GEC News

August is a hot month and with the heat comes word of water bans and pleas for water conservation. In some jurisdictions there are even water shortages. A primary topic for the National Groundwater Association annual conference is "Declining Groundwater Levels" (read: loss of groundwater).   Increasingly business is coming to learn that water conservation is more than a good idea that may reduce costs. A better understanding of water use may lead to applying conservation measures, but the emphasis by senior management and investors on enterprise risk evaluation indicates that how you decide to handle your water risks may determine your company's future success.

Identifying a problem is critical to learning how to address it and increasingly companies are recognizing that water shortages and allocations may impact business. Current permits, both for the extraction and use of clean water, and the discharge of polluted water, may change. In more and more regions of the world, including the United States, pressures are growing to assure that ecosystems and basic human needs are not trumped by businesses' desire to make a product. Climate change, changes in supply and the increased demand for clean high-quality water may put permits for water extraction at risk. Businesses that fail to identify their risk to water shortages, plan for reduction in water (rationing), proactively reduce consumption and develop contingency plans may find it difficult to react to shortages or reallocation.

We are seeing growing opposition to proposed facility siting that may result in a negative impact to water. At the moment, this concern is primarily focused on concern regarding water withdrawal affecting other businesses and residents' ability to secure a reliable source of clean water.   Public opposition and government prohibitions against certain wastewater discharge techniques or water quality impacts are also increasing. We are encouraging our clients to understand, monitor and manage their water use. Part of this understanding and management is identifying and implementing water conservation techniques. Such conservation will reduce the likelihood of unexpected water disruption and will reduce business risk. As part of corporate sustainability programs (either required by customers or on their own initiative) businesses are looking at water consumption in a new context. This involves assessing needs and improved communication among those stakeholders both within and external to the business. Fortunately, there are better tools and techniques now available.

Our clients employ financial risk management techniques every day. Water may soon be included in higher level "enterprise risk management" evaluations. GEC enjoys a long reputation for understanding water issues in all their manifestations. Our engineering, technical and risk experts help clients negotiate pitfalls that catch others unaware.

Scrutinizing water use and taking advantage of water conservation opportunities has significant benefit to corporate and environmental sustainability. Applying water conservation techniques:

• Reduces reliance on outside water supply and decreases business risk as reliance on this water decreases.
• Reduces costs. Remember that there is a cost associated with water exploitation, collection and distribution as reflected in the water bills and a cost associated with water conveyance and treatment as reflected in energy bills and water treatment costs.
• When focused on your suppliers, assures that their dependency on water does not surprise you with an interruption in the materials or goods that you depend on for your products or with a price increase that makes you non-competitive.

GEC recommends that businesses and institutions invest some time and effort in addressing the above issues. GEC offers a water management opportunities survey. For a modest investment, you may be able to choose among opportunities that will assure your business remains competitive. 

According to the Massachusetts Department of Environmental Protection's (MADEP) most recent press release, enforcement of environmental regulations is going strong in 2011.  Despite, or maybe because of, the threatened budget cuts MADEP reported thirty nine enforcement actions in May alone with penalties totaling just under $530,000.  Some of these penalties will be suspended but the message seems clear: MADEP continues their audits and inspections to assure compliance with environmental regulations.

Eleven of these enforcement actions were taken to address noncompliance with the Massachusetts Contingency Plan (310 CMR 40.0000) (MCP).  Consistent with what one might expect, the enforcement actions were directed at responsible parties for failure to notify a reportable release or failure to comply with established deadlines for response actions.  In many cases the failure to notify came as a result of a MADEP audit inspection of an existing release at which point additional reportable releases had been identified but notification had not taken place. With the automated tracking of compliance deadlines for disposal sites MADEP can easily track those parties who do not complete response actions in accordance with the schedule provided in the MCP.  Such enforcement actions are easy pickings for the MADEP - easy to track and easy to prove. 

Nine of the enforcement actions were taken to address violations of regulations governing asbestos abatement and mitigation.  In most cases contractors or property owners failed to properly notify the MADEP prior to commencing demolition or renovation work resulting in improper asbestos abatement and improper disposal of asbestos containing material.  MADEP became aware of some of these incidents through inter-agency referrals and in other cases the violations became apparent after MADEP inspected ongoing asbestos abatement projects.

The MADEP's enforcement efforts were not limited to MCP and asbestos violations but extended across a spectrum of environmental regulations including wastewater, waterways, wetlands, hazardous waste and drinking water / water supply.  The level of enforcement actions tells us that even in a climate of budget cuts the MADEP continues to press for compliance with regulations.  The breadth of programs over which the enforcement is taking place tells us that all of the MADEP's bureaus are out there actively assuring compliance.