CPM Waterloo Fined $12,500 for Shipping Toxic Waste Without Federal ID
EPA inspectors found unlabeled hazardous waste containers, missing manifests, and four illegal offsite shipments at the Iowa manufacturing facility formerly known as Roskamp Manufacturing.
In July 2024, EPA inspectors discovered that CPM Waterloo had shipped hazardous waste four times without obtaining a federal EPA identification number. The facility also failed to properly label hazardous waste containers with required warnings, omitted accumulation dates on waste drums, and used bills of lading instead of legally required manifests for toxic shipments. The EPA settled the case for $12,500 without requiring the company to admit wrongdoing.
When toxic waste leaves a facility without proper tracking, accountability vanishes into thin air.
The Allegations: A Breakdown
| 01 | CPM Waterloo shipped hazardous waste offsite four times without ever obtaining an EPA identification number from the Administrator, violating federal law that prohibits generators from transporting hazardous waste without this required authorization. | high |
| 02 | Inspectors observed three hazardous waste storage containers that lacked the words ‘Hazardous Waste’ on their labels, concealing the dangerous nature of their contents from workers and emergency responders. | high |
| 03 | The facility failed to mark three hazardous waste containers with any indication of the hazards inside, such as ignitable, corrosive, reactive, or toxic characteristics, leaving personnel unaware of the specific dangers they faced. | high |
| 04 | A full 55-gallon container of waste paint material sat in the paint operations area without an accumulation start date, preventing tracking of how long this hazardous waste had been stored at the facility. The company had filled this container approximately two weeks before the inspection. | medium |
| 05 | CPM Waterloo used bills of lading for four offsite hazardous waste shipments instead of preparing the federally mandated Manifests, eliminating the paper trail that tracks where toxic waste ends up. | high |
| 06 | Inspectors identified two used oil containers that the facility had failed to label with the words ‘Used Oil’ as required by federal regulations, obscuring their contents from workers and first responders. | medium |
| 07 | The company neither admitted nor denied the factual allegations but agreed to pay the penalty and certified that violations had been corrected, allowing the settlement to proceed without any acknowledgment of wrongdoing. | medium |
| 08 | EPA classified CPM Waterloo as a small quantity generator yet the facility operated for an unknown period without the basic federal identification number required before any hazardous waste can legally leave the property. | high |
| 01 | Federal regulation 40 C.F.R. Section 262.16(b)(6)(i)(A) requires small quantity generators to mark containers with the words ‘Hazardous Waste,’ but CPM Waterloo left three containers unmarked during the inspection period. | high |
| 02 | Regulation 40 C.F.R. Section 262.16(b)(6)(i)(B) mandates that containers display an indication of hazards such as ignitable, corrosive, reactive, or toxic characteristics, yet the facility provided no such labeling on three storage containers. | high |
| 03 | Section 262.16(b)(6)(i)(C) requires generators to mark containers with the date accumulation begins, clearly visible for inspection, but the 55-gallon paint waste drum carried no date despite being filled two weeks earlier. | medium |
| 04 | Under 40 C.F.R. Section 262.18(a), generators cannot treat, store, dispose of, transport, or offer for transportation any hazardous waste without an EPA identification number, yet CPM Waterloo made four offsite shipments without this authorization. | high |
| 05 | Regulation 40 C.F.R. Section 262.20(a) requires generators to prepare a Manifest when transporting hazardous waste offsite for treatment, storage, or disposal, but the facility substituted bills of lading for all four shipments. | high |
| 06 | Federal rule 40 C.F.R. Section 279.22(c)(1) requires containers storing used oil at generator facilities to be labeled or marked clearly with the words ‘Used Oil,’ but two containers lacked any such marking. | medium |
| 07 | The EPA used its Expedited Settlement Agreement authority under 40 C.F.R. Section 22.13(b) to resolve the matter quickly, allowing the company to avoid formal admission of the violations described in the inspection report. | medium |
| 08 | The State of Iowa received notice of the violations as required by RCRA Section 3008(a)(2), but the settlement occurred at the federal level without requiring state-level remediation or oversight beyond the initial notification. | low |
| 01 | CPM Waterloo paid a civil penalty of $12,500 to resolve six categories of hazardous waste violations, an amount the EPA determined was in the public interest after considering factors specified in RCRA Section 3008. | high |
| 02 | The settlement agreement explicitly states that the company neither admits nor denies the factual allegations, allowing CPM Waterloo to pay the fine without acknowledging it broke federal environmental laws. | high |
| 03 | Payment of the civil penalty resolves only the company’s liability for federal civil penalties for these specific violations, while the EPA reserves the right to take enforcement action for any other past, present, or future violations. | medium |
| 04 | The company waived its right to have the matter resolved in federal court, including any right to a jury trial, and waived any right to challenge the lawfulness of the final order. | medium |
| 05 | CPM Waterloo certified that the alleged violations have been corrected and that it is presently in compliance with all RCRA requirements, but the settlement contains no independent verification mechanism or ongoing monitoring requirements. | medium |
| 06 | The penalty cannot be deducted for purposes of federal, state, or local taxes, ensuring that taxpayers do not subsidize the cost of the company’s environmental violations. | low |
| 07 | The Final Order became effective on the date filed with the Regional Hearing Clerk on September 22, 2025, with payment due within thirty days, creating a rapid timeline from inspection to resolution. | low |
| 01 | Unlabeled hazardous waste containers prevent workers from knowing whether they are handling ignitable, corrosive, reactive, or toxic materials, eliminating their ability to take appropriate safety precautions. | high |
| 02 | Emergency responders arriving at the facility during a spill, fire, or accident would have no way to identify the hazards present in three storage containers, delaying critical decisions about containment and evacuation. | high |
| 03 | The absence of accumulation start dates on hazardous waste drums makes it impossible to verify whether the facility exceeded legal storage time limits, potentially exposing workers to containers that deteriorated over extended periods. | medium |
| 04 | By shipping hazardous waste without manifests or an EPA identification number, CPM Waterloo created gaps in the tracking system that could allow toxic materials to reach unpermitted landfills or disposal sites where they might contaminate soil and groundwater. | high |
| 05 | Two unmarked used oil containers concealed their contents from facility personnel, preventing proper handling and creating risks of skin contact, inhalation exposure, or improper disposal that could release petroleum contaminants. | medium |
| 06 | The facility’s location in Waterloo, Iowa means that any releases or improper disposal could affect local water supplies, agricultural land, and residential areas in a community already burdened by industrial operations. | medium |
| 01 | The $12,500 penalty represents a fraction of the potential cleanup costs if improperly tracked hazardous waste had contaminated soil, groundwater, or surrounding properties, shifting future liability onto local taxpayers. | high |
| 02 | By operating without an EPA identification number and using bills of lading instead of manifests, CPM Waterloo avoided the administrative costs and tracking obligations that law-abiding competitors must shoulder, gaining an unfair cost advantage. | high |
| 03 | Property values near industrial facilities can decline when environmental violations come to light, potentially harming homeowners and small businesses in the Waterloo area who had no role in the company’s regulatory failures. | medium |
| 04 | If hazardous waste from the four undocumented shipments ended up in unpermitted facilities or caused environmental damage, cleanup costs would fall on EPA Superfund resources, state cleanup funds, or local governments rather than the company. | high |
| 05 | The expedited settlement process saved CPM Waterloo significant legal fees and allowed the company to resolve the matter in less than 14 months from inspection to final order, minimizing financial disruption to operations. | medium |
| 06 | Future environmental monitoring or health assessments in the Waterloo area resulting from this incident would require public funding, as the settlement includes no provisions for company-funded community health studies or water testing. | medium |
| 01 | CPM Waterloo’s pattern of violations shows that basic federal hazardous waste protections failed at every level: labeling, dating, tracking, and authorization. The $12,500 penalty suggests that compliance shortcuts cost less than compliance itself. | high |
| 02 | The expedited settlement structure allowed the company to avoid admitting wrongdoing, pay a modest fine, certify its own corrective actions, and walk away without independent verification or ongoing oversight. | high |
| 03 | Four shipments of hazardous waste left this facility without the federal tracking system designed to protect communities, and the settlement provides no information about where those materials ended up or what environmental damage may have occurred. | high |
| 04 | When manufacturers can ship toxic waste without authorization, skip manifest requirements, and leave containers unlabeled for $12,500, the message to other facilities is clear: regulatory violations are a manageable business expense. | high |
| 05 | The settlement protects only against future civil penalties for these specific violations while explicitly reserving EPA’s right to pursue other violations, suggesting the agency views this as one incident in a broader pattern that may require continued attention. | medium |
Timeline of Events
Direct Quotes from the Legal Record
“During the RCRA inspection, the inspector observed three hazardous waste storage containers that the Facility had failed to properly label with the words, ‘Hazardous Waste.'”
💡 This concealed the dangerous nature of the contents from workers and emergency responders who might encounter these containers.
“During the RCRA inspection, the inspector observed three hazardous waste storage containers that the Facility had failed to provide labeling indicating the hazards of their contents.”
💡 Without knowing whether materials are ignitable, corrosive, reactive, or toxic, personnel cannot take appropriate safety precautions.
“During the RCRA inspection, the inspector observed a full 55-gallon container of waste paint related material in the paint operations area that the Facility had failed to label with an accumulation start date. The Facility had filled this container approximately two weeks prior to the RCRA inspection.”
💡 Accumulation dates track how long hazardous waste remains on site and help prevent containers from deteriorating beyond safe storage limits.
“According to the RCRA inspection report, the inspector documented that the Facility was a small quantity generator, and that the Facility failed to obtain an EPA identification number from the Administrator prior to the four offsite shipments of hazardous waste.”
💡 Federal law requires this identification number before any hazardous waste can legally leave the facility, ensuring proper tracking and accountability.
“During the RCRA inspection, the inspector documented that the Facility used bills of lading for four offsite hazardous waste shipments and therefore failed to prepare the required Manifests for these four offsite shipments of hazardous waste.”
💡 Manifests create a paper trail tracking where toxic waste ends up, while bills of lading eliminate accountability for final disposal.
“During the RCRA inspection, the inspector identified two used oil containers that the Facility had failed to label or mark with the words ‘Used Oil.'”
💡 Unmarked containers conceal their contents from workers and first responders, creating exposure risks during handling or emergencies.
“After considering these factors, EPA has determined, and Respondent agrees that settlement of this matter for a civil penalty of twelve thousand five hundred dollars ($12,500.00) is in the public interest.”
💡 This penalty amount for six categories of violations suggests that the financial consequences of noncompliance are minimal compared to compliance costs.
“In signing this Agreement, Respondent: (a) admits that Respondent is subject to RCRA and its implementing regulations; (b) admits that EPA has jurisdiction over Respondent and Respondent’s conduct as alleged herein, (c) neither admits nor denies the factual allegations contained herein; (d) consents to the assessment of this penalty.”
💡 The company resolved the case without acknowledging it violated federal environmental laws, preserving its public reputation.
“By its signature below Respondent certifies, subject to civil and criminal penalties for making a false submission to the United States Government, that: (a) the alleged violations have been corrected, and (b) it is presently in compliance with all requirements of RCRA, 42 U.S.C. § 6901 et. seq., its implementing regulations, and any permit issued pursuant to RCRA.”
💡 The company certified its own corrective actions without independent verification or ongoing monitoring requirements in the settlement.
“Full payment of the civil penalty shall only resolve Respondent’s liability for federal civil penalties for the violations alleged herein. The EPA reserves the right to take any enforcement action with respect to any other past, present, or future violations of RCRA or any other applicable law.”
💡 The settlement covers only these specific violations, suggesting EPA anticipates the need for continued oversight of this facility.
“By signing this Agreement, Respondent waives any rights or defenses that Respondent has or may have for this matter to be resolved in federal court, including, but not limited to any right to a jury trial, and waives any right to challenge the lawfulness of the final order accompanying the Expedited Settlement Agreement.”
💡 The expedited settlement process eliminated the company’s ability to contest the violations in court or before a jury.
“The penalty specified herein shall represent civil penalties assessed by EPA and shall not be deductible for purposes of Federal, State and local taxes.”
💡 This provision ensures taxpayers do not subsidize the cost of environmental violations through corporate tax deductions.
“40 C.F.R. § 262.18(a) requires that a generator must not treat, store, dispose of, transport, or offer for transportation, hazardous waste without having received an EPA identification number from the Administrator.”
💡 This fundamental requirement forms the foundation of federal hazardous waste tracking, yet CPM Waterloo made four shipments without it.
“40 C.F.R. § 262.20(a) requires a generator that transports or offers for transport a hazardous waste for offsite treatment, storage, or disposal, or a treatment, storage, or disposal facility that offers for transport a rejected hazardous waste load, to prepare a Manifest.”
💡 Manifests track hazardous waste from generation to final disposal, but CPM Waterloo substituted bills of lading that provide no such accountability.
“The EPA has provided the State of Iowa with notice of the referenced violations of Subtitle C of RCRA as required by Section 3008(a)(2).”
💡 Federal law requires state notification of hazardous waste violations, but the settlement occurred at the federal level without additional state-level remediation requirements.
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