ON MARCH 28, 2008 REGION 3 SENT A REFERRAL TO THE UNITED STATES DEPARTMENT OF JUSTICE SEEKING THE INITIATION OF A CIVIL ENFORCEMENT ACTION AGAINST KB HOMES (KB) FOR ITS VIOLATIONS OF THE CLEAN WATER ACT. KB IS A LOS ANGELES, CALIFORNIA COMPLANY WHICH IS FORTUNE 500 MEMBER AND THE FIRST HOME BUILDER LISTED ON THE NYSE, WITH OPERATIONS IN FIFTEEN STATES INCLUDING, WITHIN REGION 3, MARYLAND AND VIRGINIA. THE REFERRAL IS IN ANTICIPATION OF KBS'S INCLUSION IN A COMPREHENSIVE MULTI-REGIONAL SETTLEMENT BY EPA WITH LEADING AMERICAN HOMEBUILDERS KB, PLUTE HOMES, INC. M.D.C. HOLDINGS, INC.(RICHMOND AMERICAN HOMES, INC.) AND CENTEX HOMES REGARDING THEIR STORM WATER DISCHARE VIOLATIONS. AS PART OF THE SETTLEMENT, KB ACKNOWLEDGES THAT IT HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF GENERAL PERMITS GOVERNING STORM WATER DISCHARES FROM CONSTRUCTION ACTIVITIES. THOSE PERMITS HAD BEENISSUED BY MARYLAND AND VIRGINIA PURSUANT TO THEIR EPA APPROVED IMPLEMENTATION OF THE NPDES PROGRAM OF THE CLEAN WATER ACT. KB AGREED TO A CONSENT DCREE REQUIRING PAYMENT OF $1,185,000 IN CIVIL PENALTIES. ÂA complete list of the construction sites covered by this settlement is included in Appendix A of the complaint and Appendix M of the consent decree. This information is also available on the EPA website, Compliance and Enforcement, Newsroom, Cases and Settlements. http://cfpub.epa.gov/compliance/cases/.Â
The case summary information can be seen by the public in ECHO after the consent decree is lodged