BILL NUMBER: AB 2457AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 16, 2012 AMENDED IN ASSEMBLY MARCH 29, 2012 INTRODUCED BY Assembly Member Valadao FEBRUARY 24, 2012 An act to add and repeal Section 42173 Article 3.5 (commencing with Section 42180) of Chapter 3.5 of Part 3 of Division 30 of the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST AB 2457, as amended, Valadao. Solid waste: vehicles: appliances. The California Integrated Waste Management Act of 1989 requires materials that require special handling, as defined, to be removed from major appliances and vehicles in which they are contained prior to crushing for transport or transferring to a baler or shredder for recycling. Recycling residue used as solid waste landfill daily cover is required to meet certain performance standards and requirements specified in the regulations adopted by the Department of Resources Recycling and Recovery (CalRecycle). This bill would require CalRecycle, by March 31, 2013, to establish a working group to conduct a study of the logging of whether discarded vehicles and appliances , as defined, and would require the Director of CalRecycle to submit the report to the Legislature, by October 31, 2013, including recommendations as necessary to ensure the sustainability of the California auto shredding industry that are compacted and exported for the purposes of recycling are being managed in compliance with law. The bill would require the working group, by October 31, 2014, to prepare and submit to the director a report of its findings and make recommendations to address the findings. The bill would require CalRecycle to post the report on its Internet Web site . The bill would make this report requirement inoperative on October 31, 2017, and would repeal the provision on January 1, 2018. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Article 3.5 (commencing with Section 42180) of Chapter 3.5 of Part 3 of Division 30 of the Public Resources Code is repealed. Article 3.5. Report on Disposal of End of Life Vehicles and Appliances 42180. (a) On or before March 31, 2013, the department shall convene an interagency working group consisting of staff of the department, the Department of Toxic Substances Control, and other appropriate departments within the California Environmental Protection Agency or the Natural Resources Agency to determine whether the disposal of end-of-life vehicles and appliances regulated pursuant to this chapter that are being compacted and exported for purposes of recycling is being managed in the state in compliance with law. (b) On or before October 31, 2014, the working group shall prepare and submit to the director a report of its findings. The report shall include specific findings on all of the following: (1) The manner in which the discarded end-of-life vehicles and appliances are being managed in accordance with state and federal law prior to export. (2) The risks to public health and the environment posed by the mismanagement of the end-of-life vehicles and appliances in the state prior to export. (3) The economic impacts of improper management of the end-of-life vehicles and appliances on the state's scrap metal recycling infrastructure. (4) Any other issues the working group deems appropriate regarding the disposal of the end-of-life vehicles and appliances. (c) The report shall include recommendations, as necessary, to address the findings. (d) The department shall post the report on its Internet Web site. This article shall remain in effect only until January 1, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date. SECTION 1. The Legislature finds and declares all of the following: (a) Companies engaged in the shredding of end-of-life vehicles, major appliances, and other recyclable metal products in California provide an important service to the residents of the State of California by ensuring that millions of vehicles and appliances, and millions of tons of miscellaneous scrap metal, that are discarded every year in the state are beneficially recycled in a manner that is protective of human health and the environment. (b) Scrap metal recycling operations conserve valuable landfill space, prevent the landscape from becoming littered with abandoned vehicles and appliances, and reduce the need to mine ore from the ground in order to manufacture steel and other new metal products. The scrap metal recycling industry is also a significant source of jobs and a major contributor to the state's economy. (c) In recent years, other companies have begun to purchase end-of-life vehicles and appliances and use portable equipment to compact them into "logs" without first having properly drained automotive fluids from the vehicles and appliances, removed mercury switches as required by law, or otherwise "de-polluted" these items. The logs are placed in seagoing containers, along with all wastes generated from the logging process, and are exported overseas for shredding in other countries. These companies compete unfairly with the California auto shredders for vehicles and appliances and pose a serious threat to public health and the environment. (d) The companies that engage in the "logging" operations specified in subdivision (c) do not comply with California environmental standards and enjoy a significant economic benefit by avoiding environmental compliance costs. It is contrary to the policy of the State of California to allow the export of vehicles and appliances that have not been de-polluted, resulting in potential exposure of individuals and the environment to harmful substances when these items are logged and transported in California and California waters. SEC. 2. Section 42173 is added to the Public Resources Code, to read: 42173. (a) For purposes of this section "logging" means the purchase end-of-life vehicles and appliances and the use of portable equipment to compact the end-of-life vehicles or appliances into logs without draining automotive fluids from the vehicles, or removing mercury switches and other materials that require special handling from the vehicles and appliances, and subsequently transporting those materials within the state, for eventual export to a foreign county for the shredding and recovery of metals. (b) On or before March 31, 2013, the department shall conduct a study of the logging of discarded vehicles and appliances. The study shall address the environmental risks associated with the logging of vehicles and appliances that have not been handled in accordance with the requirements of Section 42175 prior to compaction, the effect that logging and foreign export of these vehicles and appliances have on the California auto shredding industry, and any other effects of logging on commerce and waste management in California. (c) On or before October 31, 2013, the director shall submit a report to the Legislature on the findings of the study required by subdivision (b) and shall present recommendations as necessary to ensure the sustainability of the California auto shredding industry. (d) The department shall perform the tasks specified in subdivisions (b) and (c) using existing staff and resources. (e) A report to the Legislature pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (f) This section shall remain operative only until October 31, 2017, and as of January 1, 2018, is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date.