Legislative Analyst's Office

Analysis of the 2000-01 Budget Bill

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Cal-EPA Cross-Agency Initiatives

The budget proposes three initiatives that are designed to address environmental issues that cut across a number of the constituent boards and departments under the California Environmental Protection Agency (Cal-EPA). We discuss these three initiatives--relating to enforcement, children's health, and the California/Mexico border, in the sections that follow, and raise several concerns with the proposals.

Enforcement Initiative

The budget proposes an increase of about $6.1 million and 55 positions for enforcement activities to be carried out by various environmental protection departments. We find that this increase is justified on a workload basis. However, given significant current enforcement position vacancies in the California Integrated Waste Management Board, Department of Pesticide Regulation, Department of Toxic Substances Control, and State Water Resources Control Board, we recommend that these agencies report at budget hearings on their ability to fill the requested new positions.

Budget Proposal. As shown in Figure 1 (see next page), the budget proposes an increase of $6.1 million and 55 positions in various environmental protection departments and boards for enforcement.

Workload Justified. We find that the proposed increase for enforcement is justified on a workload basis. Specifically, the proposal would:

• Partially restore prior-year reductions in enforcement staffing in the Department of Toxic Substances Control (DTSC) made due to the state's fiscal condition, by increasing the department's staff for compliance inspections and civil and criminal investigations. The increase would address the concern that about 84 percent of DTSC's pending enforcement cases have failed to meet the timeliness criteria prescribed by the U.S. Environmental Protection Agency.

• Increase staffing at the California Integrated Waste Management Board (CIWMB) to locate, inspect, and take necessary enforcement actions at closed, abandoned, and illegal solid waste sites. There are over 2,600 of these sites statewide, and a majority of them remain to be assessed for their potential threat to public health and the environment.
• Increase water quality enforcement staffing in the State Water Resources Control Board (SWRCB). Recent improvements in data tracking and increases in inspections have identified many more cases than previously estimated where enforcement action is needed. Additionally, recent legislation now requires the board to take certain enforcement action in cases of serious or chronic water quality violations. For the water rights program, an increase in staffing will provide a more appropriate level of follow-up to water rights inspections that detect problems.
• Increase training offered by the Air Resources Board (ARB) to state and local agencies on cross-agency environmental issues. Past training has improved consistency statewide in environmental program implementation.
• Increase staffing in the Department of Pesticide Regulation (DPR) to improve its enforcement database and increase investigations.

Current Enforcement Position Vacancies Raise Concern. While we find that the requested funding for enforcement is justified, we are concerned about the departments' ability to fill the new positions given the high level of vacancies in enforcement positions in some departments. Specifically, as of December 1, 1999, we found that CIWMB, DPR, and DTSC each have vacancy rates of around 20 percent for enforcement positions. Since SWRCB does not currently track its enforcement positions, its vacancy rate for these positions is unclear. However, because a large number of positions recently added to its core regulatory program (which includes enforcement) remain unfilled, the enforcement position vacancy rate for SWRCB could be significant.

In order to assure the Legislature that the requested positions for enforcement can be filled, we recommend that CIWMB, DPR, DTSC, and SWRCB report at budget hearings on their plans, and their abilities, to hire all of the additional staff requested for the budget year.

Children's Health Initiative

The budget proposes an increase of about $7.5 million and 58.5 positions for a number of departments to address various children's health issues. We recommend the deletion of $1,843,000 and seven positions because the proposed activities for studying indoor air quality in portable classrooms and developing risk assessment guidelines lack statutory direction. Should the Legislature wish to provide funding for these activities, we recommend that the funding be put in legislation that guides the conduct of these activities. (Reduce Items 3900-001-0001 by $900,000, 3980-001-0001 by $843,000, and 4260-001-0001 by $100,000.)

Budget Proposal. As shown in Figure 2 (see next page), the budget proposes an increase of $7.4 million and 57.5 positions in various environmental protection departments and boards, and $100,000 and one position in the Department of Health Services, to address children's health issues.

Our review finds that the proposed expenditures fall into two categories: (1) those that expand existing programs or implement recently enacted legislation and (2) those that are for essentially new program activities and for which little statutory guidance exists.

Figure 2
California Environmental Protection Agency Children's Health Initiative
2000-01 (In Thousands)
Department	Activities	Expenditures (Various Funds)
Secretary for Environmental Protection	Establish Children's Environmental Health Center.	$130
Air Resourcesa	Evaluate adequacy of air quality standards and air monitoring network in protecting infants and children; review and revise toxic air contaminant control measures.	1,010
	Study indoor air quality in portable classrooms.	900 b
Pesticide Regulation	Expand integrated pest management program to school districts statewide.	608
Toxic Substances Control	Oversee assessment and cleanup of contamination at school sites.	3,283
Environmental Health Hazard Assessment	Develop guidelines for assessing (1) cancer risks to children from chemicals and (2) health risks to children at contaminated school sites.	843
	Evaluate adequacy of air quality standards in protecting infants and children; review and revise toxic air contaminant threshold exposure levels.	647
Total		$7,421
a In addition to these expenditures, budget proposes $50 million for an Older School Bus Replacement Program.
b Does not include $100,000 proposed for the Department of Health Services for this activity.

Proposed Expenditures to Expand Existing Programs or Implement Recent Legislation. Of the proposed increase to address children's health issues, about $5.7 million is either to expand existing programs or implement recently enacted legislation. We find that this part of the proposal is reasonable. Expenditures in this category include:

• Assessment of Contamination and Oversight of Cleanups at Existing and Proposed School Sites. The budget proposes an increase of about $3.3 million (in reimbursements) and 32 positions for DTSC to (1) expand its current investigations and oversight of cleanups at existing contaminated school sites; and (2) review environmental assessments that are now required of all proposed school sites, pursuant to Chapter1002, Statutes of 1999 (SB 162, Escutia) and Chapter 992, Statutes of 1999 (AB 387, Wildman). Because statute requires DTSC to be reimbursed by school districts for this work, DTSC will fill positions based on the reimbursable workload from school districts that actually develops in the budget year.
• Review of Air Quality Standards and Toxic Air Contaminants. The budget proposes a total increase of about $1.7 million and 13.5 positions for ARB and the Office of Environmental Health Hazard Assessment (OEHHA) to determine whether existing air quality standards, air quality monitoring, and toxic air contaminant control measures adequately protect children and infants. These activities are mandated by Chapter 731, Statutes of 1999 (SB 25, Escutia). Chapter 731 provides a clear division of responsibilities between ARB and OEHHA, a time line for the review with specific milestones, and a clear statement as to how the review's findings are to be used in the regulatory process. Chapter 731 also requires the Secretary for Environmental Protection to establish a Children's Environmental Health Center to coordinate children's environmental health issues within Cal-EPA. The budget proposes $130,000 and one position for this purpose.
• Integrated Pest Management at Schools. The budget proposes $608,000 and five positions for DPR to expand its existing integrated pest management program for schools to include all school districts on a statewide basis. This program has been operated by DPR since 1993 and is designed to promote the use of reduced-risk pesticides and pesticide alternatives at schools.

Proposed Expenditures for New Program Activities With Little Statutory Direction. Of the proposed increase to address children's health issues, we find that about $1.8 million and seven positions are for essentially new program activities and for which statute provides little direction on how and for what purpose the activities are to be conducted. Expenditures in this category include:

• $900,000 and one position for ARB, and $100,000 and one position for the Department of Health Services (DHS), to study indoor air quality in portable classrooms.
• $843,000 and five positions for OEHHA to (1) evaluate the adequacy of current cancer risk assessment methodologies in protecting children, (2) develop guidance for assessing cancer risks to children, and (3) develop guidance for risk assessments at school sites.

While these proposed new activities may have merit, we think that legislative oversight would be improved if legislation explicitly authorized these activities and provided a clear statement of objectives and outcomes expected from conducting them. In fact, legislation was introduced this year, as in prior years, to provide direction for activities similar to those proposed in the Governor's initiative. Specifically, AB 1043 (Shelley), introduced this session, would require ARB and DHS jointly to review environmental health conditions in portable classrooms. Senate Bill 442 (Brulte), introduced in the 1997-98 session, would have required OEHHA to develop guidelines for use by Cal-EPA boards and departments in assessing the risks of toxic chemicals to "sensitive subgroups" of the general population, which presumably would include children.

If the Legislature wishes to fund these new program activities, we recommend putting funding in legislation that provides statutory authority and direction for conducting the activities. Accordingly, we recommend that $1,843,000 and authority for the seven requested positions be deleted from the budget bill. We think that legislation authorizing these new program activities should, following the model of Chapter 731, clearly establish the responsibilities of the various state agencies involved, set a time line and performance milestones for completing activities, and provide clear direction for ultimate use of information generated by the activity.

California/Mexico Border Initiative

The budget proposes an increase of about $2.8 million and 19.5 positions to address California-Mexico border environmental issues. We find that of this amount, $427,000 and four positions have not been justified, and therefore recommend that this funding and position authority be deleted from the budget bill. (Reduce Items 3860-001-0001 by $133,000, 3910-001-0001 by $112,000, 3930-001-0106 by $82,000, and 3980-001-0001 by $100,000.)

Budget Proposal. As shown in Figure 3, the budget proposes an increase of about $2.8 million and 19.5 positions in various environmental protection departments and the Department of Water Resources (DWR) to address California-Mexico border environmental issues.

Figure 3
California Environmental Protection Agency California-Mexico Border Initiative
2000-01 (In Thousands)
Department	Activities	Expenditures (Various Funds)
Secretary for Environmental Protection	Policy coordination.	$121
Water Resources Control	Water quality monitoring; technical assistance for water pollution control projects in Mexico.	864
Toxic Substances Control	Inspect and track hazardous waste shipments from Mexico; implement pollution prevention projects in Mexico.	689
Air Resources	Expand existing heavy-duty vehicle inspection program at border.	674
Variousa	Technical assistance on border environmental issues.	427
Total		$2,775
a Integrated Waste Management, Pesticide Regulation, Environmental Health Hazard Assessment, and Department of Water Resources.

Value of Some of the Proposed Expenditures Not Clear. Our review finds that many of the proposed expenditures under this initiative have been justified based on a detailed expenditure plan. Specifically, expenditures for the Secretary, ARB, SWRCB, and DTSC totaling $2,348,000
(15 positions), for the purposes set out in Figure 3, have generally been justified. However, we find that expenditures totaling $427,000--for a single position in each of CIWMB, DPR, OEHHA, and DWR--have not been justified. These four positions are to provide general technical assistance on border environmental issues to public agencies in California and Mexico and to businesses in Mexico. Without further details of how these positions would be used, the value added from these four positions is not clear. Accordingly, we recommend that the request for $427,000 and the four positions for these four departments be denied.