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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. POET
BIOREFINING – CLOVERDALE, LLC, 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 POET Biorefining
– Cloverdale, LLC (“Respondent”), which owns and operates the stationary
ethanol production facility with Plant I.D. No. 133-00003 located at 2265 East
County Road 800 South in Cloverdale, Putnam County, Indiana (the “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:
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Jeff
Broin, Chairman & CEO |
National
Registered Agents, Inc., Registered
Agent |
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POET,
LLC |
150
West Market Street |
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4615
North Lewis Avenue |
Suite
800 |
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Sioux
Falls, SD 57104 |
Indianapolis,
IN 46204 |
5.
During an investigation conducted by
representatives of IDEM, the following violations were found:
a. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.1.5 and corresponding
conditions in previously issued permits, the Permittee shall perform PM, PM10,
and PM2.5 testing at least once every five (5) years from the date of the most
recent valid compliance demonstration.
Respondent failed to conduct compliance testing on Baghouse CE001, Baghouse
CE003 and one baghouse from group CE004 through CE010 within 5 years of the
previous valid compliance demonstrations, in violation of Part 70 Permit
133-37659-00003, condition D.1.5 and corresponding conditions in previously
issued permits.
b. Pursuant to Part 70 Permit
133-35869-00003, issued August 25, 2015, condition D.1.6, visible emission
notations for the baghouse stack exhausts (stacks SV001 through SV010) shall be
performed once per day during normal daylight operations when exhausting to the
atmosphere.
Pursuant to Part 70 Permit 133-35869-00003, issued August 25, 2015, condition D.1.9(a), to document compliance with condition D.1.6, the
permittee shall maintain records of once per day visible emission notation of
the baghouse stack exhausts.
Respondent failed to perform and/or maintain records of daily visible emission
notations for several days in 2016, in violation of Part 70 Permit
133-37659-00003, conditions D.1.6 and D.1.9(a).
c. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.2.6(d)
and corresponding conditions in previously issued permits, in order to
demonstrate compliance with conditions D.2.1(g) and D.2.3, PM, PM10 and PM2.5
testing for the DDGS Storage Building/Flat Storage (EU039) shall be conducted
at least once every five (5) years from the date of the most recent valid
compliance testing.
Respondent failed to conduct compliance testing for the DDGS Storage
Building/Flat Storage (EU039) within five years of the most recent valid
compliance demonstration, in violation of Part 70 Permit 133-37659-00003,
condition D.2.6(d) and corresponding conditions in
previously issued permits.
d. Pursuant to Part 70 Permit
133-35869-00003, issued August 25, 2015, condition D.3.6(b),
in order to demonstrate compliance with conditions D.3.1, D.3.2, and D.3.3
Permittee shall perform compliance stack testing, when operating under
Alternate Operating Scenario 1 (“AOS1”), for the following pollutants, PM,
PM10, PM2.5, VOC, NOx, CO, and Acetaldehyde testing for the RTOs (CE015 and
CE016) stack exhaust SV014). Testing
shall be conducted no later than 180 days after issuance of this permit.
Respondent failed to test the RTOs under AOS1 within 180 days of issuance of
permit, in violation of Part 70 Permit 133-35869-00003, issued August 25, 2015,
condition D.3.6(b).
e. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.2.10(a)
and Part 70 Permit 133-37458-00003, issued November 18, 2016, condition
D.2.8(b), the Permittee shall monitor and record the pressure drop across the
scrubbers CE011 and CE013 at least once per day when the associated processes
are in operation. When for any one
reading the pressure drop across a scrubber is outside the normal range the
permittee shall take a reasonable response.
Respondent operated scrubbers CE011 and CE013 for several days in January 2017
and CE013 on March 9, 2017 outside the pressure drop range without taking
response steps, in violation of Part 70 Permit 133-37659-00003, condition D.2.10(a) and Part 70 Permit 133-37458-00003, condition
D.2.8(b).
f. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.2.12(b) and (d) and
corresponding conditions in previously issued permits, the duct pressure or fan
amperage shall be observed at least once per day when the thermal oxidizer is
in operation. On and after the date the stack test results are available, the
duct pressure or fan amperage shall be maintained within the normal range as
established in the latest compliant stack test. When for any one reading, the duct pressure or
fan amperage is outside the appropriate range, the Permittee shall take a
reasonable response.
For numerous days in 2016 and 2017, the duct pressure was observed to be out of
range without response steps, in violation of Part 70 Permit 133-37659-00003,
issued March 21, 2017, condition D.2.12(b) and (d) and
corresponding conditions in previously issued permits.
g. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.2.11(c) and (d) and Part 70
Permit 133-35869-00003, issued August 25, 2015, condition D.3.10(c), On and
after the date the stack test results are available, the Permittee shall
operate both RTOs (EC015 and CD016) at or above the 3-hour average temperatures
as observed during the latest compliant stack test. If the 3-hour average temperature falls below
the level observed during the latest compliant stack test, the Permittee shall
take a reasonable response.
Respondent operated the RTOs below the 3-hour average range established during
the latest stack test for several days in April 2017 and September 2016 without
taking response steps, in violation of Part 70 Permit 133-37659-00003,
condition D.2.11(c) and (d) and Part 70 Permit 133-35869-00003, condition
D.3.10(c).
h. Pursuant to Part 70 Permit
133-37659-00003, issued March 21, 2017, condition D.4.5 and corresponding
conditions in previously issued permits, In the event that a breakdown of a NOx
and O2 or CO2 continuous emissions monitoring system (CEMS) occurs, a record
shall be made of the time and reason of the breakdown and efforts made to
correct the problem.
Respondent was not tracking or logging CEMS breakdowns or efforts to correct
the problems, in violation of Part 70 Permit 133-37659-00003, issued March 21,
2017, condition D.4.5 and corresponding conditions in previously issued permits.
7.
Respondent began utilizing a hard copy logbook
for CEMS breakdowns and corrections.
8.
The violation of condition D.2.5(c) cited in
the NOV is being withdrawn. Additional information
was submitted by Respondent on October 27, 2017 certifying that the entire
distillation and dehydration process was not in operation on October 1, 2016.
9.
Respondent has conducted the PM, PM10, and
PM2.5 testing on Baghouse CE001, Baghouse CE003, and 1 Baghouse from group
CE004 through CE010 on August 30, 2017 and September 7, 2017. Additionally, Respondent conducted the PM,
PM10 and PM2.5 testing required for the DDGS Storage/Flat Storage (EU039) on
August 30, 2017.
10.
Respondent conducted additional training of
supervisors of permit monitoring and recordkeeping requirements.
11.
Respondent began tracking individual RTO
temperature on August 29, 2017.
12.
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
133-37659-00003, unless superseded by a permit revision or renewal.
3.
By March 31, 2018, Respondent shall conduct the
required stack tests cited in Finding of Facts paragraph 5d to comply with Part
70 Permit 133-35869-00003, issued August 25, 2015, condition D.3.6(b)
4.
Within 90 days of the Effective Date,
Respondent shall submit a permit application to clarify the RTO temperature
requirements in Part 70 Permit 133-37659-00003 condition D.2, specifically
regarding continuous monitoring and averaging of each RTO independently.
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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Matthew
Chaifetz, Senior 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 Fifty-Three Thousand Seven Hundred Fifty Dollars ($53,750.00). 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”.
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
conduct stack test by March 31, 2018 |
$500 per
week or part thereof |
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4 |
Failure to submit
permit application |
$250 per
week or part thereof |
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 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 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 its obligation to comply with the
requirements of its 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
of Environmental Management |
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POET Biorefining – Cloverdale, LLC |
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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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2017. |
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For
the Commissioner |
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Signed
on December 20, 2017 |
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Keith
Baugues, Assistant Commissioner |
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Office
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Indiana
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