1
    1 BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
    2
    3 IN THE MATTER OF:
    )
    )
    4 PROPOSED SITE-SPECIFIC
    ) R02-20
    AIR POLLUTION REGULATIONS ) (Site-Specific
    5 APPLICABLE TO HORWEEN LEATHER) Rulemaking-Air)
    COMPANY OF CHICAGO, ILLINOIS )
    6 35 ILL. ADM. CODE 211.6170, )
    7
    8
    9
    10
    The following proceedings were
    11 held before HEARING OFFICER WILLIAM MURPHY,
    12 taken before GEANNA M. IAQUINTA, CSR, a
    13 notary public within and for the County of
    14 Cook and State of Illinois, at the James R.
    15 Thompson Center, 100 West Randolph Street, on
    16 the 26th day of June, A.D., 2002, scheduled
    17 to commence at 10:00 o'clock a.m., commencing
    18 at 10:07 a.m.
    19
    20
    21
    22
    23
    24
    L.A. REPORTING (312) 419-9292

    2
    1 APPEARANCES:
    2
    ILLINOIS POLLUTION CONTROL BOARD,
    3
    100 West Randolph Street
    Suite 11-500
    4
    Chicago, Illinois 60601
    BY: MR. WILLIAM F. MURPHY, Hearing Officer
    5
    6
    ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,
    1021 North Grand Avenue East
    7
    P.O. Box 19276
    Springfield, Illinois 62794
    8
    (217) 524-4343
    BY: MS. RACHEL DOCTORS AND MR. GARY BECKSTEAD
    9
    Appeared on behalf of the IEPA,
    10
    11
    GARDNER, CARTON & DOUGLAS,
    321 North Clark Street
    12
    Chicago, Illinois 60610
    (312) 644-3000
    13
    BY: MR. ROY M. HARSCH
    14
    Appeared on behalf of Horween
    Leather Company.
    15
    16 ILLINOIS POLLUTION CONTROL BOARD MEMBERS PRESENT:
    17 Ms. Alisa Liu
    Mr. Anand Rao
    18 Mr. Michael Tristano
    Mr. Nicholas Melas
    19
    20 ALSO PRESENT:
    21 Mr. Arnold Horween, III
    Ms. Julie Christensen
    22
    23
    24
    L.A. REPORTING (312) 419-9292

    3
    1
    HEARING OFFICER MURPHY: Good morning.
    2 My name is William Murphy, and I am the
    3 hearing officer in this proceeding. I'd like
    4 to welcome you to this hearing being held by
    5 the Illinois Pollution Control Board In The
    6 Matter Of: Proposed Horween Leather Company
    7 Site-Specific Air Rule, 35 Illinois
    8 Administrative Code 211.6170.
    9
    Present today on behalf of
    10 the Illinois Pollution Control Board is Board
    11 Member Michael Tristano to my left. He is
    12 the Board member coordinating this rule.
    13
    Mr. Tristano, would you like
    14 to make any comments at this time?
    15
    MR. TRISTANO: Yes. I'd just
    16 like to welcome everybody to the hearing.
    17 Hopefully, we can get a complete record, and
    18 I'll go back to you, Bill.
    19
    HEARING OFFICER MURPHY: Thank
    20 you.
    21
    On February 19th, 2002, the
    22 Horween Leather Company, which I'll refer to
    23 as Horween, filed a proposal for rulemaking
    24 under Section 27 of the Environmental
    L.A. REPORTING (312) 419-9292

    4
    1 Protection Act to change regulations.
    2 Horween requests that the Board issue a
    3 site-specific rule from 35 Illinois
    4 Administrative Code 211.6170 and 218.926 to
    5 change the control requirements as applied to
    6 a small amount of new leather -- new
    7 specialty leathers that Horween would like to
    8 produce.
    9
    On March 7th, 2002, the
    10 Board accepted the matter for hearing. Today
    11 is the only scheduled hearing the Board will
    12 be holding in this matter. On March 10th,
    13 2002, two Board mailed a request to the
    14 Department of Commerce and Community Affairs,
    15 known as DCCA, to perform an economic impact
    16 study on the proposed rulemaking.
    17
    As of today's date, we have
    18 not received a study from DCCA. We do not
    19 anticipate receiving one from DCCA in this
    20 matter. We welcome testimony and discussion
    21 in this matter on economic impact.
    22
    This hearing will be
    23 governed by the Board's procedural rules for
    24 regulatory proceedings. All information
    L.A. REPORTING (312) 419-9292

    5
    1 which is relevant and not repetitious and
    2 privileged will be admitted. All witnesses
    3 will be sworn and subject to
    4 cross-questioning. All witnesses will read
    5 their testimony.
    6
    After hearing from the
    7 witnesses presented by Horween and the
    8 Agency, we will accept questions on the
    9 proposal. Please note that any question that
    10 might be asked by a member of the Board or
    11 the Board's staff are intended to help build
    12 a complete record for the Board's decision
    13 and they do not express any preconceived
    14 notion or bias.
    15
    In today's hearing, we'll
    16 hear prefiled testimony from Horween Leather
    17 Company, Arnold Horween, III, Julie M.
    18 Christensen. We will next hear testimony --
    19 prefiled testimony from the Illinois
    20 Environmental Protection Agency followed by
    21 any questions to be asked of Horween or the
    22 Agency.
    23
    We allow anyone else who
    24 wishes to testify the opportunity to do so as
    L.A. REPORTING (312) 419-9292

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    1 time permits at the end of the day, and one
    2 last note, we do have some members of the
    3 Board staff that I have not introduced yet.
    4
    To my immediate right is
    5 Anand Rao. He is from the Board's technical
    6 unit. To his right is Alisa Liu, who is also
    7 from the Board's technical unit.
    8
    Are there any questions
    9 regarding the procedure we will be following
    10 today? I see no questions.
    11
    All right. With that,
    12 Mr. Harsch, would you like to make an opening
    13 statement?
    14
    MR. HARSCH: Yes, I would like to
    15 make a brief opening statement. My name is
    16 Roy Harsch. I'm with the law firm of
    17 Gardner, Carton & Douglas.
    18
    This site-specific
    19 regulatory proceeding is the result of a
    20 lengthy series of discussions and
    21 negotiations with the Illinois Environmental
    22 Protection Agency and, I guess, with USEPA.
    23 It has as its genesis really statements made
    24 by Arnold Horween, Jr. in the RACT
    L.A. REPORTING (312) 419-9292

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    1 regulations that -- where the Board enacted
    2 the leather coating rules applicable to
    3 leather coaters with emissions less than 100
    4 tons and enacted a category of what's
    5 referred to and defined as specialty
    6 leather.
    7
    In that proceeding,
    8 Mr. Horween said that while he could comply
    9 with the existing proposed rules, there would
    10 be a time in the future where his business
    11 would change in response to customer demand
    12 and that they would have to seek relief.
    13 That's what we're here today for. That's
    14 what we've been trying to negotiate with the
    15 Agency for a very long period of time.
    16
    We appreciate all of the
    17 help that the Agency has extended to
    18 Horween. We are basically at a point where
    19 the Agency has essentially rewritten the
    20 site-specific proposal that Horween submitted
    21 in February and that was attached and will be
    22 discussed today in the testimony of
    23 Mr. Beckstead.
    24
    We are basically at a point
    L.A. REPORTING (312) 419-9292

    8
    1 where we are in agreement with that proposal
    2 and would not have any problem if the Board
    3 would move forward and enact that proposal
    4 with two exceptions, both of which were
    5 underlined by the Agency in their submittal
    6 and has to do with a recordkeeping issue in
    7 Section 218.929(c) -- (d) excuse me. The
    8 words, by batch, we would ask that the Board
    9 delete that, and we will explain today, and
    10 218.929(c)(4) we disagree with the suggestion
    11 or the requirement that high volume, low
    12 pressure nozzles be used, and we'll cover
    13 that in the rebuttal testimony today.
    14
    It's our understanding that
    15 the nozzle issue primarily is a concern of
    16 USEPA, not the Illinois EPA, but IEPA
    17 obviously has concerns that the Board enact a
    18 rule that would be acceptable to USEPA. We
    19 think the record that we will establish today
    20 will show that that type of a nozzle is not a
    21 reasonably available control technology as
    22 applied to Horween and is totally
    23 unacceptable.
    24
    Furthermore, with respect to
    L.A. REPORTING (312) 419-9292

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    1 the recordkeeping issue, I think our
    2 testimony today will show that that concern
    3 really is not -- that's a concern only to, as
    4 I understand it from talking to Ms. Doctors,
    5 a concern that applies to the new category of
    6 specialty leathers that we're proposing the
    7 Board enact.
    8
    It is not a concern with
    9 respect to the existing leathers manufactured
    10 by coating -- by Horween, and that it's fair
    11 that we have an agreement that the way
    12 Horween has been maintaining its records is
    13 consistent with what's required under the
    14 rules, and it's been incorporated in the
    15 Title 5 permit and it's been the subject of a
    16 substantial amount of correspondence back and
    17 forth with the Agency, some of which has been
    18 included as attachments to Ms. Christensen's
    19 testimony, and I will have one exhibit today
    20 that I've premarked, which is actually a
    21 readable copy of an April 3rd, '95, letter to
    22 Mr. Mathur from Julie Christensen from
    23 Horween Leather, and it's the same as
    24 attachments to her testimony. I said
    L.A. REPORTING (312) 419-9292

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    1 April 3rd. It's an April 22nd, 2002, letter
    2 to Dick Forbes from Julie Christensen, I
    3 stand corrected, with a readable copy of the
    4 tables. Otherwise, it's identical to that
    5 which was attached to her testimony.
    6
    At this time, I would defer
    7 and see if the Agency has any comments before
    8 calling my two witnesses.
    9
    HEARING OFFICER MURPHY: Thank
    10 you, Mr. Harsch. Can all the witnesses be
    11 sworn in by the court reporter at this time?
    12
    (Witnesses sworn.)
    13
    HEARING OFFICER MURPHY: Mr. Harsch,
    14 you can proceed with your first witness.
    15
    MR. HARSCH: At this point, I
    16 would call Mr. Horween. Explain for the
    17 record who you are and what your name is and
    18 then proceed to read your testimony.
    19
    MR. HORWEEN: Okay. My name is
    20 Arnold Horween, III, and as of May 1st of
    21 this year, I'm the president of Horween
    22 Leather Company. I've been working at
    23 Horween Leather since 1978.
    24
    Horween Leather Company was
    L.A. REPORTING (312) 419-9292

    11
    1 founded in 1905 by my great-grandfather,
    2 Isadore Horween. Isadore came to this
    3 country in 1893 from the Ukraine, where he
    4 apprenticed in a tannery and learned his
    5 trade. Arriving Chicago in time for the
    6 World's Fair, he was able to secure
    7 employment in a tannery by attending the
    8 leather exhibit. Keep in mind that the
    9 leather industry was thriving in Chicago at
    10 that time because of the stockyards. After
    11 all, our raw material is a by-product of the
    12 beef industry.
    13
    When Isadore Horween opened
    14 his doors in 1905, the first facility was on
    15 Division Street on Goose Island. In 1923,
    16 Herman Loescher & Sons Tanning, occupying our
    17 current location, was purchased from the
    18 Loescher family. For the next five years,
    19 two facilities were run with the final
    20 consolidation on Elston Avenue coming in 1928
    21 where we continue to operate today.
    22
    Isadore was ahead of his
    23 time in many ways. He positioned his company
    24 from the beginning as a niche producer long
    L.A. REPORTING (312) 419-9292

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    1 before the term had been invented. His idea
    2 was to specialize and make things to order, a
    3 custom job shop, so-to-speak. His philosophy
    4 is still what drives our business.
    5
    We actively seek out
    6 projects that other people don't, won't, or
    7 can't do in quantities that are tailored to
    8 meet the customer's requirements. By
    9 definition, this places a focus on quality
    10 first, a premium product at a premium price.
    11 As soon as we get in the mass competitive
    12 market, we're outside our area of expertise
    13 and beyond our physical plant capacity.
    14
    The first product made at I.
    15 Horween & Company, as it was known in those
    16 days, was shell cordovan. Contrary to
    17 popular belief, Cordovan is not a color.
    18 It's actually a specific leather coming from
    19 the hindquarters of a horse. Utilizing all
    20 of his acquired knowledge, my
    21 great-grandfather developed a formulation
    22 that made the cordovan in the world with a
    23 process that took six months to complete.
    24 Genuine Horween Shell Cordovan continues to
    L.A. REPORTING (312) 419-9292

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    1 be one of our franchise products. It is
    2 still acknowledged as the best in the world,
    3 and using his formulas, it still takes us six
    4 months to make.
    5
    In those days the cordovan
    6 was used almost exclusively for
    7 razor-sharpening straps, until, in a
    8 foreshadowing of huge future changes to come,
    9 the invention of the safety razor. With the
    10 purchase of the Loescher tannery, I. Horween
    11 acquired formulas that were the basis for
    12 many of our modern-day leathers and gave us
    13 our first entree into the cattlehide leather
    14 business.
    15
    The evolution of products
    16 remains a key to survival in this industry.
    17 With the combined knowledge of the two
    18 tanneries beginning almost 80 years ago,
    19 Horween Leather Company, as it was known by
    20 then, began making products for an increasing
    21 spectrum of new markets.
    22
    By the late '20s and
    23 early '30s, shoe leather was a large part of
    24 the business in both steerhide and shell
    L.A. REPORTING (312) 419-9292

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    1 cordovan. By the end of the '30s, the new
    2 and growing segment of the business was in
    3 so-called mechanical leathers used for oil
    4 seals, gaskets, and packings. For a period
    5 of time, this leather would be our largest
    6 single product, particularly through the war
    7 years. Also at this time, there was a
    8 tremendous growth in the use of our
    9 Chromexcel leather.
    10
    Chromexcel is another one of
    11 our signature leathers. It saw extensive use
    12 through World War II as it became the
    13 approved Marine Field Boot leather starting
    14 with the North Africa Campaign. As a matter
    15 of fact, the demand for the product so far
    16 exceeded our capacity that my grandfather,
    17 Arnold Horween, actually took the formulation
    18 and taught seven other tanneries the process
    19 to aid in the war effort. Chromexcel
    20 continues today to be one of the cornerstones
    21 of our business. However, it has evolved for
    22 use in high-end men's dress-casual shoes
    23 produced by companies like Timberland, Alden,
    24 and Allen-Edmonds.
    L.A. REPORTING (312) 419-9292

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    1
    Moving into the 1950s,
    2 extensive work was done in response to
    3 demands for improved quality sporting-goods
    4 leathers. Through the combined efforts of my
    5 grandfather and my father, Arnold Horween,
    6 Jr., significant improvements were made in
    7 both football leather and baseball glove
    8 leather. The upshot of this, as it impacts
    9 us today, is that we still provide Rawlings
    10 with leathers for their pro-model gloves, and
    11 for the last 45-plus years, we've been the
    12 exclusive supplier to Wilson Sporting Goods
    13 for the NFL football leather.
    14
    Our processes have been
    15 described in exhaustive detail in other
    16 places; the present petition for
    17 site-specific rule, the Technical Support
    18 Document that accompanied the proposal of
    19 exemptions for our specialty leathers in
    20 R93-14, and in the testimony of my father,
    21 Arnold Horween, Jr., in that proceeding.
    22 While these descriptions remain accurate
    23 today, I would like to offer a brief overview
    24 to highlight the following points.
    L.A. REPORTING (312) 419-9292

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    1
    All of our products, new and
    2 old, are targeted towards the upper end of
    3 their respective markets. In tanning, this
    4 means following formulas that tend to be
    5 slower and more time-consuming than many
    6 currently in use in other places. It also
    7 means using finishing recipes, as it were,
    8 designed to highlight the natural beauty of
    9 leather, rather than cover it up.
    10
    In leather finishing, there
    11 are great parallels to finishing wood. The
    12 two main types finishes are aniline-dyed and
    13 pigment. Simply put, pigment is like paint
    14 and aniline-dye is like stain. Proper
    15 aniline finishing requires more coats with
    16 less material applied in each coat.
    17 Regarding visiting the wood analogy, imagine
    18 finishing a piece of pine as oppose to a
    19 piece of mahogany. The pine can be
    20 beautifully painted with two coats; while the
    21 mahogany may require several coats of stain
    22 with preparation between coats followed by
    23 several coats of varnish. For us, this means
    24 following the mahogany approach.
    L.A. REPORTING (312) 419-9292

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    1
    We have also presented
    2 ourselves with additional challenges. By
    3 making leathers with high-oil contents, only
    4 certain types of finishes can be used. The
    5 challenge is to get the finish to adhere to
    6 the leather, and in the end, we are also
    7 finishing to achieve a combination of look,
    8 feel, and performance dictated by an
    9 increasingly uncompromising customer.
    10
    It is important to note that
    11 in spite of having devoted the conversation
    12 up to now to all the traditional methods and
    13 old ways for old days, I would emphasize that
    14 we are always looking for new and better ways
    15 to do things and make things. If there is a
    16 better material, we want to use it; a better
    17 way to apply the material, we want to
    18 evaluate it. We are always committed to
    19 serving our customer's requirements and
    20 maintaining our quality maintaining our
    21 quality.
    22
    Our request here today can
    23 be distilled into the increasingly urgent
    24 need to be able to respond to market demands
    L.A. REPORTING (312) 419-9292

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    1 that are rigid in terms of time requirements,
    2 and fluid in terms of style and performance.
    3 In my 23 years in this industry, the changes
    4 have been dramatic; more of a convulsion than
    5 an evolution. There has been a contraction
    6 that has reduced the leather tanning industry
    7 in the United State to a shadow of its former
    8 self. Each and every survivor can take pride
    9 in the fact that they have identified and
    10 executed a strategy that has them still
    11 around answering customer's needs.
    12
    When my father, Arnold
    13 Horween, Jr., discussed the exemptions for
    14 specialty leather manufacturing at the time
    15 of the adoption of R93-14, first with the
    16 Illinois Environmental Protection Agency and
    17 then in testimony before the Board, he
    18 outlined that the ability to respond to our
    19 market demand is critical. He noted that
    20 while the relief that was being proposed and
    21 ultimately adopted by the Board for Horween's
    22 existing specialty products was adequate at
    23 the time, there would, in all probability, be
    24 a necessity in the future to seek additional
    L.A. REPORTING (312) 419-9292

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    1 flexibility to respond to changing customer
    2 demands. Horween has been working with IEPA
    3 for approximately three years to obtain a
    4 revision to the existing RACT regulations to
    5 allow us to respond to our changing customer
    6 demands for different types of leather. We
    7 have met on several occasions with IEPA, held
    8 numerous conference calls, and responded to
    9 requests for information. All of this led to
    10 a decision that in order to move the process
    11 to conclusion, we would file the Site
    12 Specific Rulemaking Petition. This was done
    13 on February 19th of this year.
    14
    Since filing, we have
    15 continued to work with IEPA and with the
    16 United States Environmental Protection Agency
    17 to attempt to arrive at an acceptable
    18 Site-Specific Rule that would allow Horween
    19 to produce relatively small amounts of
    20 additional types of specialty leathers that
    21 we currently cannot produce in conformance
    22 with the existing RACT regulations. We
    23 understand that IEPA is in general support of
    24 our request for Site Specific Rule changes to
    L.A. REPORTING (312) 419-9292

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    1 allow us the necessary flexibility to respond
    2 to our customers' demands, but they continue
    3 to have concerns stemming principally from
    4 staff objections at USEPA. We have attempted
    5 to resolve these differences in conference
    6 calls with USEPA and IEPA and have provided
    7 additional information in response to those
    8 calls. We have been informed that,
    9 basically, our differences of opinion have
    10 essentially been resolved to that of
    11 recordkeeping requirements and USEPA's belief
    12 that the relief should be premised upon the
    13 use of high volume, low pressure or HVLP
    14 spraying equipment. Last week, IEPA supplied
    15 us with a redraft of our Site Specific
    16 Proposal that we find generally acceptable
    17 apart from those two issues.
    18
    Horween does not understand
    19 the concerns that underlie these issues and
    20 believes that the Board should adopt the
    21 regulation as revised by the IEPA with the
    22 changes that we will be explaining during the
    23 testimony of Ms. Julie Christensen. As will
    24 be explained by Ms. Christensen, our current
    L.A. REPORTING (312) 419-9292

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    1 recordkeeping and reporting procedures to
    2 demonstrate compliance with the RACT
    3 regulations have been in place for a number
    4 of years and have been found to be acceptable
    5 for Title V permitting purposes. Apparently,
    6 they are acceptable to USEPA to demonstrate
    7 compliance with the recently enacted NESHAP
    8 standard as well. What we propose is simply
    9 the expansion of our existing recordkeeping
    10 requirements to take into consideration the
    11 production of additional specialty leathers
    12 that we are seeking approval to produce. We
    13 do not believe that we will have any trouble
    14 in documenting the VOM usage to be able to
    15 demonstrate compliance with the 12 month
    16 rolling average limitation as required and
    17 agreed upon in this Site-Specific Rulemaking
    18 proposal.
    19
    With respect to the use of
    20 HVLP spray guns, they simply will not work
    21 for the types of specialty leathers that we
    22 produce. With the demise of the Pfister &
    23 Vogel Tannery in Wisconsin two years ago, we
    24 hired on of their master finishers who
    L.A. REPORTING (312) 419-9292

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    1 actually had conducted tests of these types
    2 of spray nozzle guns on the leathers they
    3 produced and for which we seek approval to
    4 produce. Based upon his first-hand
    5 experience, discussions with three of our
    6 coating suppliers, as well as our
    7 understanding of the problems that Prime
    8 Tanning Company is facing in Maine in trying
    9 to utilize these spray guns, we are sure that
    10 they are not acceptable to our operation at
    11 present. As explained in the Technical
    12 Support Document, which accompanied the
    13 original adoption of the specialty leather
    14 exemption, and which is set forth as
    15 Attachment 5 to our Site-Specific Rulemaking
    16 Petition, Horween has limited physical space
    17 and has two existing coating lines. We
    18 simply do not have the physical space to be
    19 able to construct a dedicated coating line to
    20 run HVLP spray guns. Based upon our
    21 finisher's experience and discussions with
    22 our coating suppliers, this type of coating
    23 spray gun might only work on stain coats and
    24 would not work on topcoats. This is
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    1 problematic for several reasons. First, we
    2 continue to spray stain coats on our Official
    3 Football leather and on certain non-specialty
    4 leathers. These coats are primarily antique
    5 coats while the HVLP guns are primarily
    6 suited to heavier applications. Next, on the
    7 stuffed leathers and any leathers where we do
    8 need heavier finish applications, whether it
    9 be for adhesion issues or more coverage, we
    10 apply these stain coats by seasoning machines
    11 with a hand swabbing. Thus, there would be
    12 no benefit in terms of emissions reductions
    13 from switching to such equipment.
    14
    Additionally, there are
    15 several critical problems associated with the
    16 use of these types of spray nozzles on
    17 topcoats. First and foremost is our
    18 understanding that they will not provide
    19 enough atomization to create particle sizes
    20 small enough to facilitate the penetration of
    21 the topcoat in the leather surface, which is
    22 key for the products we produce. Second is
    23 that they produce a heavier coating that
    24 requires significantly more drying time or
    L.A. REPORTING (312) 419-9292

    24
    1 additional dryers. Our production in this
    2 through put is limited by our ability to dry
    3 the product. Many products are stick dried,
    4 that is, hung over rods and allowed to dry
    5 naturally as they move down a slow conveyor
    6 with large air volumes moved over them by
    7 fans. This is done as opposed to putting
    8 them through mechanical dryers. Even with
    9 mechanical dryers, the experience of our
    10 master finisher is that these thicker
    11 coatings applied with HVLP nozzles do not dry
    12 without considerably longer drying tunnels,
    13 for which we simply do not have the space.
    14 With the existing equipment neither higher
    15 temperature nor greater air volumes will
    16 solve the problem.
    17
    As a result, following normal production
    18 practices and stacking the leather after it
    19 exists the dryer; the semi-dried finish will
    20 adhere to the next piece of leather in the
    21 stack. When the leather is removed from the
    22 stack at the next operation, the finish will
    23 rip and the leather will be ruined.
    24
    We are not aware of any
    L.A. REPORTING (312) 419-9292

    25
    1 means to resolve these technical
    2 difficulties, even if economics were not a
    3 factor. When you couple the limited space in
    4 our old production facility and the costs
    5 associated with constructing new spray lines,
    6 the use of these types of spray guns is
    7 simply not feasible. Having said this, I
    8 would like to say again that it is our
    9 intention to continue to explore HVLP systems
    10 and any other avenues that would allow us to
    11 reduce our emissions as long as we can do so
    12 without compromising the quality of our end
    13 product. Examining our records would show
    14 that we have steadily worked to lower our
    15 emissions by reformulation wherever
    16 possible.
    17
    Again, I would like to thank
    18 IEPA for its assistance in developing a
    19 proposed regulation and their support for the
    20 adoption for this proposal in a manner that
    21 will assure approval by USEPA upon adoption
    22 by the Board. We are hopeful that the Board
    23 will agree that IEPA's proposal should be
    24 modified to require a continuation of our
    L.A. REPORTING (312) 419-9292

    26
    1 existing recordkeeping and reporting
    2 obligations rather than new onerous
    3 requirements, as well an expressed finding
    4 that the use of HVLP spray equipment is not
    5 feasible as applied to Horween's operations
    6 and thus not RACT.
    7
    To continue Horween's
    8 history of supplying top end specialty
    9 leathers, we need the ability to produce the
    10 additional types of specialty leather that
    11 currently cannot be produced in conformance
    12 with the existing rules. As set forth in our
    13 Petition, Horween seeks approval to
    14 essentially add two new categories of
    15 specialty leather through this Site-Specific
    16 proceeding. The first subcategory of
    17 specialty leather would be that of leather
    18 which would essentially be our Chromexcel
    19 leather with wax, grease, polymer, and oil
    20 content of between 12 to 25 percent rather
    21 than the 25 percent that was the minimum
    22 content typical at the time the Board enacted
    23 the original exclusion for specialty
    24 leathers, including all trademark Chromexcel
    L.A. REPORTING (312) 419-9292

    27
    1 leathers. As we explained in the
    2 Site-Specific Petition, all of the finishing
    3 requirements are present in this type of
    4 leather, which originally gave rise to the
    5 need for the exception. This leather cannot
    6 be produced using a combination of coatings
    7 that comply with the 3.5 pound per gallon
    8 limitation and they do not meet the current
    9 definition of specialty leather. These
    10 leathers would primarily be used for shoe
    11 manufacturing, but are also available for use
    12 in high-end belts, purses, and other
    13 accessories. The second type of specialty
    14 leather we seek approval to produce is the
    15 leather that would be principally used in the
    16 manufacture of fine dress shoes. It requires
    17 a finish coat that can be ironed during the
    18 shoemaking process to remove wrinkles that
    19 result from the soaking of the shoe in water
    20 during the shoe construction process. To
    21 date, the only topcoats that are capable of
    22 withstanding these rigorous requirements are
    23 cross-linked polymer coatings using water
    24 immiscible solvents. These topcoats are not
    L.A. REPORTING (312) 419-9292

    28
    1 capable of being produced so as to conform to
    2 the 3.5 pound per gallon general limitation,
    3 nor would they meet the current definition of
    4 specialty leathers. In summary, we would
    5 request that the Board enact a Site-Specific
    6 Rule that will allow Horween to produce these
    7 two additional categories of specialty
    8 leather. We have agreed with IEPA and with
    9 USEPA to the appropriate limitations that we
    10 proposed and which are contained in IEPA's
    11 redraft. With the two modifications that Ms.
    12 Christensen will address, we can support the
    13 alternate language proposed by IEPA in place
    14 of that which we originally proposed.
    15
    HEARING OFFICER MURPHY: Thank
    16 you. Before we go further, I'd like to
    17 welcome and introduce Board Member Nicholas
    18 J. Melas.
    19
    Would you like to make any
    20 comments, Mr. Melas?
    21
    MR. MELAS: No, thank you.
    22
    THE WITNESS: Thank you. You may
    23 proceed then to your second witness,
    24 Mr. Harsch.
    L.A. REPORTING (312) 419-9292

    29
    1
    MR. HARSCH: Ms. Christensen,
    2 would you please state your name and explain
    3 who you are and then proceed to read your
    4 testimony?
    5
    MS. CHRISTENSEN: My name is
    6 Julie M. Christensen. After six years of
    7 experience in a corporate regulatory affairs
    8 department and completing my BS degree in
    9 Environmental Science from Roosevelt
    10 University, I was employed as the director of
    11 Safety and Environmental Compliance at
    12 Horween Leather Company on August 10th, 1998.
    13
    My responsibilities at
    14 Horween involve gathering and maintaining all
    15 data regarding environmental and safety
    16 issues, completing all regulatory compliance
    17 reports and permitting under the direction of
    18 Arnold Horween, Jr., and Arnold Horween,
    19 III. As shoemakers in the U.S. have
    20 decreased, and tanneries in the U.S. have
    21 closed, Horween has continuously tried to
    22 expand the specialty leather production to be
    23 able to remain a viable business. Over two
    24 years ago, we began working on this
    L.A. REPORTING (312) 419-9292

    30
    1 rulemaking to enable us to pick up business
    2 from a closed tannery in Wisconsin. As a
    3 consequence of the very slow regulatory
    4 process, leather was produced overseas to
    5 replace this leather. This leather is not
    6 the same quality, but it will be acceptable
    7 to the majority of customers, and it is less
    8 expensive. So this market may no longer be
    9 open to us. We will only know when we
    10 actually produce the leather and try to sell
    11 it. Because of the nature of our business,
    12 it is more important now than ever to be able
    13 to respond quickly with samples and new
    14 leathers for customer's requests. Therefore,
    15 we are urgently requesting a broader
    16 description of specialty leather so we can
    17 respond quickly to meet the demands of
    18 customers and fill voids in the industry. A
    19 lengthy turnaround time is never acceptable
    20 for our customers; they will go elsewhere,
    21 generally, overseas.
    22
    As explained by Mr. Horween,
    23 we have attempted to obtain the approval of
    24 the Illinois Environmental Protection Agency
    L.A. REPORTING (312) 419-9292

    31
    1 to arrive at an agreeable change to the
    2 specialty leather exemptions originally
    3 enacted by the Pollution Control Board in PCB
    4 R93-14. We have had numerous meetings and
    5 telephone conversations, responded to a
    6 number of information requests, and answered
    7 many questions that IEPA posed. Attachment 2
    8 to the testimony is part of that having
    9 reached a point of impasse in terms of making
    10 additional progress, Horween elected to file
    11 the Site Specific Rule Petition earlier this
    12 year. The proposal was actually filed with
    13 the Board on February 19th, 2002, containing
    14 a detailed discussion of Horween's
    15 operations, including the circumstance that
    16 gave rise to the need for producing
    17 additional types of specialty leather. We
    18 also provided 16 attachments to the Petition
    19 to support our request for relief.
    20 Basically, the agreement we reached with IEPA
    21 was embodied in our draft, with the
    22 understanding that the U.S. Environmental
    23 Protection Agency told IEPA it was
    24 acceptable. The basis for this agreement was
    L.A. REPORTING (312) 419-9292

    32
    1 the application of a limitation derived by
    2 the State of Maine and approved by USEPA as
    3 RACT for Prime Tanning Company located in
    4 Berwick, Maine. We included the proposed
    5 limitations of 24 pounds of VOM per 1000
    6 square feet for water-resistant leather and
    7 14 pounds per 1000 square feet for
    8 non-water-resistant leather based on a
    9 12-month rolling average. These limitations
    10 are consistent with our understanding of the
    11 Maine RACT determination for Prime Tanning
    12 Company. It is our understanding that this
    13 RACT limitation was established through the
    14 Title V permitting process. We have included
    15 as Attachment 10 to our Site Specific
    16 Rulemaking the Prime Tanning Company Part 70
    17 Air Emission License or CAAPP Permit.
    18 Attachment 11 is the April 18th, 2000,
    19 Federal Register document approving this
    20 Maine RACT limitation.
    21
    Following the filing of our
    22 Site Specific Petition in February, there has
    23 been a flurry of activity as the hearing date
    24 was established and drew near. We have had a
    L.A. REPORTING (312) 419-9292

    33
    1 series of discussions with IEPA and with
    2 representatives of Region V USEPA concerning
    3 the appropriate limitations. Also,
    4 complicating the situation, USEPA has adopted
    5 a National Emission Standards for Hazardous
    6 Air Pollutants (NESHAP) that applies to
    7 leather coating, which I will discuss later.
    8
    As a result of this
    9 activity, it is our understanding that IEPA
    10 will today submit proposed revised
    11 Site-Specific Rulemaking language for
    12 consideration by the Board as an alternative
    13 to what we originally proposed. Horween had
    14 a limited opportunity to review this
    15 proposal. We generally find it to be
    16 acceptable with two major reservations.
    17 These two exceptions concern changes to the
    18 recordkeeping and reporting obligations and a
    19 requirement to utilize high volume low
    20 pressure spray guns.
    21
    I will first address the
    22 reporting and recordkeeping requirements that
    23 IEPA included in Section 218.929(d) of their
    24 Rule. Our differences of opinion concern the
    L.A. REPORTING (312) 419-9292

    34
    1 reference to the words by batch in Subpart 1.
    2 We believe that the inclusion of this
    3 language would require a substantial
    4 modification to the recordkeeping and
    5 reporting procedures that Horween currently
    6 follows. On March 4, 1996, Horween submitted
    7 an amendment to its RACT Certification
    8 describing a more efficient method of
    9 recordkeeping and demonstrating compliance
    10 with 35 Illinois Administrative Code
    11 218.926(b)2(B). A copy of this submittal is
    12 found as Attachment 1 to this testimony.
    13 Horween has been using this recordkeeping
    14 process since 1996 with the Agency's full
    15 knowledge. This same recordkeeping process
    16 is found in our CAAPP Permit in Section 5.6
    17 General Recordkeeping Requirements and 7.0
    18 Unit Specific Conditions. It has, therefore,
    19 been approved by both IEPA and USEPA to
    20 demonstrate compliance with the existing RACT
    21 rules. As new regulations have been
    22 promulgated, the records have been expanded
    23 to meet the new standards, i.e., seasonal
    24 emissions of VOMs and HAP emissions. As in
    L.A. REPORTING (312) 419-9292

    35
    1 the past, the recordkeeping will be expanded
    2 again to document the leathers that are
    3 addressed in this Site Specific Rulemaking.
    4 I truly believe this is the most accurate and
    5 by far the most efficient method of
    6 recordkeeping to demonstrate compliance with
    7 all of the RACT rules.
    8
    Briefly, Horween's
    9 recordkeeping process involves inventory
    10 records and production records that are
    11 maintained in the specific departments, i.e.,
    12 Finishing, Cordovan, Pasting, and
    13 Maintenance. These departments record their
    14 chemical usage and report this usage to the
    15 office on a weekly basis. This data is
    16 entered into the computer monthly for
    17 calculations of total VOM and HAP emissions.
    18 Because we do not have specific point
    19 emission sources or stacks for measurement in
    20 the various departments, we assume all VOM
    21 and HAPs from the finishes are emitted to the
    22 atmosphere. The production records are also
    23 forwarded to the office on a weekly basis.
    24 The square footage of the side leather is
    L.A. REPORTING (312) 419-9292

    36
    1 determined by a three-year rolling average of
    2 leather measured in the Shipping Department.
    3 Calculations are then completed for square
    4 footage of the various leathers finished,
    5 categorized by the correct category of
    6 leathers, i.e., Specialty, Standard
    7 Non-Stain, Standard Stain, Water-resistant,
    8 or Nonwater-resistant leathers, and VOMs and
    9 HAPs per 1000 square feet are extrapolated.
    10
    Recordkeeping for these new
    11 specialty leathers would be set up with their
    12 own category, i.e., Specialty II Leathers,
    13 further broken down into water-resistant and
    14 non-water-resistant leathers as they are
    15 listed under NESHAP and all finishes would be
    16 tracked separately and applied to the square
    17 footage of these leathers. See Attachment
    18 2.
    19
    Horween submitted comments
    20 to USEPA regarding the proposed NESHAP. One
    21 of our comments regarded the complexity of
    22 recordkeeping under the proposed rule. We
    23 requested simply adding the HAP information
    24 to our current recordkeeping. In the final
    L.A. REPORTING (312) 419-9292

    37
    1 rule, Section F, our concerns were addressed
    2 by already maintained purchase and usage
    3 records are all that will be needed to
    4 demonstrate compliance. On March 13th, 2002,
    5 I spoke with Bill Schrock, USEPA's technical
    6 person who developed the NESHAP to confirm
    7 that our existing recordkeeping would be
    8 satisfactory to the USEPA. He reiterated
    9 that the way we document our finishes with
    10 inventory usage records and production
    11 records is fine. The recordkeeping shown in
    12 the NESHAP standard was meant only as an
    13 example. Furthermore, in Prime Tanning's Air
    14 Emission License, the Recordkeeping/Reporting
    15 section describes the same basic process that
    16 we currently use.
    17
    In summary, we are in
    18 agreement with IEPA Section 218.929(d)(1)
    19 draft with the removal of the language by
    20 batch and would therefore ask the Board to
    21 delete these two words as unnecessary to
    22 assure compliance.
    23
    The second issue I want to
    24 address stemming from IEPA's proposal is the
    L.A. REPORTING (312) 419-9292

    38
    1 request by Region V USEPA that the relief for
    2 these two new specialty leathers be
    3 predicated on Horween's employing the use of
    4 HVLP spray guns.
    5
    During discussions with IEPA
    6 and USEPA, concerns were raised regarding
    7 HVLP spray guns for our spray finishing
    8 machines. After discussing this issue with
    9 many finish providers and tanners, we are all
    10 in agreement that these spray guns will not
    11 work for our leathers. Problems arise
    12 because there would be less atomization of
    13 the finishes and less penetration into the
    14 leather. The finishes would lay-up on the
    15 surface of the leather, and our facility does
    16 not have the space capacity for longer drying
    17 runs. The leather would stick together as it
    18 is stacked after spraying, and the finishes
    19 would be ruined on all of the leather. HVLP
    20 spray guns are generally used for garment and
    21 upholstery leathers; not shoe leather.
    22 However, we are borrowing a spray gun to try
    23 our various finishes on our leather in our
    24 sample booth today, June 19th, 2002. In
    L.A. REPORTING (312) 419-9292

    39
    1 addition, we have contacted the salesman that
    2 Gary Beckstead, IEPA, suggested we contact
    3 for the new technology spray guns. However,
    4 as Mr. Beckstead stated, these are not HVLP
    5 spray guns.
    6
    Our spray machines use Binks
    7 model 95 AR automatic air spray guns with
    8 ratchet needle adjustments. The two air
    9 compressors for the big spray machine and
    10 small spray machine are 100 psi and 115 psi
    11 respectively. The actual spraying pressure
    12 is adjusted to approximately 60 pounds per
    13 square inch depending on the finish. Both
    14 our spray machines are set up with water
    15 curtains and electronic eyes to reduce the
    16 amount of finish overspray. Our aniline
    17 finishes are sprayed on with multiple,
    18 extremely light coats rather than high volume
    19 coats.
    20
    Horween is a very small
    21 tannery that finishes leathers on all the
    22 lines that are available. We only have two
    23 spray machines and we need to be able to
    24 spray all of our leathers on either of these
    L.A. REPORTING (312) 419-9292

    40
    1 machines. We cannot dedicated one entire
    2 spray machine to only these types of leather.
    3 Not to mention that the HVLP spray guns would
    4 only work on the stain coats which we already
    5 brush on in many cases. Spraying, even with
    6 the HVLP spray guns, would produce more
    7 atomization and emissions than using our
    8 brush finishing machines and swabbing the
    9 stain coats.
    10
    Therefore, we request that
    11 IEPA Section 218.929(c)(4) regarding the HVLP
    12 spray guns be removed from the draft.
    13
    There are several other
    14 points that I would like to make regarding
    15 the proposed alternate Site-Specific
    16 Rulemaking language submitted by IEPA. In
    17 Section 218.929(c), IEPA proposes that
    18 Horween have standard operating and
    19 maintenance procedures or SOMPs in place. As
    20 we stated in our April 22nd, 2002, letter to
    21 Mr. Dick Forbes of the IEPA, Horween has no
    22 objection to the inclusion of SOMPs in the
    23 Rulemaking, although we feel that it is
    24 redundant as these would be required as part
    L.A. REPORTING (312) 419-9292

    41
    1 of the Title V Permit requirement.
    2
    Horween has always had
    3 procedures in place to minimize the
    4 volatilization of solvents as set forth in
    5 Attachment 2 to the testimony. It is our
    6 understanding that the SOMP provisions found
    7 at subparagraph (c) subparts 1, 2, and 3 do
    8 not require any additional steps beyond those
    9 currently in place at Horween.
    10
    The first date for
    11 compliance as far as recordkeeping with the
    12 NESHAP is February 28th, 2005. Combining our
    13 various leathers, while adjusting our
    14 finishes, may enable Horween to meet the
    15 NESHAP regulations that are 5.6 pounds per
    16 1000 square feet for water-resistant leathers
    17 and 3.7 pounds per 1000 square feet for
    18 non-water-resistant leathers, provided this
    19 Site Specific Rule change is adopted and
    20 USEPA modifies its reference to specialty
    21 leathers.
    22
    During 2001, our HAPs averaged 6.75
    23 pounds per 1000 square feet for
    24 water-resistant leathers and 4.39 pounds per
    L.A. REPORTING (312) 419-9292

    42
    1 1000 square feet for non-water-resistant
    2 leathers. In January through May of this
    3 year, we are averaging 4.98 pounds per 1000
    4 square feet for water resistant leathers and
    5 2.34 pounds per 1000 square feet for
    6 non-water-resistant leathers. As this shows,
    7 Horween is continuously adjusting finish
    8 components to try to reduce both VOM and HAP
    9 emissions, while maintaining our high
    10 standards of finished leather.
    11
    As an explanation of our
    12 limits, we are allowed the following VOM
    13 emissions in our Title V CAAPP Permit.
    14 There's a table here that shows emission
    15 sources and VOM emissions. For specialty
    16 leather, not to exceed 38 pounds per 1000
    17 square feet; standard stain, not to exceed 10
    18 tons per year; standard non-stain, not to
    19 exceed 3.5 pounds per gallon as applied;
    20 specialty leather, standard leather,
    21 miscellaneous, including cleanup, not to
    22 exceed eight pounds per hour from individual
    23 units; cordovan, not to exceed eight pounds
    24 per hour, three tons per year, and one ton
    L.A. REPORTING (312) 419-9292

    43
    1 per year per source; cordovan, miscellaneous,
    2 excluding cleanup, and pasting, not to exceed
    3 five tons per year combined; pasting room
    4 dryer, not to exceed .25 tons per year;
    5 source-wide emissions, not to exceed 99.12
    6 tons per year.
    7
    Through the ERMS program,
    8 the total baseline emissions for Horween are
    9 28.1 tons per season or 281 Allotment Trading
    10 Units. As you can see by our recent usage of
    11 ATUs, we will hopefully be able to sell or
    12 retire 300 ATUs this year. In the year 2000,
    13 we were given 281 ATUS. We used 192. The
    14 balance was 89. In the year 2001, adding the
    15 281 to the 89 that were left over from the
    16 previous year, there's 370. We used 158 of
    17 those, and the balance was 212. For 2002, we
    18 received 281 ATUs. Adding the 212 from
    19 previously gives us 493 total ATUs. So we
    20 will have an excess.
    21
    The last point that I want
    22 to address is the issue of NESHAP recently
    23 enacted by USEPA. The NESHAP was enacted on
    24 February 27th, 2002, and is found at 40 CFR
    L.A. REPORTING (312) 419-9292

    44
    1 Part 63.
    2
    As previously stated, we
    3 worked closely with Bill Schrock of USEPA
    4 during the formulation of this standard. We
    5 supplied USEPA with a series of comments and
    6 answered a number of technical questions.
    7 USEPA's consultants, in fact, physically
    8 visited the Horween tannery. As a result of
    9 our involvement, USEPA has included
    10 recognition that Horweens operations are
    11 unique. Basically, USEPA has combined all of
    12 Horween's specialty coatings into the
    13 water-resistant category in order to provide
    14 Horween with a higher allowable HAP content
    15 for specialty coatings. Notwithstanding,
    16 this effort by USEPA, Horween was unable to
    17 comply. Accordingly, Horween filed a
    18 Petition for Review of the Leather NESHAP
    19 standards to address the specialty leather
    20 issues and the limits assigned to
    21 water-resistant and non-water-resistant
    22 leathers. Our lawyers have entered into
    23 settlement discussions with USEPA, which
    24 resulted in USEPA petitioning the Appellate
    L.A. REPORTING (312) 419-9292

    45
    1 Court to stay filings in this proceeding
    2 while we attempt to resolve our differences.
    3 We are hopeful USEPA will agree to modify the
    4 NESHAP to refer to specialty leathers as
    5 regulated by the Pollution Control Board,
    6 including the two new categories of specialty
    7 leather we are seeking approval for in this
    8 proceeding, rather than referencing the 25
    9 percent oils, fats, and grease content as
    10 currently contained in the NESHAP.
    11
    We are also hopeful USEPA
    12 will determine to proceed with the delisting
    13 of ethylene glycol monobutyl ether (EGBE),
    14 the CAS number for that is 112-07-2, which is
    15 the principal HAP solvent that subjects
    16 Horween to the NESHAP.
    17
    Horween has proven itself to
    18 be very proactive in trying to reduce and
    19 eliminate emissions of VOMs and HAPs.
    20 However, because this is a specialty job
    21 shop, we need to expand our definition of
    22 specialty leathers by adding this Site
    23 Specific Rulemaking. Through these proposed
    24 additional categories, Horween will have the
    L.A. REPORTING (312) 419-9292

    46
    1 ability to produce new leathers to meet
    2 customer demands, while complying with
    3 Federal and State Regulations.
    4
    HEARING OFFICER MURPHY: Thank
    5 you.
    6
    MR. HARSCH: Ms. Christensen, I
    7 show you what has been previously marked and
    8 supplied to the hearing officer and to the
    9 Agency as Exhibit 1.
    10
    Are you familiar with that
    11 document?
    12
    MS. CHRISTENSEN: Yes.
    13
    MR. HARSCH: Is that a true and
    14 accurate copy of the letter that you
    15 submitted to Mr. Forbes?
    16
    MS. CHRISTENSEN: Yes.
    17
    MR. HARSCH: Including the
    18 colored readable --
    19
    MS. CHRISTENSEN: Color coded
    20 attachments, yes.
    21
    MR. HARSCH: And that is an
    22 attachment, too, to your prefiled testimony
    23 as well?
    24
    MS. CHRISTENSEN: Yes.
    L.A. REPORTING (312) 419-9292

    47
    1
    MR. HARSCH: And the only
    2 difference is that this is, in fact, color
    3 coded and readable?
    4
    MS. CHRISTENSEN: Yes.
    5
    MR. HARSCH: I would move,
    6 Mr. Hearing Officer, for the acceptance into
    7 the record of Exhibit 1.
    8
    HEARING OFFICER MURPHY: If no
    9 one objects, I'd like to enter this into the
    10 record. Hearing no objections, the letter
    11 dated April 22nd, 2002, to Mr. Dick Forbes of
    12 the Illinois Environmental Protection Agency
    13 from Ms. Julie M. Christensen of Horween
    14 Leather Company, which includes a readable
    15 copy of a chart on, I believe, five, page
    16 five, would be Exhibit 1.
    17
    We will now hear the
    18 prefiled testimony from the Illinois
    19 Environmental Protection Agency. I'd like to
    20 introduce Rachel Doctors of the Illinois
    21 Environmental Protection Agency.
    22
    Ms. Doctors, would you like
    23 to make an opening comment?
    24
    MS. DOCTORS: I have a short
    L.A. REPORTING (312) 419-9292

    48
    1 opening statement to make.
    2
    Good morning. My name is
    3 Rachel Doctors. I am representing the
    4 Illinois EPA in this matter. The Illinois
    5 EPA has reviewed the Horween Leather
    6 Company's submittal -- submitted proposal For
    7 Site Specific Rulemaking. Your request, if
    8 granted by the Board, will be submitted to
    9 the USEPA as a state implementation
    10 submittal, a revision of the Illinois Ozone
    11 Nonattainment Plan for the Chicago area for
    12 RACT rules for leather coaters at 218.3035
    13 Illinois Administrative Code Subpart P.
    14
    Illinois EPA believes that
    15 the proposal as attached to Mr. Beckstead's
    16 testimony is approvable by USEPA. Illinois
    17 EPA has discussed the proposal extensively
    18 with the company and USEPA.
    19
    As Mr. Beckstead will
    20 testify, USEPA did raise several issues
    21 initially, the majority which have been --
    22 I'm sorry. Back up.
    23
    Mr. Beckstead will address
    24 USEPA's issues that they raised. These
    L.A. REPORTING (312) 419-9292

    49
    1 issues were also discussed with the company.
    2 The majority of these issues have been
    3 resolved except for two, the high volume low
    4 pressure spray guns and the recordkeeping.
    5 I'd like to note that the word by batch was
    6 specifically inserted by USEPA. They
    7 reviewed the draft language and they
    8 specifically requested that word.
    9
    Illinois EPA then prepared
    10 the draft that we're discussing incorporating
    11 the changes. The underlined language is
    12 where agreement has not been reached between
    13 the company and the Agency. Mr. Beckstead
    14 will go ahead.
    15
    MR. BECKSTEAD: My name is Gary
    16 Beckstead. My academic credentials include a
    17 bachelor of ceramic engineering degree from
    18 Georgia Institute of Technology, Atlanta,
    19 Georgia, and a master of science degree in
    20 metallurgical engineering from Stanford
    21 University, Stanford, California.
    22
    I have been employed by the
    23 Illinois Environmental Protection Agency
    24 since April 1991, as an environmental
    L.A. REPORTING (312) 419-9292

    50
    1 protection engineer in the environmental
    2 policy and planning section of the division
    3 of air pollution control in the bureau of
    4 air. In general, I review emissions
    5 inventories and prepare technical support for
    6 proposed ozone regulations affecting
    7 stationary point sources.
    8
    In this capacity, I have
    9 responsibility for projects that address the
    10 expansion and applicability of reasonably
    11 available control technology on sources
    12 emitting ozone precursors. In addition, I
    13 have responsibility for quality control and
    14 quality assurance of ozone inventories and
    15 the evaluation of point source emissions.
    16
    I prepared the technical
    17 support for Rulemakings R91-28, R93-14,
    18 R94-16, and R94-21. Rulemaking R91-28
    19 involved the geographic expansion of RACT to
    20 sources emitting volatile organic material
    21 that were located in Goose Lake and Aux Sable
    22 townships in Grundy County and Oswego
    23 township in Kendall County.
    24
    I reviewed the Illinois EPA
    L.A. REPORTING (312) 419-9292

    51
    1 emissions inventory for potentially affected
    2 point sources, such as coating and printing
    3 operations, and evaluated the impact of this
    4 rulemaking. For Rulemaking R93-14, I
    5 evaluated changing the definition of major
    6 source from 100 tons per year to 25 tons per
    7 year in the Chicago ozone nonattainment area.
    8 In addition to coating operations, this
    9 involved evaluating all other point source
    10 emission categories, including miscellaneous
    11 fabrication processes and chemical
    12 formulation processes.
    13
    I have also assisted in
    14 evaluating Illinois point source emissions to
    15 determine potential emission reductions for
    16 meeting the requirements of the Clean Air Act
    17 for the 15 percent Rate-of-Progress Plan and
    18 other requirements.
    19
    Rulemakings R94-16 and
    20 R94-21 were technically supported based on
    21 this evaluation. I evaluated the impact and
    22 reasonableness of lowering the applicability
    23 level for air oxidation processes, which
    24 R94-16 addressed, and for tightening surface
    L.A. REPORTING (312) 419-9292

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    1 coating standards, which R94-21 addressed.
    2
    In regards to the present
    3 site-specific proposal before the Board which
    4 addresses regulatory relief from 35 Illinois
    5 Administrative Code Parts 218.926 for Horween
    6 Leather, I reviewed the proposed
    7 site-specific changes and determined the
    8 environmental impact; evaluated the changes
    9 to control requirements for consistency with
    10 other existing RACT regulations, and assessed
    11 the effect that the proposed amendments may
    12 have on the State Implementation Plan for the
    13 Chicago nonattainment area.
    14
    In Rulemaking R93-14 -- this
    15 is the background of what was going on. In
    16 Rulemaking R93-14, which the applicability
    17 level for RACT was lowered from 100 tons per
    18 year to 25 tons per year, it was determined
    19 that, in general, RACT for sources with
    20 emissions between 25 and 100 tons was the
    21 same as for those greater than 100 tons per
    22 year sources. That is, 3.5 pounds VOM per
    23 gallon of coating applied or 81 percent
    24 control using add-on devices was RACT.
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    1
    However, for some sources
    2 regulated under Subpart PP: Miscellaneous
    3 Fabricated Product Manufacturing Processes,
    4 3.5 pounds of VOM per gallon of coating
    5 applied or 81 percent control using add-on
    6 devices was not RACT. Certain types of
    7 leather coating operations were identified as
    8 one such category.
    9
    In studying RACT regulations
    10 for leather coating operations in Wisconsin
    11 and New England, it was found that the 3.5
    12 pounds of VOM per gallon requirement was RACT
    13 for most coatings applied to leather;
    14 however, in some certain special instances,
    15 less stringent limits were needed.
    16 Therefore, a, quote, specialty leather,
    17 unquote, subcategory was created to address
    18 these special instances for Illinois
    19 sources.
    20
    For the specialty leather
    21 subcategory, RACT was determined to be 38
    22 pounds VOM per thousand square foot of
    23 leather produced on the basis of the
    24 Wisconsin RACT regulations and discussions
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    54
    1 with potentially impacted sources, namely,
    2 Horween. To qualify for the specialty
    3 leather limits, the leather produced had to
    4 meet the following criteria, as defined at
    5 Section 211.6170(a) and (b) of 35 Illinois
    6 Administrative Code Subtitle B.
    7 A, specialty shoe leather such as Chromexcel
    8 leather that is, number one, a select grade
    9 of chrome tanned, bark retanned leather; two,
    10 retanned to over 25 percent by weight grease,
    11 wax, and oils by direct contact with such
    12 materials in liquefied form at elevated
    13 temperatures without the presence of water;
    14 three, finished with coating materials which
    15 adhere to the leather surface to provide
    16 color and a rich visual luster while allowing
    17 a surface that feels oily; and, four, used
    18 primarily for manufacture of shoes, or, B,
    19 specialty football leather such as tanned in
    20 tack leather that is, one, top grade, chrome
    21 tanned, bark retanned, and fat liquored
    22 leather; two, finished with coating materials
    23 which impregnate into the leather to produce
    24 a permanent tacky exterior surface on the
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    1 leather. This tacky characteristic continues
    2 to exist with wear; and, three, used
    3 primarily for the manufacture of footballs.
    4
    The existing Illinois EPA
    5 RACT rule for leather coaters is set forth in
    6 Subpart PP: Miscellaneous Fabricated Product
    7 Manufacturing Processes of 35 IAC Sections
    8 218.920-218.928. It limits coating used on
    9 leather to 3.5 pounds VOM per gallon except
    10 for those leathers that meet the definition
    11 of specialty leather. Coatings used on
    12 specialty leathers are limited to 38 pounds
    13 of VOM per thousand square foot of specialty
    14 leather produced.
    15
    Also included in the rule is
    16 a 10-ton per year exemption for VOM emissions
    17 from stains that are used on leathers other
    18 than those defined as specialty leather.
    19 This rule was adopted by the Board on January
    20 6th, 1994, and approved by USEPA Region V on
    21 October 10th, 1996 (61 FR 54556.)
    22
    In the current site-specific
    23 rule proposal, Horween is requesting relief
    24 from the existing leather coating RACT rule
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    56
    1 at Section 218.926. To be competitive in the
    2 ever-changing leather market, Horween needs
    3 to produce leathers that cannot be made using
    4 coatings that meet the 3.5 pounds per gallon
    5 limit of Section 218.926. Furthermore, this
    6 leather does not meet the criteria for
    7 specialty leather primarily because the fats,
    8 grease, and oils content is less than 25
    9 percent. Therefore, the new leathers do not
    10 meet the criteria for the 38 pounds of VOM
    11 per thousand square feet of the specialty
    12 leather.
    13
    In an effort to determine
    14 the RACT that should apply to the new
    15 leathers, Illinois EPA, with the assistance
    16 of USEPA Region V, made a nation-wide search
    17 of leather coaters. The most current RACT
    18 determination for leather coaters approved by
    19 USEPA was for Prime Tanning located in
    20 Berwick, Maine, in July 1997 (65 FR 20749.).
    21 The federally approved RACT limits
    22 established are 14 pounds per thousand square
    23 foot of leather produced for non-water
    24 resistant leather and 24 pounds per thousand
    L.A. REPORTING (312) 419-9292

    57
    1 for water resistant leather. Region V
    2 advised Illinois EPA that a site-specific
    3 rule based on this RACT determination would
    4 be approvable. Prime Tanning's rule also
    5 included provisions for the use of high
    6 volume low pressure spray guns, standard
    7 operating procedures, and testing to
    8 determine whether a leather is water
    9 resistant.
    10
    Illinois EPA discussed with
    11 Horween the Prime Tanning rule and indicated
    12 that it could support a site-specific
    13 submittal to the Illinois Pollution Control
    14 Board based on the RACT limits established at
    15 Prime Tanning. After several reiterations
    16 and re-writes, Horwen submitted a
    17 site-specific rulemaking proposal to the
    18 Illinois Pollution Control Board in February
    19 of 2002.
    20
    Illinois EPA and Region V
    21 reviewed this initial submittal of February
    22 2002 and found it inconsistent with the Prime
    23 Tanning rule or deficient in the following
    24 areas.
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    58
    1
    Number one, a means of
    2 separating emissions from new leather
    3 production from existing leather being
    4 produced at Horween that are already
    5 regulated by the existing RACT regulations.
    6 Number two, testing to an ASTM standard to
    7 determine water-resistant versus
    8 non-water-resistant status. Number three,
    9 recordkeeping to track and document pounds of
    10 VOM per thousand square feet of leather
    11 produced. Number four, use of high
    12 volume/low pressure spray guns and electronic
    13 eyes, which determine when leather is in the
    14 guns spray area, to minimize overspray, and,
    15 number five, standard operating procedures to
    16 minimize emissions in production of leathers.
    17
    Illinois EPA was advised
    18 that without these issues being addressed,
    19 Region V could not foresee approving the
    20 site-specific submittal because the proposal
    21 was not consistent with the Prime Tanning
    22 RACT rule. Illinois EPA shared these
    23 concerns with Horween and drafted a proposed
    24 version of a site-specific rule that
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    59
    1 addressed USEPA's concerns and shared the
    2 proposal with Horween.
    3
    The Illinois EPA
    4 site-specific proposal. After discussions
    5 with Horween and USEPA regarding these
    6 issues, an agreement was reached on issues
    7 one, two, and five above. However, issues
    8 three and four are still outstanding.
    9 Illinois EPA revised its proposed version to
    10 incorporate the agreed upon changes and has
    11 also included suggested solutions to the
    12 recordkeeping and HVLP issues. A copy of
    13 Illinois EPA's revised proposed site-specific
    14 regulation is attached. The underlined
    15 portions indicate the areas where we have not
    16 reached an agreement.
    17
    The proposed site-specific
    18 regulation uses a generic approach and does
    19 not specify particular names for the new
    20 leathers that Horween is planning to coat.
    21 In using the generic approach, a new
    22 site-specific regulation should not have to
    23 be filed each time the fashion emphasis
    24 changes in the leather industry, as long as
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    60
    1 the 20-ton per year limit is not violated.
    2
    In addition, at the request
    3 of USEPA with Horween's concurrence, the
    4 stipulation that the new cementable and dress
    5 or performance leathers are not eligible for
    6 the 10-ton stain exemption specified at 35
    7 Illinois Administrative Code Section
    8 218.926(b)(2)(A)(i) has been included.
    9
    One of the remaining issues,
    10 recordkeeping, focuses on the ability of
    11 field inspectors to verify and confirm or
    12 deny Horween's monthly estimates. USEPA has
    13 indicated that the need for line production
    14 records for each batch of leather coated for
    15 the various types of leather produced is
    16 needed. These batch records need to include
    17 the amount of coating applied, the VOM
    18 content of the coating applied, and the area
    19 of leather that it was applied on, and the
    20 type of leather that is being coated.
    21
    Horween has proposed to use
    22 its current recordkeeping procedures as
    23 contained in its approved Clean Air Act
    24 Permit Program to track the new types of
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    61
    1 leathers. USEPA indicated that in light of
    2 the additional categories of leathers, dress
    3 or performance water-resistant, dress or
    4 performance non-water-resistant, cementable
    5 water-resistant, and cementable
    6 non-water-resistant, that the current
    7 procedures were not adequate to verify
    8 compliance. The proposal also provides
    9 Horween with an opportunity to propose
    10 alternative recordkeeping procedures to
    11 Illinois and USEPA for approval.
    12
    Regarding the use of HVLP
    13 guns, Horween has not provided sufficient
    14 documentation to support that they cannot use
    15 HVLP in their operations. Therefore,
    16 Illinois EPA is proposing to provide Horween
    17 with a year to evaluate whether this
    18 technology is viable for their leather
    19 coating operations. If at the end of this
    20 timeframe Horween finds they cannot use HVLP,
    21 they are to provide documentation.
    22
    In closing, Illinois EPA
    23 would note that USEPA has promulgated a
    24 National Emission Standard for Hazardous Air
    L.A. REPORTING (312) 419-9292

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    1 Pollutants for Leather Finishing Operations
    2 on February 27th, 2002 (67 FR 9156). This
    3 new NESHAP may impact Horween's operations if
    4 ethylene glycol is not delisted from Section
    5 112(b) of the CAA.
    6
    In Conclusion, the proposed
    7 changes for Horween Leather Company, which
    8 limit maximum VOM emissions from new leather
    9 coating operations to 20 tons per year, would
    10 have minimal adverse environmental effects in
    11 the Chicago ozone nonattainment area. The
    12 proposed site-specific changes do not impose
    13 control requirements that are inconsistent
    14 with other currently existing RACT
    15 regulations and the proposed site-specific
    16 amendments do not adversely impact the
    17 Illinois SIP.
    18
    HEARING OFFICER MURPHY: At this
    19 time, would any other parties from the
    20 Horween Leather Company or the IEPA like to
    21 make any further comments?
    22
    MR. HARSCH: Yes. We would like
    23 to -- I have several questions of
    24 Mr. Beckstead, and then I'd like to call my
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    63
    1 witnesses to provide some rebuttal.
    2
    Mr. Beckstead, is the term
    3 high volume low pressure, HVLP, spray a
    4 defined term in the air pollution
    5 regulations?
    6
    MR. BECKSTEAD: Yes.
    7
    MR. HARSCH: Is the definition
    8 found at 211.2990?
    9
    MR. BECKSTEAD: That sounds
    10 correct.
    11
    MR. HARSCH: That definition, if
    12 I read it, is high volume low pressure, HVLP,
    13 spray means equipment used to apply coatings
    14 by the means of a spray gun which operates
    15 between 0.1 and 10 PSI air pressure; is that
    16 correct?
    17
    MR. BECKSTEAD: That's correct.
    18
    MR. HARSCH: In conversations
    19 with Horween that I participated in, you had
    20 suggested the type of spray gun that they
    21 should investigate, did you not?
    22
    MR. BECKSTEAD: I suggested a
    23 supplier who manufactures HVLP guns, yes.
    24
    MR. HARSCH: It is our
    L.A. REPORTING (312) 419-9292

    64
    1 understanding that that HVLP spray gun
    2 operates at a pressure approximately 15 PSI,
    3 which is outside the range of that specified
    4 in the definition; is that not correct?
    5
    MR. BECKSTEAD: I'm familiar with
    6 the company that makes HVLP, and they do have
    7 a gun that they would like to be classified
    8 as HVLP, and it does operate at 12 to 15 PSI.
    9
    MR. HARSCH: So currently that
    10 gun would not meet the definition of a high
    11 volume --
    12
    MR. BECKSTEAD: Currently, you're
    13 right.
    14
    MR. HARSCH: -- low pressure
    15 spray nozzle; is that correct?
    16
    MR. BECKSTEAD: That's correct.
    17 If I could also comment there, it operates at
    18 a lot less than 60 PSI. The present guns
    19 that Horween would be using we anticipate
    20 there would be emission reductions. It would
    21 allow them to test their cutting envelope of
    22 technology. Is looked like a win-win
    23 situation to us. That's why I recommended
    24 it.
    L.A. REPORTING (312) 419-9292

    65
    1
    MR. HARSCH: I understand, but --
    2
    MR. BECKSTEAD: It presently does
    3 not meet the definition of HVLP. If that's
    4 the point you're making, Roy, you are
    5 correct.
    6
    MR. HARSCH: Okay. At this
    7 point, I'd like to call Mr. Horween and ask a
    8 couple additional questions.
    9
    HEARING OFFICER MURPHY: Go
    10 ahead.
    11
    MR. HARSCH: Mr. Horween, since
    12 the filing of the prepared testimony, has
    13 Horween had the opportunity to actually test
    14 spray nozzles, alternate spray nozzles?
    15
    MR. HORWEEN: We have. We've
    16 gotten a hold of one of the sample guns.
    17 It's a true HVLP gun and just tried samples
    18 on it first.
    19
    MR. HARSCH: Would you please
    20 explain on the record the results of that
    21 effort?
    22
    MR. HORWEEN: Well, it was very
    23 consistent with what we have been told by our
    24 finisher and by our suppliers, for our type
    L.A. REPORTING (312) 419-9292

    66
    1 of leather that there were going to be some
    2 issues. I mean, when we got the -- the only
    3 way we could get the particles such where
    4 they would go onto the leather, they were
    5 operating at a much higher pressure, and at
    6 the lower pressures, such a large amount of
    7 material comes out that it doesn't give us
    8 anything that looks like somebody would be
    9 making.
    10
    MR. HARSCH: When you talk about
    11 at the lower pressures, you mean within the
    12 definition?
    13
    MR. HORWEEN: Within the
    14 definition. That's correct.
    15
    MR. HARSCH: So it would not
    16 function with your coatings?
    17
    MR. HORWEEN: No. That's
    18 correct.
    19
    MR. HARSCH: And what problems
    20 did -- were you told that would cause that to
    21 not function?
    22
    MR. HORWEEN: Well, it could be a
    23 combination of things. The particle sizes
    24 being enlarged, we would get extremely
    L.A. REPORTING (312) 419-9292

    67
    1 large -- we would get a lot of the material
    2 to put on the leather, and, you know, we
    3 apply, particularly in our top finishes, a
    4 series of light coats to build the film, and
    5 the adhesion issue is only part of the
    6 problem.
    7
    You know, you can get a coat
    8 like that to adhere in all likelihood, but
    9 the fact of the matter is if you're putting
    10 too much finish on our type of leather, it
    11 gives you a piece of leather that would be
    12 cosmetically unacceptable.
    13
    You get a leather that we
    14 call gray. I mean, if you put that on and if
    15 you could get it dry, which is another issue,
    16 on the pieces that we saw, by the time you do
    17 the final ironing with a very heavy coat like
    18 that on our leather, when the leather was
    19 born, it would give a very coarse appearance,
    20 which just isn't consistent with the type of
    21 product that we would make.
    22
    What we saw basically was
    23 that -- for example, it's my understanding
    24 that Prime uses those types of guns because
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    68
    1 they've made an entry into the upholstery
    2 business. There are tremendous price
    3 pressures in that business. So the push
    4 there has been to go to simpler finishing
    5 systems, going back to our -- the pine
    6 example.
    7
    If you're going to put two
    8 coats on, an HVLP system would be fabulous,
    9 but keep in mind that a lot of that
    10 upholstery leather that's done, they're
    11 putting so much finish on there that
    12 underneath it doesn't even have to be
    13 leather.
    14
    You could put finish on a
    15 piece of canvas and finish it out and side by
    16 side in a lot of cases without putting your
    17 hands on it. I would have a difficult time
    18 telling you whether or not it was leather.
    19
    Our customers -- you know,
    20 our customers won't buy that. You know, the
    21 fact of the matter is to increase that level
    22 of application, you could theoretically get
    23 the amount of finish on in far fewer coats.
    24
    So, I mean, on the one hand,
    L.A. REPORTING (312) 419-9292

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    1 I guess you could say I could finish lots
    2 more leather with this type of gun, but I
    3 would not be able to sell it to anybody.
    4
    MR. HARSCH: I believe in the
    5 direct testimony that was submitted on behalf
    6 of Horween, you relayed the experiences of
    7 the finisher that you hired from the tannery
    8 in Wisconsin?
    9
    MR. HORWEEN: Yes.
    10
    MR. HARSCH: In experiments that
    11 you ran last week, was that experience
    12 duplicative or substantiated?
    13
    MR. HORWEEN: Yes. I mean,
    14 basically he had -- and we had him involved
    15 in it because he had more experience than any
    16 of us do. We tried various adjustments on
    17 it, and with the finish formulations that we
    18 have, that particular gun we have just didn't
    19 work.
    20
    The finish company that we
    21 got the gun from let us use it because they
    22 had -- they had purchased it with the idea
    23 that they were going to run samples for one
    24 of the companies that was going to make the
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    70
    1 attempt to switch over to these guns.
    2
    So we got it in basically
    3 new condition because they used it four or
    4 five times and were unable to make it work on
    5 the types finishes that they were using for
    6 that other company.
    7
    MR. HARSCH: Those finishes are
    8 consistent with the type of finishes that you
    9 use?
    10
    MR. HORWEEN: Yes, they are.
    11
    MR. HARSCH: So, in summary, it
    12 would not work at the pressures which are
    13 defined as low volume -- high volume low
    14 pressure?
    15
    MR. HORWEEN: That's correct, not
    16 at present.
    17
    MR. HARSCH: And even if you
    18 increased the pressure, you weren't able to
    19 make it work?
    20
    MR. HORWEEN: That's correct.
    21
    MR. HARSCH: I'd like at this
    22 point to call and ask some questions of
    23 Ms. Christensen.
    24
    HEARING OFFICER MURPHY: You may
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    1 proceed.
    2
    MR. HARSCH: You testified in
    3 your prefiled testimony regarding the manner
    4 in which you currently maintain records and
    5 how you would propose to maintain records
    6 utilizing the new categories of specialty
    7 leathers; is that correct?
    8
    MS. CHRISTENSEN: Yes.
    9
    MR. HARSCH: In your -- do you
    10 share USEPA's concerns that you will not be
    11 able to maintain accurate records with new
    12 categories under your current method?
    13
    MS. CHRISTENSEN: Under my
    14 current method, all I'd have to do is add a
    15 few more columns, a few fractions to be able
    16 to work it out. It should not be any problem
    17 at all.
    18
    MR. HARSCH: At this point, I
    19 would rest.
    20
    HEARING OFFICER MURPHY: Ms. Doctors --
    21
    MR. HARSCH: Oh, I'm sorry. We
    22 have one additional point.
    23
    There was reference in your
    24 prefiled testimony to the technical support
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    72
    1 document.
    2
    Do you have a comment that
    3 you'd like to make regarding the technical
    4 support document?
    5
    MS. CHRISTENSEN: Oh. The
    6 technical support document had something in
    7 there about our cordovan department and that
    8 we didn't have any VOM emissions from the
    9 cordovan department, and I just reviewed all
    10 this information, you know, before we came,
    11 and I noticed that that was in there at that
    12 time, and in actuality through our purchase
    13 records and chemicals and everything, I
    14 realize that there is a small quantity of
    15 VOMs that are emitted in the cordovan
    16 department, and that wasn't reflected there.
    17 So I wanted to point that out.
    18
    MR. HARSCH: And that is
    19 reflected -- that was subsequently found out
    20 and is reflected in your CAAPP permit?
    21
    MS. CHRISTENSEN: Yes, and it
    22 also is reflected in all my recordkeeping,
    23 but that's --
    24
    MR. HORWEEN: It always has
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    73
    1 been.
    2
    MS. CHRISTENSEN: It always has
    3 been, yes. It was just an oversight.
    4
    Also, on the -- can I talk
    5 about the recordkeeping a little more?
    6
    MR. HARSCH: You can testify to
    7 anything you'd like to testify to.
    8
    MS. CHRISTENSEN: My biggest
    9 concern with the recordkeeping or with the
    10 problem that they have with the recordkeeping
    11 is that generally what we're talking about is
    12 the ucosolar dyes because that's what is
    13 divided up between different leathers, and
    14 when I was calculating the total amount of
    15 ucosolar dyes that we use over a year, it's
    16 like three-and-a-half tons of VOM emissions
    17 from that.
    18
    Now, that three-and-a-half
    19 tons could be applied to any one of our
    20 categories of leather and we would not be
    21 exceeding our limit. So, I mean, it's a case
    22 where it's not that much chemical, not that
    23 much VOMs that we're emitting, but it's a
    24 problem.
    L.A. REPORTING (312) 419-9292

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    1
    So even if I put it in each
    2 category together, we still wouldn't be out
    3 of our limits that we have. So there really
    4 isn't an issue as far as problems with
    5 applying it to the right leather.
    6
    MR. HARSCH: By that, based on
    7 our discussions with IEPA and USEPA, you
    8 understood that USEPA's concerns were over
    9 the fact that these dyes are used on --
    10 currently used on standard and specialty
    11 leathers and they would also be used in -- on
    12 the two new categories of specialty leathers,
    13 correct?
    14
    MS. CHRISTENSEN: Right.
    15
    MR. HARSCH: So what you were
    16 saying is that you could essentially triple
    17 count --
    18
    MS. CHRISTENSEN: Right.
    19
    MR. HARSCH: -- in your records
    20 and apply the three-and-a-half tons that you
    21 used last year to standard leathers, three
    22 and a half tons to special leathers, and
    23 three-and-a-half tons to projected production
    24 of the new specialty leather category and
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    1 still be able to demonstrate compliance?
    2
    MS. CHRISTENSEN: Yes. It would
    3 fit within our limits.
    4
    MR. HARSCH: And do I understand
    5 that what you currently do with respect to
    6 those dyes in your recordkeeping today is
    7 take the amount of that dye material that is
    8 used in a month and divide it amongst the
    9 production of standard leather and specialty
    10 leather?
    11
    MS. CHRISTENSEN: Yes.
    12
    MR. HARSCH: And then do a
    13 percentage of --
    14
    MS. CHRISTENSEN: Percentages of
    15 square footage that's run, and my concern as
    16 far as keeping track of it by batch is that
    17 it's like an artist's pallet that they do up
    18 there, you know, in our finishing
    19 department.
    20
    They add a little bit of
    21 this color, a little bit of that color. They
    22 add a little more of this thing. I just
    23 don't think they could accurately keep track
    24 of what is put on them by batch, and I think
    L.A. REPORTING (312) 419-9292

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    1 that the way that we do it now is far more
    2 accurate as far as appointing it to a square
    3 footage.
    4
    MR. HARSCH: So you're tracking
    5 on a production -- on a use basis the actual
    6 amount of the dyes that are used and thus in
    7 your estimate is emitted on a monthly basis?
    8
    MS. CHRISTENSEN: Yes.
    9
    MR. HARSCH: And the only issue
    10 that you're aware of is the allocation to the
    11 varying types of leather?
    12
    MS. CHRISTENSEN: Correct.
    13
    MR. HARSCH: No further
    14 questions.
    15
    HEARING OFFICER MURPHY: Thank
    16 you. Ms. Doctors, would you like to add
    17 anything?
    18
    MS. DOCTORS: I have a couple of
    19 questions. On the standard operating
    20 practices, you indicated that we've spoken
    21 that they're kind of contained throughout
    22 your CAAPP permit.
    23
    Are you aware that in the
    24 Prime Tanning RACT that they posted them at
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    1 the company? Excuse me. I'm kind of short.
    2
    Are you aware that they
    3 are --
    4
    MS. CHRISTENSEN: Yes.
    5
    MS. DOCTORS: Do you plan to post
    6 your standard operating procedures?
    7
    MS. CHRISTENSEN: Yes, we could
    8 do that. That's no problem.
    9
    MS. DOCTORS: In addition, I
    10 guess, I'm referring to the rule that was the
    11 proposal that was attached to Mr. Beckstead's
    12 testimony. It had three -- we'll leave the
    13 HVLP issue aside, but it had three other SOMP
    14 points, and one is to minimize the
    15 volatilization of solvents during the
    16 measuring of coating proportions and/or
    17 mixing of coatings.
    18
    Do you have a procedure
    19 currently?
    20
    MS. CHRISTENSEN: They keep
    21 everything covered when they're not drawing
    22 things out. They keep things sealed. They
    23 cover things as they're moving them from the
    24 lab to the finishing area. You know,
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    1 everything is already closed.
    2
    MS. DOCTORS: That would be part
    3 of your procedures?
    4
    MS. CHRISTENSEN: Right.
    5
    MS. DOCTORS: There's a similar
    6 point concerning fugitive losses?
    7
    MS. CHRISTENSEN: Uh-huh.
    8
    MS. DOCTORS: Is that --
    9
    MS. CHRISTENSEN: Well, the
    10 fugitive losses --
    11
    MS. DOCTORS: Involving spills
    12 and cleaning.
    13
    MS. CHRISTENSEN: Okay. Spills
    14 and cleaning, you know, we have standard
    15 spill control procedures, you know, and
    16 cleaning up and that kind of thing where it
    17 wouldn't be a problem.
    18
    MS. DOCTORS: And that also would
    19 be included in your plan?
    20
    MS. CHRISTENSEN: Yes.
    21
    MS. DOCTORS: And the last one, a
    22 procedure to minimize solvent usage or VOM
    23 losses during equipment cleanup and during
    24 transport, and I believe that's currently in
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    1 your permit now?
    2
    MS. CHRISTENSEN: Yes.
    3
    MR. HARSCH: That would be
    4 included in your posting plan?
    5
    MS. CHRISTENSEN: Right.
    6
    MS. DOCTORS: Thank you. I have
    7 a couple points that I'd like to clarify
    8 concerning the recordkeeping since obviously
    9 that is -- that's actually where we've spent
    10 most of our discussions trying to get that
    11 clarified.
    12
    It's my understanding that
    13 USEPA wanted inspectors to be able to go into
    14 the plant and verify the VOM usage?
    15
    MS. CHRISTENSEN: Uh-huh.
    16
    MS. DOCTORS: And you just
    17 indicated it's called ucosolar --
    18
    MS. CHRISTENSEN: Ucosolar dyes.
    19
    MS. DOCTORS: -- ucosolar dyes.
    20 Is that the only coating that's used on
    21 multiple types of leathers?
    22
    MS. DOCTORS: There's one
    23 additional one that's down lower, but, again,
    24 that's a very small amount. Where is that
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    1 table?
    2
    We're looking at Exhibit 1.
    3 Unithane 9107 is also split up between
    4 specialty and standard stain.
    5
    MS. DOCTORS: Okay. And how much
    6 of that is used in each?
    7
    MS. CHRISTENSEN: Well, the total
    8 VOM for the year was 324 pounds.
    9
    MS. DOCTORS: Less than that?
    10
    MS. CHRISTENSEN: Yeah. Well,
    11 this was per year. This was for March
    12 through March, I believe. It's a very small
    13 amount also that's used, and that would be
    14 the same thing as with the dyes, you know, as
    15 far as it's a very small quantity, and it's
    16 used like the dyes are.
    17
    MS. DOCTORS: What exactly is the
    18 finishing -- I guess this is taking place in
    19 your finishing room, these dyes?
    20
    MS. CHRISTENSEN: Uh-huh.
    21
    MS. DOCTORS: Are they reporting
    22 the number of gallons used or cans used or
    23 what?
    24
    MS. CHRISTENSEN: Yes, the
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    1 gallons used.
    2
    MS. DOCTORS: Gallons. So if
    3 there's a partial gallon, then it just gets
    4 reported when it's used up?
    5
    MS. CHRISTENSEN: Usually, they
    6 come in larger quantities, drums, you know,
    7 and, like, maybe 15 gallons or something like
    8 that. So it's basically they're looking at
    9 it and assuming, you know, what the amount
    10 left is, estimating pretty much.
    11
    MS. DOCTORS: It's a weekly
    12 estimate?
    13
    MS. CHRISTENSEN: Yes. That is
    14 tracked by the person who orders the
    15 chemicals. He's making sure that those
    16 inventory items are correct, that, you know,
    17 what they reported is consistent with what's
    18 been used and what's left. Week after week,
    19 he's always checking that.
    20
    MS. DOCTORS: Is there a case
    21 where some of these coatings get applied,
    22 like, on one leather they might get two or
    23 three coats, but on another leather, you
    24 might only put on a single coat?
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    1
    MS. CHRISTENSEN: Yes. It is
    2 possible, yes, and that is a problem, you
    3 know, as far as -- but, like I said, because
    4 what you're getting is such a small amount --
    5
    MS. DOCTORS: It's only -- this
    6 is only with reference to these ucosolar
    7 dyes --
    8
    MS. CHRISTENSEN: Right, because
    9 the color might need to be adjusted. Maybe
    10 this particular piece of leather absorbed
    11 more or absorbed less of something, and so
    12 they need to run it through the finish again
    13 or add a little bit more and run it through
    14 again.
    15
    MS. DOCTORS: Right. So it could
    16 be different? It isn't --
    17
    MS. CHRISTENSEN: Yes. It's not
    18 an exact science.
    19
    MS. DOCTORS: Let me ask another
    20 question, and I think we've discussed this
    21 before.
    22
    When you do your measuring,
    23 your square footage measurement, this is
    24 after you've done your trimming?
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    1
    MS. CHRISTENSEN: Yes.
    2
    MS. DOCTORS: So, in effect, it's
    3 almost an overestimate of what the emissions
    4 would be because you're applying coating --
    5 you've applied more coating, but you've got
    6 the gallon. So when you do the division --
    7
    MS. CHRISTENSEN: Right.
    8 Actually, we cut all of that, trim all the
    9 leather, and then when it's ready to ship,
    10 that's when we measure it, and so we're
    11 showing a smaller square footage than
    12 actually was run through the finishing
    13 machines. So, you know, we are being the
    14 most conservative, I think, of anyone as far
    15 as finish per thousand square feet type
    16 figures.
    17
    MR. HARSCH: If you might grant
    18 me leave.
    19
    MS. DOCTORS: Please.
    20
    MR. HARSCH: Since we're at a
    21 hearing and the Board wasn't privy to those
    22 conversations, I might ask a clarifying
    23 question on the point that you're making.
    24 I'll ask a question -- make a statement and
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    1 then ask Julie to verify that it's true.
    2
    The regulations are proposed
    3 and some of the rules are written so that
    4 you're limited to so many pounds per thousand
    5 square foot of leather produced; is that
    6 correct?
    7
    MS. CHRISTENSEN: Yes.
    8
    MR. HARSCH: And the question
    9 that was posed by Ms. Doctors was -- the
    10 issue that she's raising is that Horween
    11 coats an entire side of leather, and that's a
    12 square footage that applies the coating to
    13 the entire side of leather, but because it
    14 cannot sell all of that side of leather, some
    15 of that leather is just not -- it's inferior,
    16 not sellable. You have to then trim the
    17 leather --
    18
    MS. CHRISTENSEN: Yes.
    19
    MR. HARSCH: -- before you sell
    20 it?
    21
    MS. CHRISTENSEN: Uh-huh.
    22
    MR. HARSCH: And you measure your
    23 square footage that you testified to after
    24 the leather has been trimmed?
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    85
    1
    MS. CHRISTENSEN: Yes.
    2
    MR. HARSCH: So that when you
    3 then calculate your square footage of leather
    4 produced, it is, in fact, a conservative
    5 number because it's not the total square
    6 footage coated, but it's the total square
    7 footage that's been sprayed and then with a
    8 portion trimmed off?
    9
    MS. CHRISTENSEN: Yes.
    10
    MR. HARSCH: So that when you
    11 then calculate the so many pounds per square
    12 foot, you're, in essence, being very
    13 conservative because that number is larger
    14 than it would be had you used the entire
    15 square footage of the side sprayed; is that
    16 correct?
    17
    MS. CHRISTENSEN: Correct.
    18
    MR. HARSCH: Hopefully, that
    19 might provide some explanation of the point
    20 that you were making. Thank you for letting
    21 me, you know, make that clarification in the
    22 middle of your questioning.
    23
    MS. DOCTORS: I don't think I
    24 have any more questions. I'm finished. That
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    1 was my last question.
    2
    HEARING OFFICER MURPHY: Thank
    3 you. We will now proceed with questions that
    4 the Board staff or any Board members may have
    5 for the witnesses. Please note any questions
    6 by the Board members or the Board staff are
    7 not intended to express any preconceived
    8 notions or bias, only to build a complete
    9 record for review by the other Board members
    10 who are not present here today.
    11
    At this time, I'd like to
    12 open it up to any questions that any Board
    13 members or Board staff may have.
    14
    MR. RAO: I have a few
    15 questions. Some of them can be answered by
    16 Horween and, you know, the Agency can jump in
    17 if they want to shed some more light on these
    18 questions.
    19
    At page 12 of the petition,
    20 Horween certifies that the proposed changes
    21 to Section 211.6170 amend the most recent
    22 portion, and when we were reviewing the
    23 proposal, we didn't see any language changes
    24 to the definition of specialty leather at
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    1 Section 211.6170.
    2
    So would you please clarify
    3 whether you were intending to make any
    4 changes to the definition or it was just, you
    5 know, an explanation as to where you were
    6 going from the original definition?
    7
    MR. HARSCH: We have not in the
    8 proposal submitted -- included a change to
    9 the definition. This problem has been
    10 compounded since the filing of the
    11 site-specific by the NESHAP that was adopted
    12 by USEPA.
    13
    The NESHAP, as was testified
    14 to, essentially just basically takes the
    15 definition of specialty leather from 25
    16 percent oils, fats, and grease and uses that
    17 as the -- as the definition.
    18
    We need the relief, as
    19 testified to today and as recognized by the
    20 Agency, that adds two new subcategories, in
    21 essence, a specialty leather for the Board.
    22 This is site-specific. There is one other
    23 leather manufacturer that we're aware of that
    24 is subject to the leather coating regulations
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    88
    1 in Chicago.
    2
    This rule as written, the
    3 site-specific only applies to Horween. So if
    4 the Board believes that we should include
    5 that -- that they should include an amendment
    6 to the definition of specialty leather,
    7 that's fine. We have tried to make it clear
    8 that what we are essentially doing is adding
    9 two new subcategories of specialty leather
    10 for Horween.
    11
    MR. TRISTANO: Ms. Doctors.
    12
    MS. DOCTORS: Yes. The Agency
    13 does have concerns about reopening the
    14 definition for specialty leather as it is an
    15 approved RACT. It's already been approved in
    16 a different RACT proceeding, and we -- our
    17 preference in this is we acknowledge that
    18 these are, like, specialty two as
    19 Ms. Christensen referred to in the testimony,
    20 specialty two leathers, but it is
    21 site-specific, and we would like it to be
    22 kept separate.
    23
    MR. TRISTANO: That's why he was
    24 looking at me. The caption that we have I
    L.A. REPORTING (312) 419-9292

    89
    1 would suggest is incorrect based on the
    2 Agency's actions. I'd like to know if you'd
    3 like to change that to reference 35 Illinois
    4 Administrative Code 218.926 and Illinois 35
    5 Illinois Administrative Code 218.929?
    6
    MS. DOCTORS: My preference -- I
    7 don't believe that we opened 926. I believe
    8 we -- actually this proposal amended 218.929
    9 and others in incorporation by reference at
    10 waterproof at 218.112.
    11
    MR. TRISTANO: If you look at
    12 number eight -- I believe if you look at
    13 testimony in Illinois EPA's proposal, 218.929
    14 to three, you will learn also of the 926.
    15
    MS. DOCTORS: Right. 926 is the
    16 existing rule that they're getting relief
    17 from, and this is establishing a new --
    18 totally new Section 929. So I guess I'm not
    19 that familiar with how you caption things,
    20 but this is -- that was just a new section,
    21 and it opens the existing incorporation by
    22 reference section.
    23
    MR. TRISTANO: Well, we'll look
    24 into it, but I would like both of you to
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    90
    1 think about that because I think that when I
    2 was looking at the other Board's actions, I
    3 would --
    4
    MR. HARSCH: In deference to the
    5 Agency's request that we not reopen the
    6 existing RACT regulation we've submitted the
    7 site-specific, now we're asking essentially a
    8 site-specific determination to establish the
    9 two new categories of specialty leather.
    10
    Obviously, those are
    11 exemptions from the general RACT regulation
    12 as Mr. Beckstead referred to that would also
    13 be an exemption from the currently defined
    14 specialty coating exemption. We're not
    15 making any -- we did not propose changes to
    16 that language.
    17
    MR. TRISTANO: Well, then that's
    18 why I wanted the parties to clarify that.
    19 The way that I interpret it is -- I'm not --
    20 as Bill suggested, this is not the Board's
    21 opinion, but it seems to me that we did
    22 not -- all the pleadings and discussion, we
    23 did not want to -- we're really not touching
    24 point 211.6170, and, in effect, we're doing
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    91
    1 site-specific and not modifying these in the
    2 instant rule.
    3
    So I'd like you to consider
    4 whether or not you wish to change the caption
    5 to reflect site-specific as opposed to a
    6 modification.
    7
    MR. HARSCH: We'll confer and
    8 discuss that.
    9
    MR. TRISTANO: You don't have to
    10 do that today.
    11
    MR. HARSCH: With the Board's
    12 leave, I would be happy to have the hearing
    13 officer participate in those discussions with
    14 Ms. Doctors and counsel of record as well.
    15
    HEARING OFFICER MURPHY: That
    16 would be appropriate.
    17
    MR. RAO: Moving on to Section
    18 218.929(a)(3) of the Agency's proposed
    19 language, in that section of the rule, it
    20 says the requirements of this section do not
    21 apply to the production of those specialty
    22 leathers that meet the definition of
    23 specialty leathers pursuant to 211.6170 or
    24 for the production of leathers that cannot
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    92
    1 meet the control requirements of Section
    2 218.926 of the subpart.
    3
    Can you please clarify
    4 whether this provision applies only to the
    5 two new specialty leathers that are defined
    6 in the section or to any other leather that
    7 cannot meet the control requirements of
    8 218.926 because the way it's worded here, you
    9 know, you say that the requirements of the
    10 section do not apply to production of
    11 specialty leathers that do not meet the
    12 definition of -- that meets the definition of
    13 specialty leathers under 211.6170 or to the
    14 production of leathers that can meet -- that
    15 cannot --
    16
    MR. HARSCH: Can meet.
    17
    MR. RAO: Can meet.
    18
    MR. HARSCH: I think, again, the
    19 intent of the Agency in drafting this is to
    20 ensure that those leathers that currently
    21 meet and can be produced and meets the
    22 standard RACT regulation of 3.5 pounds per
    23 gallon be continued.
    24
    MR. RAO: I think Ms. Liu helped
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    93
    1 me with this. Horween's proposal had
    2 different language in there. So that's what
    3 I was looking at. I was not looking at the
    4 Agency's proposal.
    5
    So the Agency's proposal
    6 clarifies that it applies only to leathers
    7 that are defined under this new section.
    8
    MR. BECKSTEAD: If you can
    9 imagine, there's three sections here.
    10
    MR. RAO: Yes.
    11
    MR. BECKSTEAD: 3.5, leathers,
    12 there's specialty leathers, and in between is
    13 where the site-specific 12 to 25 percent
    14 fats, grease, oil. That's what the
    15 site-specific is covering.
    16
    MR. RAO: Okay.
    17
    MR. HARSCH: With the addition --
    18 inclusion also of this is the other
    19 subcategory. It's not just on oils, fats,
    20 and grease contents.
    21
    MS. DOCTORS: This section covers
    22 both cementable, which has the oils, fats,
    23 and grease contents in dress or performance
    24 shoe leather. It's water emulsified
    L.A. REPORTING (312) 419-9292

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    1 materials.
    2
    MR. RAO: Okay.
    3
    MR. HARSCH: And it's an
    4 important consideration because USEPA
    5 expressed their concerns that they did not
    6 want the Board enacting or the Board's
    7 rule -- action to be a rule that would allow
    8 Horween to produce leathers that currently
    9 can meet the approximate 3.5 pound per gallon
    10 limitation or currently can meet the
    11 regulations set forth in the specialty
    12 leather exemption and then produce that
    13 leather under the -- this new site-specific
    14 with the relaxation of the allowable
    15 limitations, and that's not Horween's intent,
    16 correct, Mr. Horween?
    17
    MR. HORWEEN: That's correct.
    18
    MR. RAO: My next question
    19 concerns the language added at Subsection
    20 (a)(4) where the Agency has added a provision
    21 that says the 10-ton exemption for stain
    22 pursuant to Section 218.926(b)(2)(i) of this
    23 subpart does not apply to leathers produced
    24 pursuant to the requirements of this
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    1 section.
    2
    Could you clarify, you know,
    3 what the intent of this provision is in terms
    4 of, you know, are these two new specialty
    5 leathers now subject to the 10-ton limitation
    6 on stain coatings?
    7
    MR. BECKSTEAD: This was included
    8 at the request of USEPA Region V. They were
    9 concerned that these two new leathers could
    10 take advantage of the 10-ton because they're
    11 not specialty leathers by our definition.
    12 According to the existing RACT regulations,
    13 they would qualify for that 10-ton exemption,
    14 and Horween agreed we're not -- you know,
    15 we're going to include everything.
    16
    We have to calculate the 14
    17 and 24 pounds of VOM per thousand. We're not
    18 going to touch that. So there was no
    19 disagreement here, and USEPA really wanted
    20 that paragraph in there, you know, just to
    21 make sure that everybody understands the two
    22 new leathers can't use the existing 10-ton
    23 exemption, can't use any of that. That's
    24 what that's in there for. Really, it's
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    96
    1 USEPA's request and our agreement. We found
    2 nothing wrong with it.
    3
    MR. HARSCH: Perhaps, I could,
    4 again, clarify some of the historical action
    5 that occurred. At the time, as Mr. Beckstead
    6 testified, that the Board enacted the
    7 specialty leather exemption, Horween was the
    8 only identified source in that proceeding.
    9
    There were two really
    10 mechanisms granted. One was the exemption
    11 for specialty leather, and one was an
    12 exemption from the 3.5 pound per gallon limit
    13 facing as it applied to stains used at
    14 Horween in standard leather production up to
    15 an exclusion ceiling of ten tons, right,
    16 Gary?
    17
    MR. BECKSTEAD: Uh-huh.
    18
    MR. HARSCH: With those two
    19 relief mechanisms, Horween could produce its
    20 standard leathers and produce its specialty
    21 leathers in conformance with the RACT
    22 regulations. So there really were two
    23 exemptions.
    24
    We've only talked about the
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    97
    1 exemption for specialty leather today, but
    2 really the Board enacted a second exemption,
    3 which was an exemption from the 3.5 pound per
    4 limitation for up to 10 tons of stain coat.
    5
    So what USEPA has asked and
    6 Horween can agree is that these two new
    7 specialty leathers not take advantage of that
    8 second exemption; is that correct, Gary?
    9
    MR. BECKSTEAD: That's my
    10 understanding.
    11
    MR. HARSCH: Since I'm
    12 testifying.
    13
    MR. RAO: My question then is do
    14 you need to take advantage of the exemption
    15 since you have a 20-ton limit under this
    16 rule?
    17
    MR. HARSCH: Again, the intent is
    18 that that exemption only apply -- the 10-ton
    19 exemption only applies to what we referred to
    20 as standard leathers that are capable of
    21 being produced with 3.5 pounds per gallon
    22 limitations as long as Horween can exempt out
    23 up to ten tons of this stain that's applied.
    24
    MR. BECKSTEAD: But I think USEPA
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    98
    1 would consider it if we allowed them to use
    2 the 10 ton that you've got a relaxation.
    3
    MR. HARSCH: It's being less
    4 restrictive than the Prime Tanning RACT.
    5
    MR. BECKSTEAD: They were very
    6 adamant about separating it, make sure that
    7 these new leathers are separated from the
    8 existing RACT regulation. If you're going to
    9 go site-specific, making sure they're
    10 separated. We're trying everything we can to
    11 make this approval to USEPA. So that's the
    12 direction we took.
    13
    MR. RAO: You know, in the
    14 rulemaking petition at Attachments 6, 7, and
    15 8, you have presented VOM emission data.
    16
    Could you please clarify
    17 whether this VOM emission data represents
    18 production of waterproof or nonwaterproof
    19 leathers?
    20
    MS. CHRISTENSEN: Attachments 6,
    21 7, and 8 are -- you know, this is like a
    22 forecast. We're not making the leather. So
    23 we couldn't come up with anything exact. So
    24 this is, you know, what we -- just some
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    1 samples that we thought we would come up
    2 with, and as far as, if I remember right,
    3 that all of these leathers can be made either
    4 waterproof or nonwaterproof, it depends on
    5 basically what we do with them, but -- and so
    6 that really doesn't -- this hasn't been
    7 addressed that way as a water resistant or
    8 nonwater resistant leather.
    9
    MR. RAO: In these tables that
    10 you have presented, there is average total
    11 VOM per thousand square feet.
    12
    Would that be affected if
    13 this type of leather is waterproof? Will
    14 that increase or decrease or will it remain
    15 the same?
    16
    MS. CHRISTENSEN: These were
    17 just -- you know, these are estimates. I
    18 would think it would be about the same
    19 depending on what they use. You know,
    20 there's lots of different ways that we make
    21 our leather waterproof or water resistant.
    22
    MR. RAO: My question is whether
    23 waterproofing affects the emission of VOM in
    24 any way?
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    1
    MR. HORWEEN: Not necessarily.
    2 It could, but it doesn't always.
    3 Waterproofing typically today is done with
    4 hyperphonic oils, which, you know, then if
    5 you needed something that was going to grab
    6 on, you might need a higher percentage, but
    7 it's also done in tanning in mills with
    8 silicone compounds, and in that case, then
    9 you would not, but -- so upfront, it's hard
    10 to say, which I think is why the discussion
    11 was you were putting a box around the whole
    12 thing, I mean, whether it was waterproof or
    13 not. You only had a certain amount to work
    14 with.
    15
    Quantities are not -- you
    16 might -- I think on these tables some of the
    17 assumptions are the quantities are not --
    18 we'd love to see us get to the highest
    19 estimates on all these, but in reality it
    20 doesn't look much like that at this point.
    21
    MR. RAO: So can you explain
    22 what's the rationale for proposing these VOM
    23 emission rate limits based on waterproof and
    24 nonwaterproof leathers?
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    1
    You know, you have these two
    2 limits proposed, one for, I think, 24 pounds
    3 of VOM per thousand square feet for
    4 waterproof leather and 14 pounds of VOM for
    5 nonwaterproof leather.
    6
    So what's the basis of this
    7 limit?
    8
    MS. DOCTORS: When we approached
    9 USEPA on what they would approve as a change
    10 to the existing site-specific rule for this
    11 company, there was a survey done of what
    12 other RACT rules -- what was the most
    13 recently approved RACT rule in the United
    14 States for leather tanners, and that was
    15 Prime Tanning, which had a waterproof limit
    16 in a -- a water resistant limit and a
    17 nonwater resistant limit. That's the basis
    18 for where the limit came from is from an
    19 already approved rule.
    20
    MR. RAO: Would it be possible
    21 for you to provide the Board if there was a
    22 report that was generated by Prime Tanning
    23 when they did their RACT rule?
    24
    We know from your testimony
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    1 that you got this RACT from the one that was
    2 approved by Prime Tanning, but, you know,
    3 other than that, there's not much
    4 justification for those two limits.
    5
    You know, just by looking at
    6 the estimates given in Attachments 6, 7, and
    7 8, the VOM emission rates are significantly
    8 lower than the limits that have been
    9 proposed.
    10
    MS. DOCTORS: It's also capped.
    11 It's capped to 20 tons per year, and they're
    12 meeting their ERMS. I think they're actually
    13 below that; is that correct? You are below
    14 your ERMS limit?
    15
    MS. CHRISTENSEN: Yes.
    16
    MS. DOCTORS: We have some other
    17 caps in the leather industry, and it was also
    18 to give them some room because of the changes
    19 in the industry that today this is how you do
    20 waterproof, but maybe tomorrow it might be
    21 different, and, I mean, that was at least
    22 what I was thinking.
    23
    MR. RAO: I was just trying to
    24 see if we can get more information about
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    1 these limits because when we did the earlier
    2 rulemaking, you mentioned Wisconsin had a
    3 RACT and we adopted the RACT.
    4
    So here we are saying Maine
    5 had a RACT, and that's the RACT that the
    6 USEPA is going to approve. So I was --
    7
    MR. BECKSTEAD: I do have in here
    8 a basic information document under Prime
    9 Tanning. So, you know, I didn't really look
    10 at it for that specific reason, but I can
    11 look at it and get it to you.
    12
    MR. RAO: Yeah. It would be
    13 helpful.
    14
    MR. BECKSTEAD: I was just going
    15 to mention that the demarcation between water
    16 resistant and nonwater resistant also appears
    17 in the NESHAP. There's a line of
    18 demarcation, of course, of what water
    19 resistant requires and allows for more
    20 emission than nonwater resistant.
    21
    It is consistent with what's
    22 going on. How that was determined and why we
    23 set it at 14 I'll go back through my basic
    24 documentation and see if I can help.
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    1
    MR. RAO: That would be helpful.
    2
    MR. HARSCH: We also need to
    3 point out that there's been testimony today
    4 that these are projected formulas for what a
    5 leather might look like, but that leather
    6 isn't being produced. The market for that
    7 leather may, in fact, not be there because
    8 that -- in the two-and-half half years it's
    9 taken us to get to where we've gotten, that
    10 leather is being produced overseas as
    11 testified to by Ms. Christensen.
    12
    What Horween is asking for
    13 is the flexibility to be able to respond to
    14 customer demands and produce a fixed amount
    15 of leather. That leather would have total
    16 emissions of up to 20 tons within the other
    17 boundary that Ms. Doctors talked about, which
    18 would be the ERMs baseline.
    19
    It's that flexibility to be
    20 able to respond to the market conditions to
    21 produce new types of specialty leather that I
    22 can only guess right now what the
    23 requirements are going to be. Is that right,
    24 Mr. Horween?
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    1
    MR. HORWEEN: Right. The other
    2 thing to sort of keep in mind is following
    3 along that water resistant and waterproof, we
    4 don't have that much experience with because
    5 we're putting the cart before the horse, but,
    6 again, from talking to some of the finish
    7 guys, I don't know what you need.
    8
    If you make a lot of guys
    9 use, again, some kind of oil treatment to
    10 supplement for the water resistant, then in
    11 those cases you might need something that's
    12 got a higher VOM content to actually adhere,
    13 to cling to it.
    14
    The other thing is that
    15 there's certain applications even on the
    16 drier waterproof tan where if you think of
    17 having made a waterproof piece of leather and
    18 then you go to spray a water-based finish on
    19 it, it thinks it's water. It will bead up
    20 and roll right off.
    21
    So in some cases, they've
    22 gone -- they've needed the higher thing so
    23 that they can actually make it hang on to
    24 that surface, but, again, that's projection
    L.A. REPORTING (312) 419-9292

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    1 on our part. That's something that I
    2 couldn't give you an exact on.
    3
    MR. RAO: The reason I ask those
    4 questions is you have proposed a standard
    5 based on waterproofing.
    6
    MR. HORWEEN: Right.
    7
    MR. RAO: And we just wanted to
    8 understand what waterproofing means in terms
    9 of VOM emissions. So it will be helpful to
    10 have information in the record.
    11
    MR. HORWEEN: Sure.
    12
    MR. RAO: Could you explain the
    13 rationale for requiring the annual cap of 20
    14 tons for the production of the new specialty
    15 leathers in terms of your overall emission
    16 cap for the facility just to give us a
    17 picture as to where this 20-ton limit, you
    18 know, figures in your overall emission
    19 limit?
    20
    MR. HARSCH: Can I ask a couple
    21 clarifying questions to get you that answer?
    22
    MR. RAO: Okay.
    23
    MR. HARSCH: Your facility has a
    24 maximum theoretical emission rate based on
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    1 drying caps and other limitations of
    2 approximately 90-some --
    3
    MS. CHRISTENSEN: 99-something.
    4
    MR. HARSCH: And that has been
    5 recognized and submitted to IEPA, and,
    6 therefore, that allowed you to be subject to
    7 the 25 to 100 ton set of limitations,
    8 correct?
    9
    MS. CHRISTENSEN: Yes.
    10
    MR. HARSCH: What were your --
    11 what's your ERMS? Well, you have -- you
    12 testified to your seasonal emissions during
    13 the RACT ozone season?
    14
    MS. CHRISTENSEN: Yes. We have
    15 281 ATUs assigned to us, which we don't go
    16 through.
    17
    MR. HARSCH: And that would have
    18 been -- 281 is about 28 tons during the ozone
    19 season, and that would be predicated on the
    20 two years representative of the baseline?
    21
    MS. CHRISTENSEN: Correct.
    22
    MR. HARSCH: What was your
    23 total -- your production -- your production
    24 has been decreasing, you've testified, over
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    1 the last couple of years?
    2
    MR. HORWEEN: Yes.
    3
    MR. HARSCH: What was your total
    4 VOC emissions last year, do you remember?
    5
    MS. CHRISTENSEN: I'd have to
    6 look it up. I think I might have it with
    7 me.
    8
    MR. HORWEEN: I think part of it
    9 is when the original limits were set, that
    10 assumed that you were going to be on the high
    11 end of your VOC finishes at your plant
    12 capacity? We haven't operated at plant
    13 capacity for a while.
    14
    MR. RAO: So this provision is
    15 basically here because the USEPA asked the
    16 limit be put in?
    17
    MR. HORWEEN: I think it also --
    18 it also reflects our -- even our most
    19 optimistic assessment of how much of this
    20 leather we could reasonably expect to make
    21 and sell. There's pockets of business that
    22 we're looking at here that are consistent
    23 with the type of business that we do, small
    24 and specialized.
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    1
    So, you know, anything can
    2 happen, I guess, but if we could get all of
    3 the business from all of the people that use
    4 this type of leather that we would reasonably
    5 be selling at our price levels, we would
    6 still comfortably be under this. It's just a
    7 given. Hopefully, it grows and it turns out
    8 to be something great, but we wanted to set
    9 parameters for ourselves that we could live
    10 with virtually indefinitely.
    11
    MR. HARSCH: That's the estimate
    12 of what you could -- 20 tons is how much this
    13 leather that you could reasonably be expected
    14 to produce if you had it basically --
    15
    MR. HORWEEN: On a best case --
    16
    MR. HARSCH: -- on a best case
    17 basis?
    18
    MR. HORWEEN: Which we would
    19 assume that a big part of the market would
    20 turn around and suddenly become less
    21 concerned about price. You know, they want a
    22 certain product, and they would say, oh,
    23 that's great, send me the bill. That's not
    24 what's happening these days.
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    1
    MS. CHRISTENSEN: I didn't find
    2 the documentation, but my recommendation
    3 is -- my recollection is that it's about 35
    4 tons.
    5
    MR. RAO: Yeah. I wanted to just
    6 get an idea as to why that has been put in
    7 because I know looking at the data that you
    8 provided, you're way below your allowable
    9 emission limits. So what does it mean to
    10 have this, you know, requirement in there.
    11
    MS. DOCTORS: From the Agency's
    12 perspective, we felt this was a carve out
    13 from the RACT requirements, and that's why
    14 there was limit. We negotiated is what I
    15 would say. It's now at 20, but it was a
    16 carve out. That's what it's there for.
    17
    We're optimistic for this
    18 company. We have hope for them that they do
    19 kind of get close to the 20 ton. That's what
    20 it was for. It was for a carve out. We
    21 requested an annual limit, the Agency did.
    22
    MR. RAO: Section 218.929(b)(4),
    23 the Agency, you know, has proposed that we
    24 incorporate the ASTM standard for designation
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    1 of water resistant and nonwater resistant
    2 leathers.
    3
    Would it be possible for you
    4 to provide the Board with a hard copy of the
    5 ASTM standard if you've not already done so?
    6
    MS. DOCTORS: I do not believe we
    7 have, and, yes, I will.
    8
    MR. BECKSTEAD: We have it here.
    9
    MR. RAO: That would be great.
    10
    MS. DOCTORS: We could provide
    11 the ASTM today to you.
    12
    MR. HARSCH: I don't have one in
    13 my file. If you've got it and you could make
    14 me one, that would be great.
    15
    MS. CHRISTENSEN: The new NESHAP
    16 goes by that also.
    17
    MR. RAO: Okay. Under the
    18 reporting and recordkeeping requirements
    19 under Subsection (d)(3), the provision allows
    20 for alternative plan for reporting and
    21 recordkeeping requirements if approved by the
    22 Agency and USEPA.
    23
    Could you please comment on
    24 whether the alternative recordkeeping
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    1 provision addresses your concern about this
    2 whole issue of recordkeeping by batch or the
    3 way you have been doing it under the existing
    4 rules?
    5
    MS. CHRISTENSEN: Well, we've
    6 been doing it this way for a very long time
    7 with no problems, and I'm just not sure --
    8
    MR. RAO: Can this be an
    9 alternative plan?
    10
    MS. DOCTORS: Oh, you're asking
    11 the --
    12
    MR. RAO: Yeah, either the Agency
    13 or --
    14
    MR. HARSCH: We have not come up
    15 with an alternate plan. It's still at
    16 issue. We're not anywhere -- don't have any
    17 idea how to come up with an alternate plan.
    18 We don't think Horween has testified to -- we
    19 do not think that it's -- that there's any
    20 problem in maintaining any records to
    21 substantiate the amounts -- small amounts of
    22 this material that is used and allocated
    23 based on production to the varying types of
    24 leather, and we don't know what that --
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    1 really how to come up with an alternative,
    2 and we think that the best way to do it is
    3 simply have the Board address the issue.
    4
    This is an issue we could
    5 not resolve, and it's one we're putting
    6 before the Board to resolve based on the
    7 record before it, which Horween respectfully
    8 believes shows that USEPA's concerns and,
    9 therefore, the Agency's concerns are not
    10 well-founded.
    11
    MR. RAO: Did you mention
    12 something about triple counting the dye
    13 usage? Would that be a potential way to
    14 address this issue?
    15
    MR. HARSCH: In a facetious
    16 manner, yes. I mean, why should the company
    17 have to triple count the emissions? The
    18 usage of the material and assess it all to
    19 the three subcategories of leather when it,
    20 you know, is already maintaining records that
    21 they think is adequate.
    22
    Right now if you were to
    23 enact it with batch, that's the only way
    24 really you think you can do it, but it
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    1 doesn't make any sense to have to. It's kind
    2 of a facetious requirement. It doesn't make
    3 any sense. They can do it. It just means
    4 that 20 tons gets reduced down by a smaller
    5 number.
    6
    MS. DOCTORS: I would say that
    7 this is kind of an administrative
    8 bureaucratic thing that I ended -- which I
    9 added recently when I realized that there was
    10 a lack of -- that I couldn't bring everybody
    11 together. I wanted to ensure that all the
    12 work that we've gone through over the last
    13 couple of years was approvable in some
    14 respects. I mean --
    15
    MR. HARSCH: We appreciate, you
    16 know, Ms. Doctors' efforts in trying to do
    17 that. It's just --
    18
    MS. DOCTORS: But I don't have an
    19 alternate plan in mind. I just put it in
    20 there because I didn't know if the rule would
    21 be approvable by USEPA if the Board, in fact,
    22 adopted a rule without the by batch
    23 language. I don't know how to predict that.
    24 So I put this in in case there was a
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    1 problem. I just didn't want there to be a
    2 problem for the company.
    3
    MR. HORWEEN: It overstates it.
    4
    MS. DOCTORS: Right.
    5
    MR. HORWEEN: I mean, you'd be
    6 reporting emissions beyond what you purchased
    7 or used.
    8
    MS. DOCTORS: Right. I'm not
    9 proposing that.
    10
    MR. HORWEEN: No, no. I know
    11 that. But, I mean, that's why -- I mean, the
    12 reverse is, you know, that we were so far
    13 under in any event that the aggregate doesn't
    14 give you a picture of what's actually going
    15 on.
    16
    MR. RAO: So are you saying that
    17 provision under Subsection (b)(3) would make
    18 this rule approvable by the USEPA if by batch
    19 is not in the rule?
    20
    MS. DOCTORS: It's hard --
    21
    MR. RAO: Because my
    22 understanding is this rule will become
    23 effective only upon approval by USEPA; is
    24 that correct?
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    1
    MS. DOCTORS: Yes. That is
    2 correct, that it becomes effective when it's
    3 approved by USEPA. That's my understanding.
    4
    MR. HARSCH: It's effective for
    5 Illinois purposes when the Board enacts it.
    6 It doesn't become an amendment until it's
    7 approval by USEPA.
    8
    MS. DOCTORS: Okay. I am not
    9 sure. Sometimes I'm able to predict what
    10 USEPA will do and sometimes I am not.
    11
    MR. HARSCH: The frustrating part
    12 of this, and if you want to swear me in,
    13 swear me in, you have --
    14
    HEARING OFFICER MURPHY: Mr. Harsch
    15 can be sworn in.
    16
    (Witness sworn.)
    17
    MR. HARSCH: And all my previous
    18 statements are made with that understanding.
    19
    What's frustrating is that
    20 we're dealing with the comments of a very
    21 knowledgeable and responsible person at
    22 USEPA, but that person does not speak for
    23 USEPA Region V or USEPA in its total.
    24
    That person has given
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    117
    1 indications during our discussions and
    2 indications to Illinois EPA, but USEPA never
    3 comes to the Board proceedings. They never,
    4 you know, make themselves available for
    5 cross-examination or questioning.
    6
    We're anticipating what the
    7 position of a staff person is, and that's not
    8 necessarily the position of -- you know, the
    9 formal position of USEPA. So, therefore, we
    10 do appreciate the efforts by Ms. Doctors to
    11 draft a rule that she thinks will satisfy
    12 that staff person, but it's really, I
    13 believe, the Board has a statutory duty to
    14 enact a regulation under the Illinois
    15 Environmental Protection Act, in essence, to
    16 find what's a reasonably available control
    17 technology for this subcategory of leather
    18 and submit it and for the Illinois EPA to
    19 submit it to USEPA for approval.
    20
    Horween has already
    21 testified that the way they calculate
    22 emissions are even more conservative than
    23 what's specified in the rule because they
    24 don't take credit for the stuff that they cut
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    1 off and, you know, don't ship. We don't
    2 think that three-and-a-half tons of one
    3 coating and 300 pounds of the other coating
    4 that they allocate based on a production
    5 basis should form the basis of an objection
    6 by USEPA and will form the basis of an
    7 objection by USEPA if the Board enacts the
    8 rule without the words by batch.
    9
    It's just a lot of effort
    10 over a very minor point that we don't
    11 think -- I think the Board has got a record
    12 before it. It should enact it and make a
    13 determination as to what is the RACT, and I
    14 don't know if USEPA has the authority to
    15 disapprove it. Thank you.
    16
    MR. RAO: On page ten of the
    17 petition, you state that USEPA has concluded
    18 a scientific study with the recommendation
    19 that ethylene glycol and butyl ether should
    20 be delisted from the list of hazardous air
    21 pollutants.
    22
    Would it be possible for you
    23 to provide the Board with a citation of that
    24 stud or if you have a copy of that study?
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    1
    MR. BECKSTEAD: That was -- that
    2 information was given to us by Bill Schrock,
    3 who Julie mentioned in her testimony who was
    4 the man who wrote a letter quoting NESHAP,
    5 and he said that it was. He gave
    6 us -- it has been submitted and is being
    7 reviewed. It will probably be next year,
    8 late next year, before any decision-making.
    9 He didn't really cite any documents.
    10
    MR. HARSCH: Since I'm sworn,
    11 I've been on conversations with Mr. Schrock
    12 as well. The Can Coaters Institute, American
    13 Can Coaters, whatever the -- American Can
    14 Coating Institute, I think, submitted a
    15 petition to delist that compound, and it has
    16 been pending at USEPA. There has been no
    17 formal action that I'm aware of taken by
    18 USEPA or any proposal. It's still kicking
    19 around within the boundaries of research in a
    20 different shop than Mr. Schrock's shop.
    21
    MR. BECKSTEAD: It's a completely
    22 different operation that makes those
    23 decisions.
    24
    MR. RAO: You know, in your
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    1 petition, you mention about a USEPA
    2 scientific study. We're just curious if you
    3 had the citation for the study, not the USEPA
    4 determination about delisting.
    5
    MR. HARSCH: It may not be
    6 correct. It should state that there had been
    7 a study -- scientific study concluded. I
    8 mean, it's not a -- I'd like to change that
    9 on the record. That should state that there
    10 has been one done by the Can Coaters and
    11 submitted to USEPA.
    12
    MS. CHRISTENSEN: This is
    13 information I gotten from leather Industries
    14 of America.
    15
    MR. HARSCH: I think that's Can
    16 Coaters, isn't it?
    17
    MS. CHRISTENSEN: This is what
    18 they gave me.
    19
    MR. HARSCH: I think it's Can
    20 Coaters that did it, not CNA, but I'll verify
    21 that. I'll try to find a -- I'll try to get
    22 you better information as to what -- exactly
    23 who did it and when it was submitted. It was
    24 my understanding it was the Can Coaters.
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    1
    MR. RAO: One last question.
    2 During the earlier rulemaking in R93-14, you
    3 know, Horween and the Agency worked together
    4 to produce this, you know, conference of
    5 technical support document which addressed,
    6 you know, the emission control technologies
    7 and the costs associated with those
    8 technologies.
    9
    Have there been any more
    10 recent evaluations done of the emission
    11 control technologies and costs. Any
    12 alternative information would be helpful to
    13 the Board.
    14
    MR. BECKSTEAD: I think the Prime
    15 Tanning file did address that matter, the
    16 cost at Prime Tanning. It's not specific to
    17 Horween, but to answer your question, Horween
    18 I don't think has done an additional study.
    19
    MR. RAO: No. Any information
    20 that's out there, that could be helpful.
    21
    MR. BECKSTEAD: If I can make one
    22 comment about how were the 14 and 24
    23 established, initially Prime Tanning had set
    24 much higher -- requested 38 pounds per
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    122
    1 thousand and an annual rolling -- 12-month
    2 rolling with a 50 pound per thousand for any
    3 one month, whether they were water resistant,
    4 and I think a non -- water resistant,
    5 nonwater resistant was 24, and USEPA made the
    6 decision that RACT was tighter than that and
    7 established a 24-14 limit. That was the
    8 amendment of number five to their license.
    9 That's who established those limits, but I'll
    10 see if I can't get into them, the basic
    11 documentation, and still get you some
    12 information on that.
    13
    MR. HARSCH: RACT had been
    14 approved in Wisconsin and other states at 38
    15 pounds per gallon -- 38 pounds -- 38 pounds
    16 per thousand square feet and had been
    17 approved by Region V as RACT at the time the
    18 Board considered the exemptions that they
    19 ultimately enacted.
    20
    So the Board's adoption of
    21 specialty leather exemptions was a tighter
    22 limit than, in some respects, Wisconsin.
    23 What Horween had originally proposed,
    24 correct, Gary, was 38 pounds per thousand
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    123
    1 square feet, and we negotiated it to the
    2 present exemption?
    3
    MR. BECKSTEAD: Right. That
    4 was -- and that was the determined back in
    5 the mid eight '80s based on primarily
    6 Wisconsin operations, and when we looked at
    7 it in the early '90s, we felt that that was a
    8 little bit too much lenient and, therefore,
    9 we carved this new RACT regulation, which
    10 only allowed that in specialty cases.
    11
    MR. RAO: All right. Thank you
    12 very much for your very helpful responses to
    13 clarify a lot of things in the rules.
    14
    MR. TRISTANO: Could you tell me
    15 the size of the firm?
    16
    MR. HORWEEN: I'm sorry?
    17
    MR. TRISTANO: Could you tell me
    18 the size of your firm? Is it in one location
    19 in Chicago?
    20
    MR. HORWEEN: Yes, a single
    21 plant.
    22
    MR. TRISTANO: How many square
    23 feet do you have?
    24
    MR. HORWEEN: The plant itself?
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    1
    MR. TRISTANO: Yes.
    2
    MR. HORWEEN: It's approximately
    3 190,000 square feet.
    4
    MR. TRISTANO: What's your sales
    5 volume?
    6
    MR. HORWEEN: Last year or ten
    7 years ago?
    8
    MR. TRISTANO: Last year.
    9
    MR. HORWEEN: It's come down. I
    10 mean, we did about $20 million dollars in
    11 sales last year.
    12
    MR. TRISTANO: And what is the
    13 estimate in terms -- the reason I'm asking
    14 these questions is DCCA is not responding to
    15 us in terms of finances.
    16
    What does this new product
    17 line mean to you? What is your estimates in
    18 terms of your volume?
    19
    MR. HORWEEN: Again, I mean, you
    20 have sort of best hopes on certain things.
    21 You know, at the time when we first started
    22 on the performance dress leathers, it was
    23 probably -- it was our hope that the -- if we
    24 could get -- let's see. The hope was that
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    1 you could do another million and a half to
    2 two million dollars a year in sales on the
    3 performance dress and probably that -- maybe
    4 that or little more, again, on the mid-range,
    5 and that may have changed. I mean, the sort
    6 of hybrid stuff leather now is probably more
    7 important leather given the styles,
    8 particularly we do ship a lot of stuff
    9 overseas. A lot of those factories do cement
    10 construction shoes, you know.
    11
    I mean, for us, our hopes as
    12 we look at this stuff if we can go for a
    13 product on an incremental basis to increase
    14 our business by ten percent, we think that's
    15 a good thing.
    16
    MR. TRISTANO: How many employees
    17 do you have?
    18
    MR. HORWEEN: We have about 140.
    19 Those have come down. I mean, again, that's
    20 why I was asking. Our peak sales year was
    21 1992, and in that year we did slightly over
    22 32 million dollars in sales, and we had
    23 almost 200 employees.
    24
    MR. TRISTANO: This proposed rule
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    1 would have flexibility to go to other lines
    2 of specialty leather?
    3
    MR. HORWEEN: Yes.
    4
    MR. TRISTANO: Do you anticipate
    5 any of these -- do you have any idea which
    6 lines, if any, you're thinking about going
    7 into?
    8
    MR. HORWEEN: I mean, these are
    9 probably covered, you know, fairly
    10 specifically based on customer requests. I
    11 mean, people who come to us and say I'm using
    12 this, this company doesn't exist any longer,
    13 if you could do this, we could do that. I
    14 mean, the dress -- the dress-type leather is
    15 one, and then the cementable type
    16 construction is another. You know, even to
    17 date the substitutes that are manufactured
    18 elsewhere are not satisfactory.
    19
    MR. HORWEEN: I understand -- I
    20 think we understand from your testimony what
    21 your current recordkeeping is. The Agency
    22 has proposed by batch. I assume we're only
    23 talking about additional costs here, are we
    24 not?
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    1
    I mean, all you have to do
    2 is modify the record system; is that not
    3 correct.
    4
    MS. CHRISTENSEN: Basically, I
    5 think it would take having a person in our
    6 finishing lab watching them make up the
    7 leather all day long and keep totaling all
    8 the different things that are put in each
    9 batch because we don't have, like, an
    10 automatic system, you know, where they can --
    11 you know, okay this finish gets this, this,
    12 this. That's not the way it works.
    13
    You know, in the finishing
    14 lab, they're constantly, like, working as an
    15 artist's pallet adding a little bit of this,
    16 a little bit of that, and they see what it
    17 comes out like. They might have to go back
    18 to it again and give me another two ounces of
    19 this or another -- it's just a constant
    20 adjustment that's made all day long, and it
    21 would be an employee.
    22
    MR. TRISTANO: An employee for a
    23 two million dollar line?
    24
    MR. HORWEEN: Best case, right.
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    1 I mean, the other thing, of course, is -- you
    2 know, I can't speak to what other industries
    3 make on something like that, but for us,
    4 that's -- the margins in this industry are
    5 not -- we're not killing it.
    6
    MR. TRISTANO: I want to ask a
    7 little bit -- a couple more questions here
    8 real fast.
    9
    You're talking -- the Agency
    10 is addressing the fact that you would go and
    11 attempt to do a study using the high volume
    12 low pressure, and it would give you a year to
    13 document the fact that it did or did not work
    14 in your environment.
    15
    I guess I would like you to
    16 elaborate on what your objection is to having
    17 a year to either prove or disprove the
    18 ability of the high volume low pressure
    19 spray.
    20
    MR. HARSCH: Since I'm sworn in,
    21 this is supposed to be reasonably available.
    22 Under the Clean Air Act, states are required
    23 to enact reasonably available control
    24 technology regulations and apply them to
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    129
    1 existing sources. This is an existing
    2 source. This is a reasonably available
    3 control technology rule.
    4
    It is supposed to be just
    5 that. It's supposed to be an available
    6 technology or an available coating that's
    7 available. Historically, the Board has
    8 enacted and accepted the fact that certain
    9 coatings or certain coating technologies or
    10 certain coating controls, if they're shown by
    11 the applicant as not being reasonably
    12 available, the Board has made those findings
    13 and has included exemptions within the
    14 rules.
    15
    It's not supposed to be a
    16 rule that legally requires a source to go out
    17 and come up with a new technology or a new
    18 means to make its product. I think the
    19 record clearly shows that Horween cannot
    20 produce its finishes -- its leather and
    21 finishes with these types of nozzles, that
    22 they don't meet the definition that the
    23 nozzles that are available have to be used in
    24 a manner that doesn't meet the definition
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    130
    1 of -- the regulatory definition of high
    2 volume low pressure.
    3
    That's a defined legal
    4 term. It's part of the state implementation
    5 plan, and, frankly, the person at USEPA
    6 that's made that suggestion has ignored
    7 that. Mr. Horween has testified that he
    8 doesn't have any problem with continuing to
    9 investigate alternate requirements. You're
    10 enacting a rule. You accepted the Agency's
    11 language that essentially is technology
    12 forcing, and that's not what the purpose of
    13 RACT is supposed to be.
    14
    HEARING OFFICER MURPHY: Could
    15 the Agency give me their --
    16
    MR. BECKSTEAD: When I -- this --
    17 when I suggested the HVLP, my understanding
    18 was that the payback, the economic advantage,
    19 that this was a win-win situation when we
    20 discussed it. From my understanding, the
    21 technology is available, it is reasonable.
    22 We're talking about five or six hundred
    23 dollars a head. They have eight heads.
    24 They've got the compressor if that's
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    131
    1 necessary, $1500. You're talking less than
    2 $5,000, but, again, my suggestion was
    3 strictly that there's less emissions from
    4 HVLP, and you're going to get paid back in
    5 less than three years the studies that I'm
    6 seeing.
    7
    So I thought it was a
    8 win-win and hopefully that they might pursue
    9 that route. It's, you know, a suggestion
    10 from us. It was part of the Prime Tanning
    11 and USEPA brought that point out when we
    12 started discussing HVLP was RACT at Prime
    13 Tanning. Well, Prime Tanning is a different
    14 operation than Horween. I appreciate that.
    15
    So we just asked in the
    16 regulation -- this was an impasse as Rachel
    17 has mentioned. We just asked if you want
    18 look at that for a year and see if it will
    19 work for you guys. You can make some dollars
    20 out of it. You'll get less emissions. That
    21 was the purpose of it to get through the
    22 impasse that we were at.
    23
    MR. HORWEEN: I guess I would
    24 just have one question too. I don't know --
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    1 how -- you know, I'm trying to -- I mean, as
    2 I said, I mean, if there's a better way to do
    3 this, you know, especially if it can work and
    4 I can save, it only pays, you know, to do
    5 that.
    6
    What sort of requirement is
    7 there going to be to disprove it? I'm
    8 afraid, you know, it's a very subjective
    9 thing. You know, I can be open to the
    10 criticism saying, yeah, I tried it, I don't
    11 like it. You know, how do we decide that I
    12 did try it or that I did look at it? I'm
    13 going to pursue it. I've got -- our
    14 technical guy is going to be talking to
    15 actually the gentleman that was referred. We
    16 called the guy that you had suggested. He
    17 said, well, I'm one of the guys looking at it
    18 in your area, but another guy is working with
    19 the tech support staff. So my technical guy
    20 is in conversation with them.
    21
    If it does what he says it
    22 does, then it does make sense, but I don't
    23 know how to objectively, you know, put that
    24 together to say, well, you know, evaluate it,
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    1 this, this, and that and it fails on these on
    2 these grounds. I mean, the hybrid guns, you
    3 know, they make some sense, and, you know,
    4 I've also contacted some other tanneries that
    5 I know, you know, other than the guy -- the
    6 one that -- the guy that used to be in
    7 Milwaukee just to see what their experience
    8 was, but that's part of an ongoing process
    9 for us -- for us anyway.
    10
    I mean, so that's -- I guess
    11 that's my biggest concern. I mean, you know,
    12 I don't know how to sort of get my hands
    13 around that other than being -- we're in
    14 touch on a regular basis, and I'm happy to
    15 sort of give them progress reports, but I
    16 don't know how you say, well, it's never
    17 going to work because the technology has
    18 improved certainly from when they first
    19 started. More and more people have found
    20 ways to use it. So I can't say that it never
    21 is going to happen, but from the basis of
    22 this right now, it's not a practical thing.
    23 Okay.
    24
    MR. MELAS: I also was -- had in
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    1 mind a question about this HVLP, and,
    2 Mr. Beckstead, just to clarify in simple
    3 layman's terms for myself, what is the
    4 advantage or what is the proposed advantage
    5 of the HVLP? I think I heard you say a
    6 moment ago fewer emissions?
    7
    MR. BECKSTEAD: Right. The
    8 pressure -- they're operating at, my
    9 understanding, around 60 pounds per square
    10 inch at the head, and so your impinging at a
    11 very high pressure, and what happens some of
    12 it bounces off and you get overspray, and the
    13 HVLP gun operates at lower pressures, ten PSI
    14 or less, and so you don't get that
    15 impingement. You don't get that bouncing
    16 off, and I understand they're having trouble
    17 with too much volume.
    18
    I would think -- I'm not,
    19 you know, an expert in HVLP, but I would
    20 think you would be able to control the amount
    21 of volume on the gun that's hitting that
    22 surface, but the whole idea is you don't
    23 bounce the particles off of your surface, and
    24 the fact that it's a flat piece, when I
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    135
    1 talked to the HVLP people, they said, well,
    2 are they spraying some kind of a weird
    3 object, and I said no, it's just a flat piece
    4 of leather coming down. It should pay for
    5 itself in about three years and it's an
    6 excellent application. Of course, they're
    7 not leather experts either. These guys are
    8 closer to it. I'm just going by what the
    9 HVLP boys are telling me.
    10
    MR. MELAS: That was what I was
    11 just thinking too. You're getting a lesser
    12 pressure?
    13
    MR. BECKSTEAD: That's right.
    14
    MR. MELAS: But at the same time,
    15 HV means you're using more volume?
    16
    MR. BECKSTEAD: Right.
    17
    MR. MELAS: Maybe the two would
    18 cancel each other out?
    19
    MR. BECKSTEAD: But it's proved
    20 that it is. I mean, that's why it's caught
    21 on in so many different applications. The
    22 automotive industry was the first to start
    23 with the HVLP concept. It was saving them
    24 paint. It was saving them, you know,
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    1 overspray, and it's cost-effective, and
    2 that's why everybody went to it. I don't
    3 know if that addresses your question. It
    4 looks like -- I understand what you're
    5 saying, it looks like you're getting more
    6 volume and, therefore, you're defeating the
    7 purpose, but evidently there's a way to
    8 control that too.
    9
    MR. HORWEEN: The conversation
    10 with the guy that we recommended, he referred
    11 us on because he said it wasn't reversible.
    12
    MR. BECKSTEAD: And I'm not -- I
    13 didn't mean to advocate that you have to use
    14 this new cutting edge technology that
    15 Divilibus has. I know they make HVLP guns,
    16 and, you know, I thought, well, try what they
    17 have in stock and see what this new gun is
    18 about. You know, if that will save you some
    19 costs, fine.
    20
    MR. HORWEEN: That's great.
    21
    MR. HARSCH: What you've just
    22 heard is the technology forcing issue.
    23 Mr. Horween contacted the person that
    24 Mr. Beckstead talked to, this manufacturer of
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    137
    1 this hybrid gun, and when you got into
    2 identifying who you were, what did he tell
    3 you, Mr. Horween?
    4
    MR. HORWEEN: Well, that he would
    5 refer me on to their national support group.
    6
    MR. HARSCH: Because he didn't
    7 know anything about leather finishing?
    8
    MR. HORWEEN: Right. He's not a
    9 leather finisher. That theoretically with
    10 different -- with different nozzle sizes and
    11 different needle sizes and if we could adjust
    12 viscosities, we ought to be able to make it
    13 work, but the question then is if you use
    14 different finishes with different
    15 viscosities, then are you adjusting the
    16 finishes to work in the gun or do you have to
    17 change the guns over to do different -- I
    18 mean, that's the part -- I mean, again, I
    19 know enough at that point to pick up the
    20 phone and call my technical guy, but that's
    21 why they're having the conversation so we can
    22 make that determination.
    23
    HEARING OFFICER MURPHY: Do we
    24 have any further questions from the Board
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    138
    1 members or Board staff? Seeing none, is
    2 there any further statements, comments, or
    3 questions by anyone here present?
    4
    MR. HARSCH: Thank you very much
    5 for your attention this morning.
    6
    HEARING OFFICER MURPHY: If we
    7 can go off the record for a moment.
    8
    (Discussion had
    9
    off the record.)
    10
    HEARING OFFICER MURPHY: Are
    11 there any other matters which need to be
    12 addressed at this time?
    13
    MS. DOCTORS: I can give you a
    14 copy of the ASTM record.
    15
    HEARING OFFICER MURPHY: Okay.
    16 The record in this matter will close on July
    17 19th. The Board anticipates that it will go
    18 to first notice a few weeks after that if
    19 it's not controversial.
    20
    If any persons would like a
    21 copy of the transcript of today's hearing,
    22 please contact the court reporter directly.
    23 If you order a copy of the transcript from
    24 the Board, the cost is 75 cents a page.
    L.A. REPORTING (312) 419-9292

    139
    1 Also, you have the option of downloading the
    2 transcript from the Board's web site at no
    3 charge. If there isn't anything further, the
    4 hearing is adjourned. Thank you.
    5
    (Whereupon, these were all
    6
    the proceedings held in
    7
    the above-entitled matter.)
    8
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    L.A. REPORTING (312) 419-9292

    140
    1 STATE OF ILLINOIS )
    ) SS.
    2 COUNTY OF C O O K )
    3
    4
    I, GEANNA M. IAQUINTA, CSR, do
    5 hereby state that I am a court reporter doing
    6 business in the City of Chicago, County of
    7 Cook, and State of Illinois; that I reported
    8 by means of machine shorthand the proceedings
    9 held in the foregoing cause, and that the
    10 foregoing is a true and correct transcript of
    11 my shorthand notes so taken as aforesaid.
    12
    13
    ______________________________
    14
    GEANNA M. IAQUINTA, CSR
    Notary Public, Cook County, IL
    15
    Illinois License No. 084-004096
    16
    17 SUBSCRIBED AND SWORN TO
    before me this_____day
    18 of_______, A.D., 2002.
    19 _______________________
    Notary Public
    20
    21
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    L.A. REPORTING (312) 419-9292

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