Update: California Governor Gavin Newsom vetoed this bill on October 13. We are waiting to see how the Legislature responds and will update this article accordingly.
The California Legislature has approved a measure establishing new management standards for metal shredding facilities. Senate Bill (SB) 404 carries significant implications for shredding facilities. It will replace existing requirements, accelerate compliance timelines, impose potential facility upgrades, and overall be more broadly applicable than previous regulations.
This Delve outlines the general permit application requirements under SB 404 and the timeline for submittals.
Summary of SB 404 Legislative Requirements
SB 404 establishes regulations and permit requirements for metal shredding facilities administered by the Department of Toxic Substances Control (DTSC). They are comparable in scope to hazardous waste treatment, storage, and disposal facility operating permit requirements. The measure replaces existing requirements for metal shredding facilities and repeals any non-hazardous waste determinations received before the bill’s effective date. SB 404 requires all metal shredding facilities to submit a notice of intent to apply for a permit to DTSC within 30 days of the bill’s effective date. Facilities must also submit a permit application for metal shredding operations within six months of submitting the notice of intent. The legislation specifies the information required for permit applications and directs DTSC to develop policies and regulations related to metal shredding facility permits by January 1, 2027.
SB 404 requires the following information as part of metal shredding facility permit applications:
- A description of the facility, processing operations, and feedstock and waste management operations
- Inbound source control measures to prevent shredding of prohibited materials
- Inspection plan
- Fire prevention, detection, and response plan
- Closure plan
- Housekeeping plan
- Inventory management plan
- Security plan
- Preparedness and prevention plan
- Contingency plan
- Off-site or out-of-state metal shredder aggregate transportation and processing plan
- Relevant site-specific characteristics
- All existing compliance plans
- Corrective action plan for existing releases, if necessary
Permit applications also require personnel training procedures, an inspection schedule, stormwater testing procedures, documentation and reporting procedures and schedules, a closure cost estimate, and establishment of financial assurance.
Before submitting a permit application, the applicant must hold at least one public meeting or other community engagement activity approved by DTSC to solicit input from the community. Notice of this meeting must be given at least 30 days in advance.
The information listed for inclusion in metal shredding facility permit applications, as established by SB 404, is similar in scope to the Resource Conservation and Recovery Act (RCRA) Subtitle C permit application information requirements. Importantly, DTSC’s approval of a facility permit application will be considered a discretionary decision subject to the California Environmental Quality Act.
The Importance of SB 404
SB 404 carries significant implications for metal shredding facilities in California.
BROAD APPLICABILITY
The legislation does not carve out clear distinctions between large metal shredding operations and smaller entities. As a result, SB 404 requirements are broadly applicable across the industry.
NEW REGULATIONS
On the effective date, SB 404 will replace select existing metal shredding facility regulatory mechanisms. While facilities are already subject to regulatory oversight and compliance hurdles from other agencies, this bill introduces a new permitting framework administered by DTSC. Importantly, the framework is modeled after hazardous waste facility permit requirements under the RCRA Subtitle C. For many operators, this will be an unfamiliar regulatory environment with new expectations for documentation, planning, and community engagement.
ACCELERATED COMPLIANCE TIMELINE
This legislation requires rapid compliance once the effective date is triggered. Before submitting a permit application, the applicant must hold at least one DTSC-approved public meeting or other community engagement activity to solicit input from the community. Metal shredding facilities, with the exception of small facilities as defined by 25095.1(s), are required to submit a notice of intent to apply for a permit to DTSC within 30 days of the effective date of this legislation and to submit a permit application within six months after submitting the notice of intent. Small metal shredding facilities must submit a permit application within one year after submitting the notice of intent to apply.
OPERATIONAL AND FINANCIAL IMPACTS
Permit application requirements extend beyond standard operating plans to include closure cost estimates, corrective action planning for any historical releases, and establishment of financial assurance. These requirements could have material impacts on facility operations, closure planning, and financial stability.
POTENTIAL FACILITY UPGRADES
The bill has new requirements for continuous temperature monitoring of all feedstock and metal shredder aggregate piles using infrared cameras or equivalent equipment. Included are several guidelines for structural cover and impervious flooring. (Existing law already requires facilities to develop and implement facility-wide fence-line air quality monitoring on or before January 1, 2027.)
Facility Preparation for SB 404
The bill has been presented to California Gov. Gavin Newsom, with the effective date pending his signature. The effective date will trigger several milestones as summarized below:
- Prepare a Notice of Intent to Apply for a Metal Shredding Facility Operating Permit or a closure plan if operations are anticipated to be discontinued.
- Prepare a permit application public information meeting or other community engagement activity at a location in the vicinity of the facility for submittal to DTSC for approval.
- Begin preparation of a Metal Shredding Facility Operating Permit application.
While the framework is new to many in the metal shredding industry, it closely mirrors requirements that hazardous waste treatment, storage, and disposal facilities have long navigated. Trihydro has extensive expertise in this regulatory arena and can help facilities translate these unfamiliar requirements into actionable compliance strategies. Facilities that act early will be better positioned to manage costs, avoid compliance pitfalls, and build constructive relationships with DTSC.
If you have questions regarding the pending metal shredding facility permit application requirements, reach out to Trihydro’s Industrial and Chemical Services specialists for guidance and support.
