BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       SB 1249|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                 UNFINISHED BUSINESS


          Bill No:  SB 1249
          Author:   Hill (D)
          Amended:  8/22/14
          Vote:     21


           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-1, 4/30/14
          AYES:  Hill, Hancock, Jackson, Leno, Pavley
          NOES:  Fuller
          NO VOTE RECORDED:  Gaines

           SENATE APPROPRIATIONS COMMITTEE  :  4-2, 5/23/14
          AYES:  De León, Hill, Padilla, Steinberg
          NOES:  Walters, Gaines
          NO VOTE RECORDED:  Lara

           SENATE FLOOR  :  23-12, 5/28/14
          AYES:  Beall, Block, Corbett, Correa, De León, DeSaulnier,  
            Evans, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno,  
            Lieu, Liu, Mitchell, Monning, Padilla, Pavley, Steinberg,  
            Torres, Wolk
          NOES:  Anderson, Berryhill, Cannella, Fuller, Gaines, Huff,  
            Knight, Morrell, Nielsen, Vidak, Walters, Wyland
          NO VOTE RECORDED:  Calderon, Galgiani, Roth, Wright, Yee

           ASSEMBLY FLOOR  :  61-16, 8/27/14 - See last page for vote


           SUBJECT  :    Hazardous waste:  shredder waste

           SOURCE  :     Author


                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          2

           DIGEST  :    This bill authorizes the Department of Toxic  
          Substances Control (DTSC) to adopt regulations establishing  
          management standards for hazardous waste management activities  
          at metal shredding facilities until January 1, 2018.

           Assembly Amendments  authorize the alternative management  
          standards, as specified, to allow for treated metal shredder  
          waste to be classified and managed as nonhazardous waste; delete  
          the requirements that metal and treated metal shredder residue  
          must be disposed of in a specified manner; establish Hazardous  
          Waste Control Account; allow specified regulations to be adopted  
          as emergency regulations; authorize DTSC to collect an annual  
          fee from all metal shredding facilities that are subject to the  
          regulation to cover DTSC's costs for implementation; repeal an  
          existing requirement of regional water quality control boards,  
          and make minor and technical changes.

           ANALYSIS  :    

          Existing law:

          1.Under the federal Resource Conservation and Recovery Act  
            (RCRA) of 1976, governs the disposal of hazardous waste:

             A.   Through regulation, sets standards for the treatment,  
               storage, transport, tracking and disposal of hazardous  
               waste in the United States. 

             B.   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 (US EPA).

          1.Under the California Hazardous Waste Control Act (HWCA) of  
            1972:

             A.   Establishes the Hazardous Waste Control program.

             B.   Regulates the appropriate handling, processing and  
               disposal of hazardous and extremely hazardous waste to  
               protect the public, livestock, and wildlife from hazards to  
               health and safety.

             C.   Implements federal tracking requirements for the  

                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          3

               handling and transportation of hazardous waste from the  
               point of waste generation to the point of ultimate  
               disposition.

             D.   Establishes a system of fees to cover the costs of  
               operating the hazardous waste management program.

             E.   Authorizes the DTSC to enforce federal law and  
               regulations under the RCRA.

             F.   Requires the DTSC to grant and review permits and  
               enforce the HWCA requirements for hazardous waste  
               treatment, storage and disposal facilities.

          1.Under the Integrated Waste Management Act, requires materials  
            that require special handling, as defined, 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.

          This bill:

          1.Defines "metal shredding facility" as an operation that uses a  
            shredding technique to process end-of-life vehicles,  
            appliances, and other forms of scrap metal to facilitate the  
            separation and sorting of ferrous metals, nonferrous metals,  
            and other recyclable materials from nonrecyclable materials.

          2.Authorizes DTSC, in consultation with the Department of  
            Resources Recycling and Recovery, the State Water Resources  
            Control Board and affected local air quality management  
            districts, until January 1, 2018, to adopt regulations  
            establishing management standards for metal shredding  
            facilities for hazardous waste management activities as an  
            alternative to current statutory hazardous waste management  
            requirements and regulations.

          3.Requires DTSC, before adopting regulations to establish  
            alternative management standards, to first prepare an analysis  
            evaluating the hazardous waste management activities to which  
            alternative management standards will apply.

          4.Prohibits DTSC from adopting management standards that are  
            less stringent than applicable standards under federal law.

                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          4


          5.Authorizes the alternative management standards, to the extent  
            it is consistent with the standards that will otherwise apply  
            under the federal act, to allow for treated metal shredder  
            waste to be classified and managed as nonhazardous waste.

          6.Allows treated metal shredder waste being classified as  
            nonhazardous waste pursuant to the alternative management  
            standards to be managed as either alternative daily cover, or  
            for beneficial reuse, or placed in a unit that meet specified  
            state waste discharge requirements.

          7.Determines all hazardous waste determinations and policies,  
            procedures or guidance issued by DTSC before January 1, 2014,  
            governing treated metal shredder waste to be inoperative if or  
            when DTSC completes its analysis and either adopts new  
            regulations establishing alternative management standards or  
            rescinds the existing conditional nonhazardous waste  
            classifications.

          8.Sunsets DTSC's authority to complete the analysis and adopt  
            regulations relating to metal shredder waste on January 1,  
            2018.

          9.Authorizes DTSC to collect an annual fee from all metal  
            shredding facilities that are subject to the regulation to  
            cover DTSC's costs for implementation.  This bill also  
            establishes a separate subaccount in the Hazardous Waste  
            Control Account and requires the fees to be deposited into the  
            account, to be available upon appropriation by the  
            Legislature, and authorizes regulations relating to fee  
            provisions to be adopted as emergency regulations.

          10.Allows treated metal shredder waste to be deemed a solid  
            waste if managed pursuant to the alternative management  
            standards adopted by DTSC and is accepted by a solid waste  
            landfill or other authorized location for disposal or for use  
            as alternative daily cover or other beneficial reuses.

          11.Repeals a provision of existing law that required specified  
            regional water quality control boards to prepare a list of  
            specified types of landfills that are authorized to accept and  
            dispose of  shredder waste


                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          5

           Background

          Auto/metal shredding and recycling  .  The shredding of  
          automobiles and major household appliances is a process where a  
          hammer mill grinds the materials fed into it to fist-size  
          pieces.  The shredding of automobiles results in a mixture of  
          ferrous metal, non-ferrous metal (e.g. alloys of copper and  
          aluminum) and shredder waste, referred to as automobile shredder  
          waste (ASW).

          This waste is composed of the plastics, rubber, foam, residual  
          metal pieces, paper, fabric, glass, wire, hoses, rubber gaskets,  
          sand, dirt and other non-metallic waste that remains from  
          recycled automobiles, trucks, buses, and household appliances.   
          ASW contains heavy metals (lead, copper, zinc and cadmium),  
          chlorine and PCBs, as well as other hazardous chemicals.

          After shredding, some ASW is treated using metals fixation  
          treatment technologies, coating the waste in cement to "fix" the  
          hazardous constituents in the waste.  It is referred to as  
          "fluff" and distributed to landfills across the state to be used  
          as alternative daily cover.

          Roughly 700,000 tons of this waste -- also called fluff -- is  
          disposed of in the state's landfills each year.  According to  
          the CalRecycle records, 6,056,026 tons of ASW has been disposed  
          in California landfills between 1998 and 2007.

           ASW as hazardous waste  .  Prior to 1984, all ASW was considered  
          not to be hazardous waste and was disposed of or used as  
          alternative daily cover in municipal solid waste landfills.

          In 1984, California deemed ASW as a non-RCRA hazardous waste (or  
          California hazardous waste) due to the presence of lead,  
          cadmium, copper and zinc at levels above the state's regulatory  
          thresholds, as well as PCBs at concentrations which on some  
          occasions exceeded either/both the federal and California  
          regulatory thresholds.

          Between 1986 and 1992, California's Department of Health  
          Services (DHS) Toxic Substances Control Division (predecessor to  
          DTSC) issued conditional nonhazardous waste classifications  
          (also referred to as "f letters") to seven shredder facilities  
          in California who treated their ASW to fix the hazardous  

                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          6

          components into the waste.  Once facility operators received a  
          nonhazardous waste classification, treated ASW was no longer  
          regulated as a hazardous waste.

          In 1988, California's regulation of ASW was formalized in the  
          DHS Policy and Procedure 88-6.

          In early 2001, the DTSC began an initiative to evaluate the  
          adequacy of the ASW policy, which included new sampling and  
          analysis.  The report from that initiative recommended  
          rescinding the conditional nonhazardous waste classifications.   
          However, the DTSC took no further action.

           Environmental and public health incidents caused by shredder  
          facilities  .  In 2002, the DTSC issued an "imminent and  
          substantial endangerment" order against Pacific Steel, because  
          dust blowing from contaminated piles of waste stored out in the  
          open, which contained PCBs and toxic metals such as lead, zinc  
          and copper, polluted and threatened to pollute the air and water  
          near the facility.  In 2011, the DTSC issued a remedial action  
          order against Pacific Steel to clean up the site.

          In 2011, the DTSC settled an enforcement action against the Sims  
          Metal West and S.A. Recycling facility in Anaheim for $2.9  
          million.  The action alleged that S.A. Recycling violated air  
          pollution laws when an explosion at its San Pedro facility at  
          Terminal Island destroyed its air pollution control system in  
          May 2007 and the company continued operating for weeks without  
          proper equipment.  As a result, approximately 4.4 tons of toxic  
          particulates were released to the air, and migrated to bay  
          waters and the community of Wilmington, putting local residents  
          and the environment at risk.

          At a 13-acre bay front site in Redwood City, Sims Metal  
          Management shreds about 300,000 automobiles a year, along with  
          appliances and other metal products, and loads the materials via  
          huge conveyor belts onto ships bound for China, Korea and other  
          countries, where they are made into new products.

          In January 2012, Sims Metal Management in Redwood City was cited  
          by the US EPA for polluting the San Francisco Bay.  Inspectors  
          found the company had unlawfully discharged PCBs, lead, copper,  
          mercury and zinc into Redwood Creek, a tributary of San  
          Francisco Bay.  The US EPA found PCB levels of 195 times  

                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          7

          accepted levels and more than 10 times accepted levels of lead  
          in sediment near where the shredding yard meets the Redwood  
          Creek.  This enforcement action was resolved in 2013.

          Additionally, there have been several fires in the last several  
          years at the Sims Redwood City facility that have caused the Bay  
          Area Air Quality Management District to ask residents to stay  
          inside.  Two fires occurred in November and December of 2013,  
          raising concerns about the proximity of this facility to  
          residents.

          In the fire in December 2013, no one was reported injured by the  
          smoke or fire, which was limited to a debris pile about 900  
          square feet in area and 30 feet tall, but the noxious odor  
          produced by the blaze was detected as far south as South San  
          Jose and across the bay in Oakland and Berkeley.

          The company's recycling facilities in Hayward and San Francisco  
          experienced fires in 2009 and 2010 respectively, according to  
          records from the District.

           ASW regulatory review  .  In 2002, the DTSC conducted an auto  
          shredder initiative that found both treated and untreated  
          shredder waste exceeded state regulatory thresholds for lead,  
          zinc and cadmium.  The report recommended that the DTSC policy  
          and procedure that allowed the exemption for this waste be  
          rescinded and the waste stream be regulated as hazardous waste.   
          No action was taken at that time.

          In 2008, the DTSC sent letters to shredders expressing the  
          department's intention to rescind Policy and Procedure 88-6 and  
          repeal the conditional authorization that allows ASW to be  
          classified as non-hazardous waste.  However, the DTSC has not to  
          date rescinded the conditional waste classifications.

          The DTSC is currently reviewing technical data about current and  
          potential chemical treatments of metal shredder residue in order  
          to reevaluate its prior waste classification decisions.  In  
          addition, the DTSC is inviting input from the public.  The DTSC  
          will develop a course of action based on the findings of this  
          process.

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

                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          8


          According to the Assembly Appropriations Committee:

           Increased one-time costs to DTSC of approximately $200,000  
            (Hazardous Waste Control Account) to perform fee rulemaking  
            and the treatability study.

           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. 

           SUPPORT  :   (Verified  8/27/14)

          California League of Conservation Voters
          Coalition for Clean Air
          Environmental Working Group
          Institute of Scrap Recycling Industries 
          Natural Resources Defense Council
          SA Recycling

           ARGUMENTS IN SUPPORT  :    According to the author's office, metal  
          and recycling facilities operating in California pose a distinct  
          risk to public health and the environment and the hazards  
          associated with these operations are not adequately regulated.   
          Many of these facilities are located in highly populated areas  
          and have been found to have contaminated air and water  
          surrounding their facilities.

          The author states that six fires have broken out at metal  
          shredding and recycling facilities in the Bay Area since 2007,  
          five of them at facilities owned by Sims Metal Management LTD.   
          Three occurred at the company's facility in Redwood City,  
          causing plumes of smoke to billow over the city impacting the  
          health of the residents of Redwood City.  The Counties of San  
          Mateo, Alameda and Santa Clara had to issue health advisories  
          because of the smoke and school districts were forced to keep  
          students inside because of the poor air quality.

          The author asserts that after the last two fires in November and  
          December of 2013, Redwood City leaders called on regulators to  
          do more to help protect residents from future incidents.


                                                                CONTINUED





                                                                    SB 1249
                                                                     Page  
          9


           ASSEMBLY FLOOR  :  61-16, 8/27/14
          AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,  
            Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Dababneh, Dahle, Daly, Dickinson, Eggman,  
            Fong, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,  
            Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine,  
            Linder, Lowenthal, Maienschein, Medina, Melendez, Mullin,  
            Muratsuchi, Nazarian, Nestande, Pan, Perea, John A. Pérez, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski,  
            Williams, Yamada, Atkins
          NOES: Allen, Bigelow, Chávez, Conway, Donnelly, Fox, Beth  
            Gaines, Grove, Hagman, Logue, Mansoor, Olsen, Patterson,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED: Gorell, Harkey, Vacancy


          RM:AL:e:n  8/27/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****






















                                                                CONTINUED