ILLINOIS POLLUTION CONTROL BOARD
    February 4, 1987
    KING-SEELY THERMOS COMPANY,
    Petitioner,
    v.
    )
    PCB 87—154
    ILLINOIS ENVIRONMENTAL
    )
    PROTECTION AGENCY,
    )
    Respondent.
    MR. MARK FURSE APPEARED ON BEHALF OF PETITIONER, KING—SEELY
    THERMOS COMPANY;
    MS. BOBELLA B. GLATZ APPEARED ON BEHALF OF RESPONDENT, ILLINOIS
    ENVIRONMENTAL PROTECTION AGENCY.
    OPINION AND ORDER OF THE BOARD (by J.D. Dumelie):
    This matter comes before the Board upon King—Seely Thermos
    Company’s Petition For Variance, filed on October 13, 1987.
    Petitioner seeks a variance from the emission limitations of 35
    Ill. Adm. Code Section 215.204(j)(4) from December 31, 1987 until
    June 30, 1988, in order to provide Petitioner with sufficient
    time to install a new, dry painting process. Respondent,
    Illinois Environmental Protection Agency filed its recommendation
    on December 7, 1987, urging this Board to grant Petitioner’s
    variance request. On December 11, 1987 hearing was held in
    Stephenson County, Illinois. Both parties were represented by
    counsel; and no members of the public attended.
    Petitioner seeks a variance from the 3.0 lb/gal. emission
    limitation imposed by 35 Iii. Adm. Section 215.204(j)(4), which
    states as follows:
    “No owner or operator of a coating line shall cause or
    allow the emission of volatile organic materials to
    exceed the following:
    J) Miscellaneous Metal Parts and Products Coating,
    4) All other coatings Kg/i
    lb/gal.
    0.36
    (3.0)
    These regulations, effective December 31, 1987, apply to
    petitioner and limit VOC emissions to no greater than 3.0 pounds
    per gallons used.
    86—97

    —2—
    BACKGROUND
    Petitioner, King—Seely Thermos Company, is a manufacturer
    and distributer of barbecue grills, water coolers and drinking
    fountains. The facility for which variance is being sought is
    located two miles east of the City of Freeport, in Stephenson
    County, Illinois. The nearest residences are located
    approximately 1/4 mile away. Petitioner’s facility employs up to
    1000 people in 467,000 sq. ft. of manufacturing plant. The
    specific activity for which variance is requested is the painting
    of product lines. Petitioner currently operates B paint lines
    including 16 paint booths and 4 ovens. The current system
    utilizes a wet paint process whereby the transfer of paint is
    accomplished using volatile organic materials. The facility
    currently discharges VOMs at a rate of 5.3 lb/gal., which is non—
    compliant with the new limitations, effective December 31,
    1987. No citizen complaints are on record against this facility
    for solvent odors or other emissions from the painting
    operations. As part of its investigation IEPA conducted citizen
    interviews; no objections to the variance petition were recorded.
    Petitioner states that the new paint system has been in the
    planning stages since the new emissions limitations were first
    promulgated. Petitioner states that it then immediately went to
    work evaluating its current operations; assessing alternatives;
    deciding upon and implementing a plan of full compliance. These
    claims are uncontroverted. Petitioner states rather than utilize
    stop—gap measures or move its operations thereby engendering
    lay—offs it has decided to revamp its operations, building an
    entirely new painting system at an estimated cost in excess of
    six million dollars.
    COMPLIANCE PLAN
    The proposed compliance plan utilizes both wet and dry
    application processes. A dry paint process differs from a wet
    paint process in that the paint is transferred electrostatically,
    without the use of solvents containing VOMS as a transfer
    medium. The dry paint process will account for 57 of the
    proposed new system; the remaining 43 will be applied with a VOM
    compliant wet paint with final VOM emission levels less than 3.0
    lb/gal. The proposed combined paint system is expected to result
    in a VOM emission rate of 1.84 lb/gal. This is well within the
    3.0 lb/gal limitation.
    The following is a detailed timetable for installation and
    operation of the new system:
    8/3/87:
    finalized building plans to contractor
    8/7/87:
    price quotation on finalized plans
    86—98

    —3—
    8/12/87:
    building ordered
    10/1/87:
    building delivered
    10/22/87:
    building shell erected
    11/5/87:
    building available for installation of
    oven
    12/7/87:
    curing oven completed
    1/11/88:
    completion of all construction; begin
    debugging process
    6/1/88:
    commence full production with new system.
    It should be noted that the Petition for Variance requests a
    variance until June 30, 1988
    ——
    30 days after projected full
    production status. This is explained as necessary to allow for
    debugging of the completed operation process. Petitioner has
    asked that an interim limitation of 5.3 lb/gal Petitioner’s
    current emission rate be in effect during the period of the
    variance. However, Petitioner also states that beginning April
    1988, when phase—in of the new combined painting system begins,
    emissions should begin to decrease significantly.
    In its Petition for Variance, Petitioner explains its
    estimated project cost as follows:
    Total building
    $970,000
    Total building machinery and equipment
    530,000
    Total paint system machinery and equipment
    4,000,000
    Outside expenses
    511,000
    Total
    $6,011,000
    COMPLIANCE ALTERNATIVES
    In its Petition and at hearing, King—Seely identified
    several alternative means of compliance which it considered.
    Petitioner considered combining new equipment with certain
    existing equipment. Although it was argued this approach would
    result in moderately lower capital costs, Petitioner determined
    that mere threshold compliance would require replacement of most
    of the existing equipment. Petitioner further states that such
    an approach is short sighted in that the compliance obtained
    would be minimal and might limit future growth and/or expansion
    possibilities.
    86—99

    —4—
    Petitioner also considered combining its operations with
    those of another manufacturing facility. However, the
    alternative was deemed unacceptable owing to limited capacity,
    quality and operations losses and the possibility that such
    interdependence might place excessive controls and limits on
    production capabilities.
    Petitioner also considered incinerating paint exhaust. This
    alternative, however, would result in significantly higher energy
    costs; excessive installation costs and no increased quality or
    improvement in operating costs.
    Finally, Petitioner considered “outside sourcing” painted
    components. This would consist of sending component parts to a
    third party for painting, then reshipping the painted product
    back to King—Seely. Problems with this proposal included
    increased operating costs, reduced flexibility, quality control
    problems and substantial lay—offs of staff. Additionally, it was
    determined that no other nearby facility had sufficient capacity
    to accommodate King—Seely.
    HARDSHIP AND ENVIRONMENTAL IMPACT
    The emissions released from Petitioner’s painting operations
    are not considered toxic in the concentrations in which they are
    released. Although the materials released from painting
    operations do have a slight solvent odor, no odor related
    complaints have been recorded. Additionally, Stephenson county
    has been designated as an area for which ambient air quality
    standards for VOCs have been attained. Granting of this
    requested variance will not greatly impact the air quality of
    Stephenson County
    and
    Petitioner’s compliance program, if
    successful will greatly reduce the amount of VOCs emitted by this
    facility.
    The Agency’s recommendation, while urging approval of the
    variance request, criticized the petition for its use of cost
    estimates; complaining that Petitioner’s estimated data made it
    more difficult for the Agency to determine the reasonableness of
    the claim of hardship. However, at hearing on December 11, 1987,
    Petitioner utilized the opportunity to address the Agency’s
    criticisms. Petitioner’s consultant, Owen Spannaus, an engineer
    with Ingersoll Engineering, Inc., explained Petitioner’s
    analysis, explained the alternatives considered and explained
    certain cost features associated with the compliance project.
    The Board finds that Petitioner has established that
    complying with the current regulations would impose an
    unreasonable or arbitrary hardship. The regulations were
    initially changed in 1985, but did not become effective until
    December 31, 1987. Petitioner, until the recent regulatory
    change, was in compliance with the regulations. Although
    86— 100

    —5—
    Petitioner’s compliance plan urges that Petitioner be allowed to
    emit in excess of the new regulation, these excess emissions will
    be short lived and, ultimately, will be significantly less than
    the regulatory limit. Petitioner’s request asks for a variance
    until June 30, 1988 to ensure debugging of the equipment and
    operation; however, there is a real chance that emissions may
    begin to be reduced as early as April, 1988.
    Petitioner’s emissions from painting operations are not
    considered dangerous in the concentrations in which they are
    being released. Additionally, Stephenson County is an attainment
    area; thus Petitioner will not be contributing to an ongoing and
    significant local problem. Any potential adverse environmental
    effects will be outweighed by the long run, lower emission levels
    achieved via Petitioner’s compliance project.
    CONCLUS ION
    Petitioner’s request is that it be allowed to emit VOCs at
    its current level 5.3 lb/gal until June 30, 1988, at which time
    emissions should be at or below 1.84 lb/gal owing to Petitioner’s
    intergration of a new, dry paint process with the old, wet paint
    process. The wet painting process will be using compliant
    paints. King—Seely says that emissions may be reduced as early
    as April, 1988 if significant operational difficulties are not
    experienced. In view of the Agency’s determination that
    emissions at these levels would not cause significant health risk
    or environmental damage, the Board finds that granting the
    requested variance would produce no significant health risk.
    Petitioner’s compliance plan is fair and reasonable, it
    would be unreasonable to force King—Seely to cancel or close its
    operations for the short time expected until compliance is
    achieved, especially since the anticipated result will be
    significantly reduced VOC emissions. Petitioner has been
    diligent in its pursuit of new, low emission technology.
    Additionally, the Agency notes that King—Seely has been
    cooperative with the Agency and can be expected to complete the
    project as planned.
    This Opinion constitutes the Board’s findings of facts and
    conclusions of law in this matter.
    ORDER
    King—Seely Thermos, Co., is hereby granted variance from 35
    Ill. Adrn. Code Section 2l5.204(j)(4), Emission Limitations for
    Manufacturing Plants Miscellaneous Metal Parts and Product
    Coating, subject to the following conditions:
    1) Variance shall expire on June 30, 1988.
    86—101

    —6—
    2) Petitioner shall build and construct a combined
    painting system to achieve compliance with the
    regulations at the expiration of this variance.
    3) During the term of the variance, Peitioner’s emission
    rates shall not exceed 5.3 lb/gal.
    4) Petitioner shall prepare and send quarterly reports to
    the Agency during the period of the variance which
    describe and inform the Agency concerning Petitioner’s
    progress in completing the compliance project described
    in the Variance Petition. These shall be sent to the
    following:
    Mr. Dick Jennings
    Illinois Environmental Protection Agency
    5415 N. University
    Peoria, IL 61614
    5) Petitioner shall obtain all required construction
    permits from the Agency prior to construction of any
    new painting operations.
    IT IS SO ORDERED.
    I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control
    Board, hereby certify tJ~at the above Op’ ion and Order was
    adopted on
    the
    _____________
    day of
    ____________,
    1988 by a vote
    1~
    ~.
    Dorothy M. dunn, Clerk
    Illinois Pollution Control Board
    86—102

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