Document ID: EPA-HQ-OECA-2008-0803-0001
Agency: epa
Document Type: Notice
Title: Clean Water Act Class II; Proposed Administrative Settlement, Penalty Assessment, etc: HSBC USA Inc. and HSBC Finance Corp.
Posted Date: 2009-09-03T04:00Z

[Federal Register: September 3, 2009 (Volume 74, Number 170)]
[Notices]               
[Page 45637-45639]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03se09-56]                         

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ENVIRONMENTAL PROTECTION AGENCY

[Docket ID Number EPA-HQ-OECA-2008-0803; FRL-8952-6]

 
Clean Water Act Class II: Proposed Administrative Settlement, 
Penalty Assessment and Opportunity To Comment Regarding HSBC USA Inc. 
and HSBC Finance Corporation

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA has entered into a Consent Agreement with HSBC Finance 
Corporation and HSBC USA Inc. (HSBC or Respondent) to resolve 
violations of the Clean Water Act (CWA), the Clean Air Act (CAA) and 
requirements adopted as part of a State Implementation Plan (SIP) 
pursuant to the CAA, and the Emergency Planning and Community Right-to-
Know Act (EPCRA), and their implementing regulations.
    The Administrator is hereby providing public notice of this Consent 
Agreement and proposed Final Order, and providing an opportunity for 
interested persons to comment on the CWA portion of this Consent 
Agreement, in accordance with CWA section 311(j), 33 U.S.C. 1321(j). 
Additionally, notice is being provided on the CAA and EPCRA portions of 
this Consent Agreement.

DATES: Comments are due on or before October 5, 2009.

ADDRESSES: Comments may be submitted electronically, by mail, or 
through hand delivery/courier. Follow the detailed instructions as 
provided in Section I.B of the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Beth Cavalier, Special Litigation and 
Projects Division (2248-A), U.S. Environmental Protection Agency, 1200 
Pennsylvania Avenue, NW., Washington, DC 20460; telephone (202) 564-
3271; fax: (202) 564-0010; e-mail: cavalier.beth@epa.gov.

SUPPLEMENTARY INFORMATION:

I. General Information

A. How Can I Get Copies Of This Document and Other Related Information?

    1. Docket. EPA has established an official public docket for this 
action under Docket ID No. EPA-HQ-OECA-2008-0803.
    The official public docket consists of the Consent Agreement, 
proposed Final Order, and any public comments received. Although a part 
of the official docket, the public docket does not include Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. The official public docket is the collection of 
materials that is available for public viewing at the Enforcement and 
Compliance Docket Information Center (ECDIC) in the EPA Docket Center, 
(EPA/DC) EPA West, Room B102, 1301 Constitution Ave., NW., Washington, 
DC. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 
4:30 p.m., Monday through Friday, excluding legal holidays. The 
telephone number for the Public Reading Room is (202) 566-1744, and the 
telephone number for the ECDIC is (202) 566-1752. A reasonable fee may 
be charged by EPA for copying docket materials.
    2. Electronic Access. You may access this Federal Register document 
electronically through the EPA Internet under the ``Federal Register'' 
listings at http://www.epa.gov/fedrgstr/.
    An electronic version of the public docket is available through 
EPA's electronic public docket and comment system (EPA Dockets). You 
may use EPA Dockets at http://www.regulations.gov/ to submit or view 
public comments, access the index listing of the contents of the 
official public docket, and to access those documents in the public 
docket that are available electronically. Once in the system, select 
``search,'' then key in Docket ID No. EPA-HQ-OECA-2008-0803.
    Certain types of information will not be placed in the EPA Dockets. 
Information claimed as CBI and other information whose disclosure is 
restricted by statute, which is not included in the official public 
docket, will not be available for public viewing in EPA's electronic 
public docket. EPA's policy is that copyrighted material will not be 
placed in EPA's electronic public docket but will be available only in 
printed, paper form in the official public

[[Page 45638]]

docket. To the extent feasible, publicly available docket materials 
will be made available in EPA's electronic public docket. When a 
document is selected from the index list in EPA Dockets, the system 
will identify whether the document is available for viewing in EPA's 
electronic public docket. Although not all docket materials may be 
available electronically, you may still access any of the publicly 
available docket materials through the docket facility identified in 
Section I.A.1.
    For public commentors, it is important to note that EPA's policy is 
that public comments, whether submitted electronically or in paper, 
will be made available for public viewing in EPA's electronic public 
docket as EPA receives them and without change, unless the comment 
contains copyrighted material, CBI, or other information whose 
disclosure is restricted by statute. When EPA identifies a comment 
containing copyrighted material, EPA will provide a reference to that 
material in the version of the comment that is placed in EPA's 
electronic public docket. The entire printed comment, including the 
copyrighted material, will be available in the public docket.
    Public comments submitted on computer disks that are mailed or 
delivered to the docket will be transferred to EPA's electronic public 
docket. Public comments that are mailed or delivered to the Docket will 
be scanned and placed in EPA's electronic public docket. Where 
practical, physical objects will be photographed, and the photograph 
will be placed in EPA's electronic public docket along with a brief 
description written by the docket staff.

B. How and to Whom Do I Submit Comments?

    You may submit comments electronically, by mail, or through hand 
delivery/courier. To ensure proper receipt by EPA, identify the 
appropriate docket identification number in the subject line on the 
first page of your comment. Please ensure that your comments are 
submitted within the specified comment period. Comments received after 
the close of the comment period will be marked ``late.'' EPA is not 
required to consider these late comments.
    1. Electronically. If you submit an electronic comment as 
prescribed below, EPA recommends that you include your name, mailing 
address, and an e-mail address or other contact information in the body 
of your comment. Also include this contact information on the outside 
of any disk or CD ROM you submit, and in any cover letter accompanying 
the disk or CD ROM. This ensures that you can be identified as the 
submitter of the comment and allows EPA to contact you in case EPA 
cannot read your comment due to technical difficulties or needs further 
information on the substance of your comment. EPA's policy is that EPA 
will not edit your comment, and any identifying or contact information 
provided in the body of a comment will be included as part of the 
comment that is placed in the official public docket, and made 
available in EPA's electronic public docket. If EPA cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment.
    i. EPA Dockets. Your use of EPA's electronic public docket to 
submit comments to EPA electronically is EPA's preferred method for 
receiving comments. Go directly to EPA Dockets at http://
www.regulations.gov/, and follow the online instructions for submitting 
comments. Once in the system, select ``search,'' and then key in Docket 
ID No. EPA-HQ-OECA-2008-0803. The system is an ``anonymous access'' 
system, which means EPA will not know your identity, e-mail address, or 
other contact information unless you provide it in the body of your 
comment.
    ii. E-mail. Comments may be sent by electronic mail (e-mail) to 
docket.oeca@epa.gov, Attention Docket ID No. EPA-HQ-OECA-2008-0803. In 
contrast to EPA's electronic public docket, EPA's e-mail system is not 
an ``anonymous access'' system. If you send an e-mail comment directly 
to the Docket without going through EPA's electronic public docket, 
EPA's e-mail system automatically captures your e-mail address. E-mail 
addresses that are automatically captured by EPA's e-mail system are 
included as part of the comment that is placed in the official public 
docket, and made available in EPA's electronic public docket.
    iii. Disk or CD-ROM. You may submit comments on a disk or CD-ROM 
that you mail to the mailing address identified in Section I.A.1. These 
electronic submissions will be accepted in WordPerfect or ASCII file 
format. Avoid the use of special characters and any form of encryption.
    2. By Mail. Send your comments to: Enforcement and Compliance 
Docket Information Center, Environmental Protection Agency, Mailcode: 
2201T, 1200 Pennsylvania Ave., NW., Washington, DC, 20460, Attention 
Docket ID No. EPA-HQ-OECA-2008-0803.
    3. By Hand Delivery or Courier. Deliver your comments to the 
address provided in Section I.A.1., Attention Docket ID No. EPA-HQ-
OECA-2008-0803. Such deliveries are only accepted during the Docket's 
normal hours of operation as identified in Section I.A.1.

C. How Should I Submit CBI to the Agency?

    Do not submit information that you consider to be CBI 
electronically through EPA's electronic public docket or by e-mail. You 
may claim information that you submit to EPA as CBI by marking any part 
or all of that information as CBI (if you submit CBI on disk or CD-ROM, 
mark the outside of the disk or CD-ROM as CBI and then identify 
electronically within the disk or CD-ROM the specific information that 
is CBI). Information so marked will not be disclosed except in 
accordance with procedures set forth in 40 CFR Part 2.
    In addition to one complete version of the comment that includes 
any information claimed as CBI, a copy of the comment that does not 
contain the information claimed as CBI must be submitted for inclusion 
in the public docket and EPA's electronic public docket. If you submit 
the copy that does not contain CBI on disk or CD-ROM, mark the outside 
of the disk or CD-ROM clearly that it does not contain CBI. Information 
not marked as CBI will be included in the public docket and EPA's 
electronic public docket without prior notice. If you have any 
questions about CBI or the procedures for claiming CBI, please consult 
the person identified in the FOR FURTHER INFORMATION CONTACT section.

II. Background

    Respondent is HSBC Finance Corporation, a financial services 
organization located at 26525 N. Riverwoods Blvd, Mettawa, Illinois 
60045, and incorporated in the state of Delaware. Respondent also 
includes HSBC USA Inc., a banking business located at 452 Fifth Street, 
New York, New York 10018, and incorporated in the state of Maryland. 
The HSBC facilities that underwent audits included office buildings and 
data processing centers.
    On November 29, 2007, Respondent entered into a Compliance Audit 
Agreement with EPA, in which Respondent agreed to conduct a systematic, 
documented, periodic and objective review of its compliance with 
applicable provisions of the CWA, the CAA, and EPCRA. Respondent 
further agreed to submit progress reports detailing the status of the 
compliance audit, specific facilities reviewed, and

[[Page 45639]]

detailed information setting forth violations discovered and corrective 
actions taken. Further, Respondent agreed, in entering into the 
Compliance Audit Agreement, to specific civil penalties for certain 
violations of the CWA, the CAA, and EPCRA. As agreed upon with EPA, 
Respondent submitted periodic progress reports and submitted a final 
audit report to EPA on February 28, 2008, and an addendum to the final 
audit report to EPA on May 1, 2008.
    Specifically, Respondent disclosed that it failed to prepare and 
implement a Spill Prevention, Control, and Countermeasure (SPCC) plan 
and/or failed to have adequate secondary containment in violation of 
CWA section 311(j), 33 U.S.C. 1321(j), and 40 CFR Part 112 for eighteen 
facilities located in the following states: California, Delaware, 
Florida, Illinois, Kentucky, New Jersey, New York, Nevada, Oregon, 
South Carolina, and Texas. EPA, as authorized by CWA section 311(b)(6), 
33 U.S.C. 1321(b)(6), has assessed a civil penalty for these 
violations.
    Respondent disclosed that it failed to comply with CAA section 110, 
42 U.S.C. 7410, and requirements adopted as part of State 
Implementation Plans (SIPs) for eight facilities located in the 
following states: California, Illinois, Maryland, New Jersey, Texas, 
and Virginia. EPA, as authorized by CAA section 113, 42 U.S.C. 7413, 
has assessed a civil penalty for these violations.
    Respondent disclosed that it failed to comply with CAA section 608, 
42 U.S.C. 7671g, when it failed to keep servicing records documenting 
the date and type of service, as well as the quantity of refrigerant 
purchased and added, for appliances containing greater than fifty 
pounds of refrigerant located at four facilities located in the 
following states: California, Illinois, and New York. EPA, as 
authorized by CAA section 113, 42 U.S.C. 7413, has assessed a civil 
penalty for these violations.
    Respondent disclosed that it failed to comply with EPCRA section 
302, 42 U.S.C. 11002, and the regulations found at 40 CFR 355.30, when 
it failed to notify the State Emergency Response Committee (SERC) for 
twenty-eight facilities located in the following states: California, 
Delaware, Florida, Illinois, Indiana, New Jersey, New York, Nevada, 
Oregon, South Carolina, South Dakota, Texas, and Virginia.
    Respondent disclosed that it failed to comply with EPCRA section 
303, 42 U.S.C. 11003, and the regulations found at 40 CFR 355.30, when 
it failed to designate a facility emergency coordinator and notify the 
Local Emergency Planning Committee (LEPC) at twenty-eight facilities in 
the following states: California, Delaware, Florida, Illinois, Indiana, 
New Jersey, New York, Nevada, Oregon, South Carolina, South Dakota, 
Texas, and Virginia.
    Respondent disclosed that it failed to comply with EPCRA section 
311, 42 U.S.C. 11021, and the regulations found at 40 CFR Part 370, 
when it failed to prepare and submit a Material Safety Data Sheet 
(MSDS) for a hazardous chemical(s) and extremely hazardous chemical(s) 
at thirty-one (31) facilities located in the following states: 
California, Delaware, Florida, Illinois, Indiana, Kentucky, New Jersey, 
New York, Nevada, Oregon, South Carolina, South Dakota, Texas, and 
Virginia. EPA, as authorized by EPCRA section 325, 42 U.S.C. 11045, has 
assessed a civil penalty for these violations.
    Respondent disclosed that it failed to comply with EPCRA section 
312, 42 U.S.C. 11022, and the regulations found at 40 CFR Part 370, 
when it failed to prepare and submit emergency and chemical inventory 
forms to the LEPC, SERC, and the fire department at thirty-two (32) 
facilities located in the following states: California, Delaware, 
Florida, Illinois, Indiana, Kentucky, New Jersey, New York, Nevada, 
Oregon, South Carolina, South Dakota, Texas, and Virginia. EPA, as 
authorized by EPCRA section 325, 42 U.S.C. 11045, has assessed a civil 
penalty for these violations.
    EPA determined that Respondent satisfactorily completed its audit 
and has met all conditions of the Compliance Audit Agreement. EPA has 
proposed a settlement penalty amount of thirty-six thousand and eighty-
three dollars ($36,083). This amount is based on the penalty amounts 
agreed upon in the Compliance Audit Agreement for certain violations 
and reflects consideration of potential economic benefit gained by 
Respondent, attributable to its delayed compliance with the CAA, CWA, 
and EPCRA regulations, and the potential for harm that could have 
resulted from the violations.
    The total civil penalty assessed for settlement purposes is thirty-
six thousand and eighty-three dollars ($36,083). Respondent has agreed 
to pay this amount. EPA and Respondent negotiated and signed an 
administrative consent agreement, following the Consolidated Rules of 
Practice, 40 CFR 22.13(b), on May 8, 2009, (In the Matter of: HSBC USA 
Inc. and HSBC Finance Corporation, Docket Nos. CAA-HQ-2008-8004, CWA-
HQ-2008-8004, and EPCRA-HQ-2008-8004). This consent agreement is 
subject to public notice and comment under CWA section 311(b)(6), 33 
U.S.C. 1321(b)(6). The full consent agreement is available for public 
review and comment at http://www.regulations.gov/, Docket ID No. EPA-
HQ-OECA-2008-0803.
    Under CWA section 311(b)(6)(A), 33 U.S.C. 1321(b)(6)(A), any owner, 
operator, or person in charge of a vessel, onshore facility, or 
offshore facility from which oil is discharged in violation of CWA 
section 311(b)(3), 33 U.S.C. 1321(b)(3), or who fails or refuses to 
comply with any regulations that have been issued under CWA section 
311(j), 33 U.S.C. 1321(j), may be assessed an administrative civil 
penalty of up to $177,500 by EPA. Class II proceedings under CWA 
section 311(b)(6), 33 U.S.C. 1321(b)(6), are conducted in accordance 
with 40 CFR Part 22.
    Under CAA section 113, 42 U.S.C. 7413, the Administrator may issue 
an administrative penalty order to any person who has violated or is in 
violation of any requirement or prohibition of an applicable 
implementation plan or permit. Proceedings under CAA section 113, 42 
U.S.C. 7413, are conducted in accordance with 40 CFR Part 22.
    Under EPCRA section 325, 42 U.S.C. 11045, the Administrator may 
issue an administrative order assessing a civil penalty against any 
person who has violated applicable emergency planning or right-to-know 
requirements, or any other requirement of EPCRA. Proceedings under 
EPCRA section 325, 42 U.S.C 11045, are conducted in accordance with 40 
CFR Part 22.
    The procedures by which the public may comment on a proposed Class 
II penalty order, or participate in a CWA Class II penalty proceeding, 
are set forth in 40 CFR 22.45. The deadline for submitting public 
comment on this proposed final order is October 5, 2009. All comments 
will be transferred to the Environmental Appeals Board (EAB) of EPA for 
consideration. The powers and duties of the EAB are outlined in 40 CFR 
22.4(a).
    Pursuant to CWA section 311(b)(6)(C), 33 U.S.C. 1321(b)(6)(C), EPA 
will not issue an order in this proceeding prior to the close of the 
public comment period.

    Dated: August 27, 2009.
Bernadette Rappold,
Director, Special Litigation and Projects Division, Office of 
Enforcement and Compliance Assurance.
[FR Doc. E9-21289 Filed 9-2-09; 8:45 am]

BILLING CODE 6560-50-P