EPA v. HYDRITE CHEMICAL

Case summary

Hydrite owns and operates a chemical blending and manufacturing facility in Cottage Grove, Wisconsin. The site is also a RCRA Part B treatment, storage, and disposal facility that manages and processes spent solvents from other companies. In June 2017, Region 5 issued a Notice and Finding of Violation (NOV/FOV) to Hydrite following an inspection of the facility on April 3-6, 2017. In the NOV/FOV, Region 5 alleged Hydrite failed to include hazardous air pollutants (HAP) fugitive emissions from sources, including leaking fugitive emission equipment, storage tank venting, open drums, and truck loading operations, in its emissions calculations. Therefore, Hydrite has been underestimating its HAP fugitive emissions, and has been a major source of HAP emissions, subject to requirements in the NESHAPs for Miscellaneous Organic Manufacturing (40 C.F.R. Part 63, Subpart FFFF, or MON), and Organic Liquid Distribution (40 C.F.R. Part 63, Subpart EEEE, or OLD). Prior to the initial compliance date of the MON, Hydrite applied for and received synthetic minor limits in its operation permit and was no longer considered a major source of HAP with respect to 40 C.F.R. Part 63 standards. In April 2017, Region 5 performed an LDAR-focused inspection at Hydrite, and issued an NOV/FOV in June 2017, finding Hydrite has been underestimating its HAP fugitive emissions, and has been a major source of HAP emissions under the MON as well as the OLD. Region 5 followed up with another site visit in April 2019. Region 5 confirmed Hydrite is not properly conducting Method 21 monitoring by observing Hydrite's long-term LDAR contractor during a periodic monitoring event. Additionally, during both inspections, Region 5 observed leaking manways and agitators at tanks in off-site waste service subject to the Off-site Waste and Recovery Operations NESHAP (40 C.F.R. Part 63, Subpart DD). Under EPA's January 2018 memorandum clarifying EPA's once in always in policy for the classification of major sources of HAP, and EPA's proposed ?Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act? rulemaking, Region 5 will not require Hydrite to comply with major source MON and OLD NESHAPs if Hydrite ensures that HAP emissions remain below the major source threshold. To ensure compliance, Hydrite has agreed to the following: apply for a permit to the Wisconsin Department of Natural Resources (WDNR) that limits emissions to minor source levels; conduct a third party LDAR audit; develop and implement procedures to ensure compliance; conduct annual (or more stringent, if required by other applicable state or local regulations) leak detection of equipment in HAP service, using Method 21; timely repair valves, connectors, manways, pressure-relief devices, pumps, agitators, and other fugitive emissions equipment that contains any HAP; and ensure all HAP emissions, both point source and fugitive, are included in the facility's emissions calculations. Hydrite has agreed to incorporate these measures into its Title V permit, and to comply with the permitting requirements in the final Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act rulemaking. Additionally, Hydrite has already replaced leaking manways and pressure relief devices at NESHAP Subpart DD affected tanks observed leaking during Region 5's April 2017 inspection. Hydrite has also decided to perform the first LDAR audit this October, prior to finalizing the settlement. Region 5 calculated an initial proposed penalty of approximately $820,000. During negotiations, Region 5 reduced the penalty for cooperation and litigation risk to $480,500 which Hydrite has agreed to pay. The BEN component for the violations is estimated to be $42,000.

Defendants (1)

• HYDRITE CHEMICALNamed in complaintNamed in settlement

Facilities (1)

• HYDRITE CHEMICAL CO.

  114 N MAIN ST, COTTAGE GROVE, WI, 535279701

  Registry ID: 110000419609

Statutes cited

• CAA 112D — MACT Standards

Enforcement conclusions (1)

• HYDRITE CHEMICALentered 2021-01-22

  Primary law: CAA

  Federal penalty: $480,500

Timeline (5 milestones)

• 2019-09-23Referred To Dept Of Justice
• 2019-09-25Enforcement Action Data Entered
• 2020-10-15Complaint Filed With Court
• 2020-10-15Final Order Lodged
• 2021-01-22Final Order Entered