Press Release
FOR IMMEDIATE RELEASE
Date: 08/21/2009

Contact person(s):

Media Coordinator, Terry Menshek - (707) 565-3099 Media Spokesperson, Deputy District Attorney Tashawn Sanders

Santa Rosa, Sonoma County, California

$2 Million Settlement in Environmental
Protection Action Against U-Haul Corporation of California

Sonoma County District Attorney Stephan Passalacqua announced today a $2 million settlement of an environmental protection action, prosecuted in coordination with Attorney General Edmund G. Brown Jr. and seven other District Attorneys against U-Haul Company of California. The civil enforcement settlement will require U-Haul to pay $1 Million in penalties, $1 Million in costs, and comply with emergency planning and hazardous waste storage, transportation and employee training laws at its 179 facilities within the state.

“Companies that handle hazardous materials have a legal duty to train employees on safety measures and to plan for the possibility of an emergency at their facilities,” said Sonoma County District Attorney Stephan. Passalacqua. “U-Haul repeatedly failed to implement an emergency response plan after receiving numerous notices. Their failure contributed to an explosion in their Santa Rosa plant which could have potentially resulted in a catastrophe, given that their facility was adjacent to Highway 101. This action shows U-Haul, and other businesses, that prosecutors will act to assure that proper planning occurs to reduce the risk of injury both to the public and to emergency first responders.”

The statewide enforcement action was initiated following an explosion at 2:30 p.m. on November 16, 2004, which resulted in a two-alarm fire at U-Haul’s Santa Rosa facility. The incident resulted in burns to the hands and face of an employee who was transported for treatment at Santa Rosa Memorial Hospital. The building incurred significant damage. The fire posed a threat of more serious consequences as it was in close proximity to a large commercial propane storage tank and a neighboring compressed gas facility and Highway 101 is located within a quarter mile of the scene.

The emergency response team that arrived on the scene was hampered in assessing the situation due to the lack of, and misleading information about, stored hazardous materials at the site. The facility’s staff was unprepared to assist firefighters at the scene and the improper storage of flammable waste liquids also exacerbated the situation.

A joint investigative report was presented to the District Attorney by the Sonoma County Sheriff’s Office and the Department of Emergency Services. The Sonoma County District Attorney’s Office then contacted prosecutors throughout the state resulting in the Attorney General and seven other District Attorneys launching a two-year statewide investigation into U-Haul’s handling of hazardous materials and training of its employees. The investigation revealed numerous violations at virtually all of U-Haul’s 179 California facilities.

In addition to the Sonoma County District Attorney, the joint prosecution team included the Attorney General and the District Attorneys of Alameda, Sacramento, San Joaquin, Solano, San Francisco, Santa Clara and Riverside. The action was filed July 27, 2006, in Alameda County Superior Court , case number RG06-281117. The Hon. Robert Freedman, Judge of the Superior Court, presided over the lengthy litigation and approved the terms of the final settlement. Deputy District Attorney Jeffrey W. Holtzman was assigned to handle the case for the Sonoma County District Attorney’s Office.

Today’s agreement resolves the lawsuit and requires U-Haul to:
Complete and maintain statutorily mandated hazardous material business plans and emergency response plans for regulated facilities;
Train its employees how to properly handle hazardous materials;
Retain an environmental coordinator who will oversee, monitor and submit annual reports on the company’s compliance efforts;
Inspect hazardous waste storage areas at regulated facilities on a weekly basis; and;
Properly transport hazardous waste; and
Pay $1 million in penalties and $1 million in costs.