Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, and Cecil Rodrigues, the Acting Assistant Administrator of the Office of Enforcement and Compliance Assurance of the U.S. Environmental Protection Agency (“EPA”), announced that the U.S. has filed and simultaneously settled a lawsuit against STERICYCLE, INC. (“STERICYCLE”) for systemic, nationwide violations of the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq., and related regulations in the operation of its former hazardous waste management business from May 5, 2014, through April 6, 2020.
The proposed stipulation and order of settlement agreed to by STERICYCLE requires payment of a $9.5 million civil penalty, one of the largest civil penalties ever paid for RCRA violations. The settlement is subject to approval by the Court.
Attorney for the United States Matthew Podolsky said: “We hold Stericycle responsible for flouting hazardous waste management requirements while operating a nationwide hazardous waste business, and risking significant potential harm to human health and the environment. This penalty should put other waste management firms on notice that we will hold them accountable when they shirk their legal responsibilities and put the public and environment in harm’s way.”
EPA Acting Assistant Administrator Cecil Rodrigues said: “Stericycle repeatedly failed to ensure the proper transport, management, and storage of hazardous waste – a job that they were paid to do and entrusted to perform on behalf of customers nationwide. EPA is committed to ensuring companies comply with the law and to protecting communities from the potential risks associated with the mismanagement of hazardous wastes.”
As alleged in the U.S. Complaint filed in Manhattan federal court:
STERICYCLE is a waste management company that operated a nationwide hazardous waste transportation, storage, treatment, and disposal business until it sold the vast majority of the business on April 6, 2020. STERICYCLE operated 13 RCRA-permitted hazardous waste Treatment, Storage, and Disposal Facilities (“TSDFs”) and 44 waste transfer facilities.
Between May 5, 2014, and the date of sale, STERICYCLE routinely violated RCRA requirements related to tracking and transportation of hazardous waste, as alleged in detail in the Complaint. STERICYCLE routinely lost track of hazardous waste while transporting it, sent hazardous waste to disposal facilities that were not the ones its customers had chosen, or delivered hazardous waste shipments without the required manifests. STERICYCLE also failed to comply with requirements for resolving and reporting discrepancies between hazardous waste identified on a shipping manifest and the hazardous waste received by STERICYCLE at its facilities for disposal, and it failed to timely return signed manifests to generators and timely submit them electronically to EPA. STERICYCLE also violated RCRA by storing hazardous waste in transfer facilities when not authorized to do so, either because the storage period was longer than the 10 days permitted by RCRA regulations or because overall transportation times for the hazardous waste shipment exceeded those constituting “the normal course of transportation” under RCRA regulations. All of this conduct violated RCRA hazardous waste regulations critical to preventing substantial risks to human health and the environment.
STERICYCLE was well aware of severe problems giving rise to these violations and failed to address them. In the words of one STERICYCLE director in 2016, STERICYCLE had “way too many issues with a basic fundamental of [its] business, getting waste and paperwork from the generator to the designated facility.” In 2019, the same STERICYCLE director underscored the continuation of these fundamental failings: “The most basic thing that we do for our clients is moving the waste from point a to point b and we can’t do it.”
On April 6, 2020, STERICYCLE completed the sale of its “Stericycle Environmental Solutions” hazardous waste business and, since that date, has largely ceased managing hazardous waste in the U.S. However, STERICYCLE remains accountable for its systemic RCRA violations prior to that sale.
In the settlement filed with the federal court today, STERICYCLE admits, acknowledges, and accepts responsibility for the following, among other things:
- On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE was the transporter of hazardous waste shipments for hazardous waste generators, and failed to deliver part or all of the hazardous waste shipment described on the shipment’s manifest to the designated TSDF.
- On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE (or one of its subsidiaries or subcontractors) served as a transporter of hazardous waste shipments to one of STERICYCLE’s TSDFs and failed to ensure that a manifest accompanied all hazardous waste shipments.
- On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE failed to timely provide hazardous waste generators with final signed copies of their waste shipment manifests within 30 days after the shipments were delivered to STERICYCLE TSDFs.
- On numerous occasions between June 2018 and April 2020, STERICYCLE failed to timely submit hazardous waste manifests to EPA’s national system for electronically tracking hazardous waste shipments—known as the e-Manifest system—within 30 days after the date of delivery of the hazardous waste shipment to STERICYCLE TSDFs.
- On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE failed to consult with a generator prior to changing the destination of hazardous waste as designated on a hazardous waste manifest.
- On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE stored hazardous waste at its hazardous waste transfer facilities (as that term is defined in 40 C.F.R. § 260.10) for longer than the 10-day limits permitted under RCRA.
Mr. Podolsky thanked EPA’s Office of Enforcement and Compliance Assurance for its critical work on this case.
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