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.

Lippert Components, Inc.,

Respondent.

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Case No. 2014-23415-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 Indiana Code (“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 IC 13-13-1-1.

 

2.             Respondent is Lippert Components, Inc. (“Respondent”), which owns/operates the source with Plant ID No. 039-00185 (“Source”), located at 701 Collins Rd. in Elkhart, Elkhart County, Indiana (“Site”).

 

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

 

4.             Respondent acquired certain assets of the Source from the prior owner on July 17, 2011 and began operating the Source which is a stationary RV chassis and parts manufacturing and surface coating plant.

 

5.             During an investigation  conducted by a representative of IDEM, the following violations were found:

 

a.             Pursuant to 326 Indiana Administrative Code (“IAC”) 2-7-10.5, a Part 70 source is required to obtain a Significant Source Modification prior to performing a modification which causes it to exceed the major source thresholds for Hazardous Air Pollutants (HAP).

Respondent operated a source that became a major source of HAPs prior to first obtaining a Significant Source Modification to the Part 70 Permit, in violation of 326 IAC 2-7-10.5.

Respondent submitted an application for the renewal of the Title V Permit on March 22, 2013.  In the application, calculations were provided for Paint Booth 2 (PB2) using a coating identified as a rust inhibitor that contained HAPs.  The prior owner/operator of the source had used the rust inhibitor for some time but apparently had not provided notice to IDEM. After entering the HAPs into the calculation sheet, IDEM determined that the potential to emit for HAPs was greater than 10 tons/year for any single HAP and greater than 25 tons/year for combined HAPs through use of this rust inhibitor at PB2, making the Source a major source of HAPs.

 

b.             Pursuant to 40 Code of Federal Regulations (“CFR”) § 63.3883, if an area source increases its potential to emit such that it becomes a major source of HAPs, it becomes subject to the requirements of 40 CFR 63, Subpart MMMM, National Emission Standards for Hazardous Air Pollutants (“NESHAP”) for Surface Coating of Miscellaneous Metal Parts and Products.

The prior owner/operators of the Source’s first use of the rust inhibitive coating without a permit enforceable HAP limit caused the Source to become a major source of HAPs, thereby making the requirements of NESHAP Subpart MMMM applicable to the Respondent upon its acquisition of the Source.

 

c.              Pursuant to 40 CFR § 63.3910, a new affected source for NESHAP Subpart MMMM must submit an Initial Notification no later than 120 days after initial startup and must submit a Notification of Compliance Status Report no later than 30 days following the end of the initial compliance period.

Respondent failed to submit the Initial Notification and Notification of Compliance Status Reports for NESHAP Subpart MMMM upon acquisition of the Source or within the required time frames, in violation of 40 CFR § 63.3910.

 

d.             Pursuant to 40 CFR § 63.3890(a)(1), each new general use coating affected source must meet the NESHAP Subpart MMMM emission limit of 1.9 lb. organic HAP per gallon coating solids during each 12-month compliance period.

Respondent failed to maintain compliance with the NESHAP Subpart MMMM emission limit of 1.9 lb. organic HAP per gallon coating solids during each 12-month compliance period, from January 2011 through December 2013, in violation of 40 CFR § 63.3890(a)(1).

 

6.             Part 70 Operating Permit Renewal number T039-32988-00185 was issued to the Respondent on December 12, 2013.  This permit contained conditions requiring compliance with NESHAP Subpart MMMM, including emission limits. The Respondent submitted the Initial Notification for 40 CFR Part 63, Subpart MMMM for the facility to IDEM and USEPA on January 13, 2014 and the Notification of Compliance Status Report on July 30, 2014.  Additionally, the Respondent has submitted usage records which verify they are maintaining compliance with the applicable emission limits for NESHAP Subpart MMMM.

 

7.             On February 18, 2016, Respondent waived issuance of a Notice of Violation and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3.

 

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 326 IAC 2-7-10.5 and 40 CFR 63, Subpart MMMM.

 

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

 

Mr. Paul Karkiewicz, 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 Twenty Two Thousand Dollars ($22,000.00). 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”.

 

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:

 

IDEM Office of Legal Counsel

IGCN, Rm  N1307

100 N Senate Ave

Indianapolis, IN  46204

 

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 its 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 permits 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 Respondent has complied with all terms and conditions of this Agreed Order and IDEM issues a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Lippert Components, Inc.

 

 

 

By:

 

 

By:

 

 

James E. Weingart, Director

 

Printed:

 

 

Northern Regional Office

 

Title:

 

 

 

 

 

 

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 May 26, 2016

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management