EPA v. ESSROC MATERIALS INC. (NATIONAL CASE)

Case summary

CONSENT DECREE Under this Decree, Essroc will install and continuously operate a selective non-catalytic reduction system (SNCR) for controlling NOx at five kilns, including 2 at the Speed facility, and meet emission rates that are akin to Best Available Control Technology at each kiln. For controlling NOx, Essroc will also demonstrate a selective catalytic reduction system (SCR) at the Logansport facility. If the SCRs are successful, these will be the first SCRs on these types of kilns (wet process kilns) anywhere in the world. If they are not successful, the proposed Decree requires that Essroc install SNCR at each of the Logansport kilns. For controlling SO2, Essroc will install a Dry Scrubber/Lime Injection system at seven kilns, including four at the Indiana facilities, and meet BACT- like emission rates at each kiln. The remaining two kilns in the proposed settlement will be permanently retired. EMISSION REDUCTIONS AND INJUNCTIVE RELIEF EXPENDITURE Upon full implementation, the plants? SO2 and NOx emissions will be reduced by over 8,000 tons per year (TPY). With respect to NOx emissions, contributions from the Speed and Logansport plant will be reduced by at least 1,204 TPY. SO2 will be reduced from these plants by at least 2,438 TPY. These reductions secure significant human health and environmental benefits. Essroc will install SCR and scrubber systems at Kilns 1 and 2 of the Logansport facility, no later than 2015, at a cost of thirteen million dollars. Essroc will also install SNCR and lime injected dry scrubber systems at Kilns 1 and 2 of the Speed facility, no later than 2013, at a cost of eight million dollars. Additionally, Essroc will spend approximately $754,000 in mitigation dollars to replace old engines in several off-road vehicles at its plant sites, including one quarry truck at the Speed plant (cost of $150,000), resulting in an approximate 76% reduction in NOx. Estimated NOx reductions for the quarry truck at the Speed plant are 5 tons/year. CIVIL PENALTY The penalty in this case was determined by using a matrix developed for global settlements in the cement industry. The cement global penalty matrix for the Essroc settlement was calculated to be $1.54 million and Essroc has agreed to pay a $1.7 million penalty. Of the total civil penalty amount, 50%, or $850,000, will be paid to the United States. The other half of the civil penalty will be divided between the state agencies signing the Decree. The states have decided to split their share based on the number of plants in their respective states; therefore, the majority will go to Indiana and Pennsylvania, both of which have also been the most active participants in the settlement negotiations with Essroc. OTHER PROVISIONS The Decree also resolves Essroc?s liability for past violations of PSD, NSR, and Title V alleged in the complaint. Once Essroc has satisfied all of its obligations under the Decree and maintained satisfactory compliance for three years at all facilities, it may request termination. The Decree also contains customary language regarding force majeure, dispute resolution, information collection and retention, among other standard provisions.

Defendants (2)

• ESSROC MATERIALS INC.Named in complaintNamed in settlement
• LEHIGH ESSROCNamed in complaintNamed in settlement

Facilities (2)

• HEIDELBERG MATERIALS US CEMENT LLC

  3084 W CR 225 S, LOGANSPORT, IN, 46947-8476

  Registry ID: 110000401459

• HEIDELBERG MATERIALS US CEMENT LLC

  301 US HWY 31, SELLERSBURG, IN, 47172-1300

  Registry ID: 110000592626

Statutes cited

• CAA 112D — MACT Standards
• CAA 502 — Operating Permits (Title V)
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (2)

• ESSROC MATERIALS INC. (NC)(NLP)entered 2012-02-16

  Primary law: CAA

  Federal penalty: $219,130 · State/local: $283,333

• ESSROC MATERIALS INC. (NATIONAL CASE)(NLP)entered 2019-12-05

  Primary law: CAA

  Federal penalty: $407,507 · State/local: $200,712

Timeline (5 milestones)

• 2009-09-24Referred To Dept Of Justice
• 2009-09-28Enforcement Action Data Entered
• 2011-12-29Complaint Filed With Court
• 2019-12-05Final Order Entered
• 2019-12-05Final Order Lodged