1
    1 ILLINOIS POLLUTION CONTROL BOARD
    2 IN THE MATTER OF: )
    )
    3 AMENDMENTS TO REQUIREMENTS ) R97-29
    FOR LANDSCAPE WASTE COMPOST ) (Rulemaking - Land)
    4 FACILITIES, 35 ILL. ADM. )
    CODE 830.203(c) 831.107, )
    5 AND 831.109(b)(3) )
    6
    7 The following is the transcript of a
    8 hearing held in the above-entitled matter, taken
    9 stenographically by Caryl L. Hardy, CSR, a notary
    10 public within and for the County of Cook and State
    11 of Illinois, before Richard McGill, Hearing Officer,
    12 at 100 West Randolph Street, Room 9-040, Chicago,
    13 Illinois, on the 7th day of August 1998, A.D.,
    14 commencing at the hour of approximately 10:10 a.m.
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    L.A. REPORTING (312) 419-9292

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    1 PRESENT:
    2 HEARING TAKEN BEFORE:
    ILLINOIS POLLUTION CONTROL BOARD
    3 100 West Randolph Street
    Suite 11-500
    4 Chicago, Illinois 60601
    (312) 814-6983
    5 BY: MR. RICHARD R. McGILL, JR.
    6
    ILLINOIS POLLUTION CONTROL BOARD MEMBERS PRESENT:
    7
    Ms. Kathleen Hennessey
    8 Ms. Marili McFawn
    Mr. Anand Rao
    9
    10 ILLINOIS ENVIRONMENTAL PROTECTION AGENCY MEMBERS
    PRESENT:
    11
    Mr. Edwin C. Bakowski, P.E.
    12 Ms. Judith S. Dyer
    Ms. Joyce Munie, P.E.
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    L.A. REPORTING (312) 419-9292

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    1 I N D E X
    2 Page
    3
    GREETING BY HEARING OFFICER. . . . . . . . . . . . 4
    4 GREETING BY MS. HENNESSEY. . . . . . . . . . . . . 4
    GREETING BY MS. McFAWN . . . . . . . . . . . . . . 4
    5 TESTIMONY BY SUSAN GARRETT . . . . . . . . . . . . 12
    TESTIMONY BY EDWIN BAKOWSKI, P.E.. . . . . . . . . 14
    6 TESTIMONY BY JOYCE MUNIE, P.E. . . . . . . . . . . 22
    QUESTION & ANSWER SESSION. . . . . . . . . . . . . 28
    7 TESTIMONY BY JOY HINZ. . . . . . . . . . . . . . . 43
    QUESTION & ANSWER SESSION. . . . . . . . . . . . . 46
    8 TESTIMONY BY CHARLIE PICK. . . . . . . . . . . . . 47
    QUESTION & ANSWER SESSION. . . . . . . . . . . . . 54
    9 TESTIMONY BY DR. RENUKA DESAI. . . . . . . . . . . 58
    TESTIMONY BY JEFFREY GEISS . . . . . . . . . . . . 59
    10 QUESTION & ANSWER SESSION. . . . . . . . . . . . . 61
    TESTIMONY BY SUSAN FRANZETTI . . . . . . . . . . . 65
    11 QUESTION & ANSWER SESSION. . . . . . . . . . . . . 67
    CLOSING COMMENTS BY HEARING OFFICER. . . . . . . . 69
    12
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    14
    E X H I B I T S
    15 Marked for
    Identification
    16
    Hearing Exhibit No. 46. . . . . . . . . . . . . . 19
    17 Hearing Exhibit No. 47. . . . . . . . . . . . . . 21
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    L.A. REPORTING (312) 419-9292

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    1 MR. McGILL: Let's go on the record.
    Good morning. My name is Richard McGill, and I
    2 have been appointed by the Illinois Pollution
    Control Board to serve as hearing officer in this
    3 rulemaking proceeding entitled In The Matter Of:
    Amendments to Requirements for Landscape Waste
    4 Compost Facilities, 35 Illinois Administrative Code
    830.203(c) 831.107, and 831.109(b)(3). The docket
    5 number for this rulemaking is R97-29, and today is
    the third hearing.
    6 Also present today on behalf of the board is
    Kathleen Hennessey, to my left, the board member
    7 assigned to this rulemaking.
    MS. HENNESSEY: Good morning.
    8 MR. McGILL: To her left, board member Marili
    McFawn.
    9 MS. McFAWN: Good morning.
    MR. McGILL: And to my right, from the board's
    10 technical unit, Anand Rao.
    By way of background, in May of 1997 -- excuse
    11 me.
    (Brief pause.)
    12 MR. McGILL: In May of 1997, the proponents,
    Dr. Renuka Desai and Susan Garrett, filed a proposal
    13 with the board to amend 35 Illinois Administrative
    Code 830.203(c). Section 830.203(c) contains
    14 location standards for composting areas at certain
    landscape waste compost facilities.
    15 Generally, the proponents requested that the
    board amend that section to prohibit composting
    16 areas from being located within one-half mile of the
    property line of a hospital, school, athletic field,
    17 or public park and to require that existing
    composting areas located within that setback
    18 distance be relocated.
    The proponents alleged that their proposed
    19 amendments are necessary because these composting
    areas release spores into the air that present risks
    20 to human health.
    On June 17th, 1998, the board adopted proposed
    21 amendments for first notice. The board declined to
    adopt the proponents' proposal. Instead, the board
    22 proposed that the current one-eighth-mile setback
    applied to residences apply to health care
    23 facilities, primary and secondary schools and their
    associated recreational areas, and preschool and
    24 child care facilities and their associated
    recreational areas.
    L.A. REPORTING (312) 419-9292

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    1 As proposed, the new setback requirements would
    apply only to the compost facility if it is
    2 developed after January 1st, 1999, or if it's
    permitted composting area is expanded after
    3 January 1st, 1999.
    The board also proposed corresponding changes
    4 to certain permit application requirements.
    Please note that sign-up sheets for this
    5 proceeding, service and notice lists are located at
    the back of the room. Those on the notice list will
    6 receive only board opinions and orders and hearing
    officer orders. Those on the service list will
    7 receive these documents plus certain other filings.
    Also at the back of the room are copies of the
    8 current notice and service lists. These lists are
    updated periodically. I have also placed at the
    9 back of the room copies of my hearing officer order
    dated June 30th, 1998.
    10 Besides witnesses for the proponents and the
    Illinois Environmental Protection Agency, if you
    11 wish to testify today, you must sign in on the
    appropriate sign-up sheet at the back of the room.
    12 After any testimony from the proponents and the
    Illinois Environmental Protection Agency, we will
    13 proceed with the testimony of persons who sign up in
    the order their names appear on the sign-up sheet.
    14 This hearing will be governed by the board's
    procedural rules for regulatory proceedings. All
    15 information that is relevant and not repetitious or
    privileged will be admitted. All witnesses will be
    16 sworn and subject to cross questioning. If you do
    not wish to give testimony, you may file written
    17 public comments.
    As for the order of today's proceeding, we will
    18 begin with anyone who would like to testify
    regarding the decision of the Department of Commerce
    19 and Community Affairs to not conduct an economic
    impact study for this rulemaking. Then we will
    20 proceed with those who would like to provide
    testimony regarding the board's first notice version
    21 of the proposed rules. Again, for that testimony,
    we will first allow the proponents and the Illinois
    22 Environmental Protection Agency an opportunity to
    present testimony. After that, we will proceed with
    23 the testimony of persons who sign up in the order
    their names appear on the sign-up sheet.
    24 Anyone may ask a question of any witness. I
    ask that during question periods, if you have a
    L.A. REPORTING (312) 419-9292

    6
    1 question, please raise your hand and wait for me to
    acknowledge you. When I acknowledge you, please
    2 state your name and any organization you are
    representing here today.
    3 Please speak one at a time. If you are
    speaking over each other, the court reporter will
    4 not be able to get your statements down for the
    record.
    5 Also, please note that any questions asked by a
    board member or staff are intended to help build a
    6 complete record for the board's decision and not to
    express any preconceived notion or bias.
    7 Are there any questions about the procedure we
    will follow today?
    8 Seeing none, I note that the board has no
    additional hearing scheduled in this matter.
    9 Also, at the end of today's hearing, I will set
    a deadline for filing public comments.
    10 Would any of the board members present like to
    make any remarks at this time?
    11 MS. HENNESSEY: I would just like to welcome
    everybody and also just note that although we are
    12 happy to receive written public comments following
    this hearing, we do give more weight to the
    13 testimony that's provided to the hearing than we do
    to public comments primarily because there is an
    14 opportunity for others to ask cross questions about
    the testimony.
    15 Thank you.
    MR. McGILL: Okay. We will now proceed with
    16 the matter of the Department of Commerce and
    Community Affairs' decision to not conduct an
    17 economic impact study for this rulemaking.
    As background for this portion of today's
    18 hearing, Public Act 90-489, which became effective
    January 1st, 1998, requires the board to request the
    19 Department of Commerce and Community Affairs, or
    DCCA, to conduct an economic impact study on certain
    20 proposed rules before adopting those rules.
    Within 30 to 45 days of the board's request,
    21 DCCA may produce a study of the economic impact of
    the proposed rules. The board must make the
    22 economic impact study or DCCA's explanation for not
    conducting the study available to the public at
    23 least 20 days before public hearing on the economic
    impact of the proposed rules.
    24 The board requested by letter dated January
    30th, 1998, that DCCA conduct an economic impact
    L.A. REPORTING (312) 419-9292

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    1 study for this rulemaking. The board's letter
    referenced a letter dated January 26th, 1998, from
    2 DCCA in which DCCA notified the board that DCCA
    would not be conducting economic impact studies on
    3 rules pending before the board during the remainder
    of fiscal year 1998.
    4 In its letter, DCCA explained that it lacks the
    technical expertise and the financial resources to
    5 conduct these studies. Therefore, in its letter,
    the board asked that DCCA notify the board within
    6 ten days of receipt of the board's letter if DCCA
    intended to conduct an economic impact study for
    7 this rulemaking.
    The board further stated that if it did not
    8 receive this notification, the board would rely on
    DCCA's January 26th, 1998, letter as the required
    9 explanation for not conducting the study.
    The ten days for DCCA to notify the board have
    10 expired, and the board did not receive any
    notification from DCCA that it will conduct an
    11 economic impact study. In fact, the board has
    received a letter from DCCA dated June 26th, 1998,
    12 stating that for the same reasons, DCCA would not be
    conducting economic impact studies on rules pending
    13 before the board during fiscal year 1999.
    Is there anyone who would like to testify
    14 regarding DCCA's explanation for not conducting an
    economic impact study for this rulemaking?
    15 Seeing no response, we will move on to the next
    portion of this hearing.
    16 The purpose of this portion of the hearing is
    to receive testimony from all interested persons on
    17 the merits and economic impact of the first notice
    version of the proposed rules. In addition, the
    18 board would like to receive testimony on several
    issues enumerated in my hearing officer order dated
    19 June 30th, 1998. Copies of that hearing officer
    order are located in the back of the room.
    20 Testimony will also be received on other issues if
    relevant and not repetitive.
    21 At this point, I would like to ask, would the
    proponents like to present any testimony?
    22 MS. GARRETT: I would like just to make a
    comment.
    23 MR. McGILL: Why don't you step up here,
    please?
    24 (Brief pause.)
    MR. McGILL: Why don't we have the court
    L.A. REPORTING (312) 419-9292

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    1 reporter swear you in first?
    (The witness was duly sworn.)
    2 MS. GARRETT: I want to thank the Illinois
    Pollution Control Board for holding public hearings
    3 and allowing citizens to provide input on the siting
    of commercial compost operations in the state of
    4 Illinois. I'm proud to say that the impact and
    efforts of every day citizens can make a
    5 difference. The process made available through the
    Illinois Pollution Control Board and the IEPA made
    6 it possible for citizens to take on the challenge of
    revising a regulation and turning it into a reality,
    7 hopefully, by assembling and stating the facts.
    While the final proposal does not go as far as
    8 we asked, it is certainly a very significant step in
    controlling the siting of compost operations
    9 throughout the state.
    We have had consistency in the siting with
    10 regard to residences, but the new regulation
    includes guidelines for primary and secondary
    11 schools, health care facilities, and preschool and
    child care facilities, as well as the surrounding
    12 recreational fields.
    On behalf of thousands of citizens throughout
    13 the state, I thank those parties who gave us the
    opportunity to address this important issue.
    14 MR. McGILL: Thank you. If you could just hang
    on, do the proponents have any additional witnesses
    15 to present today?
    MS. GARRETT: No. The people that
    16 testified are in agreement with the proposed change
    in the regulation.
    17 MR. McGILL: Okay. At this point, we will open
    it up for any questions that anyone might have.
    18 Again, as I mentioned earlier, if you have a
    question, please raise your hand and wait for me to
    19 acknowledge you. When I acknowledge you, please
    state your name and any organization you are
    20 representing here today.
    Does the agency have any questions?
    21 MS. DYER: None at this time.
    MR. McGILL: Before the board proceeds with any
    22 questions it may have, does anyone else have any
    questions for this witness?
    23 At this point then, I thank you.
    MS. HENNESSEY: Thank you.
    24 MS. McFAWN: Thank you for all of your work, as
    well as your comments today.
    L.A. REPORTING (312) 419-9292

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    1 MR. McGILL: At this point, I would ask the
    agency if they would like to present any testimony.
    2 MS. DYER: We do have some brief testimony in
    response to the --
    3 MR. McGILL: If you would like, you can step up
    here. It may be easier for us and the court reporter
    4 to hear you.
    MS. DYER: Good morning. My name is Judy
    5 Dyer. I'm here today on behalf of the Illinois
    Environmental Protection Agency. With me on my left
    6 is Ed Bakowski. He's the manager of our permit
    section for the Bureau of Land at the agency. On my
    7 right is Joyce Munie. She works under Ed Bakowski
    in the permit section.
    8 We have some brief testimony to present today
    in response to some of the questions that the board
    9 requested information on or responses on in the
    board order going to first notice.
    10 MR. McGILL: Why don't we swear in the
    witnesses first?
    11 (The witnesses were duly sworn.)
    MR. BAKOWSKI: My name is Ed Bakowski. I
    12 manage the permit section in the division of land
    pollution control with the Bureau of Land with the
    13 IEPA. My section has the responsibility for
    implementing and administering the landscape waste
    14 composting regulations in Illinois pursuant to
    Section 39 of the Illinois Environmental Protection
    15 Act. I have served in this capacity for more than
    four years. From 1987 to 1984, I was a solid waste
    16 unit manager in this section, and prior to that, I
    was in the mine pollution control program.
    17 In the June 17th, 1998, notice concerning this
    proposal, the board asked for testimony on several
    18 specific subjects. As the regulating agency for
    these rules, the Illinois EPA wants to provide as
    19 much information to the board as possible. I wish
    to provide testimony on the notice Items 1, 4, and
    20 5. My unit manager in the solid waste unit, Joyce
    Munie, will be addressing Item 2. Ms. Munie will
    21 also be raising some technical concerns we have on
    the proposed rules.
    22 Regarding Item 1, the technical feasibility and
    economical reasonableness of the proposed rule, as a
    23 general rule: The agency does not have access to
    business and financial information of permittees.
    24 The decision of where a site will be made is made by
    the owner/operator prior to submitting the
    L.A. REPORTING (312) 419-9292

    10
    1 application to the agency. Because of this, we do
    not feel we can comment on the economic
    2 reasonableness of complying with this proposal
    either for new or existing facilities.
    3 Concerning the technical feasibility, the
    Illinois EPA is confident that within the state of
    4 Illinois there is ample area to find parcels of land
    that can meet the proposed setbacks. It is probable
    5 that facilities would find more suitable parcels in
    more remote areas, and therefore, transportation
    6 costs will be higher as they are farther away from
    populated areas where there are the more
    7 concentrated markets for both generators and users
    of the landscape waste and subsequent composts.
    8 If the rule is adopted as proposed, it is clear
    -- it needs to be clear in the rule when existence
    9 of a facility of concern is established. I have
    kind of generally categorized these facilities of
    10 concern in one group.
    It is necessary to know what date a facility of
    11 concern is established to invoke the setback. In
    other rules, it could either be based on the date of
    12 the permit application or of the final decision, but
    we think that date is critical and how that date is
    13 established.
    There is also the concern that if the setbacks
    14 are retroactively applied, the creation of a new
    facility of concern from which a setback -- a
    15 compost facility must be set back from -- excuse
    me. There is also a concern that if setbacks are
    16 retroactively applied, does the creation of a new
    facility of concern from which a compost facility
    17 must be set back cause an existing compost facility
    or even a facility permitted after these new rules
    18 to be relocated?
    Regarding Item 4, the Illinois EPA is not
    19 exactly sure without additional definitions of the
    types of facilities of concern that the new setback
    20 will apply from, but even with a general reading of
    the terms, it's clear that the agency has no or very
    21 minimal information about the proximity and type of
    facilities of concern that are near existing compost
    22 facilities.
    In an effort to help the board, the agency has
    23 prepared and mailed a letter to entities that we
    believe have this type of information. We have a
    24 list of where these facilities were -- these
    facilities -- these notices were mailed, and it was
    L.A. REPORTING (312) 419-9292

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    1 felt that counties and municipalities are the most
    involved in zoning, and the compost sites themselves
    2 may be aware of their neighbors.
    I guess I would submit --
    3 MS. DYER: We would like to submit as an
    exhibit a letter that was sent.
    4 MR. BAKOWSKI: I have ten copies of the letter
    we sent and the attached notice and then three lists
    5 of copies of who we sent it to. We basically sent
    it to the permitted compost facilities, the counties
    6 in Illinois, and the Illinois municipality.
    MS. DYER: These are three copies of the letter
    7 that was mailed and the attachments of the notice
    and proposed rules.
    8 MR. McGILL: This is three copies of the same?
    MS. DYER: Right, and I can give you more. We
    9 brought ten with us.
    MR. McGILL: Those are extras.
    10 MS. DYER: That's three copies of the list.
    MR. McGILL: Mailing list?
    11 MS. DYER: Mailing list.
    MR. McGILL: Okay. I have been handed two
    12 documents. The first is a letter from the Illinois
    Environmental Protection Agency dated July 30th,
    13 1998, regarding Proposed Amendments to Landscape
    Waste Compost Facilities request for comment. And
    14 attached to that letter is a copy of my hearing
    officer order of June 30th, 1998, along with the
    15 board's first notice opinion and order of June 17th,
    1998.
    16 Is there any objection to entering the
    described documents as a hearing exhibit?
    17 Seeing none, I am marking these documents as
    Exhibit Number 46 and entering them as a hearing
    18 exhibit.
    (Hearing Exhibit No. 46 marked for
    19 identification, 8-7-98.)
    MS. HENNESSEY: Just a question. Did you
    20 provide a copy of this letter to the proponents?
    MS. DYER: No. I was going to offer that.
    21 MS. GARRETT: Can I ask for clarification?
    MR. McGILL: Sure. Just state your name again
    22 for the record.
    MS. GARRETT: Susan Garrett.
    23 I guess I'm just a little confused. It appears
    as if the IEPA is asking for -- the retroactive
    24 aspect of the proposed regulation I thought was not
    supported by the Illinois Pollution Control Board,
    L.A. REPORTING (312) 419-9292

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    1 but it seems as if, you know, the IEPA is concerned
    that that is part of the proposed change in the
    2 regulation.
    MS. DYER: Excuse any confusion, if I could
    3 just respond. We are trying to respond to questions
    that the board posed in its order.
    4 MS. GARRETT: Okay.
    MS. DYER: And maybe it will become clearer
    5 when Ms. Munie testifies as to what our position is
    and remains and why we are providing this
    6 information.
    MS. GARRETT: Okay. All right.
    7 MR. McGILL: Let me just ask one question to
    reiterate this for the record. When you were
    8 referring to question numbers in your earlier
    testimony, you were referring to questions that were
    9 set forth in my hearing officer order of June 30th,
    1998; is that correct?
    10 MR. BAKOWSKI: No. I was referring to the
    questions in the June 17th, 1998, notice.
    11 MS. HENNESSEY: And those are on Page 7 of the
    June 17th order?
    12 MR. BAKOWSKI: I believe so.
    MS. HENNESSEY: Okay.
    13 MR. BAKOWSKI: They are one through five
    there.
    14 MR. McGILL: Thank you.
    MS. HENNESSEY: I just have a question. Are
    15 you going to give these exhibit numbers for the
    record or what?
    16 MR. McGILL: Yes. This is Exhibit Number 46,
    the agency letter with the attachments.
    17 MS. HENNESSEY: Okay.
    MR. McGILL: We left off at 45 last time.
    18 MS. HENNESSEY: Okay.
    MR. McGILL: And the other document that the
    19 agency has handed me is a list of mailing
    addresses. These are the persons to whom the agency
    20 sent the letter and attachments that are now Exhibit
    46.
    21 Is there any objection to entering this mailing
    list as a hearing exhibit?
    22 Seeing none, I'm marking this document as
    Exhibit Number 47 and entering it as a hearing
    23 exhibit.
    (Hearing Exhibit No. 47 marked for
    24 identification, 8-7-98.)
    MR. McGILL: Would the agency like to proceed
    L.A. REPORTING (312) 419-9292

    13
    1 with its testimony?
    MR. BAKOWSKI: A little further in response to
    2 Ms. Garrett's question, we didn't send you a copy of
    our letter because all we were trying to do is
    3 solicit information for the board. When the board
    proposed its notice, it asked specific questions,
    4 and the agency feels obligated to provide testimony
    as much as we can. In this instance, we didn't feel
    5 we had the information, so we tried to find -- think
    about who had that information and tried to let them
    6 know that the board was seeking that type of
    information. And we knew you would be here, so you
    7 would see the letter eventually. But it was just an
    effort to try to -- try to get as much information
    8 to the board because we didn't feel we had that type
    of information.
    9 MS. GARRETT: Okay.
    MR. BAKOWSKI: I think I'm finished.
    10 MR. McGILL: Okay.
    MS. HENNESSEY: Thank you for your efforts to
    11 solicit comments. We appreciate that.
    MS. MUNIE: Good morning. My name is Joyce
    12 Munie. I manage the solid waste unit of the permit
    section division of land pollution control at the
    13 Illinois EPA.
    I am testifying today in response to the
    14 board's request for testimony on specific issues and
    other issues, if relevant and not repetitive, on
    15 Page 7 in the June 17th, 1998, first notice order in
    this matter. I would like to address the second
    16 issue identified in the order: If the setbacks
    proposed in this first notice order were applied to
    17 existing compost facilities, should they apply
    immediately or after some period of time expires?
    18 The Illinois EPA testified in the original
    hearings that these setbacks should not be added at
    19 all either prospectively or retroactively. Since
    sufficient protection is in place with existing
    20 operational and location standards, the Illinois
    EPA's position has not changed. But since the
    21 board, in its order, has indicated that retroactive
    applicability of the setbacks may be under
    22 consideration, the Illinois EPA feels compelled to
    address that possibility.
    23 If the board were to apply the setbacks to
    existing facilities, the Illinois EPA would
    24 recommend that the applicability be phased in with
    the compliance deadline for each existing facility
    L.A. REPORTING (312) 419-9292

    14
    1 being the current permit expiration date for that
    facility.
    2 As I testified in the first hearing, the
    Illinois EPA does not believe that adding the
    3 proposed setback requirement to new facilities will
    have any impact on our administrative cost. Any
    4 proposed facility would just need to be located
    outside any setbacks that are in place at the time
    5 of application, and review of setback demonstration
    would just be a small part of the overall review of
    6 the application.
    However, if the additional setbacks are imposed
    7 retroactively, the Illinois EPA would expect the
    need to permit additional compost facilities to
    8 replace the existing facilities required to close.
    This would have a short-term impact when the rule is
    9 first adopted.
    As I stated in the first hearing, if 35 new
    10 facilities were needed to replace facilities that
    needed to close, it was estimated that this would
    11 cost the Illinois EPA between 525,000 and $700,000
    within the first couple of years after the rules
    12 became effective.
    If this requirement were phased in, the
    13 Illinois EPA could distribute these costs over a
    longer period of time. This estimate was based on
    14 an assumption that 50 percent of the facilities
    would close. If the information gathered by the
    15 board in these proceedings reveal that more or less
    of that percentage will close, this cost can be
    16 adjusted accordingly.
    We also want to mention that under the current
    17 compliance schedule, in 35 Illinois Administrative
    Code 830.107, the facilities that are continuing to
    18 operate under permits issued pursuant to 39(m) of
    the act must demonstrate compliance with all of the
    19 provisions of Part 830 upon renewal. We expect
    these additional requirements to cause some
    20 facilities to close anyway based on our experience
    with our facilities that have come to that
    21 deadline.
    As stated by Edwin Bakowski, the remainder of
    22 the questions posed by the board need to be
    addressed by the industry and communities that will
    23 be impacted by the proposed rules.
    We want to identify a few concerns about the
    24 regulations as proposed by the board.
    First, no definitions have been added. What
    L.A. REPORTING (312) 419-9292

    15
    1 type of facilities are to be included in the scope
    of health care facilities? There are many types of
    2 facilities that could arguably be included. Is a
    nursing home a health care facility? Does a
    3 doctor's office fit into this definition? Is a
    psychiatrist's office included? Is a mental health
    4 hospital included?
    We assume that primary and secondary schools
    5 would be kindergarten through 12th grade and could
    include public and private schools. Is a home where
    6 children are home-schooled included?
    For preschool and child care facilities, the
    7 definition could be very broad. Are all children's
    day care facilities included? Would this include
    8 in-home day care facilities? Is there a minimum
    number of children that must be cared for in the day
    9 care? Are church schools included in either of
    these definitions? Also, are the associated
    10 recreational areas to schools only the contiguous
    areas? Are arenas or fields not owned by the
    11 schools but leased or used for recreational
    activities included? From where is the measurement
    12 to the composting area made? In the case of a
    health care facility, would the measurement be made
    13 to the building or to the property line? Are
    buildings that are used for support such as
    14 maintenance buildings at health care facilities
    included in the setback?
    15 For the school and child care facilities with
    the associated recreational areas, is the
    16 measurement made to the associated area and building
    or to the property line? These issues should be
    17 addressed in the definitions.
    Second, we would like to make it clear that
    18 compost facilities must be set back only from
    facilities of concern that exist and are used for
    19 purposes for which a setback applies on the date
    that a complete application for the development of
    20 the compost facility or expansion of the compost
    facility is submitted to the Illinois EPA.
    21 Also, if the board chooses to make the setback
    retroactive, it should be made clear on what date to
    22 consider the location of the facility of concern
    from which the compost facility is set back. A
    23 school, day care, or health care facility could have
    moved within 660 feet of the compost area after the
    24 compost facility was developed and in operation.
    Would an existing compost facility use the date it
    L.A. REPORTING (312) 419-9292

    16
    1 was originally developed or another compliance date
    that the board establishes when demonstrating that
    2 the existing compost area is appropriately set back
    from the facility of concern?
    3 That concludes my testimony on behalf of the
    Illinois EPA today.
    4 MR. McGILL: Does the agency have any
    additional testimony they would like to present
    5 today?
    MS. DYER: That's all the testimony we have.
    6 If there are any questions, we could try to respond
    to those.
    7 MR. McGILL: Okay. Why don't we open it up for
    questions?
    8 Are there any additional questions for the
    agency's witnesses?
    9 Seeing none, the board may have a question.
    Why don't we go off the record for a moment?
    10 (Whereupon, a discussion was held off
    the record.)
    11 MR. McGILL: Let's go back on the record.
    This is a question for Ms. Munie. I believe in
    12 your testimony you stated that even if the board
    were to adopt the first notice version of the rules
    13 as final rules that a facility would have a
    compliance date at some point at which it would need
    14 to be in compliance with these new setback
    requirements?
    15 MS. MUNIE: No, with all of 830. But the way
    your rule is written, it's clear that it's only
    16 facilities that are expanded or developed after a
    specified date that have to comply with that new
    17 setback, but the rest of 830 must be complied with
    upon renewal or expansion.
    18 MR. McGILL: So you would view these additional
    setback requirements that the board has proposed as
    19 a siting requirement?
    MS. MUNIE: Yes, for new facilities.
    20 MS. HENNESSEY: New or expanded.
    MS. MUNIE: New or expanded, yes.
    21 MR. McGILL: Thank you.
    MS. HENNESSEY: I have a question. Earlier in
    22 your testimony, I thought I heard you say that the
    agency doesn't support the setbacks even as
    23 proposed. Is that correct? I guess, I -- first of
    all, is that -- did I understand you correctly?
    24 MS. MUNIE: Yes. In our original testimony, we
    stated that we don't support the need for it.
    L.A. REPORTING (312) 419-9292

    17
    1 MS. HENNESSEY: Although I thought in your
    later public comments filed after we had kind of
    2 discussed this potential compromise proposal that
    the agency at least didn't object to it.
    3 MS. MUNIE: We don't object to it.
    MS. HENNESSEY: And also, on definitions, I
    4 would just -- you raised some interesting questions
    on definitions. In terms of health care facilities,
    5 I would note that the TACO refers it to -- which was
    an agency proposal, refers just to health care
    6 facilities, and I'm just wondering if the agency has
    had experience with that kind of term in other
    7 regulations outside of the composting facility and
    whether that might aid the agency in applying this
    8 regulation without further definitions.
    MS. HENNESSEY: By TACO, just for the record, I
    9 will make it clear, the Tiered --
    MR. McGILL: Tiered Approach to Corrective
    10 Action Objectives, Part 742 of 35 Illinois
    Administrative Code.
    11 MR. BAKOWSKI: Right. In the permit section,
    we do utilize some of the TACO information, but we
    12 don't routinely go through -- and it's fairly new,
    and we haven't -- in our section haven't run across
    13 that. We did look back and look at some other
    permitting rules that had references, and we found
    14 one for hospitals, and I think we have a general
    idea what a hospital is, but some of the health care
    15 facilities were a little unclear. I guess we can
    address some of that. In comment, we can go back
    16 and talk to the -- primarily the underground storage
    tank program and the remedial project management
    17 programs, look at that. They might have had some
    experience over the past year in that.
    18 MS. HENNESSEY: Okay. I'm a little --
    certainly we will have to give some thought to
    19 definitions. One of the problems, though, when you
    start defining things is then there are questions
    20 about the definitions, so it seems there is never an
    end. I mean, there are always going to be some gray
    21 areas, but it may be that health care facilities and
    schools, et cetera need some further definition.
    22 I think we were thinking of those terms -- I'm
    not speaking for the board, but at least my
    23 impression when we think of these terms in kind of
    ordinary, common sense usage of those terms to the
    24 health care facility would not be, for example, a
    drug rehab facility, I mean, because that wasn't the
    L.A. REPORTING (312) 419-9292

    18
    1 kind of facility that we were necessarily concerned
    about. It wasn't really discussed in some of the
    2 hearings that we had had. But I guess I would just
    encourage you, if you can, to help us to come up
    3 with any suggested definitions that would be helpful
    for us to consider.
    4 MR. ANAND: I would just like to add to what
    Ms. Hennessey was saying regarding landfill rules,
    5 we use the term schools in setting setbacks from
    landfills, so if you have any experience in defining
    6 schools under your landfill program, we can look at
    that.
    7 MS. MUNIE: Actually, the schools was the
    easiest one. It's when it went to day care
    8 facilities and the associated areas that it became
    tougher.
    9 MR. BAKOWSKI: Yes, and recreational areas to
    schools because a lot of schools, you know, they
    10 just -- they just have adjacent areas that might be
    a public park that the school doesn't even control
    11 or a piece of land that some other entity may own
    and they let the schools go out and use those
    12 areas.
    MR. McGILL: I just had a question. The
    13 current regulations have a setback requirement for
    residences, and the rule, as far as I know, does not
    14 specify a date certain by when the measurement is
    made. How does the agency apply the current
    15 regulation?
    MS. MUNIE: The current regulation, first of
    16 all, there is a 200-foot setback and a 660-foot
    setback, and it's based on the date that the
    17 facility was first permitted or was expanded.
    DR. DESAI: Can I respond to the question about
    18 the home day care?
    MR. McGILL: Maybe we better let the agency
    19 respond to the question I just posed, but please
    keep your question, and you will have a chance to
    20 ask that.
    MS. MUNIE: The reference on that is Section
    21 830.203(c), and it specifies the 200-foot setback
    came from Section 39(m) of the act, and it was when
    22 compost facilities were first permitted under
    39(m). And then there was a second setback added by
    23 the legislature of November 17th, 1991, for a
    facility that is developed or the permitted
    24 composting area is expanded after 1991 -- November
    17th, 1991, so that is set by that date that that is
    L.A. REPORTING (312) 419-9292

    19
    1 the date you look at, location.
    MR. McGILL: Right. I understand that. I'm
    2 just saying that as far as I know, the rules don't
    specify a compliance date or a date when you would
    3 measure that eighth of a mile for a residence. You
    were suggesting it should be a time certain like
    4 when a permit is -- permit application is submitted
    or when a permit is issued.
    5 MS. MUNIE: Actually, we believe that for the
    rules as written, it would be the date that the
    6 application is complete -- made complete to us.
    It was the question of if you make it
    7 retroactive, you will need to make it clear that --
    because we haven't seen a proposal on that yet, you
    8 should make it clear that it's a date that's
    specified, and that's the date that they look at
    9 it.
    MR. McGILL: In terms of the existing -- you
    10 had mentioned being in compliance with the setback
    at the time the permit application was complete.
    11 MS. MUNIE: Yes.
    MR. McGILL: Is that approach that you just
    12 described anywhere in the regulations, the current
    regulations?
    13 MS. MUNIE: That is under 830.203(d).
    MR. McGILL: If I understand (d), that's an
    14 operational requirement that you have to, by the end
    of each day, have your landscape waste in the
    15 windrows?
    MS. MUNIE: The only time you are required by
    16 the regulations to make an application demonstrating
    your location is when you are developing a new area
    17 or expanding under your compliance deadlines. So if
    you don't have to make an application demonstrating
    18 it, the demonstration is not questioned again.
    MR. McGILL: Can we just go off the record for
    19 a minute?
    (Whereupon, a discussion was held off
    20 the record.)
    MR. McGILL: Let's go back on the record.
    21 Just for clarification, if we could get a
    response from the agency on what date they feel is
    22 the most appropriate to measure or to determine
    compliance with the setback.
    23 MS. MUNIE: For retroactivity if it's
    retroactive?
    24 MR. McGILL: No. Forgetting that, as proposed
    by the board in its first notice and in the order.
    L.A. REPORTING (312) 419-9292

    20
    1 MS. MUNIE: We will be glad to do it in written
    comment. However, you do have a compliance date set
    2 in the rules and --
    MR. McGILL: I think I need to specify. By
    3 compliance date, I'm not referring to the January 1st,
    1999, date where we are talking about the facilities
    4 developed or expanded after that date.
    You had talked about the permitting process and
    5 when you would determine if a proposed facility or
    expansion is within a certain distance from a
    6 protected facility. Would it be when a permit
    application arrives or when it's complete or when a
    7 permit is issued or some other time? In terms of
    the latter compliance date, what does the agency
    8 feel would be the most appropriate time to make that
    determination?
    9 MS. MUNIE: It's when the application is
    complete at the agency.
    10 MR. McGILL: Okay. Is that an agency
    determination that's made in writing?
    11 MS. MUNIE: That an application is complete?
    MR. McGILL: Right.
    12 MS. MUNIE: Yes.
    MR. McGILL: And that is sent to the permit
    13 applicant?
    MS. MUNIE: It's sent to the permit applicant.
    14 We inform them either it's complete or it's
    incomplete for these reasons, and we give them the
    15 date -- the date that we receive the application is
    the date that it's determined approved.
    16 MR. McGILL: Thank you.
    As you know, these setback requirements apply
    17 also to nonpermitted landscape waste compost
    facilities. Does the agency have any thoughts on
    18 what a compliance date would be for purposes of
    siting those nonpermitted facilities?
    19 MS. MUNIE: It would be the date where it's
    developed or it's expanded because since they don't
    20 come in with an application to us, there is no paper
    trail. It should be the date of construction for
    21 development or construction for expansion.
    MR. McGILL: You mean the date the construction
    22 commences?
    MS. MUNIE: Commences, yes.
    23 MR. McGILL: I just have one more question.
    You had mentioned where to measure from. The
    24 board's first notice opinion and order of Page 37
    mentions that the setback should be measured from
    L.A. REPORTING (312) 419-9292

    21
    1 the nearest edge of the composting area to the
    nearest property line of the protected facilities.
    2 Does the agency agree with that approach?
    MS. MUNIE: The property line is a fine
    3 approach as long as -- when a city owns a school and
    they own more property than what is the school, but
    4 it's contiguous, there is a very hazy line right
    there where where does the school property line end
    5 and where does the city property begin if it could
    be the school property as opposed to the owner of
    6 the school which, in general, for public schools is
    the city.
    7 MS. HENNESSEY: Is that different than -- how
    is it currently done for residences? Is it done the
    8 same way: Composting area to the property line?
    MS. MUNIE: Yes, yes.
    9 MS. HENNESSEY: Okay.
    MR. McGILL: It is done to the property line of
    10 the residence?
    MS. MUNIE: It's done to the property line.
    11 MR. BAKOWSKI: Usually a residence has a
    defined property. When you have schools associated
    12 with churches, the church may have all kinds of
    pieces of property everywhere, and a school may sit
    13 on one part and they might go a half-mile over and
    that's their recreational area and things like
    14 that.
    MS. MUNIE: And in the case of a farm, it's
    15 defined as the manicured area around the home.
    MS. HENNESSEY: I see.
    16 MS. McFAWN: Under what regs?
    MS. MUNIE: Under a determination --
    17 MR. BAKOWSKI: I think that the agency's view
    is residences at farms are -- you know, a farm might
    18 be 9,000 acres, but what we consider the residence
    of a farm is the area where the house is where
    19 people live, and usually they manicure a certain
    area around there. They maintain landscaping
    20 MS. McFAWN: So that's how you have interpreted
    it for those?
    21 MR. BAKOWSKI: Right.
    MS. McFAWN: I see.
    22 MR. McGILL: Are there any other questions for
    the agency?
    23 If you would just state your name for the
    record, please.
    24 DR. DESAI: My name is Renuka Desai. I'm from
    Lake Forest, Illinois, and I just have a question
    L.A. REPORTING (312) 419-9292

    22
    1 for the EPA.
    How many violations do you need to revoke the
    2 permit of the existing facility?
    MS. MUNIE: The Illinois EPA does not have the
    3 authority to revoke a permit.
    DR. DESAI: So even if they have 100 violations,
    4 200 violations, still we can't do anything about
    it?
    5 MS. MUNIE: We can enforce against them, and
    through an enforcement action, a permit can be
    6 revoked by the board.
    MR. BAKOWSKI: The decision to pursue
    7 revocation of a permit is based on the history of
    the facility, the number of violations, but more
    8 important than the number is the severity and the
    potential threat to human health and the
    9 environment. So one violation that's real serious
    might cause a revocation where 100 violations of
    10 other provisions that don't have a direct impact on
    human health and the environment may not.
    11 MS. MUNIE: But these violations must be
    adjudicated in front of a court where a determination
    12 must be made that we are right in the violation that
    we have cited.
    13 DR. DESAI: Okay. Thank you.
    MR. McGILL: Go ahead and state your name,
    14 please.
    MS. BUCKO: My name is Chris Bucko, and I was
    15 curious. It appears that Ms. Munie was indicating
    that the agency's position was that this -- these
    16 proposed regulations would affect only developmental
    permits or expansion permits, and I was interested
    17 to hear how a renewal would be handled.
    MS. MUNIE: Under the regulation as written, it
    18 would just be facilities that expanded their
    composting area or newly developed facilities after
    19 a certain date. And renewals would be handled the
    same way renewals are handled now. If a facility
    20 was developed before 1991, it has a 200-foot setback
    from a residence; whereas, if it was developed after
    21 November 17th of 1991, there is a 660-foot setback
    to a residence. This would be handled similarly.
    22 MR. McGILL: Thank you. Ms. Bucko, just for
    the record, you are with the Attorney General's
    23 office?
    MS. BUCKO: That's correct.
    24 MR. McGILL: Thank you.
    Are there any other questions for the agency's
    L.A. REPORTING (312) 419-9292

    23
    1 witnesses?
    Seeing none, I'm just going to go off the
    2 record for a moment.
    (Whereupon, a discussion was held off
    3 the record.)
    MR. McGILL: Let's go back on the record.
    4 Seeing no further questions for the agency's
    witnesses, I would like to thank the agency for
    5 coming here today and presenting this testimony.
    MS. DYER: You are welcome.
    6 MR. McGILL: Let's go off the record for a
    moment.
    7 (Whereupon, a discussion was held off
    the record.)
    8 MR. McGILL: Let's go back on the record.
    At this point, we are going to turn to the
    9 testimony of those who have signed up to testify
    today. Again, we will proceed in the order in which
    10 their names appear on the sign-up sheet.
    At this point, I would ask Ms. Joy Hinz if she
    11 would step up.
    (Brief pause.)
    12 MR. McGILL: Why don't we go ahead and have the
    court reporter swear you in?
    13 (The witness was duly sworn.)
    MR. McGILL: I just want to make sure that you
    14 again state your name and the organization you are
    representing here today and your position with that
    15 organization.
    MS. HINZ: My name is Joy Hinz, and I am with
    16 Will County. We are responsible for enforcing the
    Environmental Protection Act and the regulations set
    17 forth, and I am here to make a statement prepared by
    our office in regards to two of the permitted
    18 facilities, as well as the proposal.
    MR. McGILL: Excuse me. Would you just speak
    19 up a little? I'm having a hard time hearing you.
    MS. HINZ: Oh, sure.
    20 MR. McGILL: Thank you.
    MS. HINZ: I will go ahead and read the
    21 statement.
    The Will County Land Use Department Waste
    22 Services Division would like to provide comments
    with regard to the technical feasibility of
    23 requiring a one-eighth mile setback for landscape
    waste compost facilities from health care
    24 facilities, from primarily secondary schools and
    their associated recreational areas, and preschool
    L.A. REPORTING (312) 419-9292

    24
    1 and child care facilities and their associated
    recreational areas.
    2 The Pollution Control Board has concluded,
    quote, no relationship between exposure to certain
    3 levels of A. fumigatus spores and adverse health
    effects has been demonstrated. This was stated in
    4 the opinion and order of the board, proposed rule,
    first notice, Page 5.
    5 In addition, the board further concluded that
    the concentration of A. fumigatus spores falls to
    6 background within approximately 500 feet of the
    composting area quoted in the opinion and order of
    7 the board, proposed rule, first notice, Page 5.
    Given these conclusions, there appears to be no
    8 imminent threat to cause the board to apply the new,
    more stringent setback requirements either
    9 prospectively or retroactively.
    If the more stringent setback requirements must
    10 be imposed, the board should only apply them
    prospectively to any composting area developed or
    11 expanded no earlier than January 1st, 1999.
    The Will County Land Use Department Waste
    12 Services Division is not aware of any documented
    adverse health effects resulting from exposure to
    13 A. fumigatus within Will County. However, if more
    stringent setback requirements are imposed
    14 retroactively, at least one permitted compost site
    in the county would be closed: Referenced, Land and
    15 Lakes in Romeoville.
    Loss of this facility would inevitably result
    16 in an increased transportation cost for those
    residents using this site, increased open dumping
    17 and open burning, illegal dumping of landscape waste
    in landfills, and loss of sustainable market for
    18 landscape waste compost.
    In summary, first, there appears to be no
    19 imminent public health threat to require a
    one-eighth-mile setback. Secondly, retroactively
    20 applying the one-eighth mile setback would result in
    loss of permitted composting capacity within Will
    21 County and a sustainable market for landscape waste
    compost in this area.
    22 That's it.
    MR. McGILL: Thank you. Are there any
    23 questions for this witness?
    Seeing none, I'm just going off the record for
    24 a moment.
    L.A. REPORTING (312) 419-9292

    25
    1 (Whereupon, a discussion was held off
    the record.)
    2 MR. McGILL: Let's just go back on the record.
    We just have one question. Can you provide any
    3 testimony on the anticipated economic impact or
    economic effect of the first notice version of the
    4 proposed rules?
    MS. HINZ: We do not have any evidence at this
    5 time.
    MR. McGILL: Okay. Thank you.
    6 Are there any other questions for this
    witness?
    7 MS. McFAWN: I had just a few background
    questions. Maybe I missed it, but you are with Will
    8 County?
    MS. HINZ: Yes.
    9 MS. McFAWN: And your position with Will County
    is?
    10 MS. HINZ: Environmental enforcement officer.
    We are a -- at the moment we are not, but we are
    11 normally a delegated county with the Illinois EPA.
    MS. McFAWN: And your statements today were
    12 made on behalf of Will County?
    MS. HINZ: Correct.
    13 MR. McGILL: Any further questions for this
    witness?
    14 Seeing none, we would like to thank you for
    being here today.
    15 MS. HENNESSEY: Thank you.
    MS. HINZ: Thank you.
    16 MR. McGILL: We will now proceed with the
    testimony of Mr. Charlie Pick.
    17 (Brief pause.)
    MR. McGILL: If the court reporter would swear
    18 in the witness, please.
    (The witness was duly sworn.)
    19 MR. McGILL: Again, before you begin, if you
    would just please state your name and identify any
    20 organization you are representing here today and
    your position with that organization.
    21 MR. PICK: Certainly. My name is Charlie
    Pick. I am vice-president of Organics Management
    22 Company. It's based in Chicago.
    First, I would like to say for the record that
    23 the first notice recommendation by the board to
    apply the setback requirements to new or expanded
    24 facilities I think is entirely reasonable. It's
    consistent, I think, with the intent -- original
    L.A. REPORTING (312) 419-9292

    26
    1 intent of the setback requirements of the original
    EPA regulations.
    2 However, I do agree with Joyce Munie that a lot
    of work should go into looking at the definitions of
    3 the proposed additional facilities, health care
    facilities, schools and so forth that would be
    4 affected by this rule.
    About a year ago, I think, in this room, I gave
    5 testimony about the economic impact as to the
    retroactive application of this rule, and I'm not
    6 going to rehash that other than to say that I
    maintain that a retroactive application of this rule
    7 would be pretty devastating to the composting
    infrastructure in the state.
    8 With respect to a prospective application, at
    the end of your first notice, you asked for
    9 testimony with respect to prospective and
    retroactive application of the rule, especially with
    10 regard to economics, and based on DCCA's comment
    that they are not able to provide it, I thought that
    11 my testimony might be helpful in looking at the
    prospective side of it.
    12 With a prospective application, what I
    understand that to mean would be an application of
    13 the rule at the time of permit expiration or renewal
    sometime in the future, and I do think that a
    14 prospective application would at least give an
    operator the opportunity to minimize the loss of
    15 investment by having some ability to plan for that
    date when their permit expires. But obviously,
    16 there are a number of different dates across the
    whole variety of facilities that are currently
    17 permitted when that would occur. It could be two
    months from now, two days from now, or two years
    18 from now, so the impact could range from devastating
    to at least, you know, minimal, although site
    19 improvement costs generally are completely lost when
    a facility is closed simply because you can't sell
    20 those improvements typically to a new property
    purchaser. They don't place any economic value on
    21 those.
    But aside from the economic implications of a
    22 closure sometime in the future, I think it's more
    important to look at the effect on the composting
    23 capacity in the state of Illinois if that were put
    into effect prospectively. Essentially, the
    24 facilities that would be affected by this rule would
    be unlikely to relocate in any kind of close
    L.A. REPORTING (312) 419-9292

    27
    1 proximity to where they are now simply because if
    the rule affects them, it's quite likely that they
    2 are in a densely populated area where it would be
    almost impossible to find another piece of property
    3 nearby that would find -- that would be suitable for
    composting. Lake Forest did an investigation to try
    4 and move their site, and they couldn't find anything
    with any kind of reasonable distance -- reasonable
    5 proximity to the original site.
    And to give you an illustration of the problem
    6 in relocating, if you look at a five-acre composting
    facility and then look at a 660-foot setback around
    7 that facility, if you look at that all told, you are
    looking at a 73-acre block of land that has --
    8 effectively has to have nothing in it, so to speak,
    in terms of applicable receptors as far as the
    9 setback requirements are concerned. So 73 acres of
    land, that's 660 feet all around plus the size of
    10 the facility. That is a huge piece of land in any
    kind of urban environment where essentially nothing
    11 is going on.
    In addition to that, typically operators look
    12 for more than 660 feet in the prevailing wind
    direction where there is no receptor at all, whether
    13 that be -- forget about the statutory requirements,
    but in terms of any sort of office building or any
    14 other sensitive receptor that would object to the
    facility, they are looking for 1,000 feet, 1200
    15 feet, 1500 feet where there is nobody there. So the
    likelihood of relocating a facility in close
    16 proximity to the affected facility that was closed
    down under this rule is really, really, really
    17 slim.
    MS. HENNESSEY: Can I just interrupt you
    18 because I think there may be unwitting confusion
    that we have created about the terms prospective and
    19 retroactive. I think I speak for the board. I
    don't officially speak for the board. My
    20 understanding when we talked about this
    prospectively -- applying it prospectively, that
    21 meant it would only apply to facilities -- to either
    new facilities or facilities that were expanding.
    22 MR. PICK: Okay.
    MS. HENNESSEY: What you seem to be talking
    23 about when you use the word prospective is having
    this requirement apply to existing facilities
    24 already sited sometime in the future, so either when
    their permits come up for renewal or at some set
    L.A. REPORTING (312) 419-9292

    28
    1 date.
    MR. McGILL: Even if they don't expand.
    2 MR. PICK: Right.
    MS. HENNESSEY: Okay. So what you have been
    3 addressing now is the application of these setbacks
    to existing facilities?
    4 MR. PICK: Right. Maybe I misunderstood.
    MR. McGILL: That is one of the questions we --
    5 MR. PICK: I thought that was part of the
    question.
    6 MS. HENNESSEY: We did pose that question, but
    I just wanted to make sure that you don't have a
    7 problem with this proposal as it applies to only new
    or expanded facilities.
    8 MR. PICK: That's correct.
    MS. HENNESSEY: Okay. Thank you.
    9 MR. PICK: Yeah. I'm just looking at the
    existing facilities, and I'm trying to give you some
    10 economic basis.
    MS. HENNESSEY: Which is exactly what we asked
    11 for. Thanks.
    MR. PICK: Okay.
    12 So given that the facilities affected would
    close, it would be unlikely to relocate in any kind
    13 of close proximity to their original location. What
    you are left with in a scenario like that, in my
    14 estimation, would be not unlike what the solid waste
    experience -- solid waste industry experienced under
    15 Subtitle D, which is that a lot of the small, local
    landfills have no choice but to close. And what was
    16 left was essentially a transfer station
    infrastructure, which is not a bad thing, but it was
    17 a transfer station that took this solid waste from
    more densely populated areas out to larger, more
    18 remote landfills, and I don't see the composting
    business going in any other direction under this
    19 scenario. So many of these composting sites would
    likely become transfer stations, or some of them
    20 would just close completely and other transfer
    stations would open.
    21 The net result, I believe, is that you would
    have two things. One: You would have larger, more
    22 remote composting facilities just like you have
    larger, more remote landfills now. And number two:
    23 The transportation costs to get the materials from
    the populated areas to those remote facilities would
    24 have to be borne by the generators, and when I say
    generator, it's the taxpayer or a landscaper which
    L.A. REPORTING (312) 419-9292

    29
    1 would, in turn, pass that cost on to the homeowner.
    So ultimately, the citizens would pay the additional
    2 cost of transportation and processing to move the
    material from the transfer station and over to the
    3 remote composting facilities.
    Transfer stations mean additional handling,
    4 additional processing, and then the trucking in both
    directions because not only would you transfer raw
    5 material out to the sites, but you would have to
    bring the compost back to the urban areas in order
    6 to make it marketable because if you are 60 miles
    from downtown Chicago or 100 miles from downtown
    7 Chicago, it is quite difficult to market finished
    product in that area of the world.
    8 So in conclusion, I believe that if the rule
    were applied to facilities at the time of permit
    9 expiration or renewal that that would result in most
    of those facilities closing down and considerable
    10 additional costs to the homeowner in terms of
    disposal fees for the yard waste that they
    11 generate.
    MS. HENNESSEY: We had a lot of testimony at
    12 the first hearing about how the half-mile proposed
    setback would be a problem. As I understand what
    13 you are saying today, even an eighth-of-a-mile
    setback is going to cause just -- would it cause the
    14 same number of facilities to close, would you
    think?
    15 MR. PICK: Well, it's going to be fewer than a
    half a mile for sure, but there are a number of
    16 facilities -- because schools in particular are --
    there are a lot of facilities that are not very far
    17 from schools, and so they would be closed down. I
    mean, I know that there was testimony even to the
    18 effect of the rule on the eighth-of-a-mile setback
    for existing facilities, and a lot of them would be
    19 affected. I believe Crystal Lake would be, village
    of Winnetka, the city of Evanston. I don't have a
    20 complete list, but a lot of facilities. So to the
    extent that each one of those closes, then those
    21 costs are going to be higher.
    MR. McGILL: Are there any questions for this
    22 witness?
    Go ahead and state your name.
    23 MS. GARRETT: Susan Garrett.
    In regard to the economic impact, I think we
    24 testified originally that other communities make
    allowances for the cost of transporting yard waste,
    L.A. REPORTING (312) 419-9292

    30
    1 and that is picked up by taxpayers. As far as I
    know, Highland Park is a good example. There have
    2 not been any negative repercussions on that issue at
    all, and I think it's important to discuss and to
    3 debate the idea of having these sites farther away
    from the public and then having the transportation
    4 cost built into it because I think in the long run,
    that's what the citizens do want, and I think in the
    5 long run it will be a much healthier industry for
    the composting business.
    6 MR. PICK: Was that a question or a comment?
    MS. GARRETT: I just wanted to comment on what
    7 you said regarding the extra dollars that taxpayers
    would pick up.
    8 MR. McGILL: Let me just clarify, Ms. Garrett
    is still under oath, and there will be an
    9 opportunity to provide additional testimony since
    Mr. Pick is the last person to sign up. So if you
    10 have any specific questions for this witness, why
    don't we pose those now? Then everyone will have a
    11 chance to provide any additional testimony, if they
    would like, a little later.
    12 Are there any questions for this witness?
    Seeing none, I just have one question. I was
    13 wondering if you could provide any testimony on the
    anticipated economic effect of the first notice
    14 version of the proposed rules. And just for
    clarity, as proposed at the first notice, the new
    15 setback requirements would apply only to a compost
    facility if it is developed after January 1st, 1999,
    16 or if it's permitted composting area is expanded
    after January 1st, 1999.
    17 MR. PICK: I think the economic impact under
    that notice would be minimal because the expansion
    18 is voluntary and you know what the rules are, and if
    it doesn't make economic sense, you don't do it.
    19 As far as a new facility, it's the same thing:
    You go in with your eyes open and make that decision
    20 MR. McGILL: But a facility -- if someone did
    want to develop or expand a facility, what sort of
    21 economic impact do you think these new rules would
    have?
    22 MR. PICK: I think what you are more likely to
    see is larger, more remote facilities because the
    23 more stringent the setback requirements, the harder
    it is to site these facilities. But again, the
    24 developer or owner of a facility that would be new
    or expanded would not undertake that investment
    L.A. REPORTING (312) 419-9292

    31
    1 unless they felt it warranted. So I think it's -- I
    don't see any net impact on the industry as a result
    2 of it or on cost.
    MR. McGILL: Are there any other questions for
    3 this witness?
    Seeing none, I would like to thank you for
    4 being here today and providing that testimony.
    At this point, I would ask if there is anyone
    5 who would like to provide testimony at this point.
    I see two individuals. I saw Dr. Desai's hand
    6 first, so Dr. Desai, if you would step up here,
    please.
    7 (Brief pause.)
    MR. McGILL: Why don't you go ahead and let the
    8 court reporter swear you in first?
    (The witness was duly sworn.)
    9 MR. McGILL: If you would just state your name
    for the record.
    10 DR. DESAI: Okay. My name is Renuka Desai, and
    I just want to make a statement. I would like to
    11 thank the board for taking their time and looking
    into this issued because nobody was ready to listen
    12 to this. You have invested so much time and you
    have come to some kind of reasonable conclusion, and
    13 I want to thank you, and I would strongly support
    whatever decision the board will make because I know
    14 that you will make the decision in good faith.
    Thank you.
    15 MR. McGILL: Thank you.
    Were there any questions for Dr. Desai?
    16 Seeing none, I will just note that
    Dr. Desai was one of the proponents, along with
    17 Susan Garrett.
    I believe there was one other person who
    18 indicated they would like to provide testimony. If
    you would step up, you are welcome to sit or stand
    19 as you wish.
    MR. GEISS: Okay.
    20 (Brief pause.)
    MR. McGILL: We'll go ahead and have the court
    21 reporter swear you in.
    (The witness was duly sworn.)
    22 MR. McGILL: Before you begin, if you would
    state your name and any organization you are
    23 representing here today and your position with that
    organization.
    24 MR. GEISS: My name is Jeffrey Geiss. I work
    for CDT Landfill in Joliet, and I am operations
    L.A. REPORTING (312) 419-9292

    32
    1 manager at the Joliet landscape waste compost
    facility. I have been the manager there since
    2 1992.
    First, CDT would like to support the positions
    3 of the Illinois Environmental Protection Agency and
    the Will County land use department. The only -- we
    4 have talked to our engineers and we do not feel that
    the setback requirement will affect our facility
    5 today, but the questions that we were concerned
    about would be that if new child care facilities or
    6 health care facilities were located within the
    setback at a later time, if this would affect our
    7 permit.
    The other question we had was if a permit
    8 renewal was considered in an expansion, and I think
    that question was answered earlier.
    9 We also believe that this regulation could, in
    fact, increase illegal dumping of yard waste in
    10 areas where the compost facilities would be
    affected.
    11 Thank you.
    MR. McGILL: I just wanted to ask -- was that
    12 the extent of your testimony?
    MR. GEISS: Yes.
    13 MR. McGILL: I just wanted to ask a question.
    In terms of what the board has proposed at first
    14 notice, the new setback requirement would apply only
    if a facility is developed or expanded after
    15 January 1st, 1999.
    MR. GEISS: Correct.
    16 MR. McGILL: The organization you represent, do
    you have any -- do they have any thoughts on what
    17 the board has proposed at first notice in terms of
    economic impact or the merits of the first notice
    18 proposal?
    MR. GEISS: As I have read this and as I
    19 understand it, it would not affect us today. There
    was some question, I believe, to the effect of
    20 retroactive. We still don't believe a retroactive
    would affect us.
    21 Currently, we are a fairly rural area. There
    is farms to the north. The facility is sited on top
    22 of a closed landfill. There are not many other uses
    for that landfill, so if it was a retroactive and at
    23 a later date one of these facilities that required
    an eighth-mile setback was located within that
    24 eighth mile and that would displace the facility,
    that would be an economic hardship for us because we
    L.A. REPORTING (312) 419-9292

    33
    1 do not feel that we could relocate this site and
    operate the facility at a profit because of the
    2 current competitive economic state of the industry.
    MR. McGILL: Okay. I would just like to note
    3 one thing for clarification. This is on Page 37 of
    the board's first notice opinion and order. It's in
    4 a footnote. A similar concern that you just
    expressed was raised by the city of Lake Forest, and
    5 the board clarified in that footnote, and I will
    just quote: To clarify, the proposed first notice
    6 amendments to 35 Illinois Administrative Code
    830.203(c) are siting requirements. A compost
    7 facility sited in compliance with these requirements
    would not violate them because a health care
    8 facility, for example, is thereafter constructed
    within one-eighth of a mile.
    9 MR. GEISS: Thank you. That clarifies my
    question then.
    10 MS. HENNESSEY: Maybe what you are suggesting
    to us is that needs to be set forth in the
    11 regulation itself?
    MR. GEISS: Well, as I read the regulation,
    12 that was a question that came to mind, and me being
    a layman and an operations manager and not a lawyer,
    13 that's the questions that popped into my mind.
    MS. HENNESSEY: Does your facility have any
    14 current plans to expand?
    MR. GEISS: Our site is approximately 20 acres,
    15 and currently, it meets all the needs for our
    customers, so we don't have any immediate future
    16 plans to expand the site.
    MS. HENNESSEY: Assuming you were to expand,
    17 would this regulation affect you?
    MR. GEISS: Today it wouldn't because today
    18 there is corn fields to the north of us. And if
    that cornfield, for example, is developed and a
    19 facility of such nature that would require a setback
    was placed within that setback, then that could
    20 affect an expansion.
    MS. HENNESSEY: How large is your site? You
    21 said it's 20 acres?
    MR. GEISS: Approximately 20 acres.
    22 MS. HENNESSEY: Okay. Thank you.
    MR. GEISS: Thank you.
    23 MR. McGILL: Are there any other questions for
    this witness?
    24 Seeing none, let's just go off the record for a
    moment.
    L.A. REPORTING (312) 419-9292

    34
    1 (Whereupon, a discussion was held off
    the record.)
    2 MR. McGILL: Let's go back on the record.
    I would like to thank you for participating
    3 today.
    MR. GEISS: Thank you for having the hearing.
    4 MR. McGILL: Is there anyone else who would
    like to testify today?
    5 MS. FRANZETTI: I do have a question based on
    the last comment made by you on your footnote if I
    6 could ask that
    MR. McGILL: Maybe I could explain the context
    7 of this proceeding. The people you see before you
    up here are not the entire board, so we can't really
    8 speak on behalf of the board.
    MS. FRANZETTI: I understand.
    9 MR. McGILL: The board speaks through its
    written opinions and orders, but we certainly
    10 welcome comments and questions.
    MS. FRANZETTI: I will put it in the form of a
    11 comment.
    MR. McGILL: In the form of public comment,
    12 that would be fine.
    MS. FRANZETTI: I should not have called it a
    13 question.
    My name is Susan Franzetti. I'm with Gardner,
    14 Carton, & Douglas here in Chicago.
    The confusion that I think starts getting
    15 created when you --
    MR. McGILL: I'm sorry. Are you posing a
    16 question? We don't have a witness right now.
    MS. FRANZETTI: No, no. I just want to make a
    17 comment
    MR. McGILL: If you are testifying, we need to
    18 get you sworn in, so why don't you step up, if you
    don't mind?
    19 MS. FRANZETTI: I will stand right here. It's
    not going to take that long.
    20 MR. McGILL: Okay. Why don't we swear in the
    witness?
    21 (The witness was duly sworn.)
    MR. McGILL: Could you just again state the --
    22 MS. FRANZETTI: Susan Franzetti for Gardner,
    Carton, & Douglas for the city of Lake Forest.
    23 MR. McGILL: Thank you.
    MS. FRANZETTI: I think the confusion that
    24 starts to get created -- and I just want to point it
    out. I know we can address this in comments, but I
    L.A. REPORTING (312) 419-9292

    35
    1 think it just got underscored by the exchange with
    the last witness, and that is that the footnote on
    2 Page 37 does clarify things with respect to the
    proposed first notice regulation that the setback is
    3 a siting requirement and, therefore, for an existing
    facility. If a protected facility or facility of
    4 concern -- we have used a few different terms for
    those today -- gets located within that new setback
    5 requirement, that wouldn't cause the facility to
    close down. I think that's clear.
    6 However, when you start talking about
    retroactivity, that's when I think it becomes very
    7 unclear because let's just assume if you made this
    retroactive and at some point, let's say at renewal,
    8 let's assume that, an existing facility violates the
    new revised setback requirement, I believe they
    9 would have to close down. However, under this
    footnote statement, an existing facility shouldn't
    10 have to close down if a protected facility comes to
    be located within the setback. It doesn't seem to
    11 make sense. It doesn't add up in terms of how this
    footnote is written and then when you start to talk
    12 about retroactivity because, in fact, then unless
    this footnote were to then change, you have this
    13 incongruous situation whereby an existing facility
    that wouldn't meet this proposed new setback
    14 requirement would have to close, but a new one that
    met it at one time but now something locates within
    15 that setback -- one-eighth-of-a-mile setback would
    not have to close.
    16 I can't rationalize that, so I just wanted to
    make that comment, and I know we can address that in
    17 public comment, but I think that's why you have some
    of this uncertainty about what happens then with an
    18 existing facility. I think it's because of the
    specter of retroactively when you combine it with
    19 this footnote.
    Thank you.
    20 MR. McGILL: Thank you. And I just would like
    to ask, is there anyone who has a question for this
    21 witness?
    MS. HENNESSEY: Ms. Franzetti, just to clarify
    22 your comment, are you raising the similar issue that
    the agency raised which is suppose we apply this a
    23 retroactively. Do we need to basically go back and
    look at when the facility was originally sited and
    24 see if in one one-eighth of a mile there were any of
    these protected facilities? Is that the inquiry
    L.A. REPORTING (312) 419-9292

    36
    1 that we should undertake? Or will it be looking at
    the time of renewal? At the time that a permit is
    2 renewed, do we need to then determine if there are
    any protected facilities within the one-eighth-of-a-mile
    3 setback?
    MS. FRANZETTI: It's certainly a related point,
    4 but it's not the same point that I think I'm trying
    to make. There would seem to be -- when you get
    5 into retroactivity, there would seem to be an
    arbitrariness introduced between how the regulation
    6 works for a brand new facility that only has to meet
    it at the beginning and then it can be violated
    7 afterwards by things moving in to its area versus
    the existing facility. That's the point I'm trying
    8 to make. They are related points. I'm not sure
    they are identical.
    9 MS. HENNESSEY: Okay. I understand. Thank
    you.
    10 MR. McGILL: Are there any further questions
    for this witness?
    11 Seeing none, I will ask again, is there anyone
    else who wishes to testify today?
    12 Seeing no response, I will move on to a few
    procedural matters to address before we adjourn.
    13 Why don't we go off the record for a moment?
    (Whereupon, a discussion was held off
    14 the record.)
    MR. McGILL: Let's go back on the record.
    15 Public comments must be received by the clerk
    of the board no later than 4:30 on September 4th,
    16 1998. The mailbox rule does not apply to this
    filing.
    17 Anyone may file public comments. These public
    comments must be filed with the clerk of the board.
    18 Public comments should reference the docket number
    of this rulemaking, R97-29, as well as the name,
    19 address, and affiliation, if any, of the
    commentary.
    20 If you are on the service list, your public
    comment must be simultaneously delivered to all
    21 persons on the service list. You should contact me
    or the clerk's office to make sure you have the
    22 current service list.
    Copies of the transcript of today's hearing
    23 should be available at the board here in Chicago by
    August 12th, 1998. At the present time, we cannot
    24 put transcripts on the board's home page on the
    Worldwide Web. Accordingly, for the time being, we
    L.A. REPORTING (312) 419-9292

    37
    1 will provide an electronic copy of this transcript
    on disk free of charge.
    2 Are there any other matters that need to be
    addressed at this time?
    3 MS. HENNESSEY: I would just like to, again,
    thank everyone for participating. I wish we had as
    4 much public participation in all of our
    rulemakings. Some great points have been raised,
    5 and we would take them back and give them some
    thought and look forward to your public comments.
    6 MR. McGILL: Thank you.
    Are there any other matters that need to be
    7 addressed at this time?
    Seeing none, I would like to also thank
    8 everyone for their participation today. This
    hearing is adjourned.
    9 (Whereupon, the hearing was adjourned
    at 11:40 a.m.)
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    L.A. REPORTING (312) 419-9292

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    1 STATE OF ILLINOIS )
    ) SS.
    2 COUNTY OF COOK )
    3
    4 I, CARYL L. HARDY, a Certified Shorthand
    5 Reporter doing business in the County of Cook and
    6 State of Illinois, do hereby certify that I reported
    7 in machine shorthand the proceedings at the hearing
    8 of the above-entitled cause.
    9 I further certify that the foregoing is a
    10 true and correct transcript of said proceedings as
    11 appears from the stenographic notes so taken and
    12 transcribed by me.
    13
    14
    15
    16
    17 CSR No. 084-003896
    18
    19 SUBSCRIBED AND SWORN TO
    before me this ____ day
    20 of ___________, A.D., 1998.
    21 _____________________________
    Notary Public
    22
    23
    24
    L.A. REPORTING (312) 419-9292

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