Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

United States v. Maynard Steel Casting Co.

United States District Court, E.D. Wisconsin

May 30, 2017

UNITED STATES OF AMERICA, Plaintiff
v.
MAYNARD STEEL CASTING COMPANY, Defendant.

          CONSENT DECREE

         TABLE OF CONTENTS

         Section Page

         I. BACKGROUND................................................................................................................1

         II. JURISDICTION AND VENUE.........................................................................................3

         III. APPLICABILITY...............................................................................................................4

         IV. DEFINITIONS....................................................................................................................5

         V. CIVIL PENALTY...............................................................................................................8

         VI. COMPLIANCE REQUIREMENTS...................................................................................9

         Clean Air Act Requirements.........................................................................................................9

         Resource Conservation and Recovery Act Requirements...........................................................23

         VII. APPROVAL OF DELIVERABLES................................................................................25

         VIII. PERMIT REQUIREMENTS............................................................................................26

         IX. REPORTING REQUIREMENTS....................................................................................28

         X. STIPULATED PENALTIES............................................................................................30

         XI. FORCE MAJEURE..........................................................................................................37

         XII. DISPUTE RESOLUTION................................................................................................39

         XIII. INFORMATION COLLECTION AND RETENTION...................................................42

         XIV. EFFECT OF THE SETTLEMENT/RESERVATION OF RIGHTS................................44

         XV CERTIFICATION............................................................................................................46

         XVI. COSTS..............................................................................................................................47

         XVII. NOTICES..........................................................................................................................47

         XVIII. EFFECTIVE DATE..........................................................................................................49

         XIX. RETENTION OF JURISDICTION..................................................................................49

         TABLE OF CONTENTS

         Section Page

         XX. MODIFICATION.............................................................................................................50

         XXI. TERMINATION...............................................................................................................50

         XXII. PUBLIC PARTICIPATION.............................................................................................51

         XXIII. SIGNATORIES/SERVICE...............................................................................................51

         XXIV. APPENDICES..................................................................................................................52

         XXV. INTEGRATION...............................................................................................................52

         XXVI. FINAL JUDGMENT........................................................................................................53

         LIST OF APPENDICES

         Appendix A Fume Collection System Study

         Appendix B Operations and Maintenance Plan

         Appendix C Electric Arc Furnace Outdoor Fugitive Emissions Opacity Monitoring Protocol

         Appendix D List of Financial Information Submitted by Defendant for Ability to Pay Analysis

         Appendix E Diagram of RCRA Containment Structure

         I. BACKGROUND

         A. Plaintiff United States of America, acting on behalf of the United States Environmental Protection Agency ("EPA"), has filed a Complaint concurrently with this Consent Decree. The Complaint alleges that Defendant, Maynard Steel Casting Company ("Defendant" or "Maynard Steel"), violated Section 502 of the Clean Air Act ("CAA") (Title V permits), 42 U.S.C. § 7661a, and the federally approved and enforceable State Implementation Plan ("SIP") adopted by the State of Wisconsin and approved by EPA pursuant to Section 110 of the CAA, 42 U.S.C. §7410;

         B. The Complaint further alleges that Maynard Steel, as an owner and operator of its steel casting facility, violated various provisions of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act ("RCRA"), including Section 3004 (standards applicable to owners and operators of hazardous waste treatment, storage and disposal facilities), 42 U.S.C. § 6924; Section 3005(a) (permits for treatment, storage or disposal of hazardous waste), 42 U.S.C. § 6925(a); and the State of Wisconsin's hazardous waste program authorized by EPA pursuant to RCRA Section 3006, 42 U.S.C. § 6926;

         C. On September 26, 2011, EPA issued a CAA Notice and Finding of Violation ("CAA NOV") to Defendant. EPA provided a copy of the CAA NOV to the State of Wisconsin as required by Section 113(a)(1) of the CAA, 42 U.S.C. § 7413(a)(1). On July 3, 2012, EPA issued a RCRA NOV to Defendant, and provided a copy of it to the State of Wisconsin as required by Section 3008(a) of the RCRA, 42 U.S.C. § 6928(a). The United States has provided notice of the commencement of this action to the State of Wisconsin as required by CAA Section 113(b), 42 U.S.C. § 7413(b), and RCRA Section 3008(a), 42 U.S.C. § 6928(a)(2);

         D. In its Complaint, the United States alleges, among other things, that Defendant violated the CAA by operating four electric arc furnaces ("EAFs") at its steel foundry in Milwaukee, Wisconsin (the "Facility"), without installing and maintaining pollution control equipment adequate to control emissions of particulate matter within the limits of its federally-enforceable state permit, and as required by the CAA and applicable regulations, resulting in the release of particulate matter that exceeds permissible limits;

         E. In its Complaint, the United States further alleges, among other things, that Defendant violated RCRA by: (1) failing to properly handle or dispose of dust containing high levels of chromium, a hazardous waste, produced by the EAFs at its Facility; (2) failing to determine whether the dust was a hazardous waste; and (3) sending the dust to landfills not authorized to accept hazardous waste;

         F. The United States alleges claims upon which relief may be granted against Defendant under the CAA and RCRA;

         G. In entering into this Consent Decree, Defendant does not admit any liability to the United States arising out of the transactions or occurrences alleged in the Complaint;

         H. The United States has reviewed the Financial Information submitted by Defendant to determine whether Defendant is financially able to pay a civil penalty for the violations alleged in the Complaint. Based upon this Financial Information, the United States has determined that Defendant has limited financial ability to pay a civil penalty; and

         I. The Parties recognize, and, by entering this Consent Decree, the Court finds that this Consent Decree has been negotiated by the Parties in good faith and will avoid litigation between the Parties and that this Consent Decree is fair, reasonable, and in the public interest.

         NOW, THEREFORE, before the taking of any testimony, without the adjudication or admission of any issue of fact or law except as provided in Section II (Jurisdiction and Venue) below, and with the consent of the Parties, IT IS HEREBY ADJUDGED, ORDERED, AND DECREED as follows:

         II. JURISDICTION AND VENUE

         1. This Court has jurisdiction over the subject matter of this action pursuant to 28 U.S.C. §§ 1331, 1345 and 1355; CAA § 113(b), 42 U.S.C. § 7413(b); and RCRA § 3008(a), 42 U.S.C. § 6928(a), and over the Parties. Venue is proper in this district pursuant to CAA § 113(b), 42 U.S.C. § 7413(b); RCRA § 3008(a), 42 U.S.C. §6928(a); and 28 U.S.C. §§ 1391(b) and (c), and 1395(a) because the violations alleged in the Complaint occurred and are occurring in this district, and because Defendant conducts business in this district. Solely for the purposes of this Consent Decree and the underlying Complaint, Defendant waives all objections and defenses that it may have to jurisdiction of this Court or to venue in this District. Defendant shall not challenge the entry of this Consent Decree, the terms of this Consent Decree, or this Court's jurisdiction to enter and enforce this Consent Decree.

         2. Defendant agrees that the Complaint states claims upon which relief may be granted pursuant to CAA § 113(b) (CAA federal enforcement provision), 42 U.S.C. § 7413(b); CAA § 502 (Title V permit provision), 42 U.S.C. § 7661a; the federally approved and enforceable SIP adopted by the State of Wisconsin and approved by EPA pursuant to CAA § 110, 42 U.S.C. § 7410; RCRA § 3008 (RCRA federal enforcement provision), 42 U.SC. § 6928; RCRA § 3004 (standards applicable to owners and operators of hazardous waste treatment, storage, and disposal facilities), 42 U.S.C. § 6924; RCRA § 3005(a) (permits for treatment, storage or disposal of hazardous waste), 42 U.S.C. § 6925(a); RCRA § 3006 (authorized State hazardous waste programs), 42 U.S.C. § 6926; and the State of Wisconsin's hazardous waste program authorized by EPA pursuant to RCRA Section 3006, 42 U.S.C. § 6926.

         III. APPLICABILITY

         3. The obligations of this Consent Decree apply to and are binding upon the United States and upon Defendant and any of its successors, assigns, or other entities or persons otherwise bound by law.

         4. No transfer of ownership or operation of the Facility, whether in compliance with the procedures of this Paragraph or otherwise, shall relieve Defendant of its obligation to ensure that the terms of this Decree are implemented. At least thirty (30) Days prior to such transfer, Defendant shall provide a copy of this Decree to any proposed transferee and shall simultaneously provide written notice of the prospective transfer, together with a copy of the proposed written agreement, to EPA Region 5, the United States Attorney for the Eastern District of Wisconsin, and the United States Department of Justice, in accordance with Section XVII of this Decree (Notices). Any attempt to transfer ownership or operation of the Facility without complying with this Paragraph constitutes a violation of this Decree.

         5. Defendant shall provide a copy of this Decree to all officers, directors, employees, and agents whose duties might reasonably include compliance with any provision of this Decree, as well as to any contractor retained to perform work required under this Consent Decree. Defendant shall condition any such contract upon performance of the work in conformity with the terms of this Consent Decree. Relative to Defendant personnel, this condition may be satisfied by posting, in a common area accessible to the personnel noted above, a copy of this Decree or a notice with instructions as to where a copy of this Decree can be obtained for review; and either electronic posting on a Defendant intranet site or distribution to such personnel via e- mail. Relative to the contractors noted above, this condition may be satisfied by e-mailing a copy of this Decree to the contractor and obtaining an email confirming receipt from the contractor. This condition will terminate concurrent with the time frame established under Section XXI of this Decree.

         6. In any action to enforce this Decree, Defendant shall not raise as a defense the failure by any of its officers, directors, employees, agents or contractors to take any actions necessary to comply with the provisions of this Decree.

         IV. DEFINITIONS

         7. Terms used in this Consent Decree that are defined in the CAA or RCRA, or in regulations promulgated pursuant to the CAA or authorized by RCRA, shall have the meaning assigned to them in the CAA, RCRA, or such regulations, unless otherwise provided in this Decree. Whenever the terms set forth below are used in this Consent Decree, the following definitions shall apply:

a. "Complaint" means the complaint filed by the United States in this action;
b. "Consent Decree" or "Decree" means this Decree and all appendices attached hereto, which are listed in Section XXVIII (Appendices);
c. "Day" means a calendar day unless expressly stated to be a business day. In computing any period of time under this Consent Decree, where the last day would fall on a Saturday, Sunday, or federal holiday, the period shall run until the close of business of the next business day;
d. "Defendant" means Maynard Steel Casting Company;
e. "Delta Section" means the area where the three EAF electrodes penetrate a furnace cover, and in the case of EAF No. 4, also includes the fume collection system hood, which is the primary inlet to the fume collection system for EAF No. 4.
f. "EAF No. 4" means the EAF placed in service in 1945 and located in the Green Sand Foundry at the Facility;
g. "EAF No. 5" means the EAF placed in service in 1956 and located in the Green Sand Foundry at the Facility;
h. "EAF No. 6" means the EAF placed in service in 1962 and located in the Green Sand Foundry at the Facility;
i. "EAF No. 7" means the EAF placed in service in 1978 and located in the No Bake East End of the Facility;
j. "EPA" means the United States Environmental Protection Agency and any of its successor departments or agencies;
k. "Effective Date" has the definition provided in Section XXII (Effective Date);
l. "Facility" means Defendant's steel processing foundry located at 2856 South 27th Street, Milwaukee, Wisconsin;
m. "Financial Information" means the third-party audited financial statements, corporate tax returns, and other finance related documents that Defendant provided to the United States in support of the assessment of Defendant's limited ability to pay a civil penalty, which are listed in Appendix D of this Decree;
n. "Fume Collection System" or "FCS" means the exhaust ventilation control and capture system for each EAF. For EAF Nos. 5, 6 and 7, the FCS is comprised of a side-draft hood; a telescoping duct that allows the side-draft hood to remain engaged when the EAF tilts; ductwork to a baghouse; a baghouse; fan; and an exhaust stack. For EAF No. 4, the FCS is currently comprised of a furnace cover exhaust hood (with its primary inlet at the Delta Section); ductwork from the furnace cover exhaust hood to a baghouse (without telescoping capability to remain engaged when the EAF is tilted); a baghouse; fan; and an exhaust stack. Additionally, EAF No. 4 has a building roof canopy hood that is intended to capture emissions when the furnace is tilted, which emissions are then ducted to EAF No. 4's baghouse.
o. "Melt Rate" means the rate at which metal charged to an EAF is turned from a solid to a liquid or molten state. Melt Rate shall be determined from the time an EAF is powered on and melting begins until removal of the electrodes and power off, and includes the refining, slagging and alloying processes associated with an EAF, but does not include time associated with equipment breakdown, delays requiring removal of the electrodes, and/or power off, so long as melting (i.e., active conversion of solid scrap metal to molten metal) does not continue.
p. "PM" means total particulate matter, including PM10 (meaning particulate matter smaller than 10 microns diameter) and PM2.5 (meaning particulate matter smaller than 2.5 microns diameter); q. "Paragraph" means a portion of this Decree identified by an Arabic numeral.
r. "Parties" means the United States and the Defendant;
s. "Section" means a portion of this Decree identified by a Roman numeral;
t. "State" means the State of Wisconsin; and
u. "United States" means the United States of America, acting on behalf of

EPA.

         V. CIVIL PENALTY

         8. Within thirty (30) Days after the Effective Date of this Consent Decree, Defendant shall pay the first of five (5) consecutive monthly sums of $5, 000 each, as a civil penalty, together with interest accruing from the date on which this Consent Decree is lodged with the Court, at the rate specified in 28 U.S.C. § 1961 as of the date of lodging. Each subsequent monthly payment shall be submitted on or before the 15th day of the calendar month. This civil penalty has been determined based on an evaluation of the Financial Information provided by Defendant to the United States, concluding that Defendant has a limited ability to pay a civil penalty.

         9. Defendant shall pay the civil penalty due by FedWire Electronic Funds Transfer ("EFT") to the U.S. Department of Justice in accordance with written instructions to be provided to Defendant, following lodging of this Decree, by the Financial Litigation Unit of the United States Attorney's Office for the Eastern District of Wisconsin, 517 E. Wisconsin Ave., Room 530, Milwaukee, Wisconsin, phone number: 414-297-1700. At the time of payment, Defendant shall send a copy of the EFT authorization form and the EFT transaction record, together with a transmittal letter that shall state that the payment is for the civil penalty owed pursuant to this Consent Decree in United States v. Maynard Steel Casting Company and reference the civil action number and DOJ case number 90-5-2-1-10613, to the United States in accordance with Section XVII of this Decree (Notices); by email to acctsreceivable.CINWD(g)epa. gov; and by mail to:

EPA Cincinnati Finance Office
26 Martin Luther King Dr.
Cincinnati, Ohio 45268 1

         0. Defendant shall not deduct any penalties paid under this Decree pursuant to this Section or Section X (Stipulated Penalties) in calculating its federal income tax.

         VI. COMPLIANCE REQUIREMENTS

         Clean Air Act Requirements

         11. Defendant currently operates EAF Nos. 5, 6 and 7 at the Facility. As of the date of lodging of this Decree, EAF No. 4 is not operational. Prior to operating EAF No. 4, Defendant shall first inspect and repair as necessary the Delta Section of the associated FCS, and provide written notification to EPA of the results of the inspection and all repairs performed, pursuant to Section XVII (Notices). Once EAF No. 4 is operating, Defendant shall not conduct more than 12 heats in a rolling 12-month period. If Defendant elects to exceed this limit at EAF No. 4, then within one year of exceeding this limit, Defendant shall:

a. install telescoping ductwork to continuously capture emissions at the Delta Section on EAF No. 4 or replace the current local hood with a side-draft hood and telescoping duct to continuously capture emissions at the annular spaces between the electrodes and the furnace cover on EAF No. 4;
b. complete the Fume Collection System Study at EAF No. 4 as described in Paragraphs 28 through 31 of this Decree;
c. implement the compliance provisions in Paragraph 18 (installation of bag leak detection system), Paragraphs 26 and 27 (bag leak detection system monitoring plan), and Paragraph 69 (Permit Requirements Applicable to EAF No. 4) of this Decree; and
d. provide written notification to EPA, consistent with Section XVII (Notices), at least thirty (30) days prior to using EAF No. 4 to conduct more than 12-heats in a rolling 12-month period. During this one year period, Defendant shall not conduct more than 24 total heats at EAF No. 4 starting from the date on which the 13th heat in the previous 12-month period is conducted.

         12. Corrective Actions Completed Since EPA Issued the CAA NOV.

         As of the date of lodging of this Decree, Defendant has performed certain actions to address the violations alleged in the Complaint, including, but not limited to: (a) repairing and overhauling the EAF baghouses on EAF Nos. 4, 5, 6 and 7; (b) replacing damaged telescoping ductwork on EAF No. 5; (c) replacing the existing enclosing hood with a side-draft hood and telescoping duct on EAF No. 6; (d) rebuilding the slag door on EAF No. 6; (e) installing a telescoping duct on EAF No. 7; and (f) renovating the building roof canopy hood collection system currently in place at EAF No. 4.

         13. Capture of EAF Emissions.

         a. Defendant shall ensure, to the extent practicable, that the capture efficiency of each of its FCSs is sufficient to reduce or eliminate visible particulate matter ("PM") from the hood-furnace interface, the slag door and the annular spaces around the electrodes.

         b. As set forth in Paragraph 7(n) above, the FCS for EAF No. 4 currently differs from that which is employed on EAF Nos. 5, 6 and 7. While EAF No. 4 is operating, Defendant shall utilize the FCS beginning at the Delta Section as its primary means of capturing emissions from the furnace. Whenever the Delta Section is disconnected while EAF No. 4 is operating, and until such time as the modifications required by Paragraph 11(a) are implemented, Defendant shall, to the extent practicable and as described in the Operation and Maintenance Plan ("O&M Plan") (Appendix B), operate the building roof canopy hood currently in place for EAF No. 4.

         14. Defendant shall ensure each FCS as defined under Paragraph 7(n) and as modified at EAF No. 4 under Paragraph 11(a), including related monitoring equipment, is maintained and continually operating while the associated EAF is operating. All leaks discovered in any FCS, shall be promptly repaired in accordance with the Defendant's O&M Plan (Appendix B).

         15. Emission Limits for Defendant's Electric Arc Furnaces. When an EAF is operating, Defendant shall capture PM from that EAF and direct such PM to the EAF's associated baghouse. Unless modified by a future Title V Permit or CAA construction permit, emissions from the outlet stack for the EAF baghouse shall not exceed the following levels, as determined by the methodology specified in Paragraphs 33 and 34 below:

a. 1.90 pounds of PM per hour from the stack associated with EAF No. 4;
b. 1.75 pounds of PM per hour from the stack associated with EAF No. 5;
c. 2.38 pounds of PM per hour from the stack associated with EAF No. 6; and
d. 4.39 pounds of PM per hour from the stack associated with EAF No. 7.

         16. Opacity of Emissions from the Facility.

         Defendant shall not emit any un-captured PM (PM from an EAF not directly vented to its FCS) to the atmosphere from charging, melting, refining or tapping phases and/or PM from pouring operations that exhibit an average opacity greater than 20 percent for any six minute period as determined using EPA Alternate Method 082 (77 Fed. Reg. 8865, February 15, 2012), or as calculated using EPA Method 9, 40 C.F.R. Pt. 60, Appendix A-4, or in accordance with the Electric Arc Furnace - Outdoor Fugitive Emissions Opacity Monitoring Protocol contained in Appendix C of this Decree.

         17. Installation and Operation of Continuous Parametric Monitoring System.

         Within six (6) months of the Effective Date of this Decree, Defendant shall install, on each of EAF Nos. 5, 6 and 7, a continuous parametric monitoring system ("CPMS") to measure (a) pressure drop across each associated baghouse, and (b) hood static pressure. Within one-hundred eighty (180) days of resuming operations at EAF No. 4, Defendant shall install a CPMS. Defendant shall operate the CPMS at all times that its associated EAF is operating, except as otherwise provided in the O&M Plan.

         18. Installation and Operation of Bag Leak Detection System.

         Within one (1) year of the Effective Date of this Decree, Defendant shall install, commission and calibrate a bag leak detection system with light scattering technology ("BLDS") located at the outlet of each baghouse associated with EAF Nos. 6 and 7. Within five (5) years of the Effective Date of this Decree, Defendant shall install, commission and calibrate a BLDS located at the outlet of the baghouse associated with EAF No. 5, and also with EAF No. 4, if EAF No. 4 is not permanently removed from service within five (5) years of the Effective Date of this Decree.

         19. Within ninety (90) days of the Effective Date of this Decree, Defendant shall submit to EPA bid specifications for a scope of work to install a BLDS located at the outlet of each baghouse associated with EAF Nos. 6 and 7.

         20. No later than one (1) year of the Effective Date of this Decree, or as otherwise approved in writing by EPA, Defendant shall complete installation of each BLDS associated with EAF Nos. 6 and 7.

         21. Within four (4) years of the Effective Date of this Decree, Defendant shall submit to EPA bid specifications for a scope of work to install a BLDS located at the outlet of the baghouse associated with EAF No. 5, and also with EAF No. 4, if EAF No. 4 is not permanently removed from service within five (5) years of the Effective Date of this Decree.

         22. No later than five (5) years from the Effective Date of this Decree, or as otherwise approved in writing by EPA, Defendant shall complete installation of the BLDS associated with EAF No. 5, and also with EAF No. 4, if EAF No. 4 is not permanently removed from service within five (5) years of the Effective Date of this Decree.

         23. Defendant shall operate the BLDS at all times that its associated EAF is operating.

         24. Within ninety (90) days of the Effective Date of this Decree, and consistent with Defendant's O&M Plan (Appendix B), Defendant shall conduct daily clean-side inspections of every operating EAF baghouse, and shall document observations of these inspections. Defendant shall properly repair and perform necessary maintenance noted as a result of each clean side inspection. Clean side inspections shall continue for each EAF until a dedicated BLDS system is installed on each operating EAF.

         25. The installation and operation of each BLDS at the Facility shall comply with the requirements in 40 C.F.R. §§ 63.7710(b)(4) and (5), ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.