STATE OF INDIANA            )                       BEFORE THE INDIANA DEPARTMENT

)           SS:       OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION        )

 

COMMISSIONER OF THE DEPARTMENT            )

OF ENVIRONMENTAL MANAGEMENT,              )

)

Complainant,                                        )

)

v.                                             )           Case No. 2001-10656-A

)

INDIANA MICHIGAN POWER COMPANY,          )

d/b/a AMERICAN ELECTRIC POWER,                    )

)                      

Respondent.                                         )

 

 

AGREED ORDER

 

The Complainant and the 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 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, a department of the State of Indiana created by IC 13-13-1-1.

 

2.         Respondent is Indiana Michigan Power Company, d/b/a American Electric Power (“Respondent”), which owns and operates the electric power plant located on U. S. 231, in Rockport, Spencer County, Indiana (“Site”).

 

3.         The Indiana Department of Environmental Management (“IDEM”) has jurisdiction over the parties and the subject matter of this action.

 

4.         Pursuant to IC 13-30-3-3, on August 28, 2002 IDEM issued a Notice of Violation via Certified Mail to:

 

E. Linn Draper, Jr., President                American Electric Power         

American Electric Power                      c/o C T Corporation System, Reg. Agent

1 Riverside Plaza                                  36 South Pennsylvania Street, Suite 700

Columbus, OH   43215                        Indianapolis, IN   46204

 

5.                  A record review was conducted by a representative of IDEM’s Office of Air Quality.  The following violations were identified at the time of this review:

 

a.       Pursuant to 326 IAC 12-1-1(b)(1), the provisions of 40 CFR 60 were adopted by reference by the air pollution control board.  The boilers designated as Auxiliary Boilers #1 and #2 at the Rockport Generating Station are subject to the requirements of the New Source Performance Standard (“NSPS”) established by 40 CFR 60, Subpart D (40 CFR 60.40 - 60.46), as well as the notification and testing requirements established under 40 CFR 60.7 and 60.8.  Respondent failed to comply with the notification and testing requirements of 40 CFR 60.7 and 60.8 within the time frames specified therein, and failed to comply with the monitoring requirements of Subpart D, violations of 326 IAC 12 and 40 CFR 60.

 

b.      Pursuant to 326 IAC 12-1-1(b)(1), the provisions of 40 CFR 60 were adopted by reference by the air pollution control board. The Coal Handling System at the Rockport Generating Station is subject to the requirements of the NSPS established by 40 CFR 60, Subpart Y (40 CFR 60.250 - 60.254), as well as the notification and testing requirements established under 40 CFR 60.7 and 60.8.  Respondent failed to comply with the notification and testing requirements of 40 CFR 60.7 and 60.8 within the time frames specified therein, violations of 326 IAC 12 and 40 CFR 60. 

 

c.       Pursuant to 326 IAC 3-5-1(c)(2)(A), fossil fuel-fired steam generators of greater that one hundred million Btu per hour heat input capacity shall monitor opacity.  A representative of IDEM has reviewed the quarterly opacity monitor reports for Units 1 and 2.  According to these reports, the continuous opacity monitor (“COM”) was not generating valid data for approximately 6.06% of the second operating quarter of 2001, a violation of 326 IAC 3-5-1(c)(2)(A).

 

6.         On January 14, 15 and 16, 2003, Respondent completed the compliance testing, pursuant to 40 CFR 60.8, for Auxiliary Boilers #1 and #2, and the Coal Handling System.  IDEM has reviewed these test results and determined that the auxiliary boilers were in compliance with the PM, SO2, and NOx emission limits established under 40 CFR 60.42 - 60.44, and the coal processing equipment was in compliance with the opacity standard established under 40 CFR 60.252(c).

 

7.                  On November 18, 2002, Respondent submitted formal notice, in accordance with 40 CFR 60.7(c)(3), to IDEM that the initial startup of Auxiliary Boilers #1 and #2 was November 2, 1983 and November 3, 1983, respectively.  In addition, on that same date, Respondent submitted formal notice, in accordance with 40 CFR 60.7(c)(3), to IDEM that the initial startup of the Coal Handling System was August 15, 1983.  Respondent had previously submitted status reports, pursuant to the requirements of Construction Permit Nos. 74-03-92-0079 and 74-03-92-0080, which indicated the start-up date for each of these units.

 

8.         On December 20, 2002, Respondent submitted a petition for an alternative opacity monitoring method for Auxiliary Boilers #1 and #2.  A response letter was issued to Respondent on March 18, 2003, which indicates that the U. S. EPA has approved the alternative opacity monitoring method requested by the Respondent.

 

9.         A review of the results from emission tests conducted on January 15 and 16, 2003, at Auxiliary Boiler #1 and #2, indicate that the average measured NOx emissions were 0.108 lbs/MMbtu.  Therefore, pursuant to 40 CFR 60.45(b)(3), since Respondent has demonstrated through performance testing that the NOx emission rate is less than seventy percent (70%) of the applicable standard in 40 CFR 60.44 (0.30 lbs/MMBtu) it is not required to install a continuous emission monitoring system for measuring NOx at this time.

 

10.       Pursuant to 40 CFR 60.44(b)(2), given that Respondent monitors sulfur dioxide emissions by fuel sampling and analysis, it is not required to install and operate a continuous emission monitoring system for measuring SO2 at this time.

 

11.              This Agreed Order, and compliance with its terms and conditions, shall resolve all violations cited in the Notice of Violation issued to Respondent on August 28, 2002.

 

12.              In recognition of the settlement reached, Respondent 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 the Complainant or her delegate, and has been received by the Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.         Respondent shall comply with 326 IAC 12-1-1 and 326 IAC 3-5-1.

 

3.         Respondent shall comply with the conditions set forth in the EPA’s letter of approval, issued to Respondent on March 18, 2003, for alternative opacity monitoring at the Auxiliary Boiler Nos. 1 and 2.  These conditions are as follows:

 

a.       Neither boiler will be operated more than 876 hours in a calendar year.  If one of the boilers is operated more than 876 hours in a calendar year, [Respondent] shall immediately submit a schedule for installing and certifying a continuous opacity monitor (COM) to IDEM and U. S. EPA.   This schedule shall require installation of the COM within six months or less of the 876 hour limit exceedance.  IDEM and U. S. EPA shall also be immediately notified that the 876 hour limit has been exceeded.

 

b.      At least once every four (4) hours of operation, during daylight hours, an observer certified in accordance with U. S. EPA Method 9 shall perform three (3) six-minute observations of each boiler stack.

 

c.       If the average of any 6-minute set of readings collected in accordance with [Order Paragraph 3(b)] exceeds 10 percent, the observer must collect two additional 6-minute sets of visible emission readings.

 

d.      Records of the date and time of visible emission observations, along with the results of each observation, must be maintained.  Such records must be maintained on-site for a period of five years from the date of the observation.

 

e.       Records of hours of operation for each boiler must be maintained on-site for a period of five years.

 

f.        Within thirty days of the end of each calendar quarter, excess emission reports must be submitted to IDEM and U. S. EPA.  The excess emission reports shall identify the number of hours of operation in that quarter, the number of hours of operation in previous quarters within the same calendar year, the total number of observations performed under [Order paragraph 3(b)] and any excess opacity readings observed.  The excess emission report shall denote that the boilers must comply with a 20 percent opacity limit over a six-minute average.

 

g.       [Respondent] shall maintain the boilers in accordance with good air pollution control practices.

 

4.                  Respondent is assessed a civil penalty of Twenty Thousand Dollars ($20,000).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date of this Agreed Order.

 

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:

 

Cashier

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

 

6.         In the event that the civil penalty required by Order paragraph 4 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101.  The interest shall continue to accrue until the civil penalty is paid in full.

 

7.         This Agreed Order shall apply to and be binding upon the Respondent, its successors and  assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent.  No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

8.         In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.

 

9.         The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred.   Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

 

10.       This Agreed Order shall remain in effect until Respondent has complied with the  terms and conditions of Order paragraph 4, including interest, if any, under Order paragraph 6, of this Agreed Order.

TECHNICAL RECOMMENDATION:                       RESPONDENT:

Department of Environmental Management                    Indiana Michigan Power Company, d/b/a American Electric Power

 

By: _________________________                            By: _________________________

            David P. McIver

            Chief, Air Section                                             Printed: ______________________

            Office of Enforcement

                                                                                    Title: ________________________

 

Date: ________________________                           Date: ________________________

 

 

COUNSEL FOR COMPLAINANT:                           COUNSEL FOR RESPONDENT:

Department of Environmental Management

 

By: _________________________                            By: ________________________

       Office of Legal Counsel                                               

     

 

Date: _______________________                             Date: ______________________

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 20__.

 

 

 

For the Commissioner:

 

 

(signed on June 11, 2004)

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs