California agency orders battery recycler to fund cleanup

The California Department of Toxic Substances Control (DTSC) has announced an enforcement order against Exide Technologies, headquartered in Milton, Georgia,  that requires the battery recycling company to set aside sufficient funds to close its Vernon, California, facility, when that event occurs. Additionally, the DTSC has ordered the company to take measures immediately to address contamination in the community surrounding the Vernon smelter.

The DTSC order requires Exide to set aside $38.6 million to cover expected closure costs, an increase of more than $27.5 million over the previous amount.

The DTSC order also requires Exide to undertake the cleanup of residential areas affected by lead contamination from the secondary smelter and to establish a trust fund of $9 million for the cleanup.

In addition, Exide must pay $526,000 in penalties for recent hazardous waste violations and take immediate steps to correct the violations. The company also must reimburse $760,000 of DTSC’s costs related to its oversight of the facility.

“This order is a critical and necessary step that outlines the legal obligations that compel Exide to protect the health of people in the community and provide the funds to do this important work,” says DTSC Acting Director Miriam Ingenito.

Exide has been in Chapter 11 bankruptcy protection since June 2013.

According to the order, Exide must obtain the permission of the bankruptcy court to comply with the order. Exide recently filed for that authorization.

The order does not affect DTSC’s upcoming decision on Exide’s hazardous waste facility permit application. Exide is currently operating the facility under an interim authorization from DTSC and has applied to DTSC for a full hazardous waste facility permit.

DTSC will make a decision on that permit application by Dec. 31, 2015, as required by Senate Bill 712 (Lara).

The DTSC’s order outlines steps that Exide must take to protect public health and to comply with California’s comprehensive hazardous waste laws. Specifically, the order requires:

• cleanup of residential properties in Boyle Heights and Maywood, California, which were identified as having the highest likelihood of being affected by airborne emissions coming from the Exide facility (The order requires Exide to set aside $9 million to clean up contaminated properties in these areas. Soil testing for lead in these two areas has begun, and sampling on 104 homes has been completed. Cleanup work in contaminated residential yards in these areas will be conducted under a work plan recently circulated for public comment and posted on DTSC’s website.);

• facility cleanup in the event of closure (Exide must set aside $38.6 million to safely close the Vernon facility, whenever that occurs. Currently, $11.1 million has been set aside for this purpose; the order requires an additional $27.5 million be placed into a secure trust fund.);
• correction of violations (Exide must immediately fix and strengthen safety systems at the facility and pay $526,000 for past hazardous waste violations. Violations included the absence of a leak detection system in a containment building and failures to manage hazardous waste as required under California law. Exide’s lead-smelting operations are currently shut down while the company complies with orders from the South Coast Air Quality Management District. Under the order, Exide cannot resume the operations until it corrects the violations identified by the DTSC.); and
• additional investigation and cleanup (Exide must investigate whether additional contamination exists at the Vernon facility and in the surrounding area, and clean up the contamination that is found. Exide must also establish financial guarantees for the necessary cleanup work.).
   

Thomas Strang, Exide vice president of environmental health and safety, Americas, says, “The department’s order is tough and robust, requiring Exide to comply with numerous stringent actions as the company seeks to obtain its permanent permit. Exide is committed to working with regulators, operating a premier recycling facility, putting our employees back to work and engaging transparently with the community.

“We recognize the community’s concerns and have committed to clean residential properties and work efficiently to minimize disruptions to residents,” Strang adds.

Exide also has committed to fund additional future off-site industrial and on-site cleanup, the DTSC says.