Laws: Cases and Codes : U.S. Code : Title 42 : Section 7420


   
U.S. Code as of: 01/19/04
Section 7420. Noncompliance penalty

    (a) Assessment and collection
      (1)(A) Not later than 6 months after August 7, 1977, and after
    notice and opportunity for a public hearing, the Administrator
    shall promulgate regulations requiring the assessment and
    collection of a noncompliance penalty against persons referred to
    in paragraph (2)(A).
      (B)(i) Each State may develop and submit to the Administrator a
    plan for carrying out this section in such State. If the
    Administrator finds that the State plan meets the requirements of
    this section, he may delegate to such State any authority he has to
    carry out this section.
      (ii) Notwithstanding a delegation to a State under clause (i),
    the Administrator may carry out this section in such State under
    the circumstances described in subsection (b)(2)(B) of this
    section.
      (2)(A) Except as provided in subparagraph (B) or (C) of this
    paragraph, the State or the Administrator shall assess and collect
    a noncompliance penalty against every person who owns or operates -
    
        (i) a major stationary source (other than a primary nonferrous
      smelter which has received a primary nonferrous smelter order
      under section 7419 of this title), which is not in compliance
      with any emission limitation, emission standard or compliance
      schedule under any applicable implementation plan (whether or not
      such source is subject to a Federal or State consent decree), or
        (ii) a stationary source which is not in compliance with an
      emission limitation, emission standard, standard of performance,
      or other requirement established under section 7411, 7477, 7603,
      or 7412 of this title, or
        (iii) a stationary source which is not in compliance with any
      requirement of subchapter IV-A, V, or VI of this chapter, or
        (iv) any source referred to in clause (i), (ii), or (iii) (for
      which an extension, order, or suspension referred to in
      subparagraph (B), or Federal or State consent decree is in
      effect), or a primary nonferrous smelter which has received a
      primary nonferrous smelter order under section 7419 of this title
      which is not in compliance with any interim emission control
      requirement or schedule of compliance under such extension,
      order, suspension, or consent decree.

    For purposes of subsection (d)(2) of this section, in the case of a
    penalty assessed with respect to a source referred to in clause
    (iii) of this subparagraph, the costs referred to in such
    subsection (d)(2) shall be the economic value of noncompliance with
    the interim emission control requirement or the remaining steps in
    the schedule of compliance referred to in such clause.
      (B) Notwithstanding the requirements of subparagraph (A)(i) and
    (ii), the owner or operator of any source shall be exempted from
    the duty to pay a noncompliance penalty under such requirements
    with respect to that source if, in accordance with the procedures
    in subsection (b)(5) of this section, the owner or operator
    demonstrates that the failure of such source to comply with any
    such requirement is due solely to - 
        (i) a conversion by such source from the burning of petroleum
      products or natural gas, or both, as the permanent primary energy
      source to the burning of coal pursuant to an order under section
      7413(d)(5) )1(! of this title or section 1857c-10 )1(! of this
      title (as in effect before August 7, 1977);

        (ii) in the case of a coal-burning source granted an extension
      under the second sentence of section 1857c-10(c)(1) )1(! of this
      title (as in effect before August 7, 1977), a prohibition from
      using petroleum products or natural gas or both, by reason of an
      order under the provisions of section 792(a) and (b) of title 15
      or under any legislation which amends or supersedes such
      provisions;
        (iii) the use of innovative technology sanctioned by an
      enforcement order under section 7413(d)(4) )1(! of this title;
        (iv) an inability to comply with any such requirement, for
      which inability the source has received an order under section
      7413(d) )1(! of this title (or an order under section 7413 of
      this title issued before August 7, 1977) which has the effect of
      permitting a delay or violation of any requirement of this
      chapter (including a requirement of an applicable implementation
      plan) which inability results from reasons entirely beyond the
      control of the owner or operator of such source or of any entity
      controlling, controlled by, or under common control with the
      owner or operator of such source; or
        (v) the conditions by reason of which a temporary emergency
      suspension is authorized under section 7410(f) or (g) of this
      title.

    An exemption under this subparagraph shall cease to be effective if
    the source fails to comply with the interim emission control
    requirements or schedules of compliance (including increments of
    progress) under any such extension, order, or suspension.
      (C) The Administrator may, after notice and opportunity for
    public hearing, exempt any source from the requirements of this
    section with respect to a particular instance of noncompliance if
    he finds that such instance of noncompliance is de minimis in
    nature and in duration.
    (b) Regulations
      Regulations under subsection (a) of this section shall - 
        (1) permit the assessment and collection of such penalty by the
      State if the State has a delegation of authority in effect under
      subsection (a)(1)(B)(i) of this section;
        (2) provide for the assessment and collection of such penalty
      by the Administrator, if - 
          (A) the State does not have a delegation of authority in
        effect under subsection (a)(1)(B)(i) of this section, or
          (B) the State has such a delegation in effect but fails with
        respect to any particular person or source to assess or collect
        the penalty in accordance with the requirements of this
        section;

        (3) require the States, or in the event the States fail to do
      so, the Administrator, to give a brief but reasonably specific
      notice of noncompliance under this section to each person
      referred to in subsection (a)(2)(A) of this section with respect
      to each source owned or operated by such person which is not in
      compliance as provided in such subsection, not later than July 1,
      1979, or thirty days after the discovery of such noncompliance,
      whichever is later;
        (4) require each person to whom notice is given under paragraph
      (3) to - 
          (A) calculate the amount of the penalty owed (determined in
        accordance with subsection (d)(2) of this section) and the
        schedule of payments (determined in accordance with subsection
        (d)(3) of this section) for each such source and, within
        forty-five days after the issuance of such notice or after the
        denial of a petition under subparagraph (B), to submit that
        calculation and proposed schedule, together with the
        information necessary for an independent verification thereof,
        to the State and to the Administrator, or
          (B) submit a petition, within forty-five days after the
        issuance of such notice, challenging such notice of
        noncompliance or alleging entitlement to an exemption under
        subsection (a)(2)(B) of this section with respect to a
        particular source;

        (5) require the Administrator to provide a hearing on the
      record (within the meaning of subchapter II of chapter 5 of title
      5) and to make a decision on such petition (including findings of
      fact and conclusions of law) not later than ninety days after the
      receipt of any petition under paragraph (4)(B), unless the State
      agrees to provide a hearing which is substantially similar to
      such a hearing on the record and to make a decision on such
      petition (including such findings and conclusions) within such
      ninety-day period;
        (6)(A) authorize the Administrator on his own initiative to
      review the decision of the State under paragraph (5) and
      disapprove it if it is not in accordance with the requirements of
      this section, and (B) require the Administrator to do so not
      later than sixty days after receipt of a petition under this
      subparagraph, notice, and public hearing and a showing by such
      petitioner that the State decision under paragraph (5) is not in
      accordance with the requirements of this section;
        (7) require payment, in accordance with subsection (d) of this
      section, of the penalty by each person to whom notice of
      noncompliance is given under paragraph (3) with respect to each
      noncomplying source for which such notice is given unless there
      has been a final determination granting a petition under
      paragraph (4)(B) with respect to such source;
        (8) authorize the State or the Administrator to adjust (and
      from time to time to readjust) the amount of the penalty
      assessment calculated or the payment schedule proposed by such
      owner or operator under paragraph (4), if the Administrator finds
      after notice and opportunity for a hearing on the record that the
      penalty or schedule does not meet the requirements of this
      section; and
        (9) require a final adjustment of the penalty within 180 days
      after such source comes into compliance in accordance with
      subsection (d)(4) of this section.

    In any case in which the State establishes a noncompliance penalty
    under this section, the State shall provide notice thereof to the
    Administrator. A noncompliance penalty established by a State under
    this section shall apply unless the Administrator, within ninety
    days after the date of receipt of notice of the State penalty
    assessment under this section, objects in writing to the amount of
    the penalty as less than would be required to comply with
    guidelines established by the Administrator. If the Administrator
    objects, he shall immediately establish a substitute noncompliance
    penalty applicable to such source.
    (c) Contract to assist in determining amount of penalty assessment
      or payment schedule
      If the owner or operator of any stationary source to whom a
    notice is issued under subsection (b)(3) of this section - 
        (1) does not submit a timely petition under subsection
      (b)(4)(B) of this section, or
        (2) submits a petition under subsection (b)(4)(B) of this
      section which is denied, and

    fails to submit a calculation of the penalty assessment, a schedule
    for payment, and the information necessary for independent
    verification thereof, the State (or the Administrator, as the case
    may be) may enter into a contract with any person who has no
    financial interest in the owner or operator of the source (or in
    any person controlling, controlled by or under common control with
    such source) to assist in determining the amount of the penalty
    assessment or payment schedule with respect to such source. The
    cost of carrying out such contract may be added to the penalty to
    be assessed against the owner or operator of such source.
    (d) Payment
      (1) All penalties assessed by the Administrator under this
    section shall be paid to the United States Treasury. All penalties
    assessed by the State under this section shall be paid to such
    State.
      (2) The amount of the penalty which shall be assessed and
    collected with respect to any source under this section shall be
    equal to - 
        (A) the amount determined in accordance with regulations
      promulgated by the Administrator under subsection (a) of this
      section, which is no less than the economic value which a delay
      in compliance beyond July 1, 1979, may have for the owner of such
      source, including the quarterly equivalent of the capital costs
      of compliance and debt service over a normal amortization period,
      not to exceed ten years, operation and maintenance costs foregone
      as a result of noncompliance, and any additional economic value
      which such a delay may have for the owner or operator of such
      source, minus
        (B) the amount of any expenditure made by the owner or operator
      of that source during any such quarter for the purpose of
      bringing that source into, and maintaining compliance with, such
      requirement, to the extent that such expenditures have not been
      taken into account in the calculation of the penalty under
      subparagraph (A).

    To the extent that any expenditure under subparagraph (B) made
    during any quarter is not subtracted for such quarter from the
    costs under subparagraph (A), such expenditure may be subtracted
    for any subsequent quarter from such costs. In no event shall the
    amount paid be less than the quarterly payment minus the amount
    attributed to actual cost of construction.
      (3)(A) The assessed penalty required under this section shall be
    paid in quarterly installments for the period of covered
    noncompliance. All quarterly payments (determined without regard to
    any adjustment or any subtraction under paragraph (2)(B)) after the
    first payment shall be equal.
      (B) The first payment shall be due on the date six months after
    the date of issuance of the notice of noncompliance under
    subsection (b)(3) of this section with respect to any source or on
    January 1, 1980, whichever is later. Such first payment shall be in
    the amount of the quarterly installment for the upcoming quarter,
    plus the amount owed for any preceding period within the period of
    covered noncompliance for such source.
      (C) For the purpose of this section, the term "period of covered
    noncompliance" means the period which begins - 
        (i) two years after August 7, 1977, in the case of a source for
      which notice of noncompliance under subsection (b)(3) of this
      section is issued on or before the date two years after August 7,
      1977, or
        (ii) on the date of issuance of the notice of noncompliance
      under subsection (b)(3) of this section, in the case of a source
      for which such notice is issued after July 1, 1979,

    and ending on the date on which such source comes into (or for the
    purpose of establishing the schedule of payments, is estimated to
    come into) compliance with such requirement.
      (4) Upon making a determination that a source with respect to
    which a penalty has been paid under this section is in compliance
    and is maintaining compliance with the applicable requirement, the
    State (or the Administrator as the case may be) shall review the
    actual expenditures made by the owner or operator of such source
    for the purpose of attaining and maintaining compliance, and shall
    within 180 days after such source comes into compliance - 
        (A) provide reimbursement with interest (to be paid by the
      State or Secretary of the Treasury, as the case may be) at
      appropriate prevailing rates (as determined by the Secretary of
      the Treasury) for any overpayment by such person, or
        (B) assess and collect an additional payment with interest at
      appropriate prevailing rates (as determined by the Secretary of
      the Treasury) for any underpayment by such person.

      (5) Any person who fails to pay the amount of any penalty with
    respect to any source under this section on a timely basis shall be
    required to pay in addition a quarterly nonpayment penalty for each
    quarter during which such failure to pay persists. Such nonpayment
    penalty shall be in an amount equal to 20 percent of the aggregate
    amount of such person's penalties and nonpayment penalties with
    respect to such source which are unpaid as of the beginning of such
    quarter.
    (e) Judicial review
      Any action pursuant to this section, including any objection of
    the Administrator under the last sentence of subsection (b) of this
    section, shall be considered a final action for purposes of
    judicial review of any penalty under section 7607 of this title.
    (f) Other orders, payments, sanctions, or requirements
      Any orders, payments, sanctions, or other requirements under this
    section shall be in addition to any other permits, orders,
    payments, sanctions, or other requirements established under this
    chapter, and shall in no way affect any civil or criminal
    enforcement proceedings brought under any provision of this chapter
    or State or local law.
    (g) More stringent emission limitations or other requirements
      In the case of any emission limitation or other requirement
    approved or promulgated by the Administrator under this chapter
    after August 7, 1977, which is more stringent than the emission
    limitation or requirement for the source in effect prior to such
    approval or promulgation, if any, or where there was no emission
    limitation or requirement approved or promulgated before August 7,
    1977, the date for imposition of the non-compliance penalty under
    this section, shall be either July 1, 1979, or the date on which
    the source is required to be in full compliance with such emission
    limitation or requirement, whichever is later, but in no event
    later than three years after the approval or promulgation of such
    emission limitation or requirement.



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