EPA plans to set national emissions standards under section 202(a) of the Clean Air Act to control emissions of greenhouse gases (GHGs) from passenger cars, light trucks, and medium-duty passenger vehicles, as part of a joint rulemaking with the National Highway Traffic and Safety Administration (NHTSA). This joint rulemaking effort was announced by President Obama on May 19th, 2009 with a notice of intent to conduct a joint rulemaking published in the Federal Register on May 22, 2009 (). The GHG standards would significantly reduce the GHG emissions from these light-duty vehicles.
The standards would be phased-in beginning with the 2012 model year through model year 2016. EPA and NHTSA expect to propose the rules by late summer 2009. EPA’s final action would only occur if EPA determines that emissions of greenhouse gases may reasonably be anticipated to endanger public health or welfare, and that emissions from new motor vehicles and motor vehicle engines contribute to the atmospheric concentrations of these greenhouse gases and hence to the threat of climate change. EPA has already proposed these findings
A notice of proposed rulemaking is expected within the next 12 months. For additional information, contact Robin Moran at 734-214-4781
Allocation of Essential Use Allowances of Ozone Depleting Substances for Calendar Year 2010
EPA is proposing to allocate essential use allowances for the import and production of Class I ozone depleting substances for 2010. Essential use allowances enable a person to produce or import controlled Class I ozone depleting substances under the essential use exemption to the regulatory phaseout of these chemicals, which became effective on January 1, 1996. The production of these chemicals was phased out internationally due to their harmful effects on the earth’s ozone layer. EPA has promulgated rules to allocate new production under this exemption. The essential users under this rulemaking are manufacturers of important medical devices such as asthma inhalers.
For additional information, contact Jennifer Bohman at 202-343-9548,
EPA Proposes Minor Amendments to the Lead Renovation, Repair, and Painting Program
This action will make several minor, technical amendments to the Lead Renovation, Repair, and Painting Program to enable OPPTS and the Regions to implement the program effectively. The amendments include correcting the regulatory text to require training providers to submit information on successful renovator and dust sampling technician trainees (including digital photographs) to EPA and correcting the regulatory text to eliminate the requirement that training providers submit digital photographs of successful lead-based paint activities trainees (e.g., inspectors, risk assessors, abatement workers/supervisors, project designers) to EPA. These amendments will also insert clarifying language into the regulatory text with respect to hands-on training requirements and the grandfathering of previously-trained individuals.
A direct final rule is expected within the next 12 months. For additional information, contact Cindy Wheeler at 202 566-0484,
EPA Settles with API on NSPS for Stationary Internal Combustion Engines
In accordance with section 113(g) of the Clean Air Act, 42 U.S.C. 7413(g), EPA is proposing a settlement agreement to address a lawsuit filed by American Petroleum Institute (API) in the United States Court of Appeals for the District of Columbia Circuit: American Petroleum Institute v. EPA, No. 06-1321 (D.C. Cir.).
API filed a petition for review of an EPA rule promulgating regulations requiring new source performance standards for new stationary compression ignition internal combustion engines. Under the terms of the proposed settlement agreement, EPA has agreed to propose revisions to the new source performance standards and to issue guidance specifying particular standards applicable under the regulations.
Written comments on the proposed settlement agreement must be received by July 6, 2009. Information about how to file a comment is available in the Federal Register notice.
Calling All Corporate Environmental Innovators
The Environmental Defense Fund (EDF) and Ashoka will host a series of “unconferences” that bring together professionals engaged in making their companies and industries more efficient and sustainable, keeping them on the cutting-edge of innovation. The meetings will take place in Washington, DC, Boston, Silicon Valley, and Austin.
Unlike traditional conferences, the EDF/Ashoka events will not include formal panels or speeches. Unconferences are organized in a participatory format in which all participants will have an opportunity to share, problem-solve, network, collaborate and learn, focused on the topics of greatest interest to them—from packaging and product innovation, to supply chain sustainability, to advances in operational efficiency, and beyond.
“Innovation comes in all shapes and sizes, from employees at all levels within companies,” said David Witzel, director of the EDF Innovation Exchange. “The goal of these events is to capture the powerful energy and innovation that we’re seeing at the intersection of business and the environment, helping to drive industry-wide change.”
Sign up for the EDF/Ashoka events is available at the links below:
Participants will share new ideas for saving and making money while helping the environment; learn practical lessons about what does and doesn’t work in trying to make a company more sustainable; and develop new relationships with partners and colleagues in other businesses as well as non-profits, academics, and government.
Green Innovation in Business unconferences offer registration fees that range from free to up to $75, depending on the location.
EPA Fines Friction Holdings $337,500 for CWA, RCRA, TSCA, and the CAA Violations
The proposed consent decree was lodged with the United States District Court for the Southern District of Indiana.
The proposed Consent Decree resolved the United States claims against Friction Holdings under the CAA, RCRA, TSCA, and the CWA in connection with Friction’s operation of an automotive and heavy duty wet friction material and parts manufacturing facility in Crawfordsville, Indiana.
Under the proposed decree, Friction Holdings would be required to:
- Pay a civil penalty of $337,500;
- Prepare and implement, under the CWA, various sampling, monitoring, and operations plans, to insure that cyanide in the facility’s waste water is being handled properly;
- Pursuant to RCRA, investigate the facility’s groundwater to determine if the groundwater is contaminated with PCBs and other hazardous substance, and if so whether the migration of the contaminated groundwater is under control;
- Pursuant to RCRA, remediate two small areas of suspected PCB contamination; and
- Pursuant to TSCA, eliminate several sources of PCB contamination at the facility, and study the need for, and conduct where required, risked-based disposals or remediation of on-Facility PCB contamination.
Prior to entering into the Decree, the company brought the facility into compliance with the CAA.
Construction Firm Faces $157,000 Fine for Storm Water Violations
A construction company building a 79-acre residential subdivision of townhouses in Worcester, Massachusetts faces up to $157,000 in penalties of for alleged violations of the federal Clean Water Act.
Bailin & Associates, Inc. of Worcester has been constructing the subdivision since 2003. Because the company is disturbing more than one acre of land, they are required to apply for a water discharge permit—either an individual NPDES permit or a NPDES General Permit for Storm Water Discharges from Construction Activities.
Though construction began in 2003, Bailin failed to apply for a NPDES permit until April of 2008. Additionally, Bailin failed to install and maintain adequate Best Management Practices (BMPs) at the Site such as sedimentation control barriers, stockpile containment, and surface and slope stabilization. Lastly, Bailin violated the Clean Water Act by allegedly discharging storm water from the construction site without a permit.
Before and after Bailin received permit coverage on May 29, 2008, the company installed pollutant control measures, including a detention pond with a manually-activated submersible pump that discharges to a wooded wetland, flows through a channel into an unnamed tributary, through a series of ponds, then to Beaver Brook, and ultimately to the Blackstone River. Bailin pumped silted water from this detention pond causing siltation in the unnamed stream and ponds.
Construction projects disturbing 1 acre of land or more must be permitted for their storm water discharges. Storm water runoff from construction activities has the potential to significantly impact the water quality of receiving waters. As storm waters flow over a construction site, they can pick up and transport certain pollutants, such as oil and grease from petroleum products, metals from paints and sealants, sand and aggregate from unstable material stockpiles, and solvents and construction debris. Contaminated storm water runoff can harm or kill fish and or other aquatic wildlife. Uncontrolled storm water runoff from a construction site can affect an aquatic habitat and cause stream bank erosion and flooding.
Industrial Plating Corp. Fined $101,000 in Tank-Collapse Case
The Washington State Department of Ecology (Ecology) has fined Industrial Plating Corp. (IPC) $101,000 for violating hazardous waste requirements that could have prevented the collapse last year of a 50,000-gallon tank full of caustic solution at the company’s plant in south Seattle.
The wooden tank broke apart at approximately 6 p.m. on March 25, 2008. It was one of two tanks located outdoors at 2411 6th Ave. South that contained corrosive rinse waters and toxic liquid. Most of the liquid and sludge spilled onto building’s sub-level floor where it was contained. An unknown quantity of the liquid overflowed onto paved parking lots—at the company’s site and next door—and into the street. Liquid in those areas entered city storm drains, which flow into the Duwamish River. Heavy flow in the drains from rainfall at the time of the spill prevented spill-response efforts to track or recover the water-soluble liquid.
Some of the liquid also entered sanitary sewer lines which flow to King County’s West Point Treatment Plant. Ecology directed the company to clean up liquid and sludge from the collapsed tank and to remove other hazardous materials stored at the plant. IPC had recently ended business operations at the facility and was in the process of removing materials and equipment. IPC has completed most, but not all, of this work.
“IPC failed to take required hazardous waste precautions that are designed to prevent a spill like this,” said K Seiler, who manages Ecology’s hazardous waste and toxics reduction program. “The safety and health of workers, the community and the environment depend on constant care and attention to properly store and handle these materials.”
Ecology investigated the incident and facility and found IPC responsible for violating six laws or regulations:
- Failure to assess the wooden storage tanks and ensure their integrity.
- Failure to conduct inspections required for such containers.
- Failure to provide secondary containment, capable of catching and holding the tanks’ entire contents.
- Failure to follow the facility’s spill-response contingency plan after the tank burst.
- The release of a pollutant to the storm drain.
- Exceeded the 90-day limit for storing hazardous waste on site.
Ecology conducted its investigation and cleanup oversight in cooperation with Seattle Public Utilities, King County Industrial Waste, and the EPA. IPC may appeal the penalty to Ecology or to the Washington State Pollution Control Hearings Board.
Southern California Ready Mix Company Fined $65,700 for Emissions Violations
The California Air Resources Board (ARB) fined Robertson’s Ready Mix $65,700 in May for diesel truck emissions violations during 2007 and 2008 at its Southern California facilities including. Los Angeles, San Bernardino, Riverside, Orange, and San Diego Counties. An ARB investigation showed that the ready mix company failed to properly inspect their heavy-duty vehicle fleet. Robertson’s Ready Mix will pay $65,700 in penalties.
“Routine inspections guarantee that vehicles stay clean, meet California’s air quality standards and protect public health,” said ARB Chairman Mary D. Nichols. “Failing to perform these inspections can lead to an increase in air pollution.”
Robertson’s Ready Mix is required to:
- Guarantee employees responsible for conducting the inspections attend a California community college training class on diesel emissions compliance testing and provide certificates of completion within one year;
- Provide documentation to ARB that the inspections are being carried out for the next four years;
- Ensure all of the company’s heavy-duty diesel trucks have their software updated with the latest low-NOx (oxides of nitrogen emissions) programming;
- Instruct vehicle operators to comply with the state’s idling regulations; and,
- Ensure that all diesel trucks are up to federal emissions standards for the vehicle model year and are properly labeled with an emission control label.
Louisiana DEQ Arrests Vacherie Plant Manager for Environmental Violations
The Criminal Investigation Division (CID) of the Louisiana Department of Environmental Quality (DEQ) has arrested a Gonzales centralized waste plant manager on 78 felony counts. They involved violations of his facility’s Louisiana Pollution Discharge Elimination System permit.
Jeffery Wayne Dabadie, plant manager of Armant Environmental Services, LLC, is accused of allowing the routine illegal dumping of untreated wastewater on the ground, bypassing discharge into a proper treatment facility, and failing to operate and maintain a proper treatment system. DEQ staff took soil samples on the property and determined there were chemicals related to oil and petroleum products on the ground.
“Cutting corners by allowing illegal dumping of untreated wastewater will not be tolerated,” said Jeffrey Nolan, DEQ-CID Manager. “We will continue to protect human health and the environment by pursuing anyone found to be willfully allowing, or engaging in illegal disposals and discharges.”
Knowing violations of LPDES permit provisions, upon convicted, can result in a fine of not less than $5,000, but no more than $50,000 per day of violation, or imprisonment for not more than three years, with or without hard labor, or both.
DEQ’s civil enforcement division participated in the investigation, along with assistance from the Louisiana State Police and the 23rd Judicial District’s District Attorney’s Office.
Note that an arrest does not constitute guilt in a criminal case. All evidence compiled during the investigation is presented to the area prosecutors who will then determine if formal charges are warranted.
Louisiana Water System Operator Arrested on Felony Charges for Violations of Water Discharge Permit
The Louisiana DEQ Criminal Investigation Division, along with local, state, and federal partners, have arrested Jeffrey Pruett on 17 felony charges involving violations of his water discharge permit. Pruett faces fines of up to $50,000 per charge and up to three years in prison per charge. Pruett was president and CEO of Louisiana Land and Water Company and the Principal Officer of LWC Management Company, which face the same felony charges. Pruett also faces civil penalties for violations relating to his water discharge permit.
Pruett operates more than 30 public water supply system units and wastewater treatment units in eastern Louisiana. Pruett is alleged to have violated his Louisiana Pollution Discharge Elimination System permit by not providing monitoring results, violating effluent discharge limits set forth in the permit, operating without a permit, having unpermitted discharges, and failing to provide proper operation and maintenance for these units.
“It’s troubling when criminal enforcement actions have to be taken to protect human health and the environment,” said DEQ Secretary Harold Leggett. “However, we are fortunate to have partners like those at EPA-CID, Louisiana State Police and in the U.S. Attorney’s Office who also take environmental regulations seriously.”
The EPA’s Criminal Investigation Division, the U.S. Attorney’s Office for the Western District, Louisiana DEQ, Louisiana State Police, and the Ouachita Parish Sheriff’s Office cooperated in the case.
Note that an arrest does not constitute guilt in a criminal case. All evidence compiled during the investigation is presented to the area prosecutors who determine if formal charges are warranted.
Three Arizona Electroplating Companies Brought Into Compliance Through ADEQ’s Plating Initiative
The Arizona Department of Environmental Quality (ADEQ) has entered into two Consent Judgments in Maricopa County Superior Court and one Administrative Order in the latest phase of the ADEQ’s Plating Initiative. This brings the number of electroplating facilities in Arizona brought into compliance with hazardous-waste rules under the ADEQ initiative to ten.
ADEQ launched the Plating Initiative in 2008 after facility inspections beginning in 2004 determined that many facilities were not in compliance with the Arizona Hazardous Waste Act, which regulates hazardous waste in the state. Hazardous wastes, along with Hazardous Air Pollutants, are the most dangerous waste streams that ADEQ regulates.
The Consent Judgments were entered against Papago Plating Company, of Phoenix, requiring Papago to spend an estimated $50,000 for a monitoring well, conduct audits of its environmental practices, and implement an Environmental Management System; and Industrial Coating and Plating, of Phoenix, which requires Industrial to pay a $20,000 civil penalty.
The Administrative Order was entered against Concours Metal Finishing, of Phoenix, in which Concours agreed to clean up a release of toxic chromium and correct the unsafe work practices that led to the release of chromium.
Both Papago Plating and Industrial Coating and Plating received Notices of Violation (NOV) for storage and disposal of hazardous waste without a permit, failure to make a waste determination, and failure to manage their disposal containers correctly. Each company has returned to full compliance since the violations were identified by ADEQ investigators in 2006.
At the Concours facility, an inspection in April 2008 found staining of the concrete floor near a leaking hexavalent chromium tank. ADEQ issued a NOV in June 2008. Company officials said that the waste was disposed of as regular trash and the company lacked a permit to store hazardous waste.
Arizona law sets a cleanup limit of 65 parts per million (ppm) of hexavalent chromium in the soil for a nonresidential facility, but the soil showed 230 ppm of chromium at the Concours facility. The Administrative Order requires Concours to assess the area of contamination within the soil, submit a report to ADEQ, and submit a cleanup plan if the soil is found to exceed the legal cleanup levels for contaminants.
Most problems with electroplating facilities involve mismanagement of hexavalent chromium, an odorless, tasteless chemical which has been known to cause lung and stomach cancer, asthma and other respiratory ailments, ulcers, anemia, allergic reactions, developmental problems in children, and damage to the male reproductive system.
“Hexavalent chromium is a very dangerous substance, which endangers not only the surrounding community but also the health and safety of the people who work with it,” said Acting ADEQ Director Patrick J. Cunningham. “We launched the ‘Plating Initiative’ to better protect human health and the environment in Arizona and to ensure Arizona’s cleanup levels are followed so that neighborhoods are protected.”
Zelmer, Inc. and Spencer Heights, LLC Fined $25,000 for CWA Violations at South Dakota Residential Development
The U.S. Department of Justice, on behalf of the EPA, has filed a civil complaint and lodged a consent decree against Zelmer, Inc. and Spencer Heights, LLC (Zelmer) to resolve alleged violations of the Clean Water Act (CWA) in Lincoln County, South Dakota. Zelmer allegedly violated the CWA during the development of a residential subdivision by failing to implement a storm water management plan and by placing material in wetlands without a permit.
“These actions compromised water quality by failing to manage runoff and by filling important wetlands,” said Diane Sipe, Director of EPA Region 8’s Water Enforcement Program. “EPA is requiring Zelmer to prevent its construction operations from depositing sediment into nearby waters and to restore the impacted wetlands. We will continue to pursue actions against those who violate federal laws that protect South Dakota’s waters.”
Zelmer’s activities caused approximately 3.29 acres of wetlands to be filled. EPA also determined that Zelmer failed to implement erosion control practices on the site, a violation of CWA storm water regulations that resulted in additional sediment loading to a tributary of the Big Sioux River. The CWA violations were discovered during an investigation by the U.S. Army Corps of Engineers.
Under the consent decree, Zelmer will restore impacted wetlands at the development site and will complete a wetlands creation project in nearby Turner County. The estimated cost to complete these wetland projects is $444,500. Zelmer will take additional actions at all of its construction sites to ensure future compliance with storm water requirements. The company will also pay a penalty of $25,000. Penalties assessed under the CWA are determined by a variety of statutory factors, including the extent of the violations, economic benefit of noncompliance, history of violations, and the defendants’ ability to pay.
California Tour Bus Company Cited $15,750 for Diesel Engine Emissions Violations
The California ARB has fined Silver State Trailways, a tour bus company based in Placentia, California, $15,750 for diesel engine emissions violations that occurred in 2007 and 2008. An ARB fleet audit found that the company had not been conducting the required annual emissions inspections on their heavy-duty diesel powered tour buses. The company will pay $15,750 in penalties.
“Annual inspections ensure that a company’s fleet is up to California’ s clean air standards,” said ARB Chairman Mary Nichols. “The cost of the inspections is a small price to pay for human health.”
As part of the settlement, Silver State must comply with the following:
- Guarantee employees that are responsible for conducting the inspections attend a mandatory California Community College class on diesel emissions inspection procedures and provide certificates of completion within one year;
- Provide documentation to ARB that the inspections are being carried out for the next four years;
- Update all applicable engines in the fleet with the latest Low-NOx (oxides of nitrogen) software programming; and,
- Ensure that all 1974 and newer diesel powered buses are up to federal emissions standards for the vehicle model year and are properly labeled with an engine certification label.
Investment Firm Fined $14,500 for Solid Waste Violations
The Massachusetts Department of Environmental Protection (MassDEP) has penalized Berkshire Investments LLC $14,500 for solid waste and wetlands violations for a location in Boston.
In response to a complaint, MassDEP inspected the property, which borders the Neponset River in the Hyde Park section, and found an area of 4,000 to 8,000 square feet being improperly used as a solid waste facility. Among the materials found included concrete rubble, piles of tires, and a dumpster with televisions and various appliances.
Berkshire Investments, which is based in Brookline, owns the property where inspectors found the firm had neither obtained a permit to operate a solid waste facility to process the material, nor obtained approval to fill what is a wetlands buffer zone as defined under the Wetlands Protection Act.
“The use of this property as a solid waste facility was carried out without the proper approvals having been sought or obtained,” said Richard Chalpin, director of MassDEP’s Northeast Regional Office in Wilmington. “Property owners have a responsibility and a legal obligation to address the impacts their actions will have on their neighbors and the environment.
Under the terms of the agreement, Berkshire Investments has agreed to cease accepting solid waste until the fill material is tested. A proscribed removal plan and destination of the solid waste material will ultimately be based on the results of those tests. Within 60 days, Berkshire Investments will submit a plan outlining the steps it has taken, the steps they will continue to take to complete the removal, and documentation of their work and analysis.
MassDEP has agreed to suspend $6,500 of the penalty provided the removal and restoration work is completed within the established guidelines.
Landlords Face Fines for Failing to Warn Tenants about Lead Paint
The owner of a Springfield, Massachusetts apartment complex and an affiliated property management company face fines for violating federal lead-based paint disclosure requirements. In a recently filed administrative complaint, EPA alleges that the property manager, National Enterprises, Inc., and owner, MA NO. 2, LLC, violated the federal Lead Disclosure Rule when they failed to disclose information about lead paint to tenants who rented their Parkview Apartments located at 23-29 Federal Street in Springfield, between June 2004 and January 2005. EPA is seeking a penalty of up to $11,000 per violation for the 30 violations of the Disclosure Rule.
Exposure to lead paint is a concern in older homes and buildings built before 1978, and is a serious health concern for children. Property owners and managers play an important role in helping to prevent lead poisoning by following lead paint disclosure requirements and making sure families are aware of potential lead hazards so that they can make informed decisions about whether to lease or purchase the housing.
Federal law requires that sellers and landlords selling or renting housing built before 1978 to:
Provide a lead hazard information pamphlet to inform renters and buyers about the dangers associated with lead paint;
- Include lead notification language in sales and rental forms;
- Disclose any known lead-based paint and lead-based paint hazards in the living unit and provide available reports to buyers or renters;
- Allow a lead inspection or risk assessment by home buyers; and
- Maintain records certifying compliance with federal laws for a period of three years.
This case is among dozens of lead-related civil and criminal cases EPA New England has taken as part of a collaborative effort between federal, state and municipal agencies and grassroots organizations to make sure property owners, property managers and real estate agents are complying with federal lead disclosure laws. EPA has conducted hundreds of inspections in New England, and, in cooperation with its partners, has conducted many compliance assistance workshops for realtors, property managers, and legal counsel.
Ohio EPA Fines Superior Marine Ways $12,200 for Hazardous Waste Violations
Superior Marine Ways, Inc., of Proctorville, Ohio, will pay Ohio EPA $12,200 for hazardous waste violations. A portion of the penalty will be used to install equipment that will reduce the amount of waste generated.
Superior Marine operates a facility that provides maintenance service for barges used for hauling products on the Ohio River. These services include barge repair and hull repair and painting. Superior Marine generates hazardous waste, spent paint and solvent, universal waste lamps, and used oil.
On January 23, 2008, Ohio EPA inspected the facility and found numerous violations of the state’s hazardous waste laws. Violations included treating hazardous waste without a permit by burning spent paint and solvent in a burn barrel. Other violations included failing to properly label containers of used oil and properly evaluate hazardous wastes generated at the facility.
Ohio EPA has determined that Superior Marine’s violations have been abated. The majority of Superior Marine’s civil penalty ($7,320) will go to the state’s hazardous waste cleanup fund. Part of the remaining portion ($2,440) will be spent purchasing, installing and operating a paint minimizer system to reduce the amount of hazardous waste generated at the facility. Another portion of the penalty ($2,440) will go toward Ohio EPA’s Clean Diesel School Bus Fund.
Center Street Auto Fined for Hazardous Waste and Air Quality Violations
The Massachusetts Department of Environmental Protection (MassDEP) assessed a $4,000 penalty to Center Street Auto Parts of Chicopee Inc., for violating state hazardous waste and air quality regulations and ordered the company to correct existing non-compliance issues.
The violations were discovered during MassDEP’s April 2008 inspection of Center Street Auto’s facility. The inspection revealed that Center Street Auto had not registered with MassDEP as a hazardous waste and waste oil generator and was not in compliance with some of MassDEP’s hazardous waste management requirements. Inspectors also found that Center Street Auto had not notified MassDEP it was operating a waste oil space heater and did not obtain an approval from MassDEP for a new aluminum smelter.
In addition, Center Street Auto violated hazardous waste management regulations by failing to keep containers of hazardous waste closed, have secondary containment for the outside storage of hazardous waste, post signs and labels for containers of hazardous waste and waste oil, and clearly delineate areas where containers of hazardous waste and waste oil were being stored.
“Auto recyclers and repair facilities that generate hazardous waste and scrap metal are obligated to be aware of and comply with applicable regulations regarding the management of hazardous wastes and air quality emissions,” said Michael Gorski, director of MassDEP’s Western Regional Office in Springfield. “These requirements are designed to ensure a safe workplace and to protect the environment.”
Center Street Auto has corrected some of the violations and has been working cooperatively with MassDEP to correct remaining violation and non-compliance issues. The company will pay a penalty of $3,000, with $1,000 of the penalty suspended for one year pending continued compliance with the terms and conditions of MassDEP’s order.
EPA Cites BP Refinery in Indiana for NESHAP Violations
U.S. EPA Region 5 has cited BP Products North America Inc. for alleged Clean Air Act violations at the company’s petroleum refinery at 2815 Indianapolis Blvd., Whiting, Indiana. EPA alleges that for calendar years 2003 through 2008, BP failed to manage and treat benzene waste from the facility as required by the national emission standards for hazardous air pollutants. The facility’s 2008 report showed that benzene waste was almost 16 times the amount allowed.
These are preliminary findings of violations. To resolve them, EPA may issue a compliance order, assess an administrative penalty or bring suit against the company in federal court. BP has 30 days from receipt of the notice to meet with EPA to discuss resolving the allegations.
Helicopter Used to Look for Sources of Benzene in Houston Ship Channel Area
Beginning in the first week of June, people in the Houston Ship Channel area may started noticing a Bell Jet Ranger helicopter in the sky over many industrial facilities in the Houston Ship Channel. The helicopter is part of a project being conducted by the Texas Commission on Environmental Quality (TCEQ) and its partner at the University of Houston to field test a new type of remote sensing technology intended to identify sources of benzene emissions.
The helicopter is equipped with specialized remote sensing technology known as Differential Absorption Light Detection and Ranging (DIAL). The TCEQ used another form of DIAL technology in a past study in the Texas City area in an effort to measure emissions from such industrial sources as liquid storage tanks and flares. The purpose of this project is to field test the capabilities of a smaller, more specialized version of DIAL technology mounted on a helicopter.
This project is part of an ongoing TCEQ effort to identify sources of volatile organic compounds (VOC) emissions in the Houston Ship Channel area. The DIAL technology used in this project has been adjusted to detect the presence of benzene. The benzene DIAL technology is based on technology that has been successfully used for many years in the oil and gas industry to search for methane leaks from underground pipelines. While ground based and airborne DIAL systems have been in use for many years, a specialized airborne benzene detection system has never been used in a field setting.
Helicopter flights will be conducted over industrial facilities in the Houston Ship Channel area. The helicopter flights will conclude no later than June 30, 2009.
New Website on Everyday Chemicals
The new website provides non-chemists and others with useful information about everyday chemicals by searching either a chemical name or a corresponding CAS Registry Number. The site currently contains approximately 7,800 chemicals of general interest as well as all 118 elements from the periodic table, providing alternative names, molecular structures, a Wikipedia link, and other information.
Toyota to Offer Hybrid Forklift
Toyota Industries plans to launch the world’s first internal combustion (IC) hybrid lift truck. The 3.5-ton diesel-powered IC hybrid lift truck called “GENEO-HYBRID” will be launched in the Japanese market in December 2009.
Amid growing awareness of the global environment and high fuel prices, the GENEO-HYBRID was developed in response to a steep rise in the market need for improved environmental performance from the standpoints of reducing CO2 emissions and fuel costs.
While the sales volume of electric lift trucks has gained a majority share in the Japanese market, mid-size (over 3 ton load capacity class) electric lift trucks only represent 6% share of all mid-size lift truck sales. This is due to the upfront investment requirements associated with high-capacity and high-voltage batteries and the installation of charging facilities. Electric lift trucks can also present additional challenges in multi-shift operations by requiring battery changeover in order to sustain continuous operation. As a result, Toyota Industries has targeted this market for its introduction of its groundbreaking new 3.5-ton diesel-powered IC hybrid lift truck.
Toyota Industries developed its hybrid system, using the hybrid technology from Toyota Motor Corporation, to match lift trucks that travel while handling a load and require frequent starting and stopping.
With a hybrid system that combines a diesel engine, electric motor, and battery power, the “GENEO-HYBRID” realizes world-class fuel efficiency—reducing CO2 emissions and fuel consumption by 50%, while keeping the same operating performance as 3.5-ton diesel-powered IC lift trucks.
Companies Failing to Report Strategies and Potential Impacts from Climate Change
According to the authors, the reports’ findings highlight the need for the SEC to respond to repeated investor requests for formal guidance on climate-related disclosure companies should be providing in securities filings.
“These findings are a clarion call for quick SEC action to require better climate risk disclosure from publicly-traded companies,” said Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk, comprised of 80 institutional investors with $7 trillion in collective assets. “Climate change is a bottom line issue and investors have a right to know which companies are best positioned for the emerging clean energy global economy.”
“Corporate climate disclosure falls far short of what CalPERS and other investors need to carry out their fiduciary duties,” added Anne Stausboll, chief executive officer of the California Public Employees’ Retirement System (CalPERS), the nation’s largest public pension fund and one of 18 investors that petitioned the SEC in fall 2007 to issue climate disclosure guidance. “We call on the SEC to ensure that information regarding climate change effects, including regulatory and physical impacts, are accessible and delivered to investors.”
The two new studies—an in-depth look at SEC filings in 2008 as well as a multi-year longitudinal study—show companies are seriously deficient in meeting the needs of investors:
- The study found overall limited disclosure: 59 of the 100 companies made no mention of their greenhouse gas emissions or public position on climate change; 28 had no discussion of climate-related risks they face; and 52 failed to disclose actions and strategies for addressing climate-related business challenges. Even more telling, the very best disclosure for any of the 100 companies could only be described as “fair,” and only a handful of companies achieved this ranking.
- While the study finds some modest improvement in climate risk disclosure since 1995, in 2008 75% of annual reports filed by S&P 500 corporations failed to even mention climate change and only 5% articulated a strategy for managing climate-related risks.
Climate Risk Disclosure in SEC Filings finds that while some climate related disclosure was common in the electric power, coal and oil & gas industries, most filings in these sectors lacked the level of detail that investors require. Many companies in the insurance and transportation sectors failed to provide any disclosure on climate-related risks and opportunities whatsoever.
“While disclosure among companies with high exposure to climate risk is increasing incrementally, the vast majority of companies in this study have still not quantified for investors key impacts to their business. Companies in certain industries like utilities have disclosed qualitative information on regulatory risks related to climate change, but very few of the 100 companies studied disclosed the physical risks, business risks, and litigation risks they face,” said Beth Young, senior research associate at The Corporate Library.
“Transparency and accountability are the hallmarks of a fair marketplace,” said Fred Krupp, president of the Environmental Defense Fund. “As the nation responds to the challenges of global warming, investors have a right to know which businesses are forging innovative solutions for the Twenty-First Century and which are lagging behind. The Securities and Exchange Commission must do its part to reclaim a fair marketplace that protects the interests of all investors from Wall Street to Main Street.”
Reclaiming Transparency in a Changing Climate finds a troubling pattern of silence on climate-change-related issues in filings across major sectors of the economy. “To effectively build the new energy economy, investors need to know who’s planning for the future and who isn’t,” said Kevin Doran, co-author of the report. “Investors should not have to guess at the meaning of corporate silence.” Based on review of over 6,000 10-K filings spanning more than a dozen years, the report finds: “Despite the clear imperative for prudent oversight, the SEC has failed to protect investors from enduring inadequacies in corporate disclosure concerning the material risks and opportunities posed by climate change.”
The study assessed climate risk disclosure for three broad categories using the Global Framework for Climate Risk Disclosure as a guide. The categories studied include 1) emissions and climate change position, 2) risk assessment, and 3) actions to address climate risks and opportunities. Specific key findings for the five sectors studied include:
- Electric Utilities: Disclosure was widespread but minimal. None of the 26 companies studied achieved a “Fair” rating on disclosure of emissions and climate change position, only 3 out of 26 companies (12%) ranked “Fair” on climate risk assessment, and only 2 out of 26 companies (8%) provided “Fair” disclosure of actions to address climate change. Nevertheless, the electric power sector ranked higher than the other sectors and had three of the highest disclosing companies in the study—AES, Xcel, and PG&E.
- Coal: All six coal companies surveyed included some disclosure of climate change issues in their 10-K filings, though only one achieved a “Fair” score in any of the three categories analyzed. Coal companies’ strongest disclosure was in the area of risk assessment; five of the companies provided disclosure in this category that was rated “Limited” or “Fair.” Rio Tinto provided the best disclosure, including valuable information on emissions, while Yanzhou Coal Mining Co., performed the worst overall.
- Oil and Gas: The majority of the 23 companies studied provided some disclosure on climate risk assessment, but disclosure was weak with none ranking “Fair” and 22 out of 23 (96%) scored as “Limited” or “Poor.” Twelve out of 23 companies (52%) provided no disclosure on actions to address climate change, while 17 out of 23 companies (74%) disclosed no information on their emissions or climate change position. Apache, Exxon Mobil, and Anadarko were noted for particularly weak overall disclosure, while Shell scored best across the board.
- Transportation: Only 5 of 19 (26%) disclosed their emissions or their climate change position, and none were ranked as “Fair” for this disclosure. General Motors was the only company to provide information on past emissions from its operations, while not a single company disclosed emissions associated with vehicle use. More companies provided disclosure on climate risk and actions to address climate change; however, the disclosure was weak with only 3 companies scoring “Fair” on climate risk assessment and 2 scoring “Fair” on their actions to address climate risks. Honda, Daimler, and General Motors scored the highest overall.
- Insurance: Although prudent risk assessment is the basis for a viable insurance industry, the 27 companies studied in this sector provided the least disclosure compared to other sectors. Eighteen (67%) had no mention of climate change or related risks anywhere in their SEC filings; 24 out of 27 companies (89%) omitted disclosure on actions to address climate change, despite the wide range of opportunities for new, climate-related insurance products. The handful of companies that did provide more informative disclosure—Swiss Re, Munich Re and Zurich Financial—were all non-U.S. companies.
The Corporate Library report concludes that, despite the clarity of climate science and the host of policies being enacted to combat global warming’s ill effects, climate-related disclosure in SEC filings still falls short. Furthermore, climate risk disclosure in SEC filings is insufficient to meet investors’ needs largely because the SEC has failed to take actions to highlight its importance. Although pressure from investors has clearly had some effect upon companies’ disclosure practices, companies are unlikely to comprehensively disclose climate risks and opportunities in SEC filings in the absence of clear guidance from the SEC.
Environmental News Links
Trivia Question of the Week
Which of the following climate change headlines is true?
a. To prevent it from melting due to climate change, the last remaining glacier in Germany will be covered with plastic tarps this summer.
b. The once dwindling stocks of Washington State wild salmon have begun to surge as fresh water from melting glaciers has reversed salt water intrusion into the state’s rivers.
c. Coffee beans, which were formerly grown only in equatorial climates, can now be grown in southern regions of Florida, California, and Texas.
d. Researchers from the University of Michigan found a way to sequester carbon from coal fired powered plants to manufacture sodium bicarbonate-based drywall, which if used as a building material worldwide would reduce C02 emissions by almost 50%.