(202) TDD (202) EPA/HQ (202) EPA/NYC (212)

ENR 616-0189 514-1888 260-1384 264-2515

KODAK AGREES TO UPGRADE AGING SEWER SYSTEM AND TO $8 MILLION HAZARDOUS WASTE PENALTY NEW YORK, N.Y. -- In a model settlement that could set the pattern for the environmental overhaul of America's aging industrial infrastructure, the United States Department of Justice and the U.S. Environmental Protection Agency today announced that the largest manufacturing facility in the Northeast has agreed to upgrade miles of industrial sewers and reduce the discharge of hazardous wastes. Eastman Kodak, whose 104-year-old Rochester, New York, facility accommodates over 20,000 workers in 400 buildings, has agreed to an $8 million civil penalty and will spend millions of dollars more to inspect, repair and upgrade an estimated 31 miles of industrial sewers at the facility, and to correct a series of other violations. The lawsuit is the first to employ the nation's primary hazardous waste law to attack ongoing pollution from leaking sewers. The settlement additionally includes a number of environmental projects that will have a significant beneficial impact on the water quality of the Genessee River and on air quality in northwestern New York. "Our nation's aging manufacturing plants pose new challenges to environmental enforcement," said U.S. Acting Assistant Attorney General for Environment and Natural Resources, Lois J. Schiffer. "Today's settlement shows how government and industry can address the problem without forcing plants to close or jobs to move." "This case goes beyond obtaining compliance at one facility; it serves as a wake-up call to the entire regulated community," said Steven A. Herman, EPA Assistant Administrator for Enforcement and Compliance Assurance. "Everyone managing hazardous waste should be on notice that the federal government will use the environmental laws as needed to ensure the safe operation of industrial sewer systems, particularly at aging facilities." The Resource Conservation and Recovery Act (RCRA) is the nation's primary law regulating hazardous waste. Kodak violated RCRA by failing to identify hazardous wastes at its Kodak Park facility, and by allowing the unlawful disposal of various hazardous wastes through leaks in the facility's industrial sewer system. "This agreement sets a standard for the operation and maintenance of complex industrial sewer systems so as to prevent the contamination of soils and groundwater with hazardous wastes, through compliance with RCRA," said Jeanne Fox, EPA Regional Administrator in New York. Kodak will be permitted to satisfy up to $3 million of the penalty by implementing six environmental projects worth at least $12 million to reduce hazardous wastes in its 2,200 acre Kodak Park. The aggregate reduction is expected to exceed 2.3 million pounds of pollutants by the year 2001. "Prevention and reduction of pollution in the environment is

a goal that must be integrated into the way that companies do business," said Herman. "By requiring such waste reductions in this settlement, we are demonstrating that pollution prevention is a fundamental component of our enforcement efforts." Today's settlement also requires Kodak to implement a state-of-the-art database system to classify and track all hazardous wastes, which will enable Kodak to reduce the discharge of such wastes into the sewer system. Kodak will also upgrade and obtain a permit for one incinerator that treats the sludge from Kodak Park's industrial wastewater. Two other incinerators have been closed. The settlement further signals the kind of cooperation that the government seeks to achieve with other companies. Schiffer observed: "This settlement shows industry how they can save on litigation costs and help fashion a comprehensive remedial program by settling cases through negotiations under the Civil Justice Reform Executive Order. We encourage companies to step forward when the invitation comes to resolve violations through discussion rather than litigation." "The federal government will vigorously enforce the law in these situations, but we will offer clear standards for companies like Kodak to follow as they come into compliance." Jeanne Fox added, "When your neighbor is a major industry, it is important to know that they will come to the negotiating table when confronted with environmental violations, and work out a plan that will correct the problem. Kodak's willingness to come to the negotiating table benefitted the company, the people of New York, and the environment." In addition to the sewer-related violations, Kodak failed to obtain a permit for an incinerator used to treat its industrial wastewater sludge, and failed to disclose both hazardous and solid waste management units that should have been included in Kodak Park's RCRA permit. Kodak also failed to comply with several of its RCRA permit conditions and violated regulations covering the import and export of hazardous wastes and the proper closure of certain underground storage tanks. The settlement resolves the claims raised by the complaint filed today with the consent decree in the U.S. District Court for the Western District of New York. "The close cooperation of EPA and the New York State Department of Environmental Conservation in this case, along with the efforts of Kodak to respond creatively to satisfy the United States' environmental concerns, were critical in developing a settlement acceptable to all parties," said Fox. The consent decree is open to a 30 day public comment period prior to final entry. ### 94-581