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Advisory Bulletin

EPA Offers Settlement for Air Emissions From Animal Feeding Operations

By David J. Ubaldi
[May 2005]

Citizen and environmental groups have been putting pressure on the U.S. Environmental Protection Agency (EPA) to deal with the alleged air emissions from animal feeding operations (AFOs). These groups have claimed that AFO emissions are responsible for a host of negative impacts, including offensive odors, decreased quality of life, and harmful health effects. They have used these claims to justify costly legal action against AFOs and to increase the regulatory pressure on agencies charged with overseeing their operations. They have convinced EPA that it needs to do something,1 but the fact is that no one—not even EPA—knows if air emissions from AFOs are really an issue. No one has compiled the data necessary to determine if an AFO’s emissions are above the applicable air quality thresholds.

To remedy this situation, EPA issued a Consent Agreement and Final Order (the “Agreement”), which will attempt to establish methodologies for estimating air emissions from AFOs. The Agreement will require participating companies from the egg, broiler chicken, turkey, dairy, and swine industries to fund a nationwide emissions-monitoring study. The study will focus on developing models for emissions from buildings or structures used to house livestock and store or treat livestock waste. Open air facilities like feedlots are not included as part of the study.


Participation

The Agreement is voluntary. Those companies choosing to participate will pay a civil penalty between $200 to $100,000 depending on the size and number of farms in the company’s operation. For example, a dairy farm with fewer than 700 cows or heifers will pay a $200 penalty, while a company with over 200 farms will pay a $100,000 penalty. Companies will also be required to contribute to a study fund that will provide the money necessary to collect data from representative farm sites around the country. It is anticipated that participating farms will each pay approximately $2,500 into the fund. EPA has set a July 1, 2005 deadline for AFOs to participate in the Agreement.


Limited Release

EPA is offering participating companies a limited release and covenant not to sue from liability for past and ongoing CAA, CERCLA, and EPCRA violations. This release will protect an AFO from federal liability for potential emissions during the projected 24-month monitoring study period and the subsequent 18-month data analysis and policy development period. Once EPA develops a method for estimating emissions collected from various AFOs, participating and non participating AFOs will be required to comply with all reporting and permitting requirements to the extent necessary. Any participating AFO that refuses to comply with EPA’s final decision, or that chooses to challenge the final methodology developed, will lose the benefits of the release and covenant not to sue and may become susceptible to regulations for past violations.


Agreement Does Not Provide Complete Protection

Companies considering participation in the Agreement need to know what the Agreement will not do:

  • The Agreement does not protect participating companies from suits brought by citizen and environmental groups under state odor and nuisance statutes or the citizen suit provisions of the CAA, CERCLA, or EPCRA. EPA does not have the authority to limit private citizens' rights to sue under these laws.

  • The Agreement does not protect participating companies from state or federal criminal prosecutions that could result from unreported releases or failures to comply with permitting requirements.

  • The Agreement does not protect participating companies from state or federal action to address imminent harm. EPA specifically reserves the right to investigate companies that it feels are substantially and imminently endangering human health and the environment.

  • The Agreement does nothing to prevent a state from bringing an action for violation of state environmental laws.


Is Participation Worth It?

Companies will need to determine on an individual basis whether it makes sense to participate in the Agreement. An important consideration would be whether an operation/AFO is likely to face claims and/or litigation for air emission-related issues. While the Agreement does not remove the threat of litigation from citizen and environmental groups, it does provide participating companies with valid equitable arguments that can be raised in their defense. The Agreement demonstrates that neither the agency nor operators can accurately estimate emissions from facilities or comply with existing permitting and reporting obligations until EPA develops a reliable methodology. Participating AFOs will be doing everything they can to address any potential emission while EPA conducts its monitoring study and develops its policy.

A copy of the Consent Agreement and Final Order can be found at EPA’s website: http://www.epa.gov/compliance/resources/agreements/caa/cafo-agr-050121.pdf.


FOOTNOTES

1 EPA is concerned that AFOs are emitting air pollutants like ammonia, hydrogen sulfide, particulate matter, and volatile organic compounds. If emitted in sufficient quantities, these substances may be regulated under the Clean Air Act (“CAA”), the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), and the Emergency Planning and Community Right-to-Know Act (“EPCRA”).


We invite you to contact us for more information:

David J. Ubaldi

Author:
David J. Ubaldi
Bellevue, Washington
(425) 646-6130
DavidUbaldi@dwt.com

Lynn Manolopoulos Lynn Manolopoulos
Bellevue, Washington
(425) 646-6146
LynnManolopoulos@dwt.com
       
Richard W. Elliott Richard W. Elliott
Bellevue, Washington
(425) 646-6140
RichElliott@dwt.com
   

This Environmental Law Advisory is a publication of the Environmental Law Department of Davis Wright Tremaine LLP. Our purpose in publishing this Advisory is to inform our clients and friends of recent developments in environmental law. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.

Copyright © 2005, Davis Wright Tremaine LLP.


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