STATE OF
INDIANA |
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BEFORE THE
INDIANA DEPARTMENT |
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COMMISSIONER
OF THE DEPARTMENT Complainant, v. ALCOA INC,
- WARRICK OPERATIONS, 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 Alcoa, Inc. – Warrick
Operations (now known as Arconic Inc.) and its
successor in interest for the site Alcoa Warrick LLC (“Respondent”), which owns
and operates the stationary aluminum production plant with Plant ID No. 173-00007,
located at State Road 66 & State Road 61, in Newburgh, Warrick County,
Indiana (“Site”).
3.
IDEM has jurisdiction over the parties and
the subject matter of this action.
4.
Respondent waived issuance of a Notice of
Violation (“NOV”), on October 15, 2016, for the violations alleged in Findings
of Fact Paragraph number 5, and to the settlement period of sixty (60) days as
provided for by IC 13-30-3-3.
5.
Based on an investigation, the following
violations were found:
a.
Pursuant 326 IAC 2-7-10.5, an owner or
operator of a Part 70 source proposing to modify existing emission units shall
submit a request for a modification approval.
b.
Pursuant to 326 IAC 2-2-1(dd),
a “major modification” means any physical change in, or change in the method of
operation of, a major stationary source that would result in a significant
emissions increase and a significant net emissions increase of a regulated NSR
pollutant from the major stationary source.
c.
On March 15, 2016 the, #1 Complex and Offline
#10 furnaces were reactivated after more than 10 years of inactivity.
d.
IDEM alleges that, due to the absence of
federally enforceable limitations on the potential to emit, reactivation of the
emission units after greater than ten years of inactivity constitutes a change
in method of operation, and such constitutes a major modification in violation
of 326 IAC 2-7-10.5 and 326 IAC 2-2.
6.
At the time of settlement, if all emissions
from the reactivated units that are regulated pursuant to 326 IAC 2-2 et seq are
below the significant threshold set forth in 326 IAC 2-2-1(ww),
Respondent qualifies for relief pursuant to the 1998 U.S. EPA Guidance
on the Appropriate Injunctive Relief for Violations of Major New Source Review
Requirements
7.
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 Part 70 Permit
Administrative Amendment 173-36859-00007 issued March 14, 2016, unless
superseded by an amendment, modification or renewal.
3.
Within Ninety (90) days of the Effective
Date, Respondent shall submit a complete permit application to IDEM that
imposes limits on the potential to emit of #1 Complex and Offline #10 furnaces
to avoid PSD.
4.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
Matthew
Chaifetz, Enforcement Case Manager |
Compliance
and Enforcement Branch – Mail Code 61-53 |
Indiana
Department of Environmental Management |
100 North
Senate Avenue |
Indianapolis,
IN 46204-2251 |
5.
Respondent is assessed and agrees to pay a
civil penalty of Sixty-Seven Thousand, Five Hundred Dollars ($67,500.00). 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”.
6.
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 |
7.
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 he/she/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.
8.
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 6, above.
9.
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.
10.
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.
11.
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.
12.
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.
13.
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 Agreed Order.
14.
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.
15.
This Agreed Order shall remain in effect
until IDEM issues a Resolution of Case letter to Respondent.
TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
of Environmental Management |
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Alcoa Warrick, LLC |
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By: |
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David
P. McIver, Chief |
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Printed: |
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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 December 9, 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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