Under the agreement, Dow has agreed to pay a $2.5m civil penalty to settle alleged violations of the Clean Air Act, Clean Water Act and the Resource Conservation and Recovery Act at its complex.

Also, the company has agreed to implement a comprehensive program to reduce emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) from leaking equipment such as valves and pumps.

Dow will replace valves with new low emissions valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs and HAPs.

EPA said Dow allegedly violated Clean Air Act requirements for monitoring and repairing leaking equipment, for demonstrating initial and continuous compliance with regulations applicable to chemical, pharmaceutical and pesticide plants, and for failing to comply with reporting and recordkeeping requirements.

EPA Office of Enforcement and Compliance Assurance assistant administrator Cynthia Giles said the deal with Dow will reduce the potential for future violations and protect communities from emissions of hazardous air pollutants.