Respondent owns and operates a metal parts heat treatment operation in Michigan (the Facility) that maintains a maximum inventory of 60,000 pounds of the regulated toxic substance, anhydrous ammonia, which exceeds the threshold quantity of 10,000 pounds of anhydrous ammonia as set forth in Table 1 at 40 C.F.R. § 68.130. Respondent uses anhydrous ammonia in its heat treatment process. The covered process at the Facility is subject to the OSHA process safety management standard because it contains greater than the threshold quantity of 10,000 pounds of anhydrous ammonia, that is a highly hazardous chemical as defined in 29 C.F.R. § 1910.119(b), (a), and Appendix A.
Respondent’s metal parts heat treatment operation process at the Facility does not meet the Program 1 requirements at 40 C.F.R. § 68.10(g) because its worst-case release of anhydrous ammonia reaches at least one public receptor, as defined in 40 C.F.R. § 68.3. The Facility is subject to Program 3 because the covered process is subject to the OSHA process safety management standard, 29 C.F.R. § 1910.119, in accordance with 40 C.F.R. § 68.10(i), and does not meet the Program 1 eligibility requirements at 40 C.F.R. § 68.10(g).
EPA inspectors completed an announced CAA 112(r) inspection on June 15 through June 16, 2022 (June 2022 Inspection).
Respondent’s RMP was due on July 24, 2020, five years after the RMP it previously submitted on July 24, 2015. The Facility did not submit its RMP until June 20, 2022, 696 days late.
On January 23, 2023, EPA issued a Finding of Violation (FOV) to Respondent. On February 23, 2023, EPA and Respondent met to discuss the allegations. The information below represents EPA’s current understanding of the alleged violations at issue.
Process Hazard Analysis (Count 1)
Respondent failed to include in its PHA an evaluation of the potential failures of engineering and administrative controls applicable to the hazard, specifically the potential failure of the anhydrous-ammonia sensor, as the Facility had only one anhydrous ammonia sensor at the time of the June 2022 Inspection.
Respondent’s PHA failed to evaluate stationary source siting.
Respondent’s failure to address engineering and administrative controls applicable to the hazards and to evaluate stationary source siting in the PHA is a violation of 40 C.F.R. §§ 68.67(c)(3) and (5).
Mechanical Integrity (Count 2)
Respondent failed to periodically inspect the Facility pipes that are a part of the covered process in a way that follows recognized and generally accepted good engineering practice.
Respondent’s failure to periodically inspect the Facility pipes is a violation of 40 C.F.R. §§ 68.73(d)(1)-(3).
Risk Management Plan (Count 3)
Respondent failed to submit an updated RMP five years after its previously submitted RMP, that was due on July 24, 2020.
56. Respondent’s failure to submit an updated RMP five years after its previously submitted RMP is a violation of 40 C.F.R. §§ 68.190(a) and (b)(1).
Civil Penalty
Based on analysis of the factors specified in Section 113(e) of the CAA, 42 U.S.C. § 7413(e), the facts of this case, cooperation, a prompt return to compliance, and agreement to perform a supplemental environmental project, Complainant has determined that an appropriate civil penalty to settle this action is $12,300.
In response to the alleged violations of 40 C.F.R. Part 68 and in settlement of this matter, although not required by 40 C.F.R. Part 68 or any other federal, state, or local law, Respondent agrees to complete three supplemental environmental projects (SEPs), as described below in paragraph 65(a), (b), and (c).
These SEPs are consistent with applicable U.S. EPA policy, specifically the “2015 Update to the 1998 U.S. Environmental Protection Agency Supplemental Environmental Projects Policy,” dated March 10, 2015. These SEPs advance at least one of the objectives of 40 C.F.R. Part 68 by preventing and reducing the risk of an ammonia release and by enhancing the ability of Facility employees and emergency responders to respond to a release of ammonia at the Facility. These SEPs are not inconsistent with any provision 40 C.F.R. Part 68. These SEPs relate to the alleged violations, and are designed to reduce:
a. The adverse impact to public health and the environment to which the alleged violations contribute, specifically by assisting local emergency responders and Facility personnel to locate and remediate an ammonia or nitrogen release, reducing the impact of such a release on the surrounding community, which has potential environmental-justice concerns, and on the environment; and
b. The overall risk to public health and the environment potentially affected by the alleged violations by enhancing the Facility’s ability to identify and mitigate ammonia and nitrogen leak risks and actual ammonia and nitrogen leaks.
Respondent shall complete three SEPs, consisting of the projects below:
a. SEP #1: Installation of Ammonia and Oxygen Sensors
i. SEP # 1 consists of Respondent installing six (6) permanent ammonia sensors and three (3) permanent oxygen sensors: two (2) ammonia sensors and one (1) oxygen sensor will be located around and proximate to the main ammonia tank, based on prevailing wind direction, and the other four (4) ammonia sensors and two (2) oxygen sensors will be located throughout the Facility. Each sensor will have text and email notification capabilities set to alert following the detection of ammonia or oxygen. The installation of these additional sensors will enhance the Facility’s ability to detect ammonia and nitrogen leaks.
ii. Respondent agrees to spend at least $34,000 on implementing SEP #1. Respondent shall include documentation of the expenditures made in connection with SEP #1 as part of the SEP Completion Report. This $34,000 expenditure may not include any amount expended to update the Facility’s current network. If Respondent’s implementation of SEP #1 as described in paragraph 65(a)(i) does not expend the full amount set forth in this paragraph, and if U.S. EPA determines that the amount remaining reasonably could be applied toward installing more permanent ammonia or oxygen sensors along the ammonia process line, Respondent will expend the full amount toward the purchase and installation of more permanent ammonia or oxygen sensors, as identified above in paragraph 65(a)(i).
iii. Respondent shall complete SEP #1 by April 30, 2024.
iv. Respondent must continuously use and operate the equipment installed in SEP #1 for five (5) years following its installation.
b. SEP #2: Installation of 5MP IP Turret Dome Cameras
i. SEP #2 consists of Respondent installing fifteen (15) 5MP IP turret dome cameras that can be remotely accessed to provide visuals of each of the furnace control panels, which will enhance the Facility’s ability to complete daily monitoring of the ammonia process line and provide emergency-response personnel with remote visual access during emergency situations.
ii. Respondent agrees to spend at least $17,000 on implementing SEP #2. Respondent shall include documentation of the expenditures made in connection with SEP #2 as part of the SEP Completion Report. This $17,000 expenditure may not include any amount expended to update the Facility’s current network. If Respondent’s implementation of SEP #2 as described in paragraph 65(b)(i) does not expend the full amount set forth in this paragraph, and if U.S. EPA determines that the amount remaining reasonably could be applied towards installing more 5MP IP turret dome cameras, Respondent will expend the full amount toward the purchase and installation of more cameras, as identified above in paragraph 65(b)(i).
iii. Respondent shall complete SEP #2 by January 31, 2024.
iv. Respondent must continuously use and operate the equipment installed in SEP #2 for five (5) years following its installation.
c. SEP #3: Purchase and Use of Infrared (IR) Camera
i. SEP #3 consists of Respondent purchasing and using an IR camera, with the ability to sense thermal differences and increase the Facility’s capabilities of detecting ammonia and nitrogen leaks, to be used during routine mechanical integrity inspections and proactive leak monitoring throughout the Facility.
ii. Respondent agrees to spend at least $7,500 on implementing SEP #3. Respondent shall include documentation of the expenditures made in connection with SEP #3 as part of the SEP Completion Report. If Respondent’s implementation of the SEP as described in paragraph 65(c)(i) does not expend the full amount set forth in this paragraph, and if U.S. EPA determines that the amount remaining reasonably could be applied towards expanding SEP #3, Respondent will expend the full amount toward the purchase of a second IR camera, as identified above in paragraph 65(c)(i).
iii. Respondent shall complete SEP #3 by October 31, 2023.
iv. Respondent must continuously use and operate the equipment purchased in SEP #3 for five (5) years following the date Respondent receives the equipment.
Respondent certifies the truth and accuracy of each of the following:
a. That all cost information provided to U.S. EPA in connection with U.S. EPA’s approval of the SEP is complete and accurate, that it in good faith estimates that the cost to implement SEP #1 is about $35,000; SEP #2 is about $18,000; and SEP #3 is about $8,000, for a total expenditure of about $61,000;
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