R98016B.PDF

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

IN THE MATTER OF: )

)

Petition of W.R. GRACE & CO. - CONN., ) R 98-16

)

and, )

)

ILLINOIS ENVIRONMENTAL PROTECTION ) (Site-Specific

AGENCY )

Rulemaking)

)

for Site-Specific Air Regulation: )

35 Ill. Admin. Code 218.940(h) )

The following is the transcript of a hearing held in

the above-entitled matter, taken

stenographically by

GEANNA M. IAQUINTA, CSR, a notary public within and for

the County of Cook and State of Illinois, before John C.

Knittle, Hearing Officer, at 100 West Randolph Street,

Chicago, Illinois, on the 21st day of January, 1998,

A.D., commencing at 1:00 o'clock p.m.

L.A. REPORTING (312) 419-9292

A P P E A R A N C E S:

HEARING TAKEN BEFORE:

ILLINOIS POLLUTION CONTROL BOARD

100 West Randolph Street

Suite 11-500

Chicago, Illinois 60601

(312) 814-6923

BY: MR. JOHN C. KNITTLE

HODGE & DWYER,

808 South Second Street

Springfield, Illinois 62704

(217) 523-4900

BY: MS. N. LADONNA DRIVER

Appeared on behalf of W.R. Grace & Co. - Conn.,

ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,

1021 North Grand Avenue East

P.O. Box 19276

Springfield, IL 62794

(217) 524-3157

BY: MS. CHRISTINA L. ARCHER

ILLINOIS POLLUTION CONTROL BOARD MEMBERS PRESENT:

Mr. Joseph

Mr. Jack

Burds

Mr. Robert

O'Brien

L.A. REPORTING (312) 419-9292

I N D E X

PAGES

GREETING BY HEARING OFFICER................... 4

GREETING BY JOSEPH YI......................... 5

OPENING STATEMENT OF LADONNA DRIVER........... 6

OPENING STATEMENT OF CHRISTINA ARCHER....... 10

CLOSING COMMENTS BY HEARING OFFICER.......... 16

E X H I B I T S

Marked for

Identification

Exhibit Nos. 1A through D.......... 10

Exhibit Nos. 2A and B.............. 13

L.A. REPORTING (312) 419-9292

THE COURT: Well, good afternoon, everybody.

My name is John

Knittle, and I have been appointed

hearing officer for the petition entitled -- the matter

entitled In The Matter of the Petition of W.R. Grace &

Company-Connecticut and The Illinois Environmental

Protection Agency for a Site-Specific Air Regulation, 35

Illinois Administrative Code 218.940(h).

Sitting on my left-hand side is Mr. Joseph

Yi, who is

the presiding Board member in this matter, and also

present from the Pollution Control Board is Bob

O'Brien

who is the technical unit representative.

This is the first hearing of this proceeding which was

filed on November 20th, 1997, as a joint proposal by the

Illinois Environmental Protection Agency and W.R. Grace.

We are conducting this hearing in an expedited fashion

due to a Board order dated December 18th, 1997.

This hearing commenced originally on January 8th,

1998, and was continued on the record to this date and

time due to adverse weather conditions on January 8th,

and I'm glad to see that we have a better attendance than

we did on that day.

At the front of the room -- outside of the room I put

a sign-up sheet for the notice list if you want to be on

the notice list. I think everybody here is. You're more

L.A. REPORTING (312) 419-9292

than welcome to sign up, and I'd be more than happy to

explain it to anybody after the hearing. I also put out

prefiled testimony and the current notice list. If

anybody wants to go out and take a look, they'd be more

than welcome.

The Board received some

prefiled testimony in this

case. We're going to start with W.R. Grace, if that's

okay, and finish with the testimony from the Agency and

the testifiers will have the option, as we've already

talked about, of reading the testimony or summarizing the

testimony or having it entered into the record as if

read, and we will allow questions after each person --

testifier is sworn in and the specific testimony is

entered into the record, and then after we finish with

the testimony, we'll see if there's anybody else present

who has questions, but judging by the attendance to this

point, I don't think that will be an issue.

At this point, I'd ask Mr.

Yi if he has anything that

he'd like to say before we get started?

MR. YI: Thank you, Mr.

Knittle. Welcome, this

afternoon. On behalf of the Pollution Control Board, I

want to welcome you all to this meeting this afternoon.

The Board is very cognizant of the importance of this

rulemaking to both proponents with guidance from our

L.A. REPORTING (312) 419-9292

hearing officer. I'm looking forward to a very fair and

efficient

rulemaking. Welcome.

THE COURT: Thank you very much, Mr.

Yi.

If there's any proponent who would like to give an

opening statement of some sort, they'd be more than

welcome to have the opportunity. Does anyone from W.R.

Grace wish to make an opening statement?

MS. DRIVER: I'll do it. My name is

LaDonna

Driver, and I'm an attorney with

Hodge & Dwyer for W.R.

Grace. With me today is Rich

Irelan from W.R. Grace,

Aaron Abbott from W.R. Grace, and Bob Wells from

Versar.

We wish to thank the Illinois EPA and the Board for

its cooperation in expediting this

rulemaking, and we

request that the Board grant the joint proposal for

rulemaking as soon as possible.

As the hearing officer stated, we

prefiled statements

for our witnesses and the testimony documents, the

history of Grace's compliance efforts with Subpart QQ,

and I won't go into that in detail now, but, briefly,

Grace did install a catalytic oxidizer pursuant to its

1995 variance that was granted by the Board, and shortly

after operation, that oxidizer experienced an explosion

in June of 1996.

Grace and the Agency worked together and obtained a

L.A. REPORTING (312) 419-9292

supplemental variance and the variance extension in

February of '97 to deal with some of the regulatory

issues from the explosion, and as part of that, the

compliance plan for that variance called for a control

option investigation, and that investigation was

conducted by

Versar.

The investigation that

Versar did concluded that there

was no feasible and economically reasonable control

option for Grace to achieve compliance for Subpart QQ for

its solvation mixing process.

In November of '97, the parties jointly filed a

proposal for a site-specific

rulemaking which would add a

new section to Subpart QQ at 218.940(h) and this would

exempt the

solvation mixers at this facility from Subpart

QQ's control requirements.

Rich Irelan is available to testify today about the

background on this facility and the process at issue as

well as Grace's efforts to meet the requirements of

Subpart QQ, the Board's variance orders previously

granted, and the permits obtained from the Agency.

Mr. Irelan is also available to testify regarding the

oxidizer explosion and Grace's efforts to work with the

Illinois EPA after that on resolution of the regulatory

issues in hand.

L.A. REPORTING (312) 419-9292

Aaron Abbott is available to testify today regarding

Grace's efforts to comply with Subpart QQ over the last

several years, the feasibility and safety issues that

have been involved, as well as the technical data on the

oxidizer explosion.

Mr. Abbott is also available to testify regarding VOM

emissions from this process and the reductions in VOM

emissions that have been occurring in the last several

years. He can also testify about the process equipment

issues that are involved.

Mr. Wells is available to testify today regarding the

control device investigation that was conducted by

Versar, the control options that were studied, and

the basis for

Versar's conclusions in that study.

We believe that the previous filings and the testimony

in the variance hearing show that there's no add-on

control technology that's RACT for the

solvation process

at this facility. There's no technically feasible or

economically reasonable way for this process to comply

with the control requirements of Subpart QQ.

We appreciate the Board going to first notice

expeditiously and scheduling this hearing expeditiously

as well. As we've stated in our filings under our prior

variance, we need to have this

rulemaking in place by May

L.A. REPORTING (312) 419-9292

15th of this year, and we request the Board render its

decision as soon as it can and get this

rulemaking sent

to second notice.

At this time, I would like to move that the

prefiled

statements of

LaDonna Driver, Rich

Irelan, Aaron Abbott,

and Bob Wells be entered as Exhibits A through D today,

and our witnesses are available to answer any questions

that you might have.

THE COURT: Okay. Just for the record, Exhibit

1A through D?

MS. DRIVER: That would be fine.

THE COURT: Are there any objections to those

exhibits being entered that way?

MS. ARCHER: No.

THE COURT: Okay. Those will be entered into

the record as Exhibits 1A, the opening statement of

LaDonna Driver. Exhibit 1B will be the testimony of

Richard M.

Irelan -- Irelan?

MR. IRELAN:

Irelan, just like the country.

THE COURT: Exhibit 1C will be the testimony of

Aaron G. Abbott, and Exhibit 1D will be the

prefiled

statement of Robert C. Wells, and I've marked those as

Exhibits 1A through D.

L.A. REPORTING (312) 419-9292

(Exhibit Nos. 1A through D

marked for identification,

1-21-98.)

THE COURT: Does the Environmental Protection

Agency have an opening statement, or would you rather

swear in the witnesses first and offer them for

testimony?

MS. ARCHER: It doesn't matter. I don't think

we're going to have any questions for W.R. Grace's

witnesses.

THE COURT: Okay. Why don't -- why don't we

give you the chance to give an opening statement then.

MS. ARCHER: Thank you.

Good afternoon. My name is Christina Archer, and I

represent the Illinois Environmental Protection Agency.

With me today is Mr. Kevin

Mattison from our source

monitoring unit, Mr.

Yeric Yarrington from our compliance

and systems management unit, and Mr. Brooke Peterson who

is a legal investigator with the Illinois EPA.

The Illinois EPA is jointly petitioning the Illinois

Pollution Control Board today, along with W.R. Grace, to

adopt the site-specific

rulemaking to be located at

Section 218.940(h) of the Board's air pollution control

regulations for W.R. Grace's

solvation mixers at its

L.A. REPORTING (312) 419-9292

facility located at 6050 West 51st Street in Chicago.

Section 218.940(h) would exempt W.R. Grace from the

control requirements of Subpart QQ in part 218. W.R.

Grace would still be subject to the record keeping and

reporting requirements of the subpart.

Today's site-specific regulatory proposal, docketed as

R 98-16, is the culmination of a long regulatory process

to determine the appropriate control mechanism --

compliance mechanism, excuse me, for W.R. Grace, and the

Illinois EPA believes that everything has been very

thoroughly documented to this point.

W.R. Grace has had variance relief for its

solvation

mixers for several years. The current variance, which is

docketed R 96-193, is due to expire on May 15th, 1998.

The current variance contains a compliance plan, which

the parties negotiated, that would have enabled W.R.

Grace to come into compliance with applicable regulatory

requirements of Subpart QQ through the use of add-on

controls.

However, both parties subsequently determined that no

add-on controls was the appropriate compliance

mechanism. The parties are here today asking the Board

to adopt the site-specific regulation.

The Illinois EPA has

prefiled the testimony of Kevin

L.A. REPORTING (312) 419-9292

Mattison and Yeric Yarrington in this matter.

Mr. Mattison's testimony focuses on the events prior to

and following the control device explosion at W.R. Grace

in June of 1996 and the Illinois EPA's and Grace's

efforts to determine whether it was possible for Grace to

safely continue operation of its control device.

Mr. Yarrington's testimony focuses on the compliance

plan and the current variance and the parties subsequent

determination that it is not possible to safely operate

the control device.

The Illinois EPA would now move that the Board enter

Mr. Yarrington's and Mr.

Mattison's testimony into the

record as if read to be marked as Exhibits 2A and 2B.

Both Mr.

Mattison and Mr.

Yerrington are available to

answer any questions anyone may have as well as

Mr. Peterson.

The Illinois EPA would like to thank both the Board

and W.R. Grace for its patience and cooperation

throughout this matter for the past several years. It's

been very frustrating at times, and the Illinois EPA

appreciates it very much.

The Illinois EPA would request that the Board adopt

the site-specific regulation as expeditiously as possible

before the expiration of the current variance. Thank

L.A. REPORTING (312) 419-9292

you.

THE COURT: Okay. Are there any objections to

prefiled testimony from the Illinois Environmental

Protection Agency being admitted as Exhibits 2A and 2B --

MS. DRIVER: No objection.

THE COURT: -- as if read into the record?

MS. DRIVER: No objection.

THE COURT: Okay. Then this will be marked and

entered into the record as if read with the

prefiled

testimony of

Yeric Yarrington being entered as Exhibit 2A

and the prefiled testimony of Kevin J.

Mattison being

entered as Exhibit 2B.

(Exhibit Nos. 2A and B marked

for identification,

1-21-98.)

THE COURT: Okay. It should be noted for the

record that Jack

Burds, a hearing officer for the

Pollution Control Board, has just entered the room.

MR. BURDS: I did.

MS. ARCHER: Off the record.

(Discussion had

off the record.)

THE COURT: I was going to have each witness

sworn in individually, but I think I'd like to do -- if

L.A. REPORTING (312) 419-9292

there are no objections, can we swear in W.R. Grace's

witnesses at one time and then the EPA's witnesses after

that? Okay. Then I'd like to ask you to swear in the

witnesses for W.R. Grace.

(Witnesses sworn.)

WHEREUPON:

A R O N G. A B

B O T T

R I C H A R D M. I R E L A N

R O B E R T C. W E L

L S

called as witnesses herein, having been first

duly sworn,

deposeth and saith as follows:

THE COURT: Okay. And at this point, if

anybody has any questions for the witnesses from W.R.

Grace on the

prefiled testimony or any other issues that

may come to mind, now would be the time to ask. Does

anybody have any questions?

MS. ARCHER: None from the Illinois EPA.

THE COURT: Does the Illinois Pollution Control

Board technical representative have any questions?

MR. O'BRIEN: No, we don't.

THE COURT: Okay. That being said, why don't

we swear in the witnesses from the Agency.

(Witnesses sworn.)

L.A. REPORTING (312) 419-9292

WHEREUPON:

K E V I N J. M A T

T I S O N

Y E R I C Y A R

R I N G T O N

called as a witnesses herein, having been first

duly sworn,

deposeth and saith as follows:

THE COURT: Does W.R. Grace have any questions

of the Agency's witnesses?

MS. DRIVER: No, we don't.

THE COURT: Does the Pollution Control Board

have any questions of the Agency's witnesses?

MR. O'BRIEN: No, we don't.

THE COURT: Okay. I think that being said and

there being no questions from anybody, I'd like to ask

both W.R. Grace and the Agency if, perhaps, we could

recess for about 20 minutes just to make sure no members

of the public plan on attending and asking any questions

of any witnesses.

So I'm going to recess this on the record if there --

continue this on the record if there are no objections at

this time, and we will stand to be continued until 1:40,

which is about 20 minutes from now.

MS. ARCHER: Fine.

THE COURT: Thank you.

(Break taken.)

L.A. REPORTING (312) 419-9292

THE COURT: We are now back on the record, and

there were no members of the public that showed up, and,

in fact, no members of the public have attended either

portion of this hearing, either that on January 8th,

1998, or January 21st, 1998, and seeing as how there were

no questions for any of the witnesses today, this hearing

is pretty much over.

I would like to note that the proposal was published

in the Illinois register on January 9th, 1998, and if my

calculations are correct, and feel free to correct me if

I'm wrong, 45 days after is February 23rd, 1998.

So we're going to set February 23rd, 1998, as the last

day that comments and testimony will be accepted. The

mailbox rule will apply. So you can mail it on that date

if you so choose.

Is there anybody else who has a comment they would

like to make at this time? Seeing nobody identifying

themselves, that concludes today's hearing. Thank you

all very much for your time and attention, and this

hearing is closed.

(Whereupon, these were all the

proceedings had in the

above-entitled matter.)

L.A. REPORTING (312) 419-9292

STATE OF ILLINOIS )

) SS.

COUNTY OF C O

O K )

I, GEANNA M. PIGNONE-IAQUINTA, do

hereby state that I am a court reporter doing business in

the City of Chicago, County of Cook, and State of

Illinois; that I reported by means of machine shorthand

the proceedings held in the foregoing cause, and that the

foregoing is a true and correct transcript of

my shorthand notes so taken as aforesaid.

__________________________

Geanna M. Pignone-Iaquinta

Notary Public, Cook County, IL

Illinois License No. 084-004096

SUBSCRIBED AND SWORN TO

before me

this_____day

of__________, A.D., 1998.

___________________________

Notary Public

L.A. REPORTING (312) 419-9292