FY2006
      OECA Accomplishments Report
Office of Enforcement and

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x>EPA
U.S. Environmental Protection Agency
Office of Enforcement and Compliance Assurance (2201 A)
Washington, D.C.
EPA-300-R-07-001
Spring 2007
www.epa.gov/compliance

W9 Recycled/Recyclable—Printed with vegetable oil based inks on 100% postconsumer, process chlorine free recycled paper.

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Message from the Assistant Administrator,..,.,,.,..,.	.,..,.,,.,..,.,,.,..,. 2





What We Do [[[ 5





   OECA's Mission	5





   Compliance	5





   Enforcement	7





   OECA's National Priority Activities .,..,.,,.,..,.,,.,..,.,,.,..,.,,.,..,..,.,,.,. 9





   Engaging the Public[[[ 12





Fiscal Year 2006 Environmental Results at a Glance ..,.,,.,..,.,,.,..,.,,.,..,.,, 13





Message on Behalf of State Environmental Commissioners	21






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"Y" am proud to present the fiscal year (FY) 2006
  |   accomplishments of the U.S. Environmental Protection
jSL Agency's (EPA's) Office of Enforcement and Compliance
Assurance (OECA). These results demonstrate that we are
making significant progress in protecting the nation's
environment and public health, and achieving lasting
environmental results, The OECA FY 2006 accomplishments
rank among the top three years in the Agency's history,
Environmental results are apparent through America's
cleaner air, purer water and better-protected land, This
report highlights a variety of areas in which significant
environmental accomplishments and results were obtained,

In FY 2006, our noteworthy results included precedent-setting civil and criminal
enforcement actions addressing serious environmental problems, These results were
obtained through a combination of strategic national civil and criminal enforcement
priorities, including targeted compliance assistance, monitoring, and incentives,
Our priority enforcement activities are responsible for nearly 75 percent of the 890
million pounds of pollutant reductions achieved, as well as more than  70  percent of
the $4 billion worth of investments in pollution prevention and control obtained  in
injunctive relief.

Most of EPA's enforcement and compliance assistance activities are conducted by
our regional offices, The regional offices serve as the Agency's first point of contact
for the regulated community. The regions are critical in achieving the results we
highlight. They play a vital  role  in the enforcement process, from providing compli-
ance assistance and conducting inspections to negotiating settlements or litigating
cases, The results we report are a direct result of our regional offices' fine efforts.

Additionally, our counterparts in the states conduct front-line environmental
enforcement and compliance activities. In recognition of this fact, and based on
a strong  desire to strengthen and expand our federal-state enforcement relations,

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 I extended to the Environmental Council of the States (ECOS)1 an opportunity to
 include state accomplishments in this report. I am pleased that they have accepted this
 opportunity, and I trust that the information on the states' efforts, in addition to the
 OECA accomplishments we are reporting, will provide a richer and fuller picture of the
 significant environmental enforcement activities taking place across our nation.

 Criminal enforcement, with its potential  for incarceration and fines, represents the
 strongest tool in EPA's  enforcement arsenal. The criminal enforcement program has
 been strengthened by a strategic focus on  cases that have the largest environmental
 impact, This focus has maximized our impact in protecting human health and the
 environment, Our message for criminal violators is clear: those who knowingly ignore
 our nation's environmental laws and regulations, whose actions cause or threaten harm
 for the sake of profit, will put both their fortune and their liberty at risk,

 One of EPA's most important goals is to achieve environmental justice. Environmental
justice  means  ensuring the fair treatment and meaningful involvement of all people
 regardless of race, color,  national origin,  or income with respect to the development,
 implementation, and enforcement of environmental laws, regulations, and policies,
 This report  includes OECA's environmental justice activities and progress made in
 FY 2006 in  this vital area.

 The public plays a pivotal role in EPA's mission. Just as the public relies on EPA to
 protect the air, water, and land, EPA relies  on the help and support of the public in
 protecting the environment. Our nation's environment has improved through the
 commitment and involvement of its citizens, Historically, the  broader the public
 participation, the greater the environmental gain.
-Si
  The Environmental Council of the States (ECOS) is the national non-partisan, nonprofit association of state
  and territorial environmental commissioners. ECOS' members, environmental commissioners, are responsible at
  the state level for implementation of environmental programs delegated to them under federal statutes by
  EPA. Commissioners also are responsible for implementing state laws, reporting to the governor, and working
  with state legislatures, and are accountable to the public in their state.

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Our enforcement toolkit now includes an easy-to-spot badge icon
on EPA's home page—marking our site for reporting potential environ-
mental violations, The Report a Violation Web site  (www.epa.gov/tips)
invites you to be a partner in our work by providing an effective venue
for the public to  report suspected  environmental violations.
   EPA
Violations
Further, OECA's Web site (www.epa.gov/compliance) provides a wealth of information on
environmental enforcement and compliance assistance, This Web site is a powerful tool
that enables citizens to partner with EPA in our mutual efforts to be good environmental
stewards  of our air, water and land.

We continue building a vigorous enforcement program by using  all of the enforcement
and compliance tools available; by developing new, more user-friendly tools; encouraging
partnerships with states and tribes; integrating environmental justice into the Agency's
overall efforts;  and engaging the public. I invite you to read this report and join in this
important effort.


                                                      GRANTA Y, NAKAYAMA
                                       EPA Assistant Administrator for Enforcement
                                                        and Compliance Assurance

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OECA's
     jf"	"""%_ ECA's mission is to improve the environment and protect human health by
    1      (ensuring compliance with environmental requirements, preventing pollution, and
     %^-#? promoting environmental stewardship, The national enforcement and compliance
    assurance program is characterized by its multimedia scope and breadth, The national
    program is responsible for maximizing compliance with 10 distinct federal environmental
    statutes that address prevention and control of air pollution, water pollution, hazardous
    waste, toxic substances, and pesticides. Criminal enforcement's special agents are fully
    authorized law enforcement officers who not only enforce all the federal environmental
    statutes but also enforce U.S. Criminal Code (Title 18) violations often associated with
    environmental crimes (e.g., conspiracy, false statements), OECA oversees compliance and
    enforcement activities in 28 separate program areas.
Compliance
Compliance Assistance
    OECA uses a variety of tools to achieve compliance—assistance, incentives, monitoring, and
    civil and criminal enforcement, OECA's compliance assistance program provides detailed
    information to hundreds of thousands of regulated entities, helping them understand and
    meet their environmental obligations, It is a vibrant, multi-faceted program that delivers
    compliance assistance  ranging from electronic materials to workshops and onsite visits.
    Through partnerships with other compliance assistance providers (e.g., trade associations,
    academic institutions, nonprofit organizations, state and local governments) OECA has
    enlarged the inventory of resources available to regulated  entities, developed specialized
    sources of in-depth information, and created forums for exchange of "best practices,"

    In FY 2006 alone, OECA provided compliance assistance to more than 878,000 individuals
    and businesses. OECA staff also develops and delivers compliance assistance resources that
    are used by other assistance providers. Additionally, each of EPA's 10 regional offices has
    developed compliance assistance, pollution prevention, and innovation resources targeted
    toward the compliance needs of its region.

    OECA targets areas where environmental regulations are potentially misunderstood,
    Compliance assistance  resources include virtual Compliance Assistance Centers, comprehen-
    sive Web sites, compliance guides and training materials, as well as diverse outreach efforts
    aimed at specific business communities or industry sectors. OECA is constantly expanding

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 Edwin Piiiero
 Federal Environmental Executive
 About 2004 EPA partnership with federal agencies:

 "As the Federal Environmental Executive, my office
 and I are very pleased to work with EPA and the
 Army Corps of Engineers Construction Engineering
 Research Laboratory on EedCenter (www.fedcenter.gov),
 the new environmental stewardship and compliance
 Assistance center designed for U.S. government
facilities, FedCenter enables federal facilities to pool
 expertise and resources, collaborate toward better
 environmental performance find take a leadership role
 in environmental stewardship. We look forward
 to continuing our partnership with EPA, the Corps
 and other agencies as FedCenter evolves into an
 environmental resource owned,  operated and used
 by the entire federal community. "
    both the number and scope of these valuable tools in order to reach other areas of
    compliance problems, additional business sectors, and more individuals, These efforts are
    yielding results, In FY 2006, 88 percent of the centers' regulated entity survey respondents
    reported that they increased their understanding of environmental requirements; 82 percent
    reported that they improved their environmental management practices; and 55 percent
    reported that they reduced, treated or eliminated pollution as a result of center assistance.

Compliance  Monitoring
    OECA monitors activities to ensure that the regulated community is complying with
    environmental laws and regulations. Monitoring is achieved through onsite visits by
    qualified inspectors and by reviewing the information that EPA, a  state, or a tribe requires
    the regulated party to submit. A broad spectrum of data is collected, reflecting the diverse
    requirements of the various federal environmental laws.

                     In FY 2006, OECA conducted more than 23,000 compliance inspections
                     and  performed more than  352 complex civil investigations under nine
                     statutory programs. If inspections reveal evidence of a potential criminal
                     violation of environmental law, or if a review of data indicates possible
                     fraud, the criminal enforcement program  is asked to investigate, The
                     criminal  program investigated 305 new environmental crime cases in
                     FY 2006 and  helped successfully prosecute significant cases,

                     Compliance Incentives
                     EPA  uses its compliance incentive policies to promote self-policing,
                     improve environmental management practices,  and reduce pollution in
                     the environment. In exchange for mitigation of civil penalties, EPA's
                     compliance incentive  policies—the EPA Audit Policy and  Small Business
                     Policy—encourage regulated  entities to  proactively audit their compliance
                     status, disclose their violations to EPA, return to compliance, and do
                     whatever is necessary to maintain compliance.  Self-auditing and self-
                     disclosure under the Audit Policy help EPA and  industry  to conserve
                     resources by avoiding costly  litigation. The Small Business Policy also
                     promotes compliance specifically for small businesses (100 or fewer
                     employees) by providing incentives for disclosure and correction of
                     violations that  include elimination of penalties  entirely.  In FY 2006,
                     tailored incentive programs in particular sectors (e.g., colleges/universities
                     and  healthcare) and corporate-wide auditing agreements improved
                     compliance and environmental management. In FY 2006, OECA resolved
                     a five-year record number of voluntary  disclosures (1,475).

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Enforcement.
    A strong commitment to civil and criminal enforcement is vital to our program. OECA and
    its partners—the U.S.  Department of Justice, states, tribes, and local governments—work
    together to ensure that our nation's environmental laws are followed and achieve
    environmental improvements needed to protect human health and the environment.

Civil  Enforcement
    Civil enforcement actions can be administrative orjudicial. Administrative actions  are a
    form of civil action brought before an Agency decision-maker, rather  than a federal court
   judge. In judicial actions, EPA is represented by the Department of Justice.

    OECA brings administrative andjudicial actions that are usually resolved by settlements
    which often can require polluters to:
    *  Pay penalties

    4>  Implement, repair, and upgrade pollution control
       technologies

    *  Correct compliance problems

    «t»  Clean up waste and/or take action to reduce pollu-
       tion and prevent problems from recurring

    Civil actions can achieve significant health and environ-
    mental protections—addressing illegal contamination of
    air, water, and land by businesses, governments, individ-
    uals, and other entities, curing violations and preventing
    future contamination,

    In many settlements, Supplemental Environmental
    Projects (SEPs) are environmentally beneficial actions
    that a violator agrees to perform as part of an enforce-
    ment settlement, SEPs go beyond compliance and pro-
    vide significant additional benefits to public health and
    the environment, In FY 2006, violators in 220 civil
    enforcement cases agreed to implement SEPs with a
    value of more than $78 million,
       Air

More than 2,500 animal feeding operations (AFOs) entered
into consent agreements with OECA under EPA's AFO Air
Compliance Agreement in FY 2006, which covered nearly
14,000 farms, including swine operations, dairy operations,
egg-lay ing operations, and broiler chicken operations. Under
these agreements, participating AFOs will take part in a two-
year, nationwide monitoring study to evaluate air emissions
from AFOs,  and EPA will use these data to develop a method
for estimating air emissions. Additionally, OECA is settling
liability for  certain             and current violations by
these AFOs. The agreements recover nearly $2.9 million in civil
penalties. Following the completion of the monitoring study
and the publication of the emission-estimating methodologies,
participating AFOs will  utilize these methodologies to determine
         regulatory requirements and      must certify
compliance  with all applicable requirements.

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Mobile source pollutants include smog-forming volatile organic
compounds and nitrogen onides, tonic air pollutants such as
cancer-causing benzene, and parti cu late matter or "soot" that
are responsible for asthma and other respiratory illnesses, OECA
enforces the Clean Air Act provisions governing motor vehicles
and engines, including emissions standards for manufacturers of
new motor vehicles, passenger cars and light trucks, and heavy-
duty motor vehicle engines. The requirements are designed to
limit harmful emissions from these vehicles. In FY 2006,
DaimlerChrysler      to      defective emissions controls on
nearly 1.5 million Jeep and Dodge vehicles from model years
1996  through 2001 at an estimated cost of $90 million. This
action will resolve       Clean Air Act violations of failing to
properly disclose defective catalytic converters. The company
also will pay a  $2 million civil penalty and spend at least
$3 million to implement a Supplemental Environmental Project
to reduce emissions from      engines currently in use.
  '
Superfund Enforcement
Cleanup of Superfund sites is paid for either by the parties
responsible for contamination or by the Superfund Trust
Fund, Under the Superfund law, OECA is able to make those
companies, individuals, or federal agencies responsible for
contamination at a Superfund site perform and pay for the
cleanup work at the site. OECA has a longstanding policy to
pursue "enforcement first" throughout the Superfund
cleanup process. This policy helps to conserve the resources
of the Superfund for cleanup of those sites where viable
responsible parties do not exist, In FY  2006, OECA secured
private party and federal agency commitments for cleanup
and cost recovery that exceeded $555 million,

Criminal Enforcement
Criminal enforcement is brought against those who knowing-
ly disregard or are criminally negligent in violating environ-
mental laws. Combining state-of-the art forensic analysis
and case support, OECA's Office of Criminal Enforcement,
Forensics, and  Training (OCEFT) investigates violations of fed-
eral environmental laws and associated crimes (e.g., mail
fraud, smuggling, money laundering, conspiracy),
                                OCEFT pursues environmental crimes against major national and international corporations,
                                as well as small  businesses who violate the law, OCEFT works closely with the Department of
                                Justice to take appropriate and necessary legal action in federal court to bring polluters into
                                compliance with federal environmental laws. Prosecutors can charge individuals, as well as
                                the facility and corporation, with  environmental crimes.  Indictments against culpable corpo-
                                rate executives provide significant deterrence, which is one of the primary goals of criminal
                                enforcement, Senior decision-makers for the regulated community will think twice about
                                deliberately breaking the law if they understand that they face incarceration, rather than
                                only corporate fines, for their criminal conduct.

                                The OCEFT Homeland Security Division provides criminal  investigative support to other  law
                                enforcement agencies in response to suspected terrorist  incidents  involving releases of  pollu-
                                tants to the environment, This support includes laboratory analysis and scientific support
                                (e.g., forensic evidence collection  at crime scenes involving hazardous materials),

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    The National Enforcement Investigations Center (NEIC), OECA's Forensics Science Division,
    is a state-of-the-art, accredited forensics center. NEIC scientists, engineers, and environ-
    mental professionals provide expert support to both EPA's civil and criminal enforcement
    programs through compliance monitoring and engineering evaluations, forensic laboratory
    analysis, information management, computer forensics, and courtroom testimony, NEIC
    continues to provide scientific forensic support to the enforcement program's national
    enforcement priorities.

OECA's National Priority Activities
    OECA established national priorities for FY 2005—FY 2007  and announced these priorities
    through the National Program Managers Guidance in May 2004. OECA uses several criteria
    to determine whether an  activity is appropriate for selection as a national priority,

    *  Significant Environmental Benefit: Can significant environmental benefits be gained, or
       can risk to human health or the environment be reduced, through focused EPA action?

    4>  Pattern of Noncompliance: Are there identifiable and  important patterns
       of noncompliance?

    *  Appropriate EPA Responsibility: Are the environmental and human health risks or the
       patterns of noncompliance sufficient in scope and scale such that EPA is best suited to
       take action?

    In support of EPA's 2003-2008 Strategic Plan, OECA designated several important problems
    as national priorities for compliance and enforcement activities, In FY 2006, the cumulative
    efforts under the national priorities were responsible for 74 percent of the total air and
    water pollutant reductions and 71  percent of the value of  injunctive relief achieved by
    OECA,  Performance-based strategies were developed to address the national priority
    problems listed  in the following sections.

Clean Air  Act  Priorities
    Air
    Toxic air pollutants are those pollutants that are known or suspected to cause cancer or
    other serious health effects (e.g., reproductive or birth defects) or adverse environmental
    impacts, These pollutants come from a wide variety of sources, including industrial and  utili-
    ty operations, as well as smaller manufacturing and commercial sources.

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          Modifying an existing source of emissions to increase production or to extend the life of a
          facility has the potential to increase considerably the amount of pollution emitted from the
          source or facility. The New Source Review/Prevention of Significant Deterioration (NSR/PSD)
          national  priority strategy aims to achieve maximum compliance with  environmental regula-
          tions to protect human  health and the environment,


          Annual air emissions from the petroleum refining sector include volatile organic
          compounds, sulfur dioxide, nitrogen oxide, carbon monoxide, and particulate matter.
          These air  pollutants contribute to respiratory illness and heart disease, contribute to
          formation of acid rain, reduce visibility, and can be transported over long distances
          before falling on land or water.

      Wet Weather Priorities

          During wet weather events, water flows from concentrated animal feeding operations
          (CAFOs) transport nutrients such as nitrogen and phosphorus, as well  as other pollutants
          including bacteria, pesticides, antibiotics, hormones, and trace elements including metals, to
          local waterways. Impacts on ecosystems and human health include contamination of public
          drinking water  sources and private well water, recreational and commercial fish kills and
          advisories, and  beach closings.

                                            and
          Combined sewer overflows and sanitary sewer overflows cause environmental problems
          when heavy rainfall or snow melt exceeds the  storage capacity of pipes and/or water
          treatment plants, discharging untreated sewage, storrnwater, toxic materials, and industrial
          wastewater into rivers, lakes, and oceans, Bacteria, pathogens, nutrients, untreated
          industrial wastes, oil, pesticides,  wastewater solids, and debris enter waterways when
          overflows occur, causing human  health risks such as diseases that range in severity from
          mild  gastroenteritis to life-threatening ailments (e.g., cholera  and infectious hepatitis),


          Storrnwater runoff transports water carrying contaminants directly  over land into
          waterways from large urban areas, construction sites, and  municipal separate storm sewer
          systems and is  one of the leading causes  of water quality impairment, Typical storrnwater
          pollutants that impair waterways include sediment, bacteria, organic  nutrients, hydrocar-
          bons, metals, oil, and grease.
m

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Waste Program Priorities

    The mineral processing and mining sectors generate more wastes that are corrosive or
    contain toxic metals than any other  industrial sector. Over the past decade, EPA has found
    that many of the facilities that manage these wastes have contaminated ground water,
    surface water, and soil, either through failure to comply with state or federal environmental
    requirements or legally permissible waste management practices. Large-scale mineral
    processing and mining operations often severely affect water
    supplies and wildlife and create environmental damage, Many
    facilities are located in populated areas, making health risks a
    significant concern for EPA,


    Financial responsibility provisions in  federal law require an
    operator of a treatment, storage, or disposal facility to have
    adequate funds to address the closure of such a facility. The
    funds provide for the ability to manage the hazardous wastes,
    hazardous substances, toxic materials, or other pollutants that
    these facilities handle so they do not contaminate soil, ground
    water, surface water,  or the air, Having the financial resources
    to perform closure and cleanup are an  important part of
    protecting human health and the environment from solvents,
    dioxins, oils, heavy metals, polychlorinated biphenyls (PCBs),
    and other dangerous  pollutants that contaminate soils, ground
    water, surface waters, and sediments,

Additional  Priorities

    OECA works with federally recognized Indian  tribes to address
    significant human health and environmental  problems associated
    with drinking water, solid waste, and environmental risks (e.g.,
    lead-based  paint) in tribal  schools through capacity building
    and compliance monitoring,


    Environmental justice is the fair treatment and meaningful
    involvement of all people regardless  of race, color, national
    origin,  or income with respect to the development, implementa-
    tion, and enforcement of environmental laws, regulations, and
Rosa Hilda Ramos
Puerto Rican community Activist
About  1999 EPA settlement with the Puerto Rico
Electric Power Authority (PREPA):

"All of us were sick. We raised our voices and. EPA
Region 2's Caribbean Environmental Protection
Division, And OECA representatives truly addressed
our concerns. They initiated and completed a process
that improved communication and formed a, strong
partnership that changed everything for us. The air
is clean now. A $3.4 million Supplemental Environ-
mental Project to protect a butterfly and bird sanctuary
is now in process, empowering us to be in charge of our
own lives. The partnership has grown as to even
include the polluters! It is a unique project."
                                                11

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f H
policies. EPA's goal is to provide an environment where all people enjoy the same degree of
protection from environmental and health hazards and equal access to the decision-making
process to maintain a healthy environment in which to live, learn, and work.

The Office of Environmental Justice (OEJ) coordinates the Agency's efforts to integrate
environmental justice into all  policies, programs, and activities, EPA's environmental justice
mandate extends to all of the Agency's work, including setting standards, permitting
facilities, awarding grants, issuing licenses and regulations, and reviewing proposed
actions by the federal agencies. OEJ works with all stakeholders to constructively and
collaboratively address environmental and public health issues and concerns, OEJ also
provides informational, technical, and financial resources to assist and enable the Agency
to meet its environmental justice goals and objectives.

            the Public
OECA enlists the public's help in identifying potential civil and criminal environmental
violations in their  communities and workplaces. Public reporting has led to state and federal
enforcement cases and ultimately serves environmental protection well.

In January 2006, OECA unveiled the National Report a Violation Web site at
www,epa,gov/tips  for the  public to report possible environmental infractions, A highly
visible enforcement badge on  EPA's home page invites the public to access OECA's tips
and complaints form online, With more than one million people visiting EPA's home page
monthly,  OECA significantly increased the public's opportunity to protect human health and
the environment. The number of tips and complaint submissions more than doubled since
the Web site's inception in January 2006,

In striving to reach a broader audience, the Web site includes both an English and Spanish
Reporting Environmental Violations Form. OECA also developed a brochure in English and
Spanish (Reporting Environmental Violations and Denunciando Violadones Ambientales)
to educate the public about the Web site and potential environmental infractions.

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OECA Continues a Strong Five-Year Record

of Substantial Pollution Reductions
    'T'n FY 2006, OECA obtained commitments from industry, governments, and other
    |  regulated entities to reduce pollution by nearly 900 million pounds. Regulated entities
    A. will invest a total of $4.9 billion to install pollution controls, reduce pollution, and
   achieve compliance with environmental laws, This reflects a sustained five-year record of
   pollution reductions totaling almost four billion pounds, and investments of almost
   $27 billion in pollution control equipment and other actions to reduce pollution.
                   of
                     (millions)
     1,200

     1,000

      800

      600

      400

      200

       0
          2002    2003          2005
                        Year {FY)
                                     2006
10

 8

 6

 4

 2
                  in
                 ($
          2003    2004    2005
              Fiscal Year (FY)
                              2006
                                                                                                  13

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                         Civil  Enforcement Activity Increases
                            In FY 2006, OECA's civil enforcement and cleanup enforcement programs concluded a total
                            of 173 judicial cases and 4,624 final administrative penalty order settlements, a significant
                            increase from FY 2005, and resolved self-disclosed violations for 1,475 facilities. OECA
                            referred 286 civil cases to the U.S. Department of Justice, the highest total in five years.


                                                                                        to

     250                                                  300









                 2003    2004   2005                                          2004           2006
                     Fiscal Year (FY)                                           Fiscal Year (FY)
                         Enforcement Focus  on  National Air        Water

                         Pollution  Priorities Produces

                         Environmental Results
                            During FY 2006, OECA continued to focus on key air and water pollution problems that
                            were identified as national enforcement priorities for FY 2005-FY 2007, including overflows
                            from combined and sanitary sewer systems (CSOs and SSOs), contaminated stormwater
                            runoff, water contamination from concentrated animal feeding operations (CAFOs), refinery
                            air emissions, toxic air pollutants, and excessive air emissions from sources that failed to
                            comply with the Clean Air Act's New  Source Review and Prevention of Significant
                            Deterioration (NSR/PSD) requirements. This focus has produced significant results in
                            environmental and public health benefits, Overall, 74 percent of the total pollution
                            reductions and 71 percent of the total pollution prevention and control investments
                            obtained by the civil enforcement program in FY 2006 were in national priority areas.
14

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           FY
                          To        Air
Priority
CAFO
CSO/SSO
Stormwater
Total Wet Weather
Pollution Reduced
(pounds)
12,197,786
26,291,797
194,807,116
233,296,699
Investment in Pollution
Control
$9,706,449
$928,795,370
$149,813,726
$1,088,315,545
Civil Penalties
$400,750
$1,834,512
$6,574,958
$8,810,220


Toxic Air Pollutants
Refining
Total Air
134,616,000
356,945
292,054,000
427,026,945
$310,100,000
$1,315,442
$2,073,221,396
$2,384,636,838
$525,000
$1,214,768
$14,161,163
$15,900,931

Total
660,323,644
$3,472,952,383
$24,711,151
Civil Air Enforcement Protects  Public  Health
    OECA actions to enforce Clean Air Act requirements in FY 2006 resulted in a total of more
    than 583 million pounds of pollutants reduced, This reduction will have substantial benefits
    for public health. The top 11 air enforcement actions alone will result in annual reductions
    of harmful air emissions of sulfur dioxide (S02) and nitrogen oxides (NOX) totaling 379
    million pounds and 92 million pounds, respectively, When the consent decrees entered in
    FY 2006 are fully implemented (e.g., all required pollution controls are installed and in
    operation), the annual human health benefits from these air emission reductions are valued
    at $3,5 billion, The health  benefits include reducing premature deaths among people with
    heart or lung disease, preventing hundreds of cases of bronchitis and nonfatal heart attacks,
    as well as preventing thousands of cases of respiratory ailments, including aggravated
    asthma, The most significant air pollution reductions from enforcement actions concluded
    in FY 2006  resulted from OECA's work in national priority areas,

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                     FY                  Air
Priority
NSR/PSD
Pollutants Reduced (pounds)
135 million
Investments in Pollution
Control
$310 million
New source review/prevention of significant deterioration requirements of the Clean Air Act
requires industrial facilities to obtain permits for plant modifications that increase air pollution
emissions.
Toxic Air Pollutants
0,4 million
$1 million
Toxic air pollutants are known or suspected to cause cancer or other serious health effects such as
reproductive or birth defects, or adverse environmental impacts.
Petroleum Refining
292 million
$2,073 million
Air emissions from petroleum refineries such as volatile organic compounds, sulfur dioxide, nitro-
gen oxide, carbon monoxide and particulate matter contribute to respiratory illness and heart dis-
ease and can travel long distances before falling on land and water.
Total
427.4 million
million
   OECA's multi-year focus (FY 2005-FY 2007) on reducing pollution from petroleum refineries
   resulted in a total of 85 refineries (representing 77 percent of domestic refining capacity)
   being subject to enforceable orders and consent decrees requiring substantial pollution
   reductions, Negotiations are ongoing with refiners representing an additional 11 percent
   of capacity.

Civil Water Enforcement  .Reduces Discharges  and

Improves  Sewer Systems
   OECA's actions to enforce Clean Water Act requirements in FY 2006 resulted in more than
   283 million pounds of pollutants reduced. Most of these reductions are the result of EPA's
   national priority efforts to control overflows from CSOs and SSOs and contamination caused
   by surface runoff from stormwater and CAFOs, Water pollution from these sources, includ-
   ing sediment, bacteria, raw sewage, untreated industrial wastes, and animal wastes, will be
   reduced by more than 230 million pounds as a result of enforcement actions concluded in
   FY 2006.

   One of the most critical water enforcement priorities on which OECA focused is the
   reduction of overflows and discharges of untreated sewage from CSOs and SSOs into the
   nation's waters. Working in partnership with states, OECA concluded major settlements with


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   dozens of the nation's cities to bring critical sewer systems back into compliance.
   The settlements require comprehensive plans to improve the maintenance and operation
   of systems to reduce overflows, and long-term capital construction projects to expand
   treatment capacity to ensure that sewage is properly treated before being discharged.
   The settlements concluded in FY 2006 will reduce overflows of untreated or inadequately
   treated sewage by 26 million pounds, with an estimated investment of $930 million in
   sewer system upgrades and improvements,

                 FY 2006        From Water Priority
Priority
Stormwater
Pollutants Reduced (pounds)
195 million
Investments in Pollution
Control
$150 million
Stormwater runoff from large urban areas transports contaminants directly over land and into
waterways.
CAFO
12 million
$10 million
Water discharges and runoff from concentrated animal feedlots (during wet weather events),
transport nutrients, bacteria, pesticides, antibiotics and hormones to local waterways.
cso/sso
26 million
million
Combined sewer overflows and sanitary sewer overflows discharge untreated sewage, industrial
wastewater, and other pollutants into rivers, lakes, and oceans when wet weather events exceed
the storage capacity of pipes and treatment plants.
Total
233 million
$1,090 million
Toxic Substances Control Act (TSCA)
Civil Enforcement  .Results in Largest
Administrative Penalty
    In FY 2006, OECA reached a significant settlement with DuPont, a large chemical
    manufacturing company, for TSCA violations. The administrative enforcement action
    against DuPont for failing to report substantial risk information about the synthetic
    chemical perfluorooctanoic acid (PFOA) resulted in a settlement under which DuPont
    agreed to pay a $10,25 million penalty, the largest civil administrative penalty EPA has
    ever obtained under any federal environmental statute, The TSCA settlement includes
                                                                                                 17

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    two Supplemental Environmental Projects valued at $6.25 million that are expected to
    result in the disclosure of previously unreported information that will help the scientific
    community better understand the presence of toxic substances in the environment and
    potential risks they pose to the public,

Criminal Enforcement Focuses  on

High Impact Cases
    During FY 2006, OECA's Criminal Enforcement Program increased its number of national
    enforcement priority investigations almost five-fold by opening 24 cases (up from five last
    year) in six  national priority areas, OECA participated in the successful prosecution of
    several high-impact cases that secured large sentences, enhanced deterrence, and reduced
    environmental pollution. Following the longest environmental crimes trial (seven  months)
    since the criminal environmental enforcement program was established in 1982, the
    Atlantic States Cast Iron Pipe Company and four individual defendants were found guilty
    of numerous violations, Sentencing is scheduled for later  in 2007. As a result of all of the
    criminal sanctions assessed in FY 2006, defendants will serve a total of 154 years in jail
    and pay almost $43 million  in fines, as well as an additional $29 million in environmental
    projects imposed as part of the sentences,
FY 2006 Criminal Enforcement Program Results
Environmental crime cases initiated
Defendants charged
Sentences (years)
Fines and restitution
Judicially mandated projects (cost in dollars)
Pollutant reductions (pounds)
305
278
154
$43,000,000
$29,000,000
17,000,000
Superfund  Enforcement Gets Sites  Cleaned  Up
    As a result of OECA's Superfund enforcement actions in FY 2006, parties responsible for
    hazardous waste pollution at Superfund sites will pay $391  million to study and clean up
    contamination, including  15 million cubic yards of contaminated soil and approximately 1.3
    billion cubic yards of contaminated ground water. In addition, potentially responsible parties
    agreed to pay $164 million to reimburse EPA's past expenditures at Superfund sites,
    allowing additional sites to be cleaned up. OECA continues to follow an "enforcement first"
    strategy to  preserve Superfund funds for sites where there are no viable responsible parties.

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Federal Facilities  Enforcement
    In FY 2006, EPA's Federal Facility Enforcement Office (FEED) Superfund enforcement efforts
    resulted in federal agency commitments to clean up more than 850 million cubic yards of
    soil, sediment, and water at facilities they operate. Federal agencies also committed to
    significant improvements in environmental compliance, preventive measures or management
    improvements at their facilities. The total cost of direct environmental benefits and
    corrective action that the federal agencies committed to  is more than $125 million, Federal
    facilities also will pay close to $400,000 in penalties as a result of enforcement actions
    taken this year.

NEPA Review        Tracking  of

International Shipments
    FY 2006 was the sixth year in which OECA's Office  of Federal Activities (OFA) collected data on
    the effectiveness of EPA's reviews of other agencies' environmental impact statements (EISs)
    required under the National Environmental Policy Act (NEPA), The data continue to show that
    EPA's review is helping agencies identify mitigation measures that can avoid or minimize the
    potential adverse environmental impacts of their proposed projects, For FY 2006, agencies
    agreed to mitigate 70.7 percent of the significant environmental impacts identified by EPA in
    its review of their draft EISs, meeting and exceeding our goal of 70 percent.

    In FY 2006, OFA reviewed and processed 972 hazardous waste notices and 9,024 waste
    streams for imports and exports of hazardous waste. These actions ensured environmentally
    sound management of both hazardous wastes entering the United Sates and  U.S.-generated
    hazardous wastes destined  for foreign countries. For example, OECA's objection to a notifi-
    cation of intent to import hazardous waste prevented the importation of 20,000 liters of
    hazardous waste to a U.S. facility that could  not properly manage it.

OECA Strengthens  Commitment to

Environmental Justice
    In FY 2006, EPA Administrator Stephen L, Johnson reaffirmed the Agency's commitment to
    environmental justice by directing Agency staff to establish measurable outcomes that
    address the eight national environmental justice priorities, The priorities are:

    *•  Reducing asthma attacks

    *  Reducing toxic air pollutants

    *  Reducing blood lead levels
^a


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                                 *  Ensuring that companies meet environmental laws

                                 *  Ensuring that fish and shellfish are safe to eat

                                 *  Ensuring that water is safe to drink

                                 *  Revitalizing brownfields and contaminated soils

                                 *  Collaborative problem solving

                                 EPA renewed the charter of the National Environmental Justice Advisory Council, the federal
                                 advisory committee that provides  the Administrator with advice and recommendations on
                                 broad environmental and/or public health policy issues, In  FY 2006, OECA developed an
                                 Environmental Justice Action Plan and identified opportunities to integrate environmental
                                justice considerations into day-to-day operations. OECA is developing the Environmental
                                 Justice Smart Enforcement Assessment Tool (EJSEAT) for use in OECA's enforcement and
                                 compliance programs, The EJSEAT desktop tool (available to OECA staff in 2007) will assist
                                 OECA in focusing on communities with the greatest need.
    Since 1999, EPA and the Department of Justice have filed a number of
    lawsuits against coal-fired electric utilities alleging that these companies
    made major modifications to their plants without installing equipment to
    control pollution that causes smog, acid rain and soot and that contributes
    to      respiratory         and childhood        under the     Source
    Review provisions of the Clean Air Act.

    OECA  litigated and resolved several of these lawsuits and negotiated
    settlements with 11 companies: Tampa Electric Company; PSEG Fossil;
    Southern       Gas  and Electric Company; Virginia Electric Power
    Company; Alcoa; Wisconsin Electric Power Company; Santee Cooper; Illinois
    Power and Dynegy Midwest Generation; Ohio  Edison; Alabama Power
    Company James H, Miller, Jr. Plant; and Minnkota Power Cooperative
        Square Butte Electric Cooperative. These settlements will result in the
            of approiimately one million tons of pollution from the air annually
    and an expenditure of about $5.8 billion to install state-of-the-art air
    pollution controls.
20

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 Jr^°>ic% n behalf of the states, the Environmental Council of the States (ECOS) is pleased
1      Ito present information on the states' efforts to enforce and ensure compliance
 "'^i,:,,,,,,,/f' with the nation's environmental laws for the EPA OECA FY 2006 Accomplishments
Report. The states work closely with EPA across the country to ensure better protection for
human health and the environment, and we look forward to continuing our strong partner-
ship for years to come.

ECOS and EPA are helping the public to understand the role of the states in ensuring
compliance with environmental laws, This report offers the chance to both clarify our role
for the public and present some of the recent accomplishments from state efforts. A little
known fact about state efforts is that the states collect about 94 percent of the environ-
mental quality data that reside in EPA databases. Most of these data are generated from
state issued permits and state air, water, and waste monitoring programs, In addition, the
states make extensive use of voluntary programs, economic incentives, and  information dis-
semination through compliance assistance programs, to prevent pollution before it occurs.

This is the first time information documenting the  role of the states' enforcement and
compliance activities has been included in the OECA Accomplishments Report, in part
because it is difficult to collect, summarize, and analyze data for all 50 states, The informa-
tion that we present is drawn from 1995-2003 survey data  from the June 2006 ECOS report
entitled State Environmental Agency Contributions to Enforcement and Compliance: 2000-
2003 and its predecessor (April 2001) of the same title. We  are working hard with EPA to
meet the challenges of comprehensive and better reporting  on behalf of the states and hope
to be able to present more recent information in future reports.

Enforcement and compliance programs are an integral part of state programs designed to
protect human health  and the environment. We encourage you  to contact state agencies to
learn more about what the states and local governments do and to learn more about what you
can do as a citizen and individual to ensure a safe and healthy environment for the future,
                                                         ROBERT W. KING, JR.
                                       President, Environmental Council of the States
Deputy Commissioner, South Carolina Department of Health and Environmental Control
                                                                                                             21

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S5:;j!|ffe=;~ •'
                                Background
                                    f=sj=^ he state programs play a significant role in ensuring compliance with environmental
                                       1   laws. Programs that carry out requirements of the major national environmental
                                      _JL  laws can be authorized or delegated to the states. To be authorized or delegated to
                                    implement a federal program, a state must demonstrate the capacity to administer all
                                    aspects of the program—one of the most important being the capacity to enforce the law.
                                    Federal law establishes national standards of compliance. The states are permitted, and
                                    often do,  pass laws with requirements more stringent than federal standards.

                                    With authorization or delegation, the states are integral partners in the nation's environ-
                                    mental protection  system, State agencies write rules, set standards, issue  permits, conduct
                                    monitoring, provide information to the regulated community and the public, assess environ-
                                    mental quality, provide compliance assistance, conduct  inspections, and take enforcement
                                    actions leading to  even greater overall protection of the environment,

                                    In carrying out these activities, the states collect about 94 percent of the environmental
                                    quality data retained in each of six major EPA  national data systems. State enforcement
                                                                      programs are robust and contribute substantially to
                                                                      protecting the nation's environment,
     $160
     $140
     $120
     $100
      $80
      $60
      $40
      $20
       $0
      by
($
                                    The states also believe it is important to ensure that
                                    the regulated community achieves and sustains com-
                                    pliance. The states have made substantial investments
                                    in non-traditional enforcement and compliance tools
                                    and technical assistance to provide clear and consis-
                                    tent information to industry, Many state compliance
                                    assistance programs are designed to prevent pollution
                                    before it occurs.
                                                            /
     22

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         Enforcement
   The states, like EPA, employ a broad range of tools in their enforcement programs, including
   the assessment and collection of fines and penalties, For the period 2000-2003, both the
   number of states utilizing enforcement mechanisms and the number of programs using
   these tools increased. The greatest increases include 203 percent for field citations and
   178 percent for stipulated penalties, Between 1995 and 2003, states increased the total
   penalties assessed by 49 percent, The penalties totaled more than $892 million,

State  Use of Supplemental Environmental Projects
   In negotiating penalties in enforcement cases, 49 states have the ability to mitigate a
   portion of the penalty in exchange for Supplemental Environmental Projects (SEPs). SEPs not
   only provide tangible improvements where a violation has occurred, but they frequently
   engage community stakeholders and address environmental justice concerns, For example,
   SEPs can provide diagnostic, preventative, and/or remedial  health care for members of an
   exposed community; clean up and restore contaminated buildings and sites; or restore
   damaged stream  banks and  wetlands,

   In the period 2000-2003, state respondents agreed to perform SEPs totaling $96,2 million
   and were assessed $62.3 million in penalties, From 1995-2003, states  secured
   $171.3 million in SEPs under enforcement settlements,

State  Compliance Assistance  Programs
   The states deliver compliance assistance either directly from the state  agencies, or through
   third parties such as contractors or grantees. The information provided to the regulated
   community and others is designed to help find cost-effective ways to improve environmental
   performance, including the use of pollution prevention and  improved or innovative manage-
   ment practices or technology. The respondents to the 2001 -2003 survey reported;

   * Extensive use of workbooks, onsite visits, Web sites, educational seminars, and permit
      assistance.

   * 56 percent now accept electronic permit applications in more than one program  and
      28 percent issue one or more program permits electronically.

   *• 46 percent include reporting pollution prevention results.

•£%&':'•-•' - -- .  _,, ''.-
                                                                                                          23

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Additional State Compliance Assistance Facts
    *  91  percent of state survey respondents have compliance assistance programs.

    *  30 percent have compliance assistance programs in all applicable delegated programs.

    *  90 percent use compliance assistance programs to address facilities and/or industry sec-
       tors that core program targets do not address (e.g., minor sources, pollution prevention).

    *  77 percent of respondents are supporting compliance assistance activities with grants,
       loans, and tax incentives, or some combination of the same,2
Stale Compliance Monitoring
    The number of regulated facilities that require state agency oversight is quite large. In
    2003, the states reported more than 3 million regulated facilities, an increase of 46 percent
    from 1999. Between 2000 and  2003, the total number of regulated facilities increased from
    326,960 to 439,941 in all five major environmental programs—air, drinking water, surface
    and ground water, hazardous waste, and solid waste,

    For the same period and for the same program areas, the overall number of compliance
    inspections increased by 19 percent, from 114,295 to 135,644. The number of inspections
    for solid waste facilities more than doubled, In addition, the number of reviews of sampling
    and testing records submitted by facilities increased from 400,914 to 522,495,
                                     for                 -      to
Program
Air
Drinking Water
Surface and Ground Water
Hazardous Waste
Solid Waste
Total
States
Reported
26
21
21
21
13
102
2000
80,858
66,453
38,329
135,885
5,435
326,960
2001
90,021
66,841
40,724
138,873
5,286
341,745
2002
96,459
68,181
44,239
141,131
6,903
356,913
2003
118,665
78,742
58,803
165,415
18,316
440,420
    2 39 of the 42 states responded to the compliance assistance portion of the survey for 2000-2003. The defini-
     tion and scope of compliance assistance can vary between the states and EPA.

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for                 -       to
Program
Air
Drinking Water
Surface and Ground Water
Hazardous Waste
Solid Waste
Total
States
Reported
26
21
21
21
13
102
2000
34,870
36,915
29,192
9,206
4,112
114,295
2001
33,768
36,524
36,342
9,812
5,443
121,889
2002
31,780
46,415
37,558
10,160
9,583
135,496
2003
31,441
50,735
35,619
9,099
8,750
135,644
for                 -       to
Program
Air
Drinking Water
Surface and Ground Water
Hazardous Waste
Solid Waste
Total
States
Reported
26
21
21
21
13
102
2000
32,235
241,172
121,289
3,896
322
400,914
2001
51,943
220,787
135,328
3,658
936
414,653
2002
48,959
348,040
148,445
6,578
1,169
555,193
2003
64,279
294,294
154,165
6,384
1,370
522,495

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B.                 FY                 2006  Trends
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2003

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2004
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20

FIFRA
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OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > OECA Accomplishments Report

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Help Us Protect the Environment
          EPA
                    |
    °°W"t is EPA's mission to protect human health and the natural environment—the air, land
     | and water on which life depends, As citizens, each of us can help protect the environ-
    jLment by reporting suspected environmental violations in our communities to
   the proper authorities. We want to make this as easy as possible on our Web site,

   Press the badge on  our enforcement and compliance assurance home page to report
   a suspected environmental violation  in your community.

   Many of our enforcement actions originate from information provided by citizens. Not all
   are violations of federal law, but we  work closely with state, local and tribal authorities to
   protect the environment, If we are unable to address your problem at the federal level,
   we will pass the information along to a state or local authority.

           the        of
   4>  Strong, offensive, or unusual chemical odors

   *  Large numbers of dead animals, including birds or fish

   *  Pipes or valves that bypass waste water treatment systems

   *•  Tank trucks discharging into drains, manholes or surface waters

   *  Oily slicks on bodies of water

   *  Corroded, leaking waste containers

   «t»  Barrels dumped at odd hours or in out-of-the-way places

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*-;•

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