Underberg & Kessler LLP

EPA's Voluntary Audit Programs For Universities and Hospitals Make Slow Gains
05-01-2004
Ronald G. Hull

We have a natural inclination to associate environmental regulation and pollution with industry. Air emissions, water discharges and the generation of hazardous wastes are the stuff we associate with chemical plants, petroleum refineries, manufacturing, electric power plants and the like. The public does not associate pollution or the detection and enforcement of environmental violations by the EPA with office parks, colleges, universities and hospitals, nor, in some cases do the people who work in these facilities. The EPA does.

EPA links colleges, universities and hospitals with a wide range of environmental obligations. Among the general checklist of environmental issues that EPA ties to colleges and universities are the management and upkeep of oil storage tanks (used for heating oil or gasoline to fuel campus vehicles), the proper identification, safe storage and proper disposal of hazardous wastes generated in science departments and maintenance facilities, the regulation of air emissions from campus power plants and boilers, asbestos and lead paint in older buildings and the proper handling of campus sewage. EPA believes that many colleges are not fully aware of their responsibilities under environmental laws and that, in some cases, this lack of awareness puts staff and students at risk.

EPA has developed a longer list of concerns with respect to healthcare. Hospitals, according to EPA, are the fourth largest source of mercury discharged into the environment. They also produce a wide variety of hazardous wastes, such as chemotherapy chemicals, radionuclides, medical wastes, and 1% of all municipal solid waste generated in the U.S. Additional concerns commonly raised include management of asbestos and lead paint in older buildings and the proper operation of storage tanks, boilers and power plants.

To encourage improved environmental compliance at these institutions, EPA Region 2, which includes all of New York State, has launched initiatives to encourage self-audits of colleges, universities and hospitals. These programs are outgrowths of a policy adopted by EPA in 2000 to promote environmental compliance audits generally. These initiatives in New York began with letters to 365 colleges and universities and 480 hospitals, and a number of outreach programs, but have only slowly gained acceptance.
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Entrance into the formal program requires a "Facility Audit Agreement" with EPA which combines incentives with obligations. The signer agrees to perform a comprehensive self-audit for compliance with environmental regulations, to report its findings, including disclosure of environmental violations, and to select and implement corrective actions within 60 days of discovery. In return, the EPA agrees to waive the "gravity-based" component of penalties and to minimize any penalty imposed to repay the economic benefit of noncompliance and to assign a low priority for future compliance inspections. EPA asserts that, in every instance reviewed to date, it has actually waived the entire penalty. In addition to the formal self-audit program, approximately 50 institutions have self-reported violations leading to negotiations with EPA to set penalties and design corrective actions.

Facilities that do no volunteer to self-audit remain targets for inspection and enforcement actions. And there have been a number of high profile enforcements publicly touted by EPA.

The enforcement actions include hazardous waste violations asserted against C.W. Post College, Kean University, New Jersey City University and Clarkson University and, most recently, Memorial Sloan-Kettering Cancer Center, for the improper storage and disposal of chemotherapy wastes, as well as a general failure to determine whether wastes were hazardous. The penalties sought range from $23,000 to more than $214,000. Overall, EPA has commenced proceedings against colleges and hospitals seeking penalties totaling more than $1.6 million. According to an EPA spokesperson, more enforcement actions are in the works. She also notes that ongoing inspections are proving that EPA's concerns were justified. While on average only 1 in 30 hazardous waste inspections of industry results in a penalty assessment, for colleges and hospitals the ratio is 1 in 3.

Despite its outreach programs, EPA Region 2 has signed only 14 self-audit agreements with colleges and universities, including one comprehensive agreement with the State University of New York covering all 64 campuses. However, coverage in central and western New York has been otherwise sparse, including only Syracuse University and Canisius College.
EPA Region 2 has signed 21 self-audit agreements with hospitals, with nine of those agreements announced in the past two months. The only upstate hospital in the self-audit program is St. Joseph's Hospital in Syracuse; however, Strong Memorial Hospital co-sponsored with EPA an environmental compliance and pollution prevention conference which EPA regards as one of its great successes in the healthcare initiative.

Clearly, most of the more than 800 colleges, universities and hospitals in EPA Region 2 have not responded to EPA's initiative, which has only 35 official participants. Adding in the 50 that have disclosed violations without joining the program, participation is still barely above 10%. EPA attributes the lack of response, in part, to difficult economic times for colleges and hospitals. The self-audit program represents a commitment of money and staff to actually conduct an audit and to correct any problems uncovered by the audit. Once the agreement is signed, the audit must be completed. On the other hand, doing nothing puts the burden on EPA and DEC to allocate their limited resources to conducting inspections. Given the high correlation between an inspection by EPA and the discovery of violations, it appears that the vast majority of colleges and hospitals are betting that they will not be inspected. With the certainty that some facilities will be inspected and fined and the possibility that undiscovered practices are putting students and employees at risk of harm, this seems like a bet which may save money and effort in the short run, but has no real winners.


Reprinted with permission of The Daily Record, @2004

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