In our August 13, 2021, blog, we discussed the U.S. Environmental Protection Agency’s (EPA) proposed budget for Fiscal Year (FY) 2022. That proposed budget of $11.2 billion represented an approximately $2 billion increase in the EPA’s budget. The EPA’s (proposed) budget “pendulum” has swung decisively in the other direction.
The proposed Budget for FY 2026 seeks significant reductions. The FY 2026 Budget proposes a 54 percent reduction from the 2025 budget. This would cut funding from $9.14 billion to $4.16 billion (FY 2026 EPA Budget in Brief).
As outlined in a blog by Holland and Knight, “The proposal includes cuts to enforcement functions – 30 percent reduction in civil enforcement, 49 percent cut to criminal enforcement and 35 percent decrease in compliance monitoring – and eliminates environmental justice enforcement funding entirely.”
“Nearly all categorical grants to states would be eliminated, and water infrastructure funding would be slashed by approximately 90 percent, fundamentally altering federal-state environmental partnerships.”
According to Inside EPA (paywall), the 2026 budget would result in the lowest level of EPA staff since 1985.
There has long been a call for fiscal responsibility in Washington D.C. In addition to fiscal responsibility, we need a reasonable approach to environmental protection, focused on protecting human health and the environment.
It would be refreshing to see a budget that achieves the right balance of fiscal responsibility and environmental protection. Time will tell whether this budget achieves that balance.
It would be refreshing to see a budget that achieves the right balance of fiscal responsibility and environmental protection. Time will tell whether this budget achieves that balance (Photo by Jan Huber on Unsplash).
Environmental Enforcement News
With this as background, below is some recent enforcement news.
Wood Treatment Facility “Knowingly and Illegally” Violated Regulations
The United States Department of Justice (DOJ) reported that a federal judge in Oregon sentenced two companies responsible for the operation of the J.H. Baxter wood treatment facility in Eugene, Oregon, and their president, for hazardous waste and Clean Air Act violations.
The DOJ report states that they were ordered to pay a total of $1.5 million in criminal fines. In addition, the court ordered the companies to serve five years of probation and the companies’ president, Georgia Baxter-Krause, of Deschutes, Oregon, to serve 90 days in prison and one year of supervised release.
From the DOJ report: “On more than 100 different days, J.H. Baxter knowingly and illegally boiled off hazardous waste, emitting the discharge into the air. J.H. Baxter’s President, Georgia Baxter-Krause, then made false statements about the unlawful practice. Protecting the public’s health is among our highest priorities, and we will prosecute those who violate environmental laws.”
Toyota Subsidiary to Pay $521 Million
Another DOJ enforcement press release is reminiscent of the Volkswagen “Dieselgate” case.
The DOJ states that between 2010 and 2019, engineers at Hino Motors, Ltd. (a subsidiary of Toyota) “submitted and caused to be submitted false applications for engine certification approvals in violation of the federal Clean Air Act.” The DOJ reported that Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly, and fabricated data without conducting any underlying tests. The engineers also submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines, and failed to disclose software functions that could adversely affect engines’ emission control systems.
According to the DOJ, “U.S. District Court Judge Mark A. Goldsmith for the Eastern District of Michigan accepted Hino Motors, Ltd.’s guilty plea to a one-count criminal information charging it with having engaged in a multi-year criminal conspiracy to defraud both the U.S. government and American consumers and illicitly smuggle goods into the country.”
Hino was ordered to pay a criminal fine of $521.76 million and serve a five-year term of probation. During these five years, Hino is prohibited from importing any diesel engines it has manufactured into the United States. They were also ordered to implement a comprehensive compliance and ethics program and reporting structure. The court also entered a $1.087 billion forfeiture money judgment against the company.
The DOJ states, “By pleading guilty, Hino Motors, Ltd. has admitted to orchestrating a deliberate and years-long fraud scheme that put profit over principle.”
New Jersey Announces $450 Million PFAS Settlement with 3M
New Jersey Attorney General Matthew J. Platkin announced a “landmark settlement of up to $450 million with 3M to resolve the State’s 2019 lawsuits and a Statewide Directive to address damage to the State’s water and other natural resources from dangerous chemicals known as PFAS…”
The settlement is the largest statewide PFAS settlement in New Jersey history.
3M released a statement saying, “This agreement is another important step toward reducing risk and uncertainty on these legacy issues, allowing 3M to focus on its strategic priorities. In 2000, 3M announced it was voluntarily exiting PFOA and PFOS manufacturing and, in 2022, that it would discontinue all PFAS manufacturing by the end of 2025. 3M remains on track to do so.”
3M previously made headlines for a $10 billion settlement that resolved approximately 4,000 lawsuits filed by public utilities over PFAS in drinking water.
With the changing environmental regulatory landscape, compliance with local, state, and federal environmental regulations requires a diligent approach. For more information about preparing for a possible regulatory inspection, see “Seven Steps to Prepare for an Environmental Regulatory Inspection.”
Environmental Advice
Dragun Corporation has assisted the regulated community with environmental compliance, assessment/remediation, and litigation support since 1988. If you need assistance with a PFAS-related issue, including litigation support, contact Jeffrey Bolin, M.S., CHMM, at 248-932-0228, Ext. 125.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes Michigan Lawyers Weekly, Detroiter, Michigan Forward, GreenStone Partners, Manure Manager Magazine, Progressive Dairy, and HazMat Magazine.
Jeffrey Bolin, M.S., reviewed this blog. Jeff is a partner and senior scientist at Dragun Corporation. He is a published author, a frequent speaker, and an expert witness. His expertise in environmental due diligence, PFAS, vapor intrusion, and site assessments has led to projects in the US, Canada, and overseas. See Jeff’s Bio.
Follow Dragun Corporation on LinkedIn, X, or Facebook.
Sign up for our monthly environmental newsletter.
Principled Foundation | Thoughtful Advice | Smart Solutions
Established in 1988