BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                     AB 118

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          118 (Santiago)

          As Amended  April 6, 2016

          Majority vote. Budget Bill Appropriation Takes Effect  

          |ASSEMBLY:  |51-27 |(March 23,     |SENATE: |38-0  |(April 7, 2016)  |
          |           |      |2015)          |        |      |                 |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |

          Original Committee Reference:  BUDGET

          SUMMARY:  Contains necessary statutory and technical changes to  
          implement SB 93 (De León and Lara) of the current legislative  
          session, which amends the 2015-16 Budget Act related to the  
          urgent cleanup of lead contamination in the communities  
          surrounding the Exide Technologies facility in the City of  
          Vernon.  This bill, along with SB 93, proposes expenditures of  
          $176.6 million for cleanup-related activities.

          The Senate amendments delete the Assembly version of this bill,  
          and instead:

          1)Appropriate $176.6 million (Toxic Substances Control Account)  
            to the Department of Toxic Substances Control (DTSC) to use  
            for any of the following purposes:
             a)   Activities related to the cleanup and investigation of  


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               properties contaminated with lead in the communities  
               surrounding the Exide Technologies facility in the City of  
               Vernon, California. 
             b)   Job training activities related to the cleanup and  
               investigation of the properties contaminated with lead in  
               these communities.

             c)   Actions taken to pursue all available remedies against  
               potentially responsible parties, including, but not limited  
               to, cost recovery actions against entities that are  
               potentially responsible, for the costs related to the  
               cleanup and investigation of properties contaminated with  
               lead in these communities.

          2)Direct DTSC to engage the impacted community and provide  
            meaningful opportunities for the public to participate in the  
            Department's cleanup plan preparation process, which shall  
            include at a minimum, a quarterly public meeting. 
          3)Stipulate that DTSC shall prepare and make available a Public  
            Participation Plan that specifies the DTSC's commitments to  
            engage and involve the community in the cleanup plan  
            preparation process.  

          4)Specify that the DTSC meet all applicable public participation  
            and notification requirements outlined in the  
            Carpenter-Presley-Tanner Hazardous Substance Account Act  
            (state Superfund law, Health and Safety Code Section 25300).

          5)Require DTSC to develop a Job and Development Training Program  
            with the goals of providing environmental skills, health and  
            safety training, and support for job placement related to the  
            cleanup for community members living near the Exide  
            Technologies facility.

          6)Specify that the DTSC post on its Web site the number of  
            access agreements signed, the number properties sampled, and  
            the number of properties cleaned up and shall updated these  


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            numbers at least twice a month.  

          7)Direct the DTSC to provide an annual report to the Senate and  
            Assembly Budget Committee's that address the following:

             a)   An update on the cleanup activities near the Exide  
               Technologies facility in Vernon, including a summary of the  
               environmental review of the cleanup activities;
             b)   The number of properties sampled and a summary of the  
               findings (this can be broken down in the approximate number  
               of homes in priority 1, 2 and 3);

             c)   The number of properties that have been remediated  
               (cleaned up); and

             d)   The number of access agreements signed.

          FISCAL EFFECT:  Appropriates $176.6 million from the Toxic  
          Substances Control Account.

          COMMENTS:  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 operated under an interim  
          status for over 30 years.  During that time, inspectors  
          documented more than 100 violations, including lead and acid  
          leaks, an overflowing pond of toxic sludge, enormous cracks in  
          the floor and hazardous levels of lead in the soil outside.  

          DTSC permanently suspended operations at Exide in 2014 and the  
          facility closed in 2015 after DTSC notified Exide that its  
          application for a new permit would be denied.  The DTSC then  
          ordered Exide to test and clean up residential properties and  


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          conducted its own testing.

          The DTSC'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.  The South Coast Air Quality  
          Management District also cited the facility numerous times, and  
          reported that arsenic emissions from Exide created an elevated  
          risk of cancer for as many as 11,000 people in the area  
          stretching from Boyle Heights to Huntington Park.  

          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  
          of lead contamination and other exposure factors.  To date, the  
          DTSC has overseen the sampling of 714 properties and the cleanup  
          of 208 properties.  The DTSC 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 package 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  

          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.

          The $176.6 million appropriation from the Toxic Substances  


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          Control Account will be supported by a loan from the General  
          Fund.  This loan 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.

          Analysis Prepared by:                                             
          Gabrielle Meindl / BUDGET / (916) 319-2099  FN: 0002718