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In February, PG&E fired a Camp Fire contractor for alleged bribery and fraud. They didn’t say much, but I’ve been looking into this story for months.
The PG&E contractor has a wild history
The PG&E contractor has a wild history
2/ The contractor, Bay Area Concrete Recycling, operated an unpermitted concrete recycling facility for years in the Bay Area.
The city fined the contractor nearly $60,000 — but it kept going, blowing dust into neighborhoods and storm drains.
The city fined the contractor nearly $60,000 — but it kept going, blowing dust into neighborhoods and storm drains.
3/ In 2014, the company owners also dumped hundreds of loads of waste on federally protected wetlands in Newark.
They were working with a “mud broker,” James Lucero, who had already been convicted of bribing landfill operators in San Jose.
They were working with a “mud broker,” James Lucero, who had already been convicted of bribing landfill operators in San Jose.
4/ After police shut down the Newark site, Lucero was indicted for violations of the Clean Water Act.
He was convicted and sentenced to 30 months in prison last year.
He was convicted and sentenced to 30 months in prison last year.
5/ Shortly after the Newark site was shut down, a manager Lucero had hired to run the site, Kevin Olivero, was hired by Bay Area Concrete — as CEO
6/ With Olivero as CEO, the business expanded into San Francisco, Richmond, Sacramento, Seattle and San Jose.
In some of those places, they ran into trouble with regulators as well.
In some of those places, they ran into trouble with regulators as well.
7/ Bay Area Concrete continued to be unpermitted at its Hayward headquarters.
Neighboring businesses complained dust interfered with their operations and worried it was affecting their employees’ health.
Neighboring businesses complained dust interfered with their operations and worried it was affecting their employees’ health.
8/ But one neighbor didn’t have a problem: PG&E. The utility has a service center across the street from Bay Area Concrete.
It said that PG&E hired them to sweep their lots and later expanded the contract to include PG&E locations all over the Bay Area and Central Valley.
It said that PG&E hired them to sweep their lots and later expanded the contract to include PG&E locations all over the Bay Area and Central Valley.
9/ The city of Hayward ordered the concrete recycling plant shut down in 2018. Bay Area Concrete appealed, but at a city Planning Commission meeting, the appeal was denied.
“This is really an illegal business that’s asking to continue operating,” one commissioner said.
“This is really an illegal business that’s asking to continue operating,” one commissioner said.
10/ The *same day* the appeal was denied, the Camp Fire broke out near Paradise. It would burn for weeks, killing 85 people and burning nearly 19,000 structures.
11/ While the fire was still burning, a lawyer for Bay Area Concrete’s owners founded a new company at a business address for another company they owned.
They would later transfer that company to a PG&E employee who oversaw disposal work in Paradise.
They would later transfer that company to a PG&E employee who oversaw disposal work in Paradise.
12/ By December, Bay Area Concrete was building a whole new disposal site in Paradise just for PG&E.
It took in slurry waste from hydrovac trucks, special excavation trucks that are used to dig around delicate equipment like buried gas lines or cables.
It took in slurry waste from hydrovac trucks, special excavation trucks that are used to dig around delicate equipment like buried gas lines or cables.
13/ PG&E started doing more business with Bay Area Concrete and its owners. Bay Area Concrete built another disposal facility on PG&E property in Petaluma.
After the Kincade fire nearby, another of the owners’ companies helped build PG&E’s command center, according to BACR.
After the Kincade fire nearby, another of the owners’ companies helped build PG&E’s command center, according to BACR.
14/ But in February, PG&E publicly accused Bay Area Concrete of bribing utility employees and overcharging PG&E.
Bay Area Concrete says that PG&E is trying to get out of paying its bills -- PG&E owes BACR $4 million in bankruptcy filings and BACR says PG&E owes them $14 million
Bay Area Concrete says that PG&E is trying to get out of paying its bills -- PG&E owes BACR $4 million in bankruptcy filings and BACR says PG&E owes them $14 million
15/ In multiple interviews with the news organizations, Bay Area Concrete officials denied the firm had done anything wrong.
16/ PG&E did not respond to questions about its vetting process in hiring BACR, saying only, “PG&E has initiated an internal review to determine why this wasn’t detected earlier, and we will be enhancing our protocols to ensure this doesn’t happen again."
17/ While PG&E ended its relationship with BACR and the employees involved, it's unclear what may happen next. The case is under criminal investigation. BACR denies all of the fraud and bribery allegations.
18/ It’s hard to sum up all the crazy twists and turns in this story. Check out the full article here: https://www.propublica.org/article/how-a-pg-e-contractor-with-a-sketchy-past-made-millions-after-californias-deadliest-fire
19/ I’m still reporting on PG&E and California’s hydrovac / waste hauling industries. Have any tips? Email me 
[email protected].
[email protected].
