EPA v. Akzo Nobel Coatings, Inc.

Case summary

Late Reporter Initiative - This is a consolidated action pursuant to our Consolidated Rules of Practice (40 C.F.R. �22.18(b)(2) and (3)), which provide that a proceeding may be simultaneously commenced and concluded by the issuance of a Consent Agreement and Final Order when the parties agree to settle one or more causes of action before the filing of an Administrative Complaint. We intend to settle the case in this matter. A review of the Toxic Release Inventory Envirofacts Database indicated that Akzo Nobel Coatings Inc. (Akzo) voluntarily submitted Form R reports to the EPA for several Section 313 chemicals for reporting year 2000 on January 7, 2002. The facility was contacted by EPA on July 22, 2003 and was informed that they were in the process of shutting down. An information request letter was faxed and mailed to the facility on July 22, 2003 and on August 7, 2003, EPA conducted an inspection at the facility. As a result of the inspection, EPA representatives determined that Akzo had failed to submit to the Administrator and to the State of New Jersey complete and correct Form R reports for reporting year 2000 and 2001. The reports were due July 1, 2001 and 2002. The Form R reports for 2000 were submitted by the facility on January 7, 2002, 189 days late and the 2001 Form R reports were submitted by the facility on July 31, 2003, 394 days late. For reporting year 2000, the facility filed late Form R reports for methanol, naphthalene, xylene, ethyl benzene, antimony, 1,2,4-trimethyl benzene, n-butyl alcohol, methyl isobutyl ketone, toluene, n-hexane, methyl ethyl ketone, nickel, and sec-butyl alcohol. For reporting year 2001, the facility filed late Form R reports for methanol, xylene, ethyl benzene, antimony, 1,2,4-trimethyl benzene, n-butyl alcohol, methyl isobutyl ketone, toluene, methyl ethyl ketone, nickel, sec-butyl alcohol and lead. Under the directive of EPA HQ, no penalty was assessed for lead for calendar year 2001. In calendar year 2001, a new rule lowered the annual reporting threshold for lead to 100 pounds, EPA HQ did not want the regions to take enforcement action for the first year under the new regulation. These failures to submit Form R reports, in a timely manner, constitute violations of Section 313 of EPCRA, 42 U.S.C. � 11023, and 40 C.F.R � 372.30. The amount of the penalty was initially calculated using the ERP for Section 313 of EPCRA issued by the USEPA Office of Compliance Monitoring, Office of Pesticides and Toxic Substances, on August 10, 1992. If we issued an Administrative Complaint the proposed penalty would be $195,130. EPA and Akzo agree that settling this matter by entering into this Consent Agreement and Final Order pursuant to 40 C.F.R. � 22.13(b) and 40 C.F.R. � 22.18(b)(2) and (3), is an appropriate means of resolving this case without further litigation. To that end, the parties conducted informal settlement discussions by telephone and electronic mail on September 8, 2003 and October 7, 2003 between Mr. Ron Almquist, Manufacturing Manager and Ms. Aarti Reddy of the Pesticides and Toxic Substances Branch. A 50% reduction was allowed for the voluntary self-disclosure. Due to Respondent's willingness to settle this matter in an expeditious manner without the issuance of a formal administrative complaint, an additional 10% reduction was allowed under the as justice may require portion of the ERP, in consideration of the savings to the Agency in time and the costs of litigation. A final 15% reduction was allowed under the �as justice may require� portion of the ERP in consideration of Region 2's late reporter initiative to expeditiously address the nearly 800 late Form R reports filed in reporting years 1997, 1998, 1999 and 2000 by facilities in Region 2. This 75% reduction would bring the new proposed penalty to $48,783. Akzo agreed to pay $48,783. This penalty was reduced in accordance with the Enforcement Response Policy for Sect

Defendants (1)

• Akzo Nobel Coatings Inc.Named in complaintNamed in settlement

Facilities (1)

• AKZO NOBEL COATINGS INC

  100 BELMONT DR, FRANKLIN TWP, NJ, 08873-1204

  Registry ID: 110030525581

Statutes cited

• EPCRA 313 — Toxic Chemical Release Reporting (TRI)

Enforcement conclusions (1)

• Akzo Nobel Coatings, Inc.entered 2003-11-03

  Primary law: EPCRA

  Federal penalty: $48,783

Timeline (4 milestones)

• 2003-11-03Enforcement Action Closed
• 2003-11-03Complaint Filed/Proposed Order
• 2003-11-03Final Order Issued
• 2003-11-13Enforcement Action Data Entered