RECE WED
BEFORE THE ILLINOIS POLLUTION CONTROL
BOARD CLERK’S OFFICE
PEOPLE OF THE STATE OF ILLINOIS,
)
FEB
232005
STATE OF ILLINOIS
Complainant,
)
Pollution Control
Board
)
v.
)
PCB No. 04-178
)
(Enforcement
-
Air)
NED MANDICH d/b/a H.B.M.
)
ELECTROCHEMICAL,
)
)
Respondent.
)
NOTICE OF FILING
TO:
See Attached Service List.
PLEASE TAKE NOTICE that on February 23,
2005,
the People of the State of Illinois
filed with the Illinois Pollution Control Board a Stipulation and Proposal for Settlement and
Motion for Relief from Hearing Requirement, true and correct copies ofwhich are attached and
hereby served upon you.
Respectfully submitted,
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement!
Asbestos Litigation Division
BY:
~LC~5Lt7fl~
BRIDGET M. CARLSON
Assistant Attorney General
Environmental Bureau
188 W. Randolph Street, Suite 2001
Chicago, Illinois 60601
(312) 814-0608
THIS FILING IS SUBMITTED ON RECYCLED PAPER
SERVICE LIST
Mr. Ned Mandich
Mrs. Olga Mandiçh
HBM Electrochemical
2800 Bernice Road
Lansing, Illinois 60438
Ms. Bridget M. Carlson
Assistant Attorney General
Environmental Bureau
188 W. Randolph St., ~
Floor
Chicago, Illinois 60601
Ms. Maureen Wozniak
Assistant Counsel
Illinois Environmental Protection Agency
1021 North Grand Avenue East
P.O.Box 19276
Springfield, Illinois 62794-9276
Manager
Compliance and Enforcement Section
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
Kevin Mattision
Source Monitoring Unit
95llWestHarrison
Des Plaines, IL 60016
RECEIVED
CLERK’S OFFICE
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
FEB 232005
PEOPLE OF THE STATE OF ILLINOIS,
)
STATE OF ILLINOIS
Complainant,
))
Pollution Control Board
)
v.
)
PCB No. 04-178
)
(Enforcement
-
Air)
NED MANDICH dlb/a H.B.M.
)
ELECTROCHEMICAL,
)
)
Respondent.
)
MOTION FOR RELIEF FROM HEARING REQUIREMENT
NOW COMES Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA
MADIGAN, Attorney General ofthe State ofIllinois, and pursuant to Section 31(c)(2) ofthe
Illinois Environmental Protection Act (“Act”), 415 ILCS
5!3
1 (c)(2)(2002), moves that the
Illinois Pollution Control Board (“Board”) grant the parties in the above-captioned matter relief
from the hearing requirement imposed by Section 31(c)(1) ofthe Act, 415 ILCS
5!31(c)(1)(2002).
In support of this motion, Complainant states as follows:
1.
The Complaint in this matter alleges violations of Sections 9(b) and 9.1 (d)(l) of
the Act, 415 ILCS
5/9(b)
and
5!9.1(d)(l)(2002),
Section 201.143 ofthe Board regulations, 35 Ill.
Adm. Code 201.143, Sections 63.343(c)(1)(ii), 63.342(c)(1)(i) and 63.347(h) of40 CFR Part 63,
Subpart N and Conditions 1(b) and 11 ofH.B.M.’s Operating Permit number 84120020.
2.
Complainant is filing this Motion and a Stipulation and Proposal for Settlement
with the Board.
3.
The parties have reached agreement on all outstanding issues in this matter.
4.
This agreement is presented to the Board in a Stipulation and Proposal for
Settlement filed this same date.
1
•
5.
All parties agree that a hearing on the Stipulation and Proposal for Settlement is
not necessary, and respectfully request relief from such a hearing as allowed by Section ‘31(c)(2)
of the Act, 415 ILCS
5!31(c)(2)(2002).
WHEREFORE, Complainant, PEOPLE OF THE STATE OF ILLINOIS, hereby requests
that the Board grant this motion for relief from the hearing requirement set forth in Section
31(c)(1) ofthe Act, 415 ILCS
5/31(c)(1)(2002).
Respectfully submitted,
PEOPLE OF THE STATE OF ILLINOIS
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement!
Asbestos Litigation Division
BY:
~Lc~W1
~1~—
BRIDG~M. CARLSON
Assistant Attorney General
Environmental Bureau
188 W. Randolph St., 20th Floor
Chicago, Illinois 60601
(312) 814-0608
DATE: February 23, 2005
• THIS FILING IS SUBMIYFED ON RECYCLED PAPER
2
RECEIVED
BEFORE
THE ILLINOIS POLLUTION CONTROL BOAI~I9LERKSOFFICE
PEOPLE OF THE STATE OF ILLINOIS,
)
FEB
232005
)
STATE OF ILLINOIS
)
Pollution Control Board
Complainant,
)
)
v.
)
PCBO4-178
)
)
(Enforcement)
NED MANDICH d/b!a H.B.M.
)
ELECTROCHEMICAL,
)
)
Respondent.
)
)
)
STIPULATION AND PROPOSAL FOR SETTLEMENT
Complainant, PEOPLE OF THE STATE OF ILLINOIS, by LISA MADIGAN,
Attorney General ofthe State of Illinois, the Illinois Environmental Protection Agency
(“Illinois EPA”), and NED MANDICH dlb!a H.B.M. ELECTROCHEMICAL
(“Mandich”), have agreed to the making ofthis Stipulation and Proposal for Settlement
(“Stipulation”) and submit it to the Illinois Pollution Control Board (“Board”) for
approval. The parties agree that the statement of facts contained herein represents a fair
summary ofthe evidence and testimony which would be introduced by the parties if a
hearing were held. The parties further stipulate that this statement of facts is made and
agreed upon for purposes ofsettlement only and that neither the fact that a party has
entered into this Stipulation, nor any of the facts stipulated herein, shall be introduced
into evidence in any other proceeding regarding the claims asserted in the Complaint
except as otherwise provided herein. If the Board approves and enters this Stipulation,
Respondent agrees to be bound by the Stipulation and Board Order and not to cor~test
their validityin any subsequent proceeding to implement or enforce their terms.
I.
JURISDICTION
The Board has jurisdiction ofthe subject matter herein and of the parties
consenting hereto pursuant to the Illinois Environmental Protection Act (“Act”), 415
ILCS
5/1 etseq.
(2002).
II.
AUTHORIZATION
The undersigned representatives for each party certify that they are fully
authorized by the party whom they represent tO enter into the terms and conditions of this
Stipulation and to legally bind them to it.
III.
STATEMENT OF FACTS
A.
Parties
1.
On April 8, 2004, a Complaint was filed on behalfof the People of the
State of Illinois by Lisa Madigan, Attorney General ofthe State ofIllinois, on her own
motion and upon the request of the Illinois EPA, pursuant to Section 31 ofthe Act, 415
ILCS 5/31(2002), against the Respondent.
• 2.
The Illinois EPA is an administrative agency ofthe State ofIllinois,
created pursuant to Section 4 of the Act, 415 ILCS
5/4
(2002).
3.
Respondent Mandich d/b!a H.B.M. Electrochemical, at all times relevant
to the Complaint in this matter, was and is a resident of Homewood, Cook County,
Illinois.
B.
Site Description
1. From at least 1996, Mandich d!b/a H.B.M. Electrochemical has owned and/or
2
operated •a hard chrome electroplating facility that plates hydraulic cylinders and rods.
The parts are finished by grinding and polishing.
2. The facility, known as H.B.M. Electrochemical (“H.B.M.”), is located at 2800
Bernice Road, Lansing, Cook County, Illinois (“facility”).
3. The facility utilizes three (3) hard chrome plating tanks controlled by
composite mesh pad (“CMP”) scrubbers.
4. At all times relevant to the Complaint, Mandich d!b/a H.B.M. Electrochemical
has been and is in control ofand is responsible for the day-to-day operations ofthe
facility.
C.
Allegations of Non-Compliance
Complainant cont•ends that Respondent Mandich d/b/a H.B.M. Electrochemical
has violated the following provisions ofthe Act and Board regulations:
Count I:
•
Operating Air Emission Sources Without a Permit
—
Violation of Section 9(b) ofthe Act, 415 ILCS
•
5!9(b)(2002), and Section 201.143 of 35 Ill. Adm.
Code.
Count II:
Failure to Comply with National Emission
Standards for Decorative Chromium Electroplaters
—
Violation ofSection 9.1 (d)(1) ofthe Act, 415
ILCS 5!9.1(d)(1)(2002), and Sections
•
63.343(c)(1)(ii), 63.342(c)(1)(i) and 63.347(h) of40
CFR Part 63, Subpart N.
Count III:
Violation of Operating Permit Conditions
—
Violation of Section 9(b) ofthe Act, 415 ILCS
5!9(b)(2002),
and Conditions 1(b) and 11 of
H.B.M.’s Operating Permit number 84120020.
3
D.
Admission of Violations
The Respondent Mandich d/b/a H.B.M. Electrochemical admits to the violations
alleged in the Complaint filed in this matter and referenced within Section III.C herein.
E.
Compliance Activities’ to Date
1.
On March 17, 2003, the Illinois EPA issued Violation Notice A-2003-
00068 to H.B.M. for operating emission sources without the required State operating
permit, failing to maintain the pressure drop on the CMP scrubbers at the required level,
emitting excess hexavalent chromium and failing to submit required reports.
2.
H.B.M.’s Operating Permit number 84120020 expired on March 25, 2001
and was not renewed until September 10, 2003. From March
25,
2001 through
September 10, 2003, Mandich and H.B.M. operated hard chromium electroplating tanks
without the required Illinois EPA operating permit. H.B.M is currently operating under a
valid Operating Permit.
3.
On May 29, 2003, Mandich d!b!a H.B.M. Electrochemical conducted a
performance test ofthe control equipment at the facility.
4.
On July 21,2003, Mandich d!b!a H.B.M. Electrochemical submitted the
results ofthe performance test to the Illinois EPA. Upon review ofthe results, the Illinois
EPA determinedthat the results were acceptable and that Mandich d/b/a H.B.M.
Electrochemical had demonstrated compliance with the requirements of the National
Emission Standards for Hazardous Air Pollutants (“NESHAP”) for chromium
electroplating.
4
IV.
APPLICABILITY
This Stipulation shall apply to and’be binding on Complainant and Respondent
Mandich d/b/a H.B.M. Electrochemical.
V.
COMPLIANCE WITH OTHER LAWS AND REGULATIONS
This Stipulation in no way affects the responsibilities of the Respondent to
comply with any other federal, state or local laws or regulations including, but not limited
to, the Act and the Board regulations, 35 Ill. Adm. Code, Subtitles A through H.
VI.
IMPACT ON THE PUBLIC RESULTING FROM ALLEGED
NON-COMPLIANCE
Section 33(c) ofthe Act, 415 ILCS 5/33(c)(2002), provides as follows:
In making its orders and determinations, the Board shall take into
consideration all the facts and circumstances bearing upon the
reasonableness of the emissions, discharges, or deposits involved
including, but not limited to:
1.
the character and degree ofinjury to, or interference with the’
protection of the health, general welfare and physical property of
the people;
•
2.
the social and economic value of the pollution source;
3.
•
the suitability or unsuitability of the pollution source to the area in
which it is located, including the question ofpriority oflocation in
the area involved;
4.
the technical practicability and economic reasonableness of
reducing or eliminating the emissions, discharges or deposits
resulting from such pollution source; and
5.
any subsequent compliance.
In response to these factors, the parties state the following:
5
1.
Human health and the environment were threatened by the emission of
excess hexavalent chromium to the atmosphere and the Illinois EPA’s information
gathering responsibilities were hindered by Respondent’s violations.
2.
There is social and economic benefit to the facility.
3.
Operation of the facility was suitable for the area in which it occurred.
4.
Obtaining the required permits, compliance with all applicable provisions
of 40 CFR 63, Subpart N, timely submission of monitoring reports and conducting
emissions testing at the facility is both technically practicable and economically
reasonable.
5.
Mandich d/b!a H.B.M. Electrochemical has subsequently complied with
the Act, permit conditions, and federal and Board regulations relating to the violations
alleged in the Complaint.
VII.
CONSIDERATION OF SECTION 42(h) FACTORS
Section 42(h) ofthe Act, 415
ILCS
5/42(h)(2002), provides as follows:
In determining the appropriate civil penalty to be imposed under.
. .
this
Section, the Board is authorized to consider any matters ofrecord in~
mitigation or aggravation ofpenalty, including but not limited to the
following factors:
1.
the duration and gravity of the violation;
2.
the presence or absence of due diligence on the part ofthe
respondent in attempting to comply with requirements ofthis Act
and regulations thereunder or to secure relief therefrom as
provided by this Act;
3.
•
any economic benefits accrued by the respondent because ofdelay
•
in compliance with requirements, in which case the economic
benefits shall be determined by the lowest cost alternative for
achieving compliance;
6
4.
the amount ofmonetary penalty which will serve to deter further
violations by the respondent and to otherwise aid in enhancing
voluntary compliance with this Act by the respondent and other
persons similarly subject to the Act;
5.
the number, proximity in time, and gravity ofpreviously
adjudicated violations of this Act by the respondent;
6.
whether the respondent voluntarily self-disclosed, in accordance
with subsection i ofthis Section, the non-compliance to the
Agency; and
7.
•
whether the respondent has agreed to undertake a “supplemental
environmental project,” which means an environmentally
beneficial project that a respondent agrees to undertake in
settlement ofan enforcement action brought under this Act, but
which the respondent is not otherwise legally required to perform.
In response to these factors, the parties state as follows:
1.
Respondent operated the chromium electroplating tanks in a manner that
failed to demonstrate compliance with the NESHAP for a period offour and one-half
years. Further, for at least two years, the facility operated without the required permit.
The permitting requirements and the chrome NESHAP are of great programmatic
significance to the Illinois EPA.
2.
Respondent was diligent in returning to compliance with the chrome
NESHAP.
3.
The quantifiable economic benefit to Respondent Mandich d/b/a H.B.M.
Electrochemical ofdelaying compliance is One-Hundred Dollars ($100.00) in avoided air
pollution site fees to be deposited into the Illinois Environmental Permit and Inspection
Fund.
4.
Complainant has determined that a penalty ofFifteen Thousand dollars
•7
($15,000.00) will serve to deter further violations and aid in future voluntary compliance
with the Act and Board regulations.
5.
To Complainant’s knowledge, Respondent Mandich d/b!a H.B.M.
Electrochemical has no previously adjudicated violations ofthe Act.
6.
Self-disclosure is not an issue in this matter.
7.
This matter does not involve a Supplemental Environmental Project.
VIII.
TERMS
OF SETTLEMENT
A.
Penalty Payment
1.
The Respondent Mandich d!b/a
H.B.M. Electrochemical shall pay a civil
penalty ofFifteen Thousand One Hundred Dollars ($15,100.00) within seven (7) days
from the date the Board adopts and accepts this Stipulation. The penalty described in this
Stipulation shall be paid by certified check, money order or electronic funds transfer
payable to the Illinois EPA, and designated to the following:
a.
$15,000 shall be sent to the Illinois Environmental Protection Trust
•Fund. The certified check or money order shall be directed to the
following contact address:
Illinois Environmental Protection Trust Fund
Illinois Environmental Protection Agency
Fiscal Services Section
1021 North Grand Avenue East
P.O.Box 19276
Springfield, IL 62794-9276
b.
The remaining $100 shall be sent to the Illinois Environmental
Permit and Inspection Fund. The certified check or money order shall be
directed to the following contact address:
8
Illinois Environmental Permit and Inspection Fund
Illinois Environmental Protection Agency
Fiscal Services Section
1021 North Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
The name, case number, and Mandich’s Social Security Number, 270-58-6997, shall
appear on the face of the certified check or money order. A copy of the certified check,
money order or record of electronic funds transfer and any transmittal letter shall be sent
to:
Ms. Bridget M. Carlson
Assistant Attorney General
Environmental Bureau
188 W. Randolph St.,
20th
Floor
Chicago, Illinois 60601
2.
Pursuant to Section 42(g) of the Act, 415 ILCS 5/42(g)(2002), interest
shall accrue on any penalty amount not paid within the time period prescribed above at
the maximum rate allowable under Section 1003(a) ofthe Illinois Income Tax Act, 35
ILCS 5/1003 (2002). Interest on any unpaid penalty shall begin to accrue from the date
the payment is due and continue to accrue until the date payment is received by the
Illinois EPA. When partial payment(s) are made, such partial payment shall be first
applied to any interest on unpaid penalty then due and owing. All interest on penalties
owed shall be paid by certified check, money order or electronic funds transfer, payable
to the Illinois EPA, designated to the Illinois Environmental Protection Trust Fund and
delivered to the address and in the manner described above.
9
3.
For purposes ofpayment and collection, Respondent may be reached at
the following address:
Mr. Ned Mandich
President
H.B.M Electrochemical Company
1650 Ridge Road
Homewood, Illinois 60430
4.
In the event ofdefault ofthis Section VIII.A, the Complainant shall be
entitled to all available relief including, but not limited to, reasonable costs of collection
and reasonable attorney’s fees.
B.
Future Compliance
For a period of three (3) years after the Board’s order approving and entering this
Stipulation, Respondent Mandich d/b!a H.B.M. Electrochemical shall conduct annual
emissions testing to demonstrate the facility’s compliance with the chrome NESHAP.
Tests shall be conducted in accordance with 40 CFR 63, Subpart N and test protocols
shall be submitted to the Illinois EPA at least 60 days prior to the date oftesting for the
Illinois EPA’ s review and approval. Testing shall be conducted, and results reported to
the Illinois EPA, no later than May 31, 2005, May 31, 2006 and May 31, 2007.
C.
Future Use
Notwithstanding any other language in this Stipulation to the contrary, and in
consideration of the mutual promises and conditions contained in this Stipulation,
including the Release from Liability contained in Section VIII.E, below, the Respondent
hereby agrees that this Stipulation may be used against the Respondent in any subsequent
enforcement action or permit proceeding as proofofa past adjudication ofviolation of
the Act and the Board Regulations promulgated thereunder for all violations alleged in
10
the Complaint in this matter, for purposes of Section 39(a) and (i) and/or 42(h) of the Act,
415 ILCS 5/39(a), and (i) and/or 5/42(h)(2002). Further, Respondent agrees to waive any
rights to contest, in any subsequent enforcement action or permit proceeding, any
allegations that these alleged violations were adjudicated.
D.
Cease and Desist
Respondent Mandich d/b/a H.B.M. Electrochemical shall cease and desist from
future violations of the Act and Board Regulations, including but not limited to those
sections of the Act and Board Regulations that were the subject matter ofthe Complaint
as outlined in Section III.C. of this Stipulation.
E.
Release from Liability
In consideration ofthe Respondent’s payment ofthe $15,000.00 penalty and any
specified costs and accrued interest, completion of all activities required hereunder, to
Cease and Desist as contained in Section VIII.D and upon the Pollution Control Board’s
acceptance and approval ofthe terms ofthis Stipulation and Proposal for Settlement, the
Complainant releases, waives and discharges the Respondent from any further liability or
penalties for violations ofthe Act and Board Regulations that were the subject matter of
the Complaint herein. The release set forth above does not extend to any matters other
than those expressly specified in Complainant’s Complaint filed on April 8, 2004. The
Complainant reserves, and this Stipulation is without prejudice to, all rights ofthe State
ofIllinois against the Respondent Mandich d!b/a H.B.M. Electrochemical with respect to
all other matters, including but not limited to, the following:
11
a.
criminal liability;
b.
liability for future violation of state, federal, local, and common laws
and/or regulations;
c.
liability for natural resources damage arising out ofthe alleged violations;
and
d.
liability or claims based on the Respondent’s failure to satisfy the
requirements of this Stipulation.
Nothing in this Stipulation is intended as a waiver, discharge, release, or covenant
not to sue for any claim or cause of action, administrative or judicial, civil or criminal,
past or future, in law or in equity, which the State ofIllinois or the Illinois EPA may have
against any person, as defined by Section 3.315 ofthe Act, 415 ILCS 5/3.315 (2002), or
entity other than the Respondent.
F.
Right
of Entry
In addition to
any other authority, the Illinois EPA, its employees and
representatives, and the Attorney General, her agents and representatives, shall have the
right of entry into and upon the Respondent’s facility which is the subject ofthis
Stipulation, at all reasonable times for the purposes of carrying out inspections. In
conducting such inspections, the Illinois EPA, its employees and representatives, and the
Attorney General, her employees and representatives may take photographs, samples, and
collect information, as they deem necessary.
G.
Correspondence, Reports and Other Documents
Any and all correspondence, reports and any other documents required under this
12
Stipulation, except for payments pursuant to Sections VIII.A (“Penalty Payment”) shall
be submItted as follows:
As to the Complainant
Ms. Bridget M. Carlson
Assistant Attorney General
Environmental Bureau
188 W. Randolph St., 20th Floor
Chicago, Illinois 60601
Ms. Maureen Wozniak
Assistant Counsel
Illinois Environmental Protection Agency
•
1021 North Grand Avenue East
P.O. Box
.19276
Springfield, Illinois 62794-9276
•
•
Manager
Compliance and Enforcement Section
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
•
•
Kevin Mattision
•
Source Monitoring Unit
9511 West Harrison
Des Plaines, IL 60016
As to the Respondent
Mr. Ned Mandich
HBM Electrochemical
2800 Bernice Road
Lansing, Illinois 60438
H.
Modification of Stipulation
•
The parties may, by mutual written consent, agree to extend any compliance dates
or modify the terms ofthis Stipulation. A request for any modification shall be made in
writing and submitted to the contact persons identified in Section VIII.G. Any such
13
request shall be made by separate document, and shall not be submitted within an~other
report or submittal required by this Stipulation. Any such agreed modification shall be in
writing, signed by authorized representatives ofeach party, and then accompany a joint
motion to the Illinois Pollution Control Board seeking a modification ofthe prior order
approving and accepting the Stipulation to approve and accept the Stipulation as
amended.
I.
Enforcement ofStipulation
1.
Upon the entry ofthe Board’s Order approving and accepting this
Stipulation and Proposal for Settlement, that Order is a binding and enforceable order of
the Illinois Pollution Control Board and may be enforced as such through any and all
available means.
2.
The parties agree that, if the Board does not approve and accept this
Stipulation and Proposal for Settlement, then neither party is bound by the terms herein.
3.
It is the intent ofthe Complainant and Respondent that the provisions of
this Stipulation and Proposal for Settlement and any Board Order accepting and
approving such shall be severable, and should any provision be declared by a court of
competentjurisdiction to be inconsistent with state or federal law, and therefore
unenforceable, the remaining clauses shall remain in full force and effect.
WHEREFORE, Complainant and Respondent request that the Board adopt and
accept the foregoing Stipulation and Proposal for Settlement as written.
•
14
PEOPLE OF THE STATE OF ILLINOIS,
LISA MADIGAN
Attorney General
State of Illinois
MATTHEW J. DUNN, Chief
Environmental Enforcement!
Asbestos Litigation Division
BY: ________________~E:
~ ~
•
Environmental Bure
Assistant Attorney General
ILLINOIS ENVIRONMENTAL
PROTECTION
AGENCY
BY: ________________
DATE:
/ ~
J SEP~B. SVOBODA
ChiefLegal Counsel
NED MA1\~DICHdlb/a H.B.M.
ELECTROCHEMICAL
BY: ____________________
DATE:
Name:
Title:
15
CERTIFICATE OF SERVICE
I, BRIDGET M.
CARLSON, an Assistant Attorney General, certify that on the 23’~day
ofFebruary 2005, I caused to be served by First Class Mail the foregoing Stipulation and
Proposal for Settlement and Motion for Relief from Hearing Requirement to the parties named
on the attached Service List, by depositing same in postage prepaid envelopes with the United
States Postal Service located at 100 West Randolph Street, Chicago, Illinois 60601.
‘11/vt
BRIDG~JfM. CARLSON
