Market news, 13 June 2024
The U.S. Environmental Protection Agency and the U.S. Department of Justice have reached a settlement with Othello-based Multistar Industries, Inc. after the agencies found the company violated multiple chemical accident prevention provisions of the Clean Air Act meant to protect the public and first responders from dangerous chemicals.
The company’s Othello, Washington facility stores and distributes anhydrous ammonia and other chemicals. Exposure to high concentrations of anhydrous ammonia – commonly used in industrial refrigeration, agricultural, and cold storage facilities – can lead to serious lung damage and even death.
Following inspections in 2013 and 2017, EPA alleged Multistar failed to comply with Clean Air Act Section 112(r) requirements that facilities storing more than 10,000 pounds of anhydrous ammonia are properly designed, operated, and maintained to minimize the risk of an accidental release. Specifically, EPA alleged that Multistar failed to properly design its ammonia storage and distribution system, adequately maintain inspection and testing records on certain equipment, and develop and implement written operating procedures for certain aspects of its ammonia operations consistent with industry standards.
Multistar also failed to promptly update deficiencies identified in required compliance audits and failed to meet requirements of a 2016 compliance order Multistar entered into with EPA.
“Facilities that store hazardous materials like anhydrous ammonia have an obligation to follow regulations designed to protect our communities and environment from potentially catastrophic consequences of accidents,” said Ed Kowalski, director of EPA Region Enforcement and Compliance Assurance Division in Seattle. “Failure to comply with the law puts first responders and members of the surrounding community in harm’s way.”
In addition to requiring Multistar to pay a $135,000 penalty, the settlement requires the company to pay penalties if it violates the risk management program requirements at its ammonia storage and distribution facility, and provide compliance records and reports to EPA on a semi-annual basis.
