DEFENDANT PLASTICS MANUFACTURING INC. (PMI) OWNS A PLANT IN CONCORD, NC WHICH COATS PLASTIC PARTS, INCLUDING FOR BUSINESS MACHINES, AND SO IS SUBJECT TO 40 C.F.R. PART 60, SUBPART TTT - NSPS FOR SURFACE COATING OF PLASTIC PARTS FOR BUSINESS MACHINES. THE PLANT CONSTRUCTED SEVEN PAINT SPRAY BOOTHS IN JANUARY 1987 AND COMMENCED OPERATION IN JUNE 1987 WITHOUT NOTIFYING EPA PURSUANT TO 40 CFR SECTION 60.7. PMI ALSO FAILED TO TEST THE SPRAY BOOTHSBY DECEMBER 1987 PURSUANT TO 40 CFR SECTION 60.8 AND 60.723. PMI TESTED THE BOOTHS IN JUNE 1989 AND IS NOW IN COMPLIANCE. THE NORTH CAROLINA DEM COLLECTED A PENALTY OF 2039 FROM PMI FOR CON- STRUCTION WITHOUT A PERMIT BUT DID NOT ENFORCE THE NSPS VIOLATIONS SINCE THE STATE DID NOT HAVE DELEGATION OF SUB- PART TTT AT THE TIME. REGION IV IS SEEKING A PENALTY OF $27,000 TO COVER THE PAST NSPS REPORTING AND TESTING VIOLATIONS.