STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

NOVAE CORPORATION,

Respondent.

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Case No. 2016-23698-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 Novae Corporation (“Respondent”), which owns and operates a stationary trailer manufacturing plant with Plant ID No. 069-00066, located at One Novae Parkway in Markle, Huntington 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”) via certified mail on June 8th, 2017 to:

 

Steve Bermes, President              Amy L. Moreland, Registered Agent

Novae Corporation                       Novae Corporation

One Novae Parkway                    One Novae Parkway

Markle, IN 46808                          Markle, IN 46770

 

5.             During an investigation conducted by a representative of IDEM, the following violations were found:

 

a.       Pursuant to FESOP No. 069-35005-00066 condition D.3.7(a), the permittee shall maintain records for VOC content of each coating material and solvent, the amount of coating material and solvent used on a daily basis for each booth, the daily cleanup solvent used, the total VOC usage for each day, the dates and times when non-compliant coatings are used and at what booth, and the volume weighted average VOC content for coating used for non-compliant coating use.

Respondent failed to maintain records for VOC content and usage between February 18, 2015 and February 1, 2016 in violation of FESOP No. 069-35005-00066 condition D.3.7(a).

 

b.       Pursuant to FESOP No. 069-35005-00066 conditions D.1.7 and      D.2.7, the permittee shall perform quarterly inspections of the baghouses controlling particulate from powder coating operations to verify they are being operated and maintained in accordance with manufacturer’s specifications.

Respondent failed to perform quarterly inspections of the baghouses in 2015 in violation of FESOP No. 069-35005-00066 conditions D.1.7 and D.2.7.

 

c.        Pursuant to FESOP NO. 069-35005-00066 conditions D.1.8 and D.2.8, the permittee shall maintain records of the baghouse quarterly inspections to document the compliance status with conditions D.1.7 and D.2.7.

Respondent failed to maintain records of the baghouse inspections in 2015 in violation of FESOP No. 069-35005-00066 conditions D.1.8 and D.2.8.

 

d.       Pursuant to FESOP No. 069-35005-00066 conditions D.3.6(a) and D.3.6(b), the permittee shall perform daily inspections to verify the placement, integrity, and particle loading of the filters; shall perform weekly observations of the overspray from stack PB1 while one or more of the booths are in operation; and perform monthly inspections of overspray on the rooftops and the nearby ground.

Respondent failed to perform filter and overspray inspections from February 18, 2015 to February 1, 2016 in violation of FESOP No. 069-35005-00066 conditions D.3.6(a) and D.3.6(b).

 

e.       Pursuant to FESOP No. 069-35005-00066 condition D.3.7(b), the permittee shall maintain a log of daily, weekly and monthly filter and overspray inspections to document the compliance status with condition D.3.6.

 

Respondent failed to maintain records for daily, weekly, and monthly filter and overspray inspections from February 18, 2015 to February 1, 2016 in violation of FESOP No. 069-35005-00066 condition D.3.7(b).

 

f.        Pursuant to FESOP No. 069-35005-00066 condition D.3.2(b)  and Registration No. 069-20107-00066 condition 2(a), the permittee shall not allow the discharge into the atmosphere of VOC in excess of 3.5 pounds of VOC per gallon, excluding water, for non-clear coat coating as delivered to the applicator and extreme performance coatings.

 

Respondent used coating in excess of 3.5 pounds of VOC per gallon, e.g., dual prime black is 4.55 lb./gal. VOC content, in violation of FESOP No. 069-35005-00066 condition D.3.2(b) and Registration No. 069-20107-00066 condition 2(a).

 

g.       Pursuant to FESOP No. 069-35005-00066 condition D.3.5,  when using non-compliant coatings, compliance with the VOC content contained in condition D.3.2 shall be determined pursuant to 326 IAC 8-1-2(a)(7), using a daily volume weighted average of coatings on a daily basis.

 

Respondent used non-compliant coatings, e.g., dual prime black is 4.55lb/gal VOC content, but did not use the daily volume weighted average of coatings on a daily basis, in violation of FESOP No. 069-35005-00066 condition D.3.5.

 

h.       Pursuant to Registration No. 069-20107-00066, an authorized individual shall provide an annual notice to the Office of Air Quality.

 

Respondent did not submit an annual notice for 2013 and 2014 in violation of Registration No. 069-20107-00066.

 

i.         Pursuant to FESOP No. 069-35005-00066 condition C.18, quarterly deviation reports shall be submitted to IDEM.

 

Respondent did not submit quarterly reports for 2015, in violation of FESOP No. 069-35005-00066 condition C.18.

 

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 Complainant or Complainant’s delegate, and has been received by Respondents.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.             Respondent shall comply with FESOP No. 069-35005-00066.

 

3.             Pursuant to 326 IAC 2-7-11 (a), Respondent shall submit an administrative  permit amendment application to rectify a typographical error located in FESOP No. 069-35005-00066 condition D.2.7. Specifically, the condition references “powder coating operations” which pertains to equipment listed in permit section D.1. Instead, the condition should correlate to the equipment listed in section D.2 (sand blasting operations). Respondent shall submit said application in compliance with FESOP No. 069-35005-00066 condition B.19 within sixty (60) days of the date the Agreed Order is adopted.

 

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

 

Vaughn Ison, Case Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

5.             Respondent is assessed and agrees to pay a civil penalty of thirteen thousand two hundred dollars ($13,200). 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”.

 

6.             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:

 

IDEM Office of Legal Counsel

IGCN, Rm  N1307

100 N Senate Ave

Indianapolis, IN  46204

 

7.             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.

 

8.             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 6, above.

 

9.             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.

 

10.          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.

 

11.          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 their obligation to comply with the requirements of their applicable permit or any applicable Federal or State law or regulation.

 

12.          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.

 

13.          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.

 

14.          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 Respondents may incur as a result of such communications with the EPA or any other agency or entity.

 

15.          This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order until IDEM issues a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Novae Corporation

 

 

 

By:

 

 

By:

 

 

David P. McIver, Chief

 

Printed:

 

 

Enforcement Section

 

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

 

, 2017.

 

 

For the Commissioner

 

 

 

Signed on July 7, 2017

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management