$17 million penalty proposed over Carson warehouse fire that caused noxious odors in the Dominguez Channel

A $17 million penalty has been proposed against the owners and operators of a warehouse where a massive industrial fire was found to have caused hydrogen sulfide odors to emanate from the Dominguez Channel Estuary last year, which could be the largest the board has ever imposed if approved.

The State Water Resources Control Board announced the massive penalty against Day to Day Imports Inc. and Virgin Scent Inc., which does business as ArtNaturals, and is owned by Liberty Property Limited Partnership and Prologis. The businesses were identified by state regulators as the operators of the South Avalon Boulevard warehouse where a large number of alcohol-based products – including a hand sanitizer that had been recalled and anti-bacterial wipes -- stored outside erupted into a massive blaze on Sept. 30, 2021.

Firefighters battled the roaring inferno, which was also fueled by pallets and large stacks of cardboard, for at least two days. Within days, the South Coast Air Quality Management District began receiving the first of more than 4,000 odor complaints from residents across the South Bay, including in Carson, Gardena, Wilmington, Torrance, Long Beach, and Redondo Beach. The noxious odor caused some people to experience debilitating health problems and forced some residents to temporary relocate to hotels.

The SCAQMD determined the noxious odor was hydrogen sulfide caused by pollutants, including alcohols, that were discharged from the warehouse facility into the Dominguez Channel Estuary. The State Water Resources Board says a post-fire inspection of the warehouse found huge piles of burned debris containing alcohol-based products and hazardous substances.

Hugh Marley, an assistant executive officer for the Los Angeles Water Board, says they devoted considerable resources to investigate the odor – which was found to be not lethal, but was declared a public nuisance.

"The proposed penalties reflect the egregiousness of the alleged violations and significant impacts, not only to the Dominguez Channel Estuary but to nearby residents who are already disproportionately burdened by multiple sources of pollution," Marley said in a statement.

The warehouse's owners and operator were deemed responsible for violating the Clean Water Act and the Porter-Cologne Water Quality Control Act in connection with the discharge of more than 6 million gallons of polluted water, including hazardous substances, into the Dominguez Channel Estuary due to the firefight. The Los Angeles Water Board prosecution team has proposed more than $15 million in penalties for the violation – which would be in addition to an administrative civil liability of over $600,000 for failing to clean up and remove all waste from the warehouse property by Dec. 31 and a penalty of nearly $1 million for failing to obtain permit coverage for discharges from the facility.

 In a statement Friday, Prologis denied any wrongdoing.

"We vigorously dispute any suggestion by the Regional Board that Prologis and Liberty did not take appropriate actions as property owners following the Sept. 30 fire,'' according to the company. "Neither Prologis nor Liberty caused the fire.  Nevertheless, in the days following the fire, after the tenant Day to Day failed to clean up the fire debris, Liberty and Prologis stepped forward to remove the debris and prevent stormwater runoff. By the time the Regional Board issued its cleanup and abatement order ten weeks later, we already had significant remedial actions well underway."

The board will hold a public hearing before the they consider the proposed penalties on Oct. 12.