(a) If a hazardous substance release site is referred to the department pursuant to Section 78900, and the department makes either of the following determinations, the department shall notify the appropriate regional board and the state board:

1. (1) The department determines that the site does not meet the criteria established pursuant to Section 78765 and the site cannot be placed, pursuant to Article 5 (commencing with Section 78760) of Chapter 4, on the list of sites subject to this part.
2. (2) The department determines that a removal or remedial action at the site will not commence for a period of one year from the date of listing due to a lack of funds or the low priority of the site.