BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 524|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 524
          Author:   Correa (D)
          Amended:  5/28/09
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  7-0, 4/27/09
          AYES:  Simitian, Runner, Ashburn, Corbett, Hancock,  
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Solid waste:  auto shredder residue

           SOURCE  :     Institute of Scrap Recycling Industries


           DIGEST  :    This bill requires the Secretary for  
          Environmental Protection, on or before February 1, 2010,  
          subject to the availability of funding, to establish an  
          auto shredder residue working group, comprised of  
          representatives of the California Integrated Waste  
          Management Board, the Department of Toxic Substances  
          Control, the Air Resources Board, the State Water Resources  
          Control Board, members of the auto shredder industry,  
          landfill operators, and other interested stakeholders.   
          This bill requires the working group to review and evaluate  
          the existing practice of using treated auto shredder  
          residue as alternative daily cover, as specified.  This  
          bill makes other changes to existing law relating to auto  
          shredder residue.

                                                           CONTINUED





                                                                SB 524
                                                                Page  
          2

           ANALYSIS  :    

          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 (Act), requires the California Integrated  
             Waste Management Board (CIWMB) 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 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 shredder residue or "fluff".

          2. Requires, on or before February 1, 2010, and subject to  
             available funding (see #6 below) the California  
             Environmental Protection Agency (CalEPA) to establish an  
             auto shredder residue working group, comprised of  
             representatives of CIWMB, DTSC, the Air Resources Board  
             (ARB), the State Water Resources Control Board (SWRCB),  
             members of the auto shredder industry, landfill  
             operators, and other interested stakeholders.

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







                                                                SB 524
                                                                Page  
          3


             A.    Review and evaluate the existing practice of using  
                treated auto shredder residue as alternative daily  
                cover.

             B.    Determine the effects of DTSC's proposed  
                revocation of the current regulatory classification  
                of treated auto shredder residue and resulting  
                prohibitions on its use as alternative daily cover.

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

             D.    Identify the constituents in auto shredder residue  
                that could pose health and safety or environmental  
                problems when used as alternative daily cover in  
                accordance with applicable regulations.

             E.    Recommend approaches to work with the auto  
                industry to manufacture vehicles that produce less  
                hazardous waste at end-of-life.  

             F.    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 of auto shredder residue without first  
             considering the factors contained in this bill.  

          6. Provides the Secretary for Environmental Protection  
             shall not be required to establish an auto shredder  
             residue working group or submit the report to the  
             Legislature unless the CIWMB has entered into a written  
             agreement with one or more non-governmental members of  
             the working group to reimburse the Office of the  
             Secretary for Environmental Protection, the CIWMB, the  
             DTSC, the ARB, and the SWRCB for their costs in  







                                                                SB 524
                                                                Page  
          4

             complying with the provisions of this bill.
           
          Comments  

          According to the author's office, for the past two decades,  
          DTSC and its predecessor agency, the Department of Health  
          Services (DHS), have allowed treated auto shredder 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's  
          office, 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 CIWMB, SWRCB,  
          and ARB regulations, it is imperative that a study be  
          conducted prior to any revocation of the auto shredders'  
          declassification letters.

          According to DTSC, since 1984 "fluff" has been regulated as  
          a non-Resource Conservation and Recovery Act 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 at concentrations  
          which occasionally exceed the federal and state regulatory  
          threshold of 50 parts per million.  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, 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  
          "in-line" with the shredding operation, authorization for  
          hazardous waste treatment was not required. 

           Draft Report from DTSC:  "California's Automobile Shredder  
          Waste Initiative"  .  This report includes findings from the  







                                                                SB 524
                                                                Page  
          5

          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 threefold:  (1) evaluate the adequacy  
          of DTSC's automobile shredder waste policy, (2) affirm the  
          regulatory status of the automobile shredders operating in  
          California, and (3) 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:

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

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

          3. 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 DTSC was repealing the shredders'  
          declassification letters and would require all shredders in  
          California to register as hazardous waste generators.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/28/09)

          Institute of Scrap Recycling Industries (source)
          Republic Services, Inc.







                                                                SB 524
                                                                Page  
          6

          SA Recycling
          

          TSM:mw  5/28/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****