ILLINOIS POLLUTION CONTROL BOARD

July 13, 1989

LIGMA CORPORATION,        

)

Petitioner,

)

PCB 88—131

ILLINOIS ENVIRONMENTAL

PROTECTION AGENCY,

Respondent.

MR. CHARLES J. O’CONNOR, OF ARVEY, HODES, COSTELLO & BURMAN,

APPEARED ON BEHALF OF PETITIONER;

MR. J~~~ESJ. O’DONNELL APPEARED ON BEHALF OF RESPONDENT.

OPINION AND ORDER OF THE BOARD (by R. C. Flemal):

This matter comes before the Board upon the filing by Ligma

Corporation (“Ligma”) of a Petition for Variance (“Petition”) on

August 18, 1988 and an Amended Petition for Variance (“Amended

Petition”) on April 25, 1989. Ligma requests variance from the

prohibition against operating a new emission source without an

operating permit found at 35 Ill. Adm. Code 201.143 and from the

limitation imposed on emissions of volatile organic materials

(“VOM”) found at 35 Ill. Adm. Code 215.301 and 215.304; variance

from the latter provisions is requested to extend until October

1, 1991.

The Illinois Environmental Protection Agency (“Agency”)

filed its statutory recommendation (“Recommendation”) in response

to the Petition on November 2, 1988 and a recommendation

(“Amended Rec.”) in response to the Amended Petition on June 12,

1989. The Agency recommends that variance be granted, subject to

conditions.

Hearing was held November 1, 1988 at the Nashville City

Hall. No members of the public attended or participated.

REGULATORY FRAMEWORK

35 Ill. Adm. Code 201.143 provides in pertinent part:

No person shall cause or allow the operation of any

new emission source 

. ..

of a type for which a

construction permit is required by Section 201.142

without first obtaining an operating permit from the

Agency

1fl1—--33

—2—

35 Ill. Adm. Code 215.301 provides in pertinent part:

No person shall cause or allow the discharge of more

than 3.6 kg.hr (8 lbs.hr) of organic material into

the atmosphere from any emission source, except as

provided in Section 

...

215.304 and the following

exception: If no odor nuisance exists the limitation

of this Subpart shall apply only to photochemically

reactive material.

Section 215.304 provides in pertinent part:

The provisions of Sections 215.301 

...

shall not

apply to any 

...

user 

.. .

of paint, varnish, lacquer,

coatings or printing inks whose compliance program

and project completion schedule, as required by 35

Ill. Adm. Code 201, provides for the reduction of

organic material used in such process to 20 percent

or less of total volume by May 30, 1977.

“Photochemically reactive material” (“PRM”) is defined at 35

Ill. Adm. Code 211.122:

any organic material with an aggregate of more than

20 percent of its total volume composed of the

chemical compounds classified below or the

composition of which exceeds any of the following

individual percentage composition limitations.

Whenever any photochemically reactive material or any

constituent of any organic material may be classified

from its chemical structure into more than one of the

following groups of organic materials it shall be

considered as a member of the most reactive group,

that is, the group having the least allowable percent

of the total organic materials.

A combination of hydrocarbons, alcohols

aldehydes, esters, ethers 

ketones having an

olefinic or cyclo—olefinic types sic of

unsaturation: 5 percent. This definition does

not apply to perchloroethylene or

trichloroethylene.

A combination of aromatic compounds with eight or

more carbon atoms to the molecule except

ethylbenzene: 8 percent.

A combination of ethylbenzene, ketones having

branched hydrocarbon structures or toluene: 20

percent.

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BACKGROUND

Ligma manufactures interior automotive parts for major

automobile companies at a plant in the City of Nashville,

Washington County, Illinois. The plant is located within an

industrial park at the northeast extreme of Nashville (Agency

Exh. 1); it employs 

240

people.

The Nashville plant is a new facility which was entirely

constructed and which commenced operation during 1988. Siting

and start—up of the Nashville plant were facilitated through the

efforts of the Illinois Department of Commerce and Community

Affairs (“DECCA”) (R. at 27). Among DECCA activities was

facilitation of contacts between Ligma and the Agency to assure

that the new facility could be granted construction and operating

permits required by various environmental regulations (R. at 29—

31). According to DECCA testimony, this effort originally

focused on the possibility that Ligma would have to make a

Prevention of Significant Deterioration (“PSD”) demonstration (R.

at 30—31; 41—43).

However, during review of Ligma’s operating permit

application it was discovered by the Agency that a bonding

material, Bostic F, intende~to be used by Ligma is a PRM

pursuant to Section 211.122 and that it would be emitted in

excess of the 8 lbs/hr limitation of Section 215.301. The Agency

therefore notified Ligma that an operating permit for processes

using Bostic F could not be issued absent the presence of control

equipment or the granting of variance by this Board. Although

the Agency has granted an operating permit authorizing the use of

an alternative formulation, Bostic L, Ligma contends that the

alternative formulation is inadequate to meet job specifications.

In its Petition, Ligma requested that the variance commence

September 1, 1988. This request was later amended to November 1,

1988, the date Ligma commenced manufacturing operations pursuant

to a contract with Ford Motor Company (Amended Petition at 5).

COMPLIANCE PLAN

Ligma intends to attain compliance by eliminating the PRM in

its bonding formulation and replacing it with water-based

The Agency’s conclusion is based on Bostic F containing 33.24

toluene. Bostic L, conversely, contains 15.3 toluene (Amended

Rec. at para. 6).

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material (Amended Petition at 4_5)2• Ligma contends that both

its customers and suppliers have been working diligently to

perfect a water—based bonding agent (Id. at 5) and that it is

“highly probable that water based material will be available for

use in Ligma’s operation during 1990” (Id.).

In the event that Ligma is unable to introduce water-based

solvents on or before October 1, 1990, Ligma commits to entering

into a contract for the installation of emission control

equipment which will enable it to be in compliance by October 1,

1991 (Amended Petition at 7). Hence, although Ligma intends to

achieve compliance by October 1, 1990, it requests an additional

year of variance to provide time to implement this fall—back

plan.

HARDSH I P

Ligma contends that immediate compliance or compliance at a

time sooner than the term of the variance would impose an

arbitrary or unreasonable hardship upon Ligma because there is no

currently available compliant bonding agent which can be

substituted 

for

Bostic F. Similarly, installation of emission

control equipment cannot be accomplished immediately. Thus,

absent grant of variance, Ligma could not lawfully continue with

its current production processes and levels.

Of the compliance options, Ligma believes that an acceptable

water-based substitute for Bostic F can be found or developed

within a relatively short time. Because the cost of this option

is minimal, Ligma prefers it over the emission control option;

the capital costs alone of an afterburner system approach $1

million (Petition at p. 45; Amended Rec. at para. 16). Thus,

Ligma contends that a requirement to install an emission control

system prior to giving the water-based bonding agent a fair

evaluation would constitute hardship.

ENVIRONMENTAL IMPACT

Ligma contends that grant of the requested variance will not

cause any adverse environmental impact (Amended Petition at 9)

Ligma specifically addresses the impact that its continued VOM

emissions would have on ozone production, noting that there has

“never been a threat of an ozone problem” in or about the City of

2 Prior to the filing of the Amended Petition, Ligma sought

alternatively to attain compliance by reformulation of its

organic—based bonding agent. This effort is apparently no longer

under consideration.

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Nashville (Id.; Petition at 40—42). Moreover, Washington County

is an attainment county for ozone.

Nevertheless, Ligma adds that, if an ozone threat were to

occur, it has prepared and filed with the Agency an Air Pollution

Episode Action Plan, under the terms of which Ligma will reduce

its emissions or even cease operations to avoid any threat to the

public health (Petition at 42).

The Agency agrees with the thrust of Ligma’s environmental

analysis, and concludes that:

After review of the Nashville area and the proposed

emissions it has been determined that a grant of

variance will not adversely affect the air quality in

the Nashville area. (Recommendation at para. 10)

The Agency also adds:

...

a grant of variance should not cause an

exceedence of the NAAQS for ozone in the Nashville

area. (Amended Rec. at para. 10).

CONCLUSION

Based on the facts in this record, the Board finds that

immediate compliance with the regulations, or compliance at a

time sooner than the term of the variance, would impose an

arbitrary or unreasonable hardship upon Ligma. The Board also

agrees with the parties that no significant environmental impact

will occur, assuming that compliance is timely forthcoming.

Accordingly, the variance will be granted, subject to conditions

consistent with this Opinion and the Illinois Environmental

Protection Act.

As regards the term of the variance, the Agency recommends

that variance be granted only until March 31, 1991. The Agency

points out that Ligma does not justify the need for the a full

year for installation of control equipment (Amended Rec. at para.

18). Rather, as the Agency notes, Ligma itself states that

fabrication and installation of control equipment would take six

to eight months (Petition at p. 47). The Agency further believes

that the difference is significant because the added four to six

months would encompass the 1991 ozone season. Ligma has not

responded to this Agency argument.

The Board believes that minimization of PRM emissions during

the 1991 ozone season is a necessary objective. In the absence

of proof that emission control equipment could not be operative

by March 31, 1991, the Board accordingly finds that compliance

with the regulations as 

that date would not impose an

arbitrary or unreasonable hardship upon Ligma.

I 01--—37

—6—

The Agency additionally recommends that a hearing be held on

the Amended Petition “due to the modification of the proposed

compliance plan and the significant increase in emissions”

(Amended Rec. at para. 20). Ligma specifically requests that no

additional hearing be held (Amended Petition at p. 9).

The Board finds that an additional hearing is not

warranted. All material facts necessary for the Board’s

determination in this matter are present in the record.

Additionally, the Board finds no material prejudice would result

absent an additional hearing.

The Board believes that the Agency’s concern respecting an

additional hearing may be related to Ligma’s responsibilities

regarding a PSD demonstration, pursuant to 40 CFP. 52.21. As the

Agency notes, Federal PSD rules may be applicable if emissions

exceed 250 tons per year (Amended Rec. at para. 12). The Board

notes that this is not a matter relevant to the instant variance,

and additionaly notes that the instant grant of variance in no

way insulates Ligma from the applicability of PSD rules.

This Opinion constitutes the Board’s findings of fact and

conclusions of law in this matter.

ORDER

Ligma Corporation (“Ligma”) is hereby granted variance from

35 Ill. Adm. Code 215.143, 215.301, and 215.304 for its facility

located in Nashville, Illinois, subject to the following

conditions:

1. Variance shall begin November 1, 1988 and terminate on

October 1, 1990, except as provided below.

2. If a water—based bonding material is not available for

use by Ligma by October 1, 1990, Ligma shall enter into

a contract to purchase and install appropriate control

equipment.

3. If control equipment is to be installed, a stack test

shall be conducted of the ovens to determine actual

emissions.

4. If control equipment is to be installed, the variance

period shall run until March 31, 1991.

5. During the term of variance emissions of VOM shall not

exceed 250 tons per year.

6. At no time during the term of the variance shall the

bonding agent contain more than 33.24 percent by volume

of toluene.

101—3~

—7—

7. Ligma shall submit reports every three months to the

Agency. The report shall detail compliance

developments, other developments relating to VOM

emission levels; weekly usage of adhesive by production

line; a list of suppliers contacted for possible

compliant adhesives with documentation, to include

copies of letters to and from suppliers contacted,

listing of samples provided by VOM content and test

results of said samples; a list of trade associations

contacted regarding possible compliant adhesives with

documentation, as noted above; a list of trade

publications and reviews consulted regarding possible

compliant adhesives; and total VOM emissions. These

reports shall be addressed to:

Mr. John Justice, Regional Manager

Division of Air Pollution Control

Illinois Environmental Protection Agency

2009 Mall Street

Collinsville, Illinois 62234

8. Within 45 days of the date of this Order, Petitioner

shall execute and forward to James J. O’Donnell,

Enforcement Programs, Illinois Environmental Protection

Agency, 2200 Churchill Road, Springfield, Illinois

62794—9276, a Certification of Acceptance and Agreement

to be bound to all terms and conditions of this

variance. The 45—day period shall be held in abeyance

during any period that this matter is being appealed.

Failure to execute and forward the Certificate within 45

days renders this variance void and of no force and

effect as a shield against enforcement of rules from

which variance was granted. The form of said

Certification shall be as follows:

CERTIFICATION

I (We),                       

hereby

accept and agree to be bound by all terms and conditions of the

Order of the Pollution Control Board in PCB 88-131, July 13,

1989.

Petitioner

Authorized Agent

Title

Date

101—39

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Section 41 of the Environmental Protection Act, Ill. Rev.

Stat. 1987 ch. lll~par. 1041, provides for appeal of final

Orders of the Board within 35 days. The Rules of the Supreme

Court of Illinois establish filing requirements.

IT IS SO ORDERED.

Board Member Jacob D. Dumelle concurred.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control

Board, hereby certify that the above ,qpinion and Order was

adopted on the /3~ day of   

1989, by a

vote of 

7—c2

~“

/)~ ~

Dorothy M.IGunn, Clerk

Illinois 1~ollution Control Board

101—40