UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
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   OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE
                                                       :

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 Mission Statement:
    OECA's mission is to improve the environment and protect public health by ensuring compliance with
    the nation's environmental laws.
xvEPA
U.S. Environmental Protection Agency
Office of Enforcement and Compliance Assurance (MC2201 A)
Washington, DC
EPA-300-R-07-003
May 2008
www.epa.gov/compliance

To obtain          copies:
E-mail: nscep@bps-Imit.com or phone: 1-800-490-9198

    i Recycled/Recyclable—Printed with vegetable oil based inks on 100% post-consumer, process chlorine-free recycled paper.

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,Ji,J

  Message From the Assistant Administrator......................................... 2




  About OECA	4




  Highlights of FY 2007 Results	5




  Compliance Monitoring — The "Environmental Cop" Is on the Beat	7




  Civil Enforcement Achieves Significant Pollutant Reductions	8




  Criminal Enforcement as a Deterrent............................................. 16




  Superfund Enforcement Accelerates Waste Cleanup ................................ 18




  The Federal Government Does Its Part Through Federal Facility Enforcement............ 19




  Ensuring Compliance in Indian Country	20




  Integrating Environmental Justice	21




  National Environmental Policy Act Review	23




  International  Compliance Activities .............................................. 24




  Making  Legal Requirements Clear: Compliance Assistance	25




  The Public Can Help Prevent Environmental Crime.................................. 27




  Message on Behalf of State Environmental Commissioners	29




  Highlights on State Enforcement and  Compliance	30




  Appendix A: Numbers at a Glance	34




  Appendix B: Organizational Chart................................................ 36





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       s report highlights the U.S. Environmental Protection Agency's
 JL  (EPA's) Office of Enforcement and Compliance Assurance (OECA)
key initiatives, results, and enforcement cases for fiscal year (FY) 2007.
OECA is committed to achieving measurable progress in protecting
our nation's air, water, and land, as reflected in our FY 2007 record-
breaking  results.

In  FY 2007, EPA's civil and criminal enforcement  actions resulted in
commitments by industries, government agencies, and other regulated
entities to spend a record $10.6 billion in pollution controls and envi-
ronmental projects - the highest total in EPA history. These enforce-
ment agreements also reduced  pollutants by 890 million pounds. Nearly 70 percent of this year's
pollutant reductions were achieved by addressing high-priority air and water violations.

OECA's national enforcement priorities - focusing on significant environmental risks and non-
compliance patterns - are essential to achieving results. Our largest civil enforcement actions
for just three  priority areas alone achieved more  than 400 million pounds of pollutant reduc-
tions and more than $7 billion  in injunctive relief and  supplemental environmental projects.
EPA's  12  largest stationary source air enforcement cases alone  will reduce more than 500 mil-
lion pounds of harmful air pollutants, with annual human health benefits estimated at $3.8 bil-
lion. These health benefits include approximately 500 fewer premature deaths in people  with
heart or lung  disease; 50,000 fewer days of missed work or school; and 1,000 fewer hospital vis-
its due to asthma and heart failure annually. These enforcement actions also will reduce harmful
air emissions, including 308 million pounds of sulfur dioxide (S02), 187 million pounds of nitro-
gen oxides  (NOX), and  11 million pounds of particulate matter annually.

Overflows from inadequate combined sewers and sanitary sewers can discharge untreated
sewage and industrial wastewater into rivers, lakes, oceans, and other waterways. FY 2007
enforcement actions led to investments of $3.5 billion in  pollution controls to remove
45 million pounds of pollutants in discharges from  overflows of combined sewers and sanitary
sewers. These investments are more than three times greater than those obtained in  FY 2006.

In  addition, Superfund enforcement and other remediation agreements committed  responsible
parties to invest $688 million last year to clean up contamination and reimburse EPA $314
million for past response and oversight costs. The parties agreed to clean up a record-setting
79 million cubic yards of contaminated soil, or enough  to cover more than 12,000 football fields
with 3 feet of dirt. Polluters also agreed to clean  up 1.4 billion  cubic yards of contaminated
water, which is enough to fill more than 425,000 Olympic-size swimming pools.
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA Accomplishments Report

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EPA provided compliance assistance to a record high of more than 3 million regulated entities
to improve environmental management practices and help prevent pollution in FY 2007. With
the addition of EPA's Tribal Compliance Assistance Center, the Agency now has 15 Web-based
assistance centers that provide information on environmental regulations and compliance
issues for specific industry sectors and groups,

I also made two official visits to the People's Republic of China, where EPA is developing a
program of cooperation with China to ensure that products manufactured in China meet U.S.
environmental requirements. Most encouraging was the agreement to develop cooperative
mechanisms to address problems at the source. Continued  work is planned for FY 2008,
focused on building environmental enforcement capacity in China.

EPA remains a committed pioneer in the federal government's implementation of environmen-
tal justice programs, and  we continue to strive to fully integrate environmental justice  into
Agency programs. In FY 2007, we began piloting Agency environmental justice reviews  for
rulernaking and standards setting, permitting, enforcement and compliance, and site cleanup
and remediation. No other federal agency has attempted to incorporate environmental  justice
into its programs, policies, and  activities as comprehensively as EPA.

EPA's results reflect the hard work of our Regional offices, which  play a pivotal role in
enforcement. Dedicated EPA professionals throughout the United  States provide hands-on
support, from compliance assistance and inspection to negotiating settlements or litigating
cases. Likewise, the  states are crucial partners in ensuring an effective environmental enforce-
ment and compliance program  is in  place throughout our nation.  Again this year, I am  pleased
that  the Environmental Council of the States (ECOS) has included a section in OECA's report,
highlighting successful state enforcement and compliance  efforts conducted  in conjunction
with  our Regional counterparts.

We look toward future environmental successes as OECA strengthens enforcement priorities,
implements new compliance initiatives, and advances Web-based tools to more effectively
reach the public and regulated  community.  I encourage you to continue working with us as
partners in protecting our air, water, and land.
                                                                      Sincerely,
                                        EPA ASSISTANT ADMINISTRATOR FOR
                             ENFORCEMENT AND COMPLIANCE ASSURANCE
                                           MESSAGE FROM THE ASSISTANT ADMINISTRATOR
TV

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==. =~~=QECA's mission is to
     improve the environment
     and protect public health
     by ensuring compliance
     with the nation's


            -EPA        Han
      **f he Office of Enforcement and Compliance Assurance (OECA) is one of the major
        program offices within the U.S. Environmental Protection Agency (EPA) dedicated
        to improving the environment and protecting public health. OECA is responsible for
carrying out EPA's duties of monitoring compliance with environmental laws, providing
compliance information and assistance to the regulated community, and taking civil or
criminal enforcement action as appropriate.

In fiscal year (FY) 2007, OECA  had a total employee workforce of about 3,400 environmental
professionals in EPA's Headquarters and  10 Regional offices. This includes special agents
working on environmental crimes located in Headquarters and 46 field offices nationwide.
Our special agents are fully authorized federal law enforcement officers, like their counter-
parts in other federal law enforcement agencies such as the Federal Bureau of Investigation,
the Customs Service, and the Secret Service. OECA works closely with its state partners
engaged in monitoring and ensuring compliance with national environmental  laws across
the country. OECA also houses EPA's Environmental Justice and National Environmental
Policy Act (NEPA) programs.

This report highlights the results of OECA's enforcement, compliance, and other key pro-
grams in FY 2007. The report explains OECA's key priorities and strategies, accomplishments,
and longer-term trends in the  results that OECA's programs have obtained for the public.
We encourage you to visit our Web site at www.epa.gov/compliance for specific information
about OECA's programs and environmental enforcement and compliance.
                                 OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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          EGA achieved  historic results in FY 2007 to protect the nation's air, water, and
         I land. In FY 2007, OECA Headquarters and  Regional offices, working with our
          state partners, obtained commitments from industries, government agencies,
and other regulated entities to spend $10.6 billion in pollution controls and supplemental
environmental projects — the highest amount in the Agency's history. EPA's civil and crimi-
nal enforcement actions  produced commitments to reduce pollutants by 890  million
pounds. This reflects a sustained five-year record  of pollution reductions totaling more than
$33 billion  invested by the regulated community to come into compliance and 4.5 billion
pounds of pollutant reductions. (See Appendix A for a detailed summary of our enforcement
and compliance results.)
                                                               EPA believes in firm and
                                                               fair enforcement of our
                                                               regulations and our results
                                                                   that out,

                                                                    -Gmnta Y.
                                                                   Assistant Administmtor,
                                                                                   OECA

      1,200
      1,000
       800
    c
    o
    T3
    E

    I
       600
       400
       200
                FY03
FY04
FY05
FY06
FY07
           FY 2007 data source: Integrated Compliance Information System (ICIS), October 13, 2007; data source for
           previous fiscal years: annual ICIS data.
                                                          HIGHLIGHTS OF FY 2007 RESUITS

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                                       in                  and

           $12
           $10
        I   $8
            $6
            $4
            $2
            $0
                   FY03
FY04
FY05
FY06
FY07
               FY 2007 data source: Integrated Compliance Information System (ICIS), October 13, 2007; data source for
               previous fiscal years: annual ICIS data.

Other 2007 Highlights
    f  EPA's 12 largest stationary source  air enforcement cases alone will result in reducing
       more than 500 million pounds of harmful air pollutants, with annual human health ben-
       efits estimated at $3.8 billion. These actions will reduce harmful emissions of 308 mil-
       lion pounds of sulfur dioxide, 187  million pounds of nitrogen  oxides, and 11 million
       pounds of particulate matter.

    f  Enforcement actions led to investments of $3.6 billion in pollution controls to remove
       45 million pounds of pollutants  in discharges from overflows  of combined sewers and
       sanitary sewers.

    f  As a result of Superfund  enforcement and other remediation agreements, responsible par-
       ties agreed last year to invest $688 million to clean up contamination. The parties agreed
       to clean up 79 million cubic yards  of contaminated soil and 1.4 billion cubic yards of
       groundwater. Private parties reimbursed the Superfund $252 million  of past costs.

    +  The criminal enforcement program opened 10 percent more environmental crimes cases
       in FY 2007 than in  FY 2006. Criminal fines and restitution increased from the previous
       year by 46 percent, totaling $63 million. Defendants who pled guilty or were found
       guilty of environmental crimes were ordered by courts to spend $135 million  on envi-
       ronmental projects, an increase  of 360 percent.

    f  A record 3.2 million regulated entities  received compliance assistance from
       EPA-sponsored Web sites or from EPA  personnel.
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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           EGA is the environmental cop on the beat, using a variety of tools to achieve
          (compliance - technical assistance, monitoring, incentives, and civil and criminal
           enforcement Monitoring  and enforcement activities include inspections, evalua-
tions, civil and criminal investigations, administrative actions, and civil  and criminal judicial
enforcement

OECA's Office of Compliance monitors activities to ensure that the regulated community is
complying with environmental laws  and regulations that address prevention and control of
air pollution, water pollution, hazardous waste, toxic substances, and pesticides. EPA and its
partners — the state, local, and tribal governments — along with the U.S. Department of
Justice, work together to ensure that the nation's laws are followed to  protect human
health and the environment. Compliance  monitoring is achieved by  reviewing the informa-
tion that  EPA, a state, or a tribe requires the regulated party to submit  and through onsite
visits  by qualified inspectors. The regulated facilities' inspection records are publicly avail-
able through OECA's Web site, Enforcement and Compliance History Online  (ECHO):
www.epa-echo.gov/echo.
                                             Protecting the erwironrfient
                                             is everybody's responsibili- -
                                             ty, and companies or indi-
                                             viduals who disregard the
                                             laws to protect our air,
                                             land and water should
                                             know that EPA continues
                                             to vigorously enforce our
                                             nation's laws for a cleaner,
                                             healthier America.
In FY 2007, EPA conducted approximately
22,000 inspections and 346 civil  investigations
(complex, in-depth examinations). In addition
to these  EPA inspections and investigations,
our state partners conducted many more
inspections to monitor compliance with
environmental laws throughout the nation.
(See message on behalf of state environmental
commissioners on page 29.)
                                                                  of                                    by
   25,000
c
o
=  20,000
TO
>
   1 5,000
   10,000
-O
E
3
    5,000
CWA
EPCRA
FIFRA
RCRA
SDWA
TSCA
                                                         Note: Statutes in legend are presented in same order as in stacked bars on left
                                                         FY 2007 data source: Integrated Compliance Information System (ICIS), legacy databases and
                                                         manual reporting, October 13, 2007; data source for previous fiscal years: annual ICIS data,
                                                         legacy databases and manual reporting.

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One of the most important
things in oyr nation is
having a healthy environ-
ment in which oyr children
can grow. Companies myst
be held  responsible for the
well-being of the whole
community they serve,
including the health
of the citizens and the
environment.
         —Amul R, Thapar,
     US, Attorney for the
           Eastern District
              of Kentucky
                                                                                                                  . -„  . ^ ~~-.a- --aggfe-Vv

           ECA's civil enforcement program is responsible for "...investigating violations,
          I deterring violations of federal environmental laws through civil enforcement
           actions, and providing appropriate incentives to those members of the regulated
community who wish to comply with the law."

Civil enforcement  actions are brought before an administrative law judge or in a federal
court - in the latter case EPA is represented by the U.S. Department of Justice. These
actions are usually resolved by settlements, which typically require polluters to  pay penal-
ties; implement, repair, and upgrade pollution control technologies; correct compliance
problems; and clean up waste and/or take action to reduce pollution and prevent problems
from recurring. Over the past five years, EPA has been very successful in maintaining a
steady flow of referrals to the U.S. Department of Justice.  In FY 2007, EPA referred 278 civil
enforcement  cases to the U.S. Department of Justice, which exceeds  the five-year average
number of cases.

                of                                 to             of
                                Total and  by
           300
                                          3
                                          O
                                          CJ
          250

          200

          150

          100

            50

             0
CAA
CERCLA
CWA
EPCRA
FIFRA
RCRA
SDWA
TSCA
Multi-Program
                                                   FY03    FY04    FY05    FY06    FY07
                                                 Note: Statutes in legend are presented in same order as in stacked bars on left.
                                                 FY 2007 data source: Integrated Compiiance Information System (ICIS), October 13, 2007; data source
                                                 for previous fiscal years: annual ICIS data.
                              OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report


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    OECA achieved pollution reductions of 890 million pounds in FY 2007 by focusing civil
    enforcement efforts on certain priority areas where a pattern of non-compliance was con-
    tributing to a significant threat to public health or the environment We achieved nearly 70
    percent of the FY 2007 pollution  reductions and 58 percent of the pollution control invest-
    ments by focusing on these high-priority areas.

            re
            O
  100%
   90%
£- 80%
§> 70%
~~  60%
   50%
   40%
   30%
   20%
   10%
    0%
!=l Tribal Priority
	Cases
!   Air Priority
   Cases
jjj Water Priority
"~* Cases
   Non-Priority
   Cases
                     FY 2007 Pounds of      FY 2007 Pollution
                   Pollutants to Be Reduced  Control Investments
                   Note: Categories in iegend are presented in same order as in stacked bars on left
FY 2005-2007 National Enforcement Priorities
    During FY 2007, OECA sought comment from EPA Regions; state, tribal, and local regulators;
    and the general public on what its priorities should be for the next three-year cycle
    (FY 2008 to 2010). OECA decided to continue its focus on many of the same priority areas
    and expects to see significant accomplishments in the period FY 2008 to 2010.

    Clean Air Act/Air Toxics: OECA reduces public exposure to toxic air emissions by ensuring
    compliance through directed monitoring and enforcement of the Maximum Achievable
    Control Technology (MACT)  standards.

    Clean Air Act/Prevention of Significant Deterioration and New Source Review: OECA
    ensures that  New Source Review (NSR)  and  Prevention  of Significant Deterioration (PSD)
    requirements of the Clean Air Act (CAA) are implemented. Failure to  comply with NSR/PSD
    requirements can lead to the inadequate control of emissions, resulting in the release of
    thousands of tons of pollution to the  air each year, particularly of nitrogen oxides, volatile
    organic compounds, and particulate matter.
                                                                      C ivi i, ENF o RC EM ENT

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fe
   SF



    Clean Water Act/Wet Weather: OECA ensures compliance with Clean Water Act require-
    ments by addressing four environmental challenges that are exacerbated by wet weather.
    Wet weather discharges contain bacteria, pathogens, and other pollutants that  can cause
    illnesses in humans, lead to water quality impairment (including beach and shellfish bed
    closures), and  harm our nation's water resources.

    4  Concentrated Animal  Feeding  Operations (CAFOs): The major environmental problem
       associated  with CAFOs is the large volume of animal waste generated in concentrated
       areas.

    4  Combined  Sewer Overflows: Combined sewer systems are  designed to  collect rainwater
       runoff, domestic sewage, and industrial wastewater in the same pipe. During periods of
       rainfall or snow  melt, the wastewater volume  in a combined sewer system can exceed
       the capacity of the system or treatment plant, resulting in discharges of untreated
       sewage to  waterways.

    4  Sanitary Sewer Overflows (SSOs):  The main  pollutants in  raw sewage  from SSOs are
       bacteria, pathogens, nutrients, untreated industrial wastes,  toxic pollutants,  such as oil
       and pesticides, and wastewater solids and debris.

    4  Stormwater: Stormwater runoff from urban areas and construction can include a vari-
       ety of pollutants, such  as sediment,  bacteria, organic nutrients, hydrocarbons, metals, oil,
       and grease.

    Financial Responsibility: OECA ensures that facility operators  have adequate funds to
    address the closure  of facilities that handle hazardous wastes,  hazardous substances, toxic
    materials, or other pollutants. This  priority seeks to  prevent the shift of costs from the par-
    ties responsible for improper handling and release of hazardous materials and wastes to
    others including state and federal taxpayers.

    Resource Conservation and Recovery Act — Mineral Processing: OECA reduces risk to
    human health and the environment by achieving  increased compliance rates throughout the
    mineral processing and mining sectors and by ensuring that harm is being appropriately
    addressed through compliance assistance and enforcement

    Indian Country: OECA works with federally recognized Indian tribes to address  significant
    human health and environmental problems associated with drinking  water, solid waste, and
    environmental risks in tribal schools (e.g., lead paint) through capacity building  and compli-
    ance monitoring.
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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In FY 200? OECA recognized a major milestone when it successfully met its principal
objective for the petroleum refinery national priority, EPA designated petroleum refining
as a national priority in 2005 due to a high     of noncompliance with requirements to
control emissions of volatile organic compounds (VOCs), sulfur dioxide (S02), nitrogen
      (NQX), carbon monoxide, and particulate matter. These pollutants contribute to res-
piratory illness     heart disease, childhood asthma, acid rain, and reduced visibility,
To date, EPA has negotiated 21 pollution reduction agreements with companies represent-
ing more than 85 percent of U.S. domestic refining (95 refineries        throughout 28
states). These settlements resulted in investment of more than $4,8 billion in pollution
control technologies, civil penalties of $70 million, supplemental environmental projects
with a value of $65 million, and  significant reductions of annual pollutant emissions from
refineries                       tons of ND^ 245,000
tons of S02, as well as reductions in air toxic
pollutants such as benzene and VOCs),
Through a combination of federal
and     actions, EPA and its
state partners will continue to
work to secure similar settle-
ments with the remainder of
this sector. We will also mon-
itor compliance by petroleum 1
refineries with consent       i
decree requirements,          ;
                                                                       C ivi i,  ENF o RC EM ENT


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- '-;:• "~~?S •«-:'"" *f~ -  :-f || 'I'",-» ^-v- :
"*>
                                 Public Health Benefits
                                     OECA's focus on priority areas yields substantial benefits for public health. For example, air
                                     pollution threatens human health by causing serious respiratory problems and exacerbating
                                     cases of childhood asthma. Air enforcement cases concluded in FY 2007 will result in 507
                                     million pounds of air pollutants being reduced, eliminated, or properly managed. These
                                     actions will reduce harmful air emissions by 308 million pounds of sulfur dioxide,  187 mil-
                                     lion  pounds of nitrogen oxides, and 11 million pounds of particulate matter. These results
                                     will  lead to $3.8 billion in health benefits.


                                           Air                                          and
                                                                            The             benefits from                in SOX,
                                                                            NOX, and PM arc         at $3.8 billion per     upon
                                                                            full implementation. Annual       benefits will include:
                                                                             + Approximately iOO fewer premature       in
                                                                                people with heart or lung
                                                                             ^ More than  1,000 fewer        and
                                                                                room visits for            as       and
                                                                                     failure.
                                                                             ^ About 1,500 fewer     of chronic bronchitis
                                                                                    acute bronchitis,
                                                                             * About 1,000
                                                                             ^ More than  8,000 fewer      of upper
                                                                                aggravated asthma,
                                                                             ••• More than  1S.OOO           of      and
                                                                                respiratory
                                                                             •^ More than  50,000 fewer    when       would
                                                                                miss work or school.
                                 Data source: Integrated Compliance Information System (ICE), October 13, 2007; Office of Air and Radiation's BenMAP model.
                              t  EPA's 12       enforce-
                                            for
                                 ary            Air Act
                                                 com-
                                         by          to
                                      their         of
                                 sulfur       (SQJ, nitro-
                                 gen       (NQJ and

                              •  When all required
                                 pollution controls are
                                 completed, emissions will
                                 be        by approii-
                                      507 million
                                 pounds per year.
                                 OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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OECA's actions to enforce the Clean Water Act resulted in more that 178 million pounds of
pollutants reduced and investment in pollution control totaling  nearly $3.6 million. Most of
these reductions are the result of EPA's national  priority efforts  to control overflows from
combined sewer overflows (CSOs), sanitary sewer overflows (SSOs), and contamination
caused by surface runoff and concentrated animal feeding operations (CAFOs). When over-
flows occur, pollutants enter waterways, causing human health  risks such as diseases that
can range in severity from mild gastroenteritis to life-threatening cholera.
FT a
Priority
to be
millions
in
millions of dollars
Air

NSR/PSD
Air Toxics
Air
FY2006
135 M
0.4 M
135.4M
FY2007
426 M
0.8 M
M
FY2006
$310 M
$1 M
$311 M
FY 2007
$2,443 M
$10 M
m

CSO/SSO
CAFO
Stormwiter
Total Wet
Weather
26 M
12 M
195 M
233 M
45 M
15 M
118 M
178 m
$930 M
$10 M
$150 M
m
$3,523 M
$30 M
$8 M
M

Total
M
M
M
M

                                                                   C ivi i, ENF o RC EM ENT
13

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                              Enforcement Case Highlights
                                  The following examples reflect our FY 2007 enforcement activities involving coal-fired
                                  electric utilities, mobile sources, agricultural processing facilities, sewer systems, and con-
                                  centrated animal feed operations.

                              Coal-fired power plants contribute to some of the most severe air pollution problems facing the nation
                              today. These facilities release sulfur dioxide (S02) and nitrogen oxides (NOX), which cause respiratory
                              problems and contribute to childhood asthma, acid rain, smog, and haze. In FY 2007 EPA and  the U.S.
                              Department of Justice concluded lawsuits that will require installation of pollution controls totaling
                              $2.4 billion that will  reduce pollution by nearly 426 million pounds per year. These results are largely
                              attributable to  settlements of three large enforcement cases: WE  Energy (formerly Wisconsin Electric
                              Power Co. [WEPCO]),  East Kentucky Power Cooperative, and PSEftG Fossil, LLC.
                              WE Energy will spend $600  million to install  state-of-the art pollution  controls, which will result in a
                              reduction of 105,000 tons of S02 and NOX emissions annually. The company will retire the pollution
                              emission allowances that it or others could use to emit additional pollution, pay a $3.2 million civil
                              penalty, and spend at least $20 million to  finance an environmental mitigation  project to significantly
                              reduce mercury emissions.

                              Mobile source pollutants include smog-forming volatile organic compounds and NOX, toxic air
                              pollutants (e.g., cancer-causing benzene), and particulate matter or "soot" that are responsible for res-
                              piratory illnesses. As one case example, in FY 2007, Cummins Engine Company agreed to pay nearly
                              $3 million in civil penalties to settle multiple claims that it failed to comply with its landmark 1998
                              consent decree. Cummins failed to: timely complete and provide reports for incentive and offset
                              projects, comply with the prohibition on defeat devices, include sufficient numbers of engines in its
                              remediation plan, or maintain sufficient banked credits  to comply with the emission standards. The
                              1998 Cummins consent decree, along with consent decrees with six other diesel engine manufacturing
                              companies (Caterpillar, Inc., Detroit Diesel Corporation, Mack Trucks, Inc., Navistar International
                              Transportation  Corporation, Renault Vehicules Industriels, s.a., and Volvo Truck Corporation) settled
                              charges that the companies illegally poured millions of  tons of pollution into the air and required
                              them to pay $83.4 million in civil penalties, the largest in environmental enforcement history at the
                              time. The consent decrees resolved claims that the manufacturers installed computer devices  in heavy-
                              duty diesel engines that resulted in illegal amounts of air pollution  emissions.
14
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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Agricultural processing facilities, such as soybean and corn processors, can be major sources of air pol-
lution. During oilseed processing, solvents can escape to the ambient air where they can be readily
absorbed into the body by inhalation. Oilseed is a hazardous air pollutant under the Clean Air Act
because it can cause adverse effects on the central  nervous system, the heart, and other organs. An FY
2007 multi-state settlement with oilseed processor Bunge North America Inc. and three of its sub-
sidiaries will eliminate more than 2,200 tons of harmful pollution emissions per year when fully
implemented. The $13.9-million settlement covers  12 plants in eight states, each of which joined the
United States as a co-plaintiff.

In FY 2007, EPA concluded several large settlements with major cities bringing critical sewer
systems back into compliance and protecting communities from future harm. Enforcement actions led
to investments of $3.5 billion in pollution controls to remove 45 million pounds of pollutants in
discharges from overflows of combined sewers and sanitary sewers, including the cities of Covington,
Kentucky, and Indianapolis, Indiana. Together, these two settlements are estimated to reduce pollutants
by more than 35 million pounds and  address more than 7 billion gallons of untreated sewage annually.
  EKS3&'-Sa;-:SS":'



Concentrated animal feeding operations (CAFOs) are agricultural enterprises where animals are kept
and raised in confined situations. During wet weather events, manure and wastewater from CAFOs
have the potential to transport pollutants (e.g.,  nutrients, hormones, bacteria, antibiotics) to local
waterways. FY 2007 enforcement of the Clean Water Act in this sector resulted in 15 million pounds
of pollution reduced and $30 million in pollution controls invested.
In FY 2007,  the M.G. Waldbaum Company, a subsidiary of Minnesota-based Michael  Foods Inc., agreed
to pay a $1-million penalty to resolve allegations that the company violated the Clean Water Act
The alleged violations included overloading wastewater treatment lagoons at a publicly owned treat-
ment works; discharging  pollutants from poultry waste without a National Pollutant  Discharge
Elimination  System permit; and improperly dumping process sludge waste. As part of this settlement,
Waldbaum committed to constructing a new wastewater treatment plant  by 2009 at an estimated cost
of $16 million.
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15

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    OECA's Office of Criminal Enforcement, Forensics, and Training (OCEFT) brings criminal
    enforcement actions against those who knowingly disregard or are criminally negligent in
    violating environmental laws.

             riminal enforcement, with both fines and incarceration as  potential sanctions, is
             one of the strongest tools in EPA's enforcement arsenal. OCEFT's strategic goal is
             to: "Emphasize 'high-impact' cases that will yield the greatest environmental and
    human health benefits and promote significant deterrence,"

    Toward this goal, OCEFT investigates violations of federal environmental laws and associat-
    ed violations of the U.S. Criminal Code. Through the U.S. Department of Justice, OCEFT
    brings criminal  enforcement actions against those who knowingly disregard or are criminal-
    ly negligent in violating environmental laws. OCEFT pursues cases that are aligned with our
    overall national enforcement priorities.

    In FY 2007, the  criminal enforcement program opened 10 percent more environmental
    crimes cases than in FY 2006. Criminal fines and restitution imposed on defendants also
    increased from  the previous year by 46 percent, totaling $63 million. For instance,
    Honeywell  International - a case in  which one worker died - was sentenced to pay an
    SB-million  fine  and restitution of $2 million after pleading guilty to negligently causing the
    release of hazardous air pollutants and negligently placing another  person in imminent
    danger of death in violation of the Clean Air Act

    Defendants who pled guilty or were found guilty of environmental crimes also were ordered
    by courts to spend $135 million on environmental projects. For example, the Hamilton
    Sundstrand Corporation paid a $1-million fine plus $11 million for environmental projects
    for Clean Water Act violations.

    OECA participated  in the successful prosecution of several high-impact cases that secured
    large sentences, enhanced  deterrence, and reduced environmental pollution. In a FY2007
    case, Dylan Starnes, an  employee of the Atlanta-based Environmental Contracting
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA Accomplishments Report

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    Company, was sentenced to 33 months in prison and three years of probation for improperly
    removing asbestos from  a low-income public housing project and making false statements.
    Additionally, Starnes must  pay the costs for the medical surveillance required for any people
    who were exposed to the asbestos.
FY
Environmental crime cases initiated
Defendants charged
Sentences (years)
Fines and restitution
Judicially mandated projects (cost in dollars)
Pollutant reductions (pounds)
340
226
64
$63 million
$135 million
18 million
FY 2007 data source: Integrated Compliance Information System (ICIS), October 2007.

                                    for                  Act

The Puerto Rico Aqueduct and Sewer Authority (PRASA) was sentenced after         guilty
to 15 felony counts of violating the             Act (CWA) through
the illegal discharge of pollutants from nine sanitary              	  _          j;=T  -_
waste water treatment plants    five drinking-
water treatment plants, PRASA will pay a crimi-
nal fine of $9 million (the       fine ever
paid by a utility for violating the CWA),       1
complete capital improvements to nine
                            at an
estimated cost of $109 million,
$10  million to correct the discharges
to the  Martin PeZa Creek,     serve
a five-year term of probation.

Hf
                                                                                                                        sasfeHNfeu;
                                                                       CRIMINAL ENFoRCEMENT

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                                      ?K ::' \"r-:4:--^k=- ;,;; ~*>* ^-^,rif^*'-S^r.
Throygh the work of EPA
    oyr partners, Empire
Canyon will be a
story of restoring contami-
      properties     into
community
              ECA's Office of Site Remediation Enforcement (OSRE) manages the enforcement
             ! of EPA's national hazardous waste cleanup programs: Superfund cleanups under
              the Comprehensive Environmental Response, Compensation and Liability Act and
    the Resource Conservation and Recovery Act corrective actions. As a result of Superfund
    enforcement and other remediation agreements, responsible parties agreed to invest $688
    million in FY 2007 to clean up contamination and to reimburse EPA $314 million for its past
    response and oversight costs. Parties agreed to clean up a record-setting 79 million cubic
    yards of contaminated soil and 1.4 billion cubic yards of contaminated water through
    Superfund enforcement and other remediation agreements.
                                                                                                       and
                                               In FY 2007, EPA                     L                  EPA's first
                                                                                    and      (ER3)          to facili-
                                               tate cleanup and redevelopment of the      West Mine Superfund Site in
                                               Empire Canyon, This historic ore mining     processing     is       in Park
                                               City,  Utah, DV Luxury Resort, LLC's (DVLR) will      in completing
                                               actions          a commitment to sustainable redevelopment. As part of the
                                                         DVLR will                            the              con-
                                               struction,     operation.
 18
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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           ECA's Federal Facilities Enforcement Office (FFEO) is responsible for ensuring that
          (the federal government complies with all environmental laws, regulations, and
           other responsibilities required under presidential  executive orders. In FY 2007,
 FFEO's enforcement actions resulted in impressive federal agency commitments and
 improvements in environmental compliance, preventive measures, and corrective actions.
 OECA's enforcement of federal  environmental  laws will  prevent more than  700,000 pounds
 of pollutants from being released into the environment EPA collected $475,000 in penal-
 ties, and federal agencies committed to spend more than $250 million to improve their
 facilities and operations to remedy  past violations and prevent future violations. In 2007,
 EPA concluded  35 enforcement actions against federal agencies and some  federal facility
 contractors for alleged violations of environmental laws.


                                          on
OECA concluded  enforcement actions against McGuire Air Force Base, the New Jersey Air
National Guard, and the Army and Air Force Exchange Service for RCRA violations involving
underground storage tanks (USTs). They will pay a penalty of $115,000 for UST violations and
are required to install proper protection equipment. EPA also concluded enforcement actions
against several federal agency  contractors for violations related to construction  at federal
facilities (e.g., contractors for the Air Force agreed to pay $80,000 to settle two separate
enforcement actions related to construction at the Air Force Academy and at  Buckley Air Force
Base in Colorado).
                                                                                               <*- -.---f!T;•_•«••::asc--?"-:-:i,*
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**«

                                                                 :.

                                                                        ; ^  vt.            -,a
           "orking with federally recognized Indian tribes, OECA uses compliance assis-
            tance, inspections, and enforcement to address significant human health and
            environmental  problems in Indian Country. In FY 2007, OECA focused particular
attention on drinking water, solid waste, and environmental risks at schools in Indian
Country. Among our important enforcement actions is the conclusion of a four year multi-
agency effort to stop illegal dumping on the Torres Martinez Reservation located in
California. Working with the Bureau of Indian Affairs, EPA won its lawsuit to enforce an
administrative order issued under RCRA §7003 against Kim Lawson, Lawson Enterprises, and
Torlaw Realty. The settlement  requires the parties to pay up to $42.8 million in cleanup
costs and more than $2.3 million in civil penalties.

In FY 2007, EPA's tribal activities addressed imminent threats to human health. For exam-
ple, EPA Region 8 issued an administrative order  to the Oglala Sioux Tribe in response to
a fire at the Pine Ridge municipal solid waste baling facility.  The baling facility is owned
and operated by the Oglala Sioux Tribe and is located on the Pine Ridge Indian
Reservation. The fire  resulted  in heavy smoke blanketing the  immediate area for several
days. The smoke endangered the community of Pine Ridge Village, the tribal center locat-
ed one-half mile to the north of the baling facility, and several residences located
approximately 500 feet to the south of the facility. The open dump area of the baling
facility is the former Pine Ridge dump site -a "high priority  site" listed in the Indian
Health Service Open  Dump  Inventory. The order was issued pursuant to Section 7003 of
the Resource Conservation and  Recovery Act.
                               OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA Accomplishments Report

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       PA strives to incorporate environmental justice into every aspect of its programs,
       priorities, and strategic plans. OECA houses the EPA Office of Environmental Justice
      f(OEJ). OEJ has the dual responsibility of serving as the coordinator of EPA's
Agencywide efforts and as the National Program Manager for implementing Executive Order
12898 - "Federal Actions to Address Environmental Justice in Minority Populations and
Low-Income Populations."  During FY 2007, EPA took significant steps to integrate environ-
mental justice into its own mission, to lead  by example, and to work with  its federal part-
ners. EPA relies on input from the National Environmental Justice Advisory Council (NEJAC),
regulatory partners, and the environmental justice community to identify priorities and
incorporate environmental justice considerations into  its mission.

In FY 2007, OEJ led the development of environmental justice review protocols for EPA pro-
grams in rulemaking and standards-setting, permitting, enforcement and compliance, and
site cleanup and remediation. Following several pilots, the protocols will be finalized and
considered  in FY 2008 for conducting environmental justice reviews of the Agency's pro-
grams, policies, and activities.
Also in FY 2007, OEJ awarded $1 million in environmental justice collaborative problem-
solving grants to 10 community-based organizations and an additional $1  million in envi-

                                                    INTEGRATING ENVIRONMENTAL JUSTICE
To      no
agency has incorporated
environmental justice as
comprehensively as EPA.
The Agency is working to
achieve tangible results
that      a positive
impact in the       of
communities         by
environmental pollution,

     —      lee,

                     EPA

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                 I'K
;
                  s

         »*
         '
                            ronmental justice small grants to 20 community-based organizations. Projects completed in
                            FY 2007 with these grants ranged from installing municipal water and sewer lines for 40
                            homes with contaminated wells  in  Mebane, North Carolina, to completing a renovation
                            project to remove lead-based paint in  Pacomia, California, as a result of testing blood level
                            concentrations in 675 children and  lead contamination testing of 300 homes.
                                       The
                                    1999     2007, EPA supported the Re6enesis Environmental Justice Partnership,
                            which            former Syperfund and brownfields     in Spartanburg, South Carolina,
                            into a vibrant community. Residents, once         with contamination from a former fertilizer
                            plant     local dymp, now enjoy a revitalized community of new homes     plans for
                                recreational use. The ReGenesis Environmental Justice Partnership began  with an EPA
                            Environmental Justice      Grant.
                            With more      200 federal, state, and      government partners,      residents, industry,
                            and a university, ReGenesis has raised more than $166 million. In June 2007, OEJ        a
                            documentary film       this
                                    at www.epa.gov/compliance/resources/publications/ej/ejcps-dvd,html.
                        OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA Accomplishments Report

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          ECKs Office of Federal Activities (OFA) reviews other federal agencies' environ-
         f mental impact statements (EISs), as required under the National Environmental
          Policy Act (NEPA) and by Section 309 of the Clean Air Act. OFA's review of EISs
helps agencies identify mitigation measures and avoid or minimize potential adverse envi-
ronmental impacts of proposed  projects. In FY 2007, OFA completed review of 218  EISs.
The federal agencies agreed to mitigate over 75 percent of the significant environmental
impacts identified by EPA in its  review of their draft EISs.

EPA involvement in  EIS review involves a coordinated team of professionals, particularly on
controversial or significant environmental impact projects. The Red River Valley Water
Supply Project is just one of OFA's EIS coordination efforts  in FY 2007. The U.S.  Bureau of
Reclamation and the state of North Dakota prepared a draft EIS for the water project pro-
posal to meet the long-term water needs of the Red River Valley in  North  Dakota and
Minnesota. The proposal included construction necessary to deliver sufficient water to users.
Significant issues were raised on the risks of biota transfer to the Hudson  Bay Watershed.
After extensive negotiations, EPA reached a preliminary agreement on an appropriate level
of treatment to minimize the risk of biota transfer.
                                            NATIONAL ENVIRONMENTAL POLICY ACT REVIRW

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        JiS
                    *

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                                               FA also leads the cooperation between federal and state agencies and govern-
                                              1 ments of neighboring countries to promote effective enforcement and compli-
                                               ance of environmental laws along the U.S. border. It also provides enforcement
                                     and compliance training and information to help fulfill the United States' commitments
                                     worldwide.

                                     In FY 2007, OFA reviewed and processed more than  1,100 hazardous  waste  notices and
                                     10,000 waste streams for imports and exports of hazardous waste. These actions fulfilled
                                     the U.S. obligation  under international agreements to participate in the control of trans-
                                     boundary movements. In consultation with EPA Regions, OFA's objection to  certain notices
                                     prevented the environmentally unsound importation of 61,065 metric tons of solid haz-
                                     ardous waste and 700,000 liters of liquid hazardous waste.

                                     In April 2007, EPA's Assistant Administrator for  Enforcement and Compliance Assurance,
                                     Granta Nakayama,  made an official visit to the  People's Republic of China to address prob-
                                     lems presented by Chinese imports into the United States that do not comply with U.S.
                                     environmental laws. The visit served to initiate a developing program of cooperation with
                                     China to prevent products manufactured in China, such as non-road  engines, from entering
                                     the United States if they do not meet U.S. environmental requirements. In addition, since
                                     July 2007, OECA supported the efforts of the Interagency Work Group on Import Safety
                                     (formed by Executive Order 13439), chaired by Mike Leavitt, Secretary of the U.S.
                                     Department of Health and Human Services.

                                     Throughout  FY 2007, OFA worked with the United Nations Environment  Programme (UNEP)
                                     on its Green Customs training program. OFA also created a new course, Principles  for
                                     Customs and Environmental Cooperation - Toward Effective Import-Export Control, for pilot
                                     delivery in Central American Free Trade Agreement countries in 2008. This program seeks to
                                     strengthen the ability of customs officials in the United States and abroad to detect and
                                     respond to illegal import and export products.
 .  :«,«» i;
-,  ' ** --•
     i^I
                                  OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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            aising  public awareness and helping the regulated community comply with
            environmental laws and regulations is an important way to prevent and reduce
            .pollution. EPA provides a wide range of services and programs that strengthen the
    ability of the public and the regulated community to take  environmental action. EPA's com-
    pliance assistance programs, operated out of the Office of Compliance, provide detailed
    information to  millions of regulated entities, helping them understand and meet their envi-
    ronmental obligations. Compliance assistance resources  include comprehensive Web sites,
    compliance guides, and training materials aimed at  specific business communities or
    industry sectors. EPA reached out to a record high of more than 3 million regulated entities
    during FY 2007 through compliance assistance activities.
^ 2,500
 (/S
-o
 c
 re
 3 2,000
 o
JZ
             1,500
                          Entities          With  EPA Compliance Assistance
                        Entities reached with compliance assistance
                        (except center users)
                        Users of EPA-sponsored Web-based
                        compliance assistance centers
          re
          v
          CSl
             1,000
              500
                       2003
                                    2004
                                                 2005
                                                             2006
                                                                          2007
                  FY 2007 data sources: Integrated Compliance Information System (ICIS), October 13, 2007, and online
                  usage report; data source for previous fiscal years: annual ICIS data and online usage reports.

Web-Based Compliance Assistance  Centers
    Much of EPA's compliance assistance is provided through  15 Web-based compliance assis-
    tance centers. These virtual centers contain information on environmental regulations and
    compliance issues for certain  industries and groups (e.g., tribes, construction, health care, and
    auto recyclers). In FY 2007, OECA launched a new Tribal Compliance Assistance Center that
    provides comprehensive compliance assistance and  pollution prevention information for

                                                                     COMPLIANCE ASSISTANCE

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    regulated activities in Indian Country. The center supports OECA's
    tribal priority by assisting tribal professionals and facility owners in
    complying with environmental regulations.

    In addition, EPA, along with many other federal  agencies, supports
    FedCenter, a compliance assistance center that helps federal
    agencies comply with environmental  laws and be better environ-
    mental stewards (visit www.fedcenter.gov).

Incentives for Compliance Agreements
    EPA provides a number of incentives to encourage public and pri-
    vate entities to self-police, improve environmental management
    practices, and reduce environmental pollution. In exchange for
    mitigation of civil  penalties, EPA's compliance incentive policies-
    the 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 neces-
    sary to maintain compliance. The Small Business Policy also pro-
    motes 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 2007
    nearly 730 facilities  resolved violations that, when corrected,
    ensured that 1.2 million fewer pounds of pollution were generated.

    EPA sometimes requires the implementation of environmental
    management systems (EMSs) and audits as part  of an enforce-
    ment settlement (e.g., where  EPA determines that a violation was
    caused by the regulated entity's absence of a systematic approach
    to identifying, understanding, and managing compliance with
    environmental  requirements).

NEPAssist
    In FY 2007, OECA's Office of Federal Activities created an innova-
    tive tool, the "NEPAssist Environmental Assessment Tool," an
    internal Web-based geographic information system. OFA designed
    NEPAssist to facilitate EPA project planning and  federal agency
    information sharing  relative to environmental  considerations and
    to assist with  EPA's environmental  review process. NEPAssist will
    provide consistency of data sets among EPA users conducting
    environmental screening of proposed  projects.

OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE >
FY2007 OECA Accomplishments Report

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                                                                                          ii**-SlMfef'*&*;-a»-r-';tfc -"!;--!«-  '"••
     "n April 2007, in partnership with the state environmental and local law enforcement
      organizations, EPA observed  and publicized the sixth annual National Environmental
     .Crime Prevention Week. A major theme of Crime Prevention Week is helping citizens
  learn the signs of environmental  crime.
        of
t  Corroded,        or abandoned
   containers or signs of      dumping.
f  Fish kills or other     animals.
f  Staining and/or                   on
   the ground or        around drains,
   sinks, toilets, or other
   waste water
f  Foul-smelling or unsightly
   or              on the        or
   bodies and  foul-smelling or unsightly
   air emissions.
f  Piping  or            would allow
            of wastewater treatment
   systems.
f  Demolition      might involve
   illegally removing         or other
             materials.
t  If you are not sure an     is safe,

•f  Do not enter confined       or
   low-lying areas.
t  Do not lean  over
   containers or kick, rock, or puncture
         containers,
*  If       to enter, wear
   protective gear.
+  Do not      samples unless trained.
t                   from the
   until assistance arrives.
f  Be sure to      children and

f  Do not track toxic material into
   your car.
   if you see one                you                           a
                                  www.epa,gov/tips
                                      THE PUBLIC CAN HELP PREVENT ENVIRONMENTAL CRIME



                                                                                          STO--iil^r


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                      Tips and  Complaints
                          EPA's tips and complaints Web site (www.epa.gov/tips) is an important tool for identifying
                          potential  environmental violations. Established in January 2006, our easy-to-spot icon
                          enables concerned citizens and employees to report potential violations in their communi-
                          ties or workplaces. In FY 2007, EPA received a total of 6,781 tips. Tips are reviewed by EPA's
                          enforcement programs to determine potential civil  or criminal violations.  For example, in
                          FY 2007, one tip from the  Web site resulted in formal criminal charges against an individual
                          who subsequently pled guilty to fabricating hazardous materials certifications and issuing
                          physical fitness reports to  untrained workers, many of whom were remediating contaminat-
                          ed sites.
                                                               EPA

                                                            Violations
                                                        www.epa.gov/tips

i w -SSJE .
                      OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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          n behalf of the states, the Environmental Council of the
         (States (ECOS) is pleased to provide information again this
          year for the EPA OECA FY 2007 Accomplishments Report,
on the states' efforts to enforce and ensure compliance with the
nation's environmental laws. The states work closely with EPA
Headquarters and Regional offices to ensure better protection for
human health and the environment, and we look forward to continu-
ing our strong  partnership for years to come. For the FY 2007 report,
ECOS has chosen to present some highlights from the wide range of
state accomplishments in compliance and  enforcement.

ECOS and EPA are helping the public to understand the significant role of the states in
ensuring compliance with environmental laws. This report demonstrates that states continue
to lead in this area. The data collected by states are critical to ongoing activities and assist in
setting priorities at both the federal and state level. States collect about 94 percent of the
environmental 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,
states make extensive use of voluntary programs, economic incentives, and information dis-
semination through compliance assistance programs to prevent pollution before it occurs.

Compliance and enforcement programs are an integral part of state programs designed to
protect human  health and the environment. We encourage you or your business to contact
state agencies to learn more about what states and local governments do and  to learn more
about what you can do  to ensure a safe and healthy environment for the future.
                                                         David K. Pay lor,
                    PRESIDENT, ENVIRONMENTAL COUNCIL OF THE STATES
        DIRECTOR, VIRGINIA  DEPARTMENT OF ENVIRONMENTAL QUALITY

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                           tate programs play a significant role in ensuring compliance with environmental laws.
                           EPA can delegate or authorize programs to the states that carry out requirements
                          ' of major national environmental laws. 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. With
                     authorization or delegation, the states are integral partners in the nation's environmental
                     protection system. This section of the report highlights some of the achievements of state
                     compliance and enforcement  programs.

                  State Enforcement Actions
                     States are employing innovative strategies in environmental enforcement. As an example,
                     the Wetlands Loss Initiative began in 2003 as an effort to inventory wetlands change in
                     Massachusetts. Today, this high-tech evaluation process has evolved into a successful strat-
                     egy that is used by the Massachusetts Department of Environmental Protection  (MassDEP)
                     to identify and prosecute significant and illegal wetlands destruction. Using state-of-the-art
                     technology, MassDEP staff analyze before and after aerial photographs, taken  years apart, to
                     locate  wetlands that have been filled. Identifying  illegal fill is accomplished by comparing
                     the information in the sets of aerial  photographs with the corresponding permit data. These
                     sophisticated analyses yield crucial information and provide MassDEP with a powerful tool
                     to prioritize enforcement based on impact and science.

                     Since the inception of the aerial surveillance effort, MassDEP has successfully initiated and
                     closed  42 "wetlands change"  enforcement cases, assessed nearly $2 million in penalties, and
                     ordered restoration of more than 54 acres of wetlands. MassDEP consults with EPA and the
                     U.S. Army Corps of Engineers  on restoration and replication issues that arise in the context
                     of those wetlands enforcement cases that might trigger federal permitting requirements.
                     These high-profile enforcement cases send a clear message that illegal  fill can no longer be
                     hidden and that violators will be prosecuted. This strong deterrent is the best  hedge against
                     wetlands destruction.
                  OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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State Use of Supplemental Environmental  Projects
    In negotiating penalties in enforcement cases, 49 states have the ability to mitigate a por-
    tion 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 (e.g., diagnos-
    tic, preventative, and/or remedial health care for members of an exposed community). The
    Connecticut Department of Environmental Protection (DEP) enforcement actions include
    examples of recent SEPs.

    t  The Hartford-based  Metropolitan District Commission (MDC) entered into a settlement
       agreement with EPA, the U.S. Department of Justice, Connecticut DEP, and the
       Connecticut Attorney General's Office. Under terms of the settlement, the MDC is
       required to significantly reduce illegal raw sewage overflows from the sanitary portions
       of its wastewater collection system. These overflows previously were discharged to area
       waterways, including the Connecticut River, in violation of the Clean Water Act The
       MDC also was required to pay a penalty of $850,000, which was split equally between
       the United States government and the State of Connecticut. Connecticut's portion will
       be  used to fund SEPs related to compliance assistance, water quality planning, assess-
       ment and restoration, and greenway enhancements.

       Specifically, the MDC will implement a comprehensive, system-wide plan to ensure that
       all sanitary sewer overflows associated with  insufficient capacity of the MDC's separate
       wastewater collection system are eliminated within seven to 12 years. The MDC is con-
       currently working with  the Connecticut DEP to reduce the levels of overflows from the
       "combined" portions of their wastewater collection system. The  MDC provides waste-
       water collection and treatment services to approximately 375,000 people and owns or
       operates four wastewater treatment facilities, the largest of which  is the Hartford Water
       Pollution Control Facility, which discharges to the Connecticut River.

    f  The Connecticut DEP entered a consent order with The Home Depot in May 2006  under
       which this major national retail chain agreed to pay penalties of $425,000 for numerous
       violations of environmental  regulations at its stores in the state, as well as make major
       improvements in its environmental practices. The violations involved the improper dis-
       play, handling, and disposal  of products such as pesticides and fertilizers, which contain
       hazardous materials. The Home Depot was cited for failing to comply with the state's
       hazardous waste,  pesticide, and stormwater management  requirements.

       As  part of the consent order, The  Home Depot is required to pay $326,000 to a state
       agency fund for SEPs. DEP will use the SEP funds that The Home Depot pays to further
       develop and implement outreach  and compliance assistance strategies for the  retail
       hardware store sector.



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       As a result of DEP's action, The Home Depot is implementing environmental manage-
       ment systems (EMSs) in all of its stores nationwide. The EMS includes the following
       steps to prevent spills that result in hazardous materials being caught up in stormwater
       runoff:

       -  Improving outdoor display and storage of various chemicals and products (e.g., pesti-
          cides, fertilizers, swimming pool additives, bags of concrete, pressure-treated wood).

       -  Improving indoor displays to prevent shopping carts and hand trucks from breaking
          open packages of products that  contain hazardous materials.

       —  Increasing staff training on proper handling and disposal of products containing  haz-
          ardous materials.

       -  Implementing new procedures (e.g., patches for broken bags) to prevent the unneces-
          sary disposal of products.

       -  Retrofitting existing stores and improving the design of future stores to accommo-
          date the environmentally safe management of products and hazardous materials.

State  Compliance Assistance Programs
    States deliver compliance assistance either directly through state agencies or through third
    parties such as contractors and grantees. The information is designed to help the regulated
    community find cost-effective ways to improve environmental performance. A few exam-
    ples of state compliance assistance programs follow.

    i  The Nebraska Department of Environmental  Quality (DEQ)  is launching a compliance
       assistance effort that will revolutionize the surface coating industry in the state. A
       unique partnership of public, private, nonprofit, and governmental people  is working to
       make this air compliance assistance program successful. The  program's focus is to utilize
       the successful Iowa Waste Reduction Center's VirtualPaint™ program, and make the pro-
       gram widely available to paint technicians throughout Nebraska.

       The VirtualPaint™ technology has the potential to reduce air emissions and hazardous
       waste.  Most paints used in the automobile and manufacturing industries contain volatile
       organic compounds and hazardous air  pollutants and are classified as hazardous waste.

       Through training with the VirtualPaint™ system, the amount of VOCs released decreases
       by 12.6 percent For  example, a large surface coating facility that releases 166 tons of
       VOCs per year could  see a 21-ton decrease in emissions through use of the VirtualPaint™
       system. Facilities of medium size that might release 31  tons of VOCs could potentially
       realize  a 4-ton-per-year decrease.

OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY'2007 OECA. Accomplishments Report

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   The VirtualPaint™ system has benefits for both business and the environment The system
   has been found to increase the efficiency of transferring coating products to prepared
   surfaces by 19 percent. As efficiency increases, the amount of material consumed
   decreases by  13  percent There are also savings from reduced  hazardous waste genera-
   tion. Besides  the obvious monetary and environmental  benefits, the intended outcome is
   to develop a three- to five-year certification program and  offer training to private busi-
   nesses throughout the state.

States are actively using the concept of environmental results projects (ERPs) in specific indus-
try sectors to improve and go beyond compliance. States can effectively manage small pollu-
tion sources that have potentially large impacts (e.g., dry cleaners). Many individual operations
are relatively small; however, collectively they can have a huge impact on air quality.

i  The Virginia DEQ developed an ERP for auto body shops/mobile refinishers following the
   Virginia Ozone Transport Commission regulation for mobile refinishing. Initially, the ERP
   was an outreach effort to make all of the auto body shops in Northern Virginia aware of
   the voluntary self-certification program and the requirements  of the mobile  refinishing
   regulation. The state was successful in obtaining almost a 100-percent response from the
   shops to register their facilities. The initial response to the self-certification program  was
   also successful. The certification is  totally self-directed by the  shops without time con-
   straints for completion. Of the 55 shops that have indicated interest to date, DEQ has cer-
   tified  40 shops as charter DEQ-certified auto body shops. DEQ is working on the 2008
   materials for  the next round of certifications.

f  The Michigan DEQ has implemented  an ERP for dry cleaning.  Michigan's program helps
   owners/operators understand all applicable environmental regulations in their sector,
   improve their compliance with these regulations, enhance sector-wide implementation
   of pollution prevention activities, and employ best management practices. The ERP
   included a self-audit by cleaners and a number of meetings sponsored  by the dry clean-
   ing trade associations, as well as by a vendor that services the majority of cleaners in the
   state. The Michigan DEQ will conduct a series of follow-up inspections in the spring of
   2008. The data gathered will show if there was any measurable improvement as a result
   of the self-audit program.

f  The New Jersey DEP is enhancing compliance assistance by educating facilities on steward-
   ship concepts and practices during compliance assurance visits. With input from stakehold-
   ers, New Jersey developed a standard  set of criteria to record voluntary actions that reflect
   stewardship and  lead to sustainability. The initiative is integrated with the existing inspec-
   tion process and  data tools used by inspectors. Results are easily available to the public.
   With minimal additional  effort, the program creates an incentive to go beyond compliance
   and provides a resource for learning how to get there—all while fostering a holistic per-
   spective within a regulatory regime.
                                      HIGHLIGHTS ON STATE ENFORCEMENT AND COMPLIANCE


•I*

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                                                            t a

EPA FY 2007 Enforcement and Compliance Annual Results
Results Obtained From EPA Civil Enforcement Actions:
    «  Estimated Direct Environmental Benefits
          — Pollutants reduced (pounds) (including amounts from
             civil, criminal, and compliance incentive actions)
          - Contaminated soil to be cleaned (cubic yards)
          — Contaminated water to be cleaned (cubic yards)
          - Stream miles (linear feet)
          - Wetlands protected (acres)
          — People protected by Safe Drinking Water Act enforcement
    •  Estimated Preventative Environmental  Benefits
          — RCRA  Subtitle C (cubic yards of contaminated soil)
          - RCRA  Subtitle C (gallons of contaminated water)
          — RCRA  underground storage tank leaks prevented (gallons)
          - Number of people notified of potential drinking  water problems
          — Number of Safe Drinking Water Act Underground Injection Control
             wells protected
          — Toxic Substances Control Act 6 polychlorinated biphenyl
             disposal practice changes (cubic yards)
          — Number of housing units/schools/buildings protected from
             lead-based paint
          - Clean  Water Act/Oil Pollution Act/Spill Protection, Control
             and Countermeasure Rule pollutant release reduction (gallons)
          - Federal Insecticide, Fungicide, and Rodenticide Act active
             ingredients prevented from mislabeling or improper
             registration (pounds)
    •  Investments in Pollution Control and Cleanup
       (Injunctive Relief)
    •  Investments in Supplemental Environmental Projects (SEPs)
    «  Civil Penalties
          — Administrative penalties
          — Judicial  penalties
          — Stipulated penalties
    «  EPA Civil Enforcement and Compliance Activities
          — Referrals of civil judicial enforcement cases to Department of Justice (DOJ)
          - Supplemental referrals of civil judicial enforcement cases to DOJ
          — Civil judicial complaints filed with court
                                                                                     890,000,000
                                                                                      79,000,000
                                                                                    1,400,000,000
                                                                                          26,000
                                                                                            900
                                                                                       6,700,000

                                                                                           1,400
                                                                                       1,700,000
                                                                                       2,700,000
                                                                                       1,500,000

                                                                                            233
                                                                                          38,000

                                                                                     198,000,000


                                                                                       1,300,000

                                                                              $10,550,000.000
                                                                                  $30,000,000

                                                                                     $30,700,000
                                                                                     $39,800,000
                                                                                     $12,400,000
                                                                                            278
                                                                                              19
                                                                                            127
       OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE > FY '2007 OECA. Accomplishments Report
.'/=-

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       -  Civil judicial enforcement case conclusions
       —  Administrative penalty order complaints
       —  Final administrative penalty order settlements
       -  Administrative compliance orders
       -  Cases with SEPs
•  EPA Compliance Monitoring Activities
       —  Inspections/evaluations
       —  Civil investigations
       —  Number of regulated entities taking complying actions during EPA
          inspections/evaluations
       -  Number of regulated entities receiving assistance during EPA
          inspections/evaluations
•  EPA Superfund Cleanup  Enforcement
       -  Remedial action (RA) starts where settlement reached or enforcement
          action taken by the time of the RA start (during the FY) at non-federal
          Superfund sites that  have known viable, liable parties (percent)
       —  Private party commitments for site study and cleanup
          (including cashouts)
       —  Private party commitments for oversight
       —  Private party commitments for cost recovery
       -  Cost recovery statute of limitation  cases addressed with total
          past costs greater than or equal to $200,000 (percent)
•  EPA Criminal Enforcement Program
       -  Years of incarceration
       —  Fines and restitution
       —  Judicially mandated projects
       -  Environmental crime cases initiated
       —  Defendants charged
       -  Pollutant reductions  (pounds)
•  EPA Voluntary Disclosure Program
       —  Pollutants reduced as a result of audits or other actions (pounds)
       —  Facilities initiated
       -  Companies initiated
       —  Notices of Determination (NODs)
       -  Facilities resolved
       —  Companies resolved
«  EPA Compliance Assistance:
       —  Total entities reached by compliance assistance
       -  Number of user visits to Web-based compliance assistance centers
                                                                                  180
                                                                                2,237
                                                                                2,255
                                                                                1,247
                                                                                  184

                                                                               22,000
                                                                                  346

                                                                                1,350

                                                                               13,500
                                                                                  100

                                                                            3,000,000
                                                                         $62,000,000
                                                                        $252,000,000
                                                                                   64
                                                                         $63,000,000
                                                                        $135,000,000
                                                                                 340
                                                                                 226
                                                                           18,000,000

                                                                            1,200,000
                                                                                1,021
                                                                                 448
                                                                                 426
                                                                                 728
                                                                                 491

                                                                            1,228,000
                                                                            1,958,000
Sources for data: Integrated Compliance Information System (ICIS); Criminal Case Reporting System; Comprehensive Environmental
Response, Compensation and Liability Information System (CERCLIS); Resource Conservation and Recovery Act Information
(RCRAInfo); Air Facility System (AFS); and Permit Compliance System (PCS) October 13, 2007.

                                                     APPENDIX A: NUMBERS AT A GLANCE

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                                                                                                                                                         &
                                                                                                                                                          *iaSg
                                                                                                                                                          '^gS^
                                                          of                     and
                                                           of
                                                Environmental Justice
                                                Office of the
                                           Assistant Administrator
                                                                                                                            Facilities
                                                                                                                    En force me nt Office
                                                                                                                    Site Remediation Bt
                                                                                                                    Enforcement Staff
                                                                                                                   Planning, Prevention ft
                                                                                                                     Compliance Staff
        Office of Criminal
          Enforcement,
       Forensies ft Training
           Planning, Anah/sis,
         8 Communications Staff
           Propim Integrity (t
         Quality Assurance Staff
         tesoyrees Management
                 Staff
       Criminal Infestiptbn Division
        Homeland Seeuritv Division
  ——     Legal Counsel Dimsn
          National Enforcement
          invest! gattons Certer
Office of Ci¥ii Enforcement         Office of Compliance
       Special Litigption
       8: Project! ibWoi
                   Divisien
            m Chemleil
      Enforcement Division
                                      Air Enforcement Division
-  Resource Management Staff
   National Planning
        m Analysis Stiff
     Elforcem en t fi   n |
        ft Dati Division
                                 Compliance Assessment 8:
                                       Pro|rims OMston
                                                                   Coiwpliaicefeessnient 8:
                                                                   Sector Progmms Division
                                                                               DMsion
                                   National Enforcement
                                     Tniiing institute:
                                     Office
                                of Site
                                   Enforcement
Program Operations Stiff
   Policy B: Program
   Evaluation Division
Reponal SippGrt D vision
                                 Office
                                   of
                             Federal Activities
NEPA Compliance Division
international Comfiianae
           Division
                                                                                                                     Of flee of Administration
   Administrative
Management DMsion
 Budget ft Financial
           Division
                         • Information Teclnology Di¥ision
                                                                                              Policv ft Lagislative
                                                                                              C@@rdinatbn Division
36
         OFFICE  OF  ENFORCEMENT AND COMPLIANCE ASSURANCE > FY2007 OECA. Accomplishments Report

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Office of Enforcement and Compliance Assurance            202-564-2440
Office of Compliance                                    202-564-2280
Office of Civil Enforcement                               202-564-2220
Office of Criminal Enforcement, Forensics and Training        202-564-2480
Office of Environmental Justice                            202-564-2515
Office of Federal Activities                                202-564-5400
Office of Administration and Policy                        202-564-2530
Office of Site Remediation Enforcement                     202-564-5110
Federal Facilities Enforcement Office                       202-564-2510
Press Inquiries                                          202-564-4355
Mailing Address:
U.S. Environmental Protection Agency
1200 Pennsylvania Ave.. NW (MC2201A)
Washington, DC 20460-0001
                                    EPA

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