ST,. fl t) UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

REGION 5 

77 WEST JACKSON 6OULEVARD 

't PRO1 CHICAGO, IL 60604-3590 

SEP 282012 

CERTIFIED MAIL 

RETURN RECEIPT REOUESTED 

John W. Mellowes, Vice President 

Charter Manufacturing Company, Inc. 

4300 E. 49th Street 

Cuyahoga Heights, Ohio 44125 

Re: Charter Manufacturing, Inc., Cuyahoga Heights, Ohio 

Dear Mr. Mellowes: 

Enclosed is a file-stamped Consent Agreement and Final Order (CAFO) which resolves Charter 

Manufacturing Company, Inc. d/b/a Charter Steel, and case docket no. CAA-05-2012-0051 

As indicated by the filing stamp on its first page, we filed the CAFO with the Regional Hearing 

Clerk on rsEp 28 2o12 

Pursuant toparagraph 31 of the CAFO, Charter Steel must pay the civil penalty within 30 days 

of 28 2012 . Your electronic funds transfer must display the case name: In the 

Matter of Charter Manufacturing Company, Inc., dlb/a Charter Steel, the docket number 

CAA-O5-2012-OO51 and the billing document number 2751203A054 

Please direct any questions regarding this case to Mr. Luis Oviedo, Associate Regional Counsel, 

at 312.353.9538. 

Sincerely, 

William MacDowéll, Chief 

Air Enforcement and Compliance Assurance (MN/OH) 

Enclosure 

cc: Ann L. Coyle, Regional Judicial Officer/C-14J 

Regional Hearing ClerkIE- 1 9J 

L. Oviedo/C-14J 

Valencia White, Cleveland DAPC 

Ed Fasko, Ohio EPA, Northeast District Office 

Tom McEligott, Quarles & Brady LLP 

REPLY TO THE ATTENTION OF: 

Recycled! Recyclable . Printed with Vegetable Oil Based Inks on 100% Recycled Paper (100% P051-Consumer) 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

REGIONS 

In the Matter of: ) Docket No. CAA0520120051 

) 

Consent Agreement and Final Order 

Preliminary Statement I 

This is an administrative action commenced and concluded under Section 1 13(4: Z 

C.) 

of the Clean Air Act (the CAA), 42 U.S.C. § 7413(d), and Sections 22.1(a)(2), 22.13(b) and 

22.1 8(b)(2) and (3) of the Consolidated Rules of Practice Governing the Administrative 

Assessment of Civil Penalties and the RevocationlTermination or Suspension of Permits 

(Consolidated Rules), as codified at 40 C.F.R. Part 22. 

Complainant is the Director of the Air and Radiation Division, 

U.S. Environmental Protection Agency (EPA), Region 5. 

Respondent is Charter Manufacturing Company, Inc. (Charter Steel), a corporation doing business in Ohio. 

Where the parties agree to settle one or more causes of action before the filing of 

a complaint, the administrative action may be commenced and concluded simultaneously by the 

issuance of a consent agreement and final order (CAFO). 40 C.F.R. § 22.13(b). 

The parties agree that settling this action without the filing of a complaint or the 

adjudication of any issue of fact or law is in their interest and in the public interest. 

Respondent consents to the assessment of the civil penalty specified in this CAFO 

and to the terms of this CAFO. 

Charter Manufacturing Company, Inc. ) Proceeding to Assess a Civil Penalty 

d/b/a Charter Steel 

Cuyahoga Heights, Ohio 

Respondent 

) 

) 

) 

Under Section 113(d) of the Clean Air Act, 

42 U.S.C. § 7413(d) .37 

rn C, 
Jurisdiction and Waiver of Right to Hearing 

Respondent admits the jurisdictional allegations in this CAFO and neither admits 

nor denies the factual allegations in this CAFO. 

Respondent waives its right to request a hearing as provided at 40 C.F.R. 

§ 22.15(c), any right to contest the allegations in this CAFO and its right to appeal this CAFO. 

Statutory and Regulatory Background 

On August 13, 1984, EPA approved Ohio Administrative Code (OAC) Rule 

3745-15-07 as part of the federally enforceable State Implementation Plan (SIP) for Ohio. 

49 Fed. Reg. 32181 (August 13, 1984). 

OAC Rule 3745-15-07 prohibits the "emission or escape into the open air from 

any source or sources whatsoever of smoke, ashes, dust, dirt, grime, acids, fumes, gases, vapors, 

odors, or any other substances or combinations of substances" to endanger the health, safety or 

welfare of the public, or cause unreasonable injury or damage to property. 

On March 10, 2003, EPA approved OAC Rule 3745-31-05 as part of the federally 

enforceable SIP for Ohio. 68 Fed. Reg 2909 (March 10, 2003). 

OAC Rule 3745-31-05 authorizes Ohio Environmental Protection Agency 

(OEPA) to issue a Permit-To-Install with terms and conditions as necessary to ensure 

compliance with applicable laws and to ensure adequate protection of environmental quality. 

On June 10, 2004, OEPA issued a Permit-to-Install to Charter Steel, Facility 

ID#13 18171623 ("PIT') for certain emissions units, including emission unit P900, an electric arc 

thmace C'EAF"). That PTI was modified on February 12, 2008. The PTI includes the following 

specific provisions: 

2 
Part ll1.A.!.2.b of the PTI for P900 prohibits visible emissions from the 

melt shop building greater 6 percent opacity, as averaged over six minutes. 

Part mAll. 1 of the PT! for P900 requires the pressure drop across the 

melt shop baghouse be maintained within the range of 3.0 to 8.0 inches of water while the 

EAF is in operation. 

Part ll!.A.11J.2.a of the PT! for P900 requires visible emission 

observations be conducted at the melt shop at least once per day when P900 is operating 

in the melting and refining periods. Opacity is to be determined based on the arithmetic 

average of 24 consecutive 15-second opacity observations. 

Part ffl.A.1V.3 of the PT! for P900 requires Charter Steel to submit 

"quarterly written deviation (excursion) reports that identify all periods of time during 

which the pressure drop for the melt shop baghouse did not comply with the allowable 

range specified in All. 1." 

Part ffl.A.ffl.7 of the PT! for P900 requires Charter Steel to obtain an 

analysis of the melt shop baghouse dust for at least chromium, magnesium, manganese, 

lead, zinc, and mercury content on a monthly basis. 

14. Furthermore, under Section 1!! of the Act, 42 U.S.C. § 7411, EPA promulgated 

the Standards of Performance for New Stationary Sources ("NSPS") for Steel Plants: Electric 

Arc Furnaces and Argon-Oxygen Decarburization Vessels Constructed After August 17, 1983 

("Steel Plants") at 40 C.F.R. § 60.270a through 60.276a. The NSPS for Steel Plants applies to 

Charter Steel. 

3 
Under Section 111 of the Act, 42 U.S.C. § 7411, EPA promulgated the NSPS 

General Provisions at 40 C.F.R. § 60.1 through 60.19. These NSPS General Provisions apply 

to Charter-Steel as owner and operator of an affected facility. 

The NSPS, at 40 C.F.R. § 60.11(d), requires that Charter Steel, at all times, 

including periods of startup, shutdown, and malfunction, to the extent practicable, maintain and 

operate its facility, including associated air pollution control equipment in a manner consistent 

with good air pollution control practice for minimizing emissions. 

Under Section 1 13(a)(1) of the Act, 42 U.S.C. § 7413 (a)(1), the Administrator of 

EPA may issue an order requiring compliance to any person who has violated or is violating a 

SIP. Under Section 1 13(a)(3) of the Act, 42 U.S.C. § 7413(a)(3), the Administrator of EPA may 

issue an order requiring compliance to any person who has violated or is violating the NSPS 

regulations. The Administrator has delegated this authority to the Director of the Air and 

Radiation Division. 

The Administrator of EPA (the Administrator) may assess a civil penalty of up to 

$32,500 per day of violation up to a total of $270,000 for violations that occurred after March 15, 

2004 through Januaiy 12, 2009, and may assess a civil penalty of up to $37,500 per day of 

violation up to a total of $295,000 for CAA violations that occurred after January 12, 2009 under 

Section 1 13(d)(1) of the CAA, 42 U.S.C. § 7413(d)(1), and 40 C.F.R. Part 19. 

The Administrator may assess a penalty greater than $295,000 where the 

Administrator and the Attorney General of the United States jointly determine that a matter 

involving a larger penalty is appropriate for an administrative penalty action. 42 U.S.C. 

§ 7413(d)(1) and 40 C.F.R. Part 19. 

4 
The Administrator and the Attorney General of the United States, each through 

their respective delegates, have determined jointly that this mailer involving a penally greater 

than $295,000 is appropriate for an administrative penalty action. 

Section 1 13(d)(1) limits the Administrator's authority to mailers where the first 

alleged date of violation occurred no more than 12 months prior to initiation of the 

administrative action, except where the Administrator and the Attorney General of the United 

States jointly determine that a mailer involving a longer period of violation is appropriate for an 

administrative penalty action. 

The Administrator and the Attorney General of the United States, each through 

their respective delegates, have determined jointly that an administrative penalty action is 

appropriate for the period of violations alleged in this CAFO. 

Factual Allegations and Alleged Violations 

Charter Steel owns and operates a steel plant facility at 4300 B. 49th Street, 

Cuyahoga Heights, Ohio. This facility is a stationary source and an affected source under 

40 C.F.R § 60.2, and includes emission unit P900 and related emissions units. 

Charter Steel is also subject to the Ohio SIP. Specifically, Charter Steel is subject 

to OAC Rule 3745-15-07, which limits emissions into the open air, and OAC Rule 3745-31-05, 

which allows OEPA to issue a PTI to Charter Steel based on specific terms and conditions. 

Charter Steel is subject to the NSPS for Steel Plants at 40 C.F.R. § 60.270a 

through 60.276a, and the NSPS General Provisions at 40 C.F.R. § 60.1 through 60.19. 

5 
26. On March 31, 2011, EPA issued to Charter Steel a notice/finding of violation 

alleging that it violated the following requirements: 

The Ohio SIP, by exceeding 6 percent opacity from the melt shop 

building, as averaged over six minutes, on October 8, 2008, August 28, 

2009 and November 18, 2009. 

The Ohio SIP, for violations of Charter Steel's PTI, including: 1) failing, 

from January 2007 through September 2010, to maintain pressure drop 

across the'melt shop baghouse within the range of 3.0 to 8,0 inches of 

water while P900 operated, in violation of Part IIll.A.11.1 of the PTI; 2) 

failing, from April 27, 2007 through January 29, 2010, to identify all 

periods of time during which the pressure drop for the melt shop baghouse 

did not comply with the allowable range, in violation of Part ll1.A.IV.3 of 

the PTI; and 3) failing for four months, during the semi-annual reporting 

period of July 1,2009 through December 31, 2009, to obtain an analysis 

of the melt shop baghouse dust for mercury and magnesium content, in 

violation of Part ffl.A.ffl.7 of the PTJ. 

The NSPS General Provisions, by failing to operate the melt shop 

baghouse "air pollution control equipment in a manner consistent with 

good air pollution control practice for minimizing emissions." 

27. On November 28, 2011, EPA issued to Charter Steel a second notice/finding of 

violation alleging that it violated the NSPS General Provisions and the Ohio SIP, for violations 

of Charter Steel's PTI, by failing to test P900 at its maximum production rate since December 

26, 2006 (i.e., within 180 days of startup). 

6 
On April 26, 2011 and on subsequent occasions, representatives of Charter Steel 

and EPA have discussed the March 31, 2011 and November 28, 2011 notices/findings of 

violation. Charter Steel acknowledges that, both directly and through legal counsel, it conferred 

and submitted written information to EPA, and had the opportunity to present any evidence, 

arguments, comments, regarding the legal and factual determinations on which this Order is 

based, its applicability to respondent, the appropriateness of its terms or any other relevant and 

matenal issue. 

EPA alleges that Charter Steel violated the Ohio SIP, OAC rules 3745-15-07 and 

3745-31-05, and the NSPS General Provisions, at 40 CFR. § 60.11(d) and 40 C.F.R. § 60.08. 

Civil Penalty 

Based on analysis of the factors specified in Section 113(e) of the CAA, 

42 U.S.C. § 7413(e), the facts of this case and cooperation, prompt return to compliance, and 

agreement to perform a supplemental environmental project, Complainant has determined that an 

appropriate civil penalty to settle this action is $ 102,647.00. 

Within 30 days after the effective date of this CAFO, Respondent must pay a 

$102,647.00 civil penalty by: 

ACH electronic funds transfer, payable to "Treasurer, United States of America," and 

sent to: 

US Treasury REX/Cashlink ACH Receiver 

ABA: 051036706 

Account Number: 310006, Environmental Protection Agency 

CTX Format Transaction Code 22-checking 

In the comment area of the electronic funds transfer, state Respondent's name, the docket 

number of this CAFO and the billing document number. 

7 
Respondent must send a notice of payment that states Respondent's name, the 

docket number of this CAFO and the billing document number to EPA at the following 

addresses when it pays the penalty: 

Ann: Compliance Tracker (AE-17J) 

Air Enforcement and Compliance Assurance Branch 

Air and Radiation Division 

U.S. Environmental Protection Agency, Region 5 

77 W. Jackson Boulevard 

Chicago, Illinois 60604 

Luis Oviedo (C-14J) 

Office of Regional Counsel 

U.S. Environmental Protection Agency, Region 5 

77W. Jackson Boulevard 

Chicago, Illinois 60604 

Regional Hearing Clerk (E-19J) 

U.S. Environmental Protection Agency, Region 5 

77 W. Jackson Boulevard 

Chicago, Illinois 60604 

This civil penalty is not deductible for federal tax purposes. 

If Respondent does not pay timely the civil penalty, EPA may request the 

Attorney General of the United States to bring an action to collect any unpaid portion of the 

penalty with interest, nonpayment penalties and the United States enforcement expenses for the 

collection action under Section 1 13(d)(5) of the CAA, 42 U.S.C. § 7413(d)(5). The validity, 

amount and appropriateness of the civil penalty are not reviewable in a collection action. 

Respondent must pay the following on any amount overdue under this CAFO. 

kterest will accrue on any overdue amount from the date payment was due at a rate established 

by the Secretary of the Treasury pursuant to 26 U.S.C. § 6621(a)(2). Respondent must pay the 

United States enforcement expenses, including but not limited to attorneys fees and costs 

incurred by the United States for collection proceedings. In addition, Respondent must pay a 

quarterly nonpayment penalty for each quarter during which the assessed penalty is overdue. 

8 
This nonpayment penalty will be 10 percent of the aggregate amount of the outstanding penalties 

and nonpayment penalties accrued from the beginning of the quarter. 42 U.S.C. § 7413(d)(5). 

Supplemental Environment Project 

36. Respondent must complete a supplemental environmental project (SEP) designed 

to protect the environment by reducing fumes released to the environment from the west end of 

its melt shop building at its facility. 

37. At its Cuyahoga Heights facility, Respondent must complete the SEP as follows: 

The proposed SEP involves installation of a new roof ventilation hood to 

collect fumes from the west end of the melt shop. 

A new induced draft duct will be installed on the melt shop roof to connect 

the new ventilation hood to the existing fume system vertical main duct 

located on the northern side of the melt shop. The new duct will be 

installed with a flow control damper and expansion joint at the northem 

roof edge. Duct supports will be installed on the roof and north wall to 

support the new duct. 

A platform will be installed along the north melt shop roof edge to provide 

access to the flow control damper. Access to the new platform will be 

provided by extending the access ladder at the northwest corner of the 

melt shop to the roof. 

The SEP shall be completed by December 31, 2013. 

38. Respondent must spend at least $ 629,000.00 in total capital and engineering 

costs. Any amount spent by Charter in connection with this project in excess of $ 629,000.00 

shall not be considered part of this SEP or subject to the terms of this CAFO. 

9 
Respondent's authorized representative certifies as follows: 

I certify that Charter Steel is not required to perform or develop the SEP by 

any law, regulation, order, or agreement or as injunctive relief as of the date 

that! am signing this CAFO. I further certify that Charter Steel has not 

received, and is not negotiating to receive, credit for the SEP in any other 

enforcement action. 

I certify that Charter Steel is not a party to any open federal financial 

assistance transaction that is funding or could be used to fund the same 

activity as the SEP. ! further certify that, to the best of my knowledge and 

belief after reasonable inquiry, there is no such open federal financial 

transaction that is funding or could be used to fund the same activity as the 

SEP, nor has the same activity been described in an unsuccessful federal 

financial assistance transaction proposal submitted to EPA within two years 

of the date that I am signing this CAFO (unless the project was barred from 

funding as statutorily ineligible). For purposes of this certification, the term 

"open federal financial assistance transaction" refers to a grant, cooperative 

agreement, loan, federally-guaranteed loan guarantee or other mechanism 

for providing federal financial assistance whose performance period has not 

expired. 

As provided in §114 of the CAA, (42 U.S.C. § 7414), EPA may inspect the facility to monitor 

Respondent's compliance with this CAFO's SEP requirements. 

Respondent must submit a SEP completion report to EPA by March 1, 2014. This 

report must contain the following information: 

Detailed description of the SEP as completed; 

Description of any operating problems and the actions taken to correct the 

problems; 

Itemized cost of goods and services used to complete the SEP documented 

by copies of invoices, purchase orders or cancelled checks that specifically 

identify and itemize the individual cost of the goods and services; 

Certification that Respondent has completed the SEP in compliance with 

this CAFO; and 

Description of the environmental and public health benefits resulting from 

the SEP (quantify the benefits and pollution reductions, if feasible). 

10 
41. Respondent must submit all notices and the SEP completion report required by 

this CAFO by first-class mail to the Compliance Tracker of the Air Enforcement and 

Compliance Assurance Branch at the address provided in paragraph 32, above. 

42, Th each report that Respondent submits as provided by this CAFO, it must certify 

that the report is true and complete by including the following statement signed by one of its 

officers: 

I certify that I am familiar with the information in this document and that, 

based on my inquiry of those individuals responsible for obtaining the 

information, it is true and complete to the best of my knowledge. I know 

that there are significant penalties for submitting false information, 

including the possibility of fines and imprisonment for knowing violations: 

Following receipt of the SEP completion report described in paragraph 40, above, 

EPA must notify Respondent in writing that: a. It has satisfactorily completed the SEP and the SEP report; 

There are deficiencies in the SEP as completed or in the SEP report and 

EPA will give Respondent 30 days to correct the deficiencies; or c. It has not satisfactorily completed the SEP or the SEP report and EPA will 

seek stipulated penalties under paragraph 45. 

If EPA exercises option b above, Respondent may object in writing to the 

deficiency notice within 10 days of receiving the notice. The parties will have 30 days from 

EPA's receipt of Respondent's objection to reach an agreement. If the parties cannot reach an 

agreement, EPA will give Respondent a written decision on its objection. Respondent will 

comply with any requirement that EPA imposes in its decision, if Respondent does not complete 

the SEP as required by EPA's decision, Respondent will pay stipulated penalties to the United 

States under paragraph 45, below. 

If Respondent violates any requirement of this CAFO relating to the SEP, 

Respondent must pay stipulated penalties to the United States as follows: 

11 
a. Except as provided in subparagraph b, below, if Respondent did not 

complete the SEP satisfactorily according to the requirements of this 

CAFO, including the schedule in paragraph 37, Respondent must pay a penalty of $241,063. 

If Respondent did not complete the SEP satisfactorily, but EPA 

determines that Respondent made good faith and timely efforts to 

complete the SEP and certified, with supporting documents, that it spent at 

least 90 percent of the amount set forth in paragraph 38, Respondent will 

not be liable for any stipulated penalty under subparagraph a, above. c. If Respondent completed the SEP satisfactorily, but spent less than 90 

percent of the amount set forth in paragraph 38, Respondent must pay a 

penalty of $24,100. 

If Respondent did not submit timely the SEP completion report or any 

other report required by paragraph 40, Respondent must pay penalties in 

the following amounts for each day after the report was due until it 

submits the report: 

Penalty per violation per day Period of violation 

$500 15t through 14th day 

$750 15th through 30th day 

$1,000 31st day and beyond 

EPA's determinations of whether Respondent completed the SEP satisfactorily 

and whether Respondent made good faith and timely efforts to complete the SEP will bind 

Respondent. 

Respondent must pay any stipulated penalties within 15 days of receiving EPA's 

written demand for the penalties. Respondent will use the method of payment specified in 

paragraph 31, above, and will pay interest and nonpayment penalties on any overdue amounts. 

Any public statement that Respondent makes referring to the SEP must include 

the following language: "Charter Steel undertook this project under the settlement of the United 

States Environmental Protection Agency's enforcement action against Charter Steel for 

violations of the Clean Air Act." 

12 
For federal income tax purposes, Respondent will neither capitalize into inventory 

or basis, nor deduct any costs or expenditures incurred in performing the SEP. 

General Provisions 

This CAFO resolves only Respondent's liability for federal civil penalties for the 

violations alleged in this CAFO. 

The CAFO does nOt affect the rights of EPA or the United States to pursue 

appropriate injunctive or other equitable relief or criminal sanctions for any violation of law. 

This CAFO does not affect Respondent's responsibility to comply with the CAA 

and other applicable federal, state and local laws. Except as provided in paragraph 50, above, 

compliance with this CAFO will not be a defense to any actions subsequently commenced 

pursuant to federal laws administered by EPA. 

Respondent certifies that it is complying fully with NSPS, the terms of its PTI and 

the Ohio SIP. 

This CAFO constitutes an "enforcement response" as that term is used in EPA's 

Clean Air Act Stationary Civil Penalty Policy to determine Respondent's "full compliance 

history" under Section 113(e) of the CAA, 42 U.S.C. § 7413(e). 

The terms of this CAFO bind Respondent, its successors and assigns. 

Each person signing this consent agreement certifies that he or she has the 

authority to sign for the party whom he or she represents and to bind that party to its terms. 

Each party agrees to bear its own costs and attomeys fees in this action. 

This CAFO constitutes the entire agreement between the parties, 

13 
Charter Manufacturing Company, Inc., Respondent 

Date 

Date 

Jqhn W. Mellowes 

Vice President 

Charter Manufacturing Company, Inc. 

United States Environmental Protection Agency, Complainant 

GeorgeT. çzemi 

ActinDjjdctor 

Air and Radiation Division 

U.S. Environmental Protection Agency, Region 5 

14 
Consent Agreement and Final Order 

In the Mailer of: Charter Manufacturing Company, Inc. 

Docket No. CAA-O5-2012-0051 

Final Order 

This Consent Agreement and Final Order, as agreed to by the parties, shall become effective 

immediately upon filing with the Regional Hearthg Clerk. This Final Order concludes this 

proceeding pursuant to 40 C.F.R. § 22.18 and 22.31. IT IS SO ORDERED. 

Date Susan Hedman 

Regional Administrator 

U.S. Environmental Protection Agency 

Region 5 

15 
Consent Agreement and Final Order 

In the Mailer of: Charter Manufacturing Company, Inc. 

Docket No.CAA0S_20120051 

Certificate of Service 

I certify that I filed the original and one copy of the Consent Agreement and Final Order 

(CAFO), docket number CAA-05-20120051 with the Regional Hearing Clerk (E-19J), 

United States Environmental Protection Agency, Region 5, 77 W. Jackson Boulevard, Chicago, 

Illinois 60604, and that I mailed a second copy to Respondent by first-class, postage prepaid, 

certified mail, return receipt requested, by placing it in the custody of the United States Postal 

Service addressed as follows: 

John W. Mellowes, Vice President 

Charter Steel 

4300 E. 49th Street 

Cuyahoga Height, Ohio 44125 

I certify that I delivered a correct copy of the CAFO by intra-office mail, addressed as follows: 

Valencia S. White 

Cleveland Division of Air Quality 

Cleveland Department of Public Health 

Division of Air Quality 

75 Erieview Plaza, 2nd Floor 

Cleveland, Ohio 44114 

Thomas P. McElligott 

Attorney at Law 

Quarles & Brady LLP 

411 East Wisconsin Avenue 

Milwaukee, Wisconsin 53202-4497 

CERTIFIED MAIL RECEIPT NUMBER: 

AnnL Coyle 

Regional Judicial Officer (C-14J) 

U.S. Environmental Protection Agency 

77 W. Jackson Boulevard 

Chicago, Illinois 60604 

I also certify that I mailed a correct copy of the CAFO by first-class mail to: 

On the g day of6qYit}14h-tY 2012. 

Ed Fasko 

Air Pollution Group 

Ohio EPA NEDO 

2110 East Aurora Road 

Twinsburg, Ohio 44087 

o'4z M4 

etfa Shaffer 

AEBAB, PAS 

7001 HoW COCO 7447 &32