BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1249
                                                                  Page  1


          SENATE THIRD READING
          SB 1249 (Hill)
          As Amended August 4, 2014
          Majority vote 

           SENATE VOTE  :23-12  
           
           ENVIRONMENTAL SAFETY        6-0 APPROPRIATIONS      12-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Alejo, Dahle, Bloom,      |Ayes:|Gatto, Bocanegra,         |
          |     |Gomez, Lowenthal, Ting    |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bigelow                   |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Authorizes the Department of Toxic Substances Control  
          (DTSC) to adopt regulations establishing management standards  
          for hazardous waste management activities at metal shredding  
          facilities until January 1, 2017.  Specifically,  this bill  : 

          1)Defines "metal shredding facility" as an operation that uses a  
            shredding technique to process end-of-life vehicles,  
            appliances, and other forms of scrap metal to facilitate the  
            separation and sorting of ferrous metals, nonferrous metals,  
            and other recyclable materials from nonrecyclable materials.

          2)Authorizes DTSC, in consultation with the Department of  
            Resources Recycling and Recovery, the State Water Resources  
            Control Board and affected local air quality management  
            districts, until January 1, 2017, to adopt regulations  
            establishing management standards for metal shredding  
            facilities for hazardous waste management activities as an  
            alternative to current statutory hazardous waste management  
            requirements and regulations. 

          3)Requires DTSC, before adopting regulations to establish  
            alternative management standards, to first prepare an analysis  
            evaluating the hazardous waste management activities to which  








                                                                  SB 1249
                                                                  Page  2


            alternative management standards would apply. 

          4)Prohibits DTSC from adopting management standards that are  
            less stringent than applicable standards under federal law.

          5)Authorizes the alternative management standards, to the extent  
            it is consistent with the standards that would otherwise apply  
            under the federal act, to allow for treated metal shredder  
            waste to be classified and managed as nonhazardous waste.

          6)Allows treated metal shredder waste being classified as  
            nonhazardous waste pursuant to the alternative management  
            standards to be managed as either alternative daily cover, or  
            for beneficial reuse, or placed in a unit that meet specified  
            state waste discharge requirements.

          7)Determines all hazardous waste determinations and policies,  
            procedures or guidance issued by DTSC before January 1, 2014,  
            governing treated metal shredder waste to be inoperative if or  
            when DTSC completes its analysis and either adopts new  
            regulations establishing alternative management standards or  
            rescinds the existing conditional nonhazardous waste  
            classifications. 

          8)Sunsets DTSC's authority to complete the analysis and adopt  
            regulations relating to metal shredder waste on January 1,  
            2017.

          9)Authorizes DTSC to collect an annual fee from all metal  
            shredding facilities that are subject to the regulation to  
            cover DTSC's costs for implementation.

          10)Allows treated metal shredder waste to be deemed a solid  
            waste if managed pursuant to the alternative management  
            standards adopted by DTSC and is accepted by a solid waste  
            landfill or other authorized location for disposal or for use  
            as alternative daily cover or other beneficial reuses. 

           EXISTING LAW  :

          1)Governs the disposal of hazardous waste pursuant to the  
            federal Resource Conservation and Recovery Act (RCRA) of 1976;

          2)Authorizes DTSC to enforce federal law and regulations under  








                                                                  SB 1249
                                                                  Page  3


            RCRA; 

          3)Regulates, pursuant to the California Hazardous Waste Control  
            Act (HWCA) of 1972, 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; and

          4)Requires DTSC to grant and review permits and enforce HWCA  
            requirements for hazardous waste treatment, storage, and  
            disposal facilities.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, enactment of this bill would likely result in  
          increased one-time costs to DTSC of approximately $200,000  
          (Hazardous Waste Control Account) to perform fee rulemaking, and  
          the treatability study, and increased ongoing costs to DTSC of  
          approximately $450,000 (Hazardous Waste Control Account) for  
          rulemaking, compliance, and ongoing administration.  This bill  
          provides fee authority to cover costs.
           
          COMMENTS  :

          Need for the bill:  According to the author, "Shredder  
          facilities are operating under hazardous waste exemptions from  
          the Department of Health Services dating back to the 1980s.   
          Over the last decade DTSC has concluded that shredder waste  
          exceeded state regulatory thresholds for lead, zinc and cadmium  
          - they also found that the exemptions were 'outdated and legally  
          incorrect.'  But DTSC hasn't followed through with the proper  
          action - this bill requires them to take action."
           
           What is shredder waste?  According to DTSC's Draft Report:   
          California's Automobile Waste Initiative, November 2002, 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 large enough to  
          shred an automobile is referred to as "automobile shredder  
          waste," "automobile shredder residue," "shredder waste" (these  
          facilities shred a variety of recyclable metals) or simply as  
          "fluff."  In California, shredder waste has been found to  
          contain lead, cadmium, copper, zinc, and polychlorinated  








                                                                  SB 1249
                                                                  Page  4


          biphenyls (PCBs) at levels above the state's regulatory  
          thresholds.  According to DTSC's draft report, shredder waste is  
          both a hazardous waste and a recyclable material subject to  
          California's Hazardous Waste Control Law and the regulations  
          that apply to hazardous wastes.
           
          Current DTSC action on shredder waste:  DTSC is currently  
          reviewing technical data about current and potential chemical  
          treatments of metal shredder residue in order to reevaluate its  
          prior waste classification decisions.  DTSC states that its  
          goals in this effort are to ensure that waste treatment,  
          disposal practices, and management practices at metal shredding  
          facilities are fully protective of public health and the  
          environment; have environmental standards and regulatory  
          requirements that can be fairly applied to all metal shredders;  
          and, can be effectively enforced.

          As part of the reevaluation, DTSC asked the seven active and  
          primary metal-shredding facilities in California to provide a  
          study plan that includes updated information about the  
          composition and characteristics of metal shredder residue  
          currently being generated.  DTSC states that it also will  
          require the facilities to evaluate the long-term effectiveness  
          of current chemical treatments; it ordered facilities to explore  
          whether better treatment options are available; and, it plans to  
          assess the operations of the metal shredders, including  
          processes related to actual shredding, materials separation, and  
          waste treatment, to identify risks associated with those  
          processes, and to identify whether control technologies or  
          additional regulatory controls are necessary.  DTSC asserts that  
          it will develop a work plan and timeline to implement  
          recommendations by November 2014.  

          While the analysis being conducted by DTSC will shed light on  
          the shredder industry, it appears that DTSC currently only has  
          two regulatory options for shredder waste, either to continue to  
          grant conditional nonhazardous waste classifications to shredder  
          facilities or to regulate shredder facilities as a hazardous  
          waste facility.  This bill will give DTSC a third regulatory  
          option by authorizing them, after conducting an analysis of  
          shredder practices, to adopt regulations establishing management  
          standards for shredder waste.










                                                                  SB 1249
                                                                  Page  5


           Analysis Prepared By  :    Paige Brokaw / E.S. & T.M. / (916)  
          319-3965


                                                                FN: 0004816