NATURE OF THE CASE SOUSA OWNS AND OPERATES A BULK GASOLINE LOADING TERMINAL WHICH IS A MAJOR SOURCE OF VOLATILE ORGANIC COMPOUND (VOC) EMISSIONS. THE SOURCE IS LOCATED IN A PRIMARY NON-ATTAIN- MENT AREA FOR OZONE. CAUSE OF ACTION THIS FACILITY IS SUBJECT TO A PORTION OF THE NY SIP WHICH REQUIRES INSTALLATION OF VAPOR RECOVERY EQUIPMENT BY 7/1/82. THE COMPANY HAS NOT INSTALLED THE EQUIPMENT TO DATE. THE COMPANY HAS ENTERED INTO AN INFORMAL AGREEMENT WITH THE NY STATE DEPT OF ENVIRONMENTAL CONSERVATION WHICH REQUIRES FNAL COMPLIANCE BY 12/31/83. PROPOSED REMEDY THIS SOURCE IS SUBJECT TO THE AMINISTRATIOR'S SEPT 20, '82 POLICY BECAUSE IT IS IN AN AREA WHICH IS PRIMARY NON-ATTAIN- MENT FOR OZONE. I CONCUR WITH REGION II'S THRESHOLD DETER- MINATION THAT THE AGENCY NOT SEEK TO SHUT DOWN THIS SOURCE, PRIMARILY BECAUSE THE ENVRIONMENTAL COST OF CONTINUED CNON- COMPLIANCE WILL BE INSIGNIFICANT DURING THE SHORT ADDITIONAL PERIOD OF VIOLATION. NONETHELES, THE POLICY REQUIRES EPA TO INITIATE A FEDERAL ENFORCEMENT ACTION IF A STATE RESOLUTION OF THE PROBLEM IS UNSATISFACTORY. SOUSA ORIGINALLY AGREED WITH THE STATE, IN 2/82, TO MEET A COMPLINACE DEADLINE OF 7/1/83. IN 12/82 THEY REQUESTED AND RECEIVED AN EXTENTSION