(1)Existing law establishes the Toxic Substances Control Account in the General Fund and authorizes the expenditure of moneys in the account, upon appropriation, 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.

Existing law appropriated $176,600,000 from the Toxic Substances Control Account to the department, for expenditure through June 30, 2018, for specified purposes, including, among others, including 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.

This bill would authorize the expenditure of those funds through June 30, 2021.

This bill would appropriate $12,000,000 from the Toxic Substances Control Account fund to the department for specified purposes, including, among others, for interim removal or remedial action measures in public parkway sites in the communities surrounding the Exide Technologies facility with lead levels that could pose a substantial danger to human health or the environment. The bill would require the County of Los Angeles, to the extent feasible, to use any lead-based paint remediation federal funding, consistent with federal law, or grant funding that it receives for lead-based paint remediation to provide specified services to residents in the communities surrounding the Exide Technologies facility. Because the bill would impose new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

(3)This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law, as part of the hazardous waste control laws, requires a facility handling hazardous waste to obtain a hazardous waste facilities permit from the Department of Toxic Substances Control. Existing law requires an application for a hazardous waste facilities permit or other grant of authorization to use and operate a hazardous waste facility to include a disclosure statement, as specified.

This bill would make a nonsubstantive change to the provision requiring the application to include a disclosure statement.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 2189 (Santiago) - Hazardous substances: lead: cleanup: Exide Technologies facility

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill would appropriate $12 million from the Lead-Acid Battery Cleanup Fund for the Department of Toxic Substance Control (DTSC) to test and clean parkways contaminated with lead near the Exide Technologies facility in Vernon, CA.

Fiscal Impact:

• Appropriates $12 million (Lead Acid Battery Fund) for cleanup near the Exide Technologies facility.

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 operated under an interim status permit for more than 30 years. During that time, inspectors documented more than 100 violations. 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. DTSC then ordered Exide to test and clean up residential properties and conduct its own testing.

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.

AB 118 (Santiago), Chapter 10, Statutes of 2016) and SB 93 (De León), Chapter 9, Statutes of 2016, to appropriated $176.6 million to DTSC to expedite residential sampling and cleanup in communities within a 1.7-mile area surrounding Exide.

Proposed Law:

This bill would extend the expenditure deadline from June 30, 2018, to June 30, 2021, for DTSC to cleanup properties contaminated with lead near the Exide Technologies facility in Vernon, California, and would appropriate $12 million to DTSC for the investigation and cleanup of parkways near Exide.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2017 - 2018 Regular

Bill No: AB 2189

SUBJECT: Hazardous substances: lead: cleanup: Exide Technologies facility

ANALYSIS:

EXISTING LAW:

1) Creates the Hazardous Waste Control Law (HWCL), which authorizes the Department of Toxic Substances Control (DTSC) to regulate the management of hazardous wastes in California.

2) Appropriates $176.6 million from the Toxic Substances Control Account to DTSC and requires it to be available for expenditure through June 30, 2018. Makes these moneys available for any of the following: activities related to the cleanup and investigation of properties contaminated with lead in the communities surrounding Exide; job training activities related to the cleanup and investigation of the properties contaminated with lead in the communities surrounding Exide; and 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 the communities surrounding Exide.

3) Establishes the Lead-Acid Battery Cleanup Fund in the State Treasury and requires that moneys in the fund be expended for investigation, site evaluation, cleanup, remedial action, removal, monitoring, or other response actions at an area of the state that is suspected to have been contaminated by the operation of lead-acid battery recycling facility.

This bill:

1. Extends the expenditure deadline from June 30, 2018, to June 30, 2021, for DTSC to cleanup properties contaminated with lead near the Exide Technologies (Exide) facility in Vernon, California, and
2. Appropriates $12 million to DTSC for the investigation and cleanup of parkways near Exide.
   

Background

1. California Hazardous Waste Control Law (HWCL): The HWCL is the state's program that implements and enforces federal hazardous waste law in California and directs DTSC to oversee and implement the state's HWCL. Any person who stores, treats, or disposes of hazardous waste must obtain a permit from DTSC. The HWCL covers the entire management of hazardous waste, from the point the hazardous waste is generated, to management, transportation, and ultimately disposal into a state or federal authorized facility.
2. Exide: 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 permit for more than 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. DTSC then ordered Exide to test and clean up residential properties and conduct its own testing.

DTSC's analysis of the Preliminary Investigation Area (PIA) 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.

On April 20, 2016, Governor Edmund G. Brown signed AB 118 (Santiago), Chapter 10, Statutes of 2016) and SB 93 (De León), Chapter 9, Statutes of 2016, to appropriate $176.6 million to DTSC to expedite residential sampling and cleanup in communities within a 1.7-mile area surrounding Exide. The 1.7-mile area surrounding Exide is designated as the PIA.

1. In July 2017, DTSC released the Final Removal Action Plan (Cleanup Plan) and a Final Environmental Impact Report (EIR) related to the cleanup of properties in the PIA. The Cleanup Plan is focused on cleaning up approximately 2,500 residential properties, schools, parks, daycare centers, and child care facilities within the PIA. The PIA includes sections of the cities of Vernon, Bell, Huntington Park, Commerce, Maywood, Los Angeles (Boyle Heights neighborhood), and an area of unincorporated Los Angeles County (East Los Angeles neighborhoods).
2. Parkways near Exide: Parkways are the soil and/or grass area between the street and the property. DTSC evaluated whether or not to include the parkways as part of the EIR and chose not to include them because DTSC felt they did not post the same potential for exposure as a residential front or backyard.
3. Cleaning up the parkways: During the cleanup planning process, including the development and adoption of the EIR for the cleanup of the residential properties, there has been concern by residents near Exide that the failure to include the parkways in the EIR could mean that residents will be exposed to lead even if their properties are cleaned up. To remedy this concern, this bill specifically directs DTSC to investigate and cleanup the parkways in the residential communities near Exide and provides $12 million for this effort.
4. Lead: Since 1987, lead has been listed under California's Proposition 65's requirements as a substance that can cause reproductive damage and birth defects and has been on the list of chemicals known to cause cancer since 1992. According to the Office of Environmental Health Hazard Assessment, lead has multiple toxic effects on the human body. Decreased intelligence in children and increased blood pressure in adults are among the more serious non-carcinogenic effects. There is no level of lead that has been proven safe, either for children or for adults. Exposure to lead is a significant health concern, especially for young children and infants whose growing bodies tend to absorb more lead than the average adult.
5. Need for extension of deadline to expend cleanup funds: On February 27, 2018, DTSC notified Environmental Quality Management (EQM) that it was terminating contract negotiations. This is significant because EQM was the winning bidder for the contract to cleanup approximately 2,500 properties near Exide. Given that this contract is terminated and DTSC currently does not have a contractor to complete the work, it is near impossible that the 2,500 properties will be cleaned up by the June 30, 2018 deadline in current law. This bill will extend the deadline three years to utilize the $176 million already allocated for cleaning up residential properties near Exide.

Comments

1. Purpose of Bill. According to the author, AB 2189 appropriates $12 million to DTSC for the purposes of testing the public parkways around the Exide Technologies facility in Vernon, California, for lead contamination. The author states, that the Exide Technologies battery recycling facility in Vernon, CA operated for over 90 years -- the last 33 on a temporary permit from DTSC. During the last three decades, DTSC documented over 100 violations including lead and acid leaks, an overflowing pond of toxic sludge, and hazardous levels of lead in the soil outside the facility. South Coast Air District also reported arsenic emissions from the facility creating an elevated cancer risk for as many as 110,000 people in the area stretching from Boyle Heights to Huntington Park. The author states that the Exide facility finally closed in 2015 under an agreement with the federal government. Closure of the plant was a major milestone. But it is just step one in how we rectify the damage that has been incurred by these communities. The people of this area are sick, with long-term health implications, and they continue to be exposed to lead dust daily in their yards and houses.
   

Related/Prior Legislation

AB 2153 (C. Garcia, Chapter 666, Statutes of 2016) establishes the Lead-Acid Battery Recycling Act of 2016 and creates new fees on lead-acid batteries to fund lead contamination cleanup.

SUPPORT:

None received

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2189

Author:(Santiago)

As Amended Ver:May 25, 2018

2/3 vote

SUMMARY: Extends the expenditure deadline from June 30, 2018, to June 30, 2021, for the Department of Toxic Substances Control (DTSC) to cleanup properties contaminated with lead near the Exide Technologies (Exide) facility in Vernon, California, and appropriates $12 million to DTSC for the investigation and cleanup of parkways near Exide.

EXISTING LAW:

1) Creates the Hazardous Waste Control Law (HWCL), which authorizes DTSC to regulate the management of hazardous wastes in California.

2) Appropriates $176.6 million from the Toxic Substances Control Account to DTSC and requires it to be available for expenditure through June 30, 2018. Makes these moneys available for any of the following: activities related to the cleanup and investigation of properties contaminated with lead in the communities surrounding Exide; job training activities related to the cleanup and investigation of the properties contaminated with lead in the communities surrounding Exide; and, 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 the communities surrounding Exide.

3) Establishes the Lead-Acid Battery Cleanup Fund in the State Treasury and requires that moneys in the fund be expended for investigation, site evaluation, cleanup, remedial action, removal, monitoring or other response actions at an area of the state that is suspected to have been contaminated by the operation of lead-acid battery recycling facility.

FISCAL EFFECT: According to the Assembly Appropriations Committee, enactment of this bill will appropriate $12 million from the Lead Acid Battery Clean-Up Fund to DTSC for testing and cleaning up parkways near Exide.

COMMENTS:

Need for the bill: According to the author,

AB 2189 appropriates $12 million to DTSC for the purposes of testing the public parkways around the Exide Technologies facility in Vernon, California, for lead contamination.

The Exide Technologies battery recycling facility in Vernon, CA operated for over 90 years -- the last 33 on a temporary permit from DTSC. During the last three decades, DTSC documented over 100 violations including lead and acid leaks, an overflowing pond of toxic sludge, and hazardous levels of lead in the soil outside the facility. South Coast Air District also reported arsenic emissions from the facility creating an elevated cancer risk for as many as 110,000 people in the area stretching from Boyle Heights to Huntington Park.

The Exide facility finally closed in 2015 under an agreement with the federal government. Closure of the plant was a major milestone. But it is just step one in how we rectify the damage that has been incurred by these communities. The people of this area are sick, with long-term health implications, and they continue to be exposed to lead dust daily in their yards and houses.

California Hazardous Waste Control Law (HWCL): The HWCL is the state's program that implements and enforces federal hazardous waste law in California and directs DTSC to oversee and implement the state's HWCL. Any person who stores, treats, or disposes of hazardous waste must obtain a permit from DTSC. The HWCL covers the entire management of hazardous waste, from the point the hazardous waste is generated, to management, transportation, and ultimately disposal into a state or federal authorized facility.

Exide: 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 permit for more than 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. DTSC then ordered Exide to test and clean up residential properties and conduct its own testing.

DTSC's analysis of the Preliminary Investigation Area (PIA) 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.

On April 20, 2016, Governor Edmund G. Brown signed AB 118 (Santiago), Chapter 10, Statutes of 2016) and SB 93 (De León), Chapter 9, Statutes of 2016, to appropriate $176.6 million to DTSC to expedite residential sampling and cleanup in communities within a 1.7-mile area surrounding Exide. The 1.7-mile area surrounding Exide is designated as the PIA.

In July 2017, DTSC released the Final Removal Action Plan (Cleanup Plan), and a Final Environmental Impact Report (EIR) related to the cleanup of properties in the PIA. The Cleanup Plan is focused on cleaning up approximately 2,500 residential properties, schools, parks, daycare centers, and child care facilities within the PIA. The PIA includes sections of the cities of Vernon, Bell, Huntington Park, Commerce, Maywood, Los Angeles (Boyle Heights neighborhood), and an area of unincorporated Los Angeles County (East Los Angeles neighborhoods).

Parkways near Exide: Parkways are the soil and or grass area between the street and the property. DTSC evaluated whether or not to include the parkways as part of the EIR and chose not to include them because DTSC felt they did not post the same potential for exposure as a residential front or backyard.

Cleaning up the parkways: During the cleanup planning process, including the development and adoption of the EIR for the cleanup of the residential properties there has been concern by residents near Exide that the failure to include the parkways in the EIR could mean that residents will be exposed to lead even if their properties are cleaned up. To remedy this concern, this bill specifically directs DTSC to investigate and cleanup the parkways in the residential communities near Exide and provides $12 million for this effort.

Lead: Lead has been listed under California's Proposition 65's requirements as a substance that can cause reproductive damage and birth defects since 1987 and has been on the list of chemicals known to cause cancer since 1992. According to the Office of Environmental Health Hazard Assessment, lead has multiple toxic effects on the human body. Decreased intelligence in children and increased blood pressure in adults are among the more serious non-carcinogenic effects. There is no level of lead that has been proven safe, either for children or for adults. Exposure to lead is a significant health concern, especially for young children and infants whose growing bodies tend to absorb more lead than the average adult.

Need for extension of deadline to expend cleanup funds: On February 27, 2018, DTSC notified Environmental Quality Management (EQM) that it was terminating contract negotiations. This is significant because EQM was the winning bidder for the contract to cleanup approximately 2,500 properties near Exide. Given that this contract is terminated and DTSC currently does not have a contractor to complete the work, it is near impossible that the 2,500 properties will be cleaned up by the June 30, 2018 deadline in current law. This bill will extend the deadline three years to utilize the $176 million already allocated for cleaning up residential properties near Exide.

Analysis Prepared by: Josh Tooker / E.S. & T.M. / (916) 319-3965 FN: 0003368

Date of Hearing: May 2, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2189

Author:(Santiago) – As Amended Ver:March 15, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill appropriates$12 million from the Toxic Substances Control Account (TSCA) to the Department of Toxic Substance Control (DTSC) for lead sampling and testing of public parkways in communities surrounding the Exide Technologies facility (Exide) in Vernon, California and extends the expenditure deadline from June 30, 2018, to June 30, 2021, for DTSC to expend $176 million to cleanup lead contaminated properties near Exide. Additionally, this bill:

1. Requires the lead sampling and testing of parkways to be completed by July 1, 2019 and requires DTSC to post on its internet website the number of parkways sampled and tested, as specified.
2. Authorizes funds from the $12 million appropriation to be used for interim removal or remedial action measures for parkways that pose a substantial danger to human health or the environment.
3. Requires the County of Los Angeles, to the extent feasible, to use any lead-based paint remediation federal funding or grant funding for lead-based paint remediation to provide residents in the communities surrounding Exide with wraparound services, as specified.

FISCAL EFFECT:

1. This bill appropriates $12 million from the TSCA to DTSC for public parkway testing activities.

The TSCA fund has a structural deficit; there are currently insufficient funds to meet the state’s obligations for national priority list and orphan site cleanups. The author may wish to consider the Lead-Acid Battery Cleanup Fund.

1. Potential unknown increased interest resulting from the extension of the expenditure period on the $176 million GF loan to DTSC. Although statue requires all funds recovered from the potentially responsible parties to be used to repay the loan made pursuant to this item, if the amount of moneys received from the cost recovery efforts is insufficient, the balance, and any interest due, will be forgiven.

COMMENTS:

1. 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 operated under an interim permit 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. 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. 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.

1. Purpose. The Budget Act of 2016 included a $176.6 million GF loan to DTSC for the purposes of testing, clean-up, and job training in the communities surrounding Exide. Clean-up efforts did not include the public parkways leading into contaminated homes.

This bill appropriates $12 million from the TCSA to DTSC for the express purpose of lead testing of parkways around the Exide facility.

On February 27, 2018, DTSC notified Environmental Quality Management (EQM), the winning bidder for the contract to cleanup approximately 2, 500 properties near Exide, that it was terminating contract negotiations. Given that this contract is terminated, it will be impossible to meet the June 30, 2018 deadline in current law. AB 2189 will extend the deadline three years to utilize the $176 million already allocated for cleaning up residential properties near Exide.

The County of Los Angeles Department of Public Health (County) works with the state Department of Public Health and responds to elevated blood lead levels of children. This bill requires the County to provide residents near Exide with wraparound services including the abatement of lead-based paint on residential properties, a survey of residents to identify which County programs and services are being accessed by residents, ongoing blood-lead testing, and educational literature on the dangers of lead.

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

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Bill Quirk, Chair

ABPCA Bill Id:AB 2189 (

Author:Santiago) – As Amended Ver:March 15, 2018

SUBJECT: Hazardous substances: lead: cleanup: Exide Technologies facility

SUMMARY: Extends the expenditure deadline from June 30, 2018, to June 30, 2021, for the Department of Toxic Substances Control (DTSC) to cleanup properties contaminated with lead near the Exide Technologies (Exide) facility in Vernon, California and appropriates $12 million to DTSC for the investigation and cleanup of parkways near Exide. Specifically, this bill:

1) Extends the expenditure deadline from June 30, 2018, to June 30, 2021, for DTSC to expend $176 million to cleanup lead contaminated properties near Exide.

2) Appropriates $12 million from the Toxic Substances Control Account to DTSC for lead sampling and testing of public parkways in communities surrounding Exide.

3) Requires the lead sampling and testing of parkways to be completed by July 1, 2019.

4) Requires DTSC to post on its internet website the number of parkways sampled and tested, and update these numbers at least twice per month until July 1, 2019.

5) Authorizes the funds from the $12 million appropriation to be used for interim removal or remedial action measures of those parkways that pose a substantial danger to human health or the environment.

6) Requires the County of Los Angeles, to the extent feasible, to use any lead-based paint remediation federal funding or grant funding for lead-based paint remediation, to provide residents in the communities surrounding Exide with wraparound services, including, but not limited to: the abatement of lead-based paint hazards on residential properties; the production of a survey to residents to determine which county resources and programs are being accessed by households for lead remediation; ongoing blood-lead level testing of residents; and, providing residents educational literature and resources on the dangers of lead.

EXISTING LAW:

1) Creates the Hazardous Waste Control Law (HWCL), which authorizes DTSC to regulate the management of hazardous wastes in California. (Health and Safety Code (HSC) § 25100 et. seq.)

2) Establishes the Carpenter-Presley-Tanner Hazardous Substance Account Act (HSAA) program to provide for response authority for releases of hazardous substances, including spills and hazardous waste disposal sites that pose a threat to the public health or the environment. (HSC § 25300 et seq.)

3) Appropriates $176,600,000 from the Toxic Substances Control Account to DTSC and shall be available for expenditure through June 30, 2018. Makes these moneys available for any of the following: activities related to the cleanup and investigation of properties contaminated with lead in the communities surrounding Exide; job training activities related to the cleanup and investigation of the properties contaminated with lead in the communities surrounding Exide; and, 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 the communities surrounding Exide. (AB 118 Santiago, Chapter 10, Statutes of 2016)

4) Authorizes a loan from the state General Fund to the Toxic Substances Control Account under DTSC for activities relating to the investigation and cleanup of properties around Exide. Requires that all funds recovered from the potentially responsible parties shall be used to repay the loan made pursuant to this item. Authorizes the Director of the Department of Finance (Director), if the amount of moneys received from the cost recovery efforts is insufficient to fully repay the loan made pursuant to this item, to forgive any remaining balance if, at least 90 days before forgiving any balance, the Director submits a notification to the Joint Legislative Budget Committee. (SB 93, De León, Chapter 9, Statutes of 2016)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author,

"AB 2189 appropriates $12 million to DTSC for the purposes of testing the public parkways around the Exide Technologies facility in Vernon, California, for lead contamination.

The Exide Technologies battery recycling facility in Vernon, CA operated for over 90 years -- the last 33 on a temporary permit from DTSC. During the last three decades, DTSC documented over 100 violations including lead and acid leaks, an overflowing pond of toxic sludge, and hazardous levels of lead in the soil outside the facility. South Coast Air District also reported arsenic emissions from the facility creating an elevated cancer risk for as many as 110,000 people in the area stretching from Boyle Heights to Huntington Park.

The Exide facility finally closed in 2015 under an agreement with the federal government. Closure of the plant was a major milestone. But it is just step one in how we rectify the damage that has been incurred by these communities. The people of this area are sick, with long-term health implications, and they continue to be exposed to lead dust daily in their yards and houses.

The Budget Act of 2016 included $176.6 million in expedited funding (via my AB 118) to DTSC for the purposes of testing, clean-up, and job training in the communities surrounding Exide. Clean-up efforts covered by that measure include yards and homes, but do[es] not include the public parkways leading into contaminated homes.

AB 2189 proposes to appropriate $12 million to DTSC for the express purpose of lead testing of parkways around the Exide facility. The measure also requires the County of Los Angeles, to the extent feasible, to use lead-based paint remediation funding it has received from the U.S. Department of Housing and Urban Development to prioritize the cleaning of homes within the Exide area. Additionally, AB 2189 expresses the intent of the Legislature to examine federal, state, and local lead remediation thresholds to seek conformity to potentially direct additional resources to the impacted residents of this area."

California Hazardous Waste Control Law (HWCL): The HWCL is the state's program that implements and enforces federal hazardous waste law in California and directs DTSC to oversee and implement the state's HWCL. Any person who stores, treats, or disposes of hazardous waste must obtain a permit from DTSC. The HWCL covers the entire management of hazardous waste, from the point the hazardous waste is generated, to management, transportation, and ultimately disposal into a state or federal authorized facility.

Carpenter-Presley-Tanner Hazardous Substances Account Act (HSAA): State law provides DTSC with general administrative responsibility for overseeing the state’s responses to spills or releases of hazardous substances, and for hazardous waste disposal sites that pose a threat to public health or the environment. DTSC utilizes the HSAA for cleanup of contaminated sites and the HWCL for the regulation of hazardous waste sites. The HSAA is intended to provide compensation for out‑of‑pocket medical expenses and lost wages or business incomes resulting from injuries caused by exposure to hazardous substances. The HSAA provides DTSC with the authority, procedures, and standards to investigate, remove, and remediate contamination at sites; to issue and enforce a removal or remedial action order to any responsible party; and, to impose administrative or civil penalties for noncompliance with an order. Federal and state law also authorizes DTSC to recover costs and expenses it incurs in carrying out these activities.

Exide: 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 permit for more than 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. DTSC then ordered Exide to test and clean up residential properties and conduct its own testing.

DTSC's analysis of the Preliminary Investigation Area (PIA) 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.

On April 20, 2016, Governor Edmund G. Brown signed Assembly Bill 118 (Santiago, Chapter 10, Statutes of 2016) and Senate Bill 93 (De León, Chapter 9, Statutes of 2016) to appropriate $176.6 million to DTSC to expedite residential sampling and cleanup in communities within a 1.7-mile area surrounding the former Exide battery recycling facility in Vernon, California (Facility). The 1.7-mile area surrounding Exide is designated as the Preliminary Investigation Area (PIA).

In July 2017, DTSC released the Final Removal Action Plan (Cleanup Plan), and a Final Environmental Impact Report (EIR) related to the cleanup of properties in the PIA. The Cleanup Plan is focused on cleaning up approximately 2,500 residential properties, schools, parks, daycare centers, and child care facilities within the PIA. The PIA includes sections of the cities of Vernon, Bell, Huntington Park, Commerce, Maywood, Los Angeles (Boyle Heights neighborhood), and an area of unincorporated Los Angeles County (East Los Angeles neighborhoods). Additionally, the EIR analyzed a larger cleanup project, up to 10,000 properties in the PIA, and would allow DTSC to continue the cleanup of properties beyond the 2,500 initially selected properties as funds allow.

Below is the status of the sampling and cleanup of properties near Exide:

Parkways near Exide: Parkways are the soil and or grass area between the street and the property. DTSC evaluated whether or not to include the parkways as part of the EIR and chose not to include them because DTSC felt they did not post the same potential for exposure as a residential front or backyard. Who owns the parkways? It is complicated. Generally speaking the parkways are owned by each of the cities they are located in and the County in the unincorporated areas near Exide.

Cleaning up the parkways: During the cleanup planning process, including the development and adoption of the EIR for the cleanup of the residential properties there has been concern by residents near Exide that the failure to include the parkways in the EIR could mean that residents will be exposed to lead even if their properties are cleaned up. To remedy this concern, AB 2198 specifically directs DTSC to investigate and cleanup the parkways in the residential communities near Exide and provides $12 million for this effort.

Lead: Lead has been listed under California's Proposition 65's requirements as a substance that can cause reproductive damage and birth defects since 1987 and has been on the list of chemicals known to cause cancer since 1992. According to the Office of Environmental Health Hazard Assessment, lead has multiple toxic effects on the human body. Decreased intelligence in children and increased blood pressure in adults are among the more serious non-carcinogenic effects. There is no level of lead that has been proven safe, either for children or for adults. Exposure to lead is a significant health concern, especially for young children and infants whose growing bodies tend to absorb more lead than the average adult.

Lead cleanup inside homes: DTSC has authority to cleanup soil and groundwater contamination; however, they lack authority and expertise when it comes to cleaning up the interior of a home. The County of Los Angeles Department of Public Health (County) works with the state Department of Public Health with regard to childhood blood lead data and the County responds to elevated blood lead levels of children. AB 2189 seeks to use the County's expertise to provide additional public health services to residents who live near Exide. AB 2189 requires the County to provide residents near Exide with wraparound services including the abatement of lead-based paint on residential properties, a survey of residents to identify which County programs and services are being accessed by residents, ongoing blood-lead testing, and educational literature on the dangers of lead.

Need for extension of deadline to expend cleanup funds: On February 27, 2018, DTSC notified Environmental Quality Management (EQM) that it was terminating contract negotiations. This is significant because EQM was the winning bidder for the contract to cleanup approximately 2,500 properties near Exide. Given that this contract is terminated and DTSC currently does not have a contractor to complete the work, it is near impossible that the 2,500 properties will be cleaned up by the June 30, 2018 deadline in current law. AB 2189 will extend the deadline three years to utilize the $176 million already allocated for cleaning up residential properties near Exide.

Related legislation:

1) AB 118 (Santiago, Chapter 10, Statutes of 2016). Appropriate $176.6 million (Toxic Substances Control Account) to the Department of Toxic Substances Control (DTSC) to use for 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) SB 93 (De León, Chapter 9, Statutes of 2016). Amends the 2015-16 Budget Act to include a new transfer of funds to address urgent cleanup of lead contamination in the communities surrounding the Exide Technologies facility in the City of Vernon.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Josh Tooker / E.S. & T.M. /