Safeway pays for clean-air violations
The grocer took its time fixing refrigerant leaks. Its procrastination will cost it $4.7 million in fines and repairs.
The U.S. Environmental Protection Agency and Department of Justice hit large grocery chain Safeway (SWY) with a $600,000 fine and forced it to agree to a nationwide reduction of greenhouse gas emissions from refrigeration equipment at its 659 U.S. stores under terms of a settlement released Wednesday. The federal agencies say the settlement with the retailer is the largest ozone protection case ever reached under the Clean Air Act.
Safeway was targeted by the government for violating clean air laws by not promptly fixing leaks of HCFC-22, a hydrochlorofluorocarbon used in refrigerators that eats away at ozone and contributes to climate change. Safeway didn't have much of a defense, as the government also noted that it failed to keep maintenance records for the faulty refrigerators in question.
Safeway also agreed to reduce its average leak rate from 25% to 18% or less by 2015. That will require the company to invest an estimated $4.1 million in new systems, equipment upgrades and other changes that should prevent the future release of more than 100,000 pounds of the offending refrigerants.
The important part, at least in Safeway's view, is that it doesn't have to admit any responsibility in the matter. Free from the nasty little threat of legal action, the company issued a statement Wednesday saying it shouldn't be scolded for past laziness when it's been so active in making repairs lately. See, they told you they'd get around to it. . . $4.7 million later.
"The allegations in the complaint are dated from 2004 to 2007 and do not reflect a number of improvements Safeway has implemented since that time," the company statement said.
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[BRIEFING.COM] The headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
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