BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2457
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2457 (Valadao) - As Amended:  May 1, 2012 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 9-0

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

           SUMMARY  

          This bill requires the Department of Recycling and Resources 
          Recovery (Cal Recycle) to convene a working group of specified 
          state agencies and stakeholders to determine whether the 
          disposal of end-of-life vehicles and appliances is being managed 
          legally. 

           FISCAL EFFECT  

          One-time costs to Cal Recycle and, to a lesser extent, the 
          Department of Toxic Substances Control (DTSC) and potentially 
          other entities with the Natural Resources Agency and the 
          Environmental Protection Agency, in the tens of thousands of 
          dollars (special fund).

           COMMENTS  

           1)Rationale  .  The author reports of California operations, 
            colloquially known as "loggers," that violate state law by 
            compacting old appliances and vehicles into "logs" without 
            first stripping the appliances and vehicles of hazardous 
            materials, thereby avoiding substantial costs.   The author 
            further reports these loggers then export their toxic logs 
            overseas, sometimes in violation of the laws of the receiving 
            country.  The author contends loggers not only violate state 
            law, they also undercut legitimate California shredding 
            operations, which, in following the law, incur significant 
            costs and then find it difficult to compete against these 
            rogue, cut-rate shredders.  

            The author intends this bill to determine the extent of 








                                                                  AB 2457
                                                                  Page  2

            logging operations so the state can develop an appropriate 
            enforcement response.

           2)Background  .  End-of-life automobiles and appliances are 
            commonly shredded, which involves a mechanical process to rip 
            and grind materials into fist-sized pieces.  Current law 
            requires hazardous materials to be stripped from this scrap 
            before shredding.  DTSC and news reports indicate that, in 
            some instances, shredders do not remove toxic materials before 
            shredding or export.

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