Annual Report

2006

Partners in the Solution® Program

State of Californi

Sponsored by: a Auto Dismantlers Association

Table of Contents

SECTION 1 INTRODUCTION………………………..…………………….………..…..1

SECTION 2 PARTNERS IN THE SOLUTION® PROGRAM LEADERSHIP……...……........2

SECTION 3 INDUSTRY BEST STANDARDS…….………..….…….……...…..………..3

SECTION 4 THE 2006 AUDIT PROGRAM……………………………..………….…..5

SECTION 5 RECOGNIZING ACHIEVEMENTS: PARTNERS CERTIFICATIONS……….….9

SECTION 6 COMPLIANCE ASSISTANCE IS AVAILABLE.………………….………….11

SECTION 7 AWARDS AND RECOGNITION……….………………………….………12

Section 1 Introduction

1

The State of California Auto Dismantlers Association (SCADA) is the statewide trade association of licensed auto dismantlers. The association’s members are California- auto dismantling companies that have taken a leadership role in safe and environmentally-sound vehicle recycling. SCADA members believe in and support responsible recycling and environmental protection. SCADA promotes the proper handling and disposal of all automotive-related hazardous materials, including gasoline, oil, freon, antifreeze, brake fluid, transmission fluid, batteries, mercury switches, and tires. In 2001, SCADA adopted the mandatory Partners in the Solution® program to provide recognition that participating facilities meet specified standards. This proactive, industry-led approach motivates facility operators to achieve a high level of performance, and assists them in complying with a complicated array of regulations. The Partners program establishes a set of business, environmental, safety, and licensing standards for participating members. Members receive technical assistance and guidance to help them meet those standards, and they are audited to verify compliance with the standards. Once all of the standards are met, the facility is certified by the Partners in the Solution® program. This Partners in the Solution® Annual Report is intended to:

• Promote the program’s mission and objectives • Describe how the program operates • Outline accomplishments • Track performance levels and monitor trends • Identify areas where improvements are needed • List recent awards that recognize the success of the Partners program

Section 2 Partners in the Solution® Program Leadership

The Partners in the Solution® program is led by the Partners in the Solution® Advisory Committee, a group of leading recyclers who set the standards and policies for the program. The Chair of the committee is Ron Dumas of Auto Gator Roseville in Roseville, California. The Partners Program Administrator is Martha Cowell, who also serves as Executive Director of SCADA. Program oversight is provided by the 19-member SCADA Board of Directors. The President of the Board is Bruce Luther of Rock & Roll Auto Recycling in Pleasanton, California. The Partners in the Solution® Program Manager is David Kendziorski of Stormtech, Inc.. Stormtech is a firm that specializes in certification and compliance programs for the automotive recycling industry. David manages the audit program, provides technical assistance and training, and prepares program reports. Certification audits were conducted by three authorized Partners auditing firms:

• Brash Industries 4635 Admiralty Way Marina del Ray, CA 90292

• NEST Environmental Services Inc.

1040 Grant Road #155 PMB 325 Mountain View, CA 94040

• Pacific Management Services

1923 North Fine, Suite 101 Fresno, CA 93727

The auditors schedule and conduct the audits and prepare an audit report form that is given to the member and forwarded to the SCADA office. The auditors also provide onsite guidance and assistance to help members meet the Partners standards. All of the auditors are professional consultants who are knowledgeable of California regulations and experienced with the auto recycling industry.

2

Section 3 Industry Best Standards

The Partners in the Solution® standards are based on automotive recycling industry guidelines and regulatory requirements that apply to the auto recycling and dismantling industry. The standards are revised periodically to reflect California’s regulatory requirements and new environmental or safety issues that arise. In 2006 a new environmental standard was added that requires the removal of convenience light mercury switches. In addition, two of the safety standards—the Safety Manager and Program standard, and the Injury and Illness Prevention Program standard were combined into a single standard. These revised standards will take effect in 2007. The Partners in the Solution® Manual was revised to incorporate these revisions and to further update the Manual. Following these changes, there remain 39 standards for the Partners in the Solution® program:

• 7 business and regulatory standards • 26 environmental standards • 6 safety standards

The Partners in the Solution® standards address the following issues:

General Business Standards 1.

2. 3. 4. 5. 6. 7.

Vehicle Dismantling License Storm Water Permit Hazardous Waste Generator Identification NumberHazardous Materials Reporting Hazardous Material Transport Documentation Appropriate DOT Training for Shipping of AirbagsForklift Training

3

Section 3 Industry Best Standards

Environmental Standards

1. Fluid Removal 2. Vehicle Storage and Dismantling 3. Vehicle Inspection 4. Recyclable and Hazardous Material Storage 5. Fluid Storage Containers 6. Lead Acid Batteries 7. Refrigerant Removal 8. Oily Vehicle Parts 9. Radiators 10. Other Vehicle Parts 11. Engines Left in Vehicle 12. Spent Cleaning Solvents 13. Water-Based Degreasers 14. Tires 15. Preventive Maintenance 16. Spill Kits 17. Unprocessed Vehicle Fluids 18. Spill Reporting 19. Non-Storm Water Discharges 20. Sweeping 21. Erosion Control 22. Scrap and Trash Containers 23. Storm Water Filer Systems 24. Employee Training 25. Inspections 26. Mercury Switch Removal

Safety Standards

1. Personal Protective Equipment 2. Eye Wash Stations 3. Fire Extinguisher

4

4. First Aid Kit 5. Material Safety Data Sheets (MSDS) 6. Injury and Illness Prevention Program and

Safety Program

Section 4 The 2006 Audit Program

5

Under the Partners in the Solution® program, each member is audited by an authorized third party firm to verify compliance with the standards. The auditor meets with the owner or manager, reviews available records and documents, then performs a walk through inspection of the facility. Deficiencies and corrective actions are identified. An audit report is completed, and a copy is provided to the member and forwarded to the SCADA office. The compliance audit is an important part of the Partners in the Solution® program and offers benefits to both the program and to individual members. For the Partners program, the audits provide:

• Verification that the Partners business, safety, and environmental standards are being met by the members

• Credibility that the program actually achieves high performance • Assessment of where better training and assistance are needed • Identification of those members who have difficulty meeting the standards • A benchmark so that improvements can be monitored over time.

For the members, the audits provide:

• Individual onsite attention • Expert regulatory guidance • Guidance to help spend money and time wisely • Knowledge • Paperwork assistance • Compliance assistance

In 2006 SCADA initiated a new self audit procedure. Certified Partners in the Solution® members are allowed to alternate self audits with the third party audits. Thus, those members certified as meeting all of the Partners standards are able to conduct a self audit the following year. The 71 members certified in 2005 were allowed to conduct self audits in 2006. In 2007, those members will again be visited by a third party auditor. Each certified member received a self audit report form. The member conducted the audit, filled out and signed the form, and returned it to the SCADA office. The Program Manager reviewed and summarized the audit results. The self audits helped verify compliance with the standards and supported the credibility of the Partners program in ways that differ from the third party audits. The self audits built an awareness of ownership and responsibility for meeting the standards. These self audits are based on the mutual trust and respect between the members and the Partners program. Senior management was expected to conduct the audits and complete the audit form truthfully and accurately.

Section 4 The 2006 Audit Program

Management was encouraged to involve their employees in discussing and addressing program requirements and seeking solutions that fit well with their operations. Many members found the self audits to be an enlightening learning experience. By evaluating the standards, managers needed to fully understand the requirements, determine how to interpret the standards, decide how the standards apply to their facility, and determine what they need to do to comply. The self audits helped the members be more informed and involved with the actual program requirements.

NEST ENVIRONMENTAL SERVICES AUDITS FALL SHORT One of the three authorized firms, NEST Environmental Services, Inc., failed to complete the majority of their assigned audits by the end of 2006. NEST was allowed to complete their 2006 audits within the first few months of 2007, and those tardy audit results are included in this 2006 Annual Report. NEST was notified that failure to complete all of their assigned audits in the future could result in the termination of their audit services. In 2006, 100 third party audits and 60 self audits were conducted. The 160 audits represents a slight decline from the 166 audits conducted in 2005, and corresponds to a slightly smaller number of SCADA members. Third party audSCADA memb

100

120

140

160

180

its were noers were not

Number of Audits Conducted

6

2004 2005 2006

t conducted for five SCADA members in 2006. In 2005, 19 audited.

Section 4 The 2006 Audit Program

Overall, SCADA auto recyclers met about 95% of the Partners standards in 2006. This impressive achievement is due to SCADA’s long history of providing outstanding education and guidance to help members meet applicable regulations. Ninety-eight members, or 61% of the SCADA membership, met all of the applicable standards. The following figures show the level of compliance achieved for each standard:

Business Standards: 2006

100 98 9992

99 98

86

75

100

Lice

nse

SW Perm

it

Haz

ID

Haz

Mat

Rep

ortin

g

Haz

Mat

Tran

s

Airb

agTr

aini

ng

Fork

lift

Trai

ning

% C

ompl

ianc

e

Environmental Standards: 2006

97 96100

97 97 97

9092

97 9799 100 100 99

85

98100 99 100 99 100

9799

9396

75

100

Flui

d R

em.

Veh

Sto

rage

Veh

Insp

ect

Haz

Sto

rage

Flui

dC

onta

inB

atte

ries

Ref

r. R

em.

Oily

Par

ts

Rad

iato

rs

Oth

er P

arts

Eng

ines

iV

ehS

olve

nts

Deg

reas

ers

Tire

s

Pre

v. M

ain.

Spi

ll K

its

Unp

r Flu

ids

Spi

llR

epor

tN

on-S

torm

Sw

eepi

ng

Ero

sion

Tras

h

SW

Filt

er

Em

pl T

rain

Insp

ectio

ns

% C

ompl

ianc

e

n

7

Safety Standards: 2006

100

69

99 9885

73 68

50

100

Pers

onal

Prot

ectiv

eEq

uipt

.

Eye

Was

h

Fire

Extin

guis

her

Firs

t Aid

Safe

tyM

anag

er

MSD

S

IIPP%

Com

plia

nce

Section 4 The 2006 Audit Program

In all three categories (business, environmental, and safety) the % deficiencies continued to decline. As in previous years, the safety standards had the highest % deficiencies and the environmental standards the lowest.

0

25

50

75

100

# M

embe

rs

8

Summary of Deficiencies

0

10

20

30

40

Business Standards EnvironmentalStandards

Safety Standards

% D

efic

ienc

ies

200420052006

Deficiencies Per Facility: 2006

2 516 9 6 9 3 2 1 1 1

98

7

0 1 2 3 4 5 6 7 8 9 10 11 15

# Deficiencies

Section 5 Recognizing Achievement: Partners Certifications

The 98 SCADA members who met all of the Partners in the Solution® standards were certified under the program and awarded a certificate that recognizes their accomplishment along with a letter of congratulations and a press release template that can be used for local media. s When the SCADAmembers were notiby no later than 200 The Board’s goal certified as being iworth noting that certified had less theasily and inexpens The SCADA Boardcredibility of the PMembers who had frame to correct theadditional assistanc

Growth in Partners in the Solution Certification

9

0

20

40

60

80

100

120

2004 2005 2006

# C

ertif

icat

ions

Board of Directors established the Partners in the Solution program, fied that they were expected to meet all of the 39 program standards 6.

was not met: a slight majority (61%) of the SCADA members were n full compliance with all of the standards in 2006. However, it is 95% of all standards were met in 2006, and most facilities not yet an five deficiencies. Nearly all of these remaining deficiencies can be ively corrected.

of Directors is committed to taking steps to maintain the integrity and artners program by bringing all SCADA members into compliance. deficiencies will be required to agree in writing to an established time ir deficiencies. SCADA will be firm, yet helpful and fair. Substantial e will be offered to help these members meet the standards.

Section 5 Recognizing Achievement: Partners Certifications

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PARTNERS IN THE SOLUTION® CERTIFIED MEMBERS: 2006

4000 Auto Wreckers, Hayward A & A Auto Parts & Sales, Brentwood

A & B Truck Recycling, San Diego A & M Auto Wreckers, Sacramento A to Z Auto Dismantling, San Diego

A-1 Auto Dismantling, LLC, Oceanside Aadlen Bros. Auto Wrecking, Sun Valley

ABC Auto Parts, San Francisco Action Auto Dismantlers, Inc., Chula Vista

Action Auto Wreckers, San Jose Adams Steel, Anaheim

ALF Auto Dismantlers, San Martin All Dodge Truck Parts, Rancho Cordova

All Car & Truck Recycling, Anderson All Ford Chrysler Recycling, Sacramento

All Hyundai & Isuzu Auto Recycling, Rancho Cordova All Japanese Auto Recycling, Chula Vista

Allied Auto Salvage, Inc., Riverside Alvin's Auto Recycling, Oakland

Anthony's Auto Dismantling, Santa Cruz Auto Gator Roseville, Roseville

B & D Auto Parts, Concord Bauer's Auto Wreckers, Fresno

Bavarian Auto Recycling, Rancho Cordova BMW Auto Recycling, Rancho Cordova

BW Auto Dismantling, Roseville Cadillac Auto Recycling, Rancho Cordova

California Auto Recycling, San Diego Calumet Auto West, Chula Vista

Car Program, LLC, Rancho Cordova Cardinal Auto Wrecking, Escondido

Coast Auto Supply, Watsonville Cordova Truck Dismantlers, Inc., Sacramento

Dave’s Auto Wrecking III, San Diego Dave's Auto Wrecking, San Diego Dorris Auto Wreckers, Hayward E & J Auto Wreckers, Hayward

Eagle Auto Dismantling, Lakeside Ecology Auto Parts Center, Chula Vista

El Cajon, Auto Wreckers, El Cajon Ford Auto Recycling, Rancho Cordova

Gallant's Truck Salvage, Oceanside Golden State Auto Wrecking, Turlock

HAP Recycling, Rancho Cordova Higgins Auto Wrecking, Bakersfield

Highway 67 Truck Dismantlers, Lakeside Hillside Truck & Auto Recyclers, Riverside

Honda/Acura Parts Auto Recycling, Chula Vista Honda Heaven, San Jose

Import Center, Hayward

Infinity Salvage, Los Altos Ingot Auto Dismantlers, Bella Vista

J & W Auto Wreckers, Antelope Jalos Auto Dismantling, San Diego James Auto Dismantling, Antelope

John's Used Cars & Wreckers, Eureka Kennedy’s Auto Dismantling, Stockton

Kelseyville Auto Salvage & Towing, Kelseyville LKQ of Bakersfield, Bakersfield

LKQ Redding Auto Center, Redding LKQ of Southern California, Santa Fe Springs

M & S Recycling, Rancho Cordova Manuel's Auto Wrecking, Merced

Mazda Recycling, Rancho Cordova Middle East Auto Dismantling, San Diego

Midnight Auto & Truck Recycling, San Bernardino Mini Truck Dismantling, San Diego

N.O.W., LLC, Rancho Cordova P & C Auto Recycling, Tracy

P & C Auto Dismantlers, Milpitas Pacific Auto Salvage, Inc., American Canyon

Palomo Auto Dismantlers, San Diego Pick N’ Pull, Sacramento

Quinteros Auto Dismantling, Stockton QwikParts Auto Salvage, San Bernardino

Ramona Auto Dismantling, Ramona Rancho CPD, Rancho Cordova

Rancho Jeep Recyclers, Rancho Cordova Rancho Recycling, Rancho Cordova

Rock & Roll Auto Recycling, Pleasanton San Benito Auto Wrecking, Holister

San Luis Rey Auto Salvage, Oceanside Select Auto and Truck Recyclers, Redding

Silver Star Recycling, Rancho Cordova South Bay Auto Wreckers, Chula Vista

Specialized British Recycling, Rancho Cordova Standard Auto Recyclers, Chula Vista

Subaru/Suzuki Auto Recycling, Rancho Cordova Subway Truck Parts, Inc., Sacramento

Sweetwater Auto Wreckers, Spring Valley TAP Recycing, Rancho Cordova

Trolley Auto Parts, San Diego United Truck Dismantlers, Marysville Viking Truck and Auto, Inc., Redding

Volvo & Saab Auto Dismantlers, Rancho Cordova Westcott’s Auto Parts, Santa Rosa

West Auto Wreckers, LTD., Chula Vista Westside Auto Dismantling, Fresno

Section 6 Compliance Assistance is Available

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SCADA is committed to providing whatever assistance is needed to help members meet the Partners in the Solution® standards. This assistance includes: Partners in the Solution® Guidance Manual Program standards are listed and explained in this easy-to-read manual, along with an explanation of the audit procedures and resource contact information. The manual is in loose-leaf binder form, which can easily be updated.

Audit Visits The Partners program provides an audit visit to participating facilities to assess compliance with the standards. The audit consists of a general review of the standards with the facility operator, a detailed inspection of the facility to determine if the standards are being met, an exit briefing to discuss the audit findings, and the preparation of and Audit Report. The Auditor identifies on the report whether each standard is met or there are deficiencies, and specifies any corrective actions needed to bring the facility into compliance.

Training and Technical Assistance Training and technical assistance is available to members to help them comply with the business licensing, environmental, and safety standards. Training is offered at periodic training session, at SCADA events such as the annual convention, and through printed materials such as the California Dismantling magazine and a weekly newsletter. The following is a partial list of resources that help SCADA members meet the standards:

1. Injury and Illness Prevention Program (IIPP): SCADA has an outstanding eight-page model IIPP that is easy to fill out. Also available is a simple summary of the IIPP requirements and step-by-step instructions.

2. Material Safety Data Sheets (MSDS): Members are required to have MSDS for all hazardous materials that are present at the facility. SCADA offers a list of common MSDS for auto recyclers. A compact disk was developed that includes about 60 MSDS—members can just print out the MSDS that apply to their facility. Other MSDS can easily be found on the Internet, and SCADA has a list of some of the best MSDS web sites.

3. Hazardous Materials Reporting: SCADA provides a sample state CUPA form and a set of instructions. However, members should note that some local government jurisdictions might require slightly different versions.

4. Preventive Maintenance: Preventive maintenance of equipment can reduce parts failure and spills and leaks, extend equipment life, and minimize downtime. SCADA offers a Preventive Maintenance Fact Sheet, a Scheduled Maintenance Report form, and a Preventive Maintenance Inspection form.

5. Forklift and Airbag Training: SCADA arranges for training sessions for chapters or other groups of recyclers. Training is also offered at SCADA conventions.

SCADA will continue to provide resources to members to help them address current standards or new issues that arise.

Section 7 Awards and Recognition

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Many of the most important benefits of the Partners in the Solution® program are the improved relationships that SCADA has formed with local, state, and federal governmental agencies and environmental organizations. These agencies and organizations provide meaningful input that helps improve the quality and effectiveness of the Partners program. They help encourage other recyclers to participate in the program. As they have recognized the value of Partners, these organizations have helped build and support the credibility and reputation of Partners in the Solution® and the auto recycling industry. For its efforts in establishing the Partners in the Solution® program, SCADA has received the following recognition: 2006 Governor’s Environmental and Economic Leadership Award SCADA earned California’s highest environmental honor, the prestigious Governor’s Environmental and Economic Leadership Award from Governor Arnold Schwarzenegger. SCADA’s Partners in the Solution® certification program for auto dismantlers was recognized by Governor Schwarzenegger as a “pioneering effort to integrate environmental values and conservation of natural resources into long-term decision making and management of businesses and facilities.” The award was presented on December 6, 2006.

2006—Business and Environmental Resource Center Pollution Prevention Award Since 1995, the Business Environmental Resource Center (BERC) has presented Pollution Prevention awards to local businesses that have demonstrated an outstanding commitment to the environment by their on-going business practices. SCADA’s Partners in the Solution® program was presented with the BERC Pollution Prevention Award for “demonstrating environmental excellence and proactive leadership” in the Sacramento area community. The BERC Pollution Prevention Award resulted in recognition by the Sacramento County Board of Supervisors through a formal Resolution recognizing award recipients for “promoting comprehensive environmental compliance and economic development.”

2005—CUPA Environmental Leadership Award SCADA was presented with an Environmental Leadership Award from the California Unified Program Agency (CUPA) for the Partners in the Solution® program. CUPA Leadership Awards are presented for making “a major impact in the field of environmental protection through educational activities, the development of a special program, or any special achievement….that enhanced the protection of the environment and/or public health and safety.” The nomination for this award was supported by Arthur Baggett, former Chairman and current member of the State Water Resources Control Board, and Kerry Schmitz, Sacramento County Department of Water Resources.

Section 7 Awards and Recognition

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2004—U.S.EPA Environmental Achievement Award The United States Environmental Protection Agency selected the State of California Auto Dismantlers Association to receive it’s 2004 Environmental Achievement Award in recognition of “exceptional work and commitment to protecting the environment.” Each year, the EPA celebrates and recognizes outstanding environmental advocates who have made significant contributions toward enhancing and protecting the quality of the environment. SCADA’s Partners in the Solution® program was nominated for this award by Sustainable Conservation, and the nomination was supported by Alexis Strauss, Director of the Water Division for EPA Region 9.