Model State Compliance Assurance
Program Guide for
Auto Recycling Facilities
vvEPA
-------
Enwironmental [[[ 1
Identifying the Uniwerse of Auto Recycling Facilities.....................................2
Local Trade Associations 2
Local Motor Vehicle Agencies[[[3
Other Local Government Agencies[[[3
The Telephone Book 4
Word-of-Mouth[[[4
Automobile Auction Houses[[[5
Visual Identification by Drive-By 5
Aerial Photography/Flyovers [[[5
Data Collection Companies and Marketing Lists .........................................5
a of Performance 6
Why Develop a Baseline? [[[6
How Do I Develop a Baseline? [[[7
a Compliance Program 9
The of a Compliance Assurance Program ........................................9
A General Approach for a Compliance Assurance
-------
This guide is
intended to
assist states in
developing a
compliance
assurance
program for
auto recycling
facilities.
Model State Compliance Assurance
Program Guide for
Auto Recycling Facilities
Environmental
Issues
Each year, approximately 8.2 mil-
lion cars and 5.1 million trucks
are retired in the United States1.
Most of these vehicles end up in auto
recycling facilities.The primary environ-
mental concern at auto recycling facilities
is the potential for ground- and surface-
water contamination due to mishandling
of vehicular fluids, including gasoline,
diesel fuel, oil, transmission fluid, power
steering and brake fluids, gear oil, and
mineral spirits. These facilities also gen-
erate a number of other wastes, includ-
ing: mercury from switches and lamps;
lead from lead-acid batteries, wheel
weights, and battery cable ends; CFCs
and other refrigerants from air-condition-
ing units; sodium azide from air bags;
asbestos from brake shoes and clutches;
and waste tires.
The U.S. Census Bureau estimates that
there are over 7,000 auto recycling facili-
ties in the U.S. Once the old cars are dis-
mantled, these facilities sell some of the
components to professional auto repair
shops and to those of us who like to fix
our own cars. Other components, such as
antifreeze and lubricants, may be recy-
cled, stored indefinitely on site, or
improperly disposed. Poor management
of waste streams by owners and opera-
tors of auto recycling facilities can have
serious impacts on environmental quality.
Several federal environmental statutes
(e.g., the Resource Conservation and
Recovery Act (RCRA), the Clean Water
Act (CWA), and the Clean Air Act (CAA)),
as well as state and local requirements
impact this industry. Many facilities (par-
ticularly the small operations) may not
understand fully which of the require-
ments apply to them or how they should
manage their wastes to minimize releas-
es to the environment. While information
on national compliance rates is not avail-
able for auto recycling facilities at this
time, anecdotal information from state
compliance assurance programs indicate
poor environmental compliance at auto
recycling facilities (see the case studies
at the end of this guide).
The Environmental Protection Agency
(EPA) and the states need to reach out
to this industry. Many compliance assur-
ance tools are available, but there has
not been a guide to help the states estab-
lish an effective compliance assurance
program. This guide presents the compo-
nents of a program that integrates all
facets of compliance assurance: compli-
ance assistance, compliance incentives,
compliance monitoring, and enforcement.
In developing a compliance assurance
program for auto recyclers, it is important
Source: Management of End-of Life Vehicles (ELVs) in the US, Center for Sustainable Systems,
University of Michigan, Jeff Staudinger and Gregory Keoleian. Approximately 93% of the
trucks are considered "light," with 75% of those being used for personal use.
Page 1
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to differentiate
between those recy-
clers who are either
in compliance or are
trying to comply with
environmental regula-
tions, and those who
make little or no effort
to comply. One of the
biggest challenges in developing a com-
pliance assurance program is identifying
the noncompliant recyclers. These facili-
Identity the Universe of
Auto Recycling Facilities
ties typically don't apply for the proper
EPA permits (e.g., storm water permits),
may not have the proper business
licences, and are not on EPA's or states'
"radar screens," making it difficult to
identify and evaluate them. However, if
compliance assistance or enforcement
efforts are focused only on the easily
identified facilities, it may encourage
facilities to stop working with EPA and
states, further eroding environmental per-
formance in this sector.
The first component of an effective com-
pliance assurance program is knowing
the number and locations of the auto
recycling facilities in your state.
Identifying the entire universe of auto
recycling facilities can be challenging
because this sector comprises many
small "mom and pop" shops and "hobby-
ists." As mentioned above, the U.S.
Census Bureau estimates the number of
auto recycling facilities to be over 7,000;
however, other sources list the number of
facilities as ranging from 6,000 to over
12,0002. This wide range reflects the fact
that the "mom and pop" and hobbyist
shops are hard to locate and classify.
There is no comprehensive list of auto
recycling facilities in the United States.
You will probably need to use several
resources to help locate the auto recy-
cling facilities in your state or region.
These include local trade associations,
local government agencies, the phone
book, word-of-mouth (e.g., identify small
facilities through discussions with large
auto recyclers), visual identification by
driving by auto recycling facilities, and
aerial photography. Trade associations
can be a good place to identify the larger
auto recycling facilities. You can supple-
ment this list with information from local
government agencies and the phone
book. However, to identify the small
"mom and pop" facilities and hobbyists,
you may need to turn to visual identifica-
tion, aerial photography, or word-of-
mouth. We encourage you to use a com-
bination of these tools to identify the auto
recycling facility universe in your state,
because no single tool likely will generate
a comprehensive list.
Local Trade
Associations
People involved or interested in a particu-
lar trade often join a trade association.
The national trade association for auto
recycling facilities is the Automotive
Recyclers Association (ARA, at
www.autorecyc.org). This trade associ-
ation has local chapters that are active in
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Source: Management of End-of Life Vehicles (ELVs) in the US
-------
many states; these chapters can be
accessed through ARA's Internet site
(click on "Useful Links" or go to
www.autorecyc.org/docs/links/
relatedlinks.htm).
The local auto recycling trade association
chapters should be able to provide the
name, address, and contact person for
their members, and identify the type
of work that their members do. However,
only a subset of the auto recycling facili-
ties in an area may be identified. Small
facilities may not have the resources or
realize the value of being a member of
a trade association. ARA has approxi-
mately 1,000 members (an estimated 13
percent of the industry), and their affiliate
chapters have approximately 3,000 mem-
bers. The national and local chapters
account for approximately 50 percent of
the industry, most likely the larger, more
sophisticated, better performing auto
recycling facilities. In addition, ARA
requires members to comply with all gov-
ernment regulations and submit docu-
mentation of compliance with storm
water requirements. Using only trade
associations to identify facilities may
underestimate the number of auto recy-
cling facilities and bias your results with
respect to the performance of those facili-
ties. Nevertheless, a local trade associa-
tion is a good place to start in locating
auto recycling facilities.
The local auto recycling trade association
most likely has a more complete list of all
auto recyclers in the state. While the
trade association may be reluctant to pro-
vide this list to a regulatory agency, espe-
cially if there are potential enforcement
ramifications, several states found that
trade associations are willing to provide
the lists for activities solely focused on
compliance assistance. For example,
Kansas state personnel conducted com-
pliance assistance inspections at auto
recyclers with the provision that subse-
quent compliance assistance would be
provided by Kansas State University.
Because the focus of the inspections was
compliance assistance, the local trade
association was willing to provide the
complete list of auto recyclers.
Local Motor Vehicle
Agencies
In many states, the local motor vehicle
agencies (e.g., the Bureau of Motor
Vehicles, the local Department of
Transportation) require auto recycling
facilities to register and obtain a license.
For example, both Ohio and New York
maintain extensive
lists of auto recyclers
at their local
Departments of Motor
Vehicles; these lists
were used to identify
the universe of auto
recyclers. Local
motor vehicle agen-
cies also may have
additional information
to identify recyclers.
For example, Florida's local Departments
of Transportation provided aerial photog-
raphy that was used to identify recyclers.
Other Local
Government Agencies
Local government agencies may have
information about auto recycling facilities
resulting from issuing a business license,
knowing the service area for either fire or
police protection, or issuing some type of
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permit. You should work with local gov-
ernment agencies to both identify recy-
clers and foster cooperation between the
state and local agencies. Coordinating
with local government agencies will
pay dividends when implementing your
program. For example, Florida state
personnel coordinated with Orange
County government agencies to both
identify recyclers and implement a
compliance assurance program. Local
government agencies that may have
information include:
All states require some form of licens-
ing for business to operate. You can
contact a local business licensing
department to determine the level of
information they can provide.
However, your first step should be to
clarify the definitions your state uses
for various business sectors. Be
aware that some states have broad
classifications (e.g., "salvage yards")
that include but are not limited to auto
recycling facilities. In this case, using
data for all "salvage yards" would
overestimate your population and bias
your results.
Local fire and police departments may
have information on auto recycling
facilities, including small "mom and
pop" facilities and hobbyists, through
interactions with these facilities.
Local planning and economic develop-
ment agencies or watershed groups
may have information on the auto recy-
cling facilities within their service area.
Some auto recycling facilities have
obtained storm water permits; the local
water permitting agency will be able to
help identify these facilities. However,
the facilities that are most likely of con-
cern (i.e., noncompliant facilities) may
not have submitted a permit application
and, therefore, would not be included in
this data source.
The Telephone Book
The local phone book is a reliable source
for locating businesses. CD-ROMs that
contain Yellow Page listings are available
and offer flexible search options. You
can search under categories such as
"Automobile Salvage," "Automobile Parts
and SuppliesUsed and Rebuilt,"
"Junkyards," or "Junk Dealers." However,
not all auto salvage yards, especially
"mom and pop" yards or hobbyists,
advertise in the telephone book.
Therefore, using the phone book alone
will likely provide only a listing of the
large yards.
Word-of-Mouth
Talking to known auto recycling facilities
is an effective way to identify additional
facilities, especially the smaller facilities.
The larger facilities usually know about
the smaller facilities in a specific area.
Several states have successfully con-
vened meetings of trade association
members to help identify the smaller
facilities in specific localities. By clarify-
ing up front that the purpose of the effort
is to conduct a compliance assurance
program, you can usually get the required
information. Several states found that the
larger facilities are interested in seeing
the rest of the industry comply with regu-
lations, so the large facilities are willing
to support an industry-wide compliance
assurance effort.
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Automobile Auction
Houses
When cars are totaled, they are sent to
automobile auctions. ARA estimates that
there are approximately 250 automobile
auction houses in the country. These auc-
tion houses maintain lists of who pur-
chases automobiles at the auctions,
which may help identify additional auto
recycling facilities.
Visual Identification by
Drive-By
One approach to identifying "mom and
pop" auto recycling facilities and hobby-
ists is to drive by and visually identify
them. While this approach can provide
accurate information, it is not practical on
a large scale such as a state or even a
large county. However, if you have identi-
fied a specific area that is known to have
a concentration of auto recycling facili-
ties, this approach can be very effective.
Aerial Photography
/Flyovers
You can locate auto recycling facilities
through aerial photography. Aerial
photography provides a baseline record of
an area. Using the photographs, you can
locate the auto recycling facilities and
assess improvements in the operations of
auto recycling facilities as a result of
compliance assurance activities. Aerial
photographs are available from several
sources, such as the state Department of
Transportation, local planning and eco-
nomic development agencies, watershed
or water management agencies, and the
Corps of Engineers. You can also obtain
satellite photographs from geological sur-
veys, though these may not be of suffi-
cient quality to identify auto recyclers.
Geographic Information Systems (CIS)
software packages can be useful tools
for analyzing aerial photographs and iden-
tifying specific locations of recyclers.
You can use flyovers to find auto recy-
cling facilities that may not be found by
"driving by," and confirm the location of
those facilities through site visits.
Renting an airplane for a flyover or hiring
someone to take aerial photographs can
be expensive; however, you have to com-
pare the costs of this approach to the
benefits gained. For example, you may
collect more information in a shorter peri-
od of time from a flyover than by con-
ducting a drive-by to locate all of the
auto recycling facilities in an area. States
such as Florida and Wisconsin have suc-
cessfully used aerial photography and fly-
overs. In Florida, a local flying group vol-
unteered to do the flyovers to earn addi-
tional flight time; the state paid for the
film and development. Using this
approach, the state significantly reduced
the costs of this effort.
Data Collection
Companies and
Marketing Lists
Several companies collect financial data
and develop marketing lists to use in
direct marketing and financial activities.
The most common are Dun and
Bradstreet and Standard and Poors'
Compustat. EPA has a contract with Dun
and Bradstreet that allows EPA personnel
to query this database without any fee.
To access this database, contact Michelle
Torreano (202-566-2141) in EPA's Office
of Environmental Information, Data
Acquisition Branch. These sources are
useful for sectors containing primarily
large businesses. Unfortunately, these
sources usually do not include smaller
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companies and would not likely provide
any information in addition to that
obtained through the trade associations
and telephone books.
Developing a Baseline of
Performance
Why Develop a
Baseline?
After identifying the auto recycling facili-
ties in your area, the next step is to
develop a baseline of
environmental per-
formance. This step
is often overlooked
when developing
compliance assur-
ance programs, but
having such a base-
line is important to
better define the
problem, target the
compliance assis-
tance and enforcement activities, and
measure the success of your program.
Better Define the
Problem
Ideally, you would develop your baseline
using existing empirical data on the envi-
ronmental performance at auto recyclers.
However, in many cases, only anecdotal
information is available. These facilities
can have a wide range of environmental
performance issues, including mercury
switch handling, fluids management,
battery handling, and storm water control.
Some of these issues may be present at
most of the auto recycling facilities in
your area, while others may be present
at only one or two facilities. Developing a
valid baseline helps you better identify
and understand your universe of facilities.
the most prevalent environmental prob-
lems at those facilities, and their compli-
ance with environmental requirements.
This allows you to develop more applica-
ble and effective compliance assurance
strategies.
Target Compliance
Assurance Activities
By knowing what and where the prob-
lems are, you can better develop a strate-
gy and the tools targeted to address
those problems, and target your compli-
ance assurance activities to those facili-
ties with the most problems. Some fac-
tors you might consider include: facility
size and location, facility operations,
compliance history, exposure to compli-
ance information, sophistication, and the
potential impacted population. For
example, after developing a baseline
of auto recycling facilities in Orange
County, Florida, state personnel divided
the facilities into three groups: the "big
guys" (well-organized, more sophisticat-
ed facilities who would respond well to
compliance assistance); the "better half"
(small facilities with little or no automa-
tion who were trying to comply); and the
"bad guys" (small facilities with little
or no automation who were least likely
to respond to compliance assistance).
Based on this classification, Florida
personnel tailored their compliance
assurance activities to the different
types of facilities.
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Another useful tool in targeting your com-
pliance assurance program is CIS soft-
ware, which allows you to map the loca-
tion of auto recycling facilities and identi-
fy those located in potentially sensitive
receptor areas (e.g., near water bodies or
in environmental justice areas). For
example, Vermont had concerns with
hydrocarbons in water, so they used CIS
software to identify auto recycling facili-
ties located near water bodies.
Measure Success
Measuring the success of your program is
important to manage your program, justi-
fy program resources, prioritize program
activities (including knowing when to
"move on"), and report to the public the
success of your programs. In defining the
problem and establishing the baseline,
you should identify the goals of your pro-
gram and the measures you will use to
evaluate the effectiveness of that pro-
gram. Doing this up front will allow you to
measure your success. You can measure
the outputs (e.g., the number of inspec-
tions) or outcomes (e.g., change in com-
pliance, reduction of pollutant releases).
While outputs are useful measures, meas-
uring outcomes provides the best infor-
mation on the impact of your programs.
After developing a baseline, you can
measure the environmental performance
at auto recyclers after implementing your
compliance assurance program to evalu-
ate if your program has been successful.
This typically requires follow-up with
some or all of the facilities participating in
the compliance assurance program to
evaluate changes in environmental per-
formance. For example, you may look at
the number of facilities implementing
storm water best management practices
before and after your compliance assur-
ance. See EPA's Guide for Measuring
Compliance Assistance Outcomes (avail-
able at www.epa.gov/oeca/results) for a
detailed discussion on measuring the suc-
cess of compliance assistance programs.
How Do I Develop a
Baseline?
You can use several approaches to devel-
op a baseline. The approaches presented
here are: 1) visit all of the auto recycling
facilities, 2) visit a sample of auto recy-
cling facilities, 3) use a mailed survey,
and 4) use other data sources to obtain
information. The approach selected
depends on the resources available and
the size of the area you are evaluating
(e.g., state versus
county). For exam-
ple, you may be able
to visit all the auto
recycling facilities
within a particular
county, but you
would likely only be
able to visit a sample
of auto recycling
facilities at a state
level.
We recommend developing a baseline
evaluation tool, such as a site visit check-
list or a mailed survey. When developing
such a tool keep in mind that you should
use this same tool as a follow-up to meas-
ure the success of your compliance assur-
ance program. For example, if you develop
a site visit checklist and visit a sample of
the auto recyclers, you should use the
same checklist and visit another sample of
the recyclers after you complete your
compliance assurance program to consis-
tently measure any impacts.
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Visit All Auto Recycling
Facilities
The most comprehensive baseline is
developed by visiting all the auto recy-
cling facilities. You can then classify the
facilities by environmental performance
(e.g., Florida's Orange County efforts), tar-
get your compliance assurance accord-
ingly, and measure the success of your
program by following up with the auto
recycling facilities after implementing
your compliance assurance program.
However, this is also the most resource-
intensive approach.
Visit A Sample Of Auto
Recycling Facilities
Visiting a sample of auto recycling facili-
ties can provide valid information at a
lower cost than visiting all the auto recy-
cling facilities. The key is to visit a statis-
tically valid sample to ensure that the
facilities you visit represent the entire
population. It is only by visiting a statisti-
cal sample of facilities that you will be
able to generalize the results to your
entire population. You can create a statis-
tical sample as long as you know the
names and addresses of your entire pop-
ulation. If you want to distinguish
between subsets of your population,
determining the type of sample that you
select is important. For example, if you
want to compare compliance perform-
ance of large auto recycling facilities to
small ones, you will need to know that
PRIOR to developing your sample plan.
The Guide for Measuring Compliance
Assistance Outcomes discusses various
approaches for sampling, some of which
are very simple.
Equally important is knowing whether you
plan to revisit a sample of facilities to
determine improvements from the base-
line. In this case, you will need to develop
your original sample plan based on a two-
sample test. Most likely, you will be
determining the proportion of auto recy-
clers that are in compliance with your
checklist.
You can also visit a nonstatistical sample
of facilities who you feel are representa-
tive of your target population. While this
approach may be less resource-intensive
than a statistical sample, your results are
limited to the population sampled.
Use a Mailed Survey
EPA has often used mailed surveys to
evaluate the environmental performance
of a sector. However, mailed surveys can
be challenging when evaluating compli-
ance because survey recipients may not
know enough about what you are asking
to accurately assess their performance.
In developing a mailed survey, you need
to carefully consider how you are asking
questions to ensure that you are not lead-
ing the respondent. In addition, the small
"mom and pop" facilities and hobbyists
are unlikely to respond to a survey, which
may bias your results towards the larger,
environmentally aware auto recycling
facilities. EPA has typically seen response
rates ranging from 15 to 50 percent for
voluntary mailed surveys. If you choose
to use a mailed survey, consult the Guide
for Measuring Compliance Assistance
Outcomes for tips on designing and
implementing successful surveys. Overall,
surveys are likely to be much less
resource-intense than on-site visits,
and, if conducted properly, can provide
informative results.
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Use Other Data Sources
To Obtain Information
We previously presented approaches to
identifying auto recycling facilities. You can
use some of the information gathered in
that effort to help develop a baseline.
For example, Florida personnel used infor-
mation from aerial flyovers to classify auto
recycling facilities. Another approach is to
separate those facilities that are members
in a trade association (typically the larger,
more sophisticated facilities) from those
that aren't in a trade association. While
this information is not as detailed with
respect to environmental compliance, it
can still provide a reference point for clas-
sifying auto recycling
facilities. You also
could use this infor-
mation in conjunction
with anecdotal infor-
mation on compliance
problems at auto
recycling facilities to
identify specific envi-
ronmental problems. Finally, you can use
this information as well as information
from visits to a subset of facilities to help
define the problem, target compliance
assurance activities, and measure the suc-
cess of your program.
Developing a Compliance
Assurance Program
The Basics of a
Compliance Assurance
Program
After developing a baseline of current
environmental performance, the next
step is to design a compliance assurance
program to address the issues identified
at baseline. The key to developing this
program is to design the program to
address the specific issues that you iden-
tified at baseline - there is no "one size
fits all" program. This section presents
some of the tools that EPA Regions and
states have used for compliance assur-
ance programs at auto recycling facilities,
along with some of the advantages and
disadvantages of each tool. You should
select the appropriate combination of
tools based on the problems you identify
during your baseline study. A few key
points to remember:
Coordinate with local government
agencies. A successful compliance
assurance program is implemented at
the local level, even if it's a state-wide
program. Therefore, it is critical to
coordinate with local government
agencies. You likely will be relying on
these agencies to conduct some part
of your program (e.g., coordinating
workshops, conducting compliance
inspections, or supporting enforcement
cases). Working with these agencies
up front and getting their buy-in to the
program will help make your program
a success. Of particular interest may
be Departments of Motor Vehicles,
which in many states register auto
recyclers. Some states are partnering
with DMV inspectors to provide com-
pliance assistance.
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Couple compliance assistance with
enforcement and incentives. Many
states have found that an enforcement
"stick" is needed alongside the com-
pliance assistance "carrot" to assure
compliance. There inevitably is a sub-
set of facilities that does not respond
to compliance assis-
tance without a
threat of enforce-
ment. Other facilities
may be motivated by
incentives programs
such as on-site com-
pliance assistance or
assurance of penalty
mitigation for volun-
tary disclosures.
Work with local trade associations.
Local trade associations are an excel-
lent resource in terms of gathering
information and disseminating informa-
tion. You can work with trade associa-
tions to help identify auto recycling
facilities and issues at auto recycling
facilities, and to provide compliance
assistance information to the auto
recycling facilities. Cooperating with
the local trade association also adds
credibility to your efforts in the eyes of
the auto recycling facilities.
Publicize information on the "good"
and the "bad" performers. Both
states and the trade associations have
suggested publicizing the work of the
"good" performers so that other auto
recycling facilities can learn what is
considered "good" performance and
how other facilities achieved it. By the
same token, you could publicize the
results of enforcement activities
against "bad" performers to show the
costs and ramifications of poor per-
formance.
A General Approach
for a Compliance
Assurance Program
for the Auto Recycling
Sector
Several states have already implemented
compliance assurance programs for auto
recycling facilities. While each program
has unique characteristics, the programs
follow these general steps:
Identify the compliance issues by con-
ducting compliance assistance visits,
inspections, or investigations.
Identify the best tools and sequence
of those tools.
Develop and implement compliance
assistance outreach programs (e.g.,
workshops, fact sheets). Some states
have also developed self-certification
programs. Section 5 discusses these
types of programs.
Conduct follow-up inspections, compli-
ance assistance visits, or surveys to
measure the effectiveness of the com-
pliance assistance programs and the
validity of the self-certification.
For those facilities that aren't in com-
pliance, either provide additional com-
pliance assistance or initiate enforce-
ment activities.
Publicize the enforcement activities to
encourage the use of compliance
assistance.
Filter the lessons learned from viola-
tions into your compliance assistance
materials.
Page 1O
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Evaluate the results of your program
in terms of addressing the compliance
issues.
Remember, your program should be tai-
lored to address the specific needs you
identify at baseline. That way, you can
achieve the best results for your
resources. While there will likely be com-
monalities among various state programs,
each one has its own nuances. You can
draw on existing tools, but first ensure
that they address your needs.
What Compliance
Assurance Tools Are
Appropriate?
EPA and states have developed a wide
variety of tools applicable to auto recy-
cling facilities. The compliance resources
listed at the end of this guide identify
tools developed to date for auto recycling
facilities by states, EPA Regions, and
other groups. Before you develop auto
recycling compliance assurance tools, we
recommend that you look at existing tools
so you don't "reinvent the wheel." The
order in which you develop and imple-
ment these tools depends on the specific
issues identified while developing your
baseline. For example, if you find that one
subset of auto recycling facilities in your
area has excellent compliance, while
another subset has poor compliance, you
may want to set up a series of workshops
where the first group discusses with the
second group how they comply.
It is important to understand the strengths
and weaknesses of each compliance
assurance tool and apply the appropriate
tools (or combinations thereof) to your
specific situation. The types of tools are
discussed below.
Compliance inspections and visits to
potentially regulated facilities can be used
to provide technical assistance, compli-
ance assistance, and pollution prevention
assistance. Compliance inspections and
visits may also serve as a baseline from
which programs can measure the facili-
ty's progress. These inspections and vis-
its are possibly the best way to convey
compliance information to a specific facili-
ty, and are also an excellent means of dis-
seminating other types of compliance
assistance tools such as printed materi-
als, videos, and audit checklists. However,
compliance inspections and visits can be
very resource-intensive. In addition, facili-
ties may not be receptive to a compliance
inspection if they feel that you may carry
out enforcement activities as a result of
the inspection.
Compliance Assistance Workshops
include training sessions and seminars for
the regulated community. Workshops are
a good way to provide assistance to a
wide audience. While workshops don't
provide the "one-on-one" interaction that
inspections provide, workshops reach a
wider audience for the resources expended.
As with inspections, workshops are a use-
ful way to provide technical assistance,
compliance assistance, and pollution pre-
vention assistance. Several states have
developed workshops (see the case studies
starting on page 15); we recommend that
you consult with these states as a starting
point for your workshop. Workshops are
also an excellent way to disseminate other
compliance assistance tools such as print-
ed materials, videos, and audit checklists.
Printed materials (e.g., guidance docu-
ments, posters, and fact sheets) and videos
can reach a wide audience, but don't have
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the personal interaction provided by inspec-
tions and workshops. Targeted printed
materials or videos can be very effective if
you know the specific issues. For example,
if you know that auto recycling facilities in
your area are having difficulty managing
mercury wastes, you can send them a fact
sheet on mercury handling and disposal.
These materials are also an excellent way
to convey detailed technical information
related to compliance assistance or pollu-
tion prevention. Printed materials and
videos are very useful when used in con-
junction with workshops and inspections.
However, mass mailing of these tools runs
the risk of having the recipients either dis-
pose of or file the materials without looking
at them. States have developed a wide
range of printed materials and videos (see
the compedium referenced on page 22 for
more information); before developing your
own tools, we recommend that you consult
with other states.
Audit checklists are simple, easy-to-use
checklists to remind auto recycling facili-
ties of their environmental requirements.
These are particularly effective after provid-
ing in-person guidance during workshops or
inspections. As with printed materials,
audit checklists can reach a wide audience
using relatively few resources. Again, con-
sult with states that have developed audit
checklists before developing your checklist.
Internet materials can effectively reach
a very wide audience (even outside of your
targeted area). These materials can range
from electronic copies of the printed mate-
rials discussed above to sector-specific
compliance assistance computer programs.
Two such tools developed by EPA include
the Compliance Assistance Clearinghouse
(www.epa.gov/clearinghouse) and the Auto
Recyclers Compliance Assistance Center
(www.ECARcenter.org). Many small auto
recycling facilities do not have computer
access, so Internet materials may be of
limited use for some facilities in this sector.
However, Internet materials are useful for
disseminating information to compliance
assistance providers.
Compliance incentives, such as EPA's
audit policy and small business audit poli-
cy, can encourage self-disclosure and com-
pliance. These tools are available for use by
states. For details, see www.epa.gov/com-
pliance/incentives/index.html.
Enforcement action is usually one of the
last steps in a compliance assurance pro-
gram for this type of universe. Because of
the large number of auto recycling facilities,
including small "mom and pop" organiza-
tions, many states have been reluctant to
initiate extensive enforcement programs
before implementing compliance assistance
programs. However, there are usually situa-
tions where, even after extensive compli-
ance assistance, a subset of the population
requires some sort of enforcement action.
Enforcement actions can either spur
compliance or encourage a facility to leave
the business. When initiating a compliance
assurance program, you should clearly
state that there will be follow-up enforce-
ment activities for noncompliers, and delin-
eate the potential financial ramifications
(i.e., fines) of noncompliance. Note that
in cases where you observe conditions
that pose imminent or substantial endan-
germent to either human health or the envi-
ronment, you should take immediate
enforcement action.
One tool that has worked well for several
states is to take a few enforcement
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actions, and work with the trade associa-
tions and other groups to publicize the
results of these enforcement actions to the
rest of the population. Seeing the potential
ramifications of noncompliance can moti-
vate facilities towards compliance.
I
of My
As mentioned earlier, measuring the suc-
cess of your overall program helps you
focus your resources by identifying which
components of your program are the most
effective, and helps you document the
impacts of your program. In general, you
should follow up with auto recyclers to
measure how their understanding of the
requirements and environmental perform-
ance have improved as a result of your
program. If you have a multistage pro-
gram that is implemented over several
years (e.g., a series of outreach programs
followed by enforcement), you should
consider interim follow-up to measure
incremental impacts, identify which com-
ponents of your program were the most
effective, and identify how the set of tools
impacted the end result.
How you evaluate the effectiveness of
specific compliance assistance activities
depends on the type of compliance assis-
tance you implemented. If you conducted
compliance assistance visits to all the
auto recyclers in your area, you can revis-
it some or all of them to document envi-
ronmental issues and the improvement
resulting from compliance assistance. Or
you can conduct a telephone survey of
some or all the recyclers. If you conduct-
ed compliance assistance workshops, you
can administer pre- and post-tests. If you
have conducted an enforcement action,
you can identify the changes resulting
from that action. Table 1 lists several fol-
low-up methods that EPA recommends.
To measure the success of your overall
program, you should use the same tool
that you used to evaluate the baseline.
For example, if you developed a site visit
checklist for baseline visits, you should
use that same checklist for follow-up vis-
its. This allows a simple "before and
after" analysis to evaluate the impacts of
your program.
You can set up a measurement program to
provide anecdotal results, or you can fol-
low statistical sampling procedures to
yield statistically valid results. If you are
trying to gather general information as to
whether you are meeting your goals,
anecdotal information is probably suffi-
cient. If you are trying to scale results to
a larger population and make policy deci-
sions, you may need statistically valid
results. In either case, see EPA's Guide for
Measuring Compliance Assistance
Outcomes.
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1
Site visits
Workshops/Training
Compliance Guides
Note: EPA does not recommend using mail-back
cards as a follow-up, since the response rate from
these cards has been very poor (approximately two
percent).
Method
1 . Revisits
2. Telephone survey
1 . Pre-/Post-tests
2a. Telephone survey if <50
2b. Mail survey if >50
If distributed at a workshop:
1 . Telephone survey if <50
2. Mail survey is > 50
If mailed: Mail survey
If posted to the Internet: Count downloads
"Whenever possible, we recommend working with local trade associations to both deliver the
complicance assistance and conduct the follow-up activities.
Several states have developed self-certifi-
cation programs that allow facilities to
certify that they comply with environmen-
tal regulations. This approach can save
money by reducing compliance inspection
costs. Instead of targeting the full universe
of auto recycling facilities for inspection,
you can target the nonparticipants along
with a small subset of participants.
Some nongovernmental agencies are
developing programs that provide incen-
tives for recyclers to participate in a self-
certification program. For example.
Sustainable Conservation in California
works with charities to establish reduced
rates for vehicles purchased by auto recy-
clers who certify they comply with envi-
ronmental regulations.
In general, self-certification programs
include the following:
Outreach materials such as printed
materials and videos.
A self-certification checklist or test
that the facilities complete to certify
compliance. States have administered
these checklists or tests in different
ways. For example, some states have
recyclers complete mailed checklists,
and require that photos be included to
document and verify compliance.
Other states have administered tests
after workshops.
The option for a facility to either certi-
fy compliance or to submit a plan as
to how and when they will achieve
-------
compliance. Some states (e.g.. New
Hampshire) also have given facilities
the option of developing a plan to get
out of the business if they will not be
able to achieve compliance.
A procedure to verify a facility's self-
certification.
A procedure to identify facilities that
do not participate in the self-certifica-
tion program. These facilities are the
target population for compliance and
enforcement inspections.
Two concerns have been raised regarding
self-certification programs. The first con-
cern is how to verify the certification.
Some states have conducted random
inspections of a subset of participants in
the program. Another approach is to have
a third-party certification program, where
an independent party certifies for the facil-
ity. For example, Wisconsin has imple-
mented a self-certification program for
storm water compliance that requires
facilities to pay $1,000 annually; this cov-
ers the cost of an independent auditor to
certify facility compliance. One concern
with this approach is that facilities may be
resistant to incurring this cost. Regardless
of your approach, you should consider
how you will verify the certification, and
ensure that the participants are aware of
this at the beginning of the program.
The second concern is the statutory
authority to enforce certification programs.
In many cases, states don't have the
authority to enforce against the certifica-
tion. While they can enforce against the
specific regulations covered by the certifi-
cation (e.g., storm water regulations, haz-
ardous waste regulations), they may not
be able to enforce the actual certification
itself. Massachusetts recently adopted a
regulation that requires businesses to con-
form to the self-certification requirements
in the Massachusetts Environmental
Results Program (ERP). This regulation
provides the authority to enforce self-certi-
fication programs. States without such
authority may have difficulty enforcing
self-certification programs.
of
of Florida's
Program
Between 1996 and 2001, Florida officials
conducted hazardous waste inspections at
37 auto recyclers in Orange County,
Florida. These inspections indicated that
only eight percent of the auto recyclers
complied with rules governing the han-
dling of hazardous wastes. These recy-
clers had the potential to contaminate the
ground water used by many people for
drinking water. Therefore, Orange County
and the State of Florida initiated actions to
identify auto recyclers, develop a baseline
of environmental performance, and imple-
ment a compliance assistance pilot pro-
gram for auto recyclers in Orange County.
Identifying Auto
Recyclers
Personnel in various Florida Department of
Environmental Protection (DEP) programs
independently conducted the 37 compli-
1 5
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ance inspections at
auto recyclers in
Orange County. As a
result, it was difficult
to draw a comprehen-
sive picture of the
environmental prob-
lems at auto recy-
clers. To address this
issue. Orange County formed a problem-
solving team - the Scrappers - to investi-
gate auto recyclers. They undertook a
series of coordinated inspections to define
the problems at the 21 auto recyclers in
East Orange County. Each yard received
an initial compliance inspection and a fol-
low-up visit. Using the information collect-
ed during the compliance inspections, the
Scrappers divided the auto recyclers into
three groups: the "big guys," the "better
guys," and the "bad guys."
Twenty percent of the auto recyclers in
East Orange County are "big guys." They
are well-organized and corporately owned
operations with computerized inventory
and more than five employees. They also
belong to the Florida Automobile
Dismantlers' and Recyclers Association
(FADRA), responded well to compliance
assistance, and corrected all violations
after the initial compliance inspection.
The "better guys" comprise 47 percent
of the auto recyclers in East Orange
County. They are small facilities with
little to no automation and less than five
employees. They corrected some of the
violations after the initial compliance
inspection, and are in the process of
correcting other violations.
Thirty-three percent of the auto recyclers
in East Orange County are classified
as "bad guys." All had less than five
employees with no computerized invento-
ry. They were issued over half of the vio-
lations from the initial compliance inspec-
tions of all of the auto salvage yards in
East Orange County. They were the least
likely to respond to compliance assis-
tance, correcting only 22 percent of the
worst violations.
Because identifying auto recyclers and
their environmental concerns is labor-
intensive, the Scrappers looked for differ-
ent ways to locate auto recyclers in West
Orange County and identify potential
areas of concern. Using aerial photo-
graphs taken by an amateur pilots' organi-
zation, they identified auto recyclers and
determined up front which environmental
programs needed to inspect those recy-
clers. The amateur pilots donated their
time and their aircraft, and the DEP paid
the cost of the fuel for the aircraft.
Developing a Baseline
of Performance
Using the results of their 21 compliance
inspections in East Orange County, the
Scrappers developed the following sum-
mary baseline data for auto recyclers:
Sixty-six percent could not document
freon recovery;
Sixty percent could not document
antifreeze recovery;
Sixty percent could not document bat-
tery disposal;
Fifty-three percent could not document
proper disposal of used oil filters;
Fifty-three percent could not document
proper disposal of waste tires;
Page 16
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Thirty percent did not determine
whether suspect liquids are hazardous
waste;
Forty-three percent had releases of
used oil; and
Twenty-five percent stored waste
within 200 feet of a wetland.
State officials used this information to tai-
lor assistance that offered the best oppor-
tunity for these facilities to comply with
environmental requirements.
Green Yards Compliance
Assistance Pilot Program
The DEP's Waste Management Division
used the baseline information gathered by
the Scrappers to justify a request for state
funds to address environmental issues at
auto recyclers. Funds received by the
Waste Management Division were given
to DEP's Central District to design and
implement a self- certification pilot pro-
gram for auto recyclers in Orange County.
The Central District worked closely with
FADRA in designing the pilot program.
As part of the pilot program, auto recy-
cler operators will be able to attend a
workshop where they will receive a do-it-
yourself compliance workbook and train-
ing in National Pollutant Discharge
Elimination System
(NPDES) general per-
mit requirements,
including Best
Management
Practices (BMP).
Operators who
attend the workshop
will receive follow-up
on-site compliance assistance from
FADRA. Those who submit and pass the
self-tests in the workbooks will be self-
certified as "Green Yards." DEP will con-
duct random inspections at the "Green
Yards" to verify compliance with environ-
mental requirements.
Operators who do not submit the self-test
will not be certified as "Green Yards."
They will continue to be subject to com-
pliance inspections and enforcement
actions, if appropriate, by several local
and state agencies, and by EPA. If the
self-certification pilot program is success-
ful, the Green Yards program may become
a state-wide program.
For Additional Information
For additional information, contact:
Lu Burson, Department of Environmental
Protection Central District (phone num-
ber: 407-893-3323; e-mail address:
lu.burson@dep.state.fl.us).
Case Study of New
York's Program
The New York State Department of
Environmental Conservation (DEC) has
operated two auto recycler initiatives. In
late 1997-98, the DEC conducted outreach
on pollution prevention and compliance
assistance by developing an auto recy-
clers compliance checklist and by holding
nine workshops.
In 2001-2002, the Department began the
second auto recyclers initiative by devel-
oping and implementing a coordinated out-
reach and enforcement initiative. As a part
of this program, the Commissioner of the
Department of Environmental Conservation
Page 17
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(DEC) announced the initia-
tive, and a task force was
formed. Neither of these
elements were a part of the
1997 initiative.
The 2002 initiative compris-
es the following compo-
nents: facility identification and listing,
education and outreach, inspection and
enforcement, and regulatory enhancement.
Facility Identification
and Listing
Facilities were first identified through the
database maintained by the Department of
Motor Vehicles. The DEC then added known
but unregistered facilities to the same data
set and have been continually refining and
updating the data. To date, there are 1,215
facilities in the DEC database.
A letter was then sent to over 1,200 regis-
tered facilities located or doing business in
New York State explaining the initiative
and the reasons such an initiative was
necessary.
Education and Outreach
To aid the facilities with environmental
compliance, part of the initiative included
education and outreach to help owners
learn which laws and regulations apply to
the automobile recycling industry. The DEC
conducted workshops throughout the
Spring of 2002 in nine locations around
the state. Based on feedback from those
workshops a guidance document was
published to address questions such as
how hazardous materials must be handled
and what disposal options are available for
waste tires generated at the site. The
manual covers over 20 typical wastes.
Inspection and
Enforcement
Inspection checklists helped inspectors
and law enforcement staff conduct inspec-
tions during the Summer and Fall of 2002.
Over 40 facilities were inspected during
this time.
The initiative also reached municipal offi-
cials by including them in some of the
inspections and inviting them to the work-
shops. The New York State Department of
State has also produced a model ordi-
nance that can be adopted by the local
governments to help them deal with facili-
ties at a local level.
Regulatory Enhancement
DEC is exploring the development of a reg-
istration and self-certification program for
this sector similar to the Environmental
Results Programs that have been imple-
mented in several states.
Future Plans
Currently, the DEC is assessing the first
year of the initiative to determine what
future actions are appropriate. Follow up
workshops are being planned and current
enforcement cases will be pursued. DEC
staff will also continue an active inspec-
tion program.
For Additional Information
For additional information contact:
Dennis Lucia by e-mail at
djlucia@gw.dec.state.ny.us or Ian Beilby
by e-mail at iabeilby@gw.dec.state.ny.us
Page 18
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Case Study of Ohio's
Program
Between 2001 and 2002 the Small
Business Assistance Office (SBAO) of the
Ohio EPA used a multifaceted approach to
assist auto recyclers in complying with
applicable environmental regulations. This
project was initiated in response to com-
plaint investigations related to fluid man-
agement and stormwater contamination.
The investigations revealed compliance
issues involving fluid recovery, leak man-
agement, poor waste and parts storage
practices, and stormwater runoff. In
response, the SBAO launched a program
which included identification of auto recy-
clers, development of compliance assis-
tance tools, and outreach to local trade
associations.
Identification of the Auto
Recycler Universe
The SBAO used both internal sources
(such as permit databases and waste noti-
fier databases) as well as licensing infor-
mation obtained from the Bureau of Motor
Vehicles to identify all auto recyclers in the
state of Ohio. Of the 771 identified, 70
were in the targeted area of Central Ohio.
Development of
Compliance Assistance
Tools
Once the target population was identified,
SBAO developed a multimedia compliance
guidebook for auto recyclers. This tool
included an overview of regulatory require-
ments, self-audit checklists, and a list of
vendors and recyclers. SBAO then distrib-
uted the Guide to all 771 Ohio auto recy-
clers as well as other state agencies,
health departments, and municipal offices.
Auto Recycler Outreach
SBAO also met with the state auto recy-
cler trade association to discuss the appli-
cable environmental regulations as well as
available resources and possible areas of
collaboration. During this meeting the
trade association provided SBAO with the
following insight:
Many auto recyclers, especially small
yards, are still not aware of the regula-
tions.
Although trade association members
should be more aware of the regula-
tions, membership comprises only 20%
of the industry.
Even when the recycler is aware of the
regulations, compliance is not always a
business priority.
Some recyclers feel that compliance
information is difficult to obtain and
understand.
The association also suggested a combined
approach of outreach, inspections, and
enforcement to initiate the necessary
change in the industry. SBAO and the asso-
ciation worked together to develop a list of
ways to most successfully reach the com-
munity of auto recyclers. This list included:
Developing a compliance presentation
addressing fluid/waste management
and stormwater for the annual trade
association meeting;
Submitting compliance articles to the
trade magazine;
Performing site visits at recycling yards
to learn more about the industry;
Developing compliance assistance
workshops; and
Developing an educational video.
Page 19
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r VWhHJ* S.H«rft:p
Resulting Additional
Compliance Assistance
Tools
Compliance Workshops
SBAO has developed compliance work-
shops that focus generally on hazardous
waste and used oil management. These
workshops are 2-3 hours in length and are
currently conducted for all small business-
es. Although these workshops are not cur-
rently focused specifically on auto recy-
clers, SBAO hopes to eventually tailor
them to that audience.
Educational Video
SBAO has also developed an educational
video outlining Best Management Practices
(BMPs) for auto recyclers. The video,
which took six months to develop, was
produced through the cooperation of four
"model" salvage yards. The project was
funded through a grant of $11,700. The
video discusses proper fluid and waste
management practices, options for recy-
cling, benefits of recycling, and low-cost,
simple solutions for achieving compliance.
The video was shown at the Ohio Auto &
Truck Recyclers Association annual meet-
ing in February 2003. In addition, the SBAO
intends to directly distribute the final video
to all salvage yards in Ohio as well as to
trade associations, public libraries, and
other agencies. SBAO also has plans to air
the video on a public access station.
Auto Recyclers Industry
Inspection Initiative
As a separate effort from that of SBAO,
the Division of Hazardous Waste
Management (DHWM) is planning to
inspect the 70 auto recyclers in Central
Ohio between July 2002 and July 2003.
The initiative may later be expanded to
other district offices, eventually resulting
in statewide participation.
The focus of these inspections will be on
waste fluid management but the inspec-
tors will also be trained in stormwater and
tire management.
Project Goal
DHWM is planning to perform these
inspections annually, therefore they will
use the first round of visits to determine
an industry baseline, to provide technical
assistance, and to distribute the SBAO
compliance assistance guidebook. By per-
forming routine inspections, DHWM hopes
to get companies into the practice of prop-
er fluid management and general environ-
mental compliance. Although the main
goal of this program is to provide compli-
ance assistance, it is not designed to pro-
vide amnesty; violation letters and
enforcement activities will be possible.
Overall State Objective
It is the goal of the Ohio EPA to success-
fully reach and influence change within the
auto recycling industry through the imple-
mentation of a variety of approaches rang-
ing from sector specific compliance assis-
tance tools (such as workshops, guide-
books, and videos) to one-on-one assis-
tance through inspections or site visits. If
this approach is successful, SBAO may
use it as a template for other small busi-
ness sectors in the future.
For Additional Information
For additional information contact:
Laurie Stevenson, Ohio EPA Small
Business Assistance Office at (614) 728-
8576; or by e-mail at
laurie.stevenson@epa.state.oh.us.
Page 2O
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Enwironmental Compliance for Automotiwe Recfders
Environmental Compliance for Automotive Recyclers Web site
(www.ECARcenter.org) contains a state-by-state breakdown of the requirements that
apply specifically to industry activities.
The Eiwirenmenta! Compliance
This Clearinghouse not only provides links to comprehensive compliance assistance
materials, but also contains features that allow users to interact with EPA and each
other. The Clearinghouse can be accessed at www.epa.gov/clearinghouse.
Compendium of Compliance Assistance Tools for the Automotiwe Recycling
Industry
EPA and its partners have compiled a list of compliance assistance tools for the auto
recycling industry. This information can be accessed at
www.epa.gov/compliance/resources/publications/assistance/sectors/autopub.html.
vvEPA
United States
Environmental Protection Agency
Office of Enforcement and Compliance Assurance
Washington, DC 20460
EPA305-B-03-001
July
www.epa.gov
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