Advanced Powder Solutions, Inc. (APS) was engaged in producing powder coating materials for the aerospace, oil and gas, medicine and additive manufacturing customers.

On August 14, 2016, Harris County Pollution Control Services (HCPCS) responded to a fire at SK Scrap Metal, 14907 Treichel Road, Tomball, Texas. According to the first responders, approximately 10-15 drums had caught on fire, producing a brilliant white light which indicated that the drums likely contained reactive metal such as magnesium or aluminum.

The owners of SK Scrap stated that they purchased the aluminum powder on August 12, 2016. They later determined from a label on one of the drums that the powders in the drums had originated from APS. The drums were returned to Baker at APS on August 30, 2016.

On August 17, 2016, the Harris County Fire Marshal (HCFM) received an anonymous complaint alleging significant hazards at APS. The complaint stated that APS was exposing employees', first responders and the community to hazards without proper permits, engineering controls, training and supervision and included specific references to chemicals at the APS facility such as magnesium powder, nickel carbonyl, and triethyl aluminum. Based on this information, HCFM conducted an inspection at the APS and noted six failures, specifically: combustible waste materials could accumulate; the portable fire extinguishers were blocked or inaccessible; emergency lighting was not installed; exit signs were not installed; no hazardous materials inventory statement was produced; and barrels and containers were not labeled and missing hazard identification signs.

On September 1, 2016, in follow up to the drum fire at SK Scrap, HCPCS conducted a site inspection at APS, the source of the aluminum-magnesium powder that had been the cause of the fire. Baker acknowledged the powder sold to SK Scrap was generated by APS. The facility was inspected, and investigators observed the 30-55-gallon drums that Baker stated contained the powder. Baker explained that it was not a pure material since it consisted of aluminum, magnesium, nickel, iron and sand. On October 6, 2016, HCPCS issued a Notice of Violations (NOV) to Baker at APS for violations of TCEQ Industrial Solid Waste and Municipal Hazardous Waste Regulations, Title 30, TAC, Chapter 335, Section 335.5(a); 335.4(1) and 335.62. The violations noted included: storing, processing, or disposing of an industrial solid waste or municipal hazardous waste without a permit and failure to determine hazardous waste generation from activities conducted by APS. On or about February 22, 2018, the EPA's Criminal Investigation Division (CID) executed a search warrant at APS premises. EPA CID, assisted by EPA's National Enforcement Investigations Center (NEIC), discovered numerous containers of hazardous waste powder. NEIC sampled and analyzed some of the containers and determined that most of the containers were found to have the RCRA reactivity characteristic property of forming potentially explosive mixtures with water because of their metallic magnesium content. 40 C.F .R. § 261.23.

According to the Department of Defense (DoD) contract (SP4701-15-C-7005) in the amount of $979, 527.00 and a Department of Energy (DOE) contract (DE-SC0015743) in the amount of $1,149,989 were both active during the timeframe alleged in this Criminal Information and acknowledge compliance with hazardous waste requirements. (Specifically, the DoD Statement of Work there is reference to clause (DFARS) 252.223-7006: "Prohibition on Storage, Treatment, and Disposal of Toxic or Hazardous Materials ... " as well as the DOE Clause FA-TC-0015 - Compliance with Federal, State, and Municipal Requirements within Special Terms and Conditions.)

APS did not have a permit to store of hazardous waste at any time relevant to this Criminal Information.

• Resource Conservation and Recovery Act (RCRA)
• Title 18 U.S. Criminal Code (TITLE 18)