“The S-Word” (Sewer Sludge):
How Carlyle Group-owned Synagro is Hurting Our Communities
With little fanfare, in April of 2007 Washington D.C.-based Carlyle Group completed its buyout of Synagro
Technologies, Inc. for $772 million. Part of a fund dedicated to purchasing critical infrastructure, Carlyle calls
investments like these, “A true win-win proposition.” But when it comes to Synagro and its products, communities
stand to lose.
The Carlyle Group and Sewer Sludge: Striking it rich on “brown gold”?
Synagro, headquartered in Houston, Texas, specializes in processing municipal waste products, transporting the
resulting “sewer sludge” and distributing it for land application. The company primarily services municipal
governments, and business has been booming. Between 2002 and 2006, revenues grew by over 26%. When the
Carlyle Group came along, the backlog of contracts alone was worth an estimated $2.1 billion with an average of 14
years remaining including renewal options. After about 3 months of negotiations in late 2006 and early 2007, the
Carlyle Group committed $277 million, and used $540 million in debt to finance the takeover.
Communities should be alarmed by the fact that with private equity ownership comes less transparency and
accountability to the communities in which Synagro operates. The takeover came just in time to squelch the
momentum of a shareholder resolution asking Synagro to report on any toxins, molds, pathogens, hazardous waste
and hazardous air pollutants released by the company’s Hunts Point, NY, smokestacks. After the buyout, of course,
the newly private Synagro is no longer accountable to public shareholders.
What is “Sewer Sludge”?
Also euphemistically called “biosolids,” sewer sludge is the solid discharge left over after treating water discharged
into sewers. This means that anything sent to a sewer can potentially end up in sludge, whether it be human waste,
fertilizer run off, chemical run off, or discharges from hospitals or manufacturing plants.
According to the EPA, sewer sludge is “the solid, semi-solid, or liquid residue generated during the treatment of
domestic sewage in a treatment works.” But recognizing the marketing problems with the term, the federal agency
acted on the advice of a public-relations firm about a decade ago and rechristened sewer sludge with the more
environmentally friendly name of “biosolids.”
What are the Dangers associated with Sewer Sludge?
In the past, sewer sludge was typically dumped into lakes, rivers and oceans; but in response to damage to marine
life and beaches, Congress banned the practice of dumping sewer sludge into the ocean beginning in 1992.
Immediately cities began worrying about how to dispose of solid waste and soon after the EPA issued a rule that
allows for the land application of sludge. Here was a solution: cities could give away their sludge as a “fertilizer.”
However the marketing solution has raised concerns in a number of American communities. Residents living near
sites where sewage sludge has been applied have reported significant health complaints that they associate with the
sludge application. The Cornell Waste Management Institute has compiled a database tracking these reports of
asthma, allergies, birth complications, flu-like symptoms, gastrointestinal complications, headaches,
immunodeficiency problems, lesions, nausea, skin rashes, tumors, vomiting and other symptoms.
In addition to these reports of harm to human health, animals have taken a hard hit for their exposure. In Augusta,
GA hundreds of cows died after being fed hay that was grown with biosolids. According to a New York Times report, a
jury awarded local farming families $550,000 in damages. Similarly, when cattle on a California farm died of nitrate
poisoning after sludge applications, the California Regional Water Quality Board cited local officials.
Sewer sludge produced by the Carlyle Group’s Synagro Technologies has been accused of causing serious health
problems. According to news reports, several individuals filed suit against a Synagro subsidiary in 2006 alleging that
soon after applications of Synagro products on a neighboring property, they started suffering from running noses,
burning eyes, even pneumonia and lung scarring. This case is currently going through discovery.
Affected municipalities are exploring their options to address concerns about Synagro products; among the
strategies they are considering are lawsuits, injunctions, studies of government leases with the company, and city
ordinances. In other cases, residents have had to try to deal with the problem themselves; one school located near
a Synagro facility produced calendars for parents to track especially noxious days and report them to city
government officials.
What can communities do?
Communities have a right to know about the products being produced and distributed in their neighborhoods,
especially when those products may contribute to health hazards. The Carlyle Group needs to commit to full
transparency and accountability concerning business practices at Synagro.
For more information or to share your stories about how the Carlyle Group’s Synagro Technologies is hurting our
communities, contact Inga Skippings at SEIU at (202) 730-7764.
Footnote for NRC report text box: See page 4, http://www.epa.gov/waterscience/biosolids/nas/complete.pdf