If you didn’t get to attend my webinar last week on navigating the maze of government spill reporting requirements and regulations, here are some points that every company that’s at risk from environmental spills should know. Unless you are prepared to effectively handle spill emergencies and the mandated notification processes, your company could be vulnerable to significant expenses, penalties and fines.
Spills of hazardous materials, diesel fuel and other regulated substances are subject to a maze of environmental regulations, and the spill generator – regardless of who was at fault for the incident – needs to know the reporting requirements and contact information of every jurisdiction in which its facility(s) are located and wherever their vehicles travel. Since reportable quantities vary from one jurisdiction to the next and spills often involve multiple jurisdictions, each with separate reporting requirements, keeping abreast of the requirements can be challenging.
For example, a spill in one of the five boroughs of New York requires reports to various county, state and federal authorities. Failure to make the NY City required report can cost $25,000 a day, with each day being a separate violation. According to the Department of Transportation (DOT), public reporting of hazardous materials spills in transportation enables investigators to identify unsafe carriers and containers.
A motor carrier which has transported a leaking package of hazardous materials or experienced a loading or unloading hazmat-related leak or spill must make a report per 49 CFR 171.15 and 171.16. Immediate telephone notification is required in some cases, along with a written report. The DOT underscores the fact that reporting a hazardous materials leak or spill is required by law. When in doubt, if a spill involves a reportable quantity or substance, it’s best to report it.
Why Compliance is Best Policy
Insurance companies do not pay fines and penalties arising from failure to report spills. This is important to keep in mind. Reporting, cleanup, disposal and site remediation is the responsibility of the spill generator. The DOT has levied fines of over $100,000 for failure to report serious hazmat spills. And fines from state and local agencies can be much higher. Many states have requirements more stringent than the Federal Government in terms of both reportable quantities and stated deadline to report spills.
In Massachusetts, for example, failure to file a required report within 2 hours of a spill carries a late-notification penalty of over $10,000. In Louisiana, the hazmat incident notification regulations are among the most stringent in the nation. A spill must be reported within one hour of discovery to local and state government. Noncompliance can draw a fine of $25,000 to $100,000 per incident per day. The need for swift action in spill reporting cannot be over emphasized – especially in Louisiana.
A carrier involved in a spill of about 65 gallons of diesel fuel at a road paving site near Atlanta faced a fine of $30,000 a day for failure to comply. Fire and police had indicated to the company that they didn’t consider the release to be significant, so the carrier thought it didn’t need to file a report. About 3 weeks later, the carrier received a notification from the Georgia DNR for failure to report – which carried some serious consequences.
The paving contractor was ordered to tear up 500 feet of interstate that had been completed, and the carrier was ordered to remediate the site within 2-1/2 weeks or incur a stiff penalty.
In the end, the carrier paid over $40,500, including $30,000 to the paving contractor, whose invoice was negotiated down by 20%. If the carrier had notified appropriate agencies after the spill – regardless of what the officials at the scene said – those charges could have been avoided. The moral? Don’t trust spill reporting to fate. You need to know the regulations. And if someone in authority tells you that a spill doesn’t need to be reported, make sure to get the name and title of the official.
The key to avoiding fines for noncompliance with environmental reporting regulations is maintaining up-to-date information in all jurisdictions where your operation poses a risk of a spill.
When in Doubt, Report It!
Again, my best advice? When in doubt, report it. Nobody can get in trouble by reporting an incident that doesn’t need to be reported. But the fines can be substantial when a spill of a reportable quantity is not reported to the proper authorities within the required time period.
For additional information or assistance with your environmental and health & Safety (EHS) regulatory compliance needs, contact Ralph Carito at rcarito@TotalEnvironmental.com or 908-442-8599.