Exide to Close Lead Acid Battery Recycling Facility in California and Pick Up $50m Clean-up Bill

Lead acid battery manufacturing and recycling firm, Exide Technologies, is to immediately and permanently close a battery recycling facility in Vernon, California, and to pay $50 million to clean-up the site and surrounding neighbourhoods, which have been affected by environmental toxins for close to a century following an agreement with the U.S. Department of Justice (DOJ). The DOJ explained that the agreement calls for Exide to permanently close the plant which, the company admits, produces a host of hazardous wastes, including lead, cadmium, arsenic and volatile organic compounds. “The reign of toxic lead ends today,” asserted acting United States attorney, Stephanie Yonekura. “After more than nine decades of ongoing lead contamination in the City of Vernon, neighbourhoods can now start to breathe easier.” The department added that Exide had planned to resume operations at the recycling facility as early as next month, but the agreement calls for the facility to be shuttered, demolished and cleaned up. Exide is also required to make expedited payments that will complete funding of a $9 million trust fund that will be used to clean up 216 nearby residences in the Boyle Heights neighborhood and the City of Maywood. The deal to close the recycling facility estimates that Exide’s direct costs of compliance are well in excess of $100 million. These costs include the company walking away from recent improvements to the facility and incurring new costs for lead and plastic that must now be purchased to manufacture new batteries. Non Prosecution Agreement According to the DOJ the United States Attorney’s Office entered into the Non Prosecution Agreement (NPA) because negotiations with the bankrupt company revealed that even the threat of a criminal prosecution would almost certainly force the liquidation of the company. The department said that the NPA opens the door to new funding for the company, which employs thousands of workers in the U.S. and around the world, and ensures that money will be available to pay for the clean-up of the Vernon site and several other toxic sites around the U.S. Without the NPA, prosecutors believed that Exide would have ceased to exist as a viable company and responsibility to clean up toxic sites such as the recycling plant in Vernon would revert to governmental agencies. “The agreement with Exide ensures that the Vernon site will be permanently closed, while guaranteeing that the company will survive to adequately finance the clean-up of this long-suffering community,” said Yonekura. Jared Blumenfeld, EPA’s regional administrator for the Pacific Southwest commented: “The closure of this facility is a victory for the residents of Vernon who have suffered from decades of toxic pollution. This historic action was made possible because of the tireless efforts of local community members, including parents, environmental groups and religious leaders. Today’s announcement shows that companies who fail to meet federal environmental laws will face serious consequences.” Polluter pays In addition to the commitments to close the Vernon facility and pay for associated clean-up costs, the DOJ said that Exide has acknowledged criminal conduct, including the illegal storage, illegal disposal, illegal shipment and illegal transportation of hazardous waste. For example, the NPA states: “Exide admits that it knowingly and willfully caused the shipment of hazardous waste contaminated with lead and corrosive acid in leaking van trailers owned by Wiley Sanders Truck Line, Inc. and operated by Lutrel Trucking, Inc. and KW Plastics of California, Inc., from the [Vernon] facility to Bakersfield, California, a significant number of times over the past two decades, in violation of federal law. Each incident could be charged as a felony violation of the federal Hazardous Materials Transportation Act.” The department explained that admissions of criminal violations is important because Exide agreed that it could be prosecuted for the felony environmental offenses it previously committed at any time over the next 10 years if it fails to abide by the terms of the NPA. A violation would include failing to adequate finance clean-up efforts at the recycling facility, a program that will be overseen by the California Department of Toxic Substances Control (DTSC). The DOJ added that the NPA with Exide is the result of an investigation by the U.S. Environmental Protection Agency – Criminal Investigations Division and the U.S. Department of Transportation – Office of the Inspector General. Read More Exide Agrees to Upgrade Work at California Car Battery Recycling Facility Milton, Georgia based automotive battery manufacturing and recycling firm, Exide Technologies (OTCQB: XIDEQ) is to make enhancements to its Vernon, California battery recycling facility following new orders from the South Coast Air Quality Management District (AQMD). Trash Talk - Lead Acid Battery Recycling in the US With a limited lifespan, lead acid batteries such as though found in cars, form a significant and valuable waste stream. 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