ILLINOIS POLLUTION CONTROL BOARD
    January
    19, 1989
    RIVERSIDE LABORATORIES,
    INC.,
    )
    )
    Petitioner,
    v.
    )
    PCB 87—62
    ILLINOIS ENVIRONMENTAL
    )
    PROTECTION AGENCY,
    )
    Respondent.
    MS.
    SUSAN FRANZETTt AND MR.
    JAMES
    J.
    DENAPOLI, APPEARED ON BEHALF
    OF PETITIONER,
    RIVERSIDE LABORATORIES,
    INC.;
    MS.
    DIANE ROSENFELD LOPATA AND MR.
    JOSEPH
    PODLEWSKI APPEARED ON
    BEHALF OF RESPONDENT,
    ILLINOIS ENVIRONMENTAL PROTECTION AGENCY.
    OPINION OF THE BOARD
    (by J.D. Dumelle):
    This Opinion supports the Board
    Order of January
    5,
    1989.
    This matter comes before
    the Board upon Petitioner’s
    May
    7,
    1987,
    filing of a Permit appeal.
    Respondent,
    the Illinois
    Environmental Protection Agency (Agency),
    denied Petitioner’s
    request for an operating permit renewal on April
    3,
    1987 and
    Petitioner has challenged that denial pursuant
    to
    35
    Ill. Adm.
    Code 105.102.
    BACKGROUND
    The uncontested facts are as
    Eollows:
    Riverside owns and operates
    a manufacturing plant
    at
    411
    Union Street, Kane County,
    Geneva,
    Illinois.
    The facility
    is
    a
    one—story building
    of masonry and steel,
    consisting
    of 40,000
    square feet; approximately 10,000 square
    feet is leased
    to
    another
    business enterprise.
    Petitioner currently employs
    21
    people at the Geneva
    facility, resulting
    in an annual payroll of
    $700,000.
    At this plant Petitioner saturates materials composed mainly
    of cellulose fibers with
    a resin and solvent mixture through the
    use of a
    ‘dip duration’ process.
    The result
    is an
    ‘intermediate
    product’
    which
    is 40—80 percent resin by weight.
    This product
    is
    then sold and
    further processed by exposure
    to heat and pressure
    in enclosed molds which convert the saturated resin
    fiber into
    a
    hard, chemically resistant,
    therrnoset plastic which
    is used
    in
    95—273

    —2—
    furniture, shelving and exterior marine protective products.
    Petitioner utilizes four separate dip saturation product lines.
    (Petition pp.
    2—5.)
    Petitioner
    first submitted
    an application for operating
    permit
    to the Agency on April
    5,
    1972.
    The request concerned
    five resin impregnation lines.
    On May
    23,
    1973,
    the Agency
    issued
    the requested operating permit.
    (Petition p.
    4.)
    Petitioner’s permit
    was reviewed
    in
    1977 and again
    in 1982.
    (Resp.
    Brief p.
    4.)
    During the latest re—application process,
    Petitioner certified
    that all previously submitted data was
    still
    true and correct and resubmitted its application
    for
    operating permit
    on February
    27,
    1987.
    On April
    3,
    1987,
    the
    Agency denied the permit application;
    and on May
    7,
    1987
    Petitioner
    filed this appeal.
    The Agency denial
    of April
    3,
    1987 referenced three Board
    regulations
    as the reasons why the request was being denied.
    The
    reference regulations were
    35
    111. Adm Code 201.157,
    201.160 and
    215.204(c).
    Pursuant
    to notice, hearings were held
    on July
    13, and
    14,
    1988
    in Geneva,
    Illinois.
    At hearing Petitioner called three
    witnesses.
    The first,
    Mr. Kenneth Guilette,
    is the president of
    Riverside Laboratories,
    Inc.;
    the second,
    Mr. Christopher
    Romaine,
    is the permit analyst who reviewed Petitioner’s
    application; the third witness was Mr.
    Daniel Goodwin,
    a private
    consultant.
    Respondent called only Mr. Romaine.
    During the
    hearing,
    four non—party,
    private citizens appeared and submitted
    their
    statements into the record.
    These persons were Ms. Jane
    McMurray,
    Mr. John Schneider,
    Mr. Robert Keriyon and Mr.
    John
    Brayton.
    Petitioner’s first witness, Mr. Kenneth Guilette, holds
    a
    Bachelor’s Degree of
    Science
    in Chemical Engineering and
    an
    M.B.A.
    (R.
    p.
    24.)
    He has extensive experience
    in chemical
    and
    resin
    industries
    since. 1963,
    including work at Dow Chemical
    Company, Northern Petrochemical and Mobil
    Chemical.
    (R.
    25.)
    In
    1986
    Mr. Guilette acquired the assets
    of Riverside
    Laboratories,
    Inc.
    and became president.
    Mr. Guilette fully described
    the
    operations,
    the facility and the permit history.
    (R. pp.
    26—31.)
    Mr.
    Guilette
    testified
    that Petitioner manufactures a highly
    specialized product:
    “The company produces thermosetting laminating
    papers.
    A thermoset material,
    as defined
    in
    the Modern Plastics Encyclopedia
    is
    a material
    that will undergo
    a chemical reaction by the
    action of heat, catalysts,
    ultra—violet light,
    etc...
    leading
    to
    a material which
    is
    in an
    infusable and crosslinked state.
    95—274

    —3—
    Additionally, crosslinking
    is defined
    as the
    formation of chemical bonds between polymer
    molecules.
    When crosslinking
    is extensive,
    as
    it
    is
    in the thermosetting resins used by
    Riverside the reaction forms one infusable,
    insoluble super molecule of all
    the polymer
    chains.
    In addition,
    the crosslinking
    reaction decreases the specific volume of the
    polymer mass and causes some shrinkage to
    occur.
    The crosslinking results
    in
    a
    thermoset polymer
    which
    is infusable,
    insoluble
    and
    extremely
    hard
    and
    rigid.
    Riverside’s product
    is
    typically 50
    to 70
    resin material.
    The balance is paper.
    The
    paper serves only as
    a decorative carrier
    for
    the product’s
    resin
    system.
    The resin
    is
    reactive and contains heat sensitive catalysts
    which, during
    subsequent laminating operation
    by Riverside’s customers, causes the resin to
    crosslink.”
    Riverside itself does not perform any
    laminating operations.
    But rather
    the
    thermosetting laminating papers produced by
    Riverside are an intermediate product which
    is
    used by customers
    for the production of
    laminated panels.
    Our customers use pressure
    and heat
    to bond
    the resin impregnated
    laminating papers
    to
    a wood based substrate
    such
    as particle board
    or plywood.
    In
    addition
    to being decorative, the laminating
    paper
    gives
    the
    final panel
    a hard, durable
    laminate surface which exhibits superior
    resistance
    to scuffs,
    stains, light, heat and
    moisture.
    The finished laminate panel
    is used
    in many applications
    in
    the construction,
    furniture, mobil home and remanufactured
    products
    industries.
    Most applications for
    these panels are kitchen and bath cabinets,
    store fixtures, storage systems, commercial
    and
    retail point of purchase displays,
    shelving
    and
    furniture.”
    (R. pp
    30—33.)
    Mr. Guilette further
    explained and described the raw
    materials
    used
    as
    the
    following:
    a special saturation grade
    paper
    in roll
    form; polyester resin;
    monomer;
    flow control
    agents; catalysts;
    inhibitors;
    release agents; adhesion promoters
    and solvents.
    (R.
    36.)
    Mr.
    Guilette further described
    Riverside’s manufacturing as a 4—step process consisting
    of
    solution preparation, dip saturation, drying and
    rewinding.
    95—275

    —4—
    Upon saturation
    the impregnated web enters
    a
    60
    ft.
    long
    drying oven which removes the solvents via evaporation.
    (R.
    42.)
    There are two temperature control zones
    in the dryer.
    The
    first stage
    is controlled at 170°Fto avoid formation of
    blisters
    on the surface of the saturated web.
    The second zone
    is
    controlled at
    less than 200°F(if the temperature were
    to exceed
    220°Fthe catalysts would be thermally activated causing
    the
    resin system
    to crosslink while
    in the oven).
    The saturated web
    is drawn through the oven at
    a production rate of 20
    to 40 feet
    per minute.
    (R.
    45.)
    Upon leaving the oven the saturated web is
    drawn through
    a cooling section where
    it
    is allowed
    to cool
    to
    approximately room temperature.
    It
    is then wound onto
    a
    finished
    product roll.
    To avoid
    the layers of paper
    sticking
    to
    themselves the paper
    is interleafed with
    a sheet of
    polyethlene.
    (R.
    46.)
    At this point
    the product
    is sold
    to
    customers who process the product further.
    Mr. Guilette testified that Riverside has examined
    four
    different methods of reducing VOC emissions.
    The four methods
    were reformulating
    the coating solution,
    thermal incineration,
    catalytic incineration and carbon absorption.
    These were all
    rejected for reasons of practicality, costs and safety.
    (R.
    p.
    63.)
    Petitioner next called
    Mr. Christopher Romaine,
    the permit
    analyst who reviewed the application and made the initial
    decision
    to deny the requested permit.
    Mr.
    Romaine was called
    as
    an adverse witness.
    (R.
    87.)
    Mr.
    Romaine testified that he is
    currently the manager of the New Source Review Unit
    in the Permit
    Section
    in the division of Air Pollution Control.
    (R. 88.)
    Mr.
    Romaine has been involved
    in
    5
    to
    10 permit
    renewals since
    1980
    at the rate of approximately one permit per year.
    Mr.
    Romaine
    stated
    that in preparing
    for
    this permit analysis he reviewed
    Board
    regulations and the record
    of the RACT
    I proceeding.
    (Contained
    in rulemaking proceeding R78—3, R78—4)
    (R.
    99.)
    This
    application was reassigned
    to Romaine from
    a Mr.
    Punzak,
    a
    senior
    engineer
    in
    that division
    (R.
    93), who prepared
    a draft permit
    denial, which was already
    in the file when Mr. Romaine was
    reassigned
    to
    the case.
    (R.
    106.)
    Mr. Romaine further
    stated
    that
    a final denial letter was ultimately issued within
    30 days
    of receipt of the application.
    (R.
    106.)
    Mr. Romaine explained
    his reasons
    for denial and his calculations
    regarding VOM
    emissions at
    the plant.
    (R.
    113,
    125.)
    Romaine further
    explained his analysis into the meaning of
    the words
    ‘surface’
    and
    ‘coating’
    as these words are used
    in Board regulations.
    (R.
    143.)
    Ultimately Mr. Romaine stated that Riverside must reduce
    its emissions by 34.5
    in order
    to comply with the paper coating
    limitation
    for VOMs.
    (R.
    150.)
    Finally,
    Petitioner called
    Mr. Daniel
    J.
    Goodwin, President
    of Goodwin and Associates,
    a consultant
    for Riverside.
    Mr.
    Goodwin holds a B.S.
    in engineering and
    an M.B.A. and worked
    for
    95—271

    —5—
    the Illinois Environmental Protection Agency from 1971 until
    1984
    in both Water
    and Air Pollution Divisions.
    (R.
    177.)
    Goodwin testified that in
    September of
    1985 Goodwin and
    Associates was retained by Petitioner and asked
    to do the
    following:
    1.
    Perform an
    independent evaluation of the
    applicability of
    35
    Ill. Adm.
    Code
    215.204(c).
    2.
    Identify pertinent previous
    determinations by
    IEPA concerning
    the
    applicability of 215.204(c).
    3.
    Serve
    as expert witness
    in
    a formal
    proceeding
    involving his findings related
    to 215.204(c).
    CR.
    178.)
    Mr. Goodwin concluded
    that
    Riverside Laboratories,
    Inc.,
    is
    not
    a paper coating operation regulated by
    35
    Ill. Mm.
    Code
    215.204(c).
    (R.
    179.)
    In explaining
    his analysis Mr. Goodwin
    described his analytical scheme
    as one beginning with the actual
    language of the regulation; proceeding
    to a review of similar
    and
    dissimilar
    conclusions previously made by the Agency; and
    continuing
    through
    a review of technical feasibility and economic
    reasonableness of
    a
    regulation.
    (R.
    181.)
    In reviewing
    the language of the
    regulation Goodwin noted
    that
    the rule applies
    to “paper
    lines”:
    “A coating line
    is
    defined as
    an operation when
    a surface coating
    is applied
    to
    a
    material
    and subsequently dried
    or cured.”
    The term ‘surface
    coating’
    is not ‘defined
    in the Board
    regulations.”
    (R.
    185.)
    Goodwin testified that Riverside does not merely coat paper but
    saturates
    it, thereby creating
    a resin matrix which surrounds the
    cellulose fibers from one surface,
    through the paper web
    to the
    other
    surface without interruption.
    Goodwin noted that
    Riverside’s product is not
    a film and the resin
    is not applied as
    a
    thin layer, but rather
    “as
    a matrix which surrounds and
    encloses
    the fibers of
    the paper
    in
    a continuous mass which
    is
    more than twice as thick as typical
    coated paper.”
    (R.
    186.)
    Goodwin next examined similarities and dissimilarities of
    Riverside’s product
    to typical members of the regulated community
    and process.
    Goodwin noted similarities such as
    a paper
    substrate that
    is coated with
    a solid material which
    is dissolved
    in solvent; and the coated sheet
    is dried
    in
    an oven and then
    wound
    into rolls.
    Goodwin highlighted
    the following differences
    between Riverside and
    a ‘typical’
    paper
    coater:
    1.
    Riverside uses saturation grade paper.
    This paper
    is designed specifically to be
    95—277

    —6—
    amenable
    to
    complete
    saturation
    during
    the
    dip
    application
    procedure
    employed
    by
    Riverside.
    Technical
    properties
    of
    saturation
    grade
    paper
    differ
    substantially
    from
    other
    grades
    of
    paper
    commonly
    coated.
    2.
    The
    method
    of
    resin
    application
    is
    unusual.
    In
    the
    Riverside
    case,
    the
    paper
    web
    is
    passed
    through
    a
    “dip
    tank”
    ——
    i.e.,
    a
    trough
    filled
    with
    resin
    solution.
    ~hi1e
    this
    application
    method
    may
    not
    be
    unique
    in
    Illinois,
    it
    is
    so
    uncommon
    that
    it
    is
    not
    described
    in
    any
    of
    USEPA’s
    CTGs
    or
    in
    the
    IEPA Technical
    Support
    Document.
    The
    dip
    tank
    method
    is
    necessary because complete saturation
    of
    the
    paper
    is
    essential.
    Dip
    tanks
    ordinarily
    are
    not
    used
    for
    paper
    coating
    because
    saturation
    of
    the
    paper
    is
    usually
    undesirable.
    3.
    Riverside
    coats
    both
    sides
    of
    the
    paper
    simultaneously.
    Typically,
    paper
    coating
    processes
    coat
    only
    one
    side
    at
    a
    time.
    in
    what
    amounts
    to
    separate
    coating
    and
    drying
    operations.
    4.
    The
    saturated
    web
    leaving
    the
    Riverside
    line
    is
    6—12
    mils
    in
    thickness,
    which
    is
    considerably
    thicker
    than
    most
    coated
    paper
    products.
    5.
    The
    ratio
    of
    the
    weight
    of
    the
    paper
    to
    the
    weight
    of
    the
    resin
    in
    the
    finished
    product produced by Riverside is much
    lower
    than
    for typical coated
    papers.
    For Riverside’s production,
    the paper
    generally comprises only 30—50 percent
    of
    the product weight, while
    the
    typical
    coated
    paper
    is
    90
    percent
    paper.
    6.
    The
    presence
    of
    silicone
    mold
    release
    agents
    in
    the
    impregnating
    solution
    used
    by
    Riverside
    renders
    catalytic
    incineration infeasible and poses design
    and
    maintenance
    problems
    for
    thermal
    incineration
    and
    carbon
    absorption
    as
    add—on
    control
    methods.
    While
    some
    of
    the
    paper
    coating operations that clearly
    do fall within
    the intended scope of
    applicability
    of
    the
    rule
    also
    use
    95—278

    —7—
    silione
    release
    agents,
    this
    is
    not
    the
    case
    for
    most
    of
    the
    paper
    coaters.
    7.
    Riverside’s
    impregnation
    solution
    contains diallyl phthalate
    (DAP),
    a
    reactive monomer which produces
    crosslinking
    of
    the
    polymeric
    molecular
    chains
    during
    the
    bonding
    of
    the
    laminating
    paper
    to
    the
    wood
    substrate
    by
    Riverside’s
    customers.
    It
    is
    believed
    that
    presence
    of
    diallyl
    phthalate
    in
    the
    oven
    exhaust
    gas
    stream
    may
    pose
    a
    serious
    problem
    of
    fouling
    of
    the
    activated carbon
    if
    a carbon absorption
    control system were used.
    The presence
    of
    DAP
    in
    the
    exhaust
    stream,
    therefore,
    differentiates the Riverside process from
    most paper coaters
    in an
    important way.
    8.
    There
    is
    no
    curing
    of
    the
    resin
    in
    the
    drying process;
    rather, the curing
    takes
    place
    in a subsequent process operated by
    Riverside’s customers.
    Usually, curing
    i.e.,
    polymerization
    and/or
    crosslinking
    of
    the
    resin
    ——
    takes
    place
    in
    the
    drying
    oven
    of
    the
    coating
    line.
    9.
    The
    rate
    of
    drying
    in
    the
    Riverside
    process
    is
    diffusion
    limited,
    not
    evaporation limited, due to the thickness
    of the saturated
    web.
    This means that an
    increase
    in drying air temperature or
    flow would have little effect on the
    drying
    rate.
    Most paper coating
    operations
    are evaporation limited.
    10.
    Typically, paper coating ovens operate
    in
    a temperature
    range up
    to 450
    Fahrenheit,
    The maximum drying
    temperature
    for the Riverside
    process
    is
    about
    200 Fahrenheit,
    because the
    DAP and
    catayst
    in
    the saturating solution will
    cause further polymerization and
    crosslinking above
    that temperature.
    This lower
    temperature would
    result
    in
    increased supplemental fuel usage
    if
    thermal
    incineration of VOC emissions
    would
    be installed.
    11.
    ~t
    comparatively large volume of air per
    unit of production
    is passed through the
    Riverside ovens.
    This
    is necessary to
    95—279

    —8—
    prevent
    occurrence
    of
    pockets
    of
    explosive solvent air mixtures.
    A large
    volume
    of
    air
    also
    facilitates
    uniform
    drying.
    This
    large
    volume
    of
    air
    leads
    to relatively high costs
    for add—on
    control
    equipment.
    12.
    The concentration of solvent vapor
    in
    the
    oven
    exhaust
    gas
    stream
    is
    low.
    Because
    of this,
    the supplemental
    fuel cost for
    a
    thermal
    incineration system would b~
    relatively great.
    13.
    The speed
    of movement of Riverside’s
    saturated web through
    the drying oven
    is
    relatively slow,
    due
    to the thickness of
    the saturated web and
    the resulting low
    rate of mass—transfer of solvent
    into the
    drying
    air.
    14.
    As the dried laminating
    paper
    is wound
    onto the take—up roll after emerging
    from
    the oven,
    Riverside interleaves
    polyethylene film with the laminating
    paper
    to prevent adhesion of the layers
    of the finished product on the
    roll.
    This
    is necessary because of the slight
    stickiness of
    the product.
    The
    interleaving
    of coated
    paper with
    polyethylene
    is an expensive measure and
    it
    is not commonly done with coated paper
    products.
    15.
    Fugitive emissions of VOC due
    to solvent
    evaporation
    in
    storage and handling
    comprise about
    10 percent of
    the total
    VOCs used.
    This
    is lower
    than the usual
    fraction of fugitive losses due to
    equipment design and material handling
    methods established
    for material
    conservation and fire safety reasons.
    This reduces
    the opportunity for
    relatively easy,
    cheap,
    reductions
    in
    fugitive emissions.
    Fugitive emissions
    for coating plants are usually about
    30
    percent
    of
    total solvent losses.
    16.
    Riverside’s product
    is
    an intermediate
    product which cannot be used
    for
    its
    intended purpose without extensive
    further processing
    by the customer, using
    costly specialized
    equipment.
    This
    95—280

    —9—
    additional process
    includes
    a chemical
    transformation which
    is essential
    to the
    ultimate use of the product.
    Most coated
    papers are suitable
    for ultimate use as
    they come off the coating
    line,
    and
    require only cutting and
    forming.
    Further chemical
    transformation of
    the
    coating material
    is
    rare.
    17.
    Riverside’s products have
    a definite
    shelf life of six months, and
    then only
    if storage
    temperatures are kept below 70
    Fahrenheit.
    Most coated
    paper products
    have
    an indefinite shelf
    life.
    In summary, Goodwin concluded “the cumulative weight of all
    of these differences constitutes a compelling argument that the
    Riverside process
    is not ‘paper coating’
    within
    the
    intent of the
    rule.”
    (R.
    194.)
    Additionally, Goodwin stated
    that it was
    exactly these differences
    (in operating process)
    that rendered
    most VOM
    reducing options
    infeasible; and
    he explained
    four
    methods reviewed; thermal incineration, catalytic incineration,
    carbon adsorption,
    and coating reformulation.
    (R.
    195.)
    Goodwin
    concluded that “there
    is
    no technology available that will
    clearly enable Riverside Laboratories
    to comply with
    a
    2.9
    pound/gallon VOC emission unit for each of
    its lines.”
    (R.
    197.)
    Finally, Mr. Goodwin examined two other facilities that IEPA
    has determined
    are not paper coating operations and attempted to
    analogize
    these
    to this case at issue.
    (R.
    203.)
    In explaining
    the difference between his conclusion
    and
    Mr.
    Romaine’s, Goodwin
    stated that Mr. Romaine’s analysis failed
    to look beyond
    the
    language of the regulation
    to find the Board’s ultimate intent.
    (R.
    206.)
    At hearing and
    in
    its brief,
    the Agency objected
    to
    the
    introduction of Goodwin’s testimony claiming
    that the information
    contained
    therein was not made available
    to
    the Agency and
    therefore
    inadmissible.
    In support of this contention the Agency
    cited City of
    East Moline
    v.
    !EPA,
    PCB 86—218, decided
    September
    8,
    1988.
    To this extent
    the Agency’s reliance
    is misplaced.
    Petitioner’s Exhibit No.
    9 comprises an exhibit contained
    in
    the Agency Record.
    As such this document was
    in the Agency’s
    possession when making
    its decision on the permit application.
    Goodwin’s
    1985 report contains detailed
    information on
    Riverside’s Manufacturing operations; compares those operations
    to typical paper coating operations;
    and contains Goodwin’s
    study,
    review and explanation of his conclusion that Riverside
    was not subject
    to
    the papercoating regulations set
    forth at
    35
    Ill. Mm.
    Code 215.204(c).
    95—281

    —10—
    In reviewing the
    original
    (1985)
    report, which
    the Agency
    already possessed,
    and comparing this to Goodwin’s
    17 point study
    presented at hearing, the Board
    finds that the
    17 point study and
    explanation was merely
    a
    further analysis of
    facts already
    presented
    to the Agency.
    The 1985 study contains data explaining
    Riverside’s process, other
    similar and dissimilar processes and
    further
    analyses differences and distinctions.
    In large measure
    this
    is identical
    to Goodwin’s
    17 point study and explanation.
    The Agency has failed to identify any facts set forth
    at hearing
    which were not
    in the 1985 report.
    An expert’s analysis
    of facts previously submitted
    to
    the
    Agency are not inadmissible pursuant to East Moline, supra.
    This Board is capable of discerning
    a subsequent reasoned
    analysis from an attempt
    to supplement
    a permit record.
    In this
    case Goodwin’s analysis does not set forth new facts uripossessed
    by the Agency when making
    its permit decision.
    Thus
    it
    is
    admissible.
    Respondent called
    Mr. Christopher Romaine as its only
    witness.
    Mr.
    Romaine was
    the permit analyst who reviewed the
    application
    in
    1987.
    Mr.
    Romaine
    is currently the manager
    of the
    New Source Review Unit and has held that position
    for three or
    four years.
    (R.
    268.)
    Mr.
    Romaine holds
    a bachelor’s degree
    in
    engineering.
    (R.
    315.)
    Mr.
    Romaine further
    stated that
    petitioner’s original application package demonstrated compliance
    with applicable regulations.
    In responding
    to
    Mr. Goodwin’s review of Romaine’s
    report,
    Romaine testified that he did not believe
    that differences
    in
    the
    ~iethodof applying
    the resin
    to
    the paper web was significant.;
    although
    he noted dip saturation was “an uncommon method,
    certainly.”
    (R 304.)
    Likewise ~4r.Romaine testified
    that he did
    not attribute significance
    to the fact that Riverside’s product
    leaves
    the plant
    in an “intermediate state”
    nor
    was Mr. Romaine
    convinced by the fact that since Riverside’s ovens operate
    at
    a
    (relatively) low temperature
    it shows that
    it was not
    intended
    to
    be regulated by
    the paper coating rules.
    Mr. Romaine further
    explained petitioner’s status
    in
    the standard
    industrial
    classification
    (SIC)
    arid Illinois Manufacturing Directory.
    Mr.
    Romaine further
    stated that Riverside was sent
    a
    “minor
    permit renewal
    form”
    (which
    is
    a short document basically
    requesting
    the applicant
    to certify that
    all previously submitted
    data
    is
    still accurate)
    because the Agency did not consider
    Riverside to be capable of emitting
    in excess of
    25 tons of VOM
    per year.
    (R.
    358.)
    As noted
    above,
    four members of the public attended the
    hearing and entered their comments
    into the record.
    First,
    Ms.
    Jane McMurray testified against relaxing
    the emission controls at
    95—282

    —11—
    Riverside.
    She described
    the neighborhood
    as residential
    (“your
    typical neighborhood
    ...
    with lots of
    kids and
    ...
    Wheeler Park
    to the east”).
    (R.
    325.)
    Ms. McMurray testified that sometimes
    her eyelids get swollen and she believes this to be caused by
    Riverside.
    On cross—examination Ms. McMurray admitted that there
    are
    also
    an
    auto
    body
    shop
    and
    other
    coating
    operations
    nearby.
    (R.
    327.)
    Next,
    Mr.
    John Schneider
    entered his objections on
    the
    record.
    Mr. Schneider corroborated
    Ms. McMurray’s statements
    concerning
    the neighborhood.
    Mr. Schneider also testified about
    “strong odors”
    and
    a “lacquer smell” which
    he believes are
    emanating from petitioner’s facility.
    Mr.
    Schneider also
    complained of “the lack of perimeter security at the Riverside
    site.”
    (R 392.)
    Mr.
    Schneider also mentioned excessive noise
    as
    bothersome;
    but stated that “a
    sound
    barrier was
    installed and
    it
    seemed
    to be working.”
    (R.
    394.)
    Next,
    Mr. Robert
    Keriyon testified in support of Mr.
    Schneider’s conclusions and statements.
    Mr.
    Kenyon, who has
    lived nearby for
    24 years,
    testified
    that the area has changed
    greatly over
    the years
    and that he
    is concerned about industrial
    hazards
    arid pollutants
    from nearby manufacturers
    arid
    industries.
    Lastly,
    Mr. John Brayton entered his objection onto the
    record.
    As
    a member of
    the local
    fire department
    Mr. Brayton was
    concerned
    that
    a fire truck call
    could
    riot gain access to the
    area on the Wheeler Park side.
    Additionally,
    Mr.
    Brayton did not
    like the fact that Riverside Labs does not possess a vapor
    detection system.
    His feeling
    is that
    a sprinkler system is
    totally inadequate.
    (R.
    402.)
    PRELIMINARY ISSUES
    As
    a preliminary issue,
    Petitioner claims that it was
    a
    mistake for
    the Agency to deny
    a requested permit rather
    than
    issue
    a more information letter pursuant
    to 35
    Ill.
    Adm.
    Code
    201. 158.
    The
    relevant facts are that Petitioner’s permit
    was
    scheduled
    to expire on May 18,
    1987;
    on
    February 27,
    1987,
    the
    application
    for permit renewal was dispatched;
    and on~April
    3,
    1987,
    the denial
    letter was
    issued.
    35
    Ill. Mm.
    Code 201.158 states that an application for
    permit is
    not deemed
    filed until
    all required data
    is
    submitted.
    It further states
    that if the Agency fails to notify
    an applicant of an incomplete application package within
    30 days
    of receiving
    the
    incomplete package,
    the effective date of filing
    is the date of
    the Agency’s receipt.
    Finally, Section 201.158
    states an applicant may treat
    a notice
    of incompleteness as
    a
    denial
    for purposes of appeal.
    95— 7_~3

    —12—
    Nowhere does Section 201.158 or any other regulation require
    the Agency
    to issue Notice
    Of Incompleteness as opposed
    to
    denials; therefore Petitioner’s claim of error
    is unjustified.
    At most,
    Section 201.158 establishes a scheme for computing
    filing dates;
    it does not impose
    an affirmative duty on
    the
    Agency.
    A second threshold matter
    raised by Petitioner must be
    addressed
    at this time.
    At
    p.
    16 of
    its Reply Brief Petitioner
    argues that
    the Board’s Opinion
    in East Moline
    is in error
    and
    should
    not
    be followed
    at precedent.
    East Moline
    is currently on
    appeal
    and
    the Board
    will not comment on this further, except
    to
    say that
    for the
    reasons set
    forth
    in that Opinion,
    the Board
    declines to accept Petitioner’s invitation
    to reverse
    the East
    Moline decision
    at this time.
    PERMIT
    The ultimate
    issue
    in
    this case
    is whether
    or not Riverside
    Laboratories,
    Inc.
    is
    a paper coating operation subject
    to yaM
    emission limitations
    set forth at
    35 Ill. Adm. Code 215.204
    (C.).
    On August
    23,
    1979
    the Pollution Control Board
    issued
    its
    opinion
    in Docket.
    R78—3,4.
    This docket covered
    the Board’s
    adoption of Section 215.204(c).
    The opinion explained the
    relationship between
    PACT
    and Docket R78—3,4
    as follows:
    PACT and
    this Proceeding
    PACT has been defined as “the lowest emission
    limit
    that
    a particular
    source
    is capable of
    meeting by the application
    of control
    technology that is reasonably available
    considering
    technological and economic
    feasibility”
    (R.
    43).
    In response
    to
    the
    1977 Clean
    Air
    Act Amendments,
    USEPA has
    published
    Control Technique Guidelines
    (CTG)
    for fifteen emission source categories
    that
    were determined
    to be sources that could
    be
    further controlled
    by RACT
    (R.
    44).
    The
    purpose
    of
    this proceeding
    is
    to consider
    the
    implementation of RACT on
    these fifteen
    emission source categories.
    PACT
    is based
    on
    controlling emissions through
    reduction rather
    than through substitution.
    These
    reductions
    are to
    be achieved by retrofitting add—on
    control equipment, by changing
    to
    water—borne
    or high solids coatings
    in place of organic
    materials or by converting
    to
    low—solvent
    coatings” 938—3,4 pp.
    11.
    9 5—284

    —13—
    Many of
    the reasonably available control
    technologies
    (PACT)
    regulations
    were based on the control technology guidelines
    (CTG’s)
    documents published for selected
    industrial categories.
    In
    the CTG for paper coating operations (USEPA 1977),
    “Control Of
    Volatile Organic Emissions From Existing Stationary Sources—
    Volume
    II:
    Surface
    Coating
    of
    ...
    Paper,”
    reference is made
    to
    the
    1972
    edition
    of
    the
    U.S.
    Department
    of
    Commerce’s
    Standard
    Industrial Classification
    (SIC)
    Grouping 2641.
    However,
    the CTG
    cautions that “some
    types of paper coating with organic solvents,
    however, may not fall within any of these groups.”
    In reviewing
    the 1972 SIC Manual, grouping
    2641 Paper
    Coating
    & Glazing, there
    is no
    reference or
    inclusion of
    the resin impregnation paper
    product manufactured by Riverside Laboratories,
    Inc.
    Additionally, that portion of the
    Board’s opinion
    in P78—3,4
    which addresses paper coating
    is also lacking any reference to
    Riverside’s product and
    is lacking any reference to
    the process
    used by Riverside or
    the
    type
    or class
    of product produced by
    Riverside.
    That opinion,
    in pertinent part,
    states as
    follows:
    Rule 205(n)(l)(C)
    Paper Coating
    Paper coating
    refers to the application of
    a
    surface coating
    to paper, metal
    foil, plastic
    films, pressure sensitive tapes,
    etc.
    This
    rule does not cover operations
    in which
    a
    material, such
    as plastic,
    is obtained
    in
    sheets and/or
    rolls
    and converted into
    a
    package
    (P.
    1526—7).
    Rotogravure is
    considered
    to be printing
    in this case and
    therefore will
    be covered by a different
    rule
    (R.
    517)
    since equipment that
    is used for
    printing and paper coating
    is excluded from
    this rule.
    Examples of paper coating products
    include adhesive tapes; adhesive labels;
    decorated, coated
    and glazed paper; book
    coverings; office photocopier
    paper; carbon
    paper;
    typewriter ribbons and photographic
    film
    (P.
    515) methods of compliance include
    incineration, carbon adsorption and
    substitution of low solvent
    or water—based
    coatings
    (P78—3,4 p.
    19).
    Clearly the regulation was directed toward “tne application
    of
    a surface coating
    to paper.”
    The
    evidence
    in
    this case
    demonstrates that whatever Riverside’s process
    is,
    it
    is not
    a
    surface coater
    regulated by Section
    215.204(c).
    Petitioner
    Saturates materials composed mainly of cellulose fibers with
    a
    resin and solvent mixture,
    via
    a dip saturation process.
    Pet’n
    p.
    2.
    Although
    it
    is true
    that the surface must necessarily
    become coated,
    this is not
    the
    type of coating process
    the Board
    contemplated
    in promulgating Section 215.204(c).
    95—285

    —14—
    That this
    is true
    is highlighted by the fact that
    a more
    recent edition of the SIC manual
    addressed the
    issue of coating
    and laminated paper manufacturers not regulated
    by PACT.
    New SIC
    number 2672 Coated
    and Laminated
    Paper, Not Elsewhere Classified
    contains what might be Riverside’s product,
    “Resinous Impregnated
    Paper,
    except
    for Packaging—mfpm.”
    The Board notes
    that this
    issue was not litigated
    in this proceeding and the Board makes
    no
    such determination at this time.
    The language of the Opinion demonstrates that the Board was
    using USEPA’s CTG’s as guidance during R78—3,4.
    The CTGS
    in
    existence at that time did not address
    Riverside’s process and
    it
    was not until
    1987
    that
    a SIC manual
    including resinous
    impregnated
    paper was issued.
    Clearly the Board did not intend
    for Riverside’s process
    to be subject
    to the paper coating rules
    governing resinous impregnated
    paper.
    The Board
    finds
    that
    resinous impregnated paper created via Riverside’s current
    process was not
    included, nor was
    it
    intended
    to he regulated via
    35
    Ill.
    Adm.
    Code 215.204(c).
    This constitutes
    the Board’s finding
    of fact and conclusions
    of law
    in this matter.
    IT
    IS SO ORDERED
    Board Members
    B.
    Forcade and J. Theodore Meyer dissented.
    I,
    Dorothy
    M.
    Gunn, Clerk
    of
    the Illinois Pollution Control
    Board, hereby certify that the above Opinion was adopted on
    the
    /~‘~-
    day of
    ~
    ,
    1989,
    by
    a vote
    of
    ~
    -
    .
    ~
    ~z
    Dorothy
    M.
    Gury~, Clerk
    Illinois Pollution Control Board
    95—286

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