THIS PROPOSED CIVIL ACTION AGAINST GALLATIN STEEL COMPANY ALLEGES SIX CAUSES OF ACTION BASED ON THREE TYPES OF VIOLATIONS: (1) THAT GALLATIN EXCEEDED ITS MINOR SOURCE PERMIT LIMIT FOR NITROGEN OXIDES (NOX) AND CARBON MONOXIDE (C0) OUT OF ITS ELECTRIC ARC FURNACES (EAFS); (2) STARTED UP THE EAFS WITHOUT OPERATING ITS CONTROL EQUIPMENT IN VIOLATION OF ITS PERMIT; AND (3) CIRCUMVENTED THE CLEAN AIR ACT'S REQUIREMENTS TO ASSURE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) OF AIR QUALITY. A CIVIL ACTION AGAINST GALLATIN FOR THE PERMIT AND PSD VIOLATIONS IS AUTHORIZED BY SECTIONS 113(B)(2) AND 167 OF THE CAA. THE ACTION WOULD SEEK RELIEF IN THE FORM OF CIVIL PENALTIES AND INJUNCTIVE RELIEF TO REQUIRE CONTROL EQUIPMENT FOR THE FURTHER EXPANSION PLANNED AT THE FACILITY. THE TOTAL UNADJUSTED PENALTY SOUGHT IS $891,000. IF IT IS DETERMINED THAT SUFFICIENT EVIDENCE IS AVAILABLE TO INCLUDE A PSD CIRCUMVENTION COUNT IN THE COMPLAINT, THIS ACTION WOULD BE THE FIRST PSD CIRCUMCENTION CASE FOR WHICH CIVIL ACTION HAS BEEN SOUGHT BY EPA EXTABLISHING NATIONAL PRECEDENT IN THIS AREA OF ENVIRONMENTAL ENFORCEMENT FOR THE AGENCY. HOWEVER, BECAUSE THERE IS NO CASE LAW ON PSD CIRCUMVENTION AND BECAUSE PROOF OF PSD CIRCUMVENTION IS BASED ON THE SOURCE'S INTENT, THIS ASPECT OF THE CASE PREVENTS HIGH LITIGATION RISKS. IN ADDITION, THERE IS AN ONGOING ADMINISTRATIVE ACTION AGAINS