BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 93| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 93 Author: De León (D) and Lara (D), et al. Amended: 4/6/16 Vote: 21 PRIOR VOTES NOT RELEVANT ASSEMBLY FLOOR: 76-0, 4/14/16 - See last page for vote SUBJECT: Budget Act of 2015 SOURCE: Author DIGEST: This bill amends the Budget Act of 2015 to adopt expenditures related to the cleanup of the Exide Technologies facility in the City of Vernon. Assembly Amendments delete the Senate version of the bill, which expressed the intent of the Legislature to enact statutory changes relating to Budget Act of 2015, and insert the current language. ANALYSIS: This bill: 1)Transfers $176.6 million as a loan from the General Fund to SB 93 Page 2 the Toxic Substances Control Account. 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; and c) take action to pursue all remedies against potential responsible parties including, but not limited to, cost recovery. 3)Specifies 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 submits a notice and report of that action to the Joint Legislative Budget Committee. 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. SB 93 Page 3 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 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 provides 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SB 93 Page 4 SUPPORT: (Verified4/5/16) None received OPPOSITION: (Verified4/5/16) None received ASSEMBLY FLOOR: 76-0, 4/14/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Irwin, Levine, Melendez, Nazarian Prepared by:Catherine Freeman / B. & F.R. / (916) 651-4103 4/15/16 14:10:40 **** END **** SB 93 Page 5