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STATE OF
INDIANA |
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BEFORE THE
INDIANA DEPARTMENT |
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COMMISSIONER
OF THE DEPARTMENT Complainant, v. KNAUF
INSULATION GmbH, 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 Indiana created by Indiana
Code (“IC”) 13-13-1-1.
2.
Respondent
is Knauf Insulation GmbH (“Respondent”), which is a
fiberglass manufacturing facility with Plant ID No. 145-00001, located at 400
E. Walker Street, in Shelbyville, Shelby 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 (“NOV”) on May 16, 2013 and
January 22, 2014 via Certified Mail to the following individuals.
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Mark
Andrews, CEO |
Candace
Bankovich, Registered Agent |
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One
Knauf Drive |
One
Knauf Drive |
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Shelbyville,
IN 46176 |
Shelbyville,
IN 46176 |
5.
During
an investigation conducted by a representative of IDEM, the following
violations were found:
a.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.1.7(b), Permittee
shall perform compliance testing using a non-phenol/formaldehyde binder at MFG
602 forming process to verify compliance with the PM emission limit in permit condition
D.1.5. Testing shall be completed no later
than 60 days after issuance of permit No. 145-28817-00001.
Compliance testing at MFG 602 forming process to verify
compliance with PM emission limit in permit condition D.1.5 took place
on May 1, 2012. Respondent did not
complete this testing within the required timing, in violation of permit No.
145-28835-00001 condition D.1.7(b).
b.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.2.3(a), Permittee
shall perform testing on the fiberglass pipe insulation production Line 3010
stacks 17-1, 17-2, 17-3, and 15-1 or 15-2 in order to demonstrate compliance
with the PM emission limit in permit condition D.2.2(a). Testing shall be performed no later than 60
days after achieving the maximum capacity, but no later than 180 days after
start-up.
Compliance testing for the fiberglass pipe insulation production
Line 3010 stacks 17-1, 17-2, and 17-3 to verify compliance with the PM emission
limit in permit condition D.2.2(a) took place on June
16, 2011. However, this testing did not
include all required emission stacks (either stacks 15-1 or 15-2). Testing on stack 15-2 took place on May 3,
2012. Respondent did not complete this
testing within the required timing, in violation of permit No. 145-28835-00001
condition D.2.3(a).
c.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.2.3(b), Permittee
shall perform testing on the fiberglass pipe insulation production Line 3010
stacks 17-1, 17-2, 17-3, and 15-1 or 15-2 in order to demonstrate compliance
with the PM10 emission limit in permit condition D.2.2(b). Testing shall be performed no later than 180
days after publication of the new or revised condensable PM test method
referenced in the US EPA’s Final Rule for Implementation of the New Source
Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers signed on
May 8, 2008.
Compliance testing for the fiberglass pipe insulation production
Line 3010 stacks 17-1, 17-2, and 17-3 to verify compliance with the PM10
emission limit in permit condition D.2.2(b) took place
on June 16, 2011. However, this testing
did not include all required emission stacks (either stacks 15-1 or 15-2). Testing on stack 15-2 took place on May 3,
2012. Respondent did not complete this
testing within the required timing, in violation of permit No. 145-28835-00001
condition D.2.3(b).
d.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.5.11(a)(2), Permittee shall complete stack testing of the Forming
process on line 611 before control to determine compliance with VOC BACT
emission limits as required in permit condition D.5.5(a), while operating line
611 with the phenol/formaldehyde binder.
Testing shall be performed no later than 60 days after achieving maximum
capacity of the proposed modification approved under permit 145-20887-00001,
but no later than 180 days after initial startup of the proposed expansion
approved under permit 145-20887-00001.
Compliance testing for the Forming
process on line 611 to verify compliance with VOC BACT emission limit in permit
condition D.5.5(a) took place on May 3, 2012. Respondent did not complete this testing
within the required timing, in violation of permit No. 145-28835-00001
condition D.5.11(a)(2).
e.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.5.11(a)(2), Permittee shall complete stack testing of the Forming
process on line 612 before control to determine compliance with VOC BACT
emission limits as required in permit condition D.5.5(b)(1), while operating
line 612 with the phenol/formaldehyde binder. Testing shall be performed no
later than 60 days after achieving maximum capacity of the proposed
modification approved under permit 145-20887-00001, but no later than 180 days
after initial startup of the proposed expansion approved under permit
145-20887-00001.
Compliance testing for the Forming
process on line 612 to verify compliance with VOC BACT emission limit in permit
condition D.5.5(b)(1) took place on May 2, 2012. Respondent did not complete this testing
within the required timing, in violation of permit No. 145-28835-00001
condition D.5.11(a)(2).
f.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.5.11(a)(2), Permittee shall complete stack testing of the combined
613 Forming and 613 Curing/Cooling process to determine compliance with VOC
BACT emission limits as required in permit condition D.5.5(c)(i)(3), while operating line 613 with the
phenol/formaldehyde binder. Testing shall be performed no later than 60 days after
achieving maximum capacity of the proposed modification approved under permit
145-20887-00001, but no later than 180 days after initial startup of the
proposed expansion approved under permit 145-20887-00001.
Compliance testing for the combined
613 Forming and 613 Curing/Cooling process to verify compliance with VOC BACT
emission limit in permit condition D.5.5(c)(i)(3)
took place on May 4, 2012. Respondent did
not complete this testing within the required timing, in violation of permit
No. 145-28835-00001 condition D.5.11(a)(2).
g.
Pursuant to 326 IAC 2-7-6 and permit No.
145-28835-00001 condition D.5.11(a)(2), Permittee shall complete stack testing of the combined
614 Forming and 614 Curing/Cooling process to determine compliance with VOC
BACT emission limits as required in permit condition D.5.5(d)(i)(3), while operating line 614 with the
phenol/formaldehyde binder. Testing shall be performed no later than 60 days
after achieving maximum capacity of the proposed modification approved under
permit 145-20887-00001, but no later than 180 days after initial startup of the
proposed expansion approved under permit 145-20887-00001.
Compliance testing for the combined
614 Forming and 614 Curing/Cooling process to verify compliance with VOC BACT
emission limit in permit condition D.5.5(d)(i)(3)
took place on May 3, 2012. Respondent did
not complete this testing within the required timing, in violation of permit
No. 145-28835-00001 condition D.5.11(a)(2).
h.
Pursuant to 326 IAC 2-2-3 and permit No.
145-28835-00001 condition D.1.3(b)(2)(A), the PM/PM10
emissions from operation of the 602 LF MFG shall not exceed 2.8 pounds per ton
of glass pulled.
Stack testing was conducted on May 2,
2012 in which PM emissions from the 602 LF MFG exceeded the 2.8 lbs/ton limit,
in violation of 326 IAC 2-2-3 and permit No. 145-28835-00001 condition
D.1.3(b)(2)(A). The stack was retested
in compliance on June 13, 2012.
i.
Pursuant to 326 IAC 8-1-6 and permit No.
145-28835-00001 condition D.5.5(c)(i)(2) and
D.5.5(d)(i)(2), the overall control efficiency of
each RTO shall be at least 95% when controlling the VOC emissions from the 613
and 614 Curing/Cooling operation.
Stack testing was conducted on October
7, 2009 in which the control efficiency of the RTO was less than the minimum of
95%, in violation of 326 IAC 8-1-6 and permit No. 145-28835-00001 condition
D.5.5(c)(i)(2) and D.5.5(d)(i)(2).
j.
Pursuant to permit No. 145-28835-00001
condition C.16, a retest to demonstrate compliance shall be performed no later
than 180 days after the date of the test.
A retest to demonstrate compliance of the RTO controlling VOC emissions
from the 613/614 Curing/Cooling process was required by April 7, 2010 (180 days
after the non compliance stack test conducted on October 7, 2009).
Respondent did not complete a retest
of the RTO controlling VOC emissions within the required timing, in violation
of permit No. 145-28835-00001 condition C.16.
k.
Pursuant to 326 IAC 8-1-6 and permit No.
145-28835-00001 condition D.5.5(c)(i)(2) and
D.5.5(d)(i)(2), the overall control efficiency of
each RTO shall be at least 95% when controlling the VOC emissions from the 613
and 614 Curing/Cooling operation.
Stack testing was conducted on May 4,
2012 in which the control efficiency of the RTO was less than the minimum of
95%, in violation of 326 IAC 8-1-6 and permit No. 145-28835-00001 condition
D.5.5(c)(i)(2) and D.5.5(d)(i)(2).
l.
Pursuant to permit No. 145-28835-00001
condition C.16, a retest to demonstrate compliance shall be performed no later
than 180 days after the date of the test.
A retest to demonstrate compliance of the RTO controlling VOC emissions
from the 613/614 Curing/Cooling process was required by November 4, 2012 (180
days after the non compliance stack test conducted on May 4, 2012).
Respondent did not complete a retest
of the RTO controlling VOC emissions within the required timing, in violation
of permit No. 145-28835-00001 condition C.16.
m.
Pursuant to 326 IAC 8-1-6 and permit No.
145-28835-00001 condition D.5.5(b)(1), VOC emissions
before control from 612 Forming shall not exceed 6.1 pounds per hour of VOC
emissions.
Stack testing was conducted on May 2,
2012 in which the VOC emissions before control from 612 Forming exceeded the
VOC emission limit of 6.1 pounds per hour, in violation of 326 IAC 8-1-6 and permit
No. 145-28835-00001 condition D.5.5(b)(1).
n.
Pursuant to permit No. 145-28835-00001
condition C.16, a retest to demonstrate compliance shall be performed no later
than 180 days after the date of the test.
A retest to demonstrate compliance with VOC BACT emission limit before
control from 612 Forming was required by November 2,
2012 (180 days after the non compliance stack test conducted on May 2, 2012).
Respondent did not complete a retest
of VOC emissions from Forming Line 612 before control within the required
timing, in violation of permit No. 145-28835-00001 condition C.16.
o.
Pursuant to 326 IAC 8-1-6 and permit No.
145-28835-00001 condition D.5.5(c)(i)(3),
the combined VOC emissions from 613 Forming and 613 Curing/Cooling shall not
exceed 9.0 pounds per hour of VOC emissions.
Stack testing was conducted on May 4,
2012 in which the VOC emissions from 613 Forming and 613 Curing/Cooling exceeded
the VOC emission limit of 9.0 pounds per hour, in violation of 326 IAC 8-1-6
and permit No. 145-28835-00001 condition D.5.5(c)(i)(3).
p.
Pursuant to permit No. 145-28835-00001
condition C.16, a retest to demonstrate compliance shall be performed no later
than 180 days after the date of the test.
A retest to demonstrate compliance with VOC BACT emission limit from 613
Forming and 613 Curing/Cooling process was required by
November 4, 2012 (180 days after the non compliance stack test conducted on May
4, 2012).
Respondent did not complete a retest
of VOC emissions from Line 613 Forming and Curing/Cooling process within the
required timing, in violation of permit No. 145-28835-00001 condition C.16.
q.
Pursuant to 326 IAC 8-1-6 and permit No.
145-28835-00001 condition D.5.10, the RTOs for VOC, hazardous air pollutants
and condensable particulates control shall be in operation and control
emissions from the 613 and 614 Curing / Cooling operations at all times when
these section are in operation and using a phenol/formaldehyde binder.
On October 3, 2011 and October 5, 2011
the 614 and 613 Curing/Cooling operations respectively were running with
phenol/formaldehyde binder products and in each case the RTO was operating in
bypass mode and not controlling emissions as required, in violation of 326 IAC
8-1-6 and permit No. 145-28835-00001 condition D.5.10.
r.
Pursuant to 326 IAC 2-7-5 and permit No. 145-28835-00001
condition D.2.8(b)(1), Permittee
shall maintain daily records of picoampere (pA) display readings.
Respondent reported that the plant 3
daily parametric monitoring logs for picoampere (pA) were missing for the time period of March 21, 2011 to
August 28, 2011, in violation of 326 IAC 2-7-5 and permit No. 145-28835-00001
condition D.2.8(b)(1).
s.
Pursuant to Permit conditions D.1.9(a),
D.4.9(a) and D.5.14(a), Visible emission notations of stack exhaust shall be
performed once per day during normal daylight operations when exhausting to the
atmosphere. A trained employee shall record whether emissions are normal or
abnormal.
Respondent failed to perform visible emissions notations of stack
exhaust from furnace 602B, MFG 602, 602LF MFG, FURN 611 (Stack 6-21), Stack
6-22 exhaust and Stack 6-29 exhaust for 15 days during the compliance period 3Q
2011-2Q 2013 in violation of Permit conditions D.1.9(a), D.4.9(a) and
D.5.14(a).
t.
Pursuant to Permit condition D.5.9, the wet electrostatic
precipitator (ESP) for particulate control shall be in operation and control
emissions from the 611 FORMING, 612 FORMING, 613 FORMING, and 614 FORMING at
all times when any of these forming sections are in operation. Pursuant to
Permit condition D.5.15(b), the appropriate primary
and secondary current (amperes) and voltage in each electrical field shall be
maintained within the normal range as established in most recent compliant
stack test. Pursuant to Permit condition D.5.15(c), when any reading is outside
the normal range, the Permitee shall take reasonable
response steps. Failure to take reasonable response steps shall be considered a
deviation from the permit.
Respondent submitted 4th quarter 2012 and 1st quarter 2013 quarterly reports
identifying periods where 4 of the 8 wet electrostatic precipitator modules of
the 611 forming line were
in alarm or off during normal operations in violation of Permit condition
D.5.9. The appropriate primary and secondary current (amperes) and voltage in
each electrical field of the 611forming line’s wet electrostatic precipitator
were not maintained within the normal range as established in the most recent
compliant stack test in violation of Permit condition D.5.15(b)
and without response steps in violation of Permit condition D.5.15(c).
u.
Pursuant to Permit condition D.5.3(c), the loss on ignition (LOI)
of the binders used by the 611 FORMING, 612 FORMING, 613 FORMING, 614 FORMING,
613 CURING/COOLING, and 614 CURING/COOLING combined shall not exceed 18%.
Respondent exceeded the 18% limit loss on ignition (LOI) of the
binders used by the 611 FORMING, 612 FORMING, 613 FORMING, 614 FORMING, 613
CURING/COOLING, and 614 CURING/COOLING combined in violation of Permit
condition D.5.3(c).
v.
Pursuant to Permit condition D.5.15(b), the appropriate primary
and secondary current (amperes) and voltage in each electrical field shall be maintained within the normal range
as established in most recent compliant stack test. Pursuant to Permit
condition D.5.15(c), when any reading is outside the normal range, the Permitee shall take reasonable response steps. Failure to
take reasonable response steps shall be considered a deviation from the permit.
The appropriate primary and secondary current (amperes) and
voltage in each electrical field of the 611, 612, 613 and 614 forming lines wet
electrostatic precipitator were not maintained within the normal range as
established in the most recent compliant stack test on various dates and
without response steps during the compliance period for the 3rd quarter 2011-
the 2nd quarter 2013 in violation of Permit condition D.5.15(b)(c).
w.
Pursuant to 326 IAC 2-7-10.5, an owner or operator of a Part 70
source proposing to construct new emission units shall submit a request for a modification approval in
accordance with 326 IAC 2-7-10.5. 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.
Respondent constructed and operated two generators and fuel
dispensing facilities without first applying for and obtaining a permit in
violation of 326 IAC 2-7-10.5 and 326 IAC 2-7-3.
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 rules and/or permit conditions listed in the findings above
at issue.
3.
All
submittals required by this Agreed Order, unless Respondent is notified
otherwise in writing by IDEM, shall be sent to:
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Rebecca
Hayes, Compliance and Enforcement Manager |
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Compliance
and Enforcement Branch – Mail Code 61-53 |
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Indiana
Department of Environmental Management |
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100
North Senate Avenue |
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Indianapolis,
IN 46204-2251 |
4.
Respondent
is assessed and agrees to pay a civil penalty of Fifty Eight Thousand One
Hundred Dollars ($58,100). Said penalty amount shall be due and
payable to the Environmental Management Special Fund within thirty (30) days of
the Effective Date; the 30th day being the “Due Date”.
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:
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Indiana
Department of Environmental Management |
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Cashier
– Mail Code 50-10C |
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100
North Senate Avenue |
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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 their status or responsibilities
under this Agreed Order.
7.
In
the event that the monies due to IDEM pursuant to this Agreed Order are not
paid on or before their Due Date, Respondent shall pay interest on the unpaid
balance at the rate established by IC 24-4.6-1.
The interest shall be computed as having accrued from the Due Date until
the date that Respondent pays any unpaid balance. Such interest shall be payable to the Environmental
Management Special Fund, and shall be payable to IDEM in the manner specified
in Paragraph 5 above.
8.
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.
9.
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.
10.
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 their
obligation to comply with the requirements of their applicable permit or any
applicable Federal or State law or regulation.
11.
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.
12.
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.
13.
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.
14.
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
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Knauf
Insulation GmbH |
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Janusz Johnson, Chief |
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Printed: |
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Compliance
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Office
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COUNSEL
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APPROVED
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MANAGEMENT THIS |
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For
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Signed
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Keith
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Office
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Indiana
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