Illinois AG files lawsuit and interim order against Sims Metal Management

Illinois Attorney General Kwame Raoul announced Oct. 22 that he has filed a lawsuit against Metal Management Midwest Inc., dba Sims Metal Management (Sims), for failing to demonstrate a minimum threshold reduction in uncontrolled emissions from its metal shredding and recycling facility. He also says the court entered an agreed interim order that requires Sims to develop and implement a control system designed to achieve an immediate overall reduction in uncontrolled emissions.

“Sims’ actions created a public health risk by exposing the community to uncontrolled emissions from its facility,” Raoul says in a news release announcing the suit and the interim order. “We have seen the damage these actions can cause in environmental justice communities, and I am committed to holding Sims accountable for endangering public health and will work to ensure they comply with emissions reductions requirements.”

 The lawsuit is based on a referral from the Illinois Environmental Protection Agency (IEPA).

Illinois EPA Director John Kim says, “Based upon results from testing called for by the Illinois EPA, this matter was referred to the attorney general’s office to ensure that protections be put into place to address emissions concerns. The location of this facility in an environmental justice community reinforces the need for careful oversight of pollution sources such as this.”

The facility is in the Little Village neighborhood in Chicago. At the site, Sims receives, stores, recycles and ships ferrous and nonferrous recyclables, including end-of-life vehicles, major appliances and other postconsumer sheet metal and metal clips. The company’s hammermill shredder emits volatile organic material (VOM) into the environment, according to the EPA.

Sims submitted an application Jan. 22, 2019, for a Federally Enforceable State Operating Permit (FESOP) to the IEPA, as required by a previously entered administrative consent order with the U.S. Environmental Protection Agency. As part of its review of the application, the IEPA requested a copy of emissions testing results also required by the previously entered federal order. Based on a review of those results, the IEPA requested Sims initiate additional testing, with a proof-of-concept emissions capture test on the shredder May 13 to 14 of this year.

In the lawsuit, filed in Cook County Circuit Court, Raoul alleges that the results of the May emissions capture test revealed the shredder was achieving less than 50 percent estimated capture efficiency, which was below mandated emissions control requirements of at least 81 percent. He argues in the suit that by failing to demonstrate an overall reduction in VOM emissions, Sims violated the Illinois Environmental Protection Act and Illinois Pollution Control Board Air Pollution Regulations, jeopardizing public health and the environment.

Sims’ facility is in an area the IEPA has designated an area of environmental justice concern because it is a community with a percentage of low-income and/or minority residents that is greater than twice the statewide average.

The agreed interim order, entered Oct. 22, requires Sims to develop and implement a control system designed to achieve an overall reduction in uncontrolled VOM emissions of at least 81 percent from the shredder at the facility. Sims also will be required to construct a control system to achieve emissions reduction compliance, as approved by the IEPA, and continue to conduct emissions testing following construction to ensure uncontrolled emissions are reduced by at least 81 percent.

Sims provided the following statement to Recycling Today concerning the matter:

“Sims Metal was notified by the Illinois Environmental Protection Agency that we would need to retest the emissions from the shredder at our Paulina facility in Chicago, IL. Although the emissions reading was fully compliant with the levels outlined by the United States Environmental Protection Agency’s federal guidelines, we agreed to work with IEPA to favourably address this issue, modify our permit and install the advanced controls for both particulates and volatile organic compounds, rather than spend time on additional testing.

“For more than 100 years, Sims Metal has been at the center of the circular economy by recovering and recycling material to generate maximum value and minimize waste. Each year, we recycle 7.4 million tons of material globally that would otherwise go to landfill. We continue to invest in upgrades and improvements to the shredder at our Paulina facility, as well as lead by example to demonstrate best practices for other businesses in the area and serve the local community and economy.

“One of the foundations of a sustainable company is operating responsibly, and we are committed to operational excellence and upholding responsible and ethical business practices, which includes maintaining compliance with all relevant laws and regulations in the municipalities where we operate. It is worth noting that the shredder at our Paulina site is quite small in comparison to other shredders in the area, and it is the first of its size to have these controls installed.

“Our purpose, create a world without waste to preserve our planet, drives everything we do; and as a good corporate citizen, we are constantly reviewing our sustainability goals (partner for change, operate responsibly and close the loop) to ensure that we are living our purpose. These actions afford us with the opportunity to mitigate our own risks and amplify our impact. We will continue working with all of our community stakeholders and regulatory bodies to ensure that we are adhering to all relevant laws, maintaining safety standards and mitigating any harm to our local community.”

Environmental justice generally refers to a governmental response to the disparate environmental and public health impacts of pollution on minority and economically disadvantaged communities. Federal and state policies or regulations have been enacted to protect minorities and low-income citizens from disproportionately high exposure to pollution and heavy industrial activity historically located in or near such communities.

This is not the first action that has been taken against auto shredder operators in the city of Chicago.

In late 2017, the EPA requested air emissions testing at the former General Iron Industries site on the north side of Chicago. The air tests, supervised by the EPA in May and June 2018, resulted in a notice of violation regarding VOC emissions but found no emissions of metals or filterable particulate matter (PM) that violated permitted levels or applicable requirements.

General Iron, which formed a strategic partnership with Reserve Management Group (RMG) of Stow, Ohio, in mid-2018, installed a $2 million regenerative thermal oxidizer (RTO) at that site, which it said allowed the company to comply with and outperform a state requirement to reduce uncontrolled VOC emissions. Since the installation was completed in July of 2019, General Iron and the EPA agreed to an administrative consent order resolving the alleged violations the EPA issued the previous year.

The RTO was moved to Southside Recycling, the new auto shredding facility established by RMG on Chicago’s southside. However, environmental justice concerns have kept this facility from opening as scheduled. 

*Kwame Raoul was misidentified originally as the Chicago attorney general.