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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. CATERPILLAR, 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 Caterpillar, Inc.
(“Respondent”), which owns/operates the source with Plant ID No. 157-00044,
located at 3701 State Road 26 East, in Lafayette, Tippecanoe 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 the following:
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Douglas
Oberhelman, President |
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CT
Corporation System, Registered Agent |
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Caterpillar,
Inc. |
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150
West Market Street Suite 800 |
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100
NE Adams Street |
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Indianapolis,
IN 46204 |
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Peoria,
IL 61629 |
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5.
During an investigation including an
inspection on February 10, 2016 conducted by a representative of IDEM, the
following violations were found:
a.
Pursuant to (“Permit”) 157-33951-00044 condition
D.6.2, all solvent sprayed from the application equipment of paint booths,
identified as M751, M775 and M771b, during cleanup or color changes, shall be
directed into containers; and those containers shall be closed as soon as the
solvent spraying is complete.
An open gallon bucket with clean up
solvent inside was observed lying on the floor in paint booth M775; and the old
clean up solvent purge system that is no longer used had an opening in which
residual solvent could be observed remaining inside the reservoir, in violation
of Permit condition D.6.2.
b.
Pursuant to Permit condition D.6.2, all
solvent sprayed from the application equipment of paint booths, identified as
M751, M775 and M771b, during cleanup or color changes, shall be directed into
containers; and those containers shall be closed as soon as the solvent
spraying is complete.
The 55 gallon drum that stores waste
materials in the paint mix room was not fully closed and a gap was observed in
the lid closure, in violation of Permit condition D.6.2.
c.
Pursuant to Permit condition D.5.6, Permittee
shall maintain records of visible emission notations of the peak shaving diesel
generators stack exhaust once per day while in operation; and the Permittee
shall record when a visible emission notation is not taken and the reason for
the lack of notation.
Several instances were observed where
the source failed to record when a visible emission notation was not taken for
the peak shaving diesel generators (EL45016 and EL45019) and the reason for the
lack of a visible emission notation, in violation of Permit condition D.5.6.
d.
Pursuant to Permit condition D.6.8 and D.6.9,
daily inspections shall be performed to verify the placement, integrity and
particle loading of the paint booth filters; and the Permittee shall maintain a
log of those inspections.
Several instances were observed where
the source failed to identify whether paint booth M771b was operating and if
operating conduct the appropriate daily filter inspection, in violation of Permit
condition D.6.8 and D.6.9.
e.
Pursuant to 326 IAC 2-7, an owner or operator of a Part 70 source shall ensure that
all emission units are appropriately permitted prior to construction and/or
operation of those units.
Respondent constructed and operated
various degreasers without being appropriately permitted, in violation of 326
IAC 2-7.
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 rules and permit
conditions listed in the findings here.
3.
Within 30 days of the Effective Date,
Respondent shall submit documentation verifying that the old clean up solvent
purge system in paint booth M775, which is no longer being used, has been
dismantled and removed from the operation.
4.
Within 90 days of the Effective Date,
Respondent shall submit 30 days of visible emission notations of the peak
shaving diesel generators stack exhaust and 30 days of daily inspections for paint
booth M771b to verify the placement, integrity and particle loading of the
filters; and these records should start after the Effective Date of this Order.
5.
Within 90 days of the Effective Date,
Respondent shall develop and submit documentation of a training program for
paint booth operations. The training
shall contain, but is not limited to the following.
a.
Summary of the compliance requirement related
to all paint booths
b.
Review of systems put in place by the
Respondent to demonstrate compliance with permitted requirements and the tasks
that will be required of paint booth operators
c.
Training schedule including annual refresher
training that will be conducted with all paint booth operators
6.
Within 120 days of the Effective Date, Respondent
shall conduct initial training with all paint booth operators and submit
documentation that the training was conducted.
7.
Within 60 days of the Effective Date,
Respondent shall submit to the following address a complete permit application
for all unpermitted degreasers at the source.
IDEM Air Permits Administration
MC 61-53, IGCN 1003
100 North Senate Avenue
Indianapolis, IN 46204-2251
8.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
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Rebecca
Hayes, Compliance and Enforcement Manager |
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Compliance
and Enforcement Branch – Mail Code 61-53 |
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Indiana
Department of Environmental Management |
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100 North
Senate Avenue |
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Indianapolis,
IN 46204-2251 |
9.
Respondent is assessed and agrees to pay a
civil penalty of Fifteen Thousand and Fifty Dollars ($15,050). 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”.
10.
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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Paragraphs |
Violation |
Stipulated
Penalty |
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3, 4, 5, 6, 7 |
Failure to submit required documentation |
$250 per week (each) |
11.
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.
12.
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:
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IDEM
Office of Legal Counsel |
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IGCN,
Rm N1307 |
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100
N Senate Ave |
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Indianapolis,
IN 46204 |
13.
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.
14.
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 12, above.
15.
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.
16.
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.
17.
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 their applicable permit or any applicable Federal or State law
or regulation.
18.
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.
19.
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.
20.
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.
21.
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
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Caterpillar, Inc. |
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By: |
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By: |
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Janusz Johnson, Chief |
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Printed: |
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Compliance
and Enforcement Section 1 |
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Office
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COUNSEL
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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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2016. |
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For
the Commissioner |
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Signed
on August 8, 2016 |
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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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