Environment

SAN FRANCISCO — Attorney General Kamala D. Harris today announced an $11.5 million settlement with Phillips 66 and ConocoPhillips. The settlement resolves law enforcement allegations that the companies violated state laws governing the proper operation and maintenance of underground storage tanks used to store gasoline for retail sale. The companies failed to comply with hazardous materials and hazardous waste laws at over 560 gasoline stations owned or operated by the companies in the state of California.

“Phillips 66 and ConocoPhillips failed to adequately monitor hazardous materials in large gasoline holding tanks, which endangered nearby water supplies," said Attorney General Harris. "This settlement holds Phillips 66 and ConocoPhillips accountable for this dangerous negligence and will ensure future compliance with environmental laws.”

The Attorney General’s office was joined in this enforcement action by Alameda County District Attorney Nancy E. O’Malley, El Dorado County District Attorney Vern Pierson, Merced County District Attorney Larry D. Morse II, Nevada County District Attorney Clifford Newell, Placer County District Attorney R. Scott Owens, San Bernardino County District Attorney Michael A. Ramos, and Stanislaus County District Attorney Birgit Fladager.

“My office is committed to protecting the environment and the public from potential exposure to hazardous materials,” says District Attorney O’Malley. “When corporations place our valuable water resources in jeopardy by failing to comply with environmental laws and regulations, they must be held accountable.  The settlement today achieves this important goal.”

The complaint, filed in January of 2013, alleges that – since 2006 – Phillips 66 and ConocoPhillips have violated anti-pollution laws with respect to underground storage tanks by failing to properly maintain leak detection devices, test secondary containment systems, conduct monthly inspections, train employees in proper protocol, and maintain operational alarm systems, among other violations.

A statewide investigation found violations of hazardous materials and hazardous waste laws and regulations at gas stations in 34 counties across the state. The companies have sold nearly all of their interests in the underground storage tank sites in California. The parties have agreed to resolve the matter, and the Alameda County Superior Court approved the final judgment.

Deputy Attorneys General Brett J. Morris and Jason P. Garelick handled the case for Attorney General Harris’ Environment Section.

A copy of the settlement agreement is attached to the online version of this release at oag.ca.gov.

SAN FRANCISCO – Attorney General Kamala D. Harris and the Regional Water Quality Control Board, San Francisco Bay Region, along with the U.S. Environmental Protection Agency and the U.S. Department of Justice, today announced a $7.5 million settlement with Lehigh Cement to resolve allegations of environmental violations. The settlement requires that the Lehigh cement plant near Cupertino reduce toxic discharges to Permanente Creek, a tributary to San Francisco Bay, and pay $2.55 million in civil penalties.

"Lehigh Cement discharged millions of gallons of industrial wastewater that flowed into the San Francisco Bay," said Attorney General Kamala D. Harris.  "This settlement holds Lehigh Cement accountable for its actions and will prevent future toxic discharges.  I thank our state and federal partners for their work to protect this precious resource and consumers from the serious environmental and health damage caused by water pollution.”

“Today’s Clean Water Act settlement, done jointly with the state of California, will remove selenium and other toxic substances from Permanente Creek and help protect the fragile and life-sustaining ecosystem of San Francisco Bay,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division.  “By bringing this older facility up to contemporary standards, and by pushing it to introduce cutting-edge treatment technology, the Department of Justice and our partners are helping create a level playing field, where all industry members are held to the same standards and no company can gain an economic advantage over its competitors by shortchanging environmental compliance.”

“EPA and California are working together to enforce the Clean Water Act and help restore San Francisco Bay,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Every action we take to remove selenium and other toxic metals improves water quality and leads to a healthier and more resilient Bay.”

“This settlement will result in important reductions in pollutant discharges, in facility upgrades, and in improvements to help protect and restore water quality in Permanente Creek and San Francisco Bay,” said Bruce Wolfe, San Francisco Bay Regional Water Board Executive Officer. “We will continue our multiagency efforts to regulate all water quality aspects of this facility, including installation of the full-scale wastewater treatment system, restoration of stream habitat, and control of stormwater runoff.” 

As part of the settlement, the cement plant, owned by Hanson Permanente Cement Inc. and operated by Lehigh Southwest Cement Co., will spend more than $5 million to install wastewater treatment to significantly reduce its selenium discharges. In addition, Lehigh and Hanson will be required to make other facility improvements to prevent future violations.

Over a five-year period, Lehigh’s limestone mine and cement plant discharged millions of gallons daily of quarry process water and stormwater polluted with thousands of pounds of sediment, and hundreds of pounds of selenium and other toxic metals, into Permanente Creek, in violation of the Clean Water Act.

The proposed Clean Water Act settlement, is subject to a 30-day public comment period and court approval. Details of the settlement are available at: http://www.justice.gov/enrd/Consent_Decrees.html

SAN FRANCISCO – Attorney General Kamala D. Harris and Alameda County District Attorney Nancy E. O’Malley today announced a settlement with AT&T to resolve allegations that hundreds of AT&T’s California facilities unlawfully disposed of hazardous waste and material over a nine-year period. As part of the settlement, AT&T will pay $23.8 million. In addition, AT&T will spend an estimated $28 million over the next five years to implement the enhanced environmental compliance measures required by the settlement.  The settlement and proposed judgment, filed in Alameda County Superior Court, requires approval from the court before becoming final.

“This settlement holds AT&T accountable for unlawfully dumping electronic waste,” Attorney General Harris said.  “The illegal disposal of hazardous waste can lead to serious environmental and health risks for California communities. AT&T will be required to implement strict compliance measures at its facilities that set an example for other companies to safeguard our communities against hazardous waste.” 

This is the first enforcement action in California against a telecommunications company for its management of electronic waste. 

“Today’s settlement marks a great victory for California’s ongoing efforts to ensure that hazardous waste is disposed of in a safe, legal and environmentally sustainable manner,” states Alameda County DA Nancy E. O’Malley. “Whether a small local business or a huge international company, my Office will pursue all necessary legal action against entities that pollute our environment.  This legal action should put others on notice that local and state agencies will continue to work together to investigate and prosecute violations against our environment.”

The civil enforcement action and proposed settlement against AT&T were filed today in Alameda County by Attorney General Harris and the District Attorney O’Malley, and is the product of a robust investigation by the two offices together with the Department of Toxic Substances Control.  The enforcement action claims that more than 235 AT&T warehouse and dispatch facilities throughout the state unlawfully handled and disposed of various hazardous wastes and materials over a nine-year period. Those hazardous wastes and materials primarily consisted of electronic equipment, batteries, aerosol cans, as well as certain gels, liquids and other items used by AT&T service technicians in delivering telephone, Internet and video services to residential and business customers in California.

In 2011, inspectors from the Alameda County District Attorney’s Office Environmental Protection Division and investigators from the California Department of Toxic Substances Control conducted a series of waste inspections of dumpsters belonging to AT&T warehouse and dispatch facilities. The inspections revealed that AT&T was routinely and systematically sending hazardous wastes to local landfills that were not permitted to receive those wastes.

Upon notice of the investigation, AT&T immediately agreed to cooperate and promptly implemented measures to halt the removal of regular trash until it could be inspected to remove any potentially hazardous wastes before they reached municipal landfills.   AT&T also has voluntarily dedicated additional resources toward environmental compliance and improving its hazardous and universal waste management compliance programs.  In addition to the $23.8 million settlement payment, AT&T expects to incur another $28 million over the next five years to implement enhanced environmental compliance measures required by the settlement.  For example, AT&T has implemented multiple layers of protection against electronic waste getting into its regular trash, including contractor inspections of “staging bins” before their contents are deposited in dumpsters, hundreds of unannounced dumpster inspections annually, and three independent audits over five years.

There are 13 AT&T facilities in Alameda County and all 13 facilities were found to be unlawfully disposing hazardous waste.

If approved by the court, under the final judgment, AT&T must pay $18.8 million in civil penalties and costs. An additional $3 million will fund supplemental environmental projects furthering consumer protection and environmental enforcement in California, and AT&T will pay a minimum of $2 million to enhance its environmental compliance. The telecom provider will be bound under the terms of a permanent injunction prohibiting similar future violations of law.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced a $750 million settlement with Powerex over claims arising from the 2000-2001 California energy crisis. The vast majority of the settlement money will go to ratepayers of California’s largest utilities.

According to testimony submitted by the Attorney General, Powerex engaged in market gaming by purchasing and exporting to Canada huge quantities of electricity California needed, and selling it back to California at exorbitant prices.

“Californians suffered through huge rate hikes and blackouts during the energy crisis,” Attorney General Harris said. “This settlement brings long-awaited compensation to California ratepayers for Powerex’s conduct.”

The settlement includes the Department of Water Resources’ California Energy Resources Scheduling (CERS) Division, the Public Utilities Commission and the state’s investor-owned utilities (IOUs), PG&E, Southern California Edison and SDG&E.

During the energy crisis, CERS purchased energy on behalf of California’s IOUs to help keep the lights on for customers. The Public Utilities Commission will determine how settlement funds will flow to the ratepayers of the investor-owned utilities.

SAN FRANCISCO -- Attorney General Kamala D. Harris today released a letter that she and eight other Attorneys General sent to Congress strongly objecting to the Chemical Safety Improvement Act (S.1009) in its current form.

The letter outlines their shared concern that S.1009, which amends the Toxic Substance Control Act (TSCA), jeopardizes public health and safety by severely limiting states’ long-standing power to protect the public from toxic chemicals.

“This bill puts Californians at risk from toxic chemicals and inhibits the development of safer, cleaner products,” said Attorney General Harris. “California is a national leader in protecting public health and the environment from dangerous chemicals–and we aim to stay that way.”

California was joined by Attorneys Generals from Connecticut, Delaware, Maryland, Massachusetts, New Mexico, Oregon, Vermont and Washington. The letter outlines shared concern that S.1009’s preemption provisions are too broad.

In California the following programs, among others, are at risk under the current version of S.1009:

• The statewide ban on certain flame retardants.
• Laws limiting the use of volatile organic compounds in consumer products—a significant cause of ozone pollution and asthma.
• Proposition 65, which has resulted in manufacturers disclosing dangerous chemicals and reformulating products to reduce their levels. Examples include the reduction of lead in children’s bounce houses, playground structures and costume jewelry.
• California’s Green Chemistry Program, which promotes the use of safer alternatives to toxic chemicals in everyday products.

Michael Troncoso, Senior Counsel to Attorney General Harris, will testify Wednesday on the bill in front of the U.S. Senate’s Committee on Environment and Public Works.

Last month, Attorney General Harris’ office sent a letter to U.S. Senator Barbara Boxer outlining initial concerns about S.1009.

The Attorneys General letter can be found attached to this release at www.oag.ca.gov/news

LOS ANGELES -- Attorney General Kamala D. Harris today announced an agreement with Tesoro to preserve California jobs, help protect consumers from gas price spikes, and require environmental retrofitting of the state’s largest oil refinery.

“These commitments will protect jobs for potentially thousands of Californians, ensure that California’s oil and gas markets remain competitive for years to come, and lead to a reduction in greenhouse gases and emissions,” Attorney General Harris said.

Tesoro’s August, 2012 acquisition of BP’s Carson refinery was subject to detailed investigation by the California Attorney General’s Office and Federal Trade Commission.

In a letter to the Chair of the California Energy Commission, Attorney General Harris provides details of the agreement reached between the state and Tesoro, which include:

• A guarantee to preserve more than 1,000 jobs at the Wilmington refinery for the next two years.
• Joint monitoring by the Attorney General’s office and the California Energy Commission of gas pricing, volume and refinery capacity.
• Requirements that Tesoro implement safeguards against price spiking from refinery outages through increased capacity for production from other regional refineries.
• A commitment that Arco stations acquired by Tesoro will remain a low-cost fuel provider for California consumers.
• An environmental retrofit of both the Wilmington and Carson refineries to reduce greenhouse gas emissions.

A copy of the letter is attached to the electronic version of this release at http://oag.ca.gov/news .

LOS ANGELES -- Attorney General Kamala D. Harris today announced a settlement in a lawsuit challenging the approval of an industrial project in Riverside County that would cause additional diesel truck traffic near a community already disproportionately affected by diesel exhaust and noise pollution.

As part of today's agreement, the City of Jurupa Valley and other parties will take action to significantly reduce the project's air quality impacts on Mira Loma Village, a primarily Hispanic residential community. 

"It is a false choice to suggest that in order for California business to thrive, public health must suffer," Attorney General Harris said. "It is my intention that this settlement will provide a model for local governments, developers and communities to work together to ensure responsible development benefiting all Californians."

In September 2011, Attorney General Harris joined the California Environmental Quality Act (CEQA) action filed by the Center for Community Action and Environmental Justice to set aside Riverside County's approval for the Mira Loma Commerce Center, which would consist of a million square feet of warehouses and industrial buildings.

The suit outlined the county's failure to adequately analyze and mitigate the project's impacts on Mira Loma Village residents in light of the already serious health and environmental risks suffered by the community.

The City of Jurupa Valley, which was incorporated in 2011, now has jurisdiction over the project site. The city and the project developers agreed as part of today's settlement to implement and fund the following:

-          Proceedings for preparation of an Environmental Justice Element of the City's General Plan;

-          Installation of air filtration systems in the homes of Mira Loma residents;

-          Air quality monitoring in Mira Loma Village;

-          Landscaping in setback areas with plants with potential to remove or reduce exposure to diesel particulate emissions; and,

-          A "green" project site, including a 100kW capacity solar photovoltaic system, LEED Silver certified project buildings, and electric vehicle charging stations.

"We are extremely impressed with the cooperative process that took place to arrive at this agreement," said Penny Newman, Executive Director of the Center for Community Action and Environmental Justice. "This settlement has created the 'gold standard' for settlements in addressing impacts through a model process of how diverse stakeholders can come together and cooperatively find comprehensive solutions."

The settlement also requires the City of Jurupa Valley to conduct proceedings to adopt an ordinance to prohibit heavy trucks on the road adjacent to Mira Loma Village, to implement an anti-idling enforcement program and to consider environmental justice during CEQA review for future projects in the City.

Since the 1990s, Riverside County has approved a series of warehouse projects that are now under the City of Jurupa Valley's jurisdiction. Thousands of trucks travel to and from the ports of Los Angeles and Long Beach to distribution centers and warehouses in the City of Jurupa Valley and other areas of Riverside County each day. These trucks spew diesel exhaust causing harmful health impact to residents living near the freeways and roads on which the trucks travel. Diesel exhaust is listed as a known carcinogen under Proposition 65. The levels of particulate matter and ozone pollutants in the Jurupa Valley area are significantly higher than both California and federal air quality standards.  

This settlement will help reduce the public health impacts caused by the project and existing warehouse facilities on the overburdened community of Mira Loma Village. This settlement serves as a model for how other local governments can encourage smart development while also addressing environmental public health in their communities.

A copy of the consent judgment is attached to the press release.

OAKLAND-- Attorney General Kamala D. Harris filed a civil lawsuit on February 1 against BP West Coast Products, BP Products North America, Inc. and Atlantic Richfield Company for allegedly violating state laws governing hazardous materials and hazardous waste by failing to properly inspect and maintain underground tanks used to store gasoline for retail sale at more than 780 gas stations in California.

"Safe storage of gasoline is not only common sense, it is essential to protecting the integrity of California's groundwater resources," Attorney General Harris said. "California's hazardous waste laws safeguard public health and this lawsuit ensures proper maintenance of the tanks that store fuel beneath California’s communities."

Attorney General Harris was joined in this enforcement action by Alameda County District Attorney Nancy E. O'Malley, Glenn County District Attorney Robert Maloney, Merced County District Attorney Larry D. Morse II, Nevada County District Attorney Clifford Newell, Placer County District Attorney R. Scott Owens, San Bernardino County District Attorney Michael A. Ramos, Stanislaus County District Attorney Birgit Fladager and Yuba County District Attorney Patrick McGrath.

The complaint filed February 1 in Alameda County Superior Court alleges that, since October 2006, the BP companies and ARCO have improperly monitored, inspected and maintained underground storage tanks used to store gasoline for retail sale. The complaint alleges that the defendants tampered with or disabled leak detection devices, and failed to test secondary containment systems, conduct monthly inspections, train employees in proper protocol, and maintain operational alarm systems, among other violations. The lawsuit also alleges that the defendants improperly handled and disposed of hazardous wastes and materials associated with the underground storage tanks at retail gas stations throughout the state.

The complaint follows a recent statewide investigation led by Attorney General Harris's office, which found violations of hazardous materials and hazardous waste laws and regulations at BP gas stations in 37 counties across the state.

In January 2012, the Attorney General's office filed a similar lawsuit against Phillips 66 and ConocoPhillips:

http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-sues-phillips-66-and-conocophillips-over.

Deputy Attorney Generals Brett J. Morris and Deborah Halberstadt are prosecuting the case for Attorney General Harris's Environment Section.

A copy of the complaint, which contains the addresses of the gas stations, is attached to the online version of this release at http://oag.ca.gov.

SAN FRANCISCO -- Attorney General Kamala D. Harris today filed a civil lawsuit against Phillips 66 and ConocoPhillips for allegedly violating state law by failing to properly inspect and maintain underground tanks used to store gasoline for retail sale at more than 560 gas stations in California.

"The state's hazardous waste laws help protect our residents from contaminated groundwater," Attorney General Harris said. "This lawsuit safeguards public health by ensuring proper maintenance of the tanks that store fuel beneath many California communities."

The Attorney General's office was joined in this enforcement action by Alameda County District Attorney Nancy E. O'Malley, El Dorado County District Attorney Vern Pierson, Merced County District Attorney Larry D. Morse II, Nevada County District Attorney Clifford Newell, Placer County District Attorney R. Scott Owens, San Bernardino County District Attorney Michael A. Ramos, and Stanislaus County District Attorney Birgit Fladager.

The complaint filed today in Alameda County Superior Court alleges that, since November 2006, Phillips 66 and ConocoPhillips have improperly monitored, inspected and maintained underground storage tanks used to store gasoline for retail sale. The complaint alleges that the defendants tampered with or disabled leak detection devices, and failed to test secondary containment systems, conduct monthly inspections, train employees in proper protocol, and maintain operational alarm systems, among other violations. The lawsuit also alleges that the defendants improperly handled and disposed of hazardous wastes and materials associated with the underground storage tanks at retail gas stations throughout the state.

A statewide investigation led by the Attorney General's office found violations of hazardous materials and hazardous waste laws and regulations at gas stations in 34 counties across the state.

Deputy Attorney Generals Brett J. Morris and Deborah Halberstadt are prosecuting the case for Attorney General Harris' Environment Section.

A copy of the complaint is attached to the online version of this release at http://oag.ca.gov.

BAKERSFIELD -- Attorney General Kamala D. Harris today announced a plea agreement with the owner of a garbage collection company that illegally dumped Los Angeles County garbage in a Kern County landfill.

Paul Michael Benz, 68, owner and operator of Benz Sanitation, pled guilty today in Kern County Superior Court to one felony charge of presenting a fraudulent claim for payment to the government. As part of today’s plea agreement, Benz will pay nearly $2.4 million in restitution, and take other actions to prevent illegal conduct in the future.

Between January 2008 and September 2012, Benz Sanitation had a waste removal services contract with Kern County that allowed it to take Kern County’s residential garbage and deposit it at local landfills at no charge. During this time, Benz Sanitation also contracted with almost 1,500 residents and businesses in Los Angeles County to remove their residential and commercial garbage. Benz then manipulated these contracts by fraudulently mislabeling the Los Angeles County garbage as originating in Kern County so that he could dump it free of charge in Kern County’s landfills.

Benz Sanitation’s dumping practices were first questioned when deposits in the local Kern County landfill dropped dramatically after the City of Ridgecrest ended its contract with Benz and hired a new garbage collection company. Further investigation revealed that Benz Sanitation was hauling garbage from Los Angeles County to the Material Recovery Facility in Kern County and falsely reporting that the garbage had originated in Kern County, defrauding the county of approximately $2 million.

As a result of today’s plea agreement, Benz is required to leave the company and pay $2,375,000 in restitution. He will also be placed on felony probation. To prevent future illegal conduct, Benz Sanitation will place GPS trackers on all vehicles to provide location data to Kern County. County officials will randomly audit the company’s records, will review weight tickets in the company’s scale house, and barcode all vehicles by route.

The California Attorney General’s Office was initially asked to look into CalRecycle’s concerns about violations of statewide disposal reporting in Kern County. The office then coordinated with local law enforcement agencies during the investigation of Benz and his company.

A copy of the agreement is attached to the electronic version of this release at http://oag.ca.gov/news.