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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. KNAUF
INSULATION, 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 Knauf
Insulation, Inc. (“Respondent”), which owns and operates a fiberglass
manufacturing facility with the Plant ID No. 145-00001, located at 400 East
Walker Street, in Shelbyville, Shelby 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 October 3, 2018 via Certified Mail to the following
individuals:
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Mark
Andrews, CEO |
CT
Corporation System, Registered Agent |
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Knauf Insulation, Inc. |
150
W Market St, STE 800 |
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One
Knauf Dr |
Indianapolis,
IN 46204 |
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Shelbyville,
IN 46176 |
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5.
During an investigation conducted by a
representative of IDEM, the following violations were found:
a. Pursuant to
Part 70 Permit No. 145-33858-00001 (“Permit”), issued to Respondent on July 25,
2014, Condition C.2, Respondent shall not allow the opacity to exceed an
average of forty percent (40%) in any one (1) six (6) minute averaging period.
On January 27, 2016, August 22, 2016, December 13, 2016, May 11, 2017,
September 3, 2017, and January 30, 2018, Respondent had oven and ductwork fires
that caused the opacity to exceed an average of forty percent (40%) in at least
one (1) six (6) minute averaging period each day, in violation of Permit
Condition C.2.
b. Pursuant to Permit condition D.5.12(c), Respondent
is required to operate the 614 Curing/Cooling Line Regenerative Thermal
Oxidizer (RTO) at or above the 3-hour average temperature as observed during the
most recent compliant stack test.
Respondent allowed the 614
Curing/Cooling Line RTO to operate below the 3-hour average temperature as
observed during the most recent compliant stack test for twenty-nine (29)
minutes on December 31, 2015, in violation of
Permit condition and D.5.12(c).
c. Pursuant to 326 IAC 2-7-10.5 and 326 IAC
2-7-12, Respondent shall submit an application for operational modifications
that provides all reasonable information needed to evaluate the compliance of
the source with all permit terms and conditions, including the nature and
amount of any pollutant to be emitted, including a proper estimate of the
potential to emit of the pollutants.
Respondent operated without a permit
that accurately reflected potential and actual Carbon Monoxide (CO) emissions.
Emissions testing on February 15, 2017 to determine the Particulate Matter (PM)
and CO emissions of Line 614 while bypassing the RTO showed the CO emissions of
Line 614 were 32 pounds per hour within the first hour of testing. This was in
excess of the 13.27 pounds per hour while bypassing the RTO which was provided
in the permit application dated December 25, 2009, in violation of 326 IAC
2-7-10.5 and 326 IAC 2-7-12.
d. Pursuant to Part 70 Permit No. 145-39089-00001
(“Permit”), issued to Respondent on April 13, 2018, Conditions D.1.3(a) and D.1.9(b), Respondent shall control the PM and
PM10 emissions from the glass melting furnace designated the 602B FURNACE by a
baghouse with an overall control efficiency of ninety-nine percent (99%) or
more, except during the time periods specified in the Best Available Control
Technologies (BACT) requirements for startup and shutdown.
Respondent allowed the 602B FURNACE
stack caps open intermittently during a three (3) hour period, bypassing the
baghouse on May 27, 2018, in violation of Permit Conditions D.1.3(a)
and D.1.9(b).
6.
Respondent has added equipment, including
thermocouples, deluge sprinklers, additional water lines and temperature probes
to the ductwork to prevent further stack fires.
7.
Respondent has updated their processes to
manually check the stack caps and close them as needed.
8.
Respondent conducted stack testing on multiple
days during November and December 2018 to characterize emissions from Lines 613
and 614 under various operational scenarios.
9.
Orders of the Commissioner are subject to
administrative review by the Office of Environmental Adjudication under IC
4-21.5; however, in recognition of the settlement reached, Respondent
acknowledges notice of this right and 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 above at issue.
3.
Within 60 days of the Effective Date,
Respondent shall submit a permit and source modification application to accurately
account for the worst case potential CO emissions from Lines 613 and 614 based
on all available information. The application shall require that at least one
RTO, either Line 613’s RTO or Line 614’s RTO, be in operation to control CO emissions
when either or both of Lines 613 or 614 are in operation.
4.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
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Lisa Hayhurst,
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 |
5.
Respondent is assessed and agrees to pay a
civil penalty of Seventy-Four Thousand Sixty Two Dollars and Fifty Cents ($74,062.50). 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.
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 application. |
$500.00 per week |
7.
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.
8.
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
Accounts Receivable |
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IGCN,
Rm 1340 |
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100
N Senate Ave |
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Indianapolis,
IN 46204 |
9.
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.
10.
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 8, above.
11.
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.
12.
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.
13.
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.
14.
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.
15.
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.
16.
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.
17.
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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Knauf
Insulation,
Inc. |
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By: |
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By: |
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David
P. McIver, Chief |
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Printed: |
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Enforcement
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Title: |
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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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,
2019. |
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For
the Commissioner |
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Signed
on November 15, 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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