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AmeriScan: August 19, 2005

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Bankruptcy of Polluting Companies Shifts Cleanups to Taxpayers

WASHINGTON, DC, August 19, 2005 (ENS) - The burden of cleaning up Superfund and other hazardous waste sites is increasingly shifting to taxpayers, since businesses handling hazardous substances are no longer taxed under the Superfund law and the backlog of sites needing cleanup is growing, according to a new report by Congressional investigators.

While more than 231,000 businesses operating in the United States filed for bankruptcy in fiscal years 1998 through 2003, the extent of their environmental liabilities is not known because neither the federal government nor other sources collect this information, says the report, prepared by the Government Accountability Office (GAO).

Information on bankrupt businesses with federal environmental liabilities is limited to data on the bankruptcy cases that the Justice Department has pursued in court on behalf of the U.S. Environmental Protection Agency (EPA). The Justice Department initiated 136 such cases from 1998 through 2003.

The GAO prepared its report in reponse to a request by Senators Jim Jeffords, a Vermont Independent who services as Ranking Minority Member of the Senate Environment and Public Works Committee; and Democrats Patrick Leahy of Vermont, who serves as Ranking Minority Member on the Senate Judiciary Committee; Barbara Boxer of California, and Maria Cantwell of Washington.

In seeking to hold liable businesses responsible for their environmental cleanup obligations, the EPA faces significant challenges, the GAO found.

The problems often stem from the differing goals of environmental laws that hold polluting businesses liable for cleanup costs and other laws that, in some cases, allow businesses to limit or avoid responsibility for these liabilities.

Businesses can legally organize or restructure in ways that can limit their future expenditures for cleanups by separating their assets from their liabilities using subsidiaries.

While many such actions are legal, transferring assets to limit liability may violate federal law in some cases. But even so, such cases are difficult for EPA to identify and for the Justice Department to prosecute successfully, the GAO found.

The intent of bankruptcy law to give debtors a fresh start presents an additional challenge to the EPA’s ability to hold parties responsible for their cleanup obligations. And by the time a business files for bankruptcy, it may have few, if any, assets left to distribute.

In addition, the EPA lacks timely, complete, and reliable information on the thousands of businesses filing for bankruptcy each year.

Still, the EPA could better ensure that bankrupt and other financially distressed businesses meet their cleanup obligations by making greater use of existing authorities, the GAO reports.

For example, EPA has not implemented a 1980 statutory mandate under Superfund to require businesses handling hazardous substances to demonstrate their ability to pay for potential environmental cleanups.

"EPA has cited competing priorities and lack of funds as reasons for not implementing this mandate, but its inaction has exposed the Superfund program and U.S. taxpayers to potentially enormous cleanup costs at gold, lead, and other mining sites and at other industrial operations, such as metal-plating businesses," the GAO reports.

Also, EPA has done little to ensure that businesses comply with its existing financial assurance requirements in cleanup agreements and orders, the investigors observe, saying, "Greater oversight and enforcement of financial assurances would better guarantee that cleanup funds will be available if needed."

Greater use of other existing authorities - such as tax offsets, which allow the government to redirect tax refunds it owes businesses to agencies with claims against them - could produce additional payments for cleanups from financially distressed businesses, the GAO recommends.

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Sterilization Firm to Pay $1.5 Million for Clean Air Violations

WASHINGTON, DC, August 19, 2005 (ENS) - For the first time, violations of federal ethylene oxide emissions standards for a company's sterilization facilities have been settled on a nationwide basis.

The Justice Department and the U.S. Environmental Protection Agency (EPA) said Thursday they have reached a $1.5 million agreement with the Cosmed Group, Inc., headquartered in Jamestown, Rhode Island, which sterilizes products for the food and medical industries using ethylene oxide.

The Cosmed facilities involved in this action provided sterilization services for medical devices, pharmaceuticals, packaging, cosmetics, seeds, and food ingredients.

EPA investigators found Clean Air Act violations of ethylene oxide Maximum Achievable Control Technology (MACT) requirements at six of the eight Cosmed sterilization facilities in Rhode Island, New Jersey, Maryland, Illinois, Texas, and California.

Under the consent decree, lodged today in the U.S. District Court for the District of Rhode Island, Cosmed will pay a $500,000 civil penalty and spend an additional $1 million to perform supplemental environmental projects that will improve air quality in urban areas.

Cosmed agreed to complete environmental audits at all eight of its current and former facilities, and establish an environmental management system that will help ensure that the company fully complies with environmental regulations at its three remaining facilities.

Ethylene oxide is a probable human carcinogen that may cause serious reproductive harm, irritate the lungs, and damage the liver and kidneys.

A volatile organic compound, ethylene oxide also contributes to the formation of ground-level ozone, or smog, which can irritate people's respiratory systems, aggravate asthma, and may cause permanent lung damage.

"Because of the risks associated with exposure to ethylene oxide, it is essential that facilities comply with regulations for this toxic air pollutant," said Phyllis Harris, Principal Deputy Assistant Administrator of EPA's Office of Enforcement and Compliance Assurance. "Through active oversight and enforcement of these regulations, we are working to ensure that all citizens breathe cleaner air."

The complaint, filed with the consent decree, alleges that Cosmed violated the MACT standards - part of EPA's National Emissions Standards for Hazardous Air Pollutants - in failing to install pollution control equipment in a timely manner.

The company was also alleged to have failed to measure its ethylene oxide emissions.

In addition, Cosmed failed to submit required reports to EPA for its six facilities in Baltimore, Maryland, Grand Prairie, Texas, San Diego, California, Coventry, Rhode Island, South Plainfield, New Jersey, and Waukegan, Illinois.

The violations are alleged to have occurred from at least 1998 until 2003.

EPA estimates that more than 30 tons of excess emissions of ethylene oxide were emitted from the Coventry, South Plainfield and Waukegan facilities, combined.

No excess emissions were found at the other facilities, and no violations were alleged at the Linden, New Jersey, and Sparks, Nevada, facilities.

Cosmed's supplemental environmental projects include projects to reduce pollution from municipal diesel vehicles through the use of advanced pollution controls and cleaner diesel fuel in the urban areas of Camden, New Jersey, Lake County, Illinois, and San Diego, California.

A project in Dallas, Texas, will convert gasoline powered school buses to run on propane, a cleaner burning fuel.

Collectively these projects will eliminate an estimated 235 tons of air pollution in their first three years, including some toxic air pollutants that pose serious health concerns. Urban areas were chosen as the locations for these projects in light of the disproportionately high air pollution burden that is experienced by populations in urban areas.

"An important part of this settlement is that the company will pay to help ease air pollution in urban neighborhoods, which are those most often damaged by industrial pollution," U.S. Attorney Robert Clark Corrente said. "As we pursue those who are alleged to violate clean air standards, we must also ensure that they pay to help alleviate the overall problem."

At one point Cosmed represented almost one-third of the large sterilization facilities regulated by the EPA. Cosmed sold its five medical device sterilization facilities to STERIS in January 2005. It continues to own and operate three facilities that provide sterilization for other products in Baltimore, Linden, New Jersey, and Sparks, Nevada.

The proposed consent decree is subject to a 30-day public comment period and final court approval. For more information about the settlement, go to: http://www.epa.gov/compliance/resources/cases/civil/caa/cosmed.html

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New Jersey Demands Three Companies Stop Polluting Rahway River

TRENTON, New Jersey, August 19, 2005 (ENS) - The New Jersey Department of Environmental Protection (DEP) has directed three corporations to stop an ongoing release of contamination at two sites in Springfield Township that is polluting the Rahway River.

General Electric Company, Hamilton Electronics Corporation and Atlantic Metal Products, Inc. were ordered Thursday to stop polluting and will be required to reimburse the state $7 million for past costs the state incurred when it paid to treat the City of Rahway's drinking water supply, which was contaminated as a result of these companies' past operations.

The three companies must reply to DEP regarding their decision to comply with the directive within 30 calendar days after receipt and execute an administrative consent order with the Department.

DEP directed the companies to take interim remedial measures approved by the agency to prevent the discharge of hazardous substances at their sites from entering the Rahway River.

The companies also must conduct long term remedial investigations to determine the nature and extent of contamination resulting from discharges at and emanating from the sites, followed by any required cleanup work.

"We have put companies on notice that New Jersey will not tolerate cleanup delays any longer," said DEP Commissioner Bradley Campbell. "General Electric, Hamilton Electronics and Atlantic Metal Products will be held accountable for the pollution they've left behind and we're directing them to act now to prevent further degradation of this important resource."

In 1989, the City of Rahway detected the common cleaning solvent trichloroethylene (TCE) in the Rahway River at the intake of the city's drinking water supply at levels up to 10.5 parts per billion. New Jersey's drinking water standard for TCE is one part per billion.

With funding from the state Spill Fund, the city installed a treatment system on its drinking water supply to remove this hazardous substance. The system continues working today at a cost to the city for operation and maintenance.

"Any effort on part of the state of New Jersey to stem the flow of pollution to the Rahway River can only help those residents who rely on this resource for drinking water and those who enjoy the natural heritage of the river," said Dennis Miranda, executive director of the Rahway River Association.

Based on DEP sampling from 2000 through 2005, the agency concluded that the former General Electric Company and Atlantic Metal Products sites are a source of hazardous substances including TCE in the Rahway River that is contaminating the city's supply of drinking water.

DEP ground water tests showed levels of TCE up to 20,000 parts per billion at the General Electric site and up to 1,600 parts per billion at the Atlantic Metal Products site. Site histories show that the TCE was used during manufacturing processes as a metal degreaser.

The City of Rahway maintains a sampling program for the surface water intake from the Rahway River. Monthly sampling data since January 2005 revealed that TCE remains in the Rahway River at the intake for the City's drinking water supply at levels up to 4.8 parts per billion.

DEP is planning a Rahway River initiative to identify sites that need increased oversight of responsible parties to complete immediate and long-term, permanent cleanups. DEP will identify high priority sites that present the greatest risk to the Rahway River's ecosystem.

The agency took action in September 2004 and April 2005 to address contaminated sites degrading water quality along the lower Raritan and lower Delaware rivers.

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Hawaiian Brushfire Scorches Nankuli Forest Reserve

HONOLULU, Hawaii, August 19, 2005 (ENS) - The Federal Emergency Management Agency Thursday authorized the use of federal funds to help Hawaii fight the Nanakuli Brush Fire burning near the west Oahu communities of Nanakuli and Palehua.

Michael Brown, under secretary of Homeland Security for Emergency Preparedness and Response, said the state’s request for federal fire management assistance was approved after it was confirmed that the fire was threatening 100 homes in Nanakuli and 50 in Palehua, with preparations under way for possible evacuations.

The fire also resulted in the evacuation of the Camp Timberline youth camp, a military solar observatory, the Maunakapu Communications site, as well as the Kahi Power plant and power lines.

The fire, which started on August 14, has burned 2,850 acres and is considered 20 percent contained. This fire is 16 miles west of Honolulu. A power plant, the community of Palehua, and a nature preserve are currently threatened. Steep terrain is limiting access to the fire.

“With this latest wildfire threatening Nanakuli and Palehua, our commitment to the people of Hawaii remains strong,” said Brown. “FEMA will continue to support our state and local partners this wildfire season.”

The authorization makes FEMA funding available to pay 75 percent of the state’s eligible firefighting costs under an approved grant for managing, mitigating and controlling designated fires.

The fire has burned native endangered plants, including three of only four native gardenia plants that remain in the wild. They were growing in the Nanakuli Forest Reserve, which burned on Tuesday. The fourth plant is still alive.

The fire is believed to have displaced Hawaiian short-eared owls that have been living in the area.

The burned areas are likely to be overtaken by guinea grass, a common invasive weed that was introduced in the mid-1800s as a failed cattle feed experiment.

So far this year, a record 700 brushfires have charred Oahu, the island where Honolulu is located, but most burned far to the west of the city.

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EPA Administrator Attends Great Lakes Public Meeting

DETROIT, Michigan, August 19, 2005 (ENS) - U.S. Environmental Protection Agency Administrator Steve Johnson was in Detroit Thursday night to discuss a draft strategy for cleaning up the Great Lakes.

The meeting he attended in Cobo Hall is the fourth of six scheduled public meetings on the Draft Strategy to Restore and Protect the Great Lakes, which was released for a 60-day public comment period on July 7. The plan is online at: http://www.glrc.us

The plan was prepared by the Great Lakes Regional Collaboration, a partnership of federal, state and local governments, tribes and other interested parties to work on Great Lakes environmental and natural resource issues.

"Working separately, environmental success is limited," Johnson told the crowd assembled for the public meeting. "The unprecedented partnership of the Great Lakes Regional Collaboration has brought all our partners to the table to ensure the Great Lakes remain an international treasure - forever open to trade and tourism."

Key recommendations of the Draft Strategy include immediate action to stop the introduction of more aquatic invasive species through ballast water restrictions, habitat conservation and species management for native fishes, improvements in wet weather discharge controls from combined and sanitary sewers, and funding for cleanup of the 31 most contaminated locations identified more than 15 years ago by both Canada and the United States.

During his remarks, Johnson praised the partnership that has worked to restore and protect the Detroit River watershed. "Through community-based public and private partnerships, the Detroit River is again becoming a gathering place for wildlife and families."

"I am pleased that the efforts here will be highlighted as a collaborative model to the rest of the nation at the White House Conference on Cooperative Conservation," he said.

The White House conference, scheduled for August 29 through 31 in St. Louis, Missouri, will bring together key stakeholders and decision makers who can advance cooperative conservation and facilitate the exchange of information and advice for successful partnerships.

The Detroit River partnership will be one of 30 case studies highlighted as examples of successful local conservation efforts.

The Detroit River partnership includes DTE Energy, U.S. Fish and Wildlife Service, Michigan Sea Grant, Downriver Linked Greenways and many other public and private organizations.

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New Hampshire Grants $1 Million to Protect Water Supply Lands

CONCORD, New Hampshire, August 19, 2005 (ENS) - The state of New Hampshire is making $1 million available for grants to municipalities or nonprofit water suppliers to help purchase land or conservation easements around critical water supplies.

The funding comes from the state Department of Environmental Services Water Supply Land Grant Program established by the legislature in 2000. Governor John Lynch and the Legislature provided the $1 million in grant funding for the current 2005-2006 fiscal year.

The program provides municipalities with up to 25 percent of the value of the critical water supply lands being protected.

The land must be from a willing seller, currently unprotected, and it must be within a designated source water protection area serving a community water system or school.

The land could be within a wellhead protection area, or for surface sources, in the watershed within five miles of the intake.

The state grants must be matched by 75 percent from local sources. These match sources can include donated land or easements that are also within the source water protection area, public funds, federal funds, transaction expenses, or private funds.

Also, there is a low interest loan fund available from the Department of Environmental Services that may be used to finance the match.

In order to qualify for this grant round, interested applicants must submit an eligibility application by November 1, 2005. Find out more at: http://www.des.state.nh.us/water_intro.htm

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Company Fined for Hazwaste Violations on Gila River Indian Reserve

SAN FRANCISCO, California, August 19, 2005 (ENS) - The U.S. EPA Pacific Southwest region has fined Romic Environmental Technologies $67,900 for multiple hazardous waste violations at its facility on the Gila River Indian Reservation in the Lone Butte Industrial Park in Chandler, Arizona.

The company corrected the violations and will also spend $100,800 on lifesaving equipment for the Gila River Indian Community Fire Department and air monitoring and meteorological equipment for the Gila River Indian Community Department of Environmental Quality.

"Proper waste management is critical, and the EPA is committed to ensure that companies handling hazardous waste comply with the law," said Jeff Scott, the EPA's Waste Management Division director for the Pacific Southwest region.

The Romic facility is a hazardous waste storage and treatment facility, primarily recycling solvents. Romic performs solvent recycling, blending, aerosol can processing, bulking, container crushing, and waste consolidation for off-site disposal.

During joint EPA and Gila River Indian Community inspections in February 2002, August 2002 and April 2003, inspectors discovered that Romic failed to properly operate, inspect, monitor and maintain records for the air emission control device, the closed-vent system and the hazardous waste storage tanks.

In addition, the company failed to properly mark, monitor, inspect, calibrate and maintain records for equipment that contains or contacts hazardous waste.

Romic stored ignitable wastes less than 50 feet from the property line and stored incompatible wastes next to each other, and in addition, failed to store hazardous waste in containers in good condition, and label and close hazardous waste containers.

The company also failed to conduct inspections and maintain complete inspection logs.

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