STATE OF INDIANA


STATE OF INDIANA COUNTY OF MARION		) ) )	SS:	BEFORE THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT,				) ) )
				)
Complainant,				)
				)
	v.			)	Case Nos. 2002-12579-A,
				)	2003-12852-A,
CITIZENS GAS & COKE UTILITY,				)	2003-13140-A,
				)	2003-13586-A,
Respondent,				)	2004-14030-A,
					2004-14214-A,
					2004-14381-A, 2005-14594-A, 2005-14928-A 2006-15350-A, 2006-15388-A and 2006-15403-A

AMENDMENT TO AGREED ORDER

Agreed Order Case No. 2002-12579-A, et.al, agreed to by and between the Indiana Department of Environmental Management (“IDEM”) and Citizens Gas & Coke Utility (Citizens) (RESPONDENT), was signed and issued by and on behalf of the Commissioner by IDEM’s Assistant Commissioner of Compliance and Enforcement on September 15, 2006. The parties to Agreed Order Case No. 2002-12579-A, et. al. hereby agree to amend said Agreed Order.

1. Order Condition 9(a) (viii) currently states “Or other Projects mutually agreed upon by and between Complainant and Respondent.”

2. Order Condition 9(a) (viii), shall be amended to read as follows:
Due to the permanent closure of Respondent’s coke oven batteries, Plant I.D. No. 097-00061, located at 2950 Prospect Street in Indianapolis, IN, some of the previously agreed upon Supplemental Environmental Projects, described in Order Condition 9(a) (i-vii) could not be completed or were only partially complete at the time of the plant closure. The projects, the estimated cost and the amount actually expended on each, to date, are as follows:

	Estimated Cost	Actual Expenditure

1. Gas Supply Wastewater project	$450,000	$5,877
2. Modular End flue Replacements	$660, 000	$704,788
3. Powerhouse Tank Blanketing Project	$360,000	$154,746
4. Tar Loading Vapor Recovery Project	$140,000	$000000
5. LDAR Imaging Camera donated to IDEM	$100,000	$114,450
6. Expanded Collector Main Cleaning Project	$200,000	$103,771
7. Donations to Southeast Neighborhood	$100,000	$100,000
community groups

Total	$2,010,000	$1,183,531

Total remaining to be expended on SEPSs:		$826,469

Therefore, Pursuant to Order Condition 9(a) (viii) the Complainant and Respondent have mutually agreed upon alternative SEP projects to replace those that were not, or could not, be completed. The original SEPS described in Order Condition 9(a) (i-vii) had a penalty offset value of 2:1.

The replacement SEPs are listed below and described in appendices A-E:

	Estimated Cost

1. Indianapolis Cultural Trail Expansion	$100,000
2. Indianapolis Finance Authority/
Neighborhood Brownfields	$50,000
3. City of Indianapolis Green Commission	$50,000
4. City of Indianapolis/
ToxAway Day Program Funding	$63,234.50
5. Low Income Rental Unit Weatherization	$150,000

Total	$413,234.50

On June 20, 2008, a revised Agency Nonrule Policy Document (NPD), Subject: Supplemental Environmental Project Policy was adopted by IDEM. The revised NPD, allows some types of SEPs to be credited at a 1:1 offset ratio. Each of the SEPs proposed by Citizens are in the “Environmental Conservation, Protection & Restoration category and therefore, pursuant to the revised NPD, qualify for the 1:1 offset ratio.

No other part, paragraph, section or attachment of Agreed Order Case No. 2002-12579-A, et. al. is affected by this Amendment. Therefore, the remaining parts, paragraphs, sections and attachments shall remain unchanged and shall continue in full force and effect.

TECHNICAL RECOMMENDATION:			RESPONDENT:
Department of Environmental Management			Citizens Gas & Coke Utility

By:			By:
	Craig Henry, Chief		Printed:
	Compliance and Enforcement Section IV		Title:
	Office of Air Quality
Date:			Date:


COUNSEL FOR COMPLAINANT:			COUNSEL FOR RESPONDENT:
For the Department of Environmental Management

By:			By:
	Deputy Attorney General

Date:			Date:

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF		, 2009.

			For the Commissioner:

			Signed on October 21, 2009
			Daniel Murray
			Assistant Commissioner
			Office of Air Quality

Appendix A

1. Name of Applicant:

Respondent’s Name

Citizens Energy Group

2. Street Address:

2020 North Meridian Street, Indianapolis, Indiana 46202

3. Contact Person Phone Number and E-Mail:

Project Director or person who will be responsible for all required submittals

Ann McIver, Director – Environmental Stewardship (amciver@CitizensEnergyGroup.com)

4. Date of Request:

Original: October 7, 2008

Updated: April 20, 2009

5. Name of Project:

Indianapolis Cultural Trail Expansion

6. Project Description:

Provide a written detailed description of the project, including the need for the project and the availability of other similar services or projects in the area. Identify the affected process, media, waste stream or discharge, as well as a technical description of the work to be performed and benefits to be produced. Include detailed information describing how, where, by whom, and when the project will be completed. Specific dates and milestones must also be included. (Please continue the project description on back of form if additional space is needed.)

Citizens proposes to provide $100,000 in funding to the Central Indiana Community Foundation in support of further expansion and on-going maintenance of the Indianapolis Cultural Trail.

The seven-mile continuous loop of the Indianapolis Cultural Trail is intended to serve as a central hub for the greenway trail system in Indianapolis, linking neighborhoods and commercial districts via a network of pedestrian and bicycle-friendly pathways. The Cultural Trail, at completion, will convert current traffic lanes and parking spaces into a dedicated trail, providing in many sections of the route, separate lanes for pedestrians and bicyclists.

The CICF has identified four inter-related areas that will define the success of the Cultural Trail: elevating of the City’s national and international reputation, boosting economic development, enhancing tourism, and promoting community fitness.

The $50.35 million project is funded through a public-private partnership, with the City of Indianapolis raising $15 million from federal funds. The remaining $35.35 million must be raised by CICF through contributions from individuals, foundations, and corporations.

7. Type of Project:

Pollution Protection _______ Environmental Audits ______

Pollution Reduction _______ Comprehensive Environmental Training ______

Environmental Conservation ___X____ Community Involvement ______

Protection and Restoration __ X ___ Public Awareness ______

Public Health ______ Other ______

7. Project Schedule:

Provide project implementation schedule and status report submittals schedule

Development of the Indianapolis Cultural Trail will be done over a multi-year schedule. Many sections of the Cultural Trail are complete and open for public use at present.

8.Conception of Project:

Provide information pertaining to when the project was first conceived by the company, as well as why the SEP was proposed. If research was conducted, or a pilot project undertaken prior to IDEM’s enforcement action, provide a description of such research or pilot project and state when the work was performed and why the currently proposed SEP was not then Implemented.

This project proposal stems from Citizens’ interest in supporting opportunities and initiatives that enhance the community. The Cultural Trail represents an opportunity to achieve environmental benefits through the enhanced network of pedestrian and bicycle trails, along with the ancillary public health benefits generated through these activities.

9. Quantify:

For Pollution Prevention or Reduction-Quantify the amount of each pollutant that is expected to be reduced, beyond that required for environmental compliance. Specify the media (air, water, land) to be affected. For all other types of projects-Quantify the number of participants, programs, acres of land restored, etc. Indicate what procedures will be used to verify the amount of pollutants reduced (e.g., stack test, sampling, monitoring data, etc.)

The four areas of success for the Cultural Trail represent an enhancement of the community.

10. Expected Environmental Benefits:

Explain the expected environmental benefits of the project and quantify the environmental benefits if possible.

The enhanced network of pedestrian and bicycle trails provides a safe route for alternative commuting for residents of Center Township that reduces the dependence on automobiles.

11. Total Cost of Project:

Cost must be clearly and solely attributable to the proposed SEP.

Citizens will contribute $100,000, which will be restricted to non-administrative expenditures.

12. Total Amount of Penalty Offsetting:

$100,000

13. Accounting:

Provide a detailed estimate of the cost of the project, including a specific breakdown of equipment and other capital costs, as well as well as labor costs. Identify consultants who will perform the work, if any, and differentiate the allocation of labor costs between consultants and company employees, if applicable. Generally, there are three types of costs that may be associated with the performance of a SEP; capital costs (e.g., equipment, buildings) ; one-time non-depreciable costs (e.g., removing contaminated materials, purchasing land, developing a compliance promotion seminar); and annual operation costs or savings (e.g., labor, chemicals, water, power, raw materials).

Consistent with Section 6.3.2 of the revised non-rule policy document (08-003-NPD) that defines IDEM’s Supplemental Environmental Project policy, Citizens proposes to make a one-time contribution from dollars associated with the civil penalty assessed in the final agreed order executed in 2006.

14. History:

Demonstrate the project implementer’s history of implementing and managing an environmental enhancement project.

Many sections of the Cultural Trail are open for public use, demonstrating the success of the Central Indiana Community Foundation in project implementation.

15. Reporting:

Describe the information and documentation that would be included in project status reports. Project reports must provide sufficient information for IDEM to monitor the project implementation status, to verify and document the proper expenditure of SEP funds, and to evaluate the effectiveness and benefits of the SEP. Project reports must also include the quantified environmental benefits of the projects.

N/A

16.Affected Laws:

List any permits and/or laws that may be applicable to the project.

N/A

16. Supporting Documentation:

List all of the supporting documents that are being submitted with the application. A letter for resolution from the appropriate board, governing body, or executive staff expressing the organization’s commitment to the project should be attached. Photos, equipment pamphlets, price quotes, and/or proposals from a suppliers or consultants are other documents that may be required.

The Case for Support: An Innovative Vision for Our City’s Future (May 2007)

Appendix B

1. Name of Applicant:

Respondent’s Name

Citizens Energy Group

2. Street Address:

2020 North Meridian Street, Indianapolis, Indiana 46202

3. Contact Person Phone Number and E-Mail:

Project Director or person who will be responsible for all required submittals

Ann McIver, Director – Environmental Stewardship
(amciver@CitizensEnergyGroup.com)

4. Date of Request:

Original: October 7, 2008

5. Name of Project:

Neighborhood Brownfields

6. Project Description:

Citizens proposes to provide $50,000 in funding to the Indiana Finance Authority to assist with the remediation of brownfields in Marion County. Citizens will work closely with IFA personnel to maximize the benefits of the funding.

Brownfield remediation and redevelopment provides economic and environmental benefits to the community by putting underutilized property to use.

7. Type of Project:

Pollution Protection _______ Environmental Audits ______

Pollution Reduction _______ Comprehensive Environmental Training ______

Environmental Conservation __X_____ Community Involvement __ ____

Protection and Restoration __ X___ Public Awareness ______

Public Health ______ Other ______

7. Project Schedule:

Provide project implementation schedule and status report submittals schedule

To be determined in conjunction with the IFA and the City of Indianapolis Brownfields program.

8.Conception of Project:

Titan LaSalle-the site is located at 323 South LaSalle and is in the neighborhood near the former coke plant. The city obtained this manufacturing facility for back taxes and the property is contaminated with chlorinated solvents. The property is to be redeveloped into a park and incorporated into the adjacent LaSalle Park . Federal money has been obtained by the City to complete an initial site investigation. Remediation is required for the property.

9. Quantify:

Remediation of brownfields and the subsequent redevelopment is anticipated to bring economic benefits to the redevelopment district, which will in turn improve the quality of life for residents in the targeted area.

10. Expected Environmental Benefits:

Explain the expected environmental benefits of the project and quantify the environmental benefits if possible.

Remediation of brownfields in the proposed district will reduce the potential for harm to human health or the environment as a result of exposure. The proposed funding will assist the City of Indianapolis with necessary environmental assessments.

11. Total Cost of Project:

Cost must be clearly and solely attributable to the proposed SEP.

Citizens will contribute $50,0000

12. Total Amount of Penalty Offsetting:

$50,000

13. Accounting:

Appendix C

1. Name of Applicant:

Respondent’s Name

Citizens Energy Group

2. Street Address:

2020 North Meridian Street, Indianapolis, Indiana 46202

3. Contact Person Phone Number and E-Mail:

Project Director or person who will be responsible for all required submittals

Ann McIver, Director – Environmental Stewardship (amciver@CitizensEnergyGroup.com)

4. Date of Request:

April 20, 2009

5. Name of Project:

City of Indianapolis SustainIndy Project Funding (REVISED)

6. Project Description:

Citizens proposes to provide $50,000 in funding to SustainIndy in support of an environmentally beneficial project under development by the Indianapolis Green Commission and the Indianapolis Office of Sustainability. The project consists of construction of a green roof on Union Station (estimated total cost $125,000). This is a modular system planted with sedums and succulents which are drought tolerant and hold 99% of the first inch of rainfall. RW Armstrong (an engineering firm) is willing to help with pedestrian access from the street level and assist with signage if necessary to also use the roof as a public education tool about the benefits of green roofs

The funding would provide necessary support for non-administrative project costs to the Green Commission for construction of the green roof. The Union Station building manager has confirmed that enough funding, in addition to the Citizens contribution, has been procured to complete the project.

7. Type of Project:

Pollution Protection _______ Environmental Audits ______

Pollution Reduction _______ Comprehensive Environmental Training ______

Environmental Conservation __X_____ Community Involvement ___ ___

Protection and Restoration __X___ Public Awareness ______

Public Health ______ Other ______

7. Project Schedule:

Provide project implementation schedule and status report submittals schedule

The City’s SustainIndy program will coordinate project implementation as resources become available.

8.Conception of Project:

Citizens’ President and CEO, Carey Lykins, was appointed to the Indianapolis Green Commission by Mayor Bart Peterson. The Commission’s work has been continued by Mayor Greg Ballard. The SustainIndy program through the Indianapolis Office of Sustainability has identified environmentally beneficial projects for implementation.

9. Quantify:

Having a green roof on Union Station (a City owned facility) will help with the drainage in the downtown area and keep water off of the city streets.

10. Expected Environmental Benefits:

Explain the expected environmental benefits of the project and quantify the environmental benefits if possible.

The proposed funding will assist SustainIndy in implementation of the project identified. The funding will not support administrative costs for the Office of Sustainability.

A green roof on Union Station has the potential to reduce energy costs and capture stormwater during rain events.

11. Total Cost of Project:

Cost must be clearly and solely attributable to the proposed SEP.

Citizens will contribute $50,000

12. Total Amount of Penalty Offsetting:

$50,000

13. Accounting:

Consistent with Section 6.3.3 of the revised non-rule policy document (08-003-NPD) that defines IDEM’s Supplemental Environmental Project policy, Citizens proposes to make a one-time contribution from dollars associated with the civil penalty assessed in the final agreed order executed in 2006.

14. History:

Demonstrate the project implementer’s history of implementing and managing an environmental enhancement project.

The City of Indianapolis has successfully implemented environmental projects.

15. Reporting:

N/A

16.Affected Laws:

List any permits and/or laws that may be applicable to the project.

N/A

16. Supporting Documentation:

Appendix D

1. Name of Applicant:

Respondent’s Name

Citizens Energy Group

2. Street Address:

2020 North Meridian Street, Indianapolis, Indiana 46202

3. Contact Person Phone Number and E-Mail:

Project Director or person who will be responsible for all required submittals

Ann McIver, Director – Environmental Stewardship (amciver@CitizensEnergyGroup.com)

4. Date of Request:

Original: October 7, 2008

Updated: April 20, 2009

5. Name of Project:

City of Indianapolis ToxAway Day Support

6. Project Description:

Citizens proposes to provide $63,234.50 in funding to the City of Indianapolis Department of Public Works, ToxAway Day program in support of the household hazardous waste disposal events in Marion County.

7. Type of Project:

Pollution Protection _______ Environmental Audits ______

Pollution Reduction __ ____ Comprehensive Environmental Training ______

Environmental Conservation ___X____ Community Involvement __ ____

Protection and Restoration __ X ___ Public Awareness ___ ___

Public Health ___ ___ Other ______

7. Project Schedule:

Provide project implementation schedule and status report submittals schedule

The City of Indianapolis would plan, coordinate, and schedule the ToxAway events during the remainder of calendar year 2009 and 2010.

8.Conception of Project:

The funding for ToxAway events would support the City of Indianapolis in its efforts to assist the public in the management of household hazardous wastes by providing free disposal for common household hazardous wastes. ToxAway events prevent these materials from being discarded carelessly (through sewer drain dumping, for example) through proper management and disposal through a qualified contractor.

9. Quantify:

ToxAway events educate the public of the need to protect surface water and land quality through the proper management of household hazardous wastes.

10. Expected Environmental Benefits:

Explain the expected environmental benefits of the project and quantify the environmental benefits if possible.

ToxAway events reduce the potential for harm to human health or the environment as a result of improper disposal or management of household hazardous wastes. The proposed funding will assist the City in conducting additional events that are beyond their budget.

11. Total Cost of Project:

Cost must be clearly and solely attributable to the proposed SEP.

Citizens will contribute $63,234.50

12. Total Amount of Penalty Offsetting:

$63,234.50

13. Accounting:

14. History:

Demonstrate the project implementer’s history of implementing and managing an environmental enhancement project.

The City of Indianapolis has successfully implemented the ToxAway program for many years.

15. Reporting:

N/A

16.Affected Laws:

List any permits and/or laws that may be applicable to the project.

N/A

17. Supporting Documentation:

None

Appendix E

1. Name of Applicant:

Respondent’s Name

Citizens Energy Group

2. Street Address:

2020 North Meridian Street, Indianapolis, Indiana 46202

3. Contact Person Phone Number and E-Mail:

Project Director or person who will be responsible for all required submittals

Ann McIver, Director – Environmental Stewardship
(amciver@CitizensEnergyGroup.com)

4. Date of Request:

Original: April 20, 2009

5. Name of Project:

Low Income Rental Unit Weatherization

6. Project Description:

Citizens proposes to provide funding to the Indianapolis Housing Authority and Community Development Corporations (CDCs) in Marion County to support low income rental unit weatherization and energy education.

The Indianapolis Housing Authority would be provided up to $150,000 to upgrade furnaces in rental communities (Laurel Wood, Blackburn Terrace, Beechwood Gardens, Rowney Terrace, and Hawthorne) in order to reduce the operating costs for low-income tenants that reside in the rental units. The upgraded furnaces must be no less than 92% efficient. Approximately 800 tentants would receive benefits from this grant.

Grant funding in the amount of up to $150,000 would be provided to CDCs to support weatherization (including insulation, high-efficient furnaces and water heaters, and air sealing) in single family rentals. There will be 45 grants available, and each CDC would be eligible to apply for up to 10 grants.

An additional $10,000 would be provided to support energy education sessions. Each tenant that lives in a CDC rental unit receiving a grant (above) would be required to participate in the education session. Energy savings kits would be purchased that include both gas and electric energy savings measures. Citizens will seek a matching grant from IPL to support this component.

7. Type of Project:

Pollution Protection _______ Environmental Audits ______

Pollution Reduction __ _____ Comprehensive Environmental Training ______

Environmental Conservation ____X___ Community Involvement __ ____

Protection and Restoration __ ___ Public Awareness ___ ___

Public Health ______ Other ______

8. Project Schedule:

Provide project implementation schedule and status report submittals schedule

Citizens Energy Group would work with IHA and the CDCs to implement the program over a 12-month period.

9.Conception of Project:

Citizens has been a supporter of energy efficiency, energy education, and weatherization for many years. However, funding for such programs is typically restricted to owner-occupied units. In conjunction with the IHA and CDCs, this project would provide an opportunity to reduce energy costs and energy consumption in rental units through the implementation of energy efficiency measures.

10. Quantify:

N/A.

11. Expected Environmental Benefits:

Explain the expected environmental benefits of the project and quantify the environmental benefits if possible.

Energy efficiency and energy conservation are key strategies that can reduce the impacts of carbon emissions associated with fossil fuels. Further, at a time when many families are facing economic challenges, this project provides tangible benefits (reduced energy costs) that will help these families meet their basic needs.

12. Total Cost of Project:

Cost must be clearly and solely attributable to the proposed SEP.

Citizens will contribute $150,000

13. Total Amount of Penalty Offsetting:

$150,000

13. Accounting:

Citizens will provide three (3) project reports to IDEM. The first will include the announcement to the IHA and CDCs that describe funding mechanisms and eligibility. The second project report will provide an update on expenditures; the third report will provide sufficient detail to assure IDEM that the SEP funding has been used in the way described, and not to cover administrative costs.

14. History:

Demonstrate the project implementer’s history of implementing and managing an environmental enhancement project.

The organizations in question (Citizens, IHA, CDCs) have experience with owner-occupied weatherization.

15. Reporting:

N/A

16.Affected Laws:

List any permits and/or laws that may be applicable to the project.

N/A

17. Supporting Documentation:

None – will be provided as project is implemented.