EPA v. BAYOU STEEL

Case summary

NATURE OF THE CASE BAYOU STEEL CORPORATION (OF LAPLACE) OPERATES A STEEL MANUFACTURING AND FORMING FACILITY IN ST. JOHN THE BAPTIST PARISH, LOUISIANA. PROCESS UNITS INCLUDE TWO ELECTRICAL ARC FURNACES, TWO CONTINUOUS CASTING UNITS, AND HOT ROLLING MILL EQUIPMENT. EMISSIONS FROM THE FACILITY ARE SUBJECT TO NEW SOURCE PERFORMANCE STANDARDS (NSPS) AND PERMIT PSD-LA-066, ISSUED TO BAYOU STEEL ON MARCH 30, 1978. CAUSE OF ACTION BAYOU STEEL BEGAN OPERATION IN 1981 WITH A FACILITY BASED ON A GERMAN DESIGN. THE FACILITY SHOULD HAVE BEEN ABLE TO MEET THE OPACITY LIMITS OF NSPS AS WELL AS MORE STRINGENT BACT VISIBLE EMISSION LIMITS ON THE PSD PERMIT. HOWEVER, THE SOURCE IS EXPERIENCING OPACITY VIOLATIONS, APPARENTLY DUE TO MISDESIGN OF THE SECONDARY CONTROL SYSTEM. BAYOU STEEL COLLECTS EMIISIONS FROM CHARGING AND TAPPING OPERATIONS IN CANOPY HOODS OVER EACH FURNACE, RATHER THAN VENTING EMISSIONS DIRECTLY INTO THE ATMOSPHERE. THE HOODS VENT TO SIX BAGHOUSES, KNOWN AS STUB STACKS, LOCATED ON THE ROOF OF THE BUILDING. APPARENTLY, HEAT FROM THE CHARGES/TAPS HAD NOT BEEN FULLY EVALUATED PRIOR TO DESIGN. SPARKS AND THE COMPANY HAS EXPRESSED CONCERN THAT AN OPEN ENFORCEMENT HEAT SPIKES BURN THE BAGS, DECREASING THE EFFICIENCY OF THE BAGHOUSE. HEAT SPIKES AT THE ENTRANCE OF THE BAGHOUSE REACH 1000 DEGREES F. NSPS LIMITS OPACITY TO 20% DURING CHARGING OPERATIONS AND 40% DURING TAPPING OPERATIONS; PSD LIMITS OPACITY TO 3% DURING THESE OPERATIONS. DURING A FEBRUARY 23, 1983 INSPECTION, VISIBLE EMISSIONS FROM TWO OF THE STUB STACKS DURING CHARGING RANGED FROM 9.6 TO 45% OPACITY. EMMISIONS DURING TAPPING RANGED FROM 16.61% TO 25.6%. THERE WERE ALSO OPACITY VIOLATIONS AT OTHER TIMES. THE TECHNICAL AND ADMINISTRATIVE PORTIONS OF THE PSD PROGRAM HAVE BEEN DELEGATED TO THE STATE OF LOUISIANA. BAYOU STEEL HAS REQUESTED A PERMIT MODIFICATION TO CONFORM THE PSD LIMITS TO THE HIGHER NSPS LIMITS. HOWEVER, THE 3% LIMIT WAS DETERMINED TO BE A BACT, AND OTHER NEW STEEL PLANTS ARE MEETING IT. IN ADDITION, MODIFYING THE PERMIT WOULD NOT ELIMINATE ALL VIOLATIONS, AND WOULD NOT CORRECT MISDESIGN OF THE SECONDARY CONTROL SYSTEM. JUSTIFICATION ALTHOUGH BAYOU STEEL HAS APPARENTLY NOT EXHIBITED BAD FAITH, THE COMPANY DID NOT TAKE MEASURES TO CORRECT ITS PROBLEMS UNTIL AFTER EPA ISSUED A NOTICE OF VIOLATION (NOV) ON DECEMBER 10, 1982. BAYOU STEEL PROPOSED A COMPLIANCE SCHEDUALE ON JANUARY 21,1983 LEADING TO COMPLIANCE BY MID-1986. THE COMPANY HAS INDICATED IT MAY BE ABLE TO SHORTEN THE TIMEFRAME. CIVIL ACTION IS REQUESTED SO THAT EPA CAN PUT BAYOU STEEL ON AN ENFORCEABLE COMPLIANCE SCHEDUALE. AN ADMINISTRATIVE ORDER IS NOT APPROPRIATE BECAUSE OF THE LENGTH OF THE SCHEDUALE. STRATEGY IF REGION VI FILED A CIVIL ACTION IN THE EASTERN DIST OF LOUISIANA FOR INJUNCTIVE RELIEF AND A SMALL CIVIL PENALTY. ACTION COULD ADVERSELY AFFECT ITS POSITION WITH ITS LENDERS. NEGOTIAITON OF A CONSENT DECREE TO FILED AT THE SAME TIME AS THE COMPLAINT MAY THEREFORE BE APPROPRIATE.

Defendants (1)

• BAYOU STEELNamed in complaintNamed in settlement

Facilities (6)

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

• BAYOU STEEL CORPORATION

  138 HWY. 3217, LA PLACE, LA, 70068

  Registry ID: 110041192410

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards

Enforcement conclusions (1)

• BAYOU STEEL CORPentered 1984-05-16

  Primary law: CAA

  Federal penalty: $35,000

Timeline (8 milestones)

• 1983-03-31Referred To Headquarters
• 1983-05-09Referred To Dept Of Justice
• 1983-09-01Referred TO U.S. Attorney
• 1983-09-30Complaint Filed With Court
• 1984-05-16Final Order Lodged
• 1984-05-16Final Order Entered
• 1984-05-16Concluded
• 1996-05-10Enforcement Action Closed