Document x5ma00vzN8Z0N76kNX1K2LGd6

FILED 23 JUL 24 PM 02:55 REGIONAL HEARING CLERK UNITED STATES ENVIRONMENTAL PROTECTION AGENCY EPA REGION 6 REGION 6 1201 Elm Street, Suite 500 DillliJs, Texas 7527.Q In th~ Ma~t of Docket No. TSCA-06-2024-6171 Respondents. CONSENT AGREEMENT AND rlNALOROER Preliminary S t a t e m e n t The U.S. Environment.:!! ProtE?ction Agency. Region 6 (,;EPA.. o r "Complainant), :,nd D;we Chako~ and Carye West (""Respond~nts,.) have agreed to a settlement of th is action before the filfng of a comp1aint, :and thus this action ls simultaneously commenced and conduded pursuant to Rules 22.13(b) and 22.18(b)(2) of the Consolidated Rutcs or Praclic~ Gove rninB the AdministrMive An es:i.menl of Civil Penalt ies .:md the RevOG1tion/Termination or Su.spension or Permits, 40 c.F.H. 22.13(b) and 22.18{bJ(2). Jurisdi ctio n 1. This proceeding Is an ;:,dmlnisttutr.c action ror the assessment of civil penaltres initiated purs~nt to Section 16(a) of th@ Toxic Suh~tantes Control Act ("'TSCA}. 15 U.5.C. 261S(a}. 2. This Con.sent Agreement and Final Order serves as notic-e that the EPA has rea~n to believe that Responde nts h:u violated Section 409 or TSCA, lS U.S.C. 2689, by falling to comply with the reeu latory requirements of 40 C.F.R. Part 745. Subpart F. Dis.closure of Known Lead-Ba.s.ed Paint and/or LeacH5ased Paint Hazards Upon Sale or Lease of Residential ~-- - ~ .... ..... .., .. . . .. ., - - - r . ..1 11n"' - ''- ,... .,.. . 1J .,,. , , ...... "' -' n. ,... ... , . ....., Reductlon Act of 1992, 42 U.S.C. 4852d. In th~MarurafDcn:r Clal:Q~m,d Coryr JJ'a: Doci~t No. TSCf--06-lOU-Mi l P,utles 3. Com:Plainant is the Director of Enforcement and CompDance Ass-urance Division of the? EPA. Region 6, a.s duly delegated by the Administrator of the EPA and the Regional Administr.nor, EPA. Region 6. 4. Respondents ilrn Dave Olakos and carve West, the property owners of the reSidence at 1807 Inverness, Austin, Texas 7874S. Statuto_r;v and Rttul2t.ory 8-Kground S. TSCA was i!mended with the Residential Lead-Based Paint Hazard Reduction Act of 1992 (the Act), 42 U.S.C. 4851 to 4856, with the addition of Title IV- L~ad Exposure Reduction. Section 401 to 412 of TSCA. 15 U.S.C. ~ 2681 to 2692. Section 1018 of the Act required the EPA and the Department of Housing and Urban Development to jointly issue regulation requirlns the disclosure cf known lead-based p.1int and/or lead-based paint hazards by people selling or leasing housing constructed prior to 1978. 6. The regulations, issued Marm 6, 1996, and codified at 40 C.F.R... Part 745 Subp1lrt F, r~uirc that sellers and lessors of mo-st resld~nlial houslng built bcfor<? 1978: :J) disdosc the presence of known lead-based paint and/or lead-based paint harards in the target housing; b) provide purchasers and lessees with any available records or reports ~ertaining to the presence of lc~d-b:)sed paint :Jnd/or lc~d-b;)SCd p~int haz.1rds; cl provide purch,>sers and lessees with a federally approved leild hiilziilrd information pamphlet; d) provide purchase~ with a lo-day opportunity to conduct a risk assessment or inspection for the pres.ence or lead-l:ias.ed paint and/or lead~based paint h;uards befom th~ purchaser Is obligated under any purchase In I"-f' .\laurrofD.rnc Cham.r atrdCaryt: ff'at DocJn f ,o. TSc.A-06-WU-6171 contract; and e} indude certai n dlsdosure and acknowledgment language in the sal~ or ,~~sing contract. 7. The requi rements set forth in the regulations at 40 C.F.R. Part 74S, Subpart F, ilPPIV to all sales or leases or target hou.slnc, unless otherwise excluded .1s s.et forth in 40 C.F .R 745.]0l. 8. The regulation at 40 C.F.R. 74S.118(e) provides that failure or refusal to comply with 40 C.F.R. 745.107 {disdosure requlrements), 745.110(cv:.lu:itlon}. 745.113 (certiflc:,tion :.nd :,cknowlcdgtmcnt), or 745.115 (agent re5ponsibilitics), is a violation of ScctJon 409 of TSCA. 15 U..S.C. 2689. Section 409 of TSCA. 15 U.5.C. 2689, provides that it shall be unlawful for anv per.son to fail to c,omp(ywith, tnter alla, any provision of 40 C.F.R. P.art 74S. Subpart F. 9. Section 16{a) of TSCA, 15 U.S.C. 261S{a). authorizes a civil penalty of not more than $37,500 for each violation of S~ction 409 ofTSCA; 15 U,S.C, 2689. This maximum penalty omount I~ limited by Section 1018(b}(S} of tha RMidential lead-Based Paint Hazard Reduction /\ct of 1992, 42 U.S.C. 4852d{bUS); which limits penatties for violation~ of 42 U.S.C. 4852d(bUS), assessed under Seelion 16 of TSCA, 1S U.S.C. f 2615, to not more than $10.000 per vlolalion. E.Jch day that such a violation continues constitutes a separate violation of 5cction 409. The Debt Collection Improvement Act of 1996, 31 U.S.C:. 3701, and its implementing rcgul:itions nt 40 C.F.R. Part 19, increased the statutory m3X:imum pcnaltv to $18,364 for In 1hr Ma-uuof~ Cl:ams aJUi CtJl'.'l' H'o1 Docld .Yo. TSCA--05-1014-6Jl J violations that occurred after November 2, 2015, and for which penalties arc assesstd on or after February 12; 2022 Definitions 10. The regula tion at 40 C.F.R. 745.103 dcfin'!S '"tareet housinEr as any housin6 constructed prior to 1978, citcept housfng for the elderly or persons with disabilities (unless any chnd who is lcs.s than 6 years or age resides or is expected to reslde in such housing} or any Obedroom dwelling. 11. Thet regulation at 40 C.F.R. 745.103 dennes "less.or" M .::iny entity that ,offers targe t housing for leil~, rent, or sublease, induding but not limited to individuals, partnerships, corporations, trusts. gmremment .igcncics. housing agencies. IndIan tribes, ond nonprofit organizations. 12. The regulation at 40 C.F.R. , 74S.103 defines iessee as any entity that enters Into an agreement to lea.s-e1 rent. or sublease target housing. Including but not lfmitcd to individuals, p,artncrshlps, corporations, trusts, govNnmcnt agencies. housing agencies, l ndian tribes, and nonprofit organizations. 13. TIU! regulation at 40 C.F.Fl. 74S.103 d~flncs. "owner"' as any entity that has 1eg~1 title to target housing, ini:luding but not limited to individuals, partnerships, corporations, trusts, government age.noes, housing agencies, Indian tribes. ,md nonprofit organizations, e.11.ccpt where:, mort s.)g~~ holds legal tille to property serving ~s coUatcr~I f'or a mortgage loan. in which case the owner would be the mortgagor. In tire .\Iarur ofDane. Chala.r wuI Cary-r J-t'n1 Dodn No n'CA ' >6-207<1-6171 EPA Findings of !=act.ind Cor,dusons of Uw 14. Pursuant to S&tion 11 o! TSCA.15 U.S.C. 2610, the EPA rec.ef-ved a compl aint t o eval uate Respondcntr compliance w ith TSCI~. 15. On August08, 2023, the EPA te-teivetl a compliant related to Rc-spondent.s' ICM ~ or the Property. 16. On Augu st 25. 2023, EPA requested, and Respondents provided documentation and information c.oncemine Respondents' compftance with TSCA and the ,~.ad disclosure r c q u i rem e.nts. 17. Ouring the EPA's compliance review~and at all t i ~ rererr@d t.o tierein, Respondents were engaged i.n the lease of target-housing, as defined by 40 C.F.R. 74S.103. 18. Responde nts .uc. and at all times rererred to herein wcr~. a "1~or"", as defined by '10 C.F.R. 74S. 103. 19. From on or about April 27-August 14, 2023,. Rc.spondents cnt~rcd Into ;ion~- vcar contr.1ct to lease lh~ t arget housing located at 1807 Inverness in Austjn, Texas (the Property). 20. The Prop<Jrty w.is construttcd before 1978. 21. , he Property is tarect housing"' as deflne-d by 40 C.f.R. 74 S.103. 22. On November 9, 2023, Respondents sold the Property. 23. On Dt?scember 14. 2023, the EPA s.cnt Respondents a Notice of Potential V,olatlon and Opportunity to Confer letter. On February 21, 2024, the EPA respc,nded to the documentation and information received from Respondents as~ rMult or th<? opportunity to confor and articulated the EPA's position c.oncemin& Respondents' compliance with TSCA. lr. Int' J!d!L:T of[)a,." C'lt6ot0." ~ Ca1ye Ifest Dockn J\'o. TSCA --06-1014-61i I 24. As a result Qf the EPA inspection and additional informati on obtained by the EPA, Compl~inant has determined that violations of t h!? '10 C.F.R. 7-15. Subpart f and Section 409 of TSCA, 1S U.S.C. 2689, have oc:'1Jrred. EPA Findings of Viofation 25. The facts stilted in th e EPA findings of Fact .1nd Condu~lon1 of Law above .are herein lncorpor.ltcd. 26. Complainant hereby states and alleges th-3't Respondent$ h3ve violated TSCA and federal reeul.a1i ons ptomulg,mx:J thereunder as follows: Count 1 27. Purs~nt to 40 C.F.R. 745.107(a)(1). the scll~r or lei.Sor shall provide the purchuer or lessee wrth an EPA.:,pproved lead hazard inro,malion pamphlet before the purchaser or lessee is obllgatfrd under any contract to purchase or lease tar&et housing th.Jt is not an otherwise exemp~ transaction. 28. Respondents fulled to provide the ,~cs of the Property wi th t he EPA-approved lead hazard information pamphlet before the lessees were obligated under the contract to lease thc Property. 29. Respondents' farlure to provide the EPA-approved le-ad hazard information pamphlet to the lessees of the Property is a violation of 40 C.f.R. 745.107(.i)Cl} and Scrtion 409 ofTSCA, 15 U.S.C. 2689. Count2 30. Pursuant to 40 C.f .R. 745.113(b). e.ach con lract to lease tareet housing shall include. as an attachment or wfthln the contract, the clements requir ed by 40 C.F.R. -~ P;igc6 of J.t 745,113{b)(l) through (b}(4). In tile .\!4Jur of Dcnr Oalr:i,r msJ CAr}"r U'r.tt Dc,c-id ,\'o. 1SCAM-W U -6/ 7I 3L Resp0ndents f-ailed to intlude in contract to lea~ the Property, asan attachment or wlthln the contract, the elements required by 40 C.F.R. ~ 745.113(b){l) through (b)[4). 32.. RMpondents" failure to include the elements required by 40 C.F.R. 74S.113(b)(l) through (b)(4) in th~ con1ract for the lease of the Property is~ vtolatlon of 40 C.F.R. ?4S.113(b) and Section 409 of TSCA, 15 U.S.C. 2689. CONSENT AGREEMENT 33. For the purpose of this procecdil'lg. as re-quired by 40 C.F.R. 22.1a[bl(2), Re.spondenll; a . admrt the jurisdictional allegations set forth herein; b. neither admit nor dt ny the spcclnc f.lctu.ll illlegalions stated herein; c. cons.ent to the assessment of a civil p(maltv, as stated here rn; d. consent to the issuance of anv specified compli~nco or corrective action order; e.. c.on:s.ent to any conditions specified herein; f. cons.ent to any stated Permit Action: g. Wilivc .my right to conte-5t the allegations set forth herein; and h. waive its rights to appeal the Fin.al Order accompanying this Consent Agreement. 34. Respondents c.on.sent to the issuance of thcs Consent Agreement and Fina[ Order and consents ro-r the purposes or settlement to the payment or the civil pen.lily specifted herein. Irr I~ .\ ta.tur oflJa.y Cha);o.ir al'Uf Cary'li! Jror Dod:rt ,'\o. TSGC-06-WU 6171 35. Respondents and EPA agree to conciliate this matt er without the nec~ssity of a formal hearine ar.d to b<?ar their rc-sp~ctive co-sts and attorneys' fees. P~nalty Payment 36. Re:spondents aeree that, in settlement of the claims aneeed herei n, Rcs.pond~nts shall pav a civil penalty of three hund,ed and fifrv dollars (S350.00), as set rorth below. 37. EPA ha.s considered the appropriateness of the penalty pursuant to Section 16{a){2)(B) or TSCA, 15 U.S.C. 261S(a](2l(B) and has dctermined that based on substantk1ted .ability to pay inform;ition, the ~ppropriate penal ty for the "roliltlon is thrtt hundred and fifty doll;:ns to be pJld within thirty (30) days or receiving notice of the effective date of the Final Order. 38. R~sp.ondcnts shall pay the p"Cnalty within thirty (30) davs of r eceiving notice of the effectjve date ofthQ Final Order~ Such payment shall identify Respondents by name and docket numberand shall be by certified or cashier's ched: made p.1yabte to the -unite-d Suites Tre.asury" and sent to: U.S. Envirurimental Protection Ag~ncy Fines .md Penalties Cincinnati Financ-e Center PO Box 979078 St. Louis, M~ss"uri 63197-9000 or by ~l temate payme.nt method described at http;//www.epa.gov/financial/makcpaymcnt. 39. A copy of the chedc or other fnform.1tlon confirming payment 1hall simultaneously be 5':!nt by electronic mail to the fonowing: lorcna S. Vaughn Regional Hearing Clerk U.S. Environmental Prot~tion Agency. Region 6 1201 Elm Street. Sui te S00 (ORC) l Dall-as, Texas iS 2i0-2102 vaughn.lorena @cpa.gov; and In thli'Marzu of D.:n-r Cnaln.r ar.d Ca')'f' Wc-u DrKht no ISC-A-Wr-20U ..(,J71 Stan Lancaster Enforcement and Compliance Assurance Division Toxics Enforcement Section U.S. Environmental Protection Agency, Relon G 1201 Elm Street , Suite 500 (ECOST) Oallas, Texas 75270-2101 lancast er.stan@epa.gov 40. Respondents understand that its failure to timely pay any portion of the ci'III penalty may result in the commencement of a civil action. in F~do-r-al District Court to recover the full remaining ba~ nce, along with penalties and accumulated interest.. In such case, Interest shaUbegin to accrue on a civil or stipulated penalty from the date of delinquency until such crnl or stipulated penalty ~nd ~my ~ccrued interest are paid in full. 31 C.F.R. 901.9(b)(1). lntcrest will be assessSed ilt a rate of the United States Treasury Ta-K and loan rates in accordance with 31 U.S.C. , 3717. Additionally, a charge will be asses-sed to cover the costs of debt collection lnduding pnxuslng :and h:indling COits, and ~ non-payment penalty charge of sEx pNcc nt (6%) per ye.ar compounded annualty will be .assessed on .any portion or the debt which remains detrnquent more than ninety {90) days after payment is du~ 31 U.S.C. 3717(e){2). 41, Pursu~nt to 26 U.S.C. 60S0X ilnd 26 C.F.R. l .GOS0X-1, EPA is r equired to send to the Internal Revenue Service ("IRS..) annually, a completed IRS Form 1098-F ("Fines, Penalties, and Other Amount~) with respect to any court order or s.cttlcment agrccm<'n t (Including ildminlstrntive ~ttl@m~nts),th.at require a pilyor to pay an aggregate amount that EPA reasonably believes will be equal to, or in excess of, S50,000 for the payer's violation of any i::iw or the inve1tiR:ltlon or inquiry into the p3yor's pot.ent~J violation of ~nv law, induding amounts paid for "restitution or rcrncdiat.ion of ptopeny" or to come "'into compliance with a In rl-u:J,!mu:r o/fkn'F' Cirnk,.~cu.a Cary< ,lfCTC Docket,\o TSCA.JJ6.W1-'-617I law." EPA is further re<;uired to furnish a wrrtten statement. whim provides the same information prov1de-d to the IRS, to each p~vor(i.e.,~ copy or IRS Form 1098-F). failure to comply with pro1J1ding IRS Form W-9 or Tax Identificati on Number ("'TIN"}, a.s described b~low, may subject Respondents to a penalty, p,er 26 U.S.C. 6723, 26 U.S.C. 6724{d)(3). and 26 C.f.R. 301.67231. In order to prov1d,e EPA with .sufficient lnformatfon to c-n_ablt! it to fulfill these obllg.atlons, EPA here]n requlre.s, and Respondents herein agree, that: a. Rc.spom!ents shall complete an IRS Form W9 C-ReQucst for T~payt'.lr tdentifleatlo" Numb~t .a"d CertineaHon"I, which is .ivailable .it htt_Q_s://www.lrs.gov/pub/irs-pdf/fv.'9.pdf; b. Respondents shall therein certify that its completed IRS Form W9 includes Respond~nt5' correct TIN or that Respo ndents have applied and 15 waiting for issuance of a TIN; Respondents shall email their o:impleted Form W-9 to EPA's Oncinnati Finance Center at chalifo1,,1x.jesslca@epa.gov w ithin 30 davs after th~ Flnal Order ratifying Chis Agreement is filed, and EPA recommends encrypting IRS Form W-9 email corrcspondenrn; and c. In the event that Respond~nts have certified in its completed IRS Form W9 that it has applled for .aTIN and that TIN has not been issued to Respondents w ithin 30 d.,ys .iftcr the e(fecttvc dilte, then Res.pondents, using the same email addr~ identified in the preceding sub-paragraph, r,hall further. i. Notjfy E.PA's Cincinnati Rnance Center of this fact, via email, within m tJ-.z ~ ofDa,-r C1rn.hn mu! 021y- Hat Doc:frt ,\'o. 'fS('A.iJ6.i01'-61iI 30 days after the effective date -of this 1Order; and ii. Provide EPA~ Cincinnati Fln;incc CcntMwith Re:s90ndent's TIN, via email, withln five (5) days of Resp,ondent"s iS5Uance and receipt of the TIN. E-ffc:ct of Sttt!ement and R.,5-f'mtion of Rlghts 42. Full pavment of the p~;ilty proposed in this Consent Agte.ement shall onfy resolve Respondents' liability for federal c.Ivil penalties ror the violations 31leeed hcr~in. Complain-ant res.erves the right to take ~ny -cnforccment accion with respect to any other vio1atlons of TSCA or any other applicable law_ 43. The effect of settlement de.scribed in the immediately prccedine paragraph ls conditlon~d upon the ~ccuracy or Re~pondent1 rcpre~ntatlons to tha EPA, as memorialized in paragraph directly below. 44. Respondents certify by the slenine of this Consent Agreement that It is presenttv In compliance with all requirements of TSCA and its Implementing regulations. 45. Full payment of th~ pen.alty proposed in this Consent Agreement shall not in any case affect the rieht of the Agency or the United States to pursue appropriate injunctive or oth~r equitable relief or crlmln.il sanctJons for anv violation$ of law. This Consent Agreement and Final Order does not waive, extinguish, or otherwise a.ffect Re5pondents' obligation to comply with all applicable provi$ions of TSCA ;,nd regut3tions promulg.1ted thereunder. 46. Complainant reserves the right to Cflforce the terrm and conditions of this Consent Agre,ement and Final Order. ln th~3/aau ofDas~ Clu1l:o'f IV4 Car:,o,r -at Doclrn,\o. TSC.A-06--2014--617I G,n,r.l Provisions i!7. By $inine this Con~~l'lt Agreement, the undersigned rcpresentiltive of R~spondenu certify that they are fulty authorized to execute and enter into the terms and conditions ofthis Consent Agreement and has the legal capacity to bind the party It represents to this Consent Agreement. 48. This Consent Agreement shall not dispose of the proceeding without a final order from the Regional Judicial OfficerO( Regional Administr.nor r~tifying the terms of this Consent AgreemenL ihls Cons.ent Agreement and Fln;,I Order shall be cffoctivie upon the rmns of the Finill Order by the Regional Heating Cletk for EPA, Region 6. Unless otherw1se stated, all time periods stated hereln shall oo calculated in calendar days from such date. 49. The penalty spo-c:ificd htrcin shall represent civil penalties MSCSSed by EPA ilnd shall not be deductible for purposes of Fedaral,State, and local ta,ces, so. This Consent Agr~ment and Finill Order shall apply lo and be binding upon Respondents and Respondents" agents, sutcessot s and/or assigns. Aespondents 5hall e-nsure that all contractors, employees., consultants, firms. or other persons or entities acting for Respondents with respect to matters Included hNcln comply with the tC!rms of thls Consent Agreement and Final Order. 51. The EPA and Respondents aeree to the use of electronic signatures for this m~tter pursuant to 110 c.t=.R. 22.6. The EPA and Respondents further ~grcc to clectronlc service of this Consent Agreement and final Order by email to the following: To EPA: mcdonold.oshtcy@rpa,qov To Respondent: 1;orycwcst@hotmc;1.ccm; and ddralms@qma;/.com '"'~ 1: 0(14 RESPONDENTS Dave Ch:,kos and Cirye West In thr .\JanuafDatT 0.tJl.or ~ Cory"t' We.rt Doc-Jxt .Vo. rsCA..JJ6. W U -617/ By. QCLv:J ( j ~rfnd Signat ures ~ ~"\J- C ~"l)S' and P.rint Names Titles COM PLAINANT U. S. ENVIRONMENTAL PROTECTION AGENCY Date: July 22, 2024 Digitally signed by CHERYL SEA GER Date: 2024.07.22 10:52:16 -05'00' Cheryl T. Se:,ger Olre<.tor Enforcement and Compliance Assurance Oivision U.S. EPA. Re&ion 6 In thr .\!an.u ofDm-e 0.tWJS and C'.ai)i:- HQt Dodd ,\o. TSCA .fJ6.lON~6 Ii I FINAL ORDER Pursuant to Section 16(3) of TSCA, 1S U.S.C. 2615(a); and th~ Coruo!idated Rules of Practice Governing the Admlnistrative Assessment of (Ml Penalties and the Revocation/ Termination or Suspension of Pennits. 40 C.F.R. Part 22, the foreeolng Consent Ag,~emQnt resolving this mauer ls hereby r'1t1fitd 3nd incorpor.,ted by reference Into this Final Order. Respondents are ORDERED to comply with all of the terms of the Consent Agreement. In accordance with 40 C.F.R. 22.31(b), the effective d:ite of the foregoing Con~nt Aarccmcnt and thfs Fio3l Order is tha date on whi,ch this Fln,11 Order is nlcd with the Regional 1-fea,ring Clerk. This final Order shall resolve only those causes of action alleged in the Consent Agreement. Nothlog in this final Ordet shall be construed to waive, extinguish, or otherwise affect Respondents' (ortheir officers, agents, servants, employees, successors, or assigns) obligation to comply with all appliGJble fodera1, state, and local statutes and resulations, includrne the rcgul~Uons th;:it wcr~ the subject of this action. IT JS SO ORDERED. THOMAS RUCKI Digitally signed by THOMAS RUCKI Date: 2024.07.23 13:58:12 -04'00' Thomas Rucki Regional Judicial Officer Date CERTIACATEOF SERVICE I certify thac a true and cone-ct copy of the foregoinB Consent Agrttmcnt and Final Order was delivered to the Regional Hearing derk, U.S. EPA, Region 6, llOl Elm Street, Daltas, Texas 75270-2102, and thata true and correct copy was sent this day in the followinn manner to the addressee.s: Copy via Email to Complainant'. Mcdonatd.ashlf?Y@tPi!JtOY Copy vlil Email to R~spondcnt: CaryeWest c.arvewe$t@hotmail.com D~ve Chakos dcha kos@gm:Ji1.com / J' f Siencd Office of Regtonal Counsel U.S. EPA, Region 6 l