They may not realize it, but the manufacturers of many of
America's favorite foods (beer, bread, coffee, jerky, salsa,
salad dressing, etc.) are subject to a multitude of environmental
regulations for food and beverage companies. Not only do
environmental regulatory agencies such as the U.S. Environmental
Protection Agency and state and local departments of environmental
protection keep food and beverage manufacturing companies in their
sights, but consumers and environmental organizations are able to
sue these companies directly in federal court under some of the
major environmental laws of the United States. Careful adherence to
environmental regulations is good for food and beverage
companies' bottom line—environmental enforcement can cost
thousands of dollars, if not millions—as well as for their
reputation under the watchful eye of social media.
Food and beverage manufacturers and processors are regulated based
on a variety of factors; there is no cookie-cutter approach to
determining applicable regulations. Factors such as the Standard
Industrial Classification (SIC) code, facility size, amount of
contaminants being discharged, products used in operations, or the
quality of the specific environmental media being impacted, to name
just a few, must be carefully considered.
For day-to-day operations, the most common laws/regulatory program
that apply to food and beverage manufacturers are those related to
stormwater, wastewater, and air. Stormwater is often
overlooked because its regulation is based on an industry-specific
system of inclusion that does not factor in much of a
business's actual operations. Site-specific considerations
typically only come into play when a business wants to opt out of
the permit program through a conditional exclusion based on
"No Exposure." SIC code 20, which broadly applies to food
and kindred products, pulls food and beverage companies into the
regulatory scheme for stormwater. Therefore, unless a facility can
demonstrate that there is no contact between industrial operations
(which also includes loading and receiving, just not administrative
and office facilities) and stormwater, food and beverage
manufacturers must obtain permit coverage if they discharge
stormwater to a water of the state (such as rivers, lakes, or
certain wetlands), either directly or indirectly through a
municipal stormwater conveyance system.
Water going down the drain to a municipal treatment system must
comply with an industrial pretreatment program. This requires a
permit and that operators test and manage wastewater for a variety
of edibles that are actually pollutants, such as flour, sugar, or
yeast.
Regulated air discharges can come from multiple sources at a
facility, either from operations or equipment. On the operational
side, yeast metabolism in baking, coffee roasting, alcohol
manufacture, and food and grain storage can produce particulate
matter, volatile organic compounds, certain toxic compounds, odors,
smoke, and ethanol, one of the main components of smog. Regulated
equipment includes mixers, boilers, driers, and generators.
Toxic air pollutants are receiving more and more attention as many
states (including California, Washington, and Oregon) now regulate
heavy metals, chemicals, and pollutants potentially harmful to
people living or working near industrial and commercial
facility.
Hazardous waste management and disposal, pesticide use and
disposal, large-scale storage of oil (including edible oil), and
the use and presence of aboveground or underground fuel storage
tanks also could come into play. What's more, given the
increasing focus on climate change, greenhouse-gas emissions,
ozone-depleting substances in refrigerants, and regulations on
carbon are receiving more and more regulatory attention.
Failure to comply with environmental regulations has significant
costs. Enforcement actions can be taken by all levels of
government, including local water utilities. Actions taken could
include warning letters, directives to conduct or stop doing
certain actions, requirements to build, implement, or enhance
treatment facilities, and of course, fines.
One of the most notable enforcement examples is the 2016 action taken by the U.S.
Environmental Protection Agency against Pennsylvania beer-maker
D.G. Yeungling and Son Inc. for noncompliance with the industrial
pretreatment program. In addition to a $2.8 million penalty, the
agency required the beer maker to implement improvements to its
breweries' treatment systems at an estimated cost of $7
million.
One of the best ways to find out if business operations and
facilities are in compliance with environmental requirements is to
conduct an environmental audit. Audits can be done with internal
staff or, better yet, using an outside, third-party environmental
consulting firm. In either case, the company should ensure its
audit is conducted in compliance with the federal and state (if
available) audit privilege. Audits can be done before the
acquisition of a business or new property, or at any time after
operations have started. Audits for due diligence purposes
pre-acquisition are worth every penny because new environmental
permits often come with a steep price tag.
Manufacturing industries are regulated by a complex system of
environmental laws—even if the products are hoppy India pale
ale, dark French roast coffee, crunchy dill pickles, or your
daughter's favorite brownies. Those in the food and beverage
industries will do well to keep this in mind – doing so could
save them the bitter taste of losing time and money.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.