STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

AM GENERAL LLC,

Respondent.

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Case No. 2004-14146-A

 

 

AGREED ORDER

 

Complainant and Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order.  Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein.  Respondent's entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondent may have in any future administrative or judicial proceeding, except a proceeding to enforce this order.

 

I.  FINDINGS OF FACT

 

1.                  Complainant is the Commissioner (“Complainant”) of the Indiana Department of Environmental Management (“IDEM”), a department of the State of Indiana created by Indiana Code (“IC”) 13-13-1-1.

 

2.                  Respondent is AM General LLC (“Respondent”), which owns and operates a stationary plant for the production of HUMMERs for military and commercial use with Plant I.D. No. 141-00031 located at 13200 McKinley Highway in Mishawaka, St. Joseph County, Indiana (“Site”).

 

3.                  IDEM has jurisdiction over the parties and the subject matter of this action.

 

4.                  Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation on April 5, 2007 via Certified Mail to:

 

Rick Smith, Vice President

CT Corporation System, Registered Agent

AM General LLC

215 E. Ohio Street, Suite 1100

13200 McKinley Hwy

Indianapolis, IN  46204

Mishawaka, IN  46545

 

 

5.                  During an investigation conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to IC 13-30-2-1(7), a person may not construct, install, operate, conduct, or modify, without prior approval of the department, any equipment or facility of any type that may cause or contribute to pollution or be designed to prevent pollution.

 

Pursuant to Condition D.5.5 of PSD/Part 70 Significant Source Modification No. 141-11673-00031 issued to Respondent on June 28, 2000 (“Construction Permit”), Respondent shall submit an affidavit of construction verifying that the emission units were constructed as proposed in the application.   If actual construction of the emissions units differs significantly from the construction proposed in the application, Respondent may not begin operation until the source modification has been revised.

 

Respondent violated the permit to construct the HUMMER II vehicle production plant.  Specifically, the application indicated the construction of separate lines for application of the primer and the topcoat that resulted in separate volatile organic compound (“VOC”) limits for each line.  Respondent constructed the painting system with a combined flash tunnel, in a manner not in accordance with the application submitted or the permit issued, which resulted in an inability to demonstrate compliance with the individual VOC limits, in violation of IC 13-30-2-1(7) and Condition D.5.5 of the Construction Permit.

 

b.         Pursuant to 326 IAC 2-2-10, the owner or operator of a proposed major stationary PSD source or PSD modification shall submit all information necessary to perform any analysis or make any determination required under this rule.

 

Respondent failed to submit information related to changes in construction configuration of the H2 painting system that affected IDEM’s ability to calculate the appropriate limit for the painting system, in violation of 326 IAC 2-2-10.

 

c.         Pursuant to 326 IAC 2-2-3 and Condition D.5.1 of Part 70 Significant Source Modification 141-22343-00031, issued to the Respondent on March 14, 2007, the Hummer II Primer/Topcoat System shall be limited to controlled VOC emissions of 4.5 pounds of VOC per gallon applied coating solids determined on a daily-volume-weighted average and actual transfer efficiencies.  This revised BACT limit is representative of the allowable emissions for the Hummer II Primer and Topcoat operations as actually constructed by the Respondent.

Respondent exceeded the allowable level of VOC emissions from the Hummer II Primer/Topcoat System during October 2003 and March through August of 2004, in violation of 326 IAC 2-2-3.

 

6.                  Respondent waives issuance of a Notice of Violation and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3 for the allowable emission limit exceedences in Findings of Fact Paragraph No. 5, Item c.

 

7.                  In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

 

II.  ORDER

 

1.                  This Agreed Order shall be effective (“Effective Date”) when it is approved by Complainant or Complainant’s delegate, and has been received by Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  Respondent shall comply with applicable permit requirements in 326 IAC 2-2, 326 IAC 2-7 and IC 13-30-2-1(7), and Condition D.5.1 of Part 70 Significant Source Modification 141-22343-00031.

 

3.                  All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Janusz Johnson, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.                  Respondent is assessed a civil penalty of One Hundred Six Thousand Eight Hundred dollars ($106,800).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date.  In the event that the civil penalty is not paid within thirty (30) days of the Effective Date, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101.  The interest shall continue to accrue until the civil penalty is paid in full.

 

5.                  Civil penalties are payable by check to the “Environmental Management Special Fund.”  Checks shall include the Case Number of this action and shall be mailed to:

 

Indiana Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

6.                  This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns.  Respondent’s signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

7.                  In the event that any terms of this Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if this Agreed Order did not contain the invalid terms.

 

8.                  The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred.  Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

 

9.                  This Agreed Order is not and shall not be interpreted to be a permit or a modification of an existing permit.  This Agreed Order, and IDEM’s review or approval of any submittal made by Respondent pursuant to this Agreed Order, shall not in any way relieve Respondent of its obligation to comply with the requirements of its applicable permit or any applicable Federal or State law or regulation.

 

10.             Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondent’s compliance with any aspect of this Agreed Order will result in compliance with the provisions of any permit, order, or any applicable Federal or State law or regulation.  Additionally, IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of Respondent’s efforts to comply with this Agreed Order.

 

11.             Nothing in this Agreed Order shall prevent or limit IDEM’s rights to obtain penalties or injunctive relief under any applicable Federal or State law or regulation, except that IDEM may not, and hereby waives its right to, seek additional civil penalties for the same violations specified in the NOV.

 

12.             Nothing in this Agreed Order shall prevent IDEM from communicating with the EPA or any other agency or entity about any matters relating to this enforcement action.  IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of such communications with the EPA or any other agency or entity.

 

13.             This Agreed Order shall remain in effect until Respondent complies with the terms of Order Paragraph No. 4.  IDEM will issue a Resolution of Case letter to Respondent thereafter.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

AM General LLC

 

 

 

By:

 

 

By:

 

 

Craig Henry

 

Printed:

 

 

Chief, Air Section

 

Title:

 

 

Office of Enforcement

 

 

 

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

 

, 2008.

 

 

For the Commissioner:

 

 

 

Signed on May 16, 2008

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement