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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. CENTRAL
INDIANA ETHANOL, 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 Central Indiana Ethanol, LLC (“Respondent”), which owns and operates the
ethanol production plant with Plant ID No. 053-00062, located at 2955 West
Delphi Place in Portland
Marion, 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 is issuing a Notice of Violation (“NOV”) in conjunction
with this Agreed Order via Certified Mail to.
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Ryan
Drook, President |
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Central
Indiana Ethanol, LLC |
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2955
West Delphi Place |
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Marion,
Indiana 46952 |
5.
During
an investigation conducted by a representative of IDEM, the following
violations were found:
a.
Pursuant
to 326 IAC 8-5-6 and condition D.2.4 of permit 053-32070-00062 an owner or
operator of a fuel grade ethanol production plant that is a dry mill shall
install and operate at least one of the following control devices for VOC
emissions from the plant: “…(2) A wet
scrubber with an overall control efficiency of not less than ninety-eight
percent (98%) or resulting in a volatile organic compound concentration of not
more than twenty (20) parts per million (ppm)” and the VOC emissions from the fermentation
and distillation processes shall be controlled by a scrubber when venting to
the emergency stack. Condition D.2.4 specifically requires the scrubber to be
in operation and control distillation and fermentation at all times the
fermentation and distillation processes are in operation.
Respondent failed to operate a wet scrubber to control the VOC and HAP
emissions from the fermentation process on May 13, 2014 through May 16, 2014
for approximately 72 hours during a plant shutdown, in violation of 326 IAC
8-5-6 and conditions D.2.4 of permit 053-32070-00062.
b.
Pursuant
to 326 IAC 8-5-6 and Conditions D.1.6, D.1.7, D.1.9, D.2.6, D.2.8, D.3.13 and
D.4.7 of both permits 053-32070-00062 and 053-30294-00062; D.3.9, D.4.6, and
D.4.9 of permit 053-32070-00062; D.3.10, D.4.8 and D.4.10 of permit
053-30294-00062, Respondent shall take and record visible emission notations
from emission unit stacks stated in the conditions, pressure drop readings
across baghouses controlling those units and scrubber
flow rate readings.
Respondent
failed to take and record visible emissions notations, pressure drop readings
and scrubber flow rate readings for several days in 2012, 2013 and 2014 in
violation of 326 IAC 8-5-6 and conditions D.1.6, D.1.7, D.1.9, D.2.6, D.2.8,
D.3.13 and D.4.7 of both permits 053-32070-00062 and 053-30294-00062; D.3.9,
D.4.6, and D.4.9 of permit 053-32070-00062; D.3.10, D.4.8 and D.4.10 of permit
053-30294-00062.
c.
Pursuant
to Conditions D.1.7 and D.2.6 of permits 053-32070-00062 and 053-30294-00062
and D.4.8 of permit 053-30294-00062, when for any one reading the pressure drop
of any scrubber is outside the minimum established during the latest stack
test, Respondent shall take reasonable response steps in accordance with
section C.16.
Respondent failed to take sufficient reasonable response steps for scrubber
pressure drop readings that were out of range on several days from 2012 to 2014, in violation of Conditions D.1.7 and
D.2.6 of permits 053-32070-00062 and 053-30294-00062 and D.4.8 of permit
053-30294-00062.
d.
Pursuant
to 326 IAC 8-5-6 and Conditions D.2.5 of permit 053-32070-00062 the Respondent
shall perform VOC and acetaldehyde testing of
scrubbers CE005 and CE010 once every five years from the date of the
most recent valid compliance demonstration.
Respondent failed to perform stack testing for the scrubbers by the due date of
April 2014 which is the five year mark, in violation of 326 IAC 8-5-6 and
Condition D.2.5 of permit 053-32070-00062.
e.
Pursuant
to Condition D.5.7 of permit 053-32070-00062 the Respondent shall maintain records
of temperature or other parameters sufficient to demonstrate the presence of a pilot
flame when loading racks EU045A and/or EU045B are in operation.
Respondent failed to maintain records of the pilot flame temperature for
several days in 2014, in violation of Condition D.5.7 of permit
053-32070-00062.
6.
The
Respondent completed a VOC and acetaldehyde testing of scrubber CE005 on July 29,
2014 and scrubber CE010 on September 26, 2014.
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 the rules and permit conditions listed in the findings of
facts.
3.
Respondent
shall perform stack testing of the fermentation scrubbers CE005 and CE010 for
VOC and acetaldehyde in accordance with 326 IAC 3-6 during the next plant shutdown
process using a method acceptable to IDEM in order to evaluate compliance with
these limits during shutdown. Respondent shall submit to IDEM the required
notification prior to the test and note all operational conditions such as the
age of the mash in the fermentation tanks, the scrubber additive injection
rate, scrubber flow rate and all other parameters of
relevance during the period of testing.
4.
If
the VOC and acetaldehyde emission limit requirements are met during the testing
conducted per condition 3 of this order, Respondent shall apply to IDEM permits
branch for a significant permit modification to include an alternative
operating scenario in the permit in accordance with the operational conditions
established during the stack test within 60 days of IDEM’s receipt of the test
report.
5.
If
the VOC and acetaldehyde emission limit requirements are not met during the
testing conducted per condition 4 of this order, Respondent shall provide to
IDEM a detailed alternative plan of action for collecting and transporting the
scrubber water to the City of Marion and a timeline for the implementation of
the plan within 30 days of IDEM’s receipt of the stack test report.
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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Nandi
Tissing, 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). 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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Paragraph |
Violation |
Stipulated
Penalty |
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4 |
Failure to apply
to permits branch for a permit modification within 60 days of IDEM’s receipt
of test report if the VOC and acetaldehyde emissions requirements are met
during plant shutdown. |
$500 per week |
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5 |
Failure to
submit an alternative compliance plan of action within 30 days of IDEM’s
receipt of the test report if the emission requirements are not met. |
$500 per 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 11 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 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 the Respondent has complied with all
terms and conditions of this Agreed Order and IDEM issues a Resolution of Case
letter to the Respondent.
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TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
of Environmental Management |
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Central Indiana Ethanol, LLC |
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By: |
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By: |
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Lynne
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Printed: |
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Compliance
and Enforcement Section 2 |
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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 October 29, 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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