DAQ-2024-004780

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF AIR QUALITY
Bryce C. Bird
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
DAQC-076-24
Site ID: 10129 (B1)

Sent Via Certified Mail No. 70190700000208346634

Nathan Rich
Wasatch Integrated Waste Management District
P.O. Box 900
Layton, Utah 84041-0900

Sent Via Certified Mail No. 70190700000208346641

Bryan Black
Nodal Power, Inc.
250 East 200 South, Suite 310
Salt Lake City, UT 84111

Dear Mr. Rich and Mr. Black:

Re: Early Settlement Agreement – Wasatch Integrated Waste Management District and Nodal
Power, Inc., Davis County

On September 25, 2023, the Utah Division of Air Quality (DAQ) received a Stack Test Report for
Nodal Power, Inc.’s (Nodal Power) Landfill Gas Generator (LFG) as a result of testing performed
on August 10, 2023. Based on the results of the stack test, the DAQ determined that Wasatch
Integrated Waste Management District (Wasatch) and Nodal Power were in violation of:

1. Utah Administrative Code (UAC) R307-401-8 and condition II.B.3.d of the Title V
Operating Permit 1100033003, Date of Last Revision November 30, 2022 (Permit):

Carbon monoxide emissions were found in excess of 2.5 g/hp-hr.

2. UAC R307-415-6a and condition I.S.2.c of the Permit:

Failure to submit a Deviation Report within 7 days.

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DAQC-076-24
Page 2

Section 19-2-115 of the Utah Code provides that violations of the Utah Air Conservation Act (the
Act) or any order, rule, or permit issued thereunder may be subject to a civil penalty of up to
$10,000 per day for each violation. Based on our civil penalty policy (UAC r. R307-130), we
calculated a preliminary civil penalty for the above-listed violation(s) of $4,000.

The monetary amount of the DAQ settlement offer specified below is derived from a
pre-established schedule of penalties, which takes into account, among other factors, the
magnitude and severity of the violation, cooperation of the source as well as the prior history of
violations. See UAC r. R307-130-3 (DAQ Penalty Policy). The amount of economic benefit to the
source of non-compliance could also be added to any penalty amount determined under the DAQ
Penalty Policy. See id. r. R307-130-3(4). Economic benefit was not added to the penalty in this
settlement offer. See the attached penalty worksheet for details.

All parties we deal with, whether private, commercial, or governmental are treated similarly in the
settlement process. Early Settlement Agreements are based on the evaluation of the same factors
and criteria in all cases. The DAQ acknowledges that on December 5, 2023, the source was
re-tested and the emissions were below the permitted limit. In addition, the DAQ has received a
Deviation Report for the stack-testing violations described above.

If you are interested in settling these violations, we are authorized to offer a settlement in
accordance with the DAQ Penalty Policy as follows:

1. Wasatch and Nodal Power agree to pay a reduced civil penalty of $3,200. Payment of a
civil penalty precludes further civil enforcement for the above-described violations against
the named sources. Wasatch and Nodal Power agree to pay $3,200 of the stipulated
penalty within twenty (20) business days from the date the companies receive this Early
Settlement Agreement.

2. The DAQ retains its authority to take any enforcement actions based on all violations not
specifically described above.

3. In the event any further violations of the Act, the Utah Air Quality Rules
(UAC r. R307-101 through R307-842), the source’s Permit, or the Director’s Orders occur,
the DAQ may consider the violations described above in assessing a penalty for the
subsequent violations, in accordance with the provisions of UAC R307-130.

4. Entering into this Early Settlement Agreement shall not constitute an admission of
violations of the Act, the Utah Air Quality Rules, or the source’s Permit nor shall it be
inferred to be such an admission in any administrative or judicial proceeding. The
above-described violations will constitute part of the company compliance history for any
purpose for which such history is relevant to the DAQ.

DAQC-076-24
Page 3

At the DAQ’s option, you may request a portion of the calculated civil penalty gravity component
to be used to complete a Supplemental Environmental Project (SEP). You may also elect a portion
of the penalty to be deposited into the Utah Environmental Mitigation Fund to benefit present and
future air quality within Utah. For more information, please contact the DAQ representative listed
below.

This Early Settlement Agreement constitutes an offer of settlement and is not a demand for
payment. The Early Settlement Agreement reflects a reduced penalty for early settlement of this
matter.

If the above terms are acceptable to you, please sign and return this Early Settlement Agreement
and a check in the sum of $3,200. Submit the signed Early Settlement Agreement and check made
payable to the DAQ at the letterhead address within twenty (20) business days of receipt of this
Early Settlement Agreement. Electronic payments are also available on our website at:
https://deq.utah.gov/general/payment-portal.

You may write or call to request a settlement conference with the DAQ representative listed
below. A conference must be scheduled within twenty (20) business days of your receipt of this
Early Settlement Agreement. If we do not receive a signed copy of this Early Settlement
Agreement and payment or other correspondence from you within twenty (20) business days of
your receipt, we will assume that you are not interested in resolving this matter as outlined above.

This Early Settlement Agreement is intended to quickly resolve the non-compliance issues listed
above and requires the immediate attention of your company. Failure to resolve this matter as
outlined above may result in this offer being revoked and/or having this matter referred to a
formal enforcement process, including filing a judicial case to collect penalties (up to $10,000 per
day for each violation) and compel compliance in the state district court.

If you have any additional questions regarding this matter, please contact Paul Morris at
385-306-6534 or by email at [e-mail].

Sincerely,

Bryce C. Bird
Director

BCB:HB:PM:rh

cc: Davis County Health Department

DAQC-076-24
Page 4

Acceptance of Early Settlement Agreement

I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.

Wasatch Integrated Waste Management District:

Name:

Title:

_____________________________ _________________ ___________________________
Signature Date Telephone Number

Nodal Power, Inc.:

Name:

Title:

_____________________________ _________________ ___________________________
Signature Date Telephone Number

DAQC-076-24
Page 5

Utah Division of Air Quality General Administrative Penalty Worksheet

Source: Landfill Gas
Generator
Class: Major
Site ID #: 10129 Violation Date(s): 08/10/2023 & 08/17/2023
HPV: No Days to
Resolution: 167

Citation Description of the
Violation Days Category Range Daily
Penalty
Accumulated
Penalty
R307-401 Exceeded CO
emission limit 1 B
$2,000
to
$7,000
$3,500 $3,500
R307-415
Failed to submit a
Deviation Report
within 7 days
1 C Up to
$2,000 $500 $500

Total $4,000
20%
discount $800
Total
Penalty $3,200

R307-130-1.
Scope.

This policy provides guidance to the director in negotiating with air pollution sources penalties for
consent agreements to resolve non-compliance situations. It is designed to be used to determine a
reasonable and appropriate penalty for the violations based on the nature and extent of the violations,
consideration of the economic benefit to the sources of non-compliance, and adjustments for specific
circumstances.

R307-130-2.
Categories.

Violations are grouped in four general categories based on the potential for harm and the nature and
extent of the violations. Penalty ranges for each category are listed.

(1) Category A. $7,000-10,000 per day.

Violations with high potential for impact on public health and the environment including:

(a) Violation of emission standards and
limitations of NESHAP.
DAQC-076-24
Page 6

(b) Emissions contributing to nonattainment
area or PSD increment exceedances.

(c) Emissions resulting in documented public health effects
and/or environmental damage.

(2) Category B. $2,000-7,000 per day.

Violations of the Utah Air Conservation Act, applicable State and Federal
regulations, and orders to include:

(a) Significant levels of emissions resulting from violations of emission limitations or
other regulations which are not within Category A.

(b) Substantial non-compliance with
monitoring requirements.

(c) Significant violations of approval orders, compliance orders, and
consent agreements not within Category A.

(d) Significant and/or knowing violations of "notice of intent" and other notification
requirements, including those of NESHAP.

(e) Violations of reporting requirements of
NESHAP.

(3) Category C. Up to $2,000 per day.

Minor violations of the Utah Air Conservation Act, applicable State and Federal Regulations and orders
having no significant public health or environmental impact to include:

(a) Reporting
violations

(b) Minor violations of monitoring
requirements, orders and agreements

(c) Minor violations of emission limitations
or other regulatory requirements.

(4) Category D. Up to $299.00.

Violations of specific provisions of R307
which are considered minor to include:

(a) Violation of automobile emission
standards and requirements

(b) Violation of wood-burning regulations
by private individuals
DAQC-076-24
Page 7

(c) Open burning violations by private
individuals.

R307-130-3.
Adjustments.

The amount of the penalty within each category may be adjusted and/or suspended in
part based upon the following factors:

(1) Good faith efforts to comply or lack of good faith. Good faith takes into account the openness in
dealing with the violations, promptness in correction of problems, and the degree of cooperation with the
State to include accessibility to information and the amount of State effort necessary to bring the source
into compliance.

(2) Degree of willfulness and/or negligence. In assessing willfulness and/or negligence, factors to be
considered include how much control the violator had over and the foreseeability of the events
constituting the violation, whether the violator made or could have made reasonable efforts to prevent
the violation, and whether the violator knew of the legal requirements which were violated.

(3) History of compliance or non-compliance. History of non-compliance includes consideration of
previous violations and the resource costs to the State of past and current enforcement actions.

(4) Economic benefit of non-compliance. The amount of economic benefit to the source of non-
compliance would be added to any penalty amount determined under this policy.

(5) Inability to pay. An adjustment downward may be made or a delayed payment schedule may be used
based on a documented inability of the source to pay.

R307-130-4.
Options.

Consideration may be given to suspension of monetary penalties in trade-off for expenditures resulting
in additional controls and/or emissions reductions beyond those required to meet existing requirements.
Consideration may be given to an increased amount of suspended penalty as a deterrent to future
violations where appropriate.