of toxic materials. In addition, HWMP investigates illegal disposal of hazardous waste and other illegal activity not usually associated with permitted facilities. When violations are found, HWMP takes criminal, civil, or administrative enforcement action.

For companies that manage hazardous waste there are five types of authorizations; two are administered by HWMP and three by local Certified Unified Program Agencies (CUPAs). HWMP issues full permits under the Resource Conservation and Recovery Act (RCRA) and Standardized Permits for facilities that treat, store or dispose of fully regulated RCRA wastes or used oil. There are 113 businesses in California permitted to treat, store, or dispose of hazardous waste on site. Businesses that generate only hazardous waste or qualify for conditional authorization or conditional exemptions are regulated at the local level by the CUPAs. CalEPA oversees the CUPA program and certifies that the 83 local CUPAs meet requirements allowing them to implement the hazardous waste and materials standards set by five different state agencies. There are 160,000 businesses in California regulated by CUPAs.

Highlight of Recent Accomplishments

Penalties Collected from Multi-Agency Statewide Enforcement

In FY 2015-16 DTSC participated in enforcement cases resulted in a total of $26,381,667 in settlements. Of that, $3,876,000 was for Supplemental Environmental Projects (SEPs). OCI generated settlements totaling $2,244,667. In FY 2016-17 DTSC

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participated in enforcement cases led to $18,427,101 in settlements. Of that, $1,865,230 was for SEPs. OCI generated settlements totaling $1,667,549.

Statewide Enforcement of Hazardous Waste Laws

DTSC enforced hazardous waste requirements with EERD and collaborated with investigators and prosecutors at other enforcement agencies to support statewide enforcement of hazardous waste laws in 2015 and 2016. The following list highlights settlements of key cases in FY 2015-16 and 2016-17:

• Stipulated Final Judgment and Permanent Injunction against Safeway stores and distribution centers in January 2015 ($9.87 million in penalties).

• January 2015 judgment against four Los Angeles retailers for falsely labeling jewelry as lead-free and selling tainted jewelry. Luxy Accessory, Inc. was fined $145,000 and three other companies were fined lesser amounts.

• March 2015 Consent Order against Schaffer Grinding Company for illegally exporting hazardous metal waste ($160,000 penalty).

• Unauthorized and unsafe storage and treatment of hazardous waste at ECS Refining in April 2015 ($220,000 penalty).

• In July 2015, the former owner and the former vice-president of Clearwater Environmental Management were sentenced to jail and five years of probation on felony convictions for conspiracy and illegally consolidating, storing and/or disposing of hazardous waste. In addition to being sentenced to jail, the two company officials were required to pay fines and ordered not to own, manage, or consult for a hazardous waste company for 10 years.

• Dollar Max: On August 11, 2015, OCI scientists visited Dollar Max stores to determine if their jewelry and packing were in compliance with California’s Metal

Containing Jewelry Law and Toxics in Packaging Prevention Act. Based on analytical results, Dollar Max failed to comply. A Consent Order was finalized on February 22, 2017, and a penalty of $2,633 was reached.

• On November 9, 2015, OCI participated in a waste examination of Mountain Cascade Holding Company Inc. with the Alameda County District Attorney’s Office.

During the examination, two soil samples were collected by the Alameda County District Attorney’s Office and given to DTSC to complete a laboratory analysis. On February 27, 2017, a settlement was reached for $200,000 and DTSC was ordered to receive $5,500.

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• January 2016 judgment against Pacific Steel, Inc. for unlawful storage, treatment and disposal of contaminated soil ($138,000 penalty and requirement to remove 27,000 tons of contaminated soil).

• A June 2016 consent order against FedEx Ground Package System, Inc. for allegations of unlawful receipt, storage and transportation of hazardous waste ($3.4 million in penalties).

• On June 21, 2016, OCI assisted the Yolo County District Attorney’s Office with

sampling and interviews for the Family Dollar Inc. case. This case was settled on April 19, 2016 with a total settlement amount of $307,000, of which DTSC was awarded $10,000 for reimbursement of investigative costs and $10,000 for training.

• July 2016 Enforcement Order to Quemetco to correct violations associated with its containment building (case pending).

• Consent Judgment and Permanent Injunction against Ardagh Glass in August 2016 for introducing toxic metals into the manufacture of glass bottles ($3.5 million in penalties and independent audits of hazardous waste handling).

• November 2016, O’Reilly Auto Enterprise paid $9,865,230 for allegations of

unlawful storage and disposal of hazardous waste, which included $186,750 in fines and penalties, and $47,000 in DTSC training and investigation costs.

• December 2016 judgment against Apple, Inc. for opening, operating and closing an electronic waste shredding facility in violation of hazardous waste laws. This resulted in $450,000 in penalties and a requirement to maintain a closure plan and financial assurance against potential future costs.

• In March 2017, the Attorney General’s Office filed a settlement against Gallo

Glass, Co. on behalf of DTSC in the Alameda County Superior Court. Gallo agreed to pay $2 million in penalties for alleged violations discovered during multiple inspections. The majority of the penalty will go into DTSC’s Orphan Site Fund.

BKK Cleanup and Cost Recovery

The BKK Landfill in West Covina consists of a closed Class I hazardous waste landfill, an inactive/closing Class III municipal solid waste landfill and an active leachate treatment plant. In 2015, DTSC signed a third consent decree with a consortium of responsible parties and the BKK Working Group. The Cleanup Program participated in negotiations that resulted in an $85 million settlement, including $1 million for DTSC costs already incurred and $45 million for future cleanup costs.

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Comcast Cable Communications, LLC Penalized for Improper Disposal of Hazardous Waste

In December 2015, Comcast Corp. agreed to pay nearly $26 million to settle a California investigation into improper disposal of hazardous waste—mostly electronic equipment. Investigators from OCI worked with the Alameda County District Attorney’s

Office’s Environmental Protection Division and the California Highway Patrol to conduct

numerous waste inspections at Comcast facilities. In addition, ECL performed all the chemical analyses of the wastes to determine which were hazardous. As a result of the work, DTSC received $1.6 million to enhance the capability of its ECL, $400,000 in equipment for OCI, and $200,000 as reimbursement of DTSC’s costs.

Mercury-containing Thermostats

In February 2016, 25 thermostat manufacturers agreed to a compliance order requiring them to pay $625,000 in penalties and improve their collection of used thermostats containing mercury, a potent neurotoxin. The companies had failed to meet collection targets under a DTSC regulation. Under the compliance order, the companies agreed to develop an outreach plan, pilot projects, and incentives to improve collection of used thermostats. In August 2016, four additional companies agreed to a separate compliance order and $100,000 in penalties. DTSC issued an administrative enforcement order against the only manufacturer that did not agree to the compliance order. The order became final after an administrative law judge upheld it, imposing $36,581 in penalties.

Panda International Trading, Co.

In September 2016, Panda International Trading, Co., a scrap metal recycler in Maywood, Los Angeles County, and its owner Da Xiong Pan, pled guilty to a felony charge and were ordered to pay more than $50,000 in restitution. Pan pled guilty to another five felony counts and received a 16-month prison term and 1,000 hours of community service. Pan and the company were sentenced to three years’ probation and

are barred from business activities that involve storing or disposing of hazardous waste.

Galvan Trucking

On September 22, 2016, a case against Mateo A. Galvan (doing business as Galvan Trucking) was referred for prosecution, and on October 7, 2016, a settlement was reached. The total settlement amount was $100,000 and DTSC collected $37,500. On May 10, 2013, OCI began a joint investigation with the Yolo County District Attorney’s

Office and the Yolo County Department of Environmental Health. Galvan Trucking was identified as a hauler contracted with Woodland Biomass to haul its ash, which was

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determined to be a non-RCRA hazardous waste. Investigation revealed that Galvan Trucking was not a registered hazardous waste hauler. It was determined that Galvan Trucking transported hazardous waste without DTSC’s authorization on 11 occasions.

Woodland Biomass

OCI began investigating Woodland Biomass in May of 2013 to determine if its use of fly ash as ground cover was appropriate. There was reason to believe that the fuel source of the ash may have caused the ash to exceed hazardous waste levels. OCI worked in conjunction with the Yolo County District Attorney’s Office. A civil settlement was reached on April 26, 2017 for $4.22 million; DTSC received approximately $950,000.

Northstate Recycling

On March 15, 2017, a settlement was reached in the Northstate Recycling case that included a settlement of $400,000 payable to DTSC. The settlement also included 14 injunction terms, such as the requirement that Northstate can no longer operate a shredder, OCI received a complaint alleging that Northstate Recycling was storing hazardous waste in excess of 90 days, as well as transporting hazardous waste in the form of shredder fluff material from the metal shredder it operated in its Redding facility. OCI executed a search warrant on August 18, 2012. During execution of the search warrant, staff collected a total of 27 samples, 24 of which contained hazardous waste constituents exceeding regulatory thresholds.

Emergency Response to Communities Devastated by Wildfires

HWMP’s Emergency Response unit acts in the wake of wildfires to evaluate and

remove hazardous waste in burn areas, including asbestos siding or pipe insulation, paints, batteries, flammable liquids, and electronic waste such as computers and monitors. This removal must occur before property owners, businesses and residents can return and rebuild.

In 2015, Emergency Response assisted in the cleanup of the Rocky Fire, which burned more than 69,400 acres in Lake, Yolo and Colusa counties. Two weeks after the fire raged through the area, Emergency Response staff, along with hazardous waste/asbestos removal contractors, spent six days traveling through steep hills to reach the more than 70 homes leveled by the flames.

Emergency Response staff supported Lake County again when the Valley Fire destroyed more than 76,000 acres and nearly 2,000 structures, including 1,281 homes, 27 multifamily structures, 66 commercial structures, and 581 other structures.

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In 2016, Emergency Response assisted in the cleanup of the Erskine Fire in Kern County, which burned more than 47,864 acres, resulting in the destruction of more than 300 homes. Working with hazardous waste/asbestos removal contractors, Emergency Response spent four weeks removing household hazardous waste and asbestos from the destroyed homes.

Emergency Response staff also supported Lake County when the Clayton Fire burned more than 3,929 acres and destroyed 189 homes. Response operations, including assessment and removal of household hazardous waste and asbestos, took 2 ½ weeks to complete.

Since October 9, 2017, DTSC has been coordinating with the Governor’s Office of

Emergency Services (OES), CalEPA, U.S. EPA, and impacted counties to respond to a new set of devastating fires. So far, DTSC has received mission assignments from OES for Yuba, Lake, Nevada, Butte and Mendocino counties. We may also be needed to provide cleanup in Solano County. DTSC began surveying the areas with its contractor and the local agency to determine the scope and magnitude of the work. Survey work in Nevada, Yuba and Lake Counties was conducted beginning on October 16, 2017, with work beginning in the days following. In total, DTSC staff and contractors will assess and remove household hazardous waste and asbestos from more than 700 residential properties.

Universe of HWMP Activities

HWMP tracks many activities for developing work plans and reporting grant obligations. Below is a summary of activities conducted by the Permitting Division, EERD, OCI, and Program and Policy Support Division.

General (FY 2015-16 and FY 2016-17)

Activity Processed

Biennial Report Submittals 5,500 Federal EPA ID Numbers Applications 3,000 State EPA ID Numbers Applications 60,000 Telephone Information Center – Incoming Calls 54,000 Temporary State EPA ID Numbers Issued 23,000 Transporter Registration Applications 1,700 Verification Questionnaire Evaluations 180,000

Financial Responsibility (FY 2015-16 and FY 2016-17)

Activity Processed

Evaluation of Closure and Post-Closure Cost Assurance Mechanisms 176

Evaluation of Operation & Maintenance Cost Assurance Mechanisms, and Corrective Action Cost Assurance Mechanisms

76

Reimbursements/Releases from Financial Instruments 51

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Transportable Treatment Units Applications (FY 2015-16 and FY 2016-17)

Activity Processed

Unit Authorizations 36

Site Specific Authorizations 39

Universal Waste Electronic Device Handler Verifications (FY 2015-16 and FY 2016-17) Activity Processed

Annual Reports 18,571 Notices of Intent 3,692

Technical Industry Assistance (FY 2015-16 and FY 2016-17) Activity Processed

Electronic Mail Responses 2,308 Telephone Call Responses 7,422 Fact Sheets/Frequently Asked Questions Documents 14 DTSC Web Page Development 14

OCI Case Loads (FY 2015-16 and FY 2016-17)

Activity Processed

Total New Cases Initiated 252 Total Cases Closed 338 Total Referrals to District Attorneys/Attorney General 20

Inspections

Activity FY 2015-16 Target (%) FY 2016-17 Target (%)

Permitted Facilities (all) 73 63 (116%) 69 63 (110%) Electronic Waste - Recyclers 58 54 (107%) 46 54 (85%) Electronic Waste - Collectors 75 75 (100%) 66 75 (88%) Transporters (all) 70 75 (93%) 69 90 (77%)

Mexico Border – Waste Shipments (FY 2015-16 and FY 2016-17)

Region Hazardous

Waste

US Products

Returned

Universal

Waste

Non-Regulated

Materials

Northbound Subtotal 703 819 604 6897

DTSC – Otay Mesa 456 507 348 3737 DTSC – Calexico 13 244 166 1537 San Diego Co. 234 68 90 1623 Southbound Subtotal 0 82 25 350

DTSC – Otay Mesa 0 45 10 161 DTSC – Calexico 0 37 15 189

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Emergency Response (FY 2015-16 and FY 2016-17) Response Type Response Site Cost

Wildfire Rocky/Jerusalem $139,594 Butte $1,284,136 Valley $496,884 Forks $84,689 Erskine Fire $450,000

Clayton Fire $400,000 Wildfire Subtotal $2,855,303

Large Removal Electroforming $309,381 Pan Metals $43,265 Bishop $40,000 Large Removal Subtotal $392,646

Mercury Spill Valley Fire $150,702 Santa Rosa $37,753 Livermore $7,018 Escondido $10,521 Dunsmuir $5,605 Mercury Spill Subtotal $211,599

Abandoned Waste 65 sites $182,227 Drug Labs 388 sites $1,434,077 Total $1,616,304

RCRA Subtitle C Grant

FY 2015-16

• Completed 118 RCRA-funded inspections. • Completed 174 non-RCRA-funded inspections. • Completed 20 Used Oil Inspections. • Completed 43 RCRA-funded FRRs. • Completed 28 non-RCRA-funded FRRs. • Completed 10 Used Oil FRRs. • Financial Assurance Mechanisms reimbursed/released $70,511,578.52. • Initiated 48 administrative/civil enforcement actions. • 10 settled actions were RCRA-funded, resulting in $956,079 in penalties. • 33 settled cases were non-RCRA funded, resulting in $4,279,725 in penalties. • Received 533 complaints for potential illegal hazardous waste management activities. 466 of

which were referred to CUPAs or other agencies, while DTSC took action on 81. • Conducted 21 evaluations of CUPAs. • Conducted 31 CUPA oversight inspections. • Received 16 30-day accumulation extension requests. • Received 4 notifications for self-disclosure of violations. • Inspected two hazardous waste handlers and closed/settled three investigations. • Received 21 notifications of intent to import hazardous waste, and 33 notifications of intent to

export hazardous waste.

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FY 2016-17

• Completed 167 RCRA-funded inspections. • Completed 184 Non-RCRA-funded inspections. • Conducted 33 Used Oil Inspections. • Completed 46 RCRA-funded FRRs. • Completed 25 non-RCRA-funded FRRs. • Completed 46 Used Oil FRRs. • Financial Assurance Mechanisms reimbursed/released $24,313,648.44. • 12 settled actions were RCRA-funded, resulting in $6,364,996 in penalties. • 23 settled cases were non-RCRA funded, resulting in $933,186 in penalties. • Conducted 695 Emergency Response Actions, total cost $1,698,888. • Received 704 complaints from the CalEPA Complaint Tracking System. • Conducted 7 RCRA-funded complaint site visits (3 resulted in Class I violations), 35 Non-

RCRA complaint site visits (8 resulted in Class I violations). • Conducted 772 inspections (18 resulted in Class I violations). • Conducted 24 complaint site visits, assessed $174,360 in penalties for five cases. • Participated in 28 CUPA evaluations. • Completed 61 CUPA oversight inspections and two verification inspections. • Received 10 30-day accumulation extension requests. • Received 6 import notifications and 14 export notifications. • Completed 2 verification inspections, out of which 1 resulted in a Class I violation.

Permits

Activity FY 2015-16 FY 2016-17

Permit Decisions 12 9 Class 1 Permit Modification 20 29 Class 2 Permit Medications 2 4 Closure Activities 5 5 Emergency Permits 49 40

CUPA Inspections

DTSC implements the CUPA program for two counties: Imperial and Trinity. The program includes hazardous waste generator and tiered permitting, hazardous materials release response plans and inventory programs, regulation of above-ground and underground storage tanks, and the California Accidental Release Prevention Program (CalARP). All facilities are inspected on a triennial basis, with the exception of underground storage tanks, which are required to be inspected annually. The number of inspections scheduled annually is approximately one-third of the total number of regulated businesses.

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FY 2016-17 Imperial CUPA

Number of

Regulated

Businesses

Inspections

Scheduled

Inspections

Conducted

Percent

Completed

Business Plan, Hazardous Materials Plan, & Inventory

859 287 308 107%

Hazardous Waste Generator 661 221 277 125% Underground Storage Tank 83 83 85 108% Aboveground Storage Tank 184 62 62 100% CalARP 43 15 15 100%

FY 2016-17 Trinity CUPA

Number of

Regulated

Businesses

Inspections

Scheduled

Inspections

Conducted

Percent

Completed1

Business Plan, Hazardous Materials Plan, & Inventory

130 44 15 34%

Hazardous Waste Generator 51 17 5 29% Underground Storage Tank 9 9 1 11% Aboveground Storage Tank 38 13 5 38% CalARP 5 2 0 0%

1Workplan targets for the Trinity CUPA were not met for FY 2016-17 due two factors. The inspection rates were low due to the severe winter weather barring the DTSC inspector from conducting inspections from December 2016 through March 2017. In addition, DTSC redirected resources to address large number of return-to-compliance for violations identified in previous year. For the current fiscal year, DTSC has directed additional resource to ensure that all the required inspections from the previous year are completed in addition to this fiscal year.

New or Expanded Responsibilities

In addition to its routine and ongoing program responsibilities, HWMP implemented several key initiatives in 2015 and 2016, and assumed new or expanded responsibilities.

• In 2014, the DTSC website and EnviroStor were upgraded to provide access to inspection data and reports for permitted facilities, Summaries of Violations, and enforcement settlements.

• In FY 2015-16, DTSC implemented a pilot project to receive public comment on draft settlement agreements. Participation by respondents and defendants is voluntary (regulations do not require public comment) and no companies volunteered to participate. DTSC is evaluating options to provide public review of

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draft settlement agreements. A statutory change may be necessary to overcome this challenge.

• HWMP coordinated with the Department of Conservation, Division of Oil, Gas and Geothermal and other regulatory agencies to review applications for well stimulation permits, analyze the chemical constituents in wastes from oil production, and assess potential environmental and health impacts of, and data gaps related to, well stimulation.

• HWMP assumed full responsibility for the federal program that issues and tracks U.S. EPA Identification Numbers, and associated data management services and quality assurance. HWMP also launched a new software platform to collect and track hazardous waste data from Large Quantity Generators.

• HWMP took formal enforcement action against 15 permitted facilities, received 1,237 environmental complaints (referring 935 of them and responding to 163), participated in the evaluation of 21 local CUPAs, conducted 31 CUPA oversight inspections, and provided 12 training classes at the 18th and 19th Annual CUPA Forum Training Conference to more than 2,800 participants. More than 2,500 students have received training statewide through HWMP partnerships.

Consistency and Rigor

DTSC has developed and updated regulations, policies, and guidelines to ensure compliance is delivered consistently and rigorously with available resources. In July 2016, DTSC updated the policies on Implementing Quarantine Authority, Referrals to California Compliance School, and Sharing Administrative Penalty Calculation Information. In June 2017, DTSC updated the policies on Conducting Inspections, Enforcement Response, Complaints, Collecting Overdue Administrative Penalties, and Guidelines for Calculating Economic Benefit of Noncompliance.

Permitting Backlog Reduction Initiative

In 2014, DTSC acknowledged a backlog of permit applications that had lingered for many years without action. The Permitting Division committed to make decisions on 27 permits during the period of July 2014 to June 2017, and accomplished this goal by making eight decisions in FY 2014-15, 12 decisions in FY 2015-16, and nine decisions in FY 2016-17.

Increased staffing (initially limited-term but now permanent), along with improvements resulting from the Permitting Enhancement Work Plan and Lean Six Sigma projects, has allowed Permitting to reduce the number of backlogged permit applications.

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Permitting Enhancement Work Plan

When CPS HR Consulting completed its review of DTSC’s permitting process (October

2013), the average time to issue a permit was 4.3 years. Although this was shorter than the national average of 4.7 years, DTSC established a goal to reduce that time by roughly half.

HWMP developed the Permitting Enhancement Work Plan to reform DTSC’s permit

process. There were 86 actions in the original work plan—to improve timeliness, protectiveness and enforceability of permits through more transparent standards and consistent procedures. Permitting added nine improvement actions based on knowledge gained during initial implementation.

Permitting mapped, for the first time, the entire work plan process and created a template baseline flow chart that staff can use to manage the work and record improvements. A large group of staff members (including technical and professional support staff from throughout DTSC) refined the flow chart in Fall 2015 to reflect improvements.

Because of this initiative, DTSC created or updated 40 guidance documents, 25 procedures, 20 training modules, 10 e-tools, and 15 reporting requirements. Staff now follow one standardized permit process flow chart that includes input from all internal stakeholders. Staff have a greater understanding of the permit process and their role in it. Project managers take responsibility and ownership of the process. Importantly, the improved process allows for a unified training program. A performance management system has been implemented to maintain the process improvements and achieve measurable results.

Permitting Criteria Rulemaking

Senate Bill 673 (Lara) Chapter 611, Statutes of 2016, requires DTSC to propose amendments to its permitting criteria. In developing the regulation, DTSC is to consider seven criteria in permitting decisions: compliance history, data for a community profile, financial responsibility, training for facility personnel, a health risk assessment for facility operations, community vulnerability and cumulative impacts, and setback distances from locations (such as schools, daycare centers and hospitals). DTSC carefully considered all criteria in the development of a draft permitting criteria regulation. The proposal was currently open for comment under the Administrative Procedures Act and the comment period closed on November 6, 2017.

DTSC has also initiated a broad stakeholder process to develop frameworks and tools to consider vulnerable populations and cumulative impacts. This effort includes

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coordination with other CalEPA boards, departments, and offices, as well as, other federal, state and local agencies, nongovernmental organizations, community advocates, and representatives of the business community. DTSC convened two symposia in 2017 and is planning workshops, focused group discussions, and other opportunities for input, problem definition and the development of solutions. Later forums will consider the intersection between hazardous waste permitting and land use issues.

In addition to the above, DTSC pursued efforts to clarify how a facility’s compliance

history would be used as a basis for determining when violations support denial of a permit application or revocation of a permit, and to help make permit decisions in a consistent, transparent and accountable way. The Violation Scoring Procedure is a process by which a facility’s compliance history would be evaluated and scored for

permitting decisions. The scoring process would help clarify the degree of non-compliance that could lead to permit revocation or denial. The Violation Scoring Procedure considers two primary criteria: Extent of Deviation and Potential for Harm.

Input was received from the Kern Environmental Enforcement Network and LA Environmental Justice Network, Legislative Assembly and Senate staff, California Council for Environmental and Economic Balance and California Chamber of Commerce. This stakeholder effort provided the platform for the development of a key component of the permitting criteria regulation required under Senate Bill 673.

Metal Shredding Evaluation

Senate Bill 1249 (Hill), Chapter 756, Statutes of 2014, requires that metal shredding facilities be thoroughly evaluated and regulated by DTSC to ensure adequate protection of human health and the environment. Specifically, the bill requires DTSC to:

• Conduct a comprehensive evaluation of metal shredding facilities and metal shredder waste,

• Determine if alternative management standards specific to metal shredding facilities could be developed to ensure that the management, treatment and disposal practices related to metal shredder waste are protective of human health and the environment,

• Prepare an analysis of activities to which the alternative standards will apply and to make it available to the public before any regulations are adopted,

• Adopt regulations establishing alternative management standards for metal shredding facilities (if necessary), and

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• Adopt emergency regulations establishing a fee schedule to reimburse DTSC’s

costs for the evaluation, analysis, and regulatory development for metal shredding facilities (if necessary).

As part of the evaluation, DTSC assessed the treatability of hazardous wastes generated by metal shredding operations, off-site air emissions and migration of wastes, and suitability of the treated waste for use as Alternative Daily Cover at landfills. DTSC will issue a report in Fall 2017 summarizing its evaluation of the metal shredding industry and outlining steps to assure better environmental compliance by the industry.

Metal Recyclers Enforcement Initiative

The 2016 Metal Recycler Initiative is the result of findings made during a 2012 initiative in which 16 small metal recycling facilities were inspected and found to have serious hazardous waste violations. The objective of the initiative is to eliminate threats to environmental justice communities, significantly improve the environmental regulatory compliance rate, and evaluate the need for operating standards.

OCI’s primary role in this initiative to implement a vigorous, comprehensive and sustainable inspection and enforcement program, aimed at reducing the detrimental environmental impacts and noncompliance rate of the metal recycling industry.

DTSC has completed inspections of 43 high-priority metal recycling facilities, 32 of which were in some of California’s most environmentally burdened communities. Of the

43 businesses inspected, DTSC issued 38 Summaries of Violations as part of the initiative. Thirty-one (31) cases were referred to DTSC’s Office of Legal Counsel for

enforcement.

During the initiative, OCI scientists uncovered violations related to used oil filters that were not properly drained, were illegally transported, and/or improperly crushed and shredded. Soil samples from 20 sites showed the presence of hazardous chemicals, and DTSC is pursuing enforcement action on all violations discovered. Those violations include:

• Failure to remove materials requiring special handling, such as mercury-containing switches, capacitors, refrigerants, oils and batteries from vehicles and appliances,

• Mismanagement of metal recycling residues, such as debris and soil contaminated with heavy metals, polychlorinated biphenyls, and oils,

• Unauthorized acceptance, storage, transportation, and treatment of undrained used oil filters and other hazardous waste,

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• Failure to comply with hazardous waste recordkeeping requirements, and

• Failure to minimize releases of hazardous waste and constituents from processing scrap metal.

Four facilities have signed interim consent agreements requiring that the used oil filters they receive are properly drained and managed. DTSC also issued a public advisory on the proper draining and management of used oil filters.

DTSC is working with the CUPAs to educate businesses and increase regulatory compliance through trainings, fact sheets, an industry-focused web page, and other education programs.

Enforcement Performance Management Unit

DTSC created the Enforcement Performance Management Unit to determine work load standards; develop and implement a comprehensive training program; develop and update regulations, policies and procedures, guidelines, etc.; and to increase program consistency, efficiency, effectiveness and transparency. Some of the Unit’s

accomplishments include:

• Conducted three Lean Six Sigma projects:

1) Enforcement Response Improvement – Reduce the time to complete enforcement actions for administrative cases up to $75,000 so that 90 percent of cases are completed within 180 days;

2) Inspection Report – Complete and submit 95 percent of inspection reports within 30 days; and

3) Penalty Assessment – Assess and approve 95 percent of initial penalties for administrative actions within 14 days of sending inspection report to facility.

• Developed and adopted a detailed Enforcement Improvement Work Plan identifying specific program improvement efforts, projects and associated timelines for completion.

• Developed preliminary workload standards for all inspection and enforcement activities and undertook a one-year comprehensive evaluation of inspection activities to develop more detailed and updated workload standards.

• Completed numerous enhancements and updates to documentation and drafted a training manual for EnviroStor users.

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• Updated numerous inspection and enforcement related policies, procedures, and guidance documents.

• Developed and distributed a comprehensive Inspector Training Program to staff in March 2017.

• Provided training on DTSC’s SEP Policy in March 2017.

• Established a working group to review enforcement cases composed of legal and EERD staff and managers to review enforcement cases for consistency and precision.

• Initiated enhancement efforts to the public EnviroStor website to improve program transparency.

• Held, in collaboration with OEIM, a public webinar in December 2016 to encourage public comments and recommendations to make the public website more user-friendly.

• Developed an effective communication strategy, in coordination with OPP, for engaging neighborhoods in close proximity to inspection and enforcement activities.

• Developed a process to use CalEnviroScreen and the new Online Complaint System to prioritize enforcement activities.

Community Protection and Hazardous Waste Reduction Initiative

DTSC implemented a CPHWRI to identify and explore opportunities to reduce hazardous wastes that pose threats to human health and the environment, that impact environmental justice communities in California, and to avoid shifting waste burdens from one community to another.

The selection criteria for the pilot projects required the project to be technically feasible, implementable, scalable and measurable; to address larger volumes or more toxic wastes; and to demonstrate benefits to impacted communities. The projects selected were focused on lead-acid batteries, petroleum refinery wastes, contaminated soils and organic solvent wastes. The project selection methodology relied on data gathering, source reduction documents prepared by generators, and solicitation for proposals and partnerships.

DTSC’s report includes a summary of public and stakeholder engagement, an overview

of waste topics (including data analysis), and a presentation of findings and

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recommendations. DTSC has learned from community involvement and dialogue with impacted communities what the costs of innovative cleanup options may be, as well as potential new and emerging cleanup technologies.

DTSC is considering more projects and topics to explore, such as: reduction in lead use, extension of battery life, alternative recycling methods (non-smelting), mandatory versus voluntary source reduction, mandatory versus voluntary technologies, short term versus external costs, influence of economic factors, local government role and involvement, and community role and involvement.

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BROWNFIELDS AND ENVIRONMENTAL RESTORATION PROGRAM

The IRP devoted three public meetings between January and April 2017 to DTSC’s

Cleanup Program and a brief evaluation of the program in August, November and December 2016. These meetings culminated in the Panel’s sixth quarterly report, which

included information requests, recommendations to the Governor’s Office, Legislature to

DTSC for the Cleanup Program. As a result of the Panel’s focus, DTSC responded to

more than 20 information requests and recommendations via reports, presentations, and other supplemental information.

For more information, visit the IRP’s web page at


Cleanup Program Information Requests to DTSC 16 Recommendations for the Governor and Legislature 3 Recommendations for DTSC 11 Recommended Goals and Performance Metrics 0


Overview

The Cleanup Program is charged with restoring and safeguarding communities through the investigation and remediation or cleanup of contaminated properties. The Cleanup Program has approximately 375 staff, including engineers, scientists, geologists, toxicologists, analysts and other professionals. These staff work out of six of DTSC’s

regional locations, as well as DTSC’s Sacramento Headquarters. The Cleanup Program

is involved in the site remediation and cleanup of thousands of properties throughout the State contaminated by hazardous substances. These properties include:

• Federal Superfund sites, which are properties listed by the U.S. EPA as having uncontrolled or abandoned hazardous waste and hazardous chemical releases or spills,

• State Response sites, which are confirmed hazardous substance release sites where DTSC is involved in the cleanup, either in a lead or oversight capacity,

• Federal and State orphan sites, which have no known responsible party,

• Military sites, which include formerly-used defense sites, and both operating and closed bases,

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• Permitted hazardous waste transfer, treatment, storage, and disposal facilities that are required to address and pay for the cleanup of hazardous waste releases (i.e. corrective action and financial assurance),

• Voluntary cleanups at brownfields properties, which sit idle or are underused and contribute to urban blight and sprawl due to actual or perceived contamination, and

• New or expanded school sites, which are required to undergo investigation and cleanup, if necessary, under DTSC oversight.

The Cleanup Program works in coordination with federal agencies, such as the U.S. EPA, Department of Defense, U.S. Fish and Wildlife Service, and Department of Energy. Staff also coordinate with state agencies such as CalEPA and its boards, departments and offices, such as, and the State Water Resources Control Board, Air Resources Board, Office of Environmental Health Hazard Assessment (OEHHA), Cal Recycle and Department of Pesticides, and other state agencies, such as the California Department of Public Health and Department of Fish and Wildlife. Local agency coordination includes the Regional Water Quality Control Boards, Air Quality Management (or Air Pollution Control) Districts, water agencies, county agencies, and school districts. The Cleanup Program also works with Native American Tribes.

For all projects, the Cleanup Program implements best practices and guidance developed by DTSC and the above agencies. For example, DTSC wrote a series of guidance documents on vapor intrusion that initiated the quick adoption of best practices by other state and federal agencies at a time when vapor intrusion was a new and emerging topic. Subsequent guidance documents produced by the U.S. EPA and Department of Defense cited the Vapor Intrusion Mitigation Advisory that was produced in that series. Additionally, the Cleanup Program wrote a series of groundwater guidance documents that were used by the Water Boards and local oversight programs. These have all been recently revised and updated to reflect current best practices. In other cases, DTSC follows existing guidance, such as the U.S. EPA’s guidance calling

for Five-Year Reviews of sites where contaminants remain above safe levels that would allow for unlimited use and unrestricted exposure. DTSC also follows the U.S. EPA Risk Assessment Guidance, supplementing it with Program-specific guidance developed by OEHHA as well as DTSC’s Human and Ecological Risk Office (HERO), and inserting it

into the “notes” section. Finally, DTSC creates guidance to adequately implement new

requirements, such as fence line monitoring, to ensure that the appropriate regulations are followed, public health and safety are protected, and the long-term environmental risks are properly managed. To ensure the use of best practices and consistent decision making, the Cleanup Program follows the nine criteria established in the National

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Contingency Plan, as well as the six criteria found in HSC Section 25356.1. DTSC also uses the following criteria:

• Is the decision technically sound?

• Is the decision legally defensible?

• Is the decision protective of human health and the environment?


Bay Street Shopping Center

DTSC oversaw the removal of approximately 7,860 tons of contaminated soil in 2015, paving the way for construction of the 175-room Hyatt Place Hotel in Emeryville. This hotel is the latest component of a large-scale redevelopment project that has generated thousands of jobs. DTSC has been involved with the South Bayfront Retail/Mixed Use Project since the city began assembling six parcels, totaling almost 20 acres, into the mixed-use project. The land was formerly used for a variety of industrial and commercial purposes, including reconditioning of drums, a machine shop, pesticide formulating and distributing, and trucking operations. Today, the area consists of an IKEA store, the Bay Street Shopping Center, 400 units of residential housing, and two hotels. The new hotel opened in late 2016 and was expected to add $585,000 to the City’s Transient

Occupancy Tax in FY 2016-17, and is projected to add $1.3 million in FY 2017-18. Additional projects in the surrounding area have also been completed and more are underway.

Sacramento Railyards Restoration

The Sacramento Railyards is the largest and most complex urban infill project in the country. DTSC is the lead regulatory agency overseeing the cleanup and implementation of the institutional controls. The remediation efforts allow for a large mixed-use development.

Approximately 200 out of 240 acres have been remediated for soil, and certified with institutional controls in place. Approximately 400,000 gallons of groundwater are extracted and treated per day. Most of the site has been remediated for soil, with the remaining portions estimated to be completed by 2020. Groundwater remediation, which extends downtown, is expected to continue for decades but does not preclude development. DTSC remains involved during the development, providing oversight on- and off site, as necessary. On site, DTSC provides support regarding soil and groundwater management and vapor intrusion mitigation. Major infrastructure on site, including roads, have been constructed and opened to the public. Off site, DTSC

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provided oversight during the construction of the Golden 1 Center arena and Downtown Commons. Future projects include up to 10,000 housing units with ground-level retail, over 3,850,000 square feet of office space, a Kaiser hospital/medical center, a 25,000-person major league soccer arena, and hotels, museums, parking and open spaces.

Eastwood Multiple Arch Dam at the Argonaut Mine

The Argonaut Mine site in Jackson includes the Eastwood Multiple Arch Dam, which holds back about 165,000 cubic yards of soil contaminated with arsenic and other metals. The Cleanup Program developed and built a system of berms, culverts, drains and pumps to relieve pressure and divert runoff around the dam. The project was completed in four months, in time for the first rains, and the dam survived heavy rain events during the winters of 2015 and 2016. Simultaneously, the Cleanup Program conducted a study of alternatives for a permanent repair/retrofit of the dam. The Cleanup Program has prepared a Remedial Action Plan for a permanent retrofit of the Dam which was posted for public review and comment on October 20, 2017. Construction is planned for 2018.

Selma Treating Company in Selma

The Selma Pressure Treating Superfund Site is a former wood-preserving treatment facility bordering the city limits of Selma, California. There are 12 residences and businesses within a quarter-mile of the site. The Town of Selma has a population of approximately 10,000 people. The Cleanup Program has operated the groundwater remedy and collected samples to assess the efficiency of the system since 2009. In 2017, groundwater monitoring included sampling of domestic water wells down gradient of the Selma Treating Company. The results indicated that groundwater at two residences were contaminated with hexavalent chromium, a known carcinogen, at nearly nine times the drinking water standard. The Cleanup Program immediately provided bottled water to the residents while the U.S. EPA funded and constructed treatment systems consisting of Reverse Osmosis on the two wells. In coordination with DTSC, the systems were installed in July 2017 and the Cleanup Program took over operation and maintenance of the systems in October. The Cleanup Program will continue to monitor and provide safe drinking water to these residences and businesses.

Former McClellan Air Force Base in Sacramento

On May 26, 2017, to facilitate the redevelopment of the closed McClellan Air Force Base, DTSC’s Cleanup Program, the lead state agency in the Federal Facility

Agreement with the USAF, approved the transfer of 927 acres of land and 40 facilities at the former McClellan Air Force Base. Prior to the transfer all required remedial action on

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this property was completed. Most of the property transferred is composed of the active airfield and related open area at the former USAF base, which was used extensively by Cal Fire aircraft to fight recent, devastating Northern California wildfires. This transferred property amounts to approximately a third of the former base, and facilitates the timely and efficient reuse of the property for economic development, while maintaining protection of human health and the environment. The majority of the property was transferred to McClellan Business Park LLC, which will own and operate the airfield, with a few lots now owned by Sacramento County.

Dominquez Golf Course in Carson

The Dominguez Golf Course (DGC), a part of the BKK Main St. Dump, was specifically separated from the rest of the BKK Main St. Dump for redevelopment in 2007. The Site is located in the City of Carson, Los Angeles County, and accepted both municipal solid and liquid industrial wastes from 1949 to 1960. Under DTSC’s oversight, the DGC

underwent a voluntary cleanup and is now the site of the Porsche Experience Center, a sports car driving experience facility. Using innovative remediation techniques developed at the neighboring Cal Compact Landfill site, the DGC was remediated using low permeability clays and a geosynthetic clay liner for the barrier layer of the landfill cap, located on the track and parking areas; a Linear Low-Density Polyethylene liner for the cap under the Porsche Experience Center building; and bentonite/cement/sand slurry to double contain wet utilities that penetrated the low permeability barrier layer of the landfill cap.

Redevelopment of the site is projected to provide direct economic benefit to the community through investment of more than $35 million in site development and improvements. The Los Angeles County Economic Development Corporation estimates it will generate approximately $45 million in total economic activity and create 290 jobs in the short and long term. The facility is expected to generate $22 million in yearly economic activity, beyond the value of the construction activity, and attract 125 people to the site each day. These visitors will help to improve the economic value of the area that is primarily industrial. Installation of a large-scale driver skills training and entertainment complex is an innovative use of a former landfill property, which are often difficult to place into productive use.

Jordan Downs, Housing Authority of the City of Los Angeles (HACLA) Redevelopment Project, Los Angeles County.

Over 275,000 tons or contaminated soil were removed and cleaned up at the 21-acre site of an old steel factory that had operated since the 1930’s. DTSC staff managed and

oversaw all aspects of this large removal action. The contaminants of concern found to exceed regulatory screening levels included metals (arsenic and lead), petroleum

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hydrocarbons, polychlorinated biphenyls, naphthalene, and trichloroethylene. The soil cleanup took around two years and the last phase was completed in March of 2017.

HACLA, the property owner, plans to rebuild the Jordan Downs public housing complex in the Watts neighborhood as part of the Watts Rising initiative. The area will be transformed into a mixed-use, transit-oriented development with new homes, schools, parks, a gymnasium, a community center, and commercial facilities. The residents of Watts have the lowest life expectancy in the City of Los Angeles and the State of California, 12 years lower than those found in the wealthiest areas. CalEPA ranks several Watts-located census tracts in the top 5 percent of the most pollution-burdened and vulnerable communities in the state. The Watts Rising initiative is an effort to address this imbalance and the Jordan Downs complex plays a key role in this endeavor. HACLA started the first phase of residential development in Summer 2017 on the cleaned up 21-acre parcel and will eventually build 700 new residential units for low-income housing, along with a commercial/retail center. Construction began on Phase 1, which includes 115 housing units, 5 percent of them already built. When the development is completed at the 21-acre site, residents from other Jordan Downs Housing areas will be relocated to the newly developed housing, and old buildings will then be demolished to make way for new buildings which will complete the project.

Whittier Narrows Water Treatment in El Monte

Whittier Narrows Operable Unit (WNOU) is part of the San Gabriel Valley Area 1 Superfund Site, with groundwater contaminated by volatile organic compounds and 1,4-dioxane. Since the U.S. EPA transferred the Site to DTSC in 2013, the treatment plant has been operating at between 1,000 to 2,000 gallons per minute (gpm), discharging the treated groundwater to Legg Lake; this value is below the target flow rate of 3,500 to 4,000 gpm to capture the contaminated plume. In June 2016, U.S. EPA constructed a treatment plant upgrade that will allow DTSC to blend the WNOU groundwater with lower total dissolved solids water from local water purveyors, who will then deliver the blended water to their customers. In July 2017, DTSC submitted a Proposition 1 Implementation Grant Application for piping and a booster station to allow the new plant operator to deliver additional drinking water, in accordance with a Division of Drinking Water permit, to meet the required target flow rate.

Kettleman Hills Hazardous Waste Landfill

DTSC and the CalEPA reached a historic agreement with Greenaction for Health and Environmental Justice (Greenaction) and El Pueblo Para El Aire y Agua Limpia/People for Clean Air and Water of Kettleman City (El Pueblo). This is the first example of a voluntary resolution jointly developed by state agencies and community groups under Title VI of the federal Civil Rights Act. The agreement resolves a complaint over DTSC’s

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2014 approval of a permit to expand the Kettleman Hills hazardous waste landfill and contains provisions designed to improve public health and environmental quality for people in Kettleman City.

Santa Susana Field Laboratory (SSFL)

One of the most sensitive, contaminated and complex cleanup sites in California, SSFL, is a former nuclear research and rocket engine test facility near Simi Valley that operated from 1948 to 2006. The site is principally owned by The Boeing Company, and NASA also owns a portion of the site. The Department of Energy also operated at the site. DTSC is the lead regulatory agency overseeing the investigation and cleanup of contaminated soil and groundwater at the SSFL. Multiple state, federal, and local government agencies also play a role in the cleanup under way at the SSFL site.

The Draft Program Environmental Impact Report (PEIR) prepared by DTSC and released for public review in September 2017 describes the potential environmental impacts from cleanup activities, and identifies actions that DTSC may require the Department of Energy, NASA, and Boeing to take to avoid or reduce those impacts. The Draft Program Management Plan (PMP), also released for public review in September 2017, serves as a roadmap for completing the cleanup and will assist in managing the complex project. The public comment period for the Draft PEIR and Draft PMP is open until December 7, 2017. DTSC hosted two open houses and public hearings during the public comment period in Simi Valley and Chatsworth.

Yuba River Charter School

DTSC partnered with the U.S. EPA to pave the way for a new school facility near Grass Valley for the 23-year-old Yuba River Charter School which currently uses the old Nevada City Elementary School campus. In addition to DTSC and the U.S. EPA, the process included coordination between the Nevada County Superintendent of Schools, the California School Finance Authority, the California Department of Education and the Division of the State Architect.

Santana Row

DTSC is playing a role in the conversion of one of the few remaining vacant parcels at San Jose’s iconic Santana Row. The owner of Santana Row, Federal Realty Investment

Trust, proposes an eight-story office building and five-story parking garage on the 3.5-acre surface parking lot. Historically, this property was used for orchards and agriculture until Town & Country shopping center was developed in the 1960’s. Since Town &

Country was demolished in the late 1990s, DTSC has been involved in building Santana

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Row. DTSC approved and oversaw a cleanup plan, and an amendment to that plan, in 1999 and 2001, respectively, as part of the original redevelopment.

Los Angeles River “Crown Jewel”

DTSC will supervise the cleanup of a 42-acre riverfront parcel, known as the “crown

jewel” of the Los Angeles River, as part of a revitalization plan. The land, purchased by

the City of Los Angeles, was part of the recently developed Taylor Yard, a 250-acre yard owned by Union Pacific Railroad, according to city officials. DTSC will work with the City to create a plan for remediation to clear the site for public use.

Scotts Valley School Cleanup

DTSC is playing a role in the renovation of a 75-year-old school near Santa Cruz. The Scotts Valley Unified School District asked DTSC to oversee cleanup of lead, as well as the pesticides dieldrin and chlordane, which were found in soil at the Scotts Valley Middle School. Chlordane and dieldrin are chemicals commonly used to kill termites and the lead is believed to have resulted from paint on old building materials.

Rancho Cordova Soccer Complex

The San Juan Soccer Club proposes to build four soccer fields on a portion of the former Purity Sales – Delta Gunite property at Kilgore and White Rock roads. The site was used for a variety of purposes, including oil recycling and waste disposal, until 1984. DTSC supervised a cleanup of approximately 14 acres that included excavating 140 cubic yards of soil, confirmation sampling, backfilling and installing an asphalt cap and liner over a portion of the property. The soccer fields and accompanying parking lot are allowed under a land-use covenant DTSC required to minimize exposure and prevent inappropriate land use.

South Central Los Angeles Communal Garden

An $86,230 sub grant from DTSC helped the nonprofit Los Angeles Neighborhood Land Trust create the Fellowship Garden of Love at Holmes, consisting of a garden and park. The sub grant came through a U.S. EPA Brownfields Revolving Loan Fund Grant. DTSC provided the sub grant after elevated levels of lead were found at shallow depth in three places during the land-acquisition process. The Los Angeles Neighborhood Land Trust replaced the top layer of soil—as much as three feet in some places—and installed elevated planter boxes to ensure food from the garden was free of the contamination. Los Angeles County donated the land and First 5 LA contributed $110,000. The garden also hosts a unique partnership with Martin Luther King Jr. Community Health Center across the street. The Center’s public health nurses will use

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the garden for nutrition counseling. A volunteer committee of residents maintains the garden and park.

Exide Technologies (Exide)

Closure of the Exide facility in Vernon, and the subsequent $176.6 million lead cleanup project authorized by Governor Brown, remains one of DTSC’s top priorities. It is the

largest residential cleanup of its kind in California history, both in size and financial commitment, and one of the largest in the nation. The plant suspended operations in 2014 and never reopened after DTSC initiated the process of denying Exide’s permit

application in 2015. DTSC concluded the plant could not operate in compliance with California standards, and issued an order structuring Exide’s obligations to close the facility and clean up its contamination. In February 2016, Governor Brown committed $176.6 million to expedite and expand testing and cleanup of the community, including residential properties, schools, daycare centers and parks near the closed Exide plant. By the end of 2016, DTSC’s project team:

• Finalized a plan to safely close the 15-acre Exide site, and dismantle and remove hazardous waste management buildings and equipment on the property, while keeping nearby residents safe from exposure to harmful air emissions and other demolition hazards.

• Proposed a comprehensive draft cleanup plan to remove lead-contaminated soil from about 2,500 residential properties with the highest level of lead in soil and greatest exposure risks to residents. DTSC finalized the plan in July 2017 and cleanup is planned to begin in 2017.

• Cleaned up over two dozen properties with highest levels of lead in soil under Time Critical Removal Action in 2017.

• Created a program to provide job skills to community residents near the Exide plant, so they can be hired to help restore their neighborhoods.

• Investigated the industrial neighborhood around the plant to identify environmental impacts, and order the company to take corrective action.

• Opened an office in Commerce to better serve residents who are impacted by emissions from the past operation of the facility. The office also will contain staff involved in the project, which will clean up parcels with the highest levels of lead and greatest risk of exposure.

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Universe of Cleanup Activities

Since its inception, the Cleanup Program has overseen nearly $1.9 billion in resources to clean up contaminated sites in California, restoring more than 635,000 acres of contaminated land at 4,333 sites for productive reuse. The Cleanup Program tracks work progress using a series of metrics, including the number of projects, project type and status, types of cleanup actions completed and number of acres restored. In FY 2015-16, the Cleanup Program restored 1,345 total acres of contaminated land, protecting public health and returning the land to beneficial use. In FY 2016-17 the Cleanup program restored an additional 2,541 acres. The charts and tables below show work progress for select metrics.

Voluntary Cleanup30334%

School17920%

Evaluation10111%

FUDS10011%

State Response or NPL

110, 12%

Corrective Action, 47, 5%

Closed Base, 13, 2%

CalMortgage, 23, 3%

Open Base, 4, 0%

Pre-Agreement, 5, 1%

*Historical, 5, 1%

State Response or ERAP, 2, 0%

Tiered Permit, 1, 0%

Other, 53, 7%

Cleanup Universe (FY 2014-15 through August 2017)

Commercial / Industrial358 , 14%

Open Space / Recreational, 6 , 0%

Other - Non-Sensitive Use7 , 0%

Residential with Restrictions176 , 7%

Unrestricted Residential

2,001 79%

Acres Returned to Productive Use (FY 2014-15 through August 2017)

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The Program Branches in the regional offices develop an annual work plan that details any committed activities for the coming fiscal year. These commitments demarcate the major milestones in a cleanup project. These milestones also indicate to project managers their workload in specific phases of cleanup projects.

Activity Number Scheduled Completed (%)1

Orders & Agreements 612 581 (95%) Site Screenings2 419 430 (103%) Site Characterization 1187 1197 (101%) Remedy Selections 365 326 (89%) Remedy Implementations 443 436 (98%) Remedy Completion3 238 242 (102%) GPRA4 64 52 (81%) Long-Term Stewardship 225 224 (100%)

Note: Work Plan Activities include all Open and Closed Bases, FUDS, State Response (Expedited Remedial Action Program, NPL, and non-NPL), and Corrective Action projects. 1Completed includes future completions. 2Site Screenings includes Incremental Completions of operating units and areas. 3Remedy Completion includes “Certification” activities as well as “No Action Required” decisions and “No Further

Action” decisions. 4GPRA (Government Performance and Results Act).

In addition to the annual work plans, each Branch develops and maintains Operation Plans. The Operation Plans describe the work completed in the previous fiscal year, Branch accomplishments, performance measures, and plans for the following year. The Cleanup Program Support Branches, Geological Services Branch (GSB), Engineering and Special Projects Office (ESPO), and HERO, track performance measures to meet the needs of the entire Department in a technically sound, efficient, and timely manner. The task performance metrics of “On Time” and “On Budget” are tracked by EnviroStor

work requests, although each of the Support Branches tailor these metrics for their own branch.

Each Branch updates its Operation Plan at the end of every calendar year. Staff work with project managers and their supervisors to make sure that EnviroStor work request data is updated and that all budget changes are properly recorded. Staff also work with project managers and their supervisors to identify and correct any work requests that appear to be underfunded. However, project delays may impact the Branch’s ability to

fulfill all work requests on-time and on-budget. For example, the task in the work request is more difficult to complete than anticipated, additional information is needed that takes time to obtain, or the Branch’s workload is at capacity.

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GSB

Activity Target FY 2015-16

Percentage of Direct Charges – All Geology Staff 75% 81% Percentage of Direct Charges – Technical Staff Only 75% 89% Percentage of Work Requests Completed on Budget 80% 82% Percentage of Work Requests Completed On-Time 80% 75%

ESPO


Percentage of Direct Charges – All Engineering Staff 80% 70% Percentage of Work Requests Completed On-Time 85% 99%

HERO


Percentage of Direct Charges – All Toxicological Staff 80% 76% Percentage of Work Requests Completed On-Time 75% 73%

Spatial Prioritization Geographical Information Tool (SPGIT)

DTSC’s Cleanup Program developed SPGIT in collaboration with the U.S. EPA to more

efficiently locate potential sources of contaminated drinking water and prioritize them for investigation. In 2016, DTSC and the U.S. EPA enhanced the SPGIT by adding a high-resolution three-dimensional (3D) modeling component, specific to the 277-square mile Central Basin of Los Angeles. In 2017, DTSC and the U.S. EPA began applying the 3D model to upgrade our ability to find sites with previously undiscovered or unregulated groundwater contamination. Because of this work, the cities of Bell and Commerce have been identified for continued evaluation; this evaluation is planned for in FY 2017-18.

DTSC has also teamed with both the State and Regional Water Quality Control Boards to develop a Statewide Source Investigation guidance document that will utilize the SPGIT process. A Memorandum of Understanding between DTSC and the State and Regional Water Quality Control Boards is being prepared to allow the continued collaboration between our agencies in this effort.

The Mine Spatial Prioritization Optimization Tool (MineSPOT)

DTSC has teamed with the U.S. EPA, the Army Corps of Engineers and the U.S. Geological Survey to develop a Mine Prioritization process called MineSHAFT. The MineSHAFT is a database designed to prioritize the potential chemical hazards of the approximately 42,000 abandoned mines in California. DTSC has utilized a U.S. EPA grant to also develop a GIS mapping tool for the MineSHAFT database called the MineSPOT. The MineSPOT tool has been used to assess a total of 15 mines in 2017

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and is proposing an additional 14 abandoned mines to be assessed for chemical hazards in the 2017-2018 grant.

Toxicity Criteria Rulemaking

On August 20, 2017, DTSC released a draft regulation entitled “Toxicity Criteria for Risk

Assessments, Screening Levels, and Remedial Goals” for public notice and comments.

The comment period closed on September 20, 2017, and DTSC is in the process of finalizing response to comments on the draft regulation. The rule will formalize a toxicity criteria selection procedure that DTSC and U.S. EPA Region 9 have relied on since 1994. When adopted, the rule will require use of certain peer-reviewed toxicity criteria, published by OEHHA, for developing remedial goals for hazardous substance release sites in California. The intent of the rule is to ensure that our selected cleanup goals are consistent statewide and protective of California’s diverse population. The rule is

expected to be formally adopted in early 2018.

Post-Closure Rulemaking

On October 13, 2017, DTSC released a draft regulation entitled “Federal Post-Closure Rule, Draft State Regulations, Addition of Enforceable Documents and Flexibility for Post-Closure Requirements.” The public comment period on the draft regulation ends

on December 1, 2017, and DTSC will hold a public workshop and a public hearing on the proposed regulation. This proposed regulation when adopted will restore DTSC’s

authority to impose post-closure requirements through an enforcement order or an enforceable agreement. The rule is expected to be formally adopted in the first quarter of 2018.

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SAFER PRODUCTS AND WORK PLACES PROGRAM

The IRP devoted portions of two public meetings between June and August 2017 to DTSC’s SCP Program. These meetings culminated in the Panel’s seventh and eighth

quarterly reports, which included recommendations to the Governor’s Office and

Legislature and recommendations for improvements to DTSC. Additionally, the IRP recommended goals for SCP. As a result of the Panel’s focus, DTSC responded to

three requests via presentations and other supplemental information. For more information, visit the IRP’s web page at


SCP Information Requests to DTSC 2 Recommendations for the Governor and Legislature 2 Recommendations for DTSC 3 Recommended Goals 3


Overview

SPWP houses two branches: the inward-facing Health and Safety Branch (HSP) that keeps all DTSC staff protected and productive in the office and out in the field, and the public facing SCP, which is charged with accelerating the quest for safer chemicals in consumer products.

HSP provides training and support, ranging from hazardous waste operations and emergency response (HAZWOPER) training, to providing ergonomic support and training for office staff. HSP also provides consultative services to characterize the nature and scope of contamination, and the dangers posed by it at industrial, residential, and abandoned sites.

Through a robust and transparent process, the SCP program aims to reduce toxic chemicals in consumer products, create new business opportunities in the emerging SCP industry, and help consumers and businesses identify what chemicals are in the products they buy. To accomplish these goals, SCP must put the regulation’s four steps

into effect: Candidate Chemicals, Priority Products, Alternatives Analysis, and Regulatory Responses.

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Health and Safety Branch

During FY 2016-17, the HSP provided more than 75 training classes, including HAZWOPER (initial and refresher) and cardio-pulmonary resuscitation/first aid/automatic external defibrillator. More than 1,500 DTSC and CUPA participants received training from HSP. It also provided statewide field support to DTSC’s HWMP,

OCI and Cleanup Program projects. HSP totaled more than 150 field days providing support in anticipating, recognizing, evaluating and controlling the hazards found at burned-out sites, and active and abandoned facilities.

Safer Consumer Products Branch

SCP relies on three programmatic pillars for implementing the SCP regulations: 1) build capacity, 2) execute deliverables, and 3) demonstrate leadership.

1) Build Capacity. The program must ensure staff have the necessary knowledge and skills to implement the regulations. Expertise in areas such as economic analysis, data and informatics, exposure science, product formulation and design, supply chain management, and green chemistry are required. These skill sets have not been needed by DTSC in the past. The program is also developing

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infrastructure to support its operations, including technology tools and improved access to scientific literature.

2) Execute Deliverables. The SCP program must comply with regulatory timelines and perform the work required in all four steps of the SCP regulations. SCP has developed best practices and business processes for project management. It has also completed a Lean Six Sigma project to accelerate the development of Priority Product technical documents which form the basis for listing products.

3) Demonstrate Leadership. The program must provide the leadership commensurate with this unique California regulatory framework to signal to manufacturers, researchers, educators, and other regulators our programmatic intent and needs.

Building Capacity

Staffing

SCP has hired strategically, adding expertise in exposure science, product development, and economics, and has continued to reinforce key competencies and program standards. Program staff participated in group trainings of core competencies, including writing, stakeholder communication, and project management. SCP has established best practices and a shared understanding of the processes and procedures of project management, stakeholder engagement, and Green Ribbon Science Panel meetings. Staff in the OEIM, HERO, the Office of Legal Affairs, and the OC are integrated into these practices.

CalSAFER Data System

The second phase of the CalSAFER project was brought online in April 2017 with functionality to support all aspects of the stakeholder and responsible entity interactions called for in the SCP regulatory process. Continuous improvement is underway to improve the user experience and optimize the workflow and communication components of the online data management system. SCP has partnered with OEIM to adopt agile technology development to improve development time and CalSAFER functionality.

SCP used CalSAFER to facilitate public comment periods associated with the Alternatives Analysis Guide, Priority Product Work Plan topics, and rulemaking activities. CalSAFER makes critical program information and submitted comments readily available for public review and comment.

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The program continues to maintain a searchable database of the Candidate Chemicals list on CalSAFER.

Executing on Regulatory Requirements

Priority Products

DTSC completed rulemaking to list its first Priority Product, children’s foam-padded sleeping products containing tris(1,3-dichloro-2-propyl) phosphate and tris(2-chloroethyl) phosphate; the regulations became effective July 1, 2017.

DTSC has proposed to list spray polyurethane foam systems with unreacted methylene diphenyl diisocyanates as a Priority Product. Rulemaking was initiated on March 24, 2017.

SCP staff have drafted proposed regulations on paint products that contain methylene chloride. Rulemaking is expected to begin in Fall 2017.

Based on these actions, processes for developing, reviewing, and managing rulemaking have been established and will expedite future Priority Product listing actions.

SCP researched the seven product categories named in its first three-year Priority Product Work Plan (2015-2017) with the goal of identifying and selecting potential Priority Products from the named categories. The Chemical Product Evaluation Team began public engagement in late 2016 in the following three topic areas:

• Potential aquatic impacts and continued uses of nonylphenol ethoxylates and triclosan,

• Potential health and safety impacts of chemicals in nail products, and

• Perfluoroalkyl and Polyfluoroalkyl Substances in carpets, rugs, indoor upholstered furniture, and associated care and treatment products.

SCP gathered extensive data from stakeholders on these topics. The methods for this stakeholder engagement now serve as the basis for additional best practices for information gathering. The research staff participated in a Lean Six Sigma project to streamline communication and decision making for Priority Product research. Process improvements are under way to implement the Lean Six Sigma process findings.

Alternatives Analysis

SCP released the final Alternatives Analysis Guide in June 2017. This guidance will help manufacturers comply with requirements to look for safer alternatives using a

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comprehensive analysis of hazards, chemical exposures, and potential life cycle impacts of their Priority Products.

Healthy Nail Salons

Assembly Bill 2125 (Chiu), Chapter 564, Statutes of 2016, requires DTSC to publish guidelines for Healthy Nail Salon Recognition programs by January 1, 2018. The Healthy Nail Salon Recognition Team, which is comprised of staff from SCP and EJ and Tribal Affairs, has begun drafting guidelines illustrating the requirements a salon must meet to qualify for recognition. The next phase of developing the guidelines will include reaching out to consumers, nail salons, and county, public, and/or environmental health departments for feedback. DTSC is collaborating with local governmental agencies and the Healthy Nail Salon Collaborative (HNSC) to produce draft guidance. SCP staff have attended coordination meetings between HNSC, Los Angeles County, and Los Angeles City officials to initiate efforts to implement the program in the greater Los Angeles area. This effort has received support from the HNSC and the California Conference of Directors for Environmental Health.

Leading the way

The SCP Program has provided leadership through collaboration, coordination, information sharing, and by leveraging market forces, emerging science, and other regulatory actions to achieve program goals. SCP developed strong partnerships through Memoranda of Understanding with the U.S. EPA, Washington, and Oregon to promote sharing of information, coordinate training, and increase expertise. SCP has been able to give input to help direct the U.S. EPA’s development of tools for exposure

assessment. Through technical presentations, partnerships with other regulators, and outreach to the regulated community, staff have been able to introduce the SCP framework to researchers, global regulators, and stakeholders, and to identify tools (e.g., new analytical methods and economic tools) which can be applied during SCP decision making, as well as used by manufacturers interested in making safer, more sustainable products.

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PUBLIC ENGAGEMENT

The IRP devoted portions of five public meetings between August and October 2016 to DTSC’s public outreach and a brief evaluation in November, December and August 2016. These meetings culminated in the Panel’s fourth quarterly report, which included

information requests, recommendations to the Governor’s Office and Legislature,

recommendations for improvements to DTSC, and recommended performance metrics for OPP and EJ and Tribal Affairs. The IRP revisited DTSC’s public outreach initiatives

in February and September 2017. As a result of the Panel’s focus, DTSC responded to

more than 30 requests and recommendations via reports, presentations, and other supplemental information. For more information, visit the IRP’s web page at


Public Participation / EJ Information Requests to DTSC 13 Recommendations for the Governor and Legislature 5 Recommendations for DTSC 11 Recommended Goals and Performance Metrics 2


Overview

DTSC’s EJ and Tribal Affairs, OPP, and OC are working collaboratively to better

understand community needs around contaminated sites and permitted facilities, and to tailor communication and engagement strategies to better meet those needs. Additionally, these Offices work with the CalEPA on a number of statewide initiatives. These partnerships are expected to result in clearer procedures, templates for documents, and other steps to improve public outreach, trust, engagement and understanding of DTSC’s programs and functions.


Verification Questionnaires

During FY 2015-16, HWMP’s Policy and Program Support Division improved its

processing of Verification Questionnaires through focused outreach and technical support of the electronic form (rather than paper). These improvements increased electronic submittals from 40 percent, to more than 90 percent, for the 2015-2016 cycle, saving DTSC nearly $100,000 in postage and paper mail outs, and reducing paper use by 85 percent.

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In FY 2015-16, DTSC implemented a pilot project to receive public comment on draft settlement agreements. Because participation by respondents and defendants is voluntary (regulations do not require public comment), DTSC had a hard time securing feedback. A statutory change may be necessary to overcome this problem.

EnviroStor and Website Upgrades

In 2014, the DTSC website and EnviroStor were upgraded to provide access to inspection data and reports for permitted facilities, Summaries of Violation, and enforcement settlements. Inspection and enforcement data is also being made available online. A webmaster was hired and started June 1, 2017, and an assessment of the website is currently in process by an outside vendor.

Based on feedback from a December 2016 EnviroStor Improvements webinar, DTSC released an enhanced EnviroStor Public Website in September 2017. The enhancements include incorporating CalEnviroScreen 3.0 data, improving search tools and layout for ease of access, and providing enhanced navigation for external stakeholders to find reports. In addition to system enhancements, DTSC has also updated the policies regarding uploading of documents to make it easier for internal users to upload documents.

The new website was made possible through the efforts of the EnviroStor Public Website team, which included representatives from the Cleanup Program, HWMP, OC, OPP, EJ and Tribal Affairs, and OEIM.

Public Engagement Work Plan

The goals of the Public Engagement Work Plan are to ensure early, ongoing and frequent public outreach and engagement with impacted communities, create a more direct connection between public feedback and decisions made by DTSC, build capacity for public outreach and engagement within communities and within DTSC, and to increase community access to data and information relevant to decision-making.

DTSC contracted with University of California, Davis Center of Collaboration and Policy in April 2015 to build on its modernization initiative and UC Davis was tasked with organizing and conducting statewide conversations with stakeholders to solicit their recommendations for change. The recommendations will help DTSC develop additional strategies for enhancing outreach tools, and program workflow processes, methods, and guidance documents. The UC Davis Extension Collaboration Center released its draft recommendations in December 2015. DTSC held meetings between December 2015 and February 2016 with environmental groups and environmental justice advocates statewide to solicit initial feedback and support.

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DTSC is reviewing the report to evaluate the recommendations in light of the Public Participation Work Plan development, resource considerations (including staff availability and program budget), and legislative and regulatory requirements.

Enhanced Community Assessment Models

Enhanced Community Assessment Models allow project managers and specialists to understand and customize the public engagement approach based on the level of public interest for any project, and expand the influence of community surveys and community visits. The enhanced assessment model provides guidance to avoid subjectivity by decision-makers because the decisions are directly informed by the historical context of a project and the community where the project is being proposed.

The enhanced community assessment models are designed to be responsive to community organizing, taking into account that those affected by a decision have a right to be involved in the decision-making process. The models enable DTSC to recognize and communicate the needs and interest of all participants, including decision-makers, and to facilitate the involvement of those potentially affected by, or interested in, the decision. The model will also provide a community with the information it will need to participate in the project, as well as enable DTSC to communicate if, or how, public input affected the decision.

The Permitting Division of HWMP is piloting improvements that will include a new public engagement process for early involvement in vulnerable communities. DTSC is developing a process to consult with tribes and develop environmental justice analyses early in a permit application or renewal process. The enhanced community assessment model was initially based on 20 variables across five categories. The variables and criteria were developed from accessible and useful data sources (Community Survey, CalEnviroScreen, Local newspapers, etc.) to establish parameters for a tiered interest level approach. This approach was modeled after the community approach developed for Identifying Violations Affecting Neighborhoods (IVAN) task forces.

Beta Test Projects assessed interest levels for Westmorland and Riverbank Oil with the outcome of the assessment identifying necessary modifications to the tool. Currently, a pilot test of the enhanced tool is assessing the community interest for two permit renewals (Westmorland Landfill, Imperial County and Dow Chemical, Pittsburg) and one permit modification (World Oil San Joaquin, Parlier).

The Cleanup Program determined it would be beneficial to revise the public outreach procedures for voluntary cleanup projects to tailor and enhance those efforts. A working group was created with representatives from the Cleanup Program, the OPP, and EJ and Tribal Affairs to develop a community assessment model that customizes

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appropriate public engagement activities for voluntary cleanups. The goal of the community assessment model is to build a process where the OPP and EJ and Tribal Affairs staff are involved early in the process, gain an accurate assessment of the community and its outreach needs, customize outreach strategies to meet community needs, and involve tribal communities when appropriate.

The community assessment model will measure the level of interest for the type of community engagement DTSC will apply in its oversight of a voluntary cleanup project. An enhanced community assessment tool will use variables and criteria to measure a site to determine that level of interest. From there, a public participation flowchart will guide DTSC staff as to the appropriate public participation activities applicable for that site.

Tribal Consultation in Cleanup Projects

Tribal consultation activities, which rely on building and maintaining trusted relationships, have previously been limited and lacked effective coordination within DTSC. Assembly Bill 52 (Gatto), Chapter 532, Statutes of 2014, set forth specific requirements for consultation with California Native American Tribes, with the intent of recognizing and protecting tribal cultural resources. DTSC followed this measure with a Draft Tribal Consultation Policy that promotes tribal cultural sensitivity and trust, and provides consultation with tribal communities on environmental matters. The Tribal Consultation Policy is scheduled to be finalized in early 2018.

Historic Agreement to Resolve Title VI Civil Rights Complaint on Kettleman Hills Permitting Decision

On August 16, 2016, DTSC and CalEPA reached a historic agreement with Greenaction and El Pueblo to resolve their civil rights complaint over DTSC’s 2014 decision to

approve a permit to expand the Kettleman Hills hazardous waste landfill. The agreement is one of the first voluntary resolutions jointly developed by state agencies and community groups under Title VI of the federal Civil Rights Act, which prohibits discrimination based on race, color, or national origin in any program or activities receiving federal funding.

The agreement aims to improve public health and environmental quality for people in Kettleman City and enhance the transparency and rigor of DTSC’s compliance with civil

rights laws. The agreement describes factors related to environmental justice that DTSC will consider when reviewing Chemical Waste Management, Inc.’s pending application to renew its operating permit for the Kettleman Hills landfill, and any expansion application submitted within three years.

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DTSC updated, with input from community stakeholders, its Civil Rights Policy and developed a new policy on Language Access. These draft policies were released for public comment in September 2017 in six languages, including English, Spanish, Tagalog, Korean, Chinese, and Vietnamese. In accordance with Section IV: Programmatic and Regulatory Terms of the Kettleman Title VI Settlement Agreement, DTSC is establishing a foundation and process for compliance with Title VI.

Agency-Wide (CalEPA) Initiatives

CalEPA Environmental Complaint System

In FY 2015-16, DTSC helped roll out the new online CalEPA Environmental Complaint System. This tool enables Californians to report an environmental problem anywhere in the state and provides agencies with valuable information about potential environmental hazards and violations. Once a complaint is filed, it is routed to the appropriate state or local agency. DTSC helps review and route California complaints. In FY 2015-16 DTSC conducted three California Compliance School classes for business communities, including one in Spanish. Additionally, the EERD is working with the OPP and community relations staff to establish strategies in promoting community education and engagement in enforcement activities.

CalEPA Environmental Justice and Compliance Work Group

DTSC is a strategic member of the CalEPA Environmental Justice and Compliance Work Group. DTSC has participated in the LA Initiative in Boyle Heights and Pacoima, with environmental justice as a key concern. According to CalEnviroScreen, these communities were among the most disadvantaged in California. Community members were engaged through community consultations that provided public input to agencies on where inspections and resources should be focused. The consultations also provided opportunities to inform the public about each agency’s roles and

responsibilities.

In Boyle Heights and Pacoima, staff provided three California Compliance School classes for local businesses, including one in Spanish. They also conducted 23 inspections and prepared four formal enforcement actions. A summary of the initiatives was released by CalEPA:

• Boyle Heights: Led 12 hazardous waste facility inspections; Joint inspection with LA CUPA and LA; County Fire/Health/HazMat with 11 inspections; Joined other agencies on 23 joint inspections; Coordinated with the U.S. EPA, DPR and CalRecycle on joint inspections.

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• Pacoima: Led 12 hazardous waste facility inspections; six joint inspections with LA CUPA, LA County Fire/Health/HazMat and State Water Board.

Workforce for Environmental Restoration in Communities Program (WERC)

The WERC program was created to train under-employed residents living in communities impacted by the former Exide Technologies facility. The program requires that at least 40 percent of total hours worked on the Exide project will be performed by residents who live in the surrounding area. DTSC is also collaborating with workforce development experts at the Los Angeles Trade-Technical College and other schools to enroll residents in college.

Forty-nine community residents have received training from the University of California, Los Angeles Labor Occupational Safety and Health Program (UCLA-LOSH), the National Association of Training and Environmental Consulting International, Inc., ThermoFisher Scientific, and employment readiness training. Graduates are certified as Lead Sampling Technicians by the California Department of Public Health to safely perform lead sampling in their communities. Graduates are also certified in HAZWOPER, and receive health and safety training. Since August 2016, DTSC’s two

lead sampling contractors, Arcadis Environmental and EFI Global, Inc., have employed 45 WERC graduates.

SEP Policy

On May 5, 2016, DTSC’s official SEP Policy was signed. The SEP policy complies with

California Public Resources Code Section 71118 and is part of DTSC’s commitment to

environmental justice. DTSC will prioritize the use of SEPs in California’s most impacted

and vulnerable communities, including California Native American Tribal communities. The EERD is developing a Departmental Procedure Memorandum for various parts of the SEP process.

DTSC has completed outreach to disadvantaged communities across the State, limited outreach to tribes through our avenues of communication, and continues to reach out through other areas of the CalEPA Environmental Justice Task Force Initiative. The project proposals that have gone through the SEP Panel Review process continue to be sent to CalEPA in order to update their list and comply with statute.

Identifying Violations Affecting Neighborhoods Network

DTSC is a founding government partner and sponsor of the IVAN network, and participates in eight statewide community-led monthly task force meetings and IVAN reporting networks.

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DTSC helped launch the Kings County IVAN on February 11, 2015, as the result of efforts by the Valley Latino Environmental Advancement Project to address EJ issues in Kings County. A new and improved version of the existing IVAN platform will help the community better report environmental concerns. DTSC helped plan and develop this task force, which launched in late July 2015. It is hosted by Greenaction and members of the California Environmental Justice Coalition. The BVHP Task Force is the most recent addition to the statewide IVAN Network. The Branch Chief for the Imperial and Trinity CUPAs also co-chairs the Imperial County Environmental Justice Task Force.

Task Forces

DTSC receives and refers or investigates environmental complains and incident reports. With staff from OPP and HWMP, the EJ and Tribal Affairs participates in many regional task forces to help respond to community concerns and share updates about DTSC’s

work. Staff participate in these task forces often and to the extent that resources allow. DTSC currently participates in 14 EJ Community Task Forces, 36 Office of Criminal Investigation Task Forces and 27 Cleanup Task Forces.

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ENVIRONMENTAL CHEMISTRY LABORATORY

The IRP devoted a portion of two public meetings between December 2016 and January 2017 to DTSC’s ECL. DTSC responded to two requests via presentations on

ECL’s support of the Cleanup Program for sample analysis ensuring quality data. This section provides an update as to where the ECL stands on implementing the various initiatives. For more information, visit the IRP’s web page at


ECL Information Requests to DTSC 2 Recommendations for the Governor and Legislature 0 Recommendations for DTSC 0 Recommended Goals and Performance Metrics 0

Overview

The ECL provides scientific leadership in analytical and environmental chemistry to DTSC and other CalEPA programs serving the public’s need for expert, precise and

professional environmental research and chemical analysis. ECL’s Berkeley and

Pasadena labs include three branches: Analytical Chemistry, Environmental Chemistry and Biomonitoring and a Quality Assurance Section supporting the entire laboratory. Fifty DTSC scientists and support staff, and 10 grant-funded visiting scholars, carry out its work. More than one-third of ECL scientists have doctoral degrees and more than half have a graduate degree.

ECL is the State’s reference laboratory, providing legally defensible data for DTSC and

its programs. Work includes responding to requests from project managers, participating in special projects and initiatives, researching and identifying emerging chemicals, and exploring new technologies to address concerns and issues. Activities include sample analysis, consultation, and expert witness testimony in support of DTSC enforcement and criminal investigations; measurement of chemicals in soils and groundwater from contaminated sites; development of new methods to measure emerging contaminants and non-standard analytes in complex matrices; special studies on toxic chemicals in consumer products; providing data to support new statutes and regulations; document review and data evaluation in support of permitting and clean-up projects; and, biomonitoring studies and exposure assessment of persistent, bio-accumulative and toxic chemicals in humans and wildlife.

ECL also collaborates with universities and state and federal agencies to investigate the presence of persistent, bio-accumulative and toxic chemicals. Through federal grants, ECL provides information on fate and transport, biomonitoring and health effects of

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these chemicals on humans and wildlife. The science and data provided by ECL are essential to developing new regulatory standards.


Statewide Trend Analysis of Blood and Tissue Contaminants

Through its California Biomonitoring Program, ECL staff has analyzed more than 150 chemical contaminants in the blood or urine of approximately 5,000 Californians. As part of this Program, ECL has investigated exposures to mothers and infants, firefighters and teachers, Central Valley residents, pregnant women and ethnic minorities.

Development and Validation of New Testing Procedure for Total Metals in Glass

Because commercial hazardous waste testing laboratories generally do not have the ability to test for total metals in glass, ECL developed and validated a procedure that ensures complete salvage of arsenic, cadmium, chromium, lead and mercury from the glass. This gives ECL the capability to support enforcement efforts, product testing, and requests from other state agencies for assistance.

Peer-Reviewed Publications of ECL’s Research

ECL has published many of its beneficial environmental studies in peer-reviewed scientific publications, inviting other scientists to learn about and expound on their work. Since the mid-1980’s, ECL scientists have published more than 250 scientific papers, averaging six-to-seven papers per year. A list of publications is maintained, updated regularly, and reprints are made available to the public (http://www.dtsc.ca.gov/ECL/ECLDocs.cfm). The following chart represents yearly published ECL reports from 1985 through 2016.

0

2

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92

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20

01

20

02

20

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10

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16

ECL Publications

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Examples of recent publications:

• A study that analyzed breast milk samples from healthy, first-time mothers found significantly lower PBDE levels, but also determined that 30 percent of breastfed infants continue to be exposed to unacceptable levels of PBDEs. Guo W, et al., Chemosphere, 150: 505-513, 2015.

• As part of the California Biomonitoring Program, ECL measured PBDEs, PFAS, PCBs, PAHs and pesticides in the blood of 101 Southern California firefighters. They found firefighters using respirators or self-contained breathing apparatus had lower levels than those who did not. Park JS, et al., Environ Sci Technol, 49 (5): 2948-2958, 2015.

• To explore whether chemical exposures continue at their fire stations, dust samples from vacuum cleaner bags were collected from 20 fire stations and analyzed for PBDEs, PAHs and PCBs. PBDE levels were much higher than the other classes of chemicals and much higher than levels in California homes sampled at the same time. Shen B, et al., Environ Sci Technol, 49 (8): 4988-4994, 2015.

• ECL assisted the Department of Consumer Affairs by developing an innovative new approach to screen samples for the presence of bromine and phosphorus in furniture, elements commonly found in flame retardants. This new screening provides manufacturers and other stakeholders with a method to test their products to ensure compliance. Petreas M, et al., Chemosphere, 152:353-359, 2016.

• In collaboration with the Cancer Prevention institute of California, City of Hope and University of California, Irvine, ECL measured PFAS in women living in communities where PFAS was reported in the local drinking water system. Using PFAS measurements from the blood of 1,556 women for an ECL breast cancer study on California teachers, staff found that women living in areas served by water districts where PFAAs were present had 30-40 percent higher PFAAs levels in their blood. This is the first study to demonstrate an association between PFAS blood levels and the chemical in drinking water supplies among populations with no previously recognized water contamination. Hurley S, et al., Environ Sci Technol Lett, 3:264–269, 2016. The article generated much interest, and it was republished by Chemical Watch and C&E News.

• In collaboration with the San Francisco Estuary Institute, ECL measured PFASs in wastewater effluent samples from eight treatment plants that discharge into San Francisco Bay. The highest levels were found in samples from the Suisun/Fairfield treatment plant (serving Travis AFB) and the SFO treatment plant. Elevated levels

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from these two plants are likely related to AFFF sources at the airports. Houtz E, et al., Water Res, 95: 142-149, 2016.

Program Infrastructure Improvements

Accreditation to ISO 17025

ECL is pursuing accreditation to the ISO 17025 international laboratory quality management standard. Achieving this accreditation will provide an additional, independent, measure of the quality of the work produced by the lab. ECL has worked with a consultant to train all staff on the ISO 17025 quality management standard, developed policies and standard operating procedures, and ECL is also working with the consultant on a gap analysis and obtaining the on-site audit and accreditation from an independent accrediting body.

Laboratory Information Management System (LIMS)

ECL is working with OEIM toward procuring a comprehensive LIMS. The LIMS is a critical component of a laboratory’s operations. It will allow ECL to maintain the security

of the laboratory’s data, track all elements of its quality system that could affect the

quality of its results, schedule and manage assignments, track performance metrics, track all documents and records, and track and forecast its budget. ECL and OEIM carried out a Business Needs Assessment and an Alternatives Assessment, and currently are assessing how to procure and implement the LIMS

Advanced analytical instruments

ECL received a total of $3.1 million in SEP funds as part of settlements from two statewide prosecutions of major corporations for illegal disposal of hazardous waste. The funds were designated for purchase of advanced instrumentation that would allow ECL to enhance its analytical capabilities to support enforcement, cleanups, and safer products and workplaces. ECL staff are currently being trained on the instruments, validating their use for analytical methods, and developing new and enhanced methods. The instruments will allow ECL to measure chemicals at lower concentrations, increase throughput, and identify non-target chemicals of emerging interest to DTSC and the State.

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INFORMATION TECHNOLOGY

As the IRP devoted its attention to DTSC’s program areas, the Panel provided nine

recommendations for DTSC to improve the way information is presented to stakeholders. The recommendations primarily related to how users interact with the CalEnviroScreen, DTSC’s Public Web Site and the Public EnviroStor. OEIM plays a

vital role in ensuring the underlying infrastructure of these platforms can support the improved user-interface. This section provides an update on the status of DTSC’s

implementation of various IT initiatives. For more information, visit the IRP’s webpage at http://www.dtsc.ca.gov/GetInvolved/ReviewPanel/Independent-Review-Panel.cfm.

IT CalEnviroScreen 1 DTSC Public Web Site 5 Public EnviroStor 3

Overview

OEIM delivers IT resources and services, leverages common solutions, and provides a secure infrastructure throughout Department to provide DTSC business and administrative programs with the tools and services they need to achieve strategic priorities. OEIM’s 58 analyst, software, programmer, and geographic information systems (GIS) staff are organized into three distinct units: Customer Support (CS), Application Development Support Unit (ADSU) and the Project Management Office (PMO).

OEIM is charged with delivering on-time, high-quality, and secure IT services to DTSC’s

business and administrative programs. This includes all aspects of IT and telecommunications that support DTSC’s environmental management systems,

business applications, data management, desktop tools, email, internet access, phones, web platform, information security and application development services. OEIM also collaborates with CalEPA and its departments to achieve efficiencies and cost-savings by leveraging shared services, open data partnerships and geographic information system services.

IT is known to be the most quickly changing industry in the world, its rapid growth enabling technology transformations that afford more productive and extensive research and analysis capabilities. As new technologies are developed, additional demand is placed on employers to hire highly skilled employees with the most up-to-date experience and education. California State departments are faced with outdated personnel rules that restrict the ability to hire these highly skilled candidates and lack incentives to attract the most qualified IT staff. While DTSC also faces these challenges,

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OEIM has successfully supported critical technology needs. However, DTSC still relies on 28 legacy applications that will require modernization to support business needs and ensure sustainability, reliability and security.


SPGIT

In 2016, ADSU’s GIS team developed SPGIT. In 2017, integrated 3D modeling was

added to improve discovery and investigation. For a detailed description of SPGIT, see Brownfields and Environmental Restoration Program.

MineSPOT

In 2017, ADSU’s GIS team developed a database tool for prioritizing abandoned mines

with chemical hazards. For a detailed description of MineSPOT, see Brownfields and

Environmental Restoration Program.

Collector Application

In 2016, ADSU’s GIS team developed a mobile application for canvasing affected Exide

properties, and collecting and tracking sampling access agreements. In 2017, ADSU’s

GIS team enhanced the Collector Application for tracking Exide cleanup access agreements and parcel sampling data.

CalSAFER

In 2016, ADSU supported SCP’s continuous improvement efforts by developing

CalSAFER Phase 1. In 2017, ADSU and SCP teams completed 10 Agile Sprints of its software development life cycle to support new features and system enhancements. For a detailed description of CalSAFER, see Safer Products and Work Places Program.

Electronic Verification Questionnaires

In 2016, ADSU enhanced this application to allow responsible entities to make payments online. For a detailed description of the Electronic Verification Questionnaires, see Public Engagement.

CalEPA Environmental Complaint System

In 2016, ADSU supported modernization efforts and customized interfaces for EnviroStor integration. For a detailed description of the CalEPA Environmental Complaint System, see Public Engagement.

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EnviroStor Public Site

On September 27, 2017, EnviroStor upgrades were released to the public, including; a Smart Search tool that allows users to search over 13,000 facilities and sites using various parameters; integrated data from OEHHA’s CalEnviroScreen to provide

additional Environmental Justice context to the facilities and sites; and a map tool that allows users to view facilities and sites on an integrated Google map that supports satellite imagery, terrain maps, street views and distance measuring tools. A new “Take

a Tour” feature allows users to take an interactive tour demonstrating how to use the public EnviroStor site. For a detailed description of the EnviroStor Public Site, see Public Engagement.

Internal Infrastructure Improvements

CRBS

In 2017, the PMO worked with the Office of Administrative Procedures to complete a business and solution alternatives analysis to modernize and address AB 273 (Committee on Environmental Safety and Toxic Materials), Chapter 456, Statutes of 2016, which requires a new cost recovery solution. OEIM completed the Department of Technology’s Stage 1 and 2 Project Approval Lifecycle and has begun Stage 3 of the solicitation activities. For a detailed description of CRBS, see Ensuring Regulatory Work

is Properly Resourced.

EnviroStor Internal Site

In 2017, OEIM has led several enhancements to improve and enhance the application for DTSC’s employees. On August 31, 2017, improvements were made to the Cleanup

Program’s reporting and cost tracking tools. New tools were implemented that generate

conceptual site models of a cleanup project to better define project status, contaminants of concern, associated risks, and the remedies selected and constructed. On September 29, 2017, a new Cost Tracking system was implemented to support data tracking requirements for cost recovery.

Improvements were also made to HWMP’s internal EnviroStor pages. Permit activity

screens were modified to better align with the Permit Issuance process. New reports were released to track Pending Permit Decisions, Expired Permits and Performance Measures. New Enforcement reports were also released to track EPA Violations, Formal Enforcement Actions and Annual Work Plan data. Several new Enforcement tools were implemented for project managers to monitor project workload and inspection statuses, along with tools for updating facility violations. In addition,

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enhancements for the Criminal Investigations module improved statewide case tracking, settlement and complaint tracking, and data quality control tools.

LIMS

In 2016, PMO and ECL began the Department of Technology’s Project Approval

Lifecycle process and completed the business and solution alternatives analysis to modernize ECL’s LIMS. In 2017, PMO worked with ECL to develop a Request for

Information to replace the outdated LIMS. For a detailed description of LIMS, see Environmental Chemistry Laboratory.

Telework Approval Process

In 2017, ADSU modernized DTSC’s telework approval process by developing and

employing digital forms, electronic signatures and automated workflows. This was in support of employee recommendations for electronic document submission found in the Organizational Heath Assessment.

Infrastructure Migrations

In 2017, CS migrated enterprise email services to Microsoft Office 365. The State of California moved all enterprise email services to Office 365 and DTSC participated in the migration during Wave 2. In 2017, CS completed an upgrade of over 1,200 DTSC desktops, upgrading them from Windows 7 to Windows 10 to improve IT security. In 2017, CS reduced the number of DTSC office printers, from over 700 to 150, to support green initiatives to reduce paper and toner use.

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LEAN SIX SIGMA PROJECTS

DTSC presented to the IRP the 2017 cohort of Lean Six Sigma projects between August and October 2017. Several of DTSC’s prior Lean Six Sigma Projects were

presented alongside larger program-specific presentations requested by the IRP. As of 2017, DTSC has engaged in 14 Lean Six Sigma projects through GO-Biz, the U.S. EPA, or an internal initiative.

Objective Anticipated

Achievement Phase

Permitting Process 90% of technical reviews within 13 months FY 2024-25 Implementing1 Process 90% of all permit applications with final decision within 2 years FY 2024-25 Implementing

Reduce average number of NODs per permit by 50% January 2019 Implementing Reduce the processing hours for Standardized Permits that are issued to used oil transfer facilities.

To be

determined Defining2

Increase the percentage of work requests processed on time to above 80% average for all service groups.

To be

determined Analyzing3

Upload documents to the public EnviroStor site within 30 days of receipt. Reduce the backlog of permit documents missing from the public EnviroStor site.

To be

determined Planning4

EERD Complete enforcement actions for 90% of cases within 180 days (for administrative penalty cases totaling $75,000 or less)

August 2018 Redesigned to

address two sub-

processes Complete 95% of Inspection reports in 30 days June 2018 Pilot testing5

Assess and approve 95% of penalties within 14 days of sending the inspection report to the facility (for administrative penalty cases totaling $75,000 or less)

June 2018 Pilot testing

OCI Refer 95% of OCI-led cases within 180 days Ongoing Monitoring6 Cleanup Program Complete Remedy Selection process for 80% within 2 years (for specified projects) FY 2020-21 Pilot testing

Complete 95% of Workplans within 75 days Complete 95% of Reports within 100 days Complete 95% of RAPs and RAWs within 150 days (all for VCP)

December 2018 Developing7

Determine 95% of decisions on CEQA documents within 30 days from end of site characterization (for VCP) March 2018 Pilot testing

SCP Complete 95% of Priority Product Profiles within 1 year May 2018 Developing

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1Implementing (project team uses the tools developed); 2Defining (project team refines

the scope of the objective); 3Analyzing (project team identifies issues and root causes); 4Planning (project team develops the initial project scope); 5Pilot Testing (project team

tests proposed tools); 6Monitoring (project team has achieved its objective and

continues to monitor the improved process for deviations); 7Developing (project team

prioritizes the identified tools to use).

Overview

“Lean Six Sigma” combines two very powerful methodologies into a single, integrated

approach to identify process improvements. “Lean” was developed by the Toyota Motor

Corporation starting in the 1950s and focuses on improving efficiencies and reducing waste, while “Six Sigma” was developed by Motorola, Inc. in the mid-1980’s and

focuses on improving quality and reducing defects through the proper analysis of data and metrics.

In 2014, GO-Biz and the Government Operations Agency partnered to offer a Lean Six Sigma implementation program to State departments that address process-based issues which are causing delays in services to both internal and external stakeholders. Over a six-month period, participants receive training on complex analytical and statistical tools applied within projects that identify waste and inefficiencies in processes.

Participants are certified by completing a project in his or her program under the coaching of a Lean Six Sigma expert. At the completion of a project, the participants implement improved processes and monitor the impact of the changes to his or her program. The resulting improvements have a direct positive impact on governments’

interaction with the public.

Hazardous Waste Management Program

Between 2014 and 2017, HWMP has completed, or is in the process of completing, six projects in the Permitting Division, three projects in EERD, and one project in OCI.

Permitting Division - Technical Review of Permit Applications (Phase 1, 2014)

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC focused on the technical review portion of the process, which is a significant contributor to the overall permit processing time. The current average time to complete a technical review is 20 months, and it can take up to 38 months. Only 20 percent are completed within the 13-month target for a technical review.

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Project Goal: To reduce the technical review time so that 90 percent of all technical reviews will be processed within 13 months.

Status and Next Steps: The project team found that the review of revised applications was taking longer than initial review, 60 percent of hours were being spent on non-value-added activities, and staff were using inconsistent methods for verifying that applications met regulatory standards. The team’s solution was to focus the technical

review on using an existing permit application checklist. DTSC started implementing improvements on October 1, 2014. Since that date DTSC has received 33 permit renewal applications. DTSC completed one of 11 (9 percent) technical reviews within 13 months. The results include data collected for applications that were submitted before the improvements were implemented. DTSC expects to observe a rise in success rates as staff are able to collect data on subsequent reviews.

Permitting Division – Permit Decision for Permit Applications (Phase 2, 2014)

Problem Statement: Through an internal initiative, DTSC focused on the administrative review portion of the process. Only 13 percent of permit applications resulted in a permit decision within two years.

Project Goal: Process 90 percent of all permit applications with a final decision within two years.

Status and Next Steps: The project team found that the average time for administrative reviews was seven months, 70 percent of future administrative reviews were predicted to take longer than 30 days, and the average time for public reviews was 6.6 months. The team’s solution was to focus the administrative review on an existing administrative

review checklist. DTSC started implementing improvements on October 1, 2014. Since that date 33 permit applications have been received and are being evaluated with the improved administrative review checklist. Permitting completed two of nine permit decisions (22 percent) within two years for the FY 2016-17. Eighty-two percent of administrative reviews were completed within 30 days for the FY 2016-17. The results include data collected for applications that were submitted before the improvements were implemented. DTSC expects to observe a rise in success rates as staff are able to collect data on subsequent reviews.

Permitting Division – Notices of Deficiency (Phase 3, 2016)

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC focused on the average number of Notices of Deficiency (NODs) per permit. On average, there were six NODs or NOD-type activities per permit decision.

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Project Goal: Reduce the average number of NODs per permit to half the present amount.

Status and Next Steps: The project team found that the average time for the majority of comments in NODs addressed information missing from the permit application, highlighting a need for early guidance to facilities. The NOD process was not consistent among staff and lacked clarity and direction to facilities regarding NOD comments. The team’s solution was to focus on providing early guidance to facilities by holding a pre-application meeting on site to communicate expectations for the permit application and provide a copy of the permit completion checklist. The team also created NOD templates and guidance, and decided that shortly after issuing a NOD a meeting would be held with the Permitting Project Manager and the facility to go over comments for better clarity.

DTSC started implementing improvements in January 2016. Since that date there have been an average of four NODs or NOD-type activities per permit decision. The current capacity is a 33 percent reduction in the number of NODs. The results are based on data collected for permits approaching expiration immediately after implementing improvements. DTSC expects to observe a rise in success rates as staff are able to collect data on subsequent reviews.

Permitting Division – Processing Standardized Permit Applications (2017)

Problem Statement: Between 2008 and 2012, DTSC generally spent approximately 700 staff hours, on average, processing a Standardized Permit application from a Used Oil Transfer Facility (UOTF). This time accounts for staff hours spent reviewing the permit applications for administrative and technical completeness, addressing deficiencies in the permit applications, performing public participation and California Environmental Quality Act (CEQA) compliance activities, and drafting and making final permit decisions that authorize hazardous waste operations. After a series of organizational foundation improvement activities between 2012 and 2015, the average staff hours had increased to approximately 1,700 hours on UOTF Standardized Permits that were issued between September 2015 and January 2017.

Project Goal: Reduce the processing hours for Standardized Permits that are issued to used oil transfer facilities.

Status and Next Steps: In 2017, through a U.S. EPA Green Belt Certification project, the project team defined the scope of the project, obtained coaching from U.S. EPA’s Lean

Six Sigma Black Belt and Green Belt coaches, fully understood the extent of the problem with baseline data, identified process wastes and derived root causes for key

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process wastes, brainstormed improvement activities, and prioritized improvement activities for financial benefit analysis.

Permitting Division – Work Requests (2017)

Problem Statement: Preliminary data suggested that of all Permitting work requests created in 2016, around 50 percent were completed by the date needed.

Project Goal: Increase the percentage of work requests processed on time to above 80 percent average for all service groups.

Status and Next Steps: In 2017, through a U.S. EPA Greenbelt Certification project, the project team completed a process flow map for general work requests and found that the Office of Legal Counsel (OLC) and OPP were the groups with the highest number of late work requests. The team created a process flow map for OLC work requests to supplement a Departmental Procedure Memorandum, created an “Overdue Work Requests” report, and surveyed all current overdue work requests. It found that 51

percent of Permitting overdue work requests, 41 percent of OPP overdue work requests, and 25 percent of OLC overdue work requests were completed but never closed.

The project team’s solutions will be focused on completing a review of hours for permits

reviewed by OLC, having project managers manage late work requests to triage the need to request closure, request follow-up from management, or move out the request date. The project team will be meeting with OLC to conduct a root cause analysis to determine why work requests are late and revise the Departmental Procedure Memorandum.

Permitting Division – Public EnviroStor Documents (2017)

Problem Statement: DTSC uses the public EnviroStor site as a platform to inform stakeholders of permit related activities at hazardous waste permitted facilities. Missing documents may cause uncertainty and dissatisfaction for stakeholders who are interested in knowing what's going on at these facilities. There are over 400 permit documents that are missing from the DTSC public EnviroStor website. The large number of missing documents represent defects in DTSC's efforts to be transparent.

Project Goal: Identify strategies to ensure that documents are uploaded to the public EnviroStor site within 30 days of receipt, and to significantly reduce the backlog of permit documents missing from the public EnviroStor site.

Status and Next Steps: The project is currently in the planning phase. The project team will use the U.S. EPA’s Lean Six Sigma Green Belt training material to draft a project

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management plan and revise the plan per comments received from the DTSC Project Champion and the U.S. EPA Green Belt coach.

Enforcement and Emergency Response Division - Enforcement Response (2016)

Problem Statement: Through a GO-Biz Green Belt Certification project, the project team found that the time to complete administrative enforcement actions for cases with calculated penalties of up to $75,000 was 395 days, which created stakeholder dissatisfaction and workload planning difficulties.

Project Goal: Reduce the time to complete enforcement actions for administrative cases with calculated penalties of up to $75,000 so that 90 percent of cases are completed within 180 days.

Status and Next Steps: The project team created a new process map that consolidated and reduced multi-level reviews, incorporated parallel processing of the inspection report writing and penalty matrix preparation phase, minimized centralized processing by not requiring the Penalty Working Group to review small-penalty cases (less than $30,000), and reduced batch amounts by increasing the frequency of Penalty Working Group meetings between regular monthly meetings.

The project team also created a Project Management Tracker and used it in a one-year pilot project to capture data required to measure performance against the project’s goal.

The pilot project was initiated in August 2016 and extended through August 2017.

Data was collected and evaluated for 60 inspections conducted statewide. Analysis of the data indicated that the average time to complete those inspection reports was 45 days, and as a result, 16 enforcement cases were initiated. So far, only one administrative enforcement action has been completed, requiring 468 days to complete. The remaining 15 actions are in the Penalty Matrix and Penalty Work Group Phase.

Based on the results of this pilot project, the team determined that the Inspection Report and Penalty Assessment phases contribute significantly to the time required to complete administrative enforcement actions. This prompted the EERD to initiate two additional projects to address those barriers: time to complete quality inspection reports and time to assess penalties (see below).

Enforcement and Emergency Response Division – Inspection Reports (2017)

Problem Statement: This project builds upon the findings of the Enforcement Response project in 2016. Through a GO-Biz Green Belt Certification project, the project team focused on the time to complete an inspection report.

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Project Goal: Complete and submit 95 percent of inspection reports within 30 days.

Status and Next Steps: Staff are in the process of implementing a checklist format for transporter inspections, a Class 2 violation threshold for checklist-based inspections, an inspection report template that concisely documents needed information, sampling kits, creating an Inspection Report Completion Team / Penalty Determination Team (Class 1 Violations), creating standard cover letters for inspection reports, and minimizing review phases for inspection reports.

The project team will develop draft instructions for the newly created documents and processes, pilot test transporter and e-waste inspections in collaboration with the Penalty Assessment Lean Six Sigma Team (beginning in September 2017), and monitor the new process for any needed course corrections.

Enforcement and Emergency Response Division – Penalty Assessment (2017)

Problem Statement: This project builds upon the findings of the Enforcement Response project in 2016. Through a GO-Biz Green Belt Certification project, DTSC identified the penalty assessment phase as a factor contributing to delays in timely completion of enforcement actions. Currently, DTSC takes an average of 259 days to assess an initial penalty (FY 2014-16).

Project Goal: Assess and approve 95 percent of initial penalties for administrative enforcement actions within 14 days of sending an inspection report to a facility.

Status and Next Steps: The project team developed a new process to assess penalties and a Penalty Determination Team that is composed of a Lead Inspector, a Penalty Specialist who is knowledgeable and experienced to ensure regulations are applied appropriately and consistently, a Supervisor, Legal Counsel, and other specialists, as needed (e.g. Branch Chief if high priority case, Geologist if groundwater audit, Financial Assurance Specialist, etc.).

The project team conducted a pilot test of two penalty assessment cases. In both instances, implementing the new processes reduced the time to assess penalties down to 10 days.

The project team, in close collaboration with Inspection Report Lean Six Sigma team, is also pilot testing the new process with transporter and e-waste inspections and will monitor the new process for any needed course corrections.

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Office of Criminal Investigations – Referral Process (2015)

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC found that over the past ten years the average amount of time for a case to be investigated by OCI and referred to a prosecutorial agency has more than tripled, from under five months, to 1.5 years. As this time frame has grown, the number of cases referred annually has decreased by 75 percent.

Project Goal: Improve the OCI investigation and referral process so 95 percent of OCI-led cases are referred within 180 days without compromising the attention to detail required for a successful prosecution.

Status and Next Steps: The project team identified five major root-causes of delays in the current investigation and referral process, including; staff redirected to competing case work; staff vacancies and extended periods of leave; the majority of case work consisting of “non-value added” activities; search warrants taking more time to

investigate and refer than other cases; and time to complete post-field work steps of investigations exceeding the rate at which new cases were opened and resulting in a backlog of active cases.

The project team developed a “Case Tracker” tool to alleviate root causes of delays by

helping staff determine how much time to allocate to an investigation, in order to refer the case in 180 days or less. The Case Tracker outlines deliverables and deadlines for each step in an investigation to keep staff on track.

Using the Case Tracker, OCI scientific staff have referred 94 percent of their OCI-led cases opened since January 1, 2016, in 180 days or less. In total, 90 percent of all OCI-led cases opened since January 1, 2016, have been referred in 180 days or less. Prior to the Lean Six Sigma Project, only 28 percent of all OCI-led cases were referred in 180 days or less. Continued use of the 180-Day Report is expected to increase the overall percentage of OCI-led cases referred in 180 days or less, with the exception of felony cases which may still require more time to investigate and refer.

Brownfields and Environmental Restoration Program

Between 2015 and 2017, the Cleanup Program has completed, or is in the process of completing, three projects across its divisions.

Remedy Selection in the RCRA Corrective Action process

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC found that for Corrective Action sites it often takes an inordinate amount of time to evaluate remedial alternatives and make a formal Remedy Selection, if a remedy decision is

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reached at all. This generates a backlog of sites that are stuck in the Corrective Measures Study phase with no formal remedy in place, leading to delays in the cleanup of contaminated sites.

Project Goal: Achieve 80 percent completion of the Remedy Selection process within two years for a selected group of Corrective Action sites in the RCRA GPRA 2020 universe.

Status and Next Steps: The project team is applying principles of the U.S. EPA’s RCRA

FIRST Toolbox to streamline remedy selection, implementing front-end coordination with a remedy selection kickoff meeting to get responsible parties to agree on the Conceptual Site Model (CSM) and Corrective Action Objectives at the beginning of the remedy selection process, elevating disputes and including management in remedy decision-making to promote thorough and rapid decisions, streamlining or eliminating CSM Workplans and/or CSM reports to minimize re-work loops, and implementing training for project managers to standardize the process.

DTSC plans to initiate RCRA FIRST pilot projects at three additional RCRA Corrective Action sites in 2017 and additional projects in 2018. These pilot projects will follow the same general process improvement measures identified above.

Voluntary Cleanup Program Completion Time (2017)

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC found the time to process work plans and reports takes too long, according to customer surveys and interviews, and results in dissatisfaction and the loss of potential voluntary projects. DTSC’s Voluntary Cleanup Program (VCP) provides fee for service oversight options for parties wishing to work with DTSC to revitalize Brownfields.

Project Goal: Reduce completion times for three categories of work plans, including Preliminary Endangerment Assessments (PEA), so that 90 percent of PEAs are completed in 75 days.

Status and Next Steps: The project team defined, measured, and analyzed existing conditions to determine root causes. DTSC’s document approval time under the VCP is

faster than enforcement orders, but not as fast as the former Schools program. Efficiencies are needed to ensure consistency between DTSC programs and regions. Root causes included lack of clarity on the process and requirements, both from an internal and external perspective, and the lack of effective and consistently utilized controls.

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The project team has developed 12 solution categories, including several management and EnviroStor controls, a policy update, a steering committee, and a series of “quick

sheets” that present clear and concise information on regulatory milestones, DTSC processes, and visually easy-to-read project summaries. Each one of these solutions specifically resolves one or more root causes.

The solutions will require the development of innovative tools, including approximately 30 “quick-sheets,” EnviroStor modifications, and management process changes. It is anticipated that with programmatic and regional support, the solutions will be completed by end of year and launched in early 2018. Data will be collected throughout 2018 to determine the new post-improvement capabilities.

Environmental Review Document Identification Process (2017)

Problem Statement: Through a GO-Biz Green Belt Certification project, DTSC found that the timing, method, and content of CEQA consultation between the DTSC Cleanup Program and Office of Planning and Environmental Analysis (OPEA) needs to be better defined to help expedite projects. The baseline average time for a decision on the CEQA document type is 101 days. Lack of a clear, defined process results in project delays, frustration on the part of Cleanup Program and OPEA staff, and exasperation for property owners/responsible parties/developers seeking to expeditiously clean up and redevelop their properties.

Project Goal: Establish a process to reduce the time to identify the appropriate environmental review document where DTSC is either the Lead or Responsible Agency to 30 days for 95 percent of projects.

Status and Next Steps: The project team is using a number tools to evaluate and streamline the consultation process. Four improvement solutions were developed and piloted in June through July 2017 on five projects in two regional offices. The project team focused on solutions that could be developed and implemented quickly for maximum results. The solutions included: earlier consultation between project managers and OPEA Environmental Planners, developing an agenda for the consultation meeting, establishing a unique EnviroStor activity for requesting OPEA consultation, and creating a checklist for Supervisors to reinforce earlier consultation with OPEA. The pilot results demonstrate the average time to decision is now 30 days.

Improvement solutions will be piloted across all regional offices for the next six months beginning in September 2017 for further data collection and solution refinement prior to roll-out to all of the Cleanup Program. An Implementation Team will be established (estimated start mid-2018) to plan and initiate the Program-wide roll-out of the

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improvement solutions. This Implementation Team will also be charged with exploring implementation of proposed longer-term solutions.

Safer Products and Work Places Program

Safer Consumer Products – Development of Priority Product Profiles (2017)

Problem Statement: The process of creating a Priority Product Profile currently takes approximately 3.5 years. This limits the number of Priority Products that SCP can list during a three-year Work Plan period. This time needs to be greatly reduced in order to create an effective program for identifying products that warrant in-depth investigation for potential risks to the public.

Project Goal: Leverage the outcome of previous lessons learned meetings and identify opportunities for reducing the time to develop Priority Product Profiles to approximately one year.

Status and Next Steps: The project team identified 16 solutions, addressing four areas in need of improvement: internal communication and decision-making, external communication, research approach, and toolkit. Collectively, these improvements will eliminate or consolidate 25 out of 83 process steps, and can help reduce scoping time from 15 to four months, public engagement time from nine to four months, and profile writing from an estimated 20 months to 10 months. The improvements will be developed by summer 2018, and implemented in the 2018-2020 Priority Product Work Plan period.