STATE OF INDIANA COUNTY OF MARION	) ) )	SS:	BEFORE THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT, Complainant, v. JASPER ENGINE EXCHANGE INC., Respondent.				) ) ) ) ) ) ) ) ) )	Case No. 2015-22874-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 Jasper Engine Exchange Inc., (“Respondent”), which owns/operates the Jasper Engine Exchange Inc., with Plant ID No. 037-00089, located at 815 Wernsing Road and 911 W. Division Road in Jasper, Dubois 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”) to.

Zachery Bawel, President	Raymond J. Schwenk, Registered Agent
Jasper Engine Exchange Inc.	815 Wernsing Rd.
P.O. Box 650	Jasper, Indiana 47546
Jasper, Indiana 47547

5. Respondent owns and/or operates a stationary engine, transmission, and differential parts remanufacturing plant

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

a. Pursuant to 326 IAC 2-7-10.5, an owner or operator of a Part 70 source proposing to construct new emission units, modify existing emission units, or otherwise modify the source shall submit a request for a modification approval and the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has issued a modification approval.

Respondent failed to submit a Part 70 permit application for Jasper Engine Exchange Inc. and receive modification approval prior to constructing Branch #53, in violation of 326 IAC 2-7-10.5.

b. Pursuant to 326 IAC 2-7-12, a source may not operate an air pollutant emitting source or emissions unit prior to submitting a Part 70 permit application.

Respondent failed to submit a Part 70 permit application for Jasper Engine Exchange Inc. or receive approval prior to operating Branch #53, in violation of 326 IAC 2-7-12.

7. The source received a Significant Source Modification on October 21, 2014 and a Significant Permit Modification on November 11, 2014.

8. 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 326 IAC 2-7-10.5 and 326 IAC 2-7-12.

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

Tammy Haug, Compliance and Enforcement Manager

Southwest Regional Office

Indiana Department of Environmental Management

PO Box 128

Petersburg, IN 47567

4. Respondent is assessed a civil penalty of Nine Thousand Dollars ($9,000.00). 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 Five Hundred Thirty-Four Dollars and Sixty-Six Cents ($2,534.66). 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 Projects (“SEP”). Respondent estimates that these SEPs will cost Nineteen Thousand Three Hundred Ninety-Six Dollars ($19,396.00).

1) Pollution Prevention/Pollution Reduction: Within Fifteen (15) days of installation of equipment, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. Within Fifteen (15) days of one (1) year after installation of equipment, Respondent shall submit a final report to IDEM which describes the amount of water usage and the increase in oil recovery (compared to the previous 12 months).

2) Community Involvement: Within Fifteen (15) days of purchase of equipment, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. Respondent shall submit semiannual updates to IDEM for 12 months which describe the amounts and types of material recycled.

In the event that the cost of the SEP is less than Nineteen Thousand Three Hundred Ninety-Six Dollars ($19,396.00), Respondent shall pay 100% of the difference between the estimated SEP cost of $19,396.00 and the actual cost of the SEP.

As a Supplemental Environmental Project, Respondent shall purchase and install Oil Coalescers and Oil Skimmers for Jasper Engine to improve oil recovery by 20% and reduce water treated by 20%. Respondent shall also purchase recycling containers for the Dubois County Solid Waste Management District. Respondent shall install units at Jasper Engine within 8 weeks of issuance of Agreed Order. Implementation of this SEP may increase oil reclamation by 18,000 gallons, may decrease treatment of wastewater by 300,000 gallons and will increase recycling and recycling awareness in Dubois County.

In the event that Respondent does not complete the SEP and reporting requirements within fifteen (15) months of date issued Agreed Order 2015-22874-A, the full amount of the civil penalty as stated in paragraph (4) 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.

5. 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

6. 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.

7. 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 5, above.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

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

TECHNICAL RECOMMENDATION:			RESPONDENT:
Department of Environmental Management			Jasper Engine Exchange Inc.
By:			By:
	Vaughn Ison, Chief		Printed:
	Compliance and Enforcement Section 3		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		, 2015.
			For the Commissioner
			Signed on December 9, 2015
			Keith Baugues, Assistant Commissioner
			Office of Air Quality
			Indiana Department of Environmental Management