STATE OF INDIANA

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SS:

BEFORE THE INDIANA DEPARTMENT OF

 

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COUNTY OF MARION

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ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

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OF ENVIRONMENTAL MANAGEMENT,

 

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Complainant,

 

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v.

 

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)

Case Nos. 2020-27386-A & 2022-28407-A

 

 

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SOUTHERN INDIANA GAS AND ELECTRIC COMPANY,

 

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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 Southern Indiana Gas and Electric Company – A. B. Brown Generating Station (“Respondent”), which owns and operate the stationary electric utility generating station with Plant ID No. 129-00010, located at 8511 Welborn Road, in Mount Vernon, Posey 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 electronic mail to:

 

Wayne Games, Vice-President

CT Corporation System

Power Generation Operations

Registered Agent

Southern Indiana Gas and Electric Company

334 N. Senate Ave

211 N.W. Riverside Dr.

Indianapolis, IN 46204

Evansville, IN 47708

wkuslawdept@wolterskluwer.com

Wayne.Games@centerpointenergy.com

 

 

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

 

Based on the Enforcement Action Letter issued to Respondent on September 8, 2020, case number 2020-27386-A contains the following violations:

 

a.       Pursuant to Part 70 Permit 129-38980-00010, Conditions D.1.2(b)(2) and D.2.3(a)(2), when both Unit No. 1 and Unit No. 2 are in operation, both units shall not exceed the combined SO2 emissions limitation of 1,831.6 pounds per hour (“lbs/hr”), twenty-four (24) hour rolling average.

 

On three occasions in November and December 2019, when both Unit No. 1 and Unit No. 2 were in operation, both units exceeded the combined SO2 emissions limitation of 1,831.6 lbs/hr, twenty-four (24) hour rolling average, in violation of Part 70 Permit 129-38980-00010, Conditions D.1.2(b)(2) and D.2.3(a)(2).

 

b.       Pursuant to Part 70 Permit 129-38980-00010, Condition D.2.1(a) and corresponding conditions in subsequent permits, the particulate matter emission rate from Unit 2 shall not exceed 0.03 pounds per million Btu (“lbs/MMBtu”) of energy input.

 

On six occasions in October and November 2019 and January and February 2020, the particulate matter emission rate from Unit 2 exceeded 0.03 lbs/MMBtu of energy input, in violation of Part 70 Permit 129-38980-00010, Condition D.2.1(a) and corresponding conditions in subsequent permits.

 

c.        Pursuant to Part 70 Permit 129-38980-00010, Condition D.2.3(b)(2), when Unit No. 2 is operating alone, the unit shall not exceed the SO2 emissions limitation of 1,485.59 lbs/hr, twenty-four (24) hour rolling average.

 

On October 4, 2019, when Unit No. 2 was operating alone, the unit exceeded the SO2 emissions limitation of 1,485.59 lbs/hr, twenty-four (24) hour rolling average, in violation of Part 70 Permit 129-38980-00010, Condition D.2.3(b)(2).

 

d.       Pursuant to Part 70 Permit 129-38980-00010, Condition E.1.2(4), and 40 CFR § 60.43(a)(2), Unit 1 shall not exceed the SO2 emissions limitation of 1.2 lbs/MMBtu of energy input.

On four occasions in May, November and December 2019, Unit 1 exceeded the SO2 emissions limitation of 1.2 lbs/MMBtu of energy input, in violation of Part 70 Permit 129-38980-00010, Condition E.1.2(4), and 40 CFR § 60.43(a)(2).

 

e.       Pursuant to Part 70 Permit 129-38980-00010, Condition E.3.2(5), corresponding conditions in subsequent permits, and 40 CFR § 60.334(j), Respondent shall maintain the acceptable water to fuel ratio to control NOx emissions at Unit ABB No. 3.

 

On sixteen occasions in the fourth quarter of 2019, and the first, second and third quarters of 2020, Respondent failed to maintain the acceptable water to fuel ratio to control NOx emissions at Unit ABB No. 3, in violation of Part 70 Permit 129-38980-00010, Condition E.3.2(5), corresponding conditions in subsequent permits, and 40 CFR § 60.334(j).

 

f.        Pursuant to Part 70 Permit 129-40544-00010, Condition D.4.2, during normal simple cycle operation of Unit ABB No. 4, NOx emissions shall be less than 9.0 parts per million by volume, dry basis (“ppmvd”) corrected to fifteen (15) percent oxygen, based on a twenty-four (24) operating hour averaging period.

 

On February 20, 2020, during normal simple cycle operation of Unit ABB No. 4, NOx emissions exceeded 9.0 ppmvd corrected to fifteen (15) percent oxygen, based on a twenty-four (24) operating hour averaging period, in violation of Part 70 Permit 129-40544-00010, Condition D.4.2.

 

Based on the Enforcement Action Letter issued to Respondent on January 5, 2022, case number 2022-28407-A contains the following violations:

 

g.       Pursuant to Part 70 Permit 129-40544-00010, Conditions D.1.2(b)(2) and D.2.3(a)(2), when both Unit No. 1 and Unit No. 2 are in operation, both units shall not exceed the combined SO2 emissions limitation of 1,831.6 lbs/hr, twenty-four (24) hour rolling average.

 

On November 11, 2021, when both Unit No. 1 and Unit No. 2 were in operation, both units exceeded the combined SO2 emissions limitation of 1,831.6 lbs/hr, twenty-four (24) hour rolling average, in violation of Part 70 Permit 129-40544-00010, Conditions D.1.2(b)(2) and D.2.3(a)(2).

 

h.       Pursuant to Part 70 Permit 129-40544-00010, Condition D.2.1(a), the particulate matter emission rate from Unit 2 shall not exceed 0.03 lbs/MMBtu of energy input.

 

On June 22, 2021, the particulate matter emission rate from Unit 2 exceeded 0.03 lbs/MMBtu of energy input, in violation of Part 70 Permit 129-40544-00010, Condition D.2.1(a).

 

6.             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 acknowledge 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 the Permit 129-40544-00010 unless superseded by a renewal or revision.

 

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

 

Andrew Taylor, Enforcement Case Manager

Office of Air Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

AKTaylor@idem.IN.gov

 

4.             Pursuant to IC 13-30-4-1, Respondent is assessed and agrees to pay a civil penalty of Ninety-Nine Thousand Dollars ($99,000.00).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the thirtieth 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.             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.

 

7.             Signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.

 

8.             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.

 

9.             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.

 

10.          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.          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.

 

12.          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.

 

13.          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.

 

14.          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.

 

15.          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.

 

16.          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.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Southern Indiana Gas and Electric Company

 

 

 

By:

 

 

By:

 

 

David P. McIver, Chief

 

Printed:

 

 

Enforcement Section

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

For the Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2022.

 

 

For the Commissioner:

 

 

 

Signed on June 22 , 2022

 

Matthew Stuckey

 

Assistant Commissioner

 

Office of Air Quality

Indiana Department of Environmental Management