Senate Bill No. 740
CHAPTER 293

An act to add Section 25536.8 to the Health and Safety Code, relating to hazardous materials.

[ Approved by Governor  September 30, 2023. Filed with Secretary of State  September 30, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 740, Cortese. Hazardous materials management: stationary sources: skilled and trained workforce.
(1) Existing law establishes an accidental release prevention program for the state. Under that law, stationary sources subject to the accidental release prevention program may be required to prepare and submit a risk management plan (RMP) to prevent accidental releases of certain substances. Existing law imposes criminal penalties upon a stationary source that knowingly violates the requirements of the accidental release prevention program. Existing law requires an owner or operator of a stationary source that is engaged in certain petroleum-related activities, and with one or more covered processes that require the preparation and submission of an RMP, when contracting for the performance of construction, alteration, demolition, installation, repair, or maintenance work at the stationary source, to require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades. Existing law defines “skilled and trained workforce” to include, among other criteria, skilled journeypersons who are paid at least a rate equivalent to the applicable prevailing hourly wage rate.
This bill would extend that workforce requirement to contracts awarded, extended, or renewed on or after January 1, 2024, by an owner or operator of a stationary source that is engaged in manufacturing hydrogen, biofuels, or certain specified chemicals, or in capturing, sequestering, or using carbon dioxide in specified conditions.
By expanding the scope of a crime, and by extending the laws enforced by uniform program agencies to additional stationary source owners or operators and thereby imposing additional duties, the bill would impose a state-mandated local program.
(2) Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Existing law requires apprentice training needs in the building and construction trades to be deemed to justify a new apprentice program only if one or more specified conditions are met, including, but not limited to, there being sufficient capacity for apprentices in a geographic area.
This bill would require an above-described stationary source to be considered when determining whether an existing apprenticeship program has sufficient capacity for apprentices in a geographic area.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares both of the following:
(a) The enactment of Section 25536.7 has been successful in reducing the risks to public health and safety and the environment from certain industrial facilities by requiring the use of a skilled and trained workforce to perform contracted-out onsite work in apprenticeable occupations in the building and construction trades.
(b) It is the intent of this bill to expand the requirement for use of a skilled and trained workforce to apply to additional industrial facilities regulated by the State Air Resources Board where the use of a skilled and trained workforce to perform contracted-out onsite work will reduce risks to public health and safety and the environment.

SEC. 2.

 Section 25536.8 is added to the Health and Safety Code, to read:

25536.8.
 (a) Subject to subdivision (e), the definitions in subdivision (b) of Section 25536.7 shall apply for purposes of this section, except that the criterion described in subparagraph (C) of paragraph (10) of subdivision (b) of Section 25536.7 shall not be applicable.
(b) An owner or operator of a stationary source that is engaged in activities described in subdivision (c), and with one or more covered processes that require the preparation and submission of an RMP pursuant to this article, when contracting for the performance of construction, alteration, demolition, installation, repair, or maintenance work at the stationary source, shall require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades.
(c) This section shall apply to the following activities, when undertaken for commercial purposes:
(1) Hydrogen manufacturing.
(2) Biofuels manufacturing.
(3) Carbon dioxide (CO2) capture and sequestration in either saline or depleted oil and gas reservoirs, or oil and gas reservoirs used for CO2-enhanced oil recovery.
(4) Manufacturing of any of the following chemicals, whether as an intermediary or an end product: ammonia, chlorine, hydrogen fluoride, sulfur dioxide, or hydrogen chloride.
(d) For purposes of paragraph (2) of subdivision (b) of Section 3075 of the Labor Code, a stationary source covered by this section shall be considered in determining whether an existing apprenticeship program does not have the capacity, or has neglected or refused, to dispatch sufficient apprentices to qualified employers who are willing to abide by the applicable apprenticeship standards.
(e) The provisions of paragraphs (5), (6), (7), and (8) of subdivision (a) of Section 25536.7 shall apply for purposes of this section.
(f) This section shall apply to contracts awarded, extended, or renewed on or after January 1, 2024.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.