[Federal Register Volume 66, Number 237 (Monday, December 10, 2001)]
[Notices]
[Pages 63696-63706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30459]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7114-8]


Equipment Containing Ozone Depleting Substances at Industrial 
Bakeries

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed bakery partnership program and request for 
comments.

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SUMMARY: In today's Federal Register the Environmental Protection 
Agency announces a unique voluntary Partnership Program for the baking 
industry. EPA believes that there are many bakeries that are leaking 
ozone depleting substances, including chlorofluorocarbons (CFCs), in 
excess of permitted levels, and therefore, intends to establish a 
voluntary program for reducing these emissions in an expeditious, 
highly cost-effective manner. This program generally requires 
participants to audit certain appliances and phase out Class I 
industrial process refrigeration appliances. It also provides 
incentives to replace existing appliances with non-ozone depleting 
systems, and requires compliance with the leak repair regulations.
    Participation in the partnership program is purely voluntary, and 
this is not a rule, but it does combine the advantages of 
predictability and

[[Page 63697]]

reduced penalties with incentives to move away from the use of ozone 
depleting substances (ODS). Participating companies will be asked to 
agree to phase out use of the more hazardous Class I ODS by July 15, 
2003, reflecting the fact that use of these substances is being rapidly 
phased out under existing rules. Bakeries that have installed non-ODS 
systems by March 15, 2002, can avoid all penalties under this 
agreement. Bakeries that install non-ODS systems after that date but no 
later than July 15, 2004 (unless an extension is granted) are limited 
to penalties of $10,000 per appliance. All other appliances must pay a 
per pound penalty for any leaks that cross a high threshold but again, 
this per pound penalty can be avoided by conversion to non-ODS systems. 
Companies already under national investigation for violations are not 
eligible to participate in this program. EPA solicits comments on the 
Bakery Partnership Program described below.

DATES: Comments should be submitted by January 9, 2002.

ADDRESSES: Comments should be submitted: Bakery Partnership Program 
Comments, the Docket Clerk, Enforcement and Compliance Docket and 
Information Center (Mail Code 2201A), Docket Number EC-2001-007, U.S. 
Environmental Protection Agency, Ariel Rios Building, 1200 Pennsylvania 
Ave, NW., Washington, DC 20460 (in triplicate, if possible). Please use 
a font size no smaller than 12. Commenters are encouraged to submit 
their comments electronically in lieu of or in addition to standard 
delivery, by sending those comments electronically to a separate email 
box established for the purpose of receiving comments and other notices 
under this Bakery Partnership Program: [email protected]. Attach 
electronic comments as an ASCii (text) file, and avoid the use of 
special characters and any form of encryption. Be sure to include the 
docket number, EC-2001-007 on your document. Comments may also be faxed 
to (202) 501-1011. In person, deliver comments to Enforcement and 
Compliance Docket and Information Center, U.S. Environmental Protection 
Agency, Ariel Rios Building, Room 4033, 1200 Pennsylvania Ave, NW., 
Washington, DC 20460. Persons interested in reviewing this docket may 
do so by calling (202) 564-2614 or (202) 564-2119.

FOR FURTHER INFORMATION CONTACT: Mr. Charles Garlow, Air Enforcement 
Division (2242A), U.S. EPA, 1200 Pennsylvania Ave NW., Washington, DC 
20460, telephone 202-564-1088.

SUPPLEMENTARY INFORMATION: Many industries, including most industrial 
bakeries, use ozone depleting substances [ODS], such as CFCs and 
hydrochlorofluorocarbons [HCFCs], to cool their products. Like other 
industrial sources, most industrial bakeries have industrial process 
refrigeration appliances that are subject to 40 CFR part 82, subpart F. 
The equipment that produces the product contains CFCs or other ozone 
depleting substances in jackets around the product. The equipment may 
sometimes leak these coolants in sizeable quantities into the air, not 
into the product. If certain leak rates are exceeded, the company may 
be required to retrofit or retire the equipment.
    EPA has concluded two large industrial process refrigeration 
enforcement cases, one of which involved a baking company with bakeries 
in several states. In both cases, the companies voluntarily chose to 
replace their industrial process refrigeration appliances with 
equipment designed to prevent pollution. The ozone depleting coolant 
was replaced by a cooling system which uses a secondary loop containing 
a cooling solution, glycol, that is not an ozone depleting substance. 
Although the primary loop of the refrigeration system may still contain 
some ozone depleting substances, the quantity is greatly reduced, and 
the ODS refrigerant is located where vibration and the potential for 
leaks is greatly reduced. The EPA wants to encourage all companies with 
industrial process refrigeration appliances that may be leaking to 
consider a similar pollution prevention approach to ensuring their 
compliance with the refrigerant recycling and emissions reduction 
regulations found at 40 CFR part 82, subpart F.
    EPA is inviting the baking industry to participate in a voluntary 
program to address these potential violations. It offers an expedited 
way for companies to correct past violations and prevent future ones, 
in return for a release from past liabilities and reduced penalties. 
The largest trade association representing bakeries accepted this 
invitation on behalf of its members. The total number of industrial 
bakeries is not exactly known yet, but it is believed that there may be 
over 1000 bakeries in the United States. Each bakery will likely have 
one or more industrial process refrigeration appliances that are 
subject to the regulations, such as mixers or chillers, at each bakery. 
Many of these industrial process refrigeration appliances, have already 
been converted to non-ODS, pollution prevention equipment.
    In the interests of promoting fast, efficient and widespread 
emission reductions, and better compliance with the regulatory 
structure, EPA intends to offer and enter into agreements with baking 
companies providing for the following:
     Audit their facilities;
     Identify problem areas;
     Pay a greatly reduced penalty, and propose solutions that 
will protect the environment; and,
     Ensure greater compliance with the refrigerant recycling 
and emissions reduction regulations found at 40 CFR part 82, subpart F.
    EPA's proposal offers clear and consistent terms to reduce 
uncertainty and eliminate the need for extended, individualized 
negotiations. Presented here are the basic elements, illustrations and 
a chronology of key steps that EPA and participants will be expected to 
take. The basic elements of the program are as follows:
     Notice to EPA. Bakeries not already the subject of a 
national enforcement investigation or action, and which have industrial 
process refrigeration appliances containing 50 pounds or more of ODS 
refrigerants, are eligible to participate. Companies intending to 
participate should notify EPA by March 15, 2002 and as soon thereafter 
as possible, but no later than March 30, 2002, identify the number of 
appliances to be audited. If some of the industrial process 
refrigeration appliances have been converted to non-ODS systems prior 
to March 15, 2002, a count of these appliances should also be provided. 
If, during the audit, a more accurate tally is obtained, an updated 
notice may be submitted at that time. Appendix A contains a sample 
notice of participation. It can be sent by electronic mail or hard copy 
mail, but electronic mail or e-mail is preferred.
     Annualized leak rate. For the purposes of this Partnership 
Agreement, the annualized leak rate shall be calculated for every 
instance in which refrigerant was added to the appliance. The leak rate 
shall be calculated by the formula agreed upon by EPA in the Compliance 
Guidance for Industrial Process Refrigeration Leak Repair Regulations 
under Section 608 of the Clean Air Act.
     Audit. Participating companies must audit up to June 15, 
2003, i.e., assess the compliance status of all their industrial 
process refrigeration appliances and facilities. They must then report 
to EPA a summary of their findings, by July 15, 2003. If a company 
complies with the program, EPA intends

[[Page 63698]]

to grant a release from civil liability for the matters identified and 
corrected, so long as reduced penalties are paid as described below. 
However, if violative conduct is not identified and corrected, EPA is 
not granting any release for such problems. Good faith participants in 
this Partnership Program will receive a release for the period of time 
prior to September 30, 2000, even though this period may not be 
audited. If a facility has installed non-ODS technology on any of their 
appliances prior to the March 15, 2002 start date for this partnership 
program, such an appliance need not be audited, and a complete release 
from civil liabilities and penalties will be granted for such 
appliances. By non-ODS systems, EPA means systems that contain no ODS 
at all [e.g. HFC systems or ammonia systems] or no ODS in the secondary 
loop, but may contain an ODS in the primary loop. Typically, the ODS in 
the primary loop [compressor] is a much smaller volume, and is not 
subjected to the vibration in the process areas that may cause greater 
leaks. If the primary loop contains less than 50 pounds of ODS, as is 
frequently the case, then the appliance is exempt from the leak repair 
regulations. It is still subject to other requirements such as the ``no 
venting'' requirement of 40 CFR 82.154(a).
     Class I appliances. All Class I appliances must be audited 
and converted either to a non-ODS system or to a system using an ODS 
with an ozone depleting potential [ODP] of less than 0.1. Class I 
appliances are those containing Class I controlled substances, listed 
in appendix A to subpart A of 40 CFR part 82, and include CFC 
refrigerants (e.g., R-12). Leaks from these Class I appliances are more 
damaging to the Earth's ozone layer than an equivalent amount of 
leakage from Class II appliances. The phaseout of the production of 
CFCs was completed as of December 31, 1995. Since the availability of 
CFCs will continue to decrease over time, EPA believes that this is a 
good time to switch to a less ozone-depleting technology. EPA estimates 
that the vast majority of appliances in this industry have already 
switched from using Class I ODS to either Class II or non-ODS systems. 
Participating companies must identify their Class I appliances and 
submit a plan for change/conversion to either the Class II ODS with an 
ODP of 0.1 or less, such as R-22, or to a non-ODS system. The audits 
must be completed and plans must be submitted to EPA by July 15, 2002. 
An Administrative Order on Consent [AOC] will incorporate a pledge to 
complete the audits of Class II appliances and to submit plans if 
needed, for those appliances by July 15, 2003 and pay penalties as 
specified in the agreement. EPA expects the plans for Class I 
appliances to be fully implemented by July 15, 2003, but may grant 
additional time in exceptional circumstances pursuant to 40 CFR 
82.156(i)(7).
     Class II appliances. All Class II appliances must be 
audited by June 15, 2003. Class II appliances are those containing 
Class II controlled substances, listed in appendix B to subpart A of 40 
CFR part 82 (including all HCFC refrigerants, such as R-22). If any of 
these appliances are being changed/converted to non-ODS systems, then 
plans to accomplish this must be submitted by July 15, 2003 as agreed 
to in the July 2002 AOC.
     CAFO. EPA will issue Compliance Agreement Final Orders 
[CAFOs] to participating companies that reflect the audit findings, 
implementation plans and schedule of corrections, any reduced penalties 
that must be paid and a release from civil liability conditioned on 
completion of the implementation plans and corrections. EPA will issue 
CAFOs at the completion of all audits in July of 2003. If a company has 
only Class I appliances, EPA will issue the CAFO in July of 2002. 
Companies must also commit to compliance with all regulations.
     Plan Implementation. By July 15, 2003 for Class I 
appliances and by July 15, 2004 for Class II appliances, all plans for 
equipment changes/conversions should be completely implemented, unless 
extensions are granted pursuant to 40 CFR 82.156(i)(7). EPA is still 
considering whether the proposal outlined above satisfies the Clean Air 
Act requirement that Section 113(a) administrative orders must require 
compliance within twelve months of their issuance.
     Program Completion. By July 15, 2004 or such later date 
that all conversions are completed, the participating company will 
notify EPA and EPA will respond with a confirmation letter 
acknowledging the completion of the Bakery Partnership Program.

Penalties

     Per appliance penalty. A penalty of $10,000 shall be paid 
for all ODS containing appliances, regardless of whether violations are 
identified or not, except that no penalties are due for any appliance 
converted to a non-ODS system before March 15, 2002. No bakery facility 
must pay more than $50,000 in these penalties. This penalty will be 
paid with other penalties no later than 30 days after receipt of the 
CAFO.
     Per pound penalties. Additional ``per pound'' penalties 
for all appliance leaks discovered during the audit, occurring after a 
35% annualized leak rate, must be calculated on a 12 month basis, 
beginning when the auditing period starts, i.e., September 30, 2000. At 
the end of the 12 month period following a 35% annualized leak rate, 
per pound calculations cease, unless a subsequent 35% annualized leak 
is discovered, in which case another 12 month period of calculation 
begins. Per pound penalty calculations end June 15, 2003.
     No per pound penalties for replacement with non-ODS 
system. Switching to a non-ODS system is encouraged. If a participating 
company agrees to replace an ODS system with a non-ODS system in an 
appliance, no ``per pound'' penalties need be paid for that appliance. 
If a company is facing high per pound penalties for a particular 
appliance but has decided that it does not make technical or economic 
sense for the company to convert that particular appliance to a non-ODS 
system, it may instead substitute another appliance[s] and still avoid 
the per pound penalties for the first appliance. The first appliance 
must still be brought into full compliance. This ``bubbled compliance'' 
concept would allow a company to substitute another appliance or 
appliances that have 120% of the full charge of the appliance that will 
not be changed/converted. For example, if a 1000 pound appliance has 
very high per pound penalties that the company wishes to avoid, it may 
avoid those penalties either by converting this appliance to a non-ODS 
system, or by converting one or more other ODS containing appliances 
[that were not already required to convert to non-ODS systems] which 
have a total charge of at least 1200 pounds. This could be one other 
appliance with a full charge of 1200 pounds or two appliances of 600 
pounds each or some other combination of appliances that total at least 
1200 pounds of refrigerant. If the two 600 pound appliances in this 
example had per pound penalties of their own, those penalties would 
still be due, unless some other appliance or appliances in turn were 
converted to non-ODS systems in their stead, at the 1.2 to 1 ratio, as 
above.
     Start-up period. No leaks will be counted as part of the 
per pound calculation for the period 60 days after a new installation 
or after an appliance is changed/converted to a non-ODS or lower than 
0.1 ODP system, as a ``start up'' period.

[[Page 63699]]

     Per pound amounts. Per pound penalties will be calculated 
per appliance as follows: $20 per pound for up to 500 pounds, $30 per 
pound for 501-1000 pounds and $40 per pound for the pounds over 1000 
for each 12 month period after a 35% annualized leak rate is 
identified.
    In summary, all sources must achieve and maintain full compliance 
with the refrigerant recycling and emissions reduction regulations 
found at 40 CFR part 82, subpart F. In addition, appliances using class 
I substances must be audited and changed/converted. Appliances using 
class II substances must be audited. Owners of Class I and II 
appliances may elect to convert to non-ODS to avoid paying fees for 
higher leaks. Each company will sign an Administrative Order on Consent 
[AOC] on or before July 15, 2002 and sign a Consent Agreement Final 
Order [CAFO] on or before July 15, 2003, which will specify a 
conditional waiver of liability. These are the main points of interest 
in this partnership agreement. There are some other minor details that 
are mentioned in the Partnership Agreement and the other Appendices, 
which should be self explanatory. Other approaches to achieving the 
objectives of this program were considered by EPA and the industry 
representatives, but this approach was chosen as being the best from 
the point of view of administrative ease of implementation and 
environmental improvement.
    Here is an example of what a participating company may encounter 
during participation in this partnership agreement: 
    If a participating company, is eligible and wants to participate, 
it should send a notice to EPA by March 15, 2002, identifying the 
company and its facilities and appliances. If this company has five 
bakeries and five appliances in each bakery, for a total of 25 
appliances, seven of which have been converted to a non-ODS system 
prior to March 15, 2002, then there will be a $10,000 penalty per 
appliance for the 18 ODS containing appliances. This company will, 
however, get a release from civil liability for all 25 appliances for 
problems identified and corrected. The company is best advised to pay 
particular attention to their Class I appliances, if any, as audits 
must be conducted and a decision on these appliances must be made by 
July 15, 2002. If there are four Class I appliances, they should be 
audited first to determine what ``per pound'' penalties may be due for 
these appliances. If the per pound penalties determined from this audit 
indicate that a large per pound penalty may be due for several of these 
appliances, then this may be persuasive in deciding to convert these 
appliances to a non-ODS system in order to avoid the per pound 
penalties. If, instead, the company chooses to convert some or all of 
the Class I appliances to a Class II ODS refrigerant with an ODP of 
less than 0.1, rather than a non-ODS system, then the per pound 
penalties will still be due and payable by 30 days after receipt of the 
CAFO, which should be shortly after July 2003. Auditing and calculation 
of per pound penalties should continue through June 15, 2003 to ensure 
continuing compliance and lowered emissions.
    By July 15, 2002, this company must prepare a plan and submit this 
plan to EPA, indicating which of the appliances are the Class I 
appliances, and what changes or conversions the company pledges to make 
to them, with a schedule for the work anticipated. The company should 
submit, along with the plans, the auditing summaries for the Class I 
appliances [see the sample below]. EPA will incorporate the plans for 
these four Class I appliances, along with the pledge to continue 
auditing the other appliances and to prepare and submit plans for them 
within a year in an Administrative Order on Consent [AOC] which should 
be signed by both the company, and then by EPA. EPA will return a copy 
of the signed AOC to the company.
    For the other Class II appliances, a similar audit of compliance 
should begin covering the period from September 30, 2000 until June 15, 
2003. Per pound penalties, if any, should be calculated for these 
appliances. As with the Class I appliances, if the company wishes to 
avoid paying these per pound penalties, it may do so by agreeing to 
convert the Class II systems to non-ODS systems. The company should 
make that decision and submit plans, if any, for such conversions to 
EPA by July 15, 2003. These plans will be incorporated in the CAFO. EPA 
expects that these plans will be implemented by July 15, 2004 with the 
possibility of extensions if additional time is needed.
    In calculating per pound penalties, this company should look at 
each appliance and calculate its per pound penalties, if any. If, for 
example, the first Class I appliance had a 50% annualized leak rate in 
October 2000 and thereafter in the next 12 months had small and large 
leaks totaling 1500 pounds, then the per pound penalty for these 1500 
pounds would be calculated as follows: $20 per pound for the first 500 
pounds or $10,000, $30 per pound for pounds 501-1000 or $15,000 and $40 
per pound for pounds 1001-1500 or $20,000. Thus, the total for this 12 
month block period would be $45,000 [$10,000 + $15,000 + $20,000]. If a 
large leak rate was discovered in December 2000, that does not start 
another 12 month block period up to December 2001, as this is a leak 
inside the October 2000-2001 12 month period. If after October 2001 
this same appliance had another annualized leak greater than 35%, for 
example, a 90% annualized leak rate, then leaks after that point would 
be calculated as above and added to the $45,000 total. This process 
should continue through June 15, 2003 and a total per pound penalty 
should be calculated for this appliance, and for all other appliances. 
The company then has the option of paying this per pound penalty or 
avoiding it by submitting a plan for converting to a non-ODS system. 
EPA hopes that this financial incentive will cause more companies to 
choose conversion to non-ODS systems while still giving the company the 
flexibility to decide which option is best for it.
    On July 15, 2003, the company should submit audit summaries and 
plans for any equipment changes/conversions that it intends to make to 
the Class II appliances. It should also be prepared to pay any 
penalties that may be due shortly after the CAFO is received by the 
company. EPA will also prepare a CAFO with the release from civil 
liability for all matters that the company has identified as being a 
potential problem and corrected. This listing of audit discovered 
problems can be included in the plan for equipment changes/conversions 
or can be listed separately. It can include matters such as technician 
certification, better recordkeeping systems, equipment certifications, 
etc. Problem areas, or violations, not so identified and corrected will 
not receive a release from liability, so it is very important to 
identify all these problem areas and correct all these problems.
    By July 15, 2004, the company will have completed the equipment 
changes/conversions, unless more time is needed and corrected other 
problems identified in the audit. The company will send a letter 
certifying that all these matters have been attended to and EPA will 
reply accepting this certification and thanking the company for 
participating. This is the end of the program for this company.

Key Dates

September 30, 2000

Begins period of compliance audit and monthly measurement of annual 
leak rates from industrial process refrigeration appliances for all 
partnership participants.

[[Page 63700]]

``Look-back'' period gives credit to companies that have taken steps to 
improve leak management.

March 15, 2002

    Notice of intent to participate in partnership program

--Companies must identify charging capacity and location of all 
appliances using over 50 lbs of Class I or Class II ozone depleting 
substances, and those which have converted to use of non-ODS 
refrigerant in secondary loop by March 15, 2002.
--Companies commit to complete audit and submit implementation plans by 
July 15, 2002, to convert Class I appliances to at least Class II, and 
to pay stipulated penalties or switch to non-ODS refrigeration 
appliances by July 15, 2003 (unless extension granted).
--All penalties waived for appliances that have been converted to non-
ODSs by March 15, 2002.
--Program open to all companies not subject of national enforcement 
investigation.

July 15, 2002

    EPA issues administrative order/information request on consent to 
participating companies reflecting commitment to complete audit by June 
15, 2003 and submit implementation plans for Class II appliances by 
July 15, 2003.
    Companies that have switched all appliances to non-ODS by March 15, 
2002 may receive compliance agreement/final order (CAFO) discharging 
all liabilities for past violations without payment of penalty.

June 15, 2003

    Audits are completed.

July 15, 2003

    Bakeries submit audit results and final implementation plans.
    Bakeries pay stipulated penalties for 12 months following any 
single month in which annualized leak rate exceeds 35%, but:

--Bakeries can avoid stipulated penalties if implementation plan 
commits to replace leaking appliance with non-ODS system no later than 
July 15, 2004 (unless program grants extension).
--Bakeries can ``bubble'' by substituting ODS conversion at another 
appliance (must have charge 120% greater than leaking appliance).

    All Class I ODS appliances must convert to at least Class II ODS 
appliances by July 15, 2003, unless program grants extension.
    EPA issues compliance agreement/final order reflecting conversion 
to Class II or non-ODS systems, and payment of stipulated penalties.

July 15, 2004

    Bakeries must complete conversion to non-ODS systems reflected in 
implementation plans, unless program has granted an extension.

Key Definitions

    Annualized leak rate--(pounds of refrigerant added/pounds of full 
charge)  x  (365 days/# days since refrigerant last added)  x  100%.
    Appliance--industrial process refrigeration device containing 50 
pounds or more of ODS refrigerants.
    Class I--an ODS listed in appendix A to 40 CFR part 82, subpart A.
    Class II--an ODS listed in appendix B to 40 CFR part 82, subpart A.
    ODS--ozone depleting substance.
    Facility--a discrete parcel of real property or such a parcel 
improved by Participating Company's building, structure, factory, 
plant, premises, or other thing, related to Participating Company's 
wholesale baking/bakery business, and containing at least one appliance 
as defined in this agreement.
    Non-ODS system--systems that contain no ODS at all [e.g. HFC 
systems or ammonia systems] or no ODS in the secondary loop, but may 
contain an ODS in the primary loop.

Additional Sources of General Information

    To find out more about compliance with Title VI of the Clean Air 
Act, access the EPA's web site at www.epa.gov/ozone. The U.S. 
Environmental Protection Agency (EPA) and the Chemical Manufacturer's 
Association (CMA) have developed a guidance document entitled 
Compliance Guidance For Industrial Process Refrigeration Leak Repair 
Regulations Under Section 608 of the Clean Air Act [see http://www.epa.gov/ozone/title6/608/compguid/compguid.html] that provides 
greater detail than the discussion on the EPA web site. The guidance 
document is intended for those persons who are responsible for 
complying with the requirements. The guidance should not be used to 
replace the actual regulations published in the Federal Register on 
August 8, 1995 (60 FR 40420) [see http://www.epa.gov/spdpublc/title6/608/leakfrm.txt] ; however, it can act as a supplement to explain the 
requirements. Reliance on this fact sheet alone will likely not result 
in compliance. Another useful web site is one pertaining to general 
leak repair: http://www.epa.gov/ozone/title6/608/leak.html. EPA has 
also made available a sample inspector's checklist to the trade 
association, which is available online at http://www.epa.gov/ozone/title6/608/compguid/compguid.html or http://www.epa.gov/oeca/ore/aed/bakery/index.html or by contacting the Ozone Hotline at 800-296-1996.

Conclusion

    EPA believes that the above-described program is the best, most 
cost-effective way to achieve immediate environmental improvement and 
achieve significant progress in resolving the myriad compliance 
concerns that may be present in this industry. Its terms, conditions 
and protections will be available only to those companies that are 
eligible and elect to participate. As appropriate, non-participants may 
be subject to enforcement actions in which significant penalties would 
be sought for violations of the part 82 regulations at issue here.
    Comments on the approach outlined above, as well as on the specific 
items and terms reflected in the following Appendices, are solicited. 
To be fully considered, comments must be received by January 9, 2002.

Eric Schaeffer,
Director, Office of Regulatory Enforcement, Office of Enforcement and 
Compliance Assurance.
Attachments
Partnership Agreement with Appendices:
Sample Identification of Facilities/Appliances due March 15, 2002
Sample AOC
Sample CAFO

Ozone-Depleting Substance Emission Reduction Bakery Partnership 
Agreement

    The United States Environmental Protection Agency (``EPA'') and 
____________ (``Participating Company''), the parties to this 
agreement, desire to enter into and be bound by the terms of this 
Ozone-Depleting Substance (ODS) Emission Reduction Bakery Partnership 
Agreement (``Agreement'').

Introduction

    The Agreement specifies an audit, self-disclosure and corrective 
action program, which shall result in a release from liability for the 
conditions that are identified and corrected. This Agreement 
incorporates the features of the Bakery Partnership Program as detailed 
in the Federal Register on this topic, published January ____, 2002.

[[Page 63701]]

Applicability

    1. This Partnership Agreement shall apply to and be binding upon 
both EPA and Participating Company, including but not limited to its 
officers, directors, agents, servants, employees, successors, and 
assigns. Participating Company shall give notice of this Agreement to 
any successor in interest prior to the transfer of any ownership 
interest in any machinery subject to Title VI, Clean Air Act (42 U.S.C. 
7671 et. seq.) (the ``Act'') and its incorporating regulations, 40 CFR 
Part 82 (``Regulations''). The Notice for this Program (``Program 
Notice'') was given to the baking industry by the EPA in cooperation 
with baking industry trade officials and trade journals.
    2. In order for a Participating Company to be eligible to 
participate in this Agreement, the Participating Company must be a 
wholesale bakery not currently under corporate-wide investigation by 
EPA for a violation of Title VI of the Clean Air Act.

Definitions

    3. ``Participating company'' means any eligible company and its 
wholly-or partially-owned subsidiaries, including all their bakeries, 
which agree to abide by the conditions of this Agreement.
    4. ``Corporate-wide investigation'' means an investigation that 
requires information disclosure from either (1) five or more facilities 
owned by a company that seeks to be a Participating Company or (2) all 
facilities that are subject to Title VI and owned by a company that 
seeks to be a Participating Company.
    5. ``Non-ODS system'' means pollution prevention technology 
recommended to and agreed upon by EPA that supplants standard ODS 
technology, including but not limited to glycol, chilled water, or 
other non-ODS coolant in a secondary-loop system or totally non-ODS 
systems, such as HFCs or ammonia.
    6. ``Facility'' means a discrete parcel of real property or such a 
parcel improved by Participating Company's building, structure, 
factory, plant, premises, or other thing, related to Participating 
Company's baking/bakery business, containing at least one appliance.
    7. ``Retrofit'' means to install new or modified parts in an 
appliance which were not provided as a part of the originally 
manufactured equipment. The retrofitted appliance must use a 
refrigerant with an ozone depleting potential that is lower than that 
which was used before the retrofit.
    8. ``Retire'' means to withdraw an appliance from service and 
replace it with an appliance containing a refrigerant with an ozone 
depleting potential that is lower than that which was used in the 
retired appliance.
    9. ``Appliance'' means an industrial process refrigeration 
appliance containing 50 pounds of more of ODS refrigerant that is 
housed within the facility.
    10. ``ODS'' means Ozone Depleting Substance used as a refrigerant.

Initial Notice

    11. Participating Company represents that:
    a. It notified EPA of Participating Company's intent to participate 
in the Ozone Depleting Substance Emission Reduction Bakery Partnership 
Program by 5 p.m. Eastern Time, March 15, 2002 by submitting this 
executed Partnership Agreement.
    b. Annex A, submitted with this Agreement, or updated shortly 
thereafter, is a true, accurate, and complete identification of:
    i. Name of the Participating Company; and
    ii. Name, street address, ZIP code, and city of each facility at 
which the Participating Company believes any subject appliance is 
presently located; and
    iii. State in which the facility is located; and
    iv. EPA region in which the facility is located; and
    v. The number or best estimate of the number of appliances with 
more than 50 pounds of refrigerant when fully charged, as determined by 
calculation, weight, manufacturer supplied information, or an 
established range as described in 40 CFR 82.152.
    vi. The number or best estimate of the number of non-ODS industrial 
process refrigeration appliances.
    c. Participating Company certifies that it is eligible to be a 
participating company, that is, it meets the qualifications specified 
in paragraphs 2 and 3.
    d. Participating Company agrees to audit all its facilities as 
specified below and disclose the summary results of such audits to EPA 
and correct any and all violations in accordance with this Agreement.
    e. Participating Company agrees to toll the applicable statute of 
limitations during the life of the Agreement that may apply to the 
violations that may have occurred within the time period five years 
prior to the signing of this Agreement.
    f. In the event that ownership of a facility subject to this 
agreement is (or was) transferred during the period covered by the 
agreement, the agreement shall apply to the former owner for the period 
during which the facility was owned by the former owner, provided all 
applicable terms and conditions are otherwise satisfied. The agreement 
shall also apply prospectively, according to its terms, to the party to 
whom the facility is transferred, if the new owner provides EPA with 
written confirmation of intent to comply with the agreement.

Audit Conduct, Report and Plans

    12. Participating Company agrees to assist EPA with EPA's review of 
audit results. Such assistance may take the form of responding to 
telephone calls for clarification and other reasonable informal 
inquiries, without the need for formal information demands.
    13. Participating Company agrees to identify all facilities with 
applicable industrial process refrigeration appliances.
    14. Participating Company agrees to undertake a reasonable 
investigation and to the extent it can reasonably assemble such 
information, report to EPA for each applicable appliance, dates of 
service, beginning September 30, 2000 and continuing until June 15, 
2003; pounds of refrigerant added; days since the last addition of 
refrigerant; percent annualized leak rate; and any associated comments 
by using a spreadsheet such as the one contained in Annex C. To the 
extent that a change in system components, such as a new compressor, 
may have altered the full charge, or where other special conditions 
arise, these conditions should be noted in the comments section.
    15. Participating Company agrees to complete audits of all 
industrial process refrigeration appliances at each facility, except 
for those appliances converted to a non-ODS system prior to March 15, 
2002, and notify EPA with a summary of the audit results as specified 
in the preceding paragraph and corrective actions planned, as 
necessary, by July 15, 2002 for Class I appliances and by July 15, 2003 
for Class II appliances. Participating Company may, at its sole 
discretion, include commercial and comfort cooling appliances subject 
to 40 CFR 82.156(i) in the audit for compliance and receive a release 
from liability for problems identified and corrected.
    16. Participating Company agrees to calculate the total per 
appliance and per pound penalties, if any, due and owing by July 15, 
2003 in accordance with the method outlined in the Federal Register 
final announcement of the Bakery Partnership Program, and to submit 
this calculation to EPA.

[[Page 63702]]

    17. Participating Company agrees to provide, in writing, by July 
15, 2003, the steps that Participating Company will take to achieve 
continuous compliance with the requirements of 40 CFR Part 82. Such 
measures may include, but are not limited to, such things as training, 
record keeping, replacement, repair, installation of non-ODS systems. 
See Annex E for additional required Compliance Plan elements. 
Participating Company agrees to implement this Plan.

Audit Compliance Program

    18. For all Class I appliances Participating Company will complete 
an audit and submit plans for the retrofit of these appliances with an 
ODS having an ozone depleting potential of 0.1 or less or retirement/
replacement with a non-ODS system. Plans for these Class I appliances 
must be submitted by July 15, 2002, with a schedule for the completion 
of these activities within one year, unless additional time is allowed 
pursuant to 40 CFR 82.156(i)(7). These plans will be incorporated in an 
Administrative Order on Consent [AOC]. See Annex B.
    19. For Class II appliances, Participating Company will sign an 
Administrative Order on Consent agreeing to develop, within the next 
twelve months, plans, where needed, for the replacement of these Class 
II appliances with non-ODS systems.
    20. If any appliance within a facility owned by Participating 
Company contains a refrigerant that is not an EPA-approved refrigerant 
for that particular end-use (such as R-409A use in an industrial 
process refrigeration appliance) or is not in compliance with use 
restrictions of an approved refrigerant, Participating Company must 
take immediate steps to properly recover said refrigerant from the 
appliance (in accordance with the Regulations) and replace it with an 
approved refrigerant, in accordance with any use restrictions. 
Recovered refrigerant must be sent to an EPA-certified refrigerant 
reclaimer for ultimate reclamation or disposal.

Certification of Complete Compliance

    21. Participating Company shall sign and submit to EPA a 
Certification of Complete Compliance (Annex D) when all plans, 
retrofits and other steps necessary to ensure continuous compliance 
have been finalized.

Employee Participation

    22. Participating Company shall provide a procedure for its 
employees to report violations or potential problems to the auditing 
team. Participating Company agrees to ensure that employees who 
disclose violations or potential violations to the auditing team under 
the Act and the Regulations are not subject to adverse job actions 
(including without limitation disciplinary action, denial of promotion, 
bonuses or pay) on the basis of such employee disclosing such 
violations or potential violations in accordance with company policies.

Participating Company Records Retention

    23. Participating Company agrees to keep and retain on site or 
readily available any and all records from March 15, 1999 until two 
years after the conclusion of all obligations under this Agreement. 
Records for appliances that have been converted to non-ODS systems need 
not retain records for more than three years prior to the completion of 
the conversion to the non-ODS system. Such records shall be from both 
Participating Company and its employees, agents and any contractors 
working for Participating Company. All records are required to be 
retained for this period of time to facilitate review by EPA, should 
EPA choose to conduct such a review. Participating Company agrees to 
notify all employees, agents and contractors that any such record is 
not to be destroyed.

Penalties

    24. A ``per appliance'' penalty of $10,000, with a cap of $50,000 
per facility, shall be due and owing for each industrial process 
refrigeration appliance that contains greater than 50 pounds of ODS 
after March 15, 2002. A ``per pound'' penalty, as specified in the 
above-referenced Federal Register notice, shall be calculated for each 
appliance, unless equipment conversions to non-ODS systems eliminate 
this penalty.
    25. The total penalty shall be paid within 30 days of receipt of 
the CAFO which should be shortly after July 2003.

Forbearance

    26. EPA agrees to forbear on Part 82 enforcement activity against 
Participating Company during the course of this Agreement. EPA may 
however, inspect and request information to ensure that the audits are 
being conducted fully and properly.
    27. Participating Company understands that any violations 
discovered by EPA subsequent to the completion of the audit or 
compliance efforts and/or the expiration of this Agreement are subject 
to standard regulatory enforcement. That is, nothing in this Agreement, 
other than the release from civil liability for problems/violations 
disclosed and corrected, is to the derogation of EPA's full enforcement 
and compliance authority at the conclusion of the Partnership.
    28. EPA does not forbear or relinquish any right to access and 
inspection under this agreement.
    29. If EPA believes that the Participating Company has 
miscategorized or mischaracterized any problem/violation under this 
Agreement, the Dispute Resolution section of this Agreement shall be 
utilized.

Release From Liability/CAFO

    30. Participating Company understands and acknowledges that 
participation in the Program will not absolve Participating Company or 
its employees from any criminal liability. Good faith compliance 
efforts with this program, as always, will be considered in the context 
of any alleged criminal liability.
    31. EPA agrees to execute an administrative Consent Agreement Final 
Order conditionally releasing Participating Company from civil 
liability for any and all violations or potential violations that have 
been self-disclosed and corrected, on condition that Participating 
Company pays penalties that may be due and completes the plans with 
compliance schedules that have been submitted and agreed upon by the 
Participating Company and the EPA. A complete release from civil 
liability will be granted for any appliance that is converted to a non-
ODS system. Good faith participants in this Partnership Program will 
receive a release for the period of time prior to September 30, 2000, 
even though this period may not be audited.
    32. EPA and Participating Company will execute an Administrative 
Compliance Order on Consent and CAFO confirming that understanding.

Publicity

    33. Participating Company may publicize that it is partnering with 
the EPA in an effort to reduce ODS emissions.
    34. Upon request by the Participating Company, EPA will recognize 
and acknowledge Participating Company's participation and assistance 
under the Program.

Access and Inspection

    35. Without prior notice, any authorized representative of EPA 
(including a designated contractor), upon presentation of credentials 
at any of Participating Company's facilities, may enter such 
location(s) at reasonable

[[Page 63703]]

times to determine compliance with this Agreement. Access under this 
clause is subject to the normal health and safety and confidentiality 
requirements in effect at such facilities.

Dispute Resolution

    36. Should the need arise, Participating Company agrees to first 
engage in informal dispute resolution with EPA's Air Enforcement 
Division staff concerning any determination made by EPA in its review 
of the program. Such informal dispute resolution will consist of 
negotiations between Participating Company and the designated 
attorney(s) and/or Division Director of the Air Enforcement Division at 
the address in paragraph 41. To exercise informal dispute resolution, 
Participating Company shall send a written notice to EPA outlining the 
nature of the dispute or disagreement and request informal negotiations 
to resolve the dispute. Such period of informal negotiations shall not 
extend beyond thirty (30) days from the date when the notice was 
received, unless the parties agree otherwise in writing.
    37. Should the Participating Company be dissatisfied with the 
results of the informal dispute resolution, the Participating Company 
may request that the dispute be elevated to the Director of the Office 
of Regulatory Enforcement or the Assistant Administrator of the Office 
of Enforcement and Compliance Assurance, Headquarters US EPA, to 
determine the outcome of the dispute or disagreement. As part of any 
such dispute elevation, the Office of Air and Radiation staff and 
managers will be consulted. Participating Company agrees that elevation 
within EPA is the sole and final dispute resolution mechanism. [EPA is 
exploring additional ways to resolve disputes such as Alternative 
Dispute Resolution with a third party].

Effective Date

    38. This Agreement shall become effective upon the date signed by 
the parties to this agreement (below).

Miscellaneous

    39. Nothing in this Agreement will relieve the Participating 
Company of its obligation to comply with any other Clean Air Act 
provision, other environmental law, or applicable environmental 
regulations, either state or Federal.
    40. Participating Company agrees to accept service from EPA by mail 
with respect to all matters relating to this Agreement at the address 
listed below (if different from the one listed in Annex A).

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    41. EPA agrees to accept service from Participating Company by mail 
with respect to all matters relating to this Agreement at the address 
listed below

Electronically preferred: [email protected]

or

Title VI Coordinator, Attention: Charlie Garlow, US EPA Air Enforcement 
Division, 1200 Pennsylvania Ave NW., Mail Code 2242A, Washington, D.C. 
20460,
202-564-1088

Integration

    42. This Agreement and the Annexes and Federal Register notice 
incorporated by reference in this Agreement, represents the final form 
of the contract between EPA and Participating Company. No oral 
modifications to the Agreement will be binding upon either party.

Signatures

    43. EPA and the Participating Company represent that they have 
examined this agreement and the attached and incorporated annexes and 
Federal Register notice and agree to the terms by signing and dating 
below.
    44. Each person signing this Agreement represents that he or she is 
authorized to legally bind the party on whose behalf he or she is 
signing.
    45. Agreed To:

BY--------------------------------------------------------------------

[Participating Company]

DATE:-----------------------------------------------------------------
BY--------------------------------------------------------------------

U.S. Environmental Protection Agency

DATE:-----------------------------------------------------------------

Annex A--Sample Identification of Facilities

----------------------------------------------------------------------------------------------------------------
                                                                                              Number of ODS-
 Participating company/facility name     Location, mailing           State        Region  containing and non-ODS
                                         address, city, zip                                appliances, if known
----------------------------------------------------------------------------------------------------------------
Marvy Bread/Plant 4.................  123 Main St, Lodi 94588  CA..............        9  15 ODS, 5 non-ODS.
----------------------------------------------------------------------------------------------------------------

Annex B--Sample Administrative Order on Consent

United States Environmental Protection Agency
In the Matter of [Participating Company] Respondent. Bakery 
Partnership Program, Agreement Number ____________

Findings and Order

    Pursuant to Sections 113(a)(3) and 114 of the Clean Air Act 
(``CAA''), consistent with the Bakery Partnership Program identified 
above and entered into between the United States Environmental 
Protection Agency (``EPA'') and Respondent, and based upon available 
information, EPA hereby makes and issues the following Findings and 
Order, with the expressed consent of Respondent:

Findings

    1. Respondent is a Participating Company under the above-identified 
Bakery Partnership Program.
    2. EPA promulgated regulations for the control of Ozone Depleting 
Substances, appearing in 40 CFR Part 82, Subpart F.
    3. Respondent owns or operates certain affected equipment under 
Part 82 that contains or contained Ozone Depleting Substances, at 
facilities identified in Attachment A attached hereto.

Order

    4. Respondent shall retrofit or replace the referenced equipment as 
specified in Attachment A by the date(s) there indicated. Where 
additional time may be required to complete these actions, application 
to EPA shall be timely made pursuant to 40 CFR 82.156(i)(7).
    5. Within 12 months of this Order, Respondent shall prepare and 
submit to EPA plans for the conversion of Class II appliances to non-
ODS systems, for the appliances identified in Attachment B, attached 
hereto.
    6. Consistent with the Bakery Partnership Agreement entered into 
between EPA and [the Participating Company], per appliance and per 
pound penalties shall be calculated and submitted to EPA by July 15, 
2003.
    7. Pursuant to Section 113(a) of the CAA, failure to comply with 
this Order may lead to a civil action to obtain compliance or an action 
for penalties.

Issued this ________ day of ____________, 2003

----------------------------------------------------------------------
U.S. Environmental Protection Agency


[[Page 63704]]


    8. [Participating Company] consents to the issuance of this Order 
and further agrees not to contest EPA's authority to issue this Order.


Signed this ________ day of ____________, 2003

----------------------------------------------------------------------
For [Participating Company]

Annex C--Leak Rate Calculation Sheet for each Appliance--Sample

    Beanie Bread/ Plant 4. The Appliance Serial Number 456789 
containing 350 pounds full charge of R-22.
    The leak rate is calculated by dividing the number of pounds added 
by the full charge [here 350 pounds].
    Then multiply that number by 365 days.
    Then divide that number by days since the last add.
    Multiply that number by 100 to express it as a percentage, if over 
35%.

------------------------------------------------------------------------
                               Days since   Leak rate
      Date        lbs added     last add    (percent)       Comments
------------------------------------------------------------------------
10/28/00.......          112         base  ...........
2/20/01........           60          115           54
2/27/01........           14            7  ...........
5/31/01........           30           93           33
6/18/01........          166           18          961
12/3/01........          100          168           62
                                                        Total pounds
                                                         added since
                                                         high leak
                                                         rate=310 pounds
                                                          x  $20 per
                                                         pound=$6200,
                                                         the ``per
                                                         pound''
                                                         penalty.
------------------------------------------------------------------------

Annex D--Certification of Completion and Compliance

    I certify, based on personal inspection, that correction of the 
violations/problems identified as a part of the Bakery Partnership 
Agreement with the United States Environmental Protection Agency, dated 
________, is complete.
    I certify that ____________, Participating Company, has corrected 
all violations, and training, recordkeeping, equipment replacement, and 
all other necessary and prudent measures have been taken to ensure 
complete compliance with Title VI, Clean Air Act (42 U.S.C. 7671 et 
seq.).
    I certify that the following summary of the actions taken are true 
and complete:
----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    I certify that I am an officer of ____________, Participating 
Company, and am duly authorized to sign and complete this Certification 
of Compliance on behalf of Participating Company.
----------------------------------------------------------------------
Name (print)

----------------------------------------------------------------------
Signature

----------------------------------------------------------------------
Date

Annex E--Compliance Plan Required Elements for Appliances 
Containing Greater than 50 pounds of a Class I or Class II 
substance

    A. Each Participating Company will have at least one employee in 
each facility responsible for ensuring compliance with the refrigerant 
Compliance Plan.
    B. Only technicians certified in accordance with 40 CFR Part 82 
will perform refrigerant-related service on refrigerant containing 
appliances.
    C. Technicians will use/ have available for use and use, as 
required, recycle/recovery equipment certified pursuant to 40 CFR 
82.156.
    D. Repairs to refrigerant-leaking appliances will be conducted 
within the time frames outlined in 40 CFR 82.156.
    E. Initial verification tests on industrial process equipment will 
be conducted following any refrigerant-related repairs.
    F. Follow-up verification tests on industrial process equipment 
will be conducted within thirty days of any refrigerant-related 
repairs.
    G. Leak rates will be calculated (a) when refrigerant is added to 
appliances containing greater than 50 pounds of a class I or class II 
substance and (b) when the follow-up verification test reveals an 
unsuccessful repair.
    H. Procedures documenting what additional action will be taken as a 
result of a failed repair will be written.
    I. Each Participating Company will maintain the following records 
in a single location at each facility:
    1. An inventory of appliances containing greater than 50 pounds of 
a class I or class II substance and their refrigerant capacities.
    2. A unique identification for each appliance containing greater 
than 50 pounds of a class I or class II substance.
    3. Date the refrigerant-related service is performed on each 
appliance containing greater than 50 pounds of a class I or class II 
substance.
    4. Type of refrigerant-related service performed on each appliance 
containing greater than 50 pounds of a class I or class II substance.
    5. Amount and type of refrigerant added to each appliance 
containing greater than 50 pounds of a class I or class II substance.
    6. Name of the technician performing work on each appliance 
containing greater than 50 pounds of a class I or class II substance.
    7. A copy of the technician certification card for all technicians 
performing work.
    8. Refrigerant purchase records.
    9. A copy of the recycle/recovery equipment owner's certification.
    J. Each participant will provide refresher training on the 
refrigerant compliance program annually for facility personnel 
responsible for oversight of maintenance and service of refrigerant-
containing appliances.
Sample CAFO
United States Environmental Protection Agency
Washington, D.C.
In the Matter of: [Participating Company] Respondent. Docket No. 
CAA-HQ-2003-XXX

Consent Agreement and Final Order

I. Preliminary Statement

    1. The United States Environmental Protection Agency (``EPA'') and 
[Participating Company] have entered into a voluntary Bakery 
Partnership Agreement, pursuant to which an audit of compliance status 
and self-correction program has been undertaken. It was further agreed 
by the parties that certain civil penalties would be paid pursuant to 
the administrative authority of Section 113(d) of the Clean Air Act 
(``CAA), 42 U.S.C. 7413(d).
    2. This Consent Agreement and Final Order [CAFO] is issued pursuant 
to the authority of 40 CFR 22.13(b), 22.18(b)(2) and (3), which pertain 
to the quick

[[Page 63705]]

resolution and settlement of matters without the filing of a complaint.
    3. This Consent Agreement and Final Order resolves the liability 
for violations that may have been discovered pursuant to an audit of 
the Respondent's facilities regarding compliance with Title VI of the 
Clean Air Act, Stratospheric Ozone Protection, and more particularly 40 
CFR Part 82, Subpart F, relating to recycling and emissions reductions 
from appliances containing ozone depleting substances.

II. Consent Agreement

    4. As a result of the voluntary audit conducted pursuant to the 
Bakery Partnership Agreement, EPA and Respondent have agreed to resolve 
this matter by executing this Consent Agreement.
    5. For the purpose of this proceeding, Respondent does not contest 
the jurisdiction of this tribunal, consents to the assessment of the 
civil penalty as specified below, and consents to implement the 
corrective action Plans and Other Conditions, attached hereto.
    6. The execution of this Consent Agreement is not an admission of 
liability by Respondent, and Respondent neither admits nor denies any 
specific factual allegations contained herein. EPA alleges that one or 
more of the conditions contained in the attached Summary of Audit 
Findings constitutes a violation of 40 CFR Part 82.
    7. As a complete settlement for all problematic conditions 
specified in the attached Summary of Audit Findings, Respondent hereby 
agrees to pay to the United States a civil penalty as specified in the 
attached Penalty Calculation. EPA agrees to conditionally release 
Respondent from civil liability for the conditions, and only those 
conditions, identified in the attached Summary of Audit Findings, 
except for those appliances that are identified as having been or being 
converted to non-ozone depleting substances, for which a complete 
release of civil liability is granted. This release is conditioned upon 
the satisfactory completion of the Plans and Other Conditions attached 
hereto, and the timely payment of the civil penalty. Good faith 
participants in this Partnership Program will receive a release for the 
period of time prior to September 15, 2000, even though this period may 
not be audited. The parties agree that the attached Summary of Audit 
Findings, Penalty Calculation and Plans and Other Conditions are 
incorporated herein by reference and made a part of this CAFO.
    8. Respondent waives its right to request an adjudicatory hearing 
on any issue addressed in this Consent Agreement.
    9. Respondent and EPA represent that they are duly authorized to 
execute this Consent Agreement and that the parties signing this 
Agreement on their behalf are duly authorized to bind Respondent and 
EPA to the terms of this Consent Agreement.
    10. Respondent agrees not to claim or attempt to claim a federal 
income tax deduction or credit covering all or any part of the civil 
penalty paid to the United States Treasurer.
    11. Respondent and EPA stipulate to issuance of the proposed Final 
Order below.

[Participating Company], Respondent
By
(Print name)
Title:
Dated:----------------------------------------------------------------
U.S. Environmental Protection Agency, Complainant

By

Headquarters EPA

Dated:----------------------------------------------------------------

III. Final Order

    It Is Hereby Ordered and Adjudged as follows:
    12. Respondent shall comply with all terms of the Consent 
Agreement.
    13. For the reasons set forth above, Respondent is hereby assessed 
a penalty in the amount of $____________ .
    14. Respondent shall pay the assessed penalty no later than thirty 
(30) calendar days from the date a conformed copy of this Consent 
Agreement and Final Order (``CAFO) is received by Respondent.
    15. All payments under this CAFO shall be made by certified check 
or money order, payable to the United States Treasurer, mailed to: U.S. 
Environmental Protection Agency, (Washington D.C. Hearing Clerk), P.O. 
Box 360277, Pittsburgh, Pennsylvania 15251-6277. A transmittal letter, 
indicating Respondent's name, complete address, and this case docket 
number must accompany the payment. Respondent shall file a copy of the 
check and of the transmittal letter with the Headquarters Hearing 
Clerk.
    16. Failure to pay the penalty assessed under this CAFO may subject 
Respondent to a civil action pursuant to Section 113(d)(5) of the CAA, 
42 U.S.C. 7413(d)(5), to collect any unpaid portion of the assessed 
penalty, together with interest, handling charges, enforcement 
expenses, including attorneys fees, and nonpayment penalties. In any 
such collection action, the validity, amount, and appropriateness of 
this order or the penalty assessed hereunder are not subject to review.
    17. Pursuant to 42 U.S.C. 7413(d)(5) and 31 U.S.C. 3717, Respondent 
shall pay the following amounts:
    a. Interest. Any unpaid portion of the assessed penalty shall bear 
interest at the rate established pursuant to 26 U.S.C. 6621(a)(2) from 
the date a conformed copy of this CAFO is received by Respondent; 
provided, however, that no interest shall be payable on any portion of 
the assessed penalty that is paid within 30 days of the date a copy of 
this CAFO is received by Respondent.
    b. Attorney Fees, Collection Costs, Nonpayment Penalty. Pursuant to 
42 U.S.C. 7413(d)(5), should Respondent fail to pay on a timely basis 
the amount of the assessed penalty, Respondent shall be required to 
pay, in addition to such penalty and interest, the United States' 
enforcement expenses, including but not limited to attorney fees and 
costs incurred by the United States for collection proceedings, and a 
quarterly nonpayment penalty for each quarter during which such failure 
to pay persists. Such nonpayment penalty shall be ten percent of the 
aggregate amount of Respondent's outstanding penalties and nonpayment 
penalties accrued from the beginning of such quarter.
    18. This document constitutes an ``enforcement response'' as that 
term is used in the CAA Penalty Policy for the purposes of determining 
Respondent's ``full compliance history'' as provided in Section 113(e) 
of the CAA, 42 U.S.C. 7413(e).
    19. Each party shall bear its own costs, fees, and disbursements in 
this action.
    20. The provisions of this CAFO shall be binding on Respondent, its 
officers, directors, employees, agents, servants, authorized 
representatives, successors and assigns.

    It Is So Ordered.
    Dated this ________ day of ____________, 1999.
----------------------------------------------------------------------
Environmental Appeals Judge
Environmental Appeals Board
U.S. Environmental Protection Agency

Certificate of Service
    I certify that the forgoing Consent Agreement and Final Order was 
sent to the following persons, in the manner specified, on the date 
below:

Original hand-delivered: Eurika Durr, EAB Hearing Clerk, U.S. 
Environmental Protection Agency, Mail Code 1103B, 607 14th Street NW., 
Suite 500, Washington, DC 20005
Copy by certified mail, return receipt requested:


[[Page 63706]]


 ____________ Registered Agent for
[Participating Company]
[Participating Company's address]
Dated:----------------------------------------------------------------

U.S. EPA--------------------------------------------------------------

Sample Summary of Findings

Annex C--Leak Rate Calculation Sheet for each Appliance--Sample

    Marvy Bread/Plant 4. The Appliance Serial Number 456789 containing 
350 pounds full charge of R-22.
    The leak rate is calculated by dividing the number of pounds added 
by the full charge [here 350 pounds].
    Then multiply that number by 365 days.
    Then divide that number by days since the last add.
    Multiply that number by 100 to express it as a percentage, if over 
35%.

----------------------------------------------------------------------------------------------------------------
                                                          days since   Leak rate
                   Date                      lbs added     last add    (percent)              Comments
----------------------------------------------------------------------------------------------------------------
10/28/00..................................          112         base  ...........
2/20/01...................................           60          115           54
2/27/01...................................           14            7  ...........
5/31/01...................................           30           93           33
6/18/01...................................          166           18          961
12/3/01...................................          100          168           62
                                                                                   Total pounds added since high
                                                                                    leak rate = 310 pounds  x
                                                                                    $20 per pound = $6200, the
                                                                                    ``per pound'' penalty.
----------------------------------------------------------------------------------------------------------------

    Technician Certifications for two technicians, Joe Jones and Sam 
Spade, at Plant 4 were missing.
    Those certifications are now on file.
    Service records before September 2000 were missing.
Sample Penalty Calculation
    Marvy Bread Plant 4 The Appliance Serial Number 456789 containing 
350 pounds full charge of R-22.
    Per pound penalty: $6,200--waived as this machine is being 
converted to non-ODS.
    Per appliance penalty: 10,000.
    Total Penalty: 10,000.
Sample Plans and Other Conditions
    Beanie Bread agrees to convert the Bun Mixer at Plant 4, Serial 
Number 45678, to a non-ODS system.
    Completion date: July 30, 2004.
    Beanie Bread agrees to develop a computer based recordkeeping 
program to ensure that complete and accurate records are retained as 
required.
    Completion date: September 30, 2003.

[FR Doc. 01-30459 Filed 12-7-01; 8:45 am]
BILLING CODE 6560-50-P