According to Sims, the agreement is a "Stipulation for Entry of Judgment and Order" in settlement of claims related to the alleged dispersal of light fibrous material (LFM) from the Redwood City metal shredding facility.
In a statement released by the company, Sims says although the company has agreed to voluntarily settle the matter through the stipulation, it has not admitted to any of the allegations or claims made in the complaint or stipulation. The company maintains that, contrary to the allegations, LFM is a process-related material, not a waste, and that potential off-site dispersal of this material is regulated by the Bay Area Air Quality Management District under new regulations applicable to metal processing facilities and other district regulations.
DTSC claimed that some of the fibrous materials contains cadmium, copper, lead and zinc at levels that exceed hazardous waste regulatory thresholds and are considered toxic. The agency points out that the release, migration, deposition and accumulation of the waste outside the facility constitute the unlawful disposal of hazardous waste and a failure to minimize the possibility of a release of hazardous waste.
Sims reports that the company had implemented extensive Best Management Practices to control LFM from its operations well before reaching the agreement, but agreed as part of the settlement to implement additional control measures.
Sims also says the focus of the settlement is on the completion of those additional control measure upgrades specified in the agreement and that the company has committed to expenditures of at least $1.44 million for this purpose.
Under the settlement, Sims will pay $ 2,393,814, which will be allocated to the following:
- $825,000 to DTSC in civil penalties and reimbursement of DTSC’s investigative costs;
- $125,000 to the Environmental Enforcement and Training Account Program as a supplemental environmental project; and
- At least $1,443,814 to upgrade the Redwood City facility beyond current regulatory requirements.
Sims says the company already has implemented several of the upgrades, including installation of additional windscreen and fencing at the facility, enclosure and modification of the layout of certain conveyors that were not already enclosed, and completing the enclosure of two buildings that were already partially enclosed. In addition, Sims committed to a schedule to install structures around the metal shredder mill and certain metal separation equipment, which are designed to contain LFM that might otherwise be dispersed from that equipment.
Pending completion of these facility upgrades, Sims will conduct weekly inspections of off-site areas for LFM, and if present remove and properly dispose of LFM that is found off-site.
According to the agreement, any LFM that might be released during the short term required to complete the upgrades should not exceed the standards set forth in the Bay Area Air Quality Management District Permit.
Sims reports that the company remains committed to environmental stewardship and improvement at its Redwood City facility and that for the past several years, Sims has been engaged in a Continuous Improvement Program that has resulted in the implementation of a number of other facility upgrades which have significantly reduced the off-site dispersal of LFM.