BILL ANALYSIS Ó
SB 93
Page 1
SENATE THIRD READING
SB
93 (De León and Lara)
As Amended April 6, 2016
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE: Vote not relevant
SUMMARY: Amends the 2015-16 Budget Act to include a new
transfer of funds to address urgent cleanup of lead
contamination in the communities surrounding the Exide
Technologies facility in the City of Vernon. This bill, along
with the companion trailer bill, AB 118 (De León and Lara) of
the current legislative session, proposes expenditures of $176.6
million for cleanup-related activities.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Transfer $176.6 million as a loan from the General Fund to the
Toxic Substances Control Account for the Department of Toxic
Substances Control (DTSC) to use for any of the following
purposes:
a) Activities related to the cleanup and investigation of
properties contaminated with lead in the communities
SB 93
Page 2
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)Stipulate that all funds received through cost recovery
efforts from responsible parties associated with the hazardous
substance contamination in the communities surrounding the
Exide Technologies facility in the City of Vernon shall be
used to repay the General Fund loan.
3)Specify that, to the extent cost recoveries are not sufficient
to fully repay the loan, the Director of Finance may forgive
any remaining balance provided the Director of Finance submits
a notice and report of that action to the Joint Legislative
Budget Committee.
4)Stipulate that these funds shall be available for transfer
until June 30, 2018.
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
SB 93
Page 3
leaks, an overflowing pond of toxic sludge, enormous cracks in
the floor and hazardous levels of lead in the soil outside.
The DTSC permanently suspended operations at Exide in 2014 and
the facility closed in 2015 after the 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
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
SB 93
Page 4
the highest lead levels and greatest potential exposure to
residents. In addition, the DTSC will conduct specialized tests
and analyses to conclusively identify the source of the
contamination and hold Exide - and any other responsible parties
- accountable.
The $176.6 million loan from the General Fund to the Toxic
Substances Control Account loan will enable the DTSC 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: 0002717