Johnston Metal Shredding Co. to Pay Largest Penalty Ever Assessed by RI for Clean Air Act Violations

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Johnston Metal Shredding Co. to Pay Largest Penalty Ever Assessed by RI for Clean Air Act Violations

RI Attorney General Peter Neronha's office made the announcement on Wednesday. Photo: GoLocal
Rhode Island Attorney General Peter Neronha announced Wednesday that the state has reached a settlement in a significant enforcement action against SMM New England Corporation, d/b/a SIMS Metal Management (SMMNEC), a metal shredding facility in Johnston, Rhode Island, for violations of the Clean Air Act. 

Under the terms of a consent judgment filed in Providence County Superior Court today, SMMNEC has agreed to install equipment to control the release of pollution that may be linked to cancer and severe respiratory illnesses and will pay the largest penalty ever assessed by the State of Rhode Island for violations of the Rhode Island Clean Air Act.

Rhode Island Department of Environmental Management (RIDEM) Director Janet Coit and Environmental Protection Agency Region 1 (EPA) joined in Wednesday's announcement. 

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“For too long, SMMNEC has not met its obligation to the people of Rhode Island to protect public health and the environment and keep harmful pollutants out of the air we breathe. SMMNEC’s operations in Johnston put Rhode Islanders at risk with uncontrolled emissions of dangerous, airborne substances,” said Neronha. 

“Today, with the filing of a complaint against SMMNEC and the entry of a consent judgment, this will change,” Neronha added. “Under the terms of the consent judgment, SMMNEC’s obligations are clear – it must change the way it does business and comply with the Clean Air Act. It must install state-of-the-art controls and pay meaningful penalties. This Office, together with our partners at RIDEM and the EPA, will hold SMMNEC accountable to these obligations.”

About Complaint

As detailed in the complaint filed on Wednesday, it is alleged that SMMNEC failed to comply with the Rhode Island Clean Air Act by 1) starting construction of a metal shredding operation without applying for a major source air permit, and 2) failing to install the required pollution control equipment for emissions of harmful pollutants.

Further, the State’s complaint alleges that SMMNEC has been operating the shredder without the necessary permit and emission controls since 2013.

The SMMNEC metal shredder in Johnston shreds end-of-life automobiles, appliances and other light gauge recyclable metal-bearing materials. This electronically operated, 7,000 horsepower shredder generates enough heat to melt or burn the plastics, paints, surfactants, and oils in the scrap metal materials, which causes harmful emissions of volatile organic compounds (VOCs), particulate matter (PM), and toxic air contaminants (TACs). The shredder temporarily ceased operating due to the COVID-19 pandemic. 

“DEM is pleased with the settlement reached in this important case, and that our collective efforts with the Attorney General and the Environmental Protection Agency will result in the company coming into compliance with Rhode Island's Clean Air Act,” said Coit. 

“This negotiated settlement would not have been possible without the company's cooperation and its commitment to take responsibility for its actions. By avoiding costly and protracted litigation and negotiating an agreement that results in payment of substantial penalties and completion of supplemental environmental projects to improve air quality, we have ensured a good outcome for Rhode Islanders.”

Payment of Penalty to Benefit Affected Communities

Under the consent judgment, SMMNEC will pay a total penalty of $875,000 to the State and, if it does not meet the conditions set forth in the consent judgment, an additional $1,125,000 in penalties. The penalty is divided into three parts: a cash payment, Supplemental Environmental Projects (SEPs) in affected communities, and a suspended portion.

The cash portion of the penalty requires SMMNEC to pay $550,000 in penalties to the State over 18 months. The SEP portion of the penalty requires SMMNEC to pay $325,000 to fund projects in Johnston and Providence: $200,000 to fund a project aimed at offsetting air pollution issues in the Town of Johnston and $125,000 to address air pollution issues in the Port of Providence, where Sims Metal Management owns and operates another facility.

The $1,125,000 balance of the penalty is suspended; this amount will be waived only once certain conditions have been satisfied. 

SMMNEC Required to Install Technology to Reduce Emissions

To correct the identified deficiencies and meet its obligations under the Rhode Island Clean Air Act, SMMNEC is required to install state-of-the-art emission control technology to stop further air pollution, including an air pollutant enclosure system to limit the amount of emissions that can escape while the shredder is operating. The emission controls required in today’s consent judgment are consistent with what has been required in similar facilities across the country, including in California, Massachusetts, Minnesota, and Illinois. 

Additionally, SMMNEC has agreed that upon restarting the shredder, it will immediately implement interim controls to limit further exposure to pollutants in the surrounding area until the new emission control system becomes fully operational.

SMMNEC has agreed to file a complete permit application with RIDEM within 90 days. In addition, the company is required to install particulate matter and VOC emission control technology within specified timeframes or be required to pay suspended penalties.

“The bottom line is, we are not requiring that SMMNEC do anything beyond what they should be doing,” said Neronha. “Enforcing compliance with Rhode Island’s environmental laws isn’t anti-business. It preserves Rhode Islanders’ health, protects the state’s natural beauty – one of our greatest assets – and levels the playing field for those businesses that do make the necessary investments in pollution control technology and follow the rules.”

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