ILLINOIS POLLUTION CONTROL BOARD
    December 2,
    1982
    PEOPLE OF THE STATE OF ILLINOIS,
    Complainant,
    v.
    )
    PCB 75—80
    UNITED STATES STEEL CORPORATION,
    Respondent,
    and
    ILLINOIS ENVIRONMENTAL PROTECTION
    AGENCY,
    Complainant,
    v.
    )
    PCB 75—141
    CONSOLIDATED
    UNITED STATES STEEL CORPORATION,
    )
    Respondent.
    MR. THOMAS R.
    CHIOLA, ASSISTANT ATTORNEY GENERAL, APPEARED ON
    BEHALF OF COMPLAINANTS.
    MR. GLEN E. NELSON, ATTORNEY, APPEARED ON BEHALF OF RESPONDENT.
    OPINION AND ORDER OF THE BOARD
    (by I.
    G. Goodman):
    This matter is a consolidation of two enforcement cases
    brought against the United States Steel Corporation
    (U.S.
    Steel)
    alleging violations of Chapter
    2:
    Air Pollution of the Board’s
    Regulations at U.S.
    Steel’s facility in Chicago, Illinois commonly
    referred to as “South Works.”
    Docket No. PCB 75—80 was filed by
    the People of the State of Illinois on March
    14, 1975 alleging
    violation of emission limitations and permit regulations.
    A sub-
    stantially similar Complaint was filed by the Illinois Environ-
    mental Protection Agency (Agency)
    on April
    2,
    1975 in Docket No.
    PCB 75—141.
    The two actions were consolidated by Board Order on
    May
    8,
    1975.
    Further action on these matters was effectively stayed by
    the First District Appelate Court on October
    1,
    1975 by an Order
    in United States Steel Corporation v. Pollution Control Board,
    64
    Ill.
    App.
    3d,
    34
    (1st Dist. 1978), staying the application of
    certain air rules as to U.S.
    Steel pending
    final determination of
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    that case.
    On August
    18,
    1978,
    the Appellate Court decided the
    case and the Stay Order expired.
    On August
    3,
    1979, Complainants
    filed a Second Amended Complaint which enlarged the scope of the
    allegation of violation of the Illinois Environmental Protection
    Act
    (Act) and the Board’s Rules.
    In September of 1979, the Board adopted new regulations with
    respect to steel manufacturing processes which were subsequently
    presented to the United States Environmental Protection Agency
    (USEPA)
    as amendments to the State Implementation Plan.
    On
    September 3,
    1981, USEPA took final action on the amendments,
    approving, conditionally approving,
    and disapproving certain
    sections of these regulations
    (46 F.R.
    44172).
    This action is
    currently under appeal before the U.S. Court of Appeals.
    On
    October
    12,
    1982, the parties presented at hearing
    a proposed
    Settlement Agreement to the Board.
    Although Citizens for a
    Better Environment
    (CBE) had been granted leave to intervene in
    this matter in September of 1979,
    CBE withdrew as Intervenor in
    September of
    1982,
    and is therefore not a party to the proposed
    Settlement Agreement.
    The subject of these proceedings
    is the U.S.
    Steel South
    Works,
    an iron and steel plant whose facilities include a sinter
    plant, electric arc steel making
    furnaces,
    an Argonne—Oxygen
    Decarburization vessel
    (AOD),
    a basic oxygen process steel making
    shop, blast furnaces,
    a cast house, and numerous other facilities.
    During the iron and steel making process,
    U.S. Steel emits partic-
    ulate matter as defined in Chapter
    2:
    Air Pollution Control
    Regulations (Regulations).
    The facility is located in the south-
    east part of Chicago,
    Air Quality Control Region 67
    (40 CFR 81.14).
    This area is very heavily industrialized and is designated as
    non—attainment
    for
    the
    primary
    and
    secondary
    standards
    of
    Total
    Suspended
    Particulate
    matter
    (TSP).
    The
    TSP
    standards
    of
    Rule
    307 have been exceeded on an annual geographic mean basis in each
    of the years 1975 through 1981 and on a 24—hour concentration
    basis
    for certain days in that time period.
    U.S.
    Steel’s electric arc furnace shop contains two 200 ton
    and one 100 ton electric arc furnaces and the AOD.
    Although con-
    trolled with a wet scrubber control device, the furnaces emit
    particulate matter during charging and tapping operations and
    also suffer leakage around the electrode ports during meltdown
    and refining.
    The AOD apparently also sufferes some leakage
    during operation.
    The sinter plant agglomerates small partic—
    ulates of iron—bearing materials so that they may be recycled
    through the blast furnaces.
    The basic oxygen process facility (BOP Shop) produces steel
    by refining molten iron produced by the blast furnaces.
    During
    this process, oxygen is injected into the BOP vessels containing
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    3
    molten iron and steel scrap resulting in the evolution of a
    considerable amount of TSP.
    The problems at the BOP Shop are
    similar
    in nature to those discussed previously concerning the
    electric arc furnace shop.
    The flux handling system at the BOP
    Shop was also the subject of one of the complaints.
    However, the
    parties have agreed that the allegations concerning this system
    will be mooted by a control device that is to be installed to
    satisfy occupational
    safety and health requirements.
    Emissions from the blast furnaces and blast furnace cast
    house have been and continue to be a very difficult subject with
    regard to TSP controls.
    Recognizing the difficulty of collecting
    such emissions,
    the Board,
    in PCB 77—327, found that emissions
    at South Works were considered fugitive
    in character due to the
    apparent inability of U.S.
    Steel
    to effectively collect them.
    Nonetheless,
    the new steel regulations adopted in 1979 specifically
    require that castings emissions be controlled
    (Rule 203(d)(5)(E)).
    This rule contemplates capture of emissions, but a reading of
    that rule reveals the struggle that the Board underwent trying
    to define a rule consistent with the available technology.
    In
    addition,
    that rule was disapproved by USEPA in September,
    1981.
    Since the adoption of the steel regulations in 1979 by the Board,
    a new technology has been recognized which bypasses the capture
    problem simply by depressing the emission of TSP in the first
    place.
    It appears that this new technology holds great promise
    for the future control of emissions which are particularly
    resistent to the available forms of capture.
    Proposed Settlement Agreement
    During the seven year pendency of this matter, many changes
    have occurred both from a legal and a technical standpoint.
    New
    rules have replaced old rules, new facilities and processes have
    replaced the old,
    and new control technology has come on the
    scene.
    In recognition of these facts,
    and
    in order to bring about
    a solution to the TSP problem at South Works,
    the parties herein
    have proposed an innovative and far-ranging proposal for settle-
    ment of this litigation.
    The Settlement Agreement appears to be
    premised on a commitment by U.S. Steel
    to the overall compliance
    plan demanded by Rule 203(d)(5)(L).
    The parties note that certain
    commitments with respect to that compliance plan go beyond the
    scope of the complaints herein.
    U.S.
    Steel
    states that it never-
    theless submits to the jurisdiction of the Board with respect to
    those commitments and waives any requirement of legal process with
    respect thereto.
    It is the avowed intention of the parties that
    the commitments,
    if approved by the Board, be submitted to
    TJSEPA
    as
    a revision of the Illinois State Implementation Plan (SIP).
    Although the proposed Settlement Agreement appears to be
    a
    reasonable resolution of these proceedings and indeed a reasonable
    resolution of the TSP emissions at South Works,
    the Board is very
    concerned that some of the proposed limitations constitute a
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    4
    site—specific regulation for South Works without the benefit of
    proceedings pursuant to Section 28 of the Illinois Environmental
    Protection Act (Act).
    Although the Board might well agree with
    the technology and the limitations proposed in the Settlement
    Agreement, Section 28 proceedings would have to be instituted in
    order for those limitations to be given the dignity of a permanent
    Board rule.
    With that caveat in mind, the Board will address the
    proposed compliance plan contained in the Settlement Agreement.
    Proposed Compliance Plan
    Although the Board’s Steel Mill Rule (Rule 203(d) (5) calls
    for compliance with a process weight rate limitation with respect
    to emissions from blast furnaces, or, in the alternative, a very
    loose capture equipment design limitation, the parties propose an
    opacity limitation for the cast house roof monitor and furnace
    shell emissions.
    It
    is proposed that the emissions shall not
    exceed 20
    opacity on a six minute average basis beginning each
    minute during the casting period, observations to be made in
    accordance with a standard method (Reference Method
    9)
    40 CFR 60,
    Appendix
    A.
    This proposal
    is a reflection of the new non-capture
    control technology (particulate suppression) mentioned above.
    This technology apparently suppresses the evolution of particulate
    matter by denying
    in some manner the availability of oxygen to the
    hot metal.
    The oxidation of the hot metal by the ambient air is
    responsible,
    in great measure, for the production and emission of
    particulate matter.
    The state—of—the—art status of this process
    is evinced by U.S. Steel’s request for confidential status of
    Exhibit
    A, which is
    a general illustration of how the process is
    addressed to South Works’
    facilities.
    The proposed Settlement
    Agreement also contains provisos for reevaluating the 20
    opacity
    limitation after two years of experience, and dates of compliance
    and specific work rules with respect to certain equipment in the
    blast furnace shop.
    The standard for allowable TSP emissions from the balance of
    the equipment,
    i.e., the AOD electric steel making
    furnaces, and
    the SOP furnaces,
    is proposed to be determined by
    a process weight
    rate equation contained in the Settlement Agreement.
    This equation
    is exactly the same as that contained in Rule 2O3(a)
    of the Rules,
    which is entitled Particulate Emission Standards and Limitations
    for Existing Process Emission Sources.
    This is the limit required
    by Rule 203(d)(5), Steel Manufacturing Processes,
    promulgated in
    1979.
    It appears that the balance of the proposed Stipulation
    concerns Rule 203(d)(5)(L) compliance dates and Rule 104,
    Compliance Programs and Project Completion Schedules.
    With respect to the AOD vessel,
    U.S.
    Steel proposes either
    to discontinue operation of the vessel or notify the Agency of
    its intent to install certain additional controls pursuant to a
    stated schedule with final compliance by June 30,
    1984.
    Certain
    other work rules are noted and U.S.
    Steel agrees to utilize good
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    5
    operating and maintenance practices at the existing baghouse
    collector during any period of construction.
    This constitutes
    a delay in final compliance
    from the December 31, 1982 date
    contained in Rule 203(d)(5)(E).
    The proposed Settlement Agreement addresses the electric
    arc furnace steel making facility on a furnace-by—furnace basis,
    but generally calls
    for compliance with the process weight rate
    equation previously addressed or by establishing what appears
    to be a bubble-type limitation containing the AOD and the three
    electric arc furnaces.
    With respect to the basic oxygen process
    shop, the proposed
    compliance plan is a combination of work rules, equipment instal-
    lation
    (fume and particulate suppression), equipment replacement,
    compliance with Rule 202(b), opacity,
    and the aforementioned
    process weight rate equation.
    It appears that compliance for
    the BOP Shop will be attained prior to December 31, 1982.
    The proposed compliance plan for the sinter plant contains
    certain work rules with respect to the operation of the facility.
    The plan also contains provisions for testing methodology to be
    used to demonstrate compliance by the control systems and calls
    for notice to the parties with respect to such tests and observa-
    tions.
    In addition, there is a provision which calls for the
    Board or a court to determine whether or not compliance has been
    demonstrated in the event of a disagreement between the parties.
    The proposed Settlement Agreement also recites certain
    standard provisions concerning reporting requirements, a force
    majeure agreement,
    the effect of cessation of operations,
    reservation of rights of the parties to seek regulatory changes
    through rulemaking procedures under Sections 27 and 28 of the Act,
    the requirement that U.S.
    Steel apply for and qualify for all
    construction and operating permits required for all sources at
    South Works, and finally a payment in the sum of $100,000 to the
    State within ninety days of the date of the Board Order,
    such
    sum
    to be paid to the Environmental Protection Trust Fund.
    The
    proposed Settlement Agreement purports to settle and resolve any
    and all violations by the identified TSP emission sources of
    applicable air pollution regulations up to the date of the
    agreement.
    Considerations
    As stated previously,
    the proposed Settlement Agreement
    appears to be a reasonable resolution to both of these proceedings
    and of the TSP emissions at South Works.
    The Board finds,
    however,
    that it may not promulgate site specific regulations by way of a
    Compliance Order in an enforcement action regardless of whether
    50-11

    6
    or
    not
    USEPA
    might
    accept
    the
    Order
    as
    a
    SIP
    revision.
    The
    Board
    recognizes
    the
    advent
    of
    new
    technology
    in
    an
    area
    in
    which
    it
    is sorely needed.
    It likewise acknowledges the extremely poor
    economic situation that U.S.
    Steel finds itself in today.
    The
    Board also takes note of recent legislation passed by the Congress
    and signed by the President which allows a three year extension
    for the steel
    industry in meeting air pollution control standards
    from December 31,
    1982 to December 31,
    1985
    (“the Steel Stretch-
    out Bill”).
    Nevertheless, the Board must reject the proposed
    Stipulation as it is presently constituted.
    It is within the
    Board’s power, however, to issue a delayed compliance order
    in
    such a case as this.
    Such an order would allow
    U.S. Steel a
    limited
    length of time within which to come in compliance with
    Board
    regulations
    and
    would
    set
    interim
    limitations
    to
    be
    met
    by
    U.S.
    Steel
    during
    that
    period
    of
    time.
    This
    would
    allow
    U.S.
    Steel
    to
    develop
    the
    new
    technology
    and
    to
    propose
    amendments
    to
    the
    Steel
    Mill
    Regulations
    or
    a
    site
    specific
    regulation
    for
    South
    Works
    pursuant
    to
    Sections
    27 and
    28
    of
    the
    Act.
    In
    the
    alternative,
    if
    U.S.
    Steel
    so
    determines,
    the
    extension
    of
    time
    can be used to come into compliance with the current regulations.
    The Board shall make modifications with respect to the
    proposed Stipulation and Settlement Agreement.
    If the parties
    herein will accept such modifications of the Stipulation that con-
    strues the proposed Compliance Plan as interim limitations
    until
    December
    31,
    1985,
    the
    Board
    Order
    herein
    shall
    be
    considered
    the final resolution of these matters.
    The Board proposes this
    disposition of the proposed Stipulation and Settlement Agreement
    in order
    to expedite the resolution of this bewhiskered enforcement
    action.
    If the parties herein accept the modification proposed by the
    Board to the proposed Stipulation and Settlement Agreement,
    this
    Opinion constitutes the findings of fact and conclusions of law in
    this matter.
    ORDER
    1.
    United States Steel Corporation is found to have
    violated
    Rules
    l03(b)(2)
    and
    203(d)
    of Chapter
    2:
    Air
    Pollution
    of
    the
    Board’s
    Regulations
    and
    Sections
    9(a)
    and 9(b) of the Illinois Environmental Protection Act
    at its South Works facility in Chicago,
    Illinois.
    2.
    United States Steel Corporation shall pay the sum of
    $100,000 to the State of Illinois within ninety
    (90) days
    of the date of this Order, such sum to be paid into the
    Environmental Protection Trust Fund for the purpose of
    elimination or mitigation of conditions which pollute or
    threaten to pollute the environment in Illinois.
    Within
    thirty
    (30) days of the date of this Order,
    United States
    Steel shall file with the Illinois Environmental Protection
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    7
    Agency a waiver of any rights of recovery of these monies
    pursuant to Paragraph 1061 of Chapter 111½ of the Illinois
    Revised Statutes.
    3.
    a.)
    The parties herein shall execute their duties pursuant
    to the Stipulation and Settlement Agreement filed October
    12,
    1982,
    which Stipulation and Settlement Agreement is
    hereby incorporated by reference as
    if fully set forth
    herein,
    except that the Settlement Agreement is hereby
    modified so as to terminate on December 31,
    1985.
    b.)
    Within thirty
    (30) days of the date of this Order,
    the parties herein shall file with the Board an agree-
    ment to be bound by the modification noted in
    (a) above.
    4.
    The Board retains jurisdiction
    in this matter for the
    purpose of reconciling disputes between the parties.
    IT
    IS
    SO
    ORDERED.
    Board
    Members
    3.
    Anderson
    and
    N.
    Werner
    concurred.
    I,
    Christan
    L.
    Moffett, Clerk
    of the Illinois Pollution
    Control Board, hereby oertify that the above Opinion and Order
    was adopted on the
    ~
    day of
    ~
    ~
    ,
    1982
    by a vote of
    ______
    Illinois
    Pollution
    Board
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