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STATE OF
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BEFORE THE
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COUNTY OF
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ENVIRONMENTAL
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COMMISSIONER
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OF
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Complainant, |
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VALERO
RENEWABLE FUELS COMPANY LLC, DBA
VALERO BLUFFTON PLANT |
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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.
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 April 21, 2025, via Electronic and Certified Mail to:
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Valero Renewable Fuels Co, LLC |
CT Corporation System, |
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Attn: Donna Taylor, Managing Counsel |
Registered Agent 334 North Senate Avenue |
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One Valero Way |
Indianapolis, IN 46204 |
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San Antonio, TX 78249-1616 Donna.Taylor@valero.com |
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5.
During
an investigation including a record review and inspection conducted on September
5, 2024 by a representative of IDEM, the following
violations were found:
a.
Pursuant
to Part 70 Permit 179-41632-00033 (“Permit”) Condition D.2.5, in order to comply
with Conditions D.2.1, D.2.2, and D.2.3, wet scrubber (C40) shall be in
operation and control emissions from the fermentation process at all times the
fermentation process is in operation.
On April 25, 2023, May 4, 2023 and May 19, 2023, Respondent failed to control
all emissions with wet scrubber (C40), in violation of Permit Condition D.2.5.
b.
Pursuant
to Permit Condition D.3.7, in order to comply with Conditions D.3.1, D.3.2 and
D.3.3, at least one of the two (2) thermal oxidizers (C9203 and C9303) shall be
in operation and control emissions from the DDGS dryers (EU029 through EU032)
and the distillation process at all times of operation.
On six (6) occasions between January 11, 2022 and June 20, 2024, Respondent
failed to control emissions from the DDGS dryers (EU029 through EU032) using at
least one of the two (2) thermal oxidizers (C9203 and C9303), in violation of
Permit Condition D.3.7.
c.
Pursuant
to Permit Condition D.3.12, 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 latest compliant
stack test.
On February 1, 2024, failed to maintain the 3-hour average temperature for the
thermal oxidizers, in violation of Permit Condition D.3.12.
d.
Pursuant
to Permit Conditions D.5.7 and D.5.8, the Permittee shall maintain records of
temperature of other parameters sufficient to demonstrate the presence of a
pilot flame when the loading rack (EU037) is in operation.
During four (4) time periods between April 18, 2022 and November 30, 2022,
Respondent failed to maintain records of pilot flame presence during ethanol
loading, in violation of Permit Conditions D.5.7 and D.5.8.
e.
Pursuant
to Permit Condition E.2.2(4) and 40 CFR 60.113b(a)(4), Respondent shall visibly
inspect the internal floating roof, the primary seal, the secondary seal (if
one is in service), gaskets, slotted membranes and sleeve seals (if any) each
time the storage vessel is emptied and degassed. If the internal floating roof
has defects, the primary seal has holes, tears, or other openings in the seal
or the seal fabric, or the secondary seal has holes, tears, or other openings
in the seal or the seal fabric, or the gaskets no longer close off the liquid
surfaces from the atmosphere, or the slotted membrane has more than 10 percent
open area, the owner or operator shall repair the items as necessary so that
none of the conditions specified in this paragraph exist before refilling the
storage vessel with VOL. In no event shall inspections conducted in accordance
with this provision occur at intervals greater than 10 years in the case of
vessels conducting the annual visual inspection as specified in paragraphs
(a)(2) and (a)(3)(ii) of this section and at intervals no greater than 5 years
in the case of vessels specified in paragraph (a)(3)(i) of this section.
Respondent failed to conduct tank inspections for tanks T65 and T64 within ten
(10) years of the last inspection, in violation of Permit Condition E.2.2(4)
and 40 CFR 60.113b(a)(4).
6.
Respondent
replaced all fermentation rubber boot connectors on September 9, 2023.
7.
Four
(4) of the six (6) occasions between January 11, 2022
and June 20, 2024 were attributed to plantwide power
outages.
8.
Respondent
replaced paper chart system for recording the pilot
flame with an electronic system not subject to mechanical failure.
9.
The
inspections for tanks T65 and T64 were conducted fifteen (15) days late and no
issues were observed.
10.
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 Permit
179-47787-00033 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:
Matthew
Chaifetz, Senior Enforcement Case Manager
Office of Air Quality
Indiana
Department of Environmental Management
Indiana Government Center North
100 North
Senate Avenue, Room 13W
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 Twenty Thousand Four Hundred Seventy-Five
Dollars ($20,475.00). 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
Indiana
Government Center North
100 North
Senate Avenue, Room 13E
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.
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TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
of Environmental Management |
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Valero Renewable Fuels
Company LLC dba Valero Bluffton Plant |
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By: |
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By: |
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David
P. McIver, Chief |
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Printed: |
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Enforcement
Section |
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Title: |
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Office
of Air Quality |
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Date: |
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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DAY OF |
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2025. |
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For
the Commissioner: |
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Signed
on May 29, 2025 |
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Matthew Stuckey, Assistant
Commissioner |
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Office
of Air Quality Indiana
Department of Environmental Management |
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