SDI owns and operates a steel mini-mill at 4500 County Road 59, Butler, Indiana. SDI is a major stationary source, which has the potential to emit 250 tons per year or more of any pollutant subject to regulation under the Act. SDI owns and operates an EAF for use in the production of specialty steels. Therefore, SDI is subject to the NSPS for steel mills at 40 C.F.R. �� 60.270a.
40 C.F.R. �� 60.270a(a)(2) establishes an opacity limit of 3 percent.
On October 7, 1994, the Indiana Department of Environmental Management (IDEM) issued PSD permit CP033-3692 to SDI, which outlined emission limits for SDI���s EAF. This permit included a nitrogen oxides (NOx) limit of 0.51 pounds per ton. On June 25, 1997, IDEM issued PSD permit CP033-8091 when, among other things, SDI added a second EAF to its Butler facility. This permit included a NOx limit of 0.51 pounds per ton and an opacity limit of 3 percent.
On September 27, 2001, U.S. EPA issued to SDI a finding of violation and notice of violation (FOV/NOV) alleging that based on COM data listed on SDI���s Quarterly Opacity Monitor and Downtime Reports from 1998 and 1999, SDI violated the NSPS for steel mills by causing to be discharged into the atmosphere from an EAF gases which exit from a control device and exhibit 3 percent opacity or greater.
The September 2001 FOV/NOV also alleged that based on stack tests results from tests conducted on November 17-20, 1998, and February 2-3, 1999, SDI violated i