Business Related Environmental Risks Compared To Real Estate Risks

Regulatory Compliance Audit and Due Diligence For Minnesota and North Dakota Food Manufacturing Plants

Caltha LLP Project Summary

Project: Compliance Audit and Environmental Due Diligence For Minnesota and North Dakota Food Manufacturing Plants
Client: International Food Manufacturing Industry
Location(s): Minnesota and North Dakota

Key Elements: Environmental Compliance Audit, Phase 1 Environmental Site Assessment

Overview: Caltha was retained by this multinational food manufacturer to conduct an environmental regulatory compliance audit and a Phase I ESA at two of its plants located near Minneapolis, Minnesota and near Bismarck, North Dakota. Compliance audits were conducted to assess compliance with EPA, Minnesota Pollution Control Agency (MPCA), and Hennepin County requirements in Minnesota, and EPA and North Dakota Department of Health (NDDH) requirements in North Dakota. Regulatory requirements evaluated included:

• Clean Air Act,
• Clean Water Act,
• RCRA hazardous waste and solid waste requirements,
• Emergency Preparedness and Community Right-to-know Act (EPCRA) requirements,
• Toxic Substance Control Act,
• Above and underground tank requirements,
• OSHA Hazard Communication.

Caltha also completed a Phase I Environmental Site Assessment (ESA) for both sites, in accordance with ASTM E1527-05.



For more information on Caltha LLP services, go to the Caltha Audit Page

Caltha LLP provides specialized expertise to clients nationwide in the evaluation environmental rules, developing EHS compliance procedures, and preparing cost-effective EHS management programs. For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website 

 

Regulatory Updates - Environmental Management and Compliance

In addition to this ENVIRONMENTAL REGULATORY COMPLIANCE page, Caltha LLP maintains several websites to provide regulatory updates and discussion of current environmental, health and safety topics, as listed below. Interested parties can register to receive automatic notification when a new topic is posted.

SWPPP - Stormwater Pollution Prevention Plans - Stormwater Permits - Stormwater Training
Discussions and comments on stormwater permitting programs in all States, including industrial, municipal (MS4) and construction sites. Topics include general stormwater permits, Stormwater Pollution Prevention Plans, monitoring, training, spill prevention and control, SPCC compliance.

Water Quality Standards - Aquatic Toxicology - NPDES Permit Limits
Discussion of a variety of topics related to State and Federal water quality standards, ambient water quality criteria, sediment criteria, NPDES & site-specific discharge standards, water quality management, aquatic toxicology, aquatic community impacts, and water quality assessment.

Environmental Sustainability - Sustainable Environmental Management Systems
Discussion of sustainability topics, including pollution prevention, waste reduction, material reuse, environmental management systems, product stewardship, and international environmental standards.

Environmental Due Diligence - Site Assessments - Phase I ESA - Environmental Liability
Discussions and comments regarding environmental due diligence, environmental liabilities, CERCLA liabilities, Phase I environmental site assessments, corporate liabilities, environmental compliance liabilities, quantitative environmental liability assessment.

Regulatory Briefings
Regulatory Briefings are published periodically by Caltha to highlight new or proposed regulations on a wide range of environmental, health & safety topics. These briefings are generally 2- to 4-pages in length and provide an overview of the regulations and discuss potential impacts on the regulated community. Participants must sign up to receive an email link to new Regulatory Briefings as they are posted.

Caltha LLP provides specialized expertise to clients nationwide in the environmental permitting & compliance, environmental management systems, and preparing cost-effective EHS compliance programs.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

All Appropriate Inquiry - Phase I ESA for Forest and Rural Properties

In December 2008, the U.S. Environmental Protection Agency (“EPA”) issued a final rule amending the standards and practices for “All Appropriate Inquiries” under the CERCLA. The changes now to allow the limited use of ASTM E2247-08 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.” The rule applies to conducting a site characterization or assessment on a large forested or rural property with a brownfields grant and will become effective on March 23, 2009. However, EPA also published a separate proposed rule proposing the same change to the All Appropriate Inquiries regulations.

Conducting environmental site assessments for large tracts of forested or rural lands presents a challenge to strict adherence to the ASTM Standard Method for Phase I environmental site assessments (ASTM E 1527-05). The final rule and the proposed change to the All Appropriate Inquiry requirements will benefit organizations purchasing large tracts of forested lands or large rural properties that may want to claim landowner liability protections as innocent landowners, bona fide prospective purchasers, or contiguous property owners.

[Read more about Landowner Liability Protections – LLPs]
[Read more about All Appropriate Inquiry under CERCLA]

Caltha LLP provides specialized expertise to clients nationwide in the environmental due diligence, environmental site assessment, and environmental liability evaluations.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Environmental Due Diligence Checklist - Role of Regulatory Compliance

Environmental compliance issues can have a significant financial impact and should be incorporated into the scope of environmental due diligence. A formal compliance audit may be considered, and may have some additional benefits in reducing future liabilities. [read more about recent changes to EPA Audit Policy as it applies to new owners] However, given time and access constraints, a formal audit may not always be feasible during due diligence. In this case, four key areas related to environmental compliance are of high importance.

Non-compliance Issues that Could Result in Capital Improvements. Correcting some non-compliance issues can cost significant amounts of money. For example, tanks without the required secondary containment are expensive to retrofit. Upgrades to pollution control equipment, such as wastewater treatment or air emission control can also be expensive. It is important to understand industrial site operations, so those compliance items which typically involve capital improvements can be highlighted.

Asbestos. The management of asbestos-containing materials is regulated under OSHA, and often is not considered under “environmental compliance”. Management of asbestos in-place requires an Asbestos Management Plan, specialized training and employee notification. Ultimately, if areas with asbestos are disturbed, added costs for handling and disposal of the asbestos material will be realized. Understanding whether asbestos occurs and how it being managed is important to factoring in these future costs.

Missing Permits or Approvals. Changes made at a facility overtime can require new permits, revision to existing permits or pre-approvals for agencies. Understanding what permits and approvals are required is sometimes a complicated task; the result is that upon reviewing the operations, missing permits or approvals can be discovered. “After-the-fact” permitting is often a difficult and expensive process. Capital improvements may be required to comply with the permits, once obtained. The affected processes might need to be shut down until proper permits are obtained. All of these consequences can have a significant financial impact, which should be addressed during the due diligence process.

Upcoming Regulations. The fourth area is upcoming regulations. Although a facility may be in compliance with current requirements, these requirements can change. Impending regulations should be considered to assess any additional costs that will be incurred for the operation. Imminent regulations could, for example, could involve changes to air rules which may require upgrades to pollution control equipment. International regulations on products may also apply; for example, the Waste Electrical & Electronic Equipment (WEEE) and Restriction of Hazardous Substances (RoHS) rules in Europe, which could impact US-based manufacturers.


Caltha LLP provides environmental due diligence services nationwide, specializing in Food, Manufacturing and Electric Utility sectors.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website