RCRA Violations

Pennsylvania Company Guilty Plea and $1.2 Million Fine for Improper Storage of Explosive Hazardous Waste

The Bullet:

The generator of a hazardous waste violated basic requirements of the hazardous waste regulations.  And, as a consequence, also violated the Hazardous Material Regulations of the PHMSA/USDOT.  These avoidable violations have resulted in significant criminal violations for this company and its officers.

Who:

Action Manufacturing Company in Atglen, PA.

The initial inspection was conducted by the USEPA’s Land and Chemical Division and the Pennsylvania Department of Environmental Protection (PA DEP).

The case was investigated by the EPA’s Criminal Investigation Division and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant U. S. Attorney Elizabeth Abrams.

What:

Action Manufacturing Company’s production process generates an explosive hazardous waste.  State and Federal regulations codified under the Resource Conservation and Recovery Act (RCRA) require hazardous wastes to be managed according to the applicable generator regulations while accumulated on-site and sent off-site for disposal only to permitted hazardous waste Treatment, Storage, & Disposal Facilities (TSDFs).  Instead of complying with these regulations, the company stockpiled hazardous wastes on-site for – in some cases – several years in gross violation of the generator on-site accumulation time limits.

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Where:

Action Manufacturing Company is headquartered in Bristol, Bucks County, PA.

The hazardous waste in question was stored at its facility in Atglen, Chester County, PA

When:

Initial inspection was completed by the USEPA’s Land and Chemical Division and the Pennsylvania Department of Environmental Protection (PA DEP) in November 2011.

Action Manufacturing entered the guilty plea on May 21, 2014.

A sentencing hearing is scheduled for August 27, 2014.

Why:

Federal and state hazardous waste regulations require a generator of hazardous waste to comply with applicable regulations in lieu of obtaining a permit for the storage of a hazardous waste.  Indefinite, long-term storage of this type without a permit is not allowed.  Further, evidence of a knowing violation of the regulations can lead to criminal prosecution, as in this case.  Also, as is often the case, violations of the USEPA hazardous waste regulations results in violations of the PHMSA/USDOT regulations for the transportation of a hazardous material (in this case a hazardous waste).

How:

Both Federal and state regulations allow authorities of the USEPA or your state, if it has an authorized hazardous waste program, to enter the property of a hazardous waste generator at any reasonable time and go anyplace hazardous waste are or have been.

Conclusion:

I don’t pretend to know all the facts of this case.  I am relying solely on the news release of the USEPA:  Pennsylvania Company Pleads Guilty to Improper Storage of Explosive Hazardous Waste and Agrees to $1.2 Million Fine.  However, it appears to me that compliance with the regulations of the USEPA and the PA DEP would not have been that difficult and certainly are preferable over this outcome.

Don’t wait!  Contact me for a free consultation regarding your compliance with the regulations of the USEPA, your state, and the PHMSA/USDOT.

Daniels Training Services

815.821.1550

Info@DanielsTraining.com

https://www.danielstraining.com/

 

Illegal Handling and Disposal of Hazardous Waste Results in $18.1 Million Settlement for Lowe’s

The Bullet:

Lowe’s stores throughout California were busted by the California DTSC for gross violations of state and Federal hazardous waste regulations.  Lowe’s agreed to pay a settlement of $18.1 million.

Who:

The California Department of Toxic Substances Control (DTSC), DTSC’s Office of Criminal Investigations (OCI), 31 California district attorneys and two city attorneys.  OCI is a special investigation unit within DTSC consisting of peace officers, scientists and a computer forensic specialist who investigate criminal misconduct and other violations of the hazardous waste laws in California. It is the only criminal investigations unit within the California Environmental Protection Agency. It is part of the Office of Legal Affairs.

Lowe’s Home Centers operates more than 1,830 stores in the United States, Canada and Mexico. It serves approximately 15 million customers each week and employs more than 260,000 people.

What:

Under the final judgment, Lowe’s must pay $12.9 million in civil penalties and costs. An additional $2.1 million will fund supplemental environmental projects furthering consumer protection and environmental enforcement in California, and Lowe’s will fund hazardous waste minimization projects of $3.2 million. The retailer will be bound under terms of a permanent injunction prohibiting similar future violations of the law. DTSC will receive about $1.67 million paid as penalties.

Where:

The civil enforcement action was filed in Alameda County, California and led by the district attorneys of Alameda, San Joaquin and Solano counties.  The alleged violations occurred at more than 118 Lowe’s stores throughout California.

When:

The settlement was announced by the CA DTSC on April 2, 2014.  The violations are alleged to have occurred over a six and a half year period.

Why:

It is alleged that more than 118 Lowe’s stores throughout California unlawfully handled and disposed of hazardous wastes. Those hazardous wastes and materials included pesticides, aerosols, paint and colorants, solvents, adhesives, batteries, mercury-containing fluorescent bulbs, electronic waste and other toxic, ignitable and corrosive materials.  At some Lowe’s stores, employees were unlawfully throwing away batteries and compact fluorescent light bulbs that customers had turned in to be recycled.

Stores are required to retain their hazardous waste in segregated, labeled containers to minimize the risk of exposure to employees and customers and to ensure that incompatible wastes do not combine to cause dangerous chemical reactions. Hazardous waste produced by California Lowe’s stores through damage, spills and returns is being collected by hazardous waste haulers registered with DTSC and taken to proper disposal facilities.

How:

From 2011 to 2013, OCI scientists and investigators conducted 17 dumpster examinations to gather evidence. These dumpster examinations revealed that Lowe’s was routinely and systematically sending hazardous wastes into local landfills throughout California that were not permitted to receive those wastes.

For More Information:

Contact: Russ Edmondson
(916) 323-3372
russ.edmondson@dtsc.ca.gov
Contact: Tamma Adamek
(916) 324-2997
tamma.adamek@dtsc.ca.gov

FOR GENERAL INQUIRIES: Contact the Department of Toxic Substances Control by phone at (800) 728-6942 or visit www.dtsc.ca.gov. To report illegal handling, discharge, or disposal of hazardous waste, call the Waste Alert Hotline at (800) 698-6942.

Read the DTSC press release:  Lowe’s to Pay $18.1 Million Settlement for Illegal Handling and Disposal of Hazardous Waste

Conclusion:

Lowe’s, like others in the retail industry, face unique challenges in the management and disposal of the hazardous waste they generate.  That’s why the USEPA is currently seeking comments from those within the retail industry regarding the drafting of regulations specific to them.  These violations are a good example of what can happen at a retail store – or any business – when facility personnel do not receive the required training:  Hazardous Waste Personnel and HazMat Employee and as a result lack even a basic understanding of what is required for compliance.

USDOT and USEPA regulations require training for personnel who handle hazardous waste or work with hazardous materials

State and Federal regulations require the training of HazMat Employees and Hazardous Waste Personnel

Please don’t hesitate to contact me with any questions about the hazardous waste regulations of the USEPA, CA DTSC, or whatever state your business is located.

Daniels Training Services

815.821.1550/Info@DanielsTraining.com/https://www.danielstraining.com/

Company Owner Offers his Side of the Story Regarding Alleged Violations of Environmental Regulations

So often the story I read from USEPA and state environmental agency press releases is one of greedy and careless business owners violating the environmental regulations in an attempt to make more money at the cost of the environment and public safety.  While I’m sure that image is sometimes correct it is also true that some business owners are simply unaware of the regulations they find themselves in violation of.  By the time they are made aware of the violations (let’s say they didn’t properly identify themselves as a hazardous waste generator, properly identify hazardous waste, and train employees on the company’s regulatory requirements), it may be too late.  Their awareness comes in the form of an agency inspection and a Notice of Violation.

Now of course we all know that “ignorance of the law is no excuse”, but it is also hard to understand how a company and it’s owners can be punished for the violation of regulations of whose existence they were not aware.  That is frequently the case of those who attend my HazMat Employee and RCRA Training Seminars, they simply aren’t aware of the regulations and how they apply to them.

Also, while some actions are so egregious, eg. dumping hazardous waste out back or burning it, some seem relatively harmless and easy to fix without imposing a fine, eg. not labeling hazardous waste drums stored on-site.  Yet, in the eyes of the government (state and federal) these are both violations of the regulations subject to fines and penalties.

Not sure of your hazardous waste generator status?

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This appears to be the case with a New Haven, CT business owner that finds himself facing the closure of his business due to what seems to be innocent mistakes (Connecticut DEEP fines New Haven business for violations of RCRA regulations).  Now, I don’t pretend to know all the facts in this case, and it appears that the business owner may have shot himself in the foot by ceasing to cooperate with the CT DEEP (Read the State of Connecticut’s complaint).  Still, the question remains if this is an enforcement action that should have proceeded this far at all.  Perhaps a good-faith approach to resolve the issues by both the CT DEEP and the business owner could have protected the environment and saved this small business and its local jobs.

I don’t pretend to know all the facts in this case, but here is what I do know:  my high-quality training for Hazardous Waste Personnel could have prevented all of these violations.  My training, whether Seminar, Onsite, or Web-Based would have revealed to the business owner the regulations he is alleged to have violated and what he could have done to come into compliance quickly and inexpensively.
USDOT and USEPA regulations require training for personnel who handle hazardous waste or work with hazardous materials

State & Federal regulations require the training of Facility Personnel

An added feature of my Onsite Training is that it includes a free walk-through of your site and a consultation on your regulatory compliance.  The information gathered during the walk-through is incorporated into the training materials along with options to attain compliance.  Often the fix to the problem, eg. labeling a hazardous waste container , is simple and easy.  Whereas the possible violations and fines can be devastating.

Contact me for the training you need, or for a free consultation.  I’m happy to answer your questions.

Daniels Training Services

815.821.1550/Info@DanielsTraining.com/www.DanielsTraining.com

Phoenix Color Corp. Settles Hazardous Waste Violations at Hagerstown Facility

Determine your Hazardous Waste Generator Status

in Maryland

Release Date: 01/13/2014
Contact Information: Donna Heron 215-814-5113 / heron.donna@epa.gov

PHILADELPHIA ( Jan. 13, 2014) — Phoenix Color Corp. has agreed to pay a $45,000 penalty to settle alleged violations of hazardous waste regulations at its facility on Phoenix Drive in Hagerstown, Md., the U.S. Environmental Protection Agency announced today. 

 

Hazardous Waste Training and HazMat Employee Training in Maryland

Maryland has an authorized Hazardous Waste Program

EPA cited Phoenix Color for violating the Resource Conservation and Recovery Act (RCRA), the federal law governing the treatment, storage, and disposal of hazardous waste. RCRA is designed to protect public health and the environment, and avoid costly cleanups, by requiring the safe, environmentally sound storage and disposal of hazardous waste.

Following a November 12, 2012 inspection, EPA cited the company for RCRA violations involving hazardous waste stored at the facility, including spent non-halogenated solvents, corrosives and mercury-containing fluorescent bulbs.

The alleged violations included : 1) operating a hazardous waste storage facility without a RCRA permit or interim storage status; 2) failure to make a hazardous waste determination; 3) failure to keep hazardous waste containers closed; 4) failure to inspect containers in a 90-day storage area; 5) failure to provide annual hazardous waste management training; 6) failure to maintain hazardous waste management job descriptions; and 7) failure to prepare and implement a complete hazardous waste emergency plan. 

The settlement penalty reflects the company’s compliance efforts, and its cooperation with EPA in the resolution of this matter. As part of the settlement, Phoenix Color has neither admitted nor denied liability for the alleged violations, but has certified its compliance with applicable RCRA requirements. 

For more information about hazardous waste and RCRA, visit http://www.epa.gov/epawaste/hazard/index.htm

Read the press release here.

It’s no surprise to me that among the alleged violations this company faced is a failure to train its Facility Personnel per the requirements of 40 CFR 265.16.  Good training like mine will fulfill the regulatory requirements and give you and your employees the knowledge and the tools to prevent these kinds of violations while protecting the environment.

The cost of training and compliance is a fraction of alleged violations such as these.  Contact me now to discuss your RCRA training options.

Daniels Training Services

815.821.1550/Info@DanielsTraining.com/www.DanielsTraining.com

Warner Graham Settles Hazardous Waste Violations at Cockeysville, Md., Facility

Determine your Hazardous Waste Generator Status

in Maryland

Release Date: 01/13/2014
Contact Information: Donna Heron 215-814-5113 / heron.donna@epa.gov

Hazardous Waste Training and HazMat Employee Training in Maryland

Maryland has an authorized Hazardous Waste Program

PHILADELPHIA (Dec.. xx, 2013) — Warner Graham, LLP, has agreed to pay a $80,650 penalty to settle alleged violations of hazardous waste regulations at its industrial solvent repackaging facility in Cockeysville, Md., the U.S. Environmental Protection Agency announced today. 

EPA cited the company for violating the Resource Conservation and Recovery Act (RCRA), the federal law governing the treatment, storage, and disposal of hazardous waste. RCRA is designed to protect public health and the environment, and avoid costly cleanups, by requiring the safe, environmentally sound storage and disposal of hazardous waste.

Following an April 2012 EPA inspection, and follow-up investigations, EPA cited Warner Graham for RCRA violations involving solvent waste, which is a hazardous waste stored at the facility. The alleged violations involved several RCRA regulations, including requirements for hazardous waste monitoring and inspections, employee training, equipment and tank testing, equipment marking, secondary containment, contingency planning, recordkeeping and reporting. 

In addition to the $80,650 penalty, the company has agreed to perform a $24,550 project to install a less permeable floor beneath the product storage tank area. This project, which exceeds regulatory requirements, will help minimize the potential environmental risk in the event of any accidental releases from these tanks.

The settlement penalty reflects the company’s compliance efforts, and its cooperation with EPA in resolving this matter. As part of the settlement, the company has neither admitted nor denied liability for the alleged violations, but has certified its compliance with applicable RCRA requirements. 

For more information about hazardous waste and RCRA, visit http://www.epa.gov/epawaste/hazard/index.htm

Read the press release here.

Once again a facility faces significant fines and penalties for the violation (alleged) of the RCRA regulations.  It is not uncommon in a situation such as this where a list of violations is indicated, “…requirements for hazardous waste monitoring and inspections, employee training, equipment and tank testing, equipment marking, secondary containment, contingency planning, recordkeeping and reporting.” that one of the violations includes a failure to train Facility Personnel per the requirements of 40 CFR 265.16.  Initial and annual training of your employees will not only fulfill the requirements of 40 CFR 265.16, it will also teach them how to do their job in compliance with the regulations.  Thorough, high-quality training like mine will go even further, giving you and your employees the knowledge to find the potential violations of the RCRA regulations and the tools to fix them.  Good training saves you money and the head aches and bad press that goes along with violations.

Daniels Training Services

815.821.1550/Info@DanielsTraining.com/www.DanielsTraining.com

Please don’t hesitate to contact me about the regulations of the USEPA or Maryland for the management of hazardous waste.

Parent Corporation of St. Vincent Hospital in Worcester, MA Fined by MassDEP for Hazardous Waste Management and Air Pollution Control Requirements

BOSTON – VHS Acquisition Subsidiary Number 7, Inc., the parent corporation that operates St. Vincent Hospital in Worcester has been assessed a $2,860 penalty by the Massachusetts Department of Environmental Protection (MassDEP) for violating Hazardous Waste Management and Air Pollution Control requirements.  (Link to the news release on the MADEP website).

During a routine inspection of the hospital conducted by MassDEP personnel in December 2012, it was determined that the facility generated hazardous waste in excess of its registered status, failed to ensure all required information on hazardous waste manifests was correct and failed to submit an annual Source Registration form. In a negotiated consent order, the parent company, VHS Acquisition Subsidiary Number 7, Inc. of Tennessee, agreed to maintain facility compliance with applicable regulations and pay the $2,860 penalty.

“During the inspection when the violations were identified, the facility immediately took steps to ensure compliance with applicable regulations, including its handling of hazardous wastes,” said Lee Dillard Adams, director of MassDEP’s Central Regional Office in Worcester. “MassDEP appreciates these measures and anticipates this level of attention will lead to on-going compliance.”

An assessed penalty of this amount is not a significant burden to a company of this size.  However, I am certain the that the hospital managers, not to mention the officers of the parent corporation, were not happy with the black eye it gives their facility.  And yet, it all could have been avoided by some relatively simple actions.  For example, a point I emphasize in my Training Seminars is to keep a close eye on your hazardous waste generation, I even provide a sample form to use when tracking your hazardous waste from cradle to grave.

Ensuring all the information is correct on the RCRA Manifest is important since a mistake here could lead to violations of USEPA regulations – in this case the regulations of the Massachusetts Department of Environment since MA has an authorized hazardous waste program – and those of the US Department of Transportation.

Both the USEPA – or an authorized state – and the USDOT require training of applicable personnel.  It is your responsibility to identify those employees and ensure they are trained properly.  Please contact me for a free consultation of your RCRA/Hazardous Waste and HazMat Employee training requirements.

Executive Recycling Company And Executives Sentenced For Fraud And International Environmental Crimes

July 23, 2013

DENVER – Executive Recycling, Inc. (a corporation) and Brandon Richter, age 38, of Highlands Ranch, Colorado, the owner and chief executive officer of Executive Recycling, were sentenced today by U.S. District Court Judge William J. Martinez for their roles in a fraudulent scheme related to the disposal and exportation of electronic waste to foreign countries, announced United States Attorney John Walsh, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble and EPA Criminal Investigation Division Special Agent in Charge Jeffrey Martinez.  Executive Recycling, the corporation, was sentenced to pay a $4,500,000 fine and serve 3 years on probation.  Richter was ordered to serve 30 months in federal prison, followed by 3 years on supervised release.  Judge Martinez also ordered Richter to pay a $7,500 fine and $70,144 in restitution joint and several with the victims of the crime.  Richter was ordered to report to a Bureau of Prisons facility within 15 days of designation.  Judge Martinez also ordered $142,241.10 in asset forfeiture.

The defendants were convicted in December 2012 of multiple counts of mail and wire fraud and environmental crimes related to the illegal disposal of electronic waste, smuggling, and obstruction of justice, following an 11-day trial.

Last week former vice president of operations, Tor Olson, age 38, of Parker, Colorado, was sentenced to serve 14 months in prison, pay a $5,000 fine, and pay over $15,000 in restitution.  Olson remains free on bond pending appeal.

Executive Recycling, Inc., as a corporation, Brandon Richter and Tor Olson were indicted by a federal grand jury in Denver on September 15, 2011. The jury trial before Judge Martinez began on December 3, 2012. The jury reached their verdict on December 21, 2012.  Olson was sentenced on July 17, 2013.

According to the indictment, as well as the facts presented at trial, Executive Recycling was an electronic waste recycling business located in Englewood, Colorado with affiliated locations in Utah and Nebraska. The company collected electronic waste from private households, businesses, and government entities. Executive Recycling was registered with the Colorado Department of Public Health and Environment as a “Large Quantity Handler of Universal Waste.” Richter, as owner and CEO, was responsible for supervising all aspects of the company. Olson, the vice president of operations, was responsible for running day-to-day operations.

Universal Waste

Click here to learn more about the universal waste regulations

A significant portion of electronic waste collected by the defendants were Cathode Ray Tubes (CRTs). CRTs are the glass video display component of an electronic device, usually a computer or television monitor, and are known to contain lead. The defendants engaged in the practice of exporting electronic waste, including CRTs, from the United States to foreign countries, including the People’s Republic of China. The defendants regularly negotiated the sale of electronic waste to brokers who represented foreign buyers or who sold the electronic waste overseas. The foreign buyers often paid the defendants directly. To transport the electronic waste, the defendants used shipping cargo containers which were loaded at the company’s facility. The containers were then transported by rail to domestic ports for export overseas.

Executive Recycling appeared as the exporter of record in over 300 exports from the United States between 2005 and 2008. Approximately 160 of these exported cargo containers contained a total of more than 100,000 CRTs.

Between February 2005 and continuing through January 2009, the defendants knowingly devised and intended to devise a scheme to defraud various business and government entities who wanted to dispose of their electronic waste, and to obtain these business and government entities’ money by means of materially false and fraudulent pretenses. The defendants represented themselves on a website to have “extensive knowledge of current EPA requirements.” The defendants falsely advertised to customers that they would dispose of electronic waste in compliance with all local, state and federal laws and regulations. It was part of the scheme that the defendants falsely represented that they would dispose of all electronic waste, whether hazardous or not, in an environmentally friendly manner. Specifically, the defendants falsely represented that the defendant company recycled electronic waste “properly, right here in the U.S.” They also stated that they would not send the electronic waste overseas.

The defendants’ misrepresentation induced customers to enter into contracts or agreements with the defendants for electronic waste disposal. Each victim paid the defendants to recycle their electronic waste in accordance with the representations made by the defendants. Contrary to their representations, the defendants sold the electronic waste they received from customers to brokers for export overseas to the People’s Republic of China and other countries.

“The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way,” said U.S. Attorney John Walsh.  “As cases like this one show, federal investigators and the U.S. Attorney’s Office can and will reach beyond our country’s borders to investigate crime and prosecute wrongdoers.”

“This prison sentence and fine awarded to this CEO demonstrate that there are no shortcuts to following U.S. export laws,” said Kumar Kibble, special agent in charge of HSI Denver.  “This CEO also intentionally deceived the public for years by falsely advertising an environmentally friendly recycling business plan within the United States.  Instead, he regularly exported tons of obsolete and discarded electronic equipment containing toxic materials to third-world countries, and took actions to illegally hide these practices from government officials.”

“The defendants claimed to safely recycle e-waste in the U.S., but regularly exported obsolete and discarded electronic equipment with toxic materials to third-world countries,” said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement office in Colorado.  “Pollution and greed respect no boundaries and EPA is committed to combating the illegal traffic of e-waste, which poses particularly significant environmental health risks in developing countries.”

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Environmental Protection Agency Criminal Investigation Division and the Colorado Attorney General’s Office, Special Prosecutions Unit.

The defendants were prosecuted by Assistant U.S. Attorneys Suneeta Hazra and Valeria Spencer and Special Assistant U.S. Attorney Lillian Alves.

Use caution when selecting a company to handle your universal waste, hazardous waste, or used oil.  Their crimes could lead to your headaches.

Missouri Man Sentenced for Abandoning Hazardous Waste – EPA Bulletin June 2013

On June 4, 2013, MICHAEL J. REDDING, JR., was sentenced to complete a three-year term of probation with a special condition of six months’ home detention. He also was ordered to pay $9,000 in restitution for clean-up costs.  Redding previously pleaded guilty to two RCRA violations stemming from the transportation and abandonment of hazardous waste. In early 2010, the defendant acquired equipment and assets from a bankrupt printing business.  In April, he directed a five-man crew to remove items from the buildings, including drums containing hazardous waste.  Those drums were then transported, without manifests, to another facility that was not permitted to store hazardous waste.  This case was investigated by the United States Environmental Protection Agency Criminal Investigation Division.  It is being prosecuted by Assistant U.S. Attorney Dianna Collins.

Photo of hazardous waste containers in a trailer

Containers of hazardous wastes stored in this trailer prior to being abandoned by Redding

It is interesting to note that this activity as described above is a violation not only of the USEPA’s hazardous waste regulations, but also the Hazardous Materials Regulations of the PHMSA/USDOT.  The transportation of a hazardous waste without a Uniform Hazardous Waste Manifest (or some other shipping paper in the case of a Conditionally Exempt Small Quantity Generator) is itself a violation of the HMR.  It is not mentioned in the article, but is safe to assume that the transportation of the hazardous waste included other violations of the HMR as well, such as:
  • No HazMat Labels or required markings on the containers identifying them as a hazardous material and a hazardous waste.
  • No placards on the truck though the quantity in the image makes it likely they were required.
  • No emergency response information or phone number provided to the carrier.
  • Incorrect segregation and securement of hazardous materials in the vehicle (just look at that picture!)
  • No HazMat Employee training for anyone involved in the transportation of the hazardous material/hazardous waste.  HazMat Employee training for the driver of the vehicle would also require Driver Training.
  • It is possible that a HazMat Safety Permit may be required (take this survey to see if it applies to you).
  • It is likely that registration as a shipper and a carrier of HazMat would be required (take this survey to see if it applies to you).

The transportation of a hazardous waste is subject to the regulations of both the USEPA (and your state) and the PHMSA/USDOT.  Violations of one Agency’s regulations could result in the violation of another’s, quickly compounding your violations, fines, and headaches.  Be sure you are in compliance with the regulations of both agencies, attend one of my Training Seminars, schedule Onsite Training, or register for my Web-Based Training.  No matter what you choose you will meet the training requirements of the respective agencies and you will learn what you need to maintain compliance at your facility year-round.

Wal-Mart Pleads Guilty to Federal Environmental Crimes and Civil Violations. Will Pay More Than $81 Million for improper handling of hazardous wastes and pesticides

WASHINGTON – Wal-Mart Stores Inc. pleaded guilty today in cases filed by federal prosecutors in Los Angeles and San Francisco to six counts of violating the Clean Water Act by illegally handling and disposing of hazardous materials at its retail stores across the United States. The Bentonville, Ark.-based company also pleaded guilty today in Kansas City, Mo., to violating the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) by failing to properly handle pesticides that had been returned by customers at its stores across the country.

As a result of the three criminal cases brought by the Justice Department, as well as a related civil case filed by the U.S. Environmental Protection Agency (EPA), Wal-Mart will pay approximately $81.6 million for its unlawful conduct. Coupled with previous actions brought by the states of California and Missouri for the same conduct, Wal-Mart will pay a combined total of more than $110 million to resolve cases alleging violations of federal and state environmental laws.

According to documents filed in U.S. District Court in San Francisco, from a date unknown until January 2006, Wal-Mart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level. As a result, hazardous wastes were either discarded improperly at the store level – including being put into municipal trash bins or, if a liquid, poured into the local sewer system – or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States. 

“By improperly handling hazardous waste, pesticides and other materials in violation of federal laws, Wal-Mart put the public and the environment at risk and gained an unfair economic advantage over other companies,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today, Wal-Mart acknowledged responsibility for violations of federal laws and will pay significant fines and penalties, which will, in part, fund important environmental projects in the communities impacted by the violations and help prevent future harm to the environment.”

“Federal laws that address the proper handling, storage and disposal of hazardous wastes exist to safeguard our environment and protect the public from harm,” said André Birotte Jr., the U.S. Attorney for the Central District of California. “Retailers like Wal-Mart that generate hazardous waste have a duty to legally and safely dispose of that hazardous waste, and dumping it down the sink was neither legal nor safe. The case against Wal-Mart is designed to ensure compliance with our nation’s environmental laws now and in the future.”

“As one of the largest retailers in the United States, Wal-Mart is responsible not only for the stock on its shelves, but also for the significant amount of hazardous materials that result from damaged products returned by customers,” said Melinda Haag, U.S. Attorney for the Northern District of California. “The crimes in these cases stem from Wal-Mart’s failure to comply with the regulations designed to ensure the proper handling, storage, and disposal of those hazardous materials and waste. With its guilty plea today, Wal-Mart is in a position to be an industry leader by ensuring that not only Wal-Mart, but all retail stores properly handle their waste.”

“This tough financial penalty holds Wal-Mart accountable for its reckless and illegal business practices that threatened both the public and the environment,” said Tammy Dickinson, U.S. Attorney for the Western District of Missouri. “Truckloads of hazardous products, including more than 2 million pounds of pesticides, were improperly handled under Wal-Mart’s contract. Today’s criminal fine should send a message to companies of all sizes that they will be held accountable to follow federal environmental laws. Additionally, Wal-Mart’s community service payment will fund important environmental projects in Missouri to help prevent such abuses in the future.”

“The FBI holds all companies, regardless of size, to the same standards,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to work closely with our law enforcement partners to ensure there is a level playing field for all businesses and that everyone follows the rules.”

“Today Wal-Mart is taking responsibility for violating laws that protect people from hazardous wastes and chemicals,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Walmart is committing to safe handling of hazardous wastes at all of its facilities nationwide, and action that will benefit communities across the country.” 

Wal-Mart owns more than 4,000 stores nationwide that sell thousands of products which are flammable, corrosive, reactive, toxic or otherwise hazardous under federal law. The products that contain hazardous materials include pesticides, solvents, detergents, paints, aerosols and cleaners. Once discarded, these products are considered hazardous waste under federal law.

Wal-Mart pleaded guilty this morning in San Francisco to six misdemeanor counts of negligently violating the Clean Water Act. The six criminal charges were filed by the U.S. Attorney’s Office in Los Angeles and San Francisco (each office filed three charges), and the two cases were consolidated in the Northern District of California, where the guilty pleas were formally entered before U.S. Magistrate Judge Joseph C. Spero. As part of a plea agreement filed in California, Wal-Mart was sentenced to pay a $40 million criminal fine and an additional $20 million that will fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste.

In the third criminal case resolved today, Wal-Mart pleaded guilty in the Western District of Missouri to violating FIFRA. According to a plea agreement filed in Kansas City, beginning in 2006, Wal-Mart began sending certain damaged household products, including regulated solid and liquid pesticides, from its six return centers to Greenleaf LLC, a recycling facility located in Neosho, Mo., where the products were processed for reuse and resale. Because Wal-Mart employees failed to provide adequate oversight of the pesticides sent to Greenleaf, regulated pesticides were mixed together and offered for sale to customers without the required registration, ingredients, or use information, which constitutes a violation of FIFRA. Between July 2006 and February 2008, Wal-Mart trucked more than 2 million pounds of regulated pesticides and additional household products from its various return centers to Greenleaf. In November 2008, Greenleaf was also convicted of a FIFRA violation and paid a criminal penalty of $200,000 in 2009. 

Pursuant to the plea agreement filed in Missouri and accepted today by U.S. District Judge John T. Maughmer, Wal-Mart agreed to pay a criminal fine of $11 million and to pay another $3 million to the Missouri Department of Natural Resources, which will go to that agency’s Hazardous Waste Program and will be used to fund further inspections and education on pesticide regulations for regulators, the regulated community and the public. In addition, Wal-Mart has already spent more than $3.4 million to properly remove and dispose of all hazardous material from Greenleaf’s facility.

In conjunction with today’s guilty pleas in the three criminal cases, Wal-Mart has agreed to pay a $7.628 million civil penalty that will resolve civil violations of FIFRA and Resource Conservation and Recovery Act (RCRA). In addition to the civil penalties, Wal-Mart is required to implement a comprehensive, nationwide environmental compliance agreement to manage hazardous waste generated at its stores. The agreement includes requirements to ensure adequate environmental personnel and training at all levels of the company, proper identification and management of hazardous wastes, and the development and implementation of Environmental Management Systems at its stores and return centers. Compliance with this agreement is a condition of probation imposed in the criminal cases.

The criminal cases announced today are a result of investigations conducted by the FBI and the EPA, which received substantial assistance from the California Department of Substance and Toxics Control, and the Missouri Department of Natural Resources.

In Missouri, the case was prosecuted by Deputy U.S. Attorney Gene Porter and ENRD Senior Trial Attorney Jennifer Whitfield of the Environmental Crimes Section of the Environment and Natural Resources Division. In California, the cases were prosecuted in Los Angeles by Assistant U.S. Attorney Joseph O. Johns and in San Francisco by Assistant U.S. Attorney Stacey Geis. 

Release Date: 05/28/2013

 

Contact Information: Dale Kemery (News media only) kemery.dale@epa.gov 202-564-7839 202-564-4355

More information about the case: URL http://www.epa.gov/enforcement/waste/cases/walmart.html

Owner of Colorado Aircraft Painting Company Pleads Guilty to Unlawfully Treating Hazardous Waste

On March 12, 2013, NORMAN TELTOW, owner of Gold Metal Paint Co. LLC (GMP), pleaded guilty in federal district court in Denver to a criminal information charging him with illegally treating hazardous waste at the company’s facility.  Teltow, who will be sentenced on June 10, 2013, faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release.

Teltow operated GMP out of a hangar near the Front Range Airport in Watkins, Colo. GMP was primarily in the business of painting small aircraft.  During the course of its business, GMP created hazardous waste in the form of spent methylene chloride-based solvents mixed with paint waste.  Methylene chloride, a listed hazardous waste, is both ignitable and toxic. Moreover, exposure to methylene chloride can cause skin irritation, headache, dizziness, nausea, and vomiting.  Under the Resource Conservation and Recovery Act, GMP was required to use a licensed waste management company to transport the hazardous waste to a licensed facility for disposal.  To avoid the costs associated with proper disposal, Teltow directed GMP employees to store the spent solvents in an underground tank below the facility, knowing that it was illegal to store the waste in that manner.

When the Colorado Department of Public Health and Environment (CDPHE) became aware that Teltow and GMP were storing hazardous waste in an underground tank, the agency conducted an inspection and ordered Teltow to hire a licensed waste management company to pump the waste out of the tank and dispose of it properly. CDPHE further ordered that the tank be cleaned, that the trench drain leading to the underground tank be sealed, and that GMP use a licensed waste management company to transport all hazardous waste in the future.  In response to CDPHE’s orders, Teltow hired a licensed waste management company to pump out the tank, and sealed off the trench drain to the underground tank. However, rather than hire a licensed waste management company to clean out the tank, Teltow ordered subordinate employees to clean out the tank without the benefit of any personal protective equipment.  The employees were exposed to hazardous waste containing methylene chloride, and suffered from headaches, dizziness, and nausea.

Teltow then devised a new plan for treating GMP’s hazardous waste by “evaporating” it into the atmosphere.  Teltow ordered subordinate GMP employees to pour the hazardous waste onto the floor of the hangar at the end of the work day.  Workers would then leave the hangar doors ajar and allow the methylene-chloride waste to  evaporate.  Teltow knew that it was illegal to treat the hazardous waste in this manner.  When Teltow’s “evaporation” method was unsuccessful at treating all of the waste that GMP accumulated, Teltow drilled open the trench drain so that the waste could again flow into the underground tank.

The investigation was conducted by EPA’s Criminal Investigation Division, with assistance from inspectors at the Occupational Safety and Health Administration and CDPHE.  The case was prosecuted by James B. Nelson of the Department of Justice’s Environmental Crimes Section.

A generator of any waste is required to determine if it is a hazardous waste by conducting a Hazardous Waste Determination.  Hazardous waste must then be managed and disposed of according to the RCRA regulations based on your hazardous waste generator status.  The on-site treatment of hazardous waste, even a listed hazardous waste, is allowed, as long as it is done properly and in compliance with the regulations.  Four hours of hazardous waste training along with four more hours of HazMat Employee training required by the USDOT will give you the knowledge and the tools to ensure compliance at your facility.