Neronha Issued 2 Licenses to RI Recycled Metals After April Fire, Lawyer Says Facility May Reopen

Neronha Issued 2 Licenses to RI Recycled Metals After April Fire, Lawyer Says Facility May Reopen

Rhode Island Attorney General Peter Neronha, after last Wednesday’s fire at Rhode Island Recycled Metals (RIRM), sought to shut down the scrap metal yard on Allens Avenue, but GoLocal has learned that he may have missed an opportunity to have unilaterally shut down the embattled facility months earlier.

Community groups and environmental organizations have criticized the failure of regulators and attorneys general to shut the facility down in the past decade. Save the Bay dubbed RIRM as the "stain on the Bay."

In April of this year, the facility suffered another fire, and since then, Neronha’s office has issued RIRM both its licenses necessary to operate. It was the facility's second fire in three years, and the fire last week was the third blaze on the site.

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In May, the Attorney General’s office approved RIRM’s “Regulated Metals License,” and then in June, Neronha issued the company its "Precious Metals License."

According to Richard Nicholson, attorney for RIRM, the Attorney General’s office delayed issuance but ultimately issued both licenses. Nicholson said the licenses are critical to the operation of the facility.

 

Lawyer Says Reopening Could Be Soon

Nicholson said in a phone interview that the facility had made significant steps in meeting Superior Court Judge Brian Stern's order last Friday, when a short-term closure was issued. 

Nicholson says he believes the actions RIRM is now taking could lead to the facility opening shortly.

Last Wednesday, after the most recent fire, Terry Gray, the director of the Rhode Island Department of Environmental Management, said, "For more than 10 years and throughout the course of dozens of court appearances, DEM has tried to bring Rhode Island Recycled Metals into compliance with environmental laws and regulations. As frustrating as this process has been, we understand that our frustration is nothing next to the outrage felt in the community and being expressed by community members today."

That court order temporarily closed the scrap yard and provided the path for reopening, including developing a fire mitigation plan and other elements. Stern pushed off action on two other filings by Neronha.

"The special master is working on this real time. The special master and our expert [risk management] are working on this and expect in the next day or two to have a formalized plan," Nicholson told GoLocal. "And, then putting the plan in place. It will probably take the better part of the balance of this week."

 

 

Providence Continues to Fight to Close RI Metals Recycling

In contrast, the City of Providence has been fighting in court against RIRM over the facility’s business license. RIRM’s license with the City of Providence expired, and city officials issued a cease and desist order against RIRM.

“[Providence] will suffer irreparable harm as it has issued lawful and valid cease and desist notice that is being ignored, which could have ramifications if validly issued orders from the Plaintiff are ignored by others,” Stephany Lopes, director of the city’s licensing board, wrote in an April 4 complaint.

RIRM sued to block the city, and the matter continues to be litigated in Providence Superior Court. The matter has been before Judge Christopher Smith.

A hearing on the City of Providence's effort is scheduled for early August.

Providence Mayor Brett Smiley critiqued Judge Smith’s failure to close RIRM in April.

“We are disappointed in today's decision. Rhode Island Recycled Metals' continued operation without a proper license poses a critical safety and public health risk for all of our neighbors in this area. We will continue to press our case in Superior Court and ask the state to hold them accountable to improve this situation for our community,” said Smiley in an email to GoLocal at the time of that decision. 

 

Neronha Defends Issuing the Licenses

Brian Hodge, a spokesperson for Neronha, said in an email to GoLocal, “This Office licenses businesses that deal in precious metals and other regulated metals - not scrap metal. A business can deal in scrap metal without precious metals and regulated metals licenses from this Office."

“The criteria for issuing those two licenses are set out in state law. Our Office issued a regulated metals license to RIRM after they met the law’s criteria. After initially denying RIRM a precious metals license, they subsequently corrected deficiencies specific to that license, and we then issued them that license.  In the end, there was no basis on which this Office could deny either license,” Hodge added.