Chemicals, oils, and fuels may be present in biomass plants. These will likely be stored in bulk tanks, such as aboveground or underground storage tanks. Tanks present an elevated risk for a release during storage, loading, or unloading operations. Releases associated with tanks can impact soil or groundwater, migrate to adjacent properties, or enter storm or sewer drains. Cleanup, natural resource damage, or third-party bodily injury or property damage claims can result.
Chemicals, lubricants, oils, fuels, and wastes may also be stored in smaller containers such as totes or drums. Spills or releases during storage, use, loading, or unloading can occur, resulting in cleanup, natural resource damage, or third-party bodily injury or property damage claims.
Equipment present at biomass plants to process, handle and move incoming wastes may include shredding equipment, forklifts, conveyors, trucks, etc. Petroleum-based fluids, including diesel fuels, hydraulic fluids, cleaners, and coolants, may leak or spill from equipment and vehicles during use, maintenance, or fueling. A release can contaminate soil or groundwater or migrate to storm or sewer drains.
Sources of biomass materials, including wood, wood processing wastes, crops, etc., may be stockpiled outside. Additionally, chemicals, debris, fueling areas, wastes, and other outside storage of materials may occur at biomass plants. Stormwater can come into contact with these outside areas and collect contaminants. If stormwater run-off is not properly controlled, contained, or pre-treated before discharge to surface water, sanitary systems, or storm drains, it can pollute soil, groundwater, or surface water. Human health, wildlife, and the environment can be adversely impacted.
Biomass facilities produce air emissions, including particulates, nitrogen oxides, carbon monoxide, and other hazardous air pollutants. These constituents can contribute to acid rain and climate change. Improper controls or malfunctioning equipment can cause emissions to exceed permit limits and cause regulatory violations. Air emissions can pose health hazards to third parties.
Depending on the biomass conversion process at a facility, gaseous fuels, such as hydrogen, methane, renewable natural gas, or synthesis gas, may be produced. If these gaseous fuels are accidentally released into confined spaces, they can act as an asphyxiant to occupants. Also, since these gases are flammable, leaks increase the possibility of a fire or explosion. Accidental releases could injure third parties.
Wastewater may be generated from biomass processes or cleaning equipment, or trucks. Wastewater may be discharged to a sanitary sewer, treated with an on-site treatment system, or collected for treatment off-site. Exceedances of sewer discharge criteria may result in regulatory violations and fines. Leaks and spills could occur during storage, treatment, or loading/unloading of wastewater, resulting in environmental impacts. Improper disposal of wastewater could also lead to tort liability.
Wastes are generated from biomass facilities. Combustion plants generate ash and slag containing metals such as copper, chromium, and arsenic from preservatives in treated wood and dioxins. Additionally, waste oils and other regulated or hazardous wastes may be generated from these facilities. Improper disposal or handling of wastes could lead to environmental liability, civil fines, or legal consequences. Additionally, biomass facilities can have tort liability for releases at third-party disposal facilities where they send their wastes.
Ash generated from biomass facilities may be utilized in landfill cover, in road construction, as a soil amendment, or for concrete. Using the ash in these sources could create a product’s pollution liability exposure.
Biomass plants face the risk of fire from several sources. Fuel sources such as wood products, sawdust, and other biomass plant fuel sources may be stored in piles, waiting for transport or use, and fires can occur due to oxidation and spontaneous combustion within the piles. Wood pellets, chips, or other refuse can also break into combustible dust. Handling and storing flammable or combustible gases and liquids can also increase the fire risk. Extinguishing fires can produce fire water run-off contaminated with pollutants that can impact soils, groundwater, or surface waters. Additionally, smoke and dust can be generated from firefighting that can be a nuisance or irritant to neighboring properties and result in claims for third-party bodily injury.
Biomass plants may generate odors from the burning of wastes or other processes. Third-party nuisance claims can result from odors, considered “pollutants,” in many cases in the courts.
Some biomass facilities generate liquid and gaseous fuels. Use, failure, or defects associated with these products may result in product pollution liability, including bodily injury, property damage, or cleanup liability.
Integrated GL/site pollution and options to include excess, auto, and workers’ comp may be available
Monoline site pollution liability
Third-party claims for bodily injury and property damage
First-party and third-party cleanup
Both sudden and gradual pollution conditions
Defense of third-party claims
Emergency response costs
Natural resource damage
First and third-party transportation pollution liability
Loading and unloading
Products pollution liability
Business interruption resulting from pollution conditions
Aboveground and underground storage tanks
Non-owned disposal sites
Civil fines and penalties
Mold, legionella, and more
Illicit abandonment
Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are at fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.