EPA v. Newport Steel Corporation

Case summary

12/2/03 - COMPLIANCE ORDER ISSUED. VIOLATION 1: NEWPORT APPLIED FOR A SYNTHETIC MINOR PERMIT IN FEBRUARY 1998 FROM THE KENTUCKY DIVISION FOR AIR QUALITY (KDAQ), TO ADD ONE LARGE ELECTRIC ARC FURNACE (EAF) AND TO DECOMMISSION 3 EXISTING EAFs AT THE FACILITY. AS PART OF THE PERMIT APPLICATION PROCESS, NEWPORT SUBMITTED A NETTING EMISSIONS ANALYSIS TO KDAQ ON APRIL 13, 1998, WHICH INDICATED THAT THE NEW EMISSIONS WOULD BE BELOW THE SIGNIFICANT NET EMISSIONS RATES FOR CAA POLLUTANTS AND THUS WOULD NOT TRIGGER PSD REQUIREMENTS. AS A RESULT OF THE PERMIT APPLICATION, KDAQ ISSUED A FEDERALLY ENFORCEABLE SYNTHETIC MINOR OPERATING PERMIT (F-98-014) TO NEWPORT ON JUNE 18, 1998. ON MAY 23, 2000 AND MARCH 8, 2001, EPA REQUESTED INFORMATION FROM NEWPORT PURSUANT TO SECTION 114 OF THE CAA. AS PART OF THE RESPONSE, NEWPORT PROVIDED ACTUAL PRODUCTION RATES AT THE FACILITY FOR THE TWO YEARS PRIOR TO TEH ADDITION OF THE NEW EAF. EPA DETERMINED THAT NEWPORT FAILED TO USE THE ACTUAL PRODUCTION RATES IN ITS NETTING EMISSIONS ANALYSIS. EPA RECALCULATED THE NETTING EMISSIONS ANALYSIS USING NEWPORT'S ACTUAL PRODUCTION RATES, AND DETERMINED THAT NEWPORT'S MODIFICATION RESULTED IN A SIGNIFICANT NET INCREASE IN EMISSIONS FOR NITROGEN OXODES, CARBON MONOXIDE, PARTICULATE MATTER, VOLATILE ORGANIC COMPOUNDS AND LEAD AT ITS FACILITY. THEREFORE, NEWPORT VIOLATED SECTION 165(A) OF THE CAA FOR FAILING TO SUBMIT A CORRECT PERMIT APPLICATION AND FOR OPERATING WITHOUT A MAJOR SOURCE PERMIT FROM JUNE 1998 UNTIL MARCH 30, 2001, AT ITS FACILITY. VIOLATION 2: SECTION B OF THE SYNTHETIC MINOR OPERATING PERMIT, 401 KAR 50:015 AND 40 CFR PART 60, SUBPART AAa REQUIRE NEWPORT TO TAKE DAILY OPACITY READINGS IN ACCORDANCE WITH METHOD 9 AT ITS BRANDT BAGHOUSE. DURING AN INSPECTION CONDUCTED BY EPA FROM APRIL 11 THROUGH 13, 2002, IT WAS DISCOVERED THAT DAILY OPACITY READINGS WERE NOT TAKEN IN ACCORDANCE WITH METHOD 9 AT THE BRANDT BAGHOUSE FROM SEPTEMBER 1, 1999 TO MARCH 31, 2000. THE INSPECTION ALSO REVEALED THAT NEWPORT DID NOT TAKE ANY DAILY READINGS FOR 38 DAYS. THEREFORE, NEWPORT VIOLATED SECTION B OF THE SYNTHETIC MINOR OPERATING PERMIT, 401 KAR 50:015 AND 40 CFR PART 60, SUBPART AAa. VIOLATION 3: SECTION B OF THE SYNTHETIC MINOR OPERATING PERMIT AND 401 KAR 50:035 REQUIRE NEWPORT TO TAKE MONTHLY OPACITY READINGS IN ACCORDANCE WITH METHOD 9 AT ITS WHEELABRATOR BAGHOUSE. DURING AN INSPECTION CONDUCTED BY EPA FROM APRIL 11 THROUGH 13, 2000, IT WAS DISCOVERED THAT MONTHLY OPACITY READINGS WERE NOT TAKEN IN ACCORDANCE WITH METHOD 9 AT THE WHEELABRATOR BAGHOUSE FROM FEBRUARY 1999 TO APRIL 2000. THEREFORE, NEWPORT VIOLATED SECTION B OF THE SYNTHETIC MINOR OPERATING PERMIT AND 401 KAR 50:035. VIOLATION 4: SECTION E OF THE SYNTHETIC MINOR OPERATING PERMIT AND 401 KAR 50:055 REQUIRE NEWPORT TO MAINTAIN AND OPERATE THE FACILITY IN A MANNER CONSISTENT WITH GOOD AIR POLLUTION CONTROL PRACTICES FOR MINIMIZING EMISSIONS. DURING AN INSPECTION CONDUCTED BY EPA FROM APRIL 11 THROUGH APRIL 13, 2000, IT WAS DISCOVERED THAT EMISSIONS WERE LEAKING FROM GAPS AND HOLES ON THE EAST AND WEST SIDES OF THE BUILDING THAT HOUSES THE LADLE METALLURGICAL FURNACE (LMF), WHERE THE WALL MEETS THE ROOF. THEREFORE, NEWPORT VIOLATED SECTION E OF THE SYNTHETIC MINOR OPERATING PERMIT AND 401 KAR 50:055. ORDER REQUIRES: WITHIN 90 DAYS OF THE EFFECTIVE DATE OF AO, NEWPORT SHALL EITHER NOTIFY KDAQ AND EPA THAT IT IS PERMANENTLY SHUTTING DOWN THE ELECTRIC ARC FURNACE, OR SHALL APPLY TO KDAQ, AND PROVIDE A COPY TO EPA, FOR A FEDERALLY ENFORCEABLE OPERATING PERMIT TO INCORPORATE PRODUCTION AND EMISSION LIMITS THAT WILL PROHIBIT A SIGNIFICANT NET INCREASE IN EMISSIONS AS DEFINED IN THE PSD REQUIREMENTS FOR ALL CRITERIA POLLUTANTS AS A RESULT OF THE NEW ELECTRIC ARC FURNACE. PAST ACTUAL EMISSIONS USED FOR THE NETTING EMISSIONS ANALYSIS SHALL BE CALCULATED USING THE DEFINITION OF ACTUAL EMISSIONS FOUND AT 40 CFR SECTION 55.21(b)(21) AND BY USING THE DATA THAT WAS PROVIDED TO EPA.

Defendants (1)

• NEWPORT STEEL CORPORATIONNamed in settlement

Facilities (2)

• IPSCO TUBULARS KENTUCKY INC

  100 STEEL PLANT RD, WILDER, KY, 41071

  Registry ID: 110002058497

• IPSCO TUBULARS KENTUCKY INC

  100 STEEL PLANT RD, WILDER, KY, 41071

  Registry ID: 110002058497

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• NEWPORT STEEL CORPORATION (COMPLIANCE ORDER)entered 2003-12-04

  Primary law: CAA

Timeline (2 milestones)

• 2003-12-04Final Order Issued
• 2003-12-09Enforcement Action Data Entered