Alco Iron & Metal, a San Leandro metal recycling company, has agreed to pay close to $1.5 million to the state of California after what regulators describe as repeated violations of hazardous waste law. The Department of Toxic Substances Control (DTSC) announced the enforcement judgment.

The company has operated since 1953. The judgment is split evenly: $735,000 goes toward civil penalties, and another $735,000 is meant to benefit communities the state says are disproportionately burdened by pollution. According to the state, the Rose Foundation for Communities and the Environment will direct environmental restoration and education funds to affected areas and train youth leaders in environmental justice so they can hold polluters accountable.

DTSC said the violations recorded in the judgment, dated Oct. 13, grew out of inspections at Alco's facilities in San Leandro, Vallejo and Stockton in 2018 and 2020. The agency noted that Alco is one of the state's major metal recyclers.

A lawsuit filed by the office of California Attorney General Rob Bonta alleged improper storage, treatment and disposal of hazardous waste. It also alleged failures to manage used oil and universal waste, and inadequate controls to prevent fires and the release of contaminated dust and debris.

Alco's Chief Operations Officer, Michael Bercovich, said in a statement that the matters in the settlement go back nearly a decade and "would have been resolved earlier had the necessary permits and approvals been issued in a timely manner." He said the company remains confident in its legal position and believes the claims represent regulatory overreach by DTSC, but that settling lets Alco avoid costly litigation and stay focused on serving customers. "We are proud of the steps we have taken to not only meet, but exceed, regulatory standards," he said.

Under the settlement, Alco permanently agreed to comply with all hazardous waste requirements, prevent releases of hazardous materials, and properly classify hazardous waste and used oil. It also agreed not to carry out unauthorized treatment or disposal activities.

The judgment arrives amid separate scrutiny of the company's workplace safety record. A 2025 KTVU investigation found that three workers have died at the company over the past decade. It also found that Alco has been fined for more than 60 safety violations dating back to the 1990s, and a review of federal data suggested possibly the worst safety record of any similar company in California in the last 10 years.

Assemblywoman Liz Ortega, a San Leandro Democrat whose district includes the company, has been highly critical of Alco and of Cal-OSHA, the state agency that oversees workplace safety. In a statement, she contrasted the two outcomes: "In only two years, the Department of Toxic Substances Control got $1.5 million from Alco Iron & Metals for polluting, while Cal/OSHA has only gotten $7,000 for the death of three workers." She added that she commends DTSC for its work and suggested Cal/OSHA "should take a note from them."