BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 524
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          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     SB 524 (Correa) - As Amended:  July 7, 2009 

          Policy Committee:                              Environmental  
          Safety       Vote:                            5-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires establishment of a working group to consider  
          current regulation of auto shredder waste and potential changes  
          to that regulation.  Specifically, this bill:

             1)   Requires the Secretary for Environmental Protection, on  
               or before February 1, 2010, to establish an auto shredder  
               residue working group, comprising representatives of the  
               Integrated Waste Management Board (IWMB), the Department of  
               Toxic Substances Control (DTSC), the Air Resources Board  
               (ARB), the State Water Resources Control Board (SWRCB),  
               members of the auto shredder industry, landfill operators,  
               members of the public health and environmental communities,  
               and other interested stakeholders.

             2)   Directs the working group to consider current regulation  
               of auto shredder residue and potential changes to that  
               regulation.

             3)   Requires the secretary to report to the Legislature on  
               the findings and recommendations of the working group by  
               December 1, 2010.

             4)   Provides that the requirement to establish the working  
               group exists only if the IWMB enters into an agreement by  
               which one or more of the nongovernmental members of the  
               working group agree to reimburse the state costs associated  
               with the working group.

             5)   Sunsets on July 1, 2011.









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           FISCAL EFFECT  

          Negligible state costs as any such costs will be reimbursed by  
          private members of the working group.

           COMMENTS  

           1)Rationale  .  The author claims that DTSC has attempted to alter  
            its decades-old regulatory treatment of auto shredder waste  
            without adequate justification, evidence or consultation with  
            affected parties.  The author contends that, because a change  
            in the regulatory status of auto shredder residue will affect  
            various state regulatory agencies and stakeholders, there  
            needs to be a joint review before DTSC change the way it  
            regulates this material.

           2)Background  .  

              a)   Auto shredder waste  is a byproduct of automobile and  
               household appliance recycling and disposal.  Auto shredder  
               waste is what remains of vehicles and appliances after the  
               recyclable metals have been removed.  Such waste primarily  
               is comprised of nonmetallic materials, such as glass,  
               fiber, rubber, automobile fluids, dirt and plastics.  Auto  
               shredder waste oftentimes contains lead, cadmium, copper,  
               and zinc at levels above the state's regulatory thresholds.  
                Shredder waste has been found to contain polychlorinated  
               biphenyls (PCBs) at concentrations which occasionally  
               exceed the federal and State regulatory threshold of 50  
               parts per million.  For these reasons, since 1984, DTSC  
               (and its predecessor agency, the Department of Health  
               Services (DHS)) has treated auto shredder waste as a  
               hazardous waste subject to California's Hazardous Waste  
               Control Law and regulations. (Prior to 1984, auto shredder  
               waste was not considered hazardous and, generally, was  
               disposed of in landfills.)
             
                Between 1986 and 1992, DHS issued conditional nonhazardous  
               waste classifications to seven auto shredder facilities  
               that had successfully treated their auto shredder waste to  
               nonhazardous levels using similar metals fixation treatment  
               technologies.  Auto shredder waste at these facilities was  
               no longer regulated as a hazardous waste.  

              b)   Alternative daily cover  (ADC) refers to material, aside  








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               from dirt and other earthen material, used to cover the  
               surface of an active municipal solid waste landfill at the  
               end of each operating day.  ADC helps control vectors,  
               fires, odors, blowing litter, and scavenging.  Currently,  
               IWMB has approved 11 ADC material types, including treated  
               auto shredder waste.

              c)   DTSC Recommends Rescinding Nonhazardous Status of Auto  
               Shredder Waste.   In early 2000, DTSC initiated a  
               comprehensive review of its past policies to ensure that  
               they conform to current laws, regulations and science.  As  
               part of that review, DTSC conducted on-site surveys at  
               several auto shredder facilities to test for levels of  
               hazardous materials.  Following the review, DTSC released a  
               draft report that recommended the following changes to  
               regulatory treatment of auto shredder waste:

               i)     Rescind existing DTSC auto shredder waste policy and  
                 procedures.

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

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

               On September 29, 2008, DTSC sent a letter to the shredders  
               notifying them of the requirement that all auto shredders  
               in California register as hazardous waste generators.  With  
               auto shredder waste categorized as a hazardous waste,  
               landfill facilities could no longer use it as ADC. 
            
           3)Arguments in Support.   Supporters, including California  
            Chapters of the Institute of Scrap Recycling Industries  
            (sponsor) and the League of California Cities, argue that DTSC  
            has the initial burden of proof to demonstrate the need to  
            alter the regulatory status quo regarding auto shredder waste.  
             Proponents contend DTSC is relying on inadequate data to  
            justify substantial changes to longstanding and effective  
            policy.  In addition, proponents claim that DTSC has failed to  
            consult with stakeholders affected by the regulatory change,  
            including industry and other state agencies, and that DTSC has  
            failed to complete legally required review of the  
            environmental effects of its proposed regulatory changes.   








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            Finally, proponents note that nothing in the latest version of  
            this bill prevents DTSC from regulating auto shredder waste  
            pursuant to its existing authority.

           4)Arguments in Opposition  .  The Sierra Club of California is the  
            sole registered opposition to this bill.  According to the  
            club, the multiparty working group required by this bill is  
            unnecessary because multimedia coordination among various  
            regulators already takes place.  The club claims this bill  
            indicates that the Legislature will, at the behest of  
            polluters, interfere in DTSC's science-driven waste  
            classification process.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081