Environmental Results Through
Smart
Enforcemen
-------
U.S. Environmental Protection Agency
Office of Enforcement and Compliance Assurance (2201A)
Washington, D.C.
EPA300-R-03-002 http://www,epa,gov/compliance
Printed on paper that contains at least 30 percent postconsumer fiber.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
Contents
From the Administrator[[[2
From the Assistant Administrator a
What We Do[[[5
Environmental Results at a Glance 14
Smart Enforcement Produces Environmental Results ...19
- Cleaner Air 21
- Purer Water 30
- Better Protected Land 42
-------
EPA Administrator
Christie Whitman
For more than 30 years, the mission of the U.S. Environmental Protection Agency
has been to protect human health and the environment. Although the condition
of America's environment has improved over the past 30 years, much work remains
to be done. Our goal is clear: to make our air cleaner, our water purer, and our land
better protected. The measures of our success are the environmental results that
we achieve.
The environmental results of our enforcement and compliance assurance program
are key to our success, and in FY 2002 they are significant. Millions of pounds
of harmful pollutants will be reduced, cleaned up or treated, and all of us will enjoy
cleaner air, water and land.
I am very proud of these accomplishments, the way we achieved these res ilts and
the dedicated people who produced them. We focused our resources *. n <-"•- ^s .hat
posed the most serious threats to public health and the environment. Ve jsed
integrated strategies and employed a combination of tools tailoreo ^ specific
environmental problems or public health threats. EPAs strate s improved
environmental management, maximized compliance and increased environmental
protection. Much of this work involved partnerships v ih > c State, local, community
and Tribal counterparts. EPA's results make it clear that ,ve jvill assist those who
need our help and we will prosecute those who fail to ^ .iply with the law.
As we move forward to meet the next generation of environmental challenges,
ensuring compliance with our environmental laws "ill remain vital to accomplishing
our mission and achieving the goals of cleaner ">lr ™ irer water and be
land. We will all need to work together to achie": ~~Y:ronmental progre n
and in the future.
-------
! am very pleased to report the accomplishments and environmental results of our
enforcement and compliance assurance program for FY 2002,
Our goal is to implement a smart enforcement program that delivers environmental
results. A smart program uses a mix of integrated strategies, partnerships and
innovative approaches to provide cleaner air, purer water and better protected land.
An integrated approach considers the appropriate tools to use when addressing
environmental problems, and uses data analysis and other relevant information
to marshal and leverage resources to target significant noncompliance and address
the associated environmental risks. It also incorporates environmental justice into
every program, policy and activity that our office implements. No community should
have to bear more than its fair share of environmental burden. Our mission
to protect human health and the environment applies to everyone.
In FY 2002, our program achieved significant results, and included precedent-
setting civil and criminal enforcement actions that address serious environmental
problems. The work of the enforcement and compliance assurance program
produced cleaner air, water and land.
I would like to highlight a few of our environmental accomplishments and the
results we achieved over the past year.
As a result of EPA's enforcement settlements in FY 2002, nearly $4 billion in
injunctive relief will be spent to correct violations, restore the environment
and prevent additional damage for future generations. This is an enormous
amount of money that is going directly to clean up and enhance protection of
our air, land and water for future generations. For example, under one settlement
agreement, the company agreed to spend over $337 million to install state-of-
the-art pollution controls to eliminate the vast majority of sulfur dioxide and
nitrogen oxide emissions from two of its coal-fired power plants.
"Smart enforcement uses the
most appropriate enforcement
or compliance tools to address
the most significant problems
to achieve the best outcomes."
EPA Administrator
John Peter
-------
EPA's inspections increased in FY 2002 a£
on EPA inspections in the field.
we continued to piace a high priority
$4 billion in injunctive relief
to correct violations, restore
the environment and prevent
additional damage
40 percent increase over 2001
in criminal initiated
26 percent increase in compa-
nies self-reporting violations
2,8 billion gallons of contami-
nated groundwater treated
3 million people will be served
by drinking water systems that
will be brought into compliance
34 percent increase in
Compliance Assistance
Center usage
In FY 2002, there were 674 criminal cases initiated—this is a 40 percent
increase over 2001. The 674 cases include 484 environmental crime cases
and 190 counter-terrorism cases.
The number of companies self-disclosing violations increased 26 percent,
representing a greater number of companies coming into compliance with
environmentai iaws.
In FY 2002, for the first time, we reported a wider range of results achieved
through our enforcement actions in the areas of groundwater, wetlands and
drinking water protection. Approximately 2.8 billion gallons of contaminated
groundwater will be treated and another 3 million people will be served by
drinking water systems that will be brought into compliance as a result of
our enforcement efforts.
In FY 2002, EPA's 10 Internet-based Compliance Assistance Centers made
technical assistance available to more than 673,000 users, an increase of
34 percent from FY 2001. Based on the most recent survey, 85 percent of
users took actions to reduce environmental harm and risk, waste, wastewater
and air emissions or conserved water, energy and other natural resources as a
result of the assistance and information obtained from these Centers, We now
have 13 Centers in operation.
It is also important to note that EPA's criminal enforcement program worked
tirelessly and effectively following September 11tn with other federal agencies
on homeland security investigations, participated in national events to ensure public
safety and assisted in the anthrax investigation at the U.S. Capitol. This work
was carried out in addition to the many new cases initiated and the successful
prosecution of environmental crimes.
In the future we will continue to build a smart enforcement program by using all
of the enforcement and compliance tools at our disposal, developing new tools,
forging strategic partnerships, integrating environmental justice and encouraging
innovation. I am proud of our FY 2002 accomplishments and am grateful for the
dedication and hard work of our staff, as well as our partners who share the goal
of cleaner air, purer water and better protected land.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
Data
What We Do
Our Mission.:
Our mission is to improve the environment and protect human health by
ensuring compliance with environmental requirements, preventing pollution
and promoting environmental stewardship. Our program is comprised of
dedicated individuals with diverse backgrounds and skills that work to
address serious environmental harm and risk to public health caused
by environmenta! noncompliance.
EPA is committed to using sound science, common sense, and our collective
experiences to enhance the environment and to protect public health. In the
context of the enforcement and compliance assurance program, these princi-
ples mean that we must be "smart" in the work that we do. Smart enforcement
embodies a common sense approach to problem solving and decision making.
Simply put, smart enforcement is the use of the most appropriate enforcement
or compliance tools to address the most significant problems to achieve the
best outcomes. We employ integrated strategies that use compliance assis-
tance and incentives, monitoring and data analysis, and civil and criminal
enforcement to achieve environmental results.
1?
Enforcement
Addressing significant
environmental, public health
and compliance problems;
Using data to make strategic
decisions for better utilization
of resources;
Using the most appropriate tool
to achieve trie best outcome;
Assessing the effectiveness of
program activities to ensure continu-
ous program improvement and
desired program performance; and
Effectively communicating the
environmental, public health and
compliance outcomes of our activities
to enhance program effectiveness,
-------
What We Do
of
of aid
O.C.
"I am very proud of the work
EPA has done to partner with
industry, academic institutions,
environmental groups and
other agencies to develop
sector-specific Compliance
Assistance Centers,"
Gom.plla.nce Assistance:
Compliance assistance is a valuable tool we use to improve the regulated community's
compliance with environmental regulations. We strategically target where regulated
entities are having problems understanding how to comply with regulatory require-
ments and provide educational tools and other assistance such as workshops and on-
site visits to help increase understanding of regulatory obligations, improve environ-
mental management practices and reduce pollution.
Our support of industry and government sector Internet-based Compliance Assistance
Centers expands the reach of our compliance assistance efforts. In FY 2002 people
visited the Compliance Assistance Centers more than 673,000 times, an increase of
34 percent from FY 2001. These visits resulted in over 2,5 million requests for compli-
ance-related information. Based on a recent survey of our Compliance Assistance
Center users, approximately 85 percent said that they took actions to reduce environ-
mental harm and risk, waste, wastewater and air emissions or conserved water, ener-
gy and other natural resources as a result of using the Centers.
Gom.pli.ancc Incentives, Voluntary
Programs and Innovative Approaches:
Other tools that we use include compliance incentives, voluntary programs and
innovative approaches designed to motivate better environmental compliance and
performance by individuals, communities, businesses and industry sectors. We pro-
mote self-policing and improvement through incentives, such as EPA's Audit and Small
Business policies and the inclusion of environmental management systems
in enforcement settlements.
The enforcement and compliance assurance program developed and implements
EPA's Audit Policy, which provides incentives for companies to develop environmental
audit and management systems. When companies voluntarily discover and promptly
disclose environmental violations, EPA will waive or substantially reduce gravity-based
civil penalties. In addition, for those meeting the policy's conditions, EPA will not rec-
ommend the companies for criminal prosecution. In FY 2002, there was a 26 percent
increase in the number of companies that self-disclosed environmental violations.
-------
Environmental Results Through
Smart Enforcement
Our Small Business Compliance Policy provides incentives for small businesses to use
compliance assistance and disclose and correct environmental violations. We work
with small business compliance assistance providers to develop tools small businesses
can use to understand applicable environmental requirements and take advantage of
the flexibility offered by the policy.
The enforcement and compliance assurance program plays a leading role within EPA
to actively promote environmental management systems (EMSs) for industry, state and
local governments and federal facilities. EMSs provide organizations of all types with a
structured approach for managing environmental and regulatory responsibilities to
improve overall environmental performance, including areas not subject to regulation
such as resource conservation and energy efficiency.
Another voluntary and innovative program is the National Environmental Performance
Track Program (NEPT). NEPT is EPA's premier incentive and recognition program
designed to encourage and reward top environmental performers. NEPT companies must
demonstrate a solid record of environmental compliance, have an established EMS in
place and identify specific commitments to achieve superior environmental performance.
Additionally, the companies must certify compliance annually and undertake public
outreach and report periodically on their environmental performance. The enforcement
and compliance assurance program works closely with EPA's Office of Policy, Economics
and Innovation to recognize the commitments made by these companies.
Voluntary and innovative initiatives like EPA's Audit and Small Business Compliance
Policies, promoting the use of EMSs and recognizing NEPT companies, helps to
increase environmental performance, accountability and responsibility, and allows EPA
to focus our enforcement and compliance assurance resources on significant areas
of environmental, public health and compliance problems.
-------
What We Do
S™* I. .*. V ..
L^om pi IQ nce/%ssi-Sf?
Centers
Compliance Assistance Centers
•..'••"•. .-Link*
The enforcement and compliance assurance program has sponsored partnerships
with industry, academic institutions, environmenta! groups, and other Federal and
State agencies to establish Compliance Assistance Centers for a variety of industry
and government sectors. Through these centers, businesses in these sectors learn
about their environmental obligations, improve compliance and find cost-effective
ways to comply. The Compliance Assistance Centers can be accessed at
.
CCAR-GreenLink®: Helps the automotive service and repair community identify
flexible, common sense ways to comply with environmental requirements
.
ChemAIIiance: Provides innovative Web site features to direct chemical manufacturers
to information resources and plain language compliance assistance material
.
Local Government Environmental Assistance Network (LGEAN): Serves as a "first-
stop-shop" by providing environmental management, planning and regulatory informa-
tion for local government officials, managers and staff .
National Agriculture Compliance Assistance Center (Ag Center): Serves as the
"first stop" for information about environmental requirements that affect the agriculture
community . (This is a government-run center.)
National Metal Finishing Resource Center (NMFRC): Provides comprehensive
environmental compliance, technical assistance and pollution prevention information
to the metal finishing industry .
Paints and Coatings Resource Center: Provides regulatory compliance and pollution
prevention information to organic coating facilities, industry vendors and suppliers
and others .
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
'. ...Sfa
Printed Wiring Board Resource Center: Provides regulatory compliance and pollu-
tion prevention information to printed wiring board manufacturers, industry vendors
and suppliers and others .
Printers' National Environmental Assistance Center (PNEAC): Provides compliance
and pollution prevention fact sheets, case studies and training, as well as two e-mail
discussion groups on technical and regulatory issues .
Transportation Environmental Resource Center (TERC): Provides compliance assis-
tance information for each mode of transportation—air, shipping and barging, rail and
trucking .
Federal Facility Compliance Assistance Center (FedSite): Provides information on
environmental regulations, pollution prevention and policies affecting Federal agencies
,
Environmental Compliance for Automotive Recyclers Center (ECARcenter):
Provides information on environmental regulations that apply to automotive recycling
facilities ,
Construction Industry Compliance Assistance Center (CICAcenter): Provides plain
language explanations of the environmental requirements for the construction industry
.
Border Compliance Assistance Center: Provides information to help individuals that
import hazardous waste into the United States from Mexico understand and comply
with environmental regulations .
9
WWmpfW8MS*Of||
-------
What We Do
10
p Compliance Monitoring
Data Analysis:
A key component of our work involves the effective management and use of compli-
ance monitoring, data analysis and other information sources. The enforcement and
compliance assurance program collects a wide array of compliance monitoring and
enforcement data. Compliance monitoring includes all of the activities EPA conducts to
determine whether an individual or group of facilities is in compliance with environmen-
tal laws. In FY 2002, EPA conducted over 17,000 compliance inspections, performed
over 300 complex investigations under nine different statutory programs, responded to
over 10,000 citizen complaints and assisted the States and Tribes with over 1,000
compliance inspections.
Smart enforcement means analyzing this compliance monitoring data to:
4 Identify and select priorities for the enforcement and compliance program;
4 Identify environmental problems and patterns of noncompliance that may need to
be addressed through a targeted initiative;
4 Identify and address environmental justice problems in communities in which
significant noncompliance is occurring;
4 Assess the state of compliance in a particular sector or population of
regulated entities;
4 Measure environmental outcomes resulting from program activities;
4 Measure progress addressing priorities, initiatives and annual performance
goals; and
4 Provide the public access to enforcement and compliance data.
For example, in FY 2002, EPA collected information about the results of compliance
inspections, as required by the Government Performance and Results Act. Using
inspection conclusion data sheets (ICDS), we collected information on compliance
deficiencies observed, actions taken to address deficiencies and compliance
assistance provided during the inspections.
-------
Environmental Results Through
Smart Enforcement
The evaluation and assessment of this data helps us to provide compliance
assistance where needed and target sectors for enforcement where noncompliance
is widespread.
Data obtained from ICDS and other sources are also used to develop databases such
as the Maximum Achievable Control Technology (MACT) Prioritization database for
MACT standards, which are standards designed to reduce the amount of air toxics
in the environment. This database is used to assist in determining how to focus
regional compliance and enforcement resources to ensure compliance with the air
toxics program. The database enables users to tailor requests on facilities subject to
specific MACT standards, using a number of different criteria, including the number of
facilities, Toxic Release Inventory data, inspection and violation frequency, compliance
dates, source complexity, rule complexity and enforcement actions.
Civil Criminal Enforcemenl:
A strong commitment to civil and criminal enforcement is vital to a smart enforcement
and compliance assurance program. EPA and its partners, the State, local and Tribal
governments, along with the Department of Justice, work together to assure that our
nation's environmental laws are followed and achieve the environmental improvements
needed to protect human health and the environment. Through data analysis, we focus
our civil enforcement efforts on significant noncompliers. These are the worst polluters,
based on the history and magnitude of their violations.
11
EBA's criminal Investigators respond
to the attack at the Pentagon on
September 11, 2001.
-------
What We Do
^JSS
/.v-w: i-*
12 a
One very important aspect of what we do is to inte-
grate environmental justice throughout our enforce-
ment and compliance assurance program. Environ-
mental Justice is the fair treatment and meaningful
involvement of all people regardless of race, color,
national origin or income with respect to the develop-
ment, implementation and enforcement of all environ-
mental laws, regulations and policies. The enforcement
and compliance assurance program ensures that envi-
ronmental justice concerns are taken into considera-
tion in the implementation and enforcement of envi-
ronmental laws, including through the implementation
of supplemental environmental projects (SEPs) associ-
ated with enforcement actions against violators of
environmental laws in environmental justice communi-
ties, We also provide compliance assistance, training,
grants and outreach to environmental justice commu-
nities to improve compliance, promote environmental
stewardship and achieve results,
One of the most important things we do in an enforcement action is make the polluter
change the process or practice that is causing the environmental probiem. This is
called injunctive relief. In FY 2002, civil enforcement actions resulted in almost
$4 billion in injunctive relief to restore the environment and prevent additional damage
for future generations. Additionally, enforcement settlements included numerous
significant supplemental environmental projects (SEPs). SEPs are environmentally
beneficial projects that a violator agrees to perform in addition to injunctive relief and
the payment of penalties. Through SEPs, a company can improve the quality of life for
the surrounding community. For example, in FY 2002 the City of Baltimore agreed to
implement a $2.72 million SEP in settlement of a Clean Water Act case to improve
water quality in the Chesapeake Bay.
Our approach in all enforcement actions is to seek appropriate injunctive relief to return
violators to compliance and minimize or eliminate the potential for repeat violations by
addressing the root cause of noncompliance. Where the violations
appear to be the result of a wholesale or systematic failure of
management, we seek injunctive relief that is sufficient to correct
the problems. In such circumstances, we may include an
Environmental Management System (EMS) as part of a consent
decree or settlement to promote a systematic approach to under-
standing and managing all of the facilities' environmental impacts
through appropriate policies, resources, procedures and process-
es. To date, EMSs in enforcement settlements have impacted over
258 facilities, EMSs may also be included in an enforcement set-
tlement as part of a SEP.
Criminal actions are pursued against those who callously
disregard our nation's environmental laws and who put the
public at serious risk when they do so. Persons convicted of
environmental crimes may be sentenced to jail, fined, ordered
to pay restitution and placed on probation. In FY 2002, criminal
violators received 215 years of prison time for their environmental
crimes and the United States assessed over $62 million in
criminal penalties.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
Integrated Strategies
Using a!! available tools to improve compliance and increase environmental protection,
we use integrated strategies to address environmental compliance problems. An inte-
grated strategy involves a strategic approach, which gives thoughtful, up front consid-
eration to what tool or tools—compliance assistance, incentives, monitoring, or
enforcement—to use when addressing identified environmental problems. These
strategies contain clear measures to evaluate their effectiveness in resolving compli-
ance problems and achieving environmental results.
Superfund Enforcement Program:
Dedicated to Implementing the
Enforcement First Policy
Superfund cleanup is paid for either by the parties responsible for contamination or by
the Superfund Trust Fund. Under the Superfund law, EPA is able to make those compa-
nies and individuals responsible for contamination at a Superfund site perform and pay
for the cleanup work at the site. EPA has a longstanding policy to pursue "enforcement
first" throughout the Superfund cleanup process. This policy promotes the "polluter
pays" principle and helps to conserve the resources of the Superfund for cleanup of
those sites where viable responsible parties do not exist. In FY 2002, EPA secured pri-
vate party commitments for cleanup and cost recovery that exceeded $627 million.
-------
Environmental |ff
F 3'
Results at a Glance
— Over the year we worked with our State, local and Tribal partners to
1 4 provide compliance assistance and ensure compliance with the Federal
environmental laws. The measures of our success are the environmental
results that we achieved. The results in FY 2002 are impressive and translate
into cleaner air, water and land for millions of people. Here are a few of the
program's major accomplishments in FY 2002:
Making Polluters Accountable:
4 Violators will pay nearly S4 billion in injunctive relief that will go directly toward the
cleanup of our environment, pollution abatement equipment and other necessary
actions to improve the environment.
*• EPA secured private party commitments that exceeded $627 million for cleanup
and cost recovery of contaminated Superfund sites.
4 Violators committed to spend almost $58 million for supplemental environmental
projects to benefit local communities for additional environmental projects
or improvements.
*• EPA imposed $26 million in administrative penalties in FY 2002, an increase of
$2 million from the FY 2001 amounts.
4 In FY 2002, there were 674 criminal cases initiated, a 40 percent increase
over FY 2001.
4 Criminal sentences in FY 2002 were the second highest on record; violators
received 215 years of prison time for their environmental crimes.
*• Criminal violators paid in excess of $62 million in criminal penalties.
-------
Environmental Results Through
Smart Enforcement
Environmental Results Through
15
Cleaner Air, Purer Water and Better Protected Land
For the first time, we are able to estimate and report on the gallons of contaminated groundwater that
will be treated as a result of EPA enforcement actions. The results are impressive: an estimated
2,8 billion gallons of groundwater will be treated. Our new measures also demonstrate that more than
3 million people will be served by drinking water systems that will be brought into compliance because
of our FY 2002 enforcement actions.
-------
at a
Twenty Pollutants With Reductions*
for Standards —FY
4,218,000
Lead
§,175,000
Oil 3,511,000
BOD
5,530,000
Ammonia
1,473,100
17,144,000
11,711 JOB
1S,i40JOO
SilMs
21,214,000
«Dafa current as of May 2003.
Oil i « 2,118,000
Electroplating Treatment Sludge • 2,415,000
Silfuric Acid • 1,092,000
Fluoride *
(CO) • 714,000
Fuel *
Hfdrogen Sulfide »
•
»
Zinc • 317,000
* This ranking does not include contaminated
soil or groundwater. The numbers reported
represent the pounds of pollutants reduced.
-------
Fiscal Year
Enforcement and Compliance
surance Accomplishments Report
Preventing and Reducing Pollution:
In FY 2002, EPA secured commitments for the reduction of more than an estimated
260 million pounds of harmful pollutants, 513 million pounds of contaminated soil
or sediment treated and 2,8 billion gallons of groundwater treated.
Of the estimated 260 million pounds of pollutants reduced, some of the specific
pollutants reduced are:
4 37 million pounds of S02
4 22 million pounds of total suspended solids
4 16 million pounds of nitrogen
4 11 million pounds of volatile organic compounds
Preventing and Reducing Pollution Through
Compliance Monitoring:
In FY 2002, EPA began collecting information on EPA inspection outcomes at facilities
subject to the Clean Air Act (CAA), Clean Water Act (CWA), the Lead Disclosure Rule
under the Toxic Substances Control Act (TSCA) and the Good Laboratory Practices
programs. This effort involved conducting approximately 4,000 inspections.
The results included:
4 76 percent of the facilities inspected received compliance assistance from
EPA inspectors.
Restoring the Environment:
In FY 2002, as a result of enforcement actions violators will:
4 Return to compliance drinking water systems that serve over 3 million people
17
-------
at a
jJH Providing Compliance Assistance, Information
and Incentives
The enforcement and compliance assurance program has provided compliance assis-
tance and information to over 1 million entities through Internet-based Compliance
Assistance Centers, tools, workshops and on-site visits.
*• For example, over 673,000 visits to EPA's Internet-based Compliance Assistance
Centers occurred in FY 2002, an increase of 34 percent from the previous year,
Visitors made over 2.5 million requests for Web pages and targeted compliance
documents. In a recent survey, users of the Centers reported a high degree of
satisfaction with the services provided.
4> The usage of the National Environmental Compliance Assistance Clearinghouse
increased significantly since its launch in 2001 with a 47 percent increase
in the average number of monthly users compared to FY 2001,
4- The number of companies that self-disclosed environmental violations under
EPA Audit Policy increased by 26 percent from FY 2001,
-------
Environmental Results Through
Smart Enforcement
Smart Enforcement
Produces
Environmental Results
The enforcement and compliance
enforcement to air, and land
for all of us to enjoy. Smart enforcement a mix of such as
compliance monitoring, and incentives, innovative
and civil and criminal enforcement. Working in partnership with and
Tribal governments, communities and other EPA
and the significant environmental and public
health problems and strategically its resources, taking integrated
approaches to trie environmental outcomes.
EPA works with stakeholders to select national enforcement and compliance program
priorities by identifying patterns of noncompliance that create significant environmental
or public health risk associated with regulated sectors, particular pollutants and
specific regulatory requirements. The Agency's 10 Regions support national priorities
but also work with State, local and Tribal partners to identify and establish Regional
and State priorities that are important to their specific geographic location. Regions
provide critical resources to address the national priorities while maintaining the
flexibility to direct resources to address Regional priorities. State, local and Tribal
governments also play a crucial role in implementing the national environmental
enforcement and compliance assurance program and producing the environmental
results highlighted in this report.
19
-------
20
EPA employs smart enforcement and a robust stakeholder process in selecting its
national enforcement and compliance priorities. We consider patterns of noneomplianee
and environmental or public health risk with regulated sectors, particular
pollutants and specific regulatory requirements. The 10 EPA Regional Offices support
national priorities and also identify and Regional and priorities.
In FY 2002, EPA's national enforcement and compliance priorities were:
4> Clean Air Act/New Source Review 4 Clean Water Act/Wet Weather
^ Petroleum Refinery Sector 4 Safe Drinking Water Aet/Microbial Rules
4 Clean Air Act/Air Toxics 4 Resource Conservation and Recovery
Act/Permit Evaders
-------
Fiscal Year 2002
Enforcement and Compliance
Assurance Accomplishments Report
Our commitment to environmental results is reflected in our work to develop program
accountability measures that focus on environmental results. For example, in FY 2002,
for the first time, we are able to estimate and report on the gallons of contaminated
groundwater that will be treated as a result of our enforcement and compliance assis-
tance actions. This report focuses on the significant results achieved through smart
enforcement and compliance assistance efforts undertaken by EPA and its State, Tribal
and community partners.
Gleaner Air
Air pollution threatens the health of human beings and other living things on our planet.
While often invisible, pollutants in the air create smog and acid rain, cause cancer or
other serious health effects, diminish the protective ozone layer in the upper atmos-
phere and contribute to the potential for world climate change. Almost 170 million tons
of pollution are emitted into the air each year in the United States. Approximately 133
million people live in areas where monitored air quality is unhealthy,
New Source Review
The New Source Review (NSR) requirements in the Clean Air Act (CAA) are intended
to ensure that the construction of new sources or modification of existing sources do
not jeopardize the attainment of the national ambient air quality standards (NAAQS)
in nonattainment areas, which are areas that do not meet the national air quality
standards. The Prevention of Significant Deterioration (PSD) requirements ensure that
areas with relatively clean air that meet the NAAQS are not significantly degraded by
the influx of new air pollution sources. Failure to comply with the CAA's NSR and/or
PSD requirements results in inadequate control of emissions and contributes thou-
sands of uncontrolled tons of pollution each year. In FY 2002, EPA demonstrated its
continued commitment to pursue NSR/PSD violations and secured significant reduc-
tions of nitrogen oxides (NOy), sulfur oxides (SOy), volatile organic compounds (VOCs),
and particulate matter (PM), particularly in the power plant, wood products and petro-
leum refinery sectors.
21
"Our FY2002 accomplishments
highlight examples of the
environmental results that can
be achieved through effective
Federal, State, Tribal and local
community partnerships and a
smart enforcement program,"
EPA Assistant Administrator
John Peter Suarez
-------
22
Power Plant Sector
For years, many power plants have operated without the best available emissions
control technology, increasing air pollution near the facilities and far downwind of
the plants, along the Eastern Seaboard. The utilities' failure to install this equipment
resulted in tens of millions of tons of SOX, NOX, and PM being emitted into the air
and adverse environmental and health impacts. In addition to detrimental health effects
on asthma sufferers, the elderly and children, power plant emissions are linked to
forest degradation, waterway damage, reservoir contamination and deterioration
of stone and copper in buildings.
S02 and NOX Emissions Reduced Significantly
In January 2002, EPA, the Department of Justice and the State of New Jersey
announced a major settlement involving PSEG Fossil LLC under which the company
will spend more than $337 million to install state-of-the-art pollution controls to
eliminate the vast majority of SO, and NOX emissions from its Hudson and Mercer
coal-fired power plants in Jersey City and Hamilton, New Jersey. The settlement
resolved Federal and State allegations that PSEG Fossil LLC unlawfully operated the
Hudson and Mercer plants and modified those plants without installing the necessary
pollution controls and obtaining proper permits required by the NSR program.
The combined effect of the pollution controls will reduce the company's emissions
of S02 by 90 percent and its emissions of NOX by more than 80 percent. Overall
reductions will be at least 36,000 tons of S02 and 18,000 tons of NOX per year. These
decreases represent 32 percent of all the S02 and 20 percent of all the NOX emitted
from stationary sources in New Jersey, and 19 percent of all the SO, and 5 percent of
all the NOv from all sources in the State, including cars and trucks. In addition to the
penalty, PSEG agreed to spend $6 million on environmental mitigation projects, includ-
ing mercury controls, carbon dioxide (CO,) controls and control of landfill gases.
-------
Environmental Results Through
Smart Enforcement
Wood Products Sector
Major Wood Products Company to Reduce Harmful Air Emissions
up to 95 Percent
In March 2002, EPA and the Department of Justice announced the settlement of
the case against Boise Cascade Corporation, a major wood products producer.
The State of Louisiana joined in the settlement. The United States claimed that Boise
Cascade modified and expanded its panel board operations over the past two decades
without installing the proper air pollution control equipment to reduce harmful emissions
as required by the PSD regulations and State rules. The consent decree requires reduc-
tions of up to 95 percent of the harmful emissions from the company's eight plywood
and particle board plants located in Oregon, Washington, Louisiana and Idaho. The set-
tlement is expected to reduce emissions of VOCs and PM by an estimated 2,166 tons
per year. Boise Cascade must install state-of-the-art air pollution control equipment at
an estimated cost of §15 million over the next three years at its Medford and Elgin,
Oregon, operations and the Florien and Oakdale plants in Louisiana. The company will
also pay $4.35 million in civil penalties and spend another $2.9 million in supplemental
controls to reduce emissions at the Yakima and Kettle Falls, Washington, plants and to
reduce air emissions at the Medford, Oregon, plywood facilities.
ef
EPA 10
"I like helping to protect the
environment and enjoyed work-
ing on the Boise Cascade case.
The settlement resulted in the
installation of state-of-the-art
pollution control equipment to
reduce air pollution at many of
the Boise Cascade facilities."
-------
"The environment aid public
health will benefit greatly from the
settlements with the refining
industry. Significant strides have
been made towards resolving air
pollution problems across the
refining industry as a result of
certain industry members enter-
ing into comprehensive settle-
ment agreements with the
Federal and State governments."
EPA Assistant Administrator
John Peter Suarez
Petroleum Refinery Sector
Addressing air emissions and unpermitted releases from refineries continues to be a
high priority for EPA. Analyzing the available data, EPA determined that this sector
emits significant amounts of VOC, S02 and NOX emissions. Refineries also emit signifi-
cant levels of hazardous air pollutants, such as benzene, which contribute to public
health and environmental problems. These pollutants are covered by the NSR and air
toxic requirements of the CAA.
This administration has made significant efforts to assure the petroleum refining indus-
try's compliance with major provisions in the CAA.
Petroleum Refiners to Reduce Air Emissions in Five
In FY 2002, EPA and the Department of Justice reached two comprehensive environ-
mental settlements with Conoco Inc., Navajo Refining Company and Montana Refining
Company to resolve NSR and PSD violations, new source performance standard
requirements, leak detection and repair requirements governing fugitive emissions and
benzene emissions from wastwater treatement plants. The States of Louisiana,
Oklahoma, Montana, Colorado and New Mexico joined in the settlements, which are
part of EPAs national effort to reduce air emissions from refineries. The settlements will
reduce harmful air emissions from seven petroleum refineries by more than 10,000
tons per year and will mean improved air quality for the people who live near them.
Conoco will spend an estimated $95 to $110 million to install the best available tech-
nology to control emissions from stacks, wastewater vents, leaking valves and flares
throughout its refineries, Conoco will also pay a $1,5 million civil penalty and spend
about $5 million on environmental projects in communities around the company's
refineries, Navajo Refining Company and Montana Refining Company have agreed to
spend an estimated $16 to $21 million to undertake similar projects, pay a $750,000
civil penalty and spend about $1.5 million on environmentally beneficial projects.
Navajo Refining and Montana Refining are subsidiaries of Holly Corporation.
During the past few years certain petroleum refiners have voluntarily entered into global
discussions with the United States. In addition to Conoco Inc., Navajo Refining and
Montana Refining, these companies include Koch Petroleum, BP Exploration and Oil,
Motiva Enterprises, Equilon Enterprises LLC, Deer Park Refining Limited Partnership
-------
Fiscal Year 2002
Enforcement and Compliance
Assurance Accomplishments Report
and Marathon Ashland Petroieum LLC, Together, these settlements provide for a com-
prehensive and cooperative approach to addressing environmental problems across
the industry.
Refiner Required to Spend Over $12 Million to Reduce Pollution
EPA, the Department of Justice, the U.S. Attorney's office in Madison, Wisconsin, and
the Wisconsin Department of Justice announced a settlement with Murphy Oil USA,
Inc. in FY 2002 which will dramatically cut S02 emissions from the company's Superior,
Wisconsin, refinery and improve Murphy Oil's programs to monitor and repair leaks of
VOCs and to prevent oil spills. After a 10-day trial, the U.S. District Court found
Murphy Oil liable for substantial violations of the PSD permitting requirements and
other CAA emission limits, as well as water permit, oil spill containment and waste
handling requirements. Murphy Oil also agreed to pay a $5.5 million civil penalty, the
largest penalty ever leveled in Wisconsin in an environmental enforcement case.
25
Fetef
of
Office cf and
Cenpl lance
D.C.
"My work at EPA is both chal-
lenging and rewarding. It
involves identifying violations of
the Clean Air Act, negotiating
settlements and recommending
the appropriate air pollution con-
trol technologies to be installed.
These efforts result in directly
measurable reductions in air pol-
lution, particularly in the work I
did on the Petroleum Refinery
Sector Initiative."
-------
"in sum, environmental justice
is the goal to be achieved for all
communities and persons
across this nation,"
EPA Administrator
Christie Whitman
Air Toxics
Toxic air pollutants, also known as hazardous air pollutants, are those pollutants that
are known or suspected to cause cancer or other serious health effects such as repro-
ductive effects or birth defects or adverse environmental effects. In determining where
to deploy our enforcement and compliance assistance resources, we focus on reduc-
ing exposure to toxic air emissions that present high risk to the public. In FY 2002, two
of the toxic air emissions areas we focused our enforcement resources on were gaso-
line refueling operations and the removal of asbestos.
Hazardous Air Emissions to be Reduced From Gasoline
Refueling Operations
In FY 2002, EPA Region 2 filed a consent agreement and final order settling a CM
administrative action against Cumberland Farms, Inc., which operates a network of
over 1,000 retail stores and gas stations in the Northeast and Florida. Cumberland
Farms agreed to undertake a supplemental environmental project worth over $2 million
as part of a consent agreement to resolve CAA violations at 80 of its gasoline stations
in Connecticut, Massachusetts and Rhode sland, many of which resulted in excess
hazardous emissions. EPA worked with the State of Massachusetts, which performed
inspections in support of EPA's action. Under the SEP, Cumberland will upgrade its
vapor recovery systems with more effective systems. The company agreed to consider
prioritizing the upgrade in environmental justice communities, which are disproportion-
ately impacted with adverse environmental conditions, and paid a cash penalty
of $90,000,
Asbestos
Another area of focus in FY 2002 was the illegal removal of asbestos. Asbestos is a
carcinogen. The inhalation of airborne asbestos fibers released through improper
removal can cause cancer, a lung disease known as "asbestosis" (scarring of the
lungs) and mesothelioma, a cancer of the chest and abdominal cavity. Only workers
who have been properly trained and who have proper safety clothing and equipment
can lawfully remove asbestos. Unfortunately, many defendants in asbestos cases have
hired untrained workers to do asbestos demolition work. In FY 2002, EPA brought a
number of cases against individuals and companies who violated the CAA require-
ments for the safe handling of asbestos.
-------
Environmental Results Through
Smart Enforcement
EPA provides compliance assistance to the regulated community using tools such
as plain English guidance and compliance assistance workshops. For example, EPA
developed the plain English tool for the regulation of air toxics under the pharma-
ceutical IV1ACT rule. This tool was developed to assist the pharmaceutical industry's
understanding of the MACT requirements and the various compliance options that
are available. The Agency also provided workshops designed to inform small- to
medium-sized owners and operators of common violations involving prevention of
significant deterioration and NSR, flaring, benzene and leak detection and repair at
their facilities.
Illegal Removal of Curtailed to Prevent
Contamination
As a result of EPA's criminal enforcement efforts, in April 2002, six employees of AAR
Contractors, Inc. pled guilty in Federal court in Syracuse, New York, to felonies arising
from the removal of asbestos. Specific individual charges included violation of the
CAA, TSCA, and the Racketeer Influenced Corrupt Organization Act (RICO). The crimi-
nal prosecution by the Department of Justice and the U.S. Attorney, Northern District
of New York, Syracuse, covered a 10-year conspiracy to illegally remove asbestos at
numerous buildings in upstate New York and included charges of intentionally contami-
nating buildings with asbestos in order to defraud owners and obtaining false asbestos
lab tests.
-------
28
"/ e/T/oy tfie challenge of put-
ting together the right mix of
scientific, engineering and
legal information to accom-
plish a successful outcome.
By successful, I mean our
activities result in a change in
the way people think about
designing, operating and
maintaining industrial facilities,
such that the minimization of
emissions into the atmosphere
is always considered."
Patric McCoy
Environmental Scientist
Air and Radiation Division,
Air Enforcement and
Compliance Assurance Branch
EPA Region 5, Chicago, Illinois
Protecting Stratospheric Ozone
The depletion of stratospheric ozone is a global environmental problem. Ozone deple-
tion can result in an increase in skin cancer, cataracts and possible immune system
impairments among humans, as well as a reduction in crop yields and diminished pro-
ductivity of oceans. The CM phases out the production and consumption of certain
types of ozone-depleting substances, requires recycling of chlorofluorocarbons (CFCs),
prevents venting and other excessive leaks from certain equipment and restricts motor
vehicle air conditioning repair activities.
The Use of Incentives Results in Protection of Human Health and
Stratospheric Ozone
In FY 2002, EPA worked in partnership with the largest trade association for the bak-
ing industry and employed a mix of compliance assistance and incentives to secure
the reduction or elimination of leaks of ozone-depleting substances used in the refrig-
eration equipment throughout the baking industry. Through the Bakery Partnership
Program, 43 baking companies owning a combined total of 250 baking facilities
signed up to participate in a unique voluntary initiative. These bakeries use large quan-
tities of chlorofluorocarbons and other chemicals that contribute to depletion of the
ozone layer in their baking processes. EPA staff addressed specific questions posed
by the regulatory community and provided plain language information on the regulatory
requirements and opportunities to disclose and correct violations under the Program,
EPA offered incentives to those commercial bakeries willing to self-report potential vio-
lations and agree to reduce or eliminate leaks of ozone-depleting substances used in
their refrigeration equipment. EPA staff also addressed specific questions that the reg-
ulatory community had regarding the Bakery Partnership and the regulatory structure.
To evaluate the industry's compliance with the CAA's stratospheric protection regula-
tions, audits of more than 1,000 giant baking machines, mixers, and blenders contain-
ing refrigerants will be performed in 2003. Eight hundred of these industrial process
baking machines have already been converted to non-ozone-depleting substances.
-------
Fiscal Year 2002
Enforcement and Compliance
Assurance Accomplishments Report
Boston School Children to Ride Cleaner
EPA, the Department of Justice and the U.S. Attorney's office in Massachusetts settled
a CAA case against Waste Management of Massachusetts, Inc. on April 26, 2002.
EPAs complaint alleged that the Hampton, New Hampshire, company collected and
crushed refrigerators and air conditioners in 1997 and 1998, which resulted in the
illegal release of ozone-destroying chemicals. The company paid a $775,000 penalty
and will spend $1.4 million to retrofit 200 Boston school buses with particle traps and
to purchase ultra low-sulfur diesel fuel. This is one of the largest school bus retrofit
efforts in the nation. Waste Management will also spend $1.2 million to create park
land on a 41/2 acre site on Chelsea Creek in Massachusetts.
Criminal Enforcement to Prevent Illegal Import of CFCs
Our criminal enforcement program works as part of a nationwide task force that
includes U.S. Customs Service, the Internal Revenue Service (IRS), the Defense
Logistics Agency, the State Department and the Commerce Department to prosecute
cases dealing with the illegal import of CFG refrigerants into the United States.
As a result of our combined efforts, in March 2002 four individuals pled guilty in
the second largest case ever in terms of the amount of unlawfully imported CFCs.
These individuals unlawfully imported 1,760 tons of illegal CFCs and pled guilty
to making false statements to EPA and the U.S. Customs Service and conspiracy
to defraud the IRS, The scheme involved over $24 million in tax fraud, wire fraud
and a money laundering operation.
-------
Purer Water
Over the nearly 30 years since enactment of the Clean Water Act (CWA) and Safe
Drinking Water Act (SDWA), EPA has made substantial progress in improving the quali-
ty of surface waters and the safety of drinking water. Despite measurable improve-
ments in the quality of water, serious water pollution and drinking water problems
remain. At the same time, population growth continues to result in increased water
pollution, and in greater demands on wastewater and drinking water systems. In the
past year we worked to achieve safe sources of drinking water, edible fish, swimmable
beaches, and healthy watersheds.
In FY 2002, EPA addressed a number of compliance issues that significantly impact
the quality of the water in the United States. We focused our resources strategically,
applying the appropriate compliance assistance and enforcement tools to address the
pollutants and sectors that presented the greatest environmental risk to clean water.
We focused on run-off resulting from wet weather precipitation, such as overflows from
combined sewers, sanitary sewers, stormwater discharges and concentrated animal
feeding operations (CAFOs). In addition, we addressed noncompliance issues involving
the SDWA Microbial Rules, which require the prevention, monitoring, treatment and
removal of microbiological contaminants in drinking water. Discharges into waters of
the United States in excess of CWA limits, the Oil Pollution Act (OPA) and wetlands
restoration were also important compliance and enforcement areas in FY 2002,
Following are the highlights of our FY 2002 accomplishments in these critical programs.
-------
Environmental Results Through
Smart Enforcement
Supplemental Environmental Projects (SEPs) provide opportunities for environmental
violators to undertake environmentally beneficial projects, A SEP is part of an
enforcement settlement connected with the violation of a statutory or regulatory envi-
ronmental requirement.
SEPs are environmentally beneficial projects that may be proposed by a violator or
EPA during the settlement of an enforcement action. We examine whether a violator is
committed to, and has the ability to, perform a SEP when determining the appropri-
ateness of including a SEP in the settlement. If a violator agrees to perform a SEP, its
cash penalty may be lowered. The SEP must reduce risks to, improve or protect pub-
lic health or the environment.
For example, in FY 2002 EPA and the Department of Justice entered into a consent
decree resolving allegations against the Board of Water & Sewer Commissioners of
the City of Mobile, Alabama (the Board) for numerous CWA violations. Under the
settlement, the Board agreed to commit to several SEPs that included installing new
private residential sewer lines in low income areas; funding the acquisition of environ-
mentally valuable habitat in Mobile County through the Alabama Forever Wild
Program; funding the acquisition of environmentally valuable habitat in the Dog River
watershed in Mobile County; and partially funding the creation and maintenance of
a publicly available database of water quality monitoring in Mobile County,
31
-------
Overflows From Combined Sewers and
Sanitary Sewers
Sewer overflows contain bacteria and other pathogens that cause illness and lead
to beach and shell fish bed closures. Combined Sewer Overflows (CSOs) occur in
older sewer systems that collect both sanitary sewage and stormwater runoff in the
same pipe. In periods of rainfall or snowmelt, the treatment plant and/or associated
collection system may be unable to ensure that the wastewater is appropriately col-
lected and treated, resulting in raw sewage and industrial wastewater being released
into the environment.
Sanitary sewer overflows (SSOs) are overflows or releases from sanitary sewer sys-
tems and are illegal under the CWA, Several reasons why municipal systems with
separate sanitary sewers may have overflows include inadequate capacity of the
sewer lines and/or the wastewater treatment plant or insufficient operation and main-
tenance programs for their collection systems. Sewer overflows can pose a significant
threat to public health and the environment, and remain a leading cause of water
quality impairment,
City of Youngstown, Ohio, to Improve Sewer and Stop
Overflows
The City of Youngstown, Ohio, agreed to perform a number of projects to eliminate
direct discharges of raw sewage from its collection system and develop and implement
a long-term control plan to address wet weather rain overflows from its combined
sewer system and improve its operation and maintenance programs and data manage-
ment systems. The City estimates it will spend $12 million in short-term improvements
over the next 6 years and $100 million over the next 2 decades to develop and imple-
ment a long-term sewage discharge control plan. This agreement is expected to elimi-
nate more than 800 million gallons of wet weather sewage discharges annually.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
City of Rouge and Rouge Parish to End
Overflows
EPA, the Department of Justice and the State of Louisiana entered into a settlement
with the City of Baton Rouge and East Baton Rouge Parish, Louisiana, to end years of
sewage overflows and long-standing violations of the CWA. The settlement requires
the jurisdictions to make extensive improvements to their co-owned and operated
municipal sewage treatment and collection system that are intended to reduce
discharges of untreated sewage to public areas and United States waters by more
than 1,2 billion gallons annually. Under the consent decree, Baton Rouge and East
Baton Rouge Parish will undertake a comprehensive improvement plan over the next
13 to 15 years that is expected to cost between $330 and $461 million. The City
and the Parish paid a $729,500 penalty and agreed to spend up to $1.12 million for
environmental projects that will benefit local citizens served by smaller neighborhood
sewer systems.
City of Baltimore to Overhaul Sewer to Stop Overflows Into
City and Local Waterways
In September 2002, EPA, the Department of Justice and the State of Maryland entered
into a consent decree with the City of Baltimore that will eliminate unpermitted dis-
charges of raw sewage from the City's sanitary waste collection system. Many of the
water bodies affected by these discharges fail to meet the Maryland water quality stan-
dards for fecal coliform. The terms of the settlement will prevent the discharge of more
than 30 million gallons per year of raw sewage and provide for injunctive relief valued
at approximately $940 million. The City is required to make infrastructure improve-
ments to resolve its violations; eliminate Baltimore's four combined sewer and sanitary
sewer structures; undertake a significant capacity-related construction program; and
develop and implement remedial action plans for each of the City's sewer sheds. As
part of the settlement, Baltimore will perform the design work necessary to install
Biological Nutrient Removal (BNR) technology at the Patapsco Wastewater Treatment
Plant as a supplemental environmental project. The implementation of BNR at Patapsco
is critical to achieve the nutrient reduction goals needed to help remove the
Chesapeake Bay from the national list of impaired waters. It would take decades to
obtain the equivalent amount of nutrient reduction from the control of other sources that
will result from the installation of BNR at the Patapsco Plant.
33
-------
34
Runoff From Stormwater Discharges
The control and proper handling of runoff from stormwater discharges are important
to achieve safe sources of drinking water, edible fish, swimmable beaches and healthy
watersheds for our nation. Urban runoff and storm sewers account for over 50 percent
of the impaired coastal shorelines in the United States,
Use of Integrated Strategy to Improve Compliance in the Auto
Salvage Sector and Prevent Stormwater Discharges
EPA used an integrated strategy of enforcement and compliance assistance to identify
and address environmental compliance in the auto salvage sector. EPA worked with 40
representatives from States, industry, trade associations, academia, and nonprofit
organizations concerning stormwater control requirements to target compliance issues
relating to the auto salvage industry, identify existing and planned compliance assis-
tance activities and develop tools to address outstanding compliance needs. For
example, EPA helped develop a compendium of 64 EPA, State and industry compli-
ance assistance tools to provide information on environmental areas of concern and a
new compliance assistance center for the auto salvage sector.
In July 2002, EPA's Region 9 issued compliance orders to 20 Los Angeles-area
companies in the auto salvage sector for failing to comply with Federal and State
stormwater control requirements. The companies violated their National Pollutant
Discharge Elimination System (NPDES) permits, which serve to prevent contaminated
stormwater runoff from entering local and regional storm drain systems. EPA ordered
the companies to correct violations immediately to prevent polluted runoff from enter-
ing storm drains. Stormwater is a critical source of replenishment for recharging basins
and coastal waters, such as Santa Monica Bay. These actions came after nearly 1,000
inspections of industrial facilities in Los Angeles and Ventura Counties conducted by
the Los Angeles Water Quality Control Board and EPA over a year. These compliance
assistance and enforcement actions will improve compliance with environmental laws
throughout the auto salvage sector.
-------
Environmental Results Through
Smart Enforcement
1P1 3, working with the District of Columbia, implemented an integrated
strategy for storm water that uses a mixture of compliance assistance, compliance
monitoring and enforcement tools. EPA Region 3 developed a stormwater Web site
that includes useful information on best management practices and sample
stormwater pollution prevention plans for seven different industry sectors.
The Region also conducted a number of on-site compliance assistance visits for
the construction sector and partnered with the District of Columbia to address multi-
media concerns for the auto service/body shop sector, a major source of pollution
impairing the Anacostia River, Additionally, EPA developed and implemented the
Anacostia Watershed Stormwater Enforcement Strategy to address stormwater
violators located in the watershed. EPA identified the sources potentially subject to
the stormwater requirements and sent compliance outreach materials to over 1,000
entities. EPA then prioritized the industrial facilities that did not file for permits or
implement required controls for inspection according to environmental risk. EPA and
the District of Columbia conducted more than 200 inspections and initiated enforce-
ment actions against the entities with the poorest compliance records. EPA is cur-
rently re-inspecting the sites where enforcement actions were previously taken to
measure the results achieved because of EPA and the District of Columbia's actions.
35
-------
36 a
Runoff from Concentrated Animal Feeding
Operations (CAFO)
The increasing concentration of livestock operations to iarger facilities has created sig-
nificant human health and environmental risks. Improper handling of manure from feed-
lots, lagoons and improper land application can result in excessive nutrients (nitrogen
and phosphorus), pathogens (e.g., fecal coliform) and other pollutants in the water.
This pollution can kill fish, cause excessive algae growth and contaminate drinking
water. In addition, emissions of air pollutants from very large CAFOs may result in sig-
nificant health effects for nearby residents,
EPA successfully used an integrated strategy of inspections, education, compliance
assistance, incentives and enforcement to promote compliance by the thousands of
livestock operations subject to regulation under the CWA. In FY 2002, we secured sig-
nificant environmental improvements for local communities adversely impacted by
CAFO operations,
Largest Hog Producer
: : : ; : : to Spend $50 Million to Install
:: : : Innovative Wastewater Treatment
Technology
; •: . ; . . : EPA, the Department of Justice and the
Citizens Legal Environmental Action Network
(CLEAN) entered into a civil settlement with
Premium Standards Farms, Inc. (PSF), the
nation's second largest pork producer, and
Continental Grain Company, Inc. to resolve
violations of the CWA, Emergency Planning
and Community Right-to-Know Act,
Comprehensive Environmental Response,
Compensation, and Liability Act, and the CAA
that occurred at a number of the companies'
factory farms in northwest Missouri, PSF's and
Continental's operations in Missouri consist of
more than 1,000 barns, 163 animal waste
The Iowa Department of Natural Resources (IDNR), with cooperation and
support from 7, the iowa Cattlemen's Association, the United
States Department of Agriculture, the Farm Bureau and local environmen-
tal groups, launched a 9-month compliance audit/incentive program for
cattle feedlots that encouraged producers without permits to register with
IDNR for a limited period of time. Prior to initiation of the registration
program, only 30 open feedlots had the required NPDES permit; at the
end of the registration period, 965 feediots registered under program
requirements. The dramatic increase in the number of large feedtots that
will now be operating in compliance with the CWA and additional State
laws will result in tremendous benefits for water quality in Iowa,
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
lagoons and 1,25 million pigs primarily located on 21 large-scale facilities in five coun-
ties. Under the settlement, the companies agreed to spend as much as $50 million to
develop and install cleaner wastewater treatment technologies never before used in
this industry. The companies also will be required to comply with new management
practices designed to prevent future discharges of animal wastes and minimize the
negative impact of the facilities on local residents. Further, the companies have agreed
to implement a $300,000 SEP to reduce air emissions and odors from swine barns
and pay a $350,000 civil penalty. The federal settlement complements a previous con-
sent judgment negotiated by the State of Missouri, PSF and Continental that required
the defendants to spend up to $25 million to develop new technology. EPA and
Missouri are working together to coordinate and implement both decrees.
Safe Drinking Water Act
There are approximately 168,000 active public water systems throughout the United
States that serve 275 million people. The Safe Drinking Water Act (SDWA) provides for
national primary drinking water regulations that address the prevention, monitoring,
treatment and removal of microbiological contaminants. Contaminated drinking water
is a direct threat to human health. The effects can be severe, especially on children,
the elderly and persons with compromised immune systems. Adverse health effects of
microbiological contamination include gastrointestinal distress, fever, pneumonia, dehy-
dration or death,
Drinking Water Monitoring and Enforcement Initiative
in Michigan Results in Safer Drinking Water for Public
The Michigan Department of Environmental Guality (MDEG) and EPA Region 5
continued with their multi-year safe drinking water project to improve compliance at
1,026 non-community water systems. MDEQ and EPA worked with 43 Local Health
Departments (LHD) as the implementing agencies. The LHDs used a combination of
enforcement actions, monitoring reminder notices and informal violation notices to
improve overall compliance rates. Since the inception of this program, monitoring
violations for total coliform bacteria and nitrate at the non-community water systems
decreased at least 60 percent.
37
-------
v^-jr-
P^g^£-Jfe^|gff' fe^iL;-'-' - - .l-~"-S ™
w««;,i|,^^»j|:;i&
J*?»',>%' '--—• - -!
EPA and Department of Justice Lawsuit Results in Orders Placing
California Water Companies Into Receivership to Ensure Safe,
Clean Drinking Water
In Aprii 2002, a U.S. District Court judge in San Jose, Caiifornia, ordered eight
Monterey County water companies owned by the Salinas-based Alisal Water
Corporation into receivership. This order shifted control of the day-to-day operations of
the water companies and the quality of the water provided to customers from the
company. The decision resulted from a Federal SDWA suit brought by EPA and the
U.S. Department of Justice against the company and its owners. The case alleged the
owners deliberately falsified lab reports for public water systems submitted to the state
and Monterey County to hide violations of the maximum contaminant level for total col-
iform bacteria in the water provided to the public, among numerous other violations.
EPA Prevents Discharges Into U.S. Waters in of Clean
Water Act Permit Limits
The world's largest meat packer reduced discharges of ammonia into the Missouri
River and air emissions as a result of EPA enforcement. EPA, in partnership with the
State of Nebraska and the Department of Justice, entered into a settlement with IBP,
inc., the world's largest producer of fresh beef, pork and related products in FY 2002
for violations of the CWA, the CAA and other environmental statutes at its 200-acre
complex of facilities located near Dakota City, Nebraska, and other facilities in
Nebraska, Iowa, Kansas and Texas, Citizens in the communities surrounding the
Dakota facility previously complained about the environmental problems at IBP, includ-
ing the resulting odors. The Dakota City facility emitted up to } ,900 pounds of hydro-
gen sulfide each day into the air and discharged approximately four million gallons of
contaminated wastewater daily into the Missouri River. This wastewater contained lev-
els of ammonia in quantities toxic to aquatic life. Under the terms of the decree, IBP
will spend $10 million on injunctive relief to resolve its violations at its Dakota City facili-
ty and pay a $4,1 million penalty, IBP also committed to a SEP valued at $3,4 million
to reduce the sulfur content of its incoming water, thereby reducing the potential for
generating hydrogen sulfide at the wastewater treatment plant.
-------
Environmental Results Through
Smart Enforcement
Company Ordered to Pay Second Highest Penalty Ever
Awarded by a Judge After Trial Under the Clean Water Act
As a result of EPA enforcement, the Federal District Court for the Western District of
Pennsylvania ordered Allegheny Ludlum Steel Corporation to pay the United States the
second highest penalty awarded by a judge after trial under the CWA. The court
ordered Allegheny Ludlum to pay a penalty of $8.2 million for violations of the CWA at
its steel mills on the Allegheny and Kiskimenetas Rivers outside Pittsburgh. The award
was based, in part, on a finding that Allegheny Ludlum gained a savings of S4.1 million
from its delay and failure in spending money on necessary environmental controls,
Oi! Pollution Act
Congress signed the Oil Pollution Act (OPA) into law in August 1990, largely in
response to rising public concern following the Exxon Valdez oil spill in Alaska's Prince
William Sound. The OPA is the most recent comprehensive effort to deal with the
harmful environmental impacts of oil spills. Oil spills pose a potentially serious threat to
human health and the environment,
Compliance of Compliance
and Penalty Resolution Process
EPA's Region 6 office in Dallas, Texas, is integrating compliance assistance into its
ongoing Spill Prevention Control and Countermeasure (SPCC) inspection and compli-
ance assistance program. Region 6 conducted compliance assistance workshops in
each geographic area prior to initiating SPCC inspections of facilities within the area.
In FY 2002, Region 6 conducted workshops attended by over 1,900 owners and oper-
ators of SPCC-regulated facilities. The Region subsequently conducted inspections of
the facilities and followed up with administrative penalty enforcement actions using a
simplified and expedited penalty process. Since the inception of the program, compli-
ance rates increased from 36 percent during the 1999/2000 fiscal years to 53 percent
in 2001/2002 fiscal years. This represents a 17 percent improvement in compliance
rates due to this innovative program.
39
-------
40
The incorporation of this expedited enforcement process has allowed the Region to
address more facilities than ever before. There are over 200,000 facilities in the Region
under the scope of the SPCC regulations. The expedited enforcement approach,
which usually takes less than 45 days from assessment to finalization, provided the
Region with time to address more facilities and established a more balanced compli-
ance program.
Ensuring Environmental Compliance by Cruise Lines
Cruise ship activity has increased by almost 50 percent since the early 1990s. Cruise
ships generate large quantities of solid and hazardous wastes, which pose significant
risks to human health and the marine environment. Wastes include hazardous wastes
from photographic lab chemicals, dry cleaning fluids, paints, pesticides, sewage
waste, oily bilge and ballast water, waste oil and "grey" water from baths, showers
and galleys.
As a result of EPA criminal enforcement efforts, Carnival Corp, of Miami, Florida, which
operates 40 cruise ships including those of the Carnival Cruise Lines, pled guilty in
April 2002 to falsification of oil record books on several of its ships. The company will
pay $18 million in penalties, $9 million of which will be used for a variety of environ-
mental community service projects. Carnival was also ordered to implement and
enforce a new corporation-wide environmental compliance program.
EPA initiated a criminal enforcement action against Norwegian Cruise Lines, which pled
guilty on July 31, 2002, for concealing the illegal discharge of oil-contaminated bilge
waste into the Atlantic Ocean. The company will pay a $1 million penalty and an addi-
tional $500,000 for environmental community service projects in South Florida.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
Wetlands Restoration
Wetlands provide critical habitat for wildlife, including many endangered species. They
are also important for flood and storm damage control, shoreline erosion protection,
groundwater recharge and water quality improvement. They provide billions of dollars
to the nation's economy each year from flood protection and water purification, fish-
eries, hunting of waterfowl and other recreational opportunities. EPA enforcement
activity has generally focused on actions against unpermitted discharges.
As a result of work undertaken by EPA's criminal enforcement program, Emilio A. Perez
and EMISAR Trucking and Equipment, Inc., of Palm Beach County, Florida, were con-
victed of CWA violations and damaging Federal property by dumping mixed solid
wastes into wetlands at Bay Bottom and Sand Cut in Palm Beach County, Part of the
wetlands belong to the U.S. Army Corps of Engineers. The case was investigated by
EPA's Criminal Investigation Division, the U.S. Army Corps of Engineers and the
Environmental Investigations Unit of the Palm Beach County Sheriff's Office and prose-
cuted by the U.S. Attorney's office in Miami.
41
-"-|j^_ -xS'V'^" 3
-------
42
Better Protected Land
Improper waste handling, management and disposal practices present significant envi-
ronmental threats. These improper activities also economically undercut facilities that
operate in compliance with the provisions of the Resource Conservation and Recovery
Act (RCRA) and could lead to future contaminated sites under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA or Superfund). In
FY 2002, EPA focused enforcement and compliance assurance efforts to ensure com-
pliance with the permit and underground storage requirements of RCRA and the
cleanup of contaminated Superfund sites under CERCLA, Below are some of the high-
lights of our efforts in FY 2002 to ensure that our land is better protected.
RCRA Permit Evaders, Compliance with
Underground Storage Tank Requirements
and Corrective Action
Permit Evaders
RCRA is intended to protect human health and the environment from the hazards
posed by handling and disposing of wastes. In FY 2002, EPA and the U.S. Department
of Justice resolved an action against Mobil Oil Corporation, now ExxonMobil, involving
the illegal disposal of benzene-contaminated wastewater in surface impoundments
without a permit. This is one of the largest hazardous waste settlements in history.
ExxonMobil agreed to pay a civil penalty of $8.2 million and to spend S3 million on a
SEP to purchase and restore environmentally sensitive land along the Arthur Kill
Waterway area located near the New York City Harbor, where the violations occurred.
Underground Storage Tanks
RCRA also regulates underground tanks that store petroleum or hazardous sub-
stances. Underground storage tanks (USTs) range in capacity from a few hundred to
50,000 or more gallons and are used to store gasoline, heating oil and other fuels,
waste oil and hazardous substances at gas stations, marinas, government facilities
and large industrial sites. Leaks from tanks often contaminate the groundwater and
can cause unhealthy gasoline vapors to settle into the basements of private homes
-------
Environmental Results Through
Smart Enforcement
and apartment buildings. EPA and States' underground storage tank regulations were
put in place to prevent releases of petroleum and, if a release does occur, to ensure
that it is addressed immediately.
43
Before tank removal.
To resolve alleged violations under RCRA, Pennzoil-Quaker State Company (PQS)
paid an assessed penalty and agreed to undertake a SEP in Shreveport, Louisiana,
The SEP provided for the removal and disposal of a storage tank and associated
materials on property that will be developed into a 300,000 square foot convention
center complex in a community with significant environmental justice concerns. The
SEP assisted in the cleanup of a contaminated redevelopment site and the conven-
tion center is expected to create and sustain over 1,100 jobs in this economically
disadvantaged community.
—
After tank removal.
-------
Office of Site
Eifercenent
Office 0f anil
Ctnpliance
Washington, O.C.
"I enjoy tackling complex tech-
nical and policy issues that
require resolution and working
with people with diverse educa-
tional backgrounds who also
share the passion and drive to
provide the best support to our
Regional offices to address
RCRA and CERCLA priorities."
Criminal Action Taken to Halt False and Improper UST
Testing Practices
As a result of the extensive investigation by EPA and several criminal agencies,
Tanknology-NDE, the largest UST testing company in the United States, pled guilty to
10 felony counts of presenting false claims and making false statements to Federal
agencies in July 2002. The company agreed to pay a S1 million criminal fine and resti-
tution of $1.29 million to the United States for false UST testing services performed by
its employees. Tanknology, headquartered in Austin, Texas, performed false tests at
Federal installations across the country, including U.S. Postal facilities, military bases
and a NASA facility. In addition to paying the criminal fine and restitution, Tanknology
will serve a term of probation for 5 years and implement a quality management system
to ensure that false and improper testing practices do not recur.
Integrated Compliance Assistance and Enforcement Effort
to Address UST Noncompliance
In FY 2002, EPA's Region 9 continued its multi-year effort to address widespread non-
compliance with RCRA UST requirements on Tutuila, the largest island in American
Samoa. This integrated compliance assistance and enforcement effort began when
EPA inspectors found widespread noncompliance with UST requirements in January
2001. EPA inspected all 19 of the known UST facilities in Tutuila and entered into con-
sent decrees that provided an enforcement structure to return the facilities to compli-
ance. In FY 2002, Region 9 entered into the 15th settlement with a gasoline storage
tank owner on the island. As a result of EPA's actions, the compliance rate with tank
upgrade and leak detection requirements on Tutuila improved from almost zero to
nearly full compliance. Operating in close coordination with the American Samoa
Environmental Protection Agency, EPA helped assure that new equipment was properly
installed and functioning correctly.
RCRA Corrective Action
RCRA Corrective Action Results in Cleaner Water for Nearly
20 Million People
Kerr McGee Chemical Corporation is the primary source of perchlorate contamination
in Las Vegas, Lake Mead and the lower Colorado River. The Kerr McGee groundwater
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
plume is the largest known release of perchlorate in the country and threatens the
drinking water supply of 15 to 20 miilion people that use Lake Mead and the lower
Colorado River system as a source of drinking water, Perchlorate affects the thyroid
gland, which regulates metabolism and development. Infants and young children are
particularly sensitive to the effects of perchlorate, EPA Region 9 and the Nevada
Department of Environmental Protection (NDEP) partnered together to secure Kerr
McGee's agreement to voluntarily begin extraction of perchlorate-contaminated
groundwater. As a result of this partnership, a full-scale remediation system that
removes more than 2,500 pounds of perchlorate per day from the groundwater
became operational in 2002. Perchlorate levels in Las Vegas, Lake Mead and the
Colorado River have begun to decrease, and the risks to 15 to 20 million people from
consuming perchlorate-contaminated drinking water will be significantly reduced,
Superfund Cleanup
Enforcement First for Remedial Action at Superfund
EPA's Superfund Program was established to locate, investigate and clean up the
worst sites nationwide. Under CERCLA, EPA is able to make companies and individu-
als responsible for a contaminated site perform and pay for investigation and cleanup
activities. EPA has a long-standing policy to pursue "enforcement first" throughout the
Superfund cleanup process. This policy promotes the "polluter pays" principle and
helps to conserve Superfund resources for the cleanup of those sites where viable
responsible parties do not exist. EPA may also use the Superfund Trust Fund to pay
for investigation and cleanups, and then attempt to get the money back from responsi-
ble parties through legal actions.
Implementing the New Brownfields Law
On January 11, 2002, President Bush signed the legislation that both he and
Administrator Whitman identified as "the most significant piece of environmental legisla-
tion" passed by Congress in the preceding year: the Small Business Liability Relief and
Brownfields Revitalization Act. Passage of the legislation is important because it protects
small waste contributors, certain municipal solid waste generators and innocent pur-
chasers of contaminated properties. EPA quickly moved to develop implementation guid-
ance and on May 31, 2002, issued the first guidance addressing, "Bona Fide Prospective
45
-------
Purchasers and the New Amendments to CERCLA." Prior to the legislation's enact-
ment, purchasers who bought contaminated properties had to involve the Federal gov-
ernment and enter into prospective purchaser agreements (PPAs) with EPA to address
CERCLA liability concerns. In its guidance, EPA explained that because Congress pro-
vided statutory liability protection, the need for PPAs and Federal government involve-
ment in private party real estate transactions is unnecessary in most instances and
identified those limited circumstances where a PPA might be appropriate. Our efforts in
implementing this important legislation will pave the way for contaminated properties to
be returned to productive use more quickly.
Superfund Enforcement Action Results in Greatly Reduced
Exposure to in Community
In FY 2002, EPA issued an Administrative Order on Consent to the Doe Run
Resources Corporation under Section 106 of CERCLA, requiring the company to take
immediate actions to address lead contamination in the town of Herculaneum,
Missouri. The town is a community of about 2,400 people located in the footprint of a
lead smelter that has operated since the 1890s. The smelter, operated by the Doe Run
Company, is the largest primary lead smelter in the nation. Sampling data from 2001
showed that 50 percent of the children living within a half mile of the smelter have ele-
vated blood lead levels and that people were being exposed to high levels of lead. In
2002, Doe Run completed remediation of contaminated soils at homes with children
under 6 years of age, completed soil cleanups at residential yards with lead levels
above a prescribed level and undertook interior dust cleanups at homes where it per-
formed soil remediation. The company also developed and implemented a transporta-
tion and materials handling control plan to address problems with lead releases along
the truck haul routes through town and suspected fugitive dust emissions from the
facility. The combination of actions completed by Doe Run as a result of this CERCLA
enforcement action greatly reduced exposure to lead in this community. The 2002
blood level sampling data for children living closest to the smelter shows a 62 percent
reduction in the prevalence of elevated blood levels compared to 2001 data.
-------
Environmental Results Through
Smart Enforcement
Here, personnel use heavy equipment to
remove contaminated soiis from a site.
A 7
^ '
EPA's regulations covering aboveground
oii storage tanks (ASTs), such as the
one pictured here, are based on the
concept of preventing spii/s through
proper design, operation, and
maintenance procedures.
In FY 2002, cost recovery was addressed at 240 National Priority List (NPL) and
non-NPL sites, of which 101 had total past costs greater than or equal to $200,000.
EPA's cost recovery activities are important because they preserve the Superfund
Trust Fund by recovering EPA's past costs, which makes resources available for
other Superfund site cleanups. With respect to private parties in FY 2002, EPA
secured cleanup and cost recovery commitments valued in excess of $627 million
(over $501 million for future cleanup and $126 million for recovery of past costs).
'•
;/V
-------
Fox River Super-fund Site
EPA entered into a unique CERCLA Consent Decree in FY 2002 for the Fox River
Superfund site in Wisconsin, The agreement is unique because it was finalized prior
to the issuance of a record of decision, and before any formal allocation of liability
among the potentially responsible parties (PRPs) for the Fox River site. The agreement
will provide $40 million over a 4-year period to fund remediation and natural resource
restoration projects in the Lower Fox River Valley. It will fund important pre-design proj-
ects and will keep the momentum of this project going while the record of decision is
completed. The Decree provides that Appleton Papers, Inc., and NCR Corporation will
make periodic payment to an escrow account based on projected costs up to $10 mil-
lion per year for 4 years. Money not expended in 1 year will "roll over" to subsequent
years. The selection of "response actions projects" or "restoration projects" is within
the discretion of the response agencies and the natural resource trustees. This unique
agreement is important because it will facilitate and expedite the cleanup of this site.
-------
Fiscal Year
Enforcement and Compliance -3 .
Assurance Accomplishments Report
Significant Environmental Results
Achieved through EPA's Gore Programs
In addition to the enforcement and compiiance assurance program's accompiishments
highlighted in the areas of cleaner air, purer water and better protected land, there are
a number of ongoing core programs that EPA implements directly and programs that
involve multiple environmental statutes that produced significant environmental results
in FY 2002.
Pesticides
Integrated Compliance and Enforcement Strategy for
Pesticide e-Commerce
The Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) regulates pesticides,
including germ-killing substances or anti-microbials. EPA and State pesticide regulatory
agencies face an increasing number of tips, complaints and questions about the sale
of pesticides and pesticidal services over the Internet, The rise of e-commerce creates
greater opportunities for unknowing or unscrupulous vendors to sell consumers unreg-
istered and restricted use pesticides. Such sales could present a significant risk to
human health and the environment. In response to this environmental, consumer pro-
tection and compliance concern, EPA issued the Integrated Compliance and
Enforcement Strategy for Pesticide e-Commerce in FY 2002. The strategy provides
guidance on how to conduct inspections and enforce violations in the virtual world of
the Internet, and educated the regulated community about its legal obligations and
how to meet them. EPA worked closely with States in developing the strategy to
address States' unique concerns.
In September 2002, EPA ordered Aerotech Laboratories, Inc., of Phoenix, Arizona, and
American Security and Control, Inc., of Falls Church, Virginia, to stop advertising and
selling their unregistered pesticide products, which they claimed protected against
anthrax. EPA ordered Aerotech to stop selling the unregistered pesticide, Modec
Decon Formulation (MDF), that the company included in its Bioterrorism Response Kit.
In addition, the stop sale order required the company to stop selling two other unregis-
tered products the company advertised on the Internet: the Anthrax and Biological
continued on page 51
49
-------
50 I
Data analysis allows EPA to focus compliance assurance and enforcement resources
more strategically to ensure public health and environmental protection, EPA's
Environmental Justice Program is researching the migrant and seasonal farm worker
population using baseline population data. This information, in addition to other cur-
rent available data, will be used to enhance our ability to identify areas where
migrant and seasonal farm worker populations exist and where assistance and
efforts can be targeted. In addition to this ongoing research, the Environmental
Justice Program partnered with Harvest America Corporation (HAC) to educate and
inform migrant and seasonal farm workers in Southwestern Kansas on pesticide
safety and pesticide exposure risks, HAC received a grant in the amount of $30,000
for the Informing People on Pesticides (IPOP) Project over a period of 1 year.
Objectives of the project include: establishing a network capable of identifying and
educating migrant/seasonal farm workers whose work may expose them to pesti-
cides, collecting data of pesticide usage, providing bilingual and culturally sensitive
pesticide safety information and increasing pesticide safety knowledge to the target
population. The focus area for this project includes eight communities located in
western Kansas.
-------
Environmental Results Through
Smart Enforcement
Continued from page 49
Decontamination System and the Anthrax and Other Biologicais Decontaminant Kiiier
Soiution, The company inaccurately claimed their pesticides received EPA approval.
Both companies subsequently removed their unauthorized anthrax advertisements
from their Internet sites.
FIFRA Settlement Prevents of Unregistered Pesticide Products
EPA settled a FIFRA administrative action against the Rolf C. Hagen (USA) Corporation
of Mansfield, Massachusetts, for $204,600 in February 2002. The company sold and
distributed five unregistered pesticide products on 36 occasions, sold or distributed an
improperly branded ultraviolet sterilizer on three occasions and produced a pesticidal
device in an unregistered establishment,
Toxics Under TSCA
Lead Paint
Although preventable, lead poisoning remains a major childhood environmental disease.
Nearly 1 million children in the United States have blood-lead levels high enough to
result in irreversible neurological and other health damage. Roughly 24 million children
under the age of 6 are potentially at risk for lead poisoning, generally through exposure
to lead-based paint and lead-contaminated dust and soil. The Real Estate Notification
and Disclosure Rule (Lead Disclosure Rule) under TSCA requires that landlords and
owners of regulated property provide information about lead poisoning to prospective
renters and purchasers and disclose known information regarding lead-based paint to
potential lessees or purchasers prior to finalizing lease or purchase agreements. EPA
directly administers this program.
Integrated Compliance Enforcement Initiative
Compliance With Disclosure Rule
In FY 2002, EPA's enforcement and compliance program, along with EPA's Office of
Children's Health Programs and the Office of Pollution Prevention and Toxics, led a
compliance assistance initiative to increase compliance with the Lead Disclosure Rule
and reduce the health risks posed by lead-based paint. The initiative resulted in over
2,000 inspections and/or the review of approximately 9,000 leases. EPA provided
compliance assistance information and pamphlets on compliance with the lead pro-
51
-------
gram during every inspection. On average, 23 chiidren per inspection resided in the
units covered by the lease reviews. We found deficiencies in more than 500 inspec-
tions, and 60 facilities took immediate action to correct the deficiencies. We issued
more than 300 notices of noneompiiance and 18 complaints as a result of detecting
noncompliance through these inspections.
More Than 130,000 Families in 47 and D.C, Benefit From
Disclosure Settlement
EPA and the Department of Housing and Urban Development reached a landmark set-
tlement in January 2002 with one of the nation's largest property management firms,
the Denver-based Apartment Investment and Management Co.(AIMCO), Under the
terms of the settlement, residents living in hundreds of thousands of apartments in 47
states and Washington, D.C., will now have lead-safe units. The United States alleged
that AIMCO failed to warn its tenants that their homes may contain lead-based paint
hazards in violation of the Lead Disclosure Rule. The settlement requires AIMCO to test
and clean up lead-based paint hazards in more than 130,000 apartments nationwide
and pay a $129,580 penalty. The penalty and the number of units being tested and
cleaned are the largest ever in a lead disclosure settlement,
Asbestos
Compliance and Inspections Result in Greater
Protection of School Children from Exposure
TSCA's Asbestos Hazard Emergency Removal Act (AHERA) requires local education
agencies to inspect their schools for asbestos-containing building materials and pre-
pare management plans that recommend the best way to reduce the asbestos hazard.
In FY 2002 EPA Region 8 conducted 68 school district inspections, which uncovered
an AHERA noncompliance rate exceeding 75 percent. To address this problem, EPA
created an AHERA training package and distributed the package to many of the school
districts. The goal of the package is to provide compliance assistance to school dis-
tricts to improve the overall compliance rate and provide a safer environment for the
school children.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
Ensuring Compliance at Federal Facilities
An important part of EPA's work is ensuring that Federai agencies comply with environ-
mental requirements in the same manner and extent as privately owned facilities.
In FY 2002, EPA undertook initiatives to increase compliance at Federal facilities,
and issued or completed 25 enforcement actions against Federal agencies and
government contractors.
Enforcement at Facility the Way for Commercial and
Industrial of Property
In FY 2002, EPA entered into a consent agreement and final order with the U.S. Navy
to resolve claims under TSCA and CERCLA for contamination with PCBs at the Mare
Island Naval Shipyard in Vallejo, California. The agreement paves the way for the trans-
fer of the contaminated property to a private developer that plans to remediate and
develop the property for commercial and industrial reuse. Approximately 690 gallons of
liquid PCBs and 14 million pounds of PCB-contaminated concrete, wood and soil are
expected to be removed from the site.
Compliance Assistance Provided to Veterans Health Administration
EPA and the Veterans Health Administration undertook a significant compliance assur-
ance initiative in FY 2002 and signed a precedential agreement committing their organi-
zations to work together to improve compliance at Veterans Administration (VA) Medical
Centers across the nation. Under the Veterans Health Administration Partnership for
Compliance, EPA will conduct environmental management reviews at VA Medical
Centers to evaluate their environmental systems and recommend improvements. The
Veterans Health Administration will update its internal compliance auditing procedures
to ensure that its facilities operate in compliance with environmental laws and regula-
tions. The Veterans Health Administration is currently pilot testing new self-auditing pro-
cedures and how to integrate them into its existing safety evaluation program.
53
Sallf M.
Facilities Eif ercenent
Office, Office if Enforceneit and
Washington, D.C.
"Many Federal facilities present
significant environmental chal-
lenges, I assist the EPA Regions
in carrying out their important
work of ensuring protective
cleanups and compliance with
environmental laws by Federal
agencies, I believe EPA makes a
difference for the good of the
people and our country. The
impact we make often extends to
the next generation."
-------
54
Settlement Agreement With the Army Requires Technology to Warn
About Potential
In FY 2002, EPA Region 3 entered into a Consent Agreement and Final Order resolv-
ing a series of UST violations at the Army's Walter Reed Army Medical Center
Facilities in Washington, D.C., and Maryland. EPA determined, through an inspection
and document review, that the Army violated key release detection requirements at a
number of tanks throughout the facilities to report and investigate suspected releases
and failures to maintain adequate spill protection capacity. Under the terms of the
consent agreement, the Army agreed to pay a penalty of $36,195 and to install a
centralized UST release, detection and alarm system worth more than §100,000, This
system will result in enhanced environmental protection by providing the Army with
real-time warnings of potential releases.
International Enforcement Program
EPA's international enforcement and compliance assurance work includes the imple-
mentation of international commitments for enforcement and compliance cooperation
with other countries, especially those along the U.S. border, and helps build interna-
tional capacity for improving domestic environmental governance. We also contribute
to an Agency-wide initiative to create an integrated compliance and enforcement strat-
egy for imports and exports of toxic and hazardous chemicals, pesticides and wastes.
United Canada and Mexico Work Together to Enforce
Environmental Laws
EPA participated in the North American Working Group on Environmental Enforcement
and Compliance Cooperation of the tri-national Commission for Environmental
Cooperation. A FY 2002 highlight is the Transboundary Enforcement Workshop that
brought together representatives from Canada, Mexico and the United States to work
on enforcement of environmental laws in one country that may require the assistance
of another country, either in the form of mutual legal cooperation or the voluntary
exchange of information or as
-------
Environmental Results Through
Smart Enforcement
EPA Works With From India to Strengthen and
Promote Environmental Compliance in India
In FY 2002 as part of EPA's Memorandum of Understanding with the Indian Ministry of
Environment and Forests (MoEF), EPA worked with government officials at the national,
local and State levels to develop India's environmental compliance and enforcement
capacity. EPA provided a training course to individuals from all levels of government, as
well as academia, industry, consultants, public institutes, non-governmental organiza-
tions and citizen groups. Based upon feedback from the training and meetings with
key individuals in India, a long-term plan to strengthen and promote India's environ-
mental compliance and enforcement program was developed and agreed upon by rep-
resentatives from EPA, MoEF, the U.S. Agency for International Development and the
U.S. Asia Environmental Partnership Program.
EPA Prevents Importation of Millions of Gallons of
Hazardous Waste
EPA's review of notifications of intent to import hazardous waste resulted in the objec-
tion to the importation of 31 waste streams on various regulatory grounds, such as the
lack of a permit at the receiving facility or the non-inclusion of the subject waste in the
permit of the receiving facility. The objections denied potential entry of 165,495 tons of
solid hazardous wastes and almost 18 million gallons of liquid hazardous wastes into
the United States.
EPA also undertook an EPA-U.S. Customs Initiative to create an integrated compliance
and enforcement strategy for imports and exports of toxic and hazardous chemicals,
pesticides and wastes. In 2002, the initiative assessed opportunities for providing
real-time access to import data necessary for compliance and enforcement decision-
making, including a seamless information-sharing system between EPA and the
U.S. Customs Service. The group also assessed creating focused policies, strategies
and regulatory approaches related to imports and exports.
La
of and
Compliance
Air Cenpliance Branch
EPA 2, lew York, lew York
"Reducing pollution will have
a positive effect on human
health while preserving
the environment,"
-------
56
The National Environmental Policy Act Program
The National Environmental Policy Act (NEPA) requires agencies to consider the
environmental consequences of their actions. The NEPA Program's mission is to carry
out NEPA responsibilities to maximize protection of human health and the environment
and public understanding of the environmental impacts of Federal actions. The NEPA
program is part of OECA. For approximately 500 major actions a year, agencies pre-
pare an environmental impact statement, which EPA reviews to assess those impacts
and determine the adequacy of public disclosure. As a result of EPA's NEPA Program,
Federal agencies resolved 79 percent of the environmental impacts and public disclo-
sure concerns identified by EPA. In its advisory role under NEPA, EPA undertook
efforts to protect more than 5,600 acres of terrestrial habitat and more than 1,600
acres of aquatic habitat and assisted numerous Federal agencies to quickly meet their
project goals while minimizing environmental harm,
Conclusion.
The highlights described in this annual report represent the environmental results that
can be achieved through smart enforcement. As we move into the future, the enforce-
ment and compliance assurance program will continue to build a smart enforcement
program by using all of the enforcement and compliance tools at our disposal, devel-
oping new tools, forging strategic partnerships, integrating environmental justice and
encouraging innovation.
-------
Fiscal Year 2002
Enforcement and Compliance
Assurance Accomplishments Report
Acronyms
BACT Best Available Control Technology
BLM Bureau of Land Management
BOD Biological Oxygen Demand
CM Clean Air Act
CAFO Concentrated Animal Feeding Operations
CCR Consumer Confidence Report
CERCLA Comprehensive Environmental Response,
Compensation, and Liability Act
CFG Chlorofluorocarbon
CSO Combined Sewer Overflows
CWA Clean Water Act
DOD Department of Defense
DOE Department of Energy
DOJ Department of Justice
EA Enforcement Action
EAO Emergency Administrative Order
ECHO Enforcement and Compliance History Online
EJ Environmental Justice
EMS Environmental Management System
EMR Environmental Management Review
EO Executive Order
EPA U.S. Environmental Protection Agency
EPCRA Emergency Planning and Community Right-
to-Know Act
ERNS Emergency Response Notification System
FFEO Federal Facilities Enforcement Office
FIFRA Federal Insecticide, Fungicide and
Rodenticide Act
FY Fiscal Year
GPO Government Printing Office
GPRA Government Performance and Results Act
HUD Department of Housing and Urban
Development
IDEA Integrated Data for Enforcement Analysis
LDAR Leak Detection and Repair
MACT Maximum Achievable Control Technology
MCL Maximum Concentration Limits
MRBMA Mercury-Containing and Rechargeable
Battery Management Act
MTBE Methyl Tertiary Butyl Ether
NASA National Aeronautics and Space
Administration
NEPA National Environmental Policy Act
57
-------
58
NESHAPs National Emissions Standards for Hazardous
Air Pollutants
NEIC National Enforcement Investigations Center
N02 Nitrogen Dioxide
NOX Nitrogen Oxides
NOV Notice of Violation
NPDES National Pollutant Discharge Elimination
System
NPMS National Performance Measures Strategy
NSR/PSD New Source Review/Prevention of
Significant Deterioration
OAQPS Office of Air Quality Planning and Standards
OECA Office of Enforcement and Compliance
Assurance
01 Order for Information
OLC Office of Legal Counsel
ORE Office of Regulatory Enforcement
OTIS On-line Tracking Information System
PCS Polychlorinated Biphenyl
PM Particulate Matter
POTW Publicly Owned Treatment Works
RCRA
BMP
SEP
SDWA
SWTR
SFIP
SIC
SIP
SNC
S02
SPCC
sso
TRI
TSCA
TSS
USCG
USFS
UST
VOC
Resource Conservation and Recovery Act
Risk Management Plan
Supplemental Environmental Project
Safe Drinking Water Act
Surface Water Treatment Rule
Sector Facility Indexing Project
Standard Industrial Classification
State Implementation Plan
Significant Noncompliance
Spill Prevention Control and
Countermeasure
Sanitary Sewer Overflows
Toxic Release Inventory
Toxic Substances Control Act
Total Suspended Solids
U.S. Coast Guard
U.S. Forest Service
Underground Storage Tank
Volatile Organic Compound
-------
Environmental Results Through
Smart Enforcement
Charts
The numbers reflected here are current as of May 2003.
of FY Actions
(by
CM
CWA
EPCiA
Title 11 i otier
Criminal
Pennies
Assessed
$7,162,382
$3,054,294
$29,928,606
$0
$120,100
$2,569,531
$8,750
$280,000
$19,128,655
CM I
Penalties
Assessed*
$33,857,828
$1 ,589,300
$16,951,009
$225,000
$12,000
$11,130,437
$500
$50,000
$0
Administrative
Penalties
Assessed*
$5,930,181
$1,101,822
$4,940,169
$3,100,756
$2,945,960
$5,587,018
$373,752
$1 ,879,843
$0
$ Of
Jiitf.
Relief
$462,502,233
$429,359,353
$1,496,614,587
$0
$500,000
$12,972,600
$290,000,000
$400,000
$0
$ Value of
Adm,
Relief
$16,576,601
$360,940,872
$813,784,601
$582,589
$218,150
$47,288,155
$2,152,581
$2,800,023
$0
$¥alueof
SEPs
$33,109,876
$2,960,218
$13,078,678
$1 ,223,257
$12,000
$6,261 ,460
$428,200
$832,652
$0
59
Totals
$1,244,343,572
* Administrative penalties assessed include $93,100 from RCRA UST field citations.
• Data current as of May 2003.
-------
Twenty Pollutants With Reductions*
for FY
60
4,21S,000
Lead
5,115,000
Crude Oil 3,511,000
BOD
5,531,000
Ammonia
6,473,000
37,344,000
Compoiids
11,791,NO
Solids
22,254,000
Oil I » 2,618,000
Electroplating Treatment Sludge » 2,415,000
SulfuricAcid • 1,092,000
Fluoride » 947,000
(CO) • 714,000
Fuel •
Hydrogen Sulfida •
•
Solwents •
Zinc • 317,000
" This ranking does not include contaminated
soii or groundwater. The numbers reported
represent the pounds of pollutants reduced.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
jr.
Dollar of Actions Concluded:
FY 1998 to FY
EPA Civil Penalties—Administrative
30 :
28
» 21
o
24
22
21 ;;
SIS $21 $21 $14 $21
Administratiwe
EPA Criminal Penalties
150
120
| 90
160
30
0
EPA Civil Penalties —Judicial
150
120
g 90
=
S 60
•wt-
30
0
$14 $141 SIS $102 $84
Jidicial
Value of Injunctive Relief
8 3
2
61
$12 J $S1J $122 $14.7 $I2J
Data current as of May 2003.
-------
EPA Criminal Enforcement:
FY to FY
700
600
— 500
400
300
200
100
131 211 350 113
471 241 322 211
477 231 310 146
4S2 2§i 477 2Si
i?4* 2Si 321 21 i
$ 93 M
$ 121
$1221
$ SSI
$821
* FY2002 includes 190 counter-terrorism investigation initiatives.
-------
Environmental Results Through
Smart Enforcement
FY 2002 Compliance
by
Number of Entities Reached = 589,566
The Compliance Assurance Centers were visited more than 673,000 times.
lorTSCA
20%
Assistance
for 5%
3%
for
far
for
12%
2%
tor CM
47%
for CWA
63
tor
Entities
SOO.OM
500,001
400,001
300,001
200,001
100,001
-------
of FY to FY
Audit Policy
"54 500
I 281 280 429 397 180
Data current as of May 2003.
-------
Fiscal Year
Enforcement and Compliance
Assurance Accomplishments Report
EPA Administrative Compliance Orders:
FY 1 994 to FY
:
\
\ 65
;
I
1,500!
1,0001
500 I
TSCA ICIU
CWM CM
TTie significant number of FY 2000 administrative settlements was due to first-time enforcement of a new SOW A requirement to submit Consumer
Confidence Reports (drinking water quality reports for consumers).
« Data current as of May 2003.
-------
EPA Administrative Penalty Order Complaints:
FY to FY
1,800
1,600
66
1,200
1,000
§00
SOO
400
200
0 Mi M
TSCA RCil
CWA CM
• Data current as of May 2003.
-------
Environmental Results Through
Smart Enforcement
Totals — EPA Civil Enforcement Activity:
FY 1 998 to FY
;
5,000
17,
* /n FY2002 OECA adopted a new policy for counting CAA Inspections.
Under the previous method, '02 inspections would exceed 18,000.
* Data current as of May 2003.
-------
Appendices
Useful Web Sites
Enforcement and Compliance Home Page:
Newsroom:
— Information Resources:
68
Tips and Complaints:
National Compliance Assistance Clearinghouse:
Compliance Assistance Centers:
Audit Policy:
Small Business Policy:
Small Communities Policy:
Sector Notebooks:
EPA Regional Offices:
Laws and Regulations:
State Environmental Agencies:
Environmental Compliance for Automotive Recyclers Center (ECARcenter):
Construction Industry Compliance Assistance Center (CICAcenter):
Border Compliance Assistance Center:
Enforcement and Compliance History Online (ECHO):
-------
Fiscal 'Year
Enforcement and Compliance
Assurance Accomplishments Report
Information About
EPA Regions
•T
m
if
Gt
ur
•Y
II
H ••
IE
H
M
il (I
t. m m
m *'
•e
\m
•r —IB
\^ii
> 1ST
•u
IE
MD
OC
CT
n
m
u
1C
m » M
m.
Other 9
tf the
Other 2
lice
69
-------
Appendices
Information About
OEGA Offices
EPA's enforcement and compliance assurance program's mission is to protect human
health and the environment by ensuring that regulated entities and Federal, State,
~~~~ Tribal, and local governments comply with our nation's environmental requirements for
keeping our air, land and water clean, EPA's OECA achieves these goals by working in
partnership with State governments, Tribal governments and other Federal agencies
and using an integrated approach of compliance assistance, compliance incentives
and innovative civil and criminal enforcement.
The Office of Compliance (OC) assists industries and other regulated entities to
improve their compliance with environmental laws. OC also works with EPA Regions
and Headquarters to establish national enforcement and compliance priorities, monitor
compliance, develop and track performance and measure and evaluate results,
The Office of Criminal Enforcement, Forensics and Training (OCEFT) directs EPA's
criminal program, provides technical and forensic services for civil and criminal inves-
tigative support and provides training for Federal, State, and local environmental pro-
fessionals, OCEFT also provides investigative and technical support to the Federal
government's homeland security program.
The Office of Federal Activities (OFA) reviews all Federal Environmental Impact
Statements (EISs) prepared under the National Environmental Policy Act (NEPA); main-
tains a national EIS filing system; assures that EPA's own actions comply with NEPA
and other environmental requirements; and provides technical assistance, compliance
assistance, enforcement and capacity building.
The Office of Environmental Justice (OEJ) provides a central point for EPA to
address environmental and human health concerns in all communities, including minor-
ity communities and/or low-income communities—a segment of the population that
has been disproportionately exposed to environmental harms and risks.
-------
Environmental Results Through
Smart Enforcement
The Office of Regulatory Enforcement (ORE) works with States, EPA Regional
Offices, Tribes, and other Federal agencies to assure compliance with the nation's
environmental laws by investigating violations, deterring violations of Federal environ- ~
mental laws through civil enforcement actions and providing incentives to those mem-
bers of the regulated community to comply with the law.
The Office of Site Remediation Enforcement (OSRE) facilitates, coordinates and
evaluates the enforcement of EPA's national hazardous waste cleanup programs:
Comprehensive Environmental Response Compensation and Liability Act (CERCLA or
Superfund), Resource Conservation and Recovery Act, Oil Pollution Act, and
Underground Storage Tanks.
The Office of Planning, Policy Analysis and Communications (OPPAC)
recommends national policy on issues pertaining to environmental enforcement and
compliance and addresses emerging and crosscutting issues, such as innovation in
OECA's programs,
The Federal Facilities Enforcement Office (FFEO) is responsible for ensuring
that Federal facilities take all necessary actions to prevent, control and abate
environmental pollution.
-------
Appendices
Useful Contact Information
Environmental Emergencies
(To report oil spills and chemical accidents): 1 800 424-8802
Office of Enforcement and Compliance Assurance: 202 564-2440
Office of Compliance: 202 564-2280
Office of Regulatory Enforcement: 202 564-2220
Office of Site Remediation and Enforcement: 202 564-5110
Office of Criminal Enforcement, Forensics and Training: 202 564-2480
Office of Environmental Justice: 202 564-2515
Office of Planning, Policy Analysis & Communications: 202 564-2530
Federal Facilities Enforcement Office: 202 564-2510
Office of Federal Activities: 202 564-5400
Administration and Resources Management Support Staff: 202 564-2455
Mailing Address:
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., NW
Washington, D.C, 20460-0001
-------
,»"?•• •„.'- -'V1**,*!- %
,"••> ;:?»...„. ™;J*?*t,t-s
------- |