STATE OF INDIANA

COUNTY OF MARION

)
)
)


SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

POET BIOREFINING -

PORTLAND,

Respondent.

)
)
)
)
)
)
)
)
)
)






Case No. 2013-21983-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 POET Biorefining-Portland (“Respondent”), which operates the POET Biorefining ethanol plant with Plant ID No. 075-00032, located at 1542 S 200 West in Portland, Jay County, Indiana (“Site”).

 

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

 

4.            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.

 

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.2.5 and D.2.9 of permit 075-28068-00032  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 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 and HAP emissions from the fermentation process on March 6, 2012 through March 8, 2012 for 18 hours during the servicing of the plant electrical system, in violation of 326 IAC 8-5-6 and conditions D.2.5 and D.2.9 of permit 075-28068-00032.

 

b.            Pursuant to 326 IAC 8-5-6 (c) and conditions D.2.5 and D.2.9 of permit 075-28068-00032  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 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 and HAP emissions from the fermentation process on May 15, 2012 for 4 hours during the servicing of the plant electrical system, in violation of 326 IAC 8-5-6 and conditions D.2.5 and D.2.9 of permit 075-28068-00032.

 

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 the rules and permit conditions listed in the findings of facts.

 

3.            By July 1, 2014 the Respondent shall determine the feasibility of reconfiguring the electrical systems that supply power to the scrubber. All necessary permit evaluations shall be included as part of the feasibility. The Respondent shall provide to IDEM a written notification of the feasibility status of the compliance plan within thirty (30) days of the completion of the studies.

 

4.            By December 31, 2014 the Respondent shall install additional components as necessary to allow for a backup generator to be connected if feasible. Within thirty (30) days of the installation date the Respondent shall provide IDEM documentation of the completion of the project.

 

5.            If feasibility is not shown, the Respondent shall provide to IDEM a written notification of an alternative compliance plan within thirty (30) days of notifying IDEM the status of the initial feasibility studies.

 

6.            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

 

7.            Respondent is assessed and agrees to pay a civil penalty of Eighteen Thousand Dollars ($18,000).  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:

 

Paragraph

Violation

Stipulated Penalty

 

 

 

3

Failure to submit compliance plan feasibility status within specified timeframe

$500 per week

 

 

 

4

Failure to submit documentation of completion of project if plan is feasible within specified timeframe

 

$500 per week

5

Failure to submit alternative compliance plan if initial plan is not feasible within specified timeframe

$500 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 their 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 its 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 this Agreed Order.

 

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 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:

 

RESPONDENT:

Department of Environmental Management

 

POET Biorefining-Portland

 

 

 

By:

 

 

By:

 

 

Lynne J. Sullivan, Chief

 

Printed:

 

 

Compliance and Enforcement Section 2

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2014.

 

 

For the Commissioner

 

 

 

Signed on February 26, 2014

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management