UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY
REGION 9

In the Matter o :

Exide Technologies
Vernon, California
Proceeding Under Section 113(a),
Clean Air Act, As Amended

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Docket No. R9- 15-03
Finding and Notice of Violation

This Finding of Violation (“FOV”) is issued to Exide Technologies (“Exide”) for violations of the
Clean Air Act (“CAA” or “Act”) as amended, 42 U.S.C. §~ 740l-7671q, at its lead smelting operation
located in Vernon, California (the “Facility”). The Facility is located within the jurisdiction of the South
Coast Air Quality Management District (“SCAQMD” or “District”). The violations identified in this FOV
are not violations of a state implementation plan and therefore, this FOV is not a required notification
pursuant to Section 11 3(a)( 1) of the Act. EPA, Region IX is providing notification of its findings pursuant
to its inherent discretionary authority.
GENERAL STATUTORY AND REGULATORY BACKGROUND
1.

Sections 112(d) and (1) of the Act require EPA to promulgate standards that regulate emissions of
hazardous air pollutants from major stationary sources. 42 U.S.C. §7412(d) and (f).

2. A person’s failure to comply with a requirement or prohibition of section 112 of the Act renders the
person subject to enforcement under section 113 of the Act. 42 U.S.C. §7413(a)(3).
3.

In accordance with sections 112(d) and (f) of the Act, EPA has promulgated “National Emissions
Standards for Hazardous Air Pollutants from Secondary Lead Smelting”. 62 Fed. Reg. 32209

 (June 13, 1997); 77 Fed. Reg. 556 (Jan. 5, 2012); see also, 79 Fed. Reg. 367 (Jan. 3, 2014). These
standards, also known as the Secondary Lead Smelting NESHAP, are codified at 40 C.F.R. part 63,
subpart X.
4. The compliance date for the 1997 Secondary Lead Smelting NESHAP was December 23, 1997.
40 C.F.R. §63.546(a) (1997). The compliance date for the 2012 Secondary Lead Smelting NESHAP
was January 6, 2014. 40 C.F.R. §63.546(c).
Secondary Lead Smelting NESHAP Requirements Related to
Standards for Fugitive Dust Sources
5.

Owners and operators of secondary lead smelting operations are required to comply with standards for
fugitive dust sources, including the following:
a) A requirement to prepare, and at all times operate according to, a standard operating procedures
(“SOP”) manual that describes in detail the measures that will be put in place and implemented to
control fugitive dust emissions from plant roadways and buildings, accidental releases, battery
storage areas, equipment maintenance, material storage areas and material handling areas.

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C.F.R. §63.545(a). In addition, the SOP manual must include the requirements specified in 40
C.F.R. §63.545(c)(1) through (7).
b) A requirement to submit the SOP manual to EPA or delegated authority for review and approval
when initially developed and any time changes are made. 40 C.F.R. §63.545(b).
Secondary Lead Smelting NESHAP Requirements
Related to Baghouse Monitoring
6.

Owners and operators of secondary lead smelting operations are required to comply with requirements
for monitoring baghouses, including the following:
a) A requirement to prepare, and at all times operate according to, a standard operating procedures
(“SOP”) manual that describes in detail procedures fqr inspection, maintenance, and bag leak
detection and corrective action plans for all baghouses that are used to control process vents,

 process fugitive, or fugitive dust emissions from any source subject to the lead emission standards
in sections 63.543, 63.544, 63.545, including those used to control emissions from building
ventilation. 40 C.F.R. §63.548(a). In addition, the SOP manual must include the procedures
specified in 40 C.F.R. §63.548(c)(l) through (9) and 40 C.F.R. §63.548(d).
b) A requirement to submit the SOP manual to EPA or the delegated authority for review and
approval. 40 C.F.R. §63.548(b).
c) A requirement to continuously operate a bag leak detection system that meets the specifications of
40 C.F.R. §63.548(e)(1) through (8). 40 C.F.R. §63.548 (e); see also, 40 C.F.R. §63.548(c)(9).
d) A requirement to maintain for five years: (1) electronic records of the bag leak detection system
output; (2) an identification of the date and time of all bag leak detection system alarms, the time
that procedures to determine the cause of the alarm were initiated, the cause of the alarm, an
explanation of the corrective actions taken, and the date and time the cause of the alarm was
corrected; (3) all records of inspections and maintenance activities required under 63.548(c) as part
of the practices described in the SOP manual for baghouses required under 63.548(a). 40 C.F.R.
§63.550(c)( I )-(3).
Secondary Lead Smelting NESHAP Requirements Related to Total Hydrocarbons
7.

Owners and operators of secondary lead smelting operations are required to comply with emission
limits for total hydrocarbons, including the following:
a) 20 ppmv @ 4% CO2 for collocated blast and reverberatory furnaces. 40 C.F.R. §63.543(c), and
Subpart X, Table 2;
b) 360 ppmv @ 4% CO2 for blast furnaces constructed prior to 1994 that are not collocated with
reverberatory furnaces. 40 .C.F.R. §63.543(c) and Subpart X, Table 2;
c) The limit calculated by the formula for emissions from combined furnaces that do not meet
definition of collocated furnaces. 40 C.F.R. §63.543(d).

 8. Owners and operators of secondary lead smelting operations are required to comply with temperature
monitoring requirements, including the following:
a) Install, calibrate, maintain, and continuously operate a device to monitor and record the
temperature of the afterburner or furnace exhaust streams consistent with the requirements for
continuous monitoring systems in section 63.8. 40 C.F.R. §63.548(j)(1).
b)

Conduct a performance evaluation for the temperature monitoring device according to section
63.8(e). 40 C.F.R. §63.548(j)(2).

c) Monitor and record the temperature of the afterburner or the furnace exhaust streams every
15 minutes during the initial performance or compliance test for THCs and DIFs and determine the
arithmetic average for the recorded temperature measurements. 40 C.F.R. §63.548(j)(3).
d) Maintain an afterburner or exhaust temperature such that the average temperature in any 3-hour
period does not fall more than 28 degrees Celsius (50 degrees Farenheit) below the average
established in section 63.548(j)(3) of this section. 40 C.F.R. §63.548(j)(4).
9. Owners and operators of secondary lead smelting operations are required to comply with temperature
monitoring-related recordkeeping and reporting requirements, including the following:
a) Records of the output from the continuous temperature monitor required in section 63 .548(j)( 1),
and an identification of periods when the 3-hour average temperature fell below the minimum
established under section 63.548(j)(4), and an explanation of the corrective actions taken. 40
C.F.R. §63.550(c)(5).
FINDINGS OF FACT
10. Exide Technologies is the owner and/or operator of the Facility, located at 2700 South Indiana Street
in Vernon, California. The Facility is a secondary lead smelter that recycles lead batteries and other
lead-bearing scrap materials.
11. Exide suspended smelting operations at the Facility on or about March 14, 2014. On July 10, 2014,

 SCAQMD’ s Hearing Board approved an abatement order requiring Exide to upgrade the Facility’s air
pollution control system and prohibiting operation of its furnaces until completion of construction. On
December 5, 2014, SCAQMD issued a permit authorizing construction and installation of air pollution
control equipment. Pursuant to the SCAQMD abatementorder, Exide must complete construction and
installation of the air pollution control equipment within 180 days of issuance of the permit, which is
June 2, 2015.
12. On or about June 20, 2014, EPA sent a letter pursuant to its authority under section 114 of the Clean
Air Act requesting information related to determining compliance with the Secondary Lead Smelting
NESHAP at the Facility.
13. Exide responded to EPA’ s information request letter by letters dated July 25, 2014 and August 29,
2014.
14. EPA’ s information request letter requested that Exide provide the following information regarding
SOP manuals:
Q#1 4: [Provide] [a] 11 standard operating procedures manuals for sources of fugitive dust and for
baghouses and all notifications and updates submitted to the EPA or the District pursuant to
40 C.F.R. §~ 63.545(a), 63.548(a), 63.549(b), and 63.550(b). Please state the date that each
manual and notification was submitted to EPA or the District, and provide documentation of the
date of the submittal.
15. Exide’s response included an SOP manual for baghouses dated July 1997 and an SOP manual for
fugitive dust sources dated July 2008. The SOP manual for baghouses did not include current
information regarding equipment. The SOP manual for fugitive dust sources did not include
information regarding accidental releases.
16. EPA’ s information request letter requested that Exide provide the following information regarding
baghouse monitoring:
Q#l 5: From January 1, 2010, to the present, all bag leak detection system records required by
40 C.F.R. § 63.550(c)(1)-(3).
17. Exide’s response stated that it was providing its responsive records. Exide’s response did not include

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 any electronic records.
18.

s information request letter requested that Exide provide the following information regarding
total hydrocarbons:
Q.#1 7: For each continuous temperature monitoring device from January 1, 2010, installed or
operated to comply with the requirements of 40 C.F.R. § 63.548(j)(1), identify and state the
location of each such device and provide the results of the initial performance or compliance test
conducted pursuant to 40 C.F.R. § 63.548(j)(2).
Q.#18: From January 1, 2010, to the present, all continuous temperature monitor output electronic
records required by 40 C.F.R. § 63.550(c)(5), including an identification of each period when the
3-hour average temperature fell below the minimum established under § 63.548(j)(4) and an
explanation of the corrective actions taken.

19. Exide’ s response stated that the Facility uses two devices to monitor temperature of the afterburner,
one device during warm up of the afterburner and startup of the blast furnace, and a different device
located in the afterburner shaft to control operation of the afterburner during steady state conditions.
Exide’s response did not include complete records from January 1, 2010 of output from either monitor.
FINDINGS OF VIOLATION
Findings of Failure to Comply with Secondary Lead Smelting NESHAP Requirements
20. Exide failed to prepare and operate according to a detailed SOP manual for fugitive dust sources, in
violation of 40 C.F.R. §63.545(a).
21. Exide failed to prepare and operate according to a detailed SOP manual for baghouses used to control
process vents, process fugitives, and fugitive dust emissions, in violation of 40 C.F.R. §63.548(a).
22. Exide failed to maintain electronic records of bag leak detection system output, in violation of
40 C.F.R. §63.550(c)(l).
23. Exide failed to maintain complete records of afterburner temperatures, in violation of 40 C.F.R.
§63.550(c)(5).
NOTICE OF VIOLATION
Notice is given to Exide Technologies that the Administrator of the United States Environmental

 Protection Agency, by authority duly delegated to the undersigned, finds that Exide Technologies has
violated section 112 of the Act, and the Secondary Lead Smelting NESHAP, as set forth in the Findings of
Violation.
ENFORCEMENT
Section 11 3(a)(3) of the Act provides that when any person has violated any requirement or
prohibition of section 112 of the Act, EPA may:
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issue an order requiring compliance with the requirements or prohibition of such
requirements, or

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issue an administrative penalty order pursuant to section 113(d) for civil administrative
penalties of up to $37,500 per day of violation, or

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bring a civil action pursuant to section 113(b) for injunctive relief and/or civil penalties of
not more than $37,500 per day for each violation.

Furthermore, if a person knowingly violates any requirements of section 112 more than 30 days
after notification of violation, section 113(c) provides for criminal penalties or imprisonment, or both.
Under section 306(a) of the Act, the regulations promulgated thereunder (2 C.F.R. Parts 180 and
1532), and Executive Order 11738, facilities to be used in federal contracts, grants, and loans must be in
full compliance with the Act and all regulations promulgated pursuant to it. Violations of the Act may
result in the facility being declared ineligible for participation in any federal contract, grant, or loan.
PENALTY ASSESSMENT CRITERIA
Section 11 3(e)( 1) of the Act states that the Administrator or the court, as appropriate, shall, in
determining the amount of any penalty to be assessed, take into consideration (in addition to such other
factors as justice may require) the size of the business, the economic impact of the penalty on the business,
the violator’s full compliance history and good faith efforts to comply, the duration of the violation as
established by any credible evidence (including evidence other than the applicable test method), payment

 by the violator of penalties previously assessed for the same violation, the economic benefit of
noncompliance, and the seriousness of the violation.
Section 11 3(e)(2) of the Act allows the Administrator or the court to assess a penalty for each day
of violation. For the purposes of determining the number of days of violation, where the EPA makes a
prima facie showing that the conduct or events giving rise to this violation are likely to have continued or
recurred past the date of this FOV, the days of violation shall be presumed to include the date of this FOV
and each and every day thereafter until the violator establishes that continuous compliance has been
achieved, except to the extent that the violator can prove by the preponderance of the evidence that there
were intervening days during which no violation occurred or that the violation was not continuing in
nature.
OPPORTUNITY FOR CONFERENCE
Exide Technologies may, upon request, confer with EPA. The conference will enable Exide to
present evidence bearing on the finding of violation, the nature of the violations, and any efforts it may
have taken or proposes to take to achieve compliance. Exide Technologies has the right to be represented
by counsel. A request for a conference with EPA must be made within ten (10) working days of receipt of
this FOV. The request for a conference or other inquiries concerning the FOV should be made in writing
to:
Kara Christenson
Office of Regional Counsel (ORC-2)
U.S. Environmental Protection Agency
75 Hawthorne Street
San Francisco, California 94105
(415) 972-3881
christenson.kara@epa.gov

Date

Kathleen H. Johnson
Director, Enforcement Division
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
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REGION IX

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75 Hawthorne Street
San Francisco, CA 94105.3901

MAR 052015
CERTIFIED MAIL # 7010 1670 0000 7048 0326
RETURN RECEIPT REQUESTED
IN REPLY:
REFER TO:

ENF.-2-1
Docket No. R9-2015-03

Mr. Robert M. Caruso
Chief Executive Officer
Exide Technologies, Inc.
Building 200
13000 Deerfield Parkway
Milton, Georgia 30004
Re:

Exide Technologies Finding and Notice of Violation

Dear Mr. Caruso:
Enclosed is a copy of a Finding of Violation (“FOV”) issued pursuant to section 113(a)(3) of the Clean
Air Act, 42 U.S.C. §~ 7401-7671q (the “Act”), notifying you that the United States Environmental
Protection Agency (“EPA”), Region IX, finds that Exide Technologies, Inc. (“Exide”), has violated
certain provisions of the Act’s National Emission Standards for Hazardous Air Pollutants from
Secondary Lead Smelting at its lead battery recycling facility located in Vernon, California (the
“Facility”).
You should be aware that section 113(a)(3) of the Act authorizes EPA to issue an order requiring
compliance with the requirements of the Act, issue an administrative penalty order, or commence a
civil action seeking an injunction and/or a civil penalty. Furthermore, section 113(c) of the Act
provides for criminal penalties in certain cases.
In addition, section 306 of the Act, 42 U.S.C. § 7606, the regulations promulgated thereunder
(2 C.F.R. Part 180), and Executive Order 11738 provide that facilities to be utilized in federal
contracts, grants, and loans must be in full compliance with the Act and all regulations promulgated
pursuant to it. A violation of the Act may result in the Exide Facility being declared ineligible for
participation in any federal contract, grant, or loan.
If you wish to discuss the enclosed FOV, you may request a conference with EPA within ten (10)
working days of receipt of this FOV. The conference will afford Exide an opportunity to present
information bearing on the finding of violation, the nature of the violations, and any efforts it may have
taken or proposes to take to achieve compliance.

Printed on Rea~yckd Paper

 If you have any questions pertaining to this FOV, please contact Mark Sims of the Air & TRI
Enforcement Office at (415) 972-3965, or have your attorney contact Kara Christenson, Office of
Regional Counsel, at (415) 972-3881. Thank you for your cooperation in this matter.

Kathleen H. Johnson
Director, Enforcement Division
Enclosure
cc:

Mr. Barry Wallerstein (SCAQMD)
Mr. Jim Ryden (CARB)
Mr. John Hogarth (Exide)

 Sr4).

UNITED STATES ENVIRONME TAL PROTECTION AGENCY
REGION IX

75 Hawthorne Street
San Francisco, CA 94105•3901

AR 05 2015
IN REPLY:
REFER TO:

ENF-2-l
Docket No. R9-2015-03

Mr. Barry Wallerstein
Executive Officer
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, California 91765
Dear Mr. Wallerstein:
Enclosed for your information is a copy of a Finding of Violation (“FOV”) that the
United States Environmental Protection Agency (“EPA”), Region IX, issued to Exide
Technologies, Inc. (“Exide”), for violations of the Clean Air Act (“Act”) at its lead
battery recycling facility located in Vernon, California.
The purpose of the FOV is to notif~’ Exide that EPA finds that it has violated certain
provisions of the Act’s National Emission Standards for Hazardous Air Pollutants from
Secondary Lead Smelting. The violations are set forth more specifically in the enclosed
FOV. The FOV has been issued pursuant to section 113(a)(3) of the Act, 42 U.S.C.
§ 7413(a)(3).
If you have any questions concerning this FOV, please contact Mark Sims, Air & TRI
Enforcement Office, at (415) 972-3965, or sims.mark(~epa.gov.
Sincerely,

Kathleen H. Johnson
Director, Enforcement Division
Enclosure

Pnn:ed on Rec’,’cled Paper

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UNITED STATES ENVIRONMENTAL PROTECTION AGE CY
REGION IX
75 Hawthorne Street
San Francisco, CA 94105.3901

MAR 052015
IN REPLY:
REFER TO:

ENF-2-1
Docket No. R9-2015-03

Mr. Jim Ryden
Chief, Enforcement Division
California Air Resources Board
P.O. Box 2815
Sacramento, California 95812
Dear Mr. Ryden:
Enclosed for your information is a copy of a Finding of Violation (“FOV”) that the
United States Environmental Protection Agency (“EPA”), Region IX, issued to Exide
Technologies, Inc. (“Exide”), for violations of the Clean Air Act (“Act”) at its lead
battery recycling facility located in Vernon, California.
The purpose of the FOV is to notify Exide that EPA finds that it has violated certain
provisions of the Act’s National Emission Standards for Hazardous Air Pollutants from
Secondary Lead Smelting. The violations are set forth more specifically in the enclosed
FOV. The FOV has been issued pursuant to section 1 13(a)(3) of the Act, 42 U.S.C.
§ 7413(a)(3).
If you have any questions concerning this FOV, please contact Mark Sims, Air & TRI
Enforcement Office, at (415) 972-3965, or sims.mark~epa.gov.
Sincerely,
~

Kathleen H. Johnson
Director, Enforcement Division
Enclosure

Pnnred on Rtcvcled Paper