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A 1 and K MART. The People move. this Court for entry of the Final Judgment based on a findiq 2 that the resolution of this action as set forth in the proposed Final Judgment is fair and in th 3 public interest. 4 This civil law-enforcement action against K MART is based on investigations conductec 5 by governmental agencies in the State of California of K MART's acts and practices at and frolr 6 K MART's retail facilities in California as alleged in the Complaint, including but not limited tc 7 hazardous -waste and hazardous -materials handling, disposal, storage, reporting, transportation, 8 labeling, and manifesting. During the investigation and negotiations, K MART cooperated and 9 has dedicated significant resources towards environmental compliance and towards enhancing 10 K MART's hazardous -waste and hazardous -materials management compliance programs. 11 The proposed Final Judgment will resolve the violations alleged by the People against 12 K MART at the California retail facilities identified in the Complaint ("Covered Facilities") 13 through May 1, 2009- The Final Judgment provides for both monetary and injunctive relief.' 14 Under the proposed Final Judgment, K MART is obligated to pay civil penalties, make 15 payments for supplemental environmental projects and make partial cost reimbursement to the 16 investigating agencies and prosecuting offices. The disbursement of funds has been structured 17 so that civil penalties, costs, and supplemental environmental. projects will be distributed to the 18 prosecuting offices and governmental agencies that assisted in the investigation. In addition, 19 K MART will provide funds that will be allocated to environmental training programs for 20 prosecutors, investigators and regulatory personnel assigned to environmental -enforcement 21 matters that provide a statewide benefit to residents and the environment of the State of 22 California. Moreover, K MART is obligated under the Final Judgment to adopt and implement 23 over the next five years several additional environmental commitments within the State of 24 California. Finally, under the terms of the Stipulation and Final Judgment, K MART is subject 25 to an injunction for at least five (5) years and for that same period of time is required to submit 26 annual status reports regarding, inter alfa, its compliance with the terms of the Final Judgment. 27 28 -4- MEMORANDUM OF POINTS AND AUTHORITIES