STATE OF INDIANA

COUNTY OF MARION

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SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

AMERICAN WOODMARK CORPORATION,

Respondent.

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Case No. 2018-25233-A

 

 

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 American Woodmark Corporation (“Respondent”), which owns and operates the source with Plant ID No. 053-00058 located at 5300 Eastside Parkway Drive in Gas City, Grant 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:

 

Stephen Cary Dunston, CEO

CT Corporation System, Registered Agent

American Woodmark Corporation

American Woodmark Corporation

3102 Shawnee Drive

150 W Market Street, Suite 800

Winchester, VA 22601

Indianapolis, IN 46204

 

5.             Respondent owns and operates a stationary wood kitchen cabinet and countertop manufacturing facility.

 

6.             During a review of reports, conducted by a representative of IDEM, the following violations were found:

 

a.       Pursuant to Part 70 Operating Permit No. 053-37603-00058 (“Permit 37603”) Condition D.1.7, the thermal oxidizer is required to capture at least 90% of the VOC from Finishing Line 1 and Finishing Line 2 when in operation.

Respondent failed to reach a capture efficiency of 90% with the thermal oxidizer at the time of a stack test that occurred from November 28, 2017 to November 30, 2017, in violation of Permit 37603 Condition D.1.7.

b.       Pursuant to Permit 37603 Condition D.1.7, the thermal oxidizer is required to operate at a minimum overall control efficiency of 85.5%.

 

Respondent failed to reach an overall control efficiency of 85.5% with the thermal oxidizer at the time of a stack test that occurred from November 28, 2017 to November 30, 2017, in violation of Permit 37603 Condition D.1.7.

 

c.              Pursuant to Permit 37603 Condition B.9, Respondent is responsible for submitting an Annual Compliance Certification, detailing compliance for the calendar year, to IDEM no later than July 1 of the following year.

 

Respondent failed to submit the Annual Compliance Certification for the year 2016, in violation of Permit 37603 Condition B.9.

 

d.             Pursuant to Permit 37603 Condition C.17 and Part 70 Operating Permit No. 053-38777-00058 (“Permit 38777”) Condition C.17, Respondent is responsible for submitting a Quarterly Deviation and Compliance Monitoring Report no later than thirty (30) days after the end of the quarter being reported.

 

Respondent failed to submit the Quarterly Deviation and Compliance Monitoring Reports for the 2nd, 3rd, and 4th Quarters of 2017, in violation of Permit 37603 Condition C.17 and Permit 38777 Condition C.17.

 

e.             Pursuant to Permit 37603 Condition D.1.15 and Permit 38777 Condition D.1.16, Respondent is responsible for submitting complete Quarterly Reports, demonstrating compliance with Conditions D.1.2 and D.1.3 of Permit 37603 and Permit 38777, no later than thirty (30) days after the end of the quarter being reported.

 

Respondent submitted the Quarterly Reports late and incomplete for the 3rd and 4th quarters of 2017, in violation of Permit 37603 Condition D.1.15 and Permit 38777 Condition D.1.16.

 

f.               Pursuant to 40 CFR 63, Subpart JJ, § 63.807, Permit 37603 Condition E.1.2, and Permit 38777 Condition E.1.2, the owner or operator of an affected source subject to the rule must submit semiannual reports, covering the last six months of wood furniture manufacturing operations, no later than thirty (30) days after the end of the six-month period being reported.

 

Respondent failed to submit the 1st and 2nd semiannual reports for the year 2017, which were due July 30, 2017 and January 30, 2018, respectively, in violation of 40 CFR 63, Subpart JJ, § 63.807, Permit 37603 Condition E.1.2, and Permit 38777 Condition E.1.2.

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 40 CFR 63, Subpart JJ, § 63.807 and the permit conditions listed in the findings above at issue.

 

3.             All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Clare Parker, Case Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.             Respondent is assessed and agrees to pay a civil penalty of Ten Thousand Six Hundred Dollars ($10,600.00).  Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Two Thousand Six Hundred Fifty Dollars ($2,650.00).  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.”

 

5.             In lieu of payment to IDEM of the remaining civil penalty, Respondent shall make a cash payment of Seven Thousand Nine Hundred Fifty Dollars ($7,950.00) to the Indiana State Department of Health - Lead Trust Fund (“ISDH-Lead Trust Fund”) to fund a Supplemental Environmental Project (“SEP”) for activities related to the abatement of lead in qualifying residential properties in Indiana. Respondent shall make such payment to the “ISDH-Lead Trust Fund” within thirty (30) days of the Effective Date of this Agreed Order. Payment to the ISDH-Lead Trust Fund satisfies Respondent’s obligation to undertake a SEP to offset a portion of the civil penalty assessed in this matter.

 

6.             Implementation of this SEP will benefit Indiana communities by reducing the exposure to lead in homes where owners are unable to afford lead hazard abatement work. Lead abatement can improve health outcomes for infants, children, and adults by reducing developmental disorders, attention deficit hyperactivity disorder-related behaviors (ADHD), anemia, hypertension, and kidney and brain damage.

 

7.             The SEP proceeds will be spent on lead abatement for residential homes whose owner/occupants have applied for lead abatement pursuant to the Lead Protection Program and are residing in Indiana.

 

8.             In the event that Respondent does not make its SEP payment within thirty (30) days of the Effective Date of this Agreed Order, the full amount of the civil penalty as stated in this paragraph, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due to IDEM within fifteen (15) days from Respondent’s receipt of IDEM’s notice to pay.  Interest, at the rate established by IC 24-4.6-1-101, shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Agreed Order until the full civil penalty is paid.

 

9.             Payment for the SEP is payable by check to the “ISDH-Lead Trust Fund.”  The text “SEP-Residential lead abatement” and the Case Number of this action shall be included in the memo line of the check.  The check shall be mailed to:

 

Cashier’s Office

Indiana State Department of Health

PO Box 7236

Indianapolis, IN 46207

 

10.          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

 

11.          Respondent shall provide Complainant with documentation of payment to the ISDH-Lead Trust Fund within one (1) week of such payment.

 

12.          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.

 

13.          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 10, above.

 

14.          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.

 

15.          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.

 

16.          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.

 

17.          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.

 

18.          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.

 

19.          Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the United States Environmental Protection Agency (“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.

 

20.          This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order and IDEM has issued a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

American Woodmark Corporation

 

 

 

By:

 

 

By:

 

 

David P. McIver, Chief

 

Printed:

 

 

Enforcement Section

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2018.

 

 

For the Commissioner

 

 

 

Signed on November 16, 2018

 

Matthew Stuckey, Deputy Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management