STATE OF INDIANA

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SS:

BEFORE THE INDIANA DEPARTMENT OF

 

)

 

 

COUNTY OF MARION

)

 

ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

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OF ENVIRONMENTAL MANAGEMENT,

 

)

 

 

 

)

 

Complainant,

 

)

 

 

 

)

 

 

v.

 

)

Case No. 2022-28887-H

 

 

)

 

PRECOAT METALS CORP.,

 

)

 

 

 

)

 

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 Precoat Metals Corp. (“Respondent”), which operates the facility with United States Environmental Protection Agency (“EPA”) ID No. IND990873606, located at 858 E. Hupp Rd., in LaPorte, LaPorte 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 Mail to:

 

Precoat Metals Corp.

C T Corporation System

Attn: Kurt Russell, President

334 North Senate Ave.

635 Maryville Center Dr., Suite 300

Indianapolis, IN, 46204, USA

Saint Louis, MO, 63141, USA

 

 

 

 

5.               Respondent notified EPA of Large Quantity Generator activities.

 

6.               The facility supplies steel and aluminum coil coating services for the automobile, construction, and appliance industries.

 

7.               329 Indiana Administrative Code (“IAC”) 3.1 incorporates federal hazardous waste management requirements found in 40 Code of Federal Regulations (“CFR”) Parts 260 through 270 and Part 273, including those identified below.

 

8.               During an investigation including an inspection on August 2, 2022, conducted by a representative of IDEM, the following violations were found:

 

a.     Pursuant to 40 Code of Federal Regulations (“CFR”) 262.17, a large quantity generator may accumulate hazardous waste on site without a permit or interim status, and without complying with the requirements of parts 124, 264 through 267, and 270 of this chapter, or the notification requirements of section 3010 of RCRA, provided that all the conditions of 262.17 are met.

 

Pursuant to Indiana Code (“IC”) 13-30-2-1(10), a person may not engage in the operation of a hazardous waste facility without having first obtained a permit from the department.

 

Pursuant to 40 CFR 270.1(c), RCRA requires a permit for the treatment, storage, or disposal of any hazardous waste as identified or listed in 40 CFR part 261.

 

At the time of the inspection, IDEM staff observed a steel 55-gallon drum of spent aerosol cans marked as a hazardous waste with an accumulation start date of 12/17/19 located in the northwest corner of the 90-day storage area underneath the racking.

 

b.     Pursuant to 40 CFR 262.17(a)(1)(ii), if a container holding hazardous waste is not in good condition, or if it begins to leak, the large quantity generator must immediately transfer the hazardous waste from this container to a container that is in good condition, or immediately manage the waste in some other way that complies with the conditions for exemption of this section.

 

At the time of the inspection, IDEM staff identified one (1) drum of hazardous waste paint located on the west side of the 90-day storage area dated 7/27/22 that was dented on the bottom and therefore not in good condition, The drum was located on the inside of the row, 3rd row in from the large door to the north, in the middle of the row.

 

c.     Pursuant to 40 CFR 262.17(a)(1)(iv)(A), a container holding hazardous waste must always be closed during storage, except when it is necessary to add or remove waste.

 

At the time of the inspection, IDEM staff identified one (1) 55-gallon drum of spent aerosol cans in the 90-day temporary storage area that was not properly closed; the latch was left open in the upright position. Facility staff corrected the violation during the inspection.

 

d.     Pursuant to 40 CFR 262.17(a)(5)(i)(B), a large quantity generator must mark or label its containers with an indication of the hazards of the contents (examples include, but are not limited to, the applicable hazardous waste characteristic(s) (i.e., ignitable, corrosive, reactive, toxic); hazard communication consistent with the Department of Transportation requirements at 49 CFR part 172 subpart E (labeling) or subpart F (placarding); a hazard statement or pictogram consistent with the Occupational Safety and Health Administration Hazard Communication Standard at 29 CFR 1910.1200; or a chemical hazard label consistent with the National Fire Protection Association code 704).

 

At the time of the inspection, IDEM staff identified six (6) drums of waste paint on the east side of the 90-day storage area that did not have a label with the indication of the hazards of the contents. Facility staff corrected the violation during the inspection.

 

IDEM staff identified one (1) 330-gallon tote of chrome liquid on the south side of the 90-day storage area that did not have a label with the indication of the hazards of the contents.

 

IDEM staff identified one (1) 55-gallon drum of spent aerosol cans date 12/17/19 in the 90-day storage area that did not have a label with the indication of the hazards of the contents.

 

IDEM staff identified one (1) 55-gallon drum of spent aerosol cans in the 90-day temporary storage area that did not have a label with the indication of the hazards of the contents.

 

e.     Pursuant to 40 CFR 262.17(a)(6) referencing 40 CFR 262.252, all areas where hazardous waste is generated or accumulated must be equipped with the items in paragraphs (a) through (d) of this section (unless none of the hazards posed by waste handled at the facility could require a particular kind of equipment specified below or the actual hazardous waste generation or accumulation area does not lend itself for safety reasons to have a particular kind of equipment specified below). A large quantity generator may determine the most appropriate locations within its facility to locate equipment necessary to prepare and respond to emergencies:

(a)  An internal communications or alarm system capable of providing immediate emergency instruction (voice or signal) to facility personnel;

(b)  A device, such as a telephone (immediately available at the scene of operations) or a hand-held two-way radio, capable of summoning emergency assistance from local police departments, fire departments, or state or local emergency response teams;

(c)   Portable fire extinguishers, fire control equipment (including special extinguishing equipment, such as that using foam, inert gas, or dry chemicals), spill control equipment, and decontamination equipment; and

(d)  Water at adequate volume and pressure to supply water hose streams, or foam producing equipment, or automatic sprinklers, or water spray systems.

 

The building that housed the 90-day storage area for hazardous waste did not contain any fire control equipment at the time of inspection. The facility considered this building a sacrificial building, and if a fire were to break out in this building, Respondent would have no way to control it.

 

On December 21, 2022, IDEM received written documentation stating the 90-day storage area is equipped with four portable fire extinguishers that meet OHSA and NFPA requirements and a phone is located inside the building to alert facility personnel and contact the local police, fire, and state or local emergency response teams.

 

f.       Pursuant to 40 CFR 262.17(a)(1)(vi)(B), the large quantity generator must take precautions to prevent accidental ignition or reaction of ignitable or reactive waste. This waste must be separated and protected from sources of ignition or reaction including but not limited to the following: Open flames, smoking, cutting and welding, hot surfaces, frictional heat, sparks (static, electrical, or mechanical), spontaneous ignition (e.g., from heat-producing chemical reactions), and radiant heat. While ignitable or reactive waste is being handled, the large quantity generator must confine smoking and open flame to specially designated locations. “No Smoking” signs must be conspicuously placed wherever there is a hazard from ignitable or reactive waste.

 

At the time of the inspection, it was noted that none of the drums containing flammable hazardous waste were grounded.

 

On December 21, 2022, IDEM received a written response from Respondent informing IDEM that when facility personnel periodically consolidate partial paint drums in the building that houses the less than 90-day storage area, pneumatic air pumps and hoses are used, which are intrinsically safe. Additionally, Respondent informed IDEM that Danger Signs are posted outside of the building near all entrances with the words “No Smoking or Open Flames within 40 Feet.”

 

g.     Pursuant to 40 CFR 262.17(a)(6) referencing 40 CFR 262.255, the large quantity generator must maintain aisle space to allow the unobstructed movement of personnel, fire protection equipment, spill control equipment, and decontamination equipment to any area of the facility operation in an emergency, unless aisle space is not needed for these purposes.

 

At the time of the inspection, IDEM staff identified a block of 55-gallon drums containing hazardous waste paint that was four (4) rows wide. These drums were located on the east wall of the 90-day storage area, next to the large overhead door and blocking an exit door. There was not adequate aisle space maintained in this area to provide unobstructed movement or to conduct a proper inspection of the middle rows.

 

h.     Pursuant to 40 CFR 262.15(a)(4), a container holding hazardous waste must be closed at all times during accumulation, except: when adding, removing, or consolidating waste; or when temporary venting of a container is necessary for the proper operation of equipment, or to prevent dangerous situations, such as build-up of extreme pressure.

 

At the time of the inspection, IDEM staff identified one (1) 55-gallon satellite container of solvent solids at the front end of the coater in the prime coating area on the bottom head that was open. In the finish coating area on the top head, IDEM staff identified one (1) 55-gallon drum of spent solvent at the back of the coater that was open.

 

i.       Pursuant to 40 CFR 262.15(a)(5)(i), a generator must mark or label its satellite hazardous waste containers with the words “Hazardous Waste.”

 

At the time of the inspection, one (1) 55-gallon satellite container of hazardous waste solvent paint was found in the prime coating area on the bottom head, in the middle of the coater not labeled with the words "Hazardous Waste."

 

j.       Pursuant to 40 CFR 262.15(a)(5)(ii), a generator must mark or label its satellite hazardous waste containers with an indication of the hazards of the contents (examples include, but are not limited to, the applicable hazardous waste characteristic(s) (i.e., ignitable, corrosive, reactive, toxic); hazard communication consistent with the Department of Transportation requirements at 49 CFR part 172 subpart E (labeling) or subpart F (placarding); a hazard statement or pictogram consistent with the Occupational Safety and Health Administration Hazard Communication Standard at 29 CFR 1910.1200; or a chemical hazard label consistent with the National Fire Protection Association code 704).

 

At the time of the inspection, IDEM staff identified one (1) 55-gallon satellite container of waste paint in the finish coating area on the top head, in the middle of the coater, that did not have a label on it indicating the hazards of its contents. Facility staff corrected the violation during the inspection.

 

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 the statute and rules listed in the findings of fact above.

 

3.               Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17, IC 13-30-2-1(10), and 40 CFR 270.1(c). Specifically, Respondent shall ensure hazardous waste is not stored on-site for more than 90 days and if storing hazardous waste on-site more than 90 days, Respondent shall apply for a treatment, storage, and disposal permit.

 

4.               Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(1)(ii). Specifically, Respondent shall ensure that all hazardous waste containers are in good condition, or if a container becomes damaged, immediately transfer the contents to a container in good condition.

 

5.               Upon the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(1)(iv)(A). Specifically, Respondent shall ensure containers holding hazardous waste are always stored closed during storage, except when it is necessary to add or remove waste.

 

6.               Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(5)(i)(B), 40 CFR 262.17(a)(5)(ii)(B), and 40 CFR 262.15(a)(5)(ii). Specifically, Respondent shall ensure accumulated hazardous waste containers and tanks on-site are marked or labeled with an indication of the hazards of the contents.

 

7.               Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(6) referencing 40 CFR 262.252. Specifically, Respondent shall be equipped with a firehose on site to be used in the event of a fire.

 

8.               Upon the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(1)(vi)(B). Specifically, Respondent shall ensure during paint consolidation process partial paint drums are properly grounded when actively adding or removing paint from drums.

 

9.               Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(6) referencing 40 CFR 262.255. Specifically, Respondent shall provide adequate aisle space in the ignitable waste storage area.

 

10.           Upon the Effective Date, Respondent shall comply with 40 CFR 262.15(a)(4). Specifically, ensure satellite container holding hazardous waste are closed at all times during accumulation, except when adding, removing, or consolidating waste.

 

11.           Within thirty (30) days of the Effective Date, Respondent shall comply with 40 CFR 262.17(a)(5)(i)(A), 40 CFR 262.17(a)(5)(ii)(A), and 40 CFR 262.15(a)(5)(i). Specifically, Respondent shall ensure all hazardous waste containers and tanks on-site are marked or labeled with the words “Hazardous Waste.”

 

12.           Effective immediately, Respondent shall comply with 40 CFR 262.253. Specifically, Respondent shall ensure that all fire extinguishers on site are maintained and inspected regularly.

 

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

 

Elizabeth Phillips, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

14.           Pursuant to IC 13-30-4-1, Respondent is assessed and agrees to pay a civil penalty of Twenty-Eight Thousand Dollars ($28,000). Respondent shall pay by the due date printed on the Invoice, as attached.

 

15.           Civil and stipulated penalties are payable to the “Environmental Management Special Fund” by:

 

Mail:

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

 

Online:

Accounts Receivable is accepting payments online by e-Check, Master Card, Visa or Discover. Please visit www.IN.gov/IDEM. Under Online Services, click Online Payment options and follow the prompts. A processing fee of $1 plus 1.99% will be charged for credit card payments.  A processing fee of $1.00 will be charged for eCheck payments.

The Case Number is required to complete the process.

 

Phone:

You may also call us at 317-234-3099 and follow the instructions for Master Card, Visa or Discover payments. A processing fee of $1 plus 1.99% will be charged for credit card payments.  A processing fee of $1.00 will be charged for eCheck payments.

The Case Number is required to complete the process.

 

16.           In the event the terms and conditions of the following paragraphs are violated, Complainant may assess and Respondent shall pay stipulated penalties in the following amounts:

 

Paragraph

Stipulated Penalty

3

$100 per week

4

$100 per week

5

$100 per week

6

$100 per week

7

$100 per week

8

$100 per week

9

$100 per week

10

$100 per week

 

17.           Stipulated penalties shall be due and payable no later than the thirtieth day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the thirtieth day being the “Due Date.” Complainant may notify Respondent at any time that a stipulated penalty is due. Failure to notify Respondent in writing in a timely manner of a stipulated penalty assessment shall not waive Complainant’s right to collect such stipulated penalty or preclude Complainant from seeking additional relief against Respondent for violation of this Agreed Order. Neither assessment nor payment of stipulated penalties shall preclude Complainant from seeking additional relief against Respondent for a violation of this Agreed Order; such additional relief includes any remedies or sanctions available pursuant to Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

 

18.           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 an additional penalty of 10 percent, payable to the “Hazardous Substance Response Trust Fund” and shall be payable to IDEM in the manner specified in Paragraph 15, above.

 

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

 

20.           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.

 

21.           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.

 

22.           Respondent shall ensure that all contractors, firms, and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

 

23.           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.

 

24.           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.

 

25.           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.

 

26.           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 violation specified in the NOV.

 

27.           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.

 

28.           This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.

 

 

REMAINDER OF PAGE LEFT BLANK INTENTIONALLY


 

 

TECHNICAL RECOMMENDATION:

Department of Environmental Management

RESPONDENT:

 

 

 

 

By:

 

 

By:

 

 

Jennifer Reno, Chief

Printed:

 

 

Land Enforcement Section

Title:

 

 

Compliance Branch

 

 

 

Office of Land Quality

 

 

Date:

 

3/30/2023

 

Date:

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

By:

 

 

 

Printed:

 

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 20_____

 

 

 

 

 

 

For the Commissioner:

 

 

 

Signed May 3, 2023

 

 

 

 

 

 

 

 

Peggy Dorsey

 

 

Assistant Commissioner

 

 

Office of Land Quality