ILLINOIS POLLUTION CONTROL BOARD

December 20, 1995

PEOPLE OF THE STATE

)

OF ILLINOIS,

)

Complainant,

)

v.

)

PCB

 96—103

)

 (Enforcement-Air)

CENTRAL

DECAL

COMPANY,

)

Illinois

corporation,

)

Respondent.

OPINION AND ORDER OF THE BOARD:

This matter comes before the Board upon a three-count

complaint filed November

13,

 1995 by the Attorney General of the

State of Illinois, on behalf of the Illinois Environmental

Protection Agency and the People of the State of Illinois,

against

Central

 Decal Cnmpany

 (CentraL Decal),

 an Illinois

corporation,

 as respondent,

 located at 6901 High Grove Blvd.,

Burr Ridge, DuPage County, Illinois.

 The complaint alleges that

Central Decal has violated Sections 9(a)

 and 9(b)

 of the Illinois

Environmental Protection Act

 (Act), 415 ILCS

 5/9(a),

 5/9(b) and

35 Ill. Adm. Code 201.142,

 201.143 and 218.204(c)

 by constructing

and operating emission sources without the proper permits and by

causing or allowing emission violations.

Pursuant to 415 ILCS 5/31(a) (2), the parties filed a joint

motion

requesting

relief

from

the

Act’s hearing requirement on

November 13,

 1995.

 The Board published a notice of the waiver on

November 17,

 1995; no objection to the granting of the waiver was

received.

 Waiver of hearing is hereby granted.

The parties filed a Stipulation and Settlement Agreement on

November 13,

 1995.

 The Stipulation sets forth facts relating to

the nature, operations and circumstances surrounding the claimed

violations.

 Central Decal neither admits or denies the alleged

violations and agrees to pay a civil penalty of twelve thousand

dollars

 ($12,000.00).

The Board finds the settlement agreement acceptable under 35

Ill.

 Adm. Code 103.180.

 This settlement agreement in no way

affects respondent’s responsibility to comply with any federal,

state or local regulations, including but not limited to the Act

and the Board’s pollution control regulations.

This opinion constitutes the Board’s findings of fact and

conclusions of law in this matter.

2

ORDER

1)

 The Board hereby accepts the Stipulation and Settlement

Agreement executed by the People of the State of

Illinois and Central Decal Company,

 an Illinois

corporation, as respondent, located at 6901 High Grove

Blvd., Burr Ridge, DuPage County,

 Illinois.

The

Stipulation and Settlement Agreement are incorporated

by reference as though fully set forth herein.

2)

 Central Decal shall pay a civil penalty of twelve

thousand dollars

 ($12,000.00) within

30

days of the

date of this Order.

 Such payment shall be made by

certified check or money order payable to the Treasurer

of the State of Illinois, designated to the

Environmental Protection Trust Fund, and shall be sent

by First Class mail to:

Illinois Environmental Protection Agency

Fiscal Services Division

2200 Churchill Road

P.O. Box 19276

Springfield,

 IL 62794—9276

The certified check or money order shall clearly

indicate on its face Central Decal’s Federal Employer

Identification Number 36—2663242 and that payment is

directed to the Environmental Protection Trust Fund.

A copy of the payment check shall be sent to:

Zemeheret Bereket-Ab

Assistant Attorney General

Environmental Bureau

100 W. Randolph

Chicago, Illinois

60601

Any

such penalty not paid within the time prescribed

shall incur interest at the rate set forth in

subsection

(a)

 of Section 1003 of the Illinois Income

Tax Act,

 (35 ILCS 5/1003), as now or hereafter amended,

from the date payment is due until the date payment is

received.

 Interest shall not accrue during the

 pendency of an appeal during which payment of the

penalty has been stayed.

3)

 Central Decal shall cease and desist from the alleged

violations.

IT

 IS SO ORDERED.

3

Board

Member

Theodore

Meyer

concurred.

Section 41 of the Environmental Protection Act (415 ILCS

5/41) provides for the appeal of final Board orders within 35

days of the date of service of this order.

 (See also 35 Ill.

Adm.

 Code 101.246, Motion for Reconsideration.)

I, Dorothy N.

 Gunn,

 Clerk of the Illinois Pollution Control

Board, hereby certiftthat the above opinion and order was

adopted on the

~i~T~-’

 day of __________________,

 1995,

 by a

vote of

_________

Dorothy M.,4ann,

 c(lerk

Illinois Vy&lution Control Board

BEFORE THE ILLINOIS

POLLUTION

CONTROL

BQARD~:,::T.-~___~

PEOPLE OF THE STATE OF ILLINOIS,

)

Complainant,

)

PCB

96—/O

)

 (Enforcement)

CENTRAL

DECAL COMPANY, an Illinois

)

Corporation,

Respondent.

STIPULATION AND PROPOSAL FOR SETTLENEZff

Complainant,

 PEOPLE OF THE STATE OF ILLINOIS, by JAMES E.

 RYAN,

Attorney General of the

State

of Illinois, on his own motion and

at the request of the Illinois Environmental Protection Agency,

and Respondent,

CENTRAL

DECAL

COMPANY,

hereby

submit

this Stipulation and Proposal for Settlement.

 The parties agree

that

the

statement

facts

contained

herein

made

and

agreed

upon

for purposes of settlement only and that neither the fact that

a

party has entered into this Stipulation and Proposal for Settlement,

nor

any

the

facts

stipulated

herein,

shall

introduced

into

evidence

this

any

other

proceeding

except

enforce

the

terms

hereof

the

parties

this

agreement.

Notwithstanding

the

foregoing,

 this Stipulation and Proposal for Settlement and any

order entered by the Illinois Pollution Control Board (“Board”)

accepting same may be used in any future enforcement action as

evidence of a past adjudication of violation of the Illinois

Environmental Protection Act

 (“Act”)

 for purposes of Section 42(h)

of the Act, 415 ILCS 5/42(h)

 (1994).

 This Stipulation and Proposal

for Settlement shall be null and void unless the Board approves and

disposes of this matter on each and every one of the terms and

conditions of the settlement set forth herein.

I.

JURISDICTION

The Board has jurisdiction of the subject matter herein and

of the parties consenting hereto pursuant to the Act, 415 ILCS

5/1

seq.

(1994)

II.

AUTHORJZATION

The undersigned representatives for, each party certify that

they are fully authorized by the party whom they represent to

enter into the terms and conditions of this Stipulation and

Proposal for Settlement and to legally bind them to it.

III.

APPLICABILITY

This Stipulation and Proposal for Settlement ahall apply to

and be binding upon the Complainant and Respondent and any officer,

agent, employee or servant of Respondent,

 as well as the

Respondent’s successors and assigns.

 The Respondent shall not raise

as a defense to any enforcement action taken pursuant to this

settlement the failure of its officers, directors, agents,

 servants

or employees to take such action as shall be required to comply with

the provisions of this settlement.

2

iv.

STATEMENT

FACTS

I.

 The Illinois Environmental Protection Agency (“Agency”)

is

an administrative agency established in the executive branch of the

State government by Section 4 of the Act,

 415 ILCS 5/4

 (1994), and

charged,

 inter

alia,

with the duty of enforcing the

Act.

2.

 Respondent, Central Decal

 Company,

 (“Central Decal”)

 is an

Illinois corporation with a manufacturing plant located at 6901 High

Grove Blvd., Burr Ridge, DuPage County,

 Illinois

 (“Burr Ridge

Facility”).

 Respondent previously owned and operated a second

facility located at ?025 South

New

Rngland,

 Chicago, Cook County,

Illinois

 (“Chicago Facility”)

 from a date better known to Central

Decal until on or about July 25,

 1994.

3.

 At all times relevant to the Complaint, Central Decal

manufactures decals for the automotive industry.

 To manufacture

decals for the automotive industry,

 Central Decal employs

 a number

of emission sources.

 The sources which are the subject matter of

this stipulation are

three

solvent laminators,

 Live screen printing

presses, one ink mixing booth and one ultra-violet

 (“liv”)

 laminator.

4.

 Section 201.102 of the Board’s Air Pollution Regulations,

35 Ill. Adm. Code 201.102, provides,

 in pertinent part,

the

following definitions:

“Construction”:

 commencement of on-site

fabrication, erection or installation of an

emission source or of air pollution control

equipment.

“Emission Source”:

 any equipment or facility

of a type capable of emitting specified air

contaminants to the atmosphere.

“New

Emission

Source”:

any

emission

source,

i-he construction or modification of which is

~menced on or after April

14,

 1972.

‘Specified Air Contaminant”:

 any air

contaminant as to which this Subtitle

contains emission standards or other specific

limitations and any contaminant regulated in

Illinois pursuant to Section

9.1

 the Act.

5.

 The three laminators,

 five screen printing presses, one UV

laminator,

 and one ink mixing booth, are capable of emitting

volatile or~inicmaterial

(“VOM”),

 specified air contaminant, into

the

~ms

 of equipment listed herein were

constructed after April

14,

r

emission sources as

that term is defined in 35 Ill. Adm. Code 201.102.

6.

 Section 9(a) and

 (b) of the Act, 415 ILCS 5/9(a) and

(b) (1994),

 provides:

No person shall:

a.

 Cause or threaten or allow the discharge

or emission of any contaminant into the

environment in any State so as to cause

or tend to cause air pollution in

Illinois, either alone or in combination

with contaminants from other sources,

or

so as to violate regulations or

standards

adopted

the

Board under

this

Act;

b.

 Construct,

 install,

 or operate any

equipment,

 facility, vehicle, vessel, or

aircraft capable of causing or

contributing

air

pollution

designed

 prevent air pollution,

of

any

type

 designated by Board

regulations,

 without

 permit granted by

the Agency,

 or in violation of any

conditions

imposed

such

permit.

 Sections 201.142 and 201.143 of the Board’s Air Pollution

Regulations,

 35 Ill. Adm. Code 201.142 and 201.143, provide:

4

Section 201.142

 Construction Permit Required

No person shall cause or allow the construction

of any new emission source or any new pollution

control equipment,

 or cause or allow the

modification of any existing emission source or

air

pollution control equipment,

 without first

obtaining a construction permit from the

Agency,

 except as provided in Section 201.146.

Section 201.143

 Operating Permits for

New

Sources

No person shall

cause or allow the operation of

any new emission source or new air pollution

control equipment of a type for which a

construction permit is required by Section

201.142 without first obtaining an operating

permit from the Agency,

 except for such testing

operations as may be authorized by the

construction

pcrmit.

Applications

for

operating permits shall be made at such times

and contain such information (in addition to

the information required by Section 201.157)

as

shall be specified in the construction permit.

8.

 Section 218.204(c)

 of the Board’s Air Pollution

Regulations,

 35 Ill. Adm. Code 218.204(c),

 titled, Emission

Limitations,

provides,

pertinent

part:

Except as provided in Section 218.208 of this

Part, no owner or operator of a

coating

line

shall apply at any time any coating in which

the VOM content exceeds the following emission

limitations

 for the specified coating.

c)

 Paper coating

 kgfl

 lb/gal

0.35

 (2.9)

V.

At,14GE0 VIOLATIONS

Complainant

alleges

that

Central

 Decal operated each

emission source described herein at its Chicago facility.

2.

 Complainant alleges that on or about December 1993,

Central Decal converted one solvent laminator into a thermal

laminator/corona treater, which Central Decal thereafter designated

corona

laminator.

Complainant

alleges

that

Central

Decal

 removed one corona

laminator and one solvent laminator from its Chicago Facility and

constructed each emission source at its Burr Ridge Facility,

sometime

prior

September

23,

 1994,

 on a date or dates better

known to Respondent,

 without first applying for and obtaining a

construction permit from the Agency.

4.

 Complainant alleges that Central Decal constructed one DV

laminator at its Burr Ridge facility in March 1994, on a date better

known to Respondent,

 without first applying for and obtaining a

construction permit from the Agency.

5.

Complainant

 alleges that from at least August 16,

 1991,

to on or about December 28,

 1993,

on dates better known to Central

Decal, Respondent operated unpermitted one solvent laminator and one

corona laminator at its Chicago Facility.

 On or about September

1994, Central Decal discontinued the use of a third laminator

located at the Chicago Facility,

 on a date better known to

Respondent.

 Central Decal operated each emission source without

first applying for and obtaining an operating permit from the

Agency.

6

6.

 Complainant alleges that from at least August 16,

 1991,

and ending prior to December 28,

 1993,

 Central Decal operated one

solvent laminator,

 one corona laminator,

 five screen printing

presses and one ink mixing booth at its Chicago Facility, without

first

 applying for and obtaining an operating permit from the

Agency~

 Further,

 Complainant alleges that from on or about December

28,

 1993,

 to September 23,

 1994,

Central

 Decal operated each

emission source at its Burr Ridge facility without first applying

for and obtaining an operating permit from the Agency.

 On September

29,

 1994, operating permit number 931000006 was issued for each

emission source.

7.

 Complainant alleges that from March 1994 to the present,

Central Decal has operated one UV laminator at its Burr Ridge

facility without first applying for and obtaining an operating

permit from the Agency.

8.

 Complainant alleges that since at least August 16,

 1991,

and continuing until on or about September 23,

 1994,

 on a date

better known to Respondent,

 Central Decal has caused or allowed the

use of coatings with a VOM content in excess of 2.9 lb/gal.

On

September 23,

 1994, the Agency issued operating permit number

93100006 to Central Decal.

Complainant

 alleges that Central Decal’s acts and

omissions constitute violations of Section 9(a) and

 (b) of the Act,

415 ILCS 5/9(a) and

(b)

 (1994), and

Sections

 201.142, 201.143, and

218.204(c) o~the board’s Air Pollution Regulations,

35

 Ill.. Adm.

Code 201.142, 201.143 and 218.204(c).

7

VI.

NATURE

OP

RESPONDENT’ S

OPERATIONS

AND

CONTROL

EOUIPNENT

At its Burr Ridge Facility,

 Central Decal manufactures safety

decals for the automotive industry.

 These safety

decals

must

the type that resist chemical attack from gasoline,

 battery acid,

high temperatures, abrasion and extreme cold.

 In the production of

safety decals, Central Decal uses both thermal and ultraviolet

lamination.

VII.

EXPLANATIOI!

PAST

FAILURES TO COMPLY WITH THE A~I

Respondent contends that it does not use paper coatings,

as

alleged by Complainant, but instead uses acrylate resin coatings

and,

 as such,

 the 2.9 lb/gal limitation does not apply to acrylate

resin

coatings.

 Furthermore, Central Decal contends that it was in

the process

 of developing alternative non-polluting technologies

such as thermal and ultraviolet lamination as an alternative to

incineration.

VIII.

FUTURE PLANS

OP

COMPLIANCE

Respondent, Central Decal shall adhere to the permitting

requirements and emissions limitations imposed by Board regulations.

Further, Central Decal shall apply for and nbtain an operating

permit from the Agency for the one

 till laminator.

Ix.

IMPACT ON

 ‘JThIE PUDLXC

RESULTING

FROM NON-COMPLIANCE

Section 33(c)

 of the Act, 415 ILCS 5/33(c)

 (1994), provides:

In making its orders and determinations,

the

Board

shall

 take into consideration all the

facts and circumstances bearing upon the

reasonableness of

 ttte emissions, discharges,

or deposits involved including,

 but not

limited

to:

1.

 the character and degree of injury to,

or interference with the protection of

the

health,

general

welfare

and

 physical

property of the people;

2.

 the social and economic value of the

pollution

source;

3.

 the suitability or unsuitability of the

pollution source to the area in which it

is located,

 including the question of

priority of location in the area

involved;

4.

 the technical practicability and

economic reasonableness of reducing or

eliminating the emissions,

 discharges or

deposits resulting from such pollution

source; and

S.

 any subsequent compliance.

 response to these factors the parties state

 follows:

1.

 Impact to the public resulting from Central Decal’s

failure to comply with the Act and the Board’s permit regulations

was that the Agency and the public were not privy to information

that is important to the monitoring of various emission sources.

The permit process

 is the only method available for the State to

identify and monitor emission sources, and their potential

environmental impact.

 Furthermore,

 the discharge of emissions of

grcater

than

2.9

lbs/gal

VOM

potentiai.

1ieaitfl

hazard.

2.

 The parties agree that Central Decal’s manufacture of

safety decals for the automotive industry is of social and economic

value.

3.

 Respondent’s operation at the Facility are suitable to the

area in which the Facility is located.

4.

 Central Decal agrees that it was technically practic-

able and economically reasonable for Respondent to apply for and

obtain the requisite permits from the Agency before it commenced

construction and operation of the various emission sources mentioned

herein.

5.

 Central Decal came into compliance on or about September

23,

 1994,

 by developing both thermal and ultraviolet lamination

technologies to reduce the emissions from the various sources.

At

present, all emission sources at the Burr Ridge Facility are

permitted except, one remaining solvent laminator transferred from

Central Decal’s Chicago Facility to a storage area located in Burr

Ridge,

 in addition to one UV laminator.

x.

CONSIDERATION

SECTION

42(b)

FACTORS

Section 42(h) of the Act, 415 ILCS 5/42(h)

 (1994), provides:

In determining the appropriate civil penalty

to be imposed under subdivisions

 (a),

 (b) (1),

(b) (2), or

 (b) (3) or

 (b) (5)

 of this Section,

the

Board

authorized

consider

any

matters

of record in mitigation or aggravation of

penalty, including but

not limited to

the

following

factors:

(1)

 the duration and gravity of the

violation;

10

(2)

 the presence or absence of due diligence

on the part of the violator in

attempting to comply with the

requirements of this Act and regulations

thereunder or to secure relief therefrom

as

provided

 by this Act;

(3)

 any economic benefits accrued by the

violator because of delay in compliance

with requirements;

(4)

 the amount of monetary penalty which

will serve to deter further violations

by the violator and

to

otherwise aid in

enhancing voluntary compliance with this

Act by the violator and other persons

 similarly subject to the Act; and

(5)

 the number, proximity in time,

and

gravity of previously adjudicated

violations of this Act by the violator.

In response to these factors the parties state as follows:

From

 at least August

16,

 1991,

 and continuing to September

23,

 1994,

 Central Decal operated without the requisite Agency

permits, and caused or allowed the discharge of emissions greater

than 2.9 lbs/gal of volatile organic materials from the three

solvent

laminators

the

Chicago

Facility.

With

respect

gravity, the Chicago Facility is located in a non-attainment area

for

ozone.

2.

 Central Decal has demonstrated due diligence in attempting

to comply with the requirements of the Act and regulations

thereunder through research and development of new compliant thermal

and

ultraviolet

laminating

technologies

 an estimated total

expenditure of $300,000.00.

3.

 Central Decal accrued economic benefits by continuing to

operate three laminators in violation of the Act and regulations

1.

thereunder

during

the

development

 new compliant thermal and

ultraviolet laminating technologies, and by not paying annual site

fees for the period during which emission sources were operated

unpermitted at Central Decal’s Chicago Facility.

4.

 A civil penalty of twelve thousand dollars

 ($12,000.00)

reasonable

based

the

duration

and

nature

the

violations

and

will serve to deter further violations of the Act and Board

regulations and will also aid in enhancing

voluntary

compliance

with

the requirements of the Act.

S.

 Complainants records do not reflect previously

adjudicated violations of the Act by Central Decal.

XI.

TERMS OF SETTLEMENT

1.

 Respondent, Central Decal, neither admits nor denies to

past

violations

Section

9(a)

and

(b)

the

Act,

415

fl,CS

 5/9(a)

and

(b)

(1994),

and

Ill.

Adm.

Code

201.142,

201.143

and

216.204(c).

2.

 Respondent, Central Decal,

 shall pay a civil penalty

of $12,000.00

 (twelve thousand dollars) into the Illinois~

Environmental Protection Trust Fund within thirty (30)

 days from

the date on which the Board adopts a final order approving this

Stipulation and Proposal for Settlement.

 Payment shall be made

by certified check or money order,

 payable to the Treasurer of

the State of Illinois, designated

to

the Illinois Environmental

Protection Trust Fund, and shall be sent by first class mail to:

12

Illinois

Environmental

Protection

Agency

Fiscal Services Section

2200 Churchill Road

P.O. Box 19276

Springfield,

 IL 62794-9276

Respondent’s Federal Employers Identification Number

 is 36-26~3242

which shall appear on the face of the certified check or

money

order.

 A copy of the certified check shall be sent to:

Zemeheret

Bereket-Ab

Acciotant Attorney General

Environmental Bureau

100 W.

 Randolph St., 12th Floor

Chicago,

Illinois

60601

Pursuant

to.Section

42(g)

the

Act,

415

ILCS

5/42(g)

(1994),

 interest shall accrue on any penalty amount not paid within

the time prescribed herein,

 at the maximum rate allowable under

Section 1003(a)

 of the Illinois Income Tax Act,

 35 ILCS 5/1003 (a)

(1992)

a.

 Interest on unpaid penalties shall begin to accrue

from the date the penalty payment

 is due and

continue

 to accrue to the date payment is received.

Where

partial

payment

made

any

payment

amount

that is due, such partial payment shall be first

applied to any interest on unpaid

penalties

then

owing.

All

 interest on penalties owed the Plaintiff,

 shall

paid

certified

 check payable to the Treasurer

of the State of Illinois for deposit in the

Environmental

Protection

 Trust

Fund

and

delivered

the

same

manner

described

paragraph

herein.

4.

 Central Decal shall not utilize the third laminator

located at its Burr Ridge facility, without first applying for and

obtaining the requisite permit from the Agency.

Respondent,

Central

Decal,

shall

cease

and

desist

front

future violations of the Act and regulations promulgated thereunder.

13

6.

 central Decal shall apply for and obtain

an operating

permit for one

 TJII laminator from the Agency.

7.

 Respondent shall comply with all requirements of the Act

and the permitting requirements and air emissions limitations

promulgated in the Board’s Air Pollution Regulations.

XIX.

COMPLIANCE

WITH

OTHER

 LAWS AND REGtTLAflONS

This Stipulation and Proposal for Settlement in no way

affects

Respondent’s

responsibility

comply

with

 any federal,

state

local

regulations,

including

but

 not limited to, the

Act,

415

ILCS

5/1

~g.

(1994),

and

the

Board’s

Air

Pollution

Regulations,

35

Ill.

Adm.

Code

Subtitles

A through

H.

XIII.

~QHT

 OF~ENTRY

In addition to any other authority at

 law,

 the Agency,

its

employees

 and representatives,

 and the Illinois Attorney General,

his agents and representatives,

 shall

have

 the right of entry to

Central Decal’s facilities at all reasonable times,

 for the

purposes of conducting inspections.

 The Agency,

 its employees

and

representatives,

 and the Attorney General, his agents and

representatives, may take any photographs or samples as they deem

necessary in order to conduct their inspection.

14

XIV.

RELEASE FROMJ,IABILIfl

consideration

 Respondent’s payment of a $12,000.00

(twelve

thousand

 dollars)

 civil penalty,

 commitment to apply for and

obtain a permit to operate one UV laminator,

 and commitment to

refrain from further violations of the Act and regulations

promulgated thereunder, the

Complainant

releases, waives and

discharges Respondent from any further liability or penalties from

violations of the Act which were the subject matter of the

Complaint herein.

 However, nothing in this Stipulation and

Proposal for Settlement shall be construed as

 a waiver by

Complainant of the right to redress future violations or obtain

penalties with respect thereto.

WHEREFORE,

Complainant and Respondent request that the Board

adopt and accept the foregoing Stipulation and Proposal for

Settlement

 as written.

15

AGREED:

FOR THE COMPLAINANT:

PEOPLE OF THE STATE OF ILLINOIS

JAMES

 B. RYAN

Attorney General

 of the

State of Illinois

MATTHEW J.

DUNN,

Chief

Environmental

Enforcement

Division

By:

WILLIAM

D.

 SEITH, Chief

Environmental Bureau

Assistant Attorney General

Dated:

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY

E. SVOBODA

neral Counsel

Division of Legal Counsel

Dated:

By

FOR THE RESPONDENT:

CENTRAL DECAL COMPANY

By:

415

Name:

~‘kaMPD

14hñ41

Title:

V/cf

 ?,ec3’p&Jr

Dated:

iØ~/ti~

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