EPA v. AMERICAN CYANAMID COMPANY (LEDERLE LAB'S DIV)

Case summary

LITIGATION REFERRAL CONCERNING VIOLATIONS OF THE CLEAN AIR ACT BY AMERICAN CYANAMID COMPANY, LEDERLE LABORATORIES DIVISION. SECTION 165 OF THE CLEAN AIR ACT, 42U.S.C. SECTION 7475, PROHIBITS CONSTRUCTION OF A MAJOR EMITTING FACILITY WITH- OUT A PREVENTION OF SIGNIFICANT DETERIORATION ( PSD ) PERMIT IN ALL AREAS SUBJECT TO THE REQUIREMENTS OF PART C OF THE CLEAN AIR ACT. 40 C.F.R. SECTION 52.21(I) PROHIBITS THE INITIATION OF CONSTRUCTION WITHOUT A PSD PERMIT. 40 C.F.R. PART 60, SUBPART GG IS THE NEW SOURCE PERFOR- MANCE STANDARD FOR STATINARY GAS TURBINES PROMULGATED PUR- SUANT TO C.F.R. SECTION 60.7 REQUIRES NOTIFICATION OF CON- STURCTION OF A SOURCE SUBJECT TO A NEW SOURCE PERFORMANCE STANDARD. 40 C.F.R. SECTION 60.7 WASPROMULGATED PURSUANT TO SECTION 114 OF THE ACT, 42 U.S.C. SECTION 7414. ON NOV, 4, 1988 AMERICAN CYANAMID COMPANY, LEDERLE LAB'S DIVISION ( LEDERLE ), INITIATED CONSTRUCTION OF A PSD AND NSPS AFFECTED FACILITY PRIOR TO THE ISSUANCE OF A PSD PERMIT AND WITHOUT NOTIFICATION TO THE NEW YORK STATE ( NYSDEC ) OR EPA OF THE CONSTRUCTION. LEDERLE HAD APPLIED FOR A PSD PERMIT IN JULY 1988 AND KNEW, IN DECEMBER 1987, THAT THE SOURCE TO CONSTRUCTED WAS SUBJECT TO NSPS. A PSD PERMIT WAS ISSUED BY NYSDEC ON AUGUST 15, 1989 HOWEVER THE FINAL PERMIT DECISION WAS APPEALED BY EPA-REGION II. THE REGION'S APPEAL STAYED THE EFFECTIVENESS OF THE PERMIT. THE REGION FIRST LEARNED OF THE CONSTRUCTION ON 10/03/89. ON OCT. 19, 1989, THE REGION ISSUED A NOTICE OF VIOLATION AND A SECTION 167 ORDER. TO DATE, LEDERLE DOES NOT HAVE AN EFFECTIVE PSD PERMIT. RELIEF SOUGHT: WHILE CONSTRUCTION HAS HALTED, THE REGION SEEKS AN INJUNCTION MANDATING FUTURE COMPLIANCE WITH THE PSD AND NSPS REGULATIONS WITH STIPULATED PENALTIES FOR FUTURE VIOLATIONS. THE REGION ALSO SEEKS PENALTIES REFLEC- TING THE COST OF THE FACILITY, THE EGREGIOUS NATURE OF AND THE ECONOMIC BENEFIT OF STARTING OPERATION APPROXIMATELY ONE YEAR EARLIER THAN WOULD HAVE HAD THEY NOT CONSTRUCTED WITHOUT A PERMIT. THE PRELIMINARY DETERRENCE AMOUNT PUR- SUANT TO THE PENALTY POLICY IS $256,100. THERE ARE SIGNIFICANT LEGAL BARRIERS TO PREVAILING AND OBTAINING THE RELIEF REQUESTED BECAUSE LEDERLE CEASED CON- STRUCTION AFTER RECEIPT OF THE NOTICE OF VIOLATION WITHIN THE 30-DAY PERIOD. THE REGION DOES NOT BELIEVE THIS IS FATAL TO THE LAWSUIT. EPA BELIEVES THAT THIS IS A GOOD CASE TO TEST ITS INTERPRETATION OF THE REGULATIONS. IF EPA IS NOT SUCCESSFUL, THEN EPA IS STATUTORILY PRECLUDED FROM BRINGING AN ACTION FOR THESE OBVIOUS VIOLATIONS. RESPONSE AND INSPECTION: DECEMBER 27, 1989 - LEDERLE RE- SPONSE TO SECTION 114 LETTER. OCT. 3, 1989 - FIRST EPA INSPECTION. JAN 18, 1990 - SECOND EPA INSPECTION.

Defendants (1)

• AMERICAN CYANAMD COMPANYNamed in complaintNamed in settlement

Facilities (3)

• WYETH AYERST PHARMACEUTICALS LEDERLE LABORATORIES

  401 NORTH MIDDLETOWN ROAD, PEARL RIVER, NY, 10965

  Registry ID: 110000323070

• WYETH AYERST PHARMACEUTICALS LEDERLE LABORATORIES

  401 NORTH MIDDLETOWN ROAD, PEARL RIVER, NY, 10965

  Registry ID: 110000323070

• WYETH AYERST PHARMACEUTICALS LEDERLE LABORATORIES

  401 NORTH MIDDLETOWN ROAD, PEARL RIVER, NY, 10965

  Registry ID: 110000323070

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards
• CAA 114 — Record keeping, Inspection, Information Request
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• AMERICAN CYANAMID COMPANYentered 1991-12-16

  Primary law: CAA

  Federal penalty: $625,000

Timeline (7 milestones)

• 1990-03-28Enforcement Action Data Entered
• 1990-03-28Referred To Dept Of Justice
• 1991-10-22Complaint Filed With Court
• 1991-12-16Final Order Lodged
• 1991-12-16Final Order Entered
• 1991-12-16Concluded
• 1995-03-30Enforcement Action Closed