Golden State Today

California Attorney General Rob Bonta announced a $2.5 million multi-party settlement with AB&I Foundry (AB&I), 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 — an extremely potent carcinogen — into the air without providing clear and reasonable warnings to residents, in violation of Proposition 65.

As part of the $2.5 million combined settlement, the California Air Resources Board (CARB), which received 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 a total of $1.3 million, half of which will be allocated toward supplemental environmental projects. Supplemental environmental projects offset civil penalties by sending money toward projects that address the harm caused by a defendant. The remainder of the Proposition 65 settlement will go toward civil penalties, attorneys’ fees, and costs.

The following is a breakdown of the $1.3 million settlement:

- $500,000 to Roots Community Health, which will operate mobile health clinics in Oakland providing medical services to children with respiratory issues and unhoused community members.

- $150,000 to the Rose Foundation for Communities and the Environment’s “New Voices are Rising” program.

- $237,336 to CBE in reimbursement for their attorneys’ fees and costs associated with this matter.

- $281,414 to the Attorney General’s Office in civil penalties and reimbursement for attorneys’ fees.

- $112,500 in civil penalties to the Office of Environmental Health Hazard Assessment (OEHHA).

McWane will also pay $1.2 million to settle nuisance odor violations with CARB. Like the California Department of Justice, CARB intends to allocate half its settlement total to supplemental environmental projects involving Roots Community Health and the Rose Foundation for Communities.

California voters passed Proposition 65 in 1986 to protect people from exposure to chemicals causing cancer or reproductive harm. CBE alleged in its December 16, 2021 lawsuit that AB&I failed to warn East Oakland residents about exposure levels exceeding regulatory limits for hexavalent chromium among other chemicals.

The California Department of Justice’s Bureau filed another lawsuit on February 15, 2022 alleging violations related to warning requirements as well as claims for unfair business practices.

East Oakland’s population includes 66% Latino residents and 21% African American residents living near approximately ten schools within a mile radius from where foundry operations took place before closing down in 2022 due primarily due proximity hazards such as high-risk exposures like hexavalent chromium known severe carcinogenic potentiality per state regulations necessitating proper cautionary measures absent during operational tenure under scrutiny now legally settled pending court consent judgment review documentation accessible online.