EPA v. EARTHGRAINS COMPANY, THE (11)

Case summary

The Department of Justice and the Environmental Protection Agency today announced a settlement that resolves significant ozone-depletion violations that occurred in the United States. With this settlement, the United States has taken a major step in protecting the ozone layer worldwide by eliminating from the earth�s atmosphere harmful refrigerants, such as chlorofluorocarbons (CFCs) that leak from industrial appliances and have been a major cause of the depletion of the earth�s ozone layer in recent years. The ozone layer protects humans and animals from damaging ultraviolet (UV) rays. Excessive exposure to UV radiation can cause cataracts, skin cancer, and other ailments. The lodging of the consent decree settles violations of Title VI of the Clean Air Act by Earthgrains Baking Companies, Metz Baking Company, Earthgrains Refrigerated Dough Products, L.P., and Coopersmith, Inc. (collectively Earthgrains). Sara Lee Corporation purchased these companies, which were incorporated into the Sara Lee Bakery Group, during the government�s investigation. At the time of the purchase, Earthgrains was the second largest bakery company in the nation. The settlement requires Earthgrains to pay a $5.25 million civil penalty for having committed the largest ever corporate-wide violations of stratospheric ozone protection regulations. In addition, Earthgrains must convert all of its industrial process refrigeration appliances to refrigerant systems that do not deplete the ozone layer. EPA estimates that the injunctive relief will cost in excess of $5 million dollars. The United States� complaint alleges that Earthgrains� large industrial process appliances at 57 of its 67 facilities leaked refrigerants in excess of the 35% annualized leak rate permitted by the relevant regulation, and that Earthgrains failed to make prompt, proper repairs. More than 300 large refrigerant-containing appliances, several containing 1000 pounds or more of refrigerant each, were involved in the investigation. �This case addresses pollution that has a global impact and displays the Department�s aggressive pursuit of those who commit illegal acts that degrade the ozone layer,� said Assistant Attorney General Thomas L. Sansonetti. �This settlement demonstrates our unwavering commitment to hold accountable polluters who gain a competitive advantage when they shirk their responsibility to comply with laws that protect public health.� �Such systematic, corporate-wide violations of the Clean Air Act pose serious threats to both human health and the environment and will not be tolerated,� said EPA�s John Peter Suarez, the Assistant Administrator for Enforcement and Compliance Assurance. �This settlement is evidence to the fact that such widespread patterns of illegal conduct that degrade the ozone layer will be met with vigorous enforcement by the United States.� This case follows other precedent-setting settlements with violators of the stratospheric ozone protection provisions of the Clean Air Act, and is the second corporate-wide case against an industrial baker. In the fall of 2000, Meyer�s Bakeries, Inc. settled its corporate-wide violations by paying a civil penalty of $3.5 million and converting all its appliances to non-ozone-depleting refrigerants. In the summer of 2001, Air Liquide, a producer of industrial gases, settled its corporate-wide violations of these leak detection and repair requirements by paying a $4.5 million penalty and spending $500,000 on environmentally beneficial projects, in addition to converting its refrigerant systems to non-ozone-depleting systems.

Defendants (1)

• EARTHGRAINS COMPANY, THENamed in complaintNamed in settlement

Facilities (12)

• EARTHGRAINS BAKING COMPANIES INC

  435 34TH AVE, ROCK ISLAND, IL, 61201

  Registry ID: 110002353836

• EARTHGRAIN BAKING COMPANIES, INC.

  526 GREEN STREET, ROCKFORD, IL, 61102-2218

• BIMBO BAKERIES USA, INC.

  210 28TH STREET SE, GRAND RAPIDS, MI, 49548

  Registry ID: 110012601185

• METZ BAKING CO

  2883 S HILLOCK AVE, CHICAGO, IL, 60608

  Registry ID: 110001293154

• EARTHGRAINS BAKING COMPANY (METZ)

  918 WEST SOMERS STREET, MILWAUKEE, WI, 53205-2339

  Registry ID: 110012708472

• OVEN FRESH GROCERIES BAKING

  210 28TH ST SE, GRAND RAPIDS, MI, 49548-1156

  Registry ID: 110012601185

• EARTHGRAINS BAKERY

  334 5TH AVE S, LA CROSSE, WI, 546014002

  Registry ID: 110071752871

• EARTHGRAINS BAKERY

  320 PUTNAM STREET, EAU CLAIRE, WI, 54703-3729

  Registry ID: 110010502553

• TASTEE BAKERY GROUP INC (EARTHGRAINS)

  855 W. WASHINGTON STREET, MARQUETTE, MI, 49855

  Registry ID: 110045487059

• EARTHGRAINS BAKERY

  3401 E WASHINGTON AVE, MADISON, WI, 537044113

  Registry ID: 110009516470

• SARA LEE BAKERY GROUP, INC (EARTHGRAINS)

  15135 HAMILTON AVENUE, HIGHLAND PARK, MI, 48203

  Registry ID: 110015713771

• BIMBO BAKERIES USA, INC.

  2745 LONG LAKE RD, ROSEVILLE, MN, 551131131

  Registry ID: 110001447266

Statutes cited

• CAA 112 — Hazardous Air Pollutants

Enforcement conclusions (1)

• EARTHGRAINS COMPANY, THE (11)entered 2003-09-17

  Primary law: CAA

  Federal penalty: $1,013,158

Timeline (7 milestones)

• 2001-05-23Referred To Dept Of Justice
• 2001-06-07Enforcement Action Data Entered
• 2001-07-26Supplemental Referral-Adding parties, counts
• 2001-09-27Supplemental Referral-Adding parties, counts
• 2003-07-31Complaint Filed With Court
• 2003-07-31Final Order Lodged
• 2003-09-17Final Order Entered