STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) Case No. 2000-9022-A

)

H.A. PARTS PRODUCTS OF INDIANA CO., )

)

Respondent. )

AGREED ORDER

The Complainant and the 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.

I. FINDINGS OF FACT

1. Complainant is the Commissioner ("Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is H.A. Parts Products of Indiana Co. ("Respondent"), which operates the plastic automotive trim molding and surface coating operation located at 2200 S.R. 240 East, in Greencastle, Putnam Co., Indiana ("Site").

3. The Indiana Department of Environmental Management ("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 via Certified Mail to:

Mitsumasa Sasaki, President C.T. Corporation System, H.A. Parts Products of Indiana Co. Registered Agent

2200 S.R. 240 East One North Capitol Avenue

Greencastle, Indiana 46135 Indianapolis, Indiana 46204

• An investigation on December 4, 1998, February 8, 2000, August 25, 2000 and June, 2001, was conducted of the Site by a representative of IDEM's Office of Air Quality (OAQ). The following violations were in existence or observed at the time of these reviews:

a. Pursuant to 326 IAC 8-1-6 and construction permit No. 133-5802-00019 issued October 7, 1996, permit condition No. 8, and construction permit No. 133-8608-00019 issued October 6, 1997, permit condition No. 12, the total amount of volatile organic compounds (VOC) delivered to the applicators shall not exceed 2.85 tons per month and 5.3 tons per month respectively. The Respondent has failed to demonstrate compliance with both of the previously noted permit conditions for eighteen months, a violation of construction permit No. 133-5802-00019, permit condition No. 8, and construction permit No. 133-8608-00019, permit condition No. 12.

b. Pursuant to construction permit No. 133-5802-00019, permit condition No. 9, and construction permit No. 133-8608-00019, permit condition No. 11, the Respondent shall maintain a log of information necessary to document compliance with construction permit No. 133-5802-00019, permit condition No. 8, and construction permit No. 133-8608-00019, permit condition No. 12 respectively. The log must be maintained for a minimum of 36 months and made available upon request to the Office of Air Quality. Office of Air Quality personnel documented that the previously noted logs were not available for review at the time of inspections conducted on December 4, 1998, and February 8, 2000, a violation of construction permit No. 133-5802-00019, permit condition No. 9, and construction permit No. 133-8608-00019, permit condition No. 11.

c. Pursuant to 326 IAC 2-5.1-3 and 326 IAC 2-6.1 no person shall construct, operate, or modify a source or emissions unit required to obtain a registration, permit, modification approval, or operating permit revision prior to issuance of a registration, permit, modification approval, or operating permit revision, except as provided in this article. The Respondent was found to have constructed and operated a Dry Spray Booth, Mask Washers, a Co-Extrusion operation and a Flocking operation without applying for or obtaining registration, permit, modification approval, or operating permit revision, a violation of 326 IAC 2-5.1-3 and 326 IAC 2-6.1.

d. Pursuant to 326 IAC 2-7-3, any Part 70 source which has failed to submit a timely and complete Part 70 permit application may not operate after the time that it is required to submit the Part 70 permit application. The Respondent continued to operate following the December 13, 1996 Part 70 permit submission deadline and prior to applying for and receiving a Part 70 permit, a violation of 326 IAC 2-7-3.

e. Pursuant to 326 IAC 2-7-4, the owner of each Part 70 source shall submit a timely and complete permit application. The Respondent's Part 70 permit application was received after the December 13, 1996 submission deadline, a violation of 326 IAC 2-7-4.

f. Pursuant to 326 IAC 2-6-3, the owner or operator of any facility with the potential to emit carbon monoxide (CO), volatile organic compounds (VOCs), oxides of nitrogen (NO_x), particulate matter (PM₁₀), or sulfur dioxide (SO₂) into the ambient air at levels equal to or greater than one hundred (100) tons per year shall annually submit an emission statement to the Commissioner by July 1 of the following year. The Respondent failed to submit the emission statement for 1998 and 1999 by July 1, 1999 and July 1, 2000 a violation of 326 IAC 2-6-3. These emission statements were received by IDEM on February 12, 2002.

6. 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 the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. Respondent shall comply with 326 IAC 8-1-6, 326 IAC 2-5.1, 326 IAC 2-6.1, 326 IAC 2-6-3 and all permit conditions contained in air permits issued to Respondent by IDEM.

• Respondent is assessed a civil penalty of One Hundred Nine Thousand Eight Hundred Dollars ($109,800). Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Seventy-Six Thousand Three Hundred Dollars ($76,300). Said penalty amount shall be due and payable to the Environmental Management Special Fund. In lieu of payment of the remaining civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (SEP). Respondent estimates that this SEP will cost Sixty Seven Thousand Dollars ($67,000). Within 30 days of completing this SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. In the event that the cost of the SEP is less than $67,000, Respondent shall pay Fifty Percent (50%) of the difference between the proposed cost of the SEP ($67,000) and the actual cost of the SEP.



• As a Supplemental Environmental Project, Respondent shall reduce actual VOC and HAP emissions from the mask washing processes. Respondent shall remove from the site, mask washers identified as mask washers #5 and #6 and purchase and install a solventless mask washer. This solventless washing method will reduce or eliminate the VOC and HAP emissions from this process. Current total allowable VOC and HAP emissions for all four washers is 37.50 tons per year for each pollutant. In order to meet the terms of this project, Respondent must limit actual VOC emissions from the remaining mask washers identified as mask washers #1 and #7 to 5.1 tons per year and actual HAP emissions to 4.74 tons per year no later than October 1, 2002. The solventless mask washer must not emit any VOCs or HAPs.



• Respondent shall apply for a modification of Title 5 permit T133-12660-00019 to address the emission limits identified in the SEP and removal of mask washers #5 and #6 within thirty (30) days from the Effective Date of this Order.



• Respondent shall keep monthly solvent usage records for mask washers #1 and #7 to demonstrate compliance with the VOC and HAP limits. All records shall be maintained in accordance with Section C - General Record Keeping Requirements of permit T133-12660-00019.
• In the event that the Respondent does not complete the SEP as stated in paragraph 4 above by October 1, 2002, the full amount of the civil penalty, plus interest established by IC 24-4.6-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due 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.

8. 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:

Cashier

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

9. In the event that the civil penalty required by Order paragraph 3, is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

10. This Agreed Order shall apply to and be binding upon the Respondent, its successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

11. In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.

12. The 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 shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management H.A. Parts Products of Indiana Company

By: _________________________ By: _________________________

David P. McIver

Chief, Air Section Printed: ______________________

Office of Enforcement

Title: ________________________

Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: _________________________ By: ________________________

Office of Legal Counsel

Date: _______________________ Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 2002.

For the Commissioner:

Signed 7/2/02

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs