EPA v. KELLOGG USA INC. (KEEBLER COMPANY)

Case summary

Kellogg owns a cereal producing facility in Battle Creek and a snack food producing facility (Keebler) in Grand Rapids, both in Michigan. Kellogg changed operations and/or added equipment at both facilities which resulted in an increase in actual and potential emissions of volatile organic compounds (VOC) and failed to obtain the proper permits from Michigan Dept. of Environmental Quality for the changes. EPA issued Notices of Violation alleging the permitting violations on 1/28/08, 3/26/08, and 8/12/09, and subsequently referred the enforcement case to the Department of Justice, Kellogg on 9/23/2008 and Keebler on 6/30/2010. The allegations against both facilities have been addressed and resolved with a Consent Decree. The Decree requires Kellogg to pay a penalty of $500,000 and to obtain permits from MDEQ for each facility that include lower emission limits for VOC. The new permit limits set lower allowable emission levels for VOC as follows: Battle Creek facility: Bran Coating Line VOC limit from 34 tons per year (tpy) to 12 tpy; DX Line VOC limit from 44 tpy to 24 tpy, for a total reduction in allowable VOCs from the specified lines in Battle Creek of 44 tpy. Grand Rapids facility: Line 4 VOC limit from 20 tpy to 5 tpy; Line 6 VOC limit from 19 tpy to 5 tpy; Line 7 VOC limit from 52 tpy to 25 tpy, for a total reduction in allowable VOCs from the specified lines in Grand Rapids of 56 tons per year. Therefore the total reduction in allowable VOC from this settlement is 100 tpy. *In addition, Kellogg has agreed to a beneficial environmental project consisting of replacement of a once-through water system used for cooling with a closed loop system, resulting in elimination of 850 pounds of R-22 refrigerant, an ozone depleting substance; saving of 3.4 million gallons per year of water; and through reduction of electricity usage, reduction of carbon dioxide, a greenhouse gas, by 617 metric tons, or 1,357,400 pounds, per year.

Defendants (2)

• KELLOGG USA INC.Named in complaintNamed in settlement
• KEEBLER COMPANYNamed in complaintNamed in settlement

Facilities (3)

• KELLANOVA MANUFACTURING LLC

  310 28TH STREET SE, GRAND RAPIDS, MI, 49548

  Registry ID: 110000411590

• KEEBLER COMPANY

  310 28TH ST., GRAND RAPIDS, MI, 49548-1157

  Registry ID: 110000411590

• KELLOGG USA LLC

  425 PORTER STREET, BATTLE CREEK, MI, 49014

  Registry ID: 110043704033

Statutes cited

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

Enforcement conclusions (1)

• KELLOGG USA INC. (KEEBLER COMPANY)entered 2012-12-13

  Primary law: CAA

  Federal penalty: $500,000

Timeline (7 milestones)

• 2010-06-30Referred To Dept Of Justice
• 2010-07-08Enforcement Action Data Entered
• 2012-10-25Final Order Lodged
• 2012-10-25Complaint Filed With Court
• 2012-12-13Final Order Entered
• 2014-03-03Enforcement Action Closed
• 2014-03-03Air Resolved