THE LITIGATION REPORT HAS BEEN PREPARED IN ANTICIPATION OF A SETTLEMENT THE EPA EXPECTS TO REACH WITH THE CITY OF INDIANA POLIS WITHIN THE NEXT FEW MONTHS REQUIRING DEVELOPMENT AND IMPLEMENTATION OF A LONG TERM CONTROL PLAN TO (1) ELIMINATE SANITARY OVERFLOWS, (2) IMPLEMENT ALL FEASIBLE ALTERNATIVES TO BYPASSING AT THE CITY'S TWO WASTEWATER TREATMENT PLANTS AND (3) TO ENSURE THAT THE CITY'S COMBINED SEWER OVERFLOWS COMPLY WITH THE CWA. WHILE THE CITY'S CURRENT NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMITS, ISSUED IN 1985, DO NOT CONTAIN THE BYPASSING AND CSO REQUIREMENTS THAT WILL BE THE FOCUS OF THE INJUNCTIVE RELIEF SOUGHT HERE, THOSE REQUIREMENTS WILL BE INCLUDED IN THE PERMITS THAT ARE EXPECTED TO BE ISSUED IN THE NEXT THREE TO FOUR MONTHS. THE INJUNCTIVE RELIEF IS EXPECTED TO COST THE CITY IN EXCESS OF $1,000,000,000 AND WILL TAKE MORE THAN TEN YEARS TO COMPLETE IN ADDITION TO INJUNCTIVE RELIEF, THE EPA EXPECTS TO RECOVER A CIVIL PENALTY FROM THE CITY UNDER THIS ACTION. SECTION 309(B) OF THE CWA AUTHORIZES THE INITIATION OF CIVIL ACTION FOR CIVIL PENALTIES FOR, INTER ALIA, VIOLATIONS OF SECTION 301 AND 402 OF THE ACT. HERE, THE EPA SEEKS THE IMPOSITION OF A CIVIL PENALTY OF AT LEAST $3,365,000 FROM THE CITY FOR UNPERMITTED DISCHARGES AND VIOLATIONS OF ITS NATIONAL POLLU- TANT DISCHARGE ELIMINATION SYSTEM PERMITS. REFERRAL IS ON HOLD WHILE WE CONTINUE TO NEGOTIATE THE DEVELOPMENT OF INDY'S LTCP.