[StBernard] Formosa Plastics Agrees to Resolve Multiple Environmental Violations

[Westley Annis]

Formosa Plastics Agrees to Resolve Multiple Environmental Violations at
Plants in Texas and Louisiana 

(WASHINGTON - September 29, 2009)  Formosa Plastics Corp., Texas, and
Formosa Plastics Corp., Louisiana, will spend more than $10 million on
pollution controls to address air, water, and hazardous waste violations at
two petrochemical plants in Point Comfort, Texas, and Baton Rouge,
Louisiana, the Justice Department and the Environmental Protection Agency
(EPA) announced today. 

The companies also have agreed to pay a civil penalty of $2.8 million to
resolve violations under the Clean Air Act (CAA), Clean Water Act (CWA),
Resource Conservation and Recovery Act (RCRA) and Emergency Planning and
Community Right-to-Know Act (EPCRA). 

Under the agreement lodged in the U.S. District Court for the Southern
District of Texas, both the Texas and Louisiana facilities will implement a
comprehensive CAA enhanced leak detection and repair program, which goes
beyond regulatory requirements by requiring more stringent leak definitions,
more frequent monitoring and monitoring and repair of additional chemical
manufacturing equipment.  The leak prevention practices agreed to in the
settlement include an innovative program to replace valves with new "low
leak" valve technology, which will significantly reduce the likelihood of
future leaks of air pollutants.  The enhanced program also includes
requirements for periodic audits of the companies' leak prevention practices
to ensure compliance going forward. 

The enhanced leak detection and repair program will potentially reduce the
annual volatile organic compound (VOC) air emissions from the two Formosa
facilities by approximately 6,570,000 pounds per year of VOCs, including
hazardous air pollutants such as vinyl chloride. 

According to EPA, VOCs can contribute to respiratory disorders such as
asthma and reduced lung capacity. They can also cause damage to ecosystems
and reduce visibility. 

The Formosa facilities also will undertake an innovative enhanced vinyl
chloride leak detection and elimination program designed to improve the
companies' systems for identifying and addressing leaks of vinyl chloride.  

Most vinyl chloride is used to make polyvinyl chloride (PVC) plastic and
vinyl products.  Vinyl chloride is an odorless gas; it is an ozone precursor
and known carcinogen that is also linked to neurological disorders. 

In addition, the settlement requires both facilities to undertake analyses
to prevent future wastewater discharge violations.  The Formosa Texas
facility will undertake a comprehensive review of its compliance with
EPCRA's toxic release reporting requirements, and the Formosa Louisiana
facility will cease improper disposal of certain listed hazardous wastes. 

This will be the eighth settlement in a series of cases developed as part of
EPA's enforcement effort to ensure environmental compliance in the PVC
manufacturing industry.  Since the first PVC civil case was concluded in
2004, EPA has addressed noncompliance across media (air, water, waste) at 13
PVC manufacturing facilities, and will reduce vinyl chloride emissions by a
total of 152,000 pounds per year. 

"Today's settlement requires Formosa to institute a comprehensive enhanced
leak detection program designed to address serious violations of
environmental regulations," said John C. Cruden, Acting Assistant Attorney
General for the Justice Department's Environment and Natural Resources
Division.  "We are pleased that Formosa worked cooperatively with DOJ and
EPA to address the violations at issue and agreed to institute innovative
programs that will result in significant pollution reductions." 

"This case shows that when a company fails to control leaks of hazardous
pollutants, EPA will vigorously enforce the law," said EPA Acting Regional
Administrator Lawrence E. Starfield.  "Pollution controls put in place as a
result of this more than $10 million settlement will benefit the people
living nearby." 

The case was initiated as a result of inspections conducted by EPA's
National Enforcement Investigations Center at Formosa's Point Comfort and
Baton Rouge facilities.  During the inspections, EPA identified extensive
Clean Air Act leak detection and repair violations, including failing to
properly monitor leaking components, failing to include chemical
manufacturing equipment in its leak detection and repair program, and
failing to timely repair leaking equipment.  Inspectors also identified a
variety of hazardous waste violations at both facilities. 

In addition, the inspectors found that Formosa had violated wastewater
discharge limits under its CWA permits, and, at the Texas facility, had
failed to comply with the CAA benzene waste operations requirements and to
submit correct toxic release reporting information to EPA. 

The consent decree is subject to a 30-day comment period and final approval
by the court. A copy of the consent decree is available on the Justice
Department Web site at http://www.usdoj.gov/enrd/Consent_Decrees.htm
<http://www.usdoj.gov/enrd/Consent_Decrees.html>  

  

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