BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 118| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 118 Author: Santiago (D), et al. Amended: 4/5/16 in Senate Vote: 21 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: Hazardous substances: cleanup: Exide Technologies facility 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: AB 118 Page 2 1)Appropriates $176.6 million 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; and 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 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. AB 118 Page 3 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: Yes Fiscal Com.:YesLocal: No SUPPORT: (Verified4/5/16) AB 118 Page 4 None received OPPOSITION: (Verified4/5/16) None received Prepared by:Catherine Freeman / B. & F.R. / (916) 651-4103 4/7/16 8:38:00 **** END ****