BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 712
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          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 712 (Lara) - As Amended:  June 19, 2014 

          Policy Committee:                             Environmental  
          Safety and Toxic Materials                    Vote: 7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes deadlines for the Department of Toxic  
          Substance Control (DTSC) to issue final decisions on a hazardous  
          waste facility operating under an interim status permit.  
          Specifically, this bill:

          1)Requires DTSC to issue a final permit decision 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)Terminates any interim permit status granted for a hazardous  
            waste facility 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.

           FISCAL EFFECT  

          1)No additional costs in 2014-15 and 2015-16 for DTSC to permit  
            one facility operating on an interim status permit (Exide  
            Technologies in Vernon, CA). 

          2)Unknown, likely minor, costs for permitting future facilities  
            operating on interim status permits (special fund).

           COMMENTS  

           1)Purpose.   According to the author, the Exide Technologies  








                                                                  SB 712
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            battery recycling facility in Vernon recycles lead from used  
            automotive batteries and has a long history of hazardous waste  
            violations.  Exide is currently operating under an interim  
            permit issued in 1981.  It is the only facility of the 117  
            facilities permitted by DTSC subject to the federal Resource  
            Conservation and Recovery Act (RCRA).  

            According to the author, this bill will require hazardous  
            waste facilities that have been operating under an interim  
            permit from DTSC for an extended period of time to achieve  
            compliance with federal and state hazardous waste laws.  This  
            bill will also limit the amount of time future facilities can  
            operate under an interim permit to five years.



           2)Background.   The California Hazardous Waste Control Act  
            requires facilities handling hazardous waste to obtain a  
            permit from DTSC.  In addition, the Act 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. A hazardous waste  
            facility may continue to operate under a grant of interim  
            status pending a DTSC review and consideration of a permit  
            application.
          
            The United States Environmental Protection Agency (US EPA)  
            authorized states to issue permits to all hazardous waste  
            management facilities before the RCRA program became effective  
            in November 1980.  RCRA establishes provisions to treat  
            certain facilities as though 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."

           3)Exide Technologies Plant.   According to the DTSC, the Exide  
            Technologies operation 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% of the lead recycled at the facility is  
            derived from used automobile batteries, with the remaining 15%  
            consisting of other batteries and scrap lead.  About 22  
            million automotive batteries are processed annually at the  
            facility. 









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            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 were temporarily suspended (April  
            2013) by DTSC.  Exide, however, appealed the action, and the  
            plant was 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.

           4)Related Legislation.   SB 812 (De Le�n) modifies the permitting  
            process for hazardous waste facilities and establishes permit  
            application and processing deadlines.  This bill is scheduled  
            to be heard in this committee on August 6, 2014.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081