Case No. 2018-25663-A












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.




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 Alcoa Warrick LLC (“Respondent”), which owns and operates a stationary aluminum production plant with Plant I.D. No. 173-00007 located at 4400 West State Route 66 in Newburgh, Warrick County, Indiana (the “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 October 7, 2020, via Electronic Mail to:


Benjamin Kahrs, Executive Vice

CT Corporation System, Registered Agent

President & Chief Innovation Officer

334 North Senate Avenue

Alcoa USA Corp.

Indianapolis, IN 46204

201 Isabella Street

Suite 500

Pittsburgh, PA 15212


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


a.       Pursuant to 40 CFR 63.7540(a)(10), If a boiler or process heater has a heat input capacity of 10 million Btu per hour or greater, you must conduct an annual tune-up of the boiler or process heater to demonstrate continuous compliance as specified in paragraphs (a)(10)(i) through (vi) of this section.

Respondent failed to conduct the annual tune-up of #17 Annealing Furnace by April 28, 2017, in violation of 40 CFR 63.7540(a)(10).

b.       Pursuant to Part 70 permit 173-38380-00007, issued August 7, 2017, condition D.6.18(j), in the event that a bag leak detection system (“BLDS”) should malfunction, fail or otherwise need repair, the Permittee shall perform daily visible emission notations of the stack exhausts associated with that bag leak detection system.

Respondent failed to conduct daily visible emissions for Baghouse #2 when the BLDS failed on 38 days during 4th quarter 2017 and 1st quarter 2018, in violation of Part 70 permit 173-38380-00007 condition D.6.18(j).


c.              Pursuant to 40 CFR 63.843(d), each pitch storage tank shall be equipped with an emission control system and designed and operated to reduce inlet emissions of Polycyclic Organic Matter (“POM”) by 95 percent or greater.

Respondent failed to operate the emission control system for the pitch storage tank for 12 days in December 2017 and 2 days in January 2018, in violation of 40 CFR 63.843(d).


d.             Pursuant to 40 CFR 63.1510(b), the owner or operator must prepare and implement for each new or existing affected source and emission unit, a written operation, maintenance and monitoring (“OM&M”) plan.

Respondent failed to operate according to its written OM&M plan on five (5) occasions over three (3) days when it exceeded the allowed amount of salt flux per ton of coated scrap charged to the rotary furnace, in violation of 40 CFR 63.1510(b).


e.             Pursuant to Part 70 permit 173-38380-00007, issued August 7, 2017, condition D.6.13, in order to comply with Condition D.6.4, at least 2 baghouses controlling particulate matter (“PM”) and particulate matter 10 micrometers or less in diameter (“PM10”) shall be in operation at all times with the dross and rotary group 1 furnace salt cake cooling is in operation.

Respondent cooled salt cake for 122 minutes on June 5-6, 2018, with only one baghouse in operation, in violation of Part 70 permit 173-38380-00007 condition D.6.13.


f.               Part 70 permit 173-36859-00007, issued March 14, 2016, condition D.8.3 and all subsequent permits with the same condition, the Permittee shall measure the wastewater flow from the electro coat line continuously and record the flow totalizing meter each week.  The permittee shall procure Volatile Organic Compounds (“VOC”) samples of the wastewater each week and analyze for VOC content in the wastewater.

Respondent failed to collect 18 weekly wastewater samples from the electro coat line from March 2017 through May 2018, in violation of 70 permit 173-36859-00007 condition D.8.3 and all subsequent permits with the same condition.


6.             Respondent conducted the tune-up of #17 Annealing Furnace on June 9, 2017.

7.             Respondent repaired the BLDS February 20, 2018, the day it was discovered.

8.             Respondent reconnected the pitch tank control system on January 2, 2018.  Respondent added an alarm to indicate if there is low flow.

9.             Respondent modified its OM&M plan to account for the variation in salt flux usage.

10.          Respondent took actions to minimize potential fugitive emissions upon the discovery of only one baghouse in operation.  A second baghouse was returned to operation.

11.          Respondent modified procedures and conducted training to prevent future missed sampling events.

12.          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.




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 Permit 173-42130-00007, unless superseded by a permit modification or renewal.


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


Matthew Chaifetz, Senior Enforcement Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251


4.             Respondent is assessed and agrees to pay a civil penalty of Twenty-One Thousand Dollars ($21,000.00).  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”.


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:


Indiana Department of Environmental Management

Accounts Receivable

IGCN, Room 1340

100 North Senate Avenue

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 Respondent has complied with all terms and conditions of this Agreed Order and IDEM has issued a Resolution of Case letter to Respondent.






Department of Environmental Management


Alcoa Warrick LLC










David P. McIver, Chief





Enforcement Section





Office of Air Quality




















For the Department of Environmental Management




































, 2020.



For the Commissioner:




Signed on November 20, 2020


Matthew Stuckey Deputy Assistant




Office of Air Quality