SUBJECT

CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN INTERAGENCY AGREEMENT (IA) WITH THE DEPARTMENT OF TOXIC SUBSTANCES CONTROL (DTSC) UNDER WHICH THE CENTRAL COAST REGIONAL WATER QUALITY CONTROL BOARD WILL BE REIMBURSED FOR PROVIDING TECHNICAL ASSISTANCE AND LITIGATION SUPPORT AT THE FORMER CASMALIA RESOURCES HAZARDOUS WASTE MANAGEMENT FACILITY, SAN BARBARA COUNTY

DISCUSSION

The former Casmalia Resources Hazardous Waste Management Facility (Facility) is an inactive hazardous waste treatment, storage and disposal facility which accepted hazardous wastes from 1973 until 1989. The Facility is located on 250 acres within a 4,700 acre parcel near the community of Casmalia, approximately nine miles southwest of the City of Santa Maria.

During the Facility operation, the owners/operators accepted billions of pounds of commercial and industrial wastes from thousands of generators, including large and small private entities and numerous federal, state and local government entities. From 1980 to 1989, the Facility operated under interim status pursuant to the Resource Conservation and Recovery Act (RCRA). In late 1989, the owner/operator ceased accepting shipments of waste, and in 1991 ceased all efforts to cleanup and close the Facility, asserting they had insufficient monies to pay for the required cleanup or closure activities. In August 1992, in response to deteriorating conditions at the Facility, the United State Environmental Protection Agency (U.S. EPA) initiated interim stabilization actions to prevent further deterioration of site conditions, and to control the most immediate threats. In March 1993, having failed to engage the owner/operator in closure and remediation activities, U.S. EPA notified a group of approximately 65 Casmalia waste generators of their potential liability for site remediation. Fifty of this group formed the Casmalia Steering Committee (CSC). In September of 1996, U.S. EPA negotiated a Consent Decree with the CSC, which was lodged in U.S. District Court in June of that year. In November of 1997, the CSC filed suit against the State, contending the State is liable for all costs associated with this Facility due to alleged negligent regulation during its operation.

The Central Coast Regional Water Quality Control Board (Region 3) and DTSC have been overseeing remediation and stabilization actions regarding this Facility for several years. In 1994, a Memorandum of Understanding (MOU) was reached between DTSC and Region 3. This MOU established DTSC as the lead State agency, and outlined DTSC and Region 3's representative regulatory roles for oversight at this Facility. In addition, DTSC has been the recipient of legislature funds to support State oversight.

The purpose of this Interagency Agreement between Region 3 and DTSC is to provide staff, training, travel and laboratory cost reimbursement. Staff from Region 3 will provide technical assistance, litigation support and field presence to DTSC for the purposes of evaluating impacts to water quality from past, present and future releases at the Facility. This assistance is also being provided as part of the investigation, stabilization and cleanup at the Facility, and litigation support activities to the State's Attorney General's Office.

In 1997/98 Region 3 entered into a similar Interagency Agreement with DTSC for staff cost reimbursement. The funding proposed under this three year IA will ensure continued Regional Board staff resources will be provided to ensure water quality concerns are addressed in response actions at this Facility.

POLICY ISSUE

Should the SWRCB and Region 3 enter into an Interagency Agreement with DTSC to provide technical assistance and litigation support for this Facility and, therefore, be a party to the proposed IA?

FISCAL IMPACT

Currently, no current SWRCB funds are earmarked for Region 3's oversight of this Facility. Previous fiscal years (prior to 1997/98) utilized limited Chapter 15 program funds. This reduced the amount of funds available to investigate, oversee and remediate other Chapter 15 program sites (Landfills, inactive mines, disposal sites). The amount of funds that DTSC passes through to the SWRCB depends on how much funding is appropriated each year to DTSC. This IA is being funded from the Legislature through DTSC's Hazardous Waste Cleanup Fund monies specifically earmarked for this Facility.

RWQCB IMPACT

Yes to Region 3.

STAFF RECOMMENDATION

That the SWRCB authorize the Executive Director or his designee to execute the proposed IA.

DRAFT JULY 28, 1998

WHEREAS:

1. The former Casmalia Resources Hazardous Waste Management Facility (Facility) is a 250 acre inactive hazardous waste treatment, storage, and disposal facility located near the community of Casmalia approximately nine miles southwest of the City of Santa Maria, Santa Barbara County.

2. During the Facility's operation from 1973-1989, the owner/operators accepted billions of pounds of commercial and industrial hazardous wastes from thousand of generators.

3. In 1991, the owner/operator ceased all efforts to clean up and close the Facility.

4. In 1992, the United States Environmental Protection Agency (U.S. EPA), in response to deteriorating site conditions, initiated certain interim stabilization actions. U.S. EPA is the regulatory lead agency for the management, administration, and governmental/regulatory oversight of the Facility.

5. In 1994 a Memorandum of Understanding (MOU) was reached between Department of Toxic Substances Control (DTSC) and Central Coast Regional Water Quality Control Board (Regional Board). This MOU established DTSC as the lead State agency, and point of contact with U.S. EPA for facilitating State's comments to the federal government regarding this Facility. This Agreement also outlines DTSC and Regional Board's representative regulatory roles for oversight at this Facility.

6. The approval of this Interagency Agreement (IA) will allow the Regional Board to provide technical assistance to DTSC to evaluate impacts to water quality to the State's waters from past, present, and future releases of hazardous substances at the Facility as part of its investigation, stabilization and cleanup.

7. The approval of this IA will allow DTSC and the Regional Board to coordinate litigation support activities to the State Attorney General's Office.

8. The approval of this IA will allow DTSC and the Regional Board to coordinate and transmit Applicable or Relevant and Appropriate Requirements (ARARs) to U.S. EPA throughout the implementation of remedial actions at the Facility.

9. Approval of this IA will ensure continual coordinated State agency oversight of the Facility.

10. The Regional Board has received staff cost reimbursement funding through previous IAs by DTSC.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

Authorizes the Executive Director to execute a $600,000 ($200,000 a year), three year IA with DTSC for technical assistance and litigation support regarding the former Casmalia Resources Hazardous Waste Management Facility during Fiscal Years 1998/99, 1999/2000 and 2000/2001.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on August 26, 1998.

___________________________________

Maureen Marché

Administrative Assistant to the Board