Penske Truck Leasing Co., L.P. has agreed to pay $7.66 million to settle a lawsuit alleging the company violated California environmental laws governing underground and aboveground storage tanks, hazardous waste control, and hazardous materials at its facilities across the state. The company must also replace or remove aging storage systems at 12 California locations and hire a dedicated environmental compliance manager as part of the deal.
The settlement resolves litigation involving Penske Truck Leasing, 21 district attorney's offices, and the Los Angeles City Attorney, according to a news release cited by the Redlands Daily Facts. Penske operates facilities throughout California and leases and maintains trucks for both commercial and consumer customers. Statewide, the company runs 52 facilities where it conducts maintenance and refueling operations for its leasing and rental fleets, according to the San Bernardino County District Attorney's Office.
How the Investigation Started
The statewide probe traces back to a San Bernardino County investigation that began after Penske failed to correct violations cited at several underground storage tank locations, per the same district attorney's news release. That inquiry originally began after the San Bernardino County Certified Unified Program Agency cited Penske for uncorrected underground storage tank violations, escalating what started as a local compliance issue into a sprawling multi-county case. Prosecutors also allege Penske tampered with a storage-tank sensor in 2022, according to the news release.
As part of the settlement, Penske agreed to replace aging underground storage tank systems with upgraded equipment and enhanced secondary containment monitoring. Where replacement isn't undertaken, the company agreed to remove the old systems entirely across its California sites. The company must also implement broader changes to its protocols and facilities under the terms of the deal.
What the Money Covers
The $7.66 million settlement breaks down into $6,573,750 in civil penalties, $488,250 in investigative cost reimbursements, and $598,000 earmarked for Supplemental Environmental Projects, according to the San Bernardino County District Attorney's Office. Of that total, the Riverside County District Attorney's Office will collect $500,000 — $480,000 in civil penalties and $20,000 in cost reimbursements — tied to the four Penske facilities located within its county, as reported by Lake Elsinore Patch.
The Riverside County case was filed in Riverside County Superior Court under case number CIVSB2621440 and was handled by Deputy District Attorney Lauren R. Martineau of the Environmental Protection Team, according to the Riverside County District Attorney's Office. The stipulated final judgment enforcing the compliance protocols and monitoring requirements against Penske will remain in place for a minimum of five years, giving local Certified Unified Program Agencies extended authority to track the company's progress.
Statutory Standards at Stake
California Health and Safety Code Chapter 6.7 requires underground storage tanks holding hazardous substances to maintain double-walled secondary containment and continuous electronic monitoring to prevent soil and groundwater contamination, according to the California Department of Tax and Fee Administration. The statutory framework sets requirements for underground storage tanks and their monitoring.
Alameda County District Attorney Ursula Jones Dickson said after the announcement that holding commercial entities accountable for hazardous material management is critical for community health and environmental protection, according to Alameda Patch. Penske representatives did not respond to a request for comment as of Friday, per the Redlands Daily Facts report.
Part of a Broader Enforcement Pattern
The Penske case follows a similar pattern set in January, when a multi-county prosecution coalition secured a $7.7 million settlement against Verizon over hazardous materials and storage tank reporting failures at facilities across California. California prosecutors have targeted underground storage tank compliance before on a large scale — in September 2022, the California Attorney General and five district attorneys reached an $8 million settlement with Safeway over underground storage tank and hazardous waste violations spanning 71 retail gas stations, according to the California Department of Justice.
It remains to be seen how quickly Penske will complete the required tank removals and replacements at its 12 California sites, and how closely local Certified Unified Program Agencies will monitor that work in the coming years. For now, the five-year judgment provides continued oversight of the company's required compliance work.
