BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            AB 2153
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          |Author:    |Cristina Garcia                                      |
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          |Version:   |8/1/2016               |Hearing      |8/3/2016        |
          |           |                       |Date:        |                |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Rachel Machi Wagoner                                 |
          |           |                                                     |
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          SUBJECT:  The Lead-Acid Battery Recycling Act of 2016.

            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).

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

            a)   Establishes the Hazardous Waste Control program;

            b)   Regulates the handling, transport and disposal of  
               hazardous waste and authorizes the Department of Toxic  
               Substances Control (DTSC) to implement and enforce HWCA and  
               RCRA.

            c)   Prohibits the disposal of a lead-acid battery at a solid  
               waste facility, or on or in any land, surface waters,  
               watercourses, or marine waters. 







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            d)   Requires retailers to accept the trade-in of a spent  
               lead-acid battery by a consumer upon purchase of a new one. 

            e)   Governs the management of used lead-acid batteries as a  
               hazardous waste and provides alternative management  
               standards for the recycling of lead-acid batteries.

            f)   Requires all lead-acid batteries purchased by any state  
               agency for, and, at the next required installation of a  
               battery in, an automobile or light truck owned or operated  
               by the state agency, to be a recycled lead-acid battery, to  
               the extent that all existing stock of nonrecycled batteries  
               have been utilized.

            g)   A violation of the existing lead-acid battery management  
               provisions is punishable as a misdemeanor with a fine of not  
               more than one thousand dollars ($1,000) or by imprisonment  
               for up to six months in a county jail or by both that fine  
               and imprisonment for the first violation.  If the conviction  
               is for a second or subsequent violation, the person shall,  
               upon conviction, be punished by imprisonment in the county  
               jail for not more than one year or by imprisonment pursuant  
               to subdivision (h) of Section 1170 of the Penal Code for 16,  
               20, or 24 months.  The court shall also impose upon the  
               person a fine of not less than five thousand dollars  
               ($5,000) or more than twenty-five thousand dollars  
               ($25,000).

          3) Requires the Department of Resources, Recycling and Recovery  
             (CalRecycle) to coordinate with DTSC to develop and implement  
             a public information program to provide uniform and consistent  
             information on the proper disposal of hazardous substances  
             found in and around homes, and to assist the efforts of  
             counties required to provide household hazardous collection,  
             recycling, and disposal programs. 


          This bill establishes new fees on lead-acid batteries to fund  
          contamination cleanup caused by lead-acid batteries.   
          Specifically, this bill:  


          1) Repeals and adds Article 10.5 of Chapter 6.5 of the Health &  








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             Safety Code regarding the management of lead-acid batteries. 


          2) Requires a replacement lead-acid battery dealer to accept from  
             a consumer a used lead-acid battery for recycling and caps the  
             number of batteries that can be returned by a consumer at six  
             lead-acid batteries per day. 


          3) Requires dealers to collect a refundable flat-fee deposit on  
             the sale of new batteries that ranges from $15 to $100,  
             depending on weight on the new lead-acid batteries sold if a  
             used battery is not exchanged for the new battery.


          4) Requires consumers to be refunded the deposit if the lead-acid  
             battery is returned within 45 days after purchase. 


          5) Requires a lead-acid battery dealer to conspicuously post a  
             written notice stating that the dealer is required by law to  
             accept used lead-acid batteries and charge a fee on all  
             replacement lead-acid battery sold. 


          6) Requires a lead-acid battery dealer to charge a non-refundable  
             $1 California Battery Fee on each lead-acid battery sold to a  
             person buying a replacement lead-acid battery, except as  
             specified.


          7) Requires all replacement lead-acid batteries to have a  
             recycling symbol.


          8) Requires a lead-acid battery dealer to collect the California  
             Battery Fee at the time of sale and authorizes the dealer to  
             retain 1.5% of the fee as reimbursement for any costs  
             associated with the collection of the fee.  Requires the  
             remainder of the fee be remitted to the State Board of  
             Equalization (BOE).


          9) Requires each manufacturer to remit to the BOE a $1  








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             Manufacturer Battery Fee for each lead-acid battery sold at  
             retail to a person in California. 


          10)Authorizes a wholesaler to be deemed the manufacturer for  
             purposes of this article, as specified.


          11) Authorizes any manufacturer exempted from its obligations to  
             pay the Manufacturer Battery Fee to voluntarily submit an  
             additional $1 Manufacturer Battery Fee per lead-acid battery.   
             Prohibits the manufacturer from passing along the costs to the  
             wholesaler or consumers. 


          12)Requires all California Battery Fee and Manufacturer Battery  
             Fee revenues be remitted to BOE for administration of the fee  
             and the remainder to be deposited into the Lead-Acid Battery  
             Cleanup Fund. 


          13)States that the obligation to pay the manufacturer battery fee  
             and the board's authority to collect the fee shall immediately  
             be terminated as to all payors if either of the following  
             occurs:

             a)    The state files suit against any person that has  
                remitted a manufacturer battery fee to recover moneys spent  
                for purposes identified in paragraph (1) of subdivision (b)  
                of Section 25215.5, except for a suit against an owner or  
                operator, or legal successor to the owner or operator, of  
                the site at which the moneys sought to be recovered were  
                spent.

             b)    The state issues an order to any person who has remitted  
                a manufacturer battery fee that requires the recipient to  
                take action to address conditions at or allegedly  
                attributable to a lead-acid battery recycling facility or  
                its operations, except for an order issued to a person who  
                is the owner or operator, or legal successor to the owner  
                or operator, of the site at which the action ordered would  
                occur.










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          14)Continuously appropriates all funds in the Lead-Acid Battery  
             Cleanup Fund to DTSC to fund the following activities:  
             investigation, site evaluation, cleanup, abatement, remedy,  
             removal, monitoring, or other response actions at areas of the  
             state that have been contaminated by the production,  
             recycling, or improper disposal of lead-acid batteries,  
             administration and repayment of General Fund loans for lead  
             contamination cleanup.
             
           15) Requires any funds spent by DTSC for any eligible  
             lead-related activities to be drawn from the Lead-Acid Battery  
             Cleanup Fund before drawing from any other fund source.  


          16)Requires DTSC, prior to seeking to recover any moneys spent on  
             eligible lead-related activities from any person who has  
             remitted any amount of Manufacturer Battery Fees, other than  
             persons who are or were the owners or operators, or legal  
             successors to owners or operators, of a site at which such  
             activity occurred, to do the following:


             a)    Draw from the funds in the Lead-Acid Battery Cleanup  
                Fund.


             b)    Vigorously pursue efforts to recover any moneys expended  
                for specified activities from the owner or operator or  
                legal successor to the owner or operator of the site at  
                which the activity occurred, or the site that is identified  
                as the source of release to which the activity was  
                directed, until the earlier of either of the following:


              i)       The issuance of a final unappealable legal judgment  
                   against the owner or operator or legal successor to the  
                   owner or operator.

              ii)      Both of the following conditions have been met:

                     (1)             At least 36 months have passed since  
                          the department filed suit against the owner or  
                          operator or legal successor to the owner or  
                          operator of the site at which the activity  








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                          occurred or of the site that is identified as the  
                          source of the release to which the activity was  
                          directed.

                     (2)             Seventy-one months have passed since  
                          the first expenditure of moneys from the  
                          Lead-Acid Battery Cleanup Fund on remedial  
                          actions at the site.

          17)If a person from whom the department recovered moneys receives  
             a favorable judgment against a second person who has remitted  
             a manufacturer battery fee in an action relating to those  
             response activities, requires the judgment to be reduced by  
             the amount the second person has already remitted to the  
             Lead-Acid Battery Cleanup Fund that is not previously  
             committed to other payor liabilities.



          18) Requires the balance of a judgment against any manufacturer  
             who has remitted any amount of Manufacturer Battery Fees to be  
             reduced by the amount the manufacturer has remitted to the  
             state.


          19) States that nothing in this bill shall be construed to limit  
             or otherwise affect any cause of action that may exist under  
             any law that the state may bring against the owners or  
             operators, or legal successors to owners or operators, of a  
             site at which any described eligible lead-related activity  
             occurred.


          20) Requires any funds spent from the Lead-Acid Battery Cleanup  
             Fund that are subsequently recovered from any person to be  
             deposited into the Lead-Acid Battery Cleanup Fund.


          21) Prohibits funds from the Lead-Acid Battery Cleanup Fund from  
             funding Green Chemistry as it relates to lead-acid batteries. 


          22)Precludes lead-acid batteries from consideration for inclusion  
             on a list of Priority Products under DTSC's Safer Consumer  








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             Products Program until after the completion of the fifth  
             Priority Product Work Plan as long as the national recycling  
             rate for lead in batteries determined by the methodology  
             accepted by the US EPA employed in the Battery Council  
             International's National Recycling Rate Study exceeds 90%.

          23)Requires DTSC to report annually to the Governor and to the  
             Legislature on the status of the Lead-Acid Battery Cleanup  
             Fund and on the department's progress to implement this  
             article.

          24)Requires, if, as of October 1 of any calendar year, the  
             balance in the Lead-Acid Battery Cleanup Fund exceeds one  
             hundred million dollars ($100,000,000), that BOE shall notify  
             each manufacturer to suspend remitting a manufacturer battery  
             fee pursuant to this article commencing January 1 of the  
             following year, until the manufacturer receives a notice from  
             the board pursuant to subdivision (b).  The board shall also  
             provide notice to the department of the suspension of  
             manufacturer battery fee remittal.

          25)Requires if, as of October 1 of a calendar year in which  
             manufacturers are not remitting a manufacturer battery fee and  
             the balance of the Lead-Acid Battery Cleanup Fund is less than  
             thirty million dollars ($30,000,000), that BOE shall, no later  
             than October 31 of the same year, notify in writing each  
             manufacturer that is required to remit a manufacturer battery  
             fee to resume remitting the fee beginning on January 1 of the  
             following year.  

          26)States that, notwithstanding any other law, an administrative  
             order shall not be issued or judicial relief sought to compel  
             any person who has remitted a manufacturer battery fee to take  
             any activity as specified at that site unless all of the  
             following conditions are met:

             a)    Any activities undertaken by any party at the site have  
                been inadequate to fully address concerns to which the  
                activities would be directed.

             b)    The state has a reasonable basis to believe, that if the  
                state or private funds are used to undertake the activities  
                as specified and recovery of those funds is sought from the  
                person against whom the administrative order was issued,  








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                that person ultimately would be held responsible for  
                amounts in excess of the amount manufacturer battery fees  
                the person has remitted to the Lead-Acid Battery Cleanup  
                Fund that is not already committed to the payor's  
                liability.

             c)    One of the following:

                i)         The state has issued an administrative order  
                     against the owner or operator or legal successor to  
                     the owner or operator of the site, and obtained a  
                     final nonappealable judgment enforcing that order  
                     against the owner or operator or legal successor to  
                     the owner or operator, and the owner or operator or  
                     legal successor to the owner or operator has not  
                     complied with the order; 

                     or

                ii)        Both of the following conditions have been met:

                     (1)             At least 36 months have passed since  
                          the department issued an administrative order  
                          against the owner or operator or legal successor  
                          to the owner or operator of the site at which the  
                          activity occurred or of the site that is  
                          identified as the source of the release to which  
                          the activity was directed.

                     (2)             Seventy-one months have passed since  
                          the first expenditure of moneys from the  
                          Lead-Acid Battery Cleanup Fund or remedial action  
                          took place at the site.

          27) Rather than providing that a violation of lead-acid batteries  
             is a misdemeanor, authorizes DTSC to impose civil  
             administrative penalties not to exceed $1,000 per day on any  
             person who is in violation and does not provide for more  
             severe fines for subsequent violations.  In assessing or  
             reviewing the amount of a civil penalty imposed for a  
             violation of this article, requires DTSC or the court to  
             consider all of the following:










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             a)    The nature and extent of the violation.


             b)    The number and severity of the violation or violations.


             c)    The economic effect of the penalty on the violator.


             d)    Whether the violator took good faith measures to comply  
                with this article and the period of time over which these  
                measures were taken.


             e)    The willfulness of the violator's misconduct.


             f)    The deterrent effect that the imposition of the penalty  
                would have on both the violator and the regulated  
                community.


             g)    Any other factor that justice may require.


          28)Requires DTSC to provide notice of the alleged violations to  
             any person alleged to be in violation of any provision of this  
             article no less than 60 days before the issuance of any  
             administrative penalty.  If the person corrects the alleged  
             violation before the issuance of an administrative penalty,  
             DTSC shall not issue the administrative penalty.


          29) Provides an unspecified General Fund loan for the initial  
             administration of this act that is to be paid back from the  
             proceeds of the fee.


          30) Requires all penalties to be deposited into the Lead-Acid  
             Battery Cleanup Fund. 


          31) Requires, on or before April 1, 2017, the Office of  
             Environmental Health Hazard Assessment to convene a Lead  








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             Advisory Committee to review and advise regarding policies and  
             procedures to reduce childhood lead poisoning in the state, as  
             specified.


          32) Establishes this as an urgency act in order to increase the  
             cleanup of toxic materials and prevent additional toxic  
             pollution at the earliest possible time.


          33)Establishes the effective date as January 1, 2017.

            Background
          
           1) Lead-Acid Batteries.  Lead-acid batteries are rechargeable  
             batteries made of lead plates situated in sulfuric acid within  
             a plastic casing.  They are used globally for a wide range of  
             purposes, most commonly in vehicles like automobiles, boats,  
             trucks, and industrial vehicles.  There is approximately 6  
             million tons of lead used worldwide annually.  Three quarters  
             of that is used for lead-acid batteries.  According to the  
             U.S. Geological Survey, the lead-acid battery industry  
             accounted for about 90% of reported U.S. lead consumption  
             during 2015. The average battery contains 17.5 pounds of lead  
             and 1.5 gallons of sulfuric acid.  


             For example, more than 25 million motor vehicles are  
             registered in California.  Each vehicle currently still uses a  
             lead-acid battery.  According to the California Board of  
             Equalization's estimates, based on 2012 Census data, lead-acid  
             car battery sales in California are approximately $1.6  
             billion.  That is based on an estimate of roughly 16 million  
             batteries sold at an average cost of $100.

             The demand for lead is high and as such lead is a highly  
             valued commodity that makes recycling highly profitable.

             Lead-acid batteries contain chemicals that have the potential  
             to be hazardous to public health and the environment.  The  
             batteries contain lead, a highly toxic metal, and sulfuric  
             acid, a corrosive electrolyte solution.  Since both of these  
             materials are classified as hazardous, California law requires  
             proper handling as a hazardous waste.








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             Contact with the sulfuric acid solution may lead to irritation  
             or burns to the skin, or irritation to the mucous membranes of  
             the eyes or the upper respiratory system.  Symptoms of  
             low-level lead exposure include fatigue, impaired central  
             nervous system functions, and impaired learning.  Severe lead  
             poisoning can result in coma, convulsions, irreversible  
             neurological damage, seizures, and even death.

             If lead-acid batteries are disposed of in a solid waste  
             landfill or illegally dumped, the lead and sulfuric acid can  
             seep into the soil and contaminate groundwater, potentially  
             affecting the quality of our drinking water supply.  If the  
             batteries are disposed of near rivers, streams, lakes, or  
             marine waters, the lead and sulfuric acid can also threaten  
             aquatic life.

             In California, lead-acid batteries are a hazardous waste  
             unless they are recycled.  California law specifies management  
             for lead-acid batteries when entering the recycling stream.  

             To recover lead from a battery for recycling, the battery is  
             broken and the components are classified. The lead containing  
             components are processed in a furnace or smelter.

             Humans have been smelting lead for thousands of years,  
             poisoning themselves in the process.  Although lead poisoning  
             is one of the oldest known work and environmental hazards, the  
             modern understanding of the small amount of lead necessary to  
             cause harm did not come about until the latter half of the  
             20th century.  According to the Centers for Disease Control  
             and Prevention there is no safe threshold for lead exposure.

             Lead smelters with little pollution controls have contributed  
             to several environmental problems, especially raised blood  
             lead levels in the surrounding population.  The problem is  
             particularly significant in many children who have grown up in  
             proximity to a lead smelter.

             The United States and California have increased regulations  
             over smelting operations to decrease potential environmental  
             and public health exposures to smelting emissions and  
             contamination over the last several decades.









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             However, there are many historic smelters in California, like  
             the Exide facility in Vernon, that have historic pollution  
             that goes back for many decades prior to the air, soil and  
             water regulations of today.

             As of 2015, there is only one lead smelter, recycler of  
             lead-acid batteries in California.  That is Quemetco West LLC  
                                                                 in the City of Industry. 

           2) Exide Technologies.  The Exide Technologies (Exide) battery  
             recycling facility in Vernon, California, recycled lead from  
             used automotive batteries and other sources.  The facility  
             could process about 25,000 automotive and industrial batteries  
             a day, providing a source of lead for new batteries.  Over the  
             course of decades of operation, the facility polluted the soil  
             beneath it with high levels of lead, arsenic, cadmium and  
             other toxic metals.  It also has contaminated groundwater,  
             released battery acid onto roads and contaminated homes and  
             yards in surrounding communities with lead emissions.  In  
             March, 2015, Exide was forced to close the facility for good  
             and, under a state agreement with DTSC, set aside $7.7 million  
             to test homes and other structures around the facility for  
             pollution resulting from the facility. 


             DTSC estimates homes between 1.3 and 1.7 miles away from the  
             facility may potentially be affected by Exide's lead  
             contamination - that equates to somewhere between 5,000 -  
             10,000 residential properties.  Cleaning each home costs about  
             $45,000, according to DTSC.  If the cleanup grows to thousands  
             of properties, it could cost hundreds of millions of dollars.   
             Removing lead-contaminated soil from thousands of homes  
             surrounding Exide could result in the most extensive cleanup  
             of its kind in California and will be among the largest  
             cleanup ever conducted in the nation.  At the end of the day,  
             the cost of cleanup in and around the Exide facility is  
             expected to top $500 million. 

             In February, 2016, Governor Jerry Brown announced a budget  
             proposal for funding cleanup in the polluted communities  
             surrounding the shuttered Exide facility.  The proposal  
             includes making $176.6 million available to DTSC to expedite  
             and expand testing and cleanup of residential properties,  
             schools, daycare centers and parks in the 1.7 mile radius  








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             around the facility and remove contaminated soil at the  
             properties that have the highest lead levels and greatest  
             potential to expose residents.


             After the $176.6 million is expended, DTSC will need  
             additional funds to do complete and thorough cleanup.  This  
             bill is intended to fill that gap while providing an ongoing  
             source of funds to address future lead contamination from  
             lead-acid batteries.  


           3)  Quemetco West LLC.  The facility in the City of Industry,  
              operated by Quemetco, Inc., recycles leadacid batteries,  
              which involves separating lead from other components,  
              smelting the lead and refining it to meet customer  
              specifications. The facility has been in operation since  
              1959.  The facility operates under several different permits  
              and regulations including: 

                         Air Quality  overseen by the South Coast Air  
                   Quality Management District.
                         Water Quality  overseen by the Los Angeles  
                   Regional Water Quality Control Board and the Los Angeles  
                   County Sanitation District. 
                         Hazardous Waste  overseen by the Department of  
                   Toxic Substances Control. 

               DTSC is currently overseeing an investigation to determine  
               if past emissions of airborne lead impacted the area  
               surrounding the facility, including sampling soil in  
               residential and industrial neighborhoods, as well as public  
               streets and waterways. 

                On July 26, 2016, DTSC ordered the Quemetco battery  
               recycling facility in the City of Industry to correct  
               violations related to its failure to have a functioning  
               leak-detection system and maintain its containment building,  
               which holds hazardous lead waste, to minimize the  
               possibility of any release. 
               In issuing this order, DTSC stated that it is elevating its  
               enforcement actions against Quemetco after issuing a series  
               of violations over the last year, including seven non-minor  
               violations this month. 








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               On July 15, 2016, DTSC issued a Second Addendum to Quemetco  
               for violations stemming from a multi-day inspection.  Among  
               other corrective actions, the facility was instructed to  
               reduce the amount of ground-up lead waste from batteries  
               being stored in its containment building, and maintain the  
               building to prevent any release of hazardous waste. 

               On July 12, 2016, DTSC issued an Addendum to Quemetco citing  
               it for its failure to have a functioning leak detection and  
               liquid collection system for its containment building. 

               On June 20, 2016, DTSC issued Quemetco another Summary of  
               Violations after DTSC inspectors observed problems with the  
               leak-detection system in Quemetco's containment building.   
               Quemetco was required to take the affected portion of the  
               containment building out of service until it could  
               demonstrate to the Department that the facility is in  
               compliance with required safeguards. 

               On August 5, 2015, DTSC issued Quemetco a Summary of  
               Violations that notified the facility it failed to maintain  
               an adequate groundwater and surface water monitoring system.  
                On June 1, 2016, DTSC issued an Addendum to that Summary of  
               Violations requiring Quemetco to develop compliant water  
               monitoring plans that will effectively measure if operations  
               at the facility result in contamination. 
            
          Comments
          
          1) Purpose of Bill.  According to the author, "AB 2153 will  
             create a state mandated Lead-Acid (Car) Battery fee that will  
             serve as a funding mechanism for clean-up of areas  
             contaminated by lead-acid batteries.  Consumers will be  
             charged a $1 fee per car battery at point of sale.   
             Manufacturers will pay a $1 fee on all batteries sold in the  
             state.  The money from the fee can go to re-pay the Governor's  
             176.6 million dollar loan, and will be used to clean up areas  
             of the state that have been contaminated by the production and  
             recycling of lead acid batteries."

             AB 2153 was amended on August 1, 2016.  According to the  
             author, "the amendments largely reflect extensive amendments  
             from BOE, amendments that were agreed upon in Assembly ESTM  








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             committee and a large stakeholder group. The author states  
             that the amendments set the refundable deposit to be charged,  
             create and stop/start trigger for the fund, remove the  
             requirement to expend the fund before suit can be filed  
             against an arranger, and many other more technical things."
              

          2) So much more than a funding mechanism for cleanups.  This lets  
             manufacturers off the hook by:

             a)    Changing the HWCA to create a complicated system by  
                which to hold battery manufacturers responsible as  
                responsible parties.

             b)    Changing the HWCA to remove the crime and decrease civil  
                penalties for lead-acid battery violations.

             c)    Fundamentally changing, under HWCA, the existing cleanup  
                reimbursement, penalty and prosecution regime under which  
                the state can pursue the owner/operator of the site and/or  
                anyone who generated or arranged for wastes to be  
                transported to the contaminated site.  This bill instead  
                requires the state to exhaust all of its efforts to recover  
                reimbursement from the owner/operator of a site before it  
                can go after anyone else who might be liable under current  
                law.

             d)    Creating a "pooled account" for liability for cleanups  
                that is funded not just by manufacturers but by consumers  
                that must be drawn down prior to holding a contributing  
                manufacturer responsible for a cleanup that it is  
                responsible for.  Additionally, the manufacturer can recoup  
                its "fee" by passing it along to the consumer by raising  
                its prices.

             e)    Shifting burden of cleanup costs from  
                manufacturers/wholesalers to consumers and site  
                owners/operators.  By providing significant protections  
                from liability to manufacturers and wholesalers, and  
                requiring the state to first exhaust efforts to recover  
                reimbursement from the site owner/operator, this bill  
                shifts the burden of cleanup costs away from manufacturers  
                and wholesalers.  The state will only be able to pursue a  
                manufacturer or wholesaler for reimbursement or cleanup  








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                after efforts to force the site owner/operator have failed.  
                 Even then, manufacturers and wholesalers will be insulated  
                from liability because, as drafted, the bill sets such high  
                obstacles prior to talking an action holding a manufacturer  
                responsible, that it is unlikely the state would be able to  
                meet the requirements.

             f)    Hindering a responsible party's ability to recover  
                judgments against a manufacturer or wholesaler who has paid  
                this new "fee."  This bill also reduces the amount of money  
                that a battery manufacturer or wholesaler will have to pay  
                to the owner/operator of a site for cleanup costs.  Under  
                existing law, the state can force the owner/operator to  
                reimburse the state for all cleanup costs.  That  
                owner/operator can then sue any other responsible party for  
                contribution.  This means that if a court finds the owner  
                60% liable and another responsible party 40% liable, the  
                owner can recover that 40% from the other responsible  
                party.  This bill would prohibit the owner from recovering  
                from a manufacturer or wholesaler the amount of the taxes  
                the manufacturer or wholesaler paid into the cleanup fund  
                thereby undercutting a responsible party's ability to seek  
                contribution from other responsible parties.

             g)    Granting an exemption for lead-acid batteries from  
                California's Safer Consumer Product Regulations.  This bill  
                exempts lead-acid batteries from regulation under the  
                state's Green Chemistry program for five cycles of the  
                Safer Consumer Product priorities list.  While these have a  
                high recycling rate, some may object to any statutory  
                exemption from the program.  Indeed, this conflicts with  
                the Governor's May Revise proposal that requires DTSC to  
                consider whether lead-acid batteries should be added to the  
                initial list of priority products that DTSC may regulate  
                over the next few years.  Finally, it is not clear that the  
                exemption should be predicated on a national lead-acid  
                battery collection rate.

          3) Tax not a fee.  The bill collects a consumer "fee" and  
             manufacturer "fee" to be collected at the purchase of a new  
             lead-acid battery and be deposited in the Lead-Acid Battery  
             Cleanup Fund to be used to off-set cleanup costs for former  
             and future sites that are contaminated by the mishandling of  
             this hazardous waste stream.   Under Proposition 26 of 2010, a  








          AB 2153 (Cristina Garcia)                               Page 17 of  
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             fee (not a tax) is defined as:

             a)    A charge imposed for a specific benefit conferred or  
                privilege granted directly to the payor that is not  
                provided to those not charged, and which does not exceed  
                the reasonable costs to the state of conferring the benefit  
                or granting the privilege to the payor.

             b)    A charge imposed for a specific government service or  
                product provided directly to the payor that is not provided  
                to those not charged, and which does not exceed the  
                reasonable costs to the state of providing the service or  
                product to the payor.

             c)    A charge imposed for the reasonable regulatory costs to  
                the state incident to issuing licenses and permits,  
                performing investigations, inspections, and audits,  
                enforcing agricultural marketing orders, and the  
                administrative enforcement and adjudication thereof.

             d)    A charge imposed for entrance to or use of state  
                property, or the purchase, rental, or lease of state  
                property.

               A consumer and manufacturer fee that is pooled to cleanup  
               contamination from mishandled lead-acid batteries does not  
               meet these criteria to be considered a "fee" under  
               Proposition 26.  

          4) Potential for loss of jobs and innovation in California.  This  
             bill sets up a structure for battery manufacturers that sell  
             in California to contribute to a fund that will be used to  
             cleanup sites contaminated by used lead-acid battery handling.  
               Unlike other programs in California that are funded by a  
             consumer fee, this fund is not used to help spur recycling or  
             new research and development for better products.  In fact,  
             this bill prohibits the state from using the fund for such  
             activities.  Other than reducing the financial liability for  
             battery manufacturers by putting a-dollar-per-battery on the  
             table, this bill does not help California innovate better,  
             safer, cleaner battery technology.   Rather it hinders that  
             ability while attempting to clean up the industry's past  
             contamination in California.  Additionally, because there is  
             only one smelter in California that is currently recycling a  








          AB 2153 (Cristina Garcia)                               Page 18 of  
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             portion of California's lead-acid battery waste, rather than  
             create a better technology, this bill creates a system to ship  
             our wastes to other countries where the transport and lead  
             smelting process will harm the environment and public health  
             elsewhere (where there is not a fee for cleanup of the  
             contamination).

          5) Governor's Budget.  The 2016-2017 Budget Act designates two  
             positions for DTSC to evaluate listing lead-acid batteries as  
             "priority products" subject to DTSC's Safer Consumer Products  
             regulations.   As part of DTSC's Hazardous Waste Reduction  
             Initiative, it will conduct research, engage with  
             stakeholders, evaluate options, and implement recommended  
             actions to better protect the people and environment of  
             California from adverse impacts related to the manufacture,  
             use, recycling, and disposal of lead-acid batteries.  


             AB 2153 would preclude lead-acid batteries from consideration  
             for inclusion in the Safer Consumer Products Regulations as  
             long as the national recycling rate for lead in batteries  
             determined by the methodology accepted by the US EPA employed  
             in the BCI's National Recycling Rate Study exceeds a  
             to-be-determined percentage. 


             While the bill is mindful of the Administration's budget  
             proposal, it is in conflict with the direction of that  
             proposal.  According to the auto care industry, 99.6% of all  
             lead-acid core batteries are recycled in California.  


             In addition, the proposed exemption for lead-acid batteries  
             would be precedent setting.  The intent of the Safer Consumer  
             Product Program is to do a comprehensive analysis of products,  
             chemicals, and exposure pathways, and prioritize the most  
             dangerous chemicals for regulation to protect public health  
             and limit Californian's exposure to hazardous chemicals. 


          6) Is this too great a sacrifice?  AB 2153 aims to create a fund  
             to provide resources to clean up sites across California that  
             have been contaminated by lead-acid battery manufacturing,  
             use, recycling and disposal.  This contamination has caused  








          AB 2153 (Cristina Garcia)                               Page 19 of  
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             public health and environmental damage for not just years but  
             decades and the health impacts are not temporary but can be  
             for a lifetime.


             Creating a fee on lead-acid batteries to address this damage  
             and harm is appropriate and consistent with California  
             environmental law and policy in which the state generates  
             revenue from a product or waste to address the damage or  
             potential harm caused by that product or waste.  For example,  
             California collects a fee on the sale of tires to fund  
             recycling incentive programs.  There is also a state fee to  
             facilitate the recycling of used motor oil.  


             Similarly, this bill could help facilitate the cleanup of  
             sites across the state where lead presents health and  
             environmental risk.


             However, this bill conflicts with its own goal of reducing the  
             harm done by lead-acid batteries by granting responsible  
             parties immunity from administrative, civil and criminal  
             prosecution, and by allowing exemption from both California  
             law for the proper and safe management of hazardous waste  
             management and California law designed to help improve  
             products sold in the state to decrease adverse impacts to the  
             environmental and human health.


             What is the justification for sacrificing environmental  
             protections?


             The recent regulatory actions taken at Exide and Quemetco  
             battery recycling facilities and the contamination found  
             elsewhere in the state illustrate that this product and waste  
             steam, which present complicated environmental risks not only  
             during recycling but throughout the lifecycle and the legacy  
             in California, is far-reaching.


             In order to best address the long-standing significant problem  
             identified by this bill, AB 2153 should be amended to strike  








          AB 2153 (Cristina Garcia)                               Page 20 of  
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             the provisions related to liability relief, exemption from  
             HWCA enforcement provisions and the Consumer Product Safety  
             regulations for battery manufacturers; while maintaining the  
             fees on lead-acid battery manufacturers to clean up  
             contaminated sites across California.


             


           
           DOUBLE REFERRAL:

          This measure provides liability relief provisions and  
          restructures the judicial review of responsibility for  
          remediation under HWCA for lead-acid battery manufacturers.

          If this measure is approved by the Senate Environmental Quality  
          Committee, the do pass motion must include the action to re-refer  
          the bill to the Senate Judiciary Committee.

            SOURCE:                    Author  

           SUPPORT:               

          California Automotive Wholesalers Association
          California Communities Against Toxics
          California Labor Federation
          California Safe Schools 
          Coalition For A Safe Environment 
          Del Amo Action Committee
          Desert Citizens Against Pollution
          Healthy Homes Collaborative
          Society for Positive Action
           
           OPPOSITION:    

          Environmental Working Group
          Quemetco, Inc.
          Sierra Club, California
           


           








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