Dirty National Cleaning Solvent Distributor Safety-Kleen to Pay Up $15M

Posted By CotoBlogzz 04-16-2010 02:30 PM

SANTA ANA, CA  - Safety-Kleen Systems, Inc. (Safety-Kleen), a  national distributor of cleaning solvents agreed to pay $15 million in two cases charging that it contaminated the environment by selling products that emit more than 30 times the legal limit of smog-producing components. The settlement was filed by the Orange County District Attorney's Office (OCDA) in the Superior Court of California in Orange County.

This case was jointly prosecuted by the OCDA, the District Attorney's Offices of Los Angeles, Riverside, and San Bernardino Counties, and the Los Angeles City Attorney's Office. The case was investigated by the South Coast Air Quality Management District (AQMD), the air pollution control agency for all of Orange County and the urban areas of Los Angeles, Riverside, and San Bernardino counties. This area is known as the South Coast Air Basin.

Safety-Kleen is a national supplier of solvents and cleaning supplies to automotive and auto body shops, service stations, parts manufacturers, and other businesses. Industrial solvents have many uses including cleaning parts, working areas and equipment. Safety-Kleen, a Wisconsin corporation based out of Plano, TX, advertises on their website, www.Safety-Kleen.com, that they are a "green," "eco-friendly," company that creates "an environment that's good for business and the planet," and promises an "ironclad guarantee for compliance."

Following an investigation by AQMD, it was determined that Safety-Kleen was knowingly selling and providing illegal petroleum-based solvents to businesses in the South Coast Air Basin containing illegally high levels of Volatile Organic Compounds (VOCs). VOCs, when emitted into the air, are contaminants that contribute to the creation of smog when exposed to sunlight. These illegal products contained over 30 times the legal level of VOCs. VOCs may trigger a variety of serious health risks including chest pain, throat and lung irritation, coughing, congestion, and can aggravate bronchitis, emphysema, and asthma.

In 1999, the laws for the South Coast Air Basin were enacted to drastically reduce the allowable level of VOC emissions, effectively outlawing the use of petroleum-based, high VOC solvents for the vast majority of businesses in the South Coast Air Basin. California is divided into air districts and each district sets the rules for VOC emissions in their area. Based on the statute of limitations, this case against Safety-Kleen covers violations over the past four years.

As part of this settlement, Safety-Kleen has agreed to pay $12 million in civil penalties for their unlawful business practices to the five prosecuting agencies including the City Attorney and four District Attorney's Offices. To help ensure the protection of public health, Safety-Kleen will also be subject to a permanent injunction preventing any further violations of AQMD rules and regulations including, but not limited to:
1) Knowingly or negligently emitting air contaminants in the South Coast Air Basin from solvents that contain VOCs in excess of regulatory limits;
2) Aiding, abetting, advising, or encouraging the use of solvent cleaning products that contain VOCs in excess of regulatory limits;
3) Making untrue or misleading statements of fact to the public regarding its VOC containing solvents and solvent services;
4) Creating, contributing to or maintaining a public nuisance caused by providing non-compliant cleaning solvents that contain illegal levels of VOCs to end users in the South Coast Air Basin; and
5) Selling or offering for sale non-compliant solvents in the South Coast Air Basin.

As part of this settlement, Safety-Kleen is also required to:
1) Create, maintain and regularly update a website identifying the few Safety-Kleen customers who are lawfully using high-VOC solvents pursuant to an exemption.  (These exemptions allow for a small number of businesses to lawfully use products with higher levels of VOCs for some processes including the manufacture, repair and maintenance of medical devices and pharmaceuticals.) AQMD will have administrative access to this site to aid in the enforcement of the injunction.
2) Establish and maintain a training program for all employees that have any control over the sale or the offer to sell products including, but not limited to, advertising, marketing and selling all solvent products to end users in the South Coast Air Basin. This training will ensure that Safety-Kleen employees are familiar with the rules and regulations involving permissible products for use in the South Coast Air Basin and the law surrounding the accuracy of their representations to the public.

The $12 million unlawful business practice penalties will be used by the prosecuting agencies for future prosecutions of consumer and environmental protection cases. The OCDA, the District Attorney's Offices of Los Angeles, Riverside, and San Bernardino Counties, and the Los Angeles City Attorney's Office will continue to work with AQMD to investigate and prosecute unlawful business practices and violations of air quality regulations in the South Coast Air Basin.

AQMD Air Quality Settlement
In an independent action filed simultaneously to the unlawful business practices settlement, Safety-Kleen agreed to pay $3 million to AQMD for violations of air quality regulations. These violations included those committed by Safety-Kleen and by individual businesses using Safety-Kleen products in the South Coast Air Basin. Safety-Kleen will be prohibited from any further violations of AQMD air quality regulations and is required to perform additional record keeping, reporting, and employee training.

Deputy District Attorney William Fallon of the Environmental Protection Unit handled this case on behalf of the OCDA. Deputy District Attorney Dan Silverman handled this case on behalf of the San Bernardino District Attorney's Office. Deputy District Attorney Farrel Evans handled this case on behalf of the Los Angeles District Attorney's Office. Deputy District Attorney Elise Farrell handled this case on behalf of the Riverside County District Attorney's Office. The case was handled for the Los Angeles City Attorney's Office by Special Assistant City Attorney Vince Sato, Assistant City Attorney Patty Bilgin, and Deputy City Attorney Michelle Lyman.