UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WSG76
Date Signed: June 14, 1994
MEMORANDUM
SUBJECT: Corrected Attachment I for PWSS Settlement Penalty Calculation Worksheet
FROM: Kathy Summerlee, Deputy Director
Water Enforcement Division
Office Of Regulatory Enforcement, OECA
TO: Regional Water Management Division Directors
Regional Counsels
On May 25, 1994, under signature of Jim Eder and Fred Stiehl, we distributed the
Agency's New Public Water System Supervision Program Supplement Penalty Policy.
Attachment 1 to the Penalty Policy contained a two part worksheet setting forth in summary
form how to perform the penalty calculation. The worksheet erroneously had the adjustment
factors for degree of wilfulness and history of noncompliance applying to the combined gravity
and economic benefit amount. This was a mistake as the text of the policy clearly has these two
adjustment factors apply only to the gravity amount.
We have corrected the worksheet to make it fully consistent with the Policy. We have
made several other minor clarifying changes to the worksheet. There are no changes to the text
of the policy. We would appreciate if you would discard the prior worksheet and substitute the
attached corrected worksheet.
Thank you for your assistance. If you have any changes, you may call David Hindin, 202
501-6004, Andy Hudock, 201 501-6032, or Betsy Devlin, 202 260-5550.
Attachment
cc: (w/attachment)
ORC Water Branch Chiefs
Regional PWSS Branch Chiefs
ORE Water Division staff
PWS Regionals Attorneys
John Cruden, DOJ
Joel Gross, DOJ
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WSG76
ATTACHMENT 1 (Corrected 6/14/94)
PWSS SETTLEMENT PENALTY CALCULATION WORKSHEET
INSTRUCTIONS: For each type of violation (see Attachment 2) to be alleged in the
administrative or Judicial complaint calculate the statutory maximum penalty, the economic
benefit and gravity and record the results in Part A of the worksheet. Complete a separate Part A
worksheet for each type of violation, then complete Part B.
NAME OF CASE:
COMPLETED BY:
Date Completed:
PART A
IDENTIFY VIOLATION TYPE:
1 . STATUTORY MAXIMUM PENALTY FOR THIS VIOLATION TYPE
a. Length of violation (in days)
b. Penalty Amount (see II. Statutory Basis in text of Policy for
amounts)
c. Maximum Penaltv (line Lax line l.b if not administrative")
2. ECONOMIC BENEFIT FOR THIS VIOLATION TYPE (attach BEN
computer model printouts or other documentation)
3. GRAVITY FOR THIS VIOLATION TYPE
a. Gravity factor amount (from Attachment 2 Types of
Violations)
b. Service population
c. Months in violation ( ) divided by 12
d. Gravity Component: Line 3. ax line 3. b x line 3. c
4. ECONOMIC BENEFIT + GRAVITY COMPONENT SUM
(line 2 + line 3. d)
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WSG76
ATTACHMENT 1 (corrected 6/14/94)
PWS PENALTY CALCULATION WORKSHEET
PARTB
5.
TOTALS FROM ALL PART A WORKSHEETS (for each violation type)
a. Sum of amounts in line 3 .d from all Part A worksheets (total
gravity for all violation types)
b. Sum of amounts in line 2 from all part A worksheets (total
economic benefit for all violation types)
6. GRAVITY ADJUSTMENTS
a. Degree of Willfulness/Negligence factor (Select a factor value
between 1.0 and 2.0)
b. History of Noncompliance factor (Determine factor value based
on instructions on page 7 of policy)
c. Total Adjusted Gravity Amount
nine 6. a x line 6.b x line 5.aY)
7.
PRELIMINARY PENALTY AMOUNT (line 5.b + line 6.c)
8. LITIGATION CONSIDERATION REDUCTION AMOUNT
Attach lesal explanation to iustifv any reduction on separate sheet.
9.
10
11
ABILITY TO PAY REDUCTION AMOUNT
Attach financial analysis to justify any reduction on a separate
sheet.
CREDIT AMOUNT FOR ANY SEPS
Amount mav not exceed after-tax present value of oroiectfsY
BOTTOM-LINE CASH SETTLEMENT PENALTY AMOUNT
Line 7 - (line 8 + line 9 + line 10)
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WSG76
PWSS Civil or Complaint for Penalty Calculation Worksheet
I. Calculate Statutory Maximum Penalty
(A) Length of Violation (in days) 5220
(B) Maximum Penalty $25,000
Complaint for Penalty - $5,000
Civil Penalty - $25,000/day
Section 1431 orders - $5,000/day
STATUTORY MAXIMUM PENALTY
(If not an administrative Penalty, AxB) $130,500,000
II. Calculate Economic Benefit Component $4,300
Determine avoided and delayed costs through BEN model or
other reasonable methodology. This must be documented
III. Calculate Gravity component
(C) Actual or Possible Harm to Human Health 2.4
Level 1 - 1.1 - 1.5
Level 2-1.6-2.0
Level 3-2.1-2.5
Population 1200
Months in violation 174
Years in violation 14.50
(D) Duration of Non Compliance 17400
GRAVITY COMPONENT (CxD) $41,760
(no less than $1,000 in civil judicial and for PWSs serving
over 3,300 people in administrative cases)
ECONOMIC BENEFIT + GRAVITY COMPONENT $46,060
IV. Adjustment Factors
(E) Degree of Willingness or Negligence (1.0 - 2.0) 1.0
(F) History of Non Compliance 1.58
(a factor between 1.0 and 1.3 for each enforcement action issued)
PRELIMINARY SETTLEMENT AMOUNT $70,300
(H) Ability to pay (to decrease penalty),
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(Amount of money)
(I) Litigation Considerations
(0.01 - 0.5, 1)
FINAL SETTLEMENT AMOUNT
(Preliminary Settlement Amount - H) x 1 -1
Months in Violations in last 5 years 36
Years in violation in last 5 years 3.0
Municipality and Nonprofit Assoc.
Litigation Consideration $12,900
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