The Cost of Non-Compliance

JUNE 15, 2016

The management of retail hazardous waste has changed dramatically since more regular oversight of the industry began several decades ago. From relatively quiet beginnings, retail hazardous waste issues have expanded to become a more regularly enforced environment in which retailers must be cognizant of federal, state and local laws and regulations.

Currently, new proposed rules by EPA seeks to provide clarity for businesses of all sizes related to the management and disposal of their hazardous wastes, and would update hazardous waste generator regulations for easier understanding, compliance and flexibility.

This newly proposed rule may substantially revise the Resource Conservation and Recovery Act (RCRA) regulatory requirements for generators of hazardous waste. The new rule, if adopted, will alter the “generator status,” or the classification of a business as it relates to the hazardous waste it produces. Enterprises and many small- and mid-sized businesses (SMBs) can expect their generator status to change, which impacts the way in which they are expected to handle, record and dispose of their hazardous waste.

Non-compliance may result in exposure to multiple federal agencies, including the Environmental Protection Agency (EPA), Department of Transportation (DOT), Occupational Safety and Health Administration (OSHA) and Drug Enforcement Administration (DEA). In addition to the potential of fines from these agencies, state agencies can implement and enforce their own waste management regulations.

Fines levied against retailers have risen sharply in recent years, and retailers today risk significant monetary penalties for non-compliance. While the financial burden of non-compliance is significant, the negative impact these very public fines have on brand perception can be even more damaging.

Local and even national news outlets are quick to pick up on any perceived offenses made by large corporations, and environmental issues are a growing concern for media and the public. In addition, the proliferation of social media means negative news about environmental fines or improper disposal of hazardous waste spreads quickly and pervasively across these channels.

The average cost of having a proactive  environmental compliance program for retail hazardous waste varies depending on factors such as the number of states with retail locations, the product lines carried by the retailers, and the quantity of hazardous waste generated at particular retail locations.

But with millions of dollars in potential fines at risk for non-compliant practices and consumer loyalty at stake, retailers must keep well informed about the upcoming changes from the EPA or other regulatory agencies, and update their hazardous waste management programs accordingly.