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Thursday, September 19, 2024

Attorney general announces $2.5M settlement with East Oakland metal foundry

State AG
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Attorney General Rob Bonta | Official website

OAKLAND — California Attorney General Rob Bonta announced a $2.5 million multi-party settlement with AB&I Foundry, which manufactured cast-iron and metal pipe fittings in East Oakland. The settlement resolves two consolidated Proposition 65 lawsuits filed against AB&I and its parent company, McWane, Inc., by the environmental justice organization Communities for a Better Environment (CBE) and the California Department of Justice’s Bureau of Environmental Justice. Both lawsuits alleged that AB&I unlawfully emitted hexavalent chromium into the air without providing clear and reasonable warnings to residents, violating Proposition 65.

As part of the $2.5 million combined settlement, the California Air Resources Board (CARB), with assistance from the Bay Area Air Quality Management District, is also separately resolving nuisance odor allegations brought against AB&I for a long history of odor complaints in the community.

“I expanded our Bureau of Environmental Justice so that it could better protect low-income communities and communities of color from environmental pollution. East Oakland is one of those very communities,” said Attorney General Bonta. “While we cannot undo the harm AB&I caused, today’s settlement holds the company accountable, provides critical health services to community members, and trains local students in environmental science and advocacy strategies. I am deeply grateful to the California Air Resources Board and Communities for a Better Environment for their partnership.”

“Collaboration with the Attorney General’s Office and the Bay Area Air Quality Management District was key in eliminating the nuisance odors from AB&I that compromised air quality in one of California’s most vulnerable communities,” said California Air Resources Board Chair Liane Randolph. “The efforts of CARB and the District's enforcement teams removed a significant source of air pollution and led to AB&I providing funding for local community projects to clean Oakland’s air and address the local impacts of air pollution.”

"Communities for a Better Environment is proud to stand alongside the Attorney General's Office and CARB in this landmark settlement, which not only seeks justice for our community but also sets a precedent for holding polluters accountable,” said Esther Goolsby, East Oakland resident and CBE Northern California Co-Director. “This settlement sends a clear message that the health and well-being of our community are of paramount importance, and any activities that harm our environment and endanger our residents will not be tolerated. We also express our appreciation to the community members, advocates, and organizations who have supported us throughout this legal process."

As part of the Proposition 65 settlement, McWane will pay $1.3 million total: half allocated toward supplemental environmental projects addressing harm caused by emissions; remainder toward civil penalties, attorneys’ fees, costs:

$500,000 to Roots Community Health operating mobile clinics serving children with respiratory issues/unhoused individuals impacted by emissions.

$150,000 to Rose Foundation's "New Voices are Rising" program training students in advocacy/environmental justice.

$237,336 reimbursing CBE attorneys’ fees/costs.

$281,414 covering civil penalties/attorneys’ fees/costs at Attorney General’s Office.

$112,500 as civil penalties to OEHHA implementing Proposition 65.

McWane will also pay $1.2 million settling nuisance odor violations with CARB: half allocated similarly toward supplemental projects involving Roots Community Health/Rose Foundation.

California voters passed Proposition 65 in 1986 protecting people from exposure causing cancer/reproductive harm. CBE alleged December 16th lawsuit claimed AB&I failed warning residents about hexavalent chromium exceeding limits; DOJ lawsuit February 15th claimed further violations/unfair practices/harm consolidated by Alameda Superior Court.

East Oakland's population: 66% Latino/21% African American; foundry surrounded by residential areas/schools within mile radius including Acorn/Woodland/Encompass Academy Elementary Schools nearby; unhoused Californians live within quarter-mile including along fenceline.

Hexavalent chromium listed as carcinogen/toxicant requiring warnings when exposures exceed threshold; inhaled form significantly more potent than benzene causing lung cancer/adverse respiratory impacts.

A copy proposed stipulated consent judgment filed Court review available here.

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