Achieving Compliance

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September/October 1992

Compliance with environmental legislation and regulations is not an option—it's a must.  To help scrap recycling companies meet these requirements, ReMA has developed a three-tiered program of guidelines, seminars, and on-site assistance.

BY SCOTT J. HORNE

Scott J. Horne is president of EnviResource Management Group Inc. (Silver Spring, Md.) and chairman of the ad hoc regulatory committee of the Institute of Scrap Recycling Industries (Washington, D.C.).

In the past few years, new and tougher environmental laws and regulations have placed tremendous burdens on scrap recycling companies—threatening to put some of them out of business.  For many recyclers, these imposing and often-confusing measures have made them feel that they are no longer in control of their own destinies.

Indeed, the sober truth is that the future of every scrap recycling company depends on its ability to operate in an environmentally sound fashion.  Scrap recyclers can't simply ask themselves "Will I, or should I, comply?"  Today, the question is "How do I comply?"

The Institute of Scrap Recycling Industries (ISRI) (Washington, D.C.) has some answers.  In an effort to help scrap recyclers comply with broad and ever-changing federal environmental requirements, ReMA has published its Environmental Operating Guidelines: A Foundation for the Future, and is offering follow-up support programs based on the publication.

The guidelines and support programs are more than just compliance tools, however.  They also serve as a testament to the industry's commitment to self-regulation, help to promote the development of rational federal regulations in the future, and serve as a reference point for state and local governments to regulate the industry.

Making the Guidelines Work

Based on existing federal laws and regulations, the Environmental Operating Guidelines provides practical advice on implementing site-management practices that minimize or, if possible, eliminate potential environmental problems. The guidelines serve as a reference document to environmental compliance, but they are not meant to be placed on a bookshelf for reference purposes. To be effective, scrap recyclers must read the manual from beginning to end and implement appropriate procedures.

At first glance, the guidelines may seem daunting, if for no other reason than the size of the document. In reality, however, many of the suggested practices are simple and cost little to implement. For instance, the guidelines recommend that as a first step recycling toward compliance, recycling firms should draft a written statement outlining their commitment to maintaining an environmentally sound workplace, posting copies of the statement in prominent areas throughout the operation.

Another easy-to-administer management practice in the guidelines is a recommendation that scrap recycling companies send letters to their suppliers specifying the conditions under which they will accept inbound recyclables as well as listing materials that will not be accepted in shipments. In some cases, the biggest challenge may be to committing to change the way things have always been done.

ISRI is taking the guidelines a step further by launching an educational seminar program to help members implement the guidelines (see "Taking Compliance on the Road" on page XXX). The seminars will include an overview of applicable environmental laws, such as the Resource Conservation and Recovery Act; the Clean Air Act; the Comprehensive Environmental Response, Compensation, and Liability Act, more commonly known as Superfund; the Toxic Substances Control Act; and the Emergency Planning and Community Right to Know Act.

The seminars will also help attendees identify potential sources of contamination associated with scrap processing equipment, inbound recyclables, and waste generation. Attention will also be given to a broad range of employee education and training issues, including how to evaluate inbound materials, how to handle chemicals used in the plant, and how to prevent airborne dust by regularly sweeping areas in the plant where dust is prone to accumulate and setting in-plant speed limits. Furthermore, practical technologies to control emissions, discharges, and releases to air, water, and soil will be addressed. Some incredibly simple practices such as using tarps or plastic sheeting over in-plant trucks and piles of shredder fluff, or placing containers under leaks can often minimize or alleviate such problems.

The On-Site Perspective

Although the seminars will provide detailed and specific information, some scrap executives may feel the need for additional, individual assistance. To that end, ReMA has contracted Winston & Strawn, a Chicago-based national environmental law firm, to provide on-site environmental compliance services to member companies at significantly discounted rates.

To preserve the confidentiality of this process, the program is structured to allow ReMA members to retain Winston & Strawn directly, subject to a "conflict search" by the law firm to ensure that it doesn't represent any parties that may conflict with the scrap recycler's interests. As long as no conflict exists, those who take advantage of the on-site assistance will enjoy a relationship with Winston & Strawn that is protected under attorney-client privilege.

Prior to any site visit, Winston & Strawn will send scrap recycling companies seeking assistance a site-assessment survey to fill out and return. The survey may initially appear intimidating—it is nearly 50 pages and asks probing questions on storage tanks, clean air and water issues, solid and hazardous wastes, transportation, asbestos, Superfund issues, and more. Rest assured, however, that it can be completed relatively quickly because many of the questions require a simple yes-or-no answer, with some related to matters that may not pertain to a particular operation, making a "not applicable" answer perfectly acceptable. This initial site-assessment survey can help the law firm recommend the level of assistance required to meet a company's specific compliance needs.

At the most basic level of on-site services, a Winston & Strawn representative can visit a company's plant for one day and help the firm's management adapt the guidelines to their operation. For most, the day will begin with a meeting to discuss the facility's operations and current environmental practices. During this meeting, Winston & Strawn will also review with the company's executives any information on the facility that the law firm finds in an environmental data base of public records. This information can include permit records, consent decrees, the results of environmental lawsuits, and more. In fact, most recyclers would probably be astonished to learn what information about them is in the public record.

The initial meeting will be followed by a plant tour, after which Winston & Strawn will discuss its observations and offer hands-on advice for implementing the guidelines at the facility.

Beyond this basic on-site assistance, Winston & Strawn can also provide enhanced services, including conducting complete environmental audits or other environmental studies that may be ordered by a state or federal agency. In-depth compliance assistance may also be helpful to those wishing to establish a more extensive program than is detailed in the manual. Depending on the level of services a recycling firm desires, Winston & Strawn can include in its on-site team a representative from one of the national environmental consulting firms that are a part of this project, which could be particularly valuable in the event that sampling or some level of "triage" is necessary.

Compliance for the Future

For scrap recyclers, environmental compliance is more than just a legal necessity—it's a forward-looking business philosophy that could decide for many companies whether they survive and prosper into the next century. And it's a concept that extends into virtually every aspect of operating a recycling business today. For example, several scrap-consuming mills are contemplating total-quality-management programs that would require their scrap suppliers to adhere to environmentally safe management and operating practices or face being eliminated as a supplier. In fact, a few mills report they are considering using ReMA's environmental guidelines as a benchmark for compliance by their scrap suppliers.

This "environmental consciousness" is also being adopted by scrap generators. No wonder, considering that more than half of ReMA's members are, or have been, named potentially responsible parties at Superfund sites. Under downstream liability laws, these vendors could also be held liable, and so, as a protective measure, most big generators of scrap have already instituted environmental compliance surveys to determine where their scrap is going. Indeed, some have even gone so far as to perform environmental audits on scrap recycling plants to which they ship. It doesn't take much of a stretch, therefore, to believe that scrap suppliers could include environmental compliance into their sales qualifications. While some recyclers may say that such programs would place an unfair burden on them, the majority will likely recognize that these compliance requirements will, in fact, level the playing field.

As the 1990s have demonstrated thus far, we are living in environmentally conscious times, and the future promises to bring even more stringent laws and regulations. For scrap companies, this means that environmentally sound operation is the key to survival. Indeed, the future of the scrap recycling industry depends on the environmental compliance of each and every company.

Taking Compliance on the Road

To help ReMA members implement the Environmental Operating Guidelines, ReMA is sponsoring full-day seminars around the country, featuring speakers from Winston & Strawn. Each seminar is a multimedia presentation, with particular emphasis on the "how" and "why" of environmental compliance. The sessions are designed to encourage interactive learning through audience participation.

Each seminar costs $150 per person, which includes the program fee, a copy of the Environmental Operating Guidelines, and lunch. Additional registrants from the same company can take advantage of a special $110 fee, which does not include a copy of the guidelines.

Upcoming seminars, which run from 8:30 a.m. to 5:00 p.m., are scheduled for the following dates and locations:

Sept. 17— Marriott Minneapolis City Center, Minneapolis

Oct. 1—Holiday Inn, Worcester, Mass.

Oct. 12— Charlotte Marriott City Center, Charlotte, N.C.

Oct. 13— Greenbelt Marriott, Greenbelt, Md.

Oct. 15—LeMont Restaurant, Pittsburgh

Oct. 15—Riverfront Dinner Theatre, Philadelphia

Oct. 24—Loews L'Enfant Plaza Hotel, Washington, D.C.

Nov. 5—Westin La Paloma, Tucson, Ariz.

Nov. 5—Wynfrey Hotel, Birmingham, Ala.

Nov. 7— Stouffer  Austin  Hotel, Austin, Texas

Nov. 9—Sheraton Oaks Hotel, Novi, Mich.

Nov. 10—Marriott Hotel, Cincinnati

Nov. 12—Hilton South, Cleveland

Nov. 17— Holiday Inn Crown Plaza , Kansas City, Mo.

Nov. 18—East Bank Club, Chicago

Nov. 20—Courtyard Marriott, Brookfield, Wis.

Dec. 3—Meadowlands Hilton, Secaucus, N.J.

Dec. 4—Radisson Hotels and Suites, Buffalo, N.Y.

To register, include the session date and location as well as registrant name and send payment to ISRI, Environmental Operating Guidelines Seminars, 1325 G St. N.W., Suite 1000, Washington, DC  20005. Or contact ReMA headquarters at 202/466-4050, 202/775-9109 (fax), for more information.  •

Compliance with environmental legislation and regulations is not an option—it's a must.  To help scrap recycling companies meet these requirements, ReMA has developed a three-tiered program of guidelines, seminars, and on-site assistance.
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