Press Release
Supplemental Environmental Project (SEP)

WHEREAS on March 6, 1996, after notices to the United States Environmental Protection Agency (EPA), the New Jersey Department of Environmental Protection (NJDEP), and defendant New Jersey Steel Corporation (NJ Steel), plaintiffs Public Interest Research Group of New Jersey, Inc. (NJPIRG) and Natural Resources Defense Council, Inc. (NRDC) commenced this citizen suit alleging that NJ Steel has violated the Clean Air Act (CAA), as amended, 42 U.S.C. § 7604 et seq., and seeking a declaratory judgment, injunctive relief, the imposition of civil penalties, and the award of costs, including attorneys' and expert witness' fees, for NJ Steel's repeated violations of the emission limitations in its permit issued pursuant to Sections 110, 111 and 165 of the Act, 42 U.S.C. §§ 7410, 7411 and 7475;

WHEREAS on August 8, 1996 NJDEP moved to intervene in this action as a plaintiff-in-intervention by filing a complaint alleging the same violations of the CAA alleged in the complaint by NJPIRG and NRDC, which were also alleged to be violations of the New Jersey Air Pollution Control Act (APCA), N.J.S.A. 26:2C-1 et seq., and seeking a declaratory judgment, injunctive relief, and the imposition of civil penalties;

WHEREAS NRDC, NJPIRG, NJDEP and NJ Steel, by their authorized representatives, consent to the entry of this Consent Decree (Decree) to (1) resolve NRDC's, NJPIRG's and NJDEP's claims for declaratory relief, injunctive relief and civil penalties for all violations of the CAA and APCA alleged to have occurred from April 5, 1995 to the date of entry of this Decree, and (2) resolve NRDC's and NJPIRG's claims for costs, including attorneys' fees and expert witnesses' fees, up to the date of entry of this Decree;

WHEREAS NJ Steel, a corporation organized under the laws of the State of Delaware, owns and operates a facility in Sayreville, New Jersey (the Mill) which manufactures steel rebar and other steel products from recycled scrap steel;

WHEREAS NJ Steel admits that it owns and operates the Mill and that the Court has jurisdiction over this lawsuit;

WHEREAS NJ Steel emits air pollution from the Mill, including volatile organic compounds (VOC), nitrogen oxides (NOx), carbon monoxide (CO), sulfur dioxide (SO2), sulfuric acid mist (H2SO4), and particulate matter (measured as opacity) in quantities that are regulated by NJDEP under the CAA and/or APCA;

WHEREAS on September 7, 1994, NJDEP issued a "Permit to Construct, Install, or Alter Control Apparatus or Equipment and Temporary Certificate to Operate Control Apparatus or Equipment and Prevention of Significant Deterioration Permit" (the Permit) to NJ Steel, under the CAA and APCA;

WHEREAS the Permit authorized NJ Steel to construct, install and operate air pollution control apparatus and established emission limitations for CO, NOx, VOC and opacity from the Mill's stack;

WHEREAS in May 1995 NJ Steel began to record concentrations of CO, VOC, NOx and opacity in the Mill's stack using a continuous emission monitoring system (CEMS), and to report the results of its CEMS to NJDEP in certified quarterly reports;

WHEREAS on March 6, 1996, NRDC and NJPIRG commenced this action by filing a complaint alleging exceedances by NJ Steel of the emission limits in the Permit for CO, VOC, NOx and opacity on the basis of NJ Steel's certified quarterly CEMS reports;

WHEREAS on March 7, 1996, NJ Steel applied to NJDEP to modify the Permit to improve air pollution control and to increase the emission limits in the Permit for CO, VOC and NOx;

WHEREAS on November 21, 1997 NJDEP issued a modified Permit to NJ Steel which, among other things, modified the emission limits in the Permit for CO, VOC and NOx;

WHEREAS Condition III.E of the modified Permit requires that, at the end of two years of operation with the new air pollution control system under the modified Permit, NJ Steel shall submit a report to NJDEP on VOC emissions as a function of temperature at the Mill's antechamber, using the data from the last 18 months of operation under the modified Permit, to determine whether NJ Steel should modify the antechamber to maintain antechamber temperature at or above 1500 Degrees Fahrenheit (hereafter referred to as the "Antechamber Report");

WHEREAS Condition III.G. of the modified Permit requires that, at the end of two years of operation with the new air pollution control system under the modified Permit, NJ Steel shall submit a report to NJDEP on the accumulated CEMS data for NOx emissions, using the last 18 months of operation under the modified Permit, to determine if the primary, peak, and annual NOx emission rates can be revised to lower values (hereafter referred to as the "NOx Report");

WHEREAS NJDEP and NJ Steel agree that NRDC and NJPIRG will be allowed to participate in the technical review process between NJDEP and NJ Steel concerning the Antechamber and NOx Reports required by Conditions III.E and III.G of the modified Permit, and;

WHEREAS NJ Steel enters into this Consent Decree without trial or adjudication of any of the factual or legal allegations or issues contained herein. The execution of this Consent Decree by NJ Steel and NJ Steel's subsequent compliance with its terms does not constitute and shall not be construed as an admission of liability or guilt of any kind or an admission of any fact or conclusion of law or the applicability of any law relating to any of the allegations made by the Plaintiffs or Plaintiff-in-Intervention.

NOW, THEREFORE, it is hereby ordered, adjudged and decreed as follows:

I. JURISDICTION
1. This Court has jurisdiction over the parties and subject matter of this action pursuant to Section 304(a) of the CAA, 42 U.S.C. § 7604(a).
2. For purpose of this Decree, the parties agree that the complaint states a claim upon which relief may be granted against NJ Steel.

II. APPLICABILITY
3. The provisions of this Decree shall apply to and be binding upon the parties hereto, their officers, directors, agents, servants, employees, successors, and assigns, with respect to matters covered by this Decree.

III. COMPLIANCE
4. NJ Steel shall comply with all terms and conditions of the modified Permit issued by NJDEP on November 21, 1997. This requirement shall not confer jurisdiction on the Court over enforcement of the terms and conditions of the modified Permit.

IV. REPORTING
5. For the period beginning with the entry of this Decree and ending with NJ Steel's submittal to NJDEP of the Antechamber and NOx Reports required by Conditions III.E and III.G of the modified Permit, NJ Steel agrees to provide NRDC and NJPIRG with a copy of all documents submitted to NJDEP concerning the Mill's compliance with Conditions III.E and III.G of the modified Permit, including: (1) all quarterly excess emission reports required by Condition VI.C of the modified Permit, in paper and electronic formats; (2) all continuous emission data for NOx, CO and VOC, required by Condition IV.A of the modified Permit, in electronic format; (3) all data from the continuous temperature monitor and recorder required by Condition III.C of the modified Permit, in electronic format; (4) all data from the continuous oxygen monitor and recorder required by Condition III.D of the modified Permit, in electronic format; and (5) the Antechamber and NOx Reports required by Conditions III.E and III.G of the modified Permit, including all engineering analyses used to prepare the reports.
6. All of the documents noted in Paragraph 5 above shall be sent to NRDC and NJPIRG c/o their counsel at the address set forth in Paragraph 16 below simultaneous with their submission to NJDEP. If any of the documents noted in Paragraph 5 above are not regularly submitted to NJDEP, they shall be sent to NRDC and NJPIRG simultaneous with NJ Steel's submittal of the Antechamber and NOx Reports required by Conditions III.E and III.G of the modified Permit.
7. Any information provided under the reporting requirements of this Decree may be used by NRDC and NJPIRG in any analysis or comment submitted by NRDC and NJPIRG to NJDEP with respect to the Antechamber and NOx Reports required by Conditions III.E and III.G of the modified Permit.
8. NJ Steel and NJDEP agree that NRDC and NJPIRG shall have 60 days from NJ Steel's submittal to NRDC and NJPIRG of all of the information required by Paragraph 5 of this Decree to review the information and submit comments to NJDEP on Conditions III.E and III.G of the modified Permit.

V. PAYMENTS
9. Not later than thirty days after the entry of this Decree, NJ Steel shall pay a penalty of $1,200,000 to the NJ State Treasury. Payment shall be made by certified check, bank check or money order to the Treasurer of the State of New Jersey at the address set forth below:
Ronald Heksch, Chief
Environmental Enforcement Section
New Jersey Division of Law
Department of Law and Public Safety
CN 093
Trenton, New Jersey 08625-0093

10. Not later than 45 days after the entry of this Decree, NJ Steel shall pay $100,000 by certified check, bank check, or money order to the Edison Greenways Group (EGG), P.O. Box 10432, New Brunswick, New Jersey 08906, to be used by EGG for projects to reduce ozone pollution generated by automobiles along the U.S. Route 1 corridor in Middlesex County, New Jersey, and for the reasonable administrative costs of EGG incurred in planning and implementing these projects. As detailed in Attachment 1, these funds will be used to: (a) reduce the need for vehicle trips along the Route 1 corridor by maximizing the use of vacant and underutilized land that is well-served by transit, road and other infrastructure, encouraging mixed-use development, and revitalizing downtown areas; and (b) encourage alternative modes of transportation by advocating for bicycle and pedestrian capital projects throughout the Route 1 corridor and implementing "cash out" parking strategies. EGG shall use its best efforts to minimize use of the payment under this Paragraph for administrative or overhead expenses. NJDEP neither endorses nor opposes the projects proposed by EGG as detailed in Attachment 1.

11. EGG shall file an annual report with the parties describing the activities performed with the payment described in Paragraph 10 above and the expenses incurred in those activities. The report shall be sent to the parties at the addresses set forth in Paragraph 18 below, except that the report for NJ Steel shall be sent to:
Timothy Tarantino
New Jersey Steel Corporation
North Crossman Road
Sayreville, New Jersey 08872

Moreover, three additional copies of the report shall be sent to NJDEP at the address in Paragraph 18 so that NJDEP may distribute the report to: (1) New Jersey Department of Transportation; (2) New Jersey Office of State Planning; and (3) New Jersey Office of Policy and Planning. In addition, EGG shall send copies of the annual report to EPA Region 2, 290 Broadway, New York, New York 10007-1866, and to Michael Wall, U.S. Department of Justice, 10th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20530.

12. The payment to EGG described in Paragraph 10 above is conditioned upon and shall not be made by NJ Steel unless EGG agrees, in writing and not later than 30 days after the entry of this Decree, to act in accordance with Paragraphs 10 and 11 of this Decree. If EGG declines to so agree, the payment described in Paragraph 10 shall instead be made by NJ Steel to the New Jersey Treasurer by certified check, bank check or money order, in the manner provided for in Paragraph 9 of this Decree.

13. A copy of the check and cover letter shall be provided to NRDC and NJPIRG at the time that each payment described in Paragraphs 9 and 10 (or 12, as applicable) is made.

14. NJ Steel agrees not to claim any deductions for purposes of local, state, or federal taxes concerning payments made pursuant to Parts V and VI of this Decree.

15. The sums set forth in this Part shall fully and completely discharge NJ Steel from any liability under 42 U.S.C § 7604(a) arising from any violation of the CAA, and from any liability under N.J.S.A. 26:2C-19(d) arising from any violation of the APCA, from April 5, 1995 to the date of entry of this Decree.

VI. COSTS AND ATTORNEYS' FEES
16. NJ Steel agrees to pay NRDC's and NJPIRG's costs and attorneys' fees in the amount of $375,000, as provided by 42 U.S.C. § 7604(d). The check shall be made payable to Trial Lawyers for Public Justice, P.C. and shall be received within 15 days after the date of entry of this Decree. The sum set forth in this paragraph shall be a full and complete settlement of NRDC's and NJPIRG's claim for costs and fees related to this matter up to the date of entry of the Decree, and further includes the future costs and fees of NRDC and NJPIRG associated with their review and comment on Conditions III.E and III.G of NJ Steel's modified Permit.

VII. GENERAL PROVISIONS
17. The undersigned representative(s) for each party certifies that he or she is fully authorized by the party whom he or she represents to enter into the terms and conditions of this Decree and to bind that party legally to it.

18. Whenever this Decree requires notice to, or service of documents on, any party, the communication to NRDC and NJPIRG shall be directed to:
Mark Wenzler
Trial Lawyers for Public Justice
1717 Massachusetts Avenue, N.W., Suite 800
Washington, D.C. 20036

Communication to NJ Steel shall be directed to:
I. Leo Motiuk
Shanley & Fisher
131 Madison Avenue
Morristown, New Jersey 07962-1979

Communication to NJDEP shall be directed to:
Ronald Heksch, Deputy Attorney General
Environmental Enforcement Section
New Jersey Division of Law
CN 093
Trenton, New Jersey 08625

19. NJ Steel shall give written notice of this Decree to any successor in interest prior to transfer of ownership of the Mill occurring before termination of this Decree, and shall simultaneously verify to NRDC and NJPIRG that such notice has been given.

20. The Court shall retain jurisdiction of this matter for the sole and limited purpose of enabling the parties to this Decree to apply to the Court for any further order that may be necessary to interpret, carry out, or enforce any requirements under Section IV of this Decree.

21. All provisions of this Decree, with the exception of reporting requirements under Section IV and Paragraph 18 of Section VII, shall terminate when NJ Steel has paid all sums required under Sections V and VI of the Decree. The reporting requirements under Section IV of the Decree shall terminate 60 days after NJ Steel has submitted all of the information required under Paragraph 5 of the decree, but in no event later than July 1, 2000.

22. The terms of this Decree shall not be changed, revised or modified except by a written instrument signed by the parties to this Decree, or by further orders of the Court, and shall not take effect until approved by the Court.

NATURAL RESOURCES DEFENSE COUNCIL, INC.
PUBLIC INTEREST RESEARCH GROUP OF NEW JERSEY, INC.

By: ___________________________
Mark Wenzler
TRIAL LAWYERS FOR PUBLIC JUSTICE
1717 Massachusetts Avenue, N.W.
Suite 800
Washington, D.C. 20036
(202) 797-8600

NEW JERSEY STEEL CORPORATION

By: ___________________________
I. Leo Motiuk
SHANLEY & FISHER
131 Madison Avenue
Morristown, New Jersey 07962-1979
(201) 285-1000

NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION

By: ___________________________
Ronald Heksch, Chief
Environmental Enforcement Section
New Jersey Division of Law
Department of Law and Public Safety
CN 093
Trenton, New Jersey 08625-0093
(609) 292-1557

APPROVED as an Order of this Court, this 21 day of April, 1998.

________________________________
HON. JOSEPH A. GREENAWAY, JR.
UNITED STATES DISTRICT JUDGE