Scrap Metal SA Recycling Seeks 10 year extension at Port of LA

The facility does not intend to change its operations, but changes in environmental regulations since its previous lease may force it to make changes.

In March 2023, the Port of Los Angeles released a notice of preparation for a 10-year lease extension for SA Recycling, the only metal export recycler in the harbor. The notice also served as an initial study for the lease extension. SA Recycling, which recycles scrap metal, has been at berths 210 and 211 at the port since 1962. The facility received an environmental impact report, or EIR, in 1996. SA Recycling’s contract with the port will expire in August 2024. Because of this, the port is doing a supplemental environmental impact report.

“We’re in the middle of negotiating with the Port of Los Angeles [for] our lease,” said Moises Figueroa, regional general manager for SA Recycling’s LA facility.

Figueroa predicted getting the lease finalized would take an additional six to eight months. The process has taken three years so far. If the new lease is not approved before the current lease expires, SA Recycling will have a monthly lease until the port decides what to do.

The lease is not intended to make any major changes to the facility’s operations.

“Upgrades will be only technology, or new equipment available, like running electric equipment,” Figueroa said.

However, in 1996, there were several things that were not measured in the EIR that will be measured in the supplemental EIR. Since then state and federal ambient air quality standards have both been revised.

“Therefore, to adequately assess impacts from ongoing operations at the proposed Project site, additional analysis will be conducted to determine if the proposed Project could result in a new direct or cumulatively considerable, and therefore significant, net increase in air emissions,” the port’s notice of preparation for the lease extension states.

Other things that were not considered in the original EIR but will be considered in the new one include ambient air quality, and off-site emissions from ships, trucks and rail transit.

The facility shreds 3,000 to 4,000 tons of metal a day, Figueroa said. About 50% to 60% is run through an electric mega shredder, which the facility has used since 2006. The shredder is only run at night, when the amount of power it generates is not impactful to the city’s power grid. The facility also wets down all material that it shreds. About 50% to 60% of the water used is recycled. 

“We re-use most of the water captured on the ground, most of the time, clean it up, and then reuse it again,” Figueroa said. “So any time the material comes, it is all dust-free.”

Figueroa said SA Recycling has worked with the Dept. of Toxic Substances Control, or DTSC, on all facility improvements. These improvements include enclosures, and the facility’s wetting system for scrap metal. 

“We feel confident that we’re not affecting any [metal particles] in the air,” Figueroa said. 

In March 2021, DTSC filed a civil complaint against SA Recycling, alleging that the company unlawfully stored and transported hazardous materials, including lead. Inspectors from DTSC and the Los Angeles Fire Department found that the Los Angeles facility did not have permits from DTSC to store and treat hazardous materials. 

“In Los Angeles, inspectors found elevated levels of lead and copper in metal piles, 144 55-gallon drums of used oil with perforated or unsealed lids and they had stored shredded paper from oil filters in a waste pile,” DTSC’s press release from March 2021 states.

The port’s notice of preparation for the lease extension also mentions SA Recycling’s dealings with DTSC.

“On October 18, 2021, DTSC issued a Corrective Action Order (CAO) to SA Recycling directing that corrective action to investigate and remediate any releases of hazardous wastes or constituents from fifteen solid waste management units on site and one and area of concern off site,” the notice of preparation state. “SA Recycling challenged the CAO and it has been stayed pending a hearing, which has not yet been scheduled. At this time, SA Recycling and DTSC are engaged in negotiations related to the CAO and other pending issues.”

Figueroa said he believes the facility meets all requirements. When asked about the hazardous waste practices that the DTSC inspectors found in 2021, he said those same practices were not currently used at the facility.

“With DTSC we have constant meetings, inspections tours, audits,” Figueroa said.

Figueroa said the facility installed a regional  regenerative thermal oxidizer in 2021 to control emissions while shredding.

“So far, we have people here working for over 30 years,” Figueroa said. “One-third of the workforce is over 30 years old. I have no issues with that. I have people retire after 46 years, like seven of those, and none of them with lung cancer or respiratory issues. And then who comes to work for us are their family, relatives, sons, kids, neighbors, nephews. If we were that bad, no one would come back to work here.”  

According to the notice of preparation, SA Recycling released an addendum to its lease in August 2021. If it were approved, a supplemental EIR would not be necessary. However, because of public feedback, the port decided not to adopt the addendum, and instead do a supplemental EIR.

Figueroa said that SA Recycling did not initially think it needed to do another EIR, since it did one in the nineties.

“I think we have the … latest technology now, if there are improvements in technology, we’ll look into that,” Figueroa said.

This includes an electric crane used to place shredded metal on ships, which it has used since 2017. About 400 trucks come into the facility per day. Figueroa estimated about 30% to 40% of those are clean energy trucks.

The facility also uses four electric forklifts, as well as four diesel forklifts. The facility also uses diesel tractors, but Figueroa said they are all up to date with tier 4 emission standards from the EPA.

“That’s the latest technology in diesel emissions that is accepted by the port,” Figueroa said.

A representative from the Port of LA declined a request for comment on this story.