ILLINOIS POLLUTION CONTROL
BOARD
October 27,
1993
KNAPHEIDE MFG.
CO.,
)
Petitioner,
)
v.
)
PCB 93—169
(Variance)
ILLINOIS ENVIRONMENTAL
)
PROTECTION AGENCY,
)
Respondent.
OPINION
AND
ORDER OF THE BOARD
(by C.
A. Manning):
On September 8,
1993,
the Knapheide Hfg. Company
(“Knapheide”) filed a petition for variance relief pursuant to
Section 35 of the Environmental Protection Act (“Act”) and 35
Ill. Adm Code 104.120 for its facility located in Quincy, Adams
County,
Illinois.
(415 ILCS 5/35
(1992).)
Knapheide is
requesting relief from 35 Ill.
Adm. Code 215.204(j) (2) and
(3)
which establish volatile organic material
(“VON”) emission
limitations for Miscellaneous Metal Parts and Product Coating
manufacturers.
The Board,
on September
9,
1993,
entered an order requesting
Knapheide to amend its petition filed on September 8,
1993,
to
cure certain deficiencies in that filing.
The Knapheide Company
filed an amended petition on September 16,
1993.
Knapheide in
its amended petition has waived its right to a hearing in this
matter pursuant to 35 Ill.
Adin. Code
104.124.
Pursuant to
Section 37(a)
of the Act,
legal notice was published on October
1,
1993.
No hearing request was filed with the Board.
(415 ILCS
5/37(a)
(1992).)
The Agency filed its recommendation in support of grant of
variance pursuant to Section 35(a)
of the Act and 35 Ill. Adm.
Code 104.180 on October 12,
1993.
In addition, the Agency states
in its recommendation that it does not “intend to submit to the
United States Environmental Protection Agency
(“USEPA”)
a State
Implementation Plan revision regarding this variance due to the
exigency of the surrounding circumstances, the attainment status
of the area in which the facility is located and the minimal
impact associated with the variance.”
1
(Rec.
at
2)
2
1
Pursuant
to
the Clean Air Act Section 110 if the State
Implementation Plan
were
to be revised
a public hearing woutd have been necessary.
(42 U.S.C.A. 7410
(1993).)
Accordingly, no hearing was scheduled or held in this matter.
For the following reasons,
the Board finds that Knapheide
Company has presented adequate proof that immediate compliance
with 35 Ill. Adm.
Code 215.204(j) (2) and
(3) would result in the
imposition of an arbitrary or unreasonable hardship.
Therefore,
the variance is granted, subject to the conditions set forth in
the order below.
BACKGROUND
The Knapheide Company is a manufacturer of tool boxes,
miscellaneous truck bodies, hoists and platforms.
The operations
involve metal shaping,
forming, welding, fabrication and
painting.
Knapheide employs approximately 145 persons and its
annual sales have been thirty million dollars
($30,000,000.00).
(Pet.
at 2(b).)
The Knapheide Company moved its operations from West Quincy,
Missouri to 1701 North 16th Street, Quincy, Illinois due to the
flooding of the Mississippi River which made its Missouri plant
inoperable.
Knapheide was granted two provisional variances from
the Board to allow it to move its operations and to continue
manufacturing while attempting to establish a permanent facility.
(See PCB 93-141, July 29,
1993,
and PCB 93—168,
September 9,
1993.)
Knapheide states in its petition, and the Agency reiterates
in its recommendation,
that VON are emitted from the facility’s
painting operations.
(Pet. at 2(c), Rec. at 3(11).)
The VON
emission is the result of the paint and thinner usage which is a
vital part of Knapheide operations.
(Pet. at 2(c).)
Both the
Agency and Knapheide state that when located in Missouri
Knapheide was
in compliance with the air permitting laws and
substantive regulations for VON emissions.
Knapheide states that
the VOM emissions were approximately 75-80 tons per year.
(Pet.
at 2(d).)
Further, Knapheide estimates that the maximum VON
content of the coating as applied to be 6.6 lbs. of VOM per
gallon of coating.
(A.
Pet. at Exhibit D.)
Knapheide states
that it expects to reduce the paint usage at the proposed site
and therefore reduce the VON emission.
(Pet. at 2(c).)
However,
the Board’s regulations at 35 Ill. Adm. Code 215.204(j) (2) and
215.204
(j)
(3) require Knapheide to utilize coatings containing
no more than 3.5 pounds per gallon of VOM; these are stricter
than the Missouri limitations.
As a result, Knapheide will not
be able to achieve compliance without changing its operation or
adopting a new method of operation.
Therefore, Knapheide is
requesting a two—year variance to construct a new facility which
2
The Agency
recomnendation will
be
cited
as
~
and
the Knapheide
petition and amended petition will
be
cited
as
~Pet.~
arid ~A. Pet.”
respect ively
3
would
enable
it
to
operate in compliance in Illinois.
COMPLIANCE
PLAN
Knapheide
proposes
to
achieve
compliance
by
constructing
a
new plant which
is
capable
of
utilizing
the
low VON-compliant
coating.
(A.
Pet. at 2(3).)
The construction time required for
completion of the new plant is roughly two years.
(A. Pet. at
2(3).)
Knapheide states that the estimated cost
is $8,000,000.
(A.
Pet. at 2(3).)
The Agency states
in. its recommendation that
Knapheide has reviewed all possible technically feasible and
economically reasonable alternatives and that Knapheide’s
analysis is based on sound engineering principles and evaluates
all reasonably available compliance strategies thoroughly.
(Rec.
at 4(16,17).)
Knapheide states that all other feasible
compliance alternatives would also require at least two years to
implement.
(Pet.
at Exhibit 4.)
The Agency recommends
Knapheide’s chosen method of compliance, the construction of a
new facility.
(Rec. at 4(19).)
HARDSHIP
Knapheide
states in its petition
that
it has spent roughly
$2,000,000
in
its
efforts to relocate
its
operations in
Illinois
at the temporary site located
in Quincy.
(A.
Pet. at 2(3).)
Additionally, Knapheide states it spent roughly $500,000.00
fighting the Mississippi River flood.
(A.
Pet. at 2(3).)
Knapheide states that if the variance is not granted,
it would
simply not be able to operate
in compliance and would be forced
to shut down.
(Pet. at 3(k).)
Knapheide and the Agency state
that Knapheide stands to lose its major customers and face
possible legal liability if it is not allowed to continue its
operations.
(Pet.
at 3(k),
Rec.
at 4(16).)
Currently,
Knapheide
is operating pursuant to two
(2) provisional variances granted by
the Board under Section 35(b) of the Act.3
The Agency’s recommendation states that denial of variance
would cause arbitrary and unreasonable hardship.
(Rec.
at 6.)
ENVIRONMENTAL IMPACT
Knapheide currently is located at 1701 North 16th Street in
Quincy, Illinois, approximately three miles from its Missouri
site which
is an area that is in attainment with the National
Ambient Air Quality Standard for ozone.
Knapheide states that
the environmental impact would be minimal due to this and that it
would be utilizing the same paint and thinners it used when
located in Missouri.
(Pet. at 3(g).)
See
PCB
93-141,
July
29,
1993,
and
PCB
93-168,
September
9,
1993.
4
After evaluating the 1992 Illinois Annual Air Quality Report
for ozone,
specifically regarding the Quincy monitoring,
the
Agency determined that Knapheide’s moving its facility
approximately three miles from the previous site “is unlikely to
affect the ozone readings at the Quincy monitor or otherwise
adversely affect Illinois’ air quality.”
(Rec. at 5(26).)
Additionally, the Agency states that, based upon the projected
compliant coatings usage estimates provided by Knapheide,
“the
VON emissions from the new facility,
once constructed, will be
less than 25 tons per year.”
(Rec.
at 5(27).)
Furthermore, the
Agency states that the “VON emissions at the Quincy facility will
be less than the 75—80 tons per year level due to decreased paint
and thinner usage.”
(Rec. at 5(25).)
CONCLUSION
Based upon the record, the Board finds that to require
immediate compliance with the VON limitations set forth at 35
Ill. Adm. Code 215.204(j) (2) and
(3) would impose an arbitrary or
unreasonable hardship on the Knapheide Company.
The flooding of
the Mississippi River which resulted in Knapheide moving its
operations to Illinois was beyond its control.
Knapheide has
already expended several million dollars fighting the flood and
re—locating its operations to Illinois.
During the period in
which Knapheide is constructing a new facility, which ultimately
will bring
it into compliance with the Board regulations,
it
would be impossible for Knapheide to continue its operations and
meet Board guidelines at the same time.
The environmental impact
for this period should be minimal,
if any, due to the VOM
emissions being relatively the same as when located three miles
away in Missouri.
Additionally, the temporary facility is still
located within an air quality attainment area.
Overall, with the
construction of the new plant which will be in compliance, the
total VON emissions will be reduced for the attainment area.
Knapheide and the Agency state that the grant of this variance
will be consistent with the applicable federal laws due to the
Agency’s conclusion that the State Implementation Plan will not
have to be revised.
(Pet. at 3(1), Rec.
at 2(9).)
Thus,
the
variance will be granted with certain conditions recommended by
the Agency.
(Rec. at 6-7.)
The Board has also specified a
limitation on the maximum VON emissions for coating used in
painting operations based on Knapheide’s estimation that the
maximum VOM content of coating as applied will be 6.6 lb per
gallon.
In addition, as a result of the unusual circumstances
related to the flood,
the Board grants this variance with a
retroactive start date of October 25,
1993.
This opinion constitutes the Board’s findings of fact and
conclusions of law.
5
ORDER
1.
The Knapheide Company is hereby granted a variance from 35
Ill. Adm.
Code 2l5.204(j)2 and
(3) as those sections apply to
Knapheide’s painting operations at its facility located at 1701
North 16th Street Quincy, Illinois.
The variance is subject to
the following conditions:
a.
The variance starts on October 25,
1993 and ends on
April
1,
1996.
b.
Volatile organic material emissions for coating used in
the painting operations shall not exceed 6.6 lbs. per gallon as
delivered to the coating applicator,
excluding water and any
compounds specifically exempted from the definition of volatile
organic material by Board regulations.
c.
Knapheide shall complete all phases of its compliance
plan by April
1,
1996.
d.
Knapheide shall submit semi-annual progress reports to
the Agency on January 15th and July 15th of each year during the
term of the variance.
These reports must include detailed
information on Knapheide’s progress toward cbmpletion of the new
facility and testing of compliant coatings.
e.
Knapheide shall apply for and receive any applicable
permits from the Agency prior to beginning construction.
2.
Within forty-five days of the date of this order, Knapheide
Company shall execute and forward to:
Sharon N. Davis
Assistant Counsel
2200 Churchill Road
P.O. Box 19276
Springfield, Illinois 62704
A certification of acceptance and agreement to be bound to
all terms and conditions of the granted variance.
The 45-day
period shall be held in abeyance during any period that this
matter is appealed.
Failure to execute and forward the
certificate within 45-days renders this variance void.
The form
of certificate is as follows.
CERTIFICATION
I
(We),
,
hereby
accept and agree to be bound by all terms and conditions of the
Pollution Control Board’s
(date of order)
in PCB 93-169.
6
Petitioner
Authorized Agent
Title
Date
IT IS SO ORDERED.
Section 41 of the Environmental Protection Act (415 ILCS
5/41
(1992)) provides for the appeal of final orders of the Board
within 35 days.
The Rules of the Supreme Court of Illinois
establish filing requirements.
See also 35 Ill. Adm. Code
101.246 Motions for Reconsideration.
I, Dorothy M. Gunn,
Clerk of the Illinois Pollution Control
Board, hereby ce tify that the abo
inion and order was
adopted on the
~4day of
_________________,
1993, by a vote
of 5~’
Control Board