Author: Alex Miller

Jeff Carnahan talks about the value of a proactive insurance archeology strategy for drycleaners and how it can save drycleaners’ money in the cover story of Fabricare Canada’s April 2020 Environmental issue. In the article, Jeff discusses:

1. The common misconception about Commercial General Liability (CGL) policies 
2. The 3-step process of addressing environmental challenges before they break the bank
3. The importance of assembling an experienced team of insurance archeologists and environmental attorneys 
4. And the next steps drycleaners should take when looking for old insurance policies

Read Fabricare Canada’s “Document Archeology to the Rescue”. 

Published: April 13, 2020. Last Updated: May 6, 2020

On March 26th, 2020, the United States Environmental Protection Agency (EPA) released a memo outlining enforcement guidance in response to the COVID-19 pandemic.

In the guidance, the EPA temporarily relaxed their enforcement on noncompliance retroactively beginning on March 13, 2020 citing the need for this in the wake of work shortages, and travel and social distancing guidelines recommended by the Centers for Disease Control and Prevention (CDC).

Read the full memo: COVID-19 Implications for EPA’s Enforcement and Compliance Assurance Program

While this guidance grants flexibility to companies and their emissions and pollution source reduction at this time, it does not serve as a structure for unfettered noncompliance, and reiterates the importance for those polluters to:

1. Act responsibly
2. Identify the specific nature and dates of the noncompliance
3. Identify how COVID-19 was the cause of the noncompliance
4. Return to compliance as soon as possible

HOW THIS TEMPORARY GUIDANCE MIGHT IMPACT YOUR BUSINESS
Each business will need to check with their state’s regulatory agency to figure out how it’ll be regulated at this time. Given the rapidly changing environment, states are taking different response approaches to the pandemic. Below are the current guidances from all 50 states.

OVERVIEW MAP OF STATES AND THEIR RESPONSES TO COVID-19

This map illustrates each state’s response to COVID-19. 

ALABAMA
Environmental Enforcement Status: No change in enforcement
The Alabama Department of Environmental Management (ADEM) has not indicated any changes to their enforcement policies in the wake of COVID-19.

ALASKA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Alaska Department of Environmental Conservation (ADEC) is following the EPA’s guidance until at least June and is asking regulated entities to self-report violations during the COVID-19 pandemic.

ARIZONA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Arizona Department of Environmental Quality (ADEQ) announced that it is aligning with the EPA’s memo, but will be issuing individual guidance to continue facility inspections and permit issuing.

ARKANSAS
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Arkansas Department of Energy and Environment’s Division of Environmental Quality (DEQ) released a similar memo to the EPA’s. Their guidance is retroactive to March 17, 2020.

CALIFORNIA
Environmental Enforcement Status: No change in enforcement
The California Environmental Protection Agency (CalEPA) released a statement that says their enforcement authority remains intact in spite of the EPA memo. CalEPA leadership said to Bloomberg Law, “CalEPA expects compliance with environmental obligations, especially where failure to follow the law creates an imminent threat or risk to public health.”

COLORADO
Environmental Enforcement Status: No change in enforcement
The Colorado Department of Public Health and Environment (CDPHE) does not appear to have a stated position on the EPA’s COVID-19 guidance. Their personnel are working remotely at this time, and appear to be conducting normal enforcement activity.

CONNECTICUT
Environmental Enforcement Status: No change in enforcement
The Connecticut Department of Energy and Environmental Protection has a comprehensive COVID-19 response page on their website. They say they are “striving to continue to carry out (their) mission and provide services while keeping both the public and (their) workforce safe.”

DELAWARE
Environmental Enforcement Status: No change in enforcement
The Delaware Department of Natural Resources and Environmental Control (DNREC) does not appear to have any direct response to the EPA’s guidance. All events have been canceled through May 15, 2020. Their offices remain open, but with limited services, and they are urging all applications to be submitted electronically.

FLORIDA
Environmental Enforcement Status: No change in enforcement
The Florida Department of Environmental Protection (DEP) has not made a public announcement about adhering to the EPA’s COVID-19 guidance. DEP has expanded its telework opportunities for certain employees, and appears to be conducting regular business.

GEORGIA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Georgia Environmental Protection Division (GEPD) is working remotely. According to this March 31, 2020 memo, they are adhering to US EPA guidance in regards to environmental noncompliance.

HAWAII
Environmental Enforcement Status: No change in enforcement
Hawaii’s Office of Environmental Control (OEC) has not announced any changes to its normal enforcement duties.

IDAHO
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Idaho Department of Environmental Quality (DEQ) is limiting routine activities to ensure they are not putting their employees, the public, or the regulated community at risk. However, they say they are making every effort to avoid unnecessarily disrupting regulated facilities while they respond to COVID-19.

ILLINOIS
Environmental Enforcement Status: No change in enforcement
The Illinois Environmental Protection Agency (IEPA) has only shut down their vehicle emissions testing program in response to the COVID-19 Pandemic. They are conducting normal business otherwise.

INDIANA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Indiana Department of Environmental Management (IDEM) is following the EPA guidance on noncompliance. However, IDEM personnel are working remotely, and conducting normal business.

IOWA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Iowa Department of Natural Resources (IDNR) appears to be following the EPA guidance on noncompliance. They say they are issuing this protocol in an effort to balance the need to protect the state’s natural resources against the need to protect people from infection.

KANSAS
Environmental Enforcement Status: No change in enforcement
The Kansas Department of Health and Environment hasn’t made any public changes to their normal enforcement obligations.

KENTUCKY
Environmental Enforcement Status: No change in enforcement
The Kentucky Energy and Environment Cabinet hasn’t made any public changes to their normal enforcement obligations.

LOUISIANA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Louisiana Department of Environmental Quality (LDEQ) has not directly responded to the EPA’s noncompliance guidance, but they are offering some deadline relief to property owners and operators who feel like they can’t uphold their compliance obligations at this time.

MAINE
Environmental Enforcement Status: No change in enforcement
The Maine Department of Environmental Protection (DEP) is maintaining its environmental enforcement obligations. “Protecting public health is the Department’s highest priority, and it is critical that members of the regulated community ensure their air emissions do not exacerbate the public health crisis.”

MARYLAND
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Maryland Department of Environment (MDE) has not announced an official response to the EPA’s COVID-19 noncompliance guidance. The Governor has extended the expiration window for state-issued licenses and permits 30 days following the end of the Emergency Declaration.

MASSACHUSETTS
Environmental Enforcement Status: No change in enforcement
The Massachusetts Department of Environmental Protection (MassDEP) is working remotely. They direct people to contact their office about any environmental issues. They have not given any response to the EPA guidance.

MICHIGAN
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is maintaining their normal environmental regulatory obligations. However, regulated entities who feel like they cannot fulfill their legal obligations can submit requests for regulatory flexibility to this dedicated inbox.

MINNESOTA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Minnesota Pollution Control Agency (MPCA) is maintaining their normal environmental regulatory obligations. However, regulated entities who feel they cannot fulfill their legal obligations can submit requests for regulatory flexibility to this dedicated inbox.

MISSISSIPPI
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Mississippi Department of Environmental Quality (MDEP) has closed all of their offices, and is following the EPA’s guidance for regulatory noncompliance.

MISSOURI
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Missouri Department of Natural Resources (MDNR) is maintaining their normal environmental regulatory obligations. However, regulated entities who feel they cannot fulfill their legal obligations can submit requests for regulatory flexibility to this dedicated inbox.

MONTANA
Environmental Enforcement Status: No change in enforcement
The Montana Department of Environmental Quality (DEP) has not issued a formal policy on compliance enforcement, and has not responded to EPA’s COVID-19 policy.

NEBRASKA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Nebraska Department of Environment and Energy (NDEE) in a March 27th message states they will, “provide as much flexibility and assistance as lawfully possible in these difficult times.”

NEVADA
Environmental Enforcement Status: No change in enforcement
The Nevada Department of Conservation and Natural Resources (NDCNR) does not appear to be following the guidance issued by the EPA.

NEW HAMPSHIRE
Environmental Enforcement Status: No change in enforcement
The New Hampshire Department of Environmental Services (NHDES) has shut down their offices to the public, but appear to be conducting business as usual.

NEW JERSEY
Environmental Enforcement Status: No change in enforcement
The New Jersey Department of Environmental Protection (NJDEP) is working remotely, but appears to be keeping up with all of their enforcement obligations. They don’t appear to be following the EPA guidance.

Update from May 6, 2020: Governor Murphy signed Executive Order No. 136 tolling several timeframes administered by DEP, as well as extending certain filing deadlines. Beginning on March 9, 2020, all timeframes governing public notice, review, or final action on applications for, or renewals of permits, registrations, plans, petitions, licenses, rates, and other approvals under the following statutes administered by DEP are tolled beginning on March 9, 2020:

• N.J.S.A. 13:1D-32 (Construction Permits),
• N.J.S.A. 13:19-8 (Coastal Area Facility Review Act Permits),
• N.J.S.A. 48:3-7 (Utility Property Transactions), and
• N.J.S.A. 58:16A-67 (Stream Cleaning Permit).

NEW MEXICO
Environmental Enforcement Status: No change in enforcement
The New Mexico Environment Department does not appear to be following the EPA guidance, and is conducting their normal regulatory business.

NEW YORK
Environmental Enforcement Status: No change in enforcement
The New York Department of Environmental Conservation (NYDEC) working remotely. Conservation police officers are still working in the field. No confirmation of adherence to US EPA guidance.

NORTH CAROLINA
Environmental Enforcement Status: No change in enforcement
The North Carolina Department of Environmental Quality (NCDEQ) states in a press release that they, “will work with regulated entities to ensure they remain in compliance and in instances of non-compliance, pursue enforcement actions on a case-by-case basis.”

NORTH DAKOTA
Environmental Enforcement Status: No change in enforcement
The North Dakota Department of Environmental Quality (NDDEQ) does not appear to be following the EPA guidance, and is conducting their normal regulatory business.

OHIO
Environmental Enforcement Status: No change in enforcement
The Ohio Environmental Protection Agency (OEPA) is maintaining their normal environmental regulatory obligations. However, regulated entities who feel they cannot fulfill their legal obligations can fill out a flexibility request form.

OKLAHOMA
Environmental Enforcement Status: No change in enforcement
The Oklahoma Department of Environmental Quality (DEQ) appears to be following normal protocol outside of closing their buildings to the public. Although they say they’ll be “flexible as needed” they do not specify adherence to the EPA guidance.

OREGON
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
All applicable Oregon Department of Environmental Quality (DEQ) requirements remain in effect. However, it will exercise reasonable enforcement discretion within its authority when deciding whether to pursue potential violations caused by pandemic-related disruptions.

PENNSYLVANIA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Pennsylvania Department of Environmental Protection (PADEP) temporarily suspended regulatory requirements and permit conditions “where strict compliance will prevent, hinder or delay necessary action in coping with the COVID-19 emergency.”

RHODE ISLAND
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
Requests to the Rhode Island Department of Environmental Management (RIDEM) for regulatory relief will be considered on a case-by-case basis.

SOUTH CAROLINA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The South Carolina Department of Health and Environmental Control (DHEC)  says “regulated entities should remain diligent in taking safe best efforts to maintain compliance. However, in the event that non-compliance is unavoidable directly due to impact from COVID-19 and/or related legal restrictions (federal/state/local declarations or orders), we are prepared to address such issues.

SOUTH DAKOTA
Environmental Enforcement Status: No change in enforcement
The South Dakota Department of Environment and Natural Resources appears to be doing normal business at this time. They have a comprehensive FAQ page for Water Quality regulation during COVID-19 social distancing.

TENNESSEE
Environmental Enforcement Status: No change in enforcement
The Tennessee Department of Environment and Conservation is conducting normal business at this time. They have a dedicated webpage for their COVID-19 response, which includes their contingency plan for compliance activities that will be “undertaken remotely so those important activities continue to occur during this period.”

TEXAS
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
Although not explicitly stated, the Texas Commission on Environmental Quality seems to be following the lead of the US EPA. They have notified regulated entities that they will exercise enforcement discretion for events of noncompliance that are unavoidable due to impact from COVID-19.

They have also issued a policy that will extend the deadlines for the following reports:

• Point source emissions inventories;
• Stormwater general permit reports; and
• Mass Emissions Cap and Trade (MECT) and Highly Reactive Volatile Organic Compound Emissions Cap and Trade (HECT) annual compliance reports.

UTAH
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Utah Department of Environmental Quality (Utah DEQ) stated that they will adhere to the EPA’s COVID-19 policy and “will work with regulated communities on a case-by-case basis to determine reasonable exemptions to environmental rules.”

VERMONT
Environmental Enforcement Status: No change in enforcement
The Vermont Department of Environmental Conservation (VDEC) appears to be operating normally as they work remotely.

VIRGINIA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
Despite a strongly worded response to the EPA’s guidance, the Virginia Department of Environmental Quality (VDEQ) are considering noncompliance issues on a “case-by-case basis, but by no means does this crisis equal a free pass for the regulated community.”

WASHINGTON
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The Washington Department of Ecology has stated that they will “exercise reasonable discretion… when deciding whether to pursue potential violations that may be linked to the current COVID-19 pandemic”

WEST VIRGINIA
Environmental Enforcement Status: Following EPA guidance/Exercising flexibility
The West Virginia Department of Environmental Protection (WVDEP) has stated that all rules, regulations and permitting requirements under their jurisdiction will remain in full effect. However, if the permittee finds certain compliance requirements “not reasonably practicable” under the current circumstances, they should contact the agency.

WISCONSIN
Environmental Enforcement Status: No change in enforcement
The Wisconsin Department of Natural Resources (WDNR) has a portion of personnel working remotely. All public events have been postponed until Friday, April 24th. They appear to be operating normal compliance enforcement.

WYOMING
Environmental Enforcement Status: No change in enforcement
The Wyoming Department of Environmental Quality (DEQ) has made electronic document submittal available to the regulated community. They appear to be operating under normal discretion.

CANADA
Environmental Enforcement Status: No national change in enforcement
Canadian environmental regulators have not made nationwide changes to their enforcement, but like the US, individual provinces have released adjusted discretion guidances. On April 2nd, Alberta issued a stay of all enforcement activities except drinking-water facilities. Ontario followed shortly after with their own stay of enforcement.

If you are a member of the regulated community, we know that right now you are focused on maintaining the health of your employees, business, and customers rather than on the environmental investigation or remediation that you might be dealing with. If there is anything that we can do to assist you with pending technical demands during the COVID-19 crisis, please let us know what you need.

We’re here to provide advice as environmental experts and access to our extensive network of legal, technical, and regulatory experts to help guide you through these matters while your focus is elsewhere.

Contact us if you need any advice on how to respond to these new policies.

WHAT WE SAW IN 2008 AND AFTER AS AN ENVIRONMENTAL CONSULTING FIRM

BY: JEFF CARNAHAN

As I write this latest installment of The Environmental Corner in mid-March, we are all watching and participating in some pretty turbulent times related to COVID-19. Outside of the fears related to our personal health and our loved ones, the specter of looming economic instability over the coming months has added insult to injury. As I read the comments in the Cleaner & Launderer Community on Facebook, I see many owners and operators of drycleaning businesses concerned about reductions in customers, forced closures and the overall public response to a perceived inevitable recession. Like many of you, I’m concerned about an economic downturn; but also, like many of you, I remember what we went through back in 2008. Our team saw first-hand how a major recession impacted the environmental cleanup process, our clients, and ultimately our own business. This month, I want to share my reflections on what those economic impacts looked like. It’s not peaches and cream, but there is a glimmer of hope. 

The Great Recession of 2008, or the “Sub-Prime Mortgage Crisis”, began completely differently than this new financial crisis, but the initial result will be the same: a period of high unemployment, unstable markets, and lower profitability. We are already hearing familiar talk of government bailouts and tax relief programs to bolster businesses during the inevitable downturn. Financial analysts are proposing that the next steps in the COVID-19 response will determine if the recovery from this next recession will be similar to the four-year climb we saw after 2008, or perhaps something shorter. Likewise, the level to which this next recession impacts your environmental cleanup plans, and how those considerations impact your business’ bottom line can be influenced by your attention to it now. It’s understandable that other business matters take priority during economically turbulent times, but that could be detrimental from what we learned in the years following the 2008 crisis should the predicted 2020 recession continue to take shape. 

Here are my three main takeaways for drycleaners from the 2008 recession.

1. NO REGULATORY REPRIEVE FOR ENVIRONMENTAL ISSUES

If you are currently in the process of an environmental project, you can expect that the regulatory agency won’t back off during an economic downturn. To them it doesn’t matter whether or not you are having business problems. That seems harsh, but here’s how I’ve seen it play out. 

Government employees, such as those at the state or federal environmental agency, are like any other worker. When unemployment is increasing or at a high level, they get fearful for their job and they buckle down to be seen as high performers to their supervisors. Since they work for a regulatory agency, buckling down means increasing their level of regulation and oversight. We did see several hiring freezes with agencies, but we did not see layoffs. So, in fact, after 2008 we actually saw a net increase in regulatory demands. The result of the increased regulation was an increase in the annual cost of ongoing environmental projects. We also saw an increase in the number of fines and stipulated penalties being imposed upon our clients for lack of compliance with regulatory demands. One could surmise that this was an involuntary result of increased financial pressures within the regulatory agency, where fines and oversight fees are a source of income for them. I’m not suggesting that this was a calculated strategy by the agencies; but rather the net result, and that’s what we saw. 

The bottom line here is that you shouldn’t expect a reprieve from the need to continue your environmental investigation and cleanup process during a wide-spread economic crisis. 

2. AN INCREASE IN DEMAND FOR TROUBLED ASSETS 

As soon as the economy hit bottom after 2008, we saw an increase in the number of investors looking to capitalize on depressed real estate values. Initially, the focus was on properties that had been foreclosed upon by lending institutions after the owner was forced to default on the mortgage. Unfortunately, we did have clients who had lost their properties in that way. When business gets depressed, this can happen, of course. In addition to the foreclosed properties being bought up, we also saw an increase in the number of owners who were willing to sell their properties to investors at a discount to get cash back into their stressed businesses. 

Regardless of the reason, when there is a commercial property transaction, especially of a drycleaner property, the Phase I and Phase II due diligence process is performed, and environmental contamination issues come to light. While a truly motivated purchaser is typically willing to spend the money upfront to conduct the Phase I and Phase II assessments, the owner and/or operator of the drycleaner will be the identified responsible party for any impacts found. If the responsible party doesn’t have the financial means to address those impacts, the deal may fall through and the seller won’t get the benefit of the sale, or the buyer may use those impacts as leverage to lower the price to their advantage. In certain situations, we’ve seen properties sold for an extremely low price when the owner is seriously cash strapped. I’m sure that your current plans don’t include being in either of the categories mentioned here, but you never know how severe this next recession will be or how long it will last. 

3. A FOCUS ON ALTERNATIVE FUNDING SOURCES AS A SOLUTION 

Based on the multitude of factors discussed above, as well as the overall tendency to tighten belts during economic downturns, we saw an increase in the number of businesses looking for creative ways to offset losses or a decrease in profitability. We saw this a lot. One great example that we saw is delivery or transportation based businesses adding fuel surcharges to their base fees. We saw things like the technology surcharges that pop up on invoices from vendors who heavily utilize software in their services. We saw an overall increase in the granularity of invoices or bills from businesses who were attempting to look for any way possible to pass on costs to their customers. Mostly, this was in the business to business (B2B) space, and not so much in the business to consumer (B2C) space. Many drycleaners in the B2C world know how damaging it can be to pass costs on to their customers if not nuanced gently. The point here is that we saw our clients looking under the corner of every rug and behind every couch cushion to find that extra source of income or savings to help get them through until the market rebounded after 2008. 

A GLIMMER OF HOPE FOR DRYCLEANING BUSINESSES 

There was one thing that we did not see change during the Great Recession of 2008 and its recovery that helped thousands of small businesses and drycleaners: old commercial general liability policies.  

This was a big deal for a lot of people because old insurance policies can be used as financial assets for businesses. Whether business owners were looking for help in fending off increases in regulatory demands, in maintaining the value of their real estate investments, or just looking for extra cash as a result of the financial crisis, they increased their desire and willingness to look for their old insurance policies. A lot of things are impacted by a sizeable recession, but one thing that is only rarely affected is case law. Your state’s case law requires insurance carriers to honor these old commercial general liability policies to the interpreted extent when a proper claim is filed. 

You may be wondering “Is it worth your time to look for your old commercial general liability policies now, before things get too wonky?” If you don’t have any luck, you can hire professional help to perform insurance archeology and hunt them down. Not only are old insurance policies important during tough times but being fully covered for current operations is important as well. While I’m not in the insurance business, we’ve all been saved by an insurance policy a time or two, either professionally or personally. Now is an important time to look at your old coverage and your current coverage, evaluate your deductibles and limits, and make a call to your current carrier if you feel like you wouldn’t be able to take a hit should an unforeseen event transpire. There are many dedicated agents and insurance companies that have supported the drycleaning industry through the years. I’m sure they would be happy to help you figure things out. 

As a final thought, the most important takeaway that we saw in the drycleaning industry during the last recession was that the industry came together to support each other and produce creative ways to weather the storm. Operators, vendors, suppliers, and allied trades worked side by side for the benefit of the industry. The time is now for a repeat performance on that track. We’re all in this together, no matter how trying the times ahead become.  

Do you have any questions? Send me an email at jcarnahan@enviroforensics.com or fill out our contact form. 

As seen in Cleaner & Launderer

Jeff Carnahan, President at EnviroForensics
Jeff Carnahan, LPG, has 20+ years of environmental consulting and remediation experience. His technical expertise focuses on the investigation and interpretation of subsurface releases of hazardous substances for the purpose of evaluating and controlling the risk and cost implications. He has focused on being a partner with the dry cleaning industry for the past decade, and he’s a frequent contributor to the national dry cleaning publication Cleaner & Launderer. He is an industry leader in understanding that environmental risk includes not only cleanup costs, but also known and unknown third-party liability.

DRY CLEANING HAS BEEN AROUND SINCE THE 1600S AND HAS BEEN A RELIABLE WAY TO GET CLOTHES CLEANED EVER SINCE. CHEMICAL-BASED SOLVENTS TOOK OFF IN THE 1800S, AND THE CONVERSATION ABOUT INDUSTRY BEST PRACTICES AND LONG-TERM IMPACTS ARE HOT TOPICS TODAY.

BY: DRU CARLISLE

Perchloroethylene, also known as perc, has been around for nearly a century and it’s still the dominant solvent used by U.S. dry cleaners compared to hydrocarbons or alternative solvents like GreenEarth. 

However, the number of dry cleaners using perc has started to go down. From the 1970s to 1990s a barrage of increasingly stringent rules and regulations covering dry cleaning operations and the use of perc, past and present took place. Over the past few decades, 80-85% of dry cleaners in the U.S. used to use perc. Now, about 60-65% of dry cleaners use perc and the rest now use hydrocarbons (20-25%) or alternative solvents (15-20%).

Perc is well-liked by dry cleaners because it is much more effective and quicker to use than hydrocarbon cleaning, which takes 75% more time to do the same cleaning that perc does for clothes. With these efficient attributes, it’s no wonder that perc has stayed as a popular choice for so long.

However, there are some downsides to using perc for dry cleaning: 

1. Perc is a very strong chemical, which is what makes it a great cleaning solvent, however, it can easily seep into the soil and groundwater beneath a dry cleaner with a few minor spills causing serious contamination issues. Additionally, perc doesn’t naturally degrade over time and without treatment perc will actually sink deeper and spread out farther, which creates a large plume of perc contamination. 
2. The historical perc regulations didn’t instruct the industry to handle and dispose of the chemical safely, which is a heartbreaking story because dry cleaners were following the proper regulations at the time, but they’re now on the hook for the contamination.
3. Perc dry cleaning machines are expensive and can cost $60,000-$80,000, which is why they are a big expense for dry cleaners and are not replaced often. Additionally, the perc machine was considered to be an investment and an asset. Therefore, if a dry cleaner can’t afford a new machine nor sell their old perc machine, then they are most likely still using a Perc machine instead of a machine that can use alternative solvents.

THE EVOLUTION OF THE DRY CLEANING MACHINE

Now that we’ve covered the history of dry cleaning solvents, we’ll dive further into the evolution of the dry cleaning machine.

The dry cleaning machine as dry cleaners know it has gone through multiple generations of functionality and use. First, there were wet to dry machines, then dry to dry machines, then the current machine on the market, closed-loop machines. The different machine generations solved operational issues for dry cleaners and helped them use their dry cleaning solvents more effectively. 

1ST GENERATION MACHINE

2ND GENERATION MACHINE

3RD GENERATION MACHINE

4TH GENERATION MACHINE

5TH GENERATION MACHINE

Dry cleaners are keenly aware that the use of perc has become as heavily regulated as nearly any other industrial chemical to date, and some have started to switch over to hydrocarbon or alternative solvents. As mentioned earlier, changing machines is a costly endeavor for dry cleaners and it’s understandable why they would prefer to keep using perc compared to other solvent options, such as hydrocarbon and alternative solvents like GreenEarth, K4, Sensene and wetcleaning. 

While dry cleaners evaluate different solvent options and their future business plans, it’s important to prepare for addressing an environmental issue if it’s placed in your lap. The costs of addressing environmental contamination without funding though historical insurance can range up into the hundreds of thousands, sometimes even millions, which is why we recommend using insurance archeology, which is a small fraction of that cost, to locate insurance assets that can be used to cover the necessary environmental and legal costs associated with a cleanup. Being proactive means that you are in command of the situation and by being in front of the issue, you will save yourself a lot of stress and money.

As chlorinated solvent experts, we’ve helped hundreds of dry cleaners navigate their environmental concerns with little to no out-of-pocket costs to them. Our goal is to help our clients get out of a challenging situation without a large financial burden. We understand how challenging this process can be for business and property owners and have successfully helped our clients navigate through these often uncharted waters. 

Want to hear what our clients think? Hear from our dry cleaning clients and get an inside perspective on their environmental challenges.

Dru Carlisle, Director of Drycleaner Accounts
For over 10 years, Dru has helped numerous business and property owners facing regulatory action, navigate and manage their environmental liability. Dru has vast experience in assisting dry cleaners in securing funding for their environmental cleanups through historical insurance policies. Dru is a member of numerous drycleaning associations in addition to serving on the Midwest Drycleaning and Laundry Institute (MWDLI) advisory council and on the Drycleaning & Laundry Institute Board (DLI) as an Allied Trade District Committee Member.