Thursday, May 13, 2004
By Deborah Charles, Reuters

WASHINGTON — Wal-Mart Stores Inc. has agreed to pay a $3.1 million fine to settle charges of violations of the federal Clean Water Act at store construction sites across the country, the U.S. government said Wednesday.

The fine was the largest civil penalty ever against a company for storm water runoff violations. Officials said they hoped the settlement with the world's biggest retailer would set an example for smaller companies.

Wal-Mart, which is also the nation's largest retail construction developer, agreed to institute better control measures to reduce storm water runoff at construction sites. The retailer was fined $1 million over similar violations in 2001.

The complaint against Wal-Mart alleged violations at 24 sites in nine states. It included charges that the company failed to get a permit before beginning construction and did not develop a plan to control polluted runoff water.

"Runoff from construction sites is a primary contributor to the impairment of water quality in the nation," said Thomas Skinner, acting assistant administrator of the EPA's office of enforcement and compliance.

Storm water runoff carries high levels of mud, sediment, oil, grease, heavy metals, toxins, and other pollutants into storm sewers and ultimately into rivers, wetlands, and oceans.

Wal-Mart has agreed to hold programs to train contractors about storm water control requirement and must submit written documentation of compliance efforts, officials said.

A Wal-Mart spokesman said the company would begin implementing new measures at its construction sites and hopes to be a "trendsetter in environmental compliance."

Assistant Attorney General Thomas Sansonetti said he hoped the penalty would spark widespread compliance.

"If the biggest retailer in the United States can do that with over 100 contractors, then why can't smaller entities that are doing construction in a smaller region not be able to do the same thing when they only have to deal with one, two, or three contractors," he told reporters.

In 2001, Wal-Mart had to pay a $1 million penalty in a settlement of claims that it had violated the storm water requirements at 17 different sites. Follow-up inspections revealed that violations continued, officials said.