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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. ARCONIC,
INC. formerly known as ALCOA, 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 Arconic, Inc. formerly known as Alcoa,
Inc. (“Respondent”), which owns/operates the source with Plant ID No.157-00001,
located at 3131 East Main Street, 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”) on December 12, 2016 via Certified Mail to the following:
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Mr.
Klaus Kleinfeld, President |
CT
Corporation System, Registered Agent |
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Alcoa,
Inc. |
150
West Market Street Suite 800 |
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390
Park Avenue |
Indianapolis,
IN 46204 |
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New
York, NY 10022 |
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5.
During an investigation conducted by a representative
of IDEM, the following violations were found:
a.
Pursuant to Permit
No. 157-34081-00001 Condition D.11.2 and 326 IAC 2-2, emissions from the
electric lithium furnaces (ALLI-2 through ALLI-20) shall not exceed the
following:
0.4 pounds PM per ton of charge
0.1 pounds PM10 per ton of
charge
0.1 pounds PM2.5 per ton of
charge
During stack testing
conducted by the Respondent on March 31, 2015, PM, PM10, and PM2.5 emissions
from the Lithium Melter (ALLI 17 – ALLI 19) were measured in excess of
allowable limits, in violation of Permit No. 157-34081-00001 Condition D.11.2
and 326 IAC 2-2.
b.
Pursuant to Permit
No. 157-34081-00001 Condition C.15, a retest to demonstrate compliance
shall be performed no later than one hundred eighty (180) days after the date
of the noncompliant test.
Respondent failed to retest to
demonstrate compliance with PM, PM10, and PM2.5
emissions from the Lithium Melter (ALLI 17 – ALLI 19) within 180 days
after the date of a noncompliant stack test, in violation of Permit No. 157-34081-00001 Condition C.15.
c.
Pursuant to 40 CFR 63
Subpart RRR, the owner or operator of a scrap dryer/delacquering
kiln/decoating kiln must not discharge or cause to be discharged to the
atmosphere emissions in excess of 0.25 μg of D/F TEQ per Mg of feed/charge
from a scrap dryer/delacquering kiln/decoating kiln at a secondary aluminum
production facility that is a major or area source.
During stack testing
conducted by the Respondent on November 12, 2014, Dioxin/Furans emissions from
the Scrap Drying Oven (ALLI 22) was measured in excess of allowable limits, in
violation of 40 CFR 63 Subpart RRR.
d.
Pursuant to 40 CFR 63
Subpart RRR, the owner or operator of a scrap dryer/delacquering
kiln/decoating kiln must not discharge or cause to be discharged to the
atmosphere emissions in excess of 0.25 μg of D/F TEQ per Mg of feed/charge
from a scrap dryer/delacquering kiln/decoating kiln at a secondary aluminum
production facility that is a major or area source.
During stack testing
conducted by the Respondent on November 12, 2014, Dioxin/Furans emissions from
the Scrap Drying Oven (ALLI 23) was measured in excess of allowable limits, in
violation of 40 CFR 63 Subpart RRR.
e.
Pursuant to Permit
No. 157-34081-00001 Condition C.15, a retest to demonstrate compliance
shall be performed no later than one hundred eighty (180) days after the date
of the noncompliant test.
Respondent failed to retest to
demonstrate compliance with Dioxin/Furans emissions
from the Scrap Drying Oven (ALLI 22) until January 26, 2016, which was not within
180 days after the date of a noncompliant stack test, in violation of Permit No. 157-34081-00001 Condition C.15.
f.
Pursuant to Permit
No. 157-34081-00001 Condition C.15, a retest to demonstrate compliance
shall be performed no later than one hundred eighty (180) days after the date
of the noncompliant test.
Respondent failed to retest to
demonstrate compliance with Dioxin/Furans emissions
from the Scrap Drying Oven (ALLI 23) until January 26, 2016, which was not within
180 days after the date of a noncompliant stack test, in violation of Permit No. 157-34081-00001 Condition C.15.
g.
Pursuant to 40 CFR 63
Subpart ZZZZ, initial stack testing is required within 180 days of the
compliance date in 63.6595(a)(1) for the limits
applicable to the unit specified in Table 2d (item 2 – limit CO concentration
from exhaust to 49 ppm).
Respondent failed to conduct initial
stack testing on the air compressor diesel engine (EUDAC#1) to demonstrate
compliance with the CO emission limit by the applicable deadline, in violation
of 40 CFR 63 Subpart ZZZZ.
6.
Respondent submitted an application on
1/28/2016 resulting in permit modification No. 36780, which issued on
8/26/2016. This permit modification
removed the PM, PM10, and PM2.5 limits and any stack testing requirements for
the electric lithium melting furnaces (ALLI 2 through ALLI 20), since the
lithium melting furnaces are considered insignificant activities and therefore
specific emission limits and stack testing are not applicable.
7.
The East and West Scrap Drying Ovens (ALLI-22
and ALLI-23) were retested in compliance with the Dioxins and Furans emission
rate as required by 40 CFR 63 Subpart RRR on 1/26/2016.
8.
Air compressor diesel engine (EUDAC#1) was
changed to a non-emergency engine in permit No. 36780, which issued 8/26/2016, instead
of being incorrectly being represented as an emergency engine. Initial stack testing as required by 40 CFR
63 Subpart ZZZZ was conducted on 2/28/2017 demonstrating the CO emissions were
5.51 ppm from the exhaust of the air compressor diesel engine (EUDAC#1).
9.
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, rules,
and/or permit conditions listed in the findings here and/or above at issue.
3.
Within 30 days of the Effective Date,
Respondent shall provide documentation that they incorporated the following
procedures into the Respondents’ Operations, Maintenance and Monitoring Plan.
a.
Segregate scrap tubs used for the scrap dryers
in the Aluminum Lithium Plant from all other scrap tubs at the facility
b.
Identify all scrap tubs with
appropriate labels or markings to designate their specific use
c.
Only use designated scrap tubs
with the scrap dryers in Aluminum Lithium Plant
d.
Inspect each scrap tub for oil
or grease prior to use
e.
Quarantine and not use any
scrap tubs that fail inspection until free from grease or oil
f.
Maintain records of scrap tub inspections,
identification of tubs that fail inspection and any corrective actions taken
related to quarantined scrap
4.
Respondent shall submit records of scrap tub
inspections, tubs that fail inspection and corrective actions taken related to
quarantined scrap for review annually from the Effective Date of this Order for
a period of 2 years.
5.
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 |
6.
Respondent is assessed and agrees to pay a
civil penalty of Twenty Eight Thousand Seven Hundred and Fifty Dollars ($28,750). 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:
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Paragraph |
Violation |
Stipulated Penalty |
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3 |
Failure to submit required
documentation by deadline |
$250 per
week |
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4 |
Failure to submit required records by
deadline |
$250 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:
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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 |
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 Respondent shall in any way alter their 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 5, 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 their obligation to comply with the
requirements of their applicable permit 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.
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TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
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Arconic, Inc. formerly known as Alcoa, Inc. |
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By: |
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David
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Enforcement
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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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2019. |
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For
the Commissioner |
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Signed
on April 9, 2019 |
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Matthew
Stuckey, Deputy Assistant Commissioner |
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Office
of Air Quality |
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Indiana
Department of Environmental Management |
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