Waste Management: What to look for in a waste management provider
Many small and mid-sized companies struggle with waste management at their facilities. In our experience, every production and manufacturing facility has waste that needs to be managed in accordance with their local, state, and federal regulations (whether the companies know it or not is another story). The Gulf Coast has witnessed expansive development in energy, manufacturing, and the building of petrochemical facilities and their ancillary businesses (transport, steel, parts, etc.). With the growth of this infrastructure comes the increased production of wastes from the business. Numerous small and mid-sized companies do not have experts in waste classification, waste profiling, or waste disposal. Many of these Environmental, Health, and Safety (EHS) Manager representatives turn to waste management providers to assist them in classification, profiling, transport, and disposal/recycling/reuse. When turning to waste management providers (i.e., waste brokers), what should companies be looking for? What are red flags for the business concerning liability and long-term obligations? What assurances or ancillary benefits do some waste management companies provide, and which do they not provide?
The most important thing to realize, regardless of what point you enter the management of waste, is that the Resource Conservation and Recovery Act (RCRA) instantaneously and forever holds you responsible for the final deposition (disposal, recycling, incineration, reuse) of these materials. Today, Houston is home to more than 50 Fortune 500 energy related companies, many of these players have teams of waste management specialties that help facilitate the final deposition of these companies’ waste. Liability protection is often at the forefront of these teams’ management. Meanwhile, for 1,000s of other companies, they have one or two EHS Managers that are tasked with the deposition of waste at 1,000s of facilities. Many of these EHS Managers have limited technical or classical training in RCRA, waste profiling, waste classification, waste deposition, Department of Transportation (DOT) regulations, or recycling and reuse rules. They are Jacks of all Trades, and Master of only a few. Often, in many cases they are safety professionals working through waste issues. Both the rise of increasingly specific environmental laws regarding waste, and the thousands of small and mid-sized companies producing waste has led to the proliferation of assistance for these EHS Managers. There are hundreds of waste management providers that assist companies with wastes in some form or fashion along the journey from production to deposition. These “brokers” have varied roles and responsibilities that they try and fill and assist the EHS Managers, but what makes a “broker” a waste management company? What enables a waste management provider to service a company’s waste in an efficient, effective, and a liability limiting scheme, all while providing a service that is heavily influence by cost. No operations person has ever said, “gee, can you get rid of this in the most expensive, liability limiting method and charge me a very high price to ensure it.” Waste deposition, while pertinent that it be done correctly, does not add to the bottom line. So, again I ask, what types of capabilities and assurances make a great waste management provider?
The matrix for what defines a great waste management provider is complex and can get specific to the business needs. Is the EHS Manager just looking for deposition facilities, or do they need transport and classification and profiling assistance? Most EHS Managers, tend to need a full spectrum of services at their disposal to effectively function through the year with all the different waste that are generated over the year at their facility. To walk through some of the specifics, we will concentrate in on capabilities, responsiveness, insurance, inspections, broad spectrum equipment, and knowledge of regulatory assistance.
When evaluating capabilities, this is very subjective to what the facility needs assistance with. Does that waste management provider only assist with profiling and classification to facilities and is that all the assistance that the EHS Manager needs. Is there a waste transporter already in place, or does that facility have their own transport or does the waste management provider need to provide for DOT compliant transport for the wastes. Also, while evaluating transport, does the waste management provider have their own transport, or is this a third-party to a third-party situation? If a third-party to third-party transport situation, are there justifiable contracts, insurance, and liability protections from the company generating the waste, to the waste management provider, that then further passed down to the third-party contracting the waste transportation. Meaning, the waste management provider having their own transport is a fairly significant portion of protection and assurance in many situations. Other capabilities include the array of wastes that potentially are generated matching up with the array of transportation requirements. Does the waste management provider have tankers for impacted stormwater or process water, what about 18-wheel trailers for drums or end dumps for bulk wastes, soil, or cuttings? The capabilities and infrastructure of the waste provider matters greatly when the generator needs timely response for waste deposition.
Responsiveness has several definitions, but really it comes down to the idea that you can call someone at the waste management provider, that they will answer, and that they are knowledgeable enough to handle the question or waste issue. But it can also go much deeper than that. Does the waste management provider have relationships, contracts, and contacts at the facilities that the generator needs? Also, are those relationships and contracts advantages from a cost standpoint? As with most things, volume of waste to certain providers results in a bulk discount, which then is often passed along and makes the waste management provider preferred from a cost-efficient standpoint in bidding out potential waste with disposal facilities. Additionally, in this area they are responsive, but do they also have your best interest at play. Could this product be reused or is there a recycling option that may even provide revenue. Do they have the contact, contracts, and connections to help in that area?Insurance, inspections, and liability protection is catamount in the high-risk world of RCRA and cradle to grave liability responsibility. Some questions you need to ask are; Does your waste management provider have insurance? Is it to a level that satisfies the potential liability? Do they have specialized insurance that also takes responsibility for a future cleanup? What level of insurance is the end user comfortable with, and have the companies considered what could plausibly happen. However, this conversation started in the wrong place, do companies know that the facilities accepting wastes, recyclables, or reuse feedstock are reputable? Are reviews or inspections done on a regular basis? Does your waste provider factor their reputation into their framework for accepting facilities, or do they only consider the lowest priced option? The consideration of insurance, inspections, and in the end, liability protections are often overlooked in the long term for the cheapest pricing in the short term. These considerations are so important depending upon the type of waste and the alternative deposition facilities that should be considered. If you have never been through it, come listen to the ugly side of what can happen when you send your waste to a questionable place for a little less money.Lastly, your waste management provider needs to help the client comply with the myriad of environmental regulations. In early 2022, the Texas Commission on Environmental Quality adopted the Federal RCRA updates. These rules change the waste generator status of many waste generators. A good waste management provider will help assure that the client is aware of these changes and is updating as needed. There are also changes to secondary materials recycling, export and import of hazardous wastes, and changes to hazardous waste aerosol cans. Additionally, the waste management provider can often easily tally the Annual Waste Summary information. When looking for a waste provider, does your waste provider help with these tasks and in what ways do they keep the Client updated? This is a smattering of the discussion and issues that our industry veterans will discuss in our upcoming webinar on what to look for in a waste provider. If any of the questions gave you pause, IKON Environmental Solutions invites you to join us for our upcoming roundtable discussion on waste management providers. Register here for the Webinar. For additional information or for help with waste management contact Andy Adams, Kevin Allison, Terrie Jennings or Michael Jaskowiak.