How CPM Waterloo’s Safety Failures Exposed the Cracks in Hazardous Waste Enforcement

CPM Waterloo Fined $12,500 for Shipping Toxic Waste Without Federal ID
Corporate Misconduct Accountability Project

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.

HIGH SEVERITY
TL;DR

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.

$12,500
Total penalty for multiple hazardous waste violations
4
Illegal offsite hazardous waste shipments without EPA ID number
3
Unlabeled hazardous waste storage containers
2
Used oil containers missing required labels

The Allegations: A Breakdown

⚠️
Core Allegations
What they did · 8 points
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
📋
Regulatory Failures
How the rules were broken · 8 points
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
⚖️
Corporate Accountability Failures
How consequences fell short · 7 points
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
🏥
Public Health and Safety
Risks to workers and communities · 6 points
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
💰
Economic Fallout
Who bears the real costs · 6 points
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
🎯
The Bottom Line
What this case reveals · 5 points
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

July 10-11, 2024
EPA Region 7 conducts RCRA compliance inspection at CPM Waterloo facility at 4050 Leversee in Waterloo, Iowa
July 2024
Inspectors document that facility made four offsite hazardous waste shipments without EPA identification number and without required manifests
July 2024
Inspector observes three unlabeled hazardous waste storage containers and two unlabeled used oil containers
July 2024
Inspector finds 55-gallon drum of waste paint material filled approximately two weeks prior with no accumulation start date
2024
EPA provides State of Iowa with notice of RCRA Subtitle C violations as required by Section 3008(a)(2)
September 4, 2025
Sean M. Callison, Secretary and General Counsel for CPM Waterloo, signs Expedited Settlement Agreement
September 12, 2025
David Cozad, Director of EPA Enforcement and Compliance Assurance Division, approves settlement
September 18, 2025
Christopher Muehlberger, EPA Office of Regional Counsel attorney, signs settlement approval
September 22, 2025
Regional Judicial Officer Karina Borromeo signs Final Order, effective date when filed with Regional Hearing Clerk at 6:45 AM
October 2025
CPM Waterloo payment of $12,500 civil penalty due within 30 days of Final Order effective date

Direct Quotes from the Legal Record

QUOTE 1 Missing Hazardous Waste Labels allegations
“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.

QUOTE 2 No Hazard Warnings allegations
“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.

QUOTE 3 Missing Accumulation Date allegations
“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.

QUOTE 4 Operating Without EPA ID Number allegations
“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.

QUOTE 5 Skipping Required Manifests allegations
“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.

QUOTE 6 Unlabeled Used Oil Containers allegations
“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.

QUOTE 7 Settlement Amount accountability
“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.

QUOTE 8 No Admission of Wrongdoing accountability
“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.

QUOTE 9 Self-Certified Compliance accountability
“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.

QUOTE 10 Limited Scope of Resolution accountability
“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.

QUOTE 11 Waiver of Court Rights accountability
“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.

QUOTE 12 No Tax Deduction accountability
“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.

QUOTE 13 Generator Must Have EPA ID Number regulatory
“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.

QUOTE 14 Manifest Requirement regulatory
“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.

QUOTE 15 State Notification regulatory
“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.

Frequently Asked Questions

What is an EPA identification number and why does it matter?
An EPA identification number is a unique identifier that every hazardous waste generator must obtain before transporting, treating, storing, or disposing of hazardous waste. It allows EPA to track where toxic materials originate and where they end up. CPM Waterloo shipped hazardous waste four times without this required number, eliminating federal oversight of where those materials went.
What is a hazardous waste manifest?
A manifest is a multi-part tracking document that accompanies hazardous waste from the generator through transportation to final treatment or disposal. It creates a paper trail holding each party accountable. CPM Waterloo used bills of lading instead, which are simple shipping receipts that do not provide the same tracking and do not require the same regulatory oversight.
Why is it dangerous to leave hazardous waste containers unlabeled?
Unlabeled containers prevent workers from knowing what dangers they face, whether materials are ignitable, corrosive, reactive, or toxic. During emergencies like spills or fires, first responders need immediate information about hazards to make critical decisions about containment, evacuation, and protective equipment. Three containers at CPM Waterloo lacked these essential warnings.
What does it mean that CPM Waterloo neither admitted nor denied the allegations?
In the expedited settlement, the company agreed to pay the penalty but did not acknowledge that it actually violated the law. This allows the company to resolve the case without a formal admission of wrongdoing that could be used in other legal proceedings or damage its reputation with customers and investors.
Is a $12,500 penalty appropriate for these violations?
The EPA determined this amount was in the public interest after considering factors specified in RCRA Section 3008. However, the penalty covers six categories of violations including four illegal hazardous waste shipments, suggesting that the financial consequences of noncompliance are minimal compared to the administrative costs and tracking obligations that law-abiding facilities must absorb.
What happened to the four shipments of hazardous waste that left without proper tracking?
The settlement agreement does not disclose where these materials ended up or whether they reached permitted treatment, storage, or disposal facilities. Without manifests or an EPA identification number, there is no federal record of their final destination or whether they caused environmental damage.
Who verified that CPM Waterloo corrected the violations?
The company self-certified that violations had been corrected and that it is presently in compliance with RCRA requirements. The settlement contains no provisions for independent verification, follow-up inspections, or ongoing monitoring by EPA or state regulators.
Could these violations have contaminated local water or soil?
Improperly tracked hazardous waste can end up in unpermitted landfills or disposal sites where it may leach into groundwater or contaminate soil. Without knowing where the four undocumented shipments went, it is impossible to assess whether environmental damage occurred. The settlement includes no environmental assessment or community health monitoring requirements.
What can community members in Waterloo do?
Residents can request inspection reports and enforcement documents from EPA under the Freedom of Information Act. They can contact the Iowa Department of Natural Resources to ask what state-level oversight will occur. Community members can also organize to demand stronger local environmental protections and participate in public comment periods when facilities seek permits or expansions.
Does this settlement prevent EPA from taking future action against CPM Waterloo?
No. The settlement explicitly states that payment resolves only the company’s liability for federal civil penalties for these specific violations. EPA reserves the right to take enforcement action for any other past, present, or future violations of RCRA or any other applicable law, suggesting the agency views continued oversight as necessary.
Post ID: 7355  ·  Slug: cpm-waterloo-hazardous-waste-epa-settlement-failure  ·  Original: 2025-10-16  ·  Rebuilt: 2026-03-20

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