STATE OF INDIANA		)	SS:	BEFORE THE INDIANA DEPARTMENT OF
		)
COUNTY OF MARION		)		ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
Complainant,					)
					)
	v.				)	Case No. 2014-22699-H
					)
JP, INCORPORATED - INDIANA,					)
					)
Respondent.					)

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 JP, Incorporated - Indiana (“Respondent”), which owns and/or operates a facility with United States Environmental Protection Agency (“EPA”) ID No. IND 094577095 located at 501 West Railroad Avenue, in Syracuse, Kosciusko 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 January 13, 2015 via Certified Mail to:

Bruce Korenstra, Registered Agent

JP, Incorporated - Indiana

70891 County Road 23

New Paris, Indiana 46553

Sam Korenstra, President

JP, Incorporated - Indiana

501 West Railroad Avenue

Syracuse, Indiana 46567

5. Respondent operates as a Large Quantity Generator (“LQG”) of hazardous waste at the Site.

6. Respondent manufactures high density polyurethane and fiberglass components used for automotive, recreational vehicle, boating, building industry, and decorative purposes. Additionally, Better Way Partners, LLC operates within the facility. Both businesses generate spent acetone (D001, D035, F003, and F005) from painting operations. Better Way Partners, LLC commingles its spent acetone with Respondent’s spent acetone. Both businesses jointly manage their spent acetone in the same less than 90-day container storage area.

7. 329 IAC 3.1 incorporates certain federal hazardous waste management requirements found in 40 CFR 260 through 270, and Part 273 including those identified below.

8. During an investigation, including an inspection on September 10 and 18, 2014 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous.

As noted during the first day of the inspection, Respondent did not make a hazardous waste determination on the following wastestreams: one (1) five cubic yard of Polyurethane resin waste located in the Polyurethane area; a group of twelve (12) 55-gallon drums of unknown waste contents located outdoors near the doorway of the Paint Storage Room; a second group of twelve (12) 55-gallon drums stored parallel and outdoors of the building near the Paint Storage Room and distillation trailer; and spent light bulbs stored in the Maintenance Room.

On the second day of the inspection, Respondent determined nine (9) of the group of twelve (12) 55-gallon drums stored parallel and outdoors of the building near the doorway of the Paint Storage Room were empty. Labels with the words “Hazardous Waste” were on the remaining 55-gallon drums, but Respondent did not know the actual contents of these drums.

As noted during the inspection, Respondent made an improper waste determination on spent acetone, a D001 hazardous waste, which was sent off-site for “continued reuse.” Respondent did not provide data showing the material met the specifications for continued use or document the user received the material. Respondent shipped the “continued use” spent acetone on at least two occasions on Straight Bills of Lading on April 23 and May 15, 2014.

As noted during the inspection, Respondent made an improper waste determination on spent acetone generated from the cleaning of the gelcoat booth chop gun. Respondent sprays spent acetone onto the overspray contaminated media on the floor of the gelcoat booth. Respondent routinely manages and disposes the contaminated media as a nonhazardous waste.

Subsequent to the inspection, Respondent conducted proper hazardous waste determinations on Polyurethane resin waste; 55-gallon drums of unknown contents located outdoors; and spent light bulbs.

Subsequent to the inspection, Respondent submitted a manifest documenting proper transport and disposal of the 55-gallon drums of unknown contents located outdoors at a permitted facility.

Subsequent to the inspection, Respondent ceased sending its spent acetone, a D001 hazardous waste, for “continued reuse.”

b. Pursuant to 329 IAC 3.1-6-2(2), Respondents who raise a claim that a certain material is not a solid waste, or is conditionally exempt from regulation, must demonstrate that there is a known market or disposition for the material and that they meet the terms of the exclusion or exemption. In doing so, they must provide appropriate documentation to demonstrate that the material is not a waste or is exempt from regulation. An example of appropriate documentation is a contract showing that a second person uses the material as an ingredient in a production process. In addition, owners and operators of facilities claiming that they are actually recycling materials must show that they have the necessary equipment to do so.

As noted during the inspection, Respondent was unable to provide documentation meeting the terms of the exclusion/exemption demonstrating its candidate spent acetone was not a waste and was acceptable for reuse in the continued reuse program.

Subsequent to the inspection, Respondent ceased sending its spent acetone, a D001 hazardous waste, for “continued reuse.”

c. Pursuant to 40 CFR 262.20, a generator who transports or offers for transportation hazardous waste for off-site treatment, storage, or disposal must prepare a manifest. A generator must ensure that manifests are fully filled out and contain accurate information. A generator must designate on the manifest one facility which is permitted to handle the waste described on the manifest.

As noted during the inspection, Respondent transported spent acetone, a D001 hazardous waste, on April 23 and May 15, 2014 for off-site treatment, storage, or disposal without preparing a hazardous waste manifest. Respondent did not prepare hazardous waste manifests on April 23 and May 15, 2014 for shipments of forty-one (41) 55-gallon containers of spent acetone.

As noted during the inspection, Respondent did not initially prepare a hazardous waste manifest for seven (7) 55-gallon containers of waste solvent liquid, waste solvent sludge, and waste solvent solids loaded on a trailer on December 28, 2013. Subsequently, hazardous waste manifest #002216251 GBF was prepared showing Green America Recycling, a permitted TSD facility, received the 7 55-gallon drums on January 5, 2014. This manifest was incorrectly dated December 13, 2013 and signed by the transporter on behalf of the generator.

As noted during the inspection, Respondent did not prepare hazardous waste manifests for shipments of spent acetone overspray contaminated floor media delivered to Prairie View Recycling & Disposal Landfill, a facility not permitted for the disposal of hazardous waste.

d. Pursuant to IC 13-30-2-1(11) and (12), a person may not deliver any hazardous waste to a hazardous waste facility that is not approved or does not hold a permit from the department, or cause, or allow the transportation of a hazardous waste without a manifest if a manifest is required by law.

As noted during the inspection, Respondent transported the following wastestreams for off-site treatment, storage, or disposal without preparing a manifest: spent acetone, a D001 hazardous waste, on April 23 and May 15, 2014; seven (7) 55-gallon containers of waste solvent liquid, waste solvent sludge, and waste solvent solids accidently loaded on a trailer with empty drums destined for metal recycling on December 23, 2013; and spent acetone overspray contaminated floor media delivered to Prairie View Recycling & Disposal Landfill. Respondent transported these wastestreams to facilities that are not approved or do not hold a permit from the department.

e. Pursuant to 40 CFR 268.7(a), with the initial shipment of hazardous waste to each treatment, storage, or disposal facility, a generator must send a one-time written notice documenting the determination if the waste has to be treated before it can be land disposed to each facility receiving the waste, and place a copy in the generator’s file.

As noted during the inspection, Respondent transported the following wastestreams for off-site treatment, storage, and disposal without preparing a one-time Land Disposal Notification Form: spent acetone, a D001 hazardous waste, on April 23 and May 15, 2014; seven (7) 55-gallon containers of waste solvent liquid, waste solvent sludge, and waste solvent solids accidently loaded on a trailer with empty drums destined for metal recycling on December 23, 2013; and spent acetone overspray contaminated media delivered to Prairie View Recycling & Disposal Landfill.

f. Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container.

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not mark nine (9) 55-gallon containers of hazardous waste with accumulation start dates located in the Paint Storage Room and four (4) 55-gallon containers of palletized hazardous waste in accumulation status prior to distillation located outside next to the solvent still trailer.

g. Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that while being accumulated on-site, each container and tank is labeled or marked clearly with the words “Hazardous Waste.”

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not label or clearly mark four (4) 55-gallon containers of palletized hazardous waste in the less than 90-day container storage area located outdoors next to the solvent still trailer with the words “Hazardous Waste.” This violation was corrected prior to the second day of the inspection on September 18, 2014.

h. Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.171, if a container holding hazardous waste is not in good condition, or if it begins leak, the generator must transfer the hazardous waste from this container to a container that is in good condition.

As noted during the inspection, Respondent stored hazardous waste in a 55-gallon container located outdoors near the doorway of the Paint Storage Room that was deteriorated, corroded, and bulging.

i. Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a), a container holding hazardous waste must always be closed during storage, except when it is necessary to add or remove waste.

As noted during the inspection, Respondent did not store two (2) 55-gallon containers of hazardous waste located in the less than 90-day container storage area in the Paint Storage Room completely closed. One container had an open bung hole and the other had an open bung hole with an open-top attached funnel. This violation was corrected prior to the second day of the inspection on September 18, 2014.

j. Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.174, a generator must inspect areas where containers are stored, at least weekly, looking for leaks and deterioration caused by corrosion or other factors.

As noted during the inspection, Respondent failed to conduct weekly inspections of the less than 90-day container storage areas.

k. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.35, a generator must maintain aisle space to allow the unobstructed movement of personnel, fire protection, equipment, spill control equipment, and decontamination equipment to any area of facility operation in an emergency.

As noted during the inspection, Respondent failed to provide the required aisle between rows of 55-gallon containers of hazardous waste in the less than 90-day container storage area in the Paint Storage Room. This violation was corrected prior to the second day of the inspection on September 18, 2014.

l. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.51, a generator must have a contingency plan for the facility.

As noted during the inspection, Respondent did not have a contingency plan.

Subsequent to the inspection, Respondent submitted an adequate Contingency Plan.

m. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16(a), (b), & (c), facility personnel must complete a program of classroom instruction or on-the-job training that teaches them to perform their duties in compliance with the hazardous waste management rules. Employees must be trained within six months of their date of hire and must take part in an annual review of the initial training.

As noted during the inspection, Respondent did not provide employees with initial and annual hazardous waste training.

Subsequent to the inspection, Respondent provided employees who handle, label, or move hazardous waste with adequate hazardous waste training.

9. 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 statutes and rules listed in the findings above.

3. Upon the Effective Date, Respondent shall cease spraying spent acetone directly onto overspray contaminated media on the floor in the gelcoat booth. Spent acetone generated from the flushing of chop guns shall be managed in containers in compliance with applicable requirements of Subpart I, AA, BB, and CC of 40 CFR 265 or in tanks in compliance with the applicable requirements of Subpart J, AA, BB, and CC of 40 CFR Part 265 except 265.197(c) and 265.200.

4. Within sixty (60) days of the Effective Date, Respondent shall remove visible staining from releases on the floor in the gelcoat chop booth area noted in Finding 8.a. by scraping and/or power washing.

5. Within seventy-five (75) days of the Effective Date, Respondent shall submit to IDEM photos showing the complete removal of visible staining on the floor in the gelcoat chop booth area.

6. Within seventy-five (75) days of the Effective Date, Respondent shall submit to IDEM documentation, including manifests, demonstrating the waste generated from the cleanup of the releases on the floor in the gelcoat chop booth area has been property transported and disposed of at a permitted land disposal facility.

7. Upon the Effective Date, Respondent shall comply with 40 CFR 262.20 and IC 13-30-2-1(11) and (12). Specifically, Respondent shall not transport hazardous waste for off-site treatment, storage, or disposal without preparing a manifest and ensuring manifests are fully filled out and contain accurate information.

8. Upon the Effective Date, Respondent shall comply with 40 CFR 268.7(a). Specifically, Respondent shall not transport hazardous waste for off-site treatment, storage, or disposal without preparing a one-time Land Disposal Notification Form.

9. Upon the Effective Date, Respondent shall comply with 40 CFR 262.34(a)(2). Specifically, Respondent shall mark each container holding hazardous waste with the accumulation start date.

10. Upon the Effective Date, Respondent shall comply with 40 CFR 262.34(a)(3). Specifically, Respondent shall mark or label each container holding hazardous waste with the words “Hazardous Waste.”

11. Upon the Effective Date, Respondent shall comply with 40 CFR 265.171. Specifically, Respondent shall ensure that containers holding hazardous waste are kept in good condition.

12. Upon the Effective Date, Respondent shall comply with 40 CFR 265.173(a). Specifically, Respondent shall ensure containers of hazardous waste are always kept closed during storage, except when it necessary to add or remove waste.

13. Upon the Effective Date, Respondent shall comply with 40 CFR 265.174. Specifically, Respondent shall inspect areas where containers are stored at least weekly, looking for leaks and deterioration caused by corrosion or other factors.

14. Upon the Effective Date, Respondent shall comply with 40 CFR 265.35. Specifically, Respondent shall ensure adequate aisle space between containers in the outside container storage area.

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

Jennifer Reno, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

16. Respondent is assessed and agrees to pay a civil penalty of forty-one thousand two hundred dollars ($41,200). Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of twenty-two thousand three hundred twenty-seven dollars ($22,327). 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 thirty-seven thousand seven hundred forty-six dollars ($37,746). Within fifteen (15) 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.

17. As a Supplemental Environmental Project, Respondent shall purchase and install a solvent recovery unit for waste acetone. Respondent estimates 5,200 gallons per year reduction in waste acetone generation (75% recovery rate) with the operation of the solvent recovery unit. Respondent shall commence operating the solvent recovery by no later than April 1, 2016. Implementation of this SEP will reduce the amount of waste acetone generated by the Respondent. Additionally, this SEP will reduce Respondent’s consumption of new solvent, thus reducing the use of natural resources to produce new solvent.

18. In the event that Respondent does not complete the SEP by April 1, 2016, the full amount of the civil penalty as stated in paragraph #16 above, 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 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.

19. 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:

Paragraph	Penalty
Order Paragraph 4	$500 per week
Order Paragraph 5	$250 per week
Order Paragraph 6	$250 per week

20. Stipulated penalties shall be due and payable no later than the 30^th day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the 30^th 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 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.

21. 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:

Indiana Department of Environmental Management

Office of Legal Counsel

IGCN, Room N1307

100 North Senate Avenue

Indianapolis, IN 46204

22. 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 21, above.

23. This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns. Respondent’s signatory to this Agreed Order certifies that he is fully authorized to execute this Agreed Order and legally bind the party he represents. No change in ownership, corporate, or partnership status of Respondent shall in any way alter his status or responsibilities under this Agreed Order.

24. 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.

25. 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.

26. 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 his applicable permits or any applicable Federal or State law or regulation.

27. 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.

28. 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.

29. 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.

30. This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management
By: _________________________				By: _________________________
	Nancy Johnston, Section Chief
	Enforcement Section			Printed: ______________________
Office of Land Quality
				Title: ________________________
Date: ______________________				Date: ________________________
				COUNSEL FOR RESPONDENT:
				By: ________________________
				Date: ______________________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		_____	DAY OF	________________________,	20__.
				For the Commissioner:
				Signed on 4/22/15_________
				Bruce H Palin
				Assistant Commissioner
				Office of Land Quality