EPA v. AMERICAN ZINC AKA HORSEHEAD RESOURCE DEVELOPMENT - CONSENT DECREE

Case summary

AZR owns and operates an electric arc furnace dust processing facility in Chicago, IL. The Facility was previously owned by Horsehead Corporation and sold to AZR in 2017. On April 11, 2014, EPA issued a Notice and Finding of Violation to Horsehead alleging that it violated particulate matter emission limits established in accordance with the Illinois SIP and the facility's Title V and Prevention of Significant Deterioration Permits, failed to comply with bag collector operating, maintenance, and recordkeeping requirements in the facility?s Title V Permit, failed to include sources of fugitive emissions in the facility's Title V Permit, and failed to develop a fugitive dust plan and PM10 contingency plan to control fugitive emissions, as required by the Title V Permit. Specifically, Region 5 alleged PM emission limit, bag collector operating and maintenance, and recordkeeping violations after inspecting the facility and requesting information from AZR. In inspections on August 1, 2012 and March 31, 2014, EPA observed particulate emissions and fugitive dust from product recovery operations and two buildings required to be controlled by bag collectors maintaining airflow necessary to capture particulate. From information submitted per a Section 114 information request issued on November 14, 2012, EPA identified exceedances of AZR's PSD and Title V PM limits at 14 bag collectors due to AZR not operating each bag collector at the required airflow rate. To resolve IL SIP and PSD PM emission limit violations at several emission units throughout the facility, AZR contracted ventilation experts to assess existing controls, design improved capture systems, and appropriately size dust collectors controlling PM. The estimated cost of injunctive relief is $8 million. The improvements at AZR's facility will bring the facility back into compliance with its permitted PM and fugitive dust limits. AZR will also implement an operation and maintenance manual and fugitive dust plan as required by its permit and install parametric monitoring systems at new and modified dust collectors. These measures will ensure appropriate operation and maintenance of the improved capture and collection systems and ensure compliance moving forward. EPA is not seeking SEPs as part of this settlement. AZR has agreed to a penalty of $1,054,000. The penalty was calculated in accordance with the Clean Air Act Penalty Policy. The BEN component is estimated at $555,000. On February 2, 2016, Horsehead Corporation filed a petition for relief under Chapter 11 of the Bankruptcy Code, which commenced proceedings in the U.S. Bankruptcy Court for the District of Delaware. U.S. EPA identified alleged CAA violations at AZR's Facility that occurred before and after the commencement of the Horsehead Bankruptcy Case. AZR shall pay to the United States the sum of $400,000 as a civil penalty, for the violations that occurred after the date of bankruptcy filing. AZR shall pay an additional reduced portion of the $654,000 civil penalty for the Complaint's alleged violations at the Facility before the commencement of the Horsehead Bankruptcy. In total, AZR will pay $530,000 after bankruptcy reductions.

Defendants (1)

• HORSEHEAD RESOURCE DEVELOPMENT CO INCNamed in complaintNamed in settlement

Facilities (9)

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

• BEFESA ZINC US INC

  2701 E 114TH ST, CHICAGO, IL, 60617-6449

  Registry ID: 110000434352

Statutes cited

• CAA TITLE5 — Title V Permits
• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• HORSEHEAD RESOURCE DEVELOPMENT CO INCentered 2020-07-13

  Primary law: CAA

  Federal penalty: $1,054,000

Timeline (6 milestones)

• 2016-08-03Referred To Dept Of Justice
• 2016-08-17Enforcement Action Data Entered
• 2020-06-17Complaint Filed With Court
• 2020-07-13Final Order Entered
• 2020-07-13Final Order Lodged
• 2021-05-12Demand for Stipulated Penalties