BILL ANALYSIS Ó SB 1249 Page 1 Date of Hearing: August 13, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 1249 (Hill) - As Amended: August 4, 2014 Policy Committee: Environmental Safety and Toxic Materials Vote: 6-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill allows the Department of Toxic Substance Control (DTSC), in consultation with CalRecycle, the State Water Resources Control Board (SWRCB) and local air quality management districts, to adopt regulations by January 1, 2017 establishing management standards for hazardous waste at metal shredding facilities. If adopted, these standards would serve as an alternative to current statutory hazardous waste management laws and regulations. FISCAL EFFECT 1)Increased one-time costs to DTSC of approximately $200,000 (Hazardous Waste Control Account) to perform fee rulemaking and the treatability study. 2)Increased ongoing costs to DTSC of approximately $450,000 (Hazardous Waste Control Account) for rulemaking, compliance and ongoing administration. This bill provides fee authority to cover costs. COMMENTS 1)Purpose. According to the author, shredder facilities are operating under hazardous waste exemptions from the Department of Health Services dating back to the 1980s. Over the last decade DTSC has concluded that shredder waste exceeds state regulatory thresholds for lead, zinc and cadmium and the exemptions are outdated and legally incorrect. This bill requires DTSC to follow through on its own recommendations. SB 1249 Page 2 2)Background. The California Hazardous Waste Control Act of 1972 (HWCA/act) directs DTSC to regulate the handling, processing, and disposal of hazardous and extremely hazardous waste to protect the public, livestock, and wildlife from hazards to health and safety. Under the act, facilities that treat, store, handle, and/or dispose of hazardous waste are required to be permitted by the DTSC. The hazardous waste facility permit specifies specific requirements for the facility to ensure safe operation. The act also implements federal tracking requirements for the handling and transportation of hazardous waste from generation to ultimate disposition. DTSC activities under this act are funded by fees. The Integrated Waste Management Act requires materials that require special handling to be removed from major appliances and vehicles in which they are contained before crushing for transport or transferring to a baler or shredder for recycling. The federal Resource Conservation and Recovery Act (RCRA) of 1976, governs the disposal of hazardous waste and sets standards for the treatment, storage, transport, tracking, and disposal of hazardous waste in the United States. RCRA authorizes states to carry out many of the functions of the federal law through their own hazardous waste laws if such programs have been approved by the United States Environmental Protection Agency. 3) Shredder Waste. According to DTSC, the shredding of automobiles and major household appliances produces a waste consisting primarily of non-metallic materials, such as glass, fiber, rubber, automobile fluids, dirt, and plastics, that remain after the recyclable metals have been removed. The waste produced at metal shredding facilities large enough to shred an automobile is referred to as "automobile shredder waste," "automobile shredder residue," "shredder waste" (these facilities shred a variety of recyclable metals) or simply as "fluff." In California, shredder waste has been found to contain lead, cadmium, copper, zinc, and polychlorinated biphenyls (PCBs) at levels above the state's regulatory thresholds. According to DTSC's draft report, shredder waste is both a hazardous waste and a recyclable material subject to California's Hazardous Waste Control Law and the regulations that apply to hazardous wastes. SB 1249 Page 3 According to DTSC, approximately 440,000 tons of metal shredder residue are generated per year, making it the second largest hazardous waste generated in California by volume (used oil is the largest). According to CalRecycle records, 6,056,026 tons of shredder waste was disposed of in California landfills between 1998 and 2007. 4) Regulating Shredder Waste. Prior to 1984, shredder waste was not considered hazardous and was either disposed of or used as daily cover in municipal solid waste landfills. In 1984, the Department of Health Services (DHS), Toxic Substances Control Division (the predecessor to DTSC) determined that shredder waste was a non-Resource Conservation and Recovery Act (non-RCRA) hazardous waste in California due to the presence of lead, cadmium, copper, and zinc at levels above the state's regulatory thresholds for those metals. Shredder waste has also been found to contain PCBs at concentrations that exceed the federal and state regulatory threshold. Between 1986 and 1992, DHS issued conditional nonhazardous waste classifications (also referred to as "f letters") to seven shredder facilities in California that had treated their shredder waste to nonhazardous levels using metals fixation treatment technologies, often by coating it with cement to prevent the heavy metals from seeping or leaching. Once the facility operator received a nonhazardous waste classification from DHS, the treated shredder waste was no longer regulated as a hazardous waste and could be disposed of in a landfill. California's regulation of shredder waste and shredder facilities was formalized in 1988 in the DHS Policy and Procedure 88-6. In early 2000, DTSC initiated a comprehensive review of its past policies to ensure that the policies conformed to current laws and regulations and were still valid, considering scientific advances changes in the composition of shredder residue. One of the policies that came under review was Policy and Procedure 88-6. As part of reviewing the policy, DTSC selected three facilities for sampling both untreated and treated shredder waste. According to its draft report, DTSC found that all samples of untreated shredder waste exceeded the state SB 1249 Page 4 regulatory thresholds for total lead, copper, and zinc, and soluble lead, cadmium, and zinc. Additionally, treated shredder waste from each facility exceeded the state regulatory thresholds for total lead and zinc, and some samples exceeded the state's soluble regulatory threshold for PCBs, zinc, and cadmium, thereby disqualifying the treated wastes from classification as nonhazardous. DTSC contends that treated shredder waste that fails to meet the conditions of its nonhazardous waste classification is subject to all applicable hazardous waste management requirements, including the payment of hazardous waste generation fees. As a result of the findings of their investigation and other research, DTSC recommended rescinding all previously issued nonhazardous waste classifications for treated shredder waste. Despite making recommendations, DTSC has taken no action. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081