ILLINOIS POLLUTION CONTROL BOARD
    June 22,
    1989
    JEFFERSON SMURFIT CORPORATION,
    Petitioner,
    v.
    )
    PCB 87—185
    ILLINOIS ENVIRONMENTAL
    PROTECTION AGENCY,
    Respondent.
    ROY M.
    HARSCH
    and DANIEL
    F.
    O’CONNELL, OF GARDNER, CARTON
    &
    DOUGLAS, APPEARED ON BEFIALF OF PETITIONER;
    AND
    JOSEPH
    R.
    PODLEWSKI,
    OF THE ILLINOIS ENVIROt’1MENT~LPROTECTION
    ASENCY,
    APPEARED ON BEHALF OF RESPONDENT.
    OPINION AND ORDER OF THE BOARD
    (by J. Anderson):
    This matter comes before the Board upon
    a
    request
    for
    variance filed by Jefferson Srnurfit Corporation (“Smurfit”),
    On
    November
    30,
    1987,
    as amended on January 20,
    1988,
    as secondly
    amended on February 23,
    1988 and
    as thirdly amended on November
    18,
    1988.
    In
    its third amended petition
    (November
    18,
    1998),
    Smurfit
    is requesting
    a variance from the Board’s regulations
    governing emissions from flexographic and rotogravure printing
    operations under
    35
    Ill.
    Adm.
    Code 215.401—215.407 and 215.245
    until December
    31,
    1989.
    PROCEDURAL HISTORY
    In response
    to
    a December
    3,
    1987 Board Order, Srnurfit filed
    an amended petition on January 20,
    1988.
    This amended petition
    advised
    the Board
    that Smurfit had
    filed
    a petition
    for site—
    specific relief from Section 215.245
    as
    a primary compliance
    method,
    with installation
    of control equipment
    as
    an alternative
    compliance method.
    However,
    Srnurfit did not address the
    challenge to the validity of Section 215.245 raised
    in its
    original petition, which
    the Board had required Smurfit
    to brief
    in
    its December
    3,
    1987 Order.
    By an Order
    of January
    21,
    1988,
    the Board noted Smurfit’s failure
    to address
    the issues raised
    in
    challenging
    the validity of Section 215.245 and again ordered
    Smurfit
    to brief
    those
    issues.
    In
    response to the Board’s January 21,
    1988 Order,
    the
    Agency filed
    a prehearing brief on February 19,
    1988 and Smurfit
    filed
    its brief
    on February
    23, 1988 with
    a second amended
    variance petition.
    Smurfit’s second amended petition asserted
    that the Board’s Subpart P rules were invalid because
    they were
    not properly adopted.
    (2d Amended Pet,
    at
    1).
    100—169

    —2—
    On June 16, 1988,
    the Board issued an Interim Order
    in
    regard to the issues discussed
    in Smurfit’s prehearing brief.
    In
    that Order
    the Board
    found
    that challenges
    to the validity of the
    regulations as applied
    are limited “within the variance
    proceeding
    to matters concerning uncertainty of meaning of
    the
    regulations.” (Jefferson Smurfit Corporation
    v.
    IEPA,
    PCB 87—185,
    June 16,
    1988 at 3).
    The Board
    also found
    that “such burden
    of
    proof
    as may exist in the instant matter resides with
    Petitioner.”
    (Id.).
    Finally,
    the Board
    found
    that
    the standard
    of review for this proceeding was arbitrary
    or unreasonable
    hardship as specifically provided
    for
    in the Environmental
    Protection Act
    (“Act”)
    and not technical feasibility or economic
    reasonableness
    as maintained by Smurfit.
    The Board
    then directed
    the Hearing Officer
    to proceed
    to hearing.
    In response to Smurfit’s
    third amended petition,
    the Agency
    filed
    its recommendation
    to grant
    the variance with conditions
    on
    December
    14,
    1988 and Smurfit
    filed
    a response
    to the Agency’s
    recommendation on December
    19,
    1988.
    Hearings
    on this matter
    were held on January 24,
    1989 and March 27, 1989;
    no members of
    the public attended either hearing.
    BACKGROUND
    Smurfit’s Bedford Park plant manufactures folding cartons
    at
    6550 South Lavergne Avenue
    in Chicago.
    Plant operations
    include
    printing by using
    a
    rotogravure press,
    which is the subject
    of
    this variance proceeding.
    Fumes
    and hot air are collected
    in the
    hoodirig at each printing station and vented through three
    roof
    stacks.
    Presently,
    there
    are no control devices on
    the
    rotogravure press.
    (3rd Amended Pet,
    at 2,3).
    According
    to the Agency,
    actual annual volatile organic
    material
    (“VO~1”) emissions from Smurfit’s
    rotogravure press were
    as follows:
    1984
    260
    tons per year
    (“TPY”),
    1985
    250 r~pyand
    1986
    297 TPY.
    The Agency could
    not provide
    1987
    or
    1988 VOM
    emission
    figures but Smurfit has estimated
    its 1997 annual VON
    emission rate
    to be
    in
    the vicinity of 300 tons.
    (Agency Rec.
    at
    6).
    Since Smurfit emits
    less than 1,000
    tons
    of VOM yearly,
    it
    was exempt from the Board’s emission limitations for rotogravure
    printing
    operations until November
    9,
    1987.
    (35 Ill.
    Adm. Code
    215.401,402).
    When the Board amended
    its regulations governing
    VOM emissions
    from rotogravure and flexographic printing
    operations,
    the amount
    of
    VOM
    emissions triggering the exemption
    from the
    requirements, of Section
    215.401
    for sources
    in ozone
    nzn—attainrn~nt
    areas
    decreased
    from
    1,000
    TPY
    to
    100
    TPY.
    (In
    r~:Prooos~d~ndm~nts
    to
    35
    111.
    Ad~.
    Code
    215:
    F.exo9rap:iic
    and
    Roto9ravure Printin~,R85—2l, Docket
    8;
    35
    Ill.
    Adm.
    Code
    215.245).
    Affected
    facilities were required to be
    in compliance
    by December
    31, 1987.
    Since Smurfit
    filed
    its original variance
    petition within
    twenty days
    of the effective date of Section
    215.245,
    the effect of
    that rule as
    it applies
    to Smurfit
    is
    100—170

    —3—
    stayed pending
    the disposition
    of this variance proceeding.
    (Ill.
    Rev.
    Stat.
    ch. 111—1/2, par.
    l038(b)(l987);
    35 Ill.
    Adm.
    Code 104.102).
    COMPLIANCE PLAN
    In its third amended petition, Smurfit states that
    it will
    bring
    its plant
    into compliance by December
    31,
    1989,
    by
    installing and operating
    an incinerator system.
    Smurfit
    anticipates
    an installation cost of $425,000, plus an annual
    operating cost of $35,000.
    (R,
    at
    15, March 27,
    1989).
    As alternative methods
    of compliance,
    Smurfit considered the
    utilization of
    a solvent recovery system or the conversion of
    its
    operations
    to
    a water—based
    ink,
    (3rd Amended Pet,
    at 7).
    Smurfit determined that use
    of
    a solvent
    recovery system was not
    feasible at
    its olant as
    it has a relatively small press that
    uses
    a variety of solvents.
    Smurfit contends
    that the most
    common solvent recovery system,
    a carbon absorption system, works
    best
    in
    a large plant utilizing
    a single non—water soluble
    solvent
    in
    its
    ink.
    (3rd Amended Pet,
    at
    7).
    Similarly, Smurfit
    rejected the possibility of converting to water—based inks,
    alleging that
    it was neither technically feasible nor
    economically reasonable to
    so convert.
    HARDSHIP AND ENVIRONMENTAL IMPACT
    Smurfit’s Bedford Park plant
    is located
    in Cook County,
    a
    non—attainment area for ozone.
    The two ozone monitors located
    closest
    to Smurfit’s Bedford Park facility are
    in Cicero
    (1850
    ‘3.
    51st St.)
    and Lemont
    (729 Houston).
    According
    to the Agency,
    neither monitor
    reported a violation of the ozone ambient air
    quality standard
    (“AAQS”)
    in
    1986.
    At least
    one violation of the
    ozone AAQS was reported
    at each monitor
    in 1987 and two
    violations were
    reported at
    the Cicero monitor
    in
    1988.
    (Agency
    Rec.
    at
    12).
    The Agency also states that
    “a
    s
    a major
    hydrocarbon source
    in an ozone non—attainment
    area,
    Smurfit
    contributes,
    to
    an unquantified degree,
    to the
    ‘frequent,
    pervasive and substantial’
    violations
    of the ozone AAQS
    in
    northern Illinois.”
    (Id.).
    The Board notes that although both Smurfit’s
    third amended
    petition and
    the Agency’s recommendation state
    that Smurfit will
    come into compliance
    by installing
    a catalytic incinerator,
    the
    term “catalytic” was deleted by Smurfit
    at the March
    27,
    1989
    hearing.
    Since
    the Agency did not object
    to this change at the
    hearing
    or subsequently,
    the Board assumes that the efficiency
    rate of these
    incinerators
    is essentially the same.
    The Agency states
    in its recommendation that
    it “agrees with
    Smurfit
    that compliance with the VOM emission limitations of
    Section 215.401 will create
    an unreasonable hardship.”
    (Agency
    Rec.
    at
    15).
    According
    to the Agency,
    immediate compliance would
    require Sniurfit to either
    reduce operations so that emissions do
    100—17
    1

    —4—
    riot
    exceed
    100 tons annually or shut down its printing
    operations.
    The Agency points out that since
    “more than 75
    of
    all products manufactured
    at Smurfit are printed using
    the
    rotogravure press,
    a shutdown of that press would very likely
    result
    in
    a shutdown of the entire plant.”
    (Id.).
    Similarly,
    the
    Agency points out that decreasing production enough
    to reduce VOM
    emissions
    to 100 TPY or less would also have an adverse impact
    upon plant operations, possibly requiring Smurfit
    to shut down.
    The Agency states
    in
    its recommendation
    that the requested
    variance should
    be granted “because an unreasonable hardship will
    exist
    in the absence
    of
    a variance and Smurfit
    is committed to
    a
    definite program designed
    to achieve compliance
    by a date
    certain.”
    (Agency Rec.
    at
    18).
    CONCLUSION
    Although the Agency’s recommendation
    indicates that there
    is
    some environmental
    impact,
    that impact
    is not resolved by the
    Agency except to
    the extent that Smurfit does have
    a definite
    compliance plan
    to be achieved relatively soon,
    by December 31,
    1989.
    The Board
    notes with special concern Srnurfit’s
    contribution
    to the ozone violations.
    However, based on the
    record before
    it, the Board
    finds
    that Smurfit
    has presented
    adequate proof that immediate compliance with Sections 215.401—
    407 and Section 215.245 would
    impose an arbitrary or unreasonable
    hardship upon Smurfit.
    The Board will grant
    the requested
    relief,
    subject
    to conditions.
    The Board notes
    the Agency’s concern in
    its recommendation
    that Smurfit’s ambitious
    schedule leaves little room for delay or
    error.
    Several deadlines,
    in addition
    to those conditions
    recommended
    by the Agency, have been
    included
    in the Order
    following
    this Opinion
    to ensure Smurfit’s adherence
    to
    its
    timetable.
    In addition,
    Smurfit’s
    stay
    from
    the Board’s
    regulations
    in
    Section
    215.245 ends upon granting this variance;
    in
    case
    of
    delay,
    Smurfit
    is
    forewarned
    to
    timely
    file
    a
    petition
    for
    variance,
    allowing
    120
    days
    for
    a
    decision
    by
    the
    Board.
    This
    Opinion
    constitutes
    the
    Board’s findings
    of
    fact and
    conclusions
    of law
    in this matter.
    ORDER
    1.
    Jefferson Smurfit Corporation
    (“Smurfit”)
    is hereby granted
    variance from 35 Ill.
    Adm. Code
    215,
    Subpart P (35
    Ill.
    Adm.
    Code 215.401—215.407)
    and
    35 Ill.
    Adm.
    Code 215.245
    for
    its
    Bedford Park facLlity,
    subject
    to
    the following conditions:
    ~.,
    This
    var iance
    terminates
    on
    December
    31,
    1939
    or
    when
    compliance
    with
    35
    ill.
    Adm.
    Code
    215.401—215.407
    and
    215.245
    is
    achieved,
    whichever
    occurs
    first.
    B.
    Installation
    of
    the
    new
    incinerator
    shall
    begin
    no
    later
    than
    September
    15,
    1989.
    100—172

    —5—
    C.
    Installation of the new incinerator shall
    be completed
    no later than December
    15,
    1989.
    D.
    The new incinerator
    shall be operable and Smurfit
    shall
    be
    in compliance with 35
    Ill.
    Adm. Code 215,
    Subpart P
    (35 Ill.
    kdm. Code
    215.401—407)
    and 35
    Ill.
    Adm.
    Code
    215.245 no later
    than December
    31,
    1989.
    E.
    Smurfit
    shall give thirty
    (30)
    days notice prior
    to the
    expected date of any stack
    test
    to
    the Agency’s regional
    office and Emission Source Specialist at the Agency’s
    Maywood address provided above.
    The Agency’s Emission
    Source Specialist shall
    be further
    notified within
    a
    minimum of five
    (5) working days of the exact date,
    time,
    and place
    of these
    tests,
    to enable Agency to
    witness these
    tests.
    F.
    During the term of this variance, Smurfit shall submit
    quarterly written reports to the Agency detailing
    all
    progress made
    in achieving compliance with
    35
    Ill.
    Adm.
    Code 215,
    Subpart P at its plant located
    at
    6550 South
    Lavergne Avenue,
    Chicago, Illinois.
    The first quarterly
    report will
    be due thirty (30) days
    from the date
    of
    this Order.
    These quarterly reports shall
    include
    monthly VOM emission data from the press department.
    The first quarterly report shall
    also include copies
    of
    material data sheets showing
    the composition
    (in terms
    of percentage
    of solid solvent and water)
    of all
    inks
    and coatings used during the rotogravure printing
    processes.
    All
    of the above information shall be
    submitted
    to the Agency at the following addresses:
    Manager, Permit Section
    Division of Air Pollution Control
    Illinois Environmental Protection Agency
    1340 N. Ninth Street
    Springfield,
    Illinois
    62702
    Manager, Field Operations Section
    Division
    of Air Pollution Control
    Illinois Environmental Protection Agency
    1701
    5.
    First Avenue
    Suite 600
    Maywood,
    Illinois
    60153
    2.
    Within forty—five
    (45)
    days after
    the date
    of this Order,
    Smurfit
    shall
    execute
    and
    send
    to:
    100—173

    —6—
    Mr. Joseph R.
    Podlewski,
    Jr.
    Enforcement Attorney
    Illinois Environmental Protection Agency
    1701 S.
    First Avenue
    Suite 600
    Maywood, Illinois
    60153
    A certification
    of
    its acceptance of this variance by which
    it agrees
    to be bound by
    its terms and conditions.
    This forty—five
    (45)
    day period shall
    be held
    in abeyance
    for any period which
    this matter
    is appealed.
    Failure
    to execute
    and forward
    the Certificate within
    45 days renders
    this variance
    void
    arid of
    no force and effect
    as
    a shield against enforcement
    of
    rules from which variance was granted.
    The form of the
    certification shall
    be
    as follows:
    CERTIFICATION
    I,
    (We), _________________________,
    having
    read the Order
    of the Illinois Pollution Control Board,
    in PCB 87—185 dated June
    22,
    1989,
    understand
    and accept the said Order, realizing that
    such acceptance
    renders all terms and conditions
    thereto binding
    and enforceable.
    Petitioner
    By:
    Authorized Agent
    Title
    Date
    Section
    41 of
    the Environmental Protection Act,
    Ill.
    Rev.
    Stat.
    1997
    ch.
    111 1/2,
    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
    Oi~DE~ED.
    100—174

    —7—
    I, Dorothy M. Gunn, Clerk
    of the Illinois Pollution Control
    Board, hereby certify that the a~oveOpinion and Order was
    adopted on the ~
    -~
    ~/day
    of
    _______________,
    1989,
    by
    a vote
    of
    _____________.
    /
    ~
    ~
    ~
    Dorothy M.
    Gu9’n,
    Clerk
    Illinois Pollution Control Board
    100— 175

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