ERP - Environmental Risk Professionals

Chemical Storage

Chemicals, oils, lubricants, and fuels may be present at hydroelectric power plants. These may be stored in aboveground or underground storage tanks or containers, such as totes and drums. Spills or releases during storage, maintenance, use or loading/unloading can occur and impact soil or groundwater, migrate to adjacent properties or surface waters, or enter storm drains or sewer drains. Cleanup, natural resource damage, third-party bodily injury, or property damage claims can result.

Mold

Mold could develop in buildings at hydroelectric power plants due to moisture or water intrusion. Cleanup or third-party claims could result from mold exposure.

Subcontractors

Construction on the hydroelectric plant or associated dam or river bypass could release contaminants, silts, and sediments. If the contractor performing the work is not adequately insured or goes out of business, the plant’s owner may be liable for claims related to an environmental release. The owner can also be jointly sued for construction-related environmental releases.

Sediments

Some hydroelectric facilities have reservoirs behind a dam. Suspended solids from run-off upstream of the dam can flow into the reservoir. These sediments can contain contaminants, including metals, oil, grease, pesticides, herbicides, etc. Flooding or other events that cause sediments to be released downstream of the utility-owned reservoir could create liability for the hydroelectric facility.

Asbestos and Lead-Based Paint

Existing buildings could contain asbestos-containing materials or lead-based paint. Asbestos has been identified in wiring, electrical insulation, breakers, arc chutes, cable trays, floor tile, mastic, drywall, gaskets, brake shoes, ducting, and various other locations within the plants. Tort claims may result from accidental disturbance during demolition, renovation, or construction.

Oil Spills

Transformers, turbines, switch equipment, capacitors, and other electrical equipment often contain oils. Leaks or spills of these oils can result in contamination, third-party injury or property damage, or natural resource damage.

Illicit Abandonment

Hydroelectric plants may be located at remote sites. Illicit abandonment, the illegal dumping of pollutants on a property by a third party, could occur if a site is not adequately secured. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.

Waste Management

Wastes a hydroelectric plant generates may include waste oils or lubricants, PCB-containing materials, batteries, dredged sediments, etc. Improper segregation and disposal of contaminated or regulated wastes can lead to environmental liability or legal consequences for violating regulatory requirements. Waste generators can become Potentially Responsible Parties for cleanups at non-owned disposal sites.

Loading and Unloading

Leaks or spills of transported wastes from a hydroelectric facility could occur during loading and unloading operations or transport due to accidents or improper cargo securement. The facility could incur contingent liability for third-party and cleanup liability related to transportation-related environmental incidents.

Polychlorinated Biphenyls

Polychlorinated biphenyls (PCBs) were widely used in a variety of electrical equipment historically and could be present in equipment at older plants. PCBs may be found in oils present in turbines, turbine oil storage rooms, breaker boxes, capacitors, switches, electric vaults, light ballasts, spillway gate hoists or switches, navigation lock switches, hydraulics, etc. Spills or leaks of PCB-containing oils can occur and impact soil, groundwater, or surface water.

Environmental Pollution Liability Insurance Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for cleanup costs

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Defense of third-party claims

First-party and third-party transportation pollution liability

Business Interruption expenses resulting from pollution conditions

Mold, bacteria, legionella, and more

Civil fines and punitive damages, where allowed by state law

Aboveground and underground storage tanks

Owner-controlled contractors pollution liability

Natural resource damage

Emergency response expenses

Illicit abandonment

Non-owned disposal sites

Loading and unloading

Claims Scenarios & Examples

Historically, a hydroelectric facility dumped old capacitors, switches, etc., at the site and to the dumping area. Cleanup of the river and natural resource damage claims were filed against the facility’s current owner.

An environmental activist organization sued a hydroelectric plant, claiming that they were discharging cooling water contaminated with oil and grease into a river. The owner had to perform monitoring and defend himself against the lawsuit.

A temporary bypass channel was constructed at a hydroelectric facility to repair the spillway structure and reinforce shoreline protection. During construction, a contractor hired by the facility owner placed artificial turf containing crumb rubber in the bypass channel. This material was used without prior approval from the owner or state agencies. The contractor allowed the river to be diverted over the turf and rubber, resulting in discharges of these materials to the river. The materials contained chemicals found in tires, including one that was toxic to the salmon in the river. The owner had to defend themselves against cleanup, third-party, and natural resource damage claims related to the improper use of these materials.

Asbestos was present as insulation on pipes, electrical wires, generators, and other machinery at a hydroelectric power plant. A worker regularly cut asbestos-containing pipes and unknowingly brought fibers home on his clothes. His wife laundered the clothing and inhaled the fibers. She developed mesothelioma, and the hydroelectric plant owner was deemed responsible for the women’s illness and had to pay bodily injury damages amounting to $20 million.

A hydroelectric plant removed all PCB-containing oil from its turbines and other equipment at its Site and sent the waste to a third-party Non-Owned Disposal Site (NODS). Several years later, the NODS was found to have released PCBs and other contaminants to soil and groundwater, and the Site was listed on the National Priority List for Superfund cleanup. The hydroelectric plant owner was named a Potentially Responsible Party for the cleanup of the NODS.

A transformer at a hydroelectric facility failed, releasing oil into secondary containment. However, the oil escaped the secondary containment through expansion joints and discharged into the river. The owner of the hydroelectric facility was liable for emergency response, investigation, cleanup, and monitoring costs related to the release.

During turbine bearing maintenance at a hydroelectric plant, approximately 600 gallons of turbine oil leaked from a blade seal and escaped into the river. Emergency crews were only able to capture approximately a third of the leaked oil, and cleanup of the river was required.

Property Types

Hydroelectric Power Plants

Environmental Exposures May Include