STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

VALEO LIGHTING SYSTEMS NORTH AMERICA, LLC,

Respondent.

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Case No. 2015-23204-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 Valeo Lighting Systems North America, LLC (“Respondent”), which owns and operates the facility with Plant ID No. 071-00006, located at 1231 Avenue A North, in Seymour, Jackson 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”) via Certified Mail to:

 

Mr. Stephane Prince

CT Corporation System

Regional Operations Director

Registered Agent

Valeo Lighting Systems North America, LLC

150 West Market Street Suite 800

1231 Avenue A North

Indianapolis, IN 46204

Seymour, IN 47274

 

 

5.             Respondent owns and operates a stationary source producing automotive plastic lighting assemblies.

 

6.             Valeo sent a self-disclosure letter to IDEM with internal findings of potential violations.  During an investigation conducted by a representative of IDEM, the following violations were found:

 

a.       Pursuant to 326 IAC 2-7-10.5, no source shall construct a modification to a Title V source without a significant source modification.

Respondent constructed a modification to a Title V source by increasing their hazardous air pollutants (HAPs) potential to emit without a significant source modification, in violation of 326 IAC 2-7-10.5.

 

b.       Pursuant to 326 IAC 2-7-12, no source shall operate a modification to a Title V source without a significant source modification.

 

Respondent operated a modification to a Title V source by increasing their HAPs potential to emit without a significant source modification, in violation of 326 IAC 2-7-12.

 

c.              Pursuant to NESHAP 40 CFR 63.4490(a)(2), each new automotive lamp coating affected source shall limit organic HAP emissions to no more than 0.26 pound organic HAP emitted per pound coating solids used during each twelve month compliance period.

 

Respondent used a thermal cure anti-fog coating that has a HAP content of 1.19 pounds HAP per pound coating solids, in violation of NESHAP 40 CFR 63.4490(a)(2).

 

d.             Pursuant to 326 IAC 2-7-4, a source shall submit complete information in an application prior to issuance of a draft Part 70 permit.

 

Respondent failed to submit information stating the correct methanol content of the thermal cure anti-fog coating, in violation of 326 IAC 2-7-4.

 

e.       Pursuant to NESHAP 40 CFR Part 63, Subpart PPPP, Surface Coating of Plastic Parts and Products, a source is subject to the requirements of the subpart if they own or operate a new, reconstructed, or existing affected source at a facility that is a major source, is located at a major source, or is part of a major source of HAPs and uses 100 gallons per year or more of coatings that contain HAPs to coat plastic parts or products.

 

Respondent failed to submit the required notifications to demonstrate compliance, in violation of NESHAP 40 CFR Part 63, Subpart PPPP.

 

7.             A Significant Source Modification was issued to the Respondent on August 17, 2015.

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 statutes and rules listed in the findings above at issue.

 

3.             No later than May 31, 2016, Respondent shall install and begin startup of the regenerative thermal oxidizer, identified as RTO-3, to be used to control thermal cure spray coating booths 14 and 26.  Respondent shall also install and begin startup of the regenerative thermal oxidizer, identified as RTO-4, to be used to control thermal cure spray coating booth 25.

 

4.             Respondent shall conduct a performance test of RTO-3 and RTO-4 no later than 180 days after startup.

 

5.             All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Angie Willoughby, Compliance and Enforcement Manager

Indiana Department of Environmental Management

Southeast Regional Office

820 West Sweet Street

Brownstown, IN 47220

 

6.             Respondent is assessed and agrees to pay a civil penalty of One Hundred Thirty Thousand Six Hundred Seventy-Nine Dollars ($130,679).  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”.

 

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:

 

Paragraph

Violation

Stipulated Penalty

 

 

4

 

 

 

Failure to conduct a performance test of RTO-3 and RTO-4 within the specified time range

 

 

$500 per week

 

 

8.             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.

 

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:

 

IDEM Office of Legal Counsel

IGCN, Rm  N1307

100 N Senate Ave

Indianapolis, IN  46204

 

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 Respondents shall in any way alter its status or responsibilities under this Agreed Order.

 

11.          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 9, above.

 

12.          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.

 

13.          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.

 

14.          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 permits or any applicable Federal or State law or regulation.

 

15.          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.

 

16.          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.

 

17.          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.

 

18.          This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Valeo Lighting Systems North America, LLC

 

 

 

By:

 

 

By:

 

 

Mark A. Amick, Director

 

Printed:

 

 

Southeast Regional Office

 

Title:

 

 

Indiana Department of Environmental Management

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2016.

 

 

For the Commissioner

 

 

 

Signed on April 25, 2016

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management