AKER PHILADELPHIA SHIPYARD,INC

On August 10, 2010, EPA issued a combined Notice of Determination (“NOD”) and Notice of Noncompliance (“NON”) to resolve violations of the CAA which were self-disclosed by Aker Philadelphia Shipyard, Inc. (“APSI”) concerning its shipyard located in Philadelphia, Pennsylvania (“Facility”). APSI disclosed that it violated the Terms and Conditions of its CAA Title V Operating Permit (“Permit”) for the Facility by using a coating that had volatile organic compound and volatile organic hazardous air pollutant content in excess of the Permit requirements. According to Section II.D.2 of the Self-Disclosure Policy, violations must have been discovered voluntarily and not through a legally mandated monitoring, sampling or auditing requirement. The regulations implementing the CAA Title V permit program, 40 C.F.R. Section 70.5, establish a legal duty for permit holders to analyze comprehensively the source’s compliance status and certify annually as to CAA compliance. Because APSI is a Title V source subject to the annual compliance certification obligations, APSI did not satisfy the condition set forth in Section II.D.2 of the Self-Disclosure Policy. However, EPA determined that an NON rather than a penalty action was the appropriate enforcement response given the circumstances of the violation.