RECE~VED

CLERK’S OFFICE

BEFORE

THE

ILLINOIS

POLLUTION

CONTROL

BOARD

FEB 112004

PEOPLE OF THE STATE OF ILLINOIS,

by LISA MADIGAN, Attorney

)

STATEOFILLINOIS

General of the State of Illinois,

)

P01

tI0n Contr0I Board

Complainant,

PCB No.

03-5

v.

)

(Enforcement

-

Air)

STAR ELECTRONICS,

INC.,

an

Illinois corporation,

Respondent.

NOTICE OF FILING

TO:

See

Attached Service List

PLEASE TAKE

NOTICE that on February 11,

2004,

we filed with

the Illinois Pollution Control Board a

“Stipulation and Proposal

for Settlement” and “Relief from the

Hearing Requirement”,

a true

and correct copy of which is attached and hereby served upon you.

Respectfully submitted,

LISA

MPJJIGAN

Attorney General

State of Illinois

BY:

________

MITCHELL L. COHEN

Assistant Attorney General

Environmental Bureau

188 W. Randolph St.,

20th Floor

Chicago,

Illinois

60601

(312)

814-5282

---

SERVICE LIST

Bradley

P.

Halloran

Hea±’ingOfficer

Illinois Pollution Control Board

James R. Thompson Center,

Suite 11-500

100 W. Randolph

Chicago,

IL 60601

Bruno W.

Tabis Jr.

Michael Best,

& Friedrich LLC

401 N.

Michigan Avenue

Suite

1900

Chicago,

Illinois 60611

---

BEFORE

THE

ILLINOIS

POLLUTION CONTROL

BOI~ECE~V~D

CLERK’S OFFICE

PEOPLE OF THE STATE OF ILLINOIS,

by LISA MAJJIGAN, Attorney

)

FEB

112004

General of the State of Illinois,

STATEOFtLLINOIS

Pollution Control Board

Complainant,

PCB No.

03-5

v.

)

(Enforcement

-

Air)

STAR ELECTRONICS,

INC.,

an

Illinois corporation,

Respondent.

MOTION FOR RELIEF FROM HEARING REQUIREMENT

NOW COMES Complainant, PEOPLE OF THE STATE OF ILLINOIS, by

LISA

MADIGAN,

Attorney General

of the State of Illinois,

and

pursuant to Section 31(c)

(2)

of the Illinois Environmental

Protection Act

(‘TAct”)

,

415 ILCS 5/31(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)

of the Act,

415 ILCS 5/31(c) (1)

(2002)

.

In support of this motion, Complainant states as

follows:

1.

The Complaint

in this matter alleges violation of the

Sections

9(a)

of the Act,

415 ILCS 5/9(a) (2002)

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.

---

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)

of the Act,

415 ILCS 5/31(c) (1)

(2002)

Respectfully submitted,

PEOPLE OF THE STATE OF ILLINOIS

LISA

MA.DIGAN

Attorney General

State of Illinois

BY:

~

~

MITCHELL L.

COHEN

Assistant Attorney General

Environmental Bureau

188 W. Randolph St.,

20th Floor

Chicago,

Illinois

60601

(312)

814-5282

DATE:

February 9,

2004

I ~\MLC\StarE1ectronics\MoRe1FromHr~.wpd

---

RECEIVED

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD CLERK’S OFFICE

FEB 112004

PEOPLE OF THE STATE OF ILLINOIS,

by

LISA MADIGAN, Attorney

)

STATE

OF ILLINOIS

General of the State of Illinois,

)

Pollution Control

Board

Complainant,

PCB No.

03-5

v.

)

(Enforcement

-

Air)

STAR ELECTRONICS,

INC.,

an

Illinois corporation,

Respondent.

STIPULATION AND PROPOSAL FOR SETTLEMENT

Complainant,

PEOPLE OF THE STATE OF ILLINOIS, by LISA

NADIGAN,

Attorney General

of the State of Illinois,

the Illinois

Environmental Protection Agency

(“Illinois EPA”),

and Respondent,

STAR ELECTRONICS,

INC.

(“Star”),

an Illinois Corporation,

have

agreed

to

the

making

of

this

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 of the evidence and testimony which would be

introduced by the parties if a trial were held.

The parties

further stipulate that this statement

of facts is made and agreed

upon for purposes of settlement 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 not to contest

its validity in any subsequent

proceeding to implement or enforce its terms.

Insolvency of the

Respondent by filing a petition for bankruptcy shall not be

deemed a proceeding to contest the validity of this Stipulation.

I.

JURISDICTION

The Board has jurisdiction over the subject matter herein

and of the parties consenting hereto pursuant to the Illinois

Environmental Protection Act

(“Act”)

,

415 ILCS 5/1 et

seq.

(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 Agreement

and to legally bind them to it.

III.

STATEMENT

OF

FACTS

A.

Parties

1.

On July 12,

2002,

a Complaint was filed on behalf of

the People of the State of Illinois by Lisa Madigan, Attorney

General

of the State of Illinois, on her own motion and upon the

request of the Illinois EPA,

pursuant to Section 31 of the Act,

415 ILCS 5/31

(2002)

,

against the Respondent.

2.

The Illinois EPA is an administrative agency of the

-2-

---

State of Illinois,

created pursuant to Section 4 of the Act,

415

ILCS 5/4

(2002)

3.

At all times relevant to the Complaint,’ including

July 23,

1998,

Respondent,

Star, was and is an Illinois

Corporation.

B.

Business and Site Description

1.

At all times relevant to this Complaint, Respondent

Star was and is a manufacturer of circuit boards for electronic

devices, utilizing a variety of chemicals via a plating process,

located at 825 Pratt Boulevard,

Elk Grove Village, Cook County,

Illinois

(“facility”)

2.

The waste material created in Star’s manufacturing

process

can

chemically

react

to

form

chlorine

gas.

3.

On July 23,

1998,

at or about

11:00

a.m.,

Star caused

an uncontrolled chemical reaction releasing chlorine to the

ambient air and forming a noxious cloud.

Star’s release forced

the evacuation of its facility and at least seven people were

sent to the hospital.

C.

Allegations of Non-Compliance

1.

Complainant contends that the Respondent has violated

the following provisions of the Act and Board Regulations:

Count

I:

CAUSING OR ALLOWING AIR POLLUTION in violation

of Section 9(a)

of the Act,

415 ILCS 5/9(a) (2002), and

Section 201.141

of the Board Air Pollution Regulations,

35

Ill. Adm.

Code 201.141.

-3-

---

D.

Admission of Violations

The Respondent admits to the violations alleged in the

Complaint filed in this matter and referenced herein.

IMPACT ON THE PUBLIC RESULTING FROM NON-COMPLIANCE

Section 33(c)

of the 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 of injury 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 of priority

of location 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:

1.

The Parties state that the impact to the public

resulting from Respondent’s non-compliance was that harm to human

health and the environment was threatened by Respondent’s alleged

-4-

---

release of chlorine to the ambient

air.

2.

The Parties agree that Respondent’s business

is of

social and economic benefit.

3.

The parties agree that Respondents work performed at

the site was suitably located for manufacturing circuit boards

for

electronic

devices

when

done

in

accordance

with

the

Act

and

relevant regulations.

4.

The parties agree that complying

with the requirements

of the Act and relevant regulations is both technically

practicable and economically reasonable.

5.

The parties state that they are not aware of any non-

compliance on Respondent’s part

since this incident on July 23,

1998.

CONSIDERATION OF SECTION 42(h)

FACTORS

Section 42 (h)

of the 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 of record in

mitigation or aggravation of penalty, 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 of the violator in attempting to

comply with requirements of this Act and

regulations thereunder or to secure relief

therefrom as provided by this Act;

-5-

---

3.

any economic benefits accrued by the violator

because of delay in compliance with

requirements;

4.

the amount of monetary penalty which will

serve to deter further violations by the

violator

and

to

otherwise

aid

in

enhancing

voluntary compliance with this Act by the

violator

and

other

persons

similarly

subject

to

the

Act;’

and

5.

the number, proximity in time,

and gravity of

previously

adjudicated

violations

of

this

Act

by

the

violator.

In response to these

factors,

the parties state:

1.

The Parties state that the duration of the violation

for the release of chlorine to the ambient air was one day: July

23,

1998.

2.

The parties agree that they are not aware of any non-

compliance of Respondent’s part since the violation in the

Complaint.

3.

The

Parties

agree

that

the

appropriate

penalty

which

will serve to deter future violations of the Act and enhance

voluntary compliance

is $10,000.00.

4.

The

Parties

agree

that

Respondents

have

no

prior

adjudications for violations of the Act.

A.

This Stipulation Agreement shall apply to and be binding

upon the Complainant and the Respondent,

and any officer,

director,

agent,

or employee of the Respondent,

as well as any

-6-

---

successors or assigns of the Respondent.

The Respondent shall

not

raise as

a

defense

to

any

enforcement

action

taken

pursuant

to this Stipulation Agreement the failure of any of its officers,

directors,

agents,

or

employees

to

take

such

actions

as

shall

be

required to comply with

the

provisions

of

this

Stipulation.

8.

No change in ownership,

corporate status or operator of the

facility shall

in any way alter the responsibilities of the

Respondent

under

this

Stipulation.

In

the

event

of

any

conveyance

of

title,

easement

or

other

interest

in

the

facility,

the

Respondent

shall

continue

to

be

bound

by

and

remain

liable

for

performance

of

all

obligations

under

this

Stipulation.

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.

A.

Penalty

1.

a.

The Respondent shall pay a civil penalty of Ten

Thousand Dollars

($10,000.00)

.

Within thirty

(30)

days after the

date

on

which

the

Board

adopts

a

final

order

approving

this

Stipulation,

Respondent shall pay $5,000.00.

Respondent shall pay

-7-

---

sn additional $2,500.00 within 60 days and the final $2,500.00

~dthin

90

days

of

the

date

on

which

the

Board

adopts

a

final

order

approving

this

Stipulation.

Payments

shall

be

made

as

follows:

b.

Payments shall be made by certified check or money

order,

payable

to

the

Illinois

EPA

for

deposit

into

the

Environmental Protection Trust Fund

(“EPTF”)

and shall be sent by

first

class

mail

and

delivered

to:

Illinois Environmental Protection Agency

Fiscal

Services

1021

North

Grand

Avenue

East

P.O.

Box

19276

Springfield,

IL 62794-9276

c.

The name,

case number,

and the Respondent’s

Federal

Employer

Identification

Number

(“FEIN”),

3(~

3~’f~/~2’p,

shall

appear

on

the

face

of

the

certified

checks

or

money

orders.

A copy of the certified checks or money orders and the

transmittal letter shall be sent to:

Mitchell

L.

Cohen

Assistant Attorney General

Environmental Bureau

188 West Randolph,

Suite 2001

Chicago, Illinois 60601

3.

For purposes of payment and collection,

the

Respondent’s attorney may be reached at the following address:

Bruno W.

Tabis,

Michael Best

& Friedrich,

LLC

401 N. Michigan Ave.

Suite 1900

Chicago, Illinois 60611

-8-

---

4.

For purposes of payment and collection,

Respondent may

be reached at the following addresses:

Star

Electronics,

Inc.

c/o Louis Giannetti,

President

825 Pratt Boulevard

Elk Grove Village, Illinois 60007-5116

5.

In

the

event

of

default,

the

Complainant

shall

be

entitled

to

reasonable

costs

of

collection,

including

reasonable

attorney’s

fees.

6.

If

the

Respondent

fails

to

make

any

payment

specified

within, Section VIII.A.l.

of this Stipulation and Proposal for

Settlement on or before the date upon which the payment

is due,

the Respondent will be in default and the remaining unpaid

balance of the penalty, plus any accrued interest,

shall be due

and owing immediately.

B.

Interest on Penalties

1.

Pursuant to Section 42(g)

of the Act, 415 ILCS 5/42

(g) (2002),

interest shall accrue on any penalty amount owed by

the

Respondent

not

paid

within

the

time

prescribed

herein,

at

the

maximum

rate

allowable

under

Section

1003(a)

of

the

Illinois

Income

Tax

Act,

35

ILCS

5/1003

(a)

(2002)

2.

Interest on unpaid penalties shall begin to accrue from

the date the penalty is due and continue to accrue to the date

payment

is

received

by

the

Illinois

EPA.

3.

Where partial payment

is made on any penalty amount

that is due,

such partial payment shall be first applied to any

-9-

---

interest on unpaid penalties then owing.

4.

All interest on penalties owed the Complainant

shall be

paid by certified check or money order payable to the Illinois

EPA for deposit in the EPTF at the above-indicated address.

The

name,

case

number,

and

the

Respondent

‘s FEIN shall appear on the

face of the certified check or money order.

A copy of the

certified check or money order and the transmittal letter shall

be sent to:

Mitchell

L.

Cohen

Assistant Attorney General

Environmental Bureau

188 West Randolph St.,Suite 2001

Chicago, Illinois 60601

C.

Future Use

Notwithstanding any other language in this Stipulation

Agreement to the contrary,

this Stipulation may be in any

subsequent enforcement action or permit proceeding against the

Respondent as evidence of a past adjudication of alleged

violation of the Act and the Board Regulations promulgated

thereunder,

for purposes of Sections

39(1)

and/or 42(h) of the

Act, 415 ILCS 5/39(i)

and/or 5/42

(h) (2002)

D.

Cease and Desist

The Respondent shall cease and desist from all future

violations of the Act and Board Regulations,

including,

but not

limited to those violations alleged and outlined in Section

III.C. of this Stipulation.

-10-

---

E.

Release from Liability

In consideration of the Respondents’ payment of a $10,000.00

penalty,

the

Complainant

releases,

waives

and

discharges

the’

Respondent from further liability or penalties for any alleged

violations

of

the

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 onJuly

12, 2002.

The Complainant

reserves,

and this Stipulation is without prejudice to,

all

rights of the State of Illinois

against

the

Respondent

with

respect to all other matters,

including but not limited to,

the

following:

a.

criminal liability;

b.

liability for future violation of state,

federal,

local,

and

common

laws

and/or

regulations;

c.

liability for natural resource damage arising out of

the

alleged

violations;

and

d.

liability or claims based on the Respondent’s failure

to satisfy the requirements of this Stipulation Agreement.

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 of Illinois or the

Illinois EPA may have against any person,

as defined by Section

—11—

---

3.26 of the Act, 415 ILCS 5/3.26

(2002),

or entity other than the

Respondent.

F.

Enforcement of Stipulation

1.

Upon the entry of this Stipulation, any party hereto,

upon motion, may reinstate these proceedings solely for the

purpose of enforcing the terms and conditions of this

Stipulation.

This

Stipulation

is

a

binding

and

enforceable

order

of

the

Board

and

may

be

enfOrced

by

the

Illinois

Circuit

Court

through any and all available means.

2.

Respondent agrees that notice of any subsequent

proceeding to enforce this Stipulation may be made by mail and

waives

any

requirement

of

service

of

process.

-12-

---

WHEREFORE,

the parties, by their representatives,

enter into

this Stipulation and submit

it to the Board that

it

may

be

approved

and

entered.

AGREED:

FOR

THE

COMPLAINANT:

PEOPLE OF THE STATE OF ILLINOIS

by LISA MADIGAN,

Attorney

General

of

the

State

of

Illinois

MATTHEW

J.

DUNN,

Chief

ILLINOIS

ENVIRONMENTAL

Environmental

Enforcement/

PROTECTION

AGENCY

Asbestos

Litigation

Division

BY:

___________________

BY:

________________

ROSEMARIE

CAZEAU,

Chief

JOSEPH

E.

SVOBODA

Environmental Bureau

Chief Legal Counsel

Assistant Attorney General

DATE:

____________________

DATE:

FOR

THE

RESPONDENT:

STAR

ELECTRONICS,

INC.

BY

~

Its

President

DATE:

___________________

-13-

---

WHEREFORE,

the parties, by their representatives, enter into

this Stipulation and submit

it to the Board that

it may be

approved and entered.

AGREED:

FOR

THE

COMPLAINANT:

PEOPLE OF THE STATE OF ILLINOIS

by LISA MADIGAN,

Attorney

General

of

the

State of Illinois

MATTHEW J.

DUNN,

Chief

ILLINOIS

ENVIRONMENTAL

Environmental Enforcement/

PROTECTION AGENCY

Asb7e~E~s

Litigation ~ivision

BY:

_______________

BY:

~______________

R~SEM~.R~E

CAZEAU,~~~

7J/JSEPH”E.

SVOBODA

En~~nm~alBur~au

(hief

Legal Counsel

Assistant Attorney~~-aJ~~

DATE:

I

I

(

‘~/~

DATE:

/~

FOR THE RESPONDENT:

STAR ELECTRONICS,

INC.

BY:

______________________

Lois

Giannetti

Its

President

DATE:

__________________

-13-

---

CERTIFICATE OF SERVICE

I, MITCHELL COHEN,

an Assistant Attorney General, certify

that

on

the

11th

day

of February,

2004,

I caused to be served by

First

Class

Mail

the

foregoing

Settlement” and “Relief from the 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.

MITCHELL L.

COHEN

I \MLC\StarE1ectronic~\NoticeFi1ing.wpd