BILL ANALYSIS Ó
SB 812
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Jerry Hill, Chair
2013-2014 Regular Session
BILL NO: SB 812
AUTHOR: de León
AMENDED: August 22, 2014
FISCAL: Yes HEARING DATE: August 28,
2014
URGENCY: No CONSULTANT: Rachel Machi
Wagoner
SUBJECT : HAZARDOUS WASTE: FACILITIES PERMITTING
SUMMARY :
Existing law :
1) Under the federal Resource Conservation and Recovery Act
(RCRA) of 1976, governs the disposal hazardous waste:
a) Through regulation, sets standards for the treatment,
storage, transport, tracking and disposal of hazardous
waste in the United States.
b) Authorizes states to carry out many of the functions
of the federal law through their own hazardous waste
laws if such programs have been approved by the United
States Environmental Protection Agency (US EPA).
2) Under the California Hazardous Waste Control Act (HWCA) of
1972:
a) Establishes the Hazardous Waste Control program;
b) Regulates the appropriate handling, processing and
disposal of hazardous and extremely hazardous waste to
protect the public, livestock and wildlife from hazards
to health and safety.
c) Implements federal tracking requirements for the
SB 812
Page 2
handling and transportation of hazardous waste from the
point of waste generation to the point of ultimate
disposition.
d) Establishes a system of fees to cover the costs of
operating the hazardous waste management program.
e) Authorizes the Department of Toxic Substances Control
(DTSC) to enforce federal law and regulations under
RCRA.
f) Requires DTSC to grant and review permits and enforce
HWCA requirements for hazardous waste treatment, storage
and disposal facilities.
This bill : Revises the Department of Toxic Substance
Control's (DTSC) permitting process and public participation
requirements for hazardous waste facilities. Specifically,
this bill :
1)Requires DTSC to adopt regulations by January 1, 2017, to
specify conditions for new permits and the renewal of
existing permits as specified. Establishes deadlines for
the submission and processing of facility applications as
specified.
2)Establishes the DTSC Community Oversight Committee to
receive and review allegations of misconduct from the
public, and establishes the Bureau of Internal Affairs to
oversee DTSC and investigate department conduct.
3)Requires the Community Oversight Committee to be comprised
of thirteen members appointed by California Environmental
Protection Agency (five members), Senate Rules Committee
(four members) and Speaker of the Assembly (four members).
Members of the Community Oversight Committee receive per
diem and serve at the pleasure of the respective appointing
authorities.
4)Specifies that the Community Oversight Committee is
providing input to the Director of DTSC on improving
outreach and communications with communities and
stakeholders to increase public participation and
SB 812
Page 3
transparency.
5)Provides that financial assurance requirements for hazardous
waste facilities contaminated with hazardous waste may be
set by DTSC at an early stage in the corrective action
process rather than only at the time that a full remediation
plan has been approved.
6)Provides that DTSC may increase the penalty for late
hazardous waste cleanup cost recovery payments from the
current rate linked to California's Pooled Money Investment
Fund to the penalty interest rate established by the State
Board of Equalization for delinquent tax payments.
COMMENTS :
1) Referral to the Committee pursuant to Senate Rule
29.10 . SB 812 was significantly amended in the Assembly.
Consistent with Senate Rule 29.10, the Senate Rules
Committee has referred the amended bill to the Senate
Environmental Quality Committee for a hearing owing to
the Assembly amendments.
2) Purpose of Bill . According to the author, this bill will
establish deadlines by which final permit decisions must be
made by DTSC for facilities that handle the most serious
and dangerous hazardous waste, thereby limiting the amount
of time a facility can operate on an expired or interim
permit.
3) DTSC Permitting Renewal Process . Title 22, Cal. Code of
Regs., section 66270.10(h) requires "Any hazardous waste
management facility with an effective permit shall submit a
new application at least 180 days before the expiration
date of the effective permit, unless permission for a later
date has been granted by the Department. The Department
shall not grant permission for applications to be submitted
later than the expiration date of the existing permit." To
ensure completion of the permit renewal application at
least 180 days before the expiration date of the effective
permit, it is recommended that the renewal application be
submitted at least one year before the expiration date of
SB 812
Page 4
the permit. Current applicants who apply to renew RCRA
permits, where the renewal application contains significant
changes in the facility's operation (equal to a Class 3
Permit modification), must hold an informal preapplication
meeting. Permit renewals must meet all of the land use and
permitting requirements for obtaining a new permit.
3) Exide Technologies, Vernon, California . The Exide facility
in Vernon, California is one of two secondary lead smelting
facilities in California which recovers lead from recycled
automotive batteries. It has over 100 employees. It
recycles 23,000 to 41,000 batteries daily and has an
average production of 100,000 to 120,000 tons of lead per
year. This is equivalent to recycling approximately 11
million car batteries, which is about the same number of
used batteries generated in California annually.
Battery recycling recycles 97% of the battery lead to be
recycled.
Exide also recovers lead from lead bearing plant scrap and
secondary materials, primarily from lead-acid battery
manufacturers.
This facility is regulated by various local and state
regulatory agencies.
DTSC regulates companies that handle hazardous waste under
federal and state hazardous waste laws. DTSC permits and
inspects facilities, issues violations of hazardous waste
rules, and monitors corrective action at sites.
The South Coast Air Quality Management District (SCAQMD)
regulates Exide's air emissions, in part with what is
called a Title V permit, which allows the company to
release pollutants into the air up to certain levels.
The Los Angeles Regional Water Quality Control Board
(LARWQCB) is responsible for protecting water quality.
Exide has wastewater treatment systems, and a stormwater
system that includes a retention basin. LARWQCB with the
State Water Resources Control Board set and enforce
standards for water that flows away from Exide's property
SB 812
Page 5
into the sewer.
The City of Vernon issues health and other permits to
Exide.
4) The History of the Exide Hazardous Waste Permit . The
facility in Vernon has been operating with an interim
hazardous waste facility permit since 1981. However, it
has had several owners prior to Exide Technologies.
The facility has been used for a variety of metal
fabrication and metal recovery operations since 1922.
Previous owners have included Morris P. Kirk & Sons, Inc.,
NL Industries, Gould Inc., and GNB Inc.
Gould Inc. filed a RCRA Part A notification on November 19,
1980, as a treatment and storage facility. This Part A
identified storage of spent lead-acid batteries and other
lead-bearing material prior to treatment and recycling, and
a wastewater treatment system.
Gould Inc. was issued an Interim Status Document (ISD) by
the State of California Department of Health Services
(DHS), DTSC's predecessor agency, on December 18, 1981.
The US EPA rescinded the facility's Treatment and Storage
Facility classification by returning Gould Inc.'s original
RCRA Part A application, after Gould Inc. eliminated its
waste pile, claimed that the smelters do not require a
permit, and requested reclassification to generator status.
The Interim Status Document was subsequently rescinded by
DHS in 1982.
GNB, Inc. purchased the facility and filed a revised Part A
application on July 5, 1985.
On September 3, 1986, DHS determined that a hazardous waste
facilities permit was necessary.
GNB, Inc. submitted the first RCRA Part B application on
November 8, 1988.
SB 812
Page 6
On December 13, 1999, DTSC approved a Class 2 Interim
Status modification for Supplemental Environmental Projects
(SEPs) as a result of an enforcement case settlement.
On June 30, 2000, DTSC approved a Class 2 Interim Status
modification, for replacement of the Waste Water Treatment
Plant and to provide secondary containment.
On January 5, 2001, DTSC approved a Class 1 Interim Status
modification, for change of ownership and operational
control to Exide Corporation.
On November 16, 2001, DTSC approved a Class 1 Interim
Status modification, for a name change from Exide
Corporation to Exide Technologies.
In 2006, Exide submitted a completed application and DTSC
circulated for public hearing, a draft permit for the
Vernon Exide facility.
In mid-2006, DTSC received significant comments from the
SCAQMD and the public in regards to three specific areas:
1) the risk assessment prepared by the contractor used
proprietary software, which was not accessible by the
public to verify parameters and assumptions used in the
risk assessment model. The risk assessment model for the
air emissions model was not an approved model by SCAQMD; 2)
the environmental impact report (EIR) lacked significant
alternative analysis to mitigate the environmental impacts;
and 3) the Part B application had not adequately assessed
the secondary containment, tank systems, and closure of
former tank systems.
As a result DTSC took the following actions: 1) worked
closely with SCAQMD to require Exide to prepare a risk
assessment (AQMD required risk assessment for air
emissions); 2) prepared a revised EIR; and 3) required
Exide to submit a revised Part B application addressing
comments received during comment period.
In 2010, the risk assessment indicated high arsenic
emissions prompting Exide to petition SCAQMD to redo the
SB 812
Page 7
source testing (data required for the risk assessment) in
order to prepare a revised risk assessment. [Note: source
testing is an expensive process that can cost up to $1
million).
In January 2013, Exide provided DTSC and SCAQMD with a
revised risk assessment. The risk assessment showed high
risks to potential receptors (workers and residents).
In April 2013, DTSC issued an administrative suspension
order because it was concerned about the releases of
hazardous waste (leaking stormwater pipes) and air
emissions into the environment.
In May 2013, Exide requested a hearing with the Office of
Administrative Hearings (OAH). A hearing was held in June
2013 by OAH.
In June 2013, the Los Angeles Superior Court granted
Exide's ex parte application and issued a temporary
restraining order which stayed the Order for Temporary
Suspension and prevented DTSC from enforcing it until the
hearing and determination on the order to show cause
regarding the preliminary injunction was concluded.
In October 2013, DTSC and Exide signed a Stipulation and
Order. The Stipulation and Order resolves the
administrative suspension order that DTSC issued against
Exide in April 2013 and resolves a legal action that Exide
filed against DTSC in June 2013. The Stipulation and Order
sets out conditions that Exide must meet and timelines for
completing them. There are automatic penalties in place if
the timelines are not met as specified in the Stipulation
and Order.
In December 2013, DTSC ordered Exide to perform emergency
cleanup of off-site contaminated soil, dust and sediment
near the facility.
In March 2014, DTSC began testing soil around homes near
the Exide facility for lead. Elevated levels of lead have
been found in the soil of homes and a preschool near the
Exide facility, prompting officials to issue health
SB 812
Page 8
precautions and order expanded testing in additional
neighborhoods.
DTSC officials said the initial testing of 39 homes and
apartments as well as two schools concerned them enough
that they ordered Exide Technologies to create a plan for
more testing and to protect children and pregnant women
living in the area.
In March 2014, the Los Angeles Department of Public Health
began to offer free blood-lead level testing to residents
near the Vernon Exide facility.
The state found that every home tested had lead
contamination in the soil that exceeded California's
screening level of 80 parts per million. One home in Boyle
Heights had samples above 580 parts per million. A
preschool located farther north had samples at 95 parts per
million.
In April 2014, SCAQMD denied Exide's request for a variance
to restart operations.
In June 2014, DTSC found the Exide permit application
deficient and issued a 3rd Notice of Deficiency (NOD).
Exide had 30 days to respond or comply.
In July 2014, Exide requested a 30-day extension to respond
to or comply with the NOD. DTSC granted this extension,
with further stipulations.
In August 2014, Exide began cleanup of two residential
properties. DTSC also approved Exide's workplan for
further sampling and investigation of 37 homes in addition
to surrounding homes north and south of the facility.
In August 2014, Exide was issued a grand jury subpoena in
connection with a criminal investigation involving its
Vernon lead-recycling plant.
In a filing with the Securities and Exchange Commission,
SB 812
Page 9
Exide stated that the August 8 subpoena seeks "documents
relating to materials transportation and air emissions."
As of August 2014, the Exide facility in Vernon will remain
closed pending installation of air emission control systems
as specified by the SCAQMD, and the application for the
DTSC facility permit application is under review at DTSC.
SOURCE : Author
SUPPORT : None on file
OPPOSITION : Department of Toxic Substances Control