Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_05-cv-00516/USCOURTS-caed-1_05-cv-00516-0/pdf.json

Parties Involved:
Saint-Gobain Containers, INC.
Defendant
United States of America
Plaintiff

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KELLY A. JOHNSON

Acting Assistant Attorney General

Environment and Natural Resources Division

United States Department of Justice

Washington, D.C. 20530

ROBERT D. MULLANEY

Trial Attorney, California State Bar # 116441

Environment and Natural Resources Division

United States Department of Justice

301 Howard Street, Suite 1050

San Francisco, California 94105

Telephone: (415) 744-6491

McGREGOR W. SCOTT

United States Attorney

E. ROBERT WRIGHT

Assistant United States Attorney 

Eastern District of California

1130 “O” Street, Room 3654

Fresno, California 93721

Telephone: (559) 498-7272

Attorneys for Plaintiff United States of America

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

FRESNO DIVISION

UNITED STATES OF AMERICA, ) 

)

Plaintiff, )

)

v. )

)

SAINT-GOBAIN CONTAINERS, INC., )

 )

Defendant. )

____________________________________)

No. 1:05-CV-00516-REC-SMS 

CONSENT DECREE

Case 1:05-cv-00516-OWW -SMS Document 8 Filed 06/21/05 Page 1 of 48
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-iTABLE OF CONTENTS

I. JURISDICTION AND VENUE .............................................. -1-

II. APPLICABILITY ......................................................... -2-

III. DEFINITIONS .......................................................... -3-

IV. CIVIL PENALTY ........................................................ -6-

V. COMPLIANCE REQUIREMENTS .......................................... -7-

VI. SUPPLEMENTAL ENVIRONMENTAL PROJECT ........................... -19-

VII. REPORTING REQUIREMENTS .......................................... -22-

VIII. STIPULATED PENALTIES ............................................. -24-

IX. FORCE MAJEURE ..................................................... -29-

X. DISPUTE RESOLUTION ................................................. -30-

XI. INFORMATION COLLECTION AND RETENTION .......................... -32-

XII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS .................... -34-

XIII. COSTS .............................................................. -35-

XIV. NOTICES ............................................................ -35-

XV. EFFECTIVE DATE .................................................... -36-

XVI. RETENTION OF JURISDICTION ........................................ -36-

XVII. MODIFICATION ..................................................... -36-

XVIII. TERMINATION ..................................................... -37-

XIX. PUBLIC PARTICIPATION .............................................. -37-

XX. SIGNATORIES/SERVICE ............................................... -37-

XXI. INTEGRATION ....................................................... -38-

XXII. FINAL JUDGMENT .................................................. -38-

XXIII. APPENDICES ....................................................... -38-

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Consent Decree -1-

Concurrently with the lodging of this Consent Decree, Plaintiff United States of

America, on behalf of the United States Environmental Protection Agency (“EPA”), has filed a

Complaint in this action pursuant to Section 113 of the Clean Air Act (the “Act”), 42 U.S.C.

§ 7413, alleging that Defendant Saint-Gobain Containers, Inc. (“Defendant” or “SGCI”) violated

the Act at its glass manufacturing facility in Madera, California (the “Facility”).

The Complaint alleges that Defendant modified Furnace #2 at its Facility in

December 1998 without complying with the Prevention of Significant Deterioration of Air

Quality (“PSD”) requirements of the Act. Moreover, the Complaint alleges that Defendant failed

to install and operate a Continuous Emissions Monitoring System (“CEMS”) on Furnace #1 at

the Facility, failed to conduct source tests at Furnaces #1 and #2, and submitted invalid

compliance certifications for Furnaces #1 and #2. 

Defendant denies any liability to the United States arising out of the transactions

or occurrences alleged in the Complaint.

The Parties recognize, and the Court by entering this Consent Decree finds, that

this Consent Decree has been negotiated by the Parties in good faith and will avoid litigation

between the Parties, and that this Consent Decree is fair, reasonable, and in the public interest.

NOW, THEREFORE, before the taking of any testimony, without the

adjudication or admission of any issue of fact or law except as provided in Section I below, and

with the consent of the Parties, IT IS HEREBY ADJUDGED, ORDERED, AND DECREED as

follows:

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over the subject matter of this action, pursuant

to 28 U.S.C. §§ 1331, 1345, and 1355, and Section 113(b) of the Act, 42 U.S.C. § 7413(b), and

over the Parties. Venue lies in this District pursuant to 42 U.S.C. § 7413(b), and 28 U.S.C.

§§ 1391(b) and (c) and 1395(a), because the violations alleged in the Complaint occurred in, and

Defendant conducts business in, this judicial District. For purposes of this Decree, or any action

to enforce this Decree, Defendant consents to the Court’s jurisdiction over this Decree or such

action and over Defendant, and consents to venue in this judicial District.

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Consent Decree -2-

2. For purposes of this Consent Decree, Defendant agrees that the Complaint

states claims upon which relief may be granted pursuant to Section 113(b) of the Act.

3. Notice of the commencement of this action has been given to the State of

California, as required by Section 113(b) of the Act.

II. APPLICABILITY

4. The obligations of this Consent Decree apply to and are binding upon the

United States, and upon Defendant and any successors, assigns, or other entities or persons

otherwise bound by law. 

5. Any transfer of ownership or operation of the Facility to any other person

must be conditioned upon the transferee’s agreement: (i) to subject itself to the jurisdiction of

this Court as the defendant in this Consent Decree, and (ii) to perform all remaining obligations

of SGCI required by this Decree, as provided in a written agreement between SGCI and the

proposed transferee, enforceable by the United States as a third-party beneficiary of such

agreement. At least 30 days prior to such transfer, SGCI shall provide a copy of this Consent

Decree to the proposed transferee. At least 15 days prior to such transfer, SGCI shall provide

written notice of the prospective transfer, together with a copy of the proposed written

agreement, to EPA and the United States, in accordance with Section XIV (Notices) of this

Decree. If Defendant attempts to transfer ownership or operation of the Facility without

complying with this Paragraph, it shall constitute a violation of this Decree. Defendant shall

remain obligated to ensure that the terms of the Decree are implemented until: (1) Defendant has

paid the civil penalty as required by Section IV (Civil Penalty); (2) with respect to operations by

SGCI prior to transfer of ownership or operation of the Facility, Defendant has either paid any

accrued stipulated penalties owed to the United States pursuant to Section VIII (Stipulated

Penalties) or any disputes relating to stipulated penalties have been resolved pursuant to Section

X (Dispute Resolution); and (3) the transferee is substituted by the Court as a defendant under

this Decree.

6. Defendant shall provide a copy of this Consent Decree to all officers,

employees, and agents whose duties include compliance with any provision of this Decree, as

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Consent Decree -3-

well as to any contractor retained to perform on-site repair, installation, construction, rebuilding

or maintenance work required under this Consent Decree. Defendant shall include the provisions

of Appendix B in any such contract.

7. In any action to enforce this Consent Decree, Defendant shall not raise as a

defense the failure by any of its officers, directors, employees, agents, or contractors to take any

actions necessary to comply with the provisions of this Consent Decree.

III. DEFINITIONS

8. Terms used in this Consent Decree that are defined in the Act or in

regulations promulgated pursuant to the Act shall have the meanings assigned to them in the Act

or such regulations, unless otherwise provided in this Decree. Whenever the terms set forth

below are used in this Consent Decree, the following definitions shall apply:

a. “Block 24-hour Average” shall mean the arithmetic average of the

hourly nitrogen oxides (“NOx”) (measured as nitrogen dioxides (“NO2)) emission rates divided

by the hourly pull rate of glass (in tons) of a furnace as measured over 24 one-hour periods, or a

fraction thereof when less than 24 one-hour periods are available, daily, from 12:00 a.m. to 11:59

p.m., excluding periods of CEMS and Continuous Emissions Rate Monitoring System

(“CERMS”) calibration and emissions monitoring malfunction;

b. “Block 24-hour Period” shall mean the sum of the hourly NOx

(measured as NO2) emission rates of a furnace as measured over 24 one-hour periods, or a

fraction thereof when less than 24 one-hour periods are available, daily, from 12:00 a.m. to 11:59

p.m., excluding periods of CEMS and CERMS calibration and emissions monitoring

malfunction;

c. “Cease Operations” shall mean that: (i) on or before December 31,

2006, SGCI decides not to replace Furnace #2 and to produce no more glass from Furnace #2 or

any replacement for Furnace #2, or (ii) at any time after the permanent termination of operation

of Furnace #2 and its replacement with the Oxy-fuel Furnace, SGCI decides to produce no more

glass from the Oxy-fuel Furnace. 

d. “Commence Construction” shall mean that SGCI has all necessary

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Consent Decree -4-

final preconstruction approvals or permits and either has: (i) begun, or caused to begin, a

continuous program of actual on-site construction of the source, to be completed within a

reasonable time; or (ii) entered into binding agreements or contractual obligations, which cannot

be cancelled or modified without substantial loss to SGCI, for major pieces of equipment

required for the actual construction of the source to be completed within a reasonable time. 

e. “Complaint” shall mean the Complaint filed by the United States 

in this action;

f. “Consent Decree” or “Decree” shall mean this Decree and

Appendices A and B attached hereto;

g. “Cullet” shall mean waste or broken glass, which is suitable for

remelting as an addition to a new batch. Cullet includes post-consumer recycled glass and waste

glass produced by the Facility;

h. “Daily Average Concentration” shall mean the arithmetic average

of the hourly sulfur dioxide (“SO2”) concentration (in parts per million on a dry volume basis

(“ppmdv”)) measured over 24 one-hour periods, or a fraction thereof when less than 24 one-hour

periods are available, daily, from 12:00 a.m. to 11:59 p.m., excluding periods of CEMS

calibration and emissions monitoring malfunction; 

i. “Day” shall mean a calendar day unless expressly stated to be a

working day. In computing any period of time under this Consent Decree, where the last day

would fall on a Saturday, Sunday, or federal holiday, the period shall run until the close of

business of the next working day;

j. “Defendant” shall mean Saint-Gobain Containers, Inc.;

k. “District” or “SJVUAPCD” shall mean the San Joaquin Valley

Unified Air Pollution Control District and any of its successor agencies;

l. “EPA” shall mean the United States Environmental Protection

Agency and any of its successor departments or agencies;

m. “Facility” shall mean Defendant’s container glass manufacturing

facility located in Madera, California;

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Consent Decree -5-

n. “Furnace #1” and “Furnace #2” shall mean the existing furnaces at

the Facility denoted by SJVUAPCD source numbers C-801-1 and C-801-2. Furnace #1 and

Furnace #2 are regenerative glass melting furnaces with a current melter area of 1,200 and 1,320

square feet, respectively;

o. “Fused Cast Crown” shall mean either a fused cast alumina or

fused cast alumina-zirconia-silica refractory in the crown section of the Oxy-fuel Furnace;

p. “Idling” shall mean a period when the glass pull rate is less than

110 tons of glass pulled per day for Furnace #2 or when the operation of the Oxy-fuel Furnace is

at less than 25 percent of the Permitted Production Capacity;

q. “Malfunction” shall mean a sudden and unavoidable failure or

breakdown of air pollution control equipment that: (i) is caused by circumstances beyond the

control of the owner and/or operator; (ii) is not the result of intent, neglect, or disregard of air

pollution control laws, rules or regulations; (iii) is not the result of improper maintenance; and

(iv) is not an excessively recurrent breakdown of the same equipment.

r. “NOx” shall mean the sum of oxides of nitrogen in the flue gas,

collectively expressed as NO2;

s. “Oxy-fuel Furnace” shall mean the oxygen-fuel furnace that SGCI

installs and operates pursuant to this Decree to replace Furnace #2. The Oxy-fuel Furnace will

be a glass melting furnace in which an enriched oxygen stream provides the oxidant for

combustion of the fuel. The Oxy-fuel Furnace may exceed the 1,320 square feet size of Furnace

#2 and may support additional glass container production through additional glass-forming

machines;

t. “Paragraph” shall mean a portion of this Decree identified by an

Arabic numeral;

u. “Parties” shall mean the United States and Defendant;

v. “Permitted Production Capacity” shall mean the production

capacity in tons of glass pulled per day for the Oxy-fuel Furnace as stated in the Permit to

Operate for the Oxy-fuel Furnace.

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Consent Decree -6-

w. “Project Costs” shall mean all costs incurred pursuant to this

Consent Decree to purchase equipment, the costs of labor and materials for installing that

equipment, costs for site preparation and buildings, costs for land, working capital, and off-site

facilities. Project Costs shall include costs for foundations and supports, erecting and handling

the equipment, electrical work, piping, insulation, painting, as well as engineering costs;

construction and field expenses (such as costs for construction supervisory personnel, office

personnel, rental of temporary offices, etc.); contractor and consulting fees (including, but not

limited to, construction and engineering firms involved in the project); and Start-up and

performance test costs (to get the system running and to verify that it meets performance

guarantees).

x. “Section” shall mean a portion of this Decree identified by a

Roman numeral;

y. “Shutdown” shall mean the period of time during which a glass

melting furnace is purposely allowed to cool from its operating temperature and molten glass is

removed from the tank for the purpose of a furnace rebuild or reconstruction, or during a natural

gas curtailment, or, subject to EPA’s approval, when it is commercially necessary;

z. “Start-up” shall mean the period of time, after initial construction,

a furnace rebuild, or a Shutdown, during which a glass melting furnace is heated to operating

temperature by the primary furnace combustion system, and systems and instrumentation are

calibrated; and

aa. “Transition” shall mean a period of no more than 24 hours in

duration when the operations of the Oxy-fuel Furnace is at less than 50 percent but more than 25

percent of the Permitted Production Capacity. 

bb. “United States” shall mean the United States of America, acting on

behalf of EPA.

IV. CIVIL PENALTY

9. Within 5 business days after Defendant receives notice from the United

States that this Consent Decree has been lodged, Defendant shall deposit the sum of $929,000 as

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Consent Decree -7-

a civil penalty into an escrow account bearing interest on commercially reasonable terms, in a

federally-chartered bank (the “Escrow Account”). If the Consent Decree is not entered by the

Court, and the time for any appeal of that decision has run or if the Court’s denial of entry is

upheld on appeal, the money placed in escrow, together with accrued interest thereon, shall be

returned to Defendant. If the Consent Decree is entered by the Court, Defendant shall, within 10

days after Defendant receives notice from the United States thereof, cause the money placed in

the Escrow Account, together with accrued interest thereon, to be paid to the United States as a

civil penalty. Payment shall be made by FedWire Electronic Funds Transfer (“EFT”) to the U.S.

Department of Justice in accordance with instructions to be provided to Defendant, following

lodging of the Consent Decree, by the Financial Litigation Unit of the U.S. Attorney’s Office for

the Eastern District of California. At the time of payment, Defendant shall simultaneously send

written notice of payment and a copy of any transmittal documentation (which should reference

DOJ case number 90-5-2-1-06982 and the civil action number of this case) to the United States

in accordance with Section XIV (Notices) of this Decree.

10. Defendant shall not deduct the civil penalty of $929,000, together with

accrued interest thereon, paid under this Section in calculating its federal income tax.

V. COMPLIANCE REQUIREMENTS

11. Compliance Plan for Furnace #2. In order to control nitrogen oxides

(“NOx”), sulfur oxides (“SOx”), and particulate emissions at the Facility, SGCI shall comply

with the following compliance plan:

a. Permanent termination of operation of Furnace #2. SGCI shall

permanently terminate the operation of, and produce no more glass from, Furnace #2 on or before

December 31, 2006. Furnace #2 must be removed from the Facility before operation of the Oxyfuel Furnace. 

b. Installation of Oxy-fuel Furnace.

i. Within 30 days after the Effective Date, SGCI shall submit

an application to the appropriate permitting authority for a preconstruction permit for an Oxyfuel Furnace to replace Furnace #2. In the application, SGCI shall propose a Permitted

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Consent Decree -8-

Production Capacity for the Oxy-fuel Furnace and shall propose the requirements specified in

Paragraphs 12, 13, and 14.

 ii. SGCI shall notify EPA pursuant to Section XIV (Notices)

of this Consent Decree not more than 10 calendar days after it submits a preconstruction permit

application and shall include a copy of the permit application submitted to the permitting

authority, if the permitting authority is not EPA.

iii. SGCI shall notify EPA pursuant to Section XIV (Notices)

of this Consent Decree when SGCI receives a preconstruction permit for the replacement of

Furnace #2 with the Oxy-fuel Furnace and for the installation of the scrubber and ESP on

Furnace #1 and the Oxy-fuel Furnace. The notification shall be postmarked not more than 10

calendar days after SGCI receives the preconstruction permit and shall include a copy of the

preconstruction permit issued by the permitting authority, if the permitting authority is not EPA.

iv. Unless EPA agrees in writing to relieve SGCI of the

obligation, in whole or in part, of this Paragraph 11.b.iv., SGCI agrees that it will not accept, and

will appeal, a preconstruction permit issued by the permitting authority that does not include

permit conditions at least as stringent as those proposed in the preconstruction permit application

described in Paragraph 11.b.i. Under these circumstances, all deadlines in this Consent Decree

related to construction and operation of the Oxy-fuel Furnace shall be stayed pending the final

outcome of any such appeal.

v. Unless the preconstruction permit does not include permit

conditions at least as stringent as those proposed in the preconstruction permit application

described in Paragraph 11.b.i., SGCI shall Commence Construction on the Oxy-fuel Furnace

within 30 days after receiving a final preconstruction permit from the permitting authority. 

vi. SGCI shall complete construction of, and shall begin

operating, the Oxy-fuel Furnace by March 1, 2007.

vii. Except as provided in Paragraph 11.b.viii., for purposes of

this Consent Decree and any other issue related to the emission reductions resulting from the

permanent termination of operation of Furnace #2, the parties stipulate that NOx emission

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Consent Decree -9-

reductions from the permanent termination of operation of Furnace #2 that exceed 104 tons per

year (“tpy”) shall not be treated as actual emission reductions, but shall be treated as reductions

that are not surplus emission reductions in excess of emission reductions required by law, and

therefore are not eligible for conversion to Emission Reduction Credits (“ERCs”). 

viii. Solely for the purposes of a netting calculation for the

permitting of the Oxy-fuel Furnace, the NOx “baseline emissions,” as defined in SJVUAPCD

Rule 2201, Section 3.7 (approved by EPA on May 17, 2004, see 69 Fed. Reg. 27,837), shall not

exceed 1.3 pounds of NOx per ton of glass pulled times the Permitted Production Capacity.

c. Cease Operations.

i. SGCI reserves the right to Cease Operations at any time. If

SGCI decides to Cease Operations, SGCI shall, within 10 days after reaching its decision, notify

EPA and the United States pursuant to Section XIV (Notices) of this Consent Decree. The

notification shall state the date that SGCI plans to Cease Operations.

ii. If SGCI decides to Cease Operations and not to construct

and operate the Oxy-fuel Furnace, SGCI: (a) shall be subject to stipulated penalties pursuant to

Paragraph 35 below, and (b) shall not use any emission reductions resulting from the permanent

termination of operation of Furnace #2 to either apply for or obtain ERCs, or as reductions in any

netting calculation.

d. SGCI shall notify EPA pursuant to Section XIV (Notices) of this

Consent Decree of the date on which SGCI is in compliance with Paragraph 11.a., 11.b.v., and

11.b.vi. The notification shall be postmarked not more than 10 calendar days after such dates.

 12. Requirements for Oxy-fuel Furnace, Scrubber, and ESP. Throughout the

life of the Oxy-fuel Furnace, SGCI shall comply with the following requirements:

 a. SGCI shall install, operate, and maintain an Oxy-fuel Furnace to

control NOx in accordance with the following requirements:

i. Emissions of NOx shall not exceed 1.3 pounds per ton of

glass pulled, as calculated on a Block 24-Hour Average and determined by the NOx and flow

monitoring described in Paragraph 13.

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1

/The calculation of the rolling 30-day average may require more than 30 scrubber operating days.

For example, if the scrubber inlet’s Daily Average Concentration of SO2 is less than 353 ppmdv for

three days during a continuous 30-day period, then the calculation of the rolling 30-day average will

require an additional three days or a total of 33 operating days (i.e., 30 days that are subject to the

Reduction Efficiency standard and 3 days that are subject to the Daily Concentration Standard).

Consent Decree -10-

ii. The emission limit in Subparagraph 12.a.i. shall not apply

during periods of Idling, Transition, Start-up, or Shutdown.

iii. SGCI shall install, maintain, and operate the Oxy-fuel

Furnace such that the combustion oxidant is at least 90 percent oxygen.

iv. SGCI shall install, operate, and maintain staged combustion

low NOx oxy-fuel burners on the Oxy-fuel Furnace. 

v. SGCI shall install a Fused Cast Crown on the Oxy-fuel

Furnace. SGCI shall maintain the Fused Cast Crown for the life of the Oxy-fuel Furnace unless

SGCI can show, at the time of any necessary repairs to the Fused Cast Crown, that the Fused

Cast Crown has proven technically or economically infeasible to maintain. Within 10 days of its

decision to remove the Fused Cast Crown, SGCI shall notify EPA pursuant to Section XIV

(Notices) of this Consent Decree of its decision and shall provide the basis for its decision.

b. SGCI shall install, operate, and maintain a scrubber system to

reduce SOx emissions by at least 85 percent (“Reduction Efficiency”), excluding days when the

scrubber inlet’s Daily Average Concentration of SO2 is 353 ppmdv or less, in which case the

scrubber outlet’s Daily Average Concentration of SO2 shall be reduced to at least 53 ppmdv

(“Daily Concentration Standard”). The averaging period for the Reduction Efficiency shall be

calculated on a rolling 30-day average basis, excluding days when the scrubber inlet’s Daily

Average Concentration of SO2 is 353 ppmdv or less.1/ Compliance with the SOx Reduction

Efficiency and Daily Concentration Standard shall be demonstrated by scrubber inlet and outlet

SO2 continuous concentration monitoring as specified in Paragraph 13. 

c. SGCI shall install, operate, and maintain an electrostatic

precipitator (“ESP”) to control particulate emissions in accordance with the following

requirements:

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Consent Decree -11-

i. Particulate emissions shall be controlled to at least: (1) 0.2

pounds of particulate per ton of glass pulled, using EPA Method 5 as set forth in 40 C.F.R. Part

60, Appendix A; and (2) 0.45 pounds of particulate per ton of glass pulled, using the combined

results of EPA Methods 5 and 202 as set forth in 40 C.F.R. Part 60, Appendix A.

d. SGCI shall operate the Oxy-fuel Furnace for at least one year after

SGCI has demonstrated compliance by initial compliance testing with the SOx Reduction

Efficiency, particulate emission limits, and NOx emission limit established in this Consent

Decree. 

e. Start-Up Requirements for Oxy-fuel Furnace. SGCI shall submit a

request for a Start-up exemption to the permitting authority in conjunction with the

preconstruction permit application for the Oxy-fuel Furnace. 

i. The actual length of the Start-up exemption shall be

determined by the permitting authority at the time of preconstruction permit issuance, but in any

case it shall not exceed 70 days. The Start-up exemption shall begin upon activation of the

primary combustion system. 

ii. SGCI shall submit to the permitting authority any

information deemed necessary by the permitting authority to determine the appropriate length of

the Start-up exemption. This information shall include, but may not be limited to, a detailed list

of activities to be performed during Start-up, an explanation for the length of time needed to

complete each activity, and a description of the material process flow rates and system operating

parameters that SGCI plans to evaluate during the Start-up.

iii. The length of the Start-up exemption, if any, will be

determined at the discretion of the permitting authority. The permitting authority will approve a

Start-up exemption only to the extent that SGCI’s submittal identifies the control technologies or

strategies to be utilized, describes what physical conditions prevail during Start-up periods that

prevent the controls from being effective, and provides a precise estimate as to when physical

conditions will have reached a state that allows for the effective control of emissions.

iv. During the Start-up period, the stoichiometric ratio of the

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primary furnace combustion system shall not exceed 5 percent excess oxygen, as calculated from

the actual fuel and oxidant flow measurements for combustion in the glass melting furnace.

v. During the Start-up period, the emission control systems

shall be in operation as soon as technologically feasible to minimize emissions.

f. Shutdown Requirements for Oxy-fuel Furnace.

i. The duration of a Shutdown, as measured from the time the

furnace production level drops below the Idling threshold to the time when all emissions from

the furnace cease, shall not exceed 20 days. 

ii. The emission control systems shall be in operation

whenever technologically feasible during Shutdown to minimize emissions.

g. Idling and Transition Requirements for Oxy-fuel Furnace. 

i. During Idling and Transition, NOx emissions from the

Oxy-fuel Furnace (calculated as a Block 24-hour Period) shall not exceed 1.3 pounds of NOx per

ton of glass pulled times the Permitted Production Capacity. (For example, if the Permitted

Production Capacity is 540 tons of glass pulled per day, the daily NOx emissions shall not

exceed 702 pounds per day.) NOx emissions shall be determined by the NOx and flow

monitoring described in Paragraph 13.

ii. When Idling or a Transition occurs for less than 24 hours in

a day, the NOx emissions limit in Paragraph 12.g.i shall apply and NOx emissions from 12:00

a.m. through 11:59 p.m. on that day shall be included in the calculation of the total daily NOx

emissions.

iii. The Oxy-fuel Furnace shall have no more than six

Transitions during any calendar year. Once a Transition begins, production must exceed 50

percent of the Permitted Production Capacity or be less than 25 percent of the Permitted

Production Capacity for at least 24 hours before another Transition can be initiated. 

iv. The emission control systems shall be in operation

whenever technologically feasible during Idling and Transition to minimize emissions.

v. Scheduled or preventive maintenance of the emission

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control systems shall occur only during Idling or after Shutdown.

h. Malfunction Requirements. When a Malfunction of the Oxy-fuel

Furnace or any of the air pollution equipment occurs, SGCI shall attempt to repair the

Malfunction as soon as practicable, but in no event longer than 12 hours. Off-shift labor and

overtime must be utilized, to the extent practicable, to ensure that such repairs are made

expeditiously. If after 12 hours, the Malfunction is not corrected, the Oxy-fuel Furnace must be

taken to Idling within 12 additional hours. 

 13. Oxy-fuel Furnace Emissions Testing and Monitoring.

a. The open hood stack exhaust system for Furnace #1 shall be

eliminated by March 1, 2007. The new exhaust system(s) for Furnace #1 and the Oxy-fuel

Furnace shall be designed, installed, and maintained according to good engineering practices,

including minimizing dilution air in the stack exhaust stream prior to measurement of opacity. 

b. Initial Compliance Testing. Within 60 days after achieving 60

percent of the Permitted Production Capacity, but no later than 180 days after the commencement

of the Start-up period of the Oxy-fuel Furnace, SGCI shall demonstrate compliance with: (1) the

SOx Reduction Efficiency; (2) the particulate emission limits; and (3) the NOx emission limit. 

The Continuous Opacity Monitoring System (“COMS”) shall also be certified in the initial

compliance testing period.

i. The initial compliance testing for the SOx Reduction

Efficiency shall be performed using an inlet and outlet SO2 monitoring system that has met the

requirements of Performance Specification 2 in 40 C.F.R. Part 60, Appendix B. The SO2

monitoring system shall meet the quality assurance requirements of 40 C.F.R. Part 60, Appendix

F.

ii. Compliance testing for particulate shall be conducted in

accordance with EPA Reference Methods 1, 2, 5, and 202 as set forth in 40 C.F.R. Part 60,

Appendix A. Each test shall consist of three runs. The sampling time and volume for each run

shall be at least 60 minutes and 31.8 dry standard cubic feet. Thereafter, compliance testing of

particulate matter shall be conducted on an annual basis within 60 days of the anniversary date of

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the latest compliance testing.

iii. The initial compliance testing for NOx shall be

demonstrated by a NOx CERMS that has met the requirements of Performance Specification 6 in

40 C.F.R. Part 60, Appendix B. NOx monitoring systems shall meet the quality assurance

requirements of 40 C.F.R. Part 60, Appendix F.

iv. Certification of the COMS shall be demonstrated by

meeting the requirements of 40 C.F.R. § 60.13 and 40 C.F.R. Part 60, Appendix B, Performance

Specification 1.

c. Continuous Emission Monitoring. To show compliance with the

NOx emission limit for the Oxy-fuel Furnace, SGCI shall measure the NOx emissions from the

Oxy-fuel Furnace separately from emissions from Furnace #1. After Start-up of the Oxy-fuel

Furnace, SGCI shall maintain and operate: (1) a CEMS for O2, CO, and NOx in the Furnace #1

exhaust stream; (2) a CERMS in the Oxy-fuel Furnace exhaust stream; and (3) a COMS in the

combined Oxy-fuel Furnace and Furnace #1 exhaust stream; and (4) a SO2 CEMS at the inlet and

outlet of the scrubber as follows:

i. CEMS to measure stack gas O2, CO, and SO2

concentrations. The CEMS shall meet the requirements of 40 C.F.R. § 60.13, 40 C.F.R. Part 60,

Appendix B (Performance Specifications 2, 3, and 4), and 40 C.F.R. Part 60, Appendix F

(Quality Assurance Procedures).

ii. CERMS to measure NOx emission rates. The CERMS

shall meet the requirements of 40 C.F.R. Part 60, Appendix B, Performance Specification 6 and

40 C.F.R. Part 60, Appendix F (Quality Assurance Procedures).

iii. The COMS shall meet the requirements of 40 C.F.R.

§ 60.13 and 40 C.F.R. Part 60, Appendix B, Performance Specification 1. 

iv. Monitoring of the ESP shall comply with the requirements

of 40 C.F.R. Part 64.

d. Determination of NOx Emission Rate. The NOx emission rate

measured by the CERMS in pounds per hour shall be converted to pounds of NOx per ton of

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glass pulled according to the following equation:

 

14. Recordkeeping and Reporting for the Oxy-fuel Furnace. SGCI shall

maintain the following information recorded in a permanent form, which may include electronic

files, suitable for inspection:

 a. A file of all continuous monitoring system, monitoring device, and

performance testing measurements; all continuous monitoring system performance evaluations;

all continuous monitoring system or monitoring device calibration checks; adjustments and

maintenance performed on these systems or devices; and all other information required by 40

C.F.R. Part 60, Appendices A, B, and F; 

 b. Operating logs that contain the following data on a daily basis: 

hours of operation, glass pull rate (in tons of glass pulled), type and quantity of fuel used, NOx

emissions (in pounds of NOx per ton of glass pulled, calculated on a Block 24-hour Average),

percent Cullet used, electric boost used (in kilowatt-hours (“KWH”)), oxygen quantity, and

oxygen content of the combustion oxidant for the Oxy-fuel Furnace. The logs shall indicate

periods of Idling, Transition, Start-up, and Shutdown, as well as any periods of maintenance,

repair or Malfunction that affect the levels of emissions. This information, including all

electronic files, shall be recorded and maintained until the Oxy-fuel Furnace is rebuilt,

reconstructed, or Ceases Operation. 

 c. During Idling and Transition periods: A log that includes the

following data on a daily basis: hours in Idling or Transition, glass pull rate (in tons of glass

pulled), and pounds of NOx emitted (calculated as a Block 24-hour Period).

d. Within 30 days after the end of each calendar-year quarter (i.e., by

April 30, July 30, October 30, and January 30), Defendant shall submit to EPA and the District a

“Quarterly Excess Emissions, CERMS, CEMS, and COMS Report” that conforms to the format

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set forth in 40 C.F.R. § 60.7(c) and includes the following:

i. the magnitude of excess emissions, computed in

accordance with 40 C.F.R. § 60.13(h), any conversion factors(s) used, and the date and time of

commencement and completion of each time period of excess emissions;

ii. specific identification of each period of excess emissions

that occur during Idling, Start-ups, Shutdowns, and Malfunctions, together with the nature and

cause of any Malfunction (if known) and the corrective action taken or preventative measures

adopted;

iii. the date and time identifying each period during which the

continuous monitoring system was inoperative (except for zero and span checks) and the nature

of the system repairs or adjustments; and 

iv. when no excess emissions have occurred or the continuous

monitoring system has not been inoperative, repaired, or adjusted, such information shall be

stated in the report.

e. SGCI shall notify EPA pursuant to Section XIV (Notices) of this

Consent Decree of the date on which SGCI plans to conduct initial compliance testing required

by Paragraph 13.b. The notification shall be postmarked not less than 30 calendar days prior to

such date. 

f. SGCI shall notify EPA pursuant to Section XIV (Notices) of this

Consent Decree of the date on which SGCI has conducted the initial compliance testing required

by Paragraph 13.b. The notification shall be postmarked not more than 60 calendar days after

such date and shall include a copy of the compliance testing report. If the compliance testing

report is not available at the time of notification, SGCI shall provide a copy of the report to EPA

within 10 days after receiving it. 

15. Interim Requirements for Furnace #2. Beginning on the Effective Date

and continuing until the permanent termination of operation of Furnace #2, SGCI shall comply

with the following requirements for Furnace #2: 

a. From May 1 through October 31 of each year, emissions shall not

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exceed 3.7 pounds of NOx per ton of glass pulled, as calculated on a Block 24-Hour Average and

determined by the NOx monitoring specified in subparagraph c; from November 1 through April

30 of each year, emissions shall not exceed 3.8 pounds of NOx per ton of glass pulled, as

calculated on a Block 24-Hour Average and determined by the NOx monitoring specified in

subparagraph c; provided, however, that these emission limits shall not apply during periods of

Idling, Start-up, or Shutdown. 

b. During Idling, NOx emissions from Furnace #2 shall not exceed

1,650 pounds per day (calculated as a Block 24-hour Period) as determined by the NOx

monitoring specified in subparagraph c. When Idling occurs for less than 24 hours in a day, the

NOx emissions limit in this subparagraph shall apply and NOx emissions from 12:00 a.m.

through 11:59 p.m. on that day shall be included in the calculation of the total daily NOx

emissions.

c. SGCI shall maintain and operate a CEMS in the Furnace #2

exhaust stack to measure O2, NOx, and CO concentrations. The system shall meet the

requirements of 40 C.F.R. § 60.13, 40 C.F.R. Part 60, Appendix B (Performance Specifications

2, 3, and 4), and 40 C.F.R. Part 60, Appendix F (Quality Assurance Procedures).

d. Recordkeeping. Throughout the operating life of Furnace #2 and

for a five-year period thereafter, SGCI shall maintain the following information recorded in a

permanent form, which may include electronic files, suitable for inspection:

i. A file of all continuous monitoring system, monitoring

device, and performance testing measurements; all continuous monitoring system performance

evaluations; all continuous monitoring system or monitoring device calibration checks;

adjustments and maintenance performed on these systems or devices; and all other information

required by 40 C.F.R. Part 60, Appendices A, B, and F;

ii. Operating logs that include on a daily basis: hours of

operation, glass pull rate (in tons of glass pulled), type and quantity of fuel used, NOx emissions

(in pounds of NOx per ton of glass pulled, calculated on a Block 24-hour Average), percent

Cullet used, and electric boost used (in KWH). The logs shall indicate periods of Idling and

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Shutdown, as well as any periods of maintenance, repair or Malfunction that affect the levels of

emissions; and

iii. During Idling periods, SGCI shall maintain the following

information, recorded in a permanent form suitable for inspection, in an operating log that

includes on a daily basis: hours in Idling, glass pull rate (in tons of glass pulled), and pounds of

NOx emitted (calculated as a Block 24-hour Period).

e. Reporting. Within 30 days after the end of each calendar-year

quarter (i.e., by April 30, July 30, October 30, and January 30), Defendant shall submit to EPA

and the District a “Quarterly Excess Emissions and CEMS Report” that conforms to the format

set forth in 40 C.F.R. § 60.7(c) and includes the following:

i. the magnitude of excess emissions, computed in

accordance with 40 C.F.R. § 60.13(h), any conversion factors(s) used, and the date and time of

commencement and completion of each time period of excess emissions;

ii. specific identification of each period of excess emissions

that occur during Idling, Shutdowns, and Malfunctions, together with the nature and cause of any

Malfunction (if known) and the corrective action taken or preventative measures adopted; 

iii. the date and time identifying each period during which the

continuous monitoring system was inoperative (except for zero and span checks) and the nature

of the system repairs or adjustments; and 

iv. when no excess emissions have occurred or the continuous

monitoring system has not been inoperative, repaired, or adjusted, such information shall be

stated in the report. 

 16. Permits. When any compliance obligation under this Section requires

Defendant to obtain a federal, state, or local permit or approval, Defendant shall submit timely

applications and timely provide additional information as requested by the permitting authority to

make its applications complete, and take all other actions necessary to obtain all such permits or

approvals. Defendant may seek relief under the provisions of Section IX (Force Majeure) of this

Consent Decree for any delay in the performance of any such obligation resulting from a failure

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to obtain, or a delay in obtaining, any permit or approval required to fulfill such obligation, if

Defendant has submitted timely and complete applications and has taken all other actions

necessary to obtain all such permits or approvals.

VI. SUPPLEMENTAL ENVIRONMENTAL PROJECT

 17. Defendant shall implement a Supplemental Environmental Project

(“SEP”) requiring installation of a scrubber and ESP to control SOx and particulate emissions

from Furnace #1 at the Facility, in accordance with the following requirements:

a. The scrubber system shall reduce SOx emissions from Furnace #1

as specified in Paragraph 12.b. Initial compliance testing shall comply with Paragraph 13.b. if

the Oxy-fuel Furnace is constructed. If the Oxy-fuel Furnace is not constructed, the initial

compliance testing shall take place by September 30, 2007. Continuous emissions monitoring

shall comply with Paragraph 13.c.

b. The ESP shall control particulate emissions from Furnace #1 as

specified in Paragraph 12.c. Initial compliance testing shall comply with Paragraph 13.b. if the

Oxy-fuel Furnace is constructed. If the Oxy-fuel Furnace is not constructed, the initial

compliance testing shall take place by September 30, 2007. Monitoring of the ESP shall comply

with the requirements of 40 C.F.R. Part 64.

c. The scrubber and ESP shall be installed and operating to control

SOx and particulate emissions from Furnace #1 by March 1, 2007.

d. In implementing the SEP, Defendant shall spend not less than

$1,080,000 in eligible SEP Project Costs for the scrubber and ESP for Furnace #1. If SGCI has

installed the scrubber and ESP on both Furnace #1 and the Oxy-fuel Furnace, SGCI shall

multiply the total Project Costs for the scrubber and ESP for both furnaces by a factor of .24 in

order to: (1) allocate a portion of the total Project Costs to Furnace #1, and (2) determine the

eligible SEP Project Costs. Eligible SEP Project Costs do not include costs allocated to

controlling SOx and particulate emissions from the Oxy-fuel Furnace. If the Oxy-fuel Furnace is

not constructed, SGCI shall use the total Project Costs for the scrubber and ESP for Furnace #1

to determine the eligible SEP Project Costs.

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e. Emission Reduction Credits. 

i. No later than 180 days after installation of the scrubber and

ESP on Furnace #1, SGCI shall apply to SJVUAPCD for ERCs based on the reduction of

emissions resulting from installation and operation of the scrubber and ESP on Furnace #1. 

SGCI shall take all actions necessary to convert such emission reductions to ERCs.

ii. Within ten days after submitting the ERC application,

SGCI shall provide a copy of the application to EPA pursuant to Section XIV (Notices) of this

Consent Decree. SGCI shall provide a copy to EPA pursuant to Section XIV (Notices) of this

Consent Decree of any other correspondence (sent or received by Defendant) with The

Environmental Resources Trust, Inc. (“ERT”) or any government agencies relating to ERCs

from this SEP within ten days after sending or receiving the correspondence. 

iii. If SGCI receives any ERCs from emission reductions

associated with the operation of the scrubber and ESP required by Paragraph 17 of this Consent

Decree, SGCI shall transfer ownership of those ERCs to ERT in Washington, D.C. by following

the procedures identified in Appendix A to this Consent Decree, which is hereby incorporated as

part of this Consent Decree.

iv. If SGCI publicizes the transfer of ERCs to ERT, it shall

include the following language: “This transfer of Emission Reduction Credits was undertaken in

connection with the settlement of an enforcement action, United States v. Saint-Gobain

Containers, Inc., taken on behalf of the U.S. Environmental Protection Agency under the Clean

Air Act.”

f. If Defendant decides to halt or abandon work on the SEP,

Defendant shall notify EPA and the United States of its decision pursuant to Section XIV

(Notices) of this Consent Decree. The notification shall be postmarked no later than 10 days

after such decision and shall state the date that Defendant halted or abandoned work. 

Defendant’s failure to complete the SEP shall be subject to stipulated penalties as provided in

Paragraph 37. Defendant is liable for stipulated penalties under Paragraph 37.d. only if it failed

to meet an applicable milestone under Paragraph 17 before it submitted notification to EPA and

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the United States under this Paragraph 17.f. 

 18. With regard to the SEP, Defendant certifies the truth and accuracy of each

of the following:

a. that all cost information provided to EPA in connection with

EPA’s approval of the SEP is complete and accurate and represents a fair estimate of the costs

necessary to implement the SEP;

b. that, as of the date of executing this Decree, Defendant is not

required to perform or develop the SEP by any federal, state, or local law or regulation and is not

required to perform or develop the SEP by agreement, grant, or as injunctive relief awarded in

any other action in any forum;

c. that the SEP is not a project that Defendant was planning or

intending to construct, perform, or implement other than in settlement of the claims resolved in

this Decree;

d. that Defendant has not received, and is not negotiating to receive,

credit for the SEP in any other enforcement action; and

e. that Defendant will not receive any reimbursement for any portion

of the SEP from any other person.

19. SEP Completion Report. No later than June 30, 2007, Defendant shall

submit a SEP Completion Report to the United States, in accordance with Section XIV (Notices)

of this Consent Decree. The SEP Completion Report shall contain the following information:

(1) a detailed description of the SEP as implemented;

(2) a description of any problems encountered in completing the SEP

and the solutions thereto;

(3) an itemized list of all eligible SEP Project Costs;

(4) certification that the SEP has been fully implemented pursuant to

the provisions of this Decree; and

(5) a description of the environmental and public health benefits

resulting from implementation of the SEP (with a quantification of the benefits and pollutant

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reductions, if feasible).

20. EPA may, in its sole discretion, require information in addition to that

described in the preceding Paragraph, in order to determine the adequacy of SEP completion or

eligibility of SEP Project Costs, and Defendant shall use its best efforts to provide such

information.

 21. After receiving the SEP Completion Report, the United States shall notify

Defendant whether or not Defendant has satisfactorily completed the SEP. If the SEP has not

been satisfactorily completed in accordance with the requirements of this Consent Decree, or if

the amount expended on performance of the SEP is less than the amount set forth in Paragraph

17, above, Stipulated Penalties may be assessed under Section VIII of this Consent Decree. 

 22. Disputes concerning the satisfactory performance of the SEP and the

amount of eligible SEP Project Costs may be resolved under Section X (Dispute Resolution) of

this Decree. No other disputes arising under this Section shall be subject to Dispute Resolution.

23. Each submission required under this Section shall be signed by an official

with knowledge of the SEP and shall bear the certification language set forth in Paragraph 27,

below.

24. Any public statement, oral or written, in print, film, or other media, made

by Defendant making reference to the SEP under this Decree shall include the following

language: “This project was undertaken in connection with the settlement of an enforcement

action, United States v. Saint-Gobain Containers, Inc., taken on behalf of the U.S. Environmental

Protection Agency under the Clean Air Act.”

VII. REPORTING REQUIREMENTS

25. Defendant shall submit the following reports:

a. Within 30 days after the end of each calendar-year quarter (i.e., by

April 30, July 30, October 30, and January 30) after the Effective Date until termination of this

Decree pursuant to Section XVIII, Defendant shall submit to EPA a quarterly report for the

preceding quarter that shall include the status of any construction or compliance measures (e.g.,

permitting process, anticipated start-up of operation, testing, etc.); completion of milestones;

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problems encountered or anticipated, together with implemented or proposed solutions; status of

permit applications; reports to the District; and a discussion of Defendant’s progress in satisfying

its obligations in connection with the SEP under Section VI of this Decree including, at a

minimum, a narrative description of activities undertaken and compliance with the schedules or

milestones set forth in the Decree.

b. Report of Operating Logs. Until termination of this Consent

Decree, a copy of the operating logs, including all electronic files, for the Oxy-fuel Furnace

maintained pursuant to Paragraph 14 shall be submitted to the District and EPA on an annual

basis on March 1 each year pursuant to Section XIV (Notices) of this Consent Decree.

c. Report of Costs. Within 120 days of completing construction of

the Oxy-fuel Furnace, SGCI shall report to EPA the Project Costs separately for the (1) Fused

Cast Crown; and (2) scrubber and ESP. This report shall include detailed supporting

documentation of those costs such as invoices from vendors and other internal accounting

records relevant to the costs incurred.

d. Defendant shall notify the United States in writing, within ten

working days of the day Defendant first becomes aware of a violation or a potential violation of

any requirement of this Consent Decree, and shall identify its likely duration, with an explanation

of the violation’s likely cause and of the remedial steps taken, or to be taken, to prevent or

minimize such violation. If the cause of a violation cannot be fully explained at the time the

report is due, Defendant shall so state in the report. Defendant shall investigate the cause of the

violation and shall then submit an amendment to the report, including a full explanation of the

cause of the violation, within 30 days of the day Defendant becomes aware of the cause of the

violation. Nothing in this Paragraph or the following Paragraph relieves Defendant of its

obligation to provide the notice required by Section IX (Force Majeure) of this Consent Decree.

26. All reports shall be submitted to the persons designated in Section XIV 

(Notices) of this Consent Decree.

27. Each report submitted by Defendant under this Section shall be signed by

an official of the submitting party and include the following certification:

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I certify under penalty of law that I have examined and am familiar

with the information submitted in this document and all attachments and that this document and its attachments were prepared

either by me personally or under my direction or supervision in a

manner designed to ensure that qualified and knowledgeable

personnel properly gather and present the information contained

therein. I further certify, based on my personal knowledge or on

my inquiry of those individuals immediately responsible for

obtaining the information, that the information is true, accurate and

complete. I am aware that there are significant penalties for

submitting false information, including the possibility of fines and

imprisonment for knowingly and willfully submitting a materially

false statement.

This certification requirement does not apply to emergency or similar notifications where

compliance would be impractical.

28. The reporting requirements of this Consent Decree do not relieve

Defendant of any reporting obligations required by the Act or implementing regulations, or by

any other federal, state, or local law, regulation, permit, or other requirement.

29. Any information provided pursuant to this Consent Decree may be used by

the United States in any proceeding to enforce the provisions of this Consent Decree and as

otherwise permitted by law.

VIII. STIPULATED PENALTIES

30. If Defendant fails to pay the civil penalty required to be paid under Section

IV (Civil Penalty) of this Decree when due, Defendant shall pay a Stipulated Penalty of $5,000

per day for each day that the payment is late. Late payment of the civil penalty shall be made in

accordance with Section IV, Paragraph 9, above. Stipulated Penalties shall be paid in accordance

with Section VIII, Paragraph 41, below. All transmittal correspondence shall state that any such

payment is for late payment of the civil penalty due under this Decree, or for Stipulated Penalties

for late payment, as applicable, and shall include the identifying information set forth in

Paragraph 9, above. 

31. Defendant shall be liable for Stipulated Penalties to the United States for

violations of this Consent Decree as specified below, unless excused under Section IX (Force

Majeure). A violation includes failing to perform any obligation required by the terms of this

Decree, including any work plan or schedule approved under this Decree, according to all

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applicable requirements of this Decree and within the specified time schedules established by or

approved under this Decree.

32. Emissions Limits. The following Stipulated Penalties shall accrue per

violation per day for each violation of a requirement of Paragraph 12.a.i., 12.b., 12.c.i., and

12.g.i., and Paragraph 15.a. and 15.b., above:

Penalty Per Violation Per Day Period of Noncompliance

$1,000 1st through 14th day

$3,500 15th through 30th day

$10,000 31st day and beyond

For the purpose of determining Stipulated Penalties for the emissions limits only, days of

noncompliance are cumulative from the Effective Date and need not be continuous.

33. Compliance Milestones.

a. The following Stipulated Penalties shall accrue per violation per

day for each violation of the requirements identified in Subparagraph b:

Penalty Per Violation Per Day Period of Noncompliance

$1,000 1st through 14th day

$3,500 15th through 30th day

$10,000 31st day and beyond

b. The applicable compliance milestones are as follows:

Requirement Paragraph

Termination of operation of Furnace #2 11.a

Submittal of permit application 11.b.i

Appeal of deficient permit 11.b.iv

Commence construction 11.b.v

Begin operation of Oxy-fuel Furnace 11.b.vi

34. Reporting and Recordkeeping Requirements. The following Stipulated

Penalties shall accrue per violation per day for each violation of the reporting and recordkeeping

requirements of Sections V and VII of this Consent Decree:

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Penalty Per Violation Per Day Period of Noncompliance

$500 1st through 30th day

$750 31st day and beyond

No Stipulated Penalties shall accrue under Paragraph 34 for the first 90 days after the Effective

Date of this Consent Decree. 

35. Oxy-fuel Furnace; Installation of Fused Cast Crown.

a. If Defendant decides to Cease Operations and not to construct and

operate the Oxy-fuel Furnace pursuant to Paragraph 11.c., Defendant shall pay stipulated

penalties as follows:

i. If Defendant provides notice that it will Cease Operations

in calendar year 2005, Defendant shall pay a base stipulated penalty of $1,381,000 for past

operations. In addition, Defendant shall pay:

ii. If Defendant provides notice that it will Cease Operations

in calendar year 2006, Defendant shall pay a base stipulated penalty of $2,781,000 for past

operations. In addition, Defendant shall pay:

b. If Defendant does not install the Fused Cast Crown on the Oxy-fuel

Furnace, Defendant shall pay a Stipulated Penalty of $535,000.

36. For Defendant’s failure to comply with any other requirement of Section V

of this Consent Decree not specifically referenced in Paragraphs 32 - 35 above:

Penalty per Violation per Day Period of Noncompliance

$1,000 1st through 14th day

$1,500 15th through 30th day

$2,000 31st day and beyond

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37. SEP Compliance.

a. If Defendant has spent less than the amount set forth in Paragraph

17.d, above, in implementation of the SEP, Defendant shall pay a Stipulated Penalty equal to the

difference between the amount of total eligible SEP Project Costs incurred by Defendant and the

amount set forth in Paragraph 17.d.

b. If Defendant has completed the SEP, but the SEP is not

satisfactory, Defendant shall pay a Stipulated Penalty of $133,000 in addition to any penalty

required under Subparagraph a, above.

c. If Defendant halts or abandons work on the SEP, the Defendant

shall pay a Stipulated Penalty of $200,000 in addition to any penalty required under

Subparagraph a, above, and any penalties owing under Subparagraph d, below, for milestones

missed up to the time that the penalty under this Subparagraph accrues. The penalty under this

Subparagraph shall accrue as of the date specified for completing the SEP or the date

performance ceases, whichever is earlier.

d. If Defendant fails to comply with the schedule in Section VI or

Appendix A of this Consent Decree for implementing the SEP, Defendant shall pay Stipulated

Penalties for each failure to meet an applicable milestone, as follows:

Penalty Per Violation Per Day Period of Noncompliance

$250 1st through 14th day

$500 15th through 30th day

$1,000 31st day and beyond

Subject to Paragraph 37.a - c, above, such penalties shall accrue from the date Defendant was

required to meet each such milestone, until compliance with the milestone is achieved. 

38. Subject to the provisions of Paragraph 37.a - c, above, Stipulated Penalties

under this Section shall begin to accrue on the day after performance is due or on the day a

violation occurs, whichever is applicable, and shall continue to accrue until performance is

satisfactorily completed or until the violation ceases. Stipulated Penalties shall accrue simultaneously for separate violations of this Consent Decree. Defendant shall pay any Stipulated

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Penalty within 30 days of receiving the United States’ written demand. 

39. The United States may, in the unreviewable exercise of its discretion,

reduce or waive Stipulated Penalties otherwise due it under this Consent Decree.

40. Stipulated Penalties shall continue to accrue as provided in Paragraph 38,

above, during any Dispute Resolution, with interest on accrued penalties payable and calculated

at the rate established by the Secretary of the Treasury, pursuant to 28 U.S.C. § 1961, but need

not be paid until the following: 

a. If the dispute is resolved by agreement or by a decision of EPA 

that is not appealed to the Court, Defendant shall pay accrued penalties agreed upon or

determined to be owing, together with interest, to the United States within 30 days of the

effective date of the agreement or the receipt of EPA’s decision or order.

b. If the dispute is appealed to the Court and the United States

prevails in whole or in part, Defendant shall pay all accrued penalties determined by the Court to

be owing, together with interest, within 60 days of receiving the Court’s decision or order, except

as provided in Subparagraph c, below.

c. If any Party appeals the District Court’s decision, Defendant shall

pay all accrued penalties determined to be owing by the appellate court, together with interest,

within 15 days of receiving the final appellate court decision.

41. Defendant shall, as directed by the United States in its demand, pay

Stipulated Penalties owing to the United States by EFT in accordance with Section IV, Paragraph

9, above or by certified or cashier’s check in the amount due, payable to the “U.S. Department of

Justice,” referencing DOJ No. 90-5-2-1-06982, and delivered to: 

United States Attorney’s Office

Eastern District of California

Attn: Tina Baca, Financial Litigation Unit

501 “I” Street, Suite 10-100

Sacramento, CA 95814 

42. Defendant shall not deduct Stipulated Penalties paid under this Section in

calculating its federal income tax.

43. If Defendant fails to pay Stipulated Penalties according to the terms of this

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Consent Decree, Defendant shall be liable for interest on such penalties, as provided for in

28 U.S.C. § 1961, accruing as of the date payment became due.

44. Subject to the provisions of Section XII (Effect of Settlement/Reservation

of Rights) of this Consent Decree, the Stipulated Penalties provided for in this Consent Decree

shall be in addition to any other rights, remedies, or sanctions available to the United States for

Defendant’s violation of this Consent Decree or applicable law. Where a violation of this

Consent Decree is also a violation of the Act, Defendant shall be allowed a credit, for any

Stipulated Penalties paid, against any statutory penalties imposed for such violation.

IX. FORCE MAJEURE

45. For purposes of this Consent Decree, a “Force Majeure Event” is any

event arising from causes beyond the control of Defendant, its contractors, or any entity

controlled by Defendant that delays the performance of any obligation under this Consent Decree

and that cannot be overcome by Defendant’s diligent and timely efforts. “Diligent and timely

efforts” include anticipating any potential Force Majeure Event and addressing the effects of any

such event (a) as it is occurring and (b) after it has occurred, such that delay is minimized to the

extent possible. “Force Majeure” does not include Defendant’s financial inability to perform any

obligation under this Consent Decree.

46. Defendant shall provide notice orally or by electronic or facsimile

transmission to the United States as soon as possible, but not later than 72 hours after the time

Defendant first knew of, or by the exercise of due diligence, should have known of, a claimed

Force Majeure Event. Defendant shall also provide written notice to the United States, as

provided in Section XIV (Notices) of this Consent Decree, within seven days of the time

Defendant first knew of, or by the exercise of due diligence, should have known of, the event. 

The notice shall state the anticipated duration of any delay; its cause(s); Defendant’s past and

proposed actions to prevent or minimize any delay; a schedule for carrying out those actions; and

Defendant’s rationale for attributing any delay to a Force Majeure Event. Failure to provide oral

and written notice as required by this Paragraph shall preclude Defendant from asserting any

claim of force majeure, unless such failure was due to a Force Majeure Event. 

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47. If the United States agrees that a Force Majeure Event has occurred, the

time for Defendant to perform the activity delayed by the Force Majeure Event shall be extended

for the time period of the delay attributable to the Force Majeure Event. An extension of time to

perform the obligations affected by a Force Majeure Event shall not, by itself, extend the time to

perform any other obligation. Where the United States agrees to an extension of time, the

appropriate modification shall be made pursuant to Section XVIII (Modification) of this Consent

Decree. 

48. If the United States does not agree that a Force Majeure Event has

occurred, or does not agree to the extension of time sought by Defendant, the United States’

position shall be binding, unless Defendant invokes Dispute Resolution under Section X of this

Consent Decree. In any such dispute, Defendant bears the burden of proving, by a preponderance

of the evidence, that each claimed Force Majeure Event is a Force Majeure Event, that Defendant

gave the notice required by Paragraph 46, that the Force Majeure Event caused any delay

Defendant claims was attributable to that event, and that Defendant exercised diligent and timely

efforts to prevent or minimize any delay caused by the event.

X. DISPUTE RESOLUTION

49. Unless otherwise expressly provided for in this Consent Decree, the

dispute resolution procedures of this Section shall be the exclusive mechanism to resolve

disputes arising under or with respect to this Consent Decree. However, such procedures shall

not apply to actions by the United States to enforce obligations of the Defendant that Defendant

has not disputed in accordance with this Section.

50. Informal Dispute Resolution. Any dispute subject to dispute resolution

under this Consent Decree shall first be the subject of informal negotiations. The dispute shall be

considered to have arisen when the United States receives a written Notice of Dispute from

Defendant. Such Notice of Dispute shall state clearly the matter in dispute. The period of

informal negotiations shall not exceed 20 days from the date the United States receives the

Notice of Dispute, unless that period is modified by written agreement. If the Parties cannot

resolve a dispute by informal negotiations, then the position advanced by the United States shall

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be considered binding unless, within 20 days after receiving written notice from the United States

terminating informal negotiations, Defendant invokes formal dispute resolution procedures as set

forth below.

51. Formal Dispute Resolution. Defendant shall invoke formal dispute resolution procedures, within the time period provided in the preceding Paragraph, by serving on the

United States a written Statement of Position regarding the matter in dispute. The Statement of

Position shall include, but may not necessarily be limited to, any factual data, analysis, or opinion

supporting Defendant’s position and any supporting documentation relied upon by Defendant. 

52. The United States shall serve its Statement of Position within 30 days of

receipt of Defendant’s Statement of Position. The United States’ Statement of Position shall

include, but may not necessarily be limited to, any factual data, analysis, or opinion supporting

that position and any supporting documentation relied upon by the United States. The United

States’ Statement of Position shall be binding on Defendant, unless Defendant files a motion for

judicial review of the dispute in accordance with the following Paragraph.

53. Defendant may seek judicial review of the dispute by filing with the Court

and serving on the United States, in accordance with Section XIV (Notices) of this Consent

Decree, a motion requesting judicial resolution of the dispute. The motion must be filed within

10 days of receipt of the United States’ Statement of Position pursuant to the preceding

Paragraph. The motion shall contain a written statement of Defendant’s position on the matter in

dispute, including any supporting factual data, analysis, opinion, or documentation, and shall set

forth the relief requested and any schedule within which the dispute must be resolved for orderly

implementation of the Consent Decree.

54. The United States shall respond to Defendant’s motion within the time

period allowed by the Local Rules of this Court. Defendant may file a reply memorandum, to the

extent permitted by the Local Rules.

55. In any dispute brought under Paragraph 53, Defendant shall bear the

burden of demonstrating that its position clearly complies with this Consent Decree and the Act

and that Defendant is entitled to relief under applicable law. The United States reserves the right

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to argue that its position is reviewable only on the administrative record and must be upheld

unless arbitrary and capricious or otherwise not in accordance with law.

56. The invocation of dispute resolution procedures under this Section shall

not, by itself, extend, postpone, or affect in any way any obligation of Defendant under this

Consent Decree, unless and until final resolution of the dispute so provides. Stipulated Penalties

with respect to the disputed matter shall continue to accrue from the first day of noncompliance,

but payment shall be stayed pending resolution of the dispute as provided in Paragraph 40,

above. If Defendant does not prevail on the disputed issue, Stipulated Penalties shall be assessed

and paid as provided in Section VIII (Stipulated Penalties).

XI. INFORMATION COLLECTION AND RETENTION

57. The United States and its representatives, including attorneys, contractors,

and consultants, shall have the right of entry into the Facility, at all reasonable times, upon

presentation of credentials, to:

(1) monitor the progress of activities required under this Consent

Decree;

(2) verify any data or information submitted to the United States in

accordance with the terms of this Consent Decree;

(3) obtain samples and, upon request, splits of any samples taken by

Defendant or its representatives, contractors, or consultants; 

(4) obtain documentary evidence, including photographs and similar

data; and

(5) assess Defendant’s compliance with this Consent Decree.

58. Upon request, Defendant shall provide EPA or its authorized

representatives splits of any samples taken by Defendant. Upon request, EPA shall provide

Defendant splits of any samples taken by EPA.

59. Until the termination of this Consent Decree as specified in Paragraph 75,

Defendant shall retain, and shall instruct its contractors and agents to preserve, copies of all

documents, records, or other information (including documents, records, or other information in

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electronic form) in its or its contractors’ or agents’ possession or control, or that come into its or

its contractors’ or agents’ possession, and that relate to Defendant’s performance of its

obligations under this Consent Decree. This information-retention requirement shall apply

regardless of any contrary corporate or institutional policies or procedures. At any time during

this information-retention period, the United States may request copies of any documents,

records, or other information required to be maintained under this Paragraph.

60. At the conclusion of the information-retention period provided in the

preceding Paragraph (i.e., upon the termination of this Consent Decree), Defendant shall notify

the United States at least 90 days prior to the destruction of any documents, records, or other

information subject to the requirements of the preceding Paragraph, and, upon request by the

United States, Defendant shall deliver any such documents, records, or other information to EPA. 

Defendant may assert that certain documents, records, or other information are privileged under

the attorney-client privilege or any other privilege recognized by federal law. If Defendant

asserts such a privilege, it shall provide the following: (1) the title of the document, record, or

information; (2) the date of the document, record, or information; (3) the name and title of each

author of the document, record, or information; (4) the name and title of each addressee and

recipient; (5) a description of the subject of the document, record, or information; and (6) the

privilege asserted by Defendant. However, no documents, records, or other information created

or generated pursuant to the requirements of this Consent Decree shall be withheld on grounds of

privilege.

61. Defendant may also assert that information required to be provided under

this Section is protected as Confidential Business Information (“CBI”) under 40 C.F.R. Part 2. 

As to any information that Defendant seeks to protect as CBI, Defendant shall follow the

procedures set forth in 40 C.F.R. Part 2. 

62. This Consent Decree in no way limits or affects any right of entry and

inspection, or any right to obtain information, held by the United States pursuant to applicable

federal laws, regulations, or permits, nor does it limit or affect any duty or obligation of

Defendant to maintain documents, records, or other information imposed by applicable federal or

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state laws, regulations, or permits.

XII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS 

63. This Consent Decree resolves the civil claims of the United States for the

violations alleged in the Complaint filed in this action through the date of lodging or alleged in

the following Notices of Violation: Docket Nos. R9-99-13, R9-99-14, R9-02-07, R9-02-18, and

R9-03-08. 

64. The United States reserves all legal and equitable remedies available to

enforce the provisions of this Consent Decree, except as expressly stated in Paragraph 63. This

Consent Decree shall not be construed to limit the rights of the United States to obtain penalties

or injunctive relief under the Act or implementing regulations, or under other federal laws,

regulations, or permit conditions, except as expressly specified in Paragraph 63. The United

States further reserves all legal and equitable remedies to address any imminent and substantial

endangerment to the public health or welfare or the environment arising at, or posed by,

Defendant’s Facility, whether related to the violations addressed in this Consent Decree or

otherwise.

65. This Consent Decree is not a permit, or a modification of any permit,

under any federal, State, or local laws or regulations. Defendant is responsible for achieving and

maintaining compliance with all applicable federal, State, and local laws, regulations, and

permits; and Defendant’s compliance with this Consent Decree shall be no defense to any action

commenced pursuant to any such laws, regulations, or permits. The United States does not, by

its consent to the entry of this Consent Decree, warrant or aver in any manner that Defendant’s

compliance with any aspect of this Consent Decree will result in compliance with provisions of

the Act, 42 U.S.C. §§ 7401 - 7671q, or with any other provisions of federal, State, or local laws,

regulations, or permits.

66. This Consent Decree does not limit or affect the rights of Defendant or of

the United States against any third party, not a party to this Consent Decree, nor does it limit the

rights of any third party, not a party to this Consent Decree, against Defendant, except as

otherwise provided by law.

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67. This Consent Decree shall not be construed to create rights in, or grant any

cause of action to, any third party not a party to this Consent Decree.

XIII. COSTS

68. The Parties shall bear their own costs of this action, including attorneys’

fees, except that the United States shall be entitled to collect the costs (including attorneys’ fees)

incurred in any action necessary to collect any portion of the civil penalty or any Stipulated

Penalties due but not paid by Defendant.

XIV. NOTICES

69. Unless otherwise specified herein, whenever notifications, submissions, or

communications are required by this Consent Decree, they shall be made in writing and shall be

sent by certified mail, express mail, or similar overnight mail delivery with return receipt

requested and addressed as follows:

To the United States:

Chief, Environmental Enforcement Section

Environment and Natural Resources Division

U.S. Department of Justice

Box 7611 Ben Franklin Station

Washington, D.C. 20044-7611

Re: DOJ No. 90-5-2-1-06982

and

Chief, Environmental Enforcement Section

Attn: DOJ # 90-5-2-1-06982 (Mullaney) 

United States Department of Justice

301 Howard Street, Suite 1050

San Francisco, California 94105

and

Kara Christenson, ORC-2

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, California 94105

To EPA:

Director, Air Division (AIR-1)

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, California 94105

Attention: Cyntia Steiner

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To Defendant:

Saint-Gobain Containers, Inc.

1509 South Macedonia Avenue

Muncie, IN 47307

ATTN: President and CEO

and

Saint-Gobain Containers, Inc.

1509 South Macedonia Avenue

Muncie, IN 47307

ATTN: Sr. VP and General Counsel

and

Saint-Gobain Containers, Inc.

1509 South Macedonia Avenue

Muncie, IN 47307

ATTN: VP - Environmental, Health and Safety

70. Any Party may, by written notice to the other Party, change its designated

notice recipient or notice address provided above.

71. Notices submitted pursuant to this Section shall be deemed submitted

upon mailing, unless otherwise provided in this Consent Decree or by mutual agreement of the

Parties in writing.

XV. EFFECTIVE DATE

72. The Effective Date of this Consent Decree shall be the date upon which

this Consent Decree is entered by the Court.

XVI. RETENTION OF JURISDICTION

73. The Court shall retain jurisdiction over this case until termination of this

Consent Decree, for the purpose of resolving disputes arising under this Decree or entering

orders modifying this Decree, pursuant to Sections X and XVII, or effectuating or enforcing

compliance with the terms of this Decree.

XVII. MODIFICATION

74. The terms of this Consent Decree may be modified only by a subsequent

written agreement signed by the Parties. Where the modification constitutes a material change to

any term of this Decree, it shall be effective only upon approval by the Court.

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XVIII. TERMINATION

75. After Defendant has complied with all requirements relating to Paragraphs

5 (if applicable), 11, 12, 13.a., 13.b., and 15, and Section VI of this Consent Decree, and has paid

the civil penalty and any accrued Stipulated Penalties as required by this Consent Decree,

Defendant may serve upon the United States a Request for Termination, stating that Defendant

has satisfied those requirements, together with all necessary supporting documentation.

76. Following receipt by the United States of Defendant’s Request for

Termination, the Parties shall confer informally concerning the Request and any disagreement

that the Parties may have as to whether Defendant has satisfactorily complied with the requirements for termination of this Consent Decree. If the United States agrees that the Decree may be

terminated, the Parties shall submit, for the Court’s approval, a joint stipulation terminating the

Decree.

77. If the United States does not agree that the Decree may be terminated, 

Defendant may invoke Dispute Resolution under Section X of this Decree. However, Defendant

shall not seek Dispute Resolution of any dispute regarding termination, under Paragraph 51 of

Section X, until 60 days after service of its Request for Termination.

XIX. PUBLIC PARTICIPATION

78. This Consent Decree shall be lodged with the Court for a period of not less

than 30 days for public notice and comment in accordance with 28 C.F.R. § 50.7. The United

States reserves the right to withdraw or withhold its consent if the comments regarding the

Consent Decree disclose facts or considerations indicating that the Consent Decree is inappropriate, improper, or inadequate. Defendant consents to entry of this Consent Decree without

further notice.

XX. SIGNATORIES/SERVICE

79. Each undersigned representative of Defendant and the Assistant Attorney

General for the Environment and Natural Resources Division of the Department of Justice or her

delegate certifies that he or she is fully authorized to enter into the terms and conditions of this

Consent Decree and to execute and legally bind the Party he or she represents to this document.

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80. This Consent Decree may be signed in counterparts, and its validity shall

not be challenged on that basis.

81. Defendant agrees not to oppose entry of this Consent Decree by the Court

or to challenge any provision of the Decree, unless the United States has notified Defendant in

writing that it no longer supports entry of the Decree.

82. Defendant agrees to accept service of process by mail with respect to all

matters arising under or relating to this Consent Decree and to waive the formal service

requirements set forth in Rules 4 and 5 of the Federal Rules of Civil Procedure and any

applicable Local Rules of this Court including, but not limited to, service of a summons.

XXI. INTEGRATION

83. This Consent Decree constitutes the final, complete, and exclusive

agreement and understanding between the Parties with respect to the settlement embodied in the

Decree and supersedes all prior agreements and understandings, whether oral or written,

concerning the settlement embodied herein. No other document, nor any representation,

inducement, agreement, understanding, or promise, constitutes any part of this Decree or the

settlement it represents, nor shall it be used in construing the terms of this Decree.

XXII. FINAL JUDGMENT

84. Upon approval and entry of this Consent Decree by the Court, this Consent

Decree shall constitute a final judgment of the Court as to the United States and Defendant. The

Court finds that there is no just reason for delay and therefore enters this judgment as a final

judgment under Fed. R. Civ. P. 54 and 58.

XXIII. APPENDICES

85. The following appendices are attached to and incorporated into this

Consent Decree:

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Appendix A, which is entitled “Instructions for Transferring Emission Reduction Credits

to The Environmental Resources Trust, Inc;” and

Appendix B, regarding contracts between SGCI and a third party contractor.

ORDER

IT IS SO ORDERED:

________ROBERT E. COYLE_________

United States District Judge

DATED:___June 20, 2005_____

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Consent Decree -40-

FOR PLAINTIFF UNITED STATES OF AMERICA:

Dated:_________________ _________________________________

KELLY A. JOHNSON

Acting Assistant Attorney General

Environment & Natural Resources Division

U.S. Department of Justice

Dated:_________________ _________________________________

ROBERT D. MULLANEY

Trial Attorney

Environmental Enforcement Section

U.S. Department of Justice

301 Howard Street, Suite 1050

San Francisco, California 94105

Telephone: (415) 744-6491

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Consent Decree -41-

Dated:_________________ _________________________________

THOMAS V. SKINNER

Acting Assistant Administrator

Office of Enforcement and Compliance Assurance

U.S. Environmental Protection Agency

1200 Pennsylvania Avenue

Mail Code 2201A

Washington, D.C. 20460

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Consent Decree -42-

Dated:_________________ _________________________________

WAYNE NASTRI

Regional Administrator

U.S. Environmental Protection

 Agency, Region 9

San Francisco, CA

OF COUNSEL:

KARA CHRISTENSON

Senior Counsel

U.S. Environmental Protection Agency, Region 9

75 Hawthorne Street

San Francisco, CA 94105 

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Consent Decree -43-

FOR DEFENDANT SAINT-GOBAIN CONTAINERS, INC.:

Dated:_________________ _________________________________

JEFF FORGANG

Vice President - Environmental, Health & Safety 

Saint-Gobain Containers, Inc.

1509 South Macedonia Avenue

Muncie, IN 47307

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Consent Decree -44-

APPENDIX A

INSTRUCTIONS FOR TRANSFERRING EMISSION REDUCTION CREDITS

TO THE ENVIRONMENTAL RESOURCES TRUST, INC.

1. Within 30 days after receiving any Emission Reduction Credits (“ERCs”) that are

required to be transferred to The Environmental Resources Trust, Inc. (“ERT”) by Paragraph

17.e. of this Consent Decree, Defendant shall request that the San Joaquin Valley Unified Air

Pollution Control District (“SJVUAPCD”) transfer ownership of the ERCs to ERT.

2. Title to the ERCs shall be transferred to the following entity:

The Environmental Resources Trust, Inc.

1612 K Street, N.W., Suite 1400

Washington, D.C. 20006

Phone: (202) 785-8577

EIN: 31-1475919

3. For all ERCs required to be transferred to ERT, Defendant shall request

SJVUAPCD to issue original ERC certificates in ERT’s name and after receipt shall physically

transfer those certificates to ERT accompanied by a letter that assigns all rights and title to the

ERCs to ERT. If after good faith efforts, Defendant is unable to obtain original ERC certificates

in ERT’s name, Defendant shall: (1) endorse the ERC certificates to ERT; (2) transfer

possession of the endorsed ERC certificates to ERT; (3) assign all rights and title to the ERCs to

ERT; and (4) request that SJVUAPCD register the ERCs in ERT’s name. Defendant shall pay

all costs and fees, if any, associated with such assignment, transfer, and registration.

4. When Defendant physically transfers ERC certificates to ERT or otherwise

notifies ERT of the transfer of ERCs, Defendant shall provide the following notification:

“These Emission Reduction Credits (“ERCs”) are being transferred to The Environmental

Resources Trust, Inc. (“ERT”) subject to the following restrictions: ERT shall retire or

hold these ERCs in order to achieve a permanent improvement in air quality in the San

Joaquin Valley Air Basin. These restrictions shall apply in perpetuity to all ERCs

acquired from Defendant and held by ERT.” 

5. Any correspondence between Defendant and ERT shall refer to this Consent

Decree, its date of entry, the case name of United States v. Saint-Gobain Containers, Inc., the

Case Number and judicial District (E.D. Cal.), and DOJ# 90-5-2-1-06982.

6. Defendant shall provide the United States and EPA, in accordance with Section

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XIV (Notices) of this Consent Decree, with copies of all correspondence sent or received by

Defendant related to the transfer of ERCs to ERT within 10 days after sending or receiving the

correspondence. This notice requirement applies to all correspondence with any government

entity or with ERT.

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APPENDIX B

The following provision shall be included in any contract between SGCI and any third

party contractor covering any on-site repair, installation, construction, rebuilding or maintenance

work required under this Consent Decree:

Contractor acknowledges that it has received a copy of the Consent Decree in United

States of America v. Saint-Gobain Containers, Inc., Civil No. _______, and understands

that its work under this contract is undertaken pursuant to the provisions of that Consent

Decree.

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