BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 712
                                                                  Page  1

          Date of Hearing:   June 17, 2014

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                    SB 712 (Lara) - As Amended:  January 17, 2014

           SENATE VOTE  :   33-0
           
          SUBJECT  :   Hazardous waste facility:  permitting:  interim  
          status.

           SUMMARY  :   Requires the Department of Toxic Substance Control  
          (DTSC) to take specific action on hazardous waste treatment  
          facilities operating under an interim status permit.    
          Specifically,  this bill  :   

          1)Requires DTSC to take final action prior to December 31, 2015,  
            on a permit renewal
            application for a hazardous waste treatment facility operating  
            under an interim permit issued on or prior to January 1, 1986.

          2)Provides that any interim permit status granted for a  
            hazardous waste facility shall terminate five years from the  
            date on which the status was granted.

          3)Allows DTSC to temporarily suspend the operation of a facility  
            operating under an interim permit in order to protect public  
            health and safety or the environment.

           EXISTING FEDERAL LAW  :

          1)Requires owners and operators of facilities that treat, store,  
            or dispose of hazardous waste to obtain an operating permit  
            pursuant to the Resource Conservation and Recovery Act (RCRA).

          2)Grants "interim status" to any facility in existence on  
            November 19, 1980, or on the effective date of a statutory or  
            regulatory change that subjected the facility to the  
            permitting requirement.

          3)Authorizes DTSC to be the lead agency for enforcing the  
            provisions of RCRA.  As an authorized state, RCRA requires  
            California's regulations must be consistent with, and at least  
            as strict as, the federal regulations.









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           EXISTING STATE LAW  :  

           1)Pursuant to the Hazardous Waste Control Act, Chapter 6.5 of  
            Health and Safety Code (HSC), requires any person who stores,  
            treats, or disposes of hazardous waste to obtain a hazardous  
            waste facility permit from DTSC.  

          2)Provides that a hazardous waste facility which was in  
            existence on November 19, 1980, or which was in existence on  
            the effective date of any statute or regulation which  
            subjected that facility to hazardous waste facilities permit  
            requirement, pending the review and decision of DTSC on the  
            permit application, may be granted interim status by DTSC if  
            the person has made application for a permit (HSC Section  
            25200.5.)

           FISCAL EFFECT  :   Not Known

           COMMENTS :   

           Need for the bill  :  According to the author of AB 712, "The  
          Exide Technologies battery recycling facility in Vernon, CA,  
          recycles lead from used automotive batteries and has a long  
          history of hazardous waste law violations.  Exide is a Tier 1  
          facility requiring a Full Permit from DTSC in accordance with  
          RCRA?  Exide is currently operating under an interim permit that  
          was issued in 1981, and has never been issued a final permit by  
          DTSC.  It is the only facility, out of 117 facilities permitted  
          by DTSC, subject to RCRA, which still has an interim status  
          permit. "

           Background :  Existing state law requires facilities handling  
          hazardous waste to obtain a permit from DTSC.  In addition, it  
          requires an owner/operator of a facility intending to renew the  
          facility's permit to submit a completed permit renewal  
          application to DTSC prior to the expiration of the permit.  
          Existing state law also allows a hazardous waste facility to  
          continue to operate under a grant of interim status pending a  
          DTSC review and consideration of a permit application.
          
          United States Environmental Protection Agency (US EPA)  
          authorized states to issue permits to all hazardous waste  
          management facilities before the RCRA Subtitle C program became  
          effective in November 1980. In RCRA �3005(e), Congress  
          established provisions to treat certain facilities as though  








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          they had been issued a permit until final administrative action  
          was taken on their permit applications. This statutory grant of  
          a permit is referred to as "interim status." Interim status  
          regulations are found in Part 270, Subpart G, and Part 265. 

           Exide technologies plant  :  According to the DTSC, the Exide  
          Technologies, Vernon, California, operation, located at 2700  
          South Indiana Street in Vernon, is an existing secondary lead  
          smelting facility which recycles lead. The facility recovers and  
          reprocesses lead from used automotive batteries and other  
          sources.  About 85 percent of the lead recycled at the facility  
          is derived from used automobile batteries, with the remaining 15  
          percent consisting of other batteries and scrap lead.  About 22  
          million automotive batteries are processed annually at the  
          facility. As a result, Exide conducts the following major  
          activities on site: 1) storing lead acid batteries, lead-bearing  
          materials, and hazardous waste generated as a result of the  
          facility's operation, 2) breaking spent batteries and separating  
          the battery components, 3) conducting smelting to recover lead  
          from spent lead acid batteries, and, 4) operating wastewater  
          treatment to neutralize sulfuric acid and treat both process  
          water and stormwater.
          
          The Exide facility operates under RCRA as an interim status  
          treatment and storage facility. A Part A Application was  
          originally filed on August 8, 1980, and interim status was  
          granted by the former California Department of Health Services  
          (currently the DTSC), and became effective on December 12, 1981.

          In March 2013, the South Coast Air Quality Management District  
          (SCAQMD) found that the Exide Plant's emissions contained high  
          levels of arsenic, which contribute to an increased cancer risk  
          to those at and around the facilities in the surrounding  
          communities including Maywood, Huntington Park, Commerce, and  
          Boyle Heights.  The SCAQMD announced that as a result of its  
          findings, Exide would be required to prepare a risk reduction  
          plan to reduce its harmful emissions, and to hold meetings in  
          the affected communities notifying them of the risks they had  
          been exposed to.

          DTSC ordered that operations at the plant be suspended, citing  
          unsafe conditions related to deteriorated systems for the  
          handling and disposal of contaminated wastewater. As a result,  
          operations at the plant where temporarily suspended (April 2013)  
          by DTSC; however, Exide appealed the action, and the plant was  








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          allowed to resume operations.

          DTSC then entered into an agreement with Exide that required  
          Exide to spend $7.7 million for a new water runoff system and  
          improvements to reduce arsenic emissions.  In December 2013, the  
          DTSC released reports showing that high lead and arsenic levels  
          had been detected in several residential areas around the plant.

           Technical amendment  :
          
          1)The current provisions of this bill provide for a temporary  
            suspension of an interim status permit if action is necessary  
            to mitigate a risk to the public health or safety or the  
            environment.  This provision is being added as Section  
            25186.2.5 of the Public Resources Code.  The author may wish  
            to place this provision in the Health and Safety Code where  
            the facility permitting is currently found.

            Page 3, line 18: delete: "Public Resources Code", and insert:  
            "  Health and Safety Code  ".

          2)The current provisions of this bill deem interim status  
            permits to be terminated when DTSC takes final action on the  
            application for a hazardous waste facilities permit within 5  
            years of the permit application.  The "final action" is not  
            specially defined but the author may wish to specify that the  
            deadline be linked to the "final permit decision" to be  
            consistent with the DTSC current regulations (22 CCR �  
            66271.14). 

            Page 4, lines 5, 14, 18 and 23: strike "takes final action"  
            and insert: "  issues a final permit decision".
             
          3)The current provisions of SB 712 provide that an interim  
            status permit is revoked if DTSC fails to take action by  
            December 31, 2015.  The bill fails to provide for the time  
            delay possibly caused by an appeal of the final permit  
            decision.  The author may wish to provide that an interim  
            permit is allowed to continue in the event that the permit is  
            approved by DTSC, but an appeal delays the operative date of  
            the permit past the December 31, 2015 deadline.

            Page 4, line 15, insert:

             If any person petitions the department for review of a final  








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            permit decision to approve a hazardous waste facilities permit  
            for a facility currently operating under interim status, then  
            interim status shall not terminate until final administrative  
            disposition of the petition(s), even if such final  
            administrative disposition occurs after December 31, 2015.  

           


          Related Legislation  :

          SB 812 (De Le�n). Establishes deadlines for the submission of  
          applications for hazardous waste facility permits, as well as  
          deadlines for the processing of such applications. This bill is  
          scheduled to be heard in the Assembly Environmental Safety and  
          Toxic Materials Committee on June 17, 2014.

          AB 1329 (V. Manuel P�rez, Chapter 598, Status of 2013).   
          Requires the DTSC to prioritize enforcement activities in  
          environmental justice concerns in communities as identified by  
          the California Environmental Protection Agency (Cal/EPA).

          AB 1330 (John A. P�rez, 2013).  Increases the coordination and  
          enforcement of environmental protection laws by DTSC and Cal/EPA  
          and increases funding for environmental improvements,  
          specifically in environmental justice communities.  AB 1330 is  
          awaiting action on the Senate floor.

           REGISTERED SUPPORT / OPPOSITION  :

           Support  :  
           
          California Environmental Justice Alliance
          City of Bell, Councilmember Alicia Romero
          City of Bell, Councilmember Nestor Enrique Valencia
          City of Bell, Mayor Violeta Alvarez
          City of Bell, Vice Mayor Ana Maria Quintana
          City of Los Angeles
          Coalition for Clean Air
          Florence Firestone Merchants Association
          Lynwood Councilmember Jos� Luis Solache
          Lynwood Mayor Aide Castro
          Sierra Club California
           
            Opposition 








                                                                 SB 712
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          None received.

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