DAQ-2024-004829

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF AIR QUALITY
Bryce C. Bird
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
DAQC-038-24
Site ID: 10617 (B1)

Sent Via Certified Mail No. 70190700000208346603

Jason Holliday
Holliday Construction Incorporated
P.O. Box 502
Blanding, UT 84511

Dear Mr. Holliday:

Re: Early Settlement Agreement – Holliday Construction Incorporated, San Juan County

On August 22, 2023, the Utah Division of Air Quality (DAQ) issued a Compliance Advisory to
Holliday Construction Incorporated as a result of a failed stack test performed on September 19,
2022. Holliday Construction Incorporated responded to the Compliance Advisory on August 30,
2023, stating that they would re-test the engine on November 11, 2023. On November 28, 2023,
Holliday Construction Incorporated notified the DAQ that the test performed on November 13,
2023, also failed. Holliday Construction Incorporated also failed to submit stack test reports for
both of these tests. Based on the findings of the inspection and response to the Compliance
Advisory, the DAQ determined that Holliday Construction Incorporated was in violation of:

1. Utah Administrative Code (UAC) R307-165-5 (Reporting)

The source failed to submit stack test reports for the stack tests that occurred on both
September 19, 2022, and November 13, 2023.

2. 40 CFR NESHAP Subpart ZZZZ of Part 63 – National Emission Standards for
Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines
(Pre-2006 emergency generators)

The 400 kW Caterpillar generator engine was tested on September 19, 2022, and again on
November 13, 2023. The generator failed the stack tests on both dates. The 400 kW
Caterpillar generator engine does not meet the requirements of Subpart ZZZZ and is
operating out of compliance.

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DAQC-038-24
Page 2

Section 19-2-115 of the Utah Code provides that violations of the Utah Air Conservation Act (the
Act) and/or any order issued thereunder may be subject to a civil penalty of up to $10,000 per day
for each violation. Based upon our civil penalty policy, we calculated a preliminary civil penalty
for the above listed violations of $12,978.

The monetary amount of the DAQ settlement offer specified below is derived from a
pre-established schedule of penalties, which takes into account, among other factors, the
magnitude and severity of the violation, economic benefit, cooperation of the source, as well as
the prior history of violations. See the attached penalty worksheet for details.

All parties we deal with, whether private, commercial, or governmental are treated similarly in the
settlement process. Early Settlement Agreements are based on the evaluation of the same factors
and criteria in all cases.

If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:

1. Holliday Construction Incorporated agrees to pay a reduced civil penalty in the sum of
$10,382. Payment of a civil penalty precludes further civil enforcement for the above
described violation against the named source. Holliday Construction Incorporated agrees
to pay $10,382 of the stipulated penalty within twenty (20) business days from the date
you receive this Early Settlement Agreement.

2. The DAQ retains its authority to take any enforcement actions based on any and all
violations not specifically described above.

3. In the event any further violations of the Act, the Utah Air Quality Rules, the source’s AO,
or the Director’s Orders occur, the DAQ may consider the violation described above in
assessing a penalty for the subsequent violations, in accordance with the provisions of
Utah Administrative Code R307-130.

4. Entering into this Early Settlement Agreement shall not constitute an admission of
violation of the Act, the Utah Air Quality Rules, or the source’s AO nor shall it be inferred
to be such an admission in any administrative or judicial proceeding. The described
violation will constitute part of the company compliance history for any purpose for which
such history is relevant to the DAQ.

At the DAQ’s option, you may request a portion of the calculated civil penalty gravity component
to be used to complete a Supplemental Environmental Project (SEP) or credited toward the Utah
Environmental Mitigation Fund to benefit present and future air quality within Utah. For more
information, please contact the DAQ representative listed below.

This Early Settlement Agreement constitutes an offer of settlement and is not a demand for
payment. The Early Settlement Agreement reflects a reduced penalty for early settlement of this
matter.

DAQC-038-24
Page 3

If the above terms are acceptable to you, please sign and return this Early Settlement Agreement
and a check in the sum of $10,382. Submit the signed Early Settlement Agreement and check
made payable to the DAQ at the letterhead address within twenty (20) business days of receipt of
this Early Settlement Agreement. Electronic payments are also available on our website at:
https://deq.utah.gov/general/payment-portal.

You may write or call to request a settlement conference with the DAQ representative listed
below. A conference must be scheduled within twenty (20) business days of your receipt of this
Early Settlement Agreement. If we do not receive a signed copy of this Early Settlement
Agreement and payment or other correspondence from you within twenty (20) business days of
your receipt, we will assume that you are not interested in resolving this matter as outlined above.

This Early Settlement Agreement is intended to quickly resolve the non-compliance issues listed
above and requires the immediate attention of your company. Failure to resolve this matter as
outlined above may result in this offer being revoked and/or having this matter referred to a
formal enforcement process, including filing a judicial case to collect penalties (up to $10,000 per
day for each violation) and compel compliance in the state district court.

If you have any additional questions regarding this matter, please contact Chad Gilgen at
385-306-6500 or by email at [e-mail].

Sincerely,

Bryce C. Bird
Director

BCB:CG:rh

cc: Southeast Utah Health Department

DAQC-038-24
Page 4

Acceptance of Early Settlement Agreement

I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.

Company Name: Holliday Construction Incorporated

Name:

Title:

_____________________________ _________________ ___________________________
Signature Date Telephone Number

DAQC-038-24
Page 5

Utah Division of Air Quality General Administrative Penalty Worksheet

Source:
Holliday
Construction Inc.
Bluff Pit
Class:
Site ID #: 10617 Violation Date(s): September 19, 2022, and
November 13, 2023
HPV: No Days to Resolution:

Citation Description of the
Violation Days Category Range Daily
Penalty
Accumulated
Penalty
Table 3 to 40
CFR Part 63
Subpart ZZZZ
Failed stack test on
400 kW generator
engine on September
19, 2022, and
November 13, 2023.
2 B
$2000 -
$7000
per day
$5,900 $11,800
UAC R307-165-5
Failed to submit
stack test reports
within 60 days of
tests for both tests.
2 C
Up to
$2000
per day
$589 $1,178
0
0
Total $12,978
20% Early
Settlement
Option
$2,596
Total
Penalty $10,382

R307-130-1.
Scope.

This policy provides guidance to the director in negotiating with air pollution sources penalties for consent
agreements to resolve non-compliance situations. It is designed to be used to determine a reasonable and
appropriate penalty for the violations based on the nature and extent of the violations, consideration of the
economic benefit to the sources of non-compliance, and adjustments for specific circumstances.

R307-130-2.
Categories.

Violations are grouped in four general categories based on the potential for harm and the nature and extent
of the violations. Penalty ranges for each category are listed.

(1) Category A. $7,000-10,000 per day.

DAQC-038-24
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Violations with high potential for impact on public health and the environment including:

(a) Violation of emission standards and
limitations of NESHAP.

(b) Emissions contributing to nonattainment
area or PSD increment exceedances.

(c) Emissions resulting in documented public health effects
and/or environmental damage.

(2) Category B. $2,000-7,000 per day.

Violations of the Utah Air Conservation Act, applicable State and Federal
regulations, and orders to include:

(a) Significant levels of emissions resulting from violations of emission limitations or
other regulations which are not within Category A.

(b) Substantial non-compliance with
monitoring requirements.

(c) Significant violations of approval orders, compliance orders, and
consent agreements not within Category A.

(d) Significant and/or knowing violations of "notice of intent" and other notification
requirements, including those of NESHAP.

(e) Violations of reporting requirements of
NESHAP.

(3) Category C. Up to $2,000 per day.

Minor violations of the Utah Air Conservation Act, applicable State and Federal Regulations and orders
having no significant public health or environmental impact to include:

(a) Reporting
violations

(b) Minor violations of monitoring
requirements, orders and agreements

(c) Minor violations of emission limitations
or other regulatory requirements.

(4) Category D. Up to $299.00.

Violations of specific provisions of R307
which are considered minor to include:

DAQC-038-24
Page 7

(a) Violation of automobile emission
standards and requirements

(b) Violation of wood-burning regulations
by private individuals

(c) Open burning violations by private
individuals.

R307-130-3.
Adjustments.

The amount of the penalty within each category may be adjusted and/or suspended in
part based upon the following factors:

(1) Good faith efforts to comply or lack of good faith. Good faith takes into account the openness in
dealing with the violations, promptness in correction of problems, and the degree of cooperation with the
State to include accessibility to information and the amount of State effort necessary to bring the source
into compliance.

(2) Degree of willfulness and/or negligence. In assessing willfulness and/or negligence, factors to be
considered include how much control the violator had over and the foreseeability of the events
constituting the violation, whether the violator made or could have made reasonable efforts to prevent the
violation, and whether the violator knew of the legal requirements which were violated.

(3) History of compliance or non-compliance. History of non-compliance includes consideration of
previous violations and the resource costs to the State of past and current enforcement actions.

(4) Economic benefit of non-compliance. The amount of economic benefit to the source of non-
compliance would be added to any penalty amount determined under this policy.

(5) Inability to pay. An adjustment downward may be made or a delayed payment schedule may be used
based on a documented inability of the source to pay.

R307-130-4.
Options.

Consideration may be given to suspension of monetary penalties in trade-off for expenditures resulting in
additional controls and/or emissions reductions beyond those required to meet existing requirements.
Consideration may be given to an increased amount of suspended penalty as a deterrent to future
violations where appropriate.