BILL ANALYSIS                                                                                                                                                                                                    Ó

                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 118          Hearing Date:    April 6,  
          |Author:   |Santiago                                              |
          |Version:  |April 5, 2016    As amended                           |
          |Urgency:  |No                     |Fiscal:    |Yes              |
          |Consultant|Catherine  Freeman                                    |
          |:         |                                                      |

             Subject:  Hazardous Substances: Cleanup: Exide Technologies  

          Summary: This bill provides policy changes and an appropriation related  
          to Exide cleanup.
          Background:  Exide Technologies is located in the City of Vernon, about  
          five miles southeast of downtown Los Angeles. The facility  
          occupies 15 acres in a heavily industrial region with  
          surrounding residential areas. Facility operations included  
          recycling lead-bearing scrap materials obtained from spent  
          lead-acid batteries. This facility ceased operations in 2014 and  
          permanently closed after the Department of Toxic Substances  
          Control notified Exide that its application for a new permit  
          would be denied. The department then ordered Exide to test and  
          clean up residential properties and conducted its own testing.
          The department's analysis indicates that releases from the  
          facility deposited lead dust across an area of southeast Los  
          Angeles County, resulting in contamination extending 1.7 miles  
          from the facility and impacting up to 10,000 properties,  
          including residences, parks, and schools. 
          In August 2015, the Legislature and the Governor approved $7  
          million of emergency funding to test up to 1,500 residential  
          properties, parks, schools, and daycare centers in the  
          surrounding community; develop a comprehensive cleanup plan; and  
          begin cleanup of the highest priority sites based on the degree  


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          of lead contamination and other exposure factors. To date, the  
          department has removed more than 10,000 tons of contaminated  
          soil and analyzed more than 20,000 soil samples from hundreds of  
          properties. The department has also established an Advisory  
          Group of community leaders, local residents, business leaders,  
          scientists, and elected officials to help guide closure and  
          cleanup efforts.
          This bill would provide additional funding from the Toxic  
          Substances Control Account to test the remaining properties,  
          schools, daycare centers, and parks in the 1.7 mile radius and  
          remove contaminated soil at the properties that have the highest  
          lead levels and greatest potential exposure to residents. In  
          addition, the department will conduct specialized tests and  
          analyses to conclusively identify the source of the  
          contamination and hold Exide - and any other responsible parties  
          - accountable. 
          The plan provides resources to expand community engagement in  
          the testing and cleanup process, enhance coordination and job  
          training for community residents, and promote the use of local  
          business and labor for contracting purposes.

          Law:  Specifically, this bill:
             1)    Appropriates $176.6 from the Toxic Substances Control  
             2)    Stipulates that funds may be used for any of the  
                following activities: (a) cleanup and investigation of  
                properties contaminated by lead in communities surrounding  
                the Exide Technologies facility in the City of Vernon; (b)  
                provide job training related to the cleanup and  
                investigation activities; (c) take action to pursue all  
                remedies against potential responsible parties including,  
                but not limited to, cost recovery.
             3)    Provides for a public participation process between the  
                Department of Toxic Substances Control (DTSC) and the  
             4)    Requires DTSC to develop a job and development training  
                program with the goals of providing skills, health and  


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                safety training, and support for job placement related to  
                the cleanup for community members living near the Exide  
                Technologies facility.
             5)    Requires the department to report publicly on the  
                progress of the cleanup through public websites and  
                directly to the Legislature.

          Effect:  Appropriates $176.6 million from the Toxic Substances Control  
          Account for the purposes stated in the bill. 
          Support:   None recorded.
          Opposed:  None recorded.
          Comments: SB 93 (De León) provides for a transfer of $176.6 million as a  
          loan to the Toxic Substances Control Account to allow for the  
          appropriation in this bill. The $176.6 million appropriation  
          will enable the department to address the significant public  
          health concerns in the communities surrounding the Exide  
          Technologies facility in an expedited manner. However, cleanup  
          costs initially incurred by the state will ultimately be sought  
          from the parties responsible for the lead contamination.
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