Airbag manufacturer will pay $17.6 million for illegally handling hazardous waste
The cost of breaking federal laws doesn't come cheap. Just ask TRW Vehicle Safety Systems Inc. (VSSI).
The wholly-owned subsidiary of TRW Inc. reached a civil settlement and criminal plea agreement with the United States and the state of Arizona that will resolve charges that it violated hazardous waste laws at its airbag manufacturing plant in Queen Creek, AZ.
VSSI agreed to plead guilty to federal and state criminal charges in plea agreements with the United States and Arizona filed recently in Phoenix. The Michigan-based company will pay a $6 million criminal penalty to the United States and a $6 million criminal penalty to Arizona. The plea agreements also require VSSI to establish an environmental management system at two airbag factories in Arizona and one in Nevada.
In a separate action, VSSI agreed to pay a $5.6 million civil penalty that will be divided equally between the United States and Arizona under a civil settlement filed recently in U.S. District Court in Phoenix. The agreement was filed by the U.S. Justice Department and the Arizona Attorney General on behalf of the Environmental Protection Agency (EPA) and the Arizona Department of Environmental Quality. It requires VSSI to perform more than $5.7 million-worth of projects to enhance the environment and contribute $1.5 million to clean up the Butterfield landfill in Mobile, AZ, that is contaminated with hazardous waste produced by VSSI.
"These two vigorous enforcement actions superbly demonstrate how the federal government and states can partner to achieve significant environmental benefits," said Steve Herman, EPA's assistant administrator for Enforcement and Compliance Assurance. "These settlements also serve as a warning to other companies that mismanage hazardous waste. If you break the law, you will pay the penalty."
VSSI uses sodium azide, a toxic and potentially volatile compound, to manufacture vehicle airbag restraint systems. Sodium azide is a component of the propellant that inflates the airbag.
The Resource Conservation and Recovery Act requires companies that produce, store, transport and dispose of hazardous waste to manage the waste in accordance with regulatory requirements. The civil agreement settles claims that VSSI failed to meet these requirements.
In the criminal plea agreement, the company admitted that it knew the Butterfield landfill was not authorized to accept such waste and that the sodium azide-contaminated waste was potentially harmful to the public and the environment. VSSI also admitted that it knew it was illegal to store this waste onsite at its factory without a permit.
The plea agreement directs VSSI to create and maintain for three years an environmental compliance plan at its three plants, to ensure that the company does not commit more violations of the type it admitted to in the agreement. As part of the plan, VSSI will hire an auditor to evaluate its operations and report to state and federal regulators. The plea agreement also directs VSSI to pay for full-page ads in Arizona newspapers within 10 days after the court accepts the plea that describes the company's illegal actions, its conviction, and the preventative steps it will take in the future.
"We apologize to the residents of Mesa and the citizens of Arizona for our failure in the mid-'90s to comply fully with our environmental requirements," said DeWayne Pinkstaff, vice president of operations for TRW's inflatable restraint and steering wheel systems business in North America in a statement released by the company. "The actions were unacceptable and violated TRW's long-standing operational and legal and ethical guidelines."
TRW employees were required to follow specific rules in the handling, labeling, storage and treatment of wastewater containing sodium azide at its Germann Road passenger air bag operations. TRW has been following those rules since discovery of the issue in late 1997.
Pinkstaff stressed that when senior TRW management discovered the rules were not being followed, they immediately contacted government officials, conducted an investigation, terminated employees and cooperated with Federal and State investigators.
"Fortunately, our errors have not resulted in harm to the environment and there is no threat to the health of workers or residents," Pinkstaff emphasized. "Process changes were made more than three years ago when the errors were detected, and since then the problems have been corrected. Nevertheless, we are deeply regretful for the mistakes we made and take responsibility for our actions.
As part of the civil settlement, VSSI will complete a comprehensive assessment of its facility, determine whether corrective measures are needed to address pollution, and undertake any necessary measures at the site, such as closing surface impoundments and related sumps and tanks. The cleanup of this site is estimated to cost up to $12 million.
The civil settlement also calls for VSSI to pay $1.5 million toward clean up of hazardous waste contamination at the Butterfield landfill. Waste Management of Arizona, owner of the landfill, has agreed to undertake the cleanup of that site, and this commitment is incorporated in the civil settlement.
In addition, the civil settlement requires the company to conduct several environmental projects that will provide water conservation benefits and an emergency "911" notification system for the citizens of Maricopa County. Other projects include improvements to VSSI's facilities that are not legally required, but will reduce the amount of hazardous waste generated or disposed of by VSSI, minimize spills, and ensure that hazardous waste will not reach the soil or groundwater.
"Companies that work with the most hazardous materials cannot duck their legal obligation to protect the public and the environment," said Lois Schiffer, the assistant attorney general for the environment at the Justice Department.
The criminal case was investigated by the EPA Criminal Investigative Division and the Arizona Attorney General's Office.
The civil settlement is subject to a 30-day public comment period and final approval by the Court. The plea agreement also must be approved by the Court.
"The Mesa operations have enjoyed an excellent record for the past several years thanks to dedicated employees, strong management, and significant technology advances," stressed Pinkstaff. "We pledge to the people of Arizona that we are deeply committed to operate our facilities safely, legally and ethically."
By Sandy Smith
Content Manager, Safety Online
E-mail: ssmith@verticalnet.com