EPA v. GERDAU MACSTEEL DIV QUANEX

Case summary

Gerdau Specialty Steel, North America(Gerdau) owns and operates a steel mini-mill in Jackson, Michigan. EPA inspectors and consultants hired by Gerdau separately observed electric arc furnace (EAF) emissions to the open, uncontrolled roof monitor of the melt shop. The EPA issued two NOVs in September 2014 and June 2016 alleging violations of the National Emissions Standards for Hazardous Air Pollutants (NESHAP): Area Sources: Electric Arc Furnace Steelmaking Facilities (40 C.F.R. Part 63, Subpart YYYYY), the facility's Title V permit. The violations include opacity exceedances at the facility's melt shop (containing two EAFs)(40 CFR Section 63.10686(c)(2)), failure to conduct operation and maintenance inspections (Title V permit requirement), failure to conduct stack testing (40 CFR Section 63.10686(d)(1)), failure to conduct opacity readings (40 CFR Section 63.10686(d)(2)), and failure to maintain pressure drop (Title V permit requirement). In addition, EPA alleged that Gerdau failed to operate its existing capture and control system in accordance with good air pollution control practices as required in the General Provisions (40 CFR Section 63.10690 and Section 63.6(e)). The main pollutant of concern is particulate matter (PM)emissions from the facility's EAFs and melt shop operations. The parties have reached an agreement in principle on injunctive relief that will resolve the violations cited in the NOVs. The injunctive relief includes: modification of the furnace capture and control system; installation of a new $3.4M baghouse and capture system controlling emissions at the roof monitor; and improved preventative maintenance, inspection, and monitoring procedures and record keeping that complies with the Title V permit and the NESHAP. These measures will reduce draft at the melt shop so that more emissions from the EAFs will be captured by the facility's capture and control system, thus ensuring future compliance with the requirements cited above. Installation of the new baghouse and capture system is expected to be operational by September 2018.

Defendants (1)

• GERDAU MACSTEEL DIV QUANEXNamed in complaintNamed in settlement

Facilities (1)

• GERDAU SPECIAL STEEL NORTH AMERICA - JACKSON MILL

  3100 BROOKLYN RD, JACKSON, MI, 49203

  Registry ID: 110000409843

Statutes cited

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

Enforcement conclusions (1)

• GERDAU MACSTEEL DIV QUANEXentered 2018-10-19

  Primary law: CAA

  Federal penalty: $325,000

Timeline (7 milestones)

• 2015-09-24Referred To Dept Of Justice
• 2015-09-29Enforcement Action Data Entered
• 2018-07-17Complaint Filed With Court
• 2018-07-17Final Order Lodged
• 2018-10-19Final Order Entered
• 2022-10-19Air Resolved
• 2022-10-19Enforcement Action Closed