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 No. 2024-30441-A

 

 

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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.

 

2.              Respondent is Valero Renewable Fuels Company LLC dba Valero Bluffton Plant (“Respondent”), which owns and operates the stationary grain elevator and ethanol production plant with Plant ID No. 179-00033, located at 1441 South Adams Street, in Bluffton, Wells 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”) on April 21, 2025, via Electronic and Certified Mail to:

 

 

Valero Renewable Fuels Co, LLC

CT Corporation System,

Attn: Donna Taylor,

Managing Counsel

Registered Agent

334 North Senate Avenue

One Valero Way

Indianapolis, IN 46204

San Antonio, TX 78249-1616

Donna.Taylor@valero.com

 

 

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.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Valero Renewable Fuels Company LLC

dba Valero Bluffton Plant

 

 

 

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 May 29, 2025

 

Matthew Stuckey, Assistant Commissioner

 

Office of Air Quality

Indiana Department of Environmental Management