Environment

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.

SACRAMENTO -- Attorney General Kamala D. Harris today announced a bill to combat blight was signed into law by Governor Edmund G. Brown Jr.

Assembly Bill 2314 by Assemblymember Wilmer Carter, D-Rialto, provides additional tools to local governments and receivers to fight neighborhood blight caused by vacant homes.

“The foreclosure crisis has had a devastating impact on many families and communities,” said Attorney General Harris. “This legislation will help victims of the crisis who remain in their homes, but have been forced to endure the negative economic, health and safety consequences of blight in their neighborhoods.”

“We need solutions to the problem of blight which threatens the health and safety of California communities hit hardest by the mortgage crisis,” said Assemblymember Wilmer Amina Carter, D-Rialto. “AB 2314 will ensure that local jurisdictions continue to have the tools to prevent and fight neighborhood blight due to foreclosures.”

The new law is part of the California Homeowner Bill of Rights sponsored by Attorney General Harris. The Homeowner Bill of Rights builds upon and extends reforms first negotiated in the recent national mortgage settlement between 49 states and leading lenders. Attorney General Harris secured up to $18 billion for California homeowners in that agreement, and has also built a Mortgage Fraud Strike Force to investigate crime and fraud associated with mortgages and foreclosures.

Empty homes as a result of foreclosure invite squatters, bug infestation, and crime in communities, which hurts the market value of neighboring homes. AB 2314 will give new homeowners additional time to remedy code violations and would help compel the owners of foreclosed property to pay for upkeep.

In July, two key parts of the Homeowner Bill of Rights were signed into law. Those bills, which came out of a two-house conference committee, provide protections for borrowers and struggling homeowners, including a restriction on dual-track foreclosures, where a lender forecloses on a borrower despite being in discussions over a loan modification to save the home. The bills also guarantee struggling homeowners a single point of contact at their lender with knowledge of their loan and direct access to decision makers.

Other components of the Homeowners Bill of Rights are pending in the state legislature. These will enhance law enforcement responses to mortgage and foreclosure-related crime, in part by empowering the Attorney General to call a grand jury in response to financial crimes spanning multiple jurisdictions. A bill to provide enhanced protections for tenants in foreclosed homes has passed both houses and is awaiting action by Governor.

For more information on the California Homeowner Bill of Rights, go to www.oag.ca.gov.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced a $1.2 million settlement with TravelCenters, a leading truck stop operator, over environmental violations at a truck stop and fuel tank system in Riverside County.

“Environmental regulations safeguard the public health,” Attorney General Harris said. “As Attorney General, I will defend those regulations and crack down on those who violate them.”

In March 2009, the Attorney General’s office joined a lawsuit filed by the Riverside District Attorney regarding serious and numerous violations at a truck stop in Coachella. TravelCenters operates 10 service area truck stops in California.

The Riverside County Department of Environmental Health, Hazardous Materials Division discovered numerous violations at a truck stop in Coachella – the most significant of which involved the tampering or disabling of sensors on the fuel tank monitoring system. These sensors are designed to detect the release of hazardous material at the earliest possible opportunity and activate warning alarms.

Other violations at the facility included failure to test and certify the underground storage tanks, failure to properly label and cover hazardous wastes and failure to train employees in a timely manner on safety procedures.

The $1.2 million settlement requires TravelCenters to pay $950,000 in cash for penalties, costs and expenses. TravelCenters receives a $250,000 credit for environmentally protective equipment installed at the Coachella facility that is more than currently required by state law.

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

SAN FRANCISCO --- Attorney General Kamala D. Harris today announced that she filed a motion to intervene in a lawsuit seeking to require the San Diego Association of Governments (SANDAG) Regional Transportation Plan to take a harder look at the region’s long-term transportation development options.

The lawsuit contends that the Environmental Impact Report (EIR) prepared for the plan does not adequately address air pollution and climate concerns and prioritizes expanding freeways while delaying public transit projects.

“The 3.2 million residents of the San Diego region already suffer from the seventh worst ozone pollution in the country,” said Attorney General Harris. “Spending our transit dollars in the right way today will improve the economy, create sustainable jobs and ensure that future generations do not continue to suffer from heavily polluted air.”

Attorney General Harris will file in San Diego Superior Court papers seeking to intervene in the California Environmental Quality Act (CEQA) action filed by the Cleveland National Forest Foundation and the Center for Biological Diversity. In September 2011, she sent a letter to SANDAG stating that the draft EIR on the Regional Transit Plan was inadequate under CEQA. The final EIR was not substantially different.

The AG’s motion contends that the EIR on the transit plan did not adequately analyze the public health impacts of the increased air pollution. The San Diego region already has a very high cancer risk from particulate matter emitted by diesel engines and vehicles and there is no analysis as to whether this risk will increase.

In addition, the EIR did not analyze the impact of air pollution on communities in San Diego that are already burdened by significant air pollution.

While greenhouse gases initially decrease in the plan, the EIR shows that after 2020, driving miles will increase and overall greenhouse gas emissions from driving will continue to increase at least until 2050.

The transit plan also prioritizes expanding or extending freeways and highways in its early years, largely deferring investment in public transit projects, such as transit, bicycle and foot paths, when funds may not be available.

Related documents are attached to the online version of this press release at http://oag.ca.gov/.

Additional information about the California Environmental Quality Act can be found at http://ag.ca.gov/globalwarming/ceqa.php