EPA v. MERCK AND COMPANY, INC.

Case summary

KELCO, A DIVISION OF MERCK & CO., INC., OWNS AND OPERATES A KELP PROCESSING AND BIOGUM MANUFACTURING FACILITY IN SAN DIEGO, CALIFORNIA. THE FACILITY, WHICH CONSISTS OF AN ALGINIC FIBER PLANT, 3 COMMERCIAL PLANTS, 2 PILOT PLANTS, AND A COGENERATION PLANT, MANUFACTURES VARIOUS ALGIN PRODUCTS BY PROCESSING SEA KELP HARVESTED OFF THE CALIFORNIA AND MEXICO COASTS, AND PRODUCES SEVERAL BIOGUMS BY A PROCESS OF BIOPOLYMERIZATION. ISOPROPYL ALCOHOL, PROPYLENE OXIDE, AND PROPYLENE GLYCOL, WHICH ARE VOLATILE ORGANIC COMPOUNDS AND PRECURSORS TO GROUND LEVEL OZONE FORMATION, ARE EMITTED TO THE ATMOSPHERE DURING THE MANUFACTURING PROCESS. KELCO'S FACILITY IS THE LARGEST STATIONARY SOURCE OF VOC EMISSIONS IN SAN DIEGO, COUNTY, ACCOUNTING FOR APPROXIMATELY 36% OF SAN DIEGO'S TOTAL EMISSIONS FROM STATIONARY SOURCES ACCORDING TO THE 1991 EMISSIONS INVENTORY. KELCO MODIFIED ITS PILOT PLANT NO. 2 IN 1982 AND 1988 WITHOUT OBTAINING AN ATC FROM SDCAPCD. THE MODIFICATIONS EXPANDED THE CAPACITY OF PILOT PLANT NO. 2 AND RESULTED IN VOC EMISSION INCREASES ABOVE THE NSR THRESHOLD. KELCO ALSO MODIFIED PLANT B IN 1989 AND PLANT C IN 1991 PURSUANT TO ATCS ISSUED BY SDCAPCD. THE MODIFICATIONS RESULTED IN VOC EMISSION INCREASES THAT EXCEEDED THE NSR THRESHOLD. HOWEVER, THE ATCS FOR THE PLANT B AND C EXPANSIONS DID NOT REQUIRE KELCO TO INSTALL EQUIPMENT THAT COMPLIED WITH LAER. EPA HAS DETERMINED THAT KELCO VIOLATED SDCAPCD RULES 10 AND 20.4 BY: (1) INSTALLING EQUIPMENT AT PILOT PLANT NO. 2 IN 1982 WITHOUT FIRST OBTAINING AN ATC FROM SDCAPCD, AND WITHOUT INSTALLING EQUIPMENT THAT COMPLIED WITH LAER; AND (2) INSTALLING PRESSURE LEAF FILTERS AT PILOT PLANT NO. 2 IN 1988 WITHOUT FIRST OBTAINING AN ATC FROM SDCAPCD, AND WITHOUT INSTALLING EQUIPMENT THAT COMPLIED WITH LAER. IN ADDITION, KELCO VIOLATED SDCAPCD RULE 20.4: (1) AT PLANT B IN 1989 BY INSTALLING EQUIPMENT INCLUDING A NEW PROPYLENE OXIDE DRYER WITHOUT ENSURING COMPLIANCE WITH LAER; AND (2) AT PLANT C IN 1991 BY INSTALLING EQUIPMENT INCLUDING A NEW 75 HORSEPOWER MILL WITHOUT ENSURING COMPLIANCE WITH LAER. THIS CASE IS A DIRECT REFERRAL TO THE DEPARTMENT OF JUSTICE. REGION IX HAS PROPOSED A BOTTOM LINE PENALTY OF $1,368,553. RESOLUTION OF THIS CASE WILL ALSO REQUIRE KELCO TO INSTALL CONTROL EQUIPMENT AT THE FACILITY TO COMPLY WITH LAER, AND TO TEST THE EQUIPMENT TO MEASURE ITS CAPTURE OR DESTRUCTION EFFICIENCY.

Defendants (2)

• MERCK AND COMPANY, INC.Named in complaintNamed in settlement
• MONSANTO COMPANYNamed in complaintNamed in settlement

Facilities (1)

• KELCO DIV OF MERCK & CO

  8355 AERO DR, SAN DIEGO, CA, 92123

  Registry ID: 110010676562

Statutes cited

• CAA 113 — Clean Air Act
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• MERCK & CO AND MONSANTO CO.entered 1996-11-06

  Primary law: CAA

  Federal penalty: $1,857,395

Timeline (6 milestones)

• 1994-07-19Enforcement Action Data Entered
• 1994-09-27Referred To Dept Of Justice
• 1996-09-05Complaint Filed With Court
• 1996-11-06Final Order Lodged
• 1996-11-06Final Order Entered
• 1996-11-06Concluded