Notices to Comply (NTC) and Notices of Violation (NOV)

1. Notices to Comply (NTC)and Notices of Violation (NOV) March 22, 2006 Peter Moore Yorke Engineering, LLC 949-248-8490 x24 PMoore@YorkeEngr.com

2. Agenda • Preparation • When the Inspector Comes • Dealing with Notices to Comply • Dealing with Notices of Violation

3. Preparation: Self-Audits • Conduct systematic self-audits to identify potential problems • Go through each permit requirement • Go through each rule requirement • Document your findings • Make corrections!

4. Preparation: Get Organized • Have a copy of your current permit in a 3 ring binder • Keep all current and previous permits organized in files • Create a facility map showing equipment locations • Keep organized files of submitted reports • Organize your records • Electronic and hardcopy

5. Preparation: Organize Records • Rule 109 VOC logs • RECLAIM reports • Annual Emission Reports • Natural gas bills • Tune-up records for boilers • Maintenance records • Source test reports

6. Preparation: Organize Records • CEMS records • Calibration records • Electronic transmissions • Calculation of CEMS missing data; What days, how you calculated • Maintenance records • Calibration gas certificates

7. When the Inspector Comes • Inspectors have a legal basis to inspect equipment and records • Treat the inspector with respect and understanding for their job • Provide documents quickly • Make copies of any requested records

8. Notice to Comply (NC or NTC) • “Fix it" ticket issued for minor administrative or paperwork violations that involve no, or minimal, emissions. • Examples • Incomplete records • Permit not posted near the equipment • Typically have two weeks to comply. • If the recipient fixes the problem, no additional action. • No fine associated with a Notice to Comply. • However, if the problem is not fixed by the deadline, AQMD may issue a Notice of Violation

9. Dealing with Notices to Comply • Understand the problem • Read the permit condition(s) cited • Read the specific rule or regulatory requirement • Follow deadlines provided • Fix the problem and document compliance • All correspondence should be in writing • Get help if you need!

10. Notice of Violation (NOV) • This type of ticket is issued if the facility has failed to comply with an AQMD rule or permit, or a state air pollution regulation • Often involves emissions of some kind • Each day or part of a day that you are in violation is a separate violation • Facility is required to correct the problem • There is usually a fine or penalty

11. What happens when you are issued an NOV? • Forwarded to AQMD's District Prosecutor for handling • Staff from prosecutors office will review your case • Several factors determine whether a violation is handled as a civil case by AQMD or referred for review as a potential criminal case to a law enforcement agency (i.e. District Attorney) • Among these factors are the: • Extent of harm caused by the violation • Type and length of the violation • Intent that led to the violation and • Frequency of past violations

12. Minor Source Penalty Assessment Program • Cases involving lesser offenses or companies with no prior violations are usually handled under AQMD's Minor Source Penalty Assessment Program • Facility and AQMD agree on actions to comply with clean air rules • Negotiate penalty • Settlement is reached without involving attorneys or the courts • If your case is considered appropriate for this program, you will receive a letter or phone call from an investigator in AQMD's District Prosecutor offering to settle your violation • Settlement terms usually call for a penalty payment and written proof of current compliance

13. Penalties • According to the California Health and Safety Code, penalties in the most egregious cases can be assessed against individuals in an amount up to $250,000 per day per violation, and against corporations in an amount up to $1,000,000 per day per violation.  Criminal sanctions may also be involved. • Actual penalties tend to be far less, depending on the circumstances, such as how bad the violation was, whether the business owner knew the law was being violated, and whether anyone was injured.

14. Dealing With Notices of Violation • Understand the problem • Read the permit condition(s) cited • Read the specific rule or regulatory requirement • Follow deadlines provided • Document correspondence in writing • You may have to shut down equipment to avoid further violations or increased fines • Apply for a variance if you need to continue operating • Get professional help (i.e. an attorney)

15. Resources for Help • Talk to your Account Executive (AE) • For permitting assistance • For equipment information • For incentive programs • Call The Gas Company’s Air Quality AnswerLine with any combustion related air quality question! • 800-GAS-2000 or • 562-803-7428