The Mercury News

Pep Boys to pay $3.7M in Bay Area settlement

DA alleges state environmen­tal protection laws were violated

- By Angela Ruggiero aruggiero@bayareanew­sgroup.com Contact Angela Ruggiero at 510-293-2469.

OAKLAND » Pep Boys has agreed to pay $3.7 million to settle a lawsuit alleging the company illegally dumped hazardous waste.

Pep Boys, an auto parts and service retailer, was accused of violating state environmen­tal laws regarding hazardous waste. Alameda County District Attorney Nancy O’Malley alleged the company illegally dumped automotive fluids, used motor oil and other waste into company bins destined for the landfill.

The lawsuit filed against the company also alleged that Pep Boys didn’t properly shred customer informatio­n containing confidenti­al records, before dumping them in the trash.

“When businesses like this one illegally dispose of toxic waste, they pollute our natural resources. Substances like motor oil and automotive fluids leach into the soil and the groundwate­r. They make their way into streams, and eventually the San Francisco Bay, poisoning wildlife, sea life alike,” O’Malley said in a statement.

Pep Boys has 151 retail stores and centers, including in Alameda County, such as those in San Leandro and Union City. In San Mateo County, whose district attorney also joined in the investigat­ion and lawsuit, there’s a store in San Carlos.

The Alameda County District Attorney’s Office Environmen­tal Protection Unit led the investigat­ion, which ran from April 2014 through November 2017. Inspectors from Alameda County, as well as those from other district attorneys offices statewide, conducted undercover inspection­s of trash bins in 19 different Pep Boys facilities.

Other district attorneys’ offices besides Alameda and San Mateo counties that took part include Yolo, San Joaquin, Kern, Orange, San Bernardino, San Diego and Ventura counties.

The undercover operations found a number of examples of illegal dumping, including car fluids, batteries, aerosol cans, electronic devices, used oil and other waste, according to the district attorney. The stores are required to manage their hazardous waste in separate labeled containers to minimize the risk of exposure to both employees and customers. Hazardous waste produced by Pep Boys is collected by stateregis­tered trash haulers, and taken to proper disposal facilities, the district attorney said.

Of the $3.7 million that Pep Boys agreed to pay in the settlement, $1.8 million will go toward civil penalties, $425,000 to reimburse investigat­ion costs and $260,000 for supplement­al environmen­tal projects. Pep Boys could get a $1.2 million credit if it takes on at least $2.4 million in environmen­tal enhancemen­t work not required by law.

The company also will have to undergo a trash audit to make sure the hazardous waste and customer informatio­n are properly disposed of; the result of the audit will have to be shared publicly.

This is O’Malley’s latest undertakin­g of environmen­tal-related hazardous materials lawsuits filed and investigat­ed partly by her office. In June, her office announced an $11 million statewide settlement with AutoZone, and in November 2016 a $9.86 million settlement with O’Reilly’s Auto Parts.

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