RECEIVED

CLERK’S OFFICE

BEFORE THE ILLINOIS POLLUTION

CONTROL BOARD

SEP

122005

IN THE MATTER OF:

STATE OF

ILLINOIS

cC

Ut)

I

Pollution

Control

Board

PETITION OF LAFARGE

MIDWEST,

INC.

)

AS

___

____________

FOR AN ADJUSTED STANDARD

FROM

35 Ill.

Adm.

Code 739.161

PURSUANT TO 35111. Adm. Code

720.132 and

720.133.

)

NOTICE OF FILING

TO:

Illinois Pollution Control Board

Attn:

Dorothy M. Gunn, Clerk

100 West Randolph Street

James R. Thompson Center, Suite 11-500

Chicago, IL

60601-32 18

Division of Legal

Counsel

Illinois Environmental Protection Agency

1021

North Grand Avenue East

P.O. Box

19276

Springfield,

IL

62794-9276

PLEASE

TAKE

NOTICE

that

on

this

P7th

day

of

September,

2005,

a

copy

of

the

attached

Petition for Adjusted Standard

was

filed

with

the Office

of the

Clerk

of the Illinois

Pollution

Control

Board,

a copy of which is herewith served on you.

Respectfully submitted,

Jon ~

~~yfo~

Petitioner Lafarge Midwest, Inc.

Jon S. Faletto

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211

Fulton Street

Peoria,

IL

61602

(309) 672-1483

Iañg:\j-I\Iafarge’\south chicago\pcb 1iIings’~oticefiIingpetition#29-7-O5.doc

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RECE~VEO

BEFORE THE ILLINOIS POLLUTION CONTROL BOARDCLERKS

OFFICE

SEP

1

Z

2005

IN

THE MATTER OF:

)

)

STATE OF ILLINOIS

PETITION

OF LAFARGE

MIDWEST,

INC.

)

AS

-

cfflhlution Control SQard

FOR AN

ADJUSTED STANDARD

)

FROM

35

III. Adm.

Code 739.161

)

PURSUANT TO

35

III. Adm.

Code 720.132

and

)

720.133.

)

CERTIFICATE OF

SERVICE

I,

the undersigned, certify

that

I have

served

the

attached

Petition for Adjusted Standard

upon the person or agency to

whom

it is directed, by placing

it in an envelope addressed to:

Illinois Pollution Control Board

Atm:

Dorothy M. Gunn, Clerk

100 West Randolph Street

James R. Thompson Center, Suite

11-500

Chicago, IL

60601-3218

Division of Legal Counsel

Illinois Environmental Protection Agency

1021

North Grand Avenue East

P.O. Box

19276

Springfield,

IL

62794-9276

and

mailing it via First

Class

U.S.

Mail

from

Peoria, Illinois,

on

this

7th

day of September,

2005,

with

sufficient postage affixed thereto.

Jon~o,

~!eyfo~7~

Peti

ner Lafarge Midwest, Inc.

Jon S. Faletto

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211

Fulton Street

Peoria,

IL

61602

(309) 672-1483

laf\g:\j-lMafargc\south chicago\pcb filings\ccrtscrvj,etition_9-7-05.doc

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CLERK’S OFFICE

SEP

1

Z

2005

BEFORE THE

ILLINOIS

POLLUTION CONTROL BOARD

STATE

OF ILLINOis

Pollution Control Boarrj

IN THE

MATTER OF:

)

PETITION OF LAFARGE MIDWEST, INC.

)

AS

___-

FOR AN ADJUSTED

STANDARD

)

FROM

35

III. Adm.

Code 739.161

PURSUANT TO 35

Ill. Adm. Code

720.132 and

720.133.

)

PETITION FOR ADJUSTED

STANDARD

NOW

COMES

the

Petitioner,

LAFARGE

MIDWEST,

INC.,

by

and

through

its

attorneys,

Howard

&

Howard

Attorneys,

P.

C.,

and

presents

to

the

Illinois

Pollution

Control

Board

(“Board”)

its

Petition

for

Adjusted

Standard

pursuant

to

35

Ill.

Adm.

Code

720.133

requesting a

determination

that

certain equipment

be

considered

an

“industrial boiler”

as

that

term

is

defined

in

35

III.

Adm.

Code

720.110.

The

Board

regulations

at

35

Ill.

Adrn.

Code

720.132

provide that the

Board will

make

such a determination

on a case-by-case basis

utilizing

the Adjusted Standard procedures of Subpart D of 35 Ill.

Adm.

Code

104.

In support of its Petition, the Petitioner states as follows:

I.

Description ofPetitioner and South

Chicago Facility

The

South

Chicago

Slag

Grinding

Plant

(“Grinding Plant”)

is

owned

and

operated

by

Lafarge

Midwest,

Inc.

(“Lafarge”),

a

subsidiary of Lafarge

North

America,

Inc.

Together with

its

subsidiaries,

Lafarge

North

America

is

the largest supplier of cement

and

a

leading

ready-

mixed

concrete supplier in North America.

The

Company also

is one

of the

top

four producers

of construction aggregate (crushed

stone,

sand and gravel) and

a leading manufacturer of gypsum

drywall.

Lafarge

North America has over

1,000 operations doing business

in

almost every

State

and

throughout

all

provinces

in

Canada through

its

Lafarge

Canada,

Inc.

subsidiary.

Lafarge’s

products are used in the construction of such diverse projects as roads, office buildings,

factories,

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hospitals, department stores, sports stadiums, banks, museums,

high-rise apartments,

amusement

parks, swimming poo1s and

bridges.

In 2002,

Lafarge North America shipped

117.1

million tons

of aggregate,

11.1

million cubic yards of ready-mixed

concrete,

13.8

million tons

of cement

and

2.0 billion square feet of gypsum drywall.

Lafarge

developed the

South

Chicago Slag

Grinding Plant

in

2001

and

2002.

The plant

was developed on

existing Lafarge property that had

been used as

a termina1~

for ccntcnt~

product

storage and distribution

since approximately

1987.

The Grinding Plant is located at the common

address of 2150 East

130th

Street, Cook County,

Chicago,

Illinois,

adjacent to the Calumet River

and the southernmost portion of Lake Calumet.

The Lake Calumet area is a heavily industrialized

area ofactive

and closed steel mills,

oil

refineries,

railroad

yards, coke ovens, heavy manufacturing and waste disposal

facilities.

Waste

disposal

facilities

arc

a

major

land

feature

of

the

landscape;

five

major

facilities

—

Paxton

I,

Paxton II, Land &

Lakes, CD No.1, and

CID No.

2— cover approximately 820 acres in the Lake

Calumet area, with

only Waste Management’s

CID No.2 landfill currently

operating.

An

aerial

photograph showing the Grinding Plant is

attached

as Exhibit

A.

In addition,

a map showing the

location of the Grinding Plant and

low

population density of the surrounding Lake Calumet area

is attached hereto as Exhibit

B.

The economy

and

communities

in

the

Lake Calumet

area are

still

recovering

from

the

loss ofseveral steel mills,

including

Wisconsin Steel (1980), U.S.

Steel Company’s

South Works

(1992), LTV

and Acme Steel (2003), and

the closing of the many area businesses that supported

the

steel

industry.

The Lake Calumet

area has

vast

acres of vacant

land available

for industrial

development;

at least 1,000

acres of vacant

property is

identified as available

for industrial

uses

in

the City of Chicago’s 2002

Calumet Area

Land

Use

Plan.

That

Land Use

Plan

designates

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property in

the

Lake Calumet

area

for

future

industrial

development

and

open

space,

but

no

property is designated for future residential development.

Sustainable development, using

a

byproduct

from

another industry,

was

one of the key

factors

in

Lafarge’s

decision

to

construct

the Grinding

Plant

at

this

location.

The principal

product produced by Lafarge’s Grinding Plant is a slag cement product markete4underthcirade

name

“NewCem®”.

NewCem

is

produced

by

drying

and

grinding a

pellctized or

granulated

iron

blast

furnace

slag

to

cement

fineness.

The

blast

furnace

slag

used

by

Lafargc

in

the

production of NewCcm

is

generated

at the Ispat-Inland,

Inc.

integrated

stceLfacility located

in

East Chicago, Indiana, approximately 20 miles away.

Blast furnaces,

which produce

iron

from iron ore

in the presence oflimestone or dolomite

fluxes produce a

molten

slag.

The molten

slag is tapped off the furnace separately from the iron

and

quenched with

water through

a

granulation or pelletizing process.

Modern blast furnaces

produce

slag

having

a

very

low

variability.

Typically,

the

oxide

forms

of

silicon,

calcium,

aluminum and magnesium make up

95

or more of the blast furnace slag.

Slag cement such

as Lafarge’s NewCem

product can be used to

replace

a portion

of the

cement

in

a

concrete

mix.

The

advantages

of

slag

cement

are

improved

workability

and

pumpability

in

the plastic

(unhardened) form of concrete.

In hardened concrete,

the use of slag

cement

increases

strength,

reduces

permeability

and

heat

of

hydration,

increases

sulfate

resistance and controls the alkali/silica reaction.

The environmental benefits associated

with

production of NewCem

slag

cement

include

productive

use

of

an

industrial

byproduct,

i.e.

blast

furnace

slag,

that

otherwise

would

be

landfilled,

reduced

use

of

virgin

materials

and

substantially

reduced

energy

consumption

compared

to

the

energy

demands

of Portland

cement

manufacturing.

Lafarge’s

proposal

to

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utilize off-specification used oil fuel in the slag drying process provides additional environmental

benefits by

recycling

and

reclaiming

the

thermal

energy

from

the

waste

oils

that

arc generated

from

motor vehicles,

refineries

and

manufacturing processes using

machining/cutting

oils,

heat

transfer

fluids, hydraulic

fluids and general lubricants.

The

U.

S.

Environmental

Protection

Agency

(“USEPA”)

has

actively

promoted

and

approved

the

recycling

of used

oil

for

energy

recovery

since Congress

passed

the

Used

Oil

Recycling

Act

in

1980.

Consistent with

the

legislative mandate

to

adopt

a hazardous

and

solid

waste management program

consistent

with the

federal program and

to

secure USEPA

approval

thereof,

the Board

has adopted “identical-in-substance” regulations

designed

to

encourage

used

oil

recycling

and

buming

specification

and

off-specification

used

oil

for

energy

recovery.

Utilization

of off-specification

used

oil

fuel

in

the

slag

drying

system

at

the

Lafarge

Grinding

Plant is not

expected to

change the current air

emissions

from

the facility, other than

a

negligible

increase

in

the emissions of sulfur dioxide emissions

from

the drying operation.

The

air emissions

associated with

the proposed use ofoff-specification

used oil fuel will be subject to

approval by

the IEPA

through

modification of the Grinding

Plant’s

existing

Lifetime

Operating

Permit.

The

permit

modification

procedures

will

provide

the

opportunity

to

address

any

questions

related

to

emissions of air contaminants associated

with

the combustion

of used oil

fuels.

II.

Petition Content Requirements of 35

III. Adm. Code 104.406

Set

forth

below

is the information

specified by

35

Ill.

Admin.

Code

104.406

required

to

be

included

in

a

Petition for Adjusted

Standard.

The information

is

organized

under

headings

corresponding

to

the

informational

requirements

of each

subsection

of

Section

104.406,

in

compliance with that Section.

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a)

A

statement

describing

the

standard

from

which

an

adjusted

standard

is

sought

This

must

include

the

Illinois

Administrative

Code

citation

to

the

regulation

of

general

applicability

imposing

the

standard

as

well

as

the

effective date of that regulation;

Response:

The Board

has

promulgated

administrative

regulations

applicable

to

the

management

of used oil

set

forth

at

35

III.

Adm.

Code

Part

739.

Subpart

G of the

Part

739

Standards for

the Management of Used

Oil

allow the burning of off-specification used oil

for

energy recovery.

The burning of off-specification

used oil is allowed in

certain devices specified

in

35

Ill.

Adm.

Code

Section

739.161(a),

including

“industrial

boilers.”

That

regulation

of

general

applicability states:

Section

739.161

Restriction

on Burning

a)

Off-specification used oil

fuel may only be burned

for energy recovery

in

the following devices:

1)

Industrial furnaces identified in

35 Ill. Adm.

Code

§720.110;

2)

Boilers,

as

defined

in

35

III.

Adm.

Code

720.110,

that

are

identified as follows:

A)

Industrial boilers

located on the site of a facility engaged in

a

manufacturing process where

substances

are transformed

into

new

products,

including

the

component

parts

of

products, by mechanical or chemical processes;

B)

Utility

boilers

used

to

produce

electric

power,

steam,

heated or cooled air, or other gases or fluids for sale; or

C)

Used oil-fired space heaters provided that the burner meets

the provisions of Section 739.123; or

3)

Hazardous

waste

incinerators subject to

regulation

under

Subpart

0

of 35

Ill. Adm. Code

724 or 725.

The

Board

has

promulgated

regulations

at

35

Ill.

Adm.

Code

720.132

and

720.133

establishing

criteria

and

procedures

for

making

a

determination that

certain

enclosed

devices

using

controlled

flame

combustion

are

“boilers”

that

may

be

utilized

for

the burning of off-

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specification used oil, even though such devices do not

otherwise meet the definition of “boiler”

contained

in

35

Ill.

Adm.

Code

720.110.

Section

720.132

establishes

the

criteria

to

be

considered by the Board and

Section 720.133

mandates use of the Adjusted

Standard procedures

of Subpart

D

of

35

Ill.

Adm.

Code

104

to

determine

whether

a

particular

enclosed

flame

combustion device is a “boiler” that may be used to burn off-specification used oil.

Petitioner seeks an adjusted

standard from 35

Ill.

Adm. Code

§739.161(a) pursuant to

the

criteria established by Section 720.132

and utilizing the procedures established by 720.133.

The

regulation ofgeneral

applicability, specifically

35

Ill.

Admin.

Code 739.161(a), was promulgated

with an

effective date ofJuly

19,

2004 (28

Ill.

Reg.

10706,

effective July

19, 2004).

b)

A

statement

that

indicates

whether

the

regulation

of general

applicability

was promulgated

to

implement,

in

whole

or

in

part, the requirements

of the

CWA

(33

USC

1251

et

seq.),

Safe

Drinking

Water

Act

(42

USC

300(1)

et

seq.),

Comprehensive Environmental

Response,

Compensation

and

Liability

Act (42 USC

9601

et seq.), CAA (42

USC 7401

et seq.), or the State programs

concerning RCRA,

UIC, or NPDES

415

ILCS

5/28.11;

Response:

The regulation of general

applicability,

35

III. Adm.

Code 739.16 1(a), was

promulgated

to

implement,

in

whole

or in part, the requirements of the Illinois

program

for the

management

of solid

and

hazardous waste,

the state

analog

to

the

federal

regulatory

program

under

the

Solid

Waste

Disposal

Act,

as

amended

by

the Resource Conservation and

Recovery

Act, 42 U.S.C.

§6901,

et ~q.

(hereafter “RCRA”.)

c)

The

level

of

justification

as

well

as

other

information

or

requirements

necessary for

an adjusted

standard

as

specified

by

the regulation of general

applicability

or

a statement

that the regulation

of general applicability

does

not specify

a

level

of justification

or

other

requirements

415

ILCS

5/28.11

(See Section

104.426);

Response:

Although

the

regulation

of

general

applicability

from

which

relief

is

sought

35

Ill.

Adm.

Code

739.161(a),

does

not

specify

the

information

or

requirements

necessary for an

adjusted standard,

the Board’s regulations

at

35

Ill.

Adm.

Code

720.132

and

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720.133

establish

the

criteria and

procedures

for

securing

adjusted standard relief

from

35111.

Adm.

Code

739.161(a).

Section

720.132

establishes the criteria to be

considered by the Board

for making

a

determination that certain enclosed devices using controlled

flame combustion

arc

“boilers”

that

may be

utilized

for burning

off-specification

used

oil

for energy recovery,

even

though such devices do not otherwise meet

the definition of a “boiler” contained

in 35

III. Adm.

Code

§720.110.

(Note:

Sections

720.132

and

720.133

arc

virtually identical

to

the

federal

RCRA

regulations

at

40

CFR

260.32

and

260.33

which

establish

the

criteria

and

variance

procedures for “case-by-case” determinations that specific combustion devices can be considered

“boilers.”)

The criteria and procedures

for securing adjusted standard relief from

35

III. Adm.

Code

739.161(a) are set

forth in Sections 720.132

and 720.133 which are set

forth below:

Section 720.132

Boiler Determinations

In

accordance with

the

standards

and

criteria

in

Section

720.110

(definition

of

“boiler”),

and

the procedures

in

720.133,

the Board

will determine on

a

case-by-

case

basis

that

certain

enclosed devices

using

controlled

flame

combustion

are

boilers, even though they do

not otherwise meet

the definition of boiler contained

in Section

720.110, after considering the following criteria:

a)

The extent

to

which

the unit has provisions

for recovering

and

exporting

thermal energy in the form of Steam, heated fluids or heated gasses;

b)

The

extent

to

which

the

combustion

chamber

and

energy

recovery

equipment are of integral design;

c)

The efficiency of energy

recovery,

calculated

in

terms

of the recovered

energy compared with the thermal value ofthe fuel;

d)

The extent to which exported energy is utilized;

e)

The

extent

to

which

the

device

is

in

common

and

customary

usc

as

a

“boiler”

functioning

primarily

to

produce

steam,

heated

fluids

or heated

gases; and

1)

Other relevant

factors.

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(Source:

Amended at 27

Ill. Reg.

§12713,

effective July

17, 2003.)

Section

720.133

Procedures for Determinations

The Board

will

use the procedures

of Subpart

D

of 35

Ill.

Adm.

Code

104

for

determining

whether

a

material

is

a

solid

waste

or

for determining

whether

a

particular enclosed flame combustion device is

a boiler.

(Source:

Amended at 27

Ill.

Reg.

§12713,

effective July

17, 2003.)

d)

A description of the

nature of the petitioner’s

activity that

is the

subject

of

the proposed adjusted

standard.

The

description

must

include

the location

of, and area

affected

by,

the petitioner’s activity.

This description

must also

include the number of persons

employed

by

the petitioner’s facility at

issue,

age of that

facility, relevant pollution

control equipment already

in

use, and

the

qualitative

and

quantitative

description

of

the

nature

of

emissions,

discharges or releases currently generated by the petitioner’s

activity;

Response:

The

principal

product

produced

by

Lafarge

at

the

South

Chicago

Slag

Grinding Plant is

a

slag cement product marketed under the trade name “NewCem®”.

NewCem

is

a

ground

granulated blast furnace

slag

produced by

grinding a pelletized or granulated

blast

furnace

slag

to

cement

fineness.

The

blast

furnace

slag

used by

Lafarge

in

the production of

NewCem

is

generated

at

the

Ispat-Inland,

Inc.

integrated

steel

mill

located

in

East

Chicago,

Indiana, approximately

20 miles away.

Pelletized slag

is delivered to the Grinding Plant via truck.

The 10-12

moisture content

of the

slag

guarantees

a

dust-free

transfer

of slag

from

the truck

to

the

raw

material

storage

hoppers

at the Grinding Plant.

From the storage hoppers, raw material

is

moved via conveyors

and

elevators

through

the

Grinding

Plant

where

any

metallic

compounds

are

removed

via

magnets

before

the

slag

is

introduced

into the drying

system.

The

slag

dryer

functions

as

a

direct-fired process heater to reduce the moisture

content ofthe blast furnace slag so that the slag

can be

ground into a fine powder and processed

into

slag cement.

The dried slag discharges

to

a

cyclone

collector before being

fed

to

a

large ball

mill

to

reduce the

slag

to

a

fine powder

and

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achieve product specifications.

NewCcm

is

a Grade

120

slag

cement

that

meets ASTM

C-989

and ASHTO M-302 specifications.

The Grinding Plant has the capacity to

grind over 500,000

metric tons of granulated slag.

Sales ofNewCem

in

2002

were

120,000

metric tons

and

for 2003

were

approximately

200,000

metric

tons.

NewCem

product produced by

the Lafarge

Grinding Plant

is

distributed through

a

marine transportation system using the Great Lakes

and major rivers

through Lafarge distribution

terminals located

in Red Rock, Minnesota, Kansas City, Missouri and

Cleveland, Ohio.

The

slag

cement manufacturing

operations are

continually monitored

to

ensure

efficient

operation of the Grinding

Plant.

There

are currently

sixteen

(16)

full-time

employees

at

the

Grinding

Plant;

fifteen

salaried

plant

employees

and

one

salaried

distribution

employee.

The

annual payroll is approximately $850,000.

Annual tax payments made to the State of Illinois

and

Cook

County

are

approximately

$326,000.

Through

its

payroll

and

tax

payments,

Lafarge

supports the depressed economy in the Lake Calumet area and has an

active community relations

presence

through

its

involvement

with

the

Calumet

Area

Industrial

Commission,

Hegewisch

Chamber

of

Commerce,

East

Side

Chamber

of

Commerce

and

the

Illinois

Manufacturers

Association.

NcwCem

is

produced at the Lafarge

Grinding

Plant with

state-of-the-art

manufacturing

technology

ensuring

consistent

supply

for

customers,

exacting

quality

control

to

guarantee

excellent

product

quality

and

minimal

environmental

impact.

The

environmental

benefits

associated

with

production

of NewCem

slag

cement

include

productive

use

of an

industrial

byproduct, reduced use of virgin materials and reduced energy consumption.

Lafarge’s proposal to

utilize off-specification used oil

fuel in

the drying process provides

additional

environmental

benefits by

recycling

used oils

that

are continuously

generated

from

THIS FILING SUBMITTED ON RECYCLED PAPER

9

---

motor

vehicles,

refineries

and

manufacturing

operations

using

machining/cutting

oils,

heat

transfer

fluids,

hydraulic

fluids

and

general

lubricants.

Burning

used

oil

is

an

accepted

and

proven

means

of energy recovery

in

Illinois

and

throughout the United

States.

Utilizing off-

specification

used

oil

fuel

would

permit

Lafarge

to

better

manage

its

fuel

costs

to

stay

competitive

in

the market.

It

would

provide

additional

security for operations

at

the Grinding

Plant

and

reduce the Company’s

exposure to

the volatility of price and

supply

of natural

gas, a

non-renewable source ofenergy.

e)

A description of the efforts

that would

be

necessary

if the petitioner was

to

comply

with

the

regulation

of

general

applicability.

All

compliance

alternatives,

with

the

corresponding

costs

fOr

each

alternative,

must

be

discussed.

The

discussion

of costs

must

include

the

overall

capital

costs

as

well as the annualized capital and

Response:

Through

this

Adjusted

Standard

proceeding,

Petitioner

seeks

a

determination

by

the

Board

that

the

slag

dryer

operated

at

its

South

Chicago

Plant

may

be

considered

a

“boiler”

for purposes ofusing off-specification used oil as supplemental fuel.

The

slag

dryer

functions

as

a

direct-fired

process

heater

to

reduce

the

moisture

content

of blast

furnace slag

so

that

the

slag

can be

ground into

a fine powder and

processed

into

slag

cement.

The finished slag cement

product is used as

an architectural building material

and in

a number of

construction and building applications.

In January

2004,

the Petitioner

requested confirmation

from

the Illinois

Environmental

Protection

Agency

(“IEPA”)

that

the

slag

dryer

could be

considered a “boiler” as

that

term

is

defined at

35

Ill.

Adm.

Code

720.110,

and

was therefore

authorized

to

bum

off-specification

used oil for

energy recovery.

By

letter

dated

May

28,

2004,

the IEPA through

Ms.

Joyce

L.

Munie, P.E.,

Manager-Permit Section,

Bureau of Land, stated that the slag

dryer

“.

.

.

would

not

meet the definition of industrial boiler in 35

Ill.

Adm.

Code 720.110.”

THIS FILING

SUBMITTED ON RECYCLED

PAPER

10

---

Although

Petitioner disagrees

with

the IEPA’s

decision and

believes

that

the

slag dryer

meets

the definition

of “boiler”

in

35

III.

Adm.

Code

§720.110,

Petitioner

would

not

risk

an

enforcement action

by proceeding

to

utilize off-specification

used oil

as

a

fuel

in the

slag dryer.

As a result of IEPA’s interpretation of Section 720.110, Petitioner is prohibited from buming off-

specification used oil for energy recovery in its

slag dryer.

There are no compliance

alternatives,

no capital improvements and no operational changes that would allow Petitioner to “comply with

the regulation of general

applicability.”

1)

A

narrative

description

of

the

proposed

adjusted

standard

as

well

as

proposed

language

for

a

Board

order

that

would

impose

the

standard.

Efforts necessary

to

achieve this

proposed

standard

and

the corresponding

costs

must also

be presented;

Response:

Pursuant to

the criteria set forth at 35

III. Adm.

Code

§720.132, the Board

may grant the requested Adjusted Standard through a determination that the slag drycr is

a boiler,

even though it may not otherwise meet the definition ofthe term “boiler” set forth at 35

Ill. Adm.

Code §720.110.

Once the Board determines

that the Petitioner’s slag

dryer meets the criteria set

forth

at

35

III.

Adm.

Code

§720.132, it will meet

the regulatory definition of the term “boiler”

at

35

Ill.

Adm.

Code 720.110, which states

in relevant part:

Boiler by designation.

The

unit

is

one that

the Board

has determined,

on a

case-

by-case basis,

to be a boiler,

after considering the standards

in Section

720.132.

An industrial boiler located

on the site of a facility engaged in

a manufacturing process is

authorized under Subpart G of 35

Ill.

Adm.

Code Part

739 to

utilize off-specification used oil for

energy

recovery.

Upon

determination

by

the

Board

that

Petitioner’s

slag

dryer

should

be

classified as

a

“boiler,”

it will

be

allowed

to

burn off-specification

used oil

for energy recovery

because it will be

considered a “Boiler by designation.”

THIS

FILING

SUBMITTED

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Set

forth below

is proposed language

for a Board Order that would approve the requested

Adjusted Standard relief:

1.

Procedural History

2.

Background

3.

Agency Recommendation

4.

Response to Recommendation

5.

Discussion

-

Legal Framework

-

Availability ofRelief Under Section

720.132

-

Section

720.132 Factors

-

Other Relevant Factors

6.

Conclusion

The Board finds that Lafarge Midwest,

Inc.

has established under Section

720.132 ofthe

Board

regulations

(35

Ill.

Adm.

Code

720.132),

that

the

slag

dryer

operated

at

the

South

Chicago facility

satisfies

the criteria

set forth

in

Section

720.132

to

be

considered

a

“boiler.

Accordingly,

the Boardfinds and determines

that the slag dryer is a

“boiler” within the meaning

of 35 IlL Adm. Code

720./Ia

The

Board’s determination

that the slag dryer

is

a

“boiler” will

allow

it

to

he

usedfor

the

combustion

of off-speqfication

used

oil for

energy

recovery,

in

compliance

with

Section

739.161 of the Board ~sregulations

(35 Ill.

Adm.

Code

739.161).

The Board emphasizes that use

of off-spec~JIcationused

oil as fuel for

the

slag

dryer must

comply

with

all

other

applicable

Illinois

and

federal

environmental

standards

and

requirements,

including

the

terms

and

conditions of L?fetime

Operating Permit No.

98010053,

issuedfor operation of the

THIS FILING SUBMITTED

ON

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12

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Blast

Furnace

Slag

Grinding

and

Drying

Operation

and

associated

air pollution

control

equipment and any subsequent moc4/ications thereto.

ORDER

1.

The

Board finds

that

the

slag

dryer

operated

by

Lafarge

Midwest,

Inc.

at

its

South

Chicago

Cement Distribution

Terminal/Slag

Processing Facility

meets

the

criteria

set

forth

in

35111.

Adm. Code §720.132 to

be considered a

“boiler.”

The Board accordingly

grants Lafarge Midwest,

Inc.

an

Adjusted Standard under 35 IlL Adm.

Code

720.132 and

determines

that

the

slag

dryer

is

a

“Boiler

by

designation”

under

35

IlL

Adm.

Code

§

720.110.

2.

The Adjusted

Standard will allow the slag dryer to combust off-specUication

used oilfor

energy recovery under

35

Ill.

Adm.

Code

739.161,

subject

to

compliance

with all

other

applicable Illinois andfederal environmental standards and requirements.

ITIS SO ORDERED.

g)

The

quantitative

and qualitative

description

of the impact of the petitioner’s

activity

on

the

environment

if

the

petitioner

were

to

comply

with

the

regulation

of

general

applicability

as

compared

to

the

quantitative

and

qualitative impact

on the environment

if the

petitioner were to

comply

only

with the proposed

adjusted

standard.

To

the extent

applicable,

cross-media

impacts must be discussed.

Also, the petitioner must compare the qualitative

and

quantitative

nature

of emissions,

discharges

or

releases

that

would

be

expected

from

compliance

with

the

regulation

of

general

applicability

as

opposed to that which would be expected

from

compliance with

the proposed

adjusted standard;

Response:

As

noted

above,

IEPA questioned whether

the slag

dryer

and drying

system

at

the Lafarge

Grinding

Plant

met

the definition

of a

“boiler”

in

35

Ill.

Adm.

Code

720.110.

Although

Lafarge

believes

that the slag dryer

meets the boiler definition and

therefore is allowed

to

combust off-specification used oil fuels,

it is not utilizing off-specification used oil

as

a

fuel in

THIS

FILING SUBMITTED ON RECYCLED PAPER

13

---

the slag

dryer.

As

a result, Lafarge is not able to secure the benefits ofused oil recycling and the

recovery ofthermal energy contained in these materials.

Lafarge

will

continue

to

combust

substantial

quantities

of natural

gas

and

suffer the

economic

uncertainties

associated

with

the volatility of natural

gas supplies

and

costs.

As

the

cost of natural gas increases and availability decreases, the economic success-and vaab~iitynithe

slag

cement

production

operation

at

the

Grinding

Plant

becomes

questionable;

a

production

process that utilizes secondary materials from the steel industry that otherwise must

be

landfilled

or otherwise disposed of.

If the Board

grants the requested adjusted standard

relief,

Lafargc

would

purchase used

oil

fuel

from regulated used oil marketers at a cost per Btu ofthermal energyihatis

significantly

less

than

the

escalating

cost

of natural

gas.

The

used

oil

fuels

would

be

subject

to

strict

specifications

to

ensure

high

Btu

value,

allow

complete

combustion

and

produce

negligible

change in

the combustion exhaust gas composition.

The

only

consequence

associated

with

the

Board’s

approval

of Lafarge’s

request

to

utilize

used oil

fuels

in

its

slag

drying

system

would

be

a

change

in

the air pollutant

emissions

from

the slag

dryer.

Currently, the drying

system utilizes

natural

gas as the primary dryer

fuel

and

air

contaminants

from

the

combustion

process

are

authorized

under

Lifetime

Operating

Permit

No.

98010053

issued

by

IEPA

on

June 25,

2004.

The

Operating Permit

establishes

emissions

limitations

for

particulate

matter

(“PM/PM10”),

sulfur

dioxide

(“SO2”),

carbon

monoxide

(“CO”),

volatile

organic

material

(“VOM”),

and

nitrogen

oxides

(“NO~”).

Compliance with

the permitted emissions

limits

is achieved by full

and

complete- combustion of

the fuel

and

operation of a

high-efficiency fabric

filter baghouse

system

to

control

emissions

in

the dryer exhaust.

THIS

FILING SUBMITTED

ON

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---

Lafarge

has investigated how combustion

of off-specification

used oil

fuel

would

affect

air pollutant emissions

from the Grinding

Plant drying

system.

Based on representative

used oil

fuels that would be

supplied by

reputable, authorized used oil marketers,

Lafarge estimates there

will

be

no

increases

in

any

of the

permitted

emissions

other

than

a

slight

increase

in

the

emissions of sulfur dioxide

(SO2),

as compared to

current emissions

from combustion of natural

gas.

Utilization

of off-specification

used oil

fuel

in

the

slag

drying

system

would

need

to

be

reviewed

and

approved

by

the

IEPA air permitting

officials,

with

issuance of a

Construction

Permit

andlor

modifications

to

the

existing

Operating

Permit.

Any

questions

about

the

air

pollutant emissions

associated

with

combustion

of used oil

fuel

would

be

addressed

and

fully

answered through the air permitting review process.

h)

A statement

which

explains

how the petitioner

seeks

to justify, pursuant

to

the applicable level of justification, the proposed adjusted standard;

Response:

Section 720.132

of the Board’s regulations

(35

III. Adm.

Code

§720.132),

establishes the criteria to

be considered by the Board

in

making a “case-by-case” determination

that

certain enclosed devices using controlled

flame

combustion are boilers, even

though they do

not

otherwise

meet

the

definition of a

“boiler”

contained

in

Section

720.110.

The

criteria for

“case-by-case” boiler determination

track closely the regulatory definition of “boiler” set

forth at

35

Ill.

Admin.

Code

720.110.

Consequently,

when evaluating whether

a

particular combustion

source,

such as

the

slag

dryer

at the

Lafarge

Drying Plant,

should be

classified

as

a

boiler,

the

regulatory definition of“boiler” provides the determining physical characteristics.

Set forth below

is the regulatory

definition of a “boiler”

which identifies the key physical

characteristics of

a

boiler

to

be

considered

in

making

a

“case-by-case”

boiler

determination

under

35

III. Admin.

Code 720.132.

The 35

Ill. Admin.

Code 720.110 “boiler” definition states:

THIS FILING SUBMITTED

ON RECYCLED

PAPER

15

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“Boiler”

means

an

enclosed

device

using

controlled

flame

combustion and having the following characteristics:

Boiler physical characteristics.

The

unit

must

have

physical

provisions

for

recovering

and

exporting

thermal

energy

in

the

form of steam,

heated

fluids,

or

heated

gases;

and

the

unit’s

combustion

chamber

and

primary

energy recovery

sections

must

be

of integral

design.

To

be

of

integral

design,

the combustion

chamber

and

the

primary

energy

recovery

sections

(such as

waterwalls

and

superheaters)

must

be

physically

formed

into

one

manufactured

or

assembled

unit.

A

unit

in

which

the

combustion

chamber

and

the

primary

energy

recovery sections

are joined

only by ducts

or connections

carrying

flue

gas

is

not

integrally

designed;

however,

secondary

energy

recovery equipment

(such

as economizers or air preheaters)

need

not

be

physically

formed

into

the

same

unit

as

the

combustion

chamber

and

the primary energy recovery section.

The following

units

are not

precluded

from

being boilers

solely because they are

not

of integral

design:

process heaters (units

that

transfer energy

directly

to

a

process

stream)

and

fluidized bed

combustion

units;

and

While

in

operation,

the

unit

must

maintain

a

thermal

energy

recovery efficiency of at least 60 percent, calculated in terms ofthe

recovered energy compared with the thermal value ofthe fuel; and

The

unit

must

export

and

utilize

at

least

75

percent

of

the

recovered

energy,

calculated

on

an

aimual

basis.

In

this

calculation,

no

credit

may

be

given

for

recovered

heat

used

internally

in

the

same

unit.

(Examples

of

internal

use

arc

the

preheating of fuel or combustion

air,

and the driving of induced or

forced draft fans or feedwater pumps); or

-

Boiler

by

designation.

The

unit

is

one

that

the

Board

has

determined,

on

a

case-by-case

basis,

to

be

a

boiler,

after

considering the standards in Section 720.132.

The

35

Ill.

Admin.

Code

720.132(a) Criteria.

Set

forth

below

is

a

demonstration that

Petitioner’s slag dryer satisfies

each of the criteria specified at 35

Ill. Admin.

Code 720.132(a) to

be considered a boiler.

THIS

FILING SUBMITTED

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16

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Section

720.132(a)

The extent to which

the unit has provisionsfor recovering

and exporting

thermal

energy

in

the form

of steam,

heated fluids

or

heated

gases:

The process unit

is

a thermal

dryer

with

its

main objective being

to

recover the thermal

energy

in

the

fuel

being

burned

in

order

to

heat

the

slag

and

drive

off moisture.

The

dryer

functions

as

a direct-fired process heater,

in

which the

process material,

wet

blast furnace

slag,

and

additional

air are brought

into contact

with the

hot

combustion product

gases.

The thermal

energy released

by

the combustion

of the

fuel

is

transferred

to

the

wet

slag.

Heating the

slag

vaporizes a portion of the moisture that

is

in the pores of the material.

The heat is then exported

in

the

form of heated

slag,

gases

and

water

vapor.

The

slag,

hot

gases

and

water

vapor

are

discharged

from

the

dryer

through

a

cyclonic

separator,

where

the

slag

is

-removed

from

the

exhaust gas stream,

which

is

cleaned

by

a

high-efficiency

fabric

filter

baghousc

system

before

being

discharged

to

the

atmosphere.

The

dried

slag

captured

in

the

cyclone

separators

is

conveyed to

a mill where it is ground to the desired particle size.

The dryer

is

fully

enclosed

with

an

outer

shell of steel.

The burning

chamber

is

lined

with

a high temperature

resistant refractory material

and the transport shaft is

lined with

ceramic

tile.

This design is conducive to

recovering as much energy as possible from the fuel.

Section

720.132(b).

The

extent to

which

the combustion

chamber and energy recovery

equipment are ofintegral design;

The dryer

is

fully enclosed and of integral design.

The

combustion chamber and

vertical

shaft

were

assembled

to

be

one

piece of equipment.

The dryer

is an

inline

portion

of the slag

cement manufacturing process,

in which the slag is dried, ground and size-classified to produce a

salable

cement

product.

For a graphic depiction

of the

slag

dryer,

see

the engineering

drawing

attached hereto as Exhibit

C.

THIS FILING SUBMITTED ON RECYCLED PAPER

17

---

The regulatory definition of a “boiler” set

forth in

the Board’s regulations at

35

III.

Adm.

Code

720.110

includes

an

express

exemption

from

the

“integral

design”

element

for process

heaters

such

as

the

slag

dryer.

The

regulation

states,

“The following

units

are

not

precluded

from

being

boilers

solely

because

they

are

not

of integral design:

process

heaters

(units

that

transfer energy directly to a process stream) andfluidized bed combustion units.”

Because the

slag

dryer

is

a direct-fired

process heater

where

the thermal

energy of the

combustcd

fuel is

transferred to

the wet

slag being processed, the element of “integral design”

is

not

determinative in

this

proceeding.

However,

the

slag

dryer

is

fully enclosed and of integral

design

so

compliance

with

this

criterion

is

established

even

though

the

unit

is

subject

to

the

process heater exemption.

Section

720.132(c)

The

efficiency of energy

recovery,

calculated in

terms of

the recovered energy compared with the thermal value ofthe fuel;

For purposes of calculating the efficiency of energy recovery, a detailed

analysis

of the

South

Chicago

Drying

System

is

necessary.

The

South

Chicago

Drying

System

can

be

graphically depicted and summarized with the following process flow diagram:

Qin

Heal into system

from

DRYER

Qout

Heat out of system

Air,

slag, Natural gas, false

~

from Air, radiation, slag

air

Wcycle

“Qin”

=

heat into

the

system

“Qout”

=

Energy out of the system

“Wcycle”

=

net amount of energy transfer

by heat and work.

Systems undergoing the drying process

as described

above

deliver

a network

transfer of

energy

to

the surroundings.

This

is

called

a “power cycle”.

Thermal efficiency is

calculated

in

engineering thermodynamic reference materials as the following:

=

Wcycle/Qin

eq#1

THIS

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18

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An alternative form based on the balance ofthe system described above can be:

=

(Qin-Qout)/Qin eq#2

Equation

#2

translates

into:

Efficiency

=

Energy Absorbed (Qin-Qout)

divided by

(Heat into system)

The efficiency method

described above

is based on the principles of the First and Second

Laws of Thermodynamics, hence a method

uniformly used worldwide

for the design,

operation

and evaluation of heat systems.

(See

Fundamentals ofEngineering

Thermodynamics,

Michael

J.

Moran, Third

Edition,

1996,

pages

60-6 1;

Chemical and Process

Thermodynamics,

B.G.

Kyle,

Second Edition, 1992, page 63

A

heat

balance

has

been

calculated

for

the

Slag

Drying

System

to

provide

the

input

variables

for

the

thermal

efficiency

calculations.

All

values

and

parameters

used in

the heat

balance calculations

are

set

forth

in

the following

“Table

I.

Heat

balance

Calculations:

Total

Heat In”

and

“Table

2.

Heat Balance

Calculations:

Total Heat Out.”

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19

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Table

1.

Heat Balance Calculations:

Total Heat

In

Heat

Moisture

As measured

Kg!

(KcatlKg

Line

Feed

Definition

As

Measured (kg!hr)

calculation

(dry basis)

Feed

Kg_slag

T(c)

CP

(kcalfkgC)

Stag)

DF

Dilution Fan

62,116

61,681

61,681

0.843

22.0

0.2421

4.4892

2

CF

combustion Fan

10,800

10,724

10,724

0.147

24.0

0.2425

0.8531

3

FAD

Fresh Air Damper

17,717

17,593

17,593

0.240

27.0

0.2432

1.5789

4

Slag

Stag Feed

81,300

73,170

73,170

1.000

36.0

0.1779

6.4041

S

Stag_H20

Slag Water

8,130

8.130

0.111

36.0

0.4574

1.8296

6

DFH2O

Dilution Fan Air Water

435

435

0.006

24.5

0.4527

0.0659

7

CFH2O

Combustion

Fan Air Water

76

76

0.001

27.0

0.4537

0.0127

8

FAD_H20

FreshAirDamperAirWater

124

124

0.002

22.3

0.4518

0.0171

9

FuEL_H20

Fuel

Gas Water

42.47

42.47

0.001

25.0

0.4529

0.0066

10

Fuel Latent Heat

425

382

382

0.005

25.0

0.2500

0.0326

11

False Air

10,118

10.118

10,118

0.138

23.0

0.2423

0.7706

12

FUEL Combustion Heat

22,245

1,013

77.6085

13

Total Heat In

936688

Outlet

Outlet

Table

2.

Heat Balance Calculations:

Total

Heat Out

14

FatseAirinStackGas

10,118

Estimate

10

10,118

10,118

0.138

72.0

0.2536

2.5244

15

Stack Gas

91.058

90,420

90.420

1.236

72.0

0.2536

22.5604

16

Stack Gas_H20

Stack Gas

Water

637

7,437

7,437

0.102

72.0

0.4725

3.4582

17

Stag

Stagouttet

76,500

76,500

76,500

1.046

42.0

0.1791

7.8642

18

Stag H20

Stag water

1.700

1,700

1,700

0.023

42.0

0.4599

0.4487

Approximately 2.5

19

Radiation

of total heat out

2.2294

20

Heat of vaporization

6,800

0.093

539

50.0916

21

Heat

Out

89.1769

22

Other

heat contained

within the

system

4.4920

23

Total

Heat

Out

Q3.6~88

24

Recovery

Notes:

Slag feed is 85000 kg/hr @10

moisture.

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The following parameters were used to calculate the heat balance for the Slag Drying System:

Inlet Parameters

Heat inputfrom dilutionfan

(DF)

=

(Dry Dilution

Fan Airflow (kg/hour) /Dry Slag Feed Rate (Kg/hour))

*

Temperature ofAir stream

(°c)

*

Specific Heat capacity ofAir ~

stream

T

Heat inputfrom

combustionfan

(CF)

=

(Dry

combustion Fan Airflow (kg/hour) /Dry Slag Feed Rate

(Kg/hour))

*

Temperatureof-Airstream-

(°C)

*

Specific Heat capacity ofAir

@

stream T

Heat inputfrom

Fresh Air Damper (FAD)

=

(Dry

Fresh Air Damper Airflow (kg/hour) / Dry Slag Feed Rate (Kg/hour))

*

TemperatureofAir-

stream (°C)

*

Specific Heat capacity ofAir

t~

stream 7

Heat inputfrom

Slag stream

(Dry Slag Feed Rate

(kg/hour) /Dry Slag Feed Rate (Kg/hour))

*

Temperature Slag Feed before dryer (°C)

*

Specific Heat

capacity ofSlag ~

stream

T

**

The slag fred rate was used as the refrrencematerial (Kcal

/Kg

slag)

flhi~at

input from

water in slag

(Water massflow in slag

(kg/hour)

*

/Dry Slag FeedRate (Kg/hour))

*

Temperature water

in slag (“C)

*

Specific Heat capacity ofwater~

stream T

Heat inputfrom water in dilution fan

air stream

=

(Water

ci

ass flow in

dilution air stream from

relative humid

iiyflcg’/honr)-

*/Dry.Slag Feed--

Rate (Kg/hour))

*

Temperature of water in dilution air stream (‘C)

*

Specific

Heat

capacity ofwater @stream T

heat inputfrom

water in

combustionfan air stream

=

(Water massflow in combustion fan air stream front

retailre-*

unüdity(kg/hu-wrj-’VDty’’

Slag Feed Rate

(Kg/hour))

*

Temperature of water in cornbustion fan air stream (°C)

*

Specific Heat capacity of waterg’sirea,n

7

Heat inputfrom

waterin fresh air damper air stream

(Water massflow

infresh air damper air stream from

rekrtivri.amWity(kg’/lmu,-)--i

Dry Slag Feed Rate (Kg/hour))

*

Temperatureofwater in fresh air damper air stream (°~)

*

Specific Heat capaciiy~fwaiertT~-st’eatn-T

Heat inputfrom

water in Natural Gas stream

=

(Water massflow

in gasfrom

moisture provided by gas company

(At/hinafrtmiDryslag-&ed

Rate (Kg/hour))

*

Temperature of water in gas

streamfrom

gas company

(0(’)

t Spec~cHeat capacity of water ~

stream-

-T

Heat inputfrom

latent heat ofnaturalgas

(Dry naturalgasflow rate (kg/hour) IDry Slag Feed Rate

(Kg/h our)

)_*

Temperahire afnatural-gas-

stream (“C)

*

Specific Heat capacity ofnaturalgas ~

stream

T

Heat inputfrom false air

(Dry

false airAirflow

(kg/hour) /Dry Slag

FeedRate

(Kg/hour))

*

Temperature ofAir stream

(“C)

Spi~’c.fic’Heat

capacity ofAir

@

stream

T

***

False air is

the air as a

result ofin-leakage in the system. It is estimated to be about 18’oftlers&ck’s’uirji.ie”

rate

Heat inputfrom natural gas stream

=

naturalgasflow rate from gas meter (ft”3/hour~

*

Gasfuel valuefrom

gas

nit

conversion factor to Kcal/Dry Slag Feed Rate

(Kg/hour)

I

Total heatin=SUMLines(Itol2)

Outlet

Parameters

Heat outputfrom false air

(Dryfalse air Airflow (kg/hour)/Dry Slag Feed Rate

(Kg/hour))

*

Temperature of

Airstreanr(oC)*Spec,fic~Hvat

capacity ofAir@ stream T

***

False air is the

air

as

a

result ofin-leakage in the system. It is estimated to be about 10

ofthe

stack’s-airflow-

rate

Heat outputfrotn stack stream

(Dry stack stream Airflow (kg/hour) /Dry Slag Feed Rate (Kg/hour))

*

Temperature ofAir stream

(“C)

*

Specific

Heat

capacity ofAir~

stream T

Heat outputfrom

water in stack air stream

=

(Water massflow

in

stack air streamfront relative humidity (kg/hour) ..t/DrySlag FeettRaie

(Kg/hour))

*

Temperature of water in

stack air stream

(ci

*

Specific

Heat capacity of water ~

stream

T

Heat outputfrom

Slag stream

=

(Slag massflow rate after dryer (kg/hour) /Dry Slag Feed Rate

(Kg/hour))

*

Temperature Slag after dryer (“C)

*

Specific

Heat

capacity ofSlag ~

stream

T

Heat outputfrom

water

in

slag

stream

after dryer

(Water massflow

in slag steam (kg/hour)

/Dry Slag Feed Ratt’(Kg/hour))tTenrperaturr

water in slag (“C)

*

Specific Heat capacity ofwater ~

stream

T

I

Heat

outputfrom

heat loss thru the system

walls

=

Total heat out (SUM

lines 14

to

18 and line 20)

*

0.025

I

THIS

FILING SUBMITTED ON RECYCLED

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Heat output releasedfrom

the vaporization ofwater

=

Water massflow rate (kg/hr) /Dry Slag Feed Rate (Kg/hom**~inr.rflsfvapurizaiion~~of~

water

I

Heat out

=

(SUM Lines (14 to

18)

and Line 20) /0.975 (stack factor)

I

I

Other heat contained within the system

=

Line 13-

Line

21

**

This heat includes the radiation heat loss

I

Total heat Out=5UM Lines (21

to 22)

I

Other Definitions

•

CP

=

Specific

Heat Capacity. At

a

given temperature, this

is the heat input expected

from each of the components named above.

•

As measure sample:

On actual conditions,

without moisture adjustments

•

Moisture calculation:

In the case of the

air, the relative humidity

and temperatureis

used along with a Psychometric chart to determine the Kg ofwater/Kg or air ratios.

•

As measured (Dry basis): Stream ofwater or material with the moisture removed

•

Kg/Kg

slag

:

When performing heat balances

it

is

important

to

select

a

reference

-

variable. In this case, we selected the

slag feed

as a reference variable.

•

T:

The actual temperature of the material or gas stream.

•

Heat: The heat consumption

can be

obtained by

multiplying the Kg/Kg_slag

times

the temperature times the CP of the individual values.

False Air Assumption.

Within the cement industry, the accepted industry-wide standard

average

false

air

in

newer

drying

systems

is

estimated

to

be

1 0.

This

number takes

into

account

devices

such

as

expansion joints,

inspection

doors/ports,

normal

equipment

wear

and

any other in-leakage inherent with the system.

The assumption

is used by reputable design

firms

and can be verified by any of the well-known equipment manufacturing

firm.

Petitioner has verified

the wide-spread

use of the

false

air assumption

standard through

recent consultation with design engineers

from EL.

Smidth Group,

an international

engineering,

manufacturing

and

design

firm

that

specializes

in

the

cement

and

mineral

industries.

The

principal engineering contact at F.

L.

Smidth Group was:

Mr. Peter Paone, Process Engineer

-

Process Design

FL.

Smidth Group

2040 Avenue C- Bethlehem,

Pennsylvania 18017-2188

(610) 264 6496

THIS FILING SUBMITTED ON RECYCLED

PAPER

-

22

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Shell

Radiation Assumption.

Within

the cement

industry,

the

accepted

industry-wide

standard

for

average

for

shell

radiation

from

newer

dryers

is

estimated

to

be

at

2.5.

This

estimate refers

to the shell losses

in the system.

Petitioner verified

wide-spread

use

of the

shall

radiation

assumption

standard

through

recent consultation with

design

engineers from F.L.

Smidth Group,

an international

engineering,

manufacturing

and

design

firm

that

specializes

in

the

cement

and

mineral

industries.

The

principal engineering contact at

F. L.

Smidth Group was:

Mr. Peter Paone,

Process Engineer

-

Process Design

F.L.

Smidth Group

2040 Avenue

C- Bethlehem, Pennsylvania 18017-2188

(610) 264 6496

Thermal Energy Recovery Efficiency Calculation,

The definition of the term “boiler”

at 35

III. Admin.

Code

720.110

specifies

a standard

for thermal

energy recoveryeffzciency for a

boiler.

The relevant

portion of the definition (which

is

identical to

the

federal

definition)states:

“While

in

operation,

the

unit

must

maintain

a thermal

energy recovery efficiency of at

least

60

percent, calculated

in terms ofthe recovered energy compared with the thermal value ofthe fuel”

Calculations to demonstrate compliance with the 60

thermal energy recovery efficiency

standard ofSection 721.110 were performed

as described below:

•

Thermal

value

of

the

fuel

from

line#

12

“Table

1.

Heat

Balance

Calculations: Total Heat hi”

=

77.6085 Kcal/Kg_Slag

•

Recovered

Energy

=

Energy used by

the

system.

This value

is calculated

as follows:

o

The

total

value

of energy

used

(based

on

a one

year

production

period)

is calculated by subtracting the total energy consumed

in

a

one

year period minus

the pre-heat

portion of the system

(1.5

of

the

total

energy

used).

The

total

energy

was

calculated

by

multiplying the known energy consumption

from the heat balance

(93.6688

Kcal/Kg_Slag)

with

the

total

Kg

of slag

used

in

2002

THIS FILING SUBMITTED

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23

---

(111,991,000). To this number,

subtract the

1.5

of energy used in

the pre-heating process of the furnace.

o

In order to

calculate the recovered

energy (energy absorbed)

from

the

system,

to

the

total

heat

value

calculated

above,

we

will

subtract all heats that

leave the system (False air in stack gas, stack

gas, stack gas H2O, and Radiation)

o

The value obtained from the step

above is 61.69 Kcal/Kg slag

•

Finding the thermal

energy recovery as per 40

CFR 260.lO(1)(iii):

The last

step

is

to

divide

the

recovered

energy (energy

absorbed)

by

the Thermal

value ofthe fuel:

61.69/77.61

*

100

=

79.23

As

demonstrated

by

the

foregoing

calculations

(and

supported

by

the

heat

balance

calculations), the

Slag Drying System

achieves

a

thermal

energy recovery efficiency of 79.23.

The

thermal

energy

recovery

efficiency

clearly

exceeds

the

Section

720.110

criteria

of

a

minimum of 60

recovery.

Section

720.132(d)

The extent to which exported energy is utilized;

The definition

of the term

“boiler”

at

35

Ill.

Admin.

Code

720.110

specifies

a

standard

for utilization ofthe recovered thermal energy for a boiler.

The relevant portion ofthe definition

(which

is

identical

to

the federal definition)

states:

“The unit must export

and

utilize at least

75

percent ofthe recovered energy,

calculated on an annual basis.

In this

calculation, no credit may

be

given for recovered

heat used internally in the

same

unit.

(Examples of internal use are

the

preheating of fuel or combustion air,

and the driving of induced or forced draftThnsorfeedwater

pumps.)”

Internal

use of the recovered heat only occurs during preheating

every time

the system

is

started.

The preheating hours account

for 1.5

of the

total

operating hours

in a year.

With

the

loss of

1.5

percent of the

fuel heat input due

to preheating the dryer, the annual energy recovery

is estimated to be

79.23.

THIS

FILING SUBMITTED ON RECYCLED PAPER

24

---

Total Kcal

used without

heat of drying

Total Kg of

slag from

2002

Kcal!hg slag

Used

in Pre-

Heat

Kcal/kg slag

used in pre-

heat

Recovery

after

subtracting

preheat used

111,991,000

93.67

1.50

157,350,997

10,332,715,500

92.26

79.23

Section

720.132(e)

The

extent

to

which

the

device

is

in

common

and

customary

use

as

a

“boiler” functioning primarily

to produce

steam,

heated

fluids or heated gases.

Direct-fired

dryers and process heaters are

widely used in

the production of cement

and

other non-metallic mineral

products.

Cement kilns

and the associated process heaters and dryers

used

in the

production

of Portland

cement

utilize

a

tremendous amount

of fuel

to

dry the

raw

materials

before

being

introduced

into

the

pyroprocessing

steps

and

to

produce

the

extreme

temperatures

and

long

residence

times

needed

to

calcine limestone

rock,

shale, sand and

other

minerals to produce clinker and ultimately Portland cement.

It is a matter of common knowledge

that cement

kilns

utilize a variety of fuel types

including coal, petroleum coke,

specification

and

off-specification

used oil,

used vehicle tires and hazardous wastes in

a safe and environmentally

sound manner under

express authorization

and

approvals

from

state

and

federal

environmental

regulatory agencies.

Lafarge

operates

a

large

Portland

cement

manufacturing

plant

located

near

Alpena,

Michigan.

The Alpena Plant is

Lafarge’s largest Portland cement-producing

facility and reputed

to

be

the

largest

cement manufacturing facility in

North

America.

The

plant

consists

of five

cement

kilns

that

produce

approximately

2.7

million

tons

of cement

annually.

At

Alpcna,

cement

is

made

from

high quality

limestone, silica,

alumina and

iron.

The limestone

is crushed

into

nuggets, which are transported by conveyor to

the plant.

There, the limestone and other raw

materials are dried in

the raw feed dryers and

fed into

raw grinding mills which grind

and blend

THIS FILING SUBMITTED ON RECYCLED PAPER

25

---

the raw feed mixture into a fine powdered kiln

feed.

This “raw grind” kiln

feed is conveyed into

rotary cement kilns

where

it is

heated to

over 2700°Fahrenheit becoming

grayish-black nuggets

called

clinker.

When the clinker

emerges from

the

kiln,

it

is

cooled,

mixed

with

gypsum,

and

ground into the fine powder known as Portland cement.

Lafarge

is

committed

to

sustainable

development

and

the Alpena

Plant has served

as

a

showcase

for several environmentally

beneficial

recycling projects.

For example,

the Alpena

Plant is one ofthe few North American cement plants to use waste heat from the cement kilns to

generate

steam

which

drives

turbines

that

produce

electricity

to

power

the

plant’s

internal

electrical system.

Additionally,

through

a program known

as

“industrial

ecology”

Lafarge

has

implemented

projects

to

utilize

the

waste

byproducts of two

other manufacturing processes

as

raw materials used

in

the manufacture of Alpena

cement.

The projects result

in

a

reduction

in

the

total

waste

stream

from

the

plant

while maintaining

the high-quality cement

for which

the

plant

is known.

Another

recycling

opportunity

implemented

by

Lafarge

at

the

Alpena

Plant

was

the

utilization of off-specification used oil

as

fuel

in

the

raw

grind

dryers.

The

State

of Michigan

administers

a

used

oil regulatory program

that

is

virtually

identical

to

the

federal

and

Illinois

used

oil

management

programs.

Consequently,

Lafarge

consulted

with

the

Michigan

Department of Environmental

Quality (“DEQ”)

to

secure approval to

combust off-specification

used oil

fuel

in

the raw grind dryers.

Under the DEQ-administered used oil/RCRA regulations,

specifically Michigan DEQ rules R299.9814

and 299.9101,

Lafarge was required to

demonstrate

that the Alpena raw grind dryers satisfied the physical boiler criteria established by USEPA (and

adopted

by

both

Illinois

and

Michigan),

to

demonstrate

use

of used

oil

fuel

in

the

dryer

constituted a

legitimate

use for energy recovery.

As

noted above, those

physical criteria are

set

THIS

FILING SUBMITTED ON RECYCLED

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26

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forth

in

the definition

of “boiler”

and

rely

upon

the

concepts of integral

design,

combustion

efficiency and energy recovery.

The

Michigan

DEQ

reviewed

the

design,

combustion

efficiency

and

energy

recovery

attributes of the raw grind

dryers

and

determined that

the “boiler”

criteria were

established

for

these process heaters.

Because the DEQ officials determined that the physical criteria were met,

Lafarge was

given approval to proceed with the combustion of off-specification used oil

fuel

in

the raw grind dryers.

The Michigan DEQ approved the use of used oil

fuel by a detailed analysis

of the dryer information

provided by Lafarge, and

did not

require Lafarge

to

seek

a variance or

adjusted standard through

the “boiler by

designation”

process.

A copy of the Michigan DEQ’s

April 2, 2004 determination

is attached hereto as Exhibit D.

The

raw

slag

dryer

utilized

at

Lafarge’s Grinding

Plant

is

the same type

of combustion

source

as

the raw

grind

dryers at

Lafarge’s

Alpena cement

plant

that

were

authorized

by

the

Michigan

DEQ

to

combust

off-specification

used

oil.

With

respect

to

the

physical

criteria

established

in

the definition of “boiler,” specifically

integral

design,

combustion

efficiency and

energy

recovery, the

South

Chicago

slag

dryer

and

the

Alpena

raw

grind

dryers

arc

virtually

identical

combustion

sources.

The Michigan DEQ’s

determination that

the Alpena dryers

meet

the boiler physical characteristics and therefore

are authorized to

combust off-specification

used

oil

fuel

is

an

excellent

example that such dryers,

including the

slag dryer

at the Grinding

Plant,

are

combustion

sources

“in

common

and customary

use

as

a

“boiler “functioning primarily

to

produce

steam,

heated fluids

or

heated

gases.”

Moreover,

it

demonstrates

that

the Board’s

approval

to

grant the

adjusted standard

relief requested

in

this

proceeding

would

be

consistent

with the findings ofother environmental regulatory authorities.

THIS FILING SUBMITTED ON RECYCLED

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27

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Section

720.132W

Otherrelevantfactors.

The

federal

used

oil/RCRA

regulations

at

40

CFR

260.33

specify

the

procedures

for

making a case-by-case

determination

that a particular combustion

device, such as the

slag dryer

operated

at Lafarge’s Grinding

Plant,

should

be

considered

a

“boiler”

for purposes of utilizing

off-specification

used

oil

fuels.

The

federal

regulations

define

the

term

“boiler”

(40

CFR

260.10);

allow

the

combustion of off-specification

used

oil

in

boilers (40

CFR

279.61);

and

specify the criteria to

determine which

combustion

devices can be

considered

equivalent

to

a

boiler and

allowed to

combust off-specification

used oil

(40 CFR 260.32.)

As

noted

above, the

Pollution

Control

Board

has

completed

“identical—in-substance”

rulcmakings

to

adopt

these

federal

RCRA

regulations

as

the

Illinois

regulations

applicable

to

the

combustion

of off-

specification used oil in boilers and similar combustion

devices.

In promulgating

the

referenced

RCRA

regulations,

USEPA

has

explained

the

scope of

the

regulations

and

discussed

application

of

the

rules

to

specific

fact

patterns.

Those

explanations

and

interpretations

are

set

forth

in

the

preamble discussions

that

accompany

the

rulemakings published

in the Federal Register.

In its

legislative capacity, the Board

has relied

on

the USEPA preamble

discussion to

support

its

own rulemaking

efforts

and at

times,

has actually

adopted USEPA guidance as mandatory and not advisory.

(See the Board’s recent rulemaking in

R03-18

and

its

determination

in

that

rulemaking

that

USEPA’s

RCRA guidance

for

delisting

hazardous wastes was mandatory and not solely advisory.)

Consequently,

the justifications

set

forth

by

USEPA

to

explain

and

interpret the criteria

for making “case-by-case” boiler determinations

can

and

should be relied

upon

by the Board

in

reviewing Lafarge’s request for adjusted standard relief.

hi

its November

29,

1985

rulemaking

for the used oil management

standards

(50

Federal

Register

49164), USEPA

explained

why it

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28

---

was

allowing

combustion

of

off-specification

of

used

oil

in

industrial

boilers

but

not

in

.nonindustrial

boilers

(e.g.,

located

in

apartment

and

office buildings,

schools,

hospitals.)”

USEPA

focused

on

the

risks

of

burning

off-specification

used

oil

in

such

“nonindustrial”

combustion sources due

to

proximity to

highly populated

areas.

According to

USEPA, due

to

a

greater

number of “nonindustrial” boilers

and

the

location of such sources

in

populated

areas,

these

combustion

sources

would

potentially

expose

many

more

individuals

to

hazardous

emissions

from buming off-specification used oil fuels.

Combustion of off-specification of used oil in industrial (and utility) boilers was believed

by

USEPA

as

presenting

a

much

lower

risk

because

such

boilers

are

not

located

in

close

proximity

to

populated

areas

and

“.

.

large

boilers

or

industrial

furnaces

may be

operated

by

trained

operators

and

equipped with combustion controls

sophisticated enough

to

maintain peak

combustion

efficiency

when buming

fuels

the

unit

is

not

designed

to

bum.

Further,

many

industrial

furnaces and

some

boilers

are

equipped with

particulate control

equipment

that

may

adequately control

emissions

from

metal-bearing

waste

fuels.’

(50

Federal Register

49164

at

49182),

As

evidenced by USEPA’s preamble discussion, the agency considered four basic criteria

in

permitting

combustion

of

off-specification

used

oil

in

industrial

but

not

“nonindustrial”

combustion

sources:

(1) location

away

from

populated

areas; (2) operation by trained

operators;

(3)

maintaining

good

combustion

efficiency

to

destroy

organics;

and

(4)

pollution

control

equipment

to

control particulate

matter

emissions

(including

metal

particulate

emissions.)

In

addition,

USEPA

has

defined

certain physical

characteristics

of boilers

to

distinguish boilers

used

to

reclaim thermal

energy

from used

oil or waste

from other devices designed primarily to

dispose ofwastes without legitimate thermal recovery.

THIS

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As

set

forth

above, the design,

combustion

efficiency

and

energy recovery attributes

of

the

slag

dryer

satisfy

the

physical

boiler criteria

established

by

USEPA

and

the

Board.

In

addition,

the

non-physical

criteria

that

justify

combustion

in

industrial

boilers

versus

non-

industrial boilers or other combustion sources are satisfied

in this

situation.

First, the Drying Plant

is

located in

a heavily

industrialized area of Cook

County

that

is

remote

from

any

residential

development.

The

Grinding

Plant

and

the

drying

system,

in

particular,

is operated by

trained personnel.

The

slag dryer

is equipped with of state-of-the-art,

efficient

combustors

and

operating

controls

to

maximize

complete

combustion

of

the

fuels.

Good

combustion

controls

are

designed

into the system

to

maximize

the extraction

of all

Btu

value from

the

fuels

combusted.

Since

fuel

costs

are

critical

to

the

overall

profitability of the

Grinding Plant,

maximizing

fuel efficiency

is always a top priority,

even if Lafarge

is allowed to

use lower cost off-specification used oil fuels.

Finally,

the

slag

dryer

is

equipped with

a

modem,

high-efficiency fabric

filter baghouse

particulate

control

system

to

minimize

the

release

of

PM

and

other

air

contaminants

in

the

exhaust

gases.

The

combined

capture

and

removal

efficiency of

these

baghouse

systems

typically

achieve

greater than 99.9

overall

control efficiency.

Again,

maximizing

capture

of

the dried slag

is

another component of plant

productivity

and profitability

that

is

critical

to

the

overall financial health and long-term viability of the facility.

i)

A statement with supporting reasons that the Board

may grant the proposed

adjusted

standard

consistent

with

federal

law.

The

petitioner

must

also

inform the

Board of

all

procedural

requirements

applicable to

the Board’s

decision

on

the petitioner that

are imposed

by

federal

law

and

not required

by this Subpart.

Relevant regulatory and statutory authorities

must be cited;

Response:

The

Board

may grant the

adjusted standard relief requested

by

Lafarge

consistent with federal

law.

Section

7.2

and 22.4(a) of the Illinois Environmental Protection

Act

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415

ILCS

5/7.2

and

22.4(a)

require

the Pollution

Control

Board

to

adopt regulations

that

are

“identical in

substance” to the hazardous waste regulations adopted by the

USEPA.

The USEPA

hazardous

waste

regulations

implement

Subtitle

C

of the

federal

Resource

Conservation

and

Recovery Act of

1976 RCRA

Subtitle C, 42 U.S.C. 6921,

et seq..

The federal

RCRA

regulations

contain

identical

provisions

for

making

a

determination

that

a particular combustion device,

such as the

slag dryer

operated at Lafarge’s Grinding Plant,

should

be

considered a “boiler”

for purposes of utilizing

off-specification

used oil

fuels.

That

federal

regulation

is

set

forth

at

40

CFR

260.32

“Variance

to

be

class?fied

as

a

boiler.”

Although the Illinois

analog uses the term “adjusted standard” rather than “variance” to

describe

the

agency

“case-by-case”

boiler

determination,

the

standards,

criteria

and

procedures

are

identical.

In short,

the Illinois hazardous waste management

regulations are “identical

in substance”

to

the federal

RCRA regulations

and both

state

and

federal

regulations providc

a mechanism

to

determine

“.

.

.on

a

case-by-case

basis

that

certain

enclosed

devices

using

controlled

flame

combustion

are

boilers,

even

though

they

do

not

otherwise

meet

the

definition

of

boiler

contained

in

Section

260.10.”

The

federal

regulation

is

set

forth

at

40

CFR

260.32

and

the

“identical

in substance” Illinois regulation is set

forth at 35 IAC

720.132.

Approval by the Board

of

Lafarge’s

Petition

would

be

consistent

with

federal

law

and

the

implementing

RCRA

regulations.

j)

A

statement

requesting

or

waiving

a

hearing

on

the

petition

(pursuant

to

Section

104.422(a)(4)

of this

Part

a hearing will be

held

on

all

petitions

for

adjusted standards

filed

pursuant to 35 Ill.

Adm.

Code 212.126 (CAA));

Response:

Petitioner waives

its right to

a hearing on the Petition.

Ii)

The petition must cite to supporting documents or legal authorities whenever

they are

used as

a

basis

for

the

petitioner’s

proof.

Relevant

THIS

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31

---

documents

and

legal

authorities

other

than

Board’s

decisions,

regulations, statutes and

reported cases must be appended to the petition;

Response:

Relevant portions of all

documents

or

other information

sources

that have

been used

to

support

this

Petition

are attached or have been cited

in

the

foregoing

text of the

Petition.

1)

Any

additional

information

which

may

be

required

in

the

regulation

of

general applicability.

Response:

The

regulation

of general

applicability

does

not

specify

any

additional

information requirements that must be

addressed in this Petition.

However,

Lafarge requests that

the

Board

consider

the

determinations

made

by

other

regulatory

authorities

to

allow

the

combustion

of

off-specification used

oil

in

controlled

flame

combustion

devices

such as

raw

material

dryers

and

process heaters.

As

noted

previously, the

Michigan DEQ has

determined

that the raw grind

dryer

at Lafarge’s Alpena cement

plant meets the physical characteristics of a

“boiler”

that

are specified

in

the used oil/RCRA regulations

and

approved Lafarge’s request

to

utilize

off-specification used oil

as

fuel

in

the

dryer.

The

slag

dryer

in

use at Lafarge’s

South

Chicago

Slag

Grinding

Plant

is

virtually

identical

to

the

raw

grind

dryer

approved

by

the

Michigan DEQ.

The technical

and

regulatory

analysis

conducted

by

Michigan DEQ officials

should be

considered by

the Board

in

evaluating Lafarge’s request

to

utilize

used oil

fuel

in

the

slag dryer at its South Chicago Slag Grinding Plant.

WHEREFORE,

Petitioner requests

a

determination

from

the

Ililinois

Pollution

Control

Board that the slag dryer operated at the South Chicago Slag Grinding

Plant satisfies the criteria

THIS

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32

---

set

forth

in

Section

720.132;

is

a

“Boiler

by

designation”

within

the meaning

of 35

Ill.

Adm.

Code

720.110;

and may utilize off-specification used oil for energy recovery, in

compliance with

Section 739.161

ofthe Board’s regulations

(35

Ill. Adm.

Code 739.161).

LAFARGE MIDWEST, INC., Petitioner

By:

__________

Jo

.

F

letto,

t

rney for

Petitioner

Jon S.

Faletto

Howard

& Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211

Fulton

Street

Peoria, IL

61602

(309) 672-1483

(309) 672-1568 FAX

jsf~H2law.com

THIS

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---

LIST OF EXHIBITS

Exhibit A:

Aerial Photograph of Grinding Plant

(Source:

Google Earth®

Database)

Exhibit

B:

Map Depicting Grinding Plant and South

Lake Calumet Area

(Source: USEPA

Enviromapper

Database)

Exhibit

C:

Engineering Drawing ofSlag Dryer

Exhibit D:

Michigan

DEQ

Correspondence

(April

2,

2004)

-

Approval

for

Specification Used Oil Fuel in Alpena

Raw Grind Dryer

Iaf\jcn\O:\J-L\Lafarge\South

Chieago\Petition\FinalPetüion9-7-05.doc

THIS

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34

---

Exhibit

A

---

t1

7

I

SAP

——.————...,

I

-

________________________

r

L

-c--a-

I.

fla~j

—

1e~J~

---

Exhibit

B

---

Urtf~S

___

0

~rn

En*vi~,SPida.&.iAg~icy

Hazardous

waste

Cities

Railroads

Highways

ir,terstates

Other

Streets

Major

rQads

by

Block

C

=

—

Pop.

Den.ity

o_

1~

1

-

2X0

-

~.

1~

~.

Superlund

0

.

.

.

.

Toxic

releases

Water

dlschargers

Air

emissions

gS#

‘V

130th

Chicago,

IL

-

Calumet

‘.7

4!4ØØ

x

300

11600

x

450

Submit_

rcanc~1

Local

sfroetz

Water

bodies

Streams

C

800

x

600

~

Locator

Map

---

Exhibit

C

---

Lafarge

Midwest,

Inc.

—

South

Chicago

Slag

Dryer

---

Exhibit

D

---

S~rATEor

MICIIICAN

DEPARTMENT

OF

UJVIRONMENTAL QUALITY

LANSINO

DE@

JENNIFER hi. ORANHOLM

STEVEN

E.

CHESTER

GOVS~,C#

DiRECTOR

April 2, 2004

Mr. Sob Budnik

Environmental

Manager

Lafarge North America

Great Lakes Region

—

Alpena Plant

P.O.

Box

396

Alpena, Michigan 49707

Dear Mr.

Budnik:

Thank you for your February 20, 2004,

letter to Mr. 0. Vinson Hellwig,

Chief,

Air

Quality

Division (AQD), Department of Environmental Quality (DEQ),

regarding the proposed

use of off-specification used

oil fuel in the raw grind dryer.

As your letter requests a

determination that the dryer Is an industrial

boiler

pursuant

to the administrative

rules

promulgated under Part

111, Hazardous Waste Management, of the Natural

Resources

and Environmental

Protection

Act, 1994 PA 451,

as amended

(NREPA), the DEQ,

Waste and Hazardous Materials Division (WHMD),

Is responding directly to

your

request.

As you know, off-specification

used

oil

fuel can be burned for energy recovery only

in

certain

types

of units

defined

In

R 299.9814(3)(a).

One ofthe specified

units

is

an

industrial

boiler that is

located

on the site of a facifity that Is engaged

in

a manufacturing

process where substances are transformed Into new products, including component

parts of products, by mechanical or chemical processes.

An

industrial boiler must

also

be a boiler as defined

in

R 299.9101 (w).

According to your letter, the

raw grind dryer functions as a direct-fired

process heater to

produce heated gases that act directly upon the raw materials fed to the unitto drive off

moisture.

The dryer is fully enclosed

within an outer shell of steel,

and the burning

chamber Is lined with refractory material and ceramic tile to recover the energy of the

fuel.

Based upon this explanation, the WHMD

agrees that the unit has physical

provisions for recovering and exporting thermal energy in the form of heated gases and

satisfies this requirement for classification as

a

boiler.

In order to be considered

a boiler, the combustion chamber and primary energy

recovery section of the unit shall be of integral design.

However,

process heaters are

not required to meet the Integral design

criteria for classificatIon

as a boiler.

The AQD

district staff agrees that the raw grind dryer is a process heater and, therefore,

is not

required to meet this design

requirement for classification

as a boiler.

There

Is also an efficiency

requirement for classification

as a boiler.

The information

provided in your letter indicates that the raw grind dryer satisfies the efficiency criteria

for both energy recovery and exportation of recovered energy.

CONSTETUTION HALL

525

WCST

ALLEGAN

STREET

•

P.O.

BOX 30241

•

LAtC4NG.

MICHIGAN 48909-7741

www,mtcfllgcm.gow

.

(S17)

335-2690

---

Mr.

Bob Budnik

2

April 2, 2004

Based

on this analysis, the WHMD

concurs that the raw grind dryer Is a boiler and,

specifically, an industrial

boiler for purposes of implementing the used oil management

standards of Part 111.

Be

aware

that the use

of

off-specification

used

oil fuel may impact any designations

held by the company under Part

115,

Solid Waste Management, of the NREPA,

as a

change in the materials and processes

used may affect waste generation~Lafarge

must take the actions necessary to maintain the validity of these designations.

If you have any questions regarding this letter,

please contact Mr. Jack Schinderle,

Hazardous Waste and Radiological Protection Section., WHMD, at 517-373-6410.

cc:

Mr. Bob Cooper, Lafarge North America

Mr. Brian Gaslorowski, Lafarge Worth America

Mr.

0. Vinson

Heilwig,

DEQ

Mr.

Phil

Roycraft, DEQ

Mr.

Duane Roskoskey,

DEQ

Mr.

Jack Schinderle,

DEG

Mr.

Mark Stephens,

DEQ

rge vv. ~gJchmann,

Chief

Waste and Hazardous Materials Division

517-373-9523