UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION IX 75 Hawthorne Street San Francisco, CA 94105-3901

CERTIFIED MAIL NO. 7007 149000004710 0594 RETURN RECEIPT REQUESTED


### Mr. Ron Flores President Florestone Products Co., Inc. 2851 Falcon Drive 

## MAY - 4 2009 Madera, California 93637
RE: In the Matter of: Florestone Products Co, Inc., Madera, California
DearMr. Flores: Enclosed is your copy ofthe Consent Agreement and Final Orderpursuant to 40 c.F.R. §§22.13 and 22.18 ("CAFO") filed for the above referenced matter. Underthe terms ofthe enclosed CAFO, Florestone Products must pay a civil penalty of$60,000 to resolve the violations alleged in the CAFO. Ifyou have any questions regarding the CAFO, please feel free to contact David Kim at (415) 972-3882. Sincerely,

# filyr/S~**~~_~~~~h** Jordan Director, Air Division Enclosure
cc: Seyed Sadredin, SJVAPCD (w/o encl.) James Ryden, ARB (w/o encl.) J. Thomas Boer, Barg Coffin Lewis & Trapp, LLP

Printed on Recycled Paper

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__ ... NANCY MARVEL Regional Counsel United States Environmental Protection Agency, Region IX 

### Z009MAY-4 P1'13:26
DAVIDH. KIM Assistant Regional Counsel United States Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105 (415) 972-3882 Attorneys for Plaintiff
UNITED STATES ENVIRONMENTALPROTECTION AGENCY REGION IX 75 HAWTHORNE STREET SAN FRANCISCO, CALIFORNIA 94105
INRE: ) ) DOCKETNO. CAA-09-2009-000J:\- FLORESTONE PRODUCTS CO., INC., ) ) ) CONSENT AGREEMENT AND FINAL ORDER PURSUANT TO 40 C.F.R. § § 22.13 and 22.18 ) )

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1. CONSENT AGREEMENT The United States Environmental Protection Agency, Region IX ("EPA Region IX"), and Florestone Products Co., Inc. ("Respondent") agree to settle this matter and consent to the entry ofthis Consent Agreement and Final Order ("CAFO") pursuant to 40 c.F.R. §§ 22.13 and 22.18. A. AUTHORITY AND PARTIES 1. This is a civil administrative action brought under Section 113(d) ofthe Clean Air Act

1(the "Act"), as amended, 42 U.S.c. § 7413(d), and the Consolidated Rules ofPractice Governing the Administrative Assessment ofCivil Penalties, 40 C.F.R.Part 22. 2. Complainant is the Director ofthe Air Division ofEPA Region IX
..The Administrator of EPA has delegated to the Regional Administrator ofEPA Region IX the authority to issue complaints, and the Regional Administrator, in tum, has re-delegated that authority to the Complainant. B. STATUTORY AND REGULATORY BASIS 3. Section 112 ofthe Act, 42 U.S.c. § 7412, lists various hazardous air pollutants and requires EPA to establish national emission standards for these pollutants. 4. Pursuant to Section 112 ofthe Act, 42 U.S.c. § 7412, EPA promulgated the National Emission Standards for Hazardous Air Pollutants for reinforced plastic composites production ("Subpart WWWW") on April21, 2003. See 68 Fed. Reg. 19402. These standards are intended to control hazardous air pollutant emissions from reinforced plastic composites production, and are codified at 40 C.F.R. Part 63, Subpart WWWW, §§ 63.5780

- 63.5935. 5. Section 112 ofthe Act prohibits persons fr9m operating a source in violation ofemissions standard, limitation or regulation promulgated thereunder. See 42 U.S.C. § 7412(f)(4) and 7412(i)(3). 6. Under 40 c.F.R. § 63.5785, owners or operators ofa reinforced plastic composites production facility that is located at a major source ofhazardous air pollutant ("HAP") emissions are subject to Subpart WWWW. 7. Under40 C.F.R. § 63.5785, "reinforced plastic composites production" is defined as "operations in which reinforced and/or nonreinforced plastic composites orplastic
2molding compounds are manufactured using thermostat resins and/or gel coats that contain styrene to produce plastic composites." 8. Under 40 c.F.R. § 63.5905(a) and Table 13 to SubpartWWWW, any existing source subject to SubpartWWWW must submit an Initial Notification pursuant to 40 C.F.R. § 63.9(b)(2). 9. Under 40 c.F.R. § 63.9(b)(2), an Initial Notification must contain: (1) the name and address ofthe owner or operator; (2) the address ofthe affected source; (3) an identification ofthe relevant standard or otherrequirement that is the basis ofthe notification and the source's compliance date; (4) a briefdescription ofthe source and an identification ofthe types ofemission points within the source and types ofHAPs emitted; and (5) a statement of**whet~er** the source is a major source or an area source. The Initial Notification is due no later than 120 calendar days after the effective date of the relevant standard. 10. Title V ofCAA, 42 U.S.c. §§ 7661-766lf, establishes a national operating permit program for sources ofair pollution. A permit issued under Title V is intended to be a single air permit for a facility, which consolidates all ofthe previously issued air permits for individual pieces ofequipment. 11. Section 502(a) ofthe Act provides that "it shall be unlawful for any person to violate any requirement ofa permit issued under [Title V]." 42 U.S.c. § 7661a(a). C. ALLEGED VIOLATIONS 12. At all times relevant to this CAFO, Respondent has been a corporation incorporated under the laws ofCalifornia, and has owned and operated a facility at 2851 Falcon Drive, Madera, California (the "Facility").

32- 13. Respondent is a "person," and the Facility is a "stationary source," as those terms are defined in Section 302(e) ofthe CAA, 42 U.S.c. § 7602(e). Further, Respondent is the "owner or operator" ofa "stationary source" as those terms are defined in Section 112(a)(I) ofthe Act, 42 U.S.c. § 7612(a)(1). 14. The Facility engages in the manufacture ofshower receptors, bathtubs, shower stalls, and otherbathroom fixtures. 15. The Facility engages in "reinforced plastic composites production" as that term is defined by SubpartWWWW at 40 C.F.R. § 63.5785. 16. The Facility is subject to Subpart WWWW. 17. EPA Region IX alleges that Florestone failed to file the Initial Notification for the Facility with EPA, as required by SubpartWWWW in violation of40 c.F.R. § 63.5905(a) and Table 13 to SubpartWWWW. 18. On or about December 20,2004, San Joaquin Valley Unified Air Pollution Control District ("SJVUAPCD" or the "District") issued a Title V permit (the "Permit") to the Facility. This Permit has since been superseded by a new Title V permit issued by the District on or about September 11,2008 (the "2008 Permit"). EPA Region IX does not allege any violations ofthe 2008 Permit. 19. The Permit included conditions governing operations ofthe four separate spray operations as follows: (1) white gel spray (Process #1

- Permit C-495-2-4); (2) colored gel spray (Process #2

- Permit C-495-3-4); (3) white chop spray (Process #1

- Permit C-495- 4-3); and (4) colored chop spray (Process #2

- Permit C-495-5-3). 20. Condition #12 ofthe Permit C-495-2-4 required the Facility tQ maintain daily records of the quantity ofall resins and catalysts used in Process #1 (white gel spray) at the Facility.

421. Condition #12 ofthe Permit C-495-3-4 required the Facilityto maintain daily records of the quantity ofall resins and catalysts used in Process #2 (colored gel spray) at the Facility. 22. Condition #12 ofthe Permit C-495-4-3 required the Facility to maintain daily records of the quantity ofall resins and catalysts used in Process #1 (white chop spray) at the Facility. 23. Condition #12 ofthe Permit C-495-5-3 required the Facilityto maintain daily records of the quantity ofall resins and catalysts used in Process #2 (colored chop spray) at the Facility. 24. EPA Region IX alleges that from or about December 2004 to April 25, 2008, Florestone failed to maintain adequate daily records ofthe quantity ofresins and catalysts used in Processes #1 (both white gel spray and white chop spray) and #2 (both colored gel spray and colored chop spray) at the Facility in violation ofCondition #12 ofPermits C-495-2- 4, C-495-3-4, C-495-4-3, C-495-5-3, and Section 502(a) ofthe Act. 25. Condition #9 ofthe Permit C-495-2-4limitedthe quantity ofresin used in Process #1 (white gel spray) to 22,192 gallons per year. 26. EPA Region IX alleges that Florestone used more than 22,192 gallons per year ofresin in Process #1 (white gel spray) from 2003 through 2006 in violation ofCondition #9 ofthe Permit 495-2-4 and section 502(a) ofthe Act. 27. Condition #9 ofthe Permit C-495-5-3 limited the quantity ofresin used in Process #2 (colored chop spray) to 79,309 gallons per year. 28. EPA Region IX alleges that Florestone used more than 79,309 gallons per year ofresin in Process #2 (colored chop spray) in 2005 and 2006 in violation ofCondition #9 ofthe


### 5Permit 495-5-3 and section 502(a) ofthe Act. 29. Condition #41 ofthe Permit C-495-0-1 required Florestone to submit a Title V annual compliance certification report that certifies compliance with the standards and terms in the Permit. 30. In or about 2007, Florestone filed its Title V annual compliance certification report for the Facility for calendar year 2006. Inits 2006 Title V annual certification report for the Facility, Florestone certified its compliance with all applicable requirements ofthe Permit. 31. EPARegion IX alleges that Florestone failed to submit an accurate Title V annual compliance certification report for 2006 in violation ofCondition #41 ofthe Permit C495-0-1 and section 502(a) ofthe Act. D. RESPONDENT'S ADMISSIONS 32. In accordance with 40 C.F.R. § 22. 18(b)(2) and for the purpose ofthis proceeding, Respondent (i) admits that EPA hasjurisdiction over the subject matter ofthis CAFO and
over Respondent; (ii) neither admits nor denies the specific factual allegations contained in Section I.C ofthis CAFO; (iii) consents to any and all conditions specified in this CAFO and to the assessment ofthe civil administrative penalty under Section I.E ofthis CAFO; (iv) waives any right to contest the allegations contained in this CAFO; and (v) waives the right to appeal the proposed final order contained in this CAFO. E. CIVIL ADMINISTRATIVE PENALTY 33. Respondent hereby consents to the assessment ofa civil penalty in the amount ofSIXTY THOUSAND DOLLARS ($60,000) as full, final, and complete settlement ofits liability for the civil claims alleged in Section I.C ofthis CAFO. Respondent shall pay this 6penalty plus interest according to the terms ofthis CAFO and Exhibit 1, attached hereto, which specifies an installment payment plan and interest schedule. At any time during the payment period specified inExhibit 1, however, Respondent may pay the full remaining balance ofthe civil penaltyrequired bythis Paragraph, in which case it shall be
no longer responsible for the continued payment ofinterest. Each payment shall be made bycashier's orcertified checkpayable to the "Treasurer, United States ofAmerica," and shall be sent bycertified mail, return receipt requested, to the following address: U.S. Environmental Protection Agency Fines and Penalties Cincinnati Finance Center P.O. Box979077 St. Louis, MO 63197-9000 Thepayment shallbeaccompaniedbyatransmittalletteridentifyingthecasename,thecase docket number, and this CAFO. Concurrent with delivery ofthe payment ofthe penalty, Respondent shall send a copy ofthe check and transmittal letter to the following addresses: Regional Hearing Clerk Office ofRegional Counsel (ORC-l) U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, CA 94105 Cyntia Steiner Air Division (AIR-5) U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, CA 94105 Payment ofthe above civil administrative penalty shall not be used byRespondent or any otherperson as a tax deduction from Respondent's federal, state, or local taxes. 34. If Respondent fails to make a required payment on or before the deadlines specified in
7Exhibit 1, then Respondent shall pay to EPA, upon written demand, a stipulated administrative penaltyofonehundreddollars ($100)perday, for eachofthefirst seven days that anypaymentis late, and two hundred fifty dollars ($250) perday, for eachdaypayment 

### • is late thereafter, upto a maximumof$2,500for eachmisseddeadline. Despitepayment of any stipulatedpenalty, Respondent shallremain obligatedto make all payments specifiedin Paragraph 33 andExhibit 1. In addition, failure to pay the civil administrative penalty may**~** lead to any or all ofthe following actions:

a. The debt being referred to a credit reporting agency, a collection agency, or to the DepartmentofJusticeforfiling ofacollection actionintheappropriateUnitedStates District Court. 40 C.F.R. §§ 13.13, 13.14, and 13.33. In any suchcollection action, the validity, amount, and appropriateness ofthe assessed penalty and ofthis CAFO shall not be subject to review. b. The debt being collected by administrative offset (i.e., the withholding of money payablebythe United States to, or held by the United States for, a person to satisfy the debt the person owes the Government), which includes, but is not limited to, referral to the Internal Revenue Service for offset against income tax refunds. 40 c.F.R. Part 13, Subparts C and H.
c. EPA may (i) suspend or revoke Respondent's licenses or other privileges; or (ii) suspend or disqualify Respondent from doing business with EPA or engaging in programs EPA sponsors or funds. 40 c.F.R. § 13.17. d. In accordance with the Debt Collection Act of 1982 and 40 c.F.R. Part 13, interest, penalties charges, and administrative costs will be assessed against the outstanding amount that Respondent owes to EPA for Respondent's failure to pay the civil 8administrativepenaltywithinthe deadline specifiedinparagraph 33. Interestwillbe assessed at an annual rate that is equal to the rate ofcurrent value offunds to the UnitedStatesTreasury(i.e., theTreasurytax andloanaccountrate) as prescribed and published by the Secretary ofthe Treasury in the Federal Register and the Treasury Fiscal Requirements Manual Bulletins. 40 C.F.R. § 13. 11(a)(l). Penalty charges will be assessed monthly at a rate of 6% per annum. 40 c.F.R. § 13. 11(c). Administrative costs for handling and collecting Respondent's overdue debt will be based on either actual or average cost incurred, and will include both direct and indirectcosts. 40c.F.R. § 13.11(b). In addition, ifthis matter is referred to another departmentoragency(e.g., theDepartmentofJustice,theInternalRevenue Service), that department or agency may assess its own administrative costs, in addition to EPA's administrativecosts, for handling and collectingRespondent's overdue debt. F. RETENTION OF RIGHTS 35. In accordance with 40 c.F.R. § 22. 18(c), this CAFO onlyresolves Respondent's liability for federal civil penalties for the violations and facts specifically alleged in the Complaint. Nothing in this CAFO is intended to or shall be construed to resolve (i) any civil liability for violations ofany provision ofany federal, state, orlocal law, statute, regulation, rule, ordinance, or permit not specifically alleged in the Complaint; or (ii) any criminal liability. EPA specificallyreserves any and all authorities, rights, and remedies available to it (including, but not limited to, injunctive or other equitable reliefor criminal sanctions) to address any violation ofthis CAFO or any violation not specifically alleged in the Complaint. 36. This CAFO does not exempt, relieve, modify, or affect in any way Respondent's duty to

9comply with all applicable federal, state, and local laws, regulations, rules, ordinances, and permits. G. ATTORNEYS' FEES AND COSTS 37. Each party shall bearits own attorneys' fees, costs, and disbursements incurred in this proceeding. H. EFFECTIVE DATE 38. In accordance with 40 C.F.R. §§ 22. 18(b)(3) and 22.31(b), this CAPO shall be effective
on the date that the final order contained in this CAFO, having been approved and issued byeitherthe Regional Judicial Officer or Regional Administrator, is filed. I. BINDING EFFECT 39. The undersigned representative ofComplainant and the undersigned representative of Respondent each certifies that he or she is fully authorized to enter into the terms and conditions ofthis CAFO and to bind the party he or she represents to this CAFO. 40. Theprovisionsofthis CAFO shall applyto andbebindinguponRespondent and its officers, directors, employees, agents, trustees, servants, authorized representatives, successors, and assigns.

10FOR FLORESTONE PRODUCTS CO., INC.: 

## 4**-I;;-o~** DATE Ron Flores President 2851 Falcon Drive Madera, California

FOR COMPLAINANT EPA REGION IX:

proDebomh Jordan Director Air Division United States Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105

11ll. FINALORDER EPA Region IX and Florestone Products Co., Inc., having entered into the foregoing Consent Agreement, IT IS HEREBY ORDERED that this CAFO (Docket No.

### CAA-09-2009-000~ be entered, and RespondentFlorestoneProducts Co., Inc., shallpayacivil administrativepenaltyin the amount of$60,000, plus interest, and otherwise comply with the terms set forth in the CAFO.



### OS/Of 

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## 9 DATE STEVEN JA WGIEL Regional Judicial Office United States Environmental Protection Agency, Region IX

12CERTIFICATE OF SERVICE I certify that the original ofthe foregoing Consent Agreement and Final Order was hand delivered to the Regional Hearing Clerk, United States Environmental Protection Agency

- Region 9, 75 Hawthorne Street, San Francisco, California 94105, and that a true and correct copy ofthe Consent Agreement and Final Order was placed in the United States Mail, certified mail, return receipt requested, addressed as follows: Mr. Ron Flores President Florestone Products Co., Inc. 2851 Falcon Drive Madera, California 93637 Certified Mail Number: 7007 149000004710 0594

Dated:

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# 9 Steven Armsey Regional Hearing CI rk Office ofRegional COll (ORC-l) US Environmental Protection Agency 75 Hawthorne Street San Francisco, CA 94105ATTACHMENT 1 INSTALLMENT PAYMENT AND INTEREST SCHEDULE DOCKET NO. CAA-09-2009-000_ Principal Days Interest Principal Installment Payment Payment $60,000 30 $0 $10,000 $10,000.00 $50,000 240 $986.30 $10,000 $10,986.30 $40,000 270 $887.67 $10,000 $10,887.67 $30,000 180 $443.84 $10,000 $10,443.84 $20,000 180 $295.89 $10,000 $10,295.89 $10,000 180 $147.95 $10,000 $10,147.95 Totals $2,761.65 $60,000 $62,761.65
ptInstallment: $10,000.00 (Due within 30 days ofthe effective date ofthe ConsentAgreement and Final Order) 2nd Installment: $10,986.30 (Due within 240 days after the deadline for the first installment payment) 3rd Installment: $10,887.67 (Due within 270 days after the deadline for the second installmentpayment) 4th Installment: $10,443.84 (Due within 180 days after the deadline for the third installment payment) 5th Installment: $10,295.89 (Due within 180 days afterthe deadline for the fourth installmentpayment) 6th Installment: $10,147.95 (Due within 180 days after the deadline for the fifth installmentpayment) Total Payment: $62,761.65

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