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Fiscal Year 2001 

Enforcement and Compliance Assurance 

Accomplishments Report 
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U.S. Environmental Protection Agency


Office of Enforcement and Compliance Assurance (2201A)


Washington, D.C.


EPA300-R-02-010 http://www.epa.gov/compliance

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Maximizing Results Through Partnerships ....................... 11


Integrated Strategies ..................................................... 12


Addressing Environmental Problems .............................. 18


National Priorities................................................... 18


Regional Priorities................................................... 31


Superfund Cleanup Enforcement .............................. 39


Our Core Programs ................................................ 45


International Enforcement Program ............................... 55


Environmental Justice .................................................. 56


The National Environmental Policy Act Program ............. 59


Appendices................................................................. 62


Appendix A: Acronyms ............................................ 62


Appendix B: Charts ................................................ 64


Appendix C: Compliance Assistance Centers ............ 74


Appendix D: Useful Web sites .................................. 75


Appendix E: Contact Information ............................. 76

0134Annual draft1M.p65 2 10/29/2002, 2:05 PM

Christie Whitman 

attacks. 

EPA’s Enforcement and Compliance Assurance team who worked closely with other 

federal law enforcement agencies as part of the federal government’s response to the 

’s criminal investigators and forensics staff are still providing crisis manag

ment support to other federal agencies to combat domestic terrorism. I am very proud 

EPA 

their service to our country in these uncertain times. 

I’m also proud of last year’s accomplishments in our enforcement and compliance 

program. This strong program is leading the charge toward our goal of providing all 

Americans with a cleaner, safer, and healthier environment. Last year we set our sights 

high, focusing on areas that posed serious threats to health and the environment. 

We focused on building partnerships with those who share our goals to find workable 

and flexible solutions to our nation’s most difficult environmental challenges. And we 

As we look toward the future, we will continue to look for new and innovative 

approaches to achieve measurable and better environmental results in our enforceme

and compliance efforts. That work is underway and we’re starting to see real environmental results. I’m confident we will continue to make significant progress as we enter 

actively pursued those who failed to comply with the law and took swift and appropria

enforcement action when warranted. 

a new era in environmental protection.

0134Annual draft1M.p65 3 10/29/2002, 2:06 PM

In FY2001, we continued our ongoing collaboration with our state and tribal partners 

to provide information and assistance to facilities to help them comply with environmental laws. We completed numerous agreements with facilities and companies to conduct 

their own self-audits and to report and correct violations. And we took significant civil 

and criminal enforcement actions to address serious environmental problems and ensure 

fairness in the marketplace. 

Reducing pollution is a primary goal for the enforcement and compliance program. 

Last year we and our partners prevented millions of pounds of harmful pollutants from 

being released into the environment and ensured that billions of pounds of pollutants 

were safely treated and managed. We also required violators to spend nearly $1 billion 

on environmental improvement projects—up 60 percent from the previous year. 

We understand the challenges regulated entities face to comply with the multitude of 

complex environmental regulations. These challenges require us to be innovative and 

to “think outside the box.” 

As an example, we’re employing what we term “integrated strategies,” whereby we use 

a combination of tools to improve environmental management by regulated entities, 

maximize compliance, and increase environmental protection. These integrated strategy 

tools include: 

John Peter S
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professionals of the Office of Enforcement and Compliance Assurance, EPA regional 

and program offices, and, most importantly, our partners across the nation to vigorou

enforce our environmental laws, protect Americans and future generations, and help 

ensure clean air, pure water, and better protected land. 

John Peter Suarez 

Full Compliance 
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ance assistance, compliance incentives, and innovative civil and criminal enforcement. 

The Office of Compliance (OC) assists industries and other regulated entities to improve 

their compliance with environmental laws. OC also works with EPA regions and headquarters to establish national enforcement and compliance priorities, monitor compliance, develop and track performance, and measure and evaluate results. 

The Office of Criminal Enforcement, Forensics and Training (OCEFT) directs EPA’s 

criminal program, provides technical and forensic services for civil and criminal 

investigative support, and provides training for federal, state, and local environmental professionals. OCEFT also provides investigative and technical support to the 

federal government’s homeland security program. 

The Office of Federal Activities (OFA) reviews all federal Environmental Impact Statements (EIS) prepared under the National Environmental Policy Act (NEPA); maintains 

a national EIS filing system; assures that EPA’s own actions comply with NEPA and 

other environmental requirements; provides technical assistance, compliance 

assistance, enforcement, and capacity building. 

The Office of Environmental Justice (OEJ) provides a central point for the Agency 

to address environmental and human health concerns in minority communities and/ 
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The Office of Site Remediation Enforcement (OSRE) facilitates, coordinates, 

and evaluates the enforcement of EPA’s national hazardous waste cleanup progra

Comprehensive Environmental Response (Superfund), Resource Conservation 

and Recovery Act, Oil Pollution Act, and Underground Storage Tanks. 

The Office of Planning, Policy Analysis and Communications (OPPAC) 

recommends national policy on issues pertaining to environmental enforcement 

and compliance and addresses emerging and crosscutting issues, such as innova

tion in OECA’s programs. 

The Federal Facilities Enforcement Office (FFEO) is responsible for ensuring that fede

facilities take all necessary actions to prevent, control, and abate environmental 

pollution. 
0134Annual draft1M.p65 7 10/29/2002, 2:06 PM

almost exclusively to OECA’s mission. 

Two other goals also represent important parts of OECA’s mission: Goal 7 expands 

public involvement in environmental protection by giving citizens easy access to 

information about their local environment, and Goal 5 ensures that wastes will be 

managed in an environmentally protective manner and that polluted sites will be 

cleaned up or restored. 

Results—Making a Difference 

EPA’s enforcement and compliance assurance program is focused on producing measurable 

results to protect public health and the environment. The program has always tracked traditional 

measures, such as the number of inspections and enforcement actions. EPA has implemented 

the National Performance Measures Strategy which, while continuing some reporting on 

traditional activity or output measures, increases the number of outcome measures (e.g., pounds 

of pollutants reduced as a result of an enforcement action). EPA is now actively engaged in 

using outcome data to improve program effectiveness and ensure accountability to the public. 

The accomplishments of the enforcement and compliance assurance program are reported 

in a variety of measures and documents on OECA’s Web sites. 
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be eliminated or treated. 

At the conclusion of its enforcement settlements, 

EPA calculates the amount of pollution that will 
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Prevention 

pounds of harmful pollutants, and the treatment and safe management of an estimated 

record 1.84 billion pounds of pollutants. This includes: 

◆ 720 million pounds of dredge and fill 

◆ 541 million pounds of contaminated soil 

◆ 370 million pounds of SO 2

◆ 316 million pounds of NO x

◆ 149 million pounds of contaminated ground water 

Improving the Environment 

In FY2001 as a result of enforcement actions, violators will spend: 

◆ $4.39 billion on pollution controls and environmental cleanup—nearly double from 

the previous year 

◆ $89 million on supplemental environmental improvement projects resulting from 

settlements—up 60 percent from FY2000 
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◆ In a survey of Compliance Assistance Center users, 90 percent of respondents from 

the regulated community said the centers helped them to understand environmenta

regulations. 

Providing Incentives to Change Behavior


◆ 304 companies self-disclosed and corrected violations at 1,754 facilities nationwid

Making Polluters Accountable 

◆ Violations were addressed in 222 civil judicial cases and 3,228 administrative ord

and field citations; 

◆ Violators paid $125 million in civil penalties; 

◆ Violators committed to spend almost $89 million on additional environmental projects or 

improvements; 

◆ Criminal violators received 256 years of prison time for their environmental crimes

and 

◆ Nearly $95 million in criminal fines and restitution were collected. Results 
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greatest environmental results possible. Together, we set goals and priorities and implement 

strategies to solve environmental problems. Annually, EPA grants millions of dollars to state 

enforcement programs. These grant resources help states and tribes build their capacity 

to implement effective compliance assurance programs that lead to measurable results. 

EPA uses a number of mechanisms to implement environmental programs and support 

these partnerships: Memorandum of Agreements, Performance Partnership Agreements, 

Performance Partnership Grant Agreements, and Categorical Grant Agreements. EPA also 

has a close working relationship with many national and local organizations such as the 

National Association of Attorneys General, the Environmental Council of States, and the 

International Association of the Chiefs of Police. 

EPA is responsible for ensuring that federal environmental programs designed to protect 

human health and the environment are carried out across the United States, including Indian 

Country. In FY1984, EPA completed its Indian Policy describing the Agency’s governmentto-government relationship and overall commitments to environmental protection for 

federally-recognized Indian tribes. In July 2001, Administrator Whitman reaffirmed the 

Indian Policy’s recognition of “tribal governments as the primary parties for setting standards, making environmental policy decisions, and managing [environmental] programs ... 

consistent with Agency standards and regulations.” EPA remains committed to partnering 

with tribes in addressing enforcement and compliance issues in indian country. 
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problems and achieving environmental results. 

The Agency’s experience with integrated strategies has shown they can be quite effecti

in addressing environmental compliance problems. EPA is currently testing a framewo

for its regions and programs to use as a guide when developing and implementing 

integrated strategies. This will enable the Agency to better consider the best tools, 

approaches, outreach, and measures to resolving specific environmental problems. 

Determining the appropriate mix of activities to apply to an environmental problem an

measuring the overall effectiveness of these combined efforts can be a challenging 

exercise. While strong enforcement by EPA and its partners is needed to correct and 

deter noncompliance, EPA also needs to more strategically target its compliance 

assistance efforts towards areas where regulated entities are having problems understanding how to comply with regulatory requirements. EPA also needs to thoroughly 

monitor and inspect facilities to identify violations and determine noncompliance trend

In addition, the Agency will continue to offer voluntary incentives for compliance throu

the Audit, Small Business, and Small Communities Policies. Using these various comp

ance assurance tools with other innovative “beyond compliance” tools such as pollut

prevention and environmental management systems should help EPA to not only Pure increase compliance but improve environmental performance as well.
0134Annual draft1M.p65 13 10/29/2002, 2:07 PM

and 

◆

Hotlines, Web sites and virtual compliance assistance centers that support specific 

industry sectors and environmental program priorities. 

In FY01, EPA provided compliance assistance to more than 550,000 businesses, 

and sponsored partnerships to support 10 Internet-based Compliance Assistance Centers 

created to help small-and medium-sized businesses, local governments, and federal 

facilities. That same year, the public and regulated entities visited the centers more than 

485,000 times, an increase of 19 percent from FY2000. These visits included more than 

150,000 requests for compliance documents. Other compliance assistance tools such 

as hotlines, workshops, and guidance materials effectively reached more than one-half 

million regulated entities. 

Also, in FY2001, EPA launched the National Compliance Assistance Clearinghouse. 

The Clearinghouse is a Web-based searchable reference tool that provides quick access 

to compliance assistance materials and a means for the user to interact with EPA, states, 

and other compliance assistance providers. In FY01, EPA issued its first Compliance 

Assistance Activity Plan, cataloging 368 assistance projects and activities planned for 

FY2001 across all EPA. The plan helps states and other assistance providers focus their 

resources, avoid duplication, and find opportunities for collaboration with EPA. 
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uniform enforcement response toward such disclosures. The Audit Policy provides 

incentives for companies to develop environmental audit and compliance manageme

systems to detect, disclose, and correct environmental violations. When companies 

voluntarily discover and promptly disclose environmental violations to EPA (and meet 

other specified conditions of the policy), EPA will waive or substantially reduce gravity

based civil penalties by 75 percent or, in most cases, by 100 percent. For those meeti

the policy’s conditions, where applicable, EPA will not recommend the companies for 

criminal prosecution. 

In FY2001, 304 companies disclosed potential violations at nearly 1,754 facilities und

EPA’s Audit Policy. These facilities corrected violations found and disclosed through se

auditing. 

Enforcement: 

Environmental enforcement is a comprehensive program involving federal, state, loca

and tribal governments working together to enforce federal environmental laws. The te

“enforcement” covers all efforts to compel compliance with environmental laws. EPA a

each state have an enforcement program to ensure that laws lead to the results that 

Congress and the public want. Enforcement actions compel a person or company to 

comply with environmental laws and regulations. These actions include civil and 
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“approved,” or “authorized” programs, depending on the environmental statute. Under 

this arrangement, the states apply national standards and regulations by issuing and 

enforcing their own rules and permits. State governments carry out most environmental 

enforcement actions. 

In FY2001, EPA saw a civil enforcement program that resulted in many successes 

including injunctive relief valued at $4.3 billion that will undo past harm and prevent 

future damage to the environment. Violators also paid $125 million in civil penalties 

with an additional $25.5 million going to states in shared penalties. Assessing civil 

penalties establishes deterrence and a level playing field for regulated entities by eliminating economic advantage gained through noncompliance. EPA settled 222 civil 

judicial cases and issued 3,228 administrative orders and field citations involving 

violations of a single statute or multiple statutes. 

During FY2001, EPA maintained a strong criminal enforcement program to bring to 

justice those who violated the law knowingly or willfully. Over the year, among other 

enforcement accomplishments, the criminal program initiated 482 cases, referred 256 

cases to the Department of Justice, and charged 372 defendants. The guilty paid nearly 

$95 million in fines and restitution and were sentenced to 256 years in prison—an 

increase of more than 100 years from FY2000. 
0134Annual draft1M.p65 16 10/29/2002, 2:07 PM 

◆ Performing compliance inspections, surveillance, and investigations; 

◆ Collecting, analyzing, evaluating, and managing compliance data; 

◆ Targeting, gathering information, and developing enforcement strategies; 

◆ Collecting and analyzing environmental samples; 

◆ Reviewing and evaluating self-reported documents, permits, and records; and 

◆ Responding to citizen complaints and referrals from other governmental entities 

inspections, surveillance, and investigations. 

In FY2001, EPA continued to emphasize complex investigations in addition to compliance 

inspections to uncover serious environmental problems. The investigations revealed a 

number of different types of serious environmental violations, including: 

◆ Failure to obtain a permit; 

◆ Failure to install, operate, or maintain pollution control equipment; 

◆ Failure to determine the type of hazardous waste and failure to manage it properly

and 

◆ Illegal storage of hazardous waste and discharge of oil in harmful quantities. 
0134Annual draft1M.p65 17 10/29/2002, 2:07 PM

industry compliance rate and reduce emissions that resulted from noncompliance. 

The various tools of the integrated strategy were used in combination and in sequence 

to achieve the highest possible result. While compliance monitoring investigations 

at refineries proceeded, EPA offered compliance assistance on these five major issues 

in meetings with trade associations, industry, and other stakeholders. The compliance 

assistance was designed to give refineries the understanding of how to identify and 

correct their compliance problems, encourage the refiners to perform self audits and 

finally to encourage companies where investigations were already underway to enter into 

innovative global settlement agreements with the Agency. Additionally, a Compliance 

Assistance Program (CAP) was offered for sources that had significant emissions from 

improperly controlled storage tanks. 

To date, the strategy has resulted in significant measurable environmental benefits. 

EPA entered into settlements with six companies that have a total of 32 facilities and 

represent over 30 percent of the country’s crude oil refining capacity. The companies 

agreed to install pollution controls and implement new environmental management 

programs that cost almost $1.5 billion. In FY01, EPA’s petroleum refinery initiative 

resulted in four settlements that will reduce more than 140,000 tons of harmful air 

pollutants annually. 
0134Annual draft1M.p65 18 10/29/2002, 2:07 PM 

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National priorities must be appropriate for federal attention and response. EPA regions 

support national priorities but also recognize the need for and the importance of the 

establishment of regional and state priorities, with the commitment to provide the resource 

flexibility necessary to implement those priorities. In FY01, EPA’s national enforcement and 

compliance priorities were: 

Clean Water Act/Wet Weather: Run-off from wet weather events such as 

overflows from combined sewers, sanitary sewers, or concentrated animal feeding 

operation (CAFO) discharges. Overflows contain bacteria and other pathogens which 

cause illnesses and lead to impaired waters, including beach and shellfish bed closur

“With our state and local partners, we set a high priority on areas that posed serious threats to 

health and the environment. The Administration is determined to actively pursue those who fail 

to comply with the law while working closely with the regulated community to find workable and 

flexible solutions.” 

—EPA Administrator Christie Whitman 

January 22, 2002 
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particulate matter. 

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inadequate control of emissions, thereby contributing thousands of tons of uncontrolled 

pollution each year, particularly of nitrogen oxides, volatile organic compounds, and 

Clean Air Act/Air Toxics: Ensuring reduction of public exposure to toxic air 

emissions through the adoption and implementation of Maximum Achievable Control 

Technology (MACT) standards. 

Petroleum Refinery Sector: Reducing air emissions and eliminating unpermitted 

releases from an estimated 162 operable domestic refineries spread across the country. 

Resource Conservation and Recovery Act/Permit Evaders: Preventing 

unpermitted waste handling and management operations. 

The following cases and activities represent actions taken in FY01 in support of meeting 

our national enforcement and compliance priorities: 
0134Annual draft1M.p65 20 10/29/2002, 2:08 PM 

being released into the environment. In FY2001, EPA regions reached more than 4,40

regulated facilities with compliance assistance information on CSO requirements. 

Upper Blackstone River (MA) 

One example of EPA’s efforts on CSOs is EPA New England’s work on the Upper 

Blackstone River, one of several areas on which EPA is concentrating its efforts to 

improve water quality. Blackstone River was chosen as an American Heritage Rive

and its waters have direct impacts on Narragansett Bay. Because both CSOs and 

storm water are pollution sources, an innovative, collaborative effort with the city 

Worcester and the Upper Blackstone Water Pollution Abatement District was creat

to address the most significant pollutant sources. Under an agreement with EPA, t

city of Worcester will develop a two-phased water quality improvement program in 

which the city will first identify ways to reduce the effect of pollution from CSOs an

later devise storm water-related projects. The agreement to study both CSO and 

storm water projects enables everyone involved to make more informed decisions 

about how much CSO control is appropriate in light of other water quality issues 

and most effectively uses public funds to improve the quality of the Blackstone Riv

and Narragansett Bay. 
0134Annual draft1M.p65 21 10/29/2002, 2:08 PM

Service to develop a nationally recognized, producer-oriented training curriculum, 

the Livestock and Poultry Environmental Stewardship curriculum, to address high 

profile livestock environmental issues. 

The program is designed for use in various climates, for poultry, swine, dairy and 

cattle operations, and for a variety of livestock operations from totally confined to 

open lot systems. The program promotes the natural stewardship role that livestock 

and poultry farmers should play in their handling of water, air, waste, and pesticide 

issues. The materials will assist operators to apply pollution prevention concepts to 

actual, on-site, day-to-day farming realities to meet environmental requirements. 

The project builds on the shared, common objectives of USDA and EPA by promoting economically feasible resource management approaches that are scientifically 

sound and environmentally protective. Upon completion, the curriculum will have 

received extensive educator and industry review, and in-field pilot testing in locations across the country. 

Murphy Farms, Magnolia (NC) 

As a result of a civil settlement with EPA and the Department of Justice, Murphy 

Farms and D.M. Farms of Rose Hill were ordered in July 2001 to take specific 

measures to prevent future discharges of swine waste at five hog farms in Magnolia, 

NC, and pay a fine of $72,000 to the United States Treasury. The agreement repre0134Annual draft1M.p65 22 10/29/2002, 2:08 PM 

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of testing, EPA determined that Tommy Naylor Farm was causing or contributing 

to nitrate contamination in the underground source of drinking water, which resul

in the contamination of three down-gradient private water supply wells. Drinking 

water with high levels of nitrate can cause serious illness and even death in infan

and small children. The order required Tommy Naylor Farm to provide an emergency supply of bottled water to the three homes with wells that were contaminate

by the farm’s operations. The Farm is also required to perform quarterly sampling 

the three private wells and to submit a plan for providing a permanent alternative 

source of safe drinking water to the affected homes. 

Microbial Rules 

Contaminated drinking water threatens human health, especially that of children, the 

elderly, and those with compromised immune systems. Adverse health effects of microbiological contamination include gastrointestinal distress, fever, pneumonia, dehydration, and even death. The focus on microbial rules is intended to provide compliance 

assistance and enforcement to ensure that these rules are followed. EPA provided 

27,152 entities with compliance assistance information on Safe Drinking Water Act 

requirements in FY01. This included 127 onsite visits, 118 presentations, meetings, Monitoring workshops, and training.
0134Annual draft1M.p65 23 10/29/2002, 2:08 PM

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Storm Water 

Activities that take place at industrial facilities, such as material handling and storage, 

are often exposed to storm water. The runoff from these activities discharges industrial 

pollutants into nearby storm sewer systems and water bodies. This may adversely impact 

water quality. The CWA required EPA to implement a two-phase comprehensive national 

program for addressing storm water discharges. Phase I requires NPDES permits for 

storm water discharge from a large number of priority sources including medium and 

large municipal separate storm sewer systems generally serving populations of 100,000 

or more and several categories of industrial activity, including construction activity that 

disturbs five or more acres of land. Phase II requires permits for storm water discharges 

from certain small municipal separate storm sewer systems and construction activity 

generally disturbing between one and five acres. In FY01, EPA Regions reached more 

than 2,300 regulated facilities with compliance assistance information. 

Wal-Mart (TX, NM, OK, and MA) 

On June 7, 2001, the Department of Justice and EPA reached an environmental 

agreement with Wal-Mart Stores Inc. to resolve claims the retailer violated the Clean 

Water Act at 17 locations in Texas, New Mexico, Oklahoma, and Massachusetts. 

This was the first federal enforcement action against a company for multi-state 
0134Annual draft1M.p65 24 10/29/2002, 2:08 PM 

Throughout FY2001, EPA Region 6 worked closely with the National Association of 

Home Builders, Associated Builders and Contractors, and Associated General Contra

tors, to educate their members on how to comply with the storm water construction 

regulations. This has included developing a Web page with all necessary documents 

and information for compliance with the storm water construction program. An enforc

ment training conference was provided for state inspectors and enforcement officers in 

November 2000 and February 2001, with a combined attendance of 170 governmen

employees. Investigations were initiated resulting in 12 administrative orders issued fo

construction violations in FY01. EPA Region 6 issued a total of 38 administrative ord

and 25 administrative penalty orders in FY01. 

Assistance 
0134Annual draft1M.p65 25 10/29/2002, 2:08 PM

compounds, and particulate matter. NSR/PSD requirements ensure that the construction 

of new sources or the modification of existing sources does not jeopardize the attainment 

of clean air standards in critical areas. The PSD requirements ensure that areas with 

relatively clean air are not significantly degraded by new sources of air pollution. 

Willamette, Industries (OR, LA, AR, SC) 

EPA entered into a consent decree in November 2000 with Willamette Industries, 

Inc. of Portland, OR, for the company’s failure to comply with PSD permitting 

requirements. The settlement requires Willamette to install state-of-the-art pollution 

control equipment at 13 of its facilities. The pollution control equipment, valued at 

approximately $74 million, will mean emission reductions of 17,500 tons of volatile 

organic compounds (VOCs); 8,100 tons of particulate matter (PM); and 1,020 tons 

of carbon monoxide over the four-year life of the consent decree. Willamette also 

will spend $8 million on supplemental environmental projects, which include 

pollution reduction projects, alternative fuels projects, community sewer and water 

system improvements, and state parkland donations, concentrated in the immediate 

areas where Willamette facilities are located, many of which are economically 

disadvantaged areas. Willamette also agreed to pay a civil penalty of $11.2 million, 

which, at the time of the settlement, was the largest ever assessed for factory 

emissions of air pollution. This action is a culmination of the government’s investi0134Annual draft1M.p65 26 10/29/2002, 2:08 PM

$10 million in criminal fines and also agreed to spend $10 million for environme

tal projects in the Corpus Christi area. Koch must also complete a five year term o

probation and adhere to a strict new environmental compliance program. Koch 

admitted that in January 1995 the company certified that it had installed equipme

necessary to control benzene, but then disconnected a critical oil-water separator 

used to control benzene emissions. The case was investigated by EPA’s Criminal 

Investigation Division with the assistance of EPA’s National Enforcement Investiga

tions Center, the FBI and the Texas Natural Resources Conservation Commission. 

The case is being prosecuted by the Environmental Crimes Section of the Department of Justice and the U.S. Attorney’s Office in Houston. 

Petroleum Refinery Sector 

EPA’s priority sectors analysis showed that the petroleum refining sector ranked highes

among 17 sectors in VOC and SO 2 emissions, and second highest in NO X emissions

These “criteria air pollutants” cause significant air pollution problems and are strictly 

regulated under the Clean Air Act. In FY2001, EPA’s national petroleum refinery initia

resulted in four settlements that will reduce more than 140,000 tons of harmful air 

pollutants annually. 
0134Annual draft1M.p65 27 10/29/2002, 2:08 PM

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violations of federal and state hazardous waste and toxics laws at Motiva’s Convent, LA, 

and Port Arthur and the Deer Park, TX, refineries. 

Air Toxics 

The adoption and implementation of Maximum Achievable Control Technology 

standards are intended to regulate the most hazardous air pollutants as well as those posing 

the greatest risks to human health and the environment because they are released frequently 

or in large amounts. To reduce the public’s exposure and risk of exposure to toxic air 

emissions, EPA targeted inspections and compliance assistance at sources with existing 

MACT standards and targeted enforcement at sources with high risk for emissions of air 

toxics. One example of activities relates to the chromium electroplating MACT. 

New Chrome Compliance Tool 

EPA’s Region 9 developed a manual to aid compliance and enforcement of the 

Chromium Electroplating MACT to help state and local agencies develop their own 

MACT standards for chrome platers. This manual represents a comprehensive 

approach, by not only dealing with the technical and practical aspects of compliance, but also by encouraging the use of pollution prevention and other innovative 

techniques. The manual is also used by EPA for compliance training and outreach 

and to support EPA’s Air Toxics and Environmental Justice initiatives. 
0134Annual draft1M.p65 28 10/29/2002, 2:08 PM 

including the handling of foundry wastes, waste-derived fertilizers, mineral processing

illegal hazardous waste recycling, illegal dilution of hazardous waste, and practices 

regarding wastes that were previously exempt but are now included in RCRA regulatio

Joint Border Warehouse Initiative (TNRCC) 

EPA Region 6 and the Texas Natural Resources Conservation Commission developed the Joint Border Warehouse Initiative in FY01 to conduct warehouse inspec

tions along the U.S./Mexico border. Area citizens had been concerned that impro

storage of hazardous materials could result in the contamination of the Rio Gran

River, a principal source of drinking water, or the exposure of the public to dange

Inspectors conducted inspections of 216 warehouses that were not registered to 

handle hazardous waste to determine the extent of the mismanagement of hazard

ous waste. The inspections determined that 36 facilities were found to be noncompliant and that the majority of the violations were due to the warehouse 

industry’s lack of knowledge regarding hazardous waste and RCRA. The investiga

tions also identified that the two main activities that were causing the majority 

of the violations were abandoned hazardous products/hazardous waste and sham 

recycling (Some facilities may claim that they are “recycling” a material to avoid 

being subject to RCRA regulation, when in fact the activity is not legitimate 

recycling. EPA has established guidelines for what constitutes legitimate recycling 
0134Annual draft1M.p65 29 10/29/2002, 2:08 PM

led enforcement actions. 

determined that approximately 34 facilities were noncompliant, several of which 

have the potential to be involved in sham recycling activities and thus lead to EPA 

Magnesium Corporation (UT) 

On January 17, 2001, the Department of Justice filed suit against Magnesium 

Corporation of America, its parent corporation Renco Metals Inc., and other related 

entities charging that the mineral mining company is illegally handling hazardous 

waste at its magnesium production plant on the edge of the Great Salt Lake. 

In the complaint, the government alleges that Magnesium Corporation (MagCorp) 

is illegally generating, storing and disposing of waste, including at least five wastes 

regarded as hazardous because of their toxicity or corrosivity. The suit also asks 

the court to impose penalties on MagCorp under RCRA. MagCorp processes 

magnesium chloride salts taken from water of the Great Salt Lake at its Tooele 

County, Utah, plant, and this production of magnesium generates several kinds 

of hazardous waste. The plant discharges thousands of gallons per day of liquids 

and solid waste into several unlined ditches and into a 400-acre pond, immediately 

adjacent to the Great Salt Lake. For many years, MagCorp maintained that its waste 

was exempt from RCRA requirements because of an exclusion in the law for certain 

kinds of processes involving minerals. 
0134Annual draft1M.p65 30 10/29/2002, 2:08 PM
0134Annual draft1M.p65 31 10/29/2002, 2:09 PM

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as environmental or public health concerns requiring attention nationally. 

Region 1 

Colleges and Universities 

In FY01, EPA New England launched an Audit Policy Initiative for colleges and universities. 

To date, 170 colleges and universities have declared their intent to participate, and 131 have 

submitted disclosures for review. Region 1 also completed an Environmental Management 

System (EMS) Guide specifically targeted to the college and university sector and implemented an EMS Pilot Program to test its efficacy. Colleges and universities participating in the 

pilot’s first round included University of New England, Wentworth Institute of Technology, and 

The University of Massachusetts-Amherst. The region is currently recruiting an additional six 

to eight institutions to participate in the second round for the EMS Pilot Program which starts 

in December 2002. Accurate measurement of the effects of this strategy are important as the 

region is considering the value of its transferability to other sectors and other regions are 

considering its utility. Therefore, the region is measuring the effect of discrete phases of the 

initiative on the college and university sector. The region has already developed and 

conducted a statistically valid telephone survey to determine how its initial efforts affected 

college and university regulatory practices and to identify areas for improvement. EPA New 

England is now expanding the ambit of its original assessment by evaluating the overall 
0134Annual draft1M.p65 32 10/29/2002, 2:09 PM 

civil penalties. The Region also conducted air and water inspections at two universities an

multimedia inspections at three other colleges. A multi-media inspection at Central Conne

cut State University resulted in an emergency removal action to address imminent and 

substantial hazards observed at the time of inspection. 

Region 2 

WTC Response Efforts 

From the first hours of the morning of September 11, EPA played an ongoing role in the 

nation’s response to the terrorist attacks on the World Trade Center, located only six blocks 

away from Region 2’s Manhattan offices. With assistance from headquarters and other 

regions, Region 2 employees undertook several support activities at and around Ground 

Zero as well as at the Fresh Kills Landfill in Staten Island, where debris from the collapsed 

buildings was brought for evidence-gathering. 

In the first weeks after September 11 these activities included monitoring air, water, and du

for potential environmental hazards; helping Financial District firms to retrieve backup 

computer system files from buildings within the exclusionary zone around Ground Zero; 

vacuuming dust and debris from streets and other outdoor spaces in lower Manhattan; 

removing and disposing of hazardous wastes from the sites; and setting up wash stations 

and providing protective equipment for rescue and recovery workers. 
0134Annual draft1M.p65 33 10/29/2002, 2:09 PM

federal facilities staff attended. EPA Region 2 has held two inter-regional compliance and 

pollution prevention seminars for hospitals and healthcare facilities in FY2001, with Region 1 

in Connecticut and with Region 3 in Philadelphia. Seventy-four people attended the first, and 

over 90 attended the second. Fact sheets and contact information were provided in addition 

to the speaker’s presentations. In addition to compliance information on federal regulations, 

state regulations have often been included. Environmental management systems, the 

voluntary audit program, Energy Star, voluntary pollution prevention programs and waste 

minimization programs have been included. The Region 2 New York Health Care Focus 

group was created and has had input on various efforts such as planning the seminars and 

dissemination of information. Similar focus groups are under development for New Jersey 

and the Caribbean. Speakers also addressed environmental issues, compliance, and EMS at 

various healthcare meetings, conferences, and seminars held throughout the region. 

Region 3 

Safe Drinking Water for Citizens of Zelienople Borough (PA) 

A consent agreement between EPA and AK Steel was signed in March 2001 that comes 

in the wake of years of AK Steel’s discharging nitrate, a scouring agent, into 

Connoquenessing Creek, which the borough uses as a drinking water supply. EPA’s 

health-based standard under the Safe Drinking Water Act sets a maximum contaminant 
0134Annual draft1M.p65 34 10/29/2002, 2:09 PM 

pypp

delivered bottled drinking water at no cost to the homes of all Zelienople customers when 

nitrate levels exceeded10 mg/l. The agreement requires AK Steel to reduce the amount of 

nitrate it discharges to the Connoquenessing from its Butler plant to 999 pounds per day b

October 31, 2002, so that it no longer poses a threat to Zelienople customers. Drinking 

water with high concentrations of nitrates can cause serious illness and death in infants 

under six months from a condition known as “blue baby syndrome.” 

Region 4 

Martin County Coal Corporation (KY) 

On October 11, 2000, a coal slurry impoundment owned and operated by the Martin 

County Coal Corporation (MCCC), in Inez, Martin County, KY, had a sudden breach 

and released an estimated 250 million gallons of waste materials, including coal mine 

fine refuse slurry, sediments, and other materials. The release occurred due to the 

collapse of an abandoned mine shaft under and adjacent to the refuse impoundment

The spilled waste material entered both the Wolf Creek and Rockcastle Creek watersheds. The slurry left fish, turtles, snakes, and other aquatic species smothered as the 

slurry covered the bottoms of the streams and rivers. EPA Region 4 was contacted by t

National Response Center and responded immediately to the release along with the 

Commonwealth of Kentucky. The EPA On Scene Coordinator (OSC) was dispatched a
0134Annual draft1M.p65 35 10/29/2002, 2:09 PM

pg g 

Sandy border both West Virginia and Kentucky. Region 4 worked closely with the coal 

company, the state of West Virginia, the Commonwealth of Kentucky, EPA Headquarters, and 

EPA Region 3 to develop a unique order that requires the company to remove all the slurry 

material from the water bodies and to restore those water bodies. The order further requires 

the coal company to pay all of EPA’s past and future costs for this site under CERCLA. 

Region 5 

Metal Platers Initiative 

During FY2001, EPA initiated and concluded 54 separate enforcement actions under 

Section 312 of Emergency Planning and Community Right-to-Know Act as part of its “metal 

platers” initiative. The initiative involved identifying those metal platers out of compliance with 

the EPCRA Section 312 requirement that facilities submit information regarding their stored 

chemicals to the State Emergency Response Commission, the Local Emergency Planning 

Committee, and the local fire department with jurisdiction over the facility, by March 1 of 

each year so that these entities can more efficiently respond to emergencies at these facilities. 

In addition to coming into compliance, the 49 facilities with fewer than 100 employees that 

agreed to participate in the initiative paid a civil penalty of $5,000. The five facilities with 100 

or more employees paid a civil penalty of $10,000. In total, EPA collected penalties of 

$282,225 from this initiative. 
0134Annual draft1M.p65 36 10/29/2002, 2:09 PM 

inadequate containment for tanks and actual or potential discharges of oily waste to water

of the United States. For this reason, the initiative is now being referred to as the ”Southern 

Arkansas Environmental Improvement Project.” Three workshops were held in southern 

Arkansas for the oil exploration and production industry, as well as oil field waste handlers

to explain the concerns, and the state and federal regulations relevant to their businesses. 

Over 100 people attended the workshops. Site visits of potential problem areas, along wit

steps to correct those problems, are planned. 

Region 7 

Grain Processors Compliance Incentive Program 

In FY01 EPA offered a voluntary air compliance audit program for grain processing faciliti

Region 7 has identified the grain-processing sector as an enforcement priority for FY2001 

and plans to increase overall inspections of grain processing facilities. Voluntary audit 

programs play an important role in helping companies meet their obligation to comply wit

environmental laws. Participants were given six months to complete an air compliance au

and disclose any potential areas of noncompliance to EPA. Demand for products from th

sector has steadily increased in the past decade. Existing facilities may have increased cap

acity by modifying process units or building new ones to meet this new demand. Increased 

capacity may trigger the need to obtain pre-construction permits under the Clean Air Act. 
0134Annual draft1M.p65 37 10/29/2002, 2:09 PM

Natural Resources USA Inc., Samson Investment Co., and Samson Hydrocarbons Co. 

The companies were also ordered to collect new data and submit relevant documents 

to indicate whether the groundwater contamination from their oil production operations 

might pose a future threat to the city of Poplar’s drinking water supplies. The groundwater 

contamination was affecting 20 private water wells in the East Poplar oil field. 

Region 9 

Methyl Tertiary Butyl Ether Cleanup (MTBE) (CA) 

Spurred by a series of EPA enforcement actions against more than a dozen parties responsible for leaking gasoline underground storage tanks, the nation’s largest cleanup of soil and 

water tainted by the gas additive MTBE is now well underway. The contamination forced 

Santa Monica, CA, to shut down wells that formerly provided 40 percent of the city’s drinking water. EPA, working in partnership with the Los Angeles Regional Water Quality Control 

Board, successfully compelled the parties to pay over $5 million for replacement drinking 

water, treat over 100 million gallons of contaminated ground water, remove over 4,100 

cubic yards of contaminated soil, remove over 17,000 lbs of hydrocarbons using soil vapor 

extraction, drill over 400 groundwater monitoring wells, collect over 4,000 ground water 

samples, collect over 10,000 soil samples, and conduct pilot treatment tests of eight different 

technologies. By late FY2001, they had collectively spent about $90 million on this effort. 
0134Annual draft1M.p65 38 10/29/2002, 2:09 PM 

targeted budget cuts by the state legislature in recent years. For this initiative, EPA 

observed visible emissions from cruise ships in Juneau, Seward, and Glacier Bay 

National Park in southeast Alaska in FY1999 and FY2000 and documented a numbe

of violations by cruise ships. EPA issued administrative complaints to Carnival Cruise 

Lines and Princess Cruise Lines alleging violations of the state of Alaska’s marine vess

visible emission standards and the requirement to report excess emissions to the state. 

Following the EPA’s initial investigation and notification to the company of the opacity 

violations, each of these companies took steps to correct the cause of the opacity 

problems. Specifically, the companies switched the fuel used in the engines, installed 

opacity monitors on the engine stacks, and trained the ship engineers on the importan

of proper operation to lower opacity. Additionally, Princess Cruise Lines announced th

in FY2001, four of its five cruise ships in Juneau, AK, would use shore power rather th

power generated on board to reduce opacity violations. In FY2001, EPA resolved the 

complaints with the issuance of a consent agreement and final order assessing a pena

of $42,000 against Carnival and $77,000 against Princess. 
0134Annual draft1M.p65 39 10/29/2002, 2:09 PM

gv, p

parties to promptly investigate contamination and to take whatever actions are necessary 

to reduce the threat of exposure to hazardous substances. Under the federal Superfund 

law, any and all responsible parties must pay for cleanup—tax funds are used only as 

a last resort. This is known as the “polluter pays” principle. 

To make sure that those responsible clean up or pay for the cleanup as much as 

possible, EPA’s Superfund Enforcement program identifies the companies or people 

responsible for contamination at a site and negotiates with them to do the cleanup. 

In the event EPA pays for some or all of the cleanup at a site and then finds the people 

responsible, EPA can recover the money it spent from them. The Superfund law also 

requires federal facilities to clean up contamination at facilities they own or operate. 

For FY2001, EPA’s Office of Site Remediation Enforcement, which facilitates, coordinates, and evaluates the enforcement of EPA’s national hazardous waste cleanup 

programs including Superfund, Resource Conservation and Recovery Act, Oil Pollution 

Act, and Underground Storage Tanks, reports the following: 
0134Annual draft1M.p65 40 10/29/2002, 2:09 PM 

Enforcement Fairness 

To promote enforcement fairness and resolve small party contributors’ potential liabilit

under Section 122 (g) of CERCLA, EPA concluded 15 de minimis settlements with ove

1,900 parties. Through FY01, EPA has achieved more than 475 settlements with over 

24,700 small volume waste contributors. 

Prospective Purchaser Agreements (PPA) 

To promote redevelopment of contaminated properties, EPA has sought to protect 

prospective purchasers, lenders, and property owners from Superfund liability. With 

Prospective Purchaser Agreements, bona fide prospective purchasers were not held 

responsible for cleaning up sites where they did not contribute to or worsen contamina

tion. In FY2001, the Agency assessed 22 PPA requests, and signed 16 PPAs. 

Orphan Share Compensation 

Frequently, waste has been contributed to a site by parties that are now insolvent or 

defunct and are not affiliated with other liable, viable PRPs at the site. The share of 

cleanup liability attributable to such insolvent or defunct parties is called the “orphan 

share.” In FY2001 EPA made orphan share compensation offers at 100 percent of 

eligible sites in work negotiations. The Agency made eight offers for more than $17.6 
0134Annual draft1M.p65 41 10/29/2002, 2:10 PM

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Department of Justice, seven unilateral administrative orders with PRP compliance, and 

six other administrative orders on consent or consent agreements for response work. 

Using Special Accounts 

A Special Account is a specific account established under a CERCLA (Section122(b)(3)) 

settlement, in to which PRPs deposit funds for cleanup costs at the site. The regions 

achieved 50 settlements providing for deposit of more than $297 million into special 

accounts and four settlements providing for disbursement of over $21 million from 

special accounts to PRPs. The regions collected $311 million in cash payments for 

response work, created 36 special accounts, and accrued $28 million in interest for 

a total of $339 million, and the program disbursed about $60 million. Through FY01, 

the program collected $878 million in cash payments for cleanup work, created 

197 special accounts, and accrued over $135 million in interest for a total of over 

$1 billion, and the program also disbursed $326 million. 
0134Annual draft1M.p65 42 10/29/2002, 2:10 PM 

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of the releases from Iron Mountain, the source of the most acidic mine drainage 

the world. Aventis has arranged for the IT Group to operate and maintain the site 

cleanup over the next 30 years, and for a payment to the federal and state gover

ments of $514 million in FY2030 to pay for future site costs. This unique funding 

mechanism enables Aventis (which is securing the funding through a financial 

assurance and insurance vehicle) to pay roughly $160 million to fund the long-te

operation and maintenance at the site (an estimated cost of $200 to $300 million

a payment to the EPA of approximately $8 million, and a $10 million payment to 

natural resource trustees to fund natural resource restoration projects. The innova

tive settlement will benefit the people, fish, and animals of northern California and 

will allow salmon to once again migrate and spawn in the Sacramento River. 

Operating Industries Inc. (CA) 

EPA negotiated a $340 million settlement last year with more than 160 companies 

to pay for further cleanup work at the Operating Industries Inc. site, a 190-acre 

landfill about 10 miles east of downtown Los Angeles. From 1948 to 1984, the 

landfill accepted municipal, commercial, and industrial solid and hazardous was

including at least 300 million gallons of liquid waste. EPA found that nearly 4,00

different parties sent wastes to the landfill. Over the past two decades, EPA has 
0134Annual draft1M.p65 43 10/29/2002, 2:10 PM

very supportive of EPA’s progress. 

Schaffer Landfill Portion of Iron Horse Park Superfund Site (MA) 

On April 19, 2001, The U.S. District Court in Boston entered a consent decree for 

the Schaffer Landfill portion of the Iron Horse Park Superfund Site in Billerica, MA. 

In addition to requiring the responsible parties to reimburse the costs incurred by 

EPA and Massachusetts Department of Environmental Protection, the consent decree 

mandates the capping of the landfill and installation of landfill gas and leachate 

collection systems; groundwater monitoring; and fulfillment of operating and 

maintenance responsibilities. More than 30 responsible parties, representing landfill 

owners and operators, generators and transporters, will reimburse more than $1.5 

million to the United States and nearly $150,000 to the commonwealth of Massachusetts. The capping of the landfill will be completed by the end of 2002 at an 

estimated cost of $15 million to the responsible parties and the leachate collection 

system will collect and treat/dispose of up to 10,000 gallons per day of leachate. 

To ensure that cleanup goals are being met, the responsible parties will conduct 

ground water monitoring for up to 15 years, after which Massachusetts will assume 

monitoring responsibility. Forty years of operating and maintenance costs will be 

borne by the responsible parties; thereafter, the costs will be assumed by the state. 
0134Annual draft1M.p65 44 10/29/2002, 2:10 PM 

from the company was disposed of at the Lang Property, a 40-acre parcel of rura

land in New Jersey’s Pinelands National Reserve, one of the country’s valuable 

environmental resources. In June 1975, between 1,200 and 1,500 drums of 

unidentified chemical waste were discovered in a clearing at the end of the unpav

road leading to the Lang Property site. Under a New Jersey state order, the site 

owners paid for the removal of the drums and contaminated soils from the site in 

1976. However, before the removal, the contents of the drums were emptied into 

unlined pits on the site, or the contents were spilled on the ground, which caused 

the contamination of soils and ground water at the site. In FY1979, Burlington 

County and the state confirmed the site had contaminated ground water. The Lan

Property site was placed on EPA’s National Priorities List of hazardous waste sites 

in FY1983. Under the settlement, EPA will recover about $10 million in federal 

expenditures and the state of New Jersey will recover about $1.1 million in state 

expenditures. To date, the total cost of the federal cleanup at the Lang Property sit

is approximately $21 million. The proposed settlement amount is based on the 

company’s limited ability to pay. 
0134Annual draft1M.p65 45 10/29/2002, 2:10 PM

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committed to maintaining a robust core compliance and enforcement program necessary to 

achieve a strong and credible enforcement presence to deter non-compliance. The work 

done to meet the requirements of Goal 9 are the core program elements, which address air, 

land, and water statutory requirements in addition to the federal facilities, underground 

storage tanks, criminal enforcement, multimedia, tribal, and environmental justice programs. 

Seven sectors are included under the core program: petroleum refining, coal-fired power 

plants, CAFOs, industrial organics, chemical preparation, iron and steel, and primary 

nonferrous facilities were the subject of focus in FY01. Three of the sectors, CAFOs, coalfired power plants, and petroleum refining are national enforcement and compliance 

priorities. 

The following is a snapshot of activities and enforcement actions that occurred under 

EPA’s core enforcement and compliance program for FY2001: 

Chlorofluorocarbons (CFCs) 

The depletion of stratospheric ozone is a serious global environmental problem. Ozone 

depletion can result in an increase in skin cancer, cataracts, and possible immune 

system impairments among humans as well as a reduction in crop yields and diminished 

productivity of oceans. The Clean Air Act phases out the production and consumption of 

certain types of ozone depleting substances, requires recycling of CFCs, prevents venting 
0134Annual draft1M.p65 46 10/29/2002, 2:10 PM 

The Oil Pollution Act (OPA) was signed into law in August 1990, largely in response 

to rising public concern following the Exxon Valdez oil spill in Alaska’s Prince William 

Sound. The OPA is the most recent and the most comprehensive effort by Congress 

to deal with the harmful environmental impacts of oil spills. Oil spills pose a potential

serious threat to human health and the environment. EPA studies show that one pint 

of oil released into the water can spread over a surface area of one acre, severely 

damaging aquatic habitats. 

BP Amoco 

In April 2001, BP Amoco, formerly ARCO Pipeline Company (ARCO), agreed to a c

settlement for violating the federal Clean Water Act by dumping almost 162,500 gallo

of oil into the Marais des Cygnes River in Osawatomie, KS, disrupting the city’s water 

supply for 38 days. Osawatomie is 50 miles southwest of Kansas City. The consent 

decree resolves a 1999 lawsuit filed by EPA against ARCO for discharging 162,498 

gallons of oil into the Marais des Cygnes River in January 1994. The oil spill was 

caused by a break in a pipeline owned at the time by ARCO. Residents used bottled 

water and water trucked in by local and state agencies until a temporary pipeline was 

built. In addition to the civil penalty, BP Amoco agreed to pay an $804,700 civil pena

and spend at least $145,300 on a supplemental environmental project involving 

reconstruction improvements to Osawatomie’s water intake. 
0134Annual draft1M.p65 47 10/29/2002, 2:10 PM

environmental crimes, the company will pay $1.9 million in criminal penalties, $1.9 

million in asset forfeitures, and $275,000 restitution for damaging the Anderson 

treatment plant. Forensic support from EPA’s National Enforcement Investigations 

Center established the link between the discharge of the chemical by the plant and 

the subsequent fish kill. 

Wetlands 

Wetlands and riparian areas play a significant role in managing the adverse water 

quality impacts associated with nonpoint source pollution, and they help decrease 

the need for costly storm water and flood protection facilities. In addition, in their natural 

condition they provide habitat for feeding, nesting, cover, and breeding to many species 

of birds, fish, amphibians, reptiles, and mammals. Section 404 of the Clean Water Act 

establishes a program to regulate the discharge of dredged and fill material into waters 

of the United States, including wetlands. The program’s premise is that no discharge 

of dredged or fill material can be permitted if a practicable alternative exists that is less 

damaging to the aquatic environment or if the nation’s waters would be significantly 

degraded. EPA and the Army Corps of Engineers jointly administer the program. 
0134Annual draft1M.p65 48 10/29/2002, 2:10 PM 

Although preventable, lead poisoning remains a major childhood environmental 

disease. Nearly 1 million children in the U.S. have blood-lead levels high enough 

to result in irreversible neurological and other health damage. Roughly 24 million 

children under the age of six are potentially at risk for lead poisoning, generally throu

exposure to lead-based paint and lead-contaminated dust and soil. The Real Estate 

Notification and Disclosure Rule (Disclosure Rule) requires that landlords and owners 

regulated property provide information about lead poisoning to prospective renters an

purchasers and disclose known information regarding lead-based paint to potential 

lessees or purchasers prior to finalizing lease or purchase agreements. 

Washington D.C. Landlord 

In the first-ever criminal prosecution under the Disclosure Rule, David D. Nuyen a 

Washington D.C. landlord pled guilty to, among other things, violating the rule a

to obstructing justice and making false statements to federal officials to conceal h

violation. The landlord owned approximately 15 low-income rental properties. Th

children living in his property required medical attention for exposure to lead. In 

March, he was sentenced to two years in prison and ordered to pay a $50,000 fi

He also must provide all tenants with new notices of actual and potential lead 

hazards, hire an independent contractor to assess lead paint hazards on his 

properties, and develop a lead abatement plan for his current properties. 
0134Annual draft1M.p65 49 10/29/2002, 2:10 PM

of sale or distribution from the composition described in the statement required in 

connection with the registration; and that Micro Flo falsified the Notices of Arrivals 

(NOAs) accompanying multiple shipments of active ingredient pesticides, by using 

the EPA Establishment Number of an approved producer while importing the 

pesticide ingredients from unapproved producers. The complaint assessed a civil 

penalty of $3,701,500. The penalty, at the time, was the largest penalty sought 

under FIFRA by EPA, Region 4. 

Underground Storage Tanks (UST) 

Underground storage tanks range in capacity from a few hundred to 50,000 or more


gallons, and are used to store gasoline, heating oil, and other fuels, waste oil and


hazardous substances at gas stations, marinas, government facilities and large industrial


sites. Leaks from tanks often contaminate the soil around them and can cause


unhealthy gasoline vapors to settle into the basements of private homes and apartment


buildings. EPA and states’ underground storage tank regulations were put in place


to prevent releases of petroleum and, if a release does occur, to ensure that it is ad-


dressed immediately.

0134Annual draft1M.p65 50 10/29/2002, 2:10 PM 

One significant SEP in FY2001 included a project funded by S.C. Johnson 

and Son, Inc. The company violated Federal Insecticide, Fungicide and 

Rodenticide Act by marketing an asthma product that contained unregistered 

pesticides. To resolve its liability, the company entered into an administrative 

settlement with EPA under which, among other things, the company provided 

funds to the Asthma and Allergy Foundation of America to purchase and 

operate the “Breathmobile,®” a mobile asthma clinic. This SEP—valued at 

approximately $700,000—included funds to hire and train a full-time physician, nurse and respiratory therapist to provide preventive care and specialized treatment to under-privileged children at high-risk for asthma in Baltimore, MD. Asthma is the number one reason for pediatric emergency room 

visits, and the leading cause of school absenteeism. This SEP addresses both 

environmental justice and children’s health concerns involving allergies—and 

brings state-of-the-art care to children who, otherwise, may not have routine 

access to such care. The SEP funds the Breathmobile® for one year. Thereafter, 

the University of Maryland will operate the mobile clinic. 
0134Annual draft1M.p65 51 10/29/2002, 2:10 PM

marked, and unlabeled containers. The settlement required the company to 

close its sand reclamation unit consistent with RCRA requirements and conduct 

an extensive compliance audit of its facility. The consent decree also calls for Lee 

Brass to pay a monetary penalty of $350,000; to handle all non-reused sand as 

a solid waste and, if applicable, hazardous waste; and to investigate its entire 

facility to determine whether there is a need for a corrective action cleanup. 

The company produces brass and bronze parts, mainly for the plumbing 

industry, through a variety of casting processes using sand molds, and produces 

a lead contaminated foundry sand. Lead exposure is known to have significant 

human health effects, including developmental effects on children. 

Criminal Enforcement, Forensics, and Training Program 

During FY2001, EPA maintained a strong criminal enforcement program to bring to 

justice offenders representing the most serious threat to public health and the environment. Over the year, among other enforcement accomplishments, the criminal program 

initiated 482 cases, referred 256 cases to the Department of Justice, and filed charges 

against 372 defendants. The guilty paid nearly $95 million in fines and restitution and 

were sentenced to 256 years in prison—an increase of more than 100 years from 

FY2000. In addition to committing resources and manpower to the Agency’s criminal 

enforcement efforts, EPA’s criminal staff also worked closely with other federal law 
0134Annual draft1M.p65 52 10/29/2002, 2:10 PM 

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A crucial part of EPA’s criminal enforcement program is training that the Agency delivers to 

other federal, state, tribal and local civil and criminal law enforcement personnel. Working 

through the National Enforcement Training Institute (NETI), OCEFT’s training division, EP

trained 8,269 federal, state, local, tribal and international personnel through 128 different 

course deliveries in FY2001. Training state, local and tribal personnel remained a strong 

focus, as a combined total of 5,155 students, or 62 percent, were trained from these 

organizations. A total of 2,470 federal employees received training, and international and 

other students numbered 644. NETI released two new training products in FY2001: the 

Basic Inspector Training Computer-Based Training (CBT) and the RCRA Inspector Training

Basic CBT. Besides these two products, NETI enhanced its virtual university, “NETI Online

which provides training course information and registration support for students. 

Multimedia Program 

EPA’s “multimedia” approach means the Agency develops ways to work simultaneous

to regulate different environmental media, such as air, water, and land. Although ma

federal environmental regulations focus on one medium (e.g., the Clean Air Act), 

the multimedia approach focuses on whole facilities and sectors, so it may involve 

looking at regulatory compliance for air, water, and hazardous waste simultaneously 

at one site. 
0134Annual draft1M.p65 53 10/29/2002, 2:10 PM

and Mississippi under the civil settlement filed in U.S. District Court in Biloxi. 

This penalty marks the largest-ever civil fine for environmental violations at a single 

facility. The civil settlement obligates Morton to perform $16 million worth of projects 

to enhance the environment. 

Nucor (AL, AR, IN, NE, SC, TX, and UT) 

Nucor Corporation Inc. agreed to spend nearly $100 million to settle an environmental 

suit alleging that it failed to control the amount of pollution released from its steel 

factories in seven states. This was the largest and most comprehensive environmental 

settlement ever with a steel manufacturer. The settlement, filed in U.S. District Court in 

Florence, SC, will require Nucor to undertake broad environmental improvements at 

its 14 facilities in Alabama, Arkansas, Indiana, Nebraska, South Carolina, Texas, and 

Utah. The Charlotte, NC-based company also will pay a $9 million civil penalty and 

spend another $4 million on continued emissions monitoring of hazardous pollutants 

and environmental projects to benefit the communities where the factories are located. 

The agreement covers eight Nucor “mini-mills,” which produce steel by melting scrap 

metal in large electric arc furnaces and six steel fabrication plants, where the final 

molding and painting of steel products occurs. The settlement resolved allegations, 

contained in a federal complaint filed along with the agreement, that Nucor violated 

environmental standards regulating the release of pollutants into the air, water, and soil. 
0134Annual draft1M.p65 54 10/29/2002, 2:10 PM

enforcement and compliance policy and guidance. In FY2001, EPA issued or finalized 

53 enforcement actions against federal agencies and government contractors. 

The Department of Defense was named in 26 of these actions, the Department of Ene

in three of the actions, and other federal agencies in 19 of the actions. In five actions

a federal government contractor was cited as the sole defendant. 

The majority of the enforcement actions were for violations under RCRA with 28 action

There were also eight CAA actions, eight CWA actions, four SDWA actions, two 

“Under this Administration, federal facilities will be held 

accountable to the same standards for environmental 

compliance as other members of the regulated community. 

Federal facility compliance is a top priority for EPA,” 

—EPA Administrator Christie Whitman 

October 4, 2001 

CERCLA actions and three EPCRA enforcement actions

Of the 53 actions, 37 were proposed or final penalty 

orders. The total dollar amount of penalties in all final 

penalty orders for all statutes was $1,356,840 in penalt

and $3.5 million in SEPs. Additionally, over $2.1 milli

of work to correct violations and come back into comp

ance is to be done as a result of EPA’s enforcement 

actions for FY01. To assist federal facilities, EPA provide

71 onsite compliance assistance visits, including 12 Environmental Management 

Reviews and 128 workshops and presentations. Together, compliance assistance 

activities for federal facilities reached over16,000 federal facility employees nationwide
0134Annual draft1M.p65 55 10/29/2002, 2:10 PM

◆For all ports of entry to the United States, EPA’s Office of Federal Activities (OFA) 

intensified post-September 11, 2001 planning work to improve the EPA-customs 

cooperative efforts to better control imports of hazardous chemicals. 

◆ For the Canadian and Mexican borders, OFA continued to coordinate and manage 

OECA’s lead in the U.S. representation on the North American Working Group 

on Environmental Enforcement and Compliance Cooperation of the tri-national 

Commission for Environmental Cooperation. 

◆ For the Mexican border, OFA continued to coordinate and manage OECA’s lead 

in the U.S. representation on the Working Group on Environmental Enforcement 

and Compliance Cooperation under the bi-national La Paz Agreement with Mexico. 

◆ EPA’s Import-Export Program (IEP) controls international trade in hazardous waste for 

the United States. The United States has agreements with several countries, including 

Canada and Mexico, which provide for prior notification of shipment of wastes (both 

importing and exporting of wastes). EPA has issued regulations under the Resource 

Conservation and Recovery Act that are binding on the regulated community. On 

average, IEP annually processes over 1,500 notifications, involving more than 7,600 

waste streams; collected from the United States Customs Service more than 20,000 

export manifests documenting individual shipments of waste; and received about 450 

export annual reports from the regulated community. 
0134Annual draft1M.p65 56 10/29/2002, 2:11 PM 

The first, Opportuni

for Advancing Environmental Justice: An Analysis of US EPA’s Statutory Authorities, describ

how environmental justice can be addressed in EPA’s major environmental laws governing 

air and water quality, waste management, pesticide and chemical regulation, and public 

right-to-know. The report also identifies statutory authorities for promoting environmental 

justice in such program functions as standard setting and permitting, enforcement, and 

delegation of program authority to states. The second, Environmental Justice in EPA 

Permitting: Reducing Pollution in High-Risk Communities is Integral to EPA’s Mission, serv

as a handbook to public administrators by describing the practical areas where environm

tal justice can be integrated into EPA’s federal programs for issuing permits. 

jgyp

Justice, in partnership with The Environmental Law Institute and the National Academy of 

Public Administration, published two documents which highlight the efficacy and soundne

of incorporating environmental justice as a core regulatory practice. 

The message in both reports is key to EPA’s role to address environmental and human hea

concerns in segments of the population, such as low-income and/or minority communitie

which have been disproportionately exposed to environmental harms and risks. The Office 

of Environmental Justice works to ensure that environmental justice considerations are 

integrated into the Agency’s policies, programs and activities. 

Here are some highlighted activities in FY2001: 
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participants put this concept into practice in their own duties and responsibilities. 

Advice and Recommendations 

The National Environmental Justice Advisory Council (NEJAC) provides advice 

to EPA on broad public policy issues. It recently released the final report from its 16th 

meeting, which addressed the integration of environmental justice throughout the federal 

agencies. This report proposed the following recommendations: support advancement of 

the Interagency Working Group (IWG) on Environmental Justice Action Agenda and its 

collaborative interagency problem-solving model as exemplified in 15 demonstration 

projects, explore and identify ways for greater use of legal authorities and removal of 

regulatory impediments to achieve environmental justice, as discussed in the Environmental Law Institute report “Opportunities for Advancing Environmental Justice,” and 

collaborate in identifying focus areas or target programs where environmental justice 

principles could significantly benefit communities. 

The Interagency Working Group on Environmental Justice is chaired by EPA and is 

comprised of 12 federal agencies. The IWG was established as a result of Executive 

Order 12898, to mobilize federal agencies to address the needs of communities, which 

may be adversely and disproportionately affected by environmental harms and risks. 

The IWG developed an integrated federal action agenda to focus attention on 15 
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◆ Augmenting existing brownfields redevelopment initiatives to fully meet quality-of-l

and economic development needs in diverse communities; and 

◆ Addressing children’s health concerns in minority, low-income and tribal communities

Outreach and Technical Assistance 

The Environmental Justice Small Grants Program continues to significantly empower 

communities to address problems at the local level. In FY2001, 85 grants were award

across the country, bringing the total since FY1994 to more than 900. The 2nd Edition 

of the Environmental Justice Small Grants Emerging Tools for Local Problem-Solving 

was published and describes 71 of the “best” grants completed under the Small Gran

program to demonstrate how communities can solve local problems. Another program 

to assist communities is the Community Intern Program, which was created to provide 

students with “hands-on” experience in community organizations. In FY2001, 30 

students spent their summer training in community organizations. 
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impacts of federal actions. 

program’s mission is to carry out NEPA responsibilities so as to maximize protection 

of human health and the environment and public understanding of the environmental 

FY01 Accomplishments 

◆ Federal agencies reduced 76 percent of the significant impacts identified by EPA’s 

review of major federal actions. 

◆ For the first time, EPA collected data on measurable environmental improvements: 

● More than 5,000 acres of aquatic habitat were protected; and 

● More than 25 million acres of terrestrial habitat were protected. 

◆ The National Energy Policy cited a “win-win” for the environment and energy 

production: through the NEPA process, a California power plant design was 

changed to reduce ground water consumption by 95 percent and eliminate particulate emissions while still producing a much needed energy supply. 
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Future 
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companies into compliance through the use of innovative efforts suc

as our compliance assistance centers and the self-disclosure policy. 

Together, the resources of OECA provide formidable tools to safegua

our environment and public health.” 

—EPA Administrator Christie Wh

August 2, 
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Appendix 

CWA Clean Water Act


DOD Department of Defense


DOE Department of Energy


DOJ Department of Justice


EA Enforcement Action


EAO Emergency Administrative Order


EJ Environmental Justice


EMS Environmental Management System


EMR Environmental Management Review


EO Executive Order


EPAU.S. Environmental Protection Agency


EPCRA Emergency Planning and Community Right-to-Know Act


ERNS Emergency Response Notification System


FFEO Federal Facilities Enforcement Office


FIFRA Federal Insecticide, Fungicide and Rodenticide Act


F YFiscal Year


GPO Government Printing Office


GPRA Government Performance and Results Act


HUD Department of Housing and Urban Development


IDEA Integrated Data for Enforcement Analysis


LDAR Leak Detection and Repair

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PM Particulate Matter


POTW Publicly Owned Treatment Works


RCRA Resource Conservation and Recovery Act


RMP Risk Management Plan


SEP Supplemental Environmental Project


SDWA Safe Drinking Water Act


SWTR Surface Water Treatment Rule


SFIP Sector Facility Indexing Project


SIC Standard Industrial Classification


SIP State Implementation Plan


SNC Significant Noncompliance


SO2 Sulfur Dioxide


SPCC Spill Prevention Control and Countermeasure


SSO Sanitary Sewer Overflows


TRI Toxic Release Inventory


TSCA Toxic Substances Control Act


TSS Total Suspended Solids


USCG U.S. Coast Guard


USFS U.S. Forest Service


UST Underground Storage Tank


VOC Volatile Organic Compound

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Appendix 

(1) Defendants equal entities and individuals charged in the fiscal year


(2) Years of Incarceration


(3) Millions of Dollars

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Number of New Criminal Re
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EPA Administrative Penalty Settlements (Conclusions) 
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There were also 111 GLP inspections and 316 data audits by HQ. 
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*	 This includes 1 Mercury-Containing and Rechargeable Battery Management Act Order. 

In addition, there were 35 HQ CAA Mobile 

** The significant number of compliance orders issued in FY2000 was due to Safe Drinking Water Act administrative enforcement actions related 

to non-submissions of the required Consumer Confidence Report (CCR), an annual drinking water quality report for consumers. On October 

19, 1999, community water systems across the nation were, for the first time, required by federal and state regulations to provide consumers 

with a CCR. 
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EPAs compliance incentive programs 

are intended to encourage the regulated 

community to self-audit their facilities 

and correct violations. 
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the environment. 

Reducing pollution is a primary goal for EPA’s 

enforcement and compliance program. Last year, 

EPA and its partners prevented millions of pounds 

of harmful pollutants from being released into 
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* This includes PRP cash out settlement for future work. Cost recovery dollars were $414 million. 

** Criminal cases with U.S. Code - Title 18 or other violations. 
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In 1,000 (Ks) 

Entities Reached 

Assistance 

Statutory 

Requirements 

77% 

about

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Appendi

www.epa.gov/agriculture (This is a government-run center). 

National Metal Finishing Resource Center (NMFRC): Provides comprehensive environmental compliance, technical assistance, and pollution prevention information to the metal 

finishing industry. www.nmfrc.org 

Paints and Coatings Resource Center: Provides regulatory compliance and pollution 

prevention information to organic coating facilities, industry vendors and suppliers, and other

www.paintcenter.org 

Printed Wiring Board Resource Center: Provides regulatory compliance and pollution 

prevention information to printed wiring board manufacturers, industry vendors and suppliers

and others. www.pwbrc.org 

Printers’ National Environmental Assistance Center (PNEAC): Provides compliance an

pollution prevention fact sheets, case studies, and training, as well as two e-mail discussion 

groups on technical and regulatory issues. www.pneac.org 

Transportation Environmental Resource Center (TERC): Provides compliance assistance 

information for each mode of transportation—air, shipping and barging, rail, and trucking. 

www.transource.org 

Federal Facility Compliance Assistance Center (FedSite): Provides information on 

environmental regulations, pollution prevention, and policies affecting federal agencies. 

www.epa.gov/fedsite 
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National Compliance Assistance Clearinghouse: cfpub.epa.gov/clearinghouse/ 

Compliance Assistance Centers: www.assistancecenters.net/ 

Audit Policy: http://www.epa.gov/compliance/incentives/auditing/index.html 

Small Business Policy: http://www.epa.gov/compliance/incentives/smallbusiness/ 

index.html 

Small Communities Policy: http://www.epa.gov/compliance/incentives/ 

smallcommunity/index.html 

Sector Notebooks: www.epa.gov/oeca/sector 

EPA Regional Offices: www.epa.gov/epahome/whereyoulive.htm#regiontext 

Laws and Regulations: http://www.epa.gov/epahome/lawregs.htm 

State Environmental Agencies: http://www.epa.gov/epapages/statelocal/envrolst.htm 

pendix D

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Appendi

Office of Regulatory Enforcement: (202) 564-2220


Office of Site Remediation and Enforcement: (202) 564-5110


Office of Criminal Enforcement, Forensics and Training: (202) 564-2480


Office of Environmental Justice: (202) 564-2515


Office of Planning, Policy Analysis & Communications: (202) 564-2530


Federal Facilities Enforcement Office: (202) 564-2510


Office of Federal Activities: (202) 564-5400


Administration and Resources Management Support Staff: (202) 564-2455


Mailing Address: 

U.S. Environmental Protection Agency


1200 Pennsylvania Ave., NW


Washington, D.C. 20460-0001

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