EPA v. DIVERSIFIED CONTRACTORS, INC.

Case summary

IN JANUARY 1994, DIVERSIFIED CONTRACTORS, INC. INSTALLED A PORTABLE SOIL REMEDIATION/THERMAL TREATMENT FACILITY ON PROPERTY WITHIN THE BOUNDARIES OF THE AK-CHIN INDIAN RESERVATION IN ARIZONA. THE FACILITY CLEANS PETROLEUM CONTAMINATED SOIL BY HEATING IT IN A ROTARY DRYER TO BURN OFF VOLATILE ORGANIC COMPOUNDS. THE VOC LADEN EXHAUST STREAM FROM THE ROTARY DRYER IS DUCTED VIA A CYCLONE AND BAGHOUSE TO A THERMAL OXIDIZER WHERE THE VOCS ARE DESTROYED. THE TREATED SOIL, AND THE FINE PARTICULATE MATTER FROM THE CYCLONE AND BAGHOUSE, ARE CONVEYED TO A PUG MILL FOR COMPACTING. IN JANUARY 1995, AFTER EPA ISSUED A NOTICE OF VIOLATION, DIVERSIFIED INSTALLED A BAGHOUSE ON THE PUG MILL TO CONTROL PARTICULATE MATTER EMISSIONS. BEFORE MOVING TO THE RESERVATION, DIVERSIFIED OPERATED THE FACILITY IN PINAL COUNTY, ARIZONA, PURSUANT TO A SYNTHETIC MINOR SOURCE PERMIT ISSUED BY THE ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY. ADEQ DOES NOT HAVE ANY JURISDICTION ON THE RESERVATION, AND THEREFORE, THE ADEQ PERMIT IS UNENFORCEABLE. THE ADEQ PERMIT REQUIRED DIVERSIFIED TO OPERATE THE BAGHOUSE ON THE ROTARY DRYER TO REDUCE PARTICULATE MATTER EMISSIONS IN THE EXHAUST STREAM TO MINOR SOURCE LEVELS. AFTER DIVERSIFIED MOVED TO THE RESERVATION, ADEQ INSPECTORS COMPLAINED TO EPA ABOUT EXCESS VISIBLE EMISSIONS FROM THE FACILITY. ADEQ INSPECTORS BELIEVED THAT DIVERSIFIED WAS NOT OPERATING THE ROTARY DRYER BAGHOUSE RESULTING IN THE EXCESS VISIBLE EMISSIONS. EPA ISSUED A NOTICE OF VIOLATION IN DECEMBER 1994 TO DIVERSIFIED FOR FAILURE TO OBTAIN A FEDERAL PSD PERMIT FOR A MAJOR SOURCE OF PARTICULATE MATTER. IN A TELEPHONE CONFERENCE, DIVERSIFIED INFORMED EPA THAT THE PUG MILL, WHICH WAS UNCONTROLLED, WAS EMITTING THE EXCESS PARTICULATE MATTER OBSERVED BY ADEQ INSPECTORS. IN JANUARY 1995, DIVERSIFIED INSTALLED A BAGHOUSE ON THE PUG MILL. DIVERSIFIED CLAIMED THAT IT WAS NOT A MAJOR SOURCE IF BOTH BAGHOUSES WERE CONSIDERED INTEGRAL TO THE DESIGN OF THE FACILITY, AND SUBMITTED A REQUEST TO EPA FOR A DETERMINATION ON NON-APPLICABILITY OF PSD. REGION 9'S NEW SOURCE SECTION REJECTED DIVERSIFIED'S ASSERTION THAT THE BAGHOUSES ARE INTEGRAL TO THE DESIGN OF THE FACILITY, AND SUBMITTED A REQUEST TO EPA FOR A DETERMINATION OF NON- APPLICABILITY OF PSD. REGION 9'S NEW SOURCE SECTION REJECTED DIVERSIFIED'S ASSERTION THAT THE BAGHOUSES ARE INTEGRAL TO THE DESIGN OF THE FACILITY. THE NEW SOURCE SECTION CALCULATED THE FACILITY'S POTENTIAL TO EMIT PARTICULATE MATTER LESS THAN 10 MICRONS IN SIZE AS 12,000 TONS PER YEAR. A SOURCE THAT EMITS MORE THAN 250 TPY OF PM10 IS A MAJOR SOURCE. THE FACILITY IS, THEREFORE, AN UNPERMITTED MAJOR STATIONARY SOURCE FOR PM10 AND DIVERSIFIED VIOLATED SECTION 165 OF THE ACT BY CONSTRUCTING IT WITHOUT A PERMIT.

Defendants (1)

• DIVERSIFIED CONTRACTORS, INC.Named in complaint

Facilities (1)

• AK CHIN IND PARK

  MARICOPA INDIAN RESVR, MARICOPA INDIAN RESVR, AZ, 85247

  Registry ID: 110070239062

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 113 — Clean Air Act

Enforcement conclusions (1)

• **PROPOSED SETTLEMENT**

  Primary law: CAA

Timeline (3 milestones)

• 1994-12-16Enforcement Action Data Entered
• 1995-09-29Referred To Dept Of Justice
• 1997-08-04Complaint Filed With Court