The same day Home Depot reported its first-ever annual sales decline, the home improvement retailer was hit with a $1.3 million penalty by the U.S. Justice Department and the Environmental Protection Agency for alleged violations of the Clean Water Act.

The Justice Department announced the settlement today, saying that the payment resolves "alleged violations that were discovered at more than 30 construction sites in 28 states where new Home Depot stores were being built."

The government complaint alleged a pattern of violations the EPA discovered, including the failure to maintain adequate plans to prevent storm water pollution, failure to properly place and install fences around project areas to prevent silt from getting into storm water runoff, and failure to install controls at storm drains to prevent soil and sediments from reaching nearby waterways

The settlement, which is also with the state of Colorado, requires Home Depot to implement a corporate-wide program to prevent storm water pollution at each new store it builds nationwide.

The company also must appoint a high-level company official to oversee compliance at its construction sites and train construction managers, contractors and personnel on federal storm water requirements.

"Storm water that runs off of large construction sites can carry sediment, debris, and other pollutants into surrounding waterways," said Ronald J. Tenpas, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division, in a statement. "This settlement is an important step in protecting the environment around Home Depot's future construction locations."

"We expect a large corporation like Home Depot to comply with the law and protect the waters in the communities it serves," added Granta Y. Nakayama, assistant administrator for EPA's Office of Enforcement and Compliance Assurance, in the statement.

Today's settlement is the latest in a series of enforcement actions to address storm water violations from construction sites around the country, the Justice Department said.

In 2005, in a similar settlement, Wal-Mart paid a fine of over $3 million and established a comprehensive storm water plan.

The settlement is subject to a 30-day public comment period and approval by a federal court. Home Depot is required to pay the penalty within 30 days of the court's approval of the settlement.

"We're pleased to reach a resolution with the EPA, Department of Justice and State of Colorado on this matter," said Home Depot spokesman Ron DeFeo, in an interview.

He said the alleged violations date back to 2001.

"As a result of this [settlement]," he said, "we feel we have an industry leading storm water management system in place."