12/2/03 - COMPLIANCE ORDER ISSUED. VIOLATION 1: NEWPORT APPLIED FOR A SYNTHETIC MINOR PERMIT IN FEBRUARY 1998 FROM THE KENTUCKY DIVISION FOR AIR QUALITY (KDAQ), TO ADD ONE LARGE ELECTRIC ARC FURNACE (EAF) AND TO DECOMMISSION 3 EXISTING EAFs AT THE FACILITY. AS PART OF THE PERMIT APPLICATION PROCESS, NEWPORT SUBMITTED A NETTING EMISSIONS ANALYSIS TO KDAQ ON APRIL 13, 1998, WHICH INDICATED THAT THE NEW EMISSIONS WOULD BE BELOW THE SIGNIFICANT NET EMISSIONS RATES FOR CAA POLLUTANTS AND THUS WOULD NOT TRIGGER PSD REQUIREMENTS. AS A RESULT OF THE PERMIT APPLICATION, KDAQ ISSUED A FEDERALLY ENFORCEABLE SYNTHETIC MINOR OPERATING PERMIT (F-98-014) TO NEWPORT ON JUNE 18, 1998. ON MAY 23, 2000 AND MARCH 8, 2001, EPA REQUESTED INFORMATION FROM NEWPORT PURSUANT TO SECTION 114 OF THE CAA. AS PART OF THE RESPONSE, NEWPORT PROVIDED ACTUAL PRODUCTION RATES AT THE FACILITY FOR THE TWO YEARS PRIOR TO TEH ADDITION OF THE NEW EAF. EPA DETERMINED THAT NEWPORT FAILED TO USE THE ACTUAL PRODUCTION RATES IN ITS NETTING EMISSIONS ANALYSIS. EPA RECALCULATED THE NETTING EMISSIONS ANALYSIS USING NEWPORT'S ACTUAL PRODUCTION RATES, AND DETERMINED THAT NEWPORT'S MODIFICATION RESULTED IN A SIGNIFICANT NET INCREASE IN EMISSIONS FOR NITROGEN OXODES, CARBON MONOXIDE, PARTICULATE MATTER, VOLATILE ORGANIC COMPOUNDS AND LEAD AT ITS FACILITY. THEREFORE, NEWPORT VIOLATED SECTION 165(A) OF THE CAA FOR FAILING TO SUBMIT A CORRECT PERMIT APPLICATION AND FOR OPERATING WITHOUT A MAJOR SOURCE PERMIT FROM JUNE 199