“Today’s action is a key step in bringing the oversight of these potentially dangerous materials into the 21st century,” said Mathy Stanislaus, EPA assistant administrator for the Office of Solid Waste and Emergency Response. “Once fully implemented, the national e-Manifest system will provide greater access for emergency responders to information about the types and sources of hazardous waste that are in transit between generator sites and waste management facilities.”
This will allow the current process, which requires paper forms, to be streamlined and greatly reduce the millions of paper manifests produced each year.
The Hazardous Waste Electronic Manifest Establishment Act requires EPA to issue a regulation authorizing the use of electronic manifests as the legal equivalent of the current paper manifest forms used to track shipments of hazardous waste from a generator’s site to the ultimate site of disposal. EPA’s goal is to promote the greatest possible use of electronic manifests.
The e-Manifest program is the vanguard of the agency-wide initiative to develop new tools to reduce the reporting burden on regulated entities, and provide the agency, states, and the public with easier access to environmental data. EPA estimates the national e-Manifest system will ultimately reduce the burden associated with preparing shipping manifests by between 300,000 and 700,000 hours, and result in cost savings of more than $75 million per year for states and industry. In line with the agency’s e-Enterprise principles, the e-Manifest system will significantly improve access to higher quality and more timely waste shipment data, and will empower communities through increased transparency and more accurate information on completed waste shipments and management trends.
The final rule will establish the legal and policy framework for using electronic manifests; however, several more steps will be needed before the e-Manifest program can be implemented. These include establishing the system and initial fee structure. This year, EPA will work with states, industry, and other stakeholders to develop plans for the many key aspects of the system and address concerns of intersystem compatibility. The Agency will also begin developing the initial fee structure of the system, including implementation and compliance dates, through a rulemaking. Stakeholders and interested parties will have the opportunity to comment on the proposed rule when it becomes available.
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How to Implement OSHA’s Globally Harmonized Hazard Communication Standard
OSHA has issued a final rule revising its Hazard Communication Standard, aligning it with the United Nations’ globally harmonized system (GHS) for the classification and labeling of hazardous chemicals. This means that virtually every product label, material safety data sheet (now called “safety data sheet” or SDS), and written hazard communication plan must be revised to meet the new standard. Worker training must be updated so that workers can recognize and understand the symbols and pictograms on the new labels as well as the new hazard statements and precautions on SDSs.
EPA Settlement with Superior Forge and Steel Corp Enforces Chemical Reporting Rule
EPA recently announced that Superior Forge & Steel Corporation will pay a $61,673 penalty to settle alleged violations of toxic chemical reporting requirements at its forged steel production plants in New Castle and Pittsburgh, Pennsylvania.
The law also requires facilities to report on their hazardous chemicals to state and local emergency response agencies. This information helps communities and first responders to prepare for chemical emergencies.
According to EPA, Superior Forge did not submit timely annual reports for two toxic chemicals, chromium and lead, when the company processed these chemicals in amounts exceeding EPCRA reportable quantities (25,000 lbs. for chromium, 100 lb. for lead).
The alleged violations occurred at the New Castle facility in 2010 and 2011, and at the Pittsburgh facility in 2011.
As part of the settlement, the company did not admit liability for the alleged violations. The settlement penalty reflects the company's cooperation with EPA in resolving this matter, and complying with applicable EPCRA requirements.
California Aims to Increase Efficiency, Demand Response to Meet Need for Reliable, Low-Carbon Energy System
It forecasts California's future energy supply and demand and features a single managed demand forecast that leaders of the Energy Commission, California Public Utilities Commission (CPUC) and the California Independent System Operator Corporation (ISO) agreed to use for planning and investment purposes. Equally important, each of the nine chapters includes recommendations for how to address regulatory and market challenges. It also lists steps being taken to balance supply and demand and mitigate reliability risks.
"The only way we can maintain a reliable power system in Southern California with minimal economic and environmental costs is with a balanced portfolio of preferred and conventional resources," said Energy Commission Chair Robert B. Weisenmiller. "This IEPR focuses on increasing the deployment of preferred resources, in particular energy efficiency and demand response."
Key Findings:
- The urgency to scale-up demand response is high, if California is to maintain a reliable electric system, particularly in Southern California, in the absence of the San Onofre Nuclear Generating Station (SONGS), the retirement of power plants that use once-through-cooling, and the need for flexibility to integrate intermittent renewable resources. Despite its primary position in the loading order, there has been little progress toward integrating demand response into standard practice for grid operation. The energy agencies are working diligently to address market barriers to increase deployment of demand response.
- California must plan for how climate change is likely to compromise electricity supply and demand, particularly during heat waves and cold snaps. For the first time, the 2013 IEPR looked at the impact climate change will have on electricity and natural gas consumption, in addition to electricity peak demand. Under a "mid" climate scenario, it found that consumption would increase by about 1,200 gigawatt hours and peak demand by 1.5 gigawatts in the next 10 years (equivalent to three large conventional power plants). Taking climate change into account in the IEPR planning process will reduce the possibility of future electricity shortfalls under a warming climate.
- For the first time, the 2013 IEPR included additional achievable energy efficiency (AAEE) scenarios directly within the demand forecast. The energy agencies' leaderships agreed to use the combined mid-demand baseline forecast and mid-AAEE scenario for their respective planning purposes. Significantly, the agreed-upon scenario anticipates nearly flat load growth over the next 10 years.
- While trends indicate gasoline consumption will continue to decline, California's population is continuing to grow. With the transportation sector contributing nearly 40% of greenhouse gas (GHG) emissions, increasing low- and zero-emission vehicle use is essential to achieve a 10% carbon intensity reduction in fuels by 2020.
"While California is a leader in addressing climate change, further work is needed to reduce GHG emissions and prepare California's energy system for the impacts of climate change," said Energy Commissioner Andrew McAllister. "Our economy, environment, and public health depend on cutting carbon along with criteria pollutants and investing in the infrastructure needed to deliver safe, reliable and affordable energy. This report identifies what we need to do immediately and in the years ahead if we are to realize our future energy and climate goals."
The 2013 IEPR focused on how to enhance the energy efficiency of both new and existing buildings. By adopting a basic definition of Zero Net Energy, the Commission sets the stage for its inclusion in future updates to California's building standards for new construction. The report also considers policy approaches for achieving meaningful performance improvements in the state's diverse stock of existing buildings—the second largest source of carbon emissions in California.
Achieving California's 2050 GHG emission reduction goals (80% below 1990 levels) will require substantial transformation of California's energy system. The analysis will focus on three strategies to reduce GHG emissions: energy efficiency, particularly in existing buildings; expanded zero-emission vehicles deployment; and decarbonizing the Western grid. The Energy Commission and California Air Resources Board will also jointly develop metrics to track progress against the 2013 Scoping Plan update.
The report incorporates and relies on data from the state's other principal energy agencies, the CPUC and California ISO. The Energy Commission and CPUC established California's "loading order" for new energy resources that puts energy efficiency and demand response first, renewable electricity supplies second, and new fossil-fired power plants last. The order was adopted in 2003 and is the foundation for IEPR reports.
Thousands of Potentially Harmful Natural Gas Leaks Found in Washington, D.C.
High levels of natural gas are escaping from the aging pipes beneath the streets of the nation’s capital, creating potentially harmful concentrations in some locations, a new study has found. Natural gas leaks pose explosion risks, health concerns, and contribute to climate change. The paper, which appears in the ACS journal Environmental Science & Technology, also provides information that could help companies justify additional financial incentives for fixing leaks quickly.
Robert Jackson and colleagues note that natural gas leakage is a serious problem on multiple levels, including impacts on the economy and climate. Property damage is estimated at $133 million annually, and by one estimate, gas customers in the US between 2000 and 2011 absorbed the cost of escaping gas to the tune of $20 billion. And on the global scale, leakage can contribute to climate change. Methane is a potent GHG—far more potent than carbon dioxide.
But there’s also the potential threat to human life and health. On average, natural gas pipeline accidents in the US kill 17 people a year. Also, methane, the primary component of natural gas, can react with nitrogen oxides and spur the formation of ozone, which can aggravate asthma and other lung conditions.
Figuring out how to put a cap on leaks would mitigate these issues. But first, researchers have to know where the gas is coming from. A previous study the team conducted in Boston mapped out about 3,400 pipeline leaks along the city’s 758 miles of roads. The researchers decided to make a similar map in the nation’s capital.
In January and February 2013, they drove all of the 1,500 miles of Washington, D.C., roads with an instrument that took methane readings close to the ground every 1.1 seconds. They found nearly 6,000 leaks, with the highest concentration of methane at about 45 times what would be expected with no leak.
At 19 sites with high concentrations, the researchers tested the manholes. Some manholes had methane concentrations as high as 500,000 parts per million—about 10 times greater than the threshold at which explosions can occur. Researchers notified the gas company, and a follow-up test in June 2013 found that nine manholes still had dangerously high levels of methane.
The research suggests that the leaks are coming from city’s aging cast-iron pipe infrastructure, which makes up about 35% of the city’s main pipes.
“Financial incentives and targeted programs among companies, public utility commissions and scientists to reduce leaks and replace old cast-iron pipes will improve consumer safety and air quality, save money, and lower greenhouse gas emissions,” the researchers conclude.
Illinois EPA Files Emergency Rules Addressing Coke and Coal Piles
Illinois Environmental Protection Agency Director Lisa Bonnett has filed emergency rules with the Illinois Pollution Control Board to ensure stringent regulation of petcoke piles throughout Illinois. The rules are part of Governor Pat Quinn’s directive last this week to address the growing problem of petcoke storage in Illinois and protect Illinois residents and the environment.
Petcoke is a byproduct of refining whose production has increased as a result of greater refining of Canadian crude oil in Indiana, resulting in more being stored particularly at facilities in Southeast Chicago. It has prompted growing concern among nearby residents about blowing petcoke dust.
“No matter who you are or where you live, everyone has a right to a healthy environment,” Governor Quinn said. “Today’s action will ensure that no one in Illinois has to worry about petroleum coke.”
“Emergency action is necessary to address these piles of petroleum coke and ensure the protection of Illinois’ residents, air, land and water,” added Illinois EPA Director Lisa Bonnett. She also said IEPA will make no decisions to approve pending permit applications from petcoke storage facilities “until we are assured there will be no adverse environmental impact.”
“Through the lawsuits that we have filed against these companies and through legislation that we have drafted, we are working to ensure that they cannot continue to pollute the air and water in Chicago or in any other community in Illinois,” said Attorney General Lisa Madigan.
Through the emergency rules, the Illinois EPA is seeking actions from facilities storing coke and coal that include the installation of equipment such as wind monitors, dust suppression systems, plans to address storage issues, and ultimately the total enclosure of all coke and coal piles. The Agency estimates 36 facilities will potentially be affected by the emergency rules.
The rules take effect after Illinois Pollution Control Board (IPCB) files them with the Illinois Secretary of State. This action could come as soon as the IPCB’s next meeting on January 23. The major provisions include:
- Within five days, a facility must install equipment to monitor wind speed
- Within 30 days, a facility must install dust suppression systems along conveyor systems and any piles that are not totally enclosed
- Within 45 days, a facility must submit applications for necessary permits and implement comprehensive wastewater and stormwater runoff controls that ensure that runoff that has come into contact with the piles is prevented from entering the waters of the state
- Within 45 days, a facility must submit a plan to the IEPA for total enclosure of all coke and coal piles, transfer points, loading and unloading areas, screening areas, crushing and sizing areas to be completed as quickly as possible but no later than two years after these rules are adopted. Enclosure structures must be equipped with air pollution systems at all vents and entrances and exits for material and vehicles as well as an impermeable base to guard against ground seepage.
- Within 45 days, a facility must submit a plan to the IEPA to minimize the impact of truck traffic on residential areas near the source. All petcoke loading and transport must be done in vehicles sufficiently covered to guard against fugitive dust emissions.
- Within 45 days, a facility must submit a plan to the IEPA for coke and coal fugitive dust that must adhere to requirements in the Illinois Environmental Protection Act and must be updated at least semi-annually or within 30 days of a major equipment or control change
- Within 60 days, a facility must remove all petcoke and coal that has been at the source for more than one year
- Within 60 days, a facility must locate any piles, loading operations, transfer or emission points that are not totally enclosed to at least 200 feet inside the property line of the source, a minimum of 200 feet from all waters of the US, all public water supply reservoirs and intakes and all potable wells and onto impenetrable bases or pads
- Within 60 days, no pile may exceed 30 feet in height
- Each calendar week, a facility must measure moisture content of representative samples and adjust dust suppression measures so as to meet certain standards and inspect all dust suppression equipment so as to ensure adequate operations
- At least monthly, a facility must certify the operation of all dust suppression systems at all times during the processing of coal and coke and submit records to IEPA showing the types and quantities of materials delivered to and transported from the source, and data reflecting cleaning, street-sweeping, and equipment maintenance frequency
Prior to the filing, the Illinois EPA referred two petcoke facilities to Illinois Attorney General Lisa Madigan’s Office alleging numerous environmental violations. The Attorney General, in cooperation with the city of Chicago, subsequently filed lawsuits against the two companies. The EPA is also actively working in concert with state and local agencies to address issues raised by concerned community members.
The Illinois EPA is given authority to file emergency rules with the Illinois Pollution Control Board under the Illinois Environmental Protection Act. The Illinois Pollution Control Board shall receive the rules and decide whether to file them with the Illinois Secretary of State. The Board’s next regularly scheduled meeting is January 23, 2014. If the Board decides to file the rules, they take effect on an emergency basis upon acceptance by the Secretary of State. Emergency rules are valid for 150 days.
Warner Graham Settles Hazardous Waste Violations at Maryland Facility
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, Maryland, the EPA announced recently.
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.
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.
Phoenix Color Corp. Settles Hazardous Waste Violations at Hagerstown Facility
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, Maryland, the EPA announced recently.
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 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.
Louvers Improperly Discharged Wastewater into the L.A. County Sewer System
EPA announced that Air Louvers will pay $43,000 for violations of the Clean Water Act. The Commerce, California, manufacturing company was found to be improperly discharging wastewater from its metals finishing operations into the Los Angeles County Sanitation District (LACSD) sewer system. As part of this settlement, Air Louvers will spend an additional $23,350 on equipment upgrades at its facility.
“Toxic wastewater flowing into the Los Angeles sewer system can reach the Pacific Ocean,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest.
Air Louvers owns and operates a facility that manufactures louvers, access panels, metal cabinets, and doorframes. As part of its production processes, the facility generates and discharges wastewater to the LACSD sewer system.
EPA’s investigations began in August 2010 and discovered that the facility had discharged wastewater above federal limits for copper and zinc from May 2006 to January 2011—a violation of its federal pretreatment discharge requirements. EPA’s standards are designed to protect municipal sewer systems and wastewater treatment plants from adverse effects of toxic discharges, including the potential pass through of toxics to the Pacific Ocean.
In addition to the $43,000 penalty, as part of this settlement, Air Louvers will spend an additional $25,350 to install additional equipment including water recycling and evaporation equipment that will eliminate all wastewater discharges from its manufacturing plant.
The 30-day public comment period ends on February 12, 2014.
Howard County, Maryland, Settles Underground Storage Tank Violations at Two Facilities
EPA cited the county for not complying with safeguards designed to prevent, detect, and control leaks of petroleum and other hazardous substances from USTs.
According to EPA, a 1,000-gallon UST containing used oil, located at the Bureau of Utilities at 8250 Old Montgomery Rd., was not regularly monitored for leaks for three and a half years. Also, the county failed to provide cathodic protection for piping to a 2,500 gallon UST containing diesel fuel, located at Long Reach Fire Station #9 on 5950 Tamar Drive.
With millions of gallons of petroleum products and hazardous substances stored in USTs throughout the US, leaking tanks are a major source of soil and groundwater contamination. EPA and state UST regulations are designed to reduce the risk of underground leaks and to promptly detect and properly address leaks thus minimizing environmental harm and avoiding the costs of major cleanups.
The settlement penalty reflects the Howard County’s cooperation with EPA in correcting the alleged non-compliance and resolving this matter. As part of the settlement, the county did not admit liability for the alleged violations.
SunOpta Settles Violations of Chemical Release Reporting Requirements
EPA recently announced that SunOpta Consumer Products Group, a division of SunOpta Foods, Inc., has agreed to pay a $19,049 penalty for failing to properly report a September 12, 2012 ammonia release at its food processing facility in Allentown, Pennsylvania.
This information ensures that state and local officials have timely and complete information to respond to chemical emergencies.
According to EPA, the facility released at least 450 lb of anhydrous ammonia, a hazardous chemical, to the air on September 12, 2012. Employees were evacuated and the Upper Macungie Fire Department responded to a 911 call, determined that no action was needed and allowed employees to return to the facility. SunOpta did report the release to the Pennsylvania Department of Environmental Protection. However, the company did not immediately report this release, as required under EPCRA, to two other state and local emergency response agencies: the Pennsylvania Emergency Management Agency and the Lehigh County Emergency Services office.
The settlement penalty reflects the company’s good faith and cooperation with EPA in resolving this matter. In the settlement, the company did not admit liability for the alleged violations, but has stated that it is now in compliance with applicable regulatory requirements.
EPA Finds AllenCo Facility Fails to Operate Safely, Violates Clean Air and Water Acts
Recently, the EPA notified AllenCo Energy, Inc., of violations at its South Los Angeles oil production facility following the agency’s November 6, 2013 inspection.
“By failing to take necessary steps to maintain safe operations, including preventing accidental releases, the facility put the health and well being of nearby residents at risk,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “EPA will work vigorously to protect the community by ensuring that AllenCo complies with federal environmental laws.”
In addition, facilities must identify hazards which may result from accidental releases in order to maintain a safe facility. Because AllenCo’s facility is connected through storm drains to the Los Angeles River, it is required to have an SPCC plan.
EPA found that AllenCo:
- Failed to inspect pressure vessels, steel piping, steel tanks, or perform thickness and corrosion rate tests in piping
- Failed to follow equipment manufacturers’ recommendations for testing, calibration and repair of its methane and flame detectors
- Failed to accurately diagram the facility
- Failed to develop and implement a complete SPCC plan in a timely manner
- Failed to train personnel on the proper operation and maintenance of equipment
- Failed to maintain an emergency contact list of local agencies or develop reporting instructions for employees in case of oil discharges
- Failed to record inspections and produce required inspection schedules
By January 27, 2014, AllenCo must respond to these violations. EPA is evaluating its enforcement options against the company.
ADEQ Issues New Water Quality General Permit Available for Preparing Biosolids for Land Application
Biosolids are nutrient-rich organic materials resulting from the treatment of sewage sludge. When treated and processed, sewage sludge becomes biosolids, which can be safely recycled and applied as fertilizer to sustainably improve and maintain productive soils and stimulate plant growth. Only biosolids that meet the most stringent standards spelled out in federal and state rules can be approved for use as fertilizer.
Coverage under the general permit will be available for those Treatment Works Treating Domestic Sewage (TWTDS) who prepare biosolids for land application that do not otherwise have coverage for the preparation of biosolids under an Arizona Pollutant Discharge Elimination System permit.
A general permit is a cost-effective and efficient way for ADEQ to authorize discharges from similar facilities. General permits also benefit applicants by significantly reducing the cost and shortening time necessary to obtain permit coverage. Individual permits previously costing as much as $30,000 and taking up to a year to issue will now be available as general permits costing between $1,250 and $2,000 and be issued in much less time.
Further, as general permits are developed to restrict discharges at multiple facilities, the requirements are at least as stringent as would be required under an individual permit. Thus, cost and time savings do not come at the expense of environmental protection.
“We are always looking for ways to reduce permit processing times while maintaining the same or higher level of environmental protection,” said ADEQ Director Henry Darwin. “It generally takes a wastewater treatment plant from nine to 12 months to receive an individual permit. This new general permit will take less than four months to process and will offer the same or better water quality protection due to comprehensive monitoring.”
TWTDS already with individual permits may be eligible for one of the new general permits at the time of renewal if the requirements for coverage can be met.
Ohio to Revise Facility Emergency and Hazardous Chemical Inventory Form Rule
On behalf of the State Emergency Response Commission (SERC), the Ohio Environmental Protection Agency, Division of Air Pollution Control has reviewed Ohio Administrative Code (OAC) Rule 3750-30-20, "Facility emergency and hazardous chemical inventory form" and is recommending changes.
Ohio EPA has prepared draft amended rule language that incorporates new data elements and revising some existing data elements on the Emergency and Hazardous Chemical Inventory Form under the Emergency Planning and Community Right-to-Know Act. The changes shall align our state rule with the federal rule to ensure the program is equivalent in scope, content, and coverage. The intent of amended changes is to make reporting easier for facilities and make the form more user-friendly for state and local planners and responders.
As part of the rule-making process, Ohio EPA is required by Section 121.39 of the Ohio Revised Code to consult with organizations that represent political subdivisions, environmental interests, business interests, and others affected by the rules. The Ohio EPA is offering your organization the opportunity to comment on these rules before the division formally proposes them.
Cambria Community Services District Agrees to Sewage Spill Penalty
The spills occurred in January, October, and December 2011 and totaled about 370,000 gallons.
“The Water Board takes these types of wastewater violations seriously and is committed to following up with appropriate enforcement. We also appreciate the district’s willingness to accept responsibility and make needed improvements to its infrastructure,” said Michael Thomas, the Central Coast Water Board’s assistant executive officer.
The district will pay half of the penalty to the state Cleanup and Abatement Fund. The other half will go toward a project by the district to evaluate improvements to the wastewater treatment facility to remove nitrogen and produce recycled water.
Central Coast Water Board staff will accept comments on the proposed settlement until February 10, 2014. Staff will then present the settlement to the Central Coast Water Board for approval.
RGGI States Make Major Cuts to Greenhouse Gas Emissions from Power Plants
Having completed revisions to their state CO2 Budget Trading Programs, the nine states participating in the Regional Greenhouse Gas Initiative (RGGI) recently announced that the 2014 RGGI cap is 91 million tons. This represents a 45% reduction to the RGGI CO2 cap. To further build on this progress, the RGGI cap will decline 2.5% each year from 2015 to 2020. By 2020, power plant CO2 pollution in the nine RGGI states is projected to be half of 2005 levels.
The first CO2 allowance auction under the new cap, and the twenty-third RGGI auction overall, will take place on March 5, 2014. The RGGI states released the Auction Notice for CO2 Allowance Auction 23 recently.
Having strengthened their successful carbon pollution reduction program, the RGGI states have submitted extensive comments to the EPA describing why regional cap-and-trade programs, like RGGI, offer a simple, cost-effective way for states to comply with upcoming EPA regulations to cut CO2 pollution from existing power plants.
“RGGI has once again proven that state leadership provides the laboratory for innovation,” said Kenneth Kimmell, Commissioner of the Massachusetts Department of Environmental Protection and Chair of the RGGI, Inc. Board of Directors. “RGGI is a cost-effective and flexible program that can serve as a national model for dramatically reducing carbon pollution for other states throughout the nation.”
“RGGI’s market-based program takes a key step forward with the implementation of these 2014 program changes,” said Commissioner Daniel C. Esty of Connecticut’s Department of Energy and Environmental Protection and Vice-Chair of the RGGI, Inc. Board of Directors. “The cap reduction and accompanying RGGI program improvements will help ensure RGGI’s continued effectiveness – strengthening its position as a carbon pollution reduction model for the nation.”
“The RGGI cap reduction, along with other changes to the program, will help the RGGI states further reduce carbon emissions while fueling clean energy economic development by funding investments in energy efficiency and renewable energy,” said Collin O'Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control and Vice-Chair of the RGGI, Inc. Board of Directors. “Last year, each of the nine states pledged to propose regulatory changes to lower the cap. Each state stepped up to the plate and got the job done.”
Minnesota Photo-Etching Operation Penalized for Wastewater Violations
The Minnesota Pollution Control Agency (MPCA) has penalized Dentim, Inc., a photo-etching facility doing business as ETCHIT in Buffalo, Minnesota, for violations of the company’s state-issued water quality permit.
The company holds a wastewater discharge permit, which authorizes the facility to discharge pretreated process wastewater to the city of Buffalo’s sanitary sewer system. The permit was issued in December 2006 and expired in October 2011. The company applied for permit reissuance in 2012 and was, therefore, allowed to operate under the expired permit.
In reviewing the facility’s file when the application for permit issuance was received, MPCA permitting staff noted that the company appeared to have failed to comply with a number of the terms and conditions of its permit. MPCA staff subsequently inspected the facility in July 2012. Based on the results of that visit and file review, MPCA staff found that the company had partially or completely failed to comply with most of its permit requirements, including submitting a plan for regular sampling of its wastewater discharges, conducting required sampling, submitting sampling results to the agency, and limiting discharge of regulated pollutants to parameters specified in the permit.
At the time of the compliance visit from MPCA staff, company officials indicated that they knew they had a state wastewater discharge permit, but were unaware of its requirements.
The result was that potentially toxic metals including cadmium, chromium, copper, lead, and other regulated metals in the facility’s wastewater were not pretreated as required by permit before discharge to the city of Buffalo’s treatment system. These and other so-called “heavy metals” can have toxic effects on aquatic organisms and human health. Pretreatment is required to prevent metals from passing through municipal treatment systems into the environment.
The company agreed to pay an $18,000 civil penalty in six installments through May 2014. In addition the company is submitting reports and plans to the MPCA detailing how it intends to ensure it will operate within the requirements of its permit.
When calculating penalties, the MPCA takes into account how seriously the violation affected the environment, whether it is a first-time or repeat violation, and how promptly the violation was reported to appropriate authorities. It also attempts to recover the calculated economic benefit gained by failure to comply with environmental laws in a timely manner.
Two Men Charged in Las Vegas with Biofuels Fraud Scheme
Two men have been indicted by a federal grand jury in Las Vegas for offenses involving the federal renewable fuel program that allegedly netted them more than $37 million, announced the Justice Department’s Environment and Natural Resources Division, Criminal Division, and the US Attorney’s Office for the District of Nevada.
The indictment was unsealed late Wednesday following Jariv’s initial appearance in federal court in Las Vegas, which followed his arrest on Tuesday. Stoliar resides in Australia.
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production of biodiesel and to encourage biodiesel use in the United States. Biodiesel producers and importers could generate and attach credits known as “renewable identification numbers” or RINs to biodiesel they produced or imported. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value. In addition, in order to create an incentive for biodiesel in the United States to be used in the United States, anyone who exports biodiesel is required to obtain these valuable RINs and provide them to EPA. The market price charged for exported biodiesel therefore includes the value an exporter is required to later spend to acquire these RINs.
The indictment alleges that beginning around June of 2009, the two defendants, James Jariv and Nathan Stoliar, operated and controlled a company—City Farm Biofuel in Vancouver, British Columbia, Canada—that held itself out as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. Jariv also operated and controlled a company based in Las Vegas, Nevada, called Global E Marketing. The government alleges that these defendants claimed to produce biodiesel at the City Farm facility, claimed to import and sell biodiesel to Global E Marketing, and then generated and sold RINs based upon this claimed production, sale, and importation. In reality, little to no biodiesel produced at City Farm was ever imported and sold to Global E Marketing as claimed. The indictment alleges that the defendants’ scheme allowed them to generate approximately $7 million in RINs that were fraudulent, which were then sold to companies that needed to obtain them.
The indictment also alleges that, beginning around the same time period and continuing through December 31, 2013, the defendants, using their company MJ Biodfuels, bought over 23 million gallons of RIN-less biodiesel that had been blended with small amounts of petroleum diesel, known as B99, from companies in the United States. The defendants sold some of this biodiesel to purchasers in the United States, claiming it was pure biodiesel, known as B100, produced at the City Farm facility and imported into the United States. By claiming this biodiesel was B100 and not RIN-less B99, the defendants were able to claim the fuel was eligible to be used to generate credits and incentives, and were able to sell the fuel for significantly more than they otherwise would have been able. The defendants also exported the RIN-less B99 they bought in the United States to Canada. The defendants then sold the biodiesel in Canada, and conspired not to acquire and provide RINs for these exports to the United States as they were required to do, but instead to keep the money they received from the sales for themselves. The indictment alleges that, in doing so, the defendants failed to give to the United States RINs worth in excess of $30 million, keeping this money for themselves instead.
The indictment alleges that the defendants created false records and made false statements to conceal their fraudulent claims of biodiesel production, importation, sale, and fraudulent RIN generation. Finally, the indictment alleges that the defendants engaged in a conspiracy to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to conceal the illegal nature of the funds they received, and to attempt to protect these funds from government enforcement. The United States also seized and restrained the assets contained in a number bank accounts utilized by the defendants, as well as several pieces of real and personal property in Las Vegas, Nevada.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Trivia Question of the Week
What promising new discovery by researchers from the University of Georgia could be valuable in cleaning up environmental contamination?
a. Ground peach pits
b. Blueberry nectar
c. Poison-breathing bacteria
d. Ground pecan shells