STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

CATERPILLAR, INC.,,

Respondent.

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Case No. 2016-23659-A

 

 

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 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 Indiana Code (�IC�) 13-13-1-1.

 

2.             Respondent is Caterpillar, Inc. (�Respondent�), which owns/operates the source with Plant ID No. 157-00044, located at 3701 State Road 26 East, in Lafayette, Tippecanoe 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 the following:

 

Douglas Oberhelman, President

 

CT Corporation System, Registered Agent

Caterpillar, Inc.

 

150 West Market Street Suite 800

100 NE Adams Street

 

Indianapolis, IN 46204

Peoria, IL 61629

 

 

 

5.             During an investigation including an inspection on February 10, 2016 conducted by a representative of IDEM, the following violations were found:

 

a.    Pursuant to (�Permit�) 157-33951-00044 condition D.6.2, all solvent sprayed from the application equipment of paint booths, identified as M751, M775 and M771b, during cleanup or color changes, shall be directed into containers; and those containers shall be closed as soon as the solvent spraying is complete.

 

An open gallon bucket with clean up solvent inside was observed lying on the floor in paint booth M775; and the old clean up solvent purge system that is no longer used had an opening in which residual solvent could be observed remaining inside the reservoir, in violation of Permit condition D.6.2.

 

b.    Pursuant to Permit condition D.6.2, all solvent sprayed from the application equipment of paint booths, identified as M751, M775 and M771b, during cleanup or color changes, shall be directed into containers; and those containers shall be closed as soon as the solvent spraying is complete.

 

The 55 gallon drum that stores waste materials in the paint mix room was not fully closed and a gap was observed in the lid closure, in violation of Permit condition D.6.2.

 

c.     Pursuant to Permit condition D.5.6, Permittee shall maintain records of visible emission notations of the peak shaving diesel generators stack exhaust once per day while in operation; and the Permittee shall record when a visible emission notation is not taken and the reason for the lack of notation.

Several instances were observed where the source failed to record when a visible emission notation was not taken for the peak shaving diesel generators (EL45016 and EL45019) and the reason for the lack of a visible emission notation, in violation of Permit condition D.5.6.

 

d.    Pursuant to Permit condition D.6.8 and D.6.9, daily inspections shall be performed to verify the placement, integrity and particle loading of the paint booth filters; and the Permittee shall maintain a log of those inspections.

 

Several instances were observed where the source failed to identify whether paint booth M771b was operating and if operating conduct the appropriate daily filter inspection, in violation of Permit condition D.6.8 and D.6.9.

 

e.    Pursuant to 326 IAC 2-7, an owner or operator of a Part 70 source shall ensure that all emission units are appropriately permitted prior to construction and/or operation of those units.

 

Respondent constructed and operated various degreasers without being appropriately permitted, in violation of 326 IAC 2-7.

 

6.             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 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 rules and permit conditions listed in the findings here.

 

3.             Within 30 days of the Effective Date, Respondent shall submit documentation verifying that the old clean up solvent purge system in paint booth M775, which is no longer being used, has been dismantled and removed from the operation.

 

4.             Within 90 days of the Effective Date, Respondent shall submit 30 days of visible emission notations of the peak shaving diesel generators stack exhaust and 30 days of daily inspections for paint booth M771b to verify the placement, integrity and particle loading of the filters; and these records should start after the Effective Date of this Order.

 

5.             Within 90 days of the Effective Date, Respondent shall develop and submit documentation of a training program for paint booth operations.� The training shall contain, but is not limited to the following.

a.    Summary of the compliance requirement related to all paint booths

b.    Review of systems put in place by the Respondent to demonstrate compliance with permitted requirements and the tasks that will be required of paint booth operators

c.     Training schedule including annual refresher training that will be conducted with all paint booth operators

 

6.             Within 120 days of the Effective Date, Respondent shall conduct initial training with all paint booth operators and submit documentation that the training was conducted.

 

7.             Within 60 days of the Effective Date, Respondent shall submit to the following address a complete permit application for all unpermitted degreasers at the source.

 

IDEM Air Permits Administration
MC 61-53, IGCN 1003
100 North Senate Avenue
Indianapolis, IN 46204-2251

 

8.             All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Rebecca Hayes, Compliance and Enforcement Manager

Compliance and Enforcement Branch � Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

9.             Respondent is assessed and agrees to pay a civil penalty of Fifteen Thousand and Fifty Dollars ($15,050).� Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30th day being the �Due Date�.

 

10.          In the event the terms and conditions of the following paragraphs are violated, Complainant may assess and Respondent shall pay a stipulated penalty in the following amount:

 

Paragraphs

Violation

�Stipulated Penalty

 

 

 

3, 4, 5, 6, 7

Failure to submit required documentation

$250 per week (each)

 

11.          Stipulated penalties shall be due and payable no later than the 30th day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the 30th 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.

 

12.          Civil and stipulated 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:

 

IDEM Office of Legal Counsel

IGCN, Rm� N1307

100 N Senate Ave

Indianapolis, IN� 46204

 

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

 

14.          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 12, above.

 

15.          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.

 

16.          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.

 

17.          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 their obligation to comply with the requirements of their applicable permit or any applicable Federal or State law or regulation.

 

18.          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.

 

19.          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 same violations specified in the NOV.

 

20.          Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the 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 EPA or any other agency or entity.

 

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

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Caterpillar, Inc.

 

 

 

By:

 

 

By:

 

 

Janusz Johnson, Chief

 

Printed:

 

 

Compliance and Enforcement Section 1

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2016.

 

 

For the Commissioner

 

 

 

Signed on August 8, 2016

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management