Existing law establishes the Toxic Substances Control Account in the General Fund and authorizes moneys in the account, upon appropriation, to be used for, among other purposes, the payment of all costs of removal and remedial action incurred by the state in response to a release or threatened release of a hazardous substance, as specified.

This bill would appropriate $176,600,000 from the account to the Department of Toxic Substances Control for activities related to the cleanup and investigation of lead-contaminated properties in the communities surrounding the Exide Technologies facility in the City of Vernon, including job training activities, and actions taken to pursue all available remedies against potentially responsible parties. The bill would require the department to engage the impacted community, as specified; develop a Job and Development Training Program, as specified; and post on its Internet Web site specified information.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Existing law establishes the Toxic Substances Control Account in the General Fund and authorizes moneys in the account, upon appropriation, to be used for, among other purposes, the payment of all costs of removal and remedial action incurred by the state in response to a release or threatened release of a hazardous substance, as specified.

This bill would appropriate $176,600,000 from the account to the Department of Toxic Substances Control for activities related to the cleanup and investigation of lead-contaminated properties in the communities surrounding the Exide Technologies facility in the City of Vernon, including job training activities, and actions taken to pursue all available remedies against potentially responsible parties. The bill would require the department to engage the impacted community, as specified; develop a Job and Development Training Program, as specified; and post on its Internet Web site specified information.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 118

Author:(Santiago)

As Amended Ver:April 6, 2016

Majority vote. Budget Bill Appropriation Takes Effect Immediately

Original Committee Reference: BUDGET

SUMMARY: Contains necessary statutory and technical changes to implement SB 93 (De León and Lara) of the current legislative session, which amends the 2015-16 Budget Act related to the urgent cleanup of lead contamination in the communities surrounding the Exide Technologies facility in the City of Vernon. This bill, along with SB 93, proposes expenditures of $176.6 million for cleanup-related activities.

The Senate amendments delete the Assembly version of this bill, and instead:

1. Appropriate $176.6 million (Toxic Substances Control Account) to the Department of Toxic Substances Control (DTSC) to use for any of the following purposes:
   1. Activities related to the cleanup and investigation of properties contaminated with lead in the communities surrounding the Exide Technologies facility in the City of Vernon, California.
   2. Job training activities related to the cleanup and investigation of the properties contaminated with lead in these communities.
   3. Actions taken to pursue all available remedies against potentially responsible parties, including, but not limited to, cost recovery actions against entities that are potentially responsible, for the costs related to the cleanup and investigation of properties contaminated with lead in these communities.
2. Direct DTSC to engage the impacted community and provide meaningful opportunities for the public to participate in the Department's cleanup plan preparation process, which shall include at a minimum, a quarterly public meeting.
3. Stipulate that DTSC shall prepare and make available a Public Participation Plan that specifies the DTSC's commitments to engage and involve the community in the cleanup plan preparation process.
4. Specify that the DTSC meet all applicable public participation and notification requirements outlined in the Carpenter-Presley-Tanner Hazardous Substance Account Act (state Superfund law, Health and Safety Code Section 25300).
5. Require DTSC to develop a Job and Development Training Program with the goals of providing environmental skills, health and safety training, and support for job placement related to the cleanup for community members living near the Exide Technologies facility.
6. Specify that the DTSC post on its Web site the number of access agreements signed, the number properties sampled, and the number of properties cleaned up and shall updated these numbers at least twice a month.
7. Direct the DTSC to provide an annual report to the Senate and Assembly Budget Committee's that address the following:
   1. An update on the cleanup activities near the Exide Technologies facility in Vernon, including a summary of the environmental review of the cleanup activities;
   2. The number of properties sampled and a summary of the findings (this can be broken down in the approximate number of homes in priority 1, 2 and 3);
   3. The number of properties that have been remediated (cleaned up); and
   4. The number of access agreements signed.

FISCAL EFFECT: Appropriates $176.6 million from the Toxic Substances Control Account.

COMMENTS: Exide Technologies is located in the City of Vernon, about five miles southeast of downtown Los Angeles. The facility occupies 15 acres in a heavily industrial region with surrounding residential areas. Facility operations included recycling lead-bearing scrap materials obtained from spent lead-acid batteries. This facility operated under an interim status for over 30 years. During that time, inspectors documented more than 100 violations, including lead and acid leaks, an overflowing pond of toxic sludge, enormous cracks in the floor and hazardous levels of lead in the soil outside.

DTSC permanently suspended operations at Exide in 2014 and the facility closed in 2015 after DTSC notified Exide that its application for a new permit would be denied. The DTSC then ordered Exide to test and clean up residential properties and conducted its own testing.

The DTSC's analysis indicates that releases from the facility deposited lead dust across an area of southeast Los Angeles County, resulting in contamination extending 1.7 miles from the facility and impacting up to 10,000 properties, including residences, parks, and schools. The South Coast Air Quality Management District also cited the facility numerous times, and reported that arsenic emissions from Exide created an elevated risk of cancer for as many as 11,000 people in the area stretching from Boyle Heights to Huntington Park.

In August 2015, the Legislature and the Governor approved $7 million of emergency funding to test up to 1,500 residential properties, parks, schools, and daycare centers in the surrounding community; develop a comprehensive cleanup plan; and begin cleanup of the highest priority sites based on the degree of lead contamination and other exposure factors. To date, the DTSC has overseen the sampling of 714 properties and the cleanup of 208 properties. The DTSC has also established an Advisory Group of community leaders, local residents, business leaders, scientists, and elected officials to help guide closure and cleanup efforts.

This bill package would provide additional funding from the Toxic Substances Control Account to test the remaining properties, schools, daycare centers, and parks in the 1.7 mile radius and remove contaminated soil at the properties that have the highest lead levels and greatest potential exposure to residents.

The plan provides resources to expand community engagement in the testing and cleanup process, enhance coordination and job training for community residents, and promote the use of local business and labor for contracting purposes.

The $176.6 million appropriation from the Toxic Substances Control Account will be supported by a loan from the General Fund. This loan will enable the Department to address the significant public health concerns in the communities surrounding the Exide Technologies facility in an expedited manner. However, cleanup costs initially incurred by the State will ultimately be sought from the parties responsible for the lead contamination.

Analysis Prepared by: Gabrielle Meindl / BUDGET / (916) 319-2099 FN: 0002718

 THIRD READING  

Bill No: AB 118

Author:

:

Vote:

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-0, 4/6/16

AYES: Leno, Nielsen, Allen, Beall, Block, Hancock, Mitchell, Moorlach, Pan, Pavley, Roth, Stone, Wolk

NO VOTE RECORDED: Anderson, Glazer, Monning, Nguyen

ASSEMBLY FLOOR: Not relevant

SUBJECT:

SOURCE: Author

DIGEST: This bill provides policy changes and an appropriation related to the cleanup of the Exide Technologies facility.

ANALYSIS: Existing law establishes the Toxic Substances Control Account in the General Fund and authorizes moneys in the account, upon appropriation, to be used for, among other purposes, the payment of all costs of removal and remedial action incurred by the state in response to a release or threatened release of a hazardous substance, as specified.

This bill:

1. Appropriates $176.6 million from the Toxic Substances Control Account.
2. Stipulates that funds may be used for any of the following activities:
   1. cleanup and investigation of properties contaminated by lead in communities surrounding the Exide Technologies facility in the City of Vernon;
   2. provide job training related to the cleanup and investigation activities; and
   3. take action to pursue all remedies against potential responsible parties including, but not limited to, cost recovery.
3. Provides for a public participation process between the Department of Toxic Substances Control (DTSC) and the community.
4. Requires DTSC to develop a job and development training program with the goals of providing skills, health and safety training, and support for job placement related to the cleanup for community members living near the Exide Technologies facility.
5. Requires DTSC to report publicly on the progress of the cleanup through public websites and directly to the Legislature.

Background

Exide Technologies is located in the City of Vernon, about five miles southeast of downtown Los Angeles. The facility occupies 15 acres in a heavily industrial region with surrounding residential areas. Facility operations included recycling lead-bearing scrap materials obtained from spent lead-acid batteries. This facility ceased operations in 2014 and permanently closed after DTSC notified Exide that its application for a new permit would be denied. DTSC then ordered Exide to test and clean up residential properties and conducted its own testing.

DTSC’s analysis indicates that releases from the facility deposited lead dust across an area of southeast Los Angeles County, resulting in contamination extending 1.7 miles from the facility and impacting up to 10,000 properties, including residences, parks, and schools.

In August 2015, the Legislature and the Governor approved $7 million of emergency funding to test up to 1,500 residential properties, parks, schools, and daycare centers in the surrounding community; develop a comprehensive cleanup plan; and begin cleanup of the highest priority sites based on the degree of lead contamination and other exposure factors. To date, DTSC has removed more than 10,000 tons of contaminated soil and analyzed more than 20,000 soil samples from hundreds of properties. DTSC has also established an Advisory Group of community leaders, local residents, business leaders, scientists, and elected officials to help guide closure and cleanup efforts.

This bill provides additional funding from the Toxic Substances Control Account to test the remaining properties, schools, daycare centers, and parks in the 1.7 mile radius and remove contaminated soil at the properties that have the highest lead levels and greatest potential exposure to residents. In addition, DTSC will conduct specialized tests and analyses to conclusively identify the source of the contamination and hold Exide – and any other responsible parties – accountable.

The plan provides resources to expand community engagement in the testing and cleanup process, enhance coordination and job training for community residents, and promote the use of local business and labor for contracting purposes.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/5/16)

None received

OPPOSITION: (Verified 4/5/16)

None received

Prepared by:

4/7/16 8:38:00

**** END ****

SENATE COMMITTEE ON

Senator Mark Leno, Chair

2015 - 2016 Regular

Bill No: Hearing Date: April 6, 2016

Subject: Hazardous Substances: Cleanup: Exide Technologies Facility

Summary:

This bill provides policy changes and an appropriation related to Exide cleanup.

Background:

Exide Technologies is located in the City of Vernon, about five miles southeast of downtown Los Angeles. The facility occupies 15 acres in a heavily industrial region with surrounding residential areas. Facility operations included recycling lead-bearing scrap materials obtained from spent lead-acid batteries. This facility ceased operations in 2014 and permanently closed after the Department of Toxic Substances Control notified Exide that its application for a new permit would be denied. The department then ordered Exide to test and clean up residential properties and conducted its own testing.

The department’s analysis indicates that releases from the facility deposited lead dust across an area of southeast Los Angeles County, resulting in contamination extending 1.7 miles from the facility and impacting up to 10,000 properties, including residences, parks, and schools.

In August 2015, the Legislature and the Governor approved $7 million of emergency funding to test up to 1,500 residential properties, parks, schools, and daycare centers in the surrounding community; develop a comprehensive cleanup plan; and begin cleanup of the highest priority sites based on the degree of lead contamination and other exposure factors. To date, the department has removed more than 10,000 tons of contaminated soil and analyzed more than 20,000 soil samples from hundreds of properties. The department has also established an Advisory Group of community leaders, local residents, business leaders, scientists, and elected officials to help guide closure and cleanup efforts.

This bill would provide additional funding from the Toxic Substances Control Account to test the remaining properties, schools, daycare centers, and parks in the 1.7 mile radius and remove contaminated soil at the properties that have the highest lead levels and greatest potential exposure to residents. In addition, the department will conduct specialized tests and analyses to conclusively identify the source of the contamination and hold Exide – and any other responsible parties – accountable.

The plan provides resources to expand community engagement in the testing and cleanup process, enhance coordination and job training for community residents, and promote the use of local business and labor for contracting purposes.

Proposed Law:

Specifically, this bill:

1. Appropriates $176.6 from the Toxic Substances Control Account.
2. Stipulates that funds may be used for any of the following activities: (a) cleanup and investigation of properties contaminated by lead in communities surrounding the Exide Technologies facility in the City of Vernon; (b) provide job training related to the cleanup and investigation activities; (c) take action to pursue all remedies against potential responsible parties including, but not limited to, cost recovery.
3. Provides for a public participation process between the Department of Toxic Substances Control (DTSC) and the community.
4. Requires DTSC to develop a job and development training program with the goals of providing skills, health and safety training, and support for job placement related to the cleanup for community members living near the Exide Technologies facility.
5. Requires the department to report publicly on the progress of the cleanup through public websites and directly to the Legislature.

Fiscal Effect:

Appropriates $176.6 million from the Toxic Substances Control Account for the purposes stated in the bill.

Support:

None recorded.

Opposed:

None recorded.

Comments:

SB 93 (De León) provides for a transfer of $176.6 million as a loan to the Toxic Substances Control Account to allow for the appropriation in this bill. The $176.6 million appropriation will enable the department to address the significant public health concerns in the communities surrounding the Exide Technologies facility in an expedited manner. However, cleanup costs initially incurred by the state will ultimately be sought from the parties responsible for the lead contamination.

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