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STATE OF
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BEFORE THE
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COUNTY OF
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ENVIRONMENTAL
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COMMISSIONER
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Complainant, |
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Case Nos. 2018-25594-A |
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2020-26744-A |
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CHIYODA USA
CORPORATION, |
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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 Indiana Code (“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 IC
13-13-1-1.
2.
Respondent
is Chiyoda USA Corporation (“Respondent”), which owns and operates the stationary
plastic automotive trim molding and surface coating facility with Plant ID No.
133-00019, located at 2200 State Road 240 East, in Greencastle, Putnam 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 April 30, 2021 via Electronic Mail
to:
Kevin Redding,
President Corporation
System Corporation,
Chiyoda USA
Corporation Registered
Agent
2200 State
Road 240 East, 251 East
Ohio, Suite 500
PO Box 494 Indianapolis,
IN 46204
Greenfield, IN
46135 sop@scsglobal.com
kredding@chiyoda-usa.com
5.
During
an investigation including an inspection on August 8, 2018, and report reviews
conducted by a representative of IDEM, the following violations were found:
Based on the
Enforcement Action Letter issued to Respondent on August 31, 2018, case number
2018-25594-A contains the following violations:
a.
Pursuant
to Part 70 Operating Permit No. 133-37638-00019 (“Permit”), condition
D.1.8(b)(5), Respondent shall maintain records of the volume weighted average
volatile organic content ("VOC”) of coatings and solvents used each day
for robot paint system PT541.
Respondent failed
to maintain records of the volume weighted average VOC content of coatings and
solvents used each day for robot paint system PT541 from November 1, 2016 to August 31, 2018, February 28, 2019, and March 30,
2019, in violation of Permit condition D.1.8(b)(5).
b.
Pursuant
to Permit condition E.1.2 and 40 CFR 63.4520(a), Respondent shall submit
semiannual compliance reports for each affected source according to the
requirements of paragraphs (a)(1) through (7) of this section.
Respondent failed to submit the semiannual compliance
reports in a timely manner for the second half of 2016, the first half of 2017,
the second half of 2017, and the first half of 2018, in violation of Permit
condition E.1.2 and 40 CFR 63.4520(a).
c.
Pursuant
to Permit condition C.15, Respondent shall submit by July 1 of each year an
emission statement covering the previous calendar year. The emission statement
shall contain, at a minimum, the information specified in 326 IAC 2-6-4(c) and
shall meet the following requirements: (1) Indicate estimated actual emissions
of all pollutants listed in 326 IAC 2-6-4(a); and (2) Indicate estimated actual
emissions of regulated pollutants as defined by 326 IAC 2-7-1(33) (“Regulated
pollutant, which is used only for purposes of Section 19 of this rule”) from
the source, for purpose of fee assessment.
Respondent failed to identify all pollutants listed in 326
IAC 2-6-4(a) on the 2016 emission statement, in violation of Permit condition
C.15.
d.
Pursuant
to Permit condition D.5.4, in order to verify
compliance with 326 IAC 2-7, not later than sixty (60) days after achieving
maximum capacity, but not later than one hundred eighty (180) days after
initial startup of the fluidized cleaning bed, the Permittee shall conduct PM,
PM10, and PM2.5 testing for the fluidized cleaning bed.
Respondent failed to conduct compliance testing on the
fluidized cleaning bed within one hundred eighty (180) days of initial startup,
in violation of Permit condition D.5.4.
e.
Pursuant
to Permit condition E.2.2 and 40 CFR 63.7545(c), as specified in §63.9(b)(4)
and (5), if you startup your new or reconstructed affected source on or after
January 31, 2013, you must submit an Initial Notification not later than
fifteen (15) days after the actual date of startup of the affected source.
Respondent failed to submit Initial Notifications of
startup of affected units HWB-01 and HWB-02 within fifteen (15) days of
startup, in violation of Permit condition E.2.2 and 40 CFR 63.7545(c).
f.
Pursuant
to Permit condition E.2.2 and 40 CFR 63.7545(e), for the initial compliance
demonstration for each boiler or process heater, you must submit the
Notification of Compliance Status, including all performance test results and
fuel analyses, before the close of business on the 60th day following the
completion of all performance tests and/or other initial compliance
demonstrations for all boiler or process heaters at the facility according to
§63.10(d)(2).
Respondent failed to submit the Notification of Compliance
Status of affected units before the close of business on the 60th day following
the completion of all performance tests and/or other initial compliance
demonstrations for affected units HWB-01 and HWB-02, in violation of Permit
condition E.2.2 and 40 CFR 63.7545(e).
g.
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 as described in this section shall submit a request for a
modification approval in accordance with this section.
Respondent failed to submit a request for a modification to
add twenty-five (25) injection molding machines, two (2) blow molding machines,
and three (3) granulators, in violation of 326 IAC 2-7-10.5.
h.
Pursuant
to 326 IAC 2-7-12, an owner or operator of a Part 70 source must submit a
permit application prior to operation of regulated emission units.
Respondent failed to submit a permit application prior to
the operation of twenty-five (25) injection molding machines, two (2) blow
molding machines, and three (3) granulators, in violation of 326 IAC 2-7-12.
i.
Pursuant
to Permit condition D.1.8(a)(2)(B), Respondent shall maintain records of the
amount of coating material and solvent less water used on monthly basis.
Solvent usage records shall differentiate between those added to coatings and
those used as cleanup solvents for units PT 531, PT 532, PT 536, PT 537, PT
538, and PT 539.
Respondent failed to maintain records of solvent usage that
differentiated between solvents added to coatings and those used for cleanup
for units PT 531, PT 532, PT 536, PT 537, PT 538, and PT 539 for a total of
seventy-two (72) days during the first quarter of 2019, in violation of Permit
condition D.1.8(a)(2)(B).
j.
Pursuant
to Permit condition D.1.8(b)(2)(B), Respondent shall maintain records of the
amount of coating material and solvent-less water used on monthly basis.
Solvent usage records shall differentiate between those added to coatings and
those used as cleanup solvents for unit PT 541.
Respondent failed to maintain records of solvent usage that
differentiated between solvents added to coatings and those used for cleanup
for unit PT 541, during the first and second quarters of 2019, in violation of
Permit condition D.1.8(b)(2)(B).
k.
Pursuant
to Permit condition E.1.2(5) and 40 CFR 63.4490(b)(1), for each existing
general use coating affected source, Respondent shall limit organic hazardous
air pollutant (“HAP”) emissions to no more than 0.16 kg (0.16 lb) organic HAP emitted per kg (lb)
coating solids used during each 12-month compliance period.
Respondent exceeded the 0.16 kg (0.16 lb)
HAP emission limit eleven (11) times from January 2017 to May 2018 for unit PT
536 and one (1) time during March 2018 for unit PT 539, in violation of Permit
condition E.1.2(5) and 40 CFR 63.4490(b)(1).
Based on the Enforcement
Action Letter issued to Respondent on January 13, 2020, case number
2020-26744-A contains the following violations:
l.
Pursuant
to Permit condition B.10, a Preventive Maintenance Plan meet the requirements
of 326 IAC 1-6-3 and shall be implemented.
Respondent failed to implement the required Preventative Maintenance
Plan from January 1, 2019 to June 6, 2019, in
violation of Permit condition B.10.
m.
Pursuant
to 326 IAC 8-1-6 and Permit condition D.1.1(d)(2) and corresponding conditions
in subsequent permits, the daily volume-weighted average VOC content of all
coatings used in the robot paint spray system PT-541 shall not exceed 4.35
pounds of VOC per gallon of coating, excluding water.
Respondent exceeded the daily volume-weighted average of
all coatings used in the robot paint spray system PT-541 a total of 138 days from July 1, 2019
through September 17, 2020, in violation of 326 IAC 8-1-6 and Permit condition
D.1.1(d)(2) and corresponding conditions in subsequent permits.
n.
Pursuant
to Permit condition D.1.8(d)(2) and
corresponding conditions in subsequent permits, in order to
document the compliance status with Condition D.1.1(d), the Permittee shall
maintain records of the amount of coating material and solvent less water used
on a daily and monthly basis.
Respondent failed to properly calculate the amount of coating
material and solvent-less water for unit PT-541 on twenty (20) days during
third quarter of 2019, in violation of Permit condition D.1.8(d)(2) and corresponding conditions in
subsequent permits.
6.
Respondent
tested fluidized cleaning bed on April 2, 2019, with the results that were
received on May 16, 2019, indicating compliance.
7.
Respondent
was issued Part 70 Significant Permit Modification 133-41195-00019 on October
16, 2019, in order to permit the previously
unpermitted equipment.
8.
On
September 17, 2020, Respondent replaced the high VOC coatings being used at
unit PT-541 to comply with the daily volume-weighted average of 4.35 pounds of
VOC per gallon of coating, excluding water limit.
9.
Orders
of the Commissioner are subject to administrative review by the Office of
Environmental Adjudication under IC 4-21.5; however, in recognition of the settlement
reached, Respondent acknowledges notice
of this right and 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 Part 70 Operating
Permit 133-42904-00019 unless superseded by modification or renewal.
3.
All submittals required by this Agreed Order,
unless IDEM notifies the Respondent otherwise in writing, shall be sent to:
Jennifer Bailey,
Senior Enforcement Case Manager
Office of Air Quality
Indiana
Department of Environmental Management
100 North
Senate Avenue
Indianapolis,
IN 46204-2251
Jbailey2@idem.in.gov
4.
Respondent is assessed and agrees to pay a
civil penalty of One Hundred Fifteen Thousand Two Hundred Dollars ($115,200.00). Within thirty (30) days of the Effective Date
of the Agreed Order, Respondent shall pay a portion of this penalty in the
amount of Twenty-Eight Thousand Eight Hundred Dollars ($28,800.00). 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”.
In lieu of
payment of the remaining civil penalty, Respondent shall pay Eighty-Six Thousand
Four Hundred Dollars ($86,400.00) to Quail Forever West
Central Indiana Chapter 3183 to fund a Supplemental Environmental Project
(“SEP”) for activities related to the conservation of pheasants, quail, and
other wildlife in west central Indiana. Respondent
shall make monthly payments to Quail Forever West Central Indiana Chapter 3183
with the final payment to be made no later than December 31, 2021.
Implementation
of this SEP will benefit Indiana communities by educating youth and communities
on the importance of habitats for all wildlife. By helping plant quality
pollinator project habitats, participants learn firsthand the needs of
pheasants, quail, bees, butterflies, and other upland wildlife.
The SEP
proceeds will be spent on habitat improvements, public access, education, and
conservation advocacy.
In
the event that Respondent does not make its final monthly SEP payment by
no later than December 31, 2021, the full amount of the civil penalty as stated
in this paragraph, 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 to IDEM 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.
Payments for
the SEP are payable by check to “Quail Forever West Central Indiana Chapter
3183.” The Case Number of this action
shall be included in the memo line of the check.
Respondent
shall provide Complainant with documentation of payment to Quail Forever West
Central Indiana Chapter 3183 within one (1) week of each payment.
5.
Respondent agrees to pay avoided Title V fees
in the amount of Two Hundred Fifty-Four Dollars and Twenty-Nine Cents ($254.29). Avoided Title V fees are assessed for the
period of January 2017 to December 2018, during which time Respondent failed to
identify all pollutants listed in 326 IAC 2-6-4(a). Said penalty amount shall be due and payable
to the Title V Investments Fund within thirty (30) days of the Effective Date.
6.
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:
Indiana
Department of Environmental Management
Accounts Receivable
IGCN, Room 1340
100 North Senate Avenue
Indianapolis, IN 46204
7.
Title V permit fees are payable by check to the
“Title V Investments Fund.” A cover
letter shall accompany the check specifying that the Title V fees shall be
deposited into the Title V Investments Fund.
The check and cover letter shall include the Case Number of this action
and shall be mailed to:
Indiana
Department of Environmental Management
Accounts
Receivable
IGCN, Room
1340
100 North
Senate Avenue
Indianapolis,
IN 46204
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 Paragraphs 6 and
7, above.
9.
Signatories to this Agreed Order certify that
they are fully authorized to execute this Agreed Order and legally bind the
party they represent.
10.
This Agreed Order shall apply to and be binding
upon Respondent and all successors and assigns. Respondent shall provide a copy
of this Agreed Order, if in force, to any subsequent owners, successors, or
assigns before ownership rights are transferred.
11.
No change in ownership, corporate, or
partnership status of Respondent shall in any way alter the Respondent’s status
or responsibilities under this Agreed Order.
12.
Respondent shall ensure that all contractors,
firms, and other persons performing work under this Agreed Order comply with
the terms of this Agreed Order.
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.
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 the obligation
to comply with the requirements of any applicable permits or any applicable
Federal or State laws or regulations.
15.
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.
16.
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 violations specified in the NOV.
17.
Nothing in this Agreed Order shall prevent IDEM
or anyone acting on its behalf from communicating with the U.S. Environmental
Protection Agency (“U.S. 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 U.S. EPA or any
other agency or entity.
18.
This Agreed Order shall remain in effect until
Respondent has complied with all terms and conditions of this Agreed Order and
IDEM has issued 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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Chiyoda USA Corporation |
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David
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Enforcement
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Office
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COUNSEL
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COUNSEL
FOR RESPONDENT: |
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For
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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For
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Signed
on July 22, 2021 |
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Matthew
Stuckey |
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Assistant
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Office
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Department of Environmental Management |
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