Minnesota Pollution Control Agency

Contact: Stephen Mikkelson, (218) 855-5001 Brainerd, Minn. -- Pan-O-Gold Baking Co. and the Minnesota Pollution Control Agency (MPCA) have reached an agreement that requires the company to pay $442,600 for alleged air-quality violations at its bread-baking facility in St. Cloud, Minn. The violations included installing and operating equipment for bread and bun production lines, and beginning construction of a third production line without first obtaining required air quality permits. These actions were in violation of federal regulations, Minnesota statutes and MPCA rules requiring permits before constructing and operating air-emission equipment. Of the $442,600, the company will pay $50,000 as a civil penalty to the MPCA. The remaining $392,600 will go toward two Supplemental Environmental Projects. One project will pay the Minnesota Environmental Initiative $176,600 to help fund its Project Green Fleet, which provides diesel-emission-reduction retrofits on buses in the St. Cloud area. The remaining $216,000 will fund a project to reduce greenhouse gas emissions and increase thermal efficiency at Pan-O-Gold's St. Cloud bakery. When calculating penalties, the MPCA takes into account how seriously the violation affected the environment, whether it is a first time or repeat violation, and how promptly the violation was reported to appropriate authorities. It also attempts to recover the calculated economic benefit gained by failure to comply with environmental laws in a timely manner. For a comprehensive list of enforcement actions by the MPCA, refer to the agency Web site at www.pca.state.mn.us/newscenter/enforcement.html.