ILLINOIS POLLUTION
CONTROL BOARD
June 2,
1994
IN
THE MATTER OF:
)
)
PETITION OF ENVIRITE
)
AS 94-10
CORPORATION
FOR A REVISED
)
(Adjusted
Standard)
ADJUSTED
STANDARD
FROM
)
35
ILL.
ADM.
CODE
721
)
SUBPART D
)
ORDER
OF THE BOARD
(by N.
McFawn):
On
May
10,
1994,
Envirite
Corporation
(Envirite)
filed a
petition for a revised adjusted standard for its hazardous waste
treatment facility in Harvey, Cook County,
Illinois.
In
conjunction with its petition, Envirite submitted a request for
trade secret protection for certain portions of its petition.
The specific portions for which Envirite seeks trade secret
protection are as follows:
1)
Section 6.0, “Description of Current Processes”
2)
Section 9.0,
“New Processes”
3) Section 15.0,
“Claim of Confidentiality”
Under Section
7 of the Environmental Protection Act
(Act)
(415 ILCS 5/7)
all files and records of the Board must generally
be open to reasonable public inspection. Several exceptions are
provided, including an exception for information which
constitutes a trade secret.
Part 120 of the Board’s procedural rules governs how trade
secrets are to be identified and protected.
Subparts B and C
thereunder contain the rules under which Envirite is to proceed
to protect the delineated portions of its adjusted standard
application as trade secrets.
The standards for making
a trade
secret determination are found at Section 120.230(a),
which
provides that an article shall be determined to represent a trade
secret if and only if:
1)
the owner has substantially complied with the
procedures for making a claim and justification...; and
2)
The statement of justification demonstrates that:
A)
The article has not otherwise been published,
disseminated or otherwise become a matter of
public knowledge; and
B)
The article has competitive value.
2
In determining whether the information has been treated as a
trade secret,
Section 120.230(b)
provides that there is a
rebuttable presumption that an article has not been published if
the statement of justification contains a certification to that
effect, and if the owner has taken reasonable steps to protect it
from disclosure to persons other than those designated to have
access.
Coat~liancewith Procedural Requirements
Envirite has submitted a claim letter as required in Section
120.201(a) (1), which describes with particularity the articles
claimed to represent a trade secret.
It has also submitted a
marked copy of its petition which indicates those portions for
which trade secret protection is sought, and an additional copy
of the petition from which those portions for which protection is
sought have been deleted,
in accordance with Section 120.305.
Finally, Envirite has submitted a statement of justification in
accordance with the requirements of Section 120.202.
The
statement of justification includes a description of the
procedures used to protect the information, a description of the
persons who have access to the information, a discussion of why
Envirite believes the information is of competitive value, and a
certification by Envirite’s Vice President,
Stephen B.
Smith,
that the information has not to his knowledge been published,
disseminated,
or otherwise become a matter of general public
knowledge.
We therefore find that Envirite has complied with the
procedural requirements for submitting a trade secret protection
claim.
We now examine the substantive merit of that claim.
Measures Taken to Prevent Disclosure
In its statement of justification, Envirite indicates that
the information it seeks to protect is subject to extensive
internal measures to prevent its disclosure.
It asserts that the
information is kept in secure office areas, desks,
or cabinets,
with restricted access.
The information is accessible only on a
need to know basis,
and this restriction is applied to Envirite’s
own executives,
senior managers, and technical staff.
For contractors, the information is only provided on an
absolute need to know basis, and execution of a confidentiality
agreement is required, as well as a letter of transmittal
acknowledging receipt.
At the end of the contract period,
Envirite requires that contractors return all information
supplied.
Envirite also asserts that copies of the information it
seeks to protect would not be made available to the general
public, the community,
or visiting customers.
If any of these
parties demonstrates a need to know, disclosure will only be made
under
a non—disclosure agreement.
Furthermore, the information
3
is only submitted to regulatory agencies under a claim of
confidentiality, with
a stipulation that the information is to be
used only for internal regulatory purposes and is not for general
dissemination.
Again, Section 120.230(b)
provides that there is a
rebuttable presumption that an article has not been published if
the statement of justification contains a certification to that
effect, and if the owner has taken reasonable steps to protect it
from disclosure to persons other than those designated to have
access.
Envirite has provided the necessary certification, and
has describe substantial measures that have been taken to protect
the information from disclosure.
We therefore find that Envirite
has taken reasonable steps to protect the information from
disclosure.
ConflDetitive Value
Finally,
the Board must determine whether the information
for which protection is sought has competitive value.
Envirite
asserts that it has developed the information contained in
Sections
6 and
9 of its revised adjusted standard petition
through considerable expenditure of time,
money, and engineering
and design effort.
It includes equipment, process, design, and
technological information unique to Envirite’s process of
significant competitive value.
Disclosure of this information
would enable competitors to construct and operate a
similar
facility without incurring the substantial costs associated with
its development and design.
We find that Envirite has demonstrated that the information
contained in Sections 6 and 9 of its petition for an adjusted
standard is entitled to protection as a trade secret.
It is
apparent that this information would be of significant
competitive value in the marketplace.
Envirite also seeks trade secret protection for its
Statement of Justification, which is contained in Section 15 of
its application for a revised adjusted standard.
We find that
the statement of justification contains none of the information
which Envirite sought to protect, and contains no information
which is of competitive value.
We therefore deny trade secret
protection for Section 15 of Envirite’s petition for an adjusted
standard.
For the reasons stated above, the Board hereby grants
Envirite’s request for trade secret protection for Sections
6
and
9 of its petition for an adjusted standard, and denies Envirite’s
request for trade secret protection for Section
15 of its
petition.
4
The Clerk of the Board is hereby directed to protect from
disclosure as representing trade secrets Sections
6 and 9 of
Envirite’s application for an adjusted standard.
Set for Hearing
Pursuant to 35
Ill. Adm. Code 106.415(a), a hearing is
required in a RCRA adjusted standard proceeding.
Accordingly,
this matter shall proceed to hearing.
This is
a type of case for which the Act prescribes no
deadline for decision, although the Act requires the petitioner
to timely pursue disposition of the petition.
Therefore,
hearing
must be scheduled and completed in a timely manner, consistent
with Board practices and 35 Ill.
Adm. Code Part 101 and Part 106,
Subpart G.
A hearing officer will be assigned to conduct
hearings.
The Clerk of the Board shall promptly issue
appropriate directions to the assigned hearing officer consistent
with this order.
The assigned hearing officer shall inform the Clerk of the
Board of the time and location of the hearing at least 40 days in
advance of hearing so that public notice of hearing may be
published.
After hearing, the hearing officer shall submit an
exhibit list,
a statement regarding credibility of witnesses and
all actual exhibits to the Board within five days of the hearing.
Any briefing schedule shall provide for final filings as
expeditiously as possible.
If after appropriate consultation with the parties, the
parties fail to provide an acceptable hearing date or if after an
attempt the hearing officer is unable to consult with the
parties, the hearing officer shall unilaterally set a hearing
date in conformance with the schedule above.
The hearing officer
and the parties are encouraged to expedite this proceeding as
much as possible.
IT IS SO ORDERED.
I, Dorothy M. Gunn,
Clerk of the Illinois Pollution Control
Board, hereby certi
that the above order was adopted on ~he
~‘-‘~--
day of
________________,
1994,
by a vote of
~,—O
orothy N. 9(~An, Clerk’
Illinois Po~4utionControl Board