EPA v. BUNGE MILLING

Case summary

On January 16, 2007, the United States District Court for the Central District of Illinois entered a Consent Decree between the United States, eight States, and Bunge North America, Inc., Bunge North America (East), L.L.C., Bunge North America (OPD West), Inc., and Bunge Milling, Inc., (collectively, “Bunge”) that resolves violations of the Clean Air Act, certain State violations and reporting violations. Each of the eight States (Louisiana, Indiana, Illinois, Kansas, Ohio, Mississippi, Iowa and Alabama) in which Bunge operates a plant is a Plaintiff-Intervenor and a signatory to the Consent Decree. On October 26, 2006, the United States simultaneously filed a Complaint and lodged a Consent Decree with Bunge. Regions 4, 5, 6 and 7 signed the Consent Decree. We received no comments during the public comment period. Upon entry of the Consent Decree, both State and Federal violations related to Bunge’s eleven oilseed processing plants and one corn germ extraction plant are resolved by the joint Consent Decree. The resulting settlement addresses volatile organic compounds (VOCs), including the hazardous air pollutant n-hexane, carbon monoxide (CO), oxides of nitrogen (NOx) and sulfur dioxide (SO2), at all twelve of Bunge’s plants in eight states. Eleven of these plants produce products from soybeans, including vegetable oil and meal that is used as animal feed. The other plant produces the same type of products, but from corn germ. Under the settlement, Bunge will implement environmental improvements at each of its plants that will result in a reduction of more than 2,200 tons of air pollution a year, as follows: reducing emissions of VOCs, including n-hexane, which is a listed hazardous air pollutant, by 1,122 tons per year (tpy); and reducing emissions of SO2 by 576 tpy; NOx by 278 tpy; and PM by 258 tpy. These reductions will result from using engineering approaches and installation of new equipment at all twelve plants, as well as piloting an innovative technology at Bunge’s Cairo, Illinois coal boiler to reduce SO2 and NOx emissions. In addition, Bunge’s oilseed extraction plants are taking industry-leading solvent loss ratios for Conventional Oilseed extraction on a schedule that will put them ahead of the oilseed plants addressed in the settlements with Archer Daniels Midland and Cargill, Inc. Finally, Bunge will engage in corrective permitting to ensure that all of its permits are reflective of these new limits. Bunge has estimated that it will spend approximately $12 million in capital expenditures to achieve these emission reductions. The Consent Decree requires Bunge to pay civil penalties of $625,000, with $361,000 of that amount to be paid as a federal penalty, and the remaining $264,000 to be divided on a per plant basis among the States. The civil penalties will be paid in full within 30 days of entry of the Consent Decree. In addition, the Consent Decree requires Bunge to expend approximately $1,250,000 to implement a number of State supplemental environmental projects in each of the eight States in which it operates.

Defendants (1)

• BUNGE MILLINGNamed in complaint

Facilities (1)

• GRAIN CRAFT CORN LLC

  321 E NORTH ST, DANVILLE, IL, 61832-5818

  Registry ID: 110041189923

Statutes cited

• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 502 — Operating Permits (Title V)
• CAA 111 — New Source Performance Standards
• CAA PARTC — Prevention of Significant Deterioration of Air Quality

Timeline (4 milestones)

• 2002-09-30Referred To Dept Of Justice
• 2002-10-23Enforcement Action Data Entered
• 2006-10-26Enforcement Action Closed
• 2006-10-26Complaint Filed With Court