BILL ANALYSIS                                                                                                                                                                                                    



                                                                SB 524
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    SB 524
           AUTHOR:     Correa
           AMENDED:    March 31, 2009 
           FISCAL:     Yes               HEARING DATE:     April 27, 2009
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    AUTO SHEDDER RESIDUE

            SUMMARY  :    
           
            Existing law  :

           1) Pursuant to the Health and Safety Code, defines "hazardous  
              waste" as a waste that meets any of the criteria for the  
              identification of a hazardous waste adopted by the  
              Department of Toxic Substances Control (DTSC).

           2) Pursuant to the California Integrated Waste Management Act  
              of 1989, requires the Integrated Waste Management Board  
              (IWMB) to evaluate the use of recycling residue for use as  
              solid waste landfill cover materials or for use as  
              extenders for currently used cover materials.

           3) Pursuant to the Act, excludes from the definition of "solid  
              waste", hazardous waste and thus prohibits its disposal in  
              a solid waste landfill.

           4) Pursuant to Title 27, Division 2, Subdivision 1, Chapter 3,  
              Subchapter 4, Article 2, Section 20690 of the California  
              Code of Regulations, authorizes the use of auto shredder  
              residue as alternative daily cover (ADC) for solid waste  
              landfills if treated as specified and is limited to a  
              minimum compacted thickness of six inches and average  
              compacted thickness of less than 24 inches.

            This bill  :  

           1) Makes extensive findings and declaration relating to auto  









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              shredder residue or "fluff".

           2) Requires, on or before February 1, 2010, the California  
              Environmental Protection Agency (CalEPA) to establish an  
              auto shredder residue working group, comprised of  
              representatives of IWMB, DTSC, the Air Resources Board  
              (ARB), the State Water Resources Control Board (SWRCB),  
              members of the auto shredder industry, and other interested  
              stakeholders.

           3) Requires the working group to do all of the following:

              a)    Review and evaluate the existing practice of using  
                 treated auto shredder residue as ADC, including  
                 identifying the beneficial economic and environmental  
                 aspects of that use.

              b)    Determine the environmental and economic effects of  
                 DTSC's proposed revocation of the current regulatory  
                 classification of treated auto shredder residue and  
                 resulting prohibitions on its use as ADC.

              c)    Determine whether the current regulatory  
                 classification of treated auto shredder residue poses a  
                 significant threat to human health or the environment.

              d)    Recommend changes to statute, regulation, or agency  
                 practice, if any, based on the results of the working  
                 group's analysis.

           4) Requires, on or before December 1, 2010, CalEPA to report  
              to the Legislature on the findings and recommendations of  
              the auto shredder residue working group.

           5) Prohibits DTSC from altering the current regulatory status  
              quo authorizing the use of auto shredder residue as ADC  
              pending the issuance of the report required above. 

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, for the past two  
              decades, DTSC and its predecessor agency the Department of  
              Health Services (DHS) have allowed treated auto shredder  









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              residue to be managed as a nonhazardous waste in  
              California, under certain prescribed conditions.  On  
              September 29, 2008, DTSC sent a letter to the shredders  
              notifying them that they were repealing the shredders'  
              declassification letters and would require all shredders in  
              California to register as hazardous waste generators.   
              According to the author, this determination was made  
              without adequate justification or evidence supporting this  
              dramatic change in DTSC's 20 plus year policy.  Since a  
              change in the disposal of auto shredder residue will affect  
              the IWMB, SWRCB, and the ARB regulations, it is imperative  
              that a study be conducted prior to any revocation of the  
              auto shredders' declassification letters.

            2) Background: How could something called "fluff" be  
              hazardous?  The shredding of automobiles and major  
              household appliances produces a waste consisting of  
              primarily non-metallic materials that remain after the  
              recyclable metals have been removed.  In California, the  
              waste produced at metal shredding facilities large enough  
              to shred an automobile has been referred to as "automobile  
              shredder waste", "auto shedder residue" or affectionately,  
              "fluff" as these facilities shred a variety of recyclable  
              metals.

              According to DTSC, since 1984 "fluff" has been regulated as  
              a non-Resource Conservation and Recovery Act (RCRA)  
              hazardous waste in California due to the presence of lead,  
              cadmium, copper, and zinc at levels above the State's  
              regulatory thresholds for those metals.  Shredder waste has  
              been found to contain polychlorinated biphenyls (PCBs) at  
              concentrations which occasionally exceed the federal and  
              State regulatory threshold of 50 ppm. Shredder waste is  
              both a hazardous waste and a recyclable material subject to  
              California's Hazardous Waste Control Law and the  
              regulations that apply to hazardous wastes.

              Between 1986 and 1992, California's DHS and subsequently  
              DTSC, issued conditional nonhazardous waste classifications  
              to seven shredder facilities in California who successfully  
              treated their shredder waste to nonhazardous levels using  
              similar metals fixation treatment technologies.  DHS also  
              determined that if the treatment of shredder waste was  









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              "in-line" with the shredding operation, authorization for  
              hazardous waste treatment was not required. 

            3)Draft Report from DTSC; "California's Automobile Shredder  
             Waste Initiative"  .  This report includes findings from the  
             Initiative that was financed with grant funds provided by  
             the United States Environmental Protection Agency through  
             the Resource Conservation and Recovery Act.  The goals of  
             the Initiative were three fold: evaluate the adequacy of  
             DTSC's automobile shredder waste policy; affirm the  
             regulatory status of the automobile shredders operating in  
             California; and ensure compliance by the automobile  
             shredders with the existing statutes and regulations.  In  
             early 2000, DTSC initiated a comprehensive review of its  
             past policies to ensure that the policies conform to current  
             laws and regulations, and are still valid considering  
             current scientific knowledge.  One of the policies that came  
             under review was Policy and Procedure 88-6 entitled "Auto  
             Shredder Waste Policy and Procedures" and addressing DTSC's  
             regulation of both untreated and treated shredder waste.  As  
             part of reviewing the subject policy and meeting the other  
             goals of the Initiative, it was determined that on-site  
             surveys would provide the most up-to-date information  
             regarding the current status of California's shredder  
             industry.  The draft report recommended that DTSC:

                  Rescind DTSC Policy and Procedure 88-6 entitled "Auto  
                Shredder Waste Policy and Procedures",

                  Require facilities that wish to continue treating  
                their shredder waste on site to obtain the appropriate  
                authorization within a specified period of time; and

                  Rescind all previously issued nonhazardous waste  
                classifications for treated shredder waste.

             On September 29, 2008, DTSC sent a letter to the shredders  
             notifying them that the Department was repealing the  
             shredders' declassification letters and would require all  
             shredders in California to register as hazardous waste  
             generators.

            4)Policy Considerations  .  The role of DTSC is to ensure that  









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             hazardous wastes are accurately identified and appropriately  
             managed in California.  It is imperative that hazardous  
             wastes are not disposed of in a solid waste landfill.  
             However, there are some concerns that the proposed action by  
             DTSC could seriously disrupt current recycling, ADC, and  
             disposal practices and it would be beneficial to examine  
             potential changes.
              
              It is also important to note, that the automobiles are being  
             built differently today than twenty years ago, thus what is  
             found in "fluff" twenty years is also different.  This,  
             coupled with the fact that the exemption has been in place  
             for many years, points to the importance of DTSC and the  
             auto shedder industry staying abreast of the changing  
             composition of automobiles to help to reduce the amount of  
             hazardous materials that actually end up in the "fluff".

            5)Amendments Needed  .  To address the issues raised above,  
             amendments are needed to clarify and focus the bill.   
             Specifically: 

              a)   Remove the statements in the bill that pre-dispose the  
                outcome of the work of the stakeholder group and the  
                report to the Legislature. 

              b)   Remove section (d) on page 4 that prohibits DTSC from  
                taking action on this issue until the working group has  
                issued its report and replace with language that states  
                DTSC shall not alter its regulatory status without  
                considering input from the working group. 

              c)   Include language to specify the working group should  
                also identify constituents in "fluff" that could cause  
                environmental or public health threats.

              d)   Include language to require the working group to  
                identify approaches to work with auto manufacturers to  
                reduce hazardous materials in automobiles.

            SOURCE  :        Institute of Scrap Recycling Industries  

           SUPPORT  :       Republic Services, Inc.
           SA Recycling  









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           OPPOSITION :    None on file