Since it was introduced at the Vision 2000 conference in July, 1994, a legislative proposal designed to shield drycleaners from lawsuits and cleanup costs stemming from soil and groundwater contamination has undergone numerous modifications.
Many of the changes came about as a result of discussions among individual members of the drycleaning industry as well as industry associations. Others were out in place to make the proposal more workable politically. With congressional committee work on Superfund reauthorization proceeding, the action this fall on the bill is a strong possibility.
Here then is a detailed summary of the legislative proposal as it is being presented to Congress by the Small Business Fabric Care Superfund Coalition, which includes the International Fabricare Institute, the Neighborhood Cleaners Association, the Federation of Korean Drycleaners Associations and the Fabricare Legislative and Regulatory Education organization.
Article 1: Small Business Fabric Care Environmental Response Trust Fund
The Environmental Response Fund is supported entirely by Industry by:
Solvent fees. Per gallon fee of $7.95 for chlorinated solvent and $1.59 for non-chlorinated petroleum-based solvents. If solvent use falls, fees would automatically increase by up to 25 percent to ensure that the fund remains stable. If a particular solvent is removed from the list of CERCLA hazardous substances, fees for the delisted solvent would be eliminated and fees for other solvents would be adjusted if necessary to take into account the newly reduced number of cleanups that would be needed.
Fees could be adjusted if the number of states participating in the program is such that lower fees are appropriate.
Distributors and fabric care facilities who fail to pay the solvent fee would be subject to a penalty of $10,000 per transaction or $50 per gallon, whichever is greater.
Solvent fees would apply only to fabric care solvent sold to fabric care facilities. Fee collection would be done as an add on by the solvent distributor.
Per site annual registration.0-4 full-time equivalent employees, $500.
5-10 full-time equivalent employees, $1,500.
11 or above full-time equivalent employees, $1,500.
Distributors, $1,500.
Persons who fail to pay the site fee would be liable for penalties equal to five times the applicable fee, plus enforcement costs.
Per site cleanup deductible.0-4 full-time equivalent employees, $5,000.
5-10 full-time equivalent employees, $10,000.11 or above full-time equivalent employees, $15,000.
Distributors, $25,000.Persons who fail to pay the required deductible will be liable to the state for penalties equal to three times the deductible plus the cost of the response action and attorneys' fees.
The fund is designed to dedicate up to $1.5 billion fund over 10 years to be distributed to states on a per-establishment basis with no state fund to exceed, on an annual basis, $10,000 per facility.
Uses of the fund
Funds would be disbursed to states to support state-administered environmental response programs.
Only states that decide to participate in the program and certify that they meet specified criteria would receive funding.
Among other things, state programs would have to include a plan for expending funds for assessment, prioritization and cleanups of former and current fabric care and distributor facilities and incorporate federal pollution prevention requirements for fabric care establishments.
Each year up to $1 million out of the fund would be appropriated to support scientific studies and alternative technology development programs.States could use up to 10 percent of the funds they receive for administrative costs.
States would be prohibited from spending more than $200,000 at any one facility in a single fiscal year. Fund administration
The fund would be administered by a statutorily-mandated industry council. Up to 1 percent of the fund could be used for administrative purposes.
Who is covered?
Current and former fabric care establishments and distributors of fabric care solvents would be eligible for cleanup.
Fabric care establishments that are located on DOD or DOE facilities, owned or operated by states, operated exclusively as coin-operated facilities, or operated as uniform service and/or linen supply facilities would neither pay into the fund nor be eligible for cleanup under the state programs.
Establishments that are located in states with equivalent state programs (i.e., states that collect their own fees and implement their own environmental response plans) are exempt from paying into the fund and ineligible for cleanup under the federal program.Federal law would require fabric care facilities to adopt the following pollution prevention measures or face stringent penalties:
Hazardous waste management. Elimination of conditionally exempt status for all covered fabric care facilities ensures wastes would be managed in accordance with stringent requirements applicable to hazardous wastes.Sanitary sewers. Within 18 months after enactment, EPA would be required to conduct a study assessing whether a zero discharge limit for cleaning solvents is practicable and warranted under the Clean Water Act for categories or subcategories of direct and indirect dischargers in the fabric care industry.
If such a requirement is both practicable and warranted, EPA would be required to promulgate such a requirement within 36 months of enactment.New equipment. Newly installed systems must be dry-to-dry systems with integral refrigerated condensers. All new installations would have to use advanced technology dry-to-dry systems.
Containment. Facilities would be required to install dikes or other spill containment structures around each machine, storage vessel, or equipment in which any cleaning solvent is used.
Floor sealant. EPA will study whether floor sealants can be cost-effectively mandated. If so, EPA will establish an appropriate phase-in period for application to operating and storage facilities.
Closed delivery systems. All chlorinated cleaning solvents would be delivered to fabric care facilities via closed, direct-coupled delivery systems, effective five years of enactment. This would minimize the possibility of spill or releases during transfers.
Distributor sites. EPA will conduct a study to determine whether existing procedures for the safe handling, storage, and disposal of fabric care solvents at distributor sites are sufficient.
Bar to federal lawsuits. Private cost recovery and contribution suits under CERCLA would be barred against past owners or operators, landlords, lenders, or suppliers of operating facilities; and current operators, landlords, leaders, or suppliers of operating facilities.
Eliminates duplicate state law claims for response costs. Participating states would be required to bar private parties from bringing cost recovery or contribution suits under state law with respect to response costs that are eligible for the fund.
Cleanups would be subject to same the standards as other non-NPL sites.
Congress is considering proposals to revise the current cleanup process to incorporate risk-based cleanups.
States would have to pay for any cleanup costs incurred as a result of state cleanup standards that are more stringent than federal standards.
The environment
Ensures adequate funds to remediate contaminated property. Ensures funds are spent on cleanup rather than litigation. Requires extensive pollution prevention measures to minimize future contamination.The industry
Ensures that law-abiding, family-owned small businesses will not be driven to bankruptcy by cleanup lability.
Property owners and lenders no longer reluctant to do business with fabric care facility owners.
Evens the playing field by requiring all members of industry to adopt pollution prevention measures.
Municipal Sewer Authorities
Eliminates potential liability for leaking sewers from neighborhood fabric care facilities.
States
Ensures States have adequate source to fund investigation and remediation of fabric care facilities
Lenders
Allows lenders to make good loans without worrying about CERCLA liability.
Shopping Center Owners
Eliminates landlords' potential liability for fabric cue solvent contamination.
Enhances leasing market by eliminating disincentives for leasing to fabric care facilities.
Reduces risks in real estate transactions.