Although the U.S. EPA has reduced its resources for environmental prosecutions and the U.S. Department of Justice reports the total number of environmental convictions is down for the second year (from 511 to 446), there have been recent landmark penalties.
Portland-based Willamette Industries Inc., a plywood manufacturer with 13 factories in four states, settled its air violation charges for $93.2 million. In the largest settlement to date with a single company, it was charged with failing to install proper pollution controls and failing to obtain permits at 13 facilities. Penalties will be used for Willamette to install upgraded pollution control equipment, improve municipal sewer systems, acquire parkland and build ethanol fueling stations for alternative fuel vehicle fleets. Over the last few years, the EPA has settled with companies comprising half the wood products industry – Louisiana-Pacific, Georgia-Pacific and Weyerhaeuser – and is still pursuing Boise-Cascade.
Chevron USA, the second largest U.S. oil company, agreed to pay a $6 million fine and spend $1
million on environmental improvements to settle a federal lawsuit over Clean Air Act violations at a California offshore oil terminal. The settlement is the largest ever imposed against one facility.
EPA’s criminal investigations are almost evenly divided between pollution offenses (47% in 1997) and wildlife protection law violations (53% in 1997). The average fine was $2.5 million. The trend over recent years is from corporate prosecutions toward indictment of individuals and corporate officers. 75 percent of the cases were brought against individuals; 25 percent of those convicted resulted in jail sentences, averaging 21 months.
After the Ontario government in Canada slashed the environmental operating budget by $122 million
between 1994 – 2000 (42%) and cut 900 enforcement staff, it is trying to restore public confidence by announcing $10 million and 65 new staff to enforce Canada’s toughest fines and longest jail terms for repeat polluters. The Ontario Environment Ministry is proposing legislation to create a new department dubbed “The SWAT Team,” focused solely on enforcing the new laws.
The Ministry proposes increased maximum fines for first corporate offenses, from C$1 million (US$670,000) to $6 million per day, and from $2 to $10 million for subsequent convictions. Fines for individuals would increase from C$100,000 to C$4 million per day for the first conviction and from C$200,000 to C$6 million per day for subsequent convictions. Maximum jail terms would increase from two to five years.
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