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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. CUMMINS 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 Indiana created by Indiana
Code (“IC”) 13-13-1-1.
2.
Respondent
is Cummins Inc. (“Respondent”), which owns and operates a stationary internal
combustion engine plant known as the Seymour Engine Plant, with Plant ID No.
T071-00015, located at 800 East 3rd Street, Seymour, Jackson County,
Indiana (“Site”).
3.
IDEM
has jurisdiction over the parties and the subject matter of this action.
4.
On
October 17, 2012, Respondent waived the Notice of Violation and the settlement
period of sixty (60) days as provided by IC 13-30-3-3 for the matters described
herein.
5.
This
source is a combustion engine manufacturing facility.
6.
As
a result of a self-disclosure submitted by Respondent on October 1, 2012,
as amended on October 16, 2012, and following a subsequent investigation
conducted by IDEM, the following violations were found:
a. On February 20, 2012, IDEM issued
Significant Source Modification 071-30956-00015 (the “Source Modification”) to
Respondent which authorized construction of certain emission units related to
Respondent’s “Hedgehog” project.
Respondent constructed the following emission units related to the
Hedgehog project that were not covered by the Source Modification either because
Respondent installed units different than those considered in the Source
Modification or because the units were not applied for as part of the Source
Modification, in violation of 326 IAC 2-7-10.5:
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Boilers (Permitted at
Different Capacities) |
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Unit
# |
Permitted
MMBtu/hr |
Actual
MMBtu/hr |
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EU03
E |
2.0 |
3.0 |
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EU03
F |
2.0 |
3.0 |
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EU03
G |
2.0 |
3.0 |
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EU03
H |
2.0 |
3.0 |
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EU03
I |
2.0 |
4.0 |
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EU03
J |
2.0 |
4.0 |
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EU03
K |
2.0 |
3.2 |
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EU03
N |
2.0 |
3.5 |
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EU03
O |
2.0 |
3.5 |
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EU03
P |
2.0 |
3.5 |
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EU03
W |
4.2 |
5.0 |
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Direct Fired AHU
(unpermitted) |
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Quantity |
Heat Input
per Unit MMBtu/hr |
Total Heat
Input MMBtu/hr |
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4 |
0.5 |
1.9 |
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1 |
0.8 |
0.8 |
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1 |
0.7 |
0.7 |
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1 |
2.7 |
2.7 |
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1 |
2.7 |
2.7 |
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Drying and Curing Oven Burners
(unpermitted) |
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Quantity |
Heat Input per Unit MMBtu/hr |
Total Heat Input MMBtu/hr |
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2 |
2.4 |
4.8 |
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Unit Heaters (unpermitted) |
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Quantity |
Heat
Input per Unit MMBtu/hr |
Total Heat Input MMBtu/hr |
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8 |
0.2 |
1.2 |
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2 |
0.2 |
0.4 |
b. On March 8, 2012, IDEM issued
Significant Permit Modification 071-30962-00015 (the “Permit Modification”) to
Respondent which authorized operation of certain emission units related to Respondent’s
Hedgehog project. Respondent has
operated the following emission units related to the Hedgehog project that were
not covered by the Permit Modification, either because Respondent was permitted
to operate units different than those included in the Permit Modification or
because the units were not applied for as part of the Permit Modification, in
violation of 326 IAC 2-7-12:
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Boilers (Permitted at
Different Capacities) |
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Unit
# |
Permitted MMBtu/hr |
Actual MMBtu/hr |
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EU03
N |
2.0 |
3.5 |
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EU03
O |
2.0 |
3.5 |
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EU03
P |
2.0 |
3.5 |
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Direct Fired AHU
(unpermitted) |
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Quantity |
Heat Input per Unit MMBtu/hr |
Total Heat Input MMBtu/hr |
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4 |
0.5 |
1.9 |
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1 |
0.8 |
0.8 |
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1 |
0.7 |
0.7 |
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1 |
2.7 |
2.7 |
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1 |
2.7 |
2.7 |
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Drying and Curing Oven
Burners (unpermitted) |
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Quantity |
Heat Input per Unit MMBtu/hr |
Total Heat Input MMBtu/hr |
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2 |
2.4 |
4.8 |
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Unit Heaters (unpermitted) |
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Quantity |
Heat Input per Unit MMBtu/hr |
Total Heat Input MMBtu/hr |
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8 |
0.2 |
1.2 |
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2 |
0.2 |
0.4 |
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 all statutes, rules, and permit conditions listed in the
findings here and/or above at issue.
3.
Respondent
shall not exceed the emission limits set forth in Conditions D.2.1(e),
(f), (g), and (h) of the Permit Modification.
4.
a.) Respondent shall include the emissions
from all emission units referenced in Paragraphs 6.a and 6.b of the Findings of
Fact above when determining compliance with the emission limits set forth in
Conditions D.2.1(e), (f), (g), and (h) of the Permit Modification.
b.) Respondent
shall maintain records necessary to calculate whether the emissions from the
emission units referenced in Paragraphs 6.a and 6.b of the Findings of Fact
above comply with the emission limits set forth in Conditions D.2.1(e), (f),
(g), and (h) of the Permit Modification.
c.) Respondent
shall include any noncompliance related to the emission units referenced in
Paragraphs 6.a and 6.b of the Findings of Fact above when fulfilling its
reporting obligations under the Permit Modification.
5.
a.) Within thirty (30) days of the Effective
Date, Respondent shall submit to the Office of Air Quality Permits Branch a
complete application to incorporate all emission units referenced in Paragraphs
6.a and 6.b of the Findings of Fact above into the construction and operating
approvals for the Seymour Engine Plant.
b.) Respondent shall comply with any notice
of deficiency (“NOD”) related to the permit application within the times
specified in the NOD.
c.) Respondent’s submittals pursuant to Paragraphs
5.a.) and b.) of the Order shall be made
to:
Indiana
Department of Environmental Management
Permit
Administration and Support Section, Office of Air Quality
100 North
Senate Avenue
MC 61-53
IGCN 1003
Indianapolis,
Indiana 46204-2251
6.
Unless
otherwise specified in this Agreed Order or IDEM notifies Respondent in
writing, all submittals required by this Agreed Order shall be sent to:
Phil Perry, Chief
Air Compliance and Enforcement Branch
Indiana
Department of Environmental Management
100
North Senate Avenue, IGCN 1003
Indianapolis,
IN 46204
7.
Respondent
is assessed and agrees to pay a civil penalty of Eleven Thousand, Two Hundred
Fifty Dollars ($11,250.00). 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.”
8.
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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4.(a. - c.) 5 (a. - c.) |
Failure to
include a specified emission unit in calculations, maintain associated records,
or report such noncompliance with an emission limit Failure to
submit a complete application or failure to timely comply with notices of
deficiency related to the application |
$1,000 per
event $100.00 per
day, not to exceed $500.00 per week |
9.
Stipulated
penalties shall be due and payable no later than the 30th day after
Respondent receives written notice that Complainant has determined a stipulated
penalty is due; the 30th day being the “Due Date.” Complainant may notify Respondent at any time
that a stipulated penalty is due.
Failure to notify Respondent in writing in a timely manner of a
stipulated penalty assessment shall not waive Complainant’s right to collect
such stipulated penalty or preclude Complainant from seeking additional relief
against Respondent for violation of this Agreed Order. Neither assessment nor payment of stipulated
penalties shall preclude Complainant from seeking additional relief against
Respondent for a violation of this Agreed Order; such additional relief
includes any remedies or sanctions available pursuant to Indiana law, including,
but not limited to, civil penalties pursuant to IC 13-30-4.
10.
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:
Indiana Department of Environmental
Management
Cashier
Mail Code 50-10C
100
North Senate Avenue
Indianapolis,
IN 46204-2251
11.
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.
12.
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 10., above.
13.
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.
14.
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.
15.
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 its applicable permit or any
applicable Federal or State law or regulation.
16.
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.
17.
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 Findings of Fact.
18.
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.
19.
This
Agreed Order, and compliance with its terms, resolves
only the violations identified herein.
This Agreed Order does not resolve any potential violations of PSD under
326 IAC 2-2, if any are found to exist.
IDEM specifically reserves its right to pursue such violations in the
future if such violations have occurred.
20.
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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Cummins
Inc. |
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By: |
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By: |
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Lynne
Sullivan, Chief |
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Printed: |
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Compliance
and Enforcement Section 2 |
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Title: |
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Office of
Air Quality |
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COUNSEL FOR
RESPONDENT: |
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Date: |
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT
THIS |
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DAY OF |
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, 2012. |
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For the
Commissioner |
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Signed on
October 17, 2012 |
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Keith Baugues, Assistant Commissioner |
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Office of Air
Quality |
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Indiana
Department of Environmental Management |
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