Need to return call by / at/between and

. Signature: Project No.: 0 317.0 2 .005.510 Page 1 of 3

Project Name: DMR20 1 3 

### CBI?

Yes

No TELEPHONE CALL RECOR D Incoming Outgoing Date: 02/1 3 /15 Time: 1 2:30 am

pm

Company Name: EPA Region 2 ERG Staff Name: Kimberly Bartell

Contact Name: M urray Lantner Contact Phone Number: ( 2 12 ) 637

- 3976

General Subject: 2013 DMR Discharges for Bacardi Corp



### TOPICS DISCUSSED AND ACTION TAKEN

Bacardi Corp, Catano, PR (PR0000591)

– Misc Foods and Beverages Sulfide discharges for outfall 001

Puerto Rico Contacts: Stephen Venezia

– EPA R2 ( venezia.stephen@epa.gov , permitting authority for Puerto Rico): 212

- 637

- 3856 Murray Lantner: 212

- 637

- 3976, lantner.murray@epa.gov

On February 20, I call ed Mr. Lantner about the Bacardi facility. He stated that he is more than willing to have a call with us to discuss the discharges next week on Mon (2/23) or Fri (2/27).

On Fe bruary 23, at 1:15pm we had the following conference call with Mr. Lantner:

ER G: Kim Bartell, Liz Gentile

EPA EAD: Bill Swietlik EPA R2: Murray Lantner

Mr. Lantner stated that not much has changed in the way wastewater discharges are handled at this facility in many years. The facility’s fact sheet describes that the wastewater at the facility has a lot of dilution with wastewater from treatment plants before discharge to the Atlantic Ocean. The facility discharges around 1

- 2 MGD and mixes with 100 MGD before final discharge. The facility’s sulfide limits are based on water quality standards. The facility makes rum and sulfur is present in the molasses. The facility has a chemical system to remove sulfur from wastewater after distillation, but prior to an anaerobic digester. The wastewater goes through the anaerobic digester and then discharges through a diffuser to the Atlantic Ocean.

The facility is under a consent decree from 2006. The Environmental Quality Board in Puerto Rico is looking to

work with R2 to close out the consent decree.

Mr. Lantner also suggested looking at the Diageo facility in Saint Croix of the Virgin Islands to see what sulfide discharges they have since they also make rum.

See email communication below with Mr. Lantner and attached documents.Need to return call by / at/between and

. Signature: Email Communication with EPA R egion 2

– Murray Lantner

From: lantner.murray@epa.gov To: Kimberly Bartell CC: Elizabeth Gentile, William Swietlik

Date: 2/23/15 1:56 PM Subject: Bacardi Permit

Good speaking with you all today I’ve attached what I have in terms of current permits and some other background

documents.

The Application Form 2C provices information on what processes contribute wastewater.

Karen can you double check that I sent the ERG contacts the most up to date Bacardi Fact Sheet, specifically they are

interested in th e how the Sulfide limit was developed.

Attachments:

 Bacardifactsheet_draft_nov)7.pdf

 FinalBacardiMod_5_20_12.pdf

 Bacardi Final Permit.pdf

 BacardiMod

- StatBasis.pdf

 Bacardi Corporation

– Application Form 2C (Revised).pdf

Murray Lantner, P.E., Environmental Engineer Compliance Section EPA Region 2, Water Compliance Branch 290 Broadway, 20th Floor New York, NY 10007 (212) 637

- 3976 (Office) (212) 637

- 3953 (Fax)

Email: Lantner.Murray@epa.gov

From: lant ner.murray@epa.gov To: Kimberly Bartell CC: Elizabeth Gentile, William Swietlik

Date: 2/23/15 11:59 AM Subject: RE: Call to Discuss DMR Discharges for Bacardi Corp

Kimberly:

I can speak at 1:15 PM today. Should I call you at that 517 number at that time ?

Murray Lantner, P.E., Environmental Engineer Compliance Section EPA Region 2, Water Compliance Branch 290 Broadway, 20th Floor New York, NY 10007 (212) 637

- 3976 (Office) (212) 637

- 3953 (Fax)

Email: Lantner.Murray@epa.gov

From: Kimberly Bartell To: lantner.murray@epa.govNeed to return call by / at/between and

. Signature: CC: Elizabeth Gentile, William Swietlik

Date: 2/20/15 2:30 PM Subject: Call to Discuss DMR Discharges for Bacardi Corp

Mr. Lantner:

Thank you for your time on the phone today. As discussed, Eastern Research Group, Inc. (ERG) is a contractor for EPA Office of Water, Engineering and Analysis Division (EAD). We would like to set up a call with you to discuss sulfide discharges from Bacardi Corporation in Catano, PR (PR0000591).

As b ackground, EPA EAD reviews publicly

- available DMR and TRI data to fulfill its review obligation under the Clean Water Act. The CWA requires EPA to annually review and, if appropriate, revise its water pollution control technology

based regulations (effluen t guidelines), that limit the discharge of pollutants to waters of the U.S. from various categories of industrial facilities. EAD is currently conducting its 2015 annual review of existing effluent guidelines and potential industrial guidelines which may n eed to be included (see http://www.epa.gov/guide/304m/ for further information). EAD will discuss this review and the results in its 2015 Effluent Guidelines Program Plan scheduled for publication in the

Feder al Register sometime in 2015 or 2016. As part of the 2015 annual review, EAD is evaluating the data in discharge monitoring reports from 2013.

We would like to discuss wastewater discharge practices at the Bacardi facility with you, specifically focusing on sulfide discharges. We are free at the following times on Monday and Friday of next week. Please let us know what day and time work best for you.

Monday (2/23) from 1 to 2pm Friday (2/27) from 9 am to 12 pm

Please call me at (517) 515

- 1721 if you hav e any questions. If you would like to speak directly with EAD regarding this request, you can contact William F. Swietlik of EPA's Office of Water/Engineering Analysis Division by phone at (202)

566

- 1129 or by email: swietlik.william@epa.gov

.

Thank you!

Kim

-------------------------------------- Kimberly D. Bartell Environmental Engineer Eastern Research Group, Inc. kimberly.bartell@erg.com

Phone: 517

- 515

- 1721Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 1 of 3 Pages

UNITED STATES

ENVIRONMENTAL PROTECTION AGENCY

REGION II 290 Broadway
New York, New York 10007

STATEMENT OF BASIS

DRAFT NPDES PERMIT TO DISCHARGE

INTO THE WATERS OF THE UNITED STATES

NPDES No.: PR0000591

Name and Address of Applicant:

Bacardi Corporation

PO Box 363549 San Juan, Puerto Rico 00936 - 3549

hereinafter referred to as "the permittee" is auth orized to discharge from a facility

located at

Bacardi Corporation

State Road No. 165, Km 2.6

Industrial Area Cataño, Puerto Rico 00632

to receiving waters named:

Atlantic Ocean

Classification: SC

I. LOCATION OF DISCHARGE

The above named applicant has applied for a Nationa l Pollutant Discharge Elimination System (NPDES) permit, to the U.S. Environmental Pr otection Agency (EPA) to discharge into the designated receiving water. The location of the discharge, Outfall 001, is described by the following U.S.G.S. coordinates:

Outfall latitude longitude.

001 18° 27' 59" 66o 09' 30"

A map showing the location of the facility is in At tachment I.Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 2 of 3 Pages

II. DESCRIPTION OF APPLICANT’S FACILITY AND DISCHAR GE

The permittee is engaged in the production of ethyl alcohol in the form of rum (SIC No. 2085). This rum is produced by the fermentation an d distillation of molasses. The facility currently operates at a maximum production rate of approximately 115,000 proof gallons per day, with an average production rate of approxi mately 83,600 proof gallons per day. Within the last three years the permittee has modif ied the production process to extract more product from the raw molasses. The permittee i ncluded in its application the intention to increase production within the term of this NPDES permit to approximately 128,700 proof gallons per day.

The flow of Bacardi discharge 001 is tied into a co mbined outfall which discharges 3,600 feet off shore. This outfall discharges effluent t o the Atlantic Ocean from the Bayamón Regional Wastewater Treatment Plant (RWWTP), the Pu erto Nuevo RWWTP and the Bacardi Facility. The outfall system is owned and operated by the Puerto Rico Aqueduct and Sewerage Authority (PRASA) to dispose of treate d effluents from the Bayamón and Puerto Nuevo RWWTPs. The Bayamón RWWTP and Puerto Nuevo RWWTP are municipal sewage treatment plants operated by the P RASA and their discharges are regulated by separate NPDES permits. The Atlantic Ocean is classified as SC water by the Puerto Rico Water Quality Standards Regulation (PRWQS). The receiving water has been classified SC by the Environmental Quality Boa rd (EQB) of the Commonwealth of Puerto Rico. A detailed description of the type an d quantity of pollutants which are to be discharged is listed in the draft Permit.

The PRASA Bayamón and Puerto Nuevo RWWTPs have been granted a waiver from Secondary Treatment Requirements under Section 301( h) of the Clean Water Act. A renewal of this waiver is included as part of the c urrent renewal of the NPDES permits

for those facilities. The EPA Decision Document fo r the proposed granting of a waiver under Section 301(h) of the Clean Water Act is incl uded as part of the administrative record for the draft permits for the PRASA Puerto N uevo and Bayamón facilities.

III. DESCRIPTION OF LIMITATIONS AND CONDITIONS

A brief summary of the effluent limitations, monito ring requirements and other conditions of the draft permit are described in Att achment II.

IV. STATE CERTIFICATION REQUIREMENTS

State Certification requirements, based upon a fina l Water Quality Certificate (WQC) issued by the EQB dated June 12, 2007, are describe d in Attachment III. Review and appeals of limitations and conditions attributable to this certification shall be made through the applicable Commonwealth procedures and may not be through EPA procedures.Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 3 of 3 Pages

V. ENVIRONMENTAL JUSTICE

EPA has performed an Environmental Justice Evaluati on for this permit action. The analysis is included as Attachment VI.Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 4 of 3 Pages

VI. PROCEDURES FOR REACHING A FINAL DECISION ON TH E DRAFT

PERMIT

These procedures, which are set forth in 40 CFR Par t 124, are described in the public notice of preparation of this draft permit. Inclu ded in the public notice are requirements for the submission of comments by a specified date , procedures for requesting a hearing and the nature of the hearing, and other procedure s for participation in the final agency

decision.

VII. EPA CONTACT

Additional information concerning the draft permit may be obtained between the hours of 8:00 A.M. and 4:30 P.M., Monday through Friday from :

Walter E. Andrews, Chief Water Programs Branch U.S. Environmental Protection Agency, Region II 290 Broadway, 24th Floor New York, New York 10007 (212) 637 3876

Carl Axel Soderberg, Director US Environmental Protection Agency, Region II

Caribbean Environmental Protection Division-EDIF Ce ntro Europa Apt. 417 San Juan, Puerto Rico 00907 4127 (787) 729 6951Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 1 of 3 Pages

ATTACHMENT II

DESCRIPTION OF LIMITATIONS AND CONDITIONS

The effluent limitations, monitoring requirements, and other conditions of this permit are described in the draft permit. The effluent limita tions in the permit are equivalent to the most stringent values specified in the applicable t echnology based guidelines or water quality based limitations. The anti-backsliding de cisions are made in accordance with the EPA Region II Antibacksliding Policy.

Water Quality-Based Limits

Discharge Outfall 001: Treated process, sanitary, utility, and miscellane ous wastewater.

The effluent limitations listed in Table A-1 for Ar senic; five-day Biochemical Oxygen Demand (BOD5); Cadmium; Color; Copper; Dissolved Ox ygen; Enterococci; Fecal Coliforms; Flow; Lead; Mercury; Nickel; Nitrogen; Oil and Grease; pH; Solids and Other Matter; Sulfide (undissociated H 2 S); Surfactants as Methylene Blue Activate Substances (MBAS), Suspended, Colloidal or Settleab le Solids; Taste and Odor Producing Substances; Temperature; Total Coliforms; Thallium; Turbidity; Zinc and Special Conditions 1 through 18 are as imposed in t he final Water Quality Certificate (WQC) issued by the the Puerto Rico Environmental Q uality Board (EQB), dated June
12, 2007.

The WQC was issued by the EQB for the purpose of as suring compliance with EQB's water quality standards and compliance with other a ppropriate requirements of Commonwealth law as provided by Section 401(d) of t he Clean Water Act. The permittee, in a joint request with the Puerto Rico Aqueduct and Sewer Authority (PRASA) requested a mixing zone for the combined ou tfall from the Bacardi, and PRASA Puerto Nuevo and Bayamón facilities.

Water quality-based Effluent limitations included i n the WQC incorporate the revised Critical Initial Dilution (CID) factor of one hundr ed and four (104) that was presented in the Mixing Zone Application for the Bayamón/Puerto Nuevo Regional Wastewater Treatment Plants and Bacardi Corporation Wastewater Treatment Plant Outfall System (March 2006). Where are there instances of a less stringent water quality based limitation than in the previous permit, it is the r esult of the calculation based on the approved mixing zone, and what discharge is allowab le without causing or contributing to a violation of water quality standards at the ed ge of the mixing zone.

Suspended, Colloidal, or Settleable Solids

A footnote (#) was added in Table A 1 under the pa rameter Suspended, Colloidal, or Settleable Solids to clarify that testing for these parameters should be conducted for

Settleable Solids.Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 2 of 3 Pages

Special Conditions:

Special Conditions were included as written in the final water quality certificate issued by the Puerto Rico EQB dated June 12, 2007, with the f ollowing additions/clarifications:

Special Condition 5: Sulfide (Undissociated H 2 S)

The WQC issued by EQB includes an effluent limitati on and monitoring requirement for sulfide (undissociated H2S). The WQC does not spec ify an analytical method for H2S in Special Condition No. 5 of the WQC which requires t hat the analytical method which achieves the lowest possible detection level must b e utilized. EPA has included footnote @ for sulfide in Table A.1 which specifies a partic ular methodology, as well as a clarification to Special Condition No. 5.

Special Condition 19: Whole Effluent Toxicity

EPA has included an effluent limitation for Whole E ffluent Toxicity (WET) for the combined discharge of the Bacardi, and PRASA Bayamó n and Puerto Nuevo wastewater treatment facilities. WET monitoring requirements have also been included for the combined discharge and the discharge 001 from the B acardi facility. Similar monitoring requirements have been incorporated into the NPDES permits for the PRASA Bayamón

and Puerto Nuevo facilities. A detailed discussion of WET requirements is included as

Attachment IV to this fact sheet.

Technology-Based Limits

Discharge Outfall 002: The limitations for mass loading of BOD5 and TSS fr om the previous permit have been revised, as has the percent removal requirement for BOD loading. An explanation of the

modified limitations is included in Attachment V to this fact sheet.

Discharge Outfalls 003 & 004:

BOD 5 - The 30 day average effluent limitation and the 30 day average percent removal limitation in the draft permit are technology based BCT (Best Conventional Pollutant Control Technology) limits based on Best Profession al Judgement (BPJ) using the Effluent Limitations Guidelines (ELG) for secondary treatment described in 40 CFR §133.102(a)(1) and (3), respectively. These limita tions are equal to or more stringent than the existing NPDES permit in accordance with t he antibacksliding requirements in 40 CFR § 122.44(l). The Daily Maximum limitation i s based on the water quality-based limitation of 5.0 mg/l, which is more stringent tha n the technology-based 7-day average limit of 45.0 mg/l. Both the 30-day average limit and the daily maximum limit are included to ensure compliance with secondary treatm ent requirements.Name of Preparer: Karen O’Brien Permit No. PR000 0591

Date: November 8, 2007 Page 3 of 3 Pages

Total Suspended Solids - The 30 day average and 7 day average effluent li mitations and the 30 day average percent removal limitation are t echnology based BCT (Best Conventional Pollutant Control Technology) limits b ased on Best Professional Judgement (BPJ) using the Effluent Limitations Guid elines (ELG) for secondary treatment described in 40 CFR § 133.102(b)(1) and ( 3), respectively. These limitations are equal to or more stringent than the existing NP DES permit in accordance with the antibacksliding requirements in 40 CFR § 122.44(l).

Permit Expiration: This permit is being issued for a term of five yea rs.

General Conditions: These conditions apply to all permits as required by 40 CFR Part

122.41.

### Félix Mateo, P.E.

Bacardí Corporation

NPDES No. PR0000591 Page 1

ATTACHMENT III



### RETURN RECEIPT REQUESTED

Félix Mateo, P.E.

Environmental Director Bacardí Corporation

P.O. Box 363549 San Juan, Puerto Rico 00936-3549

Dear engineer Mateo:

Re: Water Quality Certificate and Authorization of a Mixing Zone (MZ) and a Compliance Plan Bacardí Corporation State Road No. 165, Km 2.6

Industrial Area Cataño, Puerto Rico

NPDES No. PR0000591

We have received and reviewed the application for a permit under Section 402, National Pollutant Discharge Elimination System (NPDES) of the Federal Clean Water Act as amended (33 U.S.C. 466 et. seq.) (the Act) for the referenced plant. A lso, we have received and reviewed a request to obtain Water Quality Certificates (WQCs), submitted by the Puerto Rico Aqueduct and Sewer Authority (PRASA) and the Bacardí Corporation (Bacardí). In addition PRASA and Bacardí submitted an a pplication for the definition and authorization of a Mixing Zone and the approval of Comp liance Plans, for the combined discharge of the Puerto Nuevo and Bayamón Regio nal Wastewater Treatment Plants and of Bacardí, pursuant Articles 5 and 6 of the Puerto Rico Water Quality Standards Regulation (PRWQSR), as amended.

Pursuant to Section 401 (a) (1) of the Act, after due consideration of the applicable provisions established in the PRWQSR and in Sections 208(e), 301, 302, 303, 304(e), 306 and 307 of the Act, it is certified that there is reasonable assurance as dete rmined by the Environmental Quality Board (EQB) that the alluded discharge will not cause

### Félix Mateo, P.E.

Bacardí Corporation

NPDES No. PR0000591 Page 2

violations to the applicable water quality standards at the receiving water body, if the limitations and monitoring requirements on Tables A-1, A-2 and A-3 are met. The conditions specified in the aforementioned tables shall be incorporated into the NPDES permit in order to satisfy the provisions of Section 301 (b) (1) (C) of the Act.

If you have any objection to the WQC, you have the right to request a reconsideration to EQB within the statutory period (twenty (20) calendar days from the d ate that the WQC is received).

This Agency reserves the right to comment at a later date concerning othe r environmental aspects of the discharge.

Angel O. Berrios Silvestre, P.E. Eugene Scott Amy, Esq.

Associate Member Vice Chairman

Carlos W. López Freytes, Esq.

Chairman

NV/dcc

c: Walter Andrews, EPA-Region II Jeffrey Gratz, EPA-Region II

G:\División Permisos Fuentes Precisadas\WORD\Nivia\cca\WQC_Bacardi_PR0000591. doc

### SPECIAL CONDITIONS

NPDES No. PR0000591

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

1. The flow of discharge 001 shall not exceed the limitation of 7,570.80 m 3 

### /day (2.0 MGD) as daily maximum. No increase in flow shall be authorized with out a recertification from the Puerto Rico Environmental Quality Board (EQB). 1,4,5



### 2. No toxic substances shall be discharged, in toxic concentrations, other than those allowed as specified in the NPDES permit. Those toxic substances included in the Permit Renewal Application, but not regulated by the permit, shall not e xceed those concentrations as specified in the applicable regulatory limitations. 1,2



### 3. The samples taken for the analysis of cyanide and mercury shall be analyzed using t he analytic method approved by the Environmental Protection Agency (EPA) with the lowest possible detection level, in accordance with Section 6.2.3 of the Puerto Rico Water Quality Standards Regulation (PRWQSR), as amended. 4



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



### 5. The permittee shall use the approved EPA analytical method, with the lowe st possible detection limit, in accordance with the 40 CFR Part 136 for Sulfide (as S) . Also, the permittee shall complete the calculations specified in Method 4500-S -2 

### F, Calculation of Un-ionized Hydrogen Sulfide, of Standards Methods 18 th 

### Edition, 1992, to determine

the concentration of undissociated H 2 

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

### S should be reported as “below

detection limit”. 2,3



### 6. The solid wastes (sludge, screenings and grit) generated due to the treatment sys tem operation shall be:

a. Disposed in compliance with the applicable requirements established in t he 40 CFR, Part 257. A semiannual report shall be submitted to EQB and EPA notifying the method or methods used to dispose the solid wastes gener ated in

### Special Conditions

NPDES No. PR0000591 Page 2

the facility. Also, copy of the approval or permit applicable to the di sposal

method used shall be submitted, if any.

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

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

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

These notifications shall include the following information:

a) 

### Spill material
b) 

### Spill volume
c) 

### Measures taken to prevent the spill material to gain access to any body of

water

This special condition does not relieve the permittee from its responsibility to ob tain the corresponding permits from the EQB’s Solid Wastes Program and other state and federal agencies, if any. 4,6



### 7. A log book should be kept for the material removed from the treatme nt system, such as sludge, screenings and grit, detailing the following items:

a. 

### Removed material, date and source of it.

b. 

### Approximate volume and weight.

c. 

### Method by which it is removed and transported.

d. 

### Final disposal and location.

e. 

### Person that offers the service.

A copy of the Non-Hazardous Solid Waste Collection and Transportation Servi ce Permit issued by the authorized official from the EQB should be attached to the log

book. 3

### Special Conditions

NPDES No. PR0000591 Page 3

8. The sludge produced within the facility due to the operation of the treatment system shall be analyzed and all constituents shall be identified as required by “Standards for the Use or Disposal of Sewage Sludge” (CFR Number 40, Part 503). The sludge s hall be disposed properly in such manner that water pollution or other adverse effects to surface waters or to ground water do not occur. 4,6



### 9. If any standard or prohibition to the sanitary sludge disposal is promulg ated and said prohibition or standard is more stringent than any condition, rest riction, prohibition or standard contained in the NPDES permit, such permit shall be modified acc ordingly or revoked and reissued to be adjusted with regard to such prohibition or standard. 6



### 10. No changes in the design or capacity of the treatment system will be permitt ed without the previous authorization of EQB. 5



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



### 12. The permittee shall install, maintain and operate all water pollution control equipmen t in such manner as to be in compliance with the applicable Rules and Regulations. 1,4



### 13. The flow measurement device for the discharge 001 shall be periodically calibrated and properly maintained. Calibration and maintenance records must be kept in compliance with the applicable Rules and Regulations. 4,5



### 14. The sampling point for discharge 001 shall be located immediately after the pri mary flow measuring device of the effluent of the facility.

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

"PUNTO DE MUESTREO PARA LA DESCARGA 001"

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



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

### Special Conditions

NPDES No. PR0000591 Page 4

a. 

### The MZ is delineated by the following points (See Diagram-I):

Geographic Coordinates *

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

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

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

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

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

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

* NAD 83 State Plane Coordinates

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

feet.

b. 

### The MZ is defined for the following parameters:

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at the Edge

of the MZ

Arsenic (As) (μg/l) 36 1.4 Cadmium (Cd) (μg/l) 16.00 9.30

### Special Conditions

NPDES No. PR0000591 Page 5

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at the Edge

of the MZ

Color (Pt-Co) 98,621 * 1 

### Copper (Cu) (μg/l) 3,836 3.1 Cyanide, Free (CN) (μg/l) 40 1 Dissolved Oxygen (mg/l) Monitoring Only ≥4.0 Lead (Pb) (μg/l) 43.8 8.1 Mercury (Hg) (μg/l) 0.6 0.051 Nickel (Ni) (μg/l) 569 8.2 Nitrogen (mg/l) (NO 2 

### , NO 3 

### , NH 3 

### ) 207.000 5.000 pH (SU) 6.0 - 9.0 7.3 - 8.5 Silver (Ag) (μg/l) 81.2 2.0 Sulfide (μg/l) (undissociated H 2 

### S) 108,401 2 Surfactants (MBAS) (μg/l) 1,657 500
Temperature ° F ( ° C) 105.8 (41) ** 2 

### Thallium (Tl) (μg/l) 36.3 6.3 Turbidity (NTU) 11,498 10 Zinc (Zn) (μg/l) 3,269.00 81.00

c. 

### The permittee shall conduct annually definitive acute and chronic toxicity tests using the organisms Mysidopsis bahia , Cyprinodon variegatus and Arbacia punctulata

for the wastewater discharge identified as 001.

d. 

### The toxicity test shall be conducted according to the most recent edition s of the following publications of EPA:

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

October 2002.

2) Short Term Methods for Estimating the Chronic Toxicity of Effluents an d Receiving Waters to Marine and Estuarine Organisms , (EPA-821-R-02-013) Fourth Edition, October 2002.

* The color at the edge of the mixing zone shall no t exceed the color of the receiving water body (background monitoring station). ** No heat may be added to the waters of Puerto Rico, whic h would cause the temperature of any site to exceed 90 o F (32.2 o C).

### Special Conditions

NPDES No. PR0000591 Page 6

e. 

### The procedures, methods, techniques, conditions, etc., included in the abov e

mentioned publications shall be followed at all times. If the permittee want s to use other procedures, methods, etc., because he understands that:

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

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

then, the permittee shall, prior to the utilization of other procedures, me thods, etc., obtain the EPA and EQB written approval for their usage.

f. 

### The effluent samples for the toxicity tests shall be used in or before 36 h ours after being collected.

g. 

### A report on the toxicity tests conducted shall be submitted to the EQB, during the sixty (60) days period after the tests were conducted. This report sha ll be prepared according to the aforementioned publications of EPA.

h. 

### Based on the review of the test results, the EQB can require additional toxicity tests, including toxicity/treatability studies and can revoke the final mixing z one authorization according with Section 5.14 of the PRWQSR.

i. 

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

j. 

### The discharge shall not cause the growth or propagation of organisms th at negatively disturb the ecological equilibrium in the areas adjacent to the mixing

zone.

k. 

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

l. 

### The permittee shall maintain in good operating conditions the discharge syste m [ discharge outfall (land and submarine), diffuser, ports, etc. ] . At least once a year, the discharge system shall be inspected to determine if some repairs, replacing, etc., on the discharge system is required. A report of such inspections

### Special Conditions

NPDES No. PR0000591 Page 7

shall be submitted to EPA and EQB not later than sixty (60) days after the

performance of the inspection.

m. 

### The EQB can require that the permittee conduct bioaccumulation studies, dye studies, water quality studies or any other pertinent studies. If the EQB require one or more of the aforementioned studies, the permittee will be notified to conduct such study(ies). One hundred and twenty (120) days after the notification of the EQB, the permittee shall submit, for evaluation and ap proval of the EQB, a protocol to conduct such study(ies). Sixty (60) days after t he EQB approval, the permittee shall initiate such study(ies). Ninety (90) days a fter conducting such study(ies), the permittee shall submit a report that includes the results of such study(ies).

n. 

### The permittee shall conduct a dye study to verify the Critical Initial Dilution and the plume behavior within the mixing zone. The dye study shall be conducted ninety (90) days after the written approval of the corresponding Protocol and Quality Assurance Project Plan (QAPP). Such Protocol and QAPP shall be submitted to EQB ninety (90) days after the EDP. This study shall consist of at least one set of the required samples, as established in the QAPP fo r a complete sampling event.

o. 

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

18. Within a period not greater than sixty (60) days from the EDP, the permittee shall initiate a study to collect all available information on key factors affecting regulated bacterial concentrations in the receiving waters. The implementation of such study shall predict and verify enterococci, fecal and total coliforms and residual chlorine concentrations in the receiving waters based on the concentrations present on the discharge of Puerto Nuevo and Bayamón Regional Wastewater Treatment Plants, the combined discharge of Bacardí, the point of discharge of the combined effluent of the three facilities, the edge of the mixing zone, the background station and local shoreline stations. The study shall comply with the protocol approved by EQB. 2,4,7



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

### Special Conditions

NPDES No. PR0000591 Page 8

Parameters Interim Limits ‡ 

### Final Limits

Enterococci (col/100 ml) Monitoring only *

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

Total Coliforms (col/100 ml) 1,600,000 ***

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

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

** The Fecal Coliforms geometric mean of a series of representative samples (at least five samples) of the water taken sequentially in a given instance shall not exceed 200 colonies/100 ml. Not more than 20 percent of the samples shall exceed 400 colonies/100 ml.

*** The Total Coliforms geometric mean of a series of representative samples (at least five samples) of the water taken sequentially in a given instance shall not exceed 10,000 colonies/100 ml.

b. The interim limits will be effective during the period beginning on the EDP and lasting through EDP + 24 months, unless, following the terms and conditions of the approved study protocols, the permittee has requested a modification of the final limits of the WQC for these parameters because the results of the studies performed show that it is feasible to include other effluent limits or to define a mixing zone for these parameters in the WQC. In such case, the interim limits will stay in effect until the EQB and EPA issue a final determination regarding the requested modification. If it is determined that the WQC could be modified as requested, then the interim limits will continue in effect until the EQB and EPA issue a final modified WQC and

### Special Conditions

NPDES No. PR0000591 Page 9

final modified NPDES Permit, respectively. If the studies reflect that a

modification to the WQC is not feasible, the permittee must comply with the final limits from EDP + 24 months + 1 day.

c. The permittee must complete the study within the EDP + 16 months.

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

e. By no means it should be understood that the performance of the study described in this special condition exempts the Puerto Nuevo and Bayamón Regional Wastewater Treatment Plants and the Bacardí Corporation from the requirement to disinfect the effluent to be discharged through the individual points of discharge authorized by the corresponding NPDES permits.

19. The conditions of this WQC are considered as separate. Therefore, if the applicability of any condition of this WQC is stayed due to any circumstance, the remaining conditions of this WQC will not be affected. 5



### 20. The EQB, by the issuance of the WQC, does not relieve the applicant from its responsibility to obtain additional permits or authorizations from the EQB as required by law. The issuance of the WQC shall not be construed as an authorization to conduct activities not specifically covered in the WQC, which will cause water pollution a s defined by the PRWQSR. 5



### 1, 2, 3, 4, 5, 6 and 7 see page 11

### Special Conditions

NPDES No. PR0000591 Page 10

DIAGRAM-I

Bacardi Corporation Mixing Zone

Geographic Coordinates *

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

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

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

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

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

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

* NAD 83 State Plane Coordinates.

1 2

5 4

3

6 BG

### Special Conditions

NPDES No. PR0000591 Page 11

1. 

### According to Article 1, Puerto Rico Water Quality Standards Regulation as Amended.

2. 

### According to Article 3, Puerto Rico Water Quality Standards Regulation as Amended.

3. 

### According to Article 5, Puerto Rico Water Quality Standards Regulation as Amended.

4. 

### According to Article 6, Puerto RicoWater Quality Standards Regulation as Amen ded.

5. 

### According to the Environmental Public Policy Act of September 22, 2004, Act No. 416, effective since March 22, 2005.

6. 

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

7. 

### According to the Code of Federal Regulation Number 40 (40 CFR), Part 131.40, as amended (Federal Register/Volume 69, No. 16/Monday, January 26, 2004).TABLE A-1 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591During the period beginning on EDP and lasting through EDP + 5 yearsthe permittee is authorized to discharge from outfallserial number 001 the combined wastewaters described at the final of this Table. Such discharge shall be limited and monitoredby the permittee as specified below:Receiving Water Name and Classification: Atlantic Ocean, SCEffluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsMonthly Average Daily Maximum MeasurementsFrequencySample TypeArsenic (As) (μg/l)**2,4**36.4 Monthly GrabBOD**5**(mg/l)**1,2,3,4**7 17,700 Monthly CompositeCadmium (Cd) (μg/l)**2,3,4**16.00 Monthly GrabColor (Pt-Co Units)**2,3,4**98,621 Monthly GrabCopper (Cu) (μg/l)**2,3,4**3,836 Monthly GrabCyanide, Free (CN) (μg/l)**2,3,4**7740 Monthly GrabDissolved Oxygen (mg/l)**1,2,3,4**---- Daily GrabFlow m**3**/day (MGD)**4,5**7,570.80 (2.0) Continuous RecordingLead (Pb) (μg/l)**2,3,4**43.8 Monthly GrabMercury (Hg) (μg/l)**2,3,4**7 0.67 Monthly GrabNickel (Ni) (μg/l)**2,3,4**569 Monthly GrabTABLE A-1 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591Receiving Water Name and Classification: Atlantic Ocean, SCEffluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsMonthly Average Daily Maximum MeasurementsFrequencySample TypeNitrogen (NO**3**, NO**2**, NH**3**)(mg/l)**2,3,4**207.000 Monthly GrabOil and Grease (mg/l)**2,4**The water of Puerto Rico shall be substantially freefrom floating non-petroleum oils and greases as wellas petroleum derived oils and greases.Twice perMonthGrabpH (SU)**2,3,4**Shall always lie between 6.0 – 9.0. Daily GrabRadioactive Materials(picocuries/l)**2,4**----φGrabSilver (Ag) (μg/l)**2,3,4**81.2 Monthly GrabSolids and Other Matter**2,4**The water of Puerto Rico shall not contain floatingdebris, scum or other floating materials attributableto discharges in amounts sufficient to be unsightlyor deleterious to the existing or designated uses ofthe water body.---- ----Sulfide (undissociated H**2**S)(μg/l)**2,3,4**7108,401 Monthly GrabTABLE A-1 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591Receiving Water Name and Classification: Atlantic Ocean, SCEffluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsMonthly Average Daily Maximum MeasurementsFrequencySample TypeSurfactants (as Methylene BlueActivate Substances)(μg/l)**1,2,3,4**1,657 Monthly GrabSuspended, Colloidal orSettleable Solids (ml/l)**1,2,4**Solids from wastewater sources shall not causedeposition in, or be deleterious to, the designateduses of the waters.Daily GrabTaste and Odor-producingSubstances**2,4**Shall contain none in amounts that will render anyundesirable taste or odor to edible aquatic life.---- ----Temperature**o**F (**o**C)**2,3,4**105.8 (41) Daily GrabThallium (Tl) (μg/l)**2,3,4**36.3 Monthly GrabTurbidity (NTU)**2,3,4**11,498 Monthly GrabZinc (Zn) (μg/l)**2,3,4**3,269.00 Monthly GrabSpecial Conditions See attached sheet, which contains special conditionsthat constitute part of this certification.---- ----TABLE A-1 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591Receiving Water Name and Classification: Atlantic Ocean, SCNotes:To comply with the monitoring requirements specified above, samples shall be taken at the outfall of discharge serial number001.All flow measurements shall achieve accuracy within the range of plus or minus 10%.The wastewaters to be discharged from Bacardí, through the discharge point 001 are the following:a.boiler blowdown, wash and extraction.b.mosto (distillation, fermentation and washes).c.clarification plant wash.d.anaerobic treatment plant discharges – cooling tower.e.flavor steam traps.f.sulfur plant rinses and condensate.g.bottling plant and broken bottles wash.h.process washes (lock).i.molasses unloading and seal flush.j.fermentation floor drains.k.distillery floor wash.l.barrel wash.m.cooling tower wash.n.cooling towers blowdown and other.o.CO**2**plant condensate and washes.p.sanitary plant (discharge 003).q.sanitary plant (discharge 004).r.process water treatment steam traps.φThe permittee shall implement a monthly monitoring program using the analytical method approved by EPA with the lowestpossible detection level, in accordance with Section 6.2.3 of the PRWQSR as amended, for one (1) year period, after whichthey will be conducted annually. The monitoring programshall commence no later than thirty (30) days after theEQB’swritten approval of the Quality Assurance Project Plan (QAPP). The QAPP must be submitted for evaluation and approvalof EQB no later than thirty (30) days after the EDP. The results of the monitoring program shall be submitted to EQB andEPA-Region II no later than sixty (60) days of completion of the one year monitoring program. Based on the evaluation ofthe results obtained, EQB will determine if an effluent limitation is necessary for these parameters. In such case the WQCwill be reopened to include the applicable effluent limitation if considered necessary.7 The effluent limitation for BOD**5**is based on the Mixing Zone Application for the PRASA and Bacardí Corporation, afterdetermining that there is a reasonable assurance that this limit will not cause violations to the water quality standard forDissolved Oxygen for Class SC.7 See Special Condition 3.7 The samples shall be analyzed using the method approvedby EPA in letter of February 20, 2007.7 See Special Condition 5.1, 2, 3, 4, 5, 6 and 7 see page 11 of Special ConditionsTABLE A-2 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591Receiving Water Name and Classification: Atlantic Ocean, SCDuring the period beginning on EDP and lasting through (EDP + 24 months)** the permittee is authorized to discharge fromoutfall serial number 001 the combined wastewaters describedat the final of Table A-1. Such discharge shall be limitedandmonitored by the permittee, as specified below:Effluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsMonthly Average Daily Maximum * MeasurementsFrequencySampleTypeEnterococci (col/100 ml)**1,2,4,7**---- Monthly GrabFecal Coliforms (col/100 ml)**1,2,4,7**1,200,000 Monthly GrabTotal Coliforms (col/100 ml)**1,2,4,7**1,600,000 Monthly GrabNotes:To comply with the monitoring requirements specified above, samples shall be taken at the outfall of discharge serial number001.* The geometric mean of a series of representative samples(at least five samples) of the water taken sequentiallyin a giveninstance.** See Special Condition 18.b.1, 2, 3, 4, 5, 6 and 7 see page 11 of the Special Conditions.TABLE A-3 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS NPDES NO.PR0000591During the period beginning on (EDP + 24 months + 1 day)* and lasting through EDP + 5 years the permittee is authorized todischarge from outfall serial number 001 the combined wastewaters described at the final of Table A-1. Such discharge shall belimited and monitored by the permittee, as specified below:Receiving Water Name and Classification: Atlantic Ocean, SCEffluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsMonthly Average Daily Maximum MeasurementsFrequencySampleTypeEnterococci(colonies/100 ml)**1,2,4,7**The enterococci density in terms of geometric mean of atleast 5 representative samples taken sequentially shall notexceed 35/100 ml. No single sample should exceed theupper confidence limit of 75% using 0.7 as the log standarddeviation until sufficient site data exist to establish a sitespecific log standard deviation.Monthly GrabFecal Coliforms(col/100 ml)**1,2,4,7**The coliforms geometric mean of a series of representativesamples (at least five samples) of the water taken sequentiallyin a given instance shall not exceed 200 colonies/100 ml.Not more than 20 percent of the samples shall exceed 400colonies/100 ml.Monthly GrabTotal Coliforms(col/100 ml)**1,2,4,7**The coliforms geometric mean of a series of representativesamples (at least five samples) of the water taken sequentiallyin a given instance shall not exceed 10,000 colonies/100 ml.Monthly GrabEffluent CharacteristicsGross Discharge LimitationsMonitoring RequirementsNotes: To comply with the monitoring requirements specifiedabove, samples shall be taken at the outfall of discharge serialnumber 001.* See Special Condition 18.b.1, 2, 3, 4, 5, 6 and 7 see page 11 of the Special Conditions.Attachment IV Page 1 of 4 Pages

Permit No. PR0000591

ATTACHMENT IV

Special Condition No. 19: Whole Effluent Toxicity R equirements

The previous permit issued to the Bacardi Corporati on included a conditionally approved mixing zone, and required toxicity testing of the effluent from the Bacardi Corporation, the PRASA Bayamón and the PRASA Puerto Nuevo wastewater treat ment plants. It was agreed between these dischargers and the Puerto Rico EQB during th e term of the previous permit that whole effluent toxicity testing would be performed on a f low weighted composite sample of the three effluents. The testing included acute lethality to xicity tests using Mysidopsis bahia and Cyprinodon variegatus , and chronic toxicity tests of growth, fecundity, fertilization and survival

of Mysidopsis bahia and Cyprinodon variegatus and Arbacia Punctulata. The results of this testing in 2006 identified Arbacia Punctulata as experiencing significant impacts with respect t o chronic toxicity measured by fertilization of this species. Results of testing the combined effluent

for the effects on fertilization of Arbacia Puncula ta are summarized below in Table 1.

The previous permit also included the following req uirement in Special Condition No. 16, which authorizes the interim mixing zone:

A Based on the review of the test results, the EQB ca n require additional toxicity tests, including toxicity/treatability studies and can rev oke the interim or final mixing zone authorization according with Section 5.14 of the PR WQSR. @

The PRWQSR defines the water quality criterion for toxicity as A The waters of Puerto Rico shall not contain any substance at such concentration whi ch, either alone or as result of synergistic effects with other substances is toxic or produces undesirable physiological responses in human,

fish or other fauna or flora. @ (Section 3.1.9). Section 5.4 of the PRWSR further require that where there is a mixing zone,

A At the boundaries of the proposed mixing zone, afte r critical initial dilution for open

coastal waters and after dilution for closed bodies of waters each one of the following requirements are met:

a. The concentration of pollutants or physical par ameters, as defined in Section 5.5, do not exceed the applicable water qua lity standards. b. The acute toxicity units measure in a acute bio ssay do not exceed the criteria maximum concentration (CMC). c. The chronic toxicity units measure in a chronic biossay do not exceed criteria continuous concentration units (CCC). @

Finally, Article 1 of the PRWSR defines the criteri a maximum concentration (CMC) for acute toxicity as 0.3 acute toxic units (TUa =1/LC50) and the criteria continuous concentration (CCC) as 1.0 chronic toxic unit (TUc = 1/NOEC).Attachment IV Page 2 of 4 Pages

Permit No. PR0000591

The mixing zone application for the current permit submitted in March 2006 defines the Critical Initial Dilution of the mixing zone being approved by the current water quality certificate as a factor of one hundred and four (104).

EPA examined the results for Arbacia Punctulata for their potential to cause or contribute to an excursion of the Puerto Rico water quality criterio n for chronic toxicity. The results of the recent testing for this species are summarized below in Ta ble 1.

Table 1: Results of Chronic Toxicity Testing of Arb acia Punctulata for the composite effluent of the Bacardi, PRASA Bayamón, and PRASA P uerto Nuevo facilities

Test Date NOEC

(% effluent) Chronic Toxic

Units IC25

(% effluent) Inverse of IC25

2/16/2006 0.78 % 128 7.25 % 13.79

3/16/2006 6.00 % 17 7.31 % 13.68

8/29/2006 <0.78 % >128 1.68 % 59.52

11/4/2006 <0.78 % >128 1.67 % 59.88

11/7/2006 1.56 % 64 3.97 % 25.19

4/17/2007 0.29 % 345 3.09 % 32.36

4/19/2007 <0.09 % >1111 2.12 % 47.17

4/21/2007 <0.09 % >1111 4.47 % 22.37

5/1/2007 0.09 % 1111 4.92 % 20.33

5/3/2007 0.96 % 104 14.80 % 6.76

5/5/2007 3.20 % 31 14.40 % 6.94

5/15/2007 0.09 % 1111 4.88 % 20.49

5/17/2007 0.96 % 104 3.01 % 33.22

5/19/2007 0.29 % 345 5.23 % 19.12

EPA used the approach for determining Reasonable Po tential to cause or contribute to an excursion of water quality standards from the Technical Support Document for Water QualityBased Toxics Control (March 1991) (TSD). EPA first examined the NOEC results, where the
inverse is used to calculate toxic units, which are also shown in Table 1. Examining the toxic units based on the laboratory report NOEC values, a nd applying the dilution factor of 104 would indicate a potential excursion of the criterion at the edge of the mixing zone on several of the analysis dates. The results that are greater than 1 04 would potentially cause an excursion of the criterion of 1.0 TUc, and are shaded in grey in Tab le 1.Attachment IV Page 3 of 4 Pages

Permit No. PR0000591

EPA also examined the IC25 results of this testing, and tabulated the inverse values. The TSD approach to determining Reasonable Potential calcul ates a projection based on previous testing results, and although there may not have been any r esult that indicated an excursion of criterion, it predicts whether past results indicate the poten tial to exceed a criterion. The number of samples used in the analysis indicate a coefficient of variation (Cv), which is used in the

statistical tables 3-1 and 3-1 which tabulate Reaso nable Potential Multiplying Factors at both the 95% and 99% Confidence Levels and respective Probab ility Bases. EPA examined the fourteen

inverse IC25 results in Table 1. The TSD recommend s calculating a Cv based on the standard

deviation and mean of the data. For these fourteen test results, EPA calculated the Cv to be 0.6.

Table 2: Reasonable Potential Multiplier Results f or Cv = 0.6 and Number of Samples = 14

Test Date IC25 (%

effluent) Inverse of IC25 95%

RPMF = 1.5 99%

RPMF = 2.6

2/16/2006 7.25 % 13.79 21 36

3/16/2006 7.31 % 13.68 21 36

8/29/2006 1.68 % 59.52 89 155

11/4/2006 1.67 % 59.88 90 156

11/7/2006 3.97 % 25.19 38 65

4/17/2007 3.09 % 32.36 49 84

4/19/2007 2.12 % 47.17 71 123

4/21/2007 4.47 % 22.37 34 58

5/1/2007 4.92 % 20.33 30 53

5/3/2007 14.80 % 6.76 10 18

5/5/2007 14.40 % 6.94 10 18

5/15/2007 4.88 % 20.49 31 53

5/17/2007 3.01 % 33.22 50 86

5/19/2007 5.23 % 19.12 29 50

At the 99 th

Percentile Confidence Level, on three separate occ asions the projection after multiplying the RPMF would be higher than 104. The se results are shaded in grey in Table 2. In the TSD approach, just one result that is projected to be higher than the water quality standard

would result in a determination of Reasonable Poten tial.Attachment V Page 1 of 2 Pages

Permit No. PR0000591

Where Reasonable Potential exists for a parameter t o exceed a water quality criterion, EPA must include a limitation in the NPDES permit for that d ischarge. It is clear to EPA from the above analysis that both the NOEC values and IC25 values for fertilization indicate reasonable potential to exceed the water quality criterion of 1.0 TUc at the edge of the mixing zone. Additionally, this facility has been granted a mixi ng zone conditioned upon the absence of a toxic condition at the edge of the mixing zone, and EPA = s Clean Water Act ' 301(h)

Determination is also conditioned on the absence of a toxic condition after mixing.

Therefore, EPA has included an explicit numeric lim itation for chronic toxicity in the combined discharge from the Bacardi, PRASA Puerto Nuevo, and PRASA Bayamón facilities. EPA has

chosen to use the IC25 value as the indicator for c hronic toxicity. The IC25 value is an indicator

of the concentration of effluent which causes a 25% reduction in the effects being observed (e.g. fertilization, growth, fecundity in the test popula tion when compared to the controlled sample response). The IC25 value is calculated through in terpolation from the hypothesis tested effects observed at the concentrations used in the analysis . Toxic units and water quality criterion are defined by both EPA and EQB as based on the NOEC, o r concentration at which no effects are observed. EPA Region 2 does not consider 25% reduct ion to be A no effect @ , and therefore has adjusted the IC25 number to be slightly more conser vative than the NOEC value that would be calculated using the dilution factor of 104. The l imit has been calculated below:

Criterion at edge of mixing zone: 1.0 TUc Dilution Factor: 104 times 104 x 1.0 = effluent concentration of no greater th an 104 TUc Toxicity test results would have to be no less than 1/104 = 0.96% using the NOEC endpoint.

EPA has chosen to use the IC25 value to determine c ompliance with this limitation, and therefore has adjusted the limitation to an IC25 va lue of no less than 1.00% effluent.

In addition to the limitation, EPA has included oth er toxicity testing requirements on the
individual effluents from these three facilities, a s these effluents combine prior to discharge. The toxicity observed in the effluent may be the result of toxicity in one or more of the discharges, or it may be the result of synergistic effects that oc cur when the effluents combine prior to discharge. The contemporaneous testing on each of the effluents from these facilities will provide an indication as to the source of any toxic ity observed in the combined discharge.

EPA is also requiring that all three dischargers de velop plans for a toxicity reduction evaluation (TRE) within the first six months of the permit ter m. The three dischargers may coordinate and develop one plan to meet the permit requirement in each NPDES permit. Violation of the limitation for chronic toxicity using the combined discharge would trigger accelerated monitoring of both the combined discharge and solel y the Bacardi effluent (PRASA would be required to test their individual effluents for the Bayamon and Puerto Nuevo facilities in addition to the combined discharge as well) for twelve weeks . During the accelerated testing period an

additional violation of the limitation on the combi ned discharge would require these three permittees to activate their TRE workplans, and imp lement their strategy to identify and abate the source of toxicity.Attachment V Page 1 of 2 Pages

Permit No. PR0000591

ATTACHMENT V

Requirements for Biochemical Oxygen Demand at Outf all 002

The permittee has requested that EPA reevaluate the requirements for five-day Biochemical Oxygen Demand (BOD 5 ) at Outfall 002, located just after the anaerobic digesters. This request is due to the changes in the production processes t hat have resulted in lower loading amounts flowing into the anaerobic digester treatment syste m. The permittee presented information about the loading rates, production rates, and retention time in the treatment system. EPA also evaluated the maximum and average BOD loading in th e effluent as reported in the Discharge Monitoring Reports (DMRs) for this facility.

As a result of these changes to the production proc esses, EPA believes it is appropriate to

recalculate the limitations at Outfall 002 based on the current operating conditions and source reduction that has taken place at the facility. How ever, EPA also intends to ensure that the permittee operates the anaerobic digesters at optim um treatment efficiency. Revised limitations were calculated based on the existing effluent qual ity (EEQ), which is a statistical projection based on past discharge results.

EPA Region 2 utilizes the 95 th percentile of the lognormal distribution of the mo nitoring data to determine EEQ. Monitoring results for maximum and average BOD, Total Suspended Solids (TSS), and the inverse of percent removal (percent remaining) from discharge monitoring reports from June 2004 through May 2007 were used in this a nalysis. The results of the EEQ analysis

are tabulated below in Table 3.

The permittee has explained to EPA that the mosto w aste is retained in an equalization tank prior to treatment for 1-2 days, and the retention time i n the anaerobic digester is approximately 10-12 days. Therefore, the loading observed at Outfall 0 02 is likely the result of waste that was produced as much as two weeks prior to being discha rged through Outfall 002. EPA observed through our examination of the data that there did not appear to be a direct correlation between higher production rates and higher effluent loading at Outfall 002, even taking into account the time lag. Additionally, there are fluctuations in day to day proof gallons produced, and often a wide range of production values in a given month. For the reasons stated above, EPA has chosen to eliminate the tiered system of production based limits, and instead to have one set of limits for Outfall 002. For BOD and TSS loading at Outfall 002, EPA applied a factor or 2.0/1.3 to

account for the increase in flow allowed under the new water quality certificate, as well as plans to increase production at the facility. The revise d limitations are shown in Table 3.

For BOD Percent Removal, EPA calculated the percent age remaining from the percentage removed (100 - %removal), and performed an EEQ anal ysis on those results. This resulted in a

95 th Percentile EEQ value for Monthly Average Percent R emoval BOD of 71.7%

.

EPA has included a Quarterly Average Percent Remova l requirement, based on weekly sampling results. The averaging over a quarter of weekly re sults will reduce the impact of the retention time lag in comparing influent to effluent results. EPA has also revised the limit to be a minimum quarterly average of 70% . Falling below this minimum value will trigger aAttachment V Page 2 of 4 Pages

Permit No. PR0000591

requirement to demonstrate to EPA that the lower pe rcentage removal observed was due solely to lower loading amounts flowing into the anaerobic treatment system (source reduction).

Table 3: EEQ Analysis Results and Revised Limitatio ns for Mass Loading at Outfall 002

95 th % (kg/day) 99 th %

(kg/day) 95 th % X

2.0/1.3 (kg/day) New

Limitation in kg/day New

Limitation in lb/day

BOD Daily

Maximum 27,533 41,127 42,359 42,400 93,280

BOD Monthly Average 19,512 29,321 30,019 30,000 66,200

TSS Daily

Maximum 46,651 74,353 71,771 71,200 156,640

TSS Monthly Average 29,378 43,701 45,196 45,200 99,440Part IModified Page 6 of 41Permit No. PR0000591‡ The geometric mean of a series of representative samples (at least five samples) of the water taken sequentially in a given instance.The permittee shall notify EPA fourteen (14) days in advance of resuming operations following shutdown. During the shutdown ofdistillery operations, and for the period twenty-one (21) days following start-up, bacteria limitations shall be as follows:Daily Max.MeasurementFrequencySample TypeEnterococci (colonies/100 ml)1,2,4,7382, 602‡Weekly GrabFecal Coliforms (colonies/100 ml)1,2,4,7803,378 ‡Weekly GrabδSee Special Condition 5.# The permittee shall perform the tests for Settleable Solids.1, 2, 3, 4, 5, 6, and 7 See the endnotes to the Special ConditionsPART I Modified Page 15 of 41 Pages

Permit No. PR0000591

EPA Addendum:

EPA had revised the limitations for fecal coliform and bacteria for Outfall 001 to be consistent with current existing effluent quality during norma l operations. During the shutdown of distillery operations, and for the period twenty-on e (21) days following start-up, bacteria

limitations shall be as follows::

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at

the Borders

of the MZ Enterococci (col/100 ml) 382,602 ‡ * Fecal Coliforms (col/100 ml) 803,378 ‡ **

* The enterococci density in terms of geometric me an of at least 5 representative samples taken sequentially shall not exceed 35/100 ml. No single sample should exceed the upper confidence li mit of 75% using 0.7 as the log standard deviation until sufficient site data exist to establish a site-specific log standard deviation.

** The Fecal Coliforms geometric mean of a series o f representative samples (at least five samples) of the water taken sequenti ally in a given instance

shall not exceed 200 colonies/100 ml. Not more tha n 20 percent of the samples shall exceed 400 colonies/100 ml.

c. The permittee shall conduct annually definitive acu te and chronic toxicity tests using the organisms Mysidopsis bahia

, Cyprinodon variegatus and Arbacia punctulata for the wastewater discharge identified as 001.

d. The toxicity test shall be conducted according to t he most recent editions of the following publications of EPA:

1) Methods for Measuring the Acute Toxicity of Effluen ts and Receiving Waters to Freshwater and Marine Organisms , (EPA-821-R-02-012) Fifth Edition, October 2002.

2) Short Term Methods for Estimating the Chronic Toxic ity of Effluents and Receiving Waters to Marine and Estuarine Organisms , (EPA-821-R-02-014) Third Edition, October 2002.Part II Modified Page 17 of 41

Permit No. PR0000591

e. The EQB, can require that the permittee conduct bio accumulation studies, dye studies, water quality studies or any other pertine nt studies. If the EQB require one or more of the aforementioned studies, the permitte e will be notified to conduct such study(ies). One hundred and twenty (120) days afte r the notification of the EQB, the permittee shall submit, for evaluation and approval of the EQB, a protocol to conduct such study(ies). Sixty (60) days after the EQB approval, the permittee shall initiate such study(ies). Ninety (90) days after c onducting such study(ies), the permittee shall submit a report that includes the r esults of such study(ies).

f. The permittee shall conduct a dye study to verify t he Critical Initial Dilution and the plume behavior within the mixing zone. The dye stu dy shall be conducted ninety (90) days after the written approval of the corresp onding Protocol and Quality Assurance Project Plan (QAPP). Such Protocol and Q APP shall be submitted to EQB ninety (90) days after the EDP. This study sha ll consist of at least one set of the required samples, as established in the QAPP fo r a complete sampling event.

g. The authorization for the mixing zone will not be t ransferable and does not convey any property rights of any sort or any exclusive pr ivileges, nor it authorizes any injury to persons or property or invasion of other private rights, of any infringement of Federal or State Law or Regulations.

18. Whole Effluent Toxicity Requirements

a. The permittee shall conduct quarterly chronic toxic ity tests on flow-weighted 24-hour composite effluent samples of the combined Bacardi, PRASA Puerto Nuevo, and PRASA Bayamón discharges (referred herein as “combi ned discharge”) for

fertilization of Arbacia punctulata . Once each calendar year, the permittee shall spl it a 24-hour composite effluent sample and concurrentl y conduct acute and chronic toxicity tests using Mysidopsis bahia and Cyprinodon variegatus in addition to Arbacia punctulata fertilization test. The testing on this split samp le, in addition to

the Arbacia punctulata test for that quarter, would satisfy the annual tox icity monitoring requirement of Special Condition 17.

The permittee shall also conduct quarterly chronic toxicity tests on 24-hour composite effluent samples of solely the Bacardi effluent, ta ken at Bacardi Discharge Point 001,

for fertilization of Arbacia punctulata

.Part II Modified Page 18 of 41

Permit No. PR0000591

b. Effluent Limitation:

Interim Effluent Limitation : The following effluent limit shall be effective fro m July 1, 2012 through June 30,

2015:

No single IC25 test result for any species or effec t in the combined discharge

shall be less than 1.29%.

Final Effluent Limitation : The following final effluent limitation shall be ef fective July 1, 2015 through November 30, 2016:

No test result for any species or effect in the com bined discharge shall be greater than 83.32 TUc.

c. TRE Workplan

No later than October 1, 2012, the permittee shall prepare and submit a Toxicity Reduction Evaluation (TRE) Workplan to EPA Region 2 for approval. The TRE Workplan must include, at a minimum:

1) A description of the investigation and evaluatio n techniques that would be used to identify potential causes and sources of to xicity, effluent variability, and treatment system efficiency.

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

3) Potential actions to be undertaken by the permit tee to investigate, identify, and correct the causes, and prevent the recurrence of t oxicity.

4) Identification of responsible persons/parties fo r conducting the TRE.

5) Potential source reduction measures and pollution p revention opportunities to reduce toxicity.

EPA shall provide comments on such TRE Workplan no later than 30 days after the permittee’s submission of the Workplan. If EPA pro vides such comments within that timeframe, the permittee shall respond to such comm ents not later than 30 days after permittee’s receipt. If EPA does not provide comme nts within 30 days, the Workplan will be deemed approved as proposed.Part II Modified Page 19 of 41

Permit No. PR0000591

d. Implementation of Toxicity Reduction Evaluation

Once the TRE Workplan is approved, if a test result for any species or effect in the combined discharge exceeds 83.32 TUc on or after Ju ly 1, 2012, the permittee shall initiate, within 30 days of receipt of this test re sult, the TRE Workplan approved pursuant to paragraph c of this special condition. The TRE shall use the same species

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

1) Toxicity Reduction Evaluation Guidance for Municipa l Wastewater Treatment

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

2) Generalized Methodology for Conducting Industrial T oxicity Reduction

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

The permittee may also use the following manuals fo r Toxicity Identification Evaluation to identify the causes of toxicity:

3) Toxicity Identification Evaluation: Characterizatio n of Chronically Toxic Effluents, Phase I (EPA/600/6-91/005F, 1992);

4) Methods for Aquatic Toxicity Identification Evaluat ions, Phase II Toxicity Identification Procedures for Samples Exhibiting Ac ute and Chronic Toxicity (EPA/600/R-92/080, 1993);

5) Methods for Aquatic Toxicity Identification Evaluat ions, Phase III Toxicity Confirmation Procedures for Samples Exhibiting Acut e and Chronic Toxicity (EPA/600/R-92/081, 1993); and

6) Marine Toxicity Identification Evaluation (TIE): Ph ase I Guidance Document (EPA/600/R-96-054, 1996).

e. Progress Reports

The permittee shall submit three annual progress re ports on the TRE process. These reports shall include an inventory of actions taken , testing procedures, and results. Potential causes of synergistic toxicity shall be i dentified, as well as source reduction activities to address such causes. The first progr ess report shall be due July 1, 2013.

f. Test Methods

1) Acute Toxicity Testing

A) The acute toxicity tests shall be conducted in accordance with the EPA publication, EPA-821-R-02-012 Methods for Measuring the AcutePart II Modified Page 20 of 41

Permit No. PR0000591

Toxicity of Effluents and Receiving Waters to Fresh water and Marine Organisms (Fifth Edition), October 2002, or the mos t recent edition of this publication, if such edition is available.

B) The tests shall provide a measure of the acute toxicity as determined by the wastewater concentration, which cause 50 percen t mortality of the organisms over a 48 hour period. Test results shal l be expressed in terms of Lethal Concentration (LC) and reported as 48 hou r LC50.

C) The test species shall be the Mysidopsis bahia (mysid shrimp) and Cyprinodon variegatus (sheepshead minnow). The tests shall be static renewal type.

2) Chronic Toxicity Testing

A) The chronic toxicity tests shall be conducted i n accordance with EPA publication, EPA-821-R-02-013 Short Term Methods fo r Estimating the Chronic Toxicity of Effluents and Receiving Waters to Marine and Estuarine Organisms, Fourth Edition, October 2002.

B) The tests shall report the No Observable Effect s Concentration (NOEC), the Low Observable Effects Concentration (LOEC), th e calculated inhibition concentration of 25% (IC25), and the eff ects reported at each

concentration tested in the dilution series. The d ilution series concentrations shall be chosen to bracket the appro ximate expected IC25 results, in order to accurately depict the toxic ef fects of the sample.

C) The chronic toxicity tests shall be fertilizati on of Arbacia punctulata (sea urchin). The tests shall be static renewal type.

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

g. Reporting of Chronic Toxicity Monitoring Results

1) A procedure report shall be submitted to EPA and EQB by October 1, 2012. The following information shall be included in the procedure report:

A) An identification of the organizations responsib le for conducting the test and the species to be tested.

B) A detailed description of the methodology to be utilized in the conduct of the tests, including equipment, sample collection, dilution water, and source of test organisms.Part II Modified Page 21 of 41

Permit No. PR0000591

C) A schematic diagram which depicts the effluent sampling location. The diagram shall indicate the location of effluent sam pling in relation to wastewaters treatment facility and discharge monito ring point.

2) For any toxicity testing event, a full laborato ry report shall be submitted and shall include: the toxicity test results in NOEC, L OEC, IC25, and the results reported at each effluent dilution. The results sh all be reported according to the test methods manual chapter on report preparati on and test review; the dates of sample collection and initiation of each t oxicity test; all results for effluent parameters monitored concurrently with the toxicity test(s); and progress reports on TRE/TIE investigations.

3) Full laboratory reports of analytical results s hall be submitted to EPA Region II and EQB within thirty (30) days of completion of each test. Based on a review of the test results, EPA or the EQB may requ ire additional toxicity tests, including chronic toxicity analyses. In add ition to submitting the procedures report and test results to the addresses listed in Part I.B. of this permit, results shall be submitted to:

CHIEF, CLEAN WATER REGULATORY BRANCH U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION II

290 BROADWAY - 24th FLOOR
NEW YORK, NEW YORK 10007-1866

4) The permittee shall notify the permitting autho rity in writing within 14 days of any violation of the chronic toxicity limitation. This notification shall describe actions the permittee has taken or will ta ke to investigate, identify, and correct the causes of toxicity; the status of a ctions required by this permit; and schedule for actions not yet completed; or reas on(s) that no action has

been taken.

h. Reopener Clause for Toxicity Requirements

In accordance with 40 C.F.R. Parts 122 and 124, thi s permit may be reopened by EPA to include toxicity/treatability studies, additiona l effluent limitations, or other special conditions to address toxicity in the effluent or r eceiving water body. EPA may, upon review of technical data that supports an alternate toxicity test data evaluation method for this discharge, reopen the permit.

22. Reopener Clause for Endangered Species Protecti on

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

7 consultation with the U.S. Fish and Wildlife Serv ice and National Marine Fisheries

Service.

__________________________Part II Modified Page 22 of 41

Permit No. PR0000591

1. According to Article 1, Puerto Rico Water Qualit y Standards Regulation as Amended. 2. According to Article 3, Puerto Rico Water Qualit y Standards Regulation as Amended. 3. According to Article 5, Puerto Rico Water Qualit y Standards Regulation as Amended. 4. According to Article 6, Puerto RicoWater Quality Standards Regulation as Amended. 5. According to the Environmental Public Policy Act of September 22, 2004, Act No. 416, effective sinc e March 22, 2005. 6. According to the Section 405(d)(4) of Federal Cl ean Water Act, as amended (33 U.S.C. 466 et. seq.). 7. According to the Code of Federal Regulation Numb er 40 (40 CFR), Part 131.40, as amended (Federal Register/Volume 69, No. 16/Monday, January 26, 200 4).Part I Page 1 of 41

Permit No. PR0000591

NPDES PERMIT NO. PR0000591

AUTHORIZATION TO DISCHARGE UNDER THE

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

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

et. seq. (the

Bacardi Corporation

PO Box 363549

San Juan, Puerto Rico 00936

- 3549

hereinafter referred to as "the permittee" is authorized to discharge from the following facility:

Bacardi Corporation

State Road No. 165, 

### KID 2.6

Industrial Area
Catano, Puerto Rico 00632

to receiving water

Atlantic Ocean

in accordance with effluent limitations, monitoring requirements and other conditions set

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

Title 40 of the Code of Federal Regulations.

permit shall become effective on December 1, 2011.

This permit and the authorization to discharge shall expire at midnight, November 30,

2016.

Signed this 

# 11 

# fiy

of 

# SRI' fL,.. /,..vI 2tJ II

# L~-~ Kevin Bricke / Acting Directot

Division of Environmental Planning

and Protection

U.S. Environmental Protection Agency Region 2Part I Page 2 of 41

Permit No. PR0000591

A. EFFLUENT LIMITATIONS AND REQUIREMENTS

TABLE A

- 1 EFFLUENT LIMITATIONS AND REQUIREMENTS

During the period beginning on December 1, 2011 and lasting through November 30, 2016 , t he permittee is authorized to discharge from outfall serial number 001 (treated process, sanitary, utility, and miscellaneous wastewater). Such discharge shall be limited and mo nitored by the permittee as specified below:

Effluent Characteristics Gross D ischarge Limitations Monitoring Requirements

kg/day (lbs/day) Other Units (specified) Measurement Frequency Sample Type

Monthly Avg. Daily Max. Monthly Avg. Daily Max.

Flow m 3 /day (MGD) 4,5 7,570.80 (2.0) Continuous Recording

BOD 5 (mg/l) 1,2,3,4 α 17,700 Monthly Composite

Cadmium (Cd) (μg/l) 2,3,4 30.9 Monthly Grab

Color (Pt

- Co units) 2,3,4 84,000 Monthly Grab

Copper (Cu) (μg/l) 2,3,4 3,293 Monthly Grab

Cyanide, Free (μg/l) 2,3,4 β γ 47 Monthly Grab

Dissolv ed Oxygen (mg/l) 1,2,3,4

----- Daily Grab

Enterococci (colonies/100 ml) 1,2,4,7 30,667‡ Weekly Grab

Fecal Coliforms (colonies/100 ml) 1,2,4,7 244,420‡ Weekly Grab

Lead (Pb) (μg/l) 2,3,4 60.8 Monthly Grab

Mercury (Hg) (μg/l) 2,3,4 γ 0.68 Monthly GrabPart I Page 3 of 41

Permit No. PR0000591

TABLE A

- 1 EFFLUENT LIMITATIONS AND REQUIREMENTS

During the period beginning on December 1, 2011 and lasting through November 30, 2016 , t he permittee is authorized to discharge from outfall serial number 001 (treated process, sanitary, utility, and miscellaneous wastewater). Such discharge shall be limited and mo nitored by the permittee as specified below:

Effluent Characteristics Gross D ischarge Limitations Monitoring Requirements

kg/day (lbs/day) Other Units (specified) Measurement Frequency Sample Type

Monthly Avg. Daily Max. Monthly Avg. Daily Max.

Nickel (Ni) (μg/l) 2,3,4 412 Monthly Grab

Nitrogen (NO 3 , NO 2 , NH 3 ) (mg/l) 2,3,4 874.700 Monthly Grab

Oil and Grease (mg/l) 2,3,4 The waters of Puerto Rico shall be substantially free from floating

non

- petroleum oils an d greases as well as petroleum derived oils and

greases. Twice per

Month Grab

pH (SU) 2,3,4 Shall always lie between 6.0 and 9.0. Daily Grab

Radioactive Materials (picocuries/l) 2,4 Grab

Silver (Ag) (μg/l) 2,3,4 30.4 Monthly Grab

Solids a nd Other Matter 2,4 The waters of Puerto Rico shall not contain floating debris, scum and other floating material attributable to discharges in amounts sufficient to be unsightly or deleterious to the existing or designated uses of the waterbody.

Sulfi de (S) (μg/l) 2,3 ,4 δ (undissociated H 2 S) 89,007 Monthly Grab

Surfactants as MBAS 1,2,3,4 (μg/l) 1,494 Monthly GrabPart I Page 4 of 41

Permit No. PR0000591

TABLE A

- 1 EFFLUENT LIMITATIONS AND REQUIREMENTS

During the period beginning on December 1, 2011 and lasting through November 30, 2016 , t he permittee is authorized to discharge from outfall serial number 001 (treated process, sanitary, utility, and miscellaneous wastewater). Such discharge shall be limited and mo nitored by the permittee as specified below:

Effluent Characteristics Gross D ischarge Limitations Monitoring Requirements

kg/day (lbs/day) Other Units (specified) Measurement Frequency Sample Type

Monthly Avg. Daily Max. Monthly Avg. Daily Max.

Suspended, Colloidal or Settleable Solids (ml/l) 1,2,3 # Solids from wastewater sources shall not cause deposition in or be deleterious to the existing or designated uses of the waters. Daily Grab

Taste and Odor Producing Substances 2 Shall contain none in amounts that will render any undesirable taste or odor to edible aquatic life.

Temperature  F (  C) 2, 4 107.6 (42 ) Daily Grab

Thallium (TI) (μg/l) 2,3,4 45.8 Monthly Grab

Turbidity (NTU) 2,3,4 9,244 Monthly Grab

Zinc (Zn) (μg/l) 2,3,4 3213 .00 Monthly GrabPart I Page 5 of 41

Permit No. PR0000591

TABLE A

- 1 Notes:

_____________________________

To comply with the monitoring requirements specified above , samples shall be taken at the outfall of discharge serial number 001.

All flow measurements shall achieve accuracy within the range of plus or minus 10%.

The wastewaters to be discharged from Bacardi Corporation, through the discharge point 001 are the following:

a. boiler blowdown, wash and

extraction

b. mosto (distillation and fermentation)

c. clarification plant wash

d. cooling towers blowdowns and other

e. flavor steam traps

f. sulfur plant rinses and condensate g. bottling plant wash

h. process w ashes

i. molasses unloading and seal flush j. fermentation floor drains

k. distillery floor drains

l. barrel wash m. cooling tower # 3 blowdown and

washes

n. pump seals (anaerobic filters)

o. CO 2 plant condensate and washes

p. sanitary plant (discharge 003 )

q. process water treatment steam traps

The permittee shall implement a monthly monitoring program using the analytical method approved by EPA with the lowest possib le detection level, in accordance with Section 6.2.3 of the PRWQSR as amended, for a one (1) year period, after which such monitoring sha ll be conducted annually. The monitoring program shall commence no later than thirty (30) days after the EQB’s written approval of the Quality Assurance Project Plan (QAPP). The QAPP must be submitted f or evaluation and approval of EQB no later than thirty (30) days after the EDP. The results of the monitoring program shall be submitted to EQB and EPA

- Region II no later than sixty (60) days of completion of the one year monitoring program. Based on the evaluation of the results obtained, EQB will determine if an effluent limitation is necessary for these parameters. In such case the WQC will be reopened to include the applicable effluent limitation if considered necessar y.

EPA Addendum: the one year m onitoring program must be completed and submitted by May 31, 2016

.

α The effluent limitation for BOD 5 is based on the Mixing Zone Application for the Puerto Rico Aqueduct and Sewer Authority (PRASA) Puerto Nuevo and Bayamón facilities, and the Bacardi Corporation , after determining that there is a reasonable assurance th at this limit will not cause violations to the water quality standard for Dissolved Oxygen for Class SC.

γ See Special Condition 3.

β The samples shall be analyzed using the method approved by EPA in letter of February 20, 2007.Part I Page 6 of 41

Permit No. PR0000591 ‡ The geometric mean o f a series of representative samples (at least five samples) of the water taken sequentially in a given instance. The permittee shall notify EPA fourteen (14) days in advance of resuming operations following shutdown. During the commencement of operation s and for the period twenty

- one (21) days following start

- up, bacteria limitations shall be as follows:

Daily Max. Measurement

Frequency Sample Type

Enterococci (colonies/100 ml) 1,2,4,7 382, 602 ‡ Weekly Grab

Fecal Coliforms (colonies/100 ml) 1,2,4 ,7 803,378 ‡ Weekly Grab

δ See Special Condition 5.

# The permittee shall perform the tests for Settleable Solids.

1, 2, 3, 4, 5, 6, and 7 See the endnotes to the Special ConditionsPart I Page 7 of 41

Permit No. PR0000591

TABLE A

- 2 EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS

During the period beginning on December 1, 2011 and lasting through November 30, 2016 the permittee is authorized to discharge from internal monitoring point 002. Such discharge shall be limited and monitored by the permittee as specified below:

Effluen t Characteristics Monitoring Requirements

Quarterly Rolling Average (QRA)* Monthly Avg.

kg/day (lb/day) Daily Maximum

kg/day (lb/day) Measurement

Frequency Sample

Type

Flow m 3 /day (MGD)

---- Continuous Recording

BOD 5 30,000 (66,200 ) 42,400 (93,280) Weekly Composite

Total Suspended Solids (mg/l) 45,200 (99,440) 71,200 (156,640) Weekly Composite

Influent BOD 5 Concentration (mg/l) Monitor influent BOD5 concentration on a weekly basis Weekly Composite

Effluent BOD 5 Co ncentration (mg/l) Monitor influent BOD5 concentration on a weekly basis Weekly Composite

(A) Influent QRA BOD 5 Concentration (mg/l) 1 Calculate and report QRA Influent BOD 5 concentration on a monthly basis.*

(B) QRA Influent BOD 5 Loading (lb/day) 2 Calculate and report QRA Influent BOD 5 loading on a monthly basis.*

(C) QRA Effluent BOD 5 Loading (lb/day) 3 Calculate and report QRA Effluent BOD 5 loading on a monthly basis.*

Tiered QRA Percentage Removal Requirement

When QRA Influent BOD 5 Concen tration (Row (A)) is  23,600 mg/l 4 Calculate and report QRA Percentage Removal monthly. QRA Percentage Removal shall be no less than 70%

When QRA Influent BOD 5 Concentration (Row (A)) is < 23,600 mg/l 4 Calculate and report QRA Percentage Removal mo nthly.Part I Page 8 of 41

Permit No. PR0000591

Table A

- 2 Notes:

* All Quarterly Rolling Averages (QRA) shall be calculated on a monthly basis, using the previous thirteen weekly results. Cal culations shall be reported on a spreadsheet as a supplement to the DMR. This spreadsheet shall in clude all flow rates, concentrations, calculated loadings, and thirteen weeks of results used to calculated any QRA numbers.

1 The QRA Influent BOD 5 Concentration to the anaerobic digesters shall be calculated over the previous thirteen weeks and reported . The calculated result will determine whether the limitation of a minimum of 70% removal rate applies. This value must be reported in the DMR.

2 The QRA Influent BOD 5 Loading shall be calculated based on the influent concentration and the flow. This ca lculation must be included in the supplement to the DMR.

3 The QRA Effluent BOD 5 Loading shall be calculated based on the effluent concentration and flow. This calculation must be included in the supplement to the DMR.

4 The QRA Percentage Removal for B OD 5 shall be the calculated as the percentage difference between the QRA Influent BOD 5 Loading (Row (B)) results, and the QRA Effluent BOD 5 Loading results (Row (C)). This calculation shall be included in the supplement to the DMR. The

calculated value s hall be reported in the DMR.

Internal monitoring point 002 is in the vicinity of a flow measuring device after anaerobic treatment, and is designed to mon itor only all effluent flows from the anaerobic digesters prior to mixing with any other waste stream s.

Production data for the days of sampling for each month, in proof gallons per day, is required to be submitted with the DMR.Part I Page 9 of 41

Permit No. PR0000591

TABLE A

- 3 EFFLUENT LIMITATIONS AND REQUIREMENTS

During the period beginning on December 1, 2011 and lasting through November 30, 2016 , the permittee is authorized to discharge fro m outfall

serial number 003 (treated sanitary wastewater). Such discharge shall be limited and monitored by the permittee as specified below:

Effluent Characteristics Gross Discharge Limit ations Monitoring Requirements

Other Units (specified) Measurement Frequency Sample

Type

Monthly Avg. 7

- day Average

Flow m 3 /day (MGD)

---- Continuous Recording

BOD 5 (mg/l) * 30 45 Mon thly Composite

Total Suspended Solids (mg/l) * 30 45 Monthly Composite

* The arithmetic mean of the values for effluent samples collected in a period of 30 consecutive days shall not exceed 15 perce nt of the arithmetic

means of the valu es of influent samples collected at approximately the same time during the same period (85 percent removal).

To comply with the monitoring requirements specified above, samples shall be taken at sampling location 003 in the vicinity of the sanitary

wast ewater treatment plant (after disinfection and filtration) . All flow measurements shall achieve accuracy within the range 10%.PART I Page 10 of 4 1 Pages

Permit No. PR0000591

B. SPECIAL CONDITIONS

The permittee shall comply with all Special Conditions specified below in accordance Section 301(b )(1)(C) of the Act, as amended (33 U.S.C. 466 et seq .). Pursuant to Section 401 of the Act, EPA has established limitations, standards, and other permit conditions based on EQB’s Water Quality Certificate (WQC) as part of the Special Conditions.



### 1. The flow of discharge 001 shall not exceed the limitation of 7,570.80 m 3 /day (2.0 MGD) as daily

maximum. No increase in flow shall be authorized without a recertification from the Puerto Rico Environmental Quality Board (EQB). 1,4,5



### 2. No toxic substances shal l be discharged, in toxic concentrations, other than those allowed as specified in the NPDES permit. Those toxic substances included in the Permit Renewal Application, but not regulated by the permit, shall not exceed those concentrations as specified in the applicable regulatory limitations. 1,2



### 3. The samples taken for the analysis of cyanide and mercury shall be analyzed using the analytic method approved by the Environmental Protection Agency (EPA) with the lowest possible detection level, in accordance with Section 6.2.3 of the Puerto Rico Water Quality Standards Regulation (PRWQSR), as amended. 4



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



### 5. The permitee shall use the approved EPA analytical method, with the lowest possible detection limit, in accordance with 40 CFR Part 136 for Sulfide (as S). Also, the permitee shall complete the calculations specified in Method 4500

- S - 2 F, Calculation o f Un

- ionized Hydrogen Sulfide, of

Standards Methods 18 th Edition, 1992, to determine the concentration of undissociated H 2 S. If the sample results of Dissolved Sulfide are below the detection limit of the approved EPA

method established in the 40 CFR Part 136, then, the concentration of undissociated H 2 S should be reported as “below detection limit”. 2,3



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

be:

a. Disposed in compliance with the applicable requ irements established in the 40 CFR, Part 257. A semiannual report shall be submitted to EQB and EPA notifying the method or methods used to dispose the solid wastes generated in the facility. Also, copy of the approval or permit applicable to the disposa l method used shall be submitted, if any.

b. Transported adequately in such way that access is not gained to any body of water or soil. In the event of a spill of solid waste on land or into a body of water, the permittee shallPART I Page 11 of 41 Pages

Permit No. PR0000591

notify the Point Sources Perm its Division of EQB’s Water Quality Area in the following

manners:

1) By telephone communication within a term no longer than twenty four (24) hours after the spill (787) 767

- 8073.

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

The se notifications shall include the following information:

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

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



### 7. A log book should be kept for the material removed from the treatment system, such as sludge, screenings and grit, detailing the following it ems:

a. Removed material, date and source of it.

b. Approximate volume and weight.

c. Method by which it is removed and transported.

d. Final disposal and location.

e. Person that offers the service.

A copy of the Non

- Hazardous Solid Waste Collection and Transportati on Service Permit issued by the authorized official from the EQB should be attached to the log book. 3PART I Page 12 of 41 Pages

Permit No. PR0000591



### 8. The sludge produced within the facility due to the operation of the treatment system shall be analyzed and all constituents shall be identified as requ ired by “Standards for the Use or Disposal of Sewage Sludge” (CFR Number 40, Part 503). The sludge shall be disposed properly in such manner that water pollution or other adverse effects to surface waters or to ground water

do not occur. 4,6



### 9. If any stan dard or prohibition to the sanitary sludge disposal is promulgated and said prohibition or standard is more stringent than any condition, restriction, prohibition or standard contained in the NPDES permit, such permit shall be modified accordingly or revok ed and reissued to be adjusted with regard to such prohibition or standard. 6



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



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



### 12. The permittee shall install, maintain and operate all water pollution control equipment in such manner as to be in compliance with the applicable Rules and Regulations. 1,4



### 13. The flow measurement device for the discharge 001 shall be periodically calibrated and properly maintained. Calibration and maintenance records must be kept in complianc e with the applicable Rules and Regulations. 4,5



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



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

"PUNTO DE MUESTREO P ARA LA DESCARGA 001"



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



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

a. The MZ is delineated by the following points (See Diagram

- I):PART I Page 13 of 41 Pages

Permit No. PR0000591

DIAGRAM

– 1: Bacardi Corporation Mixing Zone

Geographic Coordinates *

Point 1 Lat. 18o 29.181' Long. 66o 08.518'

Point 2 Lat. 18o 29.202' Long. 66o 08.503'

Point 3 Lat. 18o 29.100 Long. 66o 08.340'

Point 4 Lat. 18o 29.0 97' Long. 66o 08.150'

Point 5 Lat. 18o 29.072' Long. 66o 08.150'

Point 6 Lat. 18o 29.075' Long. 66o 08.348'

* NAD 83 State Plane Coordinates

The discharge is through a high

- rate, Y

- shaped diffuser consisting of two (2) legs that are each 1,010 f t (308 m) in length and a constant 84

- inch diameter. The west leg of the diffuser has 100 1 2

5 4

3

6 BGPART I Page 14 of 41 Pages

Permit No. PR0000591

bell

- mouthed ports and the east leg of the diffuser has 102 bell

- mouthed ports, each at 15 degrees from the horizontal. There are a total of 202 ports. On the west d iffuser leg, there are 80 inshore ports that have a diameter of 6 in (15.2 cm),19 offshore ports that have a diameter of 7 in (17.8 cm),

and 1 10

- inch (25.4 cm) port. On the east diffuser leg, there are 81 inshore ports that have a diameter of 6 in (15.2 c m), 20 offshore ports that have a diameter of 7 in (17.8 cm), and 1 10

- inch port. The ports discharge on alternating sides of the diffuser and are evenly spaced at 10 ft (3.05 m) intervals. The diffuser is currently operated with all 202 ports open.

b. The M Z is defined for the following parameters:

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at

the Borders

of the MZ

Cadmium (Cd) (μg/l) 30.90 8.85 Color (Pt

- Co) 84,000 1 Copper (Cu) (μg/l) 3,293 3.73 Cyanide, Free (CN) (μg/l) 47 1.0 Dissolved Oxygen (mg/l) Monitoring Only ≥4.0 Enterococci (col/100 ml) 30,667 ‡ * Fecal Coliforms (col/100 ml) 244,420 ‡ ** Lead (Pb) (μg/l) 60.8 8.52 Mercury (Hg) (μg/l) 0.68 0.051 Nickel (Ni) (μg/l) 412 8.28 Nitrogen (NO 2 , NO 3 , NH 3 ) (mg/l) 847.700 5.000 pH (SU) 6.0

- 9.0 7.3

- 8.5 Silver (Ag) ( μg/l) 30.4 2.24
Sulfide (μg/l) (undissociated H 2 S) 89,007 2
Surfactants (MBAS) (μg/l) 1,494 500
Temperature F ( C) 107.6 (42) δ 2 Thallium (TI) (μg/l) 45.8 0.47 Turbidity (NTU) 9,244 10 Zinc (Zn) (μg/l) 3,213.00 85.62

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

The color at the edge of the mixi ng zone shall not exceed the color of the receiving water body.

δ No heat may be added to the waters of Puerto Rico, which would cause the temperature of any site to exceed 90 o F (32.2 o C).PART I Page 15 of 41 Pages

Permit No. PR0000591

EPA Addendum to 17 b :

EPA had revised the limitati ons for fecal coliform and bacteria for Outfall 001 to be consistent with current existing effluent quality during normal operations. During the period for three weeks (21 days) following resuming operations after a shutdown, the limitations for bacteria shall be:

Parameter Daily Maximum Discharge

Limitation at Outfall

Serial Number 001 Daily Maximum

Limitation at

the Borders

of the MZ Enterococci (col/100 ml) 382,602 ‡ * Fecal Coliforms (col/100 ml) 803,378 ‡ **

* The enterococci density in ter ms of geometric mean of at least 5 representative samples taken sequentially shall not exceed 35/100 ml. No single sample should exceed the upper confidence limit of 75% using 0.7 as the log standard deviation

until sufficient site data exist to establish a site

- specific log standard deviation.

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

exceed 400 colonies/100 ml.

c. The permittee shall conduct annually definitive acute and chronic toxicity tests using the organisms Mysidopsis bahia

, and Cyprinodon variegatus and chronic toxicity tests using

Arbacia punctulata for the wastewater discharge identified as 001.

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

1) Methods for Measuring the Acute Toxicity of Effluents and Receiving Waters to

Freshwater and Marine Organisms , (EPA

- 821

- R

- 02

- 012) Fifth Edition, October

2002.

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

- 821

- R

- 02

- 014 ) Third Edition,

October 2002.PART I Page 16 of 41 Pages

Permit No. PR0000591

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

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

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

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

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

collected.

g. A report on the toxicity tests conducted shall be submitted to the EQB, during the sixty (60) days period after the tests were conducted. This report shall be prepared according to the aforementioned publications of EPA.

h. Based on the review of the test results, the EQB can require additional toxicity tests, including toxicity/treatability studies and can revoke the final mixing zone authorization according with Section 5.14 of the P RWQSR.

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

j. The discharge shall not cause the growth or propagation of organisms that negatively disturb the ecological equilibrium in the a reas adjacent to the mixing zone.

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

l. The permittee shall maintain in good operating conditions the discharge system discharge outfall (la nd and submarine), diffuser, ports, etc. ]. At least once a year, the discharge system shall be inspected to determine if some repairs, replacing, etc., on the discharge system is required. A report of such inspections shall be submitted to EPA and EQB n ot later than sixty (60) days after the performance of the inspection.

m. The EQB, can require that the permittee conduct bioaccumulation studies, dye studies, water quality studies or any other pertinent studies. If the EQB require one or more of the

aforem entioned studies, the permittee will be notified to conduct such study(ies). One hundred and twenty (120) days after the notification of the EQB, the permittee shall submit, for evaluation and approval of the EQB, a protocol to conduct such study(ies). S ixty (60) days after the EQB approval, the permittee shall initiate such study(ies). Ninety (90) days after conducting such study(ies), the permittee shall submit a report that includes the results of such study(ies).PART I Page 17 of 41 Pages

Permit No. PR0000591

n. The permittee shall conduct a dye st udy to verify the Critical Initial Dilution and the plume behavior within the mixing zone. The dye study shall be conducted ninety (90) days after the written approval of the corresponding Protocol and Quality Assurance Project Plan (QAPP). Such Protocol and QAPP shall be submitted to EQB ninety (90) days after the EDP. This study shall consist of at least one set of the required samples, as established in the QAPP for a complete sampling event.

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

18. Whole Effluent Toxicity Requirements

a. The permittee shall conduct quarterly chronic toxicity tests on flow

- weighted 24

- hour composite e ffluent samples of the combined Bacardi, PRASA Puerto Nuevo, and PRASA Bayamón discharges (referred herein as “combined discharge”) for fertilization of

Arbacia Punctulata . Once each calendar year, the permittee shall split a 24

- hour composite effluent sample and concurrently conduct acute and chronic toxicity tests using Mysidopsis bahia and Cyprinodon variegatus in addition to Arbacia p unctulata fertilization test. The testing on this split sample, in addition to the Arbacia Punculata test for that quarter would satisfy the annual toxicity monitoring req uirement of Special

Condition 17

.

The permittee shall also conduct quarterly chro nic toxicity tests on 24

- hour composite effluent samples of solely the Bacardi effluent, taken at Bacardi Discharge Point 001, for

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

b. Effluent Limitation:

No test result for any species or effect in the combined discharge shall be greater than 83.32

TUc.

This permit requires ad ditional toxicity testing if a chronic toxicity effluent limit is violated. The permittee shall notify EPA in writing within fourteen days of the permittee’s receipt of results violating this effluent limitation.

c. TRE Workplan

No later than March 1, 2012 , the permittee shall prepare and submit a Toxicity Reduction Evaluation (TRE) Workplan to EPA Region 2. This plan shall include steps the permitteePART I Page 18 of 41 Pages

Permit No. PR0000591

intends to foll ow if toxicity is measured above the chronic toxicity effluent limitation is violated

a nd must include, at a minimum:

1) A description of the investigation and evaluation techniques that would be used to identify potential causes and sources of toxicity, effluent variability, and treatment system efficiency.

2) A description of methods fo r maximizing in

- house treatment system efficiency, good housekeeping practices, and a list of all chemicals used in operations at the facility.

3) Potential actions to be undertaken by the permittee to investigate, identify, and correct the causes, and pr event the recurrence of toxicity.



### 1) Identification of responsible persons/parties for conducting the TRE.



### 2) Potential source reduction measures and pollution prevention opportunities to reduce toxicity.

d. Accelerated Toxicity Testing and Commencement of T RE

1) If the combined discharge displays a chronic toxicity result violating the effluent limitation, then the permittee shall conduct six additional toxicity tests of the combined discharge for all three plants using the same species and test method,

ev ery two weeks, over a 12 week period. The permittee shall also split the sample and perform testing for the species in question on solely the Bacardi effluent taken from Outfall 001, for each of these six test results.

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

3) If one of the additional toxicity tests for the co mbined discharge (in paragraph d.1 of this condition) exceeds a toxicity effluent limit, then, within 14 days of receipt of this test result, the permittee shall initiate the TRE workplan prepared in compliance with paragraph c of this special condition. The TRE shall use the same species and test method as that of the observed exceedance. The TRE may be performed in conjunction with the PRASA Puerto Nuevo and Bayamón facilities. The permittee shall use the following guidance manuals:

A) Toxicity Reduc tion Evaluation Guidance for Municipal Wastewater

Treatment Plants (EPA 833

- B

- 99

- 002, 1999)PART I Page 19 of 41 Pages

Permit No. PR0000591

B) Generalized Methodology for Conducting Industrial Toxicity Reduction

Evaluations (EPA/600/2

- 88/070, 1989).

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

A) Toxicity Identification Evaluation: Characterization of Chronically Toxic Effluents, Phase I (EPA/600/6

- 91/005F, 1992);

B) Methods for Aquatic Toxicity Identification Evaluat ions, Phase II Toxicity Identification Procedures for Samples Exhibiting Acute and Chronic Toxicity (EPA/600/R

- 92/080, 1993);

C) Methods for Aquatic Toxicity Identification Evaluations, Phase III Toxicity Confirmation Procedures for Samples Exhibiting Ac ute and Chronic Toxicity (EPA/600/R

- 92/081, 1993); and

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

Document (EPA/600/R

- 96

- 054, 1996).

5) The trigger or performance of a TRE shall not relieve the permittee of its

respons ibilities to conduct WET monitoring in compliance with Section a. of this Special Condition. The permittee must also continue to comply with the reporting requirements of item f.3 of this Special Condition for all test results in compliance with this perm it and progress reports on the TRE process.

6) The trigger or performance of accelerated monitoring shall not relieve the permittee of its responsibilities to conduct WET monitoring in compliance with Section a. of this Special Condition. The permittee m ust also submit test results within 30 days after the permittee's receipt of the laboratory reports for accelerated monitoring in order to comply with the reporting requirements of item

f .3 of this Special Condition. Test results that were received by the permittee due to accelerated monitoring may be used to satisfy the requirements of Section a. of this Special Condition, provided that all requirements of Section a. (including species, test type, frequency, timing, and sample requirements) are met.

e. Test Methods

1) Acute Toxicity Testing

A) The acute toxicity tests shall be conducted in accordance with the EPA publication, EPA

- 821

- R

- 02

- 012 Methods for Measuring the Acute Toxicity of Effluents and Receiving Waters to Freshwater and MarinePART I Page 20 of 41 Pages

Permit No. PR0000591

Organisms (Fif

th Edition), October 2002, or the most recent edition of this publication, if such edition is available.

B) The tests shall provide a measure of the acute toxicity as determined by the wastewater concentration, which cause 50 percent mortality of the

orga nisms over a 48 hour period. Test results shall be expressed in terms of Lethal Concentration (LC) and reported as 48 hour LC50.

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

2) Chronic Toxicity Testing

A) The chronic toxicity tests shall be conducted in accordance with EPA publication, EPA

- 821

- R

- 02

- 013 Short Term Methods for Estimating the Chronic Toxicity of Effluents and Receiving Waters to Mar ine and Estuarine Organisms, Fourth Edition, October 2002.

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

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

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

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

f. Reporting of Chronic Toxicity Monitoring Results

1) A procedure report shall be submitted to EPA and EQB by March 1, 2012 . The following information shall be included in the procedure report:

A) An identification of the organizations responsible for conducting the test and the species to be tested.PART I Page 21 of 41 Pages

Permit No. PR0000591

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

C) A schematic diagram which depicts the effluent sampling location. The diagram shall indicate the location of effluent sampling in relation to wastewaters treatment facility and discharge monitoring point.

2) For any toxicity testing event, a full laboratory report shall be submitted and shall include: the toxicity test results in NOEC, LOEC, IC 25, and the results reported at each effluent dilution. The results shall be reported according to the test methods manual chapter on report preparation and test review; the dates of sample collection and initiation of each toxicity test; all results for effluent parameters monitored concurrently with the toxicity test(s); and progress reports on TRE/TIE investigations.

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

to:

CHIEF, CLEAN WATER REGULATORY BRANCH U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION II

290 BROADWAY

- 24th FLOOR NEW YORK, NEW YORK 10007

- 1866

4) The permittee shall notify the permitting authority in writing within 14 days of any violation of the chronic toxicity limitation. This notification shall describe actions the permittee has taken or will take to investigate, identify, and correct the causes of toxicity; the status of actions required by this permit; and sc hedule for actions not yet completed; or reason(s) that no action has been taken.

g. Reopener Clause for Toxicity Requirements

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

19. Reopener Clause for Endangered Species Protection

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

consultation with the U.S. Fish and Wildlife Service and National Marine Fisheries Service.PART I Page 22 of 41 Pages

Permit No. PR0000591

__________________________ 1. According to Article 1, Puerto Rico Water Quality Standards Regulation as Amended.

2. According to Arti cle 3, Puerto Rico Water Quality Standards Regulation as Amended.

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

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

5. According to the Environmental Public Policy Act of September 22, 2004, Act No. 416, effective since March 22, 2005.

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

7. According to the Code of Federal Regulation Numbe r 40 (40 CFR), Part 131.40, as amended (Federal Register/Volume 69, No. 16/Monday, January 26, 2004).PART I Page 23 of 41 Pages

Permit No. PR0000591

C

. MONITORING AND REPORTING

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

2. Discharge monitoring reports

.

a. See Part II.C .12.d.

b. Moni toring results obtained during the previous month shall be summarized and reported on a Discharge Monitoring Report Form (EPA No. 3320

- 1), postmarked no later than the 28th day of the month following the completed reporting period. The first report is due on January 28, 2012

. Duplicate signed copies of these, and all other reports required herein, shall be submitted to the Regional Administrator and State Director at the following

addresses:

COMPLIANCE ASSISTANCE

PROGRAM SUPPORT BRANCH

U.S. ENVIRON MENTAL PROTECTION AGENCY, REGION 2

290 BROADWAY

- 21ST FLOOR NEW YORK, NEW YORK 10007

- 1866 DIRECTOR

CARIBBEAN ENVIRONMENTAL

PROTECTION DIVISION

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 2

EDIF CENTRO EUROPA STE 417

1492 AVENIDA PONCE DE LEON SAN JUAN, PUERTO RICO 00907

- 4127

ENVIRONMENTAL QUALITY BOARD

OF PUERTO RICO

P.O. BOX 11488 SANTURCE, PUERTO RICO 00910

3

. Twenty

- four hour reporting

.

Pollutants for which the permittee must report violations of maximum daily discharge limitations under paragraph 12.f of Part II.B (40 CFR §122.41(1)(6)(ii)(C)) (24 hour reporting) shall be listed in the permit as included in Table A

- 1.

4. Additional reporting requirements

.

Existing manufacturing, commercia l, mining, and silvicultural dischargers. In addition to the reporting requirements under 40 C.F.R. §122.41(1), all existing manufacturing, commercial, mining, and silvicultural dischargers must notify the Director as soon as they know or have reason

to be lieve:PART I Page 24 of 41 Pages

Permit No. PR0000591

a. That any activity has occurred or will occur which would result in the discharge, on a

r outine or frequent basis, of any toxic pollutant which is not limited in the permit, if that discharge will exceed the highest of the following "notification le vels":

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

(2) Two hundred micrograms per liter (200 ug/l) for acrolein and acrylonitrile; five hundred micrograms per liter (500 ug/l) for 2, 4

- dinitrophenol and for 2

- methyl

- 4,

6

- dinitrophenol; and one mi lligram per liter (1 mg/l) for antimony;

(3) Five (5) times the maximum concentration value reported for that pollutant in the permit application in accordance with 40 C.F.R. §122.21(g)(7); or

(4) The level established as follows b y the Director in accor dance with 40 C.F.R. §122.44(f) : Not Applicable

b. That any activity has occurred or will occur which would result in any discharge, on a

non

- routine or infrequent basis, of a toxic pollutant which is not limited in the permit, if that discharge will exc eed the highest of the following "notification levels":

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

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

(3) Ten (10) times the maximum concentration value reported for that pollutant in the permit application in accordance with 40 C.F.R. §122.21(g)(7); or

(4) The level established as follows by the Director in accordance with 40 C.F.R. §122.44(f) : Not ApplicablePART II Page 25 of 41 Pages

Permit No. PR00000591

A. DEFINIT IONS

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

month.

2. "Average weekly discharge limitation" means t he highest allowable average of "daily discharges" over a calendar week, calculated as the sum of all daily discharges measured during a calendar week divided by the number of daily discharges measured during that

week.

3. "Bypass" means the intentional d iversion of waste streams from any portion of a treatment facility.

4. "Composite" means a combination of individual (or continuously taken) samples obtained at regular intervals over the entire discharge day. The volume of each sample shall be proportio nal to the discharge flow rate. For a continuous discharge, a minimum of 24 individual grab samples (at hourly intervals) shall be collected and combined to

constitute a 24

- hour composite sample. For intermittent discharges of more than four (4)

hours du ration, grab samples shall be taken at a minimum of 30 minute intervals.

5. "Daily discharge" means the discharge of a pollutant measured during a calendar day or any 24

- hour period that reasonably represents the calendar day for purposes of sampling.

Fo r pollutants with limitations expressed in units of mass, the "daily discharge" is calculated as the total mass of the pollutant discharge over the day. For pollutants with limitations expressed in other units of measurement, the "daily discharge" is calc ulated as the average measurement of pollutant over the day. For purposes of sampling, "daily" means an operating day or 24

- hour period.

6. "Director" means the "Regional Administrator" or the "State Director", as the context requires, or an authorized r epresentative. Until the State has an approved State program authorized by EPA under 40 C.F.R. Part 123, "Director" means the Regional Administrator. When there is an approved State program, "Director" normally means the

State Director. Even in such cir cumstances, EPA may retain authority to take certain action (see, for example, 40 C.F.R. 123.1(d), 45 Federal Register 14178, April 1, 1983, on the retention of jurisdiction over permits EPA issued before program approval). If any condition of this permit requires the reporting of information or other actions to both the Regional Administrator and the State Director, regardless of who has permit

- issuing authority, the terms "Regional Administrator" and "State Director" will be used in place

of "Director".PART II Page 26 of 41 Pages

Permit No. PR00000591

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

self

- monitoring results by permittees.

8. "Grab" means an individual sample collected in less than 15 minutes.

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

10. "Maximum daily discharge limita tion" means the highest allowable "daily discharge".

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

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

a. The intake water source must be drawn for the same b ody of water into which the discharge is made; and

b. In cases where the surface water body intake source is pretreated for the removal of pollutants, the intake level of a pollutant to be used in calculating the net is that level contained after the pret reatment steps.

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

14

. "Severe property damage" means substantial physical damage to property, damage to the

t reatment facilities which cause s them to become inop erable

, or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass. Severe property damage does not mean economic loss caused by delays in production.

15. "State Director" means the chief administrative officer of the State water pollution control agency, or the authorized representative of the State Director.

1 6. "Toxic pollutant" means any of the pollutants listed in 40 C.F.R. § 401.15 (4 5 F.R. 44503, July 30, 1979) and any modification to that list in accordance with Section 307 (a)(1) of

the Clean Water Act.PART II Page 27 of 41 Pages

Permit No. PR00000591

17. "Upset" means an exceptional incident in which there is unintentional and temporary noncompliance with technology

- based permit effluent limitations because of factors beyond the reasonable control of the permittee. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation.

18. "Weekly" means every seventh day (the same day of each week) and a normal operating day.PART II Page 28 of 41 Pages

Permit No. PR00000591

B. GENERAL CONDITIONS

TABLE OF REGULATORY REFERENCES FOR GENERAL CONDITIONS

Note: General Conditi on language in Part II, Sections B.1 through B.14, and B.17 is based on the July 1, 2010 Code of Federal Regulations (C.F.R.). Reference to language in the U.S.C. (United States Code) is based on the date of permit issuance.

Section Section Title Refere nce
B. 1. Duty to Comply 40 C.F.R. §122.41(a)

B.2. Duty to Reapply 40 C.F.R. §122.41(b)

B.3. Need to Halt or Reduce not a Defense 40 C.F.R. §122.41(c)

B.4. Duty to Mitigate 40 C.F.R. §122.41(d)

B.5. Proper operation and maintenance 40 C.F.R. §122.41(e)

B.6. Permit actions 40 C.F.R. §122.41(f)

B.7. Property rights 40 C.F.R. §122.41(g)

B.8. Duty to provide information 40 C.F.R. §122.41(h)

B.9. Inspection and Entry 40 C.F.R. §122.41(i)

B.10. Monitoring and records 40 C.F.R. §122.41(j)

B.11. Signatory requirements 40 C.F.R. §122.41(k)

B.12. Reporting Requirements 40 C.F.R. §122.41(l)

B.13. Bypass 40 C.F.R. §122.41(m)

B.14. Upset 40 C.F.R. §122.41(n)

B.15. Removed substances 33 U.S.C. §1311

B.16. Oil and hazardous substance liability 33 U.S.C. §1321

B.17. Reopener clause for toxic effluent limitations 40 C.F.R. §122.44(b)(1)

B.18. State laws 33 U.S.C. §1370

B.19. Availability of information 33 U.S.C. §1318

B.20. Severability

-PART II Page 29 of 41 Pages

Permit No. PR00000591

1. Duty to Comply

.

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

for denial of a permit renewal application.

b. The permittee shall com ply with effluent standards or prohibitions established under section 307(a) of the Clean Water Act for toxic pollutants and with standards for sewage sludge use or disposal established under section 405(d) of the Clean Water Act within the time provided i n the regulations that establish these standards or prohibitions or standards for sewage sludge use or disposal, even if the permit has not yet been modified to incorporate the requirement.

c. The Clean Water Act provides that any person who violates s ect ion 301, 302, 306, 307, 308, 318 or 405 of the Clean Water Act, or any permit condition or limitation implementing any such sections in a permit issued under section 402, or any requirement imposed in a pretreatment program approved under sections 402(a)(3 ) or 402(b)(8) of the

Clean Water Act, is subject to a civil penalty not to exceed $37

, 5 00 per day for each violation (as adjusted by 40 C.F.R. Part 19).

d

. The Clean Water Act provides that a ny person who negligently violates Sections 301, 302, 306, 307, 308, 318, or 405 of the Clean Water Act, or any permit condition or limitation implementing any such sections in a permit issued under section 402 of the

Clean Water Act, or any requirement imposed in a pretreatment program approved under section 402(a)(3 ) or 402(b)(8) of the Clean Water Act, is subject to criminal penalties of

not less than $2,500 n o r more than $25,000 per day of violation, or imprisonment of not more than 1 year, or both. In the case of a second or subsequent conviction for a negligent violation of the Clean Water Act , a person shall be subject to criminal penalties of not more than $50,000 per day of violation, or by imprisonment of not more than 2 years, or both.

e

. The Clean Water Act provides that a ny person who knowingly violates S ections 301, 302, 306, 307, 308, 318, or 405 of the Clean Water Act, or any permit condition or limitation implementing any of such sections in a permit issued under section 402 of the

Clean Water Act, or any requirement imposed in a pretreatment program a pproved under section 402(a)(3) or 402(b)(8) of the Clean Water Act, is subject to criminal penalties of

not less than $5,000 n o r more than $50,000 per day of violation, or imprisonment for not more than 3 years, or both. In the case of a second or subseq uent conviction for a knowing violation of the Clean Water Act , a person shall be subject to criminal penaltiesPART II Page 30 of 41 Pages

Permit No. PR00000591

of not more than $100,000 per day of violation, or imprisonment of not more than 6 years, or both.

f

. A ny person who knowingly violates S ection s 301, 302, 303, 306, 307, 308, 318 or 405 of

the Clean Water Act, or any permit condition or limitation implementing any of such sections in a permit issued under section 402 of the Clean Water Act, and who knows at that time that he thereby places anothe r person in imminent danger of death or serious bodily injury, shall, upon conviction, be subject to a fine of not more than $250,000 or imprisonment of not more than 15 years, or both. A person which is an organization, as

defined at 33 U.S.C. 309(c)(3)(B )(iii), shall, upon conviction be subject to a fine of not more than $1,000,000. In the case of a second or subsequent conviction for a knowing endangerment violation of the Clean Water Act

, the maximum punishment shall be doubled with respect to both fin e and imprisonment.

g

. Any person who knowingly makes any false material statement, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained under the Clean Water Act or who knowingly falsifies, tampers with, or renders inaccurate any monitoring device or method required to be maintained under this chapter, shall upon conviction, be punished by a fine of not more than $10,000, or imprisonment for not more than 2 years, or both. In the case of a second or subsequent conviction, under this paragraph, punishment shall be by a fine of not more than $20,000 per day of violation, or by imprisonment of not more than 4 years, or both.

h

. Any person may be assessed an administrative penalty by the Administrator for violating section 301, 302, 306, 307, 308, 318 or 405 of this Act, or any permit condition or limitation implementing any of such sections in a permit issued under section 402 of this Act. Administrative penalties for Class I violatio ns are not to exceed $1 6 ,000 per

violation (as adjusted by 40 C.F.R. Part 19) , with the maximum amount of any Class I penalty assessed not to exceed $ 37,5 00 (as adjusted by 40 C.F.R. Part 19)

. Penalties for

Class II violations are not to exceed $16 ,000 pe r day for each day during which the

violation continues (as adjusted by 40 C.F.R. Part 19) , with the maximum amount of any Class II penalty not to exceed $1 77,5 00 (as adjusted by 40 C.F.R. Part 19)

.

2. Duty to Reapply

.

This permit and the authorization to discharge shall terminate on the expiration date indicated on the first page. In order to receive authorization to discharge after the expiration date of this permit, the permittee must apply for and obtain a new permit. If the permit issuing authori ty remains EPA, the permittee shall complete, sign, and submit an application to the Regional Administrator no later than 180 days before the expiration date.PART II Page 31 of 41 Pages

Permit No. PR00000591

3. Need to Halt or Reduce not a Defense

It shall not be a defense for a permittee in an enforce ment action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit.

4. Duty to Mitigate

.

The permittee shall take all reasonable steps to minimize or prevent any dis charge or sludge use or disposal in violation of this permit which has a reasonable likelihood of adversely affecting

human health or the environment.

5. Proper Operation and M ai ntenanc e

The permittee shall at all times properly operate and maintain all facilities and systems of treatment and control (and related appurtenances) which are installed or used by the permittee to achieve compliance with the conditions of this permit. Proper operation and maintenance also includes adequate laboratory controls and appropriate quality assurance procedures. This provision requires the operation of back

- up or auxiliary facilities or similar systems which are installed by a permittee only when the operation is necessary to achieve compliance with the

conditions of the permit.

6. Permit A ctions

This permit may be modified, revoked and reissued, or terminated during its term pursuant to

40 C.F.R. Part 122, Subpart D . The filing of a request by the permittee for a permit modification, revocation and reissuance, o r termination, or a notification of planned changes or anticipated noncompliance does not stay any permit condition.

7. Property R ights

This permit does not convey any property rights of any sort

, or any exclusive privileges.

8. Duty to Provide I nformat ion

The permittee shall furnish to the Director

, within a reasonable time, any information which the Director may request to determine whether cause exists for modifying, revoking and reissuing, or terminating this permit

, or to determine compliance with this permit. The permittee shall also furnish to the Director, upon request, copies of records required to be kept by this permit.PART II Page 32 of 41 Pages

Permit No. PR00000591

9. Inspection and Entry

The permittee shall allow the Director, or an authorized representative (including an authoriz ed contractor acting as a representative of the Administrator), upon presentation of credentials and other documents as may be required by law, to:

a. Enter upon the permittee's premises where a regulated facility or activity is located or conducted, or w here records must be kept under the conditions of this permit;

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

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

d. Sample or monitor at reasonable times, for the purposes of assuring permit compliance or as otherwise authorized by the Clean Water Act, any substances or parameters at any
location.

10. Monitoring and records

.

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

b. Except for records of monitoring information required by this permit related to the permittee's sewage sludge use and disposal activities, which shall be retained for a period of at least five years (or longer as required by 40 C.F.R. part 503), the permittee shall retain records of all monitoring information, including all calibr ation and maintenance records and all original strip chart recordings for continuous monitoring instrumentation, copies of all reports required by this permit, and records of all data used to complete the application for this permit, for a period of at lea st 3 years from the date of the sample,

measurement report or application. This period may be extended by request of the Director at any time.

c. Records of monitoring information shall include:

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

(2) The individual(s) who performed the sampling or measurements;

(3) The date(s) analyses were performed;PART II Page 33 of 41 Pages

Permit No. PR00000591

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

(5) The analytical techniques or methods used; and

( 6 ) The results of such analyses.

d

. Monitoring must be conducted according to test procedures approved under 40 C.F.R.

Part 136 and any subsequent changes to the methods contained therein unless another method is required under 40 C.F.R. subchapters N or O

.

e. The Clean Water Act provides that any person who falsifies, tampers with, or knowingly renders inaccurate any monitoring device or method required to be maintained under this permit shall, upon conviction, be punished by a fine of not more than $10,000, or by imprisonment for not mor e than 2 years, or by both. If a conviction of a person is for a violation committed after a first conviction of such person under this paragraph, punishment is a fine of not more than $20,000 per day of violation, or by imprisonment

of not more than four years, or both. (See U.S.C. §1319(c)(4)).

11. Signatory requirements

. All applications, reports, or information submitted to the Director shall be signed and certified. (See 40 C.F.R. §122.22)

a. Applications. All permit applications shall be si gned as follows:

(1) For a corporation. By a responsible corporate officer. For the purpose of this section, a responsible corporate officer means: (i) A president, secretary, treasurer, or vice

- president of the corporation in charge of a principal busine ss function, or any other person who performs similar policy

- or decision

making functions for the corporation, or (ii) the manager of one or more manufacturing, production, or operating facilities, provided, the manager is authorized to make management de cisions which govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiating and directing other comprehensive measures to assure long term environmental comp liance with environmental laws and regulations; the manager can ensure that the necessary systems are established or actions taken to gather complete and accurate information for permit application requirements; and where authority to sign documents has b een assigned or delegated to the manager in accordance with corporate procedures.

Note: EPA does not require specific assignments or delegations of authority to responsible corporate officers identified in 40 C.F.R. §122.22(a)(1)(i). The Agency will presu me that these responsible corporate officers have thePART II Page 34 of 41 Pages

Permit No. PR00000591

requisite authority to sign permit applications unless the corporation has notified the Director to the contrary. Corporate procedures governing authority to sign permit applications may provide for ass ignment or delegation to applicable corporate positions under 40 C.F.R. §122.22(a)(1)(ii) rather than to specific individuals.

(2) For a partnership or sole proprietorship. By a general partner or the p roprietor, respectively; or

(3) For a municipality, State, Federal, or other public agency. By either a principal executive officer or ranking elected official. For purposes of this section, a principal executive officer of a Federal agency includes: (i) The chief executive officer of the agency, or (ii) a senior executive officer having responsibility for the overall operations of a principal geographic unit of the agency (e.g., Regional Administrators of EPA).

b. All reports required by permits, and other information requested by the Director shall

be signed by a person described in paragraph 11. a of Part II.B , or by a duly authorized representative of that person. A person is a duly authorized representative only if:

(1) The authorization is made in writing by a person described in paragraph 11. a of Part II.B ;

(2) The authorization specifies either an individual or a position having responsibility for the overall operation of the regulated facility or activity such as the position of plant manager, operator of a well or a well field, superintendent, position of equivalent responsibility, or an individual or position having overall responsibility for environmental matters for the company, (A duly authorized representative may thus be either a named individual or any individual occupying a named positio n.) and,

(3) The written authorization is submitted to the Regional Administrator, U.S. Environmental Protection Agency, Region II, 290 Broadway, New York, New York, 10007

- 1866, Attention: Compliance Assistance Program Support Branch, and to the State Dir ector.

c. Changes to authorization. If an authorization under paragraph 11. b of Part II.B is no longer accurate because a different individual or position has responsibility for the overall operation of the facility, a new authorization satisfying the req uirements of paragraph 11. b of Part II.B must be submitted to the Director prior to or together with any reports, information, or applications to be signed by an authorized representative.PART II Page 35 of 41 Pages

Permit No. PR00000591

d. Certification. Any person signing a document under paragraph 11

. a or 11. b of

Part II.B shall make the following certification:

I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel p roperly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and be lief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing

violations.

e

. The Clean Water Act provides that any person who knowingly makes any false

material statement, representation, or certification in any record or other document submitted or required to be maintained under this permit, including monitoring reports or reports of compliance or noncompliance shall, upon conviction, b e punished by a fine of not more than $10,000 per violation, or by imprisonment for not more than 6 months per violation, or by imprisonment for not more than 6 months per violation, or by both . If a conviction is for a

violation committed after a first conviction of such person under this paragraph, punishment shall be by a fine of not more than $20,000 per day of violation, or by imprisonment of not more than four years, or both. (See section 309.c.4 of the Clean Water Act).

12. Reporting Requirement s

.

a. Planned changes. The permittee shall give notice to the Director as soon as possible of any planned physical alterations or additions to the permitted facility. Notice is required only when:

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

(2) The alteration or addition could significantly change the nature or increase the quantity of pollutants discharged. This notification applies to po llutants which are subject neither to effluent limitations in the permit, nor to notification requirements under paragraph 4.a of Part I.B (40 C.F.R. §122.42(a)(1)) ; orPART II Page 36 of 41 Pages

Permit No. PR00000591

(3) The alteration or addition results in a significant change in the permittee's

slud ge use or disposal practices, and such alteration, addition, or change may justify the application of permit conditions that are different from or absent in the existing permit, including notification of additional use or disposal sites not reported during the permit application process or not reported pursuant to an approved land application plan.

b. Anticipated noncompliance. The permittee shall give advance notice to the Director of any planned changes in the permitted facility or activity which may re sult in noncompliance with permit requirements.

c. Transfers. This permit is not transferable to any person except after notice to the Director. The Director may require modification or revocation and reissuance of the permit to change the name of the p ermittee and incorporate such other requirements as may be necessary under the Clean Water Act. (See 40 C.F.R. §122.61; in some cases, modification or revocation and reissuance is mandatory.)

d. Monitoring report s. Monitoring results shall be reported at the intervals specified in

Part I of this permit.

( 1 ) Monitoring results shall be reported on a Discharge Monitoring Report (DMR) or forms provided or specified by the Director for reporting results of monitoring of sludge use or disposal practices.

( 2 ) If the permittee monitors any pollutant more frequently than required by the permit using test procedures approved under 40 C.F.R. 136, or another method required for an industry

- specific waste stream under 40 C.F.R. subchapters N or O, the results of su ch monitoring shall be included in the calculation and reporting of the data submitted in the DMR or sludge reporting form specified by the Director.

( 3 ) Calculations for all limitations which require averaging of measurements shall

utilize an arithmetic mean unless otherwise specified by the Director in the permit.

e. Compliance Schedules. Reports of compliance or noncompliance with, or any progress reports on, interim and final requirements contained in any compliance schedule of this permit shall be s ubmitted no later than 14 days following each

schedule date.

f. Twenty

- four hour reporting.PART II Page 37 of 41 Pages

Permit No. PR00000591

(1) The permittee shall report any noncompliance which may endanger health or the environment. Any information shall be provided orally within 24 hours from the t ime the permittee becomes aware of the circumstances to the Regional Administrator at (732) 548

- 8730 and State Director. A written submission shall also be provided within 5 days of the time the permittee becomes aware of the circumstances. The

written sub mission shall contain a description of the noncompliance and its cause; the period of noncompliance, including exact dates and times, and if the noncompliance has not been corrected, the anticipated time it is expected to continue; and steps taken or plann ed to reduce, eliminate, and prevent reoccurrence of the noncompliance.

(2) The following shall be included as information which must be reported within 24 hours under this paragraph.

(a) Any unanticipated bypass (see 13 below) which exceeds any effluen t limitation in the permit. (See 40 C.F.R. §122.41(g)).

(b) Any upset (see 14 below) which exceeds any effluent limitation in the permit.

(c) Violation of a maximum daily discharge limitation for any of the pollutants listed by the Director in the permit to be reported within 24 hours. (See 40 C.F.R. §122.44(g))

.

(3) The Director may waive the written report on a case

- by

- case basis for reports under paragraph 12. f

.(2) of Part II.B if the oral report has been received within 24

hours.

g. Other noncompli ance. The permittee shall report all instances of noncompliance not reported under paragraphs 12. d, e, and f of Part II.B , at the time the monitoring report s are submitted. The reports shall contain the information listed in paragraph 12.f of Part II.B.

h. Other information. Where the permittee becomes aware that it failed to submit any relevant facts in a permit application, or submitted incorrect information in a permit application or in any report to the Director, it shall promptly submit such facts or information.

13. Bypass

a. Bypass not exceeding limitations. The permittee may allow any bypass to occur which does not cause effluent limitations to be exceeded, but only if it also is for essential maintenance to assure efficient operation. Thes e bypasses are not subject to the provisions of paragraphs 13.b. and 13.c of Part II.B

.PART II Page 38 of 41 Pages

Permit No. PR00000591

b. Notice.

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

(2) Unanticipated bypass. The permittee shall submit notice of an unanticipated bypass as required in paragraph 12.f of Part II.B (24

- hour notice).

c. Prohibition of bypass.

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

(a) Bypass was unavoidable to prevent loss of life, personal injury, or severe property damage;

(b) There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facili ties, retention of untreated wastes, or maintenance during normal periods of equipment downtime. This condition is not satisfied if adequate back

- up equipment should have been installed in the exercise of reasonable engineering judgement to prevent a bypa ss which occurred during normal periods of equipment downtime or preventive maintenance; and

(c) The permittee submitted notices as required under paragraph 13.b of Part

II.B

.

(2) The Director may approve an anticipated bypass, after considering its adve rse effects, if the Director determines that it will meet the three conditions listed above in paragraph 13.b. (1) of Part II.B

.

14. Upset

.

a. Effect of an upset. An upset constitutes an affirmative defense to an action brought for noncompliance wit h su ch technolog y

- based permit effluent limitations if the requirements of paragraph 14.(b) of Part II.B are met. No determination made during administrative review of claims that noncompliance was caused by upset, and before an action for noncompliance, is f inal administrative action subject to judicial review.

b. Conditions necessary for a demonstration of upset. A permittee who wishes to establish the affirmative defense of upset shall demonstrate, through properly signed, contemporaneous operating logs, or other relevant evidence that:PART II Page 39 of 41 Pages

Permit No. PR00000591

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

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

(3) The permittee submitted notice of the upset as required in par agraph 12.f.(2)(b) of Part II.B (24 hour notice) ; and

(4) The permittee complied with any remedial measures required under paragraph

4 of Part II.B (duty to mitigate).

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

15. Removed substances.

Pursuant to section 301 of the Clean Water Act, solids, sludges, filter backwash or other pollutants removed in the course of treatment or control of wastewaters and/or the tr eatment of intake waters shall be disposed of in a manner such as to prevent any pollutant from such materials from entering navigable waters. The following data shall be reported together with the monitoring data required in paragraph 2 of Part I.B :

a. Th e sources of the materials to be disposed of;

b. The approximate volumes and weights;

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

d. Their final disposal locations.

16. Oil and hazardous substance liability.

The imposition of responsibiliti es upon, or the institution of any legal action against the permittee under Section 311 of the Clean Water Act shall be in conformance with regulations promulgated pursuant to Section 311 to discharges from facilities with NPDES permits.

17. Reopener clause f or toxic effluent limitations.

Other effluent limitations and standards under sections 301, 302, 303, 307, 318 and 405 of the

Clean Water Act . If any applicable toxic effluent standard or prohibition (including any schedule of compliance specified in s uch effluent standard or prohibition) is promulgated under Section 307(a) of the Clean Water Act for a toxic pollutant and that standard or prohibition isPART II Page 40 of 41 Pages

Permit No. PR00000591

more stringent than any limitation on the pollutant in the permit, the Director shall institute

proce edings under these regulations to modify or revoke and reissue the permit to conform to the toxic effluent standard or prohibition. See also 40 C.F.R. §122.41(a).

18. State laws

.

Nothing in this permit shall be construed to preclude the institution of any legal action or relieve the permittee from any responsibilities, liabilities, or penalties established pursuant to any applicable State law or regulation under authority preserved by Section 510 of the Clean Water Act. The issuance of this permit does not preempt any duty to obtain State or local assent required by law for the discharge.

19. Availability of information. (Section 308 of the Clean Water Act)

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

Administrator and State Director.

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

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

s ubsection a., that information shall be treated in accordance with the procedures in 40

C.F.R. Part 2. Only information determined to be confidential under those procedures shall not be made available by EPA for public inspection.

20. Severability.

T h e provisions of this permit are severable, and if any provision of this permit, or the application of any provision of this permit to any circumstance, is held invalid, the application of such provision to other circumstances, and the remainder of this per mit, shall not be affected thereby.Part II Page 41 of 41

Permit No. PR0000591

C. EFFECTIVENESS OF PERMIT

1. This permit shall become effective in its entirety on the date indicated on the first page of this permit unless a petition has been filed with the Environmental Appeals Board to review a ny condition of the permit decision pursuant to the provisions of 40 C.F.R. Part 124.19. All contested conditions and any uncontested condition(s) that are inseverable from the contested conditions shall be stayed. All other conditions shall become effect ive thirty (30) days after the date of the notification specified in 40 C.F.R. § 124.16(a)(2)(ii).

2. For purposes of judicial review under Section 509(b) of the Clean Water Act, final agency action on a permit does not occur unless and until a party has e xhausted its administrative remedies under

40 C.F.R. 124. Any party which neglects or fails to seek review under 40 C.F.R. § 124.19, thereby waives its opportunity to exhaust available agency administrative remedies.NPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 1 of 9

UNITED STATES

ENVIRONMENTAL PROTECTION AGENCY

REGION 2 290 Broadway New York, New York 10007-1866

STATEMENT OF BASIS

FOR

DRAFT NATIONAL POLLUTANT DISCHARGE ELIMINATION SYST EM (NPDES)

PERMIT MODIFICATION TO DISCHARGE

INTO THE WATERS OF THE UNITED STATES

NPDES Permit No. PR0000591

Name and Address of Applicant:

Bacardi Corporation

P.O. Box 363549 San Juan, Puerto Rico 00936 - 3549

hereinafter referred to as “the permittee”, is aut horized to discharge from the following facility:

Bacardi Corporation State Road No. 165, Km 2.6

Industrial Area Cataño, Puerto Rico 00632

to receiving waters named:

Atlantic Ocean

Receiving Water Classification: SC

LOCATION OF DISCHARGE

The above named applicant has applied for a Nationa l Pollutant Discharge Elimination System (NPDES) permit, to the U.S. Environmental Protectio n Agency (EPA) to discharge into the designated receiving water. The location of the di scharge, Outfall 001, is described by the following U.S.G.S. coordinates:

Outfall Latitude Longitude

001 18° 27' 59" 66o 09' 30"NPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 2 of 9

DESCRIPTION OF APPLICANT’S FACILITY AND DISCHARGE

The permittee is engaged in the production of ethyl alcohol in the form of rum (SIC No. 2085). This rum is produced by the fermentation and distil lation of molasses. The facility currently operates at a maximum production rate of approximat ely 115,000 proof gallons per day, with an average production rate of approximately 83,600 pro of gallons per day. Within the last three years the permittee has modified the production pro cess to extract more product from the raw molasses. The operation of the plant includes perio ds of shutdown and start up, at intervals during the year of a few months apart. Process flo w diagrams for different operational scenarios

are included in Attachment I.

The Bacardi Corporation distillery is located on th e coast of San Juan Bay. Waste product generated through the distillation of rum is treate d by anaerobic digesters, designed to accommodate an average daily flow of 2 MGD and a ma ximum daily flow of 4 MGD. The permitted flow through the Bacardi outfall system i s a daily maximum of 2 MGD. Bacardi has revised its operations since the issuance of the ex isting 2007 NPDES permit. Volume of production has decreased from previous levels, and the distillery operates approximately 143 days per year as opposed to year round operation. During shutdown periods, the treatment system is kept operational with minimal feed to mai ntain the biomass of the anaerobic treatment system. The flow during this period is significant ly reduced to less than 10% of normal flow. This results in high bacterial concentration due to increased solids retention time in the anaerobic treatment units. The permittee has made several fa cility modifications since the last permit issuance. Additionally, the permittee has made sev eral improvements to separate wastestreams

and eliminate sources of bacterial contamination.

The flow of Bacardi discharge 001 is tied into a co mbined outfall which also discharges treated effluent from the Bayamón Regional Wastewater Treat ment Plant (RWWTP) and the Puerto

Nuevo RWWTP. The combined effluent is then dischar ged approximately 7,365 ft (2,246 m) from the shoreline into the Atlantic Ocean, at a lo cation approximately 3,600 ft (1,097 m) north of Isla de Cabras, at a depth of 141 ft (43 m). The discharge is through a high-rate, Y-shaped diffuser consisting of two (2) legs that are each 1 ,010 ft (308 m) in length and a constant 84-inch diameter. The west leg of the diffuser has 100 bell - mouthed ports and the east leg of the diffuser has 102 bell-mouthed ports, each at 15 degrees from the horizontal. There are a total of 202 ports. On the west diffuser leg, there are 80 insho re ports that have a diameter of 6 in (15.2 cm), 19 offshore ports that have a diameter of 7 in (17. 8 cm), and 1 10-inch (25.4 cm) port. On the east diffuser leg, there are 81 inshore ports that have a diameter of 6 in (15.2 cm), 20 offshore ports that have a diameter of 7 in (17.8 cm), and 1 10-inch port. The ports discharge on alternating sides of the diffuser and are evenly sp aced at 10 ft (3.05 m) intervals. The diffuser is currently operated with all 202 ports open.

The outfall system is owned and operated by the Pue rto Rico Aqueduct and Sewer Authority (PRASA) to dispose of treated effluents from the Ba yamón and Puerto Nuevo RWWTPs. The Bayamón RWWTP and Puerto Nuevo RWWTP are municipal sewage treatment plants operated by the PRASA and their discharges are regulated by separate NPDES permits. The AtlanticNPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 3 of 9

Ocean is classified as SC water in the Puerto Rico Water Quality Standards Regulation (PRWQSR), by the Environmental Quality Board (EQB) of the Commonwealth of Puerto Rico. A detailed description of the type and quantity of pollutants which are to be discharged is listed

in the draft Permit.

On September 28, 2011, the U.S. Environmental Prote ction Agency, Region 2 issued a final NPDES permit to the Bacardi Corporation (Bacardi), for the discharge from its facility located in Cataño, Puerto Rico. The EPA specified that the Pe rmit was to become effective on December
1, 2011.

On November 16, 2011, pursuant to 40 CFR §§124.19, Bacardi filed a Petition for Review with the Environmental Appeals Board (EAB), appealing ce rtain conditions included in the referenced Permit. In the Petition for Review submitted by B acardi to the EAB, Bacardi contested the

revised limitations for enterococcus and fecal coli forms included by the EPA. Bacardi also

contested the numeric limitation included for whole effluent toxicity, as well as the use of chronic toxicity units (TUc) based on the inverse o f the No Effects Concentration (NOEC) as a unit of determining compliance, in place of the Inh ibition Concentration of 25% (IC25) used in the previous permit cycle. A discussion of these i ssues and the resolution included in this permit

modification is included below.

EPA entered into the Alternative Dispute Resolution (ADR) process with Bacardi, agreeing to make the modifications requested in the Petition. EPA met with Bacardi and PRASA (which also appealed the whole effluent toxicity condition of its Puerto Nuevo RWWTP’s permit) in an ADR conference call on January 25, 2012, to discuss resolution of the contested conditions. This permit modification action is to finalize EPA Regio n 2’s decision on the contested conditions. EPA is accepting comment solely on the proposed mod ification of the contested conditions, which are explained in this Statement of Basis. Wi th the exception of those conditions that are being withdrawn and that are the subject of this pr oposed modification, as described below, all terms and conditions of the September 28, 2011 perm it became effective on December 1, 2011.

Bacterial Limitations

EPA has retained the interim limitations for bacter ial parameters (Enterococci, Fecal Coliforms) that are currently applicable to the discharge base d on existing effluent quality limits proposed in the draft 2011 EPA and Bacardi Corporation Consent Decree modification to the 2008 Consent Decree with the Bacardi Corporation ( U.S. v Bacardi Corporation , Civil Action No. 3:08-cv1825).

These limitations are more stringent than those inc luded as part of the EQB water quality certificate. These limitations are achievable by t he permittee during normal operational conditions. While EPA notes a mixing zone was app roved in the EQB water quality certificate dated June 3, 2010, publicly owned treatment works (POTWs) and industrial facilities should be held to the level of performance for its discharge that is achievable through treatment rather thanNPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 4 of 9

assume all assimilative capacity of the receiving w ater, particularly for bacterial parameters. EPA Region 2 Antibacksliding Policy allows for rela xation of permit limits subject to the provisions of Clean Water Act §402(o), but only to the point of existing effluent quality, in accordance with antidegradation requirements.

Given the difficulty the permittee has encountered with bacterial levels when resuming operations following periods of shutdown, in the pe rmit issued by the EPA in 2011, EPA applied the higher EQB limitations solely for the three wee k period following start-up of operations. As a result of our conversations with Bacardi during t he ADR process, EPA has included in this modification the application of the higher limitati ons at the shutdown stage in addition to the three week period following start up of operations. This modification appears in the notes to Table A-1 on Page 6 of the modified permit, as well as within Special Condition 17 on page 15 of the modified permit.

Whole Effluent Toxicity

In the 2011 permit, EPA had included an effluent li mitation for Whole Effluent Toxicity (WET) for the combined discharge of Bacardi, PRASA Bayamó n RWWTP, and PRASA Puerto Nuevo RWWTP. WET monitoring requirements had also been i ncluded for the combined discharge and the discharge 001 from the Bacardi facility. S imilar monitoring requirements were incorporated into the NPDES permits for the PRASA B ayamón RWWTP and Puerto Nuevo

RWWTP.

Rule 1303.1(I) of PRWQS provides that all waters of Puerto Rico shall not contain any substance at such concentration which, either alone or as res ult of synergistic effects with other substances is toxic or produces undesirable physiological resp onses in human, fish or other fauna or flora. This is generally referred to as a narrative water quality criterion "no toxics in toxic amounts". PRWQS do not provide a numeric criterion for toxici ty. Since controls on individual pollutants may not always adequately protect water quality, to xicity testing is used to assess and control whole effluent toxicity, which is necessary to redu ce or eliminate the toxic impact of the effluent and meet narrative water quality criteria (54 FR 23 868, June 2, 1989). NPDES regulations define WET as the whole or aggregate toxic effect of an ef fluent measured directly by a toxicity test.

Pursuant to the current modified permits, PRASA is required to conduct acute and chronic WET testing on the combined effluent and chronic only W ET testing on individual effluent samples from the Bayamón RWWTP, Puerto Nuevo RWWTP, and Bac ardi. Since 2007, PRASA has conducted four acute WET monitoring events for the combined effluent using the mysid shrimp ( Mysidopsis bahia ) and sheepshead minnow ( Cyprinidon variegates ) and 11 chronic WET monitoring events using these WET test species and the sea urchin ( Arbacia punctulata) . Five of the most recent 11 chronic WET monitoring events al so included testing on individual effluent using the sea urchin. Since effluent toxicity is in versely related to the effect concentration (the lower the effect concentration, the higher the toxi city in the effluent), WET test data are typically expressed as toxic units (TUs) to better illustrate the magnitude of potential toxicity. Rule 1301.1 of PRWQS defines acute TU (TUa) and chronic TU (TUc ) values as the Lethal ConcentrationNPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 5 of 9

(LC 50 ) of the tested effluent at which 50 percent of the test organisms die, where TUa = 100 ÷

LC 50 ; and the No Observed Effect Concentration (NOEC), where TUc = 100 ÷ NOEC, respectively. 1 To assess WET test data, EPA recommends a criterio n maximum concentration (CMC) of 0.3 TUa and criterion continuous concentra tion (CCC) of 1.0 TUc be used to ensure aquatic life protection against toxicity in the rec eiving water. For the purpose of the section 301(h) evaluation, EPA determined the maximum allow able level of effluent toxicity or wasteload allocation (WLA) at the edge of the mixin g zone that would still ensure attainment of water quality criteria for toxicity. With considera tion of dilution and CMC and CCC values, EPA

calculated acute and chronic WLAs of 30.6 TUa and 1 02 TUc, respectively, and then compared

the WLAs to effluent WET test data.

Of the 30 chronic WET tests conducted on the combin ed effluent since 2007, 30 percent (or 10 tests) resulted in TUc values that exceeded the 102 TUc WLA. All of these tests were conducted on the sea urchin and 60 percent of them were condu cted in May 2007. When compared to the permit limitation of 1.00 percent effluent or 100 T Uc derived from the IC 25, or the inhibition concentration at which a 25 percent effect occurs, no chronic toxicity is demonstrated. Based on the NOEC pursuant to PRWQS, since these tests were conducted on the combined effluent it is difficult to distinguish whether effluent from one facility or all was contributing to toxicity in these tests. In 2009, PRASA and the Bacardi Corpora tion began conducting chronic WET testing on individual samples of effluent from each facilit y in addition to the combined effluent. Between 2009 and 2011, five chronic WET tests using the sea urchin were conducted and results showed no toxicity observed in terms of the NOEC fo r the combined effluent but showed repeated toxicity in effluent samples from Bacardi. This may suggest that toxicity demonstrated in tests of combined effluent prior to 2009 may be attributed to effluent from the Bacardi effluent. Nevertheless, nine WET monitoring events have been conducted since May 2007 and only one has demonstrated chronic toxicity on the c ombined effluent. Also no acute or chronic toxicity has been observed in effluent from the Bay amón RWWTP and only one effluent sample from the Puerto Nuevo RWWTP showed chronic toxicity

.

Based on review of WET data, in accordance with 40 CFR 122.44(d)(v), EPA has determined that the combined discharge will cause, has the rea sonable potential to cause, or contributes to an

excursion above the narrative criterion for chronic toxicity and has proposed effluent limitation for the combined discharge. With consideration of d ilution, utilizing the calculation procedures

in the EPA Guidance Technical Support Document for Water Quality-Based Toxics Control (March 1991), EPA included a maximum daily effluent limitation of 83.32 TUc (or 1.2% effluent) for chronic toxicity in the draft modifie d permits for the Bayamón RWWTP, Puerto Nuevo RWWTP, and Bacardi WWTP. The calculation of this limitation is included as

Attachment I.

1 The NOEC is the highest tested effluent concentrat ion (in percent effluent) that does not cause an ad verse effect on the test organism (i.e., the highest effluent conce ntration at which the values for the observed respo nses are not statistically different from the control).NPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 6 of 9

In addition to the limitation, EPA had included oth er toxicity testing requirements on the
individual effluents from these three facilities, a s these effluents combine prior to discharge. The toxicity observed in the effluent may be the result of toxicity in one or more of the discharges, or it may be the result of synergistic effects that oc cur when the effluents combine prior to discharge. The contemporaneous testing on each of the effluents from these facilities will provide an indication as to the source of any toxic ity observed in the combined discharge.

In the 2011 permits, EPA had also required that all three dischargers develop plans for a toxicity reduction evaluation (TRE) within the first six mon ths of the permit term. The three dischargers may coordinate and develop one plan to meet the per mit requirement in each NPDES permit. Violation of the limitation for chronic toxicity us ing the combined discharge would trigger accelerated monitoring of both the combined dischar ge and solely the Bacardi effluent (PRASA would be required to test their individual effluent s for the Bayamon and Puerto Nuevo facilities in addition to the combined discharge as well) for twelve weeks. During the accelerated testing period an additional violation of the limitation on the combined discharge would require these three permittees to activate their TRE workplans, a nd implement their strategy to identify and abate the source of toxicity.

As a result of conversations during the ADR process , EPA agreed to modify the permit to allow a three-year compliance schedule, during which time an interim limitation, based on existing effluent quality (EEQ) results would be applied. T his decision was based on the inclusion of a more stringent limitation, and the variability of N OEC results observed by Bacardi and PRASA

for the Arbacia punculata chronic fertilization test. The final effluent li mitation will remain the number calculated by EPA in the 2011 permit, and wi ll remain in terms of chronic toxicity units as defined using the inverse of the NEOC endpoint. It was explained during the ADR process that the number was calculated using EPA guidance t o ensure that the discharge would not cause

or contribute to a violation of the standard at the edge of the mixing zone, which is not a straight application of the dilution ratio, but a statistica l calculation that accounts for variability in effluent, dilution, and ambient conditions. The re tention of the NOEC endpoint was explained as required by the definition of chronic toxicity unit s in the definitions section of the Puerto Rico Water Quality Standards Regulation. However, the i nterim limitation is an EEQ number, which was calculated using IC25 results, such that the ca lculated number is a consistent projection of

the 95 th percentile result of toxicity results over the las t five years. The EEQ Calculation is

included as Attachment II.

During the timeframe of the interim limitation, the permittee will be required to develop a TRE workplan, which will be triggered by any exceedance of the final permit limitation of 83.32 TUc.NPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 7 of 9

ATTACHMENT I CALCULATION OF FINAL WHOLE EFFLUENT TO XICITY

PERMIT LIMIT

Calculation of Waste Load Allocation (WLA)

The WLA is used to determine the level of effluent concentration that will comply with water quality standards in receiving waters. Using the informatio n available for dilution, WLAs were calculated for WET using the complete mix equation, which simplifi es to

WLA = C

r x Dilution Ratio

where C

r = the water quality criterion concentration. In Pu erto Rico, a criterion continuous

concentration of 1.0 TUc, and a criterion maximum c oncentration (CMC) of 0.3 TUa is used as the numeric interpretation of the water quality standar d for toxicity.

Using a critical initial dilution (CID) ratio of 10 2:1, the chronic WLA would be

WLA

c = C

r x 102 = 1.0 x 102 = 102.0 TU

c

WLA

a = 0.3 × 102 = 30.6 TU

a

WLA a,c = WLA

a × ACR = 30.6 × 10 = 306 TU a,c

Calculate Long-term Averages (LTAs).

To calculate the long term average (LTA):

LTA = WLA × e [0.05 Φ 2 ! z Φ ]

LTA

a,c = 306 × 0.321 = 98.23 TU where:

0.321 is the acute WLA multiplier for Cv = 0.6 at t he 99 th percentile (from Table 5-1, pg. 102 of the TSD)

LTA

c = WLA

c × e [0.5 σ 4 2 - z σ 4 ]

LTA

c = 102 × 0.527 = 53.75 where:

0.527 is the chronic WLA multiplier at the 99 th percentile (from Table 5-1, pg. 102 of the TSD)NPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 8 of 9

Select the minimum LTA.

The LTA based on the chronic WLA is more limiting a nd will be used to develop permit limits.

Limit Calculation:

Using the 95 th percentile and monthly sampling, the effluent limit is calculated as:

LTA × e [z Φ

n ! 0.5 Φ

n 2 ] where e [z Φ

n ! 0.5 Φ

n 2 ] = AML LTA multiplier

z = 1.645 for the 95 th percentile occurrence probability for the AML is re commended

n = number of samples/month (the TSD recommends tha t a minimum n of 4 be used, even if monitoring is less frequent).

From Table 5-2, on pg. 102 of the TSD, for Cv = 0.6 and n=4,

AML = 53.75 × 1.55 = 83.32 TUcNPDES Statement of Basis Bacardi Corporation, NPDES No. PR0000591 Page 9 of 9

ATTACHMENT II: CALCULATION OF WET EXISTING EFFLUENT QUALITY

Arbacia Punctulata Results for Combined Bacardi PRA SA Discharge

IC25 100/IC25 Natural Log

February-2006 7.25 13.8 2.6242

March-2006 7.31 13.7 2.6159

April-2006 5 20.0 2.9957

September-2006 1.68 59.5 4.0864

November-2006 1.7 58.8 4.0745

November-2006 4 25.0 3.2189

April-2007 3.09 32.4 3.4770

April-2007 2.12 47.2 3.8538

April-2007 4.47 22.4 3.1078

May-2007 4.92 20.3 3.0119

May-2007 14.8 6.8 1.9105

May-2007 14.4 6.9 1.9379

May-2007 4.88 20.5 3.0200

May-2007 3.01 33.2 3.5032

May-2007 5.23 19.1 2.9508

May/June 2007 5.91 16.9 2.8285

September-2008 4.15 24.1 3.1821

December-2008 5.57 18.0 2.8878

February-2009 13.5 7.4 2.0025

June-2009 9.51 10.5 2.3528

August-2009 4.34 23.0 3.1373

November-2009 4.31 23.2 3.1442

March-2010 4.68 21.4 3.0619

May-2010 13.96 7.2 1.9690

September-2010 12.9 7.8 2.0479

November-2010 13.4 7.5 2.0099

March-2011 13.9 7.2 1.9733

May-2011 5.3 19.0 2.9469

Maximum daily limit = exp[ μ y + 2.326 σ y ] 99th percentile Inverse

Average monthly limit = exp[ μ n + 1.645 σ n ] 77.4846 1.29

μ y = estimated mean of the lognormally transformed

measurements

E(X) 95th percentile

σ y = standard deviation 37.8646

μ n = n-day monthly average - where n = 2 or 1 depending on monitoring frequency 21.3571

σ n = standard deviation V(X)

154.6258

Sn^2

0.1566

Un

2.9831