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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGIONS
77 WEST JACKSON BOULEV/^
CHICAGO, IL 60604-3590

FEB 0 5 2016
REPLY TO THE ATTENTION OF:

CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Jeff Harter, Petersburg Station
Indianapolis Power & Light Company
6925 N. State Road 57
P.O. Box 436
Petersburg, Indiana 47567-0436
Re:

Notice and Finding of Violation
Indianapolis Power & Light Company
Petersburg Generating Station

Dear Mr. Harter:
The U.S. Environmental Protection Agency is issuing the enclosed Notice and Finding of
Violation (NOV/FOV) to Indianapolis Power & Light Company (IPL) under Section 113(a) of
the Clean Air Act ("the Act"), 42 United States Code (U.S.C.) § 7413(a). We fmd that IPL has
violated the following Clean Air Act requirements at its Petersburg Generating Station: the
Prevention of Significant Deterioration requirements under Part C of the Act, 42 U.S.C. §§ 7470
et seq.; the Non-Attainment New Source Review requirements under Part D of the Act, 42
U.S.C. §§ 7501 et seq.-, the New Source Performance Standards for Fossil Fuel Fired Steam
Generators for Which Construction Is Commenced After August 17, 1971, at 40 C.F.R. Part 60,
Subpart D; the Indiana State Implementation Plan (SEP); and the requirements for the Petersburg
Generating Station operating permit, issued under Title V of the Act, 42 U.S.C. §§ 7661 et seq.
Section 113 of the Act gives us several enforcement options. These options include issuing an
administrative compliance order, issuing an administrative penalty order and bringing a judicial
civil or criminal,action.
We are offering IPL the opportunity to confer with us about the violations alleged in the attached
NOV/FOV. The conference will give EPL an opportunity to present information on the specific
findings of violation, any efforts PL have taken to comply and the steps PL will take to prevent
future violations. In addition, in order to make the conference more productive, we encourage
PL to submit to us any information responsive to the NOV/FOV prior to the conference date.
Please plan for the facility's technical and management personnel to attend the conference to
discuss compliance measures and commitments. You may have an attorney represent you at this
conference.

Recycled/Recyclable • Printed with Vegetable Oil Based inks on 100% Recycled Paper (100% Post-Consumer)

 The EPA contacts in this matter are Shilpa Patel and Ethan Chatfield. You may contact her/him
at (312) 886-0120 and (312) 886-5112 or at patel.shilpa^iepa.gov or chatfield.ethan@,epa.gov.
respectively to request a conference. You should make the request within 10 calendar days
following receipt of this letter. We should hold any conference within 30 calendar days
following receipt of this letter.
Sincerely,

George T.^emiak

Direc^ J
Air and-R^iation ir^ivlsion
Enclosure

cc;

Phil Perry, Branch Chief
Office of Air Quality / Compliance Branch
Indiana Department of Environmental Management
100 North Senate Avenue / Room IGCN 1003
Indianapolis, Indiana 46204-2251

 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGION 5
IN THE MATTER OF:

)
)

Indianapolis Power & Light Company
Petersburg, Indiana

)
)

Proceedings Pursuant to
the Clean Air Act
42U.S.C.§§ 7401

)
)
)
)

NOTICE OF VIOLATION and
FINDING OF VIOLATION

)

EPA-5-16-IN-03

NOTICE AND FINDING OF VIOLATION
The U.S. Environmental Protection Agency (EPA) is issuing this Notice and Finding of
Violation (NOV/FOV) in accordance with Section 113(a)(1) and (3) of the Clean Air Act ("the
Act"), 42 United States Code (U.S.C.) § 7413(a)(1) and (3).
EPA finds that the Indianapolis Power & Light Company (IPL) has violated and continues to
violate the Act, 42 U.S.C. §§ 7401 et seq., its implementing regulations, the Indiana State
Implementation Plan (SIP), the Prevention of Significant Deterioration (PSD) rules, the NonAttainment New Source Review requirements, the New Source Performance Standards for Fossil
Fuel Fired Steam Generators at 40 Code of Federal Regulations (C.F.R.) Part 60, Subpart D, and
its Title V Operatuig Permit at the Petersburg Generating Station located in Petersburg, Indiana
(Petersburg Station or Facility). These exceedances constitute violations of the Act.
STATUTORY AND REGULATORY AUTHORITY
1. The Clean Air Act is designed to "protect and enhance the quality of the Nation's air
resources so as to promote the public health and welfare and the productive capacity of its
population." Section 101(b)(1) of the Act, 42 U.S.C. § 7401 (b)(1).
Prevention of Significant Deterioration Requirements
2. When the Act was passed in 1970, Congress exempted existing facilities, including
the coal-fired power plant that is the subject of this Notice, from many of its requirements.
However, Congress also made it quite clear that this exemption would not last forever. As the
United States Court of Appeals for the D.C. Circuit explained in yl/abama Power v. Costle, 636
F.2d 323, 400 (D.C. Cir. 1979), "[t]he statutory scheme intends to 'grandfather' existing
industries; but.. .this is not to constitute a perpetual immunity from all standards under the PSD
program." Rather, the Act requires grandfathered facilities to install modem pollution control
devices whenever the unit is proposed to be modified in such a way that its emissions may
increase.

 3. On June 19, 1978, EPA promulgated regulations pursuant to Part C of Title I of the Act.
43 Fed. Reg. 26403 (June 19, 1978).
4. The PSD provisions of Part C of Title I of the Act require preconstruction review and
permitting for modifications of stationary sources in attainment/unclassifiable areas. See 42 U.S.C.
§§ 7470-7492. Pursuant to applicable regulations, if a major stationary source located in an
attainment area is planning to make a major modification, then that source must obtain a PSD permit
before beginning actual construction. See 40 C.F.R. § 52.21(a)(l)(iii). To obtain this permit, the
source must, among other things, undergo a technology review and apply Best Available Control
Technology (BACT); perform a source impact analysis; perform an air quality analysis and
modeling; submit appropriate information; and conduct additional impact analyses as required.
5. On March 3, 2003, EPA conditionally approved Indiana's PSD program. 68 Fed. Reg.
9892 (effective April 2, 2003). On June 18, 2007, EPA partially approved revisions related to EPA's
NSR Reform regulations in Indiana's PSD program. 72 Fed. Reg. 33395 (effective July 18, 2007).
For all violations cited in this Notice, the applicable Indiana PSD regulations are the regulations
codified in the Indiana Administrative Code.
6. The PSD regulations contained in Title 326 of the Indiana Administrative Code (lAC)
Article 2-2 were incorporated into and part of the Indiana SP at the time of the major modifications
at issue in this NOV/FOV, and have been approved by EPA and are federally enforceable
requirements. All citations to the PSD regulations herein refer to the provisions of the Indiana SIP
as applicable at the time of the projects.
7. 326 LAC 2-2-2(c) provides that "No new major stationary source or major modification
to which the requirements of sections 3 through 5, 7, 8(a), 10, 14, and 15 of this rule apply shall
begin actual construction without a permit that states that the major stationary source or major
modification will meet the requirements of sections 3 through 5, 7, 8(a), 10, 14, and 15 of this rule."
8. 326 lAC 2-2-2(b) provides that "The requirements of this rule apply to the construction
of any new major stationary source or any project at an existing major stationary source in an area
designated as attainment or unclassifiable in 326 lAC 1-4."
9. The Indiana SIP and PSD regulations defme "major stationary source" as, "Any of the
following stationary sources of air pollutants that are located or proposed to be located in an
attainment or unclassifiable area as designated in 326 lAC 1-4 and that emit or have the potential to
emit one hundred (100) tons per year or more of any regulated NSR pollutant: (A) Fossil fuel-fired
steam electric plants of more than two hundred fifty million (250,000,000) British thermal units per
hour heat input." See 326 lAC 2-2-1 (ff).
10. The Indiana SIP and PSD regulations defme "major modification" as "any physical
change in, or change in the method of operation of, a major stationary source that would result in a
significant emissions increase and a significant net emissions increase of a regulated NSR pollutant
from the major stationary source." See 326 lAC 2-2-l(dd).

 11. The Indiana SIP and PSD regulations define "significant" as "in reference to a net
emissions increase or the potential of a source to emit any of the following pollutants, a rate of
emission that would equal or exceed any of the following rates: ... Carbon monoxide: one hundred
(100) tons per year; Nitrogen oxides: forty (40) tons per year; Sulfur dioxide: forty (40) tons per
year; PM: twenty-five (25) tons per year; PMio: fifteen (15) tons per year; PM2.5: ten (10) tons per
year; Sulfuric acid mist: seven (7) tons per year... Pollutant greenhouse gases (GHGs): as specified
in subsection (zz) ..See 326 lAC 2-2-l(ww).
12. 326 lAC 2-2-8(b) provides that "(b).. .in circumstances where there is a reasonable
possibility, within the meaning of this subsection, that a project that is not a part of a major
modification may result in a significant emissions increase of a regulated NSR pollutant, and the
owner or operator elects to use the method specified in section l(pp)(2)(A) of this rule for.
calculating projected actual emissions:
(1) Before beginning actual construction of the project, the owner or operator shall document and
maintain a record of the following information:
(A) A description of the project.
(B) Identification of any emissions unit whose emissions of a regulated NSR pollutant
could be affected by the project.
(C) A description of the applicability test used to determine that the project is not a major
modification for any regulated NSR pollutant, including the following:
(i) The baseline actual emissions.
(ii) The projected actual emissions.
(iii) The amount of emissions excluded under section l(pp)(2)(A)(iii) of this rule.
(iv) An explanation for why the amount was excluded, and any netting calculations, if
applicable.
(2) If the emissions unit is an existing electric utility steam-generating unit, before beginning
actual construction, the owner or operator shall provide a copy of the information set out in
subdivision (1) to the department. Nothing in this subdivision shall be construed to require the
owner or operator of the unit to obtain any determination from the department before
beginning actual construction." See also 40 C.F.R. 52.21(r)(6).
Non-attainment New Source Review Requirements
13. The Non-attainment New Source Review (NNSR) provisions of Part D of Title I of the
Act require preconstruction review and permitting for modifications of stationary sources located in
nonattainment areas. See 42 U.S.C. §§ 7501-15. Pursuant to applicable regulations, if a major
stationary source located ia a nonattainment area is planning to make a major modification, then that
source must obtain a NNSR permit before beginning actual construction. To obtain this permit, the
source must, among other things, employ pollution controls that reflect the Lowest Achievable
Emission Rate (LAER).
14. On October 7, 1994, EPA approved 326 lAC 2-1 and 2-3. 59 Fed. Reg. 51108,
effective December 6, 1994. Included in the NNSR SIP revisions were changes to the defmitions
previously codified at 325 LAC 1-1, now codified at 326 LAC 2-3-1.

 Indiana State Implementation Plan
15. Pursuant to Section 110 ofthe Act, 42 U.S.C. § 7410, EPA approved 326 lAC 5-1;
Opacity Limitations, as part of the federally enforceable Indiana SIP for Particulate Matter (PM)
on July 16, 2002 (67 Fed. Reg. 46589).
16. 326 lAC 5-1-2 states that, unless otherwise stated, opacity shall meet the following
limitations: (A) Opacity shall not exceed an average of forty percent in any one six-minute
averaging period, and (B) Opacity shall not exceed sixty percent for more than a cumulative total
of fifteen minutes in a six-hour period.
New Source Performance Standards
17. Pursuant to Section 111 of the Act, 42 U.S.C. § 7411, EPA promulgated 40 C.F.R.
Part 60, Subpart D. This includes § 60.42(a)(2), which states that "no owner or operator subject
to the provisions of this subpart shall cause to be discharged into the atmosphere from any
affected facility any gases that: exhibit greater than 20 percent opacity except for one six-minute
period per hour of not more than 27 percent opacity."
18. Pursuant to 40 C.F.R. § 60.43(a)(2) "no owner or operator subject to the provisions
of this subpart shall cause to be discharged into the atmosphere fi-om any affected facility any
gases that contain SO2 in excess of: (2) 520 ng/J heat input (1.2 Ib/MMBtu) derived from solid
fossil fuel or solid fossil fuel and wood residue, except as provided in paragraph (e) of this
section."
Title V
19. Section 502(d)(1) of the Act, 42 U.S.C. § 7661a(d)(l), requires each State to
develop and submit to EPA an operating permit program which meets the requirements of
Title V of the Act. On November 14, 1995 (60 Fed. Reg. 57188), EPA granted Indiana interim
approval of its program, with final approval on July 30, 2001 (66 Fed. Reg 39293).
20. EPA promulgated full approval of Indiana's Title V program on December 4, 2001.
Indiana's Title V program became effective on November 30, 2001 (66 Fed. Reg. 62969).
21. . The Indiana regulations governing the Title V permitting program are codified at
326 lAC 2-7.
22. The Indiana Department of Environmental Management (IDEM) issued a Title V
Operation Permit to IPL for the Petersburg Generating Station on December 22, 2008 and July 18,
2013 (Permit #s T 125 6565-00002 and T 125-30045-00002, respectively). Additionally, IDEM
issued a Second Significant Permit Modification (T125-34687-00002) on June 18, 2015. The permit
contains the following relevant provisions for purposes of this NOV/FOV:
a.

Section C.2 - Opacity: Pursuant to 326 lAC 5-1-2 (Opacity Limitations), except as
provided in 326 lAC 5-1-3 (Temporary Alternative Opacity Limitations), "opacity shall

 meet the following, imless otherwise stated in this permit: (a) Opacity shall not exceed an
average of forty percent (40%) in any one (1) six (6) minute averaging period as
determined in 326 lAC 5-1-4. (b) Opacity shall not exceed sixty percent (60%) for more
than a cumulative total of fifteen (15) minutes in a six (6) hour period."
b.

Section D.1.2 - Startup, Shutdown, and Other Opacity Limits.
"(a) Pursuant to 326 lAC 5-l-13(e) (Temporary Alternative Opacity Limitations), the
following applies to Units 1 and 2:
(1) When building a new fire in a boiler, opacity may exceed the applicable limitation
established in 326 lAC 5-1-2 for a period not to exceed a total of four (4) hours (forty (40)
six (6)-minute averaging periods) during the startup period, or until the flue gas
temperature entering the PM control device reaches two hundred and fifty (250) degrees
Fahrenheit at the inlet to the electrostatic precipitator for Unit 1 and the inlet of the
electrostatic precipitator or inlet of the baghouse for Unit 2, whichever occurs first. For
Unit 1, compliance with the opacity limit is determined by adding the Unit 1 Scrubbed and
Unit 1 Bypass stacks' opacity exceedances during the startup period. For Unit 2,
compliance with the opacity limit is determined by adding the Unit 2 Scrubbed and Unit 2
Bypass stacks' opacity exceedances during the startup period.
(2) When shutting down a boiler, opacity may exceed the applicable limitation
established in 326 lAC 5-1-2 for a period not to exceed a total of two (2) hours (twenty
(20) six (6)-minute averaging periods) during the shutdown period.
(3) Operation of the electrostatic precipitators are not required during.these times.
(b) When removing ashes from the fuel bed or furnace in a boiler or blowing tubes, opacity
may exceed the applicable limit established in 326 LAC 5-1-2. However, opacity levels
shall not exceed sixty percent (60%) for any six (6)-mmute averaging period and opacity in
excess of the applicable limit shall not continue for more than one (1) six (6)-minute
averaging period in any sixty (60) minute period. The averaging periods shall not be
permitted for more than three (3) six (6)-minute averaging periods in a twelve (12) hornperiod. [326 lAC 5-1-3(b)]
(c) If a facility cannot meet the opacity limitations in (a) and (b) of this condition, the
Permittee may submit a written request to IDEM, OAQ, for a temporary alternative opacity
limitation in accordance with 326 lAC 5-l-3(d). The Permittee must demonstrate that the
alternative limit is needed and justifiable.
(d) This provision, D.1.2, shall no longer apply after PM GEMS is installed, certified, and
operating to measure PM emissions pursuant to this permit."

c.

Section D.2.2(a)(2) - NSPS Subpart D, 326 lAC 12; "Pursuant to 326 IAC12 and 40
C.F.R. Part 60, Subpart D, emissions from Unit 3 and Unit 4 shall not exceed the
following: (a)(2) "twenty percent (20%) opacity except for one six-minute period per hour
of not more than twenty-seven percent (27%) opacity. [40 C.F.R. 60.42(a)(2)] Pursuant to
40 C.F.R. 60.11(c), this opacity standard is not applicable during periods of startup,
shutdo-wn, or malfunction."

 d.

Section D.2.2 (b)(2) - NSPS Subpart D, 326 lAC 12: "Pursuant to 326 lAC 12 and 40
C.F.R. Part 60, Subpart D, emissions from Unit 3 and Unit 4 shall not exceed the
following: (b)(2) "one and two-tenths (1.2) pounds SO2 per million Btu (MMBtu) heat
input derived from solid fossil fuel."

e.

Section D.2.3 (a) - Pursuant to 326 lAC 2-2-3 (PSD BACT), the following requirements
shall apply to Unit 4: (a) Sulfur dioxide (SO2) emissions shall not exceed 1.2 pounds per
MMBtu heat input when burning coal.

FACTUAL BACKGROUND
23. IPL is an Indiana corporation and a subsidiary of the AES Corporation.
24. IPL is a "person," as that term is defined in Section 302(e) of the Act, 42 U.S.C
§ 7602(e).
25. At all times relevant to this NOV/FOV, IPL was the owner and operator of the
Petersburg Station.
26. The Petersburg Station is located in Pike County, Indiana, which is an area classified as;
nonattainment with the 2010 Primary Sulfur Dioxide National Ambient Air Quality Standard
(NAAQS) from October 4, 2013 to the present and attainment for all other NAAQS for all time
periods relevant to the violations cited herein. As described in IDEM's "Revisions to the Indiana
State Implementation Plan for Sulfur Dioxide and the Final 1-hour Sulfior Dioxide Attainment
Demonstration" submitted to U.S. EPA on October 2, 2105, the IPL Petersburg Station has been
determined to be a significant contributor to the Pike County SO2 NAAQS exceedence.
27. The Petersburg Station is a fossil fuel-fired steam electric plant with a potential to
emit greater than 100 tons per year of sulfur dioxide (SO2), nitrogen oxides (NOx), carbon
monoxide (CO), and particulate matter (PM). The station consists of four coal-fired boilers and
corresponding turbines for electricity generation. Units 1 through 4 have net generating
capacities of 229, 412, 540 and 530 MWnet and commenced construction in 1964, 1969, 1977
and 1978, respectively.
28. The Petersburg Station is a "fossil fuel-fired steam electric plant of more than 250
million British thermal units per hour heat input." Therefore, the station constitutes a "major
stationary source" within the meaning of 326 lAC 2-2-l(ff) and 40 C.F.R. § 52.21(b)(l)(i)(a);
and a "major emitting facility" within the meaning of Section 169(1) of the Act, 42 U.S.C. §
7479(1).
29. The Petersburg Station is a "major source" as defined in Section 501(2) of the Act,
42 U.S.C. § 7661(2) and 40 C.F.R. § 70.2.
30. On March 23, 2011, and October 10, 2013, IPL submitted pre-project notification letters
to the IDEM describing activities to be performed during two outages and providing an "Emissions

 Analysis". It is EPA's understanding that IPL intended these letters to fiilfill the requirements
contained in 326 lAC 2-2-8 (Source Obligations) and 40 C.F.R. § 52.21(r)(6) to document, maintain
a record of, and submit a copy of information regarding projects where there is "a reasonable
possibility that a project that is not a part of a major modification may result in a significant
emissions increase of a regulated NSR pollutant".
31. As described in IPL's March 23, 2011, "Spring 2011 Outage", pre-project
notification letter, IPL replaced various boiler and turbine components at Petersburg Station
Unit 1 from approximately March 25, 2011 to June 19, 2011 (see Attachment B of IPL's
notification letter).
32. As described in IPL's October 10, 2013, "Fall 2013 Outage", pre-project notification
letter, IPL replaced various boiler and turbine components at Petersburg Station Unit 2 from
approximately October 11, 2013 to January 30, 2014, including but not limited to the Unit Boiler
finishing superheat pendants and water wall tube panels (see Attachment B of IPL's notification
letter).
33. IPL operated its sulfuric acid mitigation systems intermittently from March 24, 2015
through August 24, 2015. The systems were not operated, while the corresponding boiler was
operating at the specific units for the following number of hours:
a. Petersburg Unit 1: 558 hours
b. Petersburg Unit 2: 597 hours
c. Petersburg Unit 4: 546 hours
34. IPL reported a total of 144 hours of SO2 excess emissions in its quarterly excess
emission reports for 2"*^ Quarter 2011 through 4^^ Quarter 2011 and 2"*^ Quarter 2012 through U'
Quarter 2015 for Petersburg Unit 3.
35. IPL reported a total of 93 hours of SO2 excess emissions in its quarterly excess emission
reports for 2"'^ Quarter 2011 through 4^ Quarter 2011 and 2"'' Quarter 2012 through U' Quarter 2015
for Petersburg Unit 4.
36. IPL reported a total of 5,208 minutes of opacity excess emissions based on continuous
opacity monitoring in its response to EPA's information request response received on October 27,
2015 for 2011 through 2015 at Petersburg Unit 1.
37. IPL reported a total of 6,084 minutes of opacity excess emissions based on continuous
opacity monitoring in its response to EPA's information request response received on October 27,
2015 for 2011 through 2015 at Petersburg Unit 2.
38. IPL reported a total of 5,724 minutes of opacity excess emissions based on continuous
opacity monitoring in its response to EPA's information request response received on October 27,
2015 for 2011 through 2015 at Petersburg Unit 3

 39. IPL reported a total of 4,416 minutes of opacity excess emissions based on continuous
opacity monitoring in its response to EPA's information request response received on October 27,
2015 for 2011 through 2015 at Petersburg Unit 4.
VIOLATIONS
Prevention of Significant Deterioration
40. The physical changes and/or changes in the method of operation performed in each
outage referred to in Paragraphs 31 and 32, above, resulted in a significant emissions increase
and a significant net emissions increase, as defined in the relevant PSD regulations and 326
lAC 2-2 of the Indiana SIP, of SO2, NOx, sulfuric acid mist, and/or PM.
41. The physical changes and/or changes in the method of operation performed in each
outage referred to in Paragraphs 31 and 32, above, constitute "major modifications" under the
PSD regulations of 40 C.F.R. § 52.21, and 326 lAC 2-2-1 of the Indiana SIP.
42. Each project referred to in Paragraphs 31 and 32, above, is a major modification
based on the entire scope of work performed during the outage. In these instances, the entire
scope of work performed during the outage is properly considered together when deterniining
whether a modification occurred. In addition, individual physical changes and/or changes in the
method of operation specifically listed above also are major modifications without reference to
the rest of the scope of work performed during the outage. Each of the physical changes listed
above increased the availability of the unit and increased the generation of electricity at the
unit.
43. For each of the modifications referred to in Paragraphs 31 and 32, above, IPL
failed to obtain a PSD permit as required by 40 C.F.R. § 52.21, and 326 lAC 2-2 of the Indiana
SEP.
44. IPL is in violation of PSD requirements. Section 165 of the Act, 42 U.S.C. § 7475,
40 C.F.R. § 52.21, and 326 LAC 2-2 of the Indiana SIP for constructing major modifications, as
referred to in Paragraphs 31 and 32, above^ to existing major sources at their Petersburg Station
without applying for or obtaining the PSD permits, and operating the modified facilities
without installing BACT or going through PSD review, and installing appropriate emission
control equipment in accordance with a BACT analysis.
45. IPL violated 326 lAC 2-2-8(b) of the Indiana SIP and 40 C.F.R. 52.21(r)(6) of the PSD
rules by failing to provide an adequate explanation as to why the amount of emissions excluded in its
March 23, 2011, February 27, 2013, and October 10, 2013 pre-project notification letters could be
excluded in accordance with the rules.
Non-attainment New Source Review
46. The physical changes and/or changes in the method of operation performed in the
outage referred to in Paragraph 32, above, resulted in a significant emissions increase and a

 significant net emissions increase, as defined in the relevant Non-attainment New Source
Review (NNSR) regulations and 326 lAC 2-3 of the Indiana SIP, of SO2.
47. The physical changes and/or changes in the method of operation performed in the
outage referred to in Paragraph 32, above, constituted a "major modification" under the NNSR
regulations and 326 lAC 2-3 of the Indiana SIP.
48. The outage referred to in Paragraph 32, above, is a major modification based on
the entire scope of work performed during the outage. In these instances, the entire scope of
work performed during the outage is properly considered together when determining whether a
modification occurred. In addition, individual physical changes and/or changes in the method
of operation specifically listed above also are major modifications without reference to the rest
of the scope of work performed during the outage. Each of the physical changes listed above
increased the availability of the unit and increased the generation of electricity at the unit.
49. For the modification(s) referred to in Paragraph 32, above, IPL failed to obtain a
NNSR permit as required by the NNSR regulations and 326 lAC 2-3 of the Indiana SEP.
50. IPL is in violation of NNSR requirements. Part D of the Act, and 326 lAC 2-3 of
the Indiana SIP for constructing major modification(s), as referred to in Paragraph 32, above, to
an existing major source at their Petersburg Station without applying for or obtaining the
NNSR permit, and operating the modified facilities without installing controls able to achieve
the Lowest Achievable Emission Rate (LAER) or going through NNSR review, and installing
appropriate emission control equipment in accordance with a LAER analysis.
New Source Performance Standard
51. IPL's Units 3 and 4 violated and continues to violate NSPS Subpart D by exceeding the
applicable opacity limit.
52. IPL's Units 3 and 4 violated NSPS Subpart D by emitting SO2 in excess of the
applicable limit.
Indiana State Implementation Plan
53. IPL's Units 1, 2, 3 and 4 violated and continues to violate 326 lAC 5-1-2 of the Indiana
Sff by exceeding the applicable opacity limit.
ENFORCEMENT
54. Section 113(a)(1) of the Act, 42 U.S.C. § 7413(a)(1), provides that at any time after
the expiration of 30 days following the date of the issuance of a Notice of Violation, the
Administrator may, without regard to the period of violation, issue an order requiring compliance
with the requirements of the state implementation plan or permit, issue an administrative penalty
order pursuant to Section 113(d), or bring a civil action pursuant to Section 113(b) for injunctive
relief and/or civil penalties.

 55. Section 113(a)(3) of the Act, 42 U.S.C. § 7413(a)(3), provides in part that if the
Adrninistrator finds that a person has violated, or is in violation of any requirement or prohibition
of any rule.. .promulgated.. .under..: [Title I or Title V of the Act], the Administrator may issue
an administrative penalty order under Section 113(d), issue an order requiring compliance with
such requirement or prohibition, or bring a civil action pursuant to Section 113(b) for injunctive
relief and/or civil penalties.

Date

George^Cz^am:
Director
Air and Radiation Divisio

10

 CERTIFICATE OF MAILING
I, Kathy Jones, certify that I sent a Notice and Finding of Violation, No. EPA-5-16-IN-03, by
Certified Mail, Return Receipt Requested, to:
JefFHarter, Environmental Manager
Indianapolis Power & Light Company
Petersburg Generating Station
6925 N. State Road 57
P.O. Box 436
Petersburg, Indiana 47567-0436
I also certify that I sent copies of the Notice of Violation and Finding of Violation by first-class
mail to:
Phil Perry, Branch Chief
Office of Air Quality / Compliance Branch
Indiana Department of Environmental Management
1 GO North Senate Avenue/Room IGCN 1003
Indianapolis, Indiana 46204-2251

On the

day of

2016.

\Loi^
Kathy Jones
Program Technician
AECAB, PAS

CERTIFIED MAIL RECEIPT NUMBER:

10I4 7^0 COC)l qSTTl g6S7