ILLINOIS POLLUTION CONTROL BOARD
    May 24,
    1979
    LACLEDE STEEL COMPANY,
    Petitioner,
    v.
    )
    PCB 79—39
    ENVIRONMENTAL PROTECTION AGENCY,
    Respondent.
    OPINION AND ORDER OF THE BOARD
    (by Mr. Goodman):
    On February 26,
    1979, Laclede Steel Company (Laclede)
    filed a petition for variance before the Board.
    The petition
    for variance was amended on March 22,
    1979.
    No hearing has
    been held in this matter,
    and the Board has received no
    public comment.
    Laclede is engaged in the basic manufacture of steel
    and steel products at Alton
    in Madison County,
    Illinois.
    At
    that facility Laclede produces approxmately 500,000 tons of
    finished steel annually and employs approximately 2,500
    persons.
    The steel
    is produced in two 225 ton—rated capacity
    electric arc furnaces utilizing cold scrap
    as raw material.
    A portion of the steel
    is processed into finished pipe pro-
    ducts which are then galvanized by dipping the pipe
    in a
    molten bath of
    zinc.
    Particulates emitted from the galvani-
    zing process consist mainly of zinc oxide which presently
    is
    partially controlled by a baghouse.
    The remaining particulate
    emissions are collected and exhausted to the outside
    of the
    building through a stack or are discharged directly into the
    building.
    Laclede was originally granted an operating permit for
    its continuous weld pipe mill which includes the galvanizing
    operation in 1973.
    Upon application for renewal of the
    operating permit in 1978,
    the Illinois Environmental Protection
    Agency (Agency) notified Laclede that the application for
    renewal was denied based upon a probable violation of Rule
    203(b) of the Board’s Air Pollution Control Regulations.
    The Agency found that the galvanizing operation has a process
    weight rate of 1,066.2
    lbs./hr. with allowable emission rate
    under Rule 203(b) of 2.69
    lbs./hr.
    This Agency calculation
    of allowable emissions excludes the weight of pipe introduced
    to the process.
    Laclede calculates the process weight rate
    to be approximately 13,700 lbs./hr with an allowable emission
    33— 587
    —2—
    rate under Rule 203(b)
    of 14.9 lbs./hr.
    and includes the
    weight of the pipe processed in the calculation of the
    process weight rate.
    ‘Jnder the Laclede determination,
    the
    galvanizing operation continually meets Rule 203(b) stan-
    dards,
    but under the Agency determination, the galvanizing
    operation could not meet the standards on a continuous
    basis,
    Notwithstanding the dispute with respect to the emis-
    sion limitations that Laclede’s galvanizing operation must
    meet, Laclede is willing to install new equipment to meet
    the standard dictated by the more stringent interpretation
    of the regulations.
    To this end,
    Laclede is
    in the process
    of ordering a scrubber to be installed in conjunction with a
    system that will collect emissions from the uncontrolled
    portion of the galvanizing operation.
    Laclede alleges,
    and
    the
    Agency agrees,
    that the proposed system will control all
    potential emissions from the galvanizing operation in com-
    pliance with Rule
    203(b) as calculated by the Agency.
    It is
    further estimated that the system will be installed and
    operating by July 1,
    1979 at an estimated cost of approxi-
    mately $150,000.00.
    Laclede requests variance from Rule 203(b) until July
    1,
    1979,
    alleging denial of the variance would impose an
    arbitrary and unreasonable hardship on the company.
    During
    its investigation, the Agency determined that the proposed
    equipment would have
    a 99
    efficiency and would result in
    compliance with the regulations.
    After its investigation,
    the Agency concluded that the small amount of emissions
    involved would have a minimal impact on the community for
    the time requested in the variance petition.
    The Board
    finds that
    it would be unreasonable to deny the Laclede the
    variance requested considering the hardship alleged, the
    minimal effect on the environment should the variance be
    granted,
    and the petitioner’s good compliance record in the
    past.
    The Board will therefore grant Laclede the requested
    variance from Rule 203(b) and Rule 103(b)(2)
    (operating
    permit)
    until July 1,
    1979 to allow it to continue to operate
    while installing the new pollution control equipment,
    under
    certain conditions.
    Since Laclede has volunteered to install
    equipment which will enable
    it to meet the emission limitations
    as determined by the Agency, the Board will
    not address the
    issue of how the process weight rate should be determined.
    The Board notes that its policy concerning process
    weight rate has been delineated in Owens—Illinois,
    Inc.
    v. EPA,
    PCB 78—288
    (Mr. Werner’s dissent, February 2,
    1978); United
    States
    Steel Corp.
    v. EPA, PCB 77-327; Union Carbide Corp.
    v.
    EPA, PCB 78-21; Oscar Mayer
    & Co.
    v.
    EPA, PCB 78—14.
    This opinion constitutes the findings of fact and
    conclusions of law of the Board in this matter.
    33—588
    —3—
    ORDER
    1.
    Finding that the Laclede Steel Company
    is currently
    unable to comply with certain of the Board’s Air
    Regulations,
    it
    is the order of the Pollution
    Control Board that Laclede be granted variance
    from Rules
    203(b) and 103(b)(2)
    of the Board’s Air
    Pollution Control Regulations until July
    1,
    1979,
    under the following conditions:
    a.
    Laclede
    shall execute its proposal to order
    and install
    a scrubber to be used in connec-
    tion with the system that will collect the
    uncontrolled emissions from the galvanizing
    operation.
    b.
    The scrubber and collection system shall be
    placed and in operation on or before July
    1,
    1979.
    c.
    Laclede shall notify the Illinois Environmental
    Protection Agency of any compliance tests
    it
    proposes to run on the equipment in sufficient
    time to allow the Agency to witness such
    tests,
    if
    it
    so desires.
    d.
    Within 45 days of
    the adoption of this Order,
    Laclede shall execute and forward to the
    Illinois Environmental Protection Agency,
    2200 Churchill Road,
    Springfield, Illinois
    62706
    a Certification of Acceptance and
    Agreement to be bound to all terms and condi-
    tions
    of this Order.
    The
    45 day period shall
    be held in abeyance during any period this
    matter is being appealed.
    The form of said
    certification shall
    be as follows:
    CERTIFICATION
    I
    (We),
    _______________________,
    having read and
    fully understanding the Order of the Illinois Pollution
    Control Board in PCB 79—39, hereby accept said Order and
    agree to be bound by all of the terms and conditions thereof.
    SIGNED _______________________
    TITLE __________________________
    DATE
    33—589
    —4—
    2.
    Laclede
    Steel Company is hereby notified that it
    may be liable for non—compliance penalties under
    Section
    120
    of
    the Federal Clean Air Act should
    it
    not achieve compliance by July
    1,
    1979.
    I,
    Christan
    L.
    Moffett, Clerk of the Illinois Pollution
    Control
    Board, hereby cer~ifythe above Opinion and Order
    were adopte~on the
    c~f-/~ day
    of
    _______________,
    1979 by
    a vote of ~
    Christan L.
    Moffett,
    91~k
    Illinois Pollution Coi~~’olBoard
    33—590

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