STATE OF INDIANA		)	SS:	BEFORE THE INDIANA DEPARTMENT OF
		)
COUNTY OF MARION		)		ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
Complainant,					)
					)
	v.				) )	Case Nos. 2022-28492-A, 2022-28846-A, & 3033-28999-A
					)
SOUTH BEND ETHANOL, LLC,					)
					)
Respondent.					)

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 South Bend Ethanol, LLC (“Respondent”), which owns and operates the stationary fuel-grade ethanol production plant with Plant ID No. 141-00033, located at 3201 W. Calvert Street, in South Bend, St. Joseph 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 and Electronic Mail to:

Mercuria Energy America Inc.	Corporation Service Company,
Attn: Manager 20 East Greenway Plaza Suite 650 Houston, TX 77046	Registered Agent 135 North Pennsylvania Street, Suite 1610 Indianapolis, IN 46204 sop@cscglobal.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 January 5, 2022, case number 2022-28492-A contains the following violations:

a. Pursuant to Part 70 Permit 141-43546-00033 (“Permit”) condition D.3.3(b), the CO2 scrubber (V-230) shall achieve an overall VOC control efficiency equal to or greater than ninety-five percent (95%), including the existing exhaust stream from the fermentation operation (EU-05).

Pursuant to Permit condition D.3.6(a), in order to assure compliance with Conditions D.3.1, D.3.2, D.3.3, and D.3.4, the scrubber for VOC and HAP control shall be in operation and control emissions from the yeast propagator tanks (EU-04), the fermentation operation (EU-05), and the beerwell (EU-07), at all times that these emission units are in operation.

On September 9, 2021, Respondent continued to operate Fermenter #5 while the scrubber was not in operation, in violation of Permit conditions D.3.3(b) and D.3.6(a).

Based on the Enforcement Action Letters issued to Respondent on August 19, 2022, case number 2022-28846-A contains the following violations:

b. Pursuant to Permit condition D.3.6(a), in order to assure compliance with Conditions D.3.1, D.3.2, D.3.3, and D.3.4, the scrubber for VOC and HAP control shall be in operation and control emissions from the yeast propagator tanks (EU-04), the fermentation operation (EU-05), and the beerwell (EU-07), at all times that these emission units are in operation.

On April 21, 2022 and May 26, 2022, Respondent continued to operate Fermenter #3 while not being controlled by the scrubber, in violation of Permit condition D.3.6(a).

c. Pursuant to Permit condition D.2.4, in order to assure compliance with condition D.2.1, the baghouses (D-0001 and D-0112) for particulate control shall be in operation and control emissions from the corn receiving, handling and milling operations (EU-01, EU-02 and EU-03) at all times these facilities are in operation.

On January 3, 2022, baghouse D-0112 failed to control emissions from the corn milling operation, in violation of Permit condition D.2.4.

Based on the Enforcement Action Letter issued to Respondent on October 17, 2022, case number 2022-28999-A contains the following violations:

d. Pursuant to Permit condition D.3.8, the Permittee shall monitor and record the pressure drop across the scrubber (V-230) used in conjunction with the yeast propagation Operation (EU-04), the fermentation process (EU-05), and the beerwell (EU-07) at least once per day when these operations and processes are in operation.

On multiple occasions in 2021 and 2022, Respondent failed to monitor and record the pressure drop across the scrubber (V-230), in violation of Permit condition D.3.8.

e. Pursuant to Permit condition D.4.11(b), the duct pressure or fan amperage shall be observed at least once per day when the thermal oxidizers are in operation. On and after the date the approved stack test results are available, the duct pressure or fan amperage shall be maintained within the normal range as established in the most recent stack test.

On multiple occasions in 2022, Respondent failed to maintain the duct pressure within the normal range as established in the most recent stack test, in violation of Permit condition D.4.11(b).

f. Pursuant to Permit condition D.4.10(c), on and after the date the approved stack test results are available, the Permittee shall operate the thermal oxidizers at or above the 3-hour average temperature as observed during the most recent compliant stack test.

On multiple occasions in fourth quarter 2020, 2021 and the first half of 2022, Respondent operated the thermal oxidizer below the 3-hour average temperature as observed during the most recent compliant stack test, in violation of Permit condition D.4.10(c).

g. Pursuant to Permit condition D.2.6, visible emission notations of the corn receiving, handling and milling facilities (EU-01, EU-02 and EU-03) Stack DC-0001, DC-0112, and BV-0112 exhausts shall be performed once per day during normal daylight operations.

On multiple occasions in April, May and June 2022, Respondent failed to perform and record visible emission notations, in violation of Permit condition D.2.6.

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 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 the rules and permit conditions listed in the findings of fact above.

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

Matthew Chaifetz, Senior Enforcement Case Manager

Office of Air Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

mchaifet@idem.IN.gov

4. Pursuant to IC 13-30-4-1, Respondent is assessed and agrees to pay a civil penalty of Seventy-Eight Thousand One Hundred Dollars ($78,100.00). 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			South Bend Ethanol, LLC
By:			By:
	David P. McIver, Chief		Printed:
	Enforcement Section		Title:
	Office of Air Quality
			Date:
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF		, 2024.
			For the Commissioner:
			Signed on February 22, 2024
			Matthew Stuckey, Assistant Commissioner
			Office of Air Quality Indiana Department of Environmental Management