BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 812|
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                                    THIRD READING


          Bill No:  SB 812
          Author:   De León (D)
          Amended:  1/17/14
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-0, 1/15/14
          AYES:  Hill, Corbett, Hancock, Jackson, Leno, Pavley
          NO VOTE RECORDED:  Gaines, Fuller, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  5-1, 1/23/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Gaines
          NO VOTE RECORDED:  Walters


           SUBJECT  :    Hazardous waste:  facilities permitting

           SOURCE  :     Author


           DIGEST  :    This bill establishes deadlines for the submission of  
          applications for hazardous waste facility permits as well as  
          deadlines for the processing of such applications.

           ANALYSIS  :    

          Existing law:

          1. Requires the facilities handling hazardous waste to obtain a  
             permit from the Department of Toxic Substances Control  
             (DTSC).

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          2. Requires an owner or operator of the facility intending to  
             renew the facility's permit to submit a complete Part A  
             application for a permit renewal prior to the expiration of  
             the permit.

          3. Requires the owner or operator to submit a complete Part B of  
             the application when requested by DTSC.

          4. Authorizes a hazardous waste facility in existence on a  
             specified date or on the effective date of any statute or  
             regulation that subjects the facility to the hazardous waste  
             permitting requirements to continue to operate under a grant  
             of interim status pending the review and decision of DTSC on  
             the permit application.

          This bill:  

          1. Makes various findings and declarations stating that the  
             Legislature finds that California's current hazardous waste  
             management regulatory system provides limited protection for  
             affected communities and that there are loopholes in the  
             permitting system that need to be fixed to address this  
             limited protection.

          2. Requires that Part A and Part B applications for hazardous  
             waste facility permits be submitted at least two years prior  
             to the expiration date of the permit.

          3. Requires DTSC to approve or deny the permit renewal  
             application within 36 months or the permit is deemed denied.

          4. Requires, for permits that expire prior to January 1, 2015,  
             DTSC to approve or deny the permit renewal application by  
             January 1, 2018.

          5. Provides that interim status granted on or after January 1,  
             2015, terminates five years from the date the interim status  
             is granted or on the date DTSC took final action on the  
             application for a permit, whichever is earlier.

           Background
           
           DTSC Permitting Renewal Process  .  Title 22, California Codes of  
          Regulations, Section 66270.10(h) requires "Any hazardous waste  

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          management facility with an effective permit shall submit a new  
          application at least 180 days before the expiration date of the  
          effective permit, unless permission for a later date has been  
          granted by the DTSC.  DTSC shall not grant permission for  
          applications to be submitted later than the expiration date of  
          the existing permit."  To ensure completion of the permit  
          renewal application at least 180 days before the expiration date  
          of the effective permit, it is recommended that the renewal  
          application be submitted at least one year before the expiration  
          date of the permit.  Current applicants who apply to renew  
          Resource Conservation and Recovery Act permits, where the  
          renewal application contains significant changes in the  
          facility's operation (equal to a Class 3 Permit modification),  
          must hold an informal preapplication meeting.  Permit renewals  
          must meet all of the land use and permitting requirements for  
          obtaining a new permit.  

           Exide Technologies  .  Exide Technologies is an American  
          manufacturer of lead-acid batteries, including automotive  
          batteries and industrial batteries.  Its four global business  
          groups (Transportation Americas, Transportation Europe and Rest  
          of World, Industrial Power Americas, and Industrial Power Europe  
          and Rest of World) provide stored electrical energy products and  
          services.

          Exide's global headquarters are located in Milton, Georgia.  It  
          has both manufacturing and recycling plants. 

          Equipment used in the battery recycling process includes  
          machines to break batteries apart and separate different  
          materials, furnaces and kettles to melt metals, and  
          miscellaneous equipment including storage tanks, conveying  
          equipment, and engines.  Exide operates numerous pieces of  
          control equipment to reduce pollution including baghouses, dust  
          collectors, and filters for reducing dust and metals; and  
          scrubbers, mist eliminators, and an afterburner, which remove  
          pollution from gases.   

          Exide has five "secondary lead" smelters or recyclers, only two  
          of which - Forest City, Missouri, and Muncie, Indiana - are  
          operating.

          However, at the Muncie, Indiana plant, Exide settled a notice of  
          violation and signed an agreed order with the Indiana Department  

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          of Environmental Management that calls for fines if it does not  
          meet specified cleanup conditions involving brown-colored, lead  
          contaminated water along a storage area and rail spur near a  
          ditch leading to a stormwater outfall.

          Exide closed its smelter in Frisco, Texas, in 2012 after a  
          lengthy battle by the city and residents over lead and arsenic  
          pollution coming from the site.  The plant ceased operations  
          November 30, 2012, as part of an agreement with the city.  The  
          agreement calls for the City of Frisco to purchase about 170  
          acres of buffer land from Exide for $45 million.  Exide will  
          keep the 90 acres used for its operations.  The deal is  
          contingent on complete cleanup.  Preliminary estimates peg  
          cleanup costs at anywhere from $15 million to more than $130  
          million.  However, over a year after the plant closed, Exide has  
          not fully characterized the extent of the contamination or  
          cleanup.  An article by the Dallas Morning News, states that  
          "efforts the past year have been complicated by Exide's  
          bankruptcy filing in June."

           Exide, Vernon, California  .  The Exide facility in Vernon,  
          California is one of two secondary lead smelting facilities in  
          California which recovers lead from recycled automotive  
          batteries.  It has over 100 employees.  It recycles 23,000 to  
          41,000 batteries daily and has an average production of 100,000  
          to 120,000 tons of lead per year.  This is equivalent to  
          recycling approximately 11 million car batteries, which is about  
          the same number of used batteries generated in California  
          annually.  

          Battery recycling recycles 97% of the battery lead to be  
          recycled. 

          Exide also recovers lead from lead bearing plant scrap and  
          secondary materials, primarily from lead-acid battery  
          manufacturers. 

          This facility is regulated by various local and state regulatory  
          agencies.  

          DTSC regulates companies that handle hazardous waste under  
          federal and state hazardous waste laws.  DTSC permits and  
          inspects facilities, issues violations of hazardous waste rules,  
          and monitors corrective action at sites.

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          The South Coast Air Quality Management District regulates  
          Exide's air emissions, in part with what is called a Title V  
          permit, which allows the company to release pollutants into the  
          air up to certain levels.

          The Los Angeles Regional Water Quality Control Board (LARWQCB)  
          is responsible for protecting water quality.  Exide has  
          wastewater treatment systems, and a stormwater system that  
          includes a retention basin.  LARWQCB with the State Water  
          Resources Control Board set and enforce standards for water that  
          flows away from Exide's property into the sewer.

          The City of Vernon issues health and other permits to Exide.

           Related Legislation
           
          SB 712 (Lara) establishes deadlines for DTSC to take final  
          action on permit applications from hazardous waste facilities  
          operating under an interim status grant. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


           Approximately $1M from Hazardous Waste Control Account  
            (special) in 2014-15, 2015-16, and 2016-7 for six additional  
            positions at DTSC for the processing of continued permits.

           Unknown, but likely insignificant, costs from the Hazardous  
            Waste Control Account (special), for permitting facilities on  
            an interim status grant in the long-term future.

           SUPPORT  :   (Verified  1/27/14)

          Center on Race, Poverty and the Environment
          City of Los Angeles
          Coalition for Clean Air
          East Yard Communities for Environmental Justice
          Natural Resources Defense Council


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           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill establishes deadlines by which final permit decisions must  
          be made by DTSC for facilities that handle the most serious and  
          dangerous hazardous waste, thereby limiting the amount of time a  
          facility can operate on an expired or interim permit.


          RM:d  1/27/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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