Environmental Regulations

The proliferation of environmental regulations and standards enacted by federal and state governments is overwhelming and seems to expand in scope and oversight every year.

There are over a dozen federal environmental acts, and individual states can have their own regulatory requirements if they exceed the federal standards. Many of the acts also have varying compliance requirements based on size or volume of regulated emissions or other issues.

It’s a challenge for companies to ensure they’re aware of all state and federal regulations. This article seeks to aid in that endeavor.

Federal Regulations

In general, grain elevator, feed mills, and grain processing facilities may be required to be compliant with the Clean Air Act, the Clean Water Act (CWA), Emergency Planning and Community Right-to Know Act (EPCRA), and the Toxic Substance Control Act (TSCA). If you have abandoned facilities or sites, you may also fall under the regulations of the Comprehensive Environmental Response, Compensation, and Liability ACT (CERCLA).

The acts often are written in vague language, and there are exemptions and grandfathering that may apply.

As an example, the Clean Air Act allows for states to provide plans where polluters can save or bank any amount that the company falls below its maximum pollution threshold. This allows the company to use this amount as a sort of credit and pollute more at a later period. Companies are also allowed to sell or trade in these banked credits.

You also need to consider if monitoring or testing is required and what records and reporting requirements are in play. Omissions in monitoring, testing, and documentation can lead to expensive fines.

Resources and Information

Depending on the size of your company or the complexity of your operations, you may consider staffing an environmental compliance specialist. These individuals have been trained in environmental standards and compliance programs. In the Midwest starting salaries for compliance specialists are around $60,000 annually, and if they possess an environmental engineering degree, $90,000 or greater.

Another option for grain and feed companies is the use of an environmental consulting service. These firms can charge hourly rates or charge based on a specific service such as permitting, permit renewals, water sampling, etc. If you run a small operation, this may be a viable option to ensure compliance.

It’s also important to note that many states provide assistance online and over the phone. For example, the Illinois Department of Commerce and Economic Opportunity provides an environmental assistance program on its website, dceo.illinois.gov. This site provides specific information for grain operations.

Your state grain and feed association also can highlight relevant environmental programs and compliance procedures for your business.

The National Grain and Feed Association (NGFA) website, ngfa.org, provides an excellent overview of the environmental regulations impacting grain elevators. NGFA members can get recent updates on the information.

Price for Non-Compliance

Environmental compliance programs can be expensive and time consuming depending on your operation. The cost of non-compliance is a risk best avoided.

The U.S. Environmental Protection Agency (EPA) conducts targeted and random inspections to evaluate compliance with its standards and brings enforcement actions against parties found to be in violation.

The EPA can initiate or take part in enforcement actions for violations of these acts, including:

• Seeking administrative orders.

• Civil sanctions.

• Participating in criminal actions through the U.S. Department of Justice.

As an example, the Clean Air Act authorizes fines of up to $25,000 per day for emissions violations. Criminal sanctions include fines of individuals up to $250,000 and up to 15 years in prison. Corporations can be fined up to $1 million per incident for knowingly endangering people with emissions and up to $500,000 per incident for negligent emissions

Ignorance is not a defense against non-compliance. It is imperative to know the regulations inside and out to avoid these violations and potential monetary and/or criminal penalties.

Recommended Action

If you do not have a qualified environmental specialist on staff, it is recommended that you consider engaging an environmental consultant.

This expert will determine which federal and state regulations apply to your business, and to what extent you comply. They also will help you make a plan to get your business in compliance.

At the conclusion of the initial evaluation, you will be better informed to make decisions on what type of environmental program is needed and who will manage it.

Do not let the cost of compliance be a barrier. The cost of non-compliance is a risk you do not want to take.

Jim Voigt is the president of JFV Solutions Inc. and has over 49 years of experience in management and operations in the feed, grain, and grain processing industries. Jim is also trained in and has 19 years’ experience in continuous improvement methodology.