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STATE OF |
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BEFORE THE INDIANA
DEPARTMENT |
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COMMISSIONER OF THE
DEPARTMENT Complainant, v. Johns
Manville, Inc., Respondent. |
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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
2.
Respondent is Johns
Manville, Inc. (“Respondent”), which owns and operates the stationary
fiberglass insulation manufacturing plant with Plant I.D. No. 177- 00006 located
at 814 Richmond Ave. in Richmond, Wayne County, Indiana (the “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 (“NOV”) on May 21, 2008 via
Certified Mail to:
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S. Hochhauser, President |
The Prentice-Hall Corporation System, |
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Johns Manville International, Inc. |
Registered Agent |
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5.
During an
investigation conducted by representatives of IDEM, the following violations
were found:
a.
Pursuant to CP
177-5873-00006 and condition D.3.1 of Part 70 Permit 177-22598-00006, issued
December 20, 2007, the particulate matter (“PM”) emissions from each Forming
and Collection Module shall comply with the following limitations: Line 2
Forming and Collection 58.3 tons per year and 0.02 grains per dry standard
cubic foot (“gr/dscf”).
Pursuant
to 326 IAC 6.5-10-11 and condition D.3.3 of Part 70 Permit 177-22598-00006, the
particulate matter (“PM”) emissions from each Forming and Collection Module
shall comply with the following limitations: Line 2 Forming and Collection 10.3
pounds PM/PM10 per hour, 6.78 pounds VOC per hour, and 21.0 pounds CO per hour.
Based on a stack test conducted on January 30, 2008 on Line 2 Forming and
Collection Module, Respondent exceeded 10.3 pounds PM/PM10 per hour, and 0.02
gr/dscf, in violation of CP 177-5873-00006, 326 IAC 6.5-10-11, and conditions
D.3.1 and D.3.3 of Part 70 Permit 177-22598-00006.
b.
Pursuant to SSM
177-22598-00006, 326 IAC 2-2, and condition D.2.1(b) of Part 70 Permit
177-22598-00006, the CO emissions from the Electric Melter shall not exceed 0.83
pounds per hour.
Based
on a stack test conducted on January 30, 2008 on the Electric Melter,
Respondent exceeded 0.83 pounds per hour, in violation of SSM 177-22008-00006,
issued August 10, 2006, 326 IAC 2-2, and condition D.2.1(b) of Part 70 Permit
177-22598-00006.
Based
on an inspection conducted on February 27, 2008, by an IDEM representative:
c. Pursuant to condition D.1.2 of Part 70 Permit 177-22598-00006, CP-177-5873-00006, issued
April 22, 1999, and 326 IAC 2-2-3 (Prevention of Significant Deterioration
(“PSD”) Rules), the raw material handling, storage and batching facilities
stated above shall comply with the following limitation, The Railcar Receiving
Station shall be equipped with a bootlift device or similar device and shall
not exceed an average of three percent (3%) opacity in any 24 consecutive
readings recorded in 15 second intervals in accordance with the applicable
requirements of 40 CFR 60, Appendix A, Method 9.
Pursuant
to condition D.1.4 of Part 70 Permit
177-22598-00006, in order to comply with Conditions D.1.1 (for the rail car unloading
station) and D.1.2(a)(1), the boot lift device or similar device and the
baghouse used to control PM emissions and opacity from the rail car unloading
station shall be in operation at all times the associated rail car unloading
station is in operation.
Respondent’s rail car unloading
station is no longer equipped with a bootlift or similar device, in violation
of conditions
D.1.2 and D.1.4 of Part 70 Permit
177-22598-00006, CP-177-5873-00006, and 326 IAC 2-2-3.
Compliance
with the opacity limitation was maintained by Respondent by the use of the
baghouse.
d. Pursuant
to condition C.14 of Part 70 Permit 177-22598-00006, upon detecting an excursion
or exceedance, the Permittee shall restore operation of the emissions unit
(including any control device and associated capture system) to its normal or
usual manner of operation as expeditiously as practicable in accordance with
good air pollution control practices for minimizing emissions.
Respondent failed to take corrective action in response to pressure drops being
outside of range stated in the permit for the silos during January and February
2008, in violation of condition C.14 of Part 70 Permit 177-22598-00006.
e. Pursuant
to condition D.1.7 of Part 70 Permit 177-22598-00006, the Permittee shall record
the pressure drop across the baghouses used in conjunction with the Railcar Receiving Station, Raw Material Silos, and
Day Bins at least once per day when the respective
facilities are in operation.
Pursuant to condition D.1.9 of Part 70
Permit 177-22598-00006, to document compliance with Condition D.1.7, the Permittee
shall maintain weekly records of the pressure
drop during normal operations. The Permittee shall include in its daily record when a pressure drop reading is not taken and
the reason for the lack of a pressure drop reading (e.g.
the process did not operate that day).
Between January 2-9, 2008, Respondent failed to take or record pressure drop
readings for the silos, in violation of conditions D.1.7 and D.1.9 of Part 70
Permit 177-22598-00006.
f.
Pursuant to
condition D.2.5 of Part 70 Permit 177-22598-00006, in order to demonstrate
compliance with condition D.2.1, the Permittee shall perform PM/PM10, VOC, and
CO testing on the Electric Melter no later than 180 days after initial startup.
Pursuant
to condition D.3.6 of Part 70 Permit 177-22598-00006, in order to demonstrate
compliance with conditions D.3.1 and D.3.2, the Permittee shall perform
PM/PM10, VOC, and CO testing on one of the Forming and Collection Modules
within 180 days after initial startup of the Electric Melter.
Pursuant
to condition D.4.5 of Part 70 Permit 177-22598-00006, in order to demonstrate
compliance with condition D.4.1, the Permittee shall perform PM/PM10 testing on
one of the Shredding and Packaging facilities within 180 days after initial
startup of the Electric Melter.
Pursuant
to 40 CFR 60.685 which incorporates 40 CFR 60.8(a), except as specified in paragraphs (a)(1),(a)(2),
(a)(3), and (a)(4) of this section, within 60 days after achieving the maximum
production rate at which the affected facility will be operated, but not later
than 180 days after initial startup of such facility, or at such other times
specified by this part, and at such other times as may be required by the
Administrator under section 114 of the Act, the owner or operator of such
facility shall conduct performance test(s) and furnish the Administrator a
written report of the results of such performance test(s).
The
Electric Melter was started up in April 2007, Respondent failed to perform
testing until January 2008, in violation of conditions D.2.5, D.2.6 and D.4.5
of Part 70 Permit 177-22598-00006.
g.
Pursuant to 326
IAC 2-7-3, no Part 70 source may operate after the time that it is required to submit a timely
and complete application except in compliance with a Part 70 permit issued
under this rule. A source can continue to operate without being
in violation of this rule if it submits a timely and complete application.
This source operated
without submitting a timely and complete Part 70 permit application, in
violation of 326 IAC 2-7-3.
Based
on the 2006 Annual Compliance Certification and Quarterly Deviation Reports for
the first, second, and third quarters of 2006, the following violations were
found.
h. Based
on condition D.1.1 of Part 70 Permit No. 177-16463-00006, source has an
allowable particulate matter (“PM”) limitation not to exceed 0.03 gr/dscf.
Based
on condition D.1.2 of Part 70 Permit No. 177-16463-00006 and CP-177-5873-00006
and 326 IAC 2-2-3, raw material handling, storage and batching facilities shall
comply with the following limitations: the unloading station shall be equipped
with a bootlift device, the raw material conveyor system shall be enclosed, and
the raw material batch silos and day bins shall be equipped with fabric
filters. Opacity shall not exceed three
percent (3%) in any 24 consecutive readings recorded in 15 second intervals.
Based on the 2006 Annual Compliance Certification and first quarter 2006
Deviation Report, Respondent observed emission exceedance 43 times, in
violation of conditions D.1.1 and D.1.2 of Part 70 Permit No. 177-16463-00006,
CP-177-5873-00006, and 326 IAC 2-2-3.
i. Pursuant
to condition D.2.1 of Part 70 Permit No. 177-16463-00006, CP-177-5873-00006 and
326 IAC 2-2-3, each furnace shall comply with proscribed emission limitations.
Pursuant to condition D.2.5 of Part 70 Permit No. 177-16463-00006, in order to
comply with condition D.2.1 of Part 70 Permit No. 177-16463-00006, the
electrostatic precipitator (“ESP”) for PM control shall be in operation and
control emissions from the Line 2 and Line 3 natural gas-fired melt furnaces at
all times when either furnace is in operation.
Pursuant
to condition D.2.7 of Part 70 Permit No. 177-16463-00006, the Permittee shall
maintain the field voltages of the ESP at a minimum level of 20 Kilovolts or a
minimum level determined from a compliant stack test.
Based
on the 2006 Annual Compliance Certification and the first and second quarter
2006 Deviation Reports, Respondent shut down the ESP and or dropped the voltage
below 20 Kilovolts on 4 days in the first and second quarters of 2006, in
violation of conditions D.2.1, D.2.5 and D.2.7 of Part 70 Permit No.
177-16463-00006, CP-177-5873-00006 and 326 IAC 2-2-3.
j. Pursuant
to condition D.4.1 of Part 70 Permit No. 177-16463-00006, CP-177-5873-00006 and
326 IAC 2-2-3, each shredding and packaging area shall comply with proscribed
PM/PM10 emission limitations.
Pursuant
to condition D.4.2 of Part 70 Permit No. 177-16463-00006 and 236 IAC 6-1-2, the
allowable PM emission rates for each shredding and packaging facility shall not
contain PM in excess of 0.03 gr/dscf.
Pursuant
to condition D.4.5 of Part 70 Permit No. 177-16463-00006, in order to comply
with conditions D.4.1 and D.4.2, the baghouses for PM control shall be in
operation at all times the associated shredding and packaging facilities are in
operation.
Based on the 2006 Annual Compliance Certification and the second quarter 2006
Deviation Report, Respondent reported the failure to operate the baghouses used
to control emissions, 7 times, in violation of conditions D.4.1, D.4.2 and
D.4.5 of Part 70 Permit No. 177-16463-00006, CP-177-5873-00006 and 326 IAC
2-2-3.
Based
on physical construction of the shredding and packaging facilities, operation
without baghouses is not possible.
Deviation report was made in error.
k. Pursuant
to condition D.1.5(e) of Part 70 Permit No. 177-16463-00006, the Compliance
Response Plan for this unit shall contain troubleshooting contingency and
response steps for when an abnormal emission is observed. Failure to take response steps in accordance
with Section C – Compliance Monitoring Plan – Failure to Take Response Steps,
shall be considered a violation of this permit.
Based
on the 2006 Annual Compliance Certification and the first quarter 2006 Deviation
Report, Respondent failed to take response steps of observed abnormal emissions
43 times in the first quarter 2006, in violation of condition D.1.5(e) of Part
70 Permit No. 177-16463-00006.
l. Pursuant
to condition D.1.5(a) of Part 70 Permit No. 177-16463-00006, visible emission
notations of the railcar unloading station, raw material batch silos, and day
bins stack exhausts shall be performed once per shift during normal daylight
operations when exhausting to atmosphere.
Pursuant
to condition D.1.5(a) of Part 70 Permit No. 177-22666-00006, visible emission
notations of the stack exhaust from the Railcar Receiving Station, Raw Material
Silos, Day Bin 1 and Day Bin 2 shall be performed once per day during normal
daylight operations when exhausting to atmosphere.
Pursuant
to condition D.1.9 of Part 70 Permit No. 177-16463-00006, to document
compliance with condition D.1.5, the Permittee shall maintain records of
visible emission notations of the mentioned stack exhaust once per shift.
Pursuant
to condition D.1.8 of Part 70 Permit No. 177-22666-00006, to document
compliance with condition D.1.5, the Permittee shall maintain once per day
records of the visible emission notations required by the condition.
Based on the 2006 Annual Compliance Certification and the second and third
quarter 2006 Deviation Reports, Respondent failed to perform and record visible
emission notations 12 times in the second and third quarter of 2006, in
violation of condition D.1.5(a) of Part 70 Permit Nos. 177-16463-00006 and 177-22666-00006,
condition D.1.9 of Part 70 Permit No. 177-16463-00006, and condition D.1.8 of
Part 70 Permit No. 177-22666-00006.
m. Pursuant
to condition D.1.6 of Part 70 Permit No. 177-16463-00006, the Permittee shall
record the total static pressure drop across baghouse used in conjunction with
the rail car unloading station. When for
any one reading, the pressure drop across baghouse equipped rail car unloading
station is outside the normal range, the Permittee shall take reasonable
response steps in accordance with Section C – Compliance Response Plan. Failure to take response steps, in accordance
with Section C – Compliance Response Plan, shall be considered a violation of
this permit.
Based on the 2006 Annual Compliance Certification and the first quarter 2006
Deviation Report, Respondent failed to take action for operation of the
baghouse outside the normal range, 1 time in the first quarter of 2006, in
violation of condition D.1.6 of Part 70 Permit No. 177-16463-00006.
n. Pursuant
to condition D.2.11(e) of Part 70 Permit No. 177-16463-00006, the Compliance
Response Plan for this unit shall contain troubleshooting contingency and
response steps for when an abnormal emission is observed. Failure to take response steps in accordance
with Section C – Compliance Monitoring Plan – Failure to Take Response Steps,
shall be considered a violation of this permit.
Based
on the 2006 Annual Compliance Certification and the first quarter 2006
Deviation Report, failed to take response steps of observed abnormal emissions two
(2) times in the first quarter 2006, in violation of condition D.2.11(e) of
Part 70 Permit No. 177-16463-00006.
o. Pursuant
to condition D.4.7(e) of Part 70 Permit No. 177-16463-00006, the Compliance
Response Plan for this unit shall contain troubleshooting contingency and
response steps for when an abnormal emission is observed. Failure to take response steps in accordance
with Section C – Compliance Monitoring Plan – Failure to Take Response Steps,
shall be considered a violation of this permit.
Based
on the 2006 Annual Compliance Certification and the second quarter 2006
Deviation Report, Respondent failed to take response steps to observed abnormal
emissions eight (8) times in the second quarter 2006, in violation of condition
D.4.7(e) of Part 70 Permit No. 177-16463-00006.
p. Pursuant
to condition D.4.8 of Part 70 Permit No. 177-16463-00006, the Permittee shall
record the total static pressure drop across the baghouse used in conjunction
with processes, at least once per shift when the processes are in operation
when venting to the atmosphere. Unless
operated under conditions for which the Compliance Response Plan specifies
otherwise, the pressure drop across the baghouse shall be maintained within the
range of 1.0 to 7.0 inches of water or a range established during the latest
stack test. The Compliance Response Plan
for this unit shall contain troubleshooting contingency and response steps for
when the pressure reading is outside of the above mentioned range for any one
reading. Failure to take response steps,
in accordance with Section C – Compliance Response Plan, shall be considered a
violation of this permit.
Based on the 2006 Annual Compliance Certification and the first quarter 2006
Deviation Report, Respondent failed to take action for operation of the
baghouse outside the normal range, 32 times in the first quarter of 2006, in
violation of condition D.4.8 of Part 70 Permit No. 177-16463-00006.
On
September 3, 2008, Respondent waived the issuance of a Notice of Violation for
the following violations:
q. Pursuant
to 326 IAC 6.5-10-11 and condition D.3.3 of Part 70 Permit 177-22598-00006, the
particulate matter (“PM”) emissions from each Forming and Collection Module
shall comply with the following limitations: Line 2 Forming and Collection 58.3
tons per year and 0.02 grains per dry standard cubic foot (“gr/dscf”).
On June 18,
2008 a stack re-test was conducted as a result of the violation cited in
paragraph ‘a.’ of this Agreed Order.
Based on this re-test of the Line
2 Forming and Collection Module, Respondent exceeded 0.02 gr/dscf, in violation
of 326 IAC 6.5-10-11 and condition D.3.3 of Part 70 Permit 177-22598-00006.
A
follow-up stack test was conducted on September 3 and 4, 2008. Respondent achieved compliance with the limit
while operating at 33% of capacity.
r. Pursuant
to 326 IAC 2-2 and condition D.3.1 of Part 70 Permit 177-22598-00006, each
Forming and Collection Module shall comply with the following limitation,
PM/PM10 10.3 lbs/hr.
On June 18, 2008 a stack re-test was conducted as a
result of the violation cited in paragraph ‘a.’ of this Agreed Order. Based on this re-test of the Line 2 Forming and Collection Module, Respondent
exceeded 10.3 lbs/hr of PM, in violation of 326 IAC 2-2 and condition D.3.1 of
Part 70 Permit 177-22598-00006.
A
follow-up stack test was conducted on September 3 and 4, 2008. Respondent achieved compliance with the limit
while operating at 33% of capacity.
6.
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 Part 70 Significant Permit Modification 177-22598-00006, unless
superseded by issue of new permit modifications or permit renewal. IDEM recognizes that an application to
address the items in Order Paragraph No. 3 has been submitted to address the
items referenced in Order Paragraph No. 3, this Agreed Order shall resolve
noncompliance with those conditions through and including the time when a
permit decision is issued in response to the application.
3.
Within Ninety
(90) days of the Effective Date, Respondent shall submit a permit application
to address the following:
a.
A correction of
the D.1 condition relating to the bootlift requirement.
b.
Operation of the
Electric Melter when the control device(s) are disabled for Preventative
Maintenance.
c.
A correction to
reflect the actual CO emissions of the Electric Melter
d.
A Modification
to address operation of Line 2 Forming and Collection at a reduced production
rate until such time as compliance can be achieved, and demonstrated, at rated
capacity.
4.
If permit
application(s) in Order Paragraph No. 3 is/are, denied or withdrawn, within
ninety (90) days of issuance of withdrawal or denial of the submitted
application, Respondent shall submit, to the Office of Air Quality – Case
Manager, documentation of how compliance with Part 70 Significant Permit
Modification 177-22598-00006 will be maintained.
5.
All submittals
required by this Agreed Order, unless Respondent is notified otherwise in
writing by IDEM, shall be sent to:
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Matthew
Chaifetz, Compliance and Enforcement Manager |
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Compliance
and Enforcement Branch – Mail Code 60-02A |
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Indiana
Department of Environmental Management |
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6.
Respondent is
assessed a civil penalty of Sixty-Three Thousand Five Hundred Dollars ($63,500). Within thirty (30) days of the Effective Date
of the Agreed Order, Respondent shall pay a portion of this penalty in the
amount of Twelve Thousand Seven Hundred Dollars ($12,700). Said penalty amount shall be due and payable
to the Environmental Management Special Fund. In lieu of payment of the
remaining civil penalty, Respondent shall perform and complete a Supplemental
Environmental Project (“SEP”) Respondent estimates that this SEP will cost
Fifty Thousand Eight Hundred Dollars ($50,800).
As
a Supplemental Environmental Project, Respondent shall, within thirty (30) days
of the Effective Date, provide Fifty Thousand Eight Hundred Dollars ($50,800)
to Community Action of East Central Indiana (“CAECI”). These funds shall be used to provide energy
audits and weatherization of low income homes in the
In
the event that CAECI does not completely utilize the SEP funds ($50,800) within
twelve (12) months of the Effective Date, the remaining unspent funds, shall be
paid by Respondent to the Environmental Management Special Fund, within fifteen
(15) days from Respondent's receipt of IDEM’s notice to pay.
7.
In the event the
terms and conditions of the following paragraphs are violated, Complainant may
assess and Respondent shall pay a stipulated penalty in the following amount:
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Paragraph |
Violation |
Stipulated
Penalty |
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Failure to submit permit modification application
within 90 days of the Effective Date. |
$500 per week or part thereof |
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Failure to submit documentation for compliance
during preventative maintenance within 90 days of permit modification
withdrawal or determination |
$500 per week or part thereof |
8.
Stipulated
penalties shall be due and payable within thirty (30) days after Respondent
receives written notice that Complainant has determined a stipulated penalty is
due. Assessment and payment of
stipulated penalties shall not preclude Complainant from seeking any additional
relief against Respondent for violation of this Agreed Order. In lieu of any of the stipulated penalties
set out above, Complainant may seek any other remedies or sanctions available
by virtue of Respondent’s violation of this Agreed Order or Indiana law,
including, but not limited to, civil penalties pursuant to IC 13-30-4.
9.
Civil and
stipulated 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:
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Indiana
Department of Environmental Management |
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Cashier
– Mail Code 50-10C |
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10.
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.
11.
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.
12.
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.
13.
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.
14.
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.
15.
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.
16.
Nothing in this
Agreed Order shall prevent IDEM or anyone acting on its behalf 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.
17.
This Agreed
Order shall remain in effect until IDEM issues a Resolution of Case letter to
Respondent.
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TECHNICAL RECOMMENDATION: |
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RESPONDENT: |
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Department of Environmental Management |
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Johns Manville, Inc. |
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Craig Henry, Chief |
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Compliance and Enforcement Section 4 |
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Title: |
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Office of Air Quality |
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COUNSEL FOR COMPLAINANT: |
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COUNSEL FOR RESPONDENT: |
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For the Department of Environmental Management |
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Deputy Attorney General |
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Date: |
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APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF
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MANAGEMENT THIS |
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Commissioner: |
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Signed on December 18, 2009 |
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Thomas W. Easterly |
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Commissioner |
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