BILL ANALYSIS SB 346 Page 1 Date of Hearing: August 4, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 346 (Kehoe) - As Amended: August 2, 2010 Policy Committee: Environmental Safety and Toxic Materials Vote: 6-3 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY As amended, this bill bans the sale of brake pads containing copper and other toxic materials. (Summary continued below.) FISCAL EFFECT 1)One-time costs to DTSC of approximately $200,000 during 2010-11 and 2011-12 for manufacturer outreach and education, including development of website materials. (Hazardous Waste Control Account (HWCA)) 2)One-time costs to DTSC of approximately $200,000 during 2010-11 and 2011-12 to develop certification and marking criteria. (HWCA) 3)One-time cost to DTSC of approximately $100,000 during 2011-12 to initially certify third-party certifiers of brake pads. (HWCA) 4)Minor annual costs to DTSC in the tens of thousands of dollars beginning in 2013-14 to accept filings by manufacturers of brake pad certification, covered fully by filing fee. (HWCA) 5)Annual costs to DTSC of approximately $250,000 beginning in 2020-21 to accept and review requests for extension and exemption withdrawal, fully covered by request fees. (HWCA or Brake Friction Materials Water Pollution Fund (BFMWPF)) 6)Annual costs to DTSC ranging from $250,000 to $500,000 beginning in 2013-14 to enforce bans, including inspections of brake manufacturers and third-party certifiers and laboratory SB 346 Page 2 analysis of brake pads. (HWCA or BFMWPF) 7)Minor annual costs to the Secretary for Environmental Protection in the tens of dollars beginning in 2020-21 to review extension and exemption requests. (GF) 8)Minor, absorbable annual costs to ARB and DTSC beginning in 2020-21 to consult with DTSC on extension and exemption requests. SUMMARY (continued) Specifically, this bill: 1)Bans, effective January 1, 2014, sale of brake pads containing the following materials beyond minimal amounts: cadmium, chromium (VI)-salts; lead, mercury and asbestiform fibers and, effective January 1, 2025, sale of brake pads containing more than 0.5% copper, with exception, until December 31, 2023, for the depletion of existing inventories. 2)Bans, effective January 1, 2021, sale of brake pads containing more than 5% copper and, effective January 1, 2025, sale of brake pads containing more than 0.5% copper. 3)Exempts from these bans brakes used in certain motor vehicle classes and brake systems, including military vehicles, motorcycles and fully contained brake systems. 4)Allows a brake pad manufacturer, effective January 1, 2021, to apply to DTSC for a three-year extension of the 2025 ban and for additional two-year extensions until January 1, 2030. Heavy-duty brake pad manufacturers only will be able to apply for two-year extensions beyond January 1, 2032. 5)Allows any person, effective January 1, 2021, to file a request with DTSC to withdraw an exemption from brake pad bans. 6)Directs the secretary to grant or deny extension and exemption withdraw requests. 7)Establishes a committee to publicly advise the secretary on whether to grant copper ban extension requests and to withdraw exemptions to the bill's bans. SB 346 Page 3 8)Requires DTSC to develop certification and marking criteria. 9)Requires brake pad manufacturers to receive third-party certification that their brake pads meet the bans described above and to mark their brake pads with proof of certification. 10)Requires a manufacturer to file a copy of the certification with DTSC and authorizes DTSC to charge a filing fee. 11)Establishes fees, set and collected by DTSC, on applicants for copper ban extensions, for withdrawal of exemptions from the bill's bans, and for filing certifications. 12)Calls on DTSC to enforce bans and authorizes a $10,000 civil fine for violation of the bans, to be placed in the BFMWPF. COMMENTS 1)Rationale . The author contends nearly eliminating copper from brake pads is the most practical and effective way to reduce the amount of copper entering the state's bodies of water, which will be necessary to meet the requirements of the Federal Clean Water Act. 2)Background . a) Brake Pads Contain Copper, Which is Toxic and Accumulates in the Water . Automotive brake pads contain copper. The metal improves brake performance and extends brake life. Unfortunately, copper is toxic. Studies have shown that brake pads are a major source of waterborne copper. Every time a driver brakes, dust-like fragments of copper are shed onto the impervious road surface. Rain and wind carry this toxic copper dust into the state's waterways. Once there, it destroys certain types of algae-a critical food source for marine life. It also interferes with salmon's ability to smell, making them more susceptible to predators. b) Too Much Copper in the Water . In response to Federal Clean Water Act lawsuits filed by environmental groups, the regional water quality control boards in Los Angeles and SB 346 Page 4 San Diego imposed Total Maximum Daily Loads (TMDLs) that severely limit the amount of copper entering waterways. Municipalities subject to those TMDL must comply with them by 2028. Other regional water boards are expected to soon issue similar TMDLs for copper in other regions of the state. 3)Related Legislation . Responding to concerns about copper contamination of water, the State of Washington enacted legislation earlier this year to limit the copper content of brake pads. The Washington bill requires, by January 1, 2015, brake pads sold as replacement parts contain less than 5% copper, by weight. The bill further requires, by January 1, 2020, new vehicles brake pads have less than 5% copper. The law allows the state to limit the copper content of brake pads to no greater than 0.5% if such limits are feasible. 4)Supporters , including numerous local governments and environmental groups, contend limiting the copper content of brake pads represents the most effective and practical way to reduce the amount of copper entering the state's bodies of water. 5)Opponents include many industry groups, who support the need to reduce the copper content of brake pads but who nonetheless claim the bill provides unrealistic timeframes and inflexible requirements that fail to consider the business needs of research, development, safety and consumer expectations. It is not clear whether the latest amendments to the bill remove industry opposition. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081