NPDES PERMIT NO. PR0000591

AUTHORIZATION TO DISCHARGE UNDER THE

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

In compliance with the provisions of the Clean Water Act, as amended, 33 U.S.C. §1251

et. seq. (the "Act"),

Bacardi Corporation

PO Box 363549

San Juan, Puerto Rico 00936 - 3549

hereinafter referred to as "the permittee" is authorized to discharge from a facility located

at

Bacardi Corporation

State Road No. 165, Km 2.6

Industrial Area

Cataño, Puerto Rico 00632

to receiving water

Atlantic Ocean

in accordance with effluent limitations, monitoring re quirements and other conditions set

forth in Parts I and II hereof. All references to T itle 40 of the Code of Federal Regulations are to regulations that are in effect on the effective date of this permit, including all amendments thereto published in the Federal Regi ster. Unless otherwise specified herein, all terms are defined as provided in the applicable regulations under Title 40 of the Code of Federal Regulations.

This permit shall become effective on July 1, 2008. This permit and the authorization to discharge shall expire at midnight, June 30, 2013.

Signed this day of

___________________________ Walter E. Mugdan

Director Division of Environmental Planning

and Protection U.S. Environmental Protection Agency Region IIPart IPage 2 of 41Permit No. PR0000591TABLE A-1 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013, the permittee is authorized to discharge from outfall serial number001 (treated process, sanitary, utility, and miscellaneouswastewater). Such discharge shall be limited and monitored by the permittee as specifiedbelow:Effluent CharacteristicsGross Discharge LimitationsMonitoring Requirementskg/day (lbs/day)Other Units (specified)MeasurementFrequencySampleTypeMonthly Avg.Daily Max.Monthly Avg.Daily Max.Flow m3/day (MGD)4,57,570.80 (2.0)Continuous RecordingArsenic (As) (μg/l)2,436.4MonthlyGrabBOD5(mg/l)1,2,3,4α17,700MonthlyCompositeCadmium (Cd) (μg/l)2,3,416.00MonthlyGrabColor (Pt-Co units)2,3,498,621MonthlyGrabCopper (Cu) (μg/l)2,3,43,836MonthlyGrabCyanide, Free (μg/l)2,3,4βγ40MonthlyGrabDissolved Oxygen (mg/l)1,2,3,4-----DailyGrabLead (Pb) (μg/l)2,3,443.8MonthlyGrabMercury (Hg) (μg/l)2,3,4γ0.67MonthlyGrabPart IPage 3 of 41Permit No. PR0000591TABLE A-1 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013, the permittee is authorized to discharge from outfall serial number001 (treated process, sanitary, utility, and miscellaneouswastewater). Such discharge shall be limited and monitored by the permittee as specifiedbelow:Effluent CharacteristicsGross Discharge LimitationsMonitoring Requirementskg/day (lbs/day)Other Units (specified)MeasurementFrequencySampleTypeMonthly Avg.Daily Max.Monthly Avg.Daily Max.Nickel (Ni) (μg/l)2,3,4569MonthlyGrabNitrogen (NO3, NO2, NH3) (mg/l)2,3,4207.000MonthlyGrabOil and Grease (mg/l)2,3,4The waters of Puerto Rico shall be substantially freefrom floatingnon-petroleum oils and greases as well as petroleum derived oils andgreases.Twice perMonthGrabpH (SU)2,3,4Shall always lie between 6.0 and 9.0.DailyGrabRadioactive Materials (picocuries/l)2,4-----φGrabSilver (Ag) (μg/l)2,3,481.2MonthlyGrabSolids and Other Matter2,4The waters of Puerto Rico shall not contain floating debris, scum andother floating material attributable to discharges in amounts sufficientto be unsightly or deleterious to the existing or designateduses of thewaterbody.--------Part IPage 4 of 41Permit No. PR0000591TABLE A-1 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013, the permittee is authorized to discharge from outfall serial number001 (treated process, sanitary, utility, and miscellaneouswastewater). Such discharge shall be limited and monitored by the permittee as specifiedbelow:Effluent CharacteristicsGross Discharge LimitationsMonitoring Requirementskg/day (lbs/day)Other Units (specified)MeasurementFrequencySampleTypeMonthly Avg.Daily Max.Monthly Avg.Daily Max.Sulfide (S) (μg/l)2,3δ@(undissociated H2S)108,401MonthlyGrabSurfactants as MBAS1,2,3,4(μg/l)1,657MonthlyGrabSuspended, Colloidal orSettleable Solids (ml/l)1,2,3#Solids from wastewater sources shall not cause deposition in or bedeleterious to the existing or designated uses of the waters.DailyGrabTaste and Odor Producing Substances2Shall contain none in amounts that will render any undesirable taste orodor to edible aquatic life.--------TemperatureEF (EC)2,3105.8 (41)DailyGrabThallium (TI) (μg/l)2,3,436.3MonthlyGrabTotal Coliforms(colonies/100ml)1,2,3,4The coliform geometric mean of a series of representative samples (atleast five samples) of the waters taken sequentially ina given instanceshall not exceed 10,000 colonies/100 ml.WeeklyGrabPart IPage 5 of 41Permit No. PR0000591TABLE A-1 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013, the permittee is authorized to discharge from outfall serial number001 (treated process, sanitary, utility, and miscellaneouswastewater). Such discharge shall be limited and monitored by the permittee as specifiedbelow:Effluent CharacteristicsGross Discharge LimitationsMonitoring Requirementskg/day (lbs/day)Other Units (specified)MeasurementFrequencySampleTypeMonthly Avg.Daily Max.Monthly Avg.Daily Max.Turbidity (NTU)2,3,411,498MonthlyGrabZinc (Zn) (μg/l)2,3,43269.00MonthlyGrabPart IPage 6 of 41Permit No. PR0000591TABLE A-1 Notes:_____________________________To comply with the monitoring requirements specified above, samples shall be taken at point of discharge 001.All flow measurements shall achieve accuracy within the range of ± 10%.The wastewaters to be discharged from Bacardi, through the discharge point 001 are the following:a. boiler blowdown, wash and extractionb. mosto (distillation, fermentation and washes)c. clarification plant washd. anaerobic treatment plant discharges - cooling tower.e. flavor steam traps.f. sulfur plant rinses and condensate.g. bottling plant and broken bottles wash.h. process washes (lock).i. molasses unloading and seal flush.j. fermentation floor drains.k. distillery floor wash.l. barrel wash.m. cooling tower wash.n. cooling tower blowdown and other.o. CO2 plant condensate and washes.p. sanitary plant (discharge 003).q. sanitary plant (discharge 004).r. process water treatment steam traps.αThe effluent limitation for BOD5is based on the Mixing Zone Application for the Puerto Rico Aqueduct and Sewer Authority (PRASA)Puerto Nuevo and Bayamón facilities, and the Bacardi Corporation, after determining that there is a reasonable assurance that this limit willnot cause violations to the water quality standard for Dissolved Oxygen for Class SC.φThe permittee shall implement a monthly monitoring program using the analytical method approved by EPA with the lowest possibledetection level, in accordance with Section 6.2.3 of thePuerto Rico Water Quality Standards Regulation (PRWQSR)as amended, for one (1)year period, after which they will be conducted annually.The monitoring program shall commence no later than thirty (30) days after thePart IPage 7 of 41Permit No. PR0000591EQB's written approval of the Quality Assurance ProjectPlan (QAPP). The QAPP must be submitted for evaluationand approval of EQB nolater than July 1, 2008. The results of the monitoring program shall be submitted to EQB and EPA Region II no later than sixty (60) days ofcompletion of the one year monitoring program. Based on the evaluation of the results obtained, EQB will determine if an effluent limitationis necessary for these parameters. In such case theWater Quality Certificate will be reopened to include theapplicable effluent limitation ifconsidered necessary.EPA Addendum: the one year monitoring program must be completed and submitted by June 30, 2013.βThe samples shall be analyzed using the method approved byEPA in letter dated February 20, 2007.γSee Special Condition number 3.δSee Special Condition number 5.# The permittee shall perform the tests for SettleableSolids.@ The permittee shall use the approved EPA analytical method with the lowest possible detection limit, currently, EPA Method 376.2, StandardMethods 4500-S2- D (18th Edition), or HACH Company Method 8131 for the determination of the dissolved Sulfide (as S) concentration inthe sample. Using the dissolved Sulfide concentration, the permittee shall calculate the Undissociated Hydrogen Sulfide concentration usingStandard Methods Method 4500-S2- F (18th Edition). If the sample result for dissolved Sulfide is below the detection limit of EPA Method376.2 or Standard Methods 4500-S2- D (18th Edition), i.e., < 100μg/l, then the permittee has demonstrated that the sampleresult forUndissociated Hydrogen Sulfide is below that same detection limit, and that compliance with the permit limitof 2μg/l for UndissociatedHydrogen Sulfide was achieved.1, 2, 3, 4, 5, 6, and 7 See the endnotes to the SpecialConditionsPart IPage 8 of 41Permit No. PR0000591TABLE A-2 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2010** the permittee is authorized to discharge from outfall serialnumbers 001 the combined wastewaters described below Table A-1. Such discharge shall be limited and monitored by the permittee as specifiedbelow:Effluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsDaily Maximum*MeasurementFrequencySampleTypeEnterococci (colonies/100 ml)1,2,4,7----WeeklyGrabFecal Coliforms (colonies/100ml)1,2,3,41,200,000WeeklyGrabNotes:To comply with the monitoring requirements specified above, samples shall be taken at the outfall of dischargeserial number 001.* The geometric mean of a series of representative samples (at least five samples) of the water taken sequentially in a given instance.** See Special Condition 18.bEPA Addendum: A permit modification finalized by EPA shall be the sole mechanism by which the interim effluent limitations for Enterococciand/or Fecal Coliforms may be extended beyond June 30, 2010.1, 2, 3, 4, 5, 6, and 7 See the endnotes to the SpecialConditionsPart IPage 9 of 41Permit No. PR0000591TABLE A-3 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2010* and lasting through thepermit expiration date, the permittee is authorized to discharge from outfallserial numbers 001 the combined wastewaters described belowTable A-1. Such discharge shall be limited and monitored by the permittee asspecified below:Effluent CharacteristicsGross Discharge LimitationsMonitoringRequirementsOther Units (specified)MeasurementFrequencySampleTypeEnterococci (colonies/100 ml)1,2,4,8The enterococci density in terms of geometric mean ofat least 5representative samples taken sequentially shall not exceed35/100 ml. No single sample should exceed the upperconfidence limit of 75% as the log standard deviation untilsufficient site data exist to establish a site-specificlog standarddeviation.Weekly GrabFecal Coliforms(colonies/100ml)1,2,3,4The coliform geometric mean of a series of representativesamples (at least five samples) of the waters taken sequentiallyin a given instance shall not exceed 200 colonies/100 ml. Notmore than 20 percent of the samples shall exceed 400colonies/100 ml.Weekly GrabNotes:To comply with the requirements specified above, samples shall be taken at the outfall of discharge serial number 001.* See Special Condition 18b.Part IPage 10 of 41Permit No. PR0000591TABLE A-4 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013 the permittee is authorized to discharge from internalmonitoringpoint 002. Such discharge shall be limited and monitored by the permittee as specified below:Effluent CharacteristicsMonitoring RequirementsQuarterly RollingAverage (QRA)*Monthly Avg.kg/day (lb/day)Daily Maximumkg/day (lb/day)MeasurementFrequencySampleTypeFlow m3/day (MGD)----Continuous RecordingBOD530,000 (66,200)42,400 (93,280)WeeklyCompositeTotal Suspended Solids (mg/l)45,200 (99,440)71,200 (156,640)WeeklyCompositeInfluent BOD5Concentration (mg/l)Monitor influent BOD5 concentration on a weekly basisWeeklyCompositeEffluent BOD5Concentration (mg/l)Monitor influent BOD5 concentration on a weekly basisWeeklyComposite(A) Influent QRA BOD5Concentration (mg/l)1Calculate and report QRA Influent BOD5concentration on a monthly basis.*(B) QRA Influent BOD5Loading (lb/day)2Calculate and report QRA Influent BOD5loading on a monthly basis.*(C) QRA Effluent BOD5Loading (lb/day)3Calculate and report QRA Effluent BOD5loading on a monthly basis.*Tiered QRA Percentage Removal RequirementWhen QRA Influent BOD5Concentration(Row (A)) is$23,600 mg/l4Calculate and report QRA Percentage Removal monthly.QRA Percentage Removal shall be no less than 70%When QRA Influent BOD5Concentration(Row (A)) is < 23,600 mg/l4Calculate and report QRA Percentage Removal monthly.Part IPage 11 of 41Permit No. PR0000591Table A-4 Notes:*All Quarterly Rolling Averages (QRA) shall be calculated on a monthly basis, using the previous thirteen weekly results. Calculations shall bereported on a spreadsheet as a supplement to the DMR. This spreadsheet shall include all flow rates, concentrations,calculated loadings, andthirteen weeks of results used to calculated any QRA numbers.1The QRA Influent BOD5Concentration to the anaerobic digesters shall be calculated over the previous thirteen weeks and reported. Thecalculated result will determine whether the limitationof a minimum of 70% removal rate applies. This value must be reported in the DMR.2The QRA Influent BOD5Loading shall be calculated based on the influent concentration and the flow. This calculation must be included in thesupplement to the DMR.3The QRA Effluent BOD5Loading shall be calculated based on the effluent concentration and flow. This calculation must be included inthesupplement to the DMR.4The QRA Percentage Removal for BOD5shall be the calculated as the percentage difference between the QRA Influent BOD5Loading (Row(B)) results, and the QRA Effluent BOD5Loading results (Row (C)). This calculation shall beincluded in the supplement to the DMR. Thecalculated value shall be reported in the DMR.Internal monitoring point 002 is in the vicinity of a flow measuring device after anaerobic treatment, and is designed to monitor only all effluentflows from the anaerobic digesters prior to mixing withany other waste streams.Production data for the days of sampling for each month,in proof gallons per day, is required to be submitted with the DMR.Part IPage 12 of 41Permit No. PR0000591TABLE A-4 EFFLUENT LIMITATIONS AND REQUIREMENTSDuring the period beginning on July 1, 2008 and lasting through June30, 2013, the permittee is authorized to discharge from outfall serial numbers003 and 004 (treated sanitary wastewater). Such discharge shall be limited and monitored by the permittee as specified below:Effluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsOther Units (specified)MeasurementFrequencySampleTypeMonthly Avg.7-day AverageFlow m3/day (MGD)----Continuous RecordingBOD5(mg/l) *3045MonthlyCompositeTotal Suspended Solids (mg/l) *3045MonthlyComposite* The arithmetic mean of the values for effluent samples collected in a period of 30 consecutive days shall not exceed 15 percent of the arithmeticmeans of the values of influent samples collected at approximately the same time during the same period (85 percent removal).To comply with the monitoring requirements specified above, samples shall be taken at sampling location 003 and 004 inthe vicinity of the sanitarywastewater treatment plant. All flow measurements shall achieve accuracy within the range 10%.Part I Page 13 of 41

Permit No. PR0000591

SPECIAL CONDITIONS

These special conditions are an integral part of the Water Quality Certificate (WQC) and shall be incorporated into the NPDES permit in order to satisfy the provisions of Section 301(b)(1)(C) of the Federal Clean Water Act (CWA) as amended (33 U.S.C. 466 et. seq.):

1. The flow of discharge 001 shall not exceed the limitati on of 7,570.80 m3/day (2.0 MGD) as daily maximum. No increase in flow shall be authorized without a recertification from the Puerto Rico Environmental Quality Board (EQB). 1,4,5

2. No toxic substances shall be discharged, in toxic con centrations, other than those allowed as specified in the NPDES permit. Those toxic substances i ncluded in the Permit Renewal Application, but not regulated by the permit, shall not exc eed those concentrations as specified in the applicable regulatory limitations. 1,2

3. The samples taken for the analysis of cyanide and mer cury shall be analyzed using the analytic method approved by the Environmental Protection Agency (EPA) wi th the lowest possible

detection level, in accordance with Section 6.2.3 of the Puerto Rico Water Quality Standards Regulation (PRWQSR), as amended. 4

4. All sample collection, preservation, and analysis s hall be carried out in accordance with the Code of Federal Regulation (CFR) Number 40, Part 136. A licens ed chemist authorized to practice the profession in Puerto Rico shall certify all chemical a nalyses. All bacteriological tests shall be certified by a licensed microbiologist or a medical techni cian authorized to practice the profession in Puerto Rico. 1,3

5. The permittee shall use the approved EPA analytical m ethod, with the lowest possible detection

limit, in accordance with the 40 CFR Part 136 for Sulfide (as S). Also, the permittee shall complete the calculations specified in Method 4500-S-2 F, Calculation of Un-ionized Hydrogen

Sulfide, of Standards Methods 18th Edition, 1992, to determine th e concentration of

undissociated H 2 S. If the sample results of Dissolved Sulfide are be low the detection limit of the approved EPA method established in the 40 CFR Part 136, then, t he concentration of

undissociated H 2 S should be reported as “below detection limit”. 2,3

6. The solid wastes (sludge, screenings and grit) generated due to the treatment system operation

shall be:

a. Disposed in compliance with the applicable requiremen ts established in the 40 CFR, Part 257. A semiannual report shall be submitted to EQB and EPA notifying the method or methods used to dispose the solid wastes generated in the fa cility. Also, a copy of the approval or permit applicable to the disposal method used sha ll be submitted, if any.

b. Transported adequately in such way that access is not gained to any body of water or soil. In the event of a spill of solid waste on land or int o a body of water, the permittee shall notify the Point Sources Permits Division of EQB’s Wa ter Quality Area in the following

manners:Part I Page 14 of 41

Permit No. PR0000591

1) By telephone communication within a term no longer th an twenty four (24) hours after the spill (787-767-8073).

2) By letter, within a term no longer than five (5) days after the spill.

These notifications shall include the following informati on:

a) Spill material b) Spill volume c) Measures taken to prevent the spill material from ga ining access to any body of water

This special condition does not relieve the permittee fro m its responsibility to obtain the corresponding permits from the EQB’s Solid Wastes Progr am and other state and federal agencies, if any. 4,6

7. A log book should be kept for the material removed fro m the treatment system, such as sludge, screenings and grit, detailing the following items:

a. Removed material, date and source of it. b. Approximate volume and weight. c. Method by which it is removed and transported. d. Final disposal and location.

e. Person that offers the service.

A copy of the Non-Hazardous Solid Waste Collection and Transportation Service Permit issued by the authorized official from the EQB should be attache d to the log book. 3

8. The sludge produced within the facility due to the operation of the treatment system shall be analyzed and all constituents shall be identified as requi red by “Standards for the Use or Disposal of Sewage Sludge” (40 CFR Part 503). The sludge shall be disposed properly in such manner that water pollution or other adverse effects to surface waters or to ground water do not

occur. 4,6

9. If any standard or prohibition to the sanitary sludge disp osal is promulgated and said prohibition or standard is more stringent than any condition, restr iction, prohibition or standard contained in the NPDES permit, such permit shall be modified according ly or revoked and reissued to be adjusted with regard to such prohibition or standard. 6

10. No changes in the design or capacity of the treatmen t system will be permitted without the previous authorization of EQB. 5

11. Prior to the construction of any additional treatment systems or prior to the modification of the existing one, the permittee shall obtain the approval of the engineering report, plans and specifications from EQB. 5

12. The permittee shall install, maintain and operate all water pollution control equipment in such manner as to be in compliance with the applicable Rule s and Regulations. 1,4Part I Page 15 of 41

Permit No. PR0000591

13. The flow measurement device for the discharge 001 shall be periodically calibrated and properly

maintained. Calibration and maintenance records must be kept in compliance with the applicable Rules and Regulations. 4,5

14. The sampling point for discharge 001 shall be located imme diately after the primary flow measuring device of the effluent of the facility.

15. The sampling point for discharge 001 shall be labeled with an 18 inches x 12 inches (minimum dimensions) sign that reads as follows:

"PUNTO DE MUESTREO PARA LA DESCARGA 001"

16. All water or wastewater treatment facilities, whe ther publicly or privately owned, must be operated by a person licensed by the Potable Water and Wast ewater Treatment Plants Operators Examining Board of the Commonwealth of Puerto Rico. 4

17. The EQB has defined and authorized a Mixing Zone (MZ) pursuan t to Article 5 of the PRWQSR. 3

a. The MZ is delineated by the following points (See Diagra m-I on the following page).

b. The MZ is defined for the following parameters:

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at the Edge

of the MZ

Arsenic (As) (μg/l) 36 1.4 Cadmium (Cd) (μg/l) 16.00 9.30 Color (Pt-Co) 98,621 * Copper (Cu) (μg/l) 3,836 3.1 Cyanide, Free (CN) (μg/l) 40 1 Dissolved Oxygen (mg/l) Monitoring Only ≥ 4.0 Lead (Pb) (μg/l) 43.8 8.1 Mercury (Hg) (μg/l) 0.6 0.051 Nickel (Ni) (μg/l) 569 8.2 Nitrogen (mg/l) (NO 2 , NO 3 , NH 3 ) 207.000 5.000 pH (SU) 6.0 - 9.0 7.3 - 8.5 Silver (Ag) (μg/l) 81.2 2.0

Sulfide (μg/l) (undissociated H 2 S) 108,401 2

Surfactants (MBAS) (μg/l) 1,657 500

Temperature ° F ( ° C) 105.8 (41) ** Thallium (Tl) (μg/l) 36.3 6.3 Turbidity (NTU) 11,498 10 Zinc (Zn) (μg/l) 3,269.00 81.00

* The color at the edge of the mixing zone shall not exceed the color of the receiving water body (background monitoring station). ** No heat may be added to the waters of Puerto Rico, whic h would cause the temperature of any site to exceed 90 o F (32.2 o C).Part I Page 16 of 41

Permit No. PR0000591

DIAGRAM – 1: Bacardi Corporation Mixing Zone

Geographic Coordinates *

Point 1 Lat. 18o 29.179' Long. 66o 08.516'

Point 2 Lat. 18o 29.202' Long. 66o 08.509'

Point 3 Lat. 18o 29.112' Long. 66o 08.336'

Point 4 Lat. 18o 29.096' Long. 66o 08.140'

Point 5 Lat. 18o 29.074' Long. 66o 08.147'

Point 6 Lat. 18o 29.089' Long. 66o 08.343'

* NAD 83 State Plane Coordinates

1 2

5 4

3

6 BGPart I Page 17 of 41

Permit No. PR0000591

The diffuser configuration is a one hundred twenty (120) degr ee “Y” type consisting of two (2) legs of one thousand ten (1,010) feet long and a constant diameter of eighty four (84) inches. A total of one hundred two (102) ports along each diffuser’s leg shall be ope ned. There are twenty (20) ports of seven (7) inches at the end of each diffuser’s leg and eighty two (82) ports of six (6) inches between the “Y” split and the larger ports at the end of each diffuser’s leg. The ports discharge in alternate directions at a constant spacing of ten (10) feet.

c. The permittee shall conduct annually definitive acute a nd chronic toxicity tests using the organisms Mysidopsis bahia, Cyprinodon variegatus and Arbacia punctulata for the wastewater discharge identified as 001. See Special Condit ion No. 19 for further toxicity testing requirements.

d. The toxicity test shall be conducted according to the m ost recent editions of the following publications of EPA:

1) Methods for Measuring the Acute Toxicity of Effluents and Receiving Waters to Freshwater and Marine Organisms , (EPA-821-R-02-012) Fifth Edition, October

2002.

2) Short Term Methods for Estimating the Chronic Toxicity of Effluents and Receiving Waters to Marine and Estuarine Organisms , (EPA-821-R-02-013)

Fourth Edition, October 2002.

e. The procedures, methods, techniques, conditions, etc., included in the above mentioned publications shall be followed at all times. If the perm ittee wishes to use other procedures, methods, etc., because he understands that:

1) by the nature or conditions of this case it is impossib le to follow such publications;

2) other procedures, methods, etc., are adequate;

then, the permittee shall, prior to the utilization of ot her procedures, methods, etc., obtain the EPA and EQB written approval for their usage.

f. The effluent samples for the toxicity tests shall be used in or before 36 hours after being

collected.

g. A report on the toxicity tests conducted shall be submi tted to the EQB, during the sixty (60) days period after the tests were conducted. This report shall be prepared according to the aforementioned publications of EPA.Part I Page 18 of 41

Permit No. PR0000591

h. Based on the review of the test results, EPA or the EQB can require additional toxicity tests, including toxicity/treatability studies and can revo ke the final mixing zone authorization according with Section 5.14 of the PRWQSR.

i. Solids from wastewater sources shall not cause deposition in, or be deleterious to, the existing or designated uses of the waters.

j. The discharge shall not cause the growth or propagatio n of organisms that negatively disturb the ecological equilibrium in the areas adjac ent to the mixing zone.

k. The mixing zone shall be free of debris, scum, float ing oil and any other substances that produce objectionable odors.

l. The permittee shall maintain in good operating conditio ns the discharge system [discharge outfall (land and submarine), diffuser, ports, et c.] At least once a year, the discharge system shall be inspected to determine if some repairs, replacing, etc., on the discharge system is required. A report of such inspections shall be submitted to EPA and EQB not later than sixty (60) days after the performance of the inspection.

m. The EQB can require that the permittee conduct bioacc umulation studies, dye studies, water quality studies or any other pertinent studies. If t he EQB requires one or more of the aforementioned studies, the permittee will be notifi ed to conduct such study(ies). One hundred and twenty (120) days after the notification o f the EQB, the permittee shall submit, for evaluation and approval of the EQB, a protocol to conduct such study(ies). Sixty (60) days after the EQB approval, the permittee sha ll initiate such study(ies). Ninety (90) days after conducting such study(ies), the permittee shall submit a report that includes the results of such study(ies).

n. The permittee shall conduct a dye study to verify the Critical Initial Dilution and the plume behavior within the mixing zone. The dye study shal l be conducted ninety (90) days after the written approval of the corresponding Proto col and Quality Assurance Project Plan (QAPP). Such Protocol and QAPP shall be su bmitted to by October 1, 2008. This study shall consist of at least one set of the re quired samples, as established in the QAPP for a complete sampling event.

o. The authorization for the mixing zone will not be trans ferable and does not convey any property rights of any sort or any exclusive privileges, nor does it authorizes any injury to persons or property or invasion of other private rights, or any infringement of Federal or State Laws or Regulations.

18. No later than September 1, 2008, the permittee shall ini tiate a study to collect all available information on key factors affecting regulated bacterial concentrations in the receiving waters. The implementation of such study shall predict and verif y enterococci, fecal and total coliforms and residual chlorine concentrations in the receiving wa ters based on the concentrations presentPart I Page 19 of 41

Permit No. PR0000591

on the discharge of Puerto Nuevo and Bayamón Regional Wa stewater Treatment Plants, the combined discharge of Bacardí, the point of discharge of the combined effluent of the three facilities, the edge of the mixing zone, the background stat ion and local shoreline stations. The study shall comply with the protocol approved by EQB. 2,4,7

a. The permittee shall comply with the following interim and final limits for discharge 001 for the following parameters:

Parameters Interim Limits ‡ Final Limits

Enterococci (col/100 ml) Monitoring only *

Fecal Coliforms (col/100 ml) 1,200,000 **

‡ The geometric mean of a series of representative sam ples (at least five samples) of the water taken sequentially in a given instance.

* The enterococci density in terms of geometric mean o f at least 5 representative samples taken sequentially shall not exceed 35/100 ml. No si ngle sample should exceed the upper confidence limit of 75% using 0.7 as the log st andard deviation until sufficient site data exist to establish a site-spec ific log standard deviation.

** The Fecal Coliforms geometric mean of a series of r epresentative samples (at least five samples) of the water taken sequentially in a given instance shall not exceed 200 colonies/100 ml. Not more than 20 percent of the sa mples shall

exceed 400 colonies/100 ml.

b. The interim limits will be effective during the peri od July 1, 2008 through June 30, 2010.

EPA Addendum: A permit modification finalized by EPA sha ll be the sole mechanism by which the interim effluent limitations for Enteroco cci and/or Fecal Coliforms may be extended beyond June 30, 2010.

c. The permittee must complete the study by November 1, 2009.

d. A final report must be submitted to the EQB within sixty (60) days of the last day of field sample collection. Such report must contains the resu lts and conclusions of the study, as any other pertinent data and required information, as establ ished in the study protocol approval by EQB.

e. By no means should it be understood that the performa nce of the study described in this special condition exempts the Puerto Nuevo and Bayamón Re gional Wastewater Treatment Plants and the Bacardí Corporation from the r equirement to disinfect thePart I Page 20 of 41

Permit No. PR0000591

effluent to be discharged through the individual points of d ischarge authorized by the corresponding NPDES permits.

19. Whole Effluent Toxicity Requirements

a. Monitoring Frequency

The permittee shall conduct quarterly chronic toxicity tes ts on flow-weighted 24-hour composite effluent samples of the combined Bacardi, PRASA Puerto Nuevo, and PRASA Bayamón discharges (referred herein as “combined discharge”) for fertilization of Arbacia Punctulata

. Once each calendar year, the permittee shall split a 24-hour composite effluent sample and concurrently conduct acute and chronic toxicity tests using Mysidopsis bahia and Cyprinodon variegatus in addition to Arbacia punctulata fertilization test. The testing on this split sampl e, in

addition to the Arbacia Punculata test for that quarter would satisfy the annual toxicity monitoring requirement of Special Condition 17c.

The permittee shall also conduct quarterly chronic toxicit y tests on 24-hour composite effluent samples of solely the Bacardi effluent, taken at Bac ardi Discharge Point 001, for fertilization of

Arbacia Punctulata . During years 1, 3, and 5 of the permit, a split of each quarterly composite sample shall be also analyzed for all other monitored parameters for Bacardi effluent from Bacardi Discharge Point 001.

b. Effluent Limitation:

No single IC25 test result for any species or effect in t he combined discharge shall be less

than 1.00%.

Results shall be reported as the IC25 percentage effluent of the combined discharge. This permit requires additional toxicity testing if a chronic toxicity effluent limit is violated. The permittee shall notify EPA in writing within fourteen days of the pe rmittee’s receipt of results violating

this effluent limitation.

c. TRE Workplan

No later than January 1, 2009, the permittee shall prepare and submit a Toxicity Reduction Evaluation (TRE) Workplan to EPA Region 2. This plan sh all include steps the permittee intends to follow if toxicity is measured below the chroni c toxicity minimum IC25 effluent

limitation and must include, at a minimum:

1) A description of the investigation and evaluation techni ques that would be used to identify potential causes and sources of toxicity, efflue nt variability, and treatment system efficiency.Part I Page 21 of 41

Permit No. PR0000591

2) A description of methods for maximizing in-house treatme nt system efficiency, good housekeeping practices, and a list of all chemicals u sed in operations at the facility.

3) Potential actions to be undertaken by the permittee to inv estigate, identify, and correct the causes, and prevent the recurrence of toxicit y.

4) Identification of responsible persons/parties for conductin g the TRE.

d. Accelerated Toxicity Testing and Commencement of TRE

1) If the combined discharge displays a chronic toxicity r esult with an IC25 value of less than 1.00%, then the permittee shall conduct six additional toxicity tests of the combined discharge for all three plants using the sam e species and test method, every two weeks, over a 12 week period. The permi ttee shall also split the sample and perform testing for the species in questi on on solely the Bacardi

effluent taken from Outfall 001, for each of these six t est results.

2) Accelerated testing shall begin within 14 days of the perm ittee’s receipt of test results violating the effluent limit. If none of the a dditional toxicity tests exceeds a chronic toxicity effluent limit, then the permittee m ay return to its regular testing frequency for both the combined discharge and solely Bacardi effluent. All laboratory test results shall be submitted to EPA and EQB within 30 days of receipt by the permittee, as required in item 19.f.3 of this Special Condition.

3) If one of the additional toxicity tests for the com bined discharge (in paragraph 19.d.1) exceeds a toxicity effluent limit, then, within 14 day s of receipt of this test result, the permittee shall initiate the TRE workplan pre pared in compliance with paragraph 19.c of this special condition. The TRE shall us e the same species and

test method as that of the observed exceedance. The TRE may be performed in conjunction with the PRASA Puerto Nuevo and Bayamón faci lities. The permittee shall use the following guidance manuals:

A) Toxicity Reduction Evaluation Guidance for Municipal Wastewater

Treatment Plants (EPA 833-B-99-002, 1999)

B) Generalized Methodology for Conducting Industrial Toxicity Reduction

Evaluations (EPA/600/2-88/070, 1989).

4) The permittee may also use the following manuals for T oxicity Identification Evaluation to identify the causes of toxicity:

A) Toxicity Identification Evaluation: Characterization of Chronically T oxic Effluents, Phase I

(EPA/600/6-91/005F, 1992);Part I Page 22 of 41

Permit No. PR0000591

B) Methods for Aquatic Toxicity Identification Evaluations, Phase II Toxic ity Identification Procedures for Samples Exhibiting Acute and Chronic

Toxicity (EPA/600/R-92/080, 1993);

C) Methods for Aquatic Toxicity Identification Evaluations, Phase III Toxicity Confirmation Procedures for Samples Exhibiting Acute and Chronic Toxicity (EPA/600/R-92/081, 1993); and

D) Marine Toxicity Identification Evaluation (TIE): Phase I Guidance

Document

(EPA/600/R-96-054, 1996).

5) The trigger or performance of a TRE shall not reliev e the permittee of its responsibilities to conduct WET monitoring in compliance with Section 19.a. of this Special Condition. The permittee must also contin ue to comply with the reporting requirements of item 19.f.3 of this Special Condit ion for all test results in compliance with this permit and progress reports on the TRE process.

6) The trigger or performance of accelerated monitoring sh all not relieve the permittee of its responsibilities to conduct WET monitori ng in compliance with Section 19.a. of this Special Condition. The permittee must also submit test results within 30 days after the permittee's receipt of th e laboratory reports for accelerated monitoring in order to comply with the repo rting requirements of item 19.g.3 of this Special Condition. Test results that were received by the permittee due to accelerated monitoring may be used to satisfy the re quirements of Section 19.a. of this Special Condition, provided that all requireme nts of Section a. (including species, test type, frequency, timing, and sample requirements) are

met.

e. Test Methods

1) Acute Toxicity Testing

A) The acute toxicity tests shall be conducted in accorda nce with the EPA publication, EPA-821-R-02-012 Methods for Measuring the Acute Toxicity of Effluents and Receiving Waters to Freshwater and Marine Organisms (Fifth Edition), October 2002, or the most rece nt edition of this publication, if such edition is available.

B) The tests shall provide a measure of the acute toxicit y as determined by the wastewater concentration, which cause 50 percent mor tality of the organisms over a 48 hour period. Test results shall be ex pressed in terms of Lethal Concentration (LC) and reported as 48 hour LC50.Part I Page 23 of 41

Permit No. PR0000591

C) The test species shall be the Mysidopsis Bahia (mysid shrimp) and Cyprinidon Variegatus (sheepshead minnow). The tests shall be static renewal type.

2) Chronic Toxicity Testing

A) The chronic toxicity tests shall be conducted in acc ordance with EPA publication, EPA-821-R-02-013 Short Term Methods for Estimating th e Chronic Toxicity of Effluents and Receiving Waters to Mar ine and Estuarine Organisms, Fourth Edition, October 2002.

B) The tests shall report the No Observable Effects C oncentration (NOEC), the Low Observable Effects Concentration (LOEC), the calculated inhibition concentration of 25% (IC25), and the effects r eported at each

concentration tested in the dilution series. The dilut ion series concentrations shall be chosen to bracket the approximate e xpected IC25 results, in order to accurately depict the toxic effects of the sample.

C) The chronic toxicity tests shall be survival, growth, and fecundity the Mysidopsis Bahia (mysid shrimp), survival and growth for the Cyprinidon Variegatus (sheepshead minnow), and fertilization of Arbacia Punctulata (sea urchin). The tests shall be static renewal type.

D) If either the reference toxicant or effluent toxici ty tests do not meet all test acceptability criteria in the test methods manual, then the permittee must resample and retest within 14 days.

f. Reporting of Chronic Toxicity Monitoring Results

1) A procedure report shall be to EPA and EQB by October 1, 2008. The following information shall be included in the procedure report:

A) An identification of the organizations responsible f or conducting the test and the species to be tested.

B) A detailed description of the methodology to be utilized in the conduct of the tests, including equipment, sample collection, diluti on water and source of test organisms.

C) A schematic diagram which depicts the effluent sampl ing location. The diagram shall indicate the location of effluent sampli ng in relation to wastewaters treatment facility and discharge monitoring point.Part I Page 24 of 41

Permit No. PR0000591

2) For any toxicity testing event, a full laboratory r eport shall be submitted and shall include: the toxicity test results in NOEC, LOEC, IC25, an d the results reported at each effluent dilution. The results shall be reported a ccording to the test methods manual chapter on report preparation and test review; the dates of sample collection and initiation of each toxicity test; all r esults for effluent parameters monitored concurrently with the toxicity test(s); and progr ess reports on TRE/TIE investigations.

3) Full laboratory reports of analytical results shall be submitted to EPA Region II and EQB within thirty (30) days of completion of each tes t. Based on a review of the test results, EPA or the EQB may require addition al toxicity tests, including chronic toxicity analyses. In addition to submitting the procedures report and test results to the addresses listed in Part I.B. of this perm it, results shall be submitted

to:

CHIEF, CLEAN WATER REGULATORY BRANCH

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION II

290 BROADWAY - 24th FLOOR

NEW YORK, NEW YORK 10007-1866

4) The permittee shall notify the permitting authority i n writing within 14 days of any violation of the minimum chronic toxicity IC25 limita tion. This notification shall describe actions the permittee has taken or will ta ke to investigate, identify, and correct the causes of toxicity; the status of actio ns required by this permit; and schedule for actions not yet completed; or reason(s) t hat no action has been taken.

g. Reopener Clause for Toxicity Requirements

In accordance with 40 CFR Parts 122 and 124, this permit may be reopened by EPA to include toxicity/treatability studies, additional effluent limitations, or other special conditions to address toxicity in the effluent or receiving water body.

20. Reopener Clause for Endangered Species Protection

This permit may be modified or revoked and reissued based on the results of ESA section 7

consultation with the U.S. Fish and Wildlife Service and National Marine Fisheries Service.Part I Page 25 of 41

Permit No. PR0000591

__________________________

1. According to Article 1, Puerto Rico Water Quality Stan dards Regulation as Amended.

2. According to Article 3, Puerto Rico Water Quality Stan dards Regulation as Amended.

3. According to Article 5, Puerto Rico Water Quality Stan dards Regulation as Amended.

4. According to Article 6, Puerto RicoWater Quality Standa rds Regulation as Amended.

5. According to the Environmental Public Policy Act of Se ptember 22, 2004, Act No. 416, effective

since March 22, 2005.

6. According to the Section 405(d)(4) of Federal Clean Wat er Act, as amended (33 U.S.C. 466 et. seq.).

7. According to the Code of Federal Regulation Number 40 ( 40 CFR), Part 131.40, as amended (Federal Register/Volume 69, No. 16/Monday, January 26, 2004).Part I Page 26 of 41

Permit No. PR0000591

B. MONITORING AND REPORTING REQUIREMENTS

1. Monitoring and records. See Part II.B.10.

2. Discharge Monitoring Reports.

a. See Part II.B.12.d.

b. Monitoring results obtained during the previous month sh all be summarized and reported on a Discharge Monitoring Report Form (EPA No. 3320-1), postm arked no later than the 28th day of the month following the completed reporting per iod. The first report is due on August 28, 2008. Duplicate signed copies of these, and all o ther reports required herein, shall be submitted to the Regional Administrat or and State Director at the following addresses:

COMPLIANCE ASSISTANCE

PROGRAM SUPPORT BRANCH

U.S. ENVIRONMENTAL PROTECTION

AGENCY, REGION II

290 BROADWAY - 21ST FLOOR

NEW YORK, NEW YORK 10007-1866 DIRECTOR

CARIBBEAN ENVIRONMENTAL

PROTECTION DIVISION

U.S. ENVIRONMENTAL PROTECTION

AGENCY, REGION II

EDIF CENTRO EUROPA APT 417

1492 AVENIDA PONCE DE LEON

SAN JUAN, PUERTO RICO 00907-4127

ENVIRONMENTAL QUALITY BOARD

OF PUERTO RICO

P.O. BOX 11488

SANTURCE, PUERTO RICO 00910

3. Quality assurance practices. The permittee is required to show the validity of all data by requiring its laboratory to adhere to the following minim um quality assurance practices:

a. Duplicate (1) and spiked (2) samples must be run for eac h constituent analyzed for permit compliance on 5% of the samples, or at least on one sample per month, whichever is greater. If the analysis frequency is less than one s ample per month, duplicate and spiked samples must be run for each analysis.

b. For spiked samples, a known amount of each constituent is to be added to the discharge sample. The amount of constituent added should be approxima tely the same amount present in the unspiked sample, or must be approximately th at stated as maximum or average in the discharge permit.Part I Page 27 of 41

Permit No. PR0000591

c. The data obtained in a. shall be summarized in an a nnual report submitted at the end of the fourth quarter of reporting in terms of precision, per cent recovery, and the number of duplicate and spiked samples run.

(1) Duplicate samples are not required for the followin g parameters: Color, Temperature, Turbidity.

(2) Spiked samples are not required for the following param eters listed in Table 1 of 40 CFR Part 136: Acidity, Alkalinity, Bacteriological, Benzidine, Chlorine, Color, Dissolved Oxygen, Hardness, pH, Oil and Grease, R adiological, Residues, Temperature, Turbidity. Procedures for spiking samples and spiked sample requirements for parameters not listed on the above-r eferenced table are available through EPA’s Regional Quality Assurance Coordinator.

d. Precision for each parameter shall be calculated by th e formula, standard deviation is

s =: ( ∑ d 2 /2K) 1/2 , where d is the difference between duplicate results, and k is the number of duplicate pairs used in the calculation.

e. Percent recovery for each parameter shall be calc ulated by the formula R = 100 (F-I)/A, where F is the analytical result of the spiked sample , I is the result before spiking of the sample, and A is the amount of constituent added to the sa mple.

f. The percent recovery, R, for each parameter in e. abo ve shall be summarized yearly in terms of mean percent recovery and standard deviation fro m the mean. The formula,

s = ( ∑ (xi - x) 2 /(n - 1)) 1/ 2 , where "s" is constituent added to the sample.

g. The permittee or his contract laboratory is required to annually analyze an external quality control reference sample for each pollutant. T hese are available through the Regional Quality Assurance Coordinator, Region II, U.S. Environmental Protection Agency, Edison Environmental Laboratory, Edison, New Jer sey 08817.

h. The permittee and/or his contract laboratory is requ ired to maintain records of the specific analytical methods used, including options employe d, if any, within a particular method, and of reagent standardization and equipment cali bration operations.

i. If a contract laboratory is utilized, the permittee shall submit the name and address of the laboratory and the parameters analyzed at the time it s ubmits its discharge monitoring reports (see Section 2.b above). Any change in the cont ract laboratory being used or the parameters analyzed shall be reported prior to or together with the monitoring report covering the period during which the change was made.Part I Page 28 of 41

Permit No. PR0000591

4. Twenty-four hour reporting.

The permittee must report violations of maximum daily d ischarge limitations in accordance with the reporting requirements set forth in Part II.B.12.f . (24 hour reporting followed by 5 day written submission).

Not Applicable.

5. Additional reporting requirements. The permittee shall notify the Regional Administrator and

State Director as soon as it knows or has reason to b elieve:

a. That any activity has occurred or will occur which would result in the discharge, on a routine or frequent basis, of any toxic pollutant which is not limited in the permit, if that discharge will exceed the highest (except as specified in part (4)) of the following

"notification levels":

(1) One hundred micrograms per liter (100 μg/l);

(2) Two hundred micrograms per liter (200 μ g/l) for acrolein and acrylonitrile; five hundred micrograms per liter (500 μ g/l) for 2, 4-dinitrophenol and for 2-methyl-4, 6-dinitrophenol; and one milligram per liter (1 mg/l) for antimony;

(3) Five (5) times the maximum concentration value report ed for that pollutant in the permit application; or

(4) The notification levels, if any, established by the D irector in the permit.

b. That any activity has occurred or will occur which would result in any discharge, on a non-routine or infrequent basis, of a toxic pollutant whi ch is not limited in the permit, if that discharge will exceed the highest of the following "n otification levels":

(1) Five hundred micrograms per liter (500 μ g/l);

(2) One milligram per liter (1 mg/l) for antimony;

(3) Ten (10) times the maximum concentration value report ed for that pollutant in the permit application; or

(4) The notification levels, if any, established by the D irector in the permit.Part II Page 29 of 41

Permit No. PR0000591

A. DEFINITIONS

1. "Average monthly discharge limitation" means the hi ghest allowable average of "daily discharges" over a calendar month, calculated as the sum of all daily discharges measured during a calendar month divided by the number of daily discharge s measured during that month.

2. "Average weekly discharge limitation" means the hi ghest allowable average of "daily discharges" over a calendar week, calculated as the su m of all daily discharges measured during a calendar week divided by the number of daily discharges me asured during that week.

3. "Bypass" means the intentional diversion of waste s from any portion of a treatment facility.

4. "Composite" means a combination of individual (or cont inuously taken) samples obtained at regular intervals over the entire discharge day. The v olume of each sample shall be proportional to the discharge flow rate. For a continuous discharge, a minimum of 24 individual grab samples (at hourly intervals) shall be collected and combined to c onstitute a 24 hour composite sample. For intermittent discharges of more than four (4) hour s duration, grab samples shall be taken at a

minimum of 30 minute intervals.

5. "Daily discharge" means the discharge of a pollutant measured during a calendar day or any 24 hour period that reasonably represents the calendar day fo r purposes of sampling. For pollutants with limitations expressed in units of mass, the "daily discharge" is calculated as the total mass of the pollutant discharge over the day. For pollutants w ith limitations expressed in other units of measurement, the "daily discharge" is calculated as the average measurement of pollutant over the day. For purposes of sampling, "daily" means an operat ing day or 24 hour period.

6. "Director" means the "Regional Administrator" or the "State Director", as the context requires, or an authorized representative. Until the State has an a pproved State program authorized by EPA under 40 C.F.R. Part 123, "Director" means the Regional Admi nistrator. When there is an approved State program, "Director" normally means the St ate Director. Even in such circumstances, EPA may retain authority to take certain action (see, for example, 40 C.F.R. 123.1(d), 45 Federal Register 14178, April 1, 1983, on the retention of jurisdiction over permits EPA issued before program approval). If any condition of t his permit requires the reporting of information or other actions to both the Regional Admi nistrator and the State Director, regardless of who has permit issuing authority, the terms "Regiona l Administrator" and "State Director" will be used in place of "Director".

7. "Discharge Monitoring Report" or "DMR" means the EPA uniform national form, including any subsequent additions, revisions, or modifications, for the reporting of self monitoring results by permittees.

8. "Grab" means an individual sample collected in less than 15 minutes.Part II Page 30 of 41

Permit No. PR0000591

9. "Gross" means the weight or the concentration co ntained in the discharge. (Unless a limitation is specified as a net limitation, the limitation containe d in this permit is a gross limitation).

10. "Maximum daily discharge limitation" means the highest allowable "daily discharge".

11. "Monthly" means one day each month (the same day ea ch month) and a normal operating day (e.g., the 2nd Tuesday of each month).

12. "Net" means the amount of a pollutant contained in th e discharge measured in appropriate units as specified herein, less the amount of a pollutant cont ained in the surface water body intake source, measured in the same units, over the same period of time, provided:

a. The intake water source must be drawn for the sam e body of water into which the discharge is made; and

b. In cases where the surface water body intake sourc e is pretreated for the removal of pollutants, the intake level of a pollutant to be used in c alculating the net is that level contained after the pretreatment steps.

13. "Regional Administrator" means the Regional Admi nistrator of Region II of EPA or the authorized representative of the Regional Administrator.

14. "Severe property damage" means that substantial physical damage to the treatment facilities which would cause them to become inoperable or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass. Severe property damage does not mean economic loss caused by delays in produc tion.

15. "State Director" means the chief administrative off icer of the State water pollution control agency, or the authorized representative of the State D irector.

16. "Toxic pollutant" means any of the pollutants listed in 40 CFR 401.15 (45 F.R. 44503, July 30, 1979) and any modification to that list in accordance with Section 307 (a)(1) of the Clean Water

Act.

17. "Upset" means an exceptional incident in which there i s unintentional and temporary noncompliance with technology based permit effluent li mitations because of factors beyond the reasonable control of the permittee. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment f acilities, inadequate treatment facilities, lack of preventive maintenance, or carele ss or improper operation.

18. "Weekly" means every seventh day (the same day of each week) and a normal operating day.Part II Page 31 of 41

Permit No. PR0000591

B. GENERAL CONDITIONS

1. Duty to Comply.

a. The permittee must comply with all conditions of this permit. Any permit noncompliance constitutes a violation of the Clean Wate r Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application.

b. The permittee shall comply with effluent standards or prohibitions established under Section 307(a) of the Clean Water Act for toxic pollutant s within the time provided in the regulations that establish these standards or prohibition s, even if the permit has not yet been modified to incorporate the requirement.

c. The Clean Water Act provides that any person who viol ates a permit condition implementing Sections 301, 302, 306, 307, 308, 318, or 405, of the Clean Water Act is subject to a civil penalty not to exceed $25,000 per day for each violation. Any person who negligently violates permit conditions implementin g Section 301, 302, 306, 307, 308, 318 or 405 of the Clean Water Act is subject to a fine no t less than $2,500 nor more than $25,000 per day of violation, or by imprisonment for not mo re than 1 year, or both. Any person who knowingly violates permit conditions impl ementing section 301, 302, 306, 307, 308, 318 or 405 of the Clean Water Act is subject to a fine not less than $5,000 nor more than $50,000 per day of violation, or by imprisonment f or not more than 3 years, or both.

2. Duty to Reapply. This permit and the authorization to di scharge shall terminate on the expiration date indicated on the first page. In order to receive auth orization to discharge after the expiration date of this permit, the permittee must apply for and obtai n a new permit. If the permit issuing authority remains EPA, the permittee shall complete, si gn, and submit an application to the Regional Administrator no later than 180 days before the e xpiration date.

3. Need to Halt or Reduce not a Defense. It shall not b e a defense for a permittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit.

4. Duty to Mitigate. The permittee shall take all reas onable steps to minimize or prevent any discharge in violation of this permit which has a reason able likelihood of adversely affecting

human health or the environment.

5. Proper operation and maintenance. The permittee shal l at all times properly operate and maintain all facilities and systems of treatment and control (and related appurtenances) which are installed or used by the permittee to achieve compliance wi th the conditions of this permit. Proper operation and maintenance also includes adequate la boratory controls and appropriate quality assurance procedures. This provision requires the ope ration of back up or auxiliaryPart II Page 32 of 41

Permit No. PR0000591

facilities or similar systems, installed by the permitt ee, when the operation is necessary to achieve compliance with the conditions of the permit.

6. Permit actions.

a. This permit may be modified, revoked and reissued, or terminated during its term for cause. The filing of a request by the permittee for a perm it modification, revocation and reissuance, or termination, or a notification of planned changes or anticipated noncompliance, does not stay any permit condition.

b. Causes for modification, revocation and reissuance , and termination are set forth in 40

C.F.R. 122.62 and 122.64.

(1) Specified causes for modification, revocation and re issuance, and termination

include:

(a) Noncompliance by the permittee with any condition of the permit;

(b) The permittee's failure in the application or durin g the permit issuance process to disclose fully all relevant facts, or the p ermittee's misrepresentation of any relevant facts at any time;

(c) A determination that the permitted discharge endangers human health or the environment and can only be regulated to acceptable level s by permit

modification or termination; or

(d) There is a change in any condition that requires eit her a temporary or a permanent reduction or elimination of any discharge contro lled by the permit.

(2) Specified causes for modification and, upon request or a greement of the permittee, revocation and reissuance of the permit include material and substantial alterations or additions to the permittee's operation which occurred after permit issuance and which justify the application of permit condi tions that are different or absent from this permit, (e.g., production changes, rel ocation or combination of discharge points, changes in the nature or mix of products produced) provided the reconstruction activities do not cause the new source perm it issuance provisions of 40 C.F.R. 122.29 to be applicable.

c. With the exception of permit modifications which s atisfy the criteria in 40 C.F.R. 122.63 for "minor modifications," the applicable procedures requ ired by 40 C.F.R. Part 124, including notice and opportunity for a hearing, shall be follo wed before this permit is

modified, revoked and reissued, or terminated.Part II Page 33 of 41

Permit No. PR0000591

7. Property rights. The issuance of this permit does not convey any property rights of any sort or any exclusive privileges, nor does it authorize any injury t o persons or property or invasion of other private rights, or any infringement of State or loca l laws or regulations.

8. Duty to provide information. The permittee shall fur nish to the Director within a reasonable time, any information which the Director may request to determine whether cause exists for modifying, revoking and reissuing, or terminating this permit, or to determine compliance with this permit. The permittee shall also furnish to the Di rector, upon request, copies of records required to be kept by this permit.

9. Inspection and Entry. The permittee shall allow the Regional Administrator, the head of the State water pollution control agency, or any other author ized representative(s), upon the presentation of credentials and other documents as may be required by law, to:

a. Enter upon the permittee's premises where a regula ted facility or activity is located or conducted, or where records must be kept under the condition s of this permit;

b. Have access to and copy, at reasonable times, any records that must be kept under the conditions of this permit;

c. Inspect at reasonable times any facilities, equipm ent (including monitoring and control equipment), practices, or operations regulated or required under this permit; and

d. Sample or monitor at reasonable times, for the purpo ses of assuring permit compliance or as otherwise authorized by the Clean Water Act, any subs tances or parameters at any

location.

10. Monitoring and records.

a. Samples and measurements taken for the purpose of mo nitoring shall be representative of the monitored activity.

b. The permittee shall retain records of all monitor ing information, including all calibration and maintenance records and all original strip chart rec ordings for continuous monitoring instrumentation, copies of all reports required by this perm it, for a period of at least 3 years from the date of the sample, measurement report or application. This period may be extended by request of the Director at any time.

c. Records of monitoring information shall include:

(1) The date, exact place, and time of sampling or measure ment;

(2) The individual(s) who performed the sampling or measure ments;Part II Page 34 of 41

Permit No. PR0000591

(3) The date(s) analyses were performed;

(4) The individual(s) who performed the analyses;

(5) The analytical techniques or methods used;

(6) The quality assurance information specified in Part I of this permit; and

(7) The results of such analyses.

d. Monitoring shall be conducted according to test procedur es approved under 40 C.F.R.

Part 136.

e. The Clean Water Act provides that any person who know ingly falsifies, tampers with, or renders inaccurate any monitoring device or method required to be maintained under this permit shall, upon conviction, be punished by a fine of not more than $10,000, or by imprisonment for not more than 2 years, or by both.

11. Signatory requirements.

a. All permit applications shall be signed as follows

(1) For a corporation, by a responsible corporate offi cer; or

(2) For a partnership or sole proprietorship, by a general partner or the proprietor, respectively; or

(3) For a municipality, State, Federal or other public age ncy, by either a principal executive officer or ranking elected official.

b. All reports required by this permit, and other informati on requested by the Regional Administrator or State Director pursuant to the terms of this permit, including DMRs and reports of noncompliance, shall be signed as follows:

(1) By a person described in subsection a. or by a duly author ized representative of that person.

(2) A person is a duly authorized representative only if:

(a) The authorization is made in writing by a person des cribed on subsection

a.;

(b) The authorization specifies either an individual or a position having responsibility for the overall operation of the regula ted facility or activity such as the position of plant manager, operator of a we ll or a well field,Part II Page 35 of 41

Permit No. PR0000591

superintendent, position of equivalent responsibility, or an individual or position having overall responsibility for environmental ma tters for the

company.

(c) The written authorization is submitted to the Regi onal Administrator, U.S. Environmental Protection Agency, Region II, 290 Broadway, Ne w York, New York, 10007-1866, Attention: Compliance Assistance Progra m Support Branch, and to the State Director.

(3) If a written authorization submitted pursuant to subsec tion b. is no longer accurate because a different individual or position has responsib ility for the overall operation of the facility, a new authorization satisf ying the requirements of paragraph b. must be submitted to the Regional Administra tor and State Director prior to or together with any reports or information to be signed by an authorized representative.

c. Certification. Any person signing a document under subse ction a. or b. shall make the following certification:

"I certify under penalty of law that this document and all attachments were prepared under the direction or supervision in accordance wit h a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons w ho manage the system, or those persons directly responsible for gat hering the information, the information submitted is, to the best of my knowledge a nd belief, true, accurate and complete. I am aware that there are significant pe nalties for submitting false information, including the possibility of fine and imprisonm ent for knowing

violations."

d. The Clean Water Act provides that any person who knowi ngly makes any false material statement, representation, or certification in any rec ord or other document submitted or required to be maintained under this permit, including monitori ng reports or reports of compliance or noncompliance shall, upon conviction, be punished by a fine of not more than $10,000, or by imprisonment for not more than 2 years, or by both.

12. Reporting Requirements.

a. Planned changes. The permittee shall give notice t o the Regional Administrator and State Director as soon as possible of any planned physical altera tions or additions to the permitted facility. Notice is required only when:

(1) The alteration or addition to a permitted facility ma y meet one of the criteria for determining whether a facility is a "new source" in 40 C.F .R 122.29(b);Part II Page 36 of 41

Permit No. PR0000591

(2) The alteration or addition could significantly change the nature or increase the quantity of pollutants discharged. This notification requir ement applies to pollutants which are subject neither to effluent limitati ons in the permit, nor to notification requirements under Part I.B.5, above; or

(3) The alteration or addition results in a significant change in the permittee's sludge use or disposal practices, and such alteration, addition, or change may justify the application of permit conditions that are different fr om or absent in the existing permit, including notification of additional use or dispos al sites not reported during the permit application process or not reported pursuant to an approved land application plan.

b. Anticipated noncompliance. The permittee shall g ive advance notice to the Regional Administrator and State Director of any planned changes i n the permitted facility or activity which may result in noncompliance with permit requirements as soon as it

becomes aware of the circumstances.

c. Transfers.

(1) This permit is not transferable to any person except a fter notice to the Regional Administrator and State Director. Except as provided in pa ragraph (2), a permit may be transferred by the existing permittee to a new own er or operator only if the permit has been modified or revoked and reissued, or a minor modification made, to identify the new permittee and incorporate such o ther requirements as may be necessary under the Clean Water Act.

(2) This permit may be automatically transferred to a ne w permittee if:

a) The existing permittee notifies the Regional Administr ator and State Director at least 30 days in advance of the proposed tra nsfer date in subparagraph (b);

(b) The notice includes a written agreement between the existing and new permittees containing a specific date for transfer of perm it responsibility, coverage, and liability between them; and

(c) The Director does not notify the existing permittee a nd the proposed new permittee of his or her intent to modify or revoke and r eissue the permit. (A modification under this subparagraph may also be a mi nor modification under 40 C.F.R. 122.63.) If this notice is not received, th e transfer is effective on the date specified in the agreement mentio ned in subparagraph (b).Part II Page 37 of 41

Permit No. PR0000591

(3) If this permit is automatically transferred in accor dance with the provisions of paragraph (2), the permit may be modified to reflect the automatic transfer after

its effective date.

d. Monitoring reports.

(1) Monitoring results shall be reported at the interval s specified in Part I of this permit.

(2) Monitoring results shall be reported on a Discharge Monitoring Report (DMR).

(3) If the permittee monitors any pollutant more frequently than required by the permit, using test procedures approved under 40 C.F.R. 136 or as spe cified in the permit, the results of this monitoring shall be included in the calculation and reporting of the data submitted in the DMR.

(4) Calculations for all limitations which require avera ging of measurements shall utilize an arithmetic mean unless otherwise specified in t he permit.

e. Compliance Schedules. Reports of compliance or no ncompliance with, or any progress reports on, interim and final requirements contained in a ny compliance schedule of this permit shall be submitted no later than 14 days following e ach schedule date.

f. Twenty four hour reporting.

(1) The following information shall be reported orally t o the Regional Administrator at (732) 548 8730 and State Director within 24 hours from the tim e the permittee

becomes aware of the circumstances:

(a) Any noncompliance which may endanger health or the envi ronment;

(b) Any unanticipated bypass (see 13 below) which violates a ny effluent limitation in the permit;

(c) Any upset (see 14 below) which violates any effluent li mitation in the permit; or

(d) The violation of a maximum daily discharge limitation for any of the pollutants listed in Part I of this permit is required to b e reported within 24 hours. This list includes any toxic pollutant or hazardous subs tance, or any pollutant specifically identified as the method to contro l a toxic pollutant

or hazardous substance.

(2) In addition to the oral 24 hour report, the permittee shall also provide a written submission to the Regional Administrator and State Dir ector within five days ofPart II Page 38 of 41

Permit No. PR0000591

the time the permittee becomes aware of the circumst ances. The written submission shall contain a description of the noncompli ance and its cause; the period of noncompliance, including exact dates and times, an d if the noncompliance has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, an d prevent recurrence of the noncompliance.

(3) Except with respect to written reports required under paragraph (1)(a) of subsection f., above, the Director may waive the writte n report on a case by case basis if the oral report has been received within twen ty four hours.

g. Other noncompliance. The permittee shall report t o the Regional Administrator and State Director all instances of noncompliance not reported under subsections d, e, and f at the time the monitoring report covering the period of noncompl iance is submitted. The reports shall contain the information listed in paragraph (2) of subsection f., above.

h. Other information. Where the permittee becomes aware that it failed to submit any relevant facts in a permit application, or submitted incor rect information in a permit application or in any report to the Regional Administra tor and State Director, it shall promptly submit such facts or information to the Regional Administrator and State

Director.

13. Bypassing

a. Bypass not violating limitations. The permittee may allow any bypass to occur which

does not cause effluent limitations to be violated, but onl y if it also is for essential maintenance to assure efficient operation. These bypass es are not subject to the provisions of subsections b. and c.

b. Notice.

(1) Anticipated bypass. If the permittee knows in advance of the need for a bypass, it shall submit prior notice, if possible at least ten days before the date of the bypass.

(2) Unanticipated bypass. The permittee shall submit notic e of an unanticipated bypass as required in subsection f. of section 12 above.

c. Prohibition of bypass.

(1) Bypass is prohibited, and the Director may take enforc ement action against a permittee for bypass, unless:

(a) Bypass was unavoidable to prevent loss of life, perso nal injury, or severe property damage;Part II Page 39 of 41

Permit No. PR0000591

(b) There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of unheated w astes, or maintenance during normal periods of equipment downtime. This conditi on is not satisfied if adequate back up equipment should have been insta lled in the exercise of reasonable engineering judgement to prevent a byp ass which occurred during normal periods of equipment downtime or ma intenance;

and

(c) The permittee submitted notices as required under subsect ion b.

(2) The Director may approve an anticipated bypass, after considering its adverse

effects, if the Director determines that it will meet the three conditions listed above in paragraph (1).

14. Upset.

a. Effect of an upset. An upset constitutes an affirm ative defense to an action brought for noncompliance with technology-based permit effluent li mitations if the requirements of subsection b. are met. No determination made during adminis trative review of claims that noncompliance was caused by upset, and before an acti on for noncompliance, is final administrative action subject to judicial review.

b. Conditions necessary for a demonstration of upset. A permittee who wishes to establish the affirmative defense of upset shall demonstrate, through properly signed, contemporaneous operating logs, or other relevant evidence t hat:

(1) An upset occurred and that the permittee can identify t he cause(s) of the upset;

(2) The permitted facility was at the time being properly operated;

(3) The permittee submitted notice of the upset as required i n subsection f. of section

12 above; and

(4) The permittee complied with any remedial measures re quired under section 4 above (duty to mitigate).

c. Burden of proof. In any enforcement proceeding the permittee seeking to establish the occurrence of an upset has the burden of proof.

15. Removed substances. Solids, sludges, filter backwash o r other pollutants removed in the course

of treatment or control of wastewaters and/or the tre atment of intake waters shall be disposed of in a manner such as to prevent any pollutant from such mate rials from entering navigable waters. The following data shall be reported together with the moni toring data required in Part I, B.2.:

a. The sources of the materials to be disposed of;Part II Page 40 of 41

Permit No. PR0000591

b. The approximate volumes and weights;

c. The method by which they were removed and transported; and

d. Their final disposal locations.

16. Oil and hazardous substance liability. The imposition of responsibilities upon, or the institution of any legal action against the permittee under Section 311 o f the Act shall be in conformance with regulations promulgated pursuant to Section 311 to discharge s from facilities with NPDES permits.

17. Reopener clause for toxic effluent limitations. Notw ithstanding any other condition of this permit, if any applicable toxic effluent standard or prohibiti on is promulgated under Section 301(b)(2)(C) and (D), 304(b)(2) and 307(a)(2) of the Clean Wate r Act and that effluent standard or limitation is more stringent than any effluent limi tation in the permit or controls a pollutant not limited in the permit, this permit shall be promptly modified or revoked and reissued to conform to that effluent standard or prohibition.

18. State laws. Nothing in this permit shall be construe d to preclude the institution of any legal action or relieve the permittee from any responsibilit ies, liabilities, or penalties established pursuant to any applicable State law or regulation under author ity preserved by Section 510 of the Act. The issuance of this permit does not preempt any duty to obtain State or local assent required by law for the discharge.

19. Availability of information.

a. NPDES permits, effluent data, and information requir ed by NPDES application forms provided by the Director under 40 C.F.R. 122.21 (including informati on submitted on the forms themselves and any attachments used to supply inform ation required by the forms) shall be available for public inspection at the offices of the Regional Administrator and

State Director.

b. In addition to the information set forth in subsec tion a., any other information submitted to EPA in accordance with the conditions of this permit shall be made available to the public without further notice unless a claim of business co nfidentiality is asserted at the time of submission in accordance with the procedures in 40 C.F.R. Part 2 (Public Information).

c. If a claim of confidentiality is made for informa tion other than that enumerated in

subsection a., that information shall be treated in ac cordance with the procedures in 40 C.F.R. Part 2. Only information determined to be confide ntial under those procedures shall not be made available by EPA for public inspection.Part II Page 41 of 41

Permit No. PR0000591

20. Severability. The provisions of this permit are severa ble, and if any provision of this permit, or the application of any provision of this permit to any cir cumstance, is held invalid, the application of such provision to other circumstances, an d the remainder of this permit, shall not be affected thereby.

C. EFFECTIVENESS OF PERMIT

1. This permit shall become effective in its entiret y on the date indicated on the first page of this permit unless a petition has been filed with the Environment al Appeals Board to review any condition of the permit decision pursuant to the provisions of 40 CFR Part 124.19. All contested conditions and any uncontested condition(s) that are in severable from the contested conditions shall be stayed. All other conditions shall become ef fective thirty (30) days after the date of the notification specified in 40 CFR 124.16(a)(2)(ii).

2. For purposes of judicial review under Section 509(b) of the Clean Water Act, final agency action on a permit does not occur unless and until a party has exhaust ed its administrative remedies under 40 CFR 124. Any party which neglects or fails to seek re view under 40 CFR 124.19, thereby waives its opportunity to exhaust available agency administrative remedies.