EPA Focuses on Telecommunications Industry
Telecommunications companies must improve their environmental compliance efforts, according to the U.S. Environmental Protection Agency (EPA). In a June enforcement alert, EPA urged telecommunications companies to take advantage of EPA’s Audit Policy. The Audit Policy, which was recently revised, rewards companies that disclose and correct environmental violations.
In exchange for the disclosure, potential penalties are reduced or eliminated. For example, last year, EPA reached settlements with 17 telecommunications companies on more than 2,000 environmental violations at more than 600 facilities. Because of their voluntary disclosure, the companies received a total waiver of penalties totaling more than $6 million. In fact, the 17 companies combined paid total penalties of $178,727, representing the estimated economic benefit that they realized from delayed compliance. These companies also put SPCC plans in place at 156 facilities and reported to emergency planners and responders more than 1 million pounds of diesel fuel, 482,000 pounds of sulfuric acid and 410,000 pounds of lead at their facilities.
According to EPA, the incentive to participate in the program is the avoidance of higher penalties and imposition of EPA-mandated audits. For example, EPA obtained $675,000 in penalties from MCI WorldCom, Inc. to settle a number of environmental violations uncovered by EPA. The settlement also requires audits of many of the company’s other facilities.
Companies in the telecommunication industry should be aware that EPA typically follows its enforcement alerts with a wave of inspections and enforcement actions in the targeted industry. For example, after issuing an alert about coincidental generation of nitrates and the obligation to report it under the toxic release inventory program, EPA sent letters to several hundred companies claiming that they violated TRI reporting requirements. EPA demanded up to $20,000 per facility from large companies and $5,000 per facility from small companies. Those penalties were later substantially reduced in negotiations. These examples show that EPA alerts should be taken seriously.
Several environmental laws are particularly relevant to telecommunications companies, EPA said. It focused on the following:
Emergency Planning and Community Right-to-Know Act — The EPCRA requires businesses to assist in state and local emergency planning by notifying state agencies and local fire departments of certain chemicals at their facilities. Reportable hazards at telecommunications facilities may include sulfuric acid-filled batteries (all lead-acid batteries are reportable, including valve-regulated or "gel cell" batteries), diesel fuel, lead, halon and propane, EPA said.
Businesses that produce, use or store any of EPA’s 365 extremely hazardous substances (EHS) in certain quantities must notify the appropriate State Emergency Response Commission and Local Emergency Planning Committee. The facility also must designate an emergency planning representative and an emergency coordinator. (Call the EPCRA hotline at 1.800.424.9346 to find out whether chemicals at your facilities are reportable.)
The EPCRA also requires businesses producing, using or storing certain hazardous chemicals to submit Material Safety Data Sheets for each chemical and an annual inventory of hazardous chemicals to state and local emergency planning agencies and the local fire department. EPCRA also imposes a number of other record keeping and notification requirements.
Clean Water Act — The CWA requires businesses that handle, transport or store oil or petroleum to prepare and update Spill Prevention, Control and Countermeasure (SPCC) plans. EPA noted that telecommunications facilities such as central offices, mobile telephone switching offices and garages may store fuel oil for back-up generators or vehicle fleets. The SPCC requirements apply if:- the capacity of any above-ground tank is more than 660 gallons
- total above-ground storage is more than 1,320 gallons
- underground storage is more than 42,000 gallons
- the facility could reasonably be expected to discharge oil into U.S. navigable waters or adjoining shorelines.
Clean Air Act — Regulations regarding air quality standards and the permits needed before constructing or modifying a pollution source vary from state to state. EPA advised telecommunications companies to check with state environmental agencies on air permitting requirements regarding items such as back-up generators.
The CAA also regulates refrigerants such as chlorofluorocarbons and hydro chlorofluorocarbons, commonly found in air conditioning systems. EPA advised companies to regularly review their compliance with CAA requirements.
Resource Conservation and Recovery Act — According to EPA, telephone operations may result in "hazardous waste streams" requiring a proper hazardous waste management program under RCRA. Underground storage tanks are also regulated under RCRA, which required the upgrading, replacement or closing of substandard underground storage tanks by Dec. 22, 1998.
Lessons Learned
Even relatively "clean" industries such as telecommunications cannot escape EPA scrutiny. EPA also scrutinizes small and larger companies. However, preventive measures (such as the environmental audits EPA touts in its alert) and reactive measures (such as negotiating an individual settlement or negotiating a more reasonable industry-wide approach through a trade association) can be used to negotiate a reasonable response from EPA.