AK Steel has settled alleged environmental violations at the company’s specialty steel mill in Butler, PA. In a proposed consent decree lodged in federal court, AK Steel has agreed to a $1.2 million settlement consisting of a $300,000 penalty and $900,000 in projects that will reduce smog-producing ozone in Pennsylvania.

The three supplemental environmental projects that AK Steel has agreed to implement go beyond the requirements of federal and state environmental regulations. For one project, the company will fund a $30,000 refrigerant recycling program for residents of Butler County. Through this program, coordinated by Butler County, refrigerators, air conditioners and other refrigerant-containing appliances will be collected and recycled. After properly removing ozone-depleting substances such as Freon, the appliances will be disposed of properly.

In a second project, AK Steel will remove and destroy CFC-based refrigerants in at least 17 refrigeration units, replacing these refrigerants, like Freon, with less harmful substances.

Finally, the company will also retire 159 tons of nitrogen oxide pollution credits (with a current market value of about $225,000) which it now owns as part of the Clean Air Act’s market-based pollution reduction system. Retiring 159 tons of nitrogen oxide pollution credits will reduce AK Steel’s Butler Works emissions, resulting in less smog production.

In the summer of 2000, EPA inspectors documented several violations of federal and state environmental laws at the AK Steel mill. In the government’s judicial complaint, filed by the U.S. Department of Justice on behalf of EPA, the U.S. alleged that AK Steel:

• Violated federal and state hazardous waste regulations through improper storage and disposal of baghouse dust generated at the plant. The baghouse dust, containing high concentrations of the known human carcinogen hexavalent chromium, was stored on the ground at the facility. AK Steel was also cited for failing to conduct inspections of hazardous waste storage tanks, and failing to train employees on hazardous waste management.
• Violated the Clean Water Act with an unpermitted discharge of process waters and storm water to the Sawmill Run Reservoir, a tributary of the Connoquenessing River. In September 2000, EPA ordered AK Steel to cease this unpermitted discharge. The company subsequently obtained a Clean Water Act permit for this discharge.
• Violated Clean Air Act safeguards designed to prevent equipment leaks of ozone-depleting refrigerants containing chlorofluorocarbons (CFCs) on 145 separate occasions from mid-1998 through the fall of 2002. CFCs deplete the ozone layer that protects the earth from ultraviolet radiation. Ultraviolet radiation exposure results in increased incidence of skin cancers and cataracts, suppression of the immune system, and damage to plants including crops and aquatic organisms.

“The emissions reductions required by this settlement will lead to cleaner air and significant environmental benefits,” said Assistant Attorney General Thomas L. Sansonetti. “Manufacturers must properly monitor emissions, conduct inspections, and train employees on hazardous waste management to ensure their operations don't endanger the health of their employees or the public.”

The proposed consent decree is subject to a 30-day public comment period and court approval. The company has neither admitted nor denied liability for the alleged violations.

AK Steel is a wholly-owned subsidiary of Middletown, Ohio-based AK Steel Holding Corp.