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. 2022-28850-A

 

 

)

                  2022-29060-A

CENTRAL INDIANA 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 Central Indiana Ethanol, LLC (“Respondent”), which owns and operates a stationary ethanol production plant with Plant ID No. 053-00062, located at 2955 W. Delphi Pike, in Marion, Grant 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”) in conjunction with this Agreed Order via Certified and Electronic Mail to:

 

Ryan Drook, CEO                           Cogency Global Inc.,

Central Indiana Ethanol, LLC        Registered Agent

2955 W. Delphi Pike                       Central Indiana Ethanol, LLC

Marion, Indiana 46953                   150 W. Market St., Suite 400

Rdrook@cie.us                               Indianapolis, IN 46204

 

5.              During an investigation including an inspection on August 10, 2022, and a report review concerning compliance testing conducted on July 14, 2022 by a representative of IDEM, the following violations were found:

 

Based on the Enforcement Action Letter issued to Respondent on August 22, 2022, case number 2022-28850-A contains the following violations:

 

a.              Pursuant to Part 70 Operating Permit No. 053-44262-00062 (“Permit 44262”), condition D.2.1(a), in order to render the requirements of 326 IAC 2-2 (Prevention of Significant Deterioration (PSD)) and 326 IAC 2-4.1 (MACT) not applicable, the Permittee shall comply with the following: (a) Emissions from wet scrubber CE011, which is used to control the emissions from the fermentation process, shall not exceed the following: (i) volatile organic compounds (VOC) emissions shall not exceed 10.12 pounds per hour (lb/hr).

 

Pursuant to Permit 44262 conditions D.2.3(a) and D.2.3(c), in order to comply with 326 IAC 8-1-6 (New Facilities; General Reduction Requirements), when using a feedstock other than whole kernel corn or a combination with whole kernel corn to produce a meal that is used in the production of fuel grade ethanol, the Permittee shall comply with the following: (a) The VOC emissions from the fermentation operation (EU016 through EU020 and EU013) shall be controlled by wet scrubber CE011; (c) The VOC emissions from the fermentation operation (EU016 through EU020 and EU013) shall not exceed 10.12 lb/hr for CE011.

 

During power interruptions on March 10 and 18, 2022, Respondent failed to operate wet scrubber CE011 while the fermentation process was in operation, in violation of Permit 44262 conditions D.2.1(a), D.2.3(a), and D.2.3(c).

 

b.              Pursuant to Part 70 Operating Permit No. 053-40577-00062 (“Permit 40577”) condition D.8.7, a quarterly summary of the information to document the compliance status with Conditions D.8.1(a) and D.8.2(a) shall be submitted not later than thirty (30) days after the end of the quarter being reported.

 

Respondent failed to submit the quarterly natural gas usage summary from November 21, 2018 to August 11, 2022, in violation of Permit 40577 condition D.8.7.

 

Based on the Enforcement Action Letter issued to Respondent on November 22, 2022, case number 2022-29060-A contains the following violation:

 

c.              Pursuant to Permit 44262 condition D.3.1(h), in order to render the requirements of 326 IAC 2-2 (Prevention of Significant Deterioration (“PSD”)) and 326 IAC 2-4.1 (MACT) not applicable, the Permittee shall comply with the following emission limits for the thermal oxidizer with heat recovery steam generator (“TO/HRSG”) System CE007, which is used to control the DDGS dryers (EU035 and EU056) and the distillation process, Acetaldehyde emissions shall not exceed 0.18 pounds per hour (“lb/hr”).

 

During compliance testing which occurred on July 14, 2022, Respondent demonstrated acetaldehyde emissions of 0.306 lb/hr, in violation of Permit 44262 condition D.3.1(h).

 

6.              On March 21, 2022, Respondent contacted a roofing company which came out to clean the roof and make the necessary repairs.

 

7.              On August 11, 2022, Respondent submitted the quarterly natural gas usage summaries.

 

8.              On December 14, 2022, Respondent was issued Part 70 Significant Permit Modification (“SPM”) No. 053-45794-00062 which increased the acetaldehyde emission limit from 0.18 lb/hr to 0.40 lb/hr.

 

9.              Orders of the Commissioner are subject to administrative review by the Office of Administrative Law Proceedings 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 SPM 053-45794-00062 unless superseded by a permit 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.              Pursuant to IC 13-30-4-1, Respondent is assessed and agrees to pay a civil penalty of Seventeen Thousand Two Hundred Dollars ($17,200.00).  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

 

Central Indiana 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

 

, 2025.

 

 

For the Commissioner:

 

 

 

Signed on January 14, 2025

 

Matthew Stuckey, Assistant Commissioner

 

Office of Air Quality

Indiana Department of Environmental Management