California Attorney General Rob Bonta has announced a $2.5 million settlement with AB&I Foundry and its parent company, McWane, Inc., over alleged violations of Proposition 65 and nuisance odor complaints in East Oakland.
The foundry, which manufactured cast-iron and metal pipe fittings in East Oakland, was located at 7825 San Leandro Street (see map), less than a half-mile from a public library and two elementary schools—and basically just across San Leandro Bay from Alameda’s East End and Bay Farm Island.
The settlement resolves two consolidated lawsuits, which claimed AB&I unlawfully emitted hexavalent chromium, a potent carcinogen, without providing proper warnings to residents.
The problem wasn’t just nasty odors. Hexavalent chromium, which is listed as a carcinogen and reproductive toxicant by California, is 5,000 times more potent than benzene and can cause lung and other forms of cancer when inhaled.
The two lawsuits were filed by Communities for a Better Environment (CBE) and the California Department of Justice’s Bureau of Environmental Justice.
“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,” Bonta said. “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 (CARB) and Communities for a Better Environment (CBE) for their partnership.”
CARB is separately resolving nuisance odor allegations against AB&I, with assistance from the Bay Area Air Quality Management District.
As part of the Proposition 65 settlement, McWane will pay a total of $1.3 million, of which half 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, and attorneys’ fees and costs.
The $1.3 million settlement will be broken down as follows:
- $500,000 to Roots Community Health, which will operate mobile health clinics in Oakland that provide medical services to children with respiratory issues and unhoused community members, who are among those most directly impacted by AB&I’s emissions.
- $150,000 to the Rose Foundation for Communities and the Environment’s “New Voices are Rising” program, which seeks to amplify civic participation in under-represented communities and increase young people’s commitment to environmental justice by training Oakland students to advocate for and advance important community-centered environmental improvement projects.
- $237,336 to CBE in reimbursement of their attorneys’ fees and costs associated with this matter.
- $281,414 to the Attorney General’s Office in civil penalties and reimbursement of attorneys’ fees and costs associated with prosecuting this matter.
- $112,500 in civil penalties to the Office of Environmental Health Hazard Assessment (OEHHA), the lead agency for the implementation of Proposition 65.
Additionally, McWane will pay $1.2 million to settle nuisance odor violations with CARB, which plans to allocate half of its settlement to similar supplemental environmental projects.
California Air Resources Board Chair Liane Randolph said, “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.”
East Oakland’s population is 66% Latino and 21% African American. Approximately 10 schools were located within a mile of the former foundry, with some less than half a mile away, including Acorn, Woodland, and Encompass Academy Elementary Schools, which are less than a half-mile away. Numerous unhoused Californians live within a quarter-mile of the foundry, including along the foundry’s fence line.
“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,” 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.”
The settlement comes after McWane closed the AB&I facility in 2022. Proposition 65, passed by California voters in 1986, aims to protect people from exposure to chemicals causing cancer and reproductive harm.
CBE’s lawsuit, filed on December 16, 2021, alleged AB&I failed to warn East Oakland residents about exposure to hexavalent chromium and other chemicals exceeding regulatory limits. The California Department of Justice’s Bureau of Environmental Justice filed a separate lawsuit on February 15, 2022, alleging violations of Proposition 65’s warning requirements, unfair business practices, and harm to natural resources. The Alameda County Superior Court consolidated both lawsuits before the settlement was reached.
