ILLINOIS POLLUTION CONTROL BOARD
    January 8, 1987
    VAN LEER CONTAINERS, INC.,
    )
    Petitioner,
    v.
    )
    PCB 85—227
    )
    ILLINOIS ENVIRONMENTAL
    )
    PROTECTION AGENCY,
    )
    )
    Respondent.
    MR. RICHARD H. SANDERS, VEDDER, PRICE KAUFMAN & KAMMHOLZ,
    APPEARED ON BEHALF OF VAN LEER CONTAINERS INC.; AND
    MS. LISA S. MOPENO, ATTORNEY-AT-LAW, APPEARED ON BEHALF OF THE
    ILLINOIS ENVIRONMENTAL PROTECTION AGENCY.
    OPINION AND ORDER OF THE BOARD (by J.D. Dumelle):
    This matter comes before the Board upon a December 31, 1985,
    petition for extension of variance filed on behalf of Van Leer
    Containers, Inc. (Van Leer). Van Leer requests that its variance
    from 35 Iii. Adm. Code 215.204(j), 215.211 and 215.212 granted by
    the Board on May 3, 1984 (PCB 83—133, 58 PCB 17), be extended
    until December 31, 1987. Van Leer filed an amended petition on
    October 8, 1985, the Illinois Environmental Protection Agency
    (Agency) filed its recommendation that variance be granted
    subject to certain conditions on October 29, 1986, and hearing
    was held on November 3, 1986, at which the parties and Mr. Peter
    Ciammanco, Jr., President of Central Can Company, presented
    testimony, and at which the Agency amended its recommendation in
    response to information presented by Van Leer to the Agency prior
    to and at hearing.
    Van Leer manufactures steel industrial pails and drums at a
    plant located at 4300 West 130th Street in Alsip. As part of its
    manufacturing process, Van Leer applies exterior and interior
    coatings to its pails and drums which contain volatile organic
    materials (VOM). Van Leer alleges, and the Agency does not
    dispute, that in 1985 the average VOM content of interior
    coatings was 5.41 lbs/gal and the average for exterior coatings
    was 4.12 lbs/gal, excluding water. These coatings are regulated
    pursuant to 35 Ill. Adm. Code 215.204(j). Section 2l5.204(j)(3)
    establishes a limitation on exterior coatings of 3.5 lbs/gal, and
    Section 2l5.204(j)(l) limits interior coatings to 4.3 lbs/gal
    delivered to the coating applicator. 35 Ill. Adxn. Code 215.211
    establishes a December 31, 1983 compliance date for Section
    215.204(j).
    74-364

    —2—
    Variances are to be extended only upon a showing of
    satisfactory progress toward compliance during the period of the
    original variance. During 1982, Van Leer’s average VOM content
    for interior coatings was 5.29 lbs/gal while exterior coatings
    averaged 4.56 lbs/gal. 1983 averages were 5.32 and 4.48,
    respectively, and 1984 averages were 5.31 and 4.30, respectively
    (Pet. Sup. p. 3). Since 1983, Van Leer has reduced the number of
    interior coating formulations from more than 20 to eight, and has
    eliminated those with the highest VOM content (Pet. p. 14). It
    is also currently testing three new formulations which it
    believes may allow full compliance (Pet. Sup. pp. 4—5). Van Leer
    has also installed a new hot airless spray system increasing
    transfer efficiency and lowering emissions and collection devices
    further reducing emissions. Based on these improvements, the
    Agency concludes that Van Leer “has made very significant
    progress towards reducing VOM emissions and achieving compliance
    with Section 215.204(j)” (Rec. p. 6). This progress is reflected
    by the fact that excess emissions have been reduced by 94 tons
    since 1983, a reduction from 65 over allowable in 1983 to 33
    over allowable in 1985 (Pet. Sup. p. 5).
    Van Leer is located in Cook County, and as such is in a non—
    attainment area. However, since Van Leer’s emissions are
    expected to continue to decline and will be required to be at
    compliance levels by the end of the year, the Agency concludes
    that “the extension
    ...
    sought by Van Leer should not cause any
    increased problems” (Rec., p. 9). Further, Van Leer must comply
    with its episode action plan which requires the reduction of
    emissions during periods of high ozone concentrations, thereby
    mitigating any adverse health effects.
    Van Leer alleges that denial of variance would result in an
    arbitrary or unreasonable hardship since compliance coatings
    currently do not exist and add—on controls are unjustifiably
    expensive. The Agency agrees based upon the substantial
    reduction in emissions since 1983, and the capital cost of $4,000
    $9,000 per ton and operating cost of $2,600
    $3,100 per ton
    for add—on controls (Rec, pp. 10—il). In this regard, the
    Agency also notes that Van Leer alleges that it has spent
    $476,000 during its previous variance. These expenditures were
    made to improve coating transfer efficiencies ($88,000), to test
    high solids coatings ($75,000), due to losses from rejected
    containers coated with high solids formulations ($40,000), and
    for the installation of a new drum parts booth to reduce
    overspray, increase transfer efficiency and improve lining
    application ($272,000) (Pet., p. 8).
    Van Leer intends to achieve compliance through the internal
    offset of interior coatings by exterior coatings pursuant to
    Section 215.207 (Pet., p. 4). In particular, Van Leer proposes
    the following compliance strategy:
    74-365

    —3—
    a) Continued conversion to water borne
    exteriors.
    (Program scheduled for
    completion by March 30, 1987; estimated
    effect —20 tons excluding that achieved
    to date in 1986.)
    b) Introduction of newly available low VOM
    water borne linings, with a target for
    the period ending December 31, 1987 of a
    25 change in order to ensure compliance
    with each line. (Estimated effect by
    December 31, 1987 —30 tons.)
    C)
    Continuation of conversion of all
    (exterior) roll coats to compliance
    materials. (Target date
    ——
    July 1987;
    estimated effect —10 tons.)
    d) Installation of new centrifugal lining
    spray heads for drum lining. (Target
    date
    ——
    June 1987; estimated effect —20
    tons.)
    e) Installation of new centrifugal lining
    head for pail lining.
    (Target
    ——
    November 1987; estimated effect —3 tons.)
    f) Installation of new high efficiency hot
    airless guns into drum painting line.
    (Target date
    ——
    April 1987; estimated
    effect —3 tons.)
    g) Installation of high efficiency air
    assisted airless guns into the pail and
    drum parts booths. (Target date
    ——
    December 1987; estimated effect —8 tons.)
    (Pet. Supp., par. IV(a) and Rec., pp. 12—
    13)
    Van Leer estimates that based upon the steps already taken
    to come into compliance, the emission figures for the first half
    of 1986, and the successful completion of its proposed compliance
    plan, typical annual emissions should be as follows:
    Interior coatings
    234.4 Tons
    Exterior coatings
    199.8 Tons
    Total
    434.2 Tons
    Allowable
    319.0 Tons
    74-366

    —4—
    Excess
    115.2 Tons
    Allowance for natural
    oven incineration
    53.2 Tons (as per
    1983/5 variance)
    62.0 Tons
    Reductions per program 101.0 Tons
    Within compliance
    39.0 Tons
    (Pet. Supp., p. 9 and Rec., p. 13).
    The Agency, as well as Mr. Ciaminanco, question Van Leer’s
    allowance of 53.2 tons for natural oven incineration. Van Leer’s
    witness testified at the hearing in PCB 83—133 that a 20 natural
    incineration takes place in the type of gas fired ovens that Van
    Leer operates, and that “with split of 50/50, spray booth to
    oven” 10 of the solvents going into the oven are incinerated
    naturally (Pet. C, p. 9). Even accepting Van Leer’s testimony to
    the extent that an allowance for natural incineration is
    warranted, the allowance should be 43.4 tons rather than 53.2
    tons (Rec., p. 14). However, even subtracting out this reduction
    entirely, Van Leer should be very close to full compliance.
    Further, Van Leer states that should it become evident it will
    not be able to achieve the identified reductions, it will commit
    to incineration, and that decision will be made by October,
    1987. Van Leer further states that investigations are continuing
    to determine the most economical way to introduce incineration
    onto its lines (Pet. Supp., p. 8).
    The Agency is concerned that should incineration become
    necessary in order to achieve compliance, an October deadline for
    that decision will not allow sufficient time for the add—on
    controls to be installed and operating by January 1, 1988. This
    concern arises from the fact that compliance by December 31,
    1987, is required under the Federal Clean Air Act, and the Board
    cannot grant a variance to
    Van Leer beyond that date.
    The Agency, therefore, recommends that Van Leer be required
    to make its
    decision to install add—on control equipment or
    continue with its compliance program by July 1, 1987. Further,
    the Agency recommends that Van Leer begin an engineering project
    study for the proposed add—on controls immediately to further
    insure that the equipment is installed and in operation by
    January 1, 1988, should it be necessary in order to achieve
    compliance
    with Section
    215204(j) (Rec., p. 15).
    Besides questioning Van Leer’s allegations regarding natural
    incineration, Mr. Gianimanco questions whether the installation of
    add—on control would impose an arbitrary or unreasonable hardship
    74-367

    —5—
    (Pub. Ex. No. 1). He contends that his
    company, Central Can
    Company, is a direct competitor of Van Leer, it uses the same
    manufacturing processes, it expended large sums of money for add—
    on controls to come into full compliance without going out of
    business, and that Van Leer, with its considerably
    greater
    resources, could do so as well (Pub. Ex. No. 1, pp. 2—3, 14—
    15).
    He further argues that Van Leer failed to fully comply with
    its previous variance and that
    granting an extension would result
    in a
    continued competitive advantage to Van Leer (Pub. Ex. No. 1,
    pp. 10—11).
    Van Leer responded to Mr. Giamrnanco’s arguments on November
    24, 1986. Van Leer contends that
    Central Can made a mistake in
    installing add—on controls and now wishes to force all its
    competitors to make the same mistake in order not to be at a
    competitive disadvantage (Response, p. 2). Van Leer contends
    that its operations
    differ significantly from Central Can’s, that
    its efforts at compliance have been working, that it is
    optimistic that full compliance can be reached by the end of the
    year, and that its hardship has been justified
    (Response, pp. 2—
    8).
    The Board very much appreciates the time and effort that Mr.
    Ciammanco spent on bringing his concerns before the Board.
    However, variance decisions are made on a case—by—case basis, and
    the fact that others have complied with the general regulation
    from which variance is requested is
    relevant to that
    determination only insofar as such compliance indicates that the
    petitioner would not suffer an
    arbitrary or unreasonable
    hardship.
    The Board cannot find on the basis of Mr. Ciammanco’s
    submission that Van Leer has failed to demonstrate an arbitrary
    or unreasonable hardship, or that it has failed to make
    reasonable progress toward compliance during the previous
    variance period.
    Rather, the record establishes that Van Leer
    has been in substantial compliance with the previous variance.
    While Mr. Giammanco is
    correct that Van Leer has exceeded the VOM
    limitation of the previous variance by about 1 1/2
    in 1985, the
    Board does not find that discrepancy to be
    significant enough to
    warrant denial of variance (Pub. Ex. No. 1, p. 11). Further, Mr.
    Giainnianco’s assertion that afterburners would be just as
    reasonable for Van Leer as it is for
    Central Can
    since the
    manufacturing processes are similar has been
    rebutted by Van Leer
    (Response, p. 3), and the Board cannot find that the
    facilities
    and circumstance of the two
    companies are so similar as
    to
    warrant denial of variance.
    The Board has noted with concern Ex. 6 of Pub. Ex. No. 1
    which shows little progress toward compliance by Van Leer since
    1978. While this does not show a lack of progress during the
    period of the previous variance (during which Van Leer improved
    74-368

    —6—
    from 165 of allowable in 1983 to 149 in 1984 and 144 in 1985),
    it does tend to indicate that Van Leer’s optimism regarding to
    potential for reaching compliance without the use of an
    afterburner by the end of 1987 may be misplaced in that Van Leer
    is presently farther from compliance than it was in 1978.
    However, there are several possible reasons for this, and the
    Board believes that Van Leer should be allowed to continue with
    its compliance plan until July 1, 1987, at which time it must
    either commit to the installation of afterburners or have
    reasonable certainty that it can achieve compliance without such
    installation by the end of 1987. One way or another Van Leer
    must comply by that time or be subject to enforcement.
    The Board concludes that Van Leer has demonstrated that the
    denial of variance would cause an arbitrary or unreasonable
    hardship and will grant variance subject to the conditions
    recommended by the Agency, which Van Leer apparently finds
    acceptable.
    This Opinion constitutes the Board’s findings of fact and
    conclusions of law in this matter.
    ORDER
    Van Leer Containers, Inc. is hereby granted an extension of
    variance from 35 Ill. Adin. Code 215.204(j), 215.211 and 215.212
    until December 31, 1987, subject to the following conditions.
    1. By March 30, 1987, Van Leer shall have converted 80 of
    its spray applied to water borne coatings;
    2. By April 30, 1987, Van Leer shall have installed new
    high efficiency hot airless spray guns into its drum
    painting line;
    3.
    By June 30, 1987, Van Leer shall have completed
    installation of new centrifugal lining spray heads for
    drum interior coating;
    4.
    By July 31, 1987, Van Leer shall use only coatings with
    volatile organic material content of 3.5 lbs/gal or less
    when roller coat applying exterior coating other than
    clear over varnish;
    5.
    By November 30, 1987, Van Leer shall have completed
    installation of
    a new centrifugal lining spray head for
    pail interior coating;
    6.
    By December 31, 1987, Van Leer shall have installed high
    efficiency air assisted airless spray guns into its pail
    and drum parts booths;
    74-369

    —7—
    7.
    Van Leer shall immediately commence an engineering
    project study for add—on control equipment at its Alsip
    facility;
    8.
    By July 1, 1987, Van Leer
    shall make a decision to
    continue with its
    compliance program or to commence the
    installation
    of add—on control equipment and shall
    immediately apprise the Agency of its decision.
    Should
    Van Leer determine that the installation
    of add—on
    controls is necessary to achieve
    compliance with 35
    Ill.
    Adm. Code 215.204(j), such controls shall be installed
    and in operation by December 31, 1987;
    9.
    Within
    28 days of the date of this Order and every third
    month thereafter, Van Leer shall submit to the Agency
    written reports detailing all progress made in achieving
    compliance with Section 215.204(j). Said reports shall
    include information complied on a monthly basis on
    coating materials usage; amount of reformulated coating
    in use; actual and allowable VOM emissions; the quantity
    of VOM reductions during the reporting period; and
    actual operating hours. Such reports shall also
    describe in detail the progress made during the
    reporting period in the implementation of the elements
    of its compliance program, including any changes or
    modification to the program; shall describe in detail
    the progress made by Van Leer in developing and testing
    reformulated interior coatings, including product
    quality and customer acceptance; and shall include any
    other information which may be requested by the
    Agency. The reports shall be sent to the following
    addresses:
    Environmental Protection Agency
    Division of Air Pollution Control
    Control Programs Coordinator
    2200 Churchill Road
    Springfield, Illinois 62706
    Environmental Protection Agency
    Division of Air Pollution Control
    Region
    1, Field Operations Section
    1701 South First Avenue
    Suite 600
    Maywood, Illinois
    60153
    10. Within 28 days of the date of this Order, Van Leer shall
    apply to the Agency for renewal of its operating
    permits
    pursuant to Section 201.160(a); and
    11.
    Within
    45
    days of the date of this Order, Van Leer shall
    execute a Certification of Acceptance and Agreement to
    74-370

    —8—
    be bound to all terms and conditions of the variance.
    Said Certification shall be
    submitted to both the Agency
    at the
    addresses specified in Condition
    9, above. The
    45—day period shall be held in abeyance during any
    period that this matter is being
    appealed. The form of
    said Certification shall be as follows:
    CERTIFICATION
    ______________________________ (Petitioner), hereby
    accepts
    and agrees to be bound by all terms and
    conditions of the Order of the Pollution Control Board
    in PCB 85—227, dated January 8, 1987.
    Petitioner
    Authorized Agent
    Title
    Date
    IT IS SO ORDERED.
    Board Member J. Marlin concurs.
    Board member B. Forcade dissents.
    I, Dorothy M. Gunn, Clerk of the Illinois
    Pollution Control
    Board, hereby certify that
    t
    above Opinion and Order was
    adopted on the LV~ day of
    ______________,
    1987, by a vote
    of
    ___________.
    Dorothy P1. G n, Clerk
    Illinois Pollution Control Board
    74-371

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