BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 812| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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). CONTINUED SB 812 Page 2 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 CONTINUED SB 812 Page 3 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 CONTINUED SB 812 Page 4 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. CONTINUED SB 812 Page 5 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 CONTINUED SB 812 Page 6 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 **** END **** CONTINUED