ILLINOIS POLLUTION CONTROL BOARD
November 29, 1979
CATERPILLAR TRACTOR
CO.,
)
Petitioner,
v.
)
PCB 79—188
Consolidated
ENVIRONMENTAL PROTECTION AGENCY,
Respondent.
RICHARD
J.
KISSEL AND ROY M. HARSCH, MARTIN, CRAIG, CHESTER
AND SONNENSCHEIN, AND KENNETH
F.
VANDER LEEST APPEARED ON
BEHALF OF PETITIONER.
NANCY
J. BENNETT AND WILLIAM
E.
BLAKNEY, ASSISTANT ATTORNEYS
GENERAL, AND STEPHEN B. CHERRY, APPEARED ON BEHALF OF RESPON-
DENT.
OPINION AND ORDER OF THE BOARD
(by Mr. Goodman):
On September
5
1979 Caterpillar Tractor Co.
(Caterpillar)
filed four Petitions for Variance for four different facili-
ties owned and operated by Caterillar.
The four petitions
were docketed as follows:
PCB 79—188,
East Peoria Plant;
PCB 79—189,
Joliet Plant; PCB 79—190, Mapleton Plant; and
PCB 79—191, Mossville Plant.
Pursuant to Caterpillar’s uncon-
tested Motion for Consolidation filed October 17,
1979,
the
Board on November 1, 1979 consolidated all four proceedings
under the designation PCB 79—188,
Consolidated.
Hearing was
held on the consolidated matter on November 1,
1979.
The
Board has received no public comment concerning these petitions.
Caterpillar’s petitions
seek variance from Rule 203(g) (1)
for particulate emissions
from seventeen industrial boilers
equipped with flue gas desulfurization systems
(FGD)
at Cater-
pillar’s East Peoria,
Joliet, Mapieton
and Mossville plants.
Caterpillar requests these variances while the Board is pro-
ceeding with Caterptilar’s regulatory petition docketed R79-11
which
seeks the adoption of
a particulate emission limitation
of
0 25 lbs./million Btu for coal—fired industrial boilers
equipped with flue gas desulfurization
systems.
EAST PEORIA PLANT
(PCB 79-188)
Caterpillar’s facility at East Peoria manufactures approx—
36—19 1
—2—
imately 400,000 tons of track-type equipment,
including tractors,
loaders, pipelayers and power transmission equipment and com-
ponents.
Approximately 16,000 people are employed at the East
Peoria plant and an adjacent Caterpillar data processing facil-
ity.
The plant is located within the Peoria Major Metropolitan
Area
as defined in Rule 201 of Chapter
2,
the Board’s Air Pol-
lution Control Regulations.
The facility presently contains
four coal—fired spreader stoker industrial boilers available
for operation, including two which are “existing” boilers and
two that are considered new boilers within the meaning of the
Board’s regulations.
All the boilers are equipped with multi-
clone dry particulate dust collectors which are used to collect
particulate matter from combustion products of
the approximate-
ly 13,700 tons of coal burned each month during the heating
season.
The coal burned is Illinois coal and has a heating
value
of approximately 10,500 Btu and an ash content of 10.
In the early 1970’s,
Caterpillar determined that,
if it
was
to continue to use Illinois coal,
it would be necessary
to install FGD systems on their boilers.
After certain devel-
opmental work, Caterpillar chose the regenerative double alkali
system as the method to remove both sulfur dioxide and partic-
ulate matter from the boiler emissions.
Caterpillar alleges
that this type of FGD was and is still
an incompletely devel-
oped,
innovative technology which results
in substantial
technical difficulties
in its construction and operation.
Caterpillar was assured by their contractor that an FGD sys-
tem could be designed that would comply with particulate
requirements.
After a considerable amount of development
work including redesigning of certain equipment, Caterpillar
is unable to operate the existing boilers
at full capacity
within the particulate requirements of the Board’s regulations.
Caterpillar and its consultants are presently investigating
methods by which the existing equipment might be upgraded.
In addition
Caterpillar
is researching a number of problems
with respect
to the interaction of a spreader stoker boiler
installation with an FGD system.
Caterpillar alleges that it
is unaware of any FGD system which will reliably achieve a
particulate emission rate of
less than 0.1556 ibs./million
Btu at rated boiler capacity when retrofitted on existing
installations
or at
a rate
of
less than
0 10
lbs./million Btu
at rated boiler capacity when installed on new boilers,
the
limits specified in the Board’s
rules.
Caterpillar has spent
approximately $5.5 million on the FGD installation at the
plant.
FGD operational costs are approximately $10/ton of
coal burned.
Caterpillar alleges that it is not causing a violation of
either the primary or secondary ambient air quality standards
by operating the four boilers and states that it would be an
arbitrary and unreasonable hardship to deny the requested
variance.
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In its Recommendation the Agency notes that Caterpillar
was the first corporation in Illinois and one of the first
corporations
in the nation to install an FGD system.
At the
time
it was installed,
the FGD system was considered to be
the best control
technology available.
According to an
ambient air quality maintenance area
(AQMA) study for the
Peoria area published
in 1978, the Agency observes, such area
is non—attainment
for particulate emissions.
Based upon a
summary of
the results of
a dispersion modeling analysis
which Caterpillar conducted for its East Peoria facility, the
Agency
states that there is
no significant difference between
the contribution from the facility under existing Rule 2O3(g)
and that which the facility would contribute
at the level
requested by Caterpillar,
0.25 lbs /million Btu.
The Agency
proposes that the requested variance be granted in this case
under certain conditions.
JOLIET PLANT
(PCB 79—189)
Caterpillar’s facility in Joliet manufactures about
170,000 tons of product annually,
which product includes
scrapers,
bulldozers,
rippers
and hydraulic and hydrostatic
controls and components.
The plant employs approximately
7,000 people and
is located within Joliet Township
in Will
County, which county is within the Chicago Major Metropolitan
Area as defined
in Rule 201 of Chapter
2 of the Board’s regula-
tions.
Caterpillar has spent approximately $4.2 million on
the FGD installation at the plant.
The
facts concerning the
East Peoria plant,
supra,
are applicable
to the Joliet plant
and will not be repeated.
In its Recommendation,
the Agency states that the Joliet
facility is located in a non-attainment area for particulate
matter.
Other than comments on particular individual charac-
teristics of the facility,
the Agency recommendation
for the
Joliet plant is the same
as that for East Peoria,
i.e.,
that
variance be granted under certain conditions.
MAPLETON PLANT
(PCB 79—190)
The Caterpillar facility at Mapleton produces 155 000
tons of grey iron castings annually for use in engine blocks,
engine heads, exhaust manifolds,
etc.
Approximately 3,900
people are employed at the Mapleton plant, which is
located
within Hollis Township of Peoria County, which county is with-
in the Peoria Major Metropolitan Area as defined in Rule
201.
of Chapter
2
of the Board’s regulations.
Caterpillar has spent
approximately $6.7 million on the FGD installation
at the plant.
For the purpose of this variance,
the relevant factors concern-
ing the equipment and operation at Mapleton are the same as
those expressed by the Board regarding the East Peoria plant,
supra.
36—193
—4—
The Agency’s Recommendation for the Mapleton plant cites
much the
same material contained in its recommendation for
East Peoria plant;
its recommendation
is the same,
to grant
variance under certain conditions.
MOSSVILLE PLANT
(PCB 79—191)
The Mossville facility
is located north of Peoria on the
west side of the Illinois River and employs approximately
10,000 people
at the plant and at Caterpillar’s nearby tech-
nical center.
Caterpillar manufactures
in excess of
60,000
tons
of product annually,
including deisel engines, natural
gas engines, hydraulic hose,
and marine transmissions.
The
plant
is located within Medina Township
in Peoria County,
which county
is within the Peoria Major Metropolitan Area as
defined in Rule 201 of Chapter
2 of the Board’s regulations.
Caterpillar has spent approximately $6.2 million on the FGD
installation at the plant.
The relevant facts are the same
as those expressed regarding the East Peoria plant,
supra.
The Agency Recommendation proposes that variance be gran-
ted under certain conditions and its comments are much the
same as those regarding the other three facilities,
supra.
CONSIDERATION
Although there are some differences with respect to the
numbers and types
of boilers involved in the four variance
petitions
the equipment and the problems encountered there-
with are quite similar.
The procedures followed by Caterpillar
in order to comply with the Board’s regulations and the costs
incurred at each installation are similar.
The Board finds that Caterpillar had initiated a plan of
compliance
at
a very early date and that
it has pursued this
plan
in good faith.
Considering the time and the approximately
$22.6 million expended by Caterpillar at all four locations
in an attempt to comply with the Board’s regulations
and the
minor difference between what the present regulation
demands
for compliance and that which Caterpillar
is able to achieve,
the Board finds that it would constitute an arbitrary and
unreasonable hardship to deny any of the variances.
In
granting the variances, the Board is cognizant of the regula-
tory proceeding presently pending
(R79-11),
in which Caterpillar
would have the Board adopt
a particulate emission limitation
of
0
25 lbs./million Btu on a routine and day-to—day basis
for coal—fired, spreader stoker industrial boilers equipped
with FGD systems.
The Board therefore grants the variances
until December 31,
1982 or until
final action is taken with
respect to R79—11, whichever occurs first.
The Agency has proposed that separate limitations be
imposed on the individual boilers; whereas,
Caterpillar
36—194
—5—
requests an across—the—hoard limitation
of 0.25 lbs./miliion
Btu for all of the boilers.
The Board
finds that an interim
limitation of
0.25 lbs./million Btu closely approximates the
separate interim limitations proposed by the Agency.
The Board
will depend upon the conditions it imposes herein upon the
variances and upon Caterpillar’s good judgment to ensure that
particulate emissions are not willfully increased at any of
the facilities beyond the amount emitted during normal opera-
tion.
This Opinion constitutes the findings of fact and conclu-
sions
of law of the Board in this matter.
ORDER
It
is the Order of the Pollution Control Board that
Caterpillar Tractor Co.
be granted variance from Rules
203(g)(l)(C)(i) and 203(g)(1)(B) of Chapter
2
of the Illinois
Pollution Control Board Rules and Regulations for the coal-
fired boilers
located at Caterpillar’s facilities located in
East Peoria, Joliet, Mapleton, and Mossville, Illinois until
December 31, 1982 or until
final Board action in R79-11,
whichever occurs first,
under certain conditions:
A)
Caterpillar Tractor Co.
shall operate
its scrubbers
at all times during boiler use except when applic-
able permit conditions
allow otherwise.
B)
Caterpillar Tractor Co. shall continue its efforts
to reduce particulate emissions from its facilities
and to minimize the impact of its emissions on the
air quality.
Such efforts
shall
include
at
a mini-
mum, the following:
1)
Reviewing procedures for the more efficient
operation of existing control equipment.
2)
Studying alternatives
to fly ash reinjection.
3)
Reviewing
all relevant studies
or actions now
planned or undertaken by
it relative to par-
ticulate emissions from the boilers.
C)
Caterpillar Tractor
Co.
shall submit to the Agency’s
Division of Air Pollution Control, Division Manager’s
Office, within six months of the grant of this
variance and every six months thereafter,
a report
outlining the status of its efforts to reduce par-
ticulate emissions and to minimize the impact of
its emission on the air quality.
The Agency may
request one summary report during the duration of
this variance and Caterpillar Tractor Co.
shall
36—195
—6—
submit said report within 60 days
of receipt of
such request.
D)
Particulate emissions from Caterpillar Tractor Co.’s
facilities shall not exceed an interim standard of
0.25 lbs./million Btu.
E)
Caterpillar Tractor Co., within 45 days of the
Board Order herein,
shall execute and forward to
the Illinois Environmental Protection Agency, Divi-
sion of Air Pollution Control,
2200 Churchill Road,
Springfield,
Illinois
62706
a Certification of
Acceptance and Agreement to be bound to all terms
and conditions
of this variance.
The
45 day period
shall he held in abeyance for any period during
which this matter is appealed.
The form of said
Certification shall be as follows:
CERTIFICATION
I
(We),
,
having read
and fully understanding the Order of the Pollution Control
Board
in PCB 79—188,
Consolidated, hereby accept said Order
and agree to be bound by all terms and conditions thereof.
SIGNED _______________________
TITLE
DATE
___________________________
I, Christan
L. Moffett,
Clerk of the Illinois Pollution
Control Board, her~bycertify the above Opinion and Order were
adopted on the
~IIy1~ day of
_______,
1979 by
a
vote of
I/~
Q~nL.Mof~i~
Illinois Pollution Control Board
36—196