Oakland metal shredding firm settles alleged pollution violations for $4.1M

A metal shredding and recycling firm on Tuesday reached a settlement over allegations it broke environmental laws, potentially affecting West Oakland, the California Attorney General's Office and other agencies announced Wednesday. 

Schnitzer Steel at 1101 Embarcadero West is alleged to have released hazardous particulates and toxic air contaminants from its facility just outside West Oakland. The settlement, which is still subject to court approval, requires the company to pay $4.1 million.

Schnitzer Steel's location in Oakland is close to a West Oakland neighborhood that is a "disadvantaged community," according to the California Environmental Protection Agency. Disadvantaged communities are areas that suffer most from health, economic, and environmental problems.

"Communities in West Oakland already experience a disproportionate share of environmental pollution and some of the highest asthma rates in the state," Attorney General Xavier Becerra said in a statement.

He added that prosecutors will not sit back and let corporations pollute and make the situation worse.

According to Becerra's office, Schnitzer released particulate matter containing hazardous metals, such as lead, cadmium and zinc, into the area and neighboring areas.

Schnitzer Steel disputes the allegations, a company spokesperson said Wednesday.

The company noted that there's no evidence public health and welfare have been negatively affected by any emissions from Schnitzer Steel in Oakland. The company has facilities in other locations in the U.S. and Canada.

"As a member of the Oakland community for 50 years, Schnitzer is committed to reducing emissions and raising the standard for safety and sustainability," company officials said.

One of the two main issues in the complaint was a lint-like substance called light fibrous materials. Company officials said the materials result from recycling metal. The materials are lightweight and if not well-controlled can be blown around, the complaint and company officials acknowledge.

Prosecutors allege in the complaint that samples of the materials from the company's Oakland operations and off-site showed that the samples "typically contain concentrations of certain metals (e.g., lead, zinc, and copper) that exceed California hazardous waste regulatory thresholds for such metals."

But company officials said the materials are not respirable and do not pose a threat to human health according to industrial hygienists and state health experts. They argue the allegations made by regulators and prosecutors have to do with where the materials may be disposed.

Prosecutors said that after Schnitzer was told of the investigation, which began in 2012, it enclosed an area of its facility to minimize the dispersion of hazardous particulates resulting from its operations.

"As a result of this settlement, Schnitzer will address a root cause of pollution that has impacted West Oakland for years," Alameda County District Attorney Nancy O'Malley said in a statement.

The $4.1 million settlement consists of about $1.55 million in civil penalties, $2.1 million for environmental projects to specifically benefit communities in West Oakland and $450,000 to cover enforcement and investigative costs.

In addition to the $4.1 million, Schnitzer is required to inspect a half-mile radius around its facility to remove and dispose of byproducts from its shredding operations, install the latest air pollution control equipment, keep shredded metal from storm drains or other places that lead to waterways, maintain all equipment in good working order, and provide warnings to people who live or work near its facility that hazardous chemicals are present, and they are being exposed to them.