Home > Top Stories from the Indiana Chapter > As Ethanol Plant Pollutes, Where is IDEM Enforcement?

As Ethanol Plant Pollutes, Where is IDEM Enforcement?

Article published Oct 5, 2007
State eyes penalty for New Energy
Issue has to do with coal burner at the ethanol plant.

NANCY J. SULOK
South Bend Tribune Staff Writer

SOUTH BEND -- Officials with the Indiana Department of Environmental Management are considering whether to sanction the New Energy Co. of Indiana for operating a coal-fired boiler above its permitted level.

IDEM learned of the violation in August 2006, then confirmed it during an inspection in March, according to a field inspection report issued April 5.

Richard W. Reynolds, environmental manager for IDEM's northern regional office in South Bend, said IDEM sent New Energy a certified letter in July to inform the company of the violation.

Local IDEM officials also sent the field inspection report to the IDEM state office in Indianapolis.

Rob Elstro, public information officer at IDEM's Indianapolis office, said the matter is pending while IDEM works with New Energy to resolve the violation.Nate Kimpel, New Energy's president, is out of town until next week and unavailable for comment. No other person at the company is authorized to speak to the media, according to a woman who answered the phone there.

New Energy has a permit issued in February 1982 by the St. Joseph County Health Department to operate its coal burner at 342.6 million Btu per hour. The March inspection found that the boiler was operating at 401 million Btu per hour.

New Energy is an ethyl alcohol production facility in the southwest part of South Bend. It produces fuel-grade alcohol known as ethanol from shelled corn. The company also sells byproducts, including dried grain that is sold as an animal feed supplement.

The boilers provide heat for the fermenting process.

Reynolds' inspection report said he talked to Michael Craig, a New Energy official, about the increase."I asked how long it had operated above this limit,'' Reynolds wrote in the report. "He (Craig) stated that he operated above the limit after the boiler was rated at a 414 MMBtu per hour rate by Babcock Power Services Inc. in 2003. He did not know the exact date.''

Reynolds' report notes that New Energy submitted an application on Nov. 17, 2003, to increase the boiler rate. The request has not been approved.

During an interview in his downtown office, Reynolds said IDEM's position is that New Energy built and operated the higher-capacity burner without proper permits. The violation has a higher potential for a fine than a less serious offense, he said.

His inspection report says he talked to Craig about the violation and notified him that he would seek enforcement.

"He stated that the company position was that even though they were exceeding the 342.6 MMBtu per hour rate, they were not violating any emissions limits,'' Reynolds reported.Reynolds said it is difficult to say whether the violation results in more air pollution.

"That's something to be determined,'' he said.

The violation involves only air quality standards. South Bend officials also have been working with New Energy to resolve complaints about waste that settles and rots in city sewers.

Meanwhile, another violation is pending against New Energy. An inspection in March 2006 revealed that the company had failed to install and certify equipment to monitor nitrogen oxide emissions.

The emissions were not monitored during 2003, 2004 and 2005, according to the field inspection report. Reynolds said New Energy had not installed the equipment by the deadline set by IDEM, but it is in place now.