Document baprYmM8bxOOkyLZbEpwBBvO3

Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 DALLAS, TEXAS FILED 25 MAR 26 PM 03:23 REGIONAL HEARING CLERK EPA REGION 6 In the Matter of Altivia Specialty Chemicals, LLC LaPorte, Texas Respondent Docket No. CAA-06-2025-3433 CONSENT AGREEMENT AND FINAL ORDER A. PRELIMINARY STATEMENT 1. This is an administrative penalty assessment proceeding brought under Section113(d) of the Clean Air Act, (the "CAA" or the "Act"), 42 U.S.C. 7413(d), and Sections 22.13, 22.18, and 22.34 of the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties and the Revocation/Termination or Suspension of Permit ("Consolidated Rules"), as codified at 40 C.F.R. Part 22. 2. Complainant is the United States Environmental Protection Agency, Region 6 ("EPA"). On EPA's behalf, the Director of the Enforcement and Compliance Assurance Division, EPA Region 6, has been delegated the authority to settle civil administrative penalty and compliance proceedings under Section 113(d) of the Act, 42 U.S.C. 7413(d). 3. Altivia Specialty Chemicals, LLC ("Altivia" or "Respondent") is a limited liability company doing business in the State of Texas. Respondent is a "person" as defined in Section 302(e) of the Act, 42 U.S.C. 7602(e). Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 4. Complainant and Respondent, having agreed that settlement of this action is in the public interest, consent to the entry of this Consent Agreement along with the corresponding Final Order hereinafter known together as the "CAFO" without the adjudication of any issues of law or fact herein. 5. Respondent consents to the assessment of the civil penalty specified in this CAFO and to the terms of this CAFO. B. JURISDICTION 6. This CAFO is entered into under Section 113(d) of the CAA, as amended, 42 U.S.C. 7413(d), and the Consolidated Rules, 40 C.F.R. Part 22. The alleged violations in this CAFO are pursuant to Section 113 (a)(3)(A) of the Act, 42 U.S.C. 7413 (a)(3)(A). 7. On April 28, 2025, EPA issued to Respondent a Notice letter, providing notice to Respondent that EPA found Respondent committed the alleged violations described in Section E of this CAFO and providing Respondent an opportunity to confer with EPA. On May 9, 2025, representatives of Respondent and EPA conferred regarding the April 28, 2025, Notice letter. 8. The Regional Judicial Officer is authorized to ratify this CAFO which memorializes a settlement between Complainant and Respondent. 40 C.F.R. 22.4(b) and 22.18(b). 9. The issuance of this CAFO simultaneously commences and concludes this proceeding. 40 C.F.R. 22.13(b). C. STATUTORY AND REGULATORY BACKGROUND Clean Air Act, Section 112(R) 10. The objective of Section 112(r)(1) of the Act, 42 U.S.C. 7412(r)(1), is to prevent the accidental release and to minimize the consequences of any such release of any substance 2 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 listed pursuant to Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), or any other extremely hazardous substance. 11. Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), requires the Administrator to promulgate, not later than 24 months after November 15, 1990, a list of regulated substances which, in the case of an accidental release, are known to cause or may reasonably be anticipated to cause death, injury, or serious adverse effects to human health or the environment. 12. Pursuant to Section 112(r)(3) of the Act, 42 U.S.C. 7412(r)(3), the Administrator initially promulgated a list of regulated substances, with threshold quantities for applicability, at 59 Fed. Reg. 4478 (January 31, 1994), which is codified, as amended, at 40 C.F.R. 68.130. 13. Pursuant to Sections 113(a) and (d) of the CAA, 42 U.S.C. 7413(a) and (d), whenever the Administrator finds that such person has violated or is violating any requirement or prohibition of Section 112(r) of the CAA, 42 U.S.C. 7412(r), and its implementing regulations, the Administrator may issue an administrative order and a civil administrative penalty. 14. The Administrator may assess a civil penalty of up to $59,114 per day of violation up to a total of $472,901 for each violation. Section 113(d)(1) of the Act, 42 U.S.C. 7413(d)(1), and 40 C.F.R. Part 19. General Duty Clause 15. Pursuant to Section 112(r)(1) of the CAA, 42 U.S.C. 7412(r)(1), commonly referred to as the "General Duty Clause," owners and operators of stationary sources producing, processing, handling or storing substances listed pursuant to Section 112(r)(3) of the CAA, 42 3 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 U.S.C. 7412(r)(3), or any other extremely hazardous substance, have a general duty, in the same manner and the same extent as the Occupational Safety and Health Act (OSHA), 29 U.S.C. 654 et. seq., to (a) identify hazards which may result from accidental releases of such substances, using appropriate hazard assessment techniques; (b) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and (c) minimize the consequences of accidental releases which do occur. Risk Management Plan (RMP) 16. Section 112(r)(7) of the CAA, 42 U.S.C. 7412(r)(7), requires the Administrator to promulgate regulations that address release prevention, detection, and correction requirements for stationary sources with threshold quantities of regulated substances listed pursuant to Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3). On June 20, 1996, EPA promulgated a final rule known as the Risk Management Program, 40 C.F.R. Part 68 - Chemical Accident Prevention Provisions, which implements Section 112(r)(7) of the CAA, 42 U.S.C. 7412(r)(7). 17. The regulations at 40 C.F.R. Part 68 require owners and operators to develop and implement a Risk Management Program at each stationary source with over a threshold quantity of regulated substances. The Risk Management Program must include, among other things, a hazard assessment, a prevention program, and an emergency response program. The Risk Management Program is described in a Risk Management Plan (RMP) that must be submitted to EPA. 18. Pursuant to Section 112(r)(7) of the CAA, 42 U.S.C. 7412(r)(7), and 40 C.F.R. 68.150, an RMP must be submitted for all covered processes by the owner or operator of a 4 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 stationary source subject to 40 C.F.R. Part 68 no later than the latter of June 21, 1999, or the date on which a regulated substance is first present above the threshold quantity in a process. 19. The regulations at 40 C.F.R. 68.10 set forth how the Chemical Accident Prevention Provisions of 40 C.F.R. Part 68 apply to each program level of covered processes. 20. Pursuant to 40 C.F.R. 68.10(i), a covered process is subject to Program 3 requirements if the process does not meet the requirements of Program 1, as described in 40 C.F.R. 68.10(g), and if it is in a specified North American Industrial Classification System code or is subject to the OSHA process safety management standard, 29 C.F.R. 1910.119. Definitions 21. Section 302(e) of the CAA, 42 U.S.C. 7602(e), defines "person" to include any individual, corporation, partnership, association, State, municipality, political subdivision of a State, and any agency department, or instrumentality of the United States and any officer, agent, or employee thereof. 22. Section 112(r)(2)(A) of the CAA, 42 U.S.C. 7412(r)(2)(A), and the regulation at 40 C.F.R. 68.3 defines "accidental release" as an unanticipated emission of a regulated substance or other extremely hazardous substance into the ambient air from a stationary source. 23. Section 112(r)(2)(C) of the CAA, 42 U.S.C. 7412(r)(2)(C), and the regulation at 40 C.F.R. 68.3 defines "stationary source," in part, as any buildings, structures, equipment, installations or substance-emitting stationary activities which belong to the same industrial group, which are located on one or more contiguous properties, which are under the control of 5 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 the same person (or persons under common control), and from which an accidental release may occur. 24. Section 112(r)(2)(B) of the CAA, 42 U.S.C. 7412(r)(2)(B), and the regulation at 40 C.F.R. 68.3 defines "regulated substance" as any substance listed pursuant to Section 112(r)(3) of the CAA, as amended, in 40 C.F.R. 68.130. 25. The regulation at 40 C.F.R. 68.3 defines "threshold quantity" as the quantity specified for regulated substances pursuant to Section 112(r)(5) of the CAA, as amended, listed in 40 C.F.R. 68.130 and determined to be present at a stationary source as specified in 40 C.F.R. 68.115. 26. The regulation at 40 C.F.R. 68.3 defines "process" as any activity involving a regulated substance including any use, storage, manufacturing, handling or on-site movement of such substances, or combination of these activities. For the purposes of this definition, any group of vessels that are interconnected, or separate vessels that are located such that a regulated substance could be involved in a potential release, shall be considered a single process. 27. The regulation at 40 C.F.R. 68.3 defines "covered process" as a process that has a regulated substance present in more than a threshold quantity as determined under 40 C.F.R. 68.115. D. FINDINGS OF FACT AND CONCLUSIONS OF LAW 28. Respondent is, and at all times referred to herein was, a "person" as defined by Section 302(e) of the CAA, 42 U.S.C. 7602(e). 6 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 29. Respondent is the owner and operator of a facility located at 1901 W. H Street, LaPorte, Texas 77571 (the "Facility"). 30. Pursuant to Section 114 of the CAA, 42 U.S.C. 7414, EPA conducted an inspection of the Facility from April 22 - 25, 2024 , to determine Respondent's compliance with Section 112(r) of the CAA, 42 U.S.C. 7412(r), and 40 C.F.R. Part 68 (the "Inspection"). 31. On April 28, 2025, EPA sent Respondent a Notice letter. On May 9, 2025, and on various other occasions, EPA conferred with Respondent regarding the violations alleged herein and provided an opportunity for Respondent to submit additional information or materials. EPA responded to the documentation and information received from Respondent as a result of the opportunity to confer and articulated EPA's position concerning Respondent's compliance with Section 112(r) of the CAA, 42 U.S.C. 7412(r). 32. The Facility is a "stationary source" pursuant to Section 112(r)(2)(C) of the CAA, 42 U.S.C. 7412(r)(2)(C), and the regulation at 40 C.F.R. 68.3. 33. Respondent has a chemical manufacturing process at the Facility, meeting the definition of "process", as defined by 40 C.F.R. 68.3. 34. The Facility experienced an accidental release of phosgene on December 4, 2023. 35. Phosgene is a substance listed pursuant to Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), in 40 C.F.R. 68.130. 36. From the time Respondent first produced, processed, handled, or stored EHS/listed substance at the Facility, Respondent was subject to the requirements of the General Duty Clause in Section 112(r)(1) of the CAA, 42 U.S.C. 7412(r)(1). 7 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 37. Phosgene is a "regulated substance" pursuant to Section 112(r)(2)(B) of the CAA, 42 U.S.C. 7412(r)(2)(B), and the regulation at 40 C.F.R. 68.3. The threshold quantity for phosgene, as listed in 40 C.F.R. 68.130, is 500 pounds. 38. Respondent has greater than a threshold quantity of phosgene in a process at the Facility, meeting the definition of "covered process" as defined by 40 C.F.R. 68.3. 39. From the time Respondent first had on-site greater than a threshold quantity of phosgene in a process, Respondent was subject to the requirements of Section 112(r)(7) of the CAA, 42 U.S.C. 7412(r)(7), and 40 C.F.R. Part 68 because it was the owner or operator of a stationary source that had more than a threshold quantity of a regulated substance in a process. 40. From the time Respondent first had on-site greater than a threshold quantity of phosgene in a process, Respondent was required to submit an RMP pursuant to 40 C.F.R. 68.12(a) and comply with the Program 3 prevention requirements because pursuant to 40 C.F.R. 68.10(i), the covered process at the Facility did not meet the eligibility requirements of Program 1 and was in North American Industry Classification System code 325199 chemical manufacturing and subject to the OSHA process safety management standard, 29 C.F.R. 1910.119. 41. Based upon the information gathered during the Inspection, EPA determined that Respondent violated certain provisions of the CAA. E. ALLEGED VIOLATIONS 42. The facts stated in EPA Findings of Fact and Conclusions of Law above are herein incorporated. 8 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 43. Complainant hereby states and alleges that Respondent has violated the CAA and federal regulations promulgated thereunder as stated below. General Duty Clause 44. Section 112(r)(1) of the CAA., 42 U.S.C. 7412(r)(1), the General Duty Clause, states the following: prevention of accidental releases - it shall be the objective of the regulations and programs authorized under this subsection to prevent accidental releases and to minimize the consequences of any such release of any substance listed pursuant to paragraph (3) and any extremely hazardous substance. The owners and operators of stationary sources producing, processing, handling, or storing such substances, have a general duty, in the same manner and to the same extent as section 654, title 29 of the U.S.C., to identify hazards which may result from such releases using appropriate hazard assessment techniques, to design and maintain a safe facility taking such steps as are necessary to prevent releases, and to minimize consequences of an accidental release which do occur. 45. On December 4, 2023, the cold vents vaporizer (in Area A) pressure relief disc ruptured. When it ruptured, the pressure relief device header, which takes emergency vents from the cold vents unit to the emergency caustic scrubber, failed. This allowed phosgene to be released to the atmosphere. The event continued for approximately two (2) hours until the facility staff and local authorities called an "all-clear" ending the response event. Additionally, when the pressure relief device ruptured, it caused a section of piping to experience integrity failure which ultimately led to the release of phosgene. This failure allowed a portion of the phosgene to vent to the atmosphere. Inspections from 2021 and 2022 indicated this portion of 9 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 piping had multiple discrepancies in the integrity of the piping which were not corrected in a timely manner, leading to the rupture event. 46. Respondent's failure to prevent the accidental release of phosgene is a violation of the General Duty Clause, pursuant to Section 112(r)(1) of the CAA., 42 U.S.C. 7412(r)(1). RMP 5-year Resubmission 47. The regulation at 40 C.F.R. 68.190(b)(1) requires the owner or operator of a stationary source to revise and update the RMP submitted under 68.150 as follows: (1) At least once every five years from the date of its initial submission or most recent update required by paragraphs (b)(2) through (b)(1) of this section, whichever is later. For purposes of determining the date of initial submissions, RMPs submitted before June 21, 1999, are considered to have been submitted on that date. 48. Respondent failed to update their RMP by the 5-year resubmission date. Respondent had previously submitted their RMP on October 17, 2019, with resubmission due by October 17, 2024. As of December 2024, Respondent had not yet resubmitted their RMP. 49. Respondent's failure to update their RMP by the 5-year resubmission date is a violation of 40 C.F.R. 68.190(b)(1). Equipment Inspections and Tests 50. The regulation at 40 C.F.R. 68.73(f)(2) states that appropriate checks and inspections shall be performed to assure that equipment is installed properly and consistent with design specifications and the manufacturer's instructions. 51. Respondent failed to adequately address necessary repairs to the piping segment connecting the vessel to the vent scrubber based on inspections conducted in 2021 10 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 and 2022 which identified integrity issues in this section of fiberglass piping. Respondent received inconclusive inspection results indicating degradation. Respondent failed to evaluate alternate inspection protocols and perform follow-up inspections or corrective actions. This failure to address deficiencies resulted in the rupture of the piping segment following a pressure relief disc release, causing phosgene to vent to the atmosphere. 52. Respondent's failure to appropriately address the 2021 and 2022 inspection findings, which identified fretting and insufficient coating on the section of piping that failed, thus releasing phosgene to the atmosphere, is a violation of 40 C.F.R. 68.73(f)(2). F. CONSENT AGREEMENT AND CIVIL PENALTY General 53. For the purpose of this proceeding, as required by 40 C.F.R. 22.18(b)(2), Respondent: a. admits the jurisdictional allegations set forth herein; b. neither admits nor denies the specific factual allegations stated herein; c. consents to the assessment of a civil penalty, as stated herein; d. consents to the issuance of any specified compliance or corrective action order; e. consents to any conditions specified herein; f. consents to any stated Permit Action; g. waives any right to contest the allegations set forth herein; and h. waives its rights to appeal the Final Order accompanying this CAFO. 54. For the purpose of this proceeding, Respondent: 11 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 a. agrees that this CAFO states a claim upon which relief may be granted against Respondent; b. acknowledges that this CAFO constitutes an enforcement action for purposes of considering Respondent's compliance history in any subsequent enforcement action; c. waives any and all remedies, claims for relief and otherwise available rights to judicial or administrative review that Respondent may have with respect to any issue of fact or law set forth in this CAFO, including any right of judicial review under Section 307(b)(1) of the CAA, 42 U.S.C. 7607(b)(1); d. consents to personal jurisdiction in any action to enforce this CAFO in the United States District Court for the Western District of Texas; e. waives any right it may possess at law or in equity to challenge the authority of EPA to bring a civil action in a United States District Court to compel compliance with this CAFO and to seek an additional penalty for such noncompliance, and agrees that federal law shall govern in any such civil action; f. consents to the issuance of this CAFO and consents for the purposes of settlement to the payment of the civil penalty specified herein; and g. agrees that in any subsequent administrative or judicial proceeding initiated by the Complainant or the United States for injunctive relief, civil penalties, or other relief relating to the Facility, Respondent shall not assert, and may not maintain, any defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim preclusion, claim splitting, or other defenses based on 12 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 any contention that the claims raised by the Complainant or the United States were or should have been brought in the instant case, except with respect to claims that have been specifically resolved pursuant to this CAFO. 55. By signing this CAFO, Respondent waives any rights or defenses that Respondent has or may have for this matter to be resolved in federal court, including but not limited to any right to a jury trial, and waives any right to challenge the lawfulness of the final order accompanying this CAFO. 56. Respondent and EPA agree to conciliate this matter without the necessity of a formal hearing and to bear their respective costs and attorneys' fees. Penalty Assessment and Collection 57. Upon consideration of the entire record herein, including the Findings of Fact and Conclusions of Law, which are hereby adopted and made a part hereof, and upon consideration of the size of the business, the economic impact of the penalty on the business, Respondent's full compliance history and good faith efforts to comply, the duration of the violations, payment by the violator of any penalties previously assessed for the same violation, the economic benefit of noncompliance, the seriousness of the violations, and other factors as justice may require, EPA has assessed a civil penalty in the amount of $75,000.00 (the "EPA Penalty"). The EPA Penalty has been determined in accordance with Section 113 of the CAA, 42, U.S.C. 7413, and at no time exceeded EPA's statutory authority. 58. Respondent agrees to pay the EPA Penalty within thirty (30) calendar days of the Effective Date of this CAFO. Respondent shall pay the EPA Penalty and any interest, fees, and other charges due using any method, or combination of appropriate methods, as provided on 13 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 the EPA website: https://www.epa.gov/financial/makepayment. For additional instructions see: https://www.epa.gov/financial/additional-instructions-making-payments-epa. 59. When making a payment, Respondent shall: a. Identify every payment with Respondent's name and the docket number of this Order, Docket No. CAA-06-2025-3433. The payment shall also be accompanied by a transmittal letter that shall reference Respondent's name and address, the case name, and docket number CAA-06-2025-3433. Respondent's adherence to this request will ensure proper credit is given when penalties are received for Region 6. b. Concurrently with any payment, email proof of such payment and the transmittal letter to the following email addresses: Julia Torres U.S. EPA Region 6 Torres.Julia@epa.gov Region 6 Hearing Clerk U.S. EPA Region 6 Vaughn.Lorena@epa.gov and U.S. Environmental Protection Agency Cincinnati Finance Center Via electronic mail to: CINWD_AcctsReceivable@epa.gov "Proof of payment" means, as applicable, a copy of the check, confirmation of credit card or debit card payment, or confirmation of wire or automated clearinghouse transfer and any other information required to demonstrate that payment has been made according to EPA requirements, in the amount due. 14 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 60. Pursuant to 42 U.S.C. 7413(d)(5), 31 U.S.C. 3717, 31 C.F.R. 901.9, and 40 C.F.R. 13.11, if Respondent fails to timely pay any portion of the EPA Penalty per this CAFO, the entire unpaid balance of the EPA Penalty and all accrued interest shall become immediately due and owing, and EPA is authorized to recover the following amounts. a. Interest. Interest begins to accrue from the Effective Date. If the EPA Penalty is paid in full within thirty (30) days, interest accrued is waived. If the EPA Penalty is not paid in full within thirty (30) days, interest will continue to accrue until any unpaid portion of the EPA Penalty as well as any interest, penalties, and other charges are paid in full. Per 42 U.S.C. 7524(c)(6), interest will be assessed pursuant to 26 U.S.C. 6621(a)(2), that is the IRS standard underpayment rate, equal to the Federal shortterm rate plus 3 percentage points. b. Handling Charges. The United States' enforcement expenses including, but not limited to, attorneys' fees and costs of handling collection. c. Late Payment Penalty. A ten percent (10%) quarterly non-payment penalty. 61. Late Penalty Actions. In addition to the amounts described in the prior Paragraph, if Respondent fails to timely pay any portion of the EPA Penalty per this CAFO, EPA may take additional actions. Such actions EPA may take include, but are not limited to, the following.: a. refer the debt to a credit reporting agency, a collection agency, or request that the Attorney General bring civil action in the appropriate United States District Court (in which the validity, amount, and appropriateness of the EPA Penalty and of this 15 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 CAFO shall not be subject to review) to secure payment of the debt, which may include the original penalty, enforcement and collection expenses, nonpayment penalty and interest, 42 U.S.C. 7413(d)(5) and 40 C.F.R. 13.13 and 13.14; b. collect the above-referenced debt by administrative offset (i.e., the withholding of money payable by the United States to, or held by the United States for, a person to satisfy the debt the person owes the Government), which includes, but is not limited to, referral to the Internal Revenue Service for offset against income tax refunds, 40 C.F.R. Part 13, Subparts C and H; and c. suspend or revoke Respondent's licenses or other privileges or suspend or disqualify Respondent from doing business with EPA or engaging in programs EPA sponsors or funds, 40 C.F.R. 13.17. Additional Terms of Settlement 62. The provisions of this CAFO shall apply to and be binding upon Respondent and its officers, directors, employees, agents, trustees, servants, authorized representatives, successors and assigns. Respondent shall ensure that all contractors, employees, consultants, firms, or other persons or entities acting for Respondent with respect to matters included herein comply with the terms of this CAFO. 63. Any change in the legal status of the Respondent, or change in ownership, partnership, corporate or legal status relating to the Facility, will not in any way alter Respondent's obligations and responsibilities under this CAFO. 16 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 64. By signing this CAFO, Respondent acknowledges that this CAFO will be available to the public and agrees that this CAFO does not contain any confidential business information. See 40 C.F.R. Part 2, Subpart B (Confidentiality of Business Information). 65. By signing this CAFO, Respondent certifies that the information it has supplied concerning this matter was at the time of submission, and is, truthful, accurate, and complete for each submission, response, and statement. Respondent acknowledges that there are significant penalties for submitting false or misleading information, including the possibility of fines and imprisonment for knowing submission of such information, under 18 U.S.C. 1001. 66. By signing this CAFO, Respondent certifies that it is presently in compliance with all requirements of Section 112(r) of the CAA, 42 U.S.C. 7412(r). 67. By signing this CAFO, the undersigned representative of Respondent certifies that it is fully authorized to execute and enter into the terms and conditions of this CAFO and has the legal capacity to bind the party it represents to this CAFO. 68. Respondent and EPA agree to the use of electronic signatures for this matter. EPA and Respondent consent to service of a final order by email at the following valid email addresses: Sharma.Ravi@epa.gov (for EPA) and Talbert@altivia.com (for Respondent). 69. Respondent specifically waives its right to seek reimbursement of its costs and attorney's fees under 5 U.S.C. 504 and 40 C.F.R. Part 17. Except as qualified by Paragraph 63.b of this CAFO, each party shall bear its own attorney's fees, costs, and disbursements incurred in this proceeding. 70. Pursuant to 26 U.S.C. 6050X and 26 C.F.R. 1.6050X-1, EPA is required to send to annually the Internal Revenue Service ("IRS"), a completed IRS Form 1098-F ("Fines, 17 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 Penalties, and Other Amounts") with respect to any court order or settlement agreement (including administrative settlements), that require a payor to pay an aggregate amount that EPA reasonably believes will be equal to, or in excess of, $50,000 for the payor's violation of any law or the investigation or inquiry into the payor's potential violation of any law, including amounts paid for "restitution or remediation of property" or to come "into compliance with a law." EPA is further required to furnish a written statement, which provides the same information provided to the IRS, to each payor (i.e., a copy of IRS Form 1098-F). Failure to comply with providing IRS Form W-9 or Tax Identification Number ("TIN"), as described below, may subject Respondent to a penalty, per 26 U.S.C. 6723, 26 U.S.C. 6724(d)(3), and 26 C.F.R. 301.6723-1. To provide EPA with sufficient information to enable it to fulfill these obligations, Respondent shall complete the following actions as applicable: a. Respondent shall complete an IRS Form W-9 ("Request for Taxpayer Identification Number and Certification"), which is available at https://www.irs.gov/pub/irs-pdf/fw9.pdf. b. Respondent shall therein certify that its completed IRS Form W-9 includes Respondent's correct TIN or that Respondent has applied and is waiting for issuance of a TIN. c. Respondent shall email its completed Form W-9 to EPA's Cincinnati Finance Division at chalifoux.jessica@epa.gov, on or before the date that Respondent's penalty payment is due, pursuant to Section F (Penalty Assessment and Collection) of the CAFO, or within seven (7) days should this Order become effective between 18 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 December 15 and December 31 of the calendar year. EPA recommends encrypting IRS Form W-9 email correspondence. d. In the event that Respondent has certified in its completed IRS Form W-9 that it does not yet have a TIN but has applied for a TIN, Respondent shall provide EPA's Cincinnati Finance Division with Respondent's TIN, via email, within five (5) days of Respondent's receipt of a TIN issued by the IRS. G. EFFECT OF CONSENT AGREEMENT AND RESERVATION OF RIGHTS 71. In accordance with 40 C.F.R. 22.18(c), completion of the terms of this CAFO resolves only Respondent's liability for federal civil penalties for the violations and facts alleged in Sections D and E above. 72. The terms, conditions and requirements of this CAFO may not be modified or amended except upon the written agreement of both parties, and approval of the Regional Judicial Officer. 73. Penalties paid pursuant to this CAFO shall not be deductible for purposes of Federal, State, and local taxes. 74. Any violation of the included Final Order may result in a civil judicial action for an injunction or civil penalties as provided in Section 113(b) of the Act, 42 U.S.C. 7413(b) and adjusted for inflation pursuant to 40 C.F.R. Part 19, as well as criminal sanctions as provided in Section 113(c) of the Act, 42 U.S.C. 7413(c). EPA may use any information submitted under this CAFO in an administrative, civil judicial, or criminal action. 75. Nothing in this CAFO shall relieve Respondent of the duty to comply with all applicable provisions of the Act and other federal, state, or local laws or statutes, nor shall it 19 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 restrict EPA's authority to seek compliance with any applicable laws or regulations, nor shall it be construed to be a ruling on, or a determination of, any issue related to any federal, state, or local permit. EPA does not, by its consent to the entry of this CAFO, warrant or aver in any manner that Respondent's compliance with any aspect of this CAFO will result in compliance with provisions of the Clean Air Act, 42 U.S.C. 7401, et seq., or with any other provisions of federal, state, or local laws, regulations, or permits. 76. Nothing herein shall be construed to limit the power of EPA to undertake any action against Respondent or any person in response to conditions that may present an imminent and substantial endangerment to the public health, welfare, or the environment. 77. If and to the extent EPA finds, after signing this CAFO, that any information provided by Respondent was materially false or inaccurate at the time such information was provided to EPA, EPA reserves any and all of its legal and equitable rights. H. EFFECTIVE DATE 78. Respondent and Complainant agree to the issuance of the included Final Order. Upon filing, EPA will transmit a copy of the filed CAFO to Respondent. This CAFO shall become effective after execution of the Final Order by the Regional Judicial Officer on the date of filing with the Regional Hearing Clerk. Unless otherwise stated, all time periods stated herein shall be calculated in calendar days from such date. 20 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 The foregoing Consent Agreement In the Matter of Altivia Specialty Chemicals, LLC, Docket No. CAA-06-2025-3433, is Hereby Stipulated, Agreed, and Approved for Entry. FOR RESPONDENT: ALTIVIA SPECIALTY CHEMICALS, LLC Date: __________________ Timothy Digitally signed by Timothy Albert _A_l_b_e_r_t________08_:4_0:_53_-0_5'_00_' _______________ Date: 2026.03.23 Signature ____________________________________ Print Name ____________________________________ Title FOR COMPLAINANT: U.S. ENVIRONMENTAL PROTECTION AGENCY Date: __________________ Digitally signed by CHERYL SEAGER Date: 2026.03.24 ______________14_:1_5:3_1_-0_5'_00_' _____________ Cheryl T. Seager Director Enforcement and Compliance Assurance Division U.S. EPA, Region 6 Dallas, Texas 75270 21 Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 FINAL ORDER Pursuant to Section 113(d) of the CAA, 42 U.S.C. 7413(d), and the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties and the Revocation/ Termination or Suspension of Permits, 40 C.F.R. Part 22, the foregoing Consent Agreement resolving this matter is hereby ratified and incorporated by reference into this Final Order. Altivia Specialty Chemicals, LLC, is ORDERED to comply with all of the terms of the Consent Agreement. In accordance with 40 C.F.R. 22.31(b), this Final Order shall become effective upon filing with the Regional Hearing Clerk. This Final Order shall resolve only those causes of action alleged in the Consent Agreement. Nothing in this Final Order shall be construed to waive, extinguish, or otherwise affect Respondent's (or its officers, agents, servants, employees, successors, or assigns) obligation to comply with all applicable federal, state, and local statutes and regulations, including the regulations that were the subject of this action. IT IS SO ORDERED. Dated __________________ ELIZABETH ELIZABETH RYLAND Digitally signed by _R_Y__L_A_N__D_____1_0_:04_:3_5_-0_5'0_0_' ____ Date: 2026.03.25 Renea Ryland Acting Regional Judicial Officer 22 CERTIFICATE OF SERVICE Altivia Specialty Chemicals, LLC Docket No. CAA-06-2025-3433 I certify that a true and correct copy of the foregoing Consent Agreement and Final Order was filed with me, the Regional Hearing Clerk, U.S. EPA - Region 6, 1201 Elm Street, Suite 500, Dallas, Texas 75270-2102, and that I sent a true and correct copy on this day in the following manner to the email addresses: Copy via Email to Complainant: Sharma.Ravi@epa.gov Torres.Julia@epa.gov Copy via Email to Respondent: TAlbert@Altivia.com Tim Albert JGrimes@Altivia.com Jeffrey Grimes Altivia Specialty Chemicals, LLC 1901 W. H Street LaPorte, Texas 77571 LORENA Digitally signed by LORENA VAUGHN V_A__U_G__H_N______15_:2_4:_07_-0_5'_00_' ____ Date: 2026.03.25 Regional Hearing Clerk U.S. EPA, Region 6