Wastewater Management
Unacceptable materials, such as metals or other wastes, can be mixed with plastics to be recycled. Contaminant removal done at the recycling facility can subject the facility to hazardous waste generator requirements. Additionally, spent chemicals may be generated from treatment processes, waste oils, and solvents from the maintenance of processing equipment or fleet vehicles. Wastewater may also be generated from mechanical washing processes. The facility is responsible for the proper containment, labeling, storage, and disposal of wastewater and hazardous wastes. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements. Additionally, off-site disposal of wastes can lead to liability for the cleanup of non-owned disposal (NOD) facilities.
Stormwater Run-off
Stormwater that comes in contact with stored stockpiles of plastics to be recycled, plastic resin pellets, and powder coloring for plastics can collect microplastic particles, including polypropylene, polyvinyl chloride, polyester, etc., and become contaminated. If the stormwater run-off is not properly controlled, contained, and pre-treated before discharge into sanitary or storm drainage systems, it could impact groundwater, surface water quality, and aquatic systems. Microplastics display nutritive algae that organisms up the food chain require.
Toxic Plastic Chemical Leaching
Plastics have several toxic constituents, among which are phthalates, polyfluorinated chemicals, bisphenol A (BPA), brominated flame retardants, and antimony trioxide, which can leach out to have adverse effects on the environment and public health. Plastic recyclers sell to manufacturers that use their plastic to make new items. As part of the product supply chain, plastic recyclers could be drawn into product pollution suits and face the potential for liability and defense costs.
Plastic Pellet Transport Spills
Accidental releases of plastic pellet products can occur during transportation or loading/unloading. Spilled plastic pellets can migrate into municipal sewers or waterways. Once in the environment, the pellets are persistent. They can be ingested and harm wildlife, leading to potential natural resource damage, cleanup liability, and third-party claims.
Chemical Storage
The chemicals used to break down waste plastics or the component chemicals created can leak or spill during use, storage, or loading/unloading. Releases can impact the environment at the site or migrate off-site in groundwater or stormwater. Cleanup, third-party claims, or natural resource damage claims can result.
Air Emissions
Hazardous air emissions can be generated from various operations and equipment used at plastic recycling facilities. Particulate matter air emissions can be generated from material handling and finishing operations. Volatile organic compounds and hazardous air pollutant emissions can result from chemical processing or extrusion operations. Also, air emissions can emanate from boilers, vehicles, and powered equipment, such as forklifts, trucks, and cranes. Boilers and internal combustion vehicles are often powered by diesel or propane, which can emit carbon monoxide gas. Air emissions not properly controlled or exceeding permit limits can lead to violations or third-party injury claims.
Storage Tanks
Aboveground or underground storage tanks may store wastewater, products, gasoline, diesel fuel, lubricants, motor oils, coolants, hydraulic fluids, heating oils, or other chemicals at plastic recycling facilities. Spills or leaks of chemicals may occur during storage, during loading/unloading, during use, or from equipment. These releases can impact soil or groundwater, migrate to surface water bodies or drinking water sources, or impact indoor air through vapor intrusion.
Flammables
Some chemicals and materials used, stored, or produced at plastics recycling facilities may be flammable and could cause a fire that spreads and releases other contained materials. A fire at a facility could emit toxic fumes and smoke from the materials stored or due to a mix of materials resulting from the fire. Firefighting solutions such as water or foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.
Residual Chemical Containers
Plastic containers that are recycled may have contained pesticides, chemicals, wastes, etc., in the past. The Federal Drug Administration (FDA) has identified a concern about recycling these containers. They have indicated that contaminants from the chemicals held may be present in recycled plastics. They also encouraged testing for possible surrogate contaminants to ensure they are not present in end-use consumer products. If present, consumers could be exposed to harmful contaminants, which may lead to product pollution liability suits against the recycler.
Environmental Pollution Liability Can Provide Coverage For
Integrated GL/Site Pollution, options to include XS, Auto, and WC may be available
Monoline Site Pollution Liability
Third-party claims for bodily injury and property damage
First-party and third-party cleanup
Defense of third-party claims
Emergency response costs
Natural resource damage
First and third-party transportation pollution liability
Loading and unloading
Crisis/reputation management
Civil fines and penalties
Off-site services pollution liability
Business interruption expenses
Non-owned disposal sites
Products pollution liability