Sims Metals settles Stormwater suit with CSPA, agrees to fund $100,000 in environmental projects that will benefit water quality in the Sacramento River or Sacramento-San Joaquin Delta.

April 30, 2009 -- CSPA has settled a Clean Water Act lawsuit and Proposition 65 (Sections 25249.5 et seq., of the California Health and Safety Code) claims against Sims Group USA regarding serious violations of the California General Industrial Stormwater Permit.  Proposition 65 prohibits the discharge of cancer causing contaminates into public water supplies.  Sims Group USA is a corporation chartered in Delaware that operates a number of scrap metal recycling facilities in California. The facility at issue is in Rancho Cordova, California and discharges polluted stormwater into a stormwater conveyance system that drains into the American River. 

A 60-day notice letter of intent to sue was sent in February 2008 and the Clean Water Act lawsuit was filed in federal court on 25 April 2008. A notice letter alleging violations of Proposition 65 was issued on 24 March 2009.  The actions allege that Sims Recycling illegally discharged excessive concentrations of total suspended solids, specific conductance, oils and greases, organic content, chemical oxygen demand, aluminum, copper, iron, lead, manganese, nickel, nitrates, nitrites, mercury, zinc and other constituents in violation of their stormwater permit and the Clean Water Act.  The facility also failed to develop, implement and update: 1) Best Available and Best Conventional Treatment Technologies; 2) an adequate Stormwater Pollution Prevention Plan (SWPPP); and 3) an adequate monitoring and reporting plan.  It also accused the operators of falsely certifying compliance in their annual reports.

The Settlement Agreement has been submitted to the court as an enforceable Consent Decree and to the U.S. Department of Justice for review.  It obligates Sims to: 1) comply fully with the applicable requirements of the General Permit and Clean Water Act; 2) implement a suite of Best Management and Housekeeping Practices; 3) collect and route stormwater runoff to a detention basin and thence to a sophisticated filtration device, plus other structural improvements; 4) conduct more frequent, comprehensive monitoring during rain events, and 5) prepare an adequate SWPPP.  The agreement incorporates  “Meet & Confer” provisions that allow CSPA to return to court for enforcement if pollutant benchmarks continue to be exceeded and the parties cannot agree on additional measures to be implemented.

As mitigation for past violations, Sims agreed to send $100,000 to the Rose Foundation for a Better Environment to fund environmental projects that will benefit water quality in the Sacramento River or Sacramento-San Joaquin Delta.  $70,000 is attributed to resolving the allegations contained in CSPA's CWA notice letter and $30,000 is attributed to resolving allegations set forth in CSPA's Prop. 6 notice letter.  They also agreed to reimburse CSPA's costs of bringing suit plus funds to oversee implementation of the agreement.

The Law Offices of Andrew Packard and Lozeau, Drury LLP represented CSPA in this matter.

Sims vs. CSPA final consent agreement