EPA v. BEAZER HOMES USA, INC. (NATIONAL CASE) (LEAD)

Case summary

BRIEF SUMMARY OF THE MATTER: THE CWA REQUIRES THE OWNER OR OPERATOR OF A CONSTRUCTION SITE TO OBTAIN PERMIT COVERAGE BEGINNING CONSTRUCTION ACTIVITY. EACH STATE WITHIN THE REGION CURRENTLY HAS A CONSTRUCTION GENERAL PERMIT UNDER WHICH PERMITTEES MUST OBTAIN COVERAGE TO CONDUCT CONSTRUCTION ACTIVITIES. THESE STATE GENERAL STORM WATER PERMITS REQUIRE THE OWNER OR OPERATOR TO PREPARE AND IMPLEMENT A STORM WATER POLLUTION PREVENTION PLAN (SWPPP), OR ITS EQUIVALENT, IDENTIFYING BEST MANAGEMENT PRACTICES (BMPs) WHICH, WHEN IMPLEMENTED, WILL REDUCE OR ELIMINATE THE POLLUTANTS IN THE STORM WATER DISCHARGES ASSOCIATED WITH CONSTRUCTION ACTIVITIES. THE ACTUAL VIOLATIONS IDENTIFIED BY THE REGION PURSUANT TO INSPECTIONS AND INFORMATION REQUESTS ARE SITE SPECIFIC, AND INCLUDE THE FOLLOWING: FAILURE TO OBTAIN PERMIT COVERAGE PRIOR TO INITIATING CONSTRUCTION ACTIVITY; FAILURE TO DEVELOP OR IMPLEMENT A SWPPP OR ITS EQUIVALENT; FAILURE TO PREPARE AN ADEQUATE SWPPP; FAILURE TO HAVE A COMPLETE SWPPP ONSITE AT THE TIME OF INSPECTION; FAILURE TO PROPERLY DESIGN, IMPLEMENT AND MAINTAIN ADEQUATE BMPs INCLUDING EROSION CONTROL MEASURES; FAILURE TO CONDUCT ADEQUATE INSPECTIONS OF BMPs; AND THE DISCHARGE OF SEDIMENT INTO WATERS OF THE U.S. NATURE AND NUMBER OF DEFENDANTS: BEAZER IS A DELAWARE CORPORATION AND IS A LEADING DEVELOPER AND BUILDER OF HOMES IN 19 STATES. BEAZER OWNS AND OPERATES APPROX 381 CONSTRUCTION SITES IN REGION 4. BEAZER HOMES USA, INC.; BEAZER HOMES, INC.; BEAZER HOMES CORP.; PHILLIPS BUILDERS, INC.; CROSSMAN COMMUNITIES OF NORTH CAROLINA, INC.; CROSSMAN COMMUNITIES OF TENNESSEE, LLC; CUTTER HOMES, LTD.; PINEHURST BUILDERS, INC.; BRECKENRIDGE PROPERTIES, LLC; WESTVACO DEVELOPMENT CORP.; CORNERSTONE DEVELOPMENT, LLC. NATURE OF RELIEF REQUESTED: THE REFERRAL SEEKS PENALTIES UP TO THE STATUTORY MAXIMUM OF OVER $1.1 BILLION IN ADDITION TO INJUNCTIVE RELIEF TO ALLEVIATE THE IMPACTS OF EXISTING VIOLATIONS AND TO PREVENT FUTURE VIOLATIONS BY DEVELOPMENT OF A CORPORATE-WIDE STRATEGY OF COMPLIANCE WITH ALL STORM WATER REQUIREMENTS. SPECIAL FACTS OR CIRCUMSTANCES: THIS REFERRAL IS PART OF A REGION 4 INITIATIVE TARGETING LARGE RESIDENTIAL DEVELOPERS WITH SIGNIFICANT RATES OF NONCOMPLIANCE INDICATING A LACK OF RESPECT FOR THE STORM WATER REQUIREMENTS, WHICH INCLUDES TWO OTHER CONCURRENT REFERRALS TO DOJ. THE REFERRALS ALSO FOLLOW EPA HEADQUARTERS-INITIATED STORM WATER CASES, AND AIM FOR RELIEF COMPARABLE TO THOSE CASES TO ACHIEVE WIDESPREAD GENERAL DETERRENCE AND COMPLIANCE. 2/10/11 - Beazer Homes USA, Inc., a national residential homebuilder, has agreed today to pay a $925,000 civil penalty to resolve alleged Clean Water Act violations at its construction sites in 21 states. As part of the settlement, Beazer will also implement a company-wide stormwater program to improve compliance with stormwater runoff requirements at current and future construction sites around the country.

Defendants (11)

• BEAZER HOMES USA, INC.Named in complaintNamed in settlement
• BEAZER HOMES, INC.
• BEAZER HOMES CORP.
• PHILLIPS BUILDERS, INC.
• CROSSMAN COMMUNITIES OF NORTH CAROLINA, INC.
• CROSSMAN COMMUNITIES OF TENNESSEE, LLC
• CUTTER HOMES, LTD.
• PINEHURST BUILDERS, INC.
• BRECKENRIDGE PROPERTIES, LLC
• WESTVACO DEVELOPMENT CORP.
• CORNERSTONE DEVELOPMENT, LLC.

Facilities (1)

• BEAZER HOMES USA, INC.

  1000 ABERNATHY ROAD, SUITE 1200, ATLANTA, GA, 30328

  Registry ID: 110043258275

Statutes cited

• CWA 301/402 — NPDES Permit Violations
• CWA 301 — NPDES Discharge without a Permit

Enforcement conclusions (1)

• BEAZER HOMES USA, INC. (NATIONAL CASE) (LEAD) (04-2011-C004)entered 2011-02-10

  Primary law: CWA

  Federal penalty: $468,703 · State/local: $156,715

Timeline (7 milestones)

• 2004-09-28Referred To Dept Of Justice
• 2004-09-30Enforcement Action Data Entered
• 2010-12-02Final Order Lodged
• 2010-12-02Complaint Filed With Court
• 2011-02-10Concluded
• 2011-02-10Final Order Entered
• 2015-11-15Enforcement Action Closed