ILLINOIS POLLUTION CONTROL BOARD
    August 4, 1988
    REILLY TAR AND CHEMICAL CORP.
    )
    Petitioner,
    )
    V.
    )
    PCB 88—47
    ILLINOIS ENVIRONMENTAL
    )
    PROTECTION AGENCY,
    )
    Respondent.
    OPINION AND ORDER OF THE BOARD (by J. Anderson):
    This matter comes before the Board upon a March 8, 1988
    petition and an April 13, 1988 amended petition filed by Reilly
    Tar and Chemical Corporation (Reilly) and the City of Granite
    City (City) requesting a one year extension of its prior three
    year variance granted in PCB 84—82, until August 31, 1989, from
    35 Ill. Adm. Code 307.103 as it relates to Reilly’s mercury
    discharge to the City’s sewer system. On July 11, 1988, the
    Illinois Environmental Protection Agency (Agency) filed its
    recommendation that variance be granted, subject to conditions.
    Hearing was waived and none was held.
    Reilly distills coal tar, which is a by—product of coke
    making, at its refinery in Granite City. Its products include:
    coal tar pitch, used primarily as a binder for anodes and
    cathodes used in aluminum production; creosote oil, a pesticide
    used to treat railroad ties, utility poles, etc; and pipeline
    coatings, used on underground gas and oil transmission
    pipelines. Reilly employs about 50 persons.
    Reilly annually batch processes about 12—15 million gallons
    of coal tar obtained from various sources, one source being
    Granite City Steel, from which Reilly purchases their total
    production of coal tar. The distillation process removes various
    amounts of creosote oil to produce various grades of pitch. At
    the start of distillation water contained in the coal tar is
    first removed in a separate distillation cut. Wet scrubbers
    prevent particles of creosote oil from polluting the air. Wet
    scrubber water is recirculated until the creosote oil
    concentration is about 50, at which point the mixture goes to an
    oil—water separator. This separated water becomes part of the
    wastewater produced.
    In a March 29, 1985 quarterly progress report, Reilly’s
    mercury concentration by wastestream is as follows (Pet. Appendix
    B—5)
    91—119

    —2—
    SOUI~ESAND QUANTITIES OF MERCURY
    PRESENT IN WASTEWATER AT RI~C’S GRANITE CITY PLANT
    Volurre of
    Mercury
    Percent
    Wastewater
    Load
    of
    Source
    Mercury (rr~g/l)
    (gal/week)
    (g/week)
    Total
    I. Water Decantation
    A. Tar Storage
    0.006
    750
    0.017
    0.08
    B. Front End Oil Storage
    0.008
    9,000
    0.273
    1.25
    C. #1 Creosote Oil Storage
    0.081
    5,250
    1.612
    7.40
    II. Storirwater
    (tank 100)
    0.003
    53,700
    0.611
    2.80
    III. Wet Scrubbers
    0.012
    1,500
    0.068
    0.31
    IV. Wet Distillate Cut
    0.129
    39,300
    19.214
    88.16
    V. Miscellaneous Water
    NA*
    50,000
    Total
    100
    *Not analyzed.
    The discharge limit for mercury in 35 Ill. Adm. Code 307.103
    is 0.0005 mg/l (0.5 ppb).
    Reilly’s discharge limit in its PCB
    84—82 variance is 0.035 mg/l, subject to the averaging rule of 35
    Ill. Adm. Code 304.104(a).
    The City’s NPDES effluent limit is
    0.0005 mg/l. Reilly asserts that the mercury is
    present in the
    coal tar, regardless of source, and is known to occur naturally
    in coal.
    Reilly’s pretreatment system,
    constructed in
    1983, consists
    of the following:
    An industrial wastewater pretreatment facility
    consisting of a 50,000 gallon primary settling
    tank, a 100,000 gallon primary settling tank,
    two settling pans with oil skimmers, a 50,000
    gallon flow equalization tank with mechanical
    mixing, three 250,000 gallon bio—oxidation
    tanks, two 2,800 gallon rectangular
    clarifiers, and all necessary pumping, piping
    and appurtenances designed to treat wastewater
    from a coal tar pitch and creosote oil
    manufacturing operation with the discharge of
    (30,000 gpd DAF; 45,000 gpd DMF; 300 PE) and
    tributary to the Granite City Sewer Treatment
    Plant. (Agency Rec. p. 3)
    9 1— 120

    —3—
    On February 22, 1985, pursuant to its present variance,
    Reilly commenced discharging to the City’s treatment plant.
    Prior to that time, Reilly had discharged to a lagoon, which is
    undergoing RCRA closure. The RCRA closure plan requires that a
    maximum of about 43,000 gpd of contaminated groundwater be
    removed and treated through the pretreatment facility. The
    Agency noted that the 43,000 gpd, when added to the 26,000 gpd
    from process and stormwater (when it rains) exceeds the hydraulic
    capacity of the facility, thus reducing its effectiveness.
    Reilly, however, asserts that the system over the years has
    exceeded the predicted efficiency and is able to effectively
    treat the 70,000 gpd being fed to it. (Agency Rec. p.4, Pet. p.
    4)
    During the time of Reilly’s discharge, the City’s treatment
    plant effluent did not exceed 0.0005 mg/i in 1986 (Appendix A, p.
    A—i). However, in 1987 and through April, 1988 the Agency
    compared three apparent excursions of the City’s treatment plant
    effluent with Reilly’s discharge (Pet. Table 9, Agency Rec. p.
    4,5) as follows:
    Discharge Monitoring Granite City
    Reilly
    (Table 9)
    Report
    Feb. 1987
    0.00084
    0.007
    Oct. 1987
    0.0017
    0.0022
    10/2
    0.0078
    10/9
    0.0039
    10/16
    0.0089
    10/23
    0.0069
    10/30
    Jan. 1988
    0.0130
    0.0014
    1/8
    0.0016
    1/15
    0.0038
    1/22
    0.0211
    1/29
    There is no firm correlation between discharges from Reilly
    and excess discharges by Granite City. The Board also references
    the PCB 84—82 Opinion, which notes that the City exceeded its
    mercury effluent limit a number of times between October 1981 and
    June 1984, all prior to the time Reilly started discharging to
    the City’s treatment plant.
    One underlying problem has been the tests for total mercury,
    which can be uncertain at such low levels in a complex matrix
    such as Reilly’s, where organic—mercury compounds are present.
    Reilly searched for, and feels it has found, a laboratory that
    can give reliable results; however, Reilly asserts that the
    results are still questionable from a statistical standpoint.
    The Agency agrees that the tests are complicated by the organic—
    mercury compounds; however, the Agency believes that the Standard
    9 1—12 1

    —4—
    Methods For Examination of Waste and Wastewater, 14th Edition
    does contain methods to eliminate interferences and suggests that
    Reilly’s statistical variability is probably caused by the
    variability of the raw material and batch operations. The Agency
    noted that both Reilly and the City have programs to improve
    testing accuracy.
    COMPLIANCE EFFORTS
    Reilly’s pretreatment efforts have produced a discharge
    meeting all pretreatment requirements except for mercury. The
    pretreatment goal was to reduce incoming levels of 0.1 mg/i (100
    ppb) down to 0.003 mg/i (3 ppb), presumably as a step to qualify
    for the pretreatment exception in 35 Ill. Adin. Code 307.103(c),
    which allows a 0.003 mg/i, instead of 0.0005 mg/i, discharge if
    all other requirements of that subsection are met. Reilly
    believes that it can now comply with a 0.025 mg/i monthly average
    (as well as a .035 daily average) if variance were granted.
    However, Reilly has concluded that its only relief now is site
    specific relief, for which it has applied. (R88—9) Reilly
    asserts that its treatment system was one of only two systems out
    of eleven studied for regulating a large number of priority
    pollutants that was considered “by USEPA to be classified under
    the category of Best Available Technology Economically Achievable
    (BAT) for the Organic Chemicals, Plastics and Synthetic Fibers
    (OCPSF) industrial category” (Pet. p. 3). The Agency stated that
    the fact that USEPA has considered Reilly’s treatment facility to
    be BAT does not apply to mercury, since there is no federal law
    regulating mercury discharges by petitioners as a priority
    pollutant. In the USEPA’s notice of final rule 52 F.R. 42522
    (November 5, 1987), certain priority pollutants, including
    mercury, were listed as not regulated, and the reasons why not;
    in the case of mercury, the reason given was that mercury was
    “Detected in Treated Effluents From a Small Number of Discharge
    Sources and Uniquely Related to Those Sources” (see Appendix D—
    Toxic Pollutants of the Notice, Id. 42568). The Agency correctly
    asserts that mercury was not excluded because of other potential
    reasons, i.e., trace amounts and insignificant toxic effects, or
    sufficient controls by existing technologies. The tJSEPA’s
    authority to make such a determination is contained in paragraph
    8(a)iii, 1842 of a modified settlement agreement in NRDC v.
    Train, 12 ERC 1833, March 9, 1979.
    The Agency asserts that the necessary degree of treatment is
    contained in the above mentioned exception provisions in the
    Board’s rules for mercury where, in Section 307.l03(c)(3) the
    requirement is the “best degree of treatment consistent with
    technological feasibility, economic reasonableness and sound
    engineering judgment”. The Agency does not at this time agree
    that Reilly is providing the best degree of treatment.
    91—122

    —5—
    The record addresses a number of alternatives. The Board
    will address the compliance efforts in summary, recognizing that
    many treatment strategies under these general headings were
    discussed in the Petition, and others were summarized in the PCB
    84—82 Opinion:
    1)
    Use of filters to
    replace the wet scrubbers. Reilly
    rejected this option because of minimal reductions, and short
    life due to continual
    plugging. The Agency feels filter design
    has recently improved but agrees that greater potential
    reductions exist in other
    waste streams, particularly diversion
    of stormwater and separate
    treatment of the wet distillate cut.
    2)
    Diversion of
    Stormwater. The stormwater averages 0.003
    mg/i and might be directly discharged pursuant to the
    Section
    307.103(c) and subject to City approval of treatability
    for
    phenols, thus reducing hydraulic overload.
    However, the Agency
    feels this option is not
    essential since the limit is exceeded
    without the stormwater flow.
    The Board notes that the City now
    has an Agency approved Pretreatment Program, so the City will
    approve or disapprove Reilly’s discharges and thus the Agency
    need not renew Reilly’s permit, due to
    expire on August 31, 1988.
    3) Increase mercury precipitation. Reilly has undertaken a
    number of efforts in this area.
    The Agency had no comment except
    to note that Reilly now is able to convert 75 of the mercury to
    precipitate
    as compared to 52
    in 1985—86 (Pet. B—9, Agency Rec.
    p. 7), allowing removal by the
    clarifier.
    4)
    Increased clarifier efficiency.
    Changes in design,
    operation, settling aids and flow have been attempted. The
    Agency believes a larger and newer clarifier could reduce the
    present solids concentration in the discharge by 90, although
    0.003 mg/i mercury would not be achieved.
    5) Source separation. The Agency notes that the Petition does
    not discuss the possibility of treating the wet cut separately
    and before treatment for organics in the bio—reactors.
    ENVIRONMENTAL ASSESSMENT
    Reilly asserts that since grant of variance in 1984,
    Mississippi water quality has not degraded, referencing the U.S.
    Geological Survey’s (USGS) monitoring data collected 20 miles
    upstream from St. Louis (Alton) and 137 miles downstream from St.
    Louis (Thebes). (Pet. B—3,4) The Agency notes that no
    statistical variation would be expected, given the large flow in
    the Mississippi River. The Agency also presents other
    environmental and health effects data concerning mercury: The
    Food and Drug Administration guideline limit for fish flesh is
    1.0 ppm (1 mg/i), which was not exceeded during the present
    91—123

    —6—
    variance*; the USEPA published a document in 1980 r”Ambient Water
    Quality Criteria for Mercury” (EPA 440/5—80—058, October 1980),
    which established criteria of a) 0.00057 g/1 (0.57 mg/i) for
    total recoverable mercury as a
    24 hour average, with no
    exceedences of 0.0017 g/l (1.7 mg/i) at any time to
    protect
    freshwater aquatic life and b) an
    ambient water criteria of 144
    ng/l (0.000144 mg/i) to protect human health.
    Regarding the latter study, the authors used incidences of
    mercury poisoning to determine a lowest observable effect level
    (LOEL) of 200
    g/day/70 kg for ingested mercury. The mercury
    concentration in the average diet for food from various species
    was calculated using
    a “Practical Bioconcentration Factor” (PBCF)
    to quantify
    a species—specific ability to concentrate mercury.
    The median PBCF was then used to back calculate a water mercury
    concentration that would produce the fish mercury concentration,
    and that figure was given a safety factor of 10.
    The Agency, referenced the
    following assumptions in the
    criteria document and made the following observations (citations
    to record omitted, Agency Rec. 9,10.):
    Amount of
    Mercury Concentration
    Fish Eaten
    in Edible Fish Tissue
    Species
    g/day
    ppm (mg/i)
    PBCF
    Trout
    0.561
    0.240
    6000
    Bass
    0.467
    0.200
    5000
    Catfish
    0.467
    0.070
    1750
    Pike
    0.224
    0.390
    9750
    Total
    1.719
    5500
    Median
    a. The total amount of freshwater fish is 1.719 g/day which is
    less than 10 of the 18.7 g/day/70 kg of the average total
    fish and shellfish intake.
    b The mercury concentration of fish tested in the Mississippi
    River upstream and downstream of the facility is generally
    less than that assumed in the guidance document.
    C.
    The PBCF calculated in the guidance document uses a
    freshwater total mercury concentration of 40 ng/1 (0.000040
    mg/i or 0.000000040 g/l). From the very limited data, it
    *
    The Agency is presumably referring to the FDA action level for
    mercury in fish and shellfish of 1.0 mg/kg referenced in 49 FR
    45663, November 1984.
    91—124

    —7—
    appears that the actual Mississippi water concentration is
    higher but the fish concentration is lower i.e. that the
    assumed PBCF is too high to describe the Illinois data.*
    The Agency also repeats, as part of its recommendation,
    specific findings contained in the Board’s R70—5 Opinion by Mr.
    Currie adopted March 31, 1971:
    1. Although various mercury compounds are of varying
    toxicity, all are subject to bacterial conversion into
    the highly toxic methyl compounds. This conversion is
    likely to occur under conditions common to Illinois
    stream beds and to soils. Accordingly it makes sense to
    deal with all discharges of mercury and its compounds on
    the assumption that they may end up in methyl form.
    2. Once mercury gets into the environment it neither
    degrades to harmless substances nor ceases to exist.
    Mercury deposits presently existing on stream beds will
    be a continuing source of methyl mercury to the water
    for many years. Dredging of deposits has so far proved
    of doubtful value, since it stirs up the mercury and
    increases water concentrations for the short term.
    Morever, mercury in bottom sediments is often converted
    to the volatile dimethyl mercury, which escapes to the
    atmosphere and comes down in the rain many miles away.
    In short, mercury once put into the environment remains
    where it can do harm for a very long time.
    3. Mercury is biologically concentrated by fish on the
    order of 3000 times. This means that very low
    concentrations in water will result in substantially
    higher concentrations in fish, which people eat.
    (citations to record omitted)
    The Agency requests the Board’s official notice of the rest
    of its R70—5 opinion and wishes to emphasize the following quote
    from Mr. Currie at p. 4:
    *
    The Board notes that the 1980 document cited by the Agency and
    discussed above has been updated (“Ambient Water Quality Criteria
    for Mercury
    1984”, EPA 44015—84—026, January, 1985), and
    references procedures described in the “Guidelines for Deriving
    Numerical Water Quality Criteria for the Protection of Aquatic
    Organisms and their Uses” by Stephans, C.E. et al. 1985
    (available from NTIS, Springfield, VA). The Board requests that
    these documents (or updates, if any) be addressed in Reilly’s
    site—specific proceeding or other subsequent proceedings, if any.
    91—125

    —8--
    Furthermore, even apart from the nondegradable
    aspect of mercury pollution, it would be folly
    to set effluent standards at such a level as
    to permit existing pollution sources in every
    case to degrade the water to the level set by
    the standard. To do so would transform
    standard designed to protect the environment
    into licenses to degrade. It would ignore the
    fact that a water quality standard prescribes
    not the ideal condition of the environment,
    but an outer limit of dirtiness that should be
    avoided if it reasonably can be. It would
    commit us to the philosophy of allowing the
    environment to be as dirty as we can bear it,
    when our correct philosophy should be to make
    the environment as clean as we reasonably
    can. Finally, to allocate to existing users
    the entire
    waste—diluting
    capacity
    of the
    environment would leave no room for new
    industry, encourage inefficient practices, and
    either discriminate against new entrants or
    require a re—examination and tightening of
    effluent limit whenever a new facility was
    contemplated.
    ECONOMIC INFORMATION
    Reilly asserts that its pretreatment system’s original
    capital cost exceeded $900,000. Subsequent improvements have
    increased the capital investments to over $1,300,000 with
    operating costs running $11.20/bOO gallons of treated water.
    Since Reilly asserts it is able to treat up to 70,000 gal/day,
    and the system was designed to treat about 40,000 gal/day, the
    daily operating costs are presumably about $784 and $448
    respectively. Reilly also stated that its estimate when it
    sought its present variance was $15,000 to reach the 0.003 mg/i
    level; however, it has spent about $100,000 to date (Pet. p. 21,
    B—l5) and, although some progress has been made, Reilly has found
    no technology to date to reach that level. Reilly has
    concluded:
    Reilly, during the course of investigating the
    various technologies found they would either
    1. Not reduce the mercury concentration below
    3 ppb. 2. Create additional waste which would
    have to be disposed of (a problem not
    currently existing since Reilly can recycle
    all the sludge presently being generated in
    the treatment plant)
    3. Cause Reilly’s
    product to not meet customer specifications.
    4. Increase operating cost at Reilly’s Granite
    City plant to a point that Reilly could not
    91—126

    —9—
    recover the cost and remain competitive in its
    area of marketing (i.e. Reilly’s Granite City
    plant would no longer remain a profitable
    operation).
    5. A combination of some or all
    of the above four. (Pet. p. 21)
    Reilly has also committed to continue search for and evaluate any
    new technology that may become available.
    Reilly also has
    informed the
    Agency that
    it will continue the compliance plan of
    the present variance, specifically changes in clarifier
    operation
    to increase solids capture as required by
    Granite City’s
    Pretreatment Program (Agency Rec. 7).
    BOARD CONCLUSIONS:
    At the outset, the Board emphasizes, as it did in PCB 84—82,
    that variance is not requested from the City’s effluent standard,
    nor is such variance being considered here.
    Petitioners, as the Agency correctly asserts, have provided
    no new compliance plan but the adoption of a site specific rule
    in R88—9; however, a compliance plan that consists solely of a
    site specific rulemaking is not acceptable (Alton Packaging
    Corporation v. IEPA, PCB 83—49, May 5, 1988). Nevertheless, the
    Board has occasionally granted short term “more information” or
    “more research” variances for the purpose of developing a
    workable compliance plan, and it will so grant a one year
    variance here, with conditions. The Board is not persuaded that
    Reilly has fully exhausted its design and operating options that
    particularly could lead to compliance with 35 Ill. Adm. Code
    307.103(c), which allows a concentration of 0.003 mg/i if other
    provisions of that subsection are met.
    This grant of variance is a close call. While the
    environmental and human health effects are not substantial during
    this grant of variance, mercury discharges are inherently a cause
    of concern. On the other hand, Reilly appears to have in good
    faith under its present variance actively pursued treatment
    strategies, so its hardship is not self imposed. Under no
    circumstances, however, should Reilly construe this one year
    extension, explicitly or implicitly, as allowing a relaxation of
    Reilly’s efforts to come into full compliance during the pendancy
    of the site—specific proceeding. The Board particularly notes
    the Agency comments that the use of filters to replace the wet
    scrubber has not been persuasively shown to be infeasible, and
    that the feasibility of separately treating the wet cut for
    mercury before treating for organics in the bio reactors has not
    been addressed. Efforts to improve clarifier design and
    operation should be continued. While not essential, the option
    of direct diversion of stormwater flow would reduce hydraulic
    load on the treatment facility; the record indicates, however,
    that this strategy might not enhance compliance. The direct
    91—127

    —10—
    diversion question aside, the removal and treatment of the
    contaminated groundwater from the lagoon site must continue as
    part of Reilly’s RCRA closure plan.
    Therefore, the Board finds that Reilly would suffer an
    arbitrary or unreasonable hardship; Reilly’s hardship resulting
    from denial of variance outweighs the injury of the public from
    grant of the petition. The Board will also set the discharge
    concentration at the 0.025 mg/i (25 ppb) limit proposed by Reilly
    rather than the 0.035 mg/i limit in the present variance. The
    Board will not order Reilly to comply with its proposed daily
    limit of 0.025 mg/b (25 ppb); rather the Board will apply the
    averaging rule “as is”, since there is insufficient information
    in the record to evaluate this limit. The Agency’s proposed
    conditions will also be included with little change. As in the
    prior PCB 88—47 proceeding, Granite City also will be granted
    variance from Section 307.103 so the City can allow Reilly to
    discharge into its sewer system.
    This Opinion constitutes the Board’s findings of fact and
    conclusions of law in this matter.
    ORDER
    Reilly Tar and Chemical Corporation and the City of Granite
    City are hereby granted variance from 35 Ill. Adm. Code 307.103,
    as it applies to Reilly’s discharge, until August 31, 1989,
    subject to the following conditions:
    1. Reilly Tar and Chemical Corp. shall not discharge
    mercury at a concentration greater than 0.025 mg/i,
    subject to the averaging rule of 35 Ill. Adm. Code
    304.104(a), to the City of Granite City sewer system,
    nor shall the City of Granite City allow Reilly Tar and
    Chemical Corp. to discharge mercury at a concentration
    greater than that level.
    2. Reilly Tar and Chemical Corp. shall conduct a compliance
    program to reduce the mercury concentration in its
    effluent consistent with the above Opinion and improve
    the accuracy of its mercury analysis.
    3. Reilly Tar and Chemical Corp. shall continue to submit
    quarterly progress reports during the variance period
    to:
    Mr. Mark Books
    Illinois Environmental Protection Agency
    Division of Water Pollution Control
    Compliance Assurance Section
    2200 Churchill Road
    Springfield, IL 62706;
    9 1—128

    —11—
    4. Within 45 days of the date of this Order, Petitioner
    shall execute and forward to Thomas Davis, Enforcement
    Programs, Illinois Environmental Protection Agency, 2200
    Churchill Road, Springfield, Illinois 62794—9276, a
    Certification of Acceptance and Agreement to be bound by
    the terms and conditions contained herein. This
    variance will be void if the Reilly Tar and Chemical
    Corp. fails to execute and forward the certificate
    within the 45 day period. The 45 day period shall be
    held in abeyance for any period during which the matter
    is appealed. Failure to execute and forward the
    Certificate within 45 days renders this variance void
    and of no force and effect as a shield against
    enforcement of rules from which variance was granted.
    The form of the certification shall be as follows:
    CERTI FICATION
    I, (We), _____________________________, having read the
    Order of the Illinois Pollution Control Board, in PCB 88—47,
    dated August 4, 1988, understand and accept the said Order,
    realizing that such acceptance rendrs all terms and conditions
    thereto binding and enforceable.
    Petitioner
    By: Authorized Agent
    Title
    Date
    5. Section 41 of the Environmental Protection Act (Ill.
    Rev. Stat. 1985, ch. ll~/~par. 1041) provides for
    appeal of final Orders of the Board within 35 days. The
    Rules of the Supreme Court of Illinois establish filing
    requirements.
    IT IS SO ORDERED.
    9 1—129

    —12—
    I, Dorothy NI. Gunn, Clerk of the Illinois Pollution Control
    Board, hereby certify that the above Opinion and Order was
    adopted on the ~ day of ~
    ,
    1988, by a vote
    of
    ~
    .
    ~
    Dorothy M. G~inn, Clerk
    ~
    Illinois Pollution Control Board
    9 1—130

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