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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. DUKE ENERGY INDIANA, 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 Duke Energy Indiana, Inc. (“Respondent”), which owns/operates the Edwardsport Generating Station with Plant ID No. 083-00003,
located at 15424 East State Road 358, in Edwardsport,
Knox County, Indiana (“Edwardsport Generating Station”).
3.
IDEM
has jurisdiction over the parties and the subject matter of this action.
4.
Respondent
waives issuance of a Notice of Violation as provided for by IC 13-30-3-3.
5.
Respondent
operates an integrated coal gasification combined cycle stationary electric
generating station.
6.
During
an investigation including an inspection on August 20, 2013 conducted by a representative of IDEM, the following violations
were found:
a. Pursuant
to Part 70 Permit No. 083-27138-00003 (“permit”), issued to Respondent on April
3, 2013, condition D.7.6(a) requires thermal oxidizer stack testing for SO2
during both peak SRU startup and normal operation within 180 days of startup. Startup began on October 27, 2012. Respondent was granted a testing extension
allowing these tests to be conducted on or before July 1, 2013. Testing was completed on June 6, 2013 during
only normal operation.
Respondent failed to complete stack testing of the thermal oxidizer for SO2
during peak SRU startup conditions within the period of 180 days of startup and
the stack testing extension timeframe, in violation of condition D.7.6(a) of the
permit.
b. Pursuant
to the permit, condition B.21 requires the respondent to allow IDEM access to
any records that must be kept under the conditions of the permit; conditions D.8.12(c)(1) and D.8.12(d)(1) require that records be maintained of
the date and time of SRU operation with confirmation that both the thermal
oxidizer is operating and the flare pilot flame is present.
Respondent did not allow IDEM access to electronic records documenting
compliance with permit conditions D.8.12(c)(1) and D.8.12(d)(1),
in violation of condition B.21 of the permit.
c. Pursuant
to the permit, condition G.1.1 requires the respondent to submit to IDEM the
NSPS reports referenced in condition G.1.2; condition G.1.2 identifies
semiannual reporting requirements for the combustion turbines (NSPS 40 CFR
60.51Da).
Respondent did not provide the NSPS semiannual reports covering operation from
March 13, 2012 through June 30, 2013 to IDEM, in violation of condition G.1.1
of the permit.
d. Pursuant
to the permit, condition G.2.1 requires the permit holder to submit to IDEM the
NSPS reports referenced in condition G.2.2; condition G.2.2 identifies
semiannual reporting requirements for the auxiliary boiler (NSPS 40 CFR 60.49Db).
Respondent did not provide the NSPS semiannual reports covering operation from
July 21, 2011 through June 30, 2011 to IDEM, in violation of condition G.2.1 of
the permit.
7.
During
a field inspection conducted by IDEM on August 20, 2013, the inspector observed
the potential for particulate matter emissions coming from Respondent’s wet rod
mill process. IDEM is not alleging any
violation with respect to the wet rod mill units at this time. The wet rod mill units have neither been
tested for particulate matter emissions, nor included in Respondent’s permit.
8.
The
Respondent completed stack testing of the thermal oxidizer for SO2 during peak
SRU startup conditions on November 19, 2013.
Results of the stack test demonstrated compliance with applicable
conditions of Respondent’s permit.
9.
The
Respondent submitted updated NSPS 40 CFR 60.51Da and 60.49b semiannual reports on
November 20, 2013 and has continued this reporting on a timely basis.
10.
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 permit conditions listed in the findings above at issue.
3.
a) Within ninety days of the Effective Date,
Respondent shall incorporate continuous thermal oxidizer and flare temperature
data recording capabilities within the facility’s Stackvision
(or other equivalent system) database.
The system will be maintained to allow access to historical and current
thermal oxidizer and flare temperature data.
Historical temperature data accessible through the facility’s Stackvision database will begin with the date on which the
facility’s Stackvision system is modified to
incorporate the capability of recording temperature data for the thermal
oxidizer and flare.
b)
Within fifteen days of initially incorporating continuous thermal oxidizer and
flare temperature data into the facility’s Stackvision
or equivalent database, Respondent shall submit to IDEM documentation of
thermal oxidizer and flare temperature data incorporation into the database.
4.
Within
ninety days of the Effective Date, Respondent shall perform particulate matter
and condensable particulate matter stack testing of one wet rod mill in accordance
with the requirements of 326 IAC 3-6.
5.
Respondent
shall determine whether the results of the stack testing of the wet rod mill
specified by the preceding paragraph 4 warrant the submittal of a permit
modification application for inclusion of emissions from the wet rod mills to
IDEM. Respondent shall submit to IDEM one of the
following within one hundred eighty days of submittal of the stack test results
to IDEM: documentation of the determination that a permit modification is not
required for the wet rod mill units; or a permit modification application for
the units.
6.
All
submittals required by this Agreed Order, unless Respondent is notified
otherwise in writing by IDEM, shall be sent to:
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Patrick
J. Austin, 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 |
7.
Respondent
is assessed and agrees to pay a civil penalty of eighteen thousand dollars ($18,000.00). 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”.
8.
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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Violation |
Stipulated Penalty |
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Condition
3a: Failure to incorporate continuous thermal oxidizer and flare temperature
data recording capabilities within the facility’s Stackvision
(or equivalent) database within ninety days of the Effective Date. |
$500.00/week |
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Condition 3b: Failure to provide
documentation of continuous thermal oxidizer and flare temperature data
recording capabilities within the facility’s Stackvision
(or equivalent) database within fifteen days of the new data’s incorporation. |
$100.00/week |
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Condition 4: Failure to perform
particulate matter and condensable particulate matter stack testing of at
least one wet mill unit in accordance with the requirements of 326 IAC 3-6 within
ninety days of the Effective Date. |
$500.00/week |
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Condition 5: Failure to submit to
IDEM either documentation that the permit modification is not required or a
permit modification application within one hundred and eighty days of the test
result submittal to IDEM. |
$500.00/week |
9.
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.
10.
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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Indiana
Department of Environmental Management |
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Cashier
– Mail Code 50-10C |
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100
North Senate Avenue |
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Indianapolis,
IN 46204-2251 |
11.
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 their status or responsibilities
under this Agreed Order.
12.
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.
13.
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.
14.
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.
15.
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.
16.
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.
17.
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 findings of fact in this
Agreed Order.
18.
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.
19.
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
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Duke Energy Indiana, Inc. |
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By: |
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By: |
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Lynne
J. Sullivan, Chief |
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Printed: |
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Compliance
and Enforcement Section 2 |
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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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2014. |
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For
the Commissioner |
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Signed
on August 6, 2014 |
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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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