BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 524
                                                                  Page 1


          SENATE THIRD READING
          SB 524 (Correa)
          As Amended  July 7, 2009
          Majority vote 

           SENATE VOTE  :39-0  
           
           ENVIRONMENTAL SAFETY          5-117-0                
          APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Miller, Davis,   |Ayes:|De Leon, Conway, Ammiano, |
          |     |Ruskin, Smyth             |     |                          |
          |     |                          |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis,                    |
          |     |                          |     |Fuentes, Hall, Harkey,    |
          |     |                          |     |Miller,                   |
          |     |                          |     |Nielsen, John A. Perez,   |
          |     |                          |     |Skinner,                  |
          |     |                          |     |Solorio, Audra            |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Hill                      |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Feuer                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Requires the Secretary for Environmental Protection to  
          establish a working group to consider the 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, comprised of 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 practices  
               and regulation of auto shredder residue and potential  








                                                                  SB 524
                                                                  Page 2


               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.

             6)   Makes legislative findings.

           EXISTING LAW  :

          1)Pursuant to the California Integrated Waste Management Act of  
            1989 (Act), requires the IWMB to evaluate the use of recycling  
            residue for use as solid waste landfill cover material 

          or for use as extenders for currently used cover materials.   
          Excludes from the definition of "solid waste" hazardous waste  
          and thus prohibits its disposal in a solid waste landfill.

          2)Pursuant to the California Code of Regulations, authorizes the  
            use of auto shredder residue as ADC for solid waste landfills  
            if treated and limited as specified.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill would incur negligible state costs as any  
          costs will be reimbursed by private members of the working  
          group.

           COMMENTS  :

          Purpose.  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 changes the way it regulates this  








                                                                  SB 524
                                                                  Page 3


          material.

          Shredder waste.  The shredding of automobiles and major  
          household appliances produces a waste consisting primarily of  
          non-metallic materials, such as glass, fiber, rubber, automobile  
          fluids, dirt and plastics, that remain after the recyclable  
          metals have been removed.  The waste produced at metal shredding  
          facilities is referred to as "automobile shredder waste,"  
          "automobile shredder residue," "shredder waste" or "fluff."

          In California, shredder waste has been found to contain lead,  
          cadmium, copper, zinc and polychlorinated biphenyls (PCBs) at  
          levels above the state's regulatory thresholds.  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 metals fixation treatment technologies.  Auto  
          shredder waste at these facilities was no longer regulated as a  
          hazardous waste and was allowed to be used as alternative daily  
          cover (ADC).  ADC refers to material, aside 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  
          to help control vectors, fires, odors, blowing litter, and  
          scavenging.  

          Rescinding nonhazardous status  .   In 2000, DTSC initiated a  
          comprehensive review of its past policies to ensure that they  
          conform to current laws, regulations and science and recommended  
          the following changes to auto shredder waste regulation:   
          rescind existing DTSC 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; 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  








                                                                  SB 524
                                                                  Page 4


          California register as hazardous waste generators.  With auto  
          shredder 

          waste categorized as a hazardous waste, landfill facilities  
          could no longer use it as ADC.  According to an email from DTSC  
          to the shredder industry, it seems DTSC has extended the  
          deadline for rescinding shredder waste policy to September 2009,  
          to provide time to negotiate agreements with each company that  
          include enforceable schedules.
           

          Analysis Prepared by  :    Shannon McKinney / E.S. & T.M. / (916)  
          319-3965                                               


                                                                 FN:   
          0002614