BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 346|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 346
Author: Kehoe (D), et al
Amended: 6/1/09
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 5-2, 4/20/09
AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley
NOES: Runner, Ashburn
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/26/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Wolk, Yee
NOES: Cox, Denham, Runner, Walters, Wyland
SUBJECT : Hazardous materials: motor vehicle brake
friction materials
SOURCE : City of San Diego
Sustainable Conservation on Behalf of the Brake
Pad
Partnership
DIGEST : This bill reduces the use of copper and other
heavy metals in automobile brake friction materials
starting in 2014. This bill provides for a fee on brake
friction materials sold in the state to fund the activities
specified in the bill.
Senate Floor Amendments of 6/1/09 require manufacturers of
brake pads to submit two additional reports (for a total of
CONTINUED
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four reports) on their progress in reducing the amount of
copper in their product during the implementation phase of
the program created by this bill. This bill has a long
implementation timeline (January 1, 2032) and the
additional reports fill in the time gaps created by the
long timeline. The amendments remove "mitigation" as an
eligible expense for the funds generated by the fee on
brake pads under the new program created by the bill.
ANALYSIS :
Existing law:
1. Requires the Department of Toxic Substances Control
(DTSC), by January 1, 2011, to adopt regulations to
establish a process to identify and prioritize chemicals
or chemical ingredients in consumer products that may be
considered a "chemical of concern," in accordance with a
review process, as specified.
2. Requires DTSC, on or before January 1, 2011, to adopt
regulations to establish a process to evaluate chemicals
of concern, and their potential alternatives, in
consumer products in order to determine how best to
limit exposure or to reduce the level of hazard posed
by a chemical of concern, as specified.
3. Prohibits the manufacture, processing, and distribution
in products containing certain materials found to raise
health risks, including lead, polybrominated diphenyl
ethers, and phthalates.
4. Requires the State Water Resources Control Board (SWRCB)
and the California regional water quality control boards
to regulate the discharge of stormwater in accordance
with the federal Clean Water Act and the Porter-Cologne
Water Quality Control Act.
This bill:
1. Prohibits, after January 1, 2021, the sale of brake
friction materials in California that contain more than
five percent copper by weight.
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2. Prohibits, after January 1, 2032, the sale of brake
friction materials in California that contain more than
0.5 percent copper by weight.
3. Requires manufacturers of vehicles and brake friction
materials to monitor and provide four reports to DTSC on
their efforts to comply with the copper reduction
mandate. The first report is due on or before January
1, 2016. The second, on or before January 1, 2018, the
third on or before January 1, 2027, and the fourth on or
before January 1, 2029.
4. Requires DTSC to review the reports and, within six
months of receipt, report the following information to
the Legislature:
A. A summary of the information contained in the
reports received.
B. Statistics on certifications issued by third-party
testing agencies for friction materials found to be
in compliance with any or all of the requirements.
C. A summary of the results of the monitoring of
copper by DTSC.
5. Prohibits, after January 1, 2014, the sale of brake
friction materials in California that contain the
following materials in the amounts specified:
A. Cadmium and its compounds: 0.01 percent by
weight.
B. Chromium(VI)-salts: 0.1 percent by weight.
C. Lead and its compounds: 0.1 percent by weight.
D. Mercury and its compounds: 0.1 percent by weight.
E. Asbestiform fibers: 0.1 percent by weight.
5. Requires, on or before January 1, 2013, DTSC to perform
a base-line survey of the levels of nickel, zinc, copper
and antimony in brake friction materials.
6. Requires, on January 1, 2013 and at least every three
years thereafter, DTSC to monitor for nickel, zinc, and
antimony to ensure that the levels of those constituents
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to not increase more than 50 percent above the levels
established in the baseline study in #5 above.
7. Requires, if the levels for any of materials in #5 above
exceed the 50 percent threshold established in #6 above,
DTSC to take further action with other state agencies as
specified to determine if there is a need to control the
use of those materials.
8. Requires manufacturers of brake friction materials to
follow the process to be adopted by DTSC regarding
criteria to evaluate alternatives to copper in brake
friction materials.
9. Requires, on January 1, 2014, all brake friction
materials manufacturers to obtain certification as
specified to demonstrate compliance with the
requirements in #4 above and include that certification
on the brake friction materials.
10.Requires, on January 1, 2021 and until December 31,
2031, all brake friction materials manufacturers to
obtain certification as specified as to compliance with
the requirements in #1 above and include that
certification on the brake friction materials.
11.Requires, on January 1, 2032, all brake friction
materials manufacturers to obtain certification as
specified as to compliance with the requirements in #2
above and include that certification on the brake
friction materials.
12.Requires vehicle manufacturers and retailers of brake
friction materials to ensure that only compliant brake
friction materials are sold in this state.
13.Establishes a civil fine of up to $10,000 per violation
of the new article.
14.Establishes DTSC as the enforcing agency for the new
article and permits them to remove non-compliant brake
friction materials from sale.
15.Prohibits DTSC from recalling automobiles fitted with
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brake friction materials that do not comply with this
bill, but DTSC may impose fines and penalties authorized
under this bill on automobile manufacturers whose
vehicles are fitted with brake friction materials not in
compliance with this bill.
16.Requires DTSC, on January 1, 2011, to impose a fee of
$1.00 per axle set of brake friction materials sold in
this state (installed in a new car and replacement and
requires DTSC, commencing on January 1, 2012, and every
year thereafter, to adjust the fee by an amount
necessary to compensate for inflation. If DTSC
determines, after January 1, 2016, that the average
annual revenue from the fee is less than an amount
equivalent to $13,000,000 in 2011 dollars, or more than
an amount equivalent to $16,000,000 in 2011 dollars,
this bill requires DTSC to adjust the fee to an amount
necessary to fall within that range.
17.Establishes the Brake Friction Materials Water Pollution
Fund in the State Treasury, for deposit of the fee.
18.Requires that the fee be used to only cover specified
costs related to control of copper and other materials
in brake friction materials, and for making grants for
the purpose of planning, implementing, and measuring the
effectiveness of actions to improve water quality in
surface waters that receive runoff containing pollutants
for vehicle brake friction materials.
19.Allows up to five percent of the fees collection to be
used for account costs of fee collection.
20.Allows funds to be allocated by DTSC to trade
associations associated with brake friction materials
sale and manufacture for purposes of outreach to, and
education of, their memberships.
21.Requires DTSC to consult with the SWRCB regarding
implementation of the new article and use of the fees.
22.Requires DTSC to keep accurate books, records, and
accounts of all of its dealings under this bill, and
provides that those books, records, and accounts, and
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amounts paid into or from the fund shall be subject to
an annual audit.
Background
Total Maximum Daily Loads . The SWRCB has established Total
Maximum Daily Loads (TMDLs) as allowable pollution limits
on copper and other pollutants in several Southern
California urban watersheds. Failure to comply with these
TMDLs will result in serious penalties to the responsible
jurisdictions. SWRCB is working to establish these TMDLs
for watersheds throughout California. The ubiquity of
copper in the urban environment, and the technical
difficulty and impracticality of treating stormwater to
remove it, mean that compliance with copper TMDLs will not
be feasible without source reduction of copper. Cost could
go into the billions of dollars to remediate if source
reduction measures are not taken.
The Brake Pad Partnership . The Brake Pad Partnership is a
collaborative group of brake manufacturers,
environmentalists, stormwater management entities, and
regulators that originally came together to understand the
impact on the environment of brake pad wear debris. Before
the Partnership committed to investing significant state
and private resources in technical studies, the Brake
Manufacturers Council (BMC) and its members (primarily
manufacturers of original equipment friction materials)
agreed to introduce reformulated products if the technical
studies indicated that copper in brake pads was
contributing significantly to water quality impairment.
The SWRCB and the Department of Transportation together
contributed close to $1 million towards paying for the
subsequent research into the issue. In late 2007, the
Partnership completed a series of interlinked laboratory,
environmental monitoring, and environmental modeling
studies that indicated that brake pads are a substantial
contributor to copper in runoff to the San Francisco Bay.
As the technical studies' results emerged, the Partnership
shifted its focus to determining an appropriate mechanism
for reducing copper in brakes in California.
Baseline Studies and Alternatives . This bill requires DTSC
to do work in evaluating what is currently in brake pads
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and keeping an eye on what the new pads will contain. This
bill requires, if levels of nickel, zinc, and antimony
increase in pads, that DTSC consult with the appropriate
state agency to determine if there is a need to try to
limit those levels. This type of study will allow DTSC to
keep abreast of the new materials in the brake pads and try
to prevent other public health and environmental issues.
This coupled with the requirement on brake pad
manufacturers to follow a process to evaluate alternatives
to copper in brake pads to ensure the alternatives to
copper do not have the same problematic characteristics.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
New fee revenues ($7,000)
($14,000) Special*
DTSC - developing $35 $260
$850Special*
criteria, establishing
baseline data
SWRCB - reporting up to
$250 Special*
Office of Environmental up to
$160Special*
Health Hazard
Assessment - reporting
Grants for water $6,700
$12,740 Special*
quality improvement
* Brake Friction Materials Water Pollution Fund
(new special fund)
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According to the Senate Appropriations Committee analysis,
some of the expenditures under this bill will occur before
the fee is enacted. Those costs can be covered by the
existing balance in the Hazardous Waste Control Account,
until sufficient fee revenues are generated to repay the
fund.
SUPPORT : (Verified 5/28/09)
City of San Diego (co-source)
Sustainable Conservation on behalf of the Brake Pad
Partnership (co-source)
Akebono Brake Corporation
Alameda County Board of Supervisors
Alameda Countywide Clean Water Program
Bay Area Stormwater Management Agencies Association
California Association of Sanitation Agencies
California Council for Environmental and Economic Balance
California Product Stewardship Council
California State Association of Counties
California Stormwater Quality Association
Calleguas Creek Watershed Management Plan
Cities of Arcadia, Bell, Bell Gardens, Camarillo, Cerritos,
Clayton, Concord, Cupertino, Downey, Laguna Woods,
Lakewood, Long Beach Lynwood, Monte Sereno, Montebello,
Norwalk, Ojai, Palo Alto, Port Hueneme, San Jose, San
Pablo, Signal Hill, Simi Valley, Thousand Oaks, Ventura,
and Whittier
City and County of San Francisco
City of West Covina Public Works Department
City/County Associations of Governments of San Mateo County
Clean South Bay
Clean Water Action
Clear Water Consultants
Coalition for Practical Regulation
Coastkeeper Alliance
Contra Costa Clean Water Program
Contra Costa County Watershed Program
County Sanitation Districts of LA County (if amended)
Environmental Entrepreneurs (E2)
Environmental Health Coalition
Heal the Bay
Industrial Environmental Association
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League of California Cities
Natural Resources Defense Council
Paula Daniels, Commissioner, City of Los Angeles Board of
Public Works
Port of San Diego
San Diego Coastkeeper
San Francisco Baykeeper
Santa Clara Valley Urban Runoff Pollution Prevention
Program
Save the Bay
Sierra Club California
Supervisor Susan A. Bonilla, Chair, Contra Costa County
Board of Supervisors
TDC Environmental
United States Navy
Ventura County Board of Supervisors
Ventura Countywide Stormwater Quality Management Program
West Valley Clean Water Program
OPPOSITION : (Verified 5/28/09)
Alliance of Automobile Manufacturers
Heavy Duty Manufacturers Association
ARGUMENTS IN SUPPORT : According to the author's office,
elevated copper levels occur in urban watersheds across
California. Dissolved copper is toxic to phytoplankton
(the base of the aquatic food chain). It also impairs the
ability of salmon to avoid predators and deters them from
returning to their home streams to spawn. Scientific
studies have shown that a major source of copper in highly
urbanized watersheds is material worn off vehicle brake
pads. It is estimated that about one-half of the copper
found in run-off is attributed to brake pads.
According to one of the bill's sponsors, this bill is a
product of a collaborative, consensus-based approach to
crafting a workable balance between necessary innovations,
long manufacturing timelines, and the stringent water
quality compliance deadlines facing California. Details of
these studies can be found at www.suscon.org/brakepad.
In response to the arguments in opposition (paragraph 3,
lines 1-5), the author's office indicates that the May 20,
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2009 amendments clearly specify and prioritize how the fee
will be used.
ARGUMENTS IN OPPOSITION : The Heavy Duty Manufacturers
Association (HDMA) and the Heavy Duty Brake Manufacturing
Council (HDBMC), a technical body of HDMA, state their
opposition to this bill as follows:
"SB 346 may jeopardize HDBMC members' abilities to comply
with the proposed, anticipated, but as yet unpublished
federal stopping distance standards. A vast majority of
research and development resources (equipment, time, and
money) have already been dedicated to make the necessary
tests and changes to brake formulations in order to meet
this anticipated but yet unpublished federal rule. These
tests, which typically take eight years to undertake,
also include application characteristics that involve
noise, wear, vibration and other customer-specific
requirements. Changes to brake formulations to meet
potential requirements of state legislation will set the
industry back as much as eight years in testing alone.
"The bill will lead to unintended consequences by forcing
companies to re-engineer their product lines at
tremendous costs under an already dire economic climate.
It will impact the current design and build of vehicles
now in production which takes several years of research
and development. The legislation does not consider the
impact on whether or not secondary brake system
components will be affected by reformulated brake pads.
Further, SB 346 does not differentiate among light duty
and heavy duty brake parts, which differ in their
performance, design, and complexity.
"In reference to the fees provided in SB 346, the measure
remains ambiguous on its intended purpose or at what
point in the supply chain will they be collected. HDMA
strongly opposes using these fees for environmental
mitigation efforts not associated with brake copper
contents. The bill also does not specify as to what
point in the supply chain the fees will be collected. SB
346 does not determine whether the fees shall be
collected at the automotive dealership level, at the
repair shop, at the manufacturer level, or at the point
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of sale between a consumer and an auto supply store.
Each of these levels has unique and very burdensome
requirements which the bill does not take into account.
We believe that the infrastructure to properly collect
and report these fees at the manufacturer level alone
currently does not exist and would not be available by
the 2011 deadline."
TSM:mw 6/2/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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