STATE OF
INDIANA |
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BEFORE THE
INDIANA DEPARTMENT |
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COMMISSIONER
OF THE DEPARTMENT Complainant, v. POET BIOREFINING
NORTH MANCHESTER, LLC, 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 POET Biorefining-North Manchester (“Respondent”), which
operates the POET Biorefining ethanol plant with
Plant ID No. 169-00068, located at 868 East 800 North in North Manchester, Wabash 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 is issuing a Proposed Agreed Order via Certified Mail to
POET Biorefining-North Manchester. Respondent waived
issuance of a Notice of Violation and the settlement period of sixty (60) days
as provided for by IC 13-30-3-3 for violations A4, A5, B, C1, C2, D1, D2, D3
and E. A Notice of Violation has already been issued for violations A1, A2 and
A3.
5.
During
an investigation conducted by a representative of IDEM, the following
violations were found:
A.
Pursuant
to 326 IAC 8-5-6 (c) and conditions D.2.6 and D.2.9 of permit
169-28809-00068 an owner or operator of
a fuel grade ethanol production plant that is a dry mill shall install and
operate at least one of the following control devices for VOC emissions from
the plant: “…(2) A wet scrubber with an
overall control efficiency of not less than ninety-eight percent (98%) or
resulting in a volatile organic compound concentration of not more than twenty
(20) parts per million (ppm)” and the
VOC emissions from the fermentation and distillation processes shall be
controlled by a scrubber CE008 when venting to the emergency stack. Condition
D.2.9 specifically requires the scrubber to be in operation and control
distillation and fermentation at all times the fermentation and distillation
processes are in operation.
Respondent
failed to operate a wet scrubber to control the VOC emissions from the
fermentation process on the following dates, in violation of 326 IAC 8-5-6 and
condition D.2.6 and D.2.9 of permit 169-28809-00068.
Violation |
Date |
Duration |
A1. |
January 6, 2011 |
13 hour, 34 minutes |
A2. |
June 21, 2011 |
18 minutes |
A3. |
November 21, 2011 |
3 hours, 50 minutes |
A4. |
March 20, 2012 |
1 hour, 40 minutes |
A5. |
June 6, 2012 |
10 hours, 30 minutes |
B.
Pursuant
to 326 IAC 2-7-6(5) and condition B.9 (a) of permit 169-31191-00068 all Annual
Compliance Certifications (ACC) shall be submitted no later than July 1 of each
year.
Respondent
submitted the 2012 ACC later than the due date in violation of 326 IAC 2-7-6(5)
and condition B.9 (a) of permit 169-31191-00068.
C.
Pursuant
to 326 IAC 8-5-6 and Condition D.2.14 of permit 169-28809-00068 when for any
one reading, the flow rate of the scrubber is less than the minimum established
during the latest stack test the permittee shall take
reasonable response steps in accordance with section C.16.
Respondent reduced the flow rate of the scrubber during scheduled distillation
shutdown on the following dates without taking sufficient reasonable response
steps to restore operation to its normal manner of operation as expeditiously as
practicable, in violation of Conditions C.16 and D.2.14 of permit 169-28809-00068,
and 326 IAC 8-5-6.
Violation |
Date |
Duration |
C1. |
January 4, 2012 |
2 hour, 31 minutes |
C2. |
June 7, 2012 |
11 hours 40 minutes |
D.
Pursuant
to 326 IAC 8-5-6 (c) and conditions D.2.3 and D.2.7 of permit
169-31191-00068 an owner or operator of
a fuel grade ethanol production plant that is a dry mill shall install and
operate at least one of the following control devices for VOC emissions from
the plant: “…(2) A wet scrubber with an
overall control efficiency of not less than ninety-eight percent (98%) or
resulting in a volatile organic compound concentration of not more than twenty
(20) parts per million (ppm)” and the
VOC emissions from the fermentation and distillation processes shall be
controlled by a scrubber CE008 when venting to the emergency stack. Condition
D.2.7 specifically requires the scrubber to be in operation and control
distillation and fermentation at all times the fermentation and distillation
processes are in operation.
Respondent
failed to operate the wet scrubber to control the VOC emissions from the
fermentation process on the following dates, in violation of 326 IAC 8-5-6 (c)
and conditions D.2.3 and D.2.7 of permit 169-31191-00068.
Violation |
Date |
Duration |
D1. |
February 19, 2013 |
4 hours, 4 minutes |
D2. |
April 11, 2013 |
6 hours, 18 minutes |
D3. |
July 28, 2013 |
9 hours, 42 minutes |
E.
Pursuant
to 326 IAC 2-7-12 and condition B.17 of permit 169-31191-00068 the permittee shall apply to IDEM prior to making changes that
require permit modifications.
Respondent
constructed and operated a scrubber bypass on September 25, 2013 without a significant
permit modification, in violation of 326 IAC 2-7-12 and condition B.17 of
permit 169-31191-00068.
6.
Respondent
applied for a significant permit modification to construct and operate the
scrubber bypass on August 1, 2013.
7.
A
significant permit modification was issued by IDEM on December 13, 2013.
8.
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 the rules and permit conditions listed in the findings of
facts.
3.
All
submittals required by this Agreed Order, unless Respondent is notified
otherwise in writing by IDEM, shall be sent to:
Nandi
Tissing, Compliance and Enforcement Manager |
Compliance
and Enforcement Branch – Mail Code 61-53 |
Indiana
Department of Environmental Management |
100
North Senate Avenue |
Indianapolis,
IN 46204-2251 |
4.
Respondent
is assessed and agrees to pay a civil penalty of Forty Two Thousand Four
Hundred Dollars ($42,400). 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
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 |
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 its obligation to comply with the
requirements of its 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 the Respondent has complied with all
terms and conditions of this Agreed Order and IDEM issues a Resolution of Case
letter to the Respondent.
TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
of Environmental Management |
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POET Biorefining-North Manchester |
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By: |
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By: |
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Lynne
J. 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
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COUNSEL
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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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2014. |
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For
the Commissioner |
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Signed
on December 31, 2014 |
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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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