&EPA United Slates Environmental Protection Agoncy Region 6 Compliance Assurance and Enforcement Division \ * A ------- ------- Message from the Director If you've been at a meeting with one of EPA's enforcement and compliance assurance programs in the last year, you've probably heard us talking about NextGen—or perhaps the more formal name, Next Generation Compliance. The Compli- ance Assurance and Enforcement Division has long embraced the concepts behind this national initiative, and we are fully committed to working with our state and federal partners on making rules easier to understand and implement, building in greater transparency and accountability, using technology to monitor environmental performance, and making reporting easier and less expensive. Throughout this report, you will find examples of NextGen in action: • A new hazardous waste targeting method that utilizes data mining to inform our targeting and pre-in- spection preparation, which significantly improved our results this year. • Use of helicopter flyovers and infrared cameras to investigate hydrocarbon emissions from oil and gas facilities, at a lower cost and time investment than traditional monitoring methods. • Clean Air Act enforcement settlements with Shell, Calumet, and Flint Hills Resources that require state- of-the-art fence-line monitoring. The Shell settlement also makes the data available to the public weekly, directly benefiting the surrounding communities. • Water violators using in-stream real-time monitoring devices to monitor creeks and streams, using auto- mated wireless notification technology to reduce or eliminate violations and speed up response. • NetDMR, which enables facilities to submit discharge monitoring reports electronically, rapidly replacing paper reports and streamlining the transfer of information. As we focus on NextGen activities with the regulated community, we'll also be embracing organizational improvement this year using Lean, a systematic approach for identifying inefficiencies in our processes and implementing solutions. "Ask Questions, Rethink Processes, Create So- lutions," our focus statement for FY 2015, ties into this effort and calls on all of us to make sure the work we're doing each day is contributing value to the agency's mission. I'm proud of the work we've done this year in partnership with federal the air, water, and land cleaner in the communities we serve. Thank you to all of our employees—from our expert technical staff to our dedicated administrative professionals—and ail the individuals and agencies who helped make FY 2014 successful! I'm looking forward to a very successful year ahead. Ask Questions, Rethink Processes> Create Solutions , state, tribal, and local agencies to make Page i CAED 2014 ANNUAL REPORT ------- Contents Results at a Glance 1 Key Performance Indicators 1 National Enforcement Initiatives 2 Regional Enforcement Priorities 3 Supplemental Environmental Projects 4 State Highlights 5 Air Enforcement 6 Hazardous Waste Enforcement 8 Water Enforcement 10 Other Region 6 Enforcement 12 National Environmental Policy Act 13 The Year Ahead 14 Vision We will make environmental compliance commonplace to achieve clean air, water, and land. Mission To protect and sustain human health and the environment by ensuring compliance with Federal environmental laws in partnership with states and tribes. Values Collaboration Integrity Excellence Service Respect Page ii CAED 2014 ANNUAL REPORT ------- OK Results at a Glance Using a full range of compliance and enforcement strategies and tools, we concluded over 300 actions against environmental violators in fiscal year 2014, October 1, 2013 through September 30, 2014. Direct Environmental Benefits * Pollution Reduced, Treated, or Eliminated (Pounds) Contaminated Soil/Debris to be Cleaned Up (Cubic Yards) Contaminated Water to be Cleaned Up (Cubic Yards) People Protected by Safe Drinking Water Act Enforcement Stream Miles Preserved (Linear Feet) Wetlands Preserved (Acres) Toxic Chemicals & Pesticides Prevented from Misuse/Environmental Reiease( Pounds) Underground Injection Wells Prevented from Leaking Volume (gallons) of Untreated Discharge Eliminated Volume of Oil Spills Prevented (Gallons) 66,092,000 120 .... 383,000 13,550 3,200 19 337,155 5,000 50,000 40,585,321 Investments in Actions and Equipment to Reduce Pollution and Protect the Environment (Injunctive Relief) $1,262,600,000 Investments in Projects that Benefit the Environment and Public Health (Supplemental Environmental Projects) $1,816,800 Civil Penalties Assessed Administrative Penalties Assessed $5,595,000 Judicial Penalties Assessed $6,285,000 State/Local Judicial Penalties Assessed From Joint Federal-State/Local Enforcement Actions $2,191,250 Stipulated Penalties Paid $8,916,800 Civil Enforcement and Compliance Activities Referrals of Civil Judicial Enforcement Cases to Department of Justice 6 Supplemental Referrals to DOJ 0 Civil Judicial Enforcement Case Conclusions 8 Administrative Penalty Order Complaints 163 Final Administrative Penalty Orders 164 Administrative Compliance Orders 137 Cases with Supplemental Environmental Projects 4 Compliance Monitoring Activities Inspections/Evaluations 920 Civil Investigations 5 * Estimated Key Performance Indicators The Key Performance Indicators below are measures the agency's Office of Enforcement and Compliance Assurance monitors at the national level to evaluate program effectiveness. As the figures for Region 6 indicate, our enforcement of federal environmental laws and regulations has reduced pollution and decreased exposure to the communities in our region. Key Performance Indicators Region 6 Results Pounds of pollution reduced 66,092,000 Voiume of contaminated media addressed 383,000 Number of civil case initiations 306 Number of civil case conclusions 309 Page 1 CAED 2014 ANNUAL REPORT ------- National Enforcement Initiatives Preventing Animal Waste from Contaminating Surface and Ground Water In 2010, we started an enforcement initiative focusing on concentrated animal feeding operations at horse racetracks, which often assume their seasonal nature and intermittent horse population puts them outside the regulatory framework. Wastewater and contaminated stormwater are significant problems for the watersheds in which these CAFOs reside. Addressing noncompliance with Clean Air Act New Source Review re- quirements continued to be a focus in 2014. Through investigations and enforcement reviews, we have evaluated noncompliance and met our investigation goals for the sulfuric acid/nitric acid, glass, and cement sectors, and are continuing to support settlement efforts for these sec- tors. In addition, we are continuing our efforts to evaluate and address noncompliance at coal-fired power plants in the region. Cutting Hazardous Air Pollutants Reducing Air Pollution from the Largest Sources effective approach to MS4 audits by requiring facilities to conduct a self- assessment prior to the actual onsite inspections. The self-assessments focus on-site inspections on the most important aspects of each program, reducing the amount of time in the field. We conducted a total of three MS4 Phase I assessments and inspections. Additionally, three administra- tive enforcement actions were issued to three MS4 facilities resulting in $170,000 in injunctive relief and $69,000 in assessed penalties. and their operations do not meet Clean Water Act requirements. Over half of the CAFO racetrack operations we inspected had significant prob- lems—they were unpermitted and often had uncontrolled animal waste discharges. Of 13 inspections conducted, we have issued formal enforce- ment actions to eight facilities and have addressed most of the major problems found during the inspections. In 2014, we issued penalty orders to several of these operations. As we work to close out these orders, we continue to find problems with racetracks and the year-round training fa- cilities that often operate nearby. To help these types of operations com- ply with CWA requirements, we will be preparing a brochure in FY 2015 with operations and maintenance guidelines and visual examples of good and bad management practices to control animal waste discharges. Assuring Energy Extraction Activities Comply with Environmental Laws We have continued to look at gas processing facilities as part of the Na- tional Energy Extraction Initiative. Our efforts have been focused on com- pliance with the Clean Air Act and Clean Water Act in the Barnett Shale formation, East Texas, the Eagle Ford Shale play of South Texas, and gas production areas in Oklahoma. In FY 2014, we completed 46 inspections and resolved 10 enforcement cases under the CAA. Under the CWA, we conducted 38 inspections and addressed violations at 3 facilities through enforcement actions. Because of the large number of facilities within our region, we rely heav- ily on risk-based targeting to prioritize compliance evaluations and en- forcement activities. Using a NextGen approach that incorporates emis- sions modeling and risk assessment, evaluation of process upset data, assessment of permit exceedances, and evaluation of data within the Toxic Release Inventory, we conducted evaluations at six facilities and closed out one "no further action" case. We have also been successful in reviewing consent decree requirements based on acid gas and tail gas flaring. Keeping Raw Sewage and Contaminated Storm- water Out of Our Nation's Waters Addressing sanitary sewer overflows continues to be a high priority for our region. Excessive bacteria and pathogens are the most significant surface water quality impairments in our region. Our region currently has 73 wastewater treatment systems with average daily flows exceed- ing 10 million gallons per day, which have been the primary focus of the SSO national initiative. Of these systems, 98.6 percent, including 142 satellite systems, have been addressed through the review of existing municipal implementation plans, issuance of orders by Region 6 or our state partners, negotiated civil judicial settlements, and initiated federal enforcement actions. In 2014, consent decrees were entered for San Antonio, Texas, and Shreveport, Louisiana. We issued administrative orders to Albuquerque, New Mexico, and the City of Denton, Texas. We will continue to work with municipali- ties and our state partners to address the remaining system. In 2014, as part of the Municipal Separate Storm Sewer System (MS4) National Enforce- ment Wet Weather Initiative, we developed a more Page 2 CAED 2014 ANNUAL REPORT ------- National Enforcement Initiatives Reducing Pollution from Mineral Processing Operations in 2014, Region 6 worked with the Department of Justice, EPA's Office of En- forcement and Compliance Assurance and the Louisiana Department of Envi- ronmental Quality to address compliance issues at several phosphate fertilizer plants in Louisiana, Regional Enforcement Priorities Air Enforcement Preventing Releases of Extremely Hazardous Substances Addressing accidental re- leases from industrial facili- ties was an expanded area of focus for FY 2014 follow- ing our work in FY 2013 to develop an investigatory and settlement approach utilizing the general duty clause, with the goal of in- vestigating and expeditious- ly addressing these releases within 60 days. We believe this effort is already sending a strong message to industry and nearby communities that EPA takes these releases seriously. We also increased our risk management plan in- vestigations and enforcement at high-risk facilities. We have the largest number of high-risk facilities nationally, and ensuring that these facilities are in compliance with their plan is a significant concern to communi- ties at the fence-line. Additionally, we are increasing our communication with fence-line communities and are encouraging community-focused projects as part of our settlements. In FY 2014, we continued implementation of the innovative Clean Air Act general duty clause process, and increased the utilization of third party audits as part of GDC settlements. Many non-risk management plan facilities are not knowledgeable of risk management principles. The use of third party audits will increase facility awareness of process hazards. We issued four administrative orders on consent that require compliance with the GDC, and we filed 11 consent agreements and final orders to settle GDC and RMP violations, which netted $804,904. We also filed one complaint and notice of opportunity for hearing against Citgo Refinery Corpus Christi, Texas. These cases involved a range of inci- dents, including fires, explosions, hazardous substance releases, deaths, and injuries. We are committed to continuing this innovative program to quickly address incidents as they occur in the region. New Source Review Initiative - Carbon Black In 2014, we concluded EPA's first settlement with a carbon black manu- facturing plant as part of the agency's New Source Review (NSR) investi- gations of all carbon black manufacturing plants in the United States, a national enforcement initiative aimed at reducing air pollution from the largest sources (see First Settlement with Carbon Black Manufacturer on page 6). Under the national initiative, we have conducted 11 inspections and issued six notice of violations to companies located in Louisiana and Texas. Of the 15 carbon black facilities in the United States, 12 are in Region 6. Petroleum Refinery Consent Decree Compliance Ensuring that companies follow through with settlement commit- ments is a high priority for the region. As a result of the successful national Petroleum Refinery Initiative, we have been tracking and responding to consent decree deliverables from flaring events at 44 refineries located throughout the region. This year, we completed 31 responses to root cause failure analysis reports required under the decrees for acid gas, sulfur recovery plant tail gas, and hydrocarbon flaring events. These reviews resulted in the assessment and collec- tion of over $8,754,697 in stipulated penalties, mostly as a result of an $8.75 million penalty paid by Total (see Consent Decree Viola- tions Result in $8.75 Million Penalty on p. 7). Hazardous Waste Enforcement Illegal Hazardous Waste Management Practices According to hazardous waste management data, over 60 percent of the hazardous waste in the U.S. is generated in Region 6-over 22 million tons annually. We have mined "cradle-to-grave" data to target and develop compliance investigations. Data from the Bien- nial Reporting System, for example, are easily sorted and show what appear to be violations of RCRA notification requirements (such as conditionally exempt small quantity generators that are really large quantity generators). Data from BRS and other sources also show hazardous waste going to unauthorized facilities and traveling on bills of lading rather than manifests. The facilities we selected for investigations this year came directly from or were informed by our data mining effort. Close to 65 per- cent of our field investigations confirm significant violations, leading to enforcement. This change is an upward trend in the number of enforcement actions resulting from on-site inspections. Along with the results from our on-site inspections, half of our FY 2014 final enforcement actions came directly from the data reported by com- panies and did not require going to the field. In 2014, we also improved our investigations and introduced a streamlined enforcement process. We issued eight consent agree- ments and final orders with penalties ranging from $42,000 to Page 3 CAED 2014 ANNUAL REPORT ------- Regional Enforcement Priorities $143,000 in cases where the data alone supported enforcement ac- tions. Hazardous Waste Investigations This year we conducted 12 on-site compliance evaluation inspections and four on-site focused investigations. We also conducted off-site investigations, issuing 20 information requests and conducting 10 show cause meetings based upon the data reported by companies. at five facilities suspected of violating hazardous waste storage, treatment, and/or disposal requirements. Compliance concerns included receipt of unauthorized waste streams, operation of unpermitted units, and releases to the environment. In 2014, our brine program continued its efforts to protect the environ- ment by issuing 24 administrative orders, six administrative penalty orders totaling approximately $82,200, and six consent agreements and final or- ders. We reduced and treated approximately 1,312,044,000 pounds of water pollutants. Additionally, we worked with the Water Quality Division on the Coastal General Permit for produced water dischargers in Texas and continued strengthening our relationship with the Texas Parks and Wild- life Kills and Spills Team. We are leading the way in NextGen innovative technologies, such as working with violators to use in-stream real-time monitoring devices to monitor creeks and streams with automated wire- less notification technology to reduce or eliminate violations and speed up response. This new approach is being used by OECA's NextGen group as an example listed in the Best Practices Manual they are developing. Water Enforcement Brine Program Generators The 2011 BRS data showed that many conditionally exempt small quantity generators were actually large quantity generators. In addi- tion, we found large numbers of generators that should be reporting but are not. Beyond their failure to properly notify, most of these generators also failed to meet the other applicable requirements, such as proper storage, contingency planning, and worker training. The data also showed generators shipping to unauthorized facilities. Illegal hazardous waste treatment and disposal This year we conducted on-site compliance evaluation inspections Supplemental Environmental Projects Highlights Enforcement Name Final Order Enter Date Description Category SEP Cost State Primary Law TT Barge 09/25/2014 Improve environmental performance at the wastewater treatment facility and reduce the amount of hazardous waste transported through a nearby neighborhood. Equipment-Technol- ogy Modification $307,674 LA Resource Con- servation and Recovery Act Shell Oil Deer Park 06/06/2014 Fence-line open path air monitoring system at covered facilities. Reduce diesel emissions from school buses and/or non- school bus publicly owned vehicles in the vicinity of the covered facilities. Public Health Pollution Preven- tion/Equipment- Technology Modification $1,000,000 $200,000 TX Clean Air Act City of Albuquerque 05/30/2014 Pilot retrofitting the open common area of the parking lot with permeable pavement in the parking stalls in the Pino Yards Municipal facility in Albuquerque Pollution Reduction $61,000 NM Clean Water Act Calumet Shreveport Lubricant & Waxes 11/07/2013 Install 32 fence-line air monitoring devises. Public Health $248,000 LA Clean Air Act Page 4 CAED 2014 ANNUAL REPORT ------- State Highlights Maintaining strong relationships with our state partners is essential |\|ew MexiCO to implementing an effective compliance assurance and enforce- ment program. We continue to build on that partnership through frequent face-to-face meetings with each state's enforcement direc- tors and management team and through staff-level monthly meet- ings to coordinate inspections and enforcement priorities and issues. This team approach brings us closer to the ultimate goal of providing cleaner air, water, and soil, and healthier communities. Environment The State Review Framework evaluations are continuing, with Round 3 to be completed for all states by the end of 2017. While we con- duct inspections in each of the Region 6 states, most of the inspec- tions and enforcement actions are conducted by the state agencies. Arkansas ADEQ evaluation for the City of Albuquerque, was finalized. Round 3 of the State Review Framework of the New Mexico Environment De- partment's Air and RCRA programs began in FY2013. The report is near completion, and the delegated for the CAA program, In 2014, NMED pursued substantial enforcement actions at Frontier Field Services ($938,291), Enterprise Field Services ($340,712), Cono- coPhillips Company ($189,658), Western Refining ($103,200), Clariant Corporations ($96,002), and Regency Field Services ($69,312). Oklahoma Round 3 of the State Review Framework began in FY2014 and the draft report has been completed. Region 6 will be working with OECA and ODEQ to finalize the report by 2nd Quarter FY15. Round 3 of the State Review Framework evaluation of the Arkansas Department of Environmental Quality's inspection and enforcement programs began in late 2014, with the on-site file reviews scheduled for November - December 2014. In FY 2014, ADEQ pursued significant enforcement with Streets Per- formance Inc. ($120,000), Plant Maintenance Service ($16,750), and Arkansas Electric Cooperative Corporation ($6,000). In addition, in Crittenden County, which is in nonattainment for ozone, the state concluded 33 cases that dealt with Vapor Recovery System instal- lation/maintenance and recordkeeping ($54,000). ADEQ also part- nered with EPA in a settlement with Arkansas Egg and received a portion of the penalty. Louisiana This year, ODEQ pursued substantial enforcement actions at the City of Blackwell ($31,000), City OKLAHOMA DEPARTMENT OF ENVIRONMENTAL QUALITY of Sallisaw ($12,000), Hol- ly Refining & Marketing Tulsa LLC - ($20,000), and ODOT VHP Bridge B ($18,000). In addition, as part of a national settlement with LSB Industries, ODEQ partnered with EPA, receiving a portion of the penalty addressing the Pryor Chemical Company facility ($206,250). Also, ODEQ's hazardous waste program is developing an outreach program for small quantity hazardous waste generators in an effort to improve compliance rates with these busi- nesses. DEQ LOUISIANA* Round 3 of the State Review Frame- work of the Louisiana Department of Environmental Quality's inspection and enforcement programs will be conduct- ed in FY 2016. This year, LDEQ pursued substantial enforcement actions at Cabot Cor- poration ($682,500 as a co-plaintiff with EPA), Offshore Specialty Fabri- cators, LLC ($225,000), Rain CI I Carbon, LLC ($87,000), Thoma-Sea Marine Constructors, LLC ($81,500), Enterprise Gas Processing, LLC ($71,000), and International Paper ($25,000). Louisiana also part- nered with EPA in two other settlements, receiving a substantial portion of the penalties: City of Shreveport ($325,000) and Lisbon Refinery ($65,000). Texas Round 3 of the State Review Framework evalua- tion of the Texas Commission on Environmental Quality's inspection and enforcement programs is targeted for FY 2017. In 2014, TCEQ pursued substantial enforce- ment actions at CES Environmental Service ($3,234,162), Lucite BeaumontSite ($89,169), City of Queen City WWTP ($81, 400), City of Yorktown WWTP ($51,030), and Nytex Automatic Products ($10,200). In addition, Texas partnered with EPA in the settlement with the City of San Antonio and received a substantial portion of the penalty ($1.3 million). TCEQ Page 5 CAED 2014 ANNUAL REPORT ------- Air Enforcement In 2014, we continued to focus our investigatory efforts on the region's most significant environmental noncompliance issues. We issued 28 in- formation requests and conducted 159 on- and off-site evaluations to determine compliance with New Source Review, air toxics, and energy extraction regulations. We also continued our efforts at facilities where explosions or fires have occurred, utilizing the general duty clause of the risk management plan requirements. We continued working with OECA to develop an expedited administra- tive penalty process for those flares and excess emissions identified un- der the national Air Toxics Initiative. We explored new areas of non- compliance impacting Region 6 communities by identifying excess emissions at flares, tanks, and loading terminals. We were able to meet or exceed ail of our commitments while issuing over 66 alternative mon- itoring plan responses, applicability determinations, regulatory interpre- tations, and related matters. We continued to focus our inspection resources on Clean Air Act Title V risk management plan requirements to reduce the risk of chemical accidents, explosions, and spills. Our goal is to swiftly address non- compliance in order to prevent and reduce the potential for accidents, explosions, and releases. First Settlement with Carbon Black Manufacturer EPA and the Department of Justice finalized the first Clean Air Act settle- ment with a ccarbon black manufacturer, Cabot Corporation, following the agency's New Source Review investigations of carbon black manu- facturing plants. The investigations were part of a national enforcement initiative aimed at reducing air pollution from the largest sources. The agreement with Cabot, the second largest carbon black manufacturer in the U.S., will significantly reduce air pollution from three carbon black manufacturing plants in Franklin and Ville Platte, Louisiana, and Pampa, Texas. Cabot has agreed to pay a $975,000 civil penalty and spend an estimated $84 million on injunctive relief that will require installing state of the art technology to control harmful air pollution. These measures are expected to reduce NOx emissions by approximately 1,975 tons per year, S02 emissions by approximately 12,380 tons per year, and signifi- cantly improve existing particulate matter controls. This settlement also requires that Cabot spend $450,000 on environmental mitigation proj- ects, which include energy saving and pollution reduction projects that will benefit communities surrounding the facilities. The Louisiana Depart- ment of Environmental Quality is a co-plaintiff in the case and will receive $292,500 of the civil penalty. Agreement to Install Flare Gas Recovery First of Its Kind Shell Oil Company, Deer Park Refining Limited Partnership, and Shell Chemical LP agreed to a settlement for their Deer Park, Texas, facility— which includes the 11th largest petroleum refinery in the country—that will eliminate over4,500tonsof harmful emissions peryearthrough more efficient flare operations. The chemical plant at the facility produces about 8,000 tons per day of products that include ethylene, benzene, toluene, xylene, phenol, and acetone, and Shell's agreement to recover and recycle waste gases through flare gas recovery at this plant is a first of its kind. The agreement requires reducing the amount of waste gas sent to flares and improving flare operations, both of which reduce toxic emis- sions. The agreement is the most recent in a series of national settlements that require industrial facilities to install instruments and monitoring sys- tems to ensure that gases sent to flares are burned with high efficiency and minimized emissions. Shell will spend approximately $1.2 million to reduce and monitor air pollution, pay a civil fine of $2.6 million, and spend between $15 and $60 million on environmental mitigation projects. Shell has agreed to install a state-of-the-art automatic system to monitor ben- zene levels at the fence-line of the refinery and chemical plant near a residential neighborhood and school and to make the data available to the public weekly through a website. Within 6 months of the monitor be- ing operational, Shell will investigate the onsite sources potentially caus- ing monitoring results meeting certain criteria. Fence-line Monitoring, Gas Recovery at Port Arthur Facility Our consent decree with Flint Hills Resources in Port Arthur, Texas, settled claims that FHR violated several CAA requirements, including failure to operate flares in a manner consistent with good air pollution control prac- tices. The agreement requires FHR to install a flare gas recovery system to recover potentially recoverable gas directed to the covered flares, to meet a 98 percent combustion efficiency at all times when waste gas is vented to all flares, and to install a fence-line monitoring program. The fence-line monitoring program requires FHR to maintain and operate two existing fence-line monitoring stations. An exceedance of an action level will result in an immediate notification to FHR's process control console, and within 24 hours, will initiate an investigation to identify the source of the exceedance. FHR is required to post air monitoring semi-annual reports containing fence-line monitoring data on-line at the same time it submits them to EPA, and to post to a publicly-available website site the data collected by the fence-line monitoring stations for the prior week. Page 6 CAED 2014 ANNUAL REPORT ------- Air Enforcement Follow up from Helicopter Inspections at Oil and Gas Facilities In 2014, we met with several facilities identified as having leaks dur- ing our 2013 aerial surveillance of oil and gas facilities along the Eagle Ford Shale located in and around San Antonio, Texas. The helicopter flyovers utilized an infrared camera to investigate volatile organic com- pound air emissions, and we were able to review 95 sites and found 238 leaks. After reviewing and aerial sur- veillance data and evaluating it for noncompliance, we are meeting with companies to discuss the actions they have taken to address the emissions captured on the infrared cam- era videos, and to determine if additional measures are needed to bring the facilities into compliance. Consent Decree Violations Result in $8.75 Million Penalty with a value of at least $248,000, will include 32 additional sensors cov- ering all sides of the perimeter of the facility and monitor for hydrogen sulfide, sulfur dioxide, and flammable gas lower explosive limit. Calu- met will also continue to host quarterly community meetings with local citizens to discuss environmental concerns and the results of the fence- line monitoring. Baton Rouge Facility to Pay Penalty for Failure to Implement Safe Work Practices Settlement Addresses Release of Hydrochloric Acid Injured Contractor In November, EPA entered a consent decree amendment TOTAL Petro- chemicals Port Arthur Refinery to settle violations of requirements in the original consent decree for benzene waste operations, sulfur recovery units, flares, and fluidized catalytic cracking units discovered during EPA's review of reports submitted by TOTAL. The amendment extended the pe- riod of compliance with the benzene waste operations annual limit by two years, implemented an internal CD Compliance Task Force, and re- quired a third-party auditor to assess compliance with the CD. EPA and Rubicon, LLC filed a consent agreement and final order to resolve alleged CAA violations stemming from a December 13, 2013, release of hydrochloric acid that injured a contractor and caused a shelter-in-place at nearby facilities. Rubicon agreed to pay $33,000 to resolve the alleged violations. Texas Facility Pays Penalty Following Chemical Reaction and Fire Risk Management Plan Violations at Louisiana Piant EPA filed a consent agreement and final order against ExxonMobil Re- fining and Supply Company resolving Risk Management Plan violations at its refinery in Baton Rouge, Louisiana. The violations included failure to annually certify operating procedures and failure to develop and implement safe work practices to provide for the control of hazards during opening process equipment or piping. ExxonMobil will pay a civil penalty of $120,000. Calumet Shreveport Lubricant and Waxes, L.L.C., a crude oil refinery and petroleum products facility, will expand a fence-line monitoring system to increase awareness of toxic air releases and pay a civil penalty of $326,000 to settle nine violations of the CAA's Risk Man- agement Plan rule related to past ex- plosions and the facility'semergency response program. The fence-line monitoring system, a Supplemental En- vironmental Project After conducting an investi- gation into a fire that start- ed during the cleaning of a concrete slab on April 25, 2013, EPA filed a consent agreement and final order against International Paper Company - Texarkana Mill, located near Oueen City, Texas. Calcium hypochlo- rite was used to clean the concrete slab and came into contact with a weak tur- pentine and water solution, which resulted in a chemical reaction and fire. International Paper paid an administrative penalty of $30,000. Page 7 CAED 2014 ANNUAL REPORT ------- Hazardous Waste Enforcement We sharpened the focus of our investigations this year, leading to greater enforcement results per investigation—65 percent of our on-site inspec- tions revealed actionable violations. We also discovered violations using data mining and issued enforcement actions without on-site inspections. As a result, we doubled the number and outcome results of our enforce- ment actions compared to FY 2013 without increasing on-site inspection levels. In 2014, we issued 18 final administrative penalty orders and two administrative orders, and we entered one judicial consent decree. New Data Mining Approach Identifies Violations by Gen- erators Our review of Biennial Reporting System data found several companies that shipped large quantities of hazardous waste but continued to no- tify as small quantity or conditionally exempt small quantity generators. Further investigation revealed that most of these companies also failed to meet the requirements for contingency planning, worker training, and proper storage. We addressed the notification violations and failure to meet the other applicable generator requirements with consent agree- ments and final orders assessing penalties and requiring that the com- panies certify that procedures were in place to comply with all the ap- plicable generator requirements. Facility City, Texas Date Issued Penalty Leading Edge Aviation Amarillo 6/18/2014 $70,840 Southern Metals Processing Co. Beaumont 7/2/2014 $42,510 Aircraft Ducting Repair, Inc. Longview 9/24/2014 $143,992 Dril-Quip, Inc. Houston 8/26/2014 $94,900 Micron Industries, LLC Garland 9/18/2014 $111,500 Quadrant Chemical Corporation, McKinney 9/30/2014 $80,000 Rentech Nitrogen Pasadena, LLC Pasadena 9/25/2014 $88,490 PVC Producer Settles for Violations of RCRA, CWA, and EPCRA EPA issued a multimedia consent agreement and final order to Shintech of Freeport, Texas, the largest producer of polyvinyl chloride in the U.S., for failure to comply with the generator standard requirements of RCRA, for discharging pollutants in excess of its CWA permit, and for failure to comply with the re- porting require- ments of EPCRA. In 2013, Shintech dis- closed compliance issues related to hazardous waste generation, and fur- ther investigation by EPA revealed viola- tions of RCRA, CWA and EPCRA require- ments. The order required full compli- Aerial photo of Sintech's facility ance anc| imposed a total penalty of $651,768.00 (RCRA $414,948, CWA $64,000, and EPCRA $172,820). Importer of Hazardous Waste Fails to Comply with RCRA Requirements Through our data mining work, we discovered that Residues Industrials Multiquim, S.A. de C.V., an importer of hazardous waste, failed to comply with the applicable generator requirements, including RCRA 3010 notifi- cation, hazardous waste manifesting, foreign waste shipment reporting, and biennial reporting. As a result, we issued a consent agreement and final order that required RIMSA to comply with those requirement and imposed a penalty of $121,120. Port Allen Facility Pays Fine for Hazardous Waste Storage and Management Violations We filed a consent agreement and final order against TT Barge addressing RCRA violations associated with storage and management of hazardous waste. Inspections revealed violations that included releases of hazard- ous waste (benzene), storage without a permit, and failure to complete hazardous waste shipment documents. The order required TT Barge to take action to eliminate releases of hazardous waste, ensure adequate worker training, and remove and properly dispose of illegally stored haz- ardous waste or apply for a permit. It included a penalty of $102,588 and a Supplementary Environmental Project valued at $307,674 for a wastewater treatment facility to improve overall environmental perfor- mance and reduce the amount of hazardous waste transported through a nearby neighborhood. Illegal Waste Treatment at El Dorado, AR, Facility We issued a consent agreement and final order to Clean Har- bors for failure to make a hazardous waste determina- tion on the waste sludge generated from the incinera- tion of a wide vari- ety of listed and characteristic haz ardous wastes, failure to obtain a permit to store and treat the sludge and related equipment, and failure to replace the spent carbon canister used in the control of air emissions. The order requires Clean Harbors to pay a penalty of $581,236, to apply for a modification of the existing permit, and to comply with the applicable regulations. Violations of Hazardous Waste Storage Requirements Near Residential Community After a facility fire in 2012, EPA investigated Nexeo Solutions, LLC in Garland, Texas, and found that the facility was storing wastes to- gether that had the po- tential for violent reac- tion. The company, which is located near a J 1 1 li - j residential community, also failed to submit critical permit modifica- Page 8 CAED 2014 ANNUAL REPORT ------- Hazardous Waste Enforcement tions, comply with permit conditions, meet safety-related facility stan- dards, and meet minimum training requirements. In June, we issued a consent agreement and finai order to Nexeo for the company's failure to comply with hazardous waste storage requirements and assessed a pen- alty of $374,058. RCRA Corrective Action Program We filed a consent agreement and final order under RCRA requir- ing site clean-up at Chalmette Refining in Chalmette, Louisiana, in support of the Government Performance and Results Act RCRA clean up goals. The order requires implementation of site-wide corrective action measures, including groundwater recovery and treatment. Groundwater monitoring will continue under the or- der until clean up levels are attained. Federal Facilities Compliance Annual Federal Facilities Conference On June 25-26, 2014, representatives from 32 Federal Facilities attended the Annual Federal Facilities Conference hosted by Region 6. This yearthe conference showcased major Adminis- trator themes - Next Generation Enforcement, Greenhouse Gas reduction, and Sustainability (Federal Green Challenge). In addition to these overarching topics, facility representatives were also able to discuss facility and program- specific areas of interest and concern. Abandoned Explosives at U.S. Army Former Explo Systems Site We issued a unilateral administrative order to the Department of Army in March in re- sponse to the threat posed by millions of pounds of abandoned explosives at Camp Minden, Louisiana. In October 2012, a mag- azine containing high explosives blew up at Explo Systems and shattered windows four miles away. Ensuing investigations by EPA and the State of Louisiana found high explosives stored illegally were posing an immi- nent and substantial endangerment to the surrounding communities. In addition to Explo Systems, other responsible parties were identified, in- cluding the Department of Army. The order issued to the U.S. Army re- quires it to eliminate the imminent and substantial endangerment posed by some 15 million pounds of M6 propellant that had been aban- doned at the site. Work to remove the threat will continue into 2015. Reactive Waste Improperly stored Lead-Based Paint Violations We issued a final administrative penalty order under the Toxic Substanc- es Control Act's Lead-based Paint Renovation, Repair and Painting rule to Manhattan Construction and Ark Wrecking. The two firms renovated an elementary school built in 1929 and failed to obtain firm and reno- vator's certification. The certification program is designed to minimize the risk of workers and occupants being exposed to lead. Centers for Disease Contro and Prevention data showed that the school was located in an area where blood-lead levels in children were elevated. The order assessed a $24,000 penalty. AWARE Page 9 CAED 2014 ANNUAL REPORT ------- Water Enforcement Our highest priority continues to be providing quality drinking water that meets national health-based standards, working closely with our state partners and tribal drinking water systems. In FY 2014, we issued over 30 drinking water administrative orders, which protected the health of over 13,000 people. The orders required monitoring and reduction or elimina- tion of bacteria, arsenic, nitrate, and disinfection by-products (haloacetic acid and trihalomethanes) from drinking water systems. The protection of drinking water aquifers remains a high regional priority, and we issued two administrative orders to properly control the disposal of produced and flow back waters from oil and gas production activities in the region. With regard to surface waters, we issued over 70 administrative orders and 14 administrative penalty order complaints to address water quality prob- lems caused by sewage treatment facilities, animal feeding operations, in- dustrial facilities, inadequate storm water control, and land-based oil and gas production facilities. We had a very successful year ensuring the waters and communities in our region are protected. To achieve compliance, we issue the largest body of administrative enforcement actions in the nation—over 20 percent of the national water program enforcement actions. Our public water supply ad- ministrative actions accounted for over 50 percent of the total injunctive relief required by EPA actions nationally. Our effective and collaborative working relationships with our state partners, usage of the Enforcement Targeting Tool for drinking water systems, and NextGen tools, coupled with the sustained commitment of staff and counsel, enabled us to continue to reach our goai of making our region a healthier place to live despite expe- riencing a 20 percent loss of expert staff with over 160 years of program experience. Shreveport Sanitary Sewer Overflow Problems Addressed in Consent Decree The City of Shreveport, which reported 850 sanitary sewer overflows since June 2005 and violated the terms of its Louisiana Pollutant Discharge Elimination System (LPDES) Permits, agreed to pay a $650,000 penalty, to be divided evenly between the U.S. and Louisiana, to settle violations of the Clean Water Act. The city will conduct a comprehensive assessment of its sewer collection system regarding condition and capacity and will repair and rehabilitate as needed. It also agreed to implement a program to improve maintenance of its sewer collection system. The estimated cost for all this work is $342 million over the next 12 years. New Orleans Agreement Continues to Address Sewer System Work More Efficiently The Sewerage and Water Board of New Orleans entered a third modified consent decree with EPA, the Department of Justice, and other parties updating the original 1998 decree and the 2010 and 2013 modifications. The agreement extends the schedule for the three basins not addressed in the second modified consent decree, including the Mid-City, Carroll- ton and South Shore Basins. The schedule, which had been impacted by Hurricane Katrina damage in 2005, was modified to facilitate and coordi- nate the rehabilitation of the sewer system, stormwater drainage system, drinking water system, and road rehabilitation to obtain the most efficient use of federal, state, and local funding. Consent Decree to Control Sewer System Overflows in San Antonio In October 2013, we finalized a con- sent decree with the San Antonio Water System that resolves CWA vio- lations due to sewer system over- flows from collection system and vi- olations due to exceedances of effluent limitations of its NPDES per- mits. The water system, which serves about 1.3 million people, agreed to conduct a comprehensive assess- ment of its sewer collection system regarding condition and capacity and to implement a program to improve maintenance of its sewer collec- tion system, at an estimated cost of over $1 billion. SAWS will also pay a civil penalty of $2.6 million, split evenly between the U.S. and Texas. The consent decree is the largest judicial settlement in Region 6 for violations due to SSOs and other provisions of the CWA. Page 10 CAED 2014 ANNUAL REPORT ------- Water Enforcement New Mexico Direct implementation of CWA During FY 2014, we conducted inspections at eight major and 10 minor NPDES facilities to determine compliance with their NPDES permits. In addition, we issued administrative enforcement actions against 17 in- dustries and municipalities, resulting in $314,000 in injunctive relief and $179,000 in assessed penalties. Multiple Parties Reach Agreement to Resolve EXPO New Mexico CAFO Case EPA's enforcement action at EXPO NM required that the comingling of process wastewater from the concentrated animal feeding op- eration with storm water runoff from Albuquerque streets be stopped. To conclude this agree- ment, we worked through complex issues with many parties, including EXPO NM, a state agency that op- erates the State Fair; the Downs, a tenant of EXPO NM that operates a horse racing CAFO on State Fairgrounds; the City of Albuquerque, which has an agreement with EXPO NM for storm water management infra- structure on State Fair lands; neighborhood residents impacted by storm water runoff mixed with the CAFO waste from overloaded street drain- age; and the Albuquerque Metropolitan Arroyo Flood Control Authority, which is responsible for managing storm water to protect public health and safety. EXPO NM paid a penalty of $96,000 for past unauthorized discharges, and the facility was required to obtain permit coverage under the CAFO general permit to ensure future good practices. EPA's actions have removed a significant source of bacteria and oxygen demand previ- ously discharged to the Rio Grande. Vernon Feeders - An Innovative Solution EPA and the Department of Justice initiated a judicial enforcement ac- tion against Vernon Feeders for an unauthorized discharge of manure into Paradise Creek, which runs across the facility, but were not able to conclude the case because the facility did not have the ability to pay for the measures needed to stop the discharges. During this time, the facility became inactive. In order to respond to the unique challenges this case posed, we developed an innovative approach—we issued an administra- tive order requiring the now inactive facility to obtain TCEQ CAFO permit coverage if it ever again operates as a CAFO. The order will be formalized in a deed restriction agreement and will be filed with the County Apprais- al District office to warn the public about this requirement. The owner of the facility has indicated it will operate only as a farm for growing crops and no longer as a CAFO. This outcome resulted in better protection of the environment. EPA and BIA Update Operators Manual and Handbook for Oil and Gas Operations in Osage County, OK In 1997, EPA and the Bureau of Indian Affairs developed an operator's manual that provided a clear language interpretation of the laws and reg- ulations applicable to oil and gas operations in Osage County. This year, EPA and BIA are updating the manual to incorporate statutory and regula- tory requirements given changes in the law over the intervening years. We have been soliciting input from the Osage Minerals Council, Nation Representatives, identified stakeholder groups, and the public through a series of stakeholder meetings. In addition to providing regulatory clar- ity to the operators, the manual will serve as a resource for landowners and the public on their rights under the laws and regulations. It will also provide clarification on which agencies should be contacted in the event someone has concerns regarding those oil and gas operations. NetDMR Continues to be a Successful NextGen Tool In 2009, NetDMR was developed to allow facilities permitted under the National Pollution Discharge Elimination System (NPDES) program to electronically submit discharge monitoring reports (DMRs) electronically. Today, NetDMR is recognized as a national tool for electronic reporting, which is rapidly replacing paper reports and creating many new opportu- nities beyond simply streamlining the transfer of information. Electronic reporting reduces costs associated with paper reporting and provides regulators with more complete and timely data, allowing more effective prioritization of monitoring and enforcement actions and therefore has been deemed a very effective NextGen tool. We continue to support elec- tronic submission of DMR data through continued training of the offshore oil and gas industry, resulting in the electronic submission of over 20,000 DMRs. Currently, we lead the nation with 54 percent of electronic DMR submission, totaling over 81,000. Safe Drinking Water Act - Electronic Tracking Tool (ETT) ETT List Reductions in FY14 EPA Region 6 and its states have been working together to improve drinking water systems for its consumers. This hard work is demonstrated in the last set of the Electronic Tracking Tool scores for total systems addressed or resolved. Region 6 and its states have addresses two and, in some cases, three times the number of systems addressed by any other region. The totals include systems returned to compliance and the issuance of formal actions. Region Total Addressed or Resolved* l 243 2 285 3 313 4 223 5 266 6 618 7 274 8 134 9 247 10 293 •These numbers include data up to March 31, 2014. Page 11 CAED 2014 ANNUAL REPORT ------- Water Enforcement TX ETT Efforts and Successes We have been actively addressing concerns with public water systems in Texas to ensure safe drinking water and to address the large number of systems with violations on the ETT list. By working with the Texas Wa- ter Infrastructure Coordination Committee funding committee to assist facilities in finding funds to address deficiencies, we have helped over 35 systems receive assistance this year. In addition, we have been address- ing systems with priority noncompliance (arsenic, fluoride, nitrate, and radionuclides) directly by issuing 13 administrative orders in FY 2014, for a total of 213 orders since 2011. As of today, about 53 water systems have returned to compliance and EPA has closed their Orders. We are also working with Waco area systems and the Texas Water De- velopment Board to address a number of systems with arsenic problems (7 out of 16 systems). The systems will need to purchase property and easements for approximately 90 miles of pipeline to connect to the City of Waco's water system. Over 13,000 residents will receive cleaner drinking water after corrective measures are implemented. The cost will be over $50 million. Recently, a grant funding of $175,000 from the Texas Water Development Board was awarded to enhance this project. Once compli- ance is achieved through the EPA Orders, over 200,000 citizens in Texas will be drinking water that meets national drinking water standards for these chemical contaminants. Casino; and 3) Zuni Pueblo/New Beginnings Program PWS. During these inspections, the tribes were able to articulate the challenges they face in operating and maintaining their PWSs. Region 6 interaction with the tribes has built a relationship based on trust. R6 has Orders pending to address violations at twelve Mescalero Apache Tribe PWSs for failure to install filtra- tion and continuous disinfection along with numerous other deficiencies. R6 is working closely with the Mescalero President and tribal representa- tives to bring all twelve PWSs into compliance with the Safe Drinking Water Act. The Regional Administrator, Enforcement senior managers, and the Tribal Affairs Office have discussed the on-going violations and submission of corrective plans to bring the PWSs into compliance. Training/Assistance/Outreach Initiatives National Multi-Media Inspection/Enforcement Training Workshop We hosted the Biennial National Multi-Media Inspection/Enforcement Training Workshop in Dallas, Texas, in July for federal, state, tribal, and lo- cal regulatory staff who work in the air, RCRA, and NPDES programs. Over 600 participants representing 21 states, 7 local agencies, 6 tribes and Indian Nations Council of Governments, 8 EPA Regions, EPA Headquarters, and EPA National Enforcement Investigations Center attended in person or by webcast. Tribal ETT Months of work with BIA and Jones Acade- my on an Agreed upon Order of Compliance produced a good result for the students by reducing trihalomethane in their drinking water. The Academy's ETT score went from 84 to 0. Five tribal PWSs were returned to compliance during FY 2014: 1) Zuni New Be- ginnings, 2) Pawnee Nation, 3) Cherokee Kenwood, 4) Laguna Route 66, and 5) Taos Pueblo PWSs. These improvements were made possible through consistent monitor- ing and compliance tracking of the systems. R6 provided continuous con- sultation and technical assistance in the effort to achieve compliance. R6 conducted five compliance inspections of Tribal PWSs in FY2014 to moni- tor compliance with the SDWA regulations and protect public health: 1) Cochiti Pueblo/Community & Silver Lake PWSs; 2) Jicarilla/Du Ice & Nugget n Other Region 6 Enforcement Enforcement Wetlands Enforcement Pesticides In FY 2014, the pesticides enforcement team filed 29 formal enforce- ment actions, including 23 administrative compliance orders. Six of these orders had penalties, for a total of $33,750. Over 80 percent of these actions resulted from the processing over 8,000 Notices of Arrival of pesticides and devices. The work of the pesticides enforcement pro- gram this year ensured that over 500,000 lbs of pesticidal products en- tered U.S. commerce legally or were prevented from entering the U.S. Toxic Release Inventory Enforcement The Toxic Release Inventory program settled 18 enforcement cases in FY 2014. The total amount of all penalties for violations of the Emergency Planning and Community Right-to-Know Act section 313 was $783,427. In FY 2014, the wetlands enforcement program conducted 32 on-site inspections, issued nine forma! enforcement actions, and collected $33,002 in penalties. In addition, we continued work with the Department of Justice on a major ongoing referral. We are also one of the very few regions to have an on-going wetlands enforcement action under the self-disclosure policy. Violators spent an estimated $363,133 in compliance costs, primarily the cost of wetland and stream restoration. Resolution of injunctive relief cases, in combination with the penalty actions, provided direct protection to 149.85 wetland acres and 13,894 linear feet of streams. The deterrence effect, as reported to EPA by the COE and other partners, protects many times these amounts of aquatic resources. Handling Discharges from Poultry Operations Brochure IDENTIFYING AND CONTROLLING Discharges From As part of EPA's Office of Enforcement and Compliance Assurance's National Enforce- ment Initiative for concentrated animal feeding operations, we investigated poul- try operations in a sub-watershed of the Illinois watershed and developed a bro- chure to provide information about the most commonly observed violations of the Clean Water Act along with suggested Best Management Practices to address J -ylik. these violations. The brochure has been cited by EPA Headquarters as an effective tool for communication regarding CWA noncompliance and an important manual for the proper operation and maintenance of poultry operations, and the Department of Justice used the document in its appeal of a case. Page 12 CAED 2014 ANNUAL REPORT ------- National Environmental Policy Act National Environmental Policy Act/Section 309 NEPA requires federal agencies to consider the potential environmental consequences of their proposed action and any reasonable alternatives before deciding whether and in what form to take the action. NEPA com- pliance may take three forms: a Categorical Exclusion, an Environmental Assessment/Finding of No Significant Impact, or an Environmental Impact Statement. The EIS requires the most intensive level of analysis and is ap- propriate for actions that are expected to result in significant environmen- tal impacts. NEPA Coordination/Reviews 35 Draftand Final Environmental Impact Statements 4 EPA Special Appropriation Environmental Assessments/Find- ing of No Significant Impact/Categorical Exclusion for drinking water and wastewater projects 1 EPA/US Mexico Border EA/FNSI for Drinking or Wastewater projects 267 EA Review from Other Agencies This year, we reviewed 35 Draftand Final Environmental ImpactStatements under section 309 of the Clean Air Act and the National Environmental Policy Act, including substantial comment and concerns on three Liquefied Natural Gas draft EISs: Cameron LNG Liquefaction Project in Louisiana, and Freeport LNG Liquefaction Project and Phase II Modifications and the Corpus Christi LNG Project in Texas. We performed 267 additional CAA section 309 environmental reviews of Environmental Assessments and Findings of No Significant Impact pre- pared by other federal agencies, including the U. S. Housing and Urban De- velopment Community Block Grant Program, the Department of Energy, the Bureau of Land Management, the U.S. Army Corps of Engineers, the Federal Highway Administration, the Federal Aviation Administration, and the U.S. Department of Agriculture. One of these EAs, from the Pipeline and Hazardous Materials Safety Ad- ministration,, was for an application for a Special Permit/Requested Relief of Certain Packaging Requirements for Highway Motor Vehicles relating to the transport of precursor chemicals from Syria in Port Arthur, Texas. Through intense collaborative efforts afforded through the NEPA review process, the waste were destroyed without incident or impact to the local community. ENERGY LNG Export Terminal Development There are more than 110 Liquefied Natural Gas facilities operating in the U.S.. Some export natural gas from the U.S., some provide natural gas to the interstate pipeline system or local distribution companies, and others are used to store natural gas for periods of peak demand. There are also facilities that produce LNG for vehicle fuel or for industrial use. Depending on location and use, an LNG facility may be regulated by several federal agencies and by state utility regulatory agencies. In Region 6, the Federal Energy Regulatory Commission is responsible for authorizing the siting and construction of onshore and near-shore LNG im- port or export facilities, and it also issues certificates of public convenience and necessity for LNG facilities engaged in interstate natural gas transpor- tation by pipeline. FERC prepares EAs or EISs for proposed LNG facilities under its jurisdiction, and EPA Region 6, as a Cooperating Agency, provides detailed scoping com- ments to identify areas of most concern to the agency. There are cur- rently 15 onshore and offshore LNG terminals for import or export of LNG either existing or proposed as poten- tial export terminals in Texas and Louisiana. EPA to Improve Mitigation Follow Up Special Congressional Appropriations Projects In FY 2014, we conducted NEPA assessments on four special Congres- sional appropriations projects involving approximately $1,262,550 in federal funding support and directly benefitting approximately 123,000 local residents. The projects involved construction or rehabilitation/ renovation in Arkansas {City of Cabot wastewater), Louisiana (Assump- tion Parish, Police Jury wastewater), and Texas (City of Baytown drink- ing water, City of Leonard wastewater). EPA administers these projects, which require a 55 percent match by the funding recipienct. Border Water infrastructure We conducted NEPA assessments on eight Border Environment Co- operation Commission projects involving approximately $26,544,135 in federal funding support and directly benefiting approximately 293, 582 local citizens. The projects involved construction or rehabilitation/ renovation in New Mexico (City of Anthony wastewater, Camino Real Regional Utility Authority for Sunland Park wastewater, Town of Mesilla drinking water), Texas (El Paso County Water Control and Improvement District for Cuadrilla Colonia wastewater, Lower Valley Water District for Cotton Valley Estates in Socorro wastewater, and City of Tornillo Arsenic Removal Facility drinking water), and Mexico (City of Camargo Wastewater Collection wastewater, City of Reynosa Wastewater Col- lection wastewater. BECC construction projects are funded by the EPA Project Develop- ment Assistance Program and administered by BECC. They require a 45 percent match by the funding recipient. We are participat- ing in the Office of the Inspector that EPA improve roe*t mo its efforts to follow up on mitigation h;.- • measures estab- lished as result of IIHKM I t W u" CHM1M 1* ¦ym/r- the NEPA process MftUM 1/1 ^ ntn*LAV ft and documented in H 9WUWI u the Record of Deci- sion. We have requested a written update from the Galveston District Corps of Engineers on the status of the mitigation measures that were agreed to and adopted in the Final EIS for the Bayport Container/Cruise Terminal Project located in Harris County, Texas, and are awaiting the Corp's response. Page 13 CAED 2014 ANNUAL REPORT ------- The Year Ahead Air Enforcement In FY 2015, we will continue to focus on noncompliance that Is impacting communities and nonattainment areas, and we will increase our efforts to improve the efficiency of our processes, working toward our primary goal of returning facilities to compliance and securing emission reduc- tions quickly. We are moving forward in our plans to expand the use of our administra- tive authorities. Historically, we have relied heavily on the judicial pro- cess to secure compliance and injunctive relief for air enforcement, but this process often involves multiple years of negotiation prior to settle- ment. As we increase our use of administrative authorities, we will still refer cases to the Department of Justice with complex, multi-year injunc- tive relief schedules and multi-million dollar penalties. We will continue to support the national enforcement initiatives relating to New Source Review, but we will begin decreasing the number of new investigations and focusing our efforts on resolving those cases already referred to the Department of Justice. With respect to air toxics, we are increasing our focus on addressing flares in nonattainment areas and environmental justice communities. We are also expanding our investigatory efforts focused on excess emis- sions from storage tanks. As oil and gas exploration expands rapidly in the region, we will continue our investigatory focus on those areas with the most growth, the Eagle Ford Shale and Permian Basin. We will continue our efforts to ensure that these extraction activities are in compliance with air regulations, and will utilize innovative technology, such as aerial flyovers, to evaluate and address noncompliance in a timely manner. Addressing accidental releases from industrial facilities will be continue as an area of focus for FY 2015. We made great strides last year in devel- oping an investigatory and settlement approach utilizing the general duty clause, and will continue refining this process to improve efficiencies and the timeliness of our actions. We are also continuing our focus on risk management plan investiga- tions and enforcement at high-risk facilities. We have the largest number of high-risk facilities nationally, and ensuring that these facilities are in compliance with their plan is a significant concern to communities at the fence-line. Hazardous Waste Enforcement Over the next year, we envision a continued upward trend in enforce- ment results from targeting, pre-inspection planning, and expanded use of off-site investigations. We will focus our inspections and en- forcement in sectors and facilities that are treating, storing, or dispos- ing of hazardous waste illegally. We will also use our enforcement au- thorities to advance RCRA corrective action at high-priority facilities. In addition, we plan to work with Louisiana, the Office of Enforcement and Compliance Assurance, and the Department of Justice, to resolve compliance issues at phosphate fertilizer operations in Louisiana. We plan to step up our inspec- tions under the TSCA lead-based paint Renovation, Repair, and Painting rule, focusing on those locations likely to have the greatest impact upon children's health. Water Enforcement The protection of drinking water again will continue to be our highest priority in FY 2015. We will continue to work with our state partners to ensure that all public water supply systems provide drinking water consistent with national drinking water standards and the implement- ing rules. It is anticipated that the water enforcement program may need to issue over 30 administrative actions during FY 2015 to protect drinking water. Addressing sanitary sewer overflow discharges to surface waters also continues to be a priority. We will focus our efforts on resolving exist- ing judicial cases and dedicate resources to evaluating previously un- addressed systems with average flows greater than 10 million gallons per day. With the support of the Office of Enforcement and Compli- ance Assurance and the Department of Justice, we will evaluate or resolve problems with three to four large municipal sanitary sewage collection systems in FY 2015. The water quality problems posed by concentrated animal feeding op- erations in Arkansas, Louisiana, and east Texas will remain the focus of regional inspection and enforcement activities. We will continue to work with Arkansas and Louisiana to develop effective mechanisms for identifying and addressing water quality problems caused by CA- FOs, and citizen complaints are also expected to result in identification of water quality problems that will need to be addressed. We also expect to carry out outreach efforts with producer groups, over 20 inspections, and issue six to eight enforcement actions in FY 2015. We will continue to place emphasis upon inspection and enforcement of National Pollutant Discharges Elimination System permits in New Mexico to protect stream quality from excessive sewage or industrial discharges. We will monitor underground injection of oil and gas pro- add value to state compliance We will use our resources as ef- fectively as possible for greater enforcement results, to support national program priorities and enforcement programs. Page 14 CAED 2014 ANNUAL REPORT ------- The Year Ahead duction wastes and enforce as needed to ensure underground sources of drinking water on tribal lands are adequately protected. We will protect drinking water systems in Louisiana from ground water rule violations. We will investigate and take enforcement actions against unauthorized discharges of produced water or flow back water from oil and gas production activities to the extent that resources allow. All of these non-deiegated functions will require over 200 inspections and are estimated to result in 20 or more enforcement actions. Finally, addressing municipal, industrial, or construction-related storm water problems will remain a priority, when water quality problems develop or need to be prevented. NEPA In FY 2015, we will continue to oversee the regional NEPA program by preparing documents, reviewing preliminary analysis, and provid- ing comments on major federal actions. We have cooperating agency agreements with many federal agencies, including the Federal Highway Administration, Bureau of Land Management, Department of Energy, and the U.S. Army Corp of Engineers, for numerous projects, which will allow us early participation in the planning and development of NEPA-related documents. We will continue to coordinate with these agencies and others this fiscal year. U.S. EPA, Region 6 Compliance Assurance and Enforcement Division John Blevins, Director Stacey Dwyer, Acting Deputy Director Air, Toxics and Inspection Coordination Branch Steve Thompson, Associate Director Darrin Larson, Chief, Air Enforcment Section Margaret Osbourne, Chief, Toxics Enforcement Section Samuel Tates, Chief, Surveillance Section Hazardous Waste Enforcement Branch Mark Potts, Associate Director Sunita Singhvi, Chief, Multimedia Enforcement Section Guy Tidmore, Chief, Compliance Enforcement Section Troy Stuckey, Chief, Corrective Action and Compliance Inspection Section Water Enforcement Branch Jerry Saunders, Associate Director Paulette Johnsey, Chief, NPDES Compliance Section Willie Lane, Chief, Water Resources Section Carol Peters-Wagnon, Chief, NPDES Industrial and Municipal Section Office of Strategic Planning and Analyses Monica Smith, Acting Associate Director Craig Weeks, Acting Chief, Office of Planning and Coordination Page 15 CAED 2014 ANNUAL REPORT ------- U.S. Environmental Protection Agency, Region 6 Compliance Assurance and Enforcement Division 1445 Ross Avenue (6EN) -0? Dallas, Texas 75202-2733 epa.gov/region6/6en/index.html ------- |