1
     
     
     
    1 ILLINOIS POLLUTION CONTROL BOARD
     
    2
    IN THE MATTER OF: )
    3 )
    PETITION OF CROMWELL-PHOENIX, ) AS 03-05
    4 INC., FOR AN ADJUSTED STANDARD )
    FROM 35 ILL ADM CODE 218.204(c) )
    5
    ADJUSTED STANDARD - AIR
    6
     
    7 TRANSCRIPT OF PROCEEDINGS held
     
    8 in the hearing of the above-entitled matter,
     
    9 taken stenographically by Stacy L. Lulias, CSR,
     
    10 before BRADLEY P. HALLORAN, hearing officer,
     
    11 at 100 West Randolph Street, Suite 11-500,
     
    12 Room 11-512, Chicago, Illinois, on the 7th day of
     
    13 August, A.D., 2003, scheduled to commence at 1:30
     
    14 p.m., commencing at 1:32 p.m.
     
    15
     
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    2
     
     
     
    1 A P P E A R A N C E S:
     
    2
    ILLINOIS POLLUTION CONTROL BOARD,
    3 100 West Randolph Street
    Suite 11-500
    4 Chicago, Illinois 60601
    (312) 814-8917
    5 BY: Mr. Bradley P. Halloran, Hearing Officer
    Mr. Nicholas J. Melas, Board Member
    6 Ms. Alisa Liu, P.E.
    Ms. Amy C. Antioniolli
    7
     
    8 SEYFARTH SHAW,
    55 East Monroe Street
    9 Suite 4200
    Chicago, Illinois 60603
    10 (312) 346-8000
    BY: MR. ERIC E. BOYD
    11
    Appeared on behalf of the Petitioner,
    12 Cromwell-Phoenix, Inc.;
     
    13
    ILLINOIS ENVIRONMENTAL PROTECTION AGENCY,
    14 1021 North Grand Avenue East
    P.O. Box 19276
    15 Springfield, Illinois 62794
    (217) 782-5544
    16 BY: MR. CHARLES E. MATOESIAN
     
    17 Appeared on behalf of the Illinois
    Environmental Protection Agency.
    18
     
    19
     
    20
     
    21
     
    22
     
    23
     
    24
     
     
     

     
    3
     
     
     
    1 HEARING OFFICER HALLORAN: Good
     
    2 afternoon, everyone. My name is Bradley Halloran.
     
    3 I'm a hearing officer with the Illinois Pollution
     
    4 Control Board. I've been assigned to preside over
     
    5 this matter.
     
    6 This is a hearing in the matter of
     
    7 the petition of Cromwell-Phoenix, Inc., for an
     
    8 adjusted standard from 35 Illinois Administrative
     
    9 Code 218.204(c). The corresponding Board number is
     
    10 Adjusted Standard 03-5.
     
    11 Today is Thursday, August 7th,
     
    12 2003. It's approximately 1:32 p.m. I note from the
     
    13 side of the parties and representatives, there are
     
    14 not any members of the public here; however, there
     
    15 are people from the Board here, and to my left is
     
    16 the esteemed member Mr. Nicholas Melas, who's
     
    17 present today, and we have staff attorney Amy
     
    18 Antoniolli, and we also have Alisa Liu from our
     
    19 technical unit.
     
    20 This hearing was scheduled and
     
    21 noticed pursuant to Section 104.400, Subpart D, in
     
    22 the Board's procedural rules. It will be governed
     
    23 in accordance with Section 101-600 in the Board's
     
    24 procedural rules.
     
     
     

     
    4
     
     
     
    1 I also want to note that this
     
    2 hearing is intended to develop a record for review
     
    3 by the seven members of the Illinois Pollution
     
    4 Control Board. I will not be making the ultimate
     
    5 decision in the case. That is left up to the seven
     
    6 members.
     
    7 They will review the transcript of
     
    8 this proceeding in the remainder of the record and
     
    9 will render a decision. My job is to ensure an
     
    10 orderly hearing and a clear record and to rule on
     
    11 any evidentiary matters that may arise.
     
    12 After the hearing, the parties
     
    13 have an opportunity to submit posthearing briefs and
     
    14 I also will schedule a public comment period.
     
    15 With that said, Mr. Boyd, would
     
    16 you like to introduce yourself?
     
    17 MR. BOYD: Yes.
     
    18 I'm Eric Boyd of Seyfarth Shaw for
     
    19 the Petitioner, Cromwell-Phoenix, Inc.
     
    20 HEARING OFFICER HALLORAN: Mr.
     
    21 Matoesian?
     
    22 MR. MATOESIAN: Charles Matoesian with
     
    23 the Illinois Environmental Protection Agency.
     
    24 HEARING OFFICER HALLORAN: And I think
     
     
     

     
    5
     
     
     
    1 what will happen here today, we do not have any
     
    2 witnesses today. Mr. Boyd will give kind of a
     
    3 summary of the petition in his, I guess, opening
     
    4 and closing. He will submit posthearing briefs.
     
    5 Mr. Matoesian may or may not contribute.
     
    6 And after that is through,
     
    7 Ms. Liu will ask some questions into the record
     
    8 which will be addressed by the respective parties or
     
    9 Mr. Boyd's experts in the posthearing briefs. Also,
     
    10 Amy may have some questions as well as Member Melas
     
    11 as we proceed.
     
    12 So if there's no questions,
     
    13 Mr. Boyd, you can remain seated and do your thing.
     
    14 MR. BOYD: Thank you.
     
    15 Cromwell-Phoenix is requesting an
     
    16 adjusted standard from the volatile organic
     
    17 material, or VOM, limits in the Board's paper
     
    18 coating regulations of 35 Ill. Admin. Code Section
     
    19 218.204(c).
     
    20 The company filed a petition for
     
    21 an adjusted standard with the Board on May 29, 2003.
     
    22 The petition contained the information required by
     
    23 35 Ill. Admin. Code Section 104.406, including a
     
    24 technical report prepared by Environmental Resources
     
     
     

     
    6
     
     
     
    1 Management, Inc., as Exhibit A, and an affidavit of
     
    2 Francis Houlihan, the president of Cromwell-Pheonix,
     
    3 as Exhibit B.
     
    4 On June 19, 2003, the Board
     
    5 entered an order finding that the petition met the
     
    6 content requirements of Section 104.406 of the
     
    7 Board's procedural rules, and that the notice met
     
    8 the requirements of Sections 28.1 of the Illinois
     
    9 Environmental Protection Act and Section 104.408 of
     
    10 the Board's procedural rules.
     
    11 On July 14, 2003, the IEPA
     
    12 recommended that the Board grant Cromwell-Phoenix an
     
    13 adjusted standard subject to the terms and
     
    14 conditions contained in the recommendation.
     
    15 The company has decided to rely on
     
    16 its petition and the exhibits included with the
     
    17 petition. These documents are presented here as
     
    18 Petitioner's Exhibit 1.
     
    19 The Agency has previously
     
    20 stipulated to the admissibility of these documents.
     
    21 We will not be calling any witnesses or introducing
     
    22 any other documents at today's hearing.
     
    23 In order to set the stage for the
     
    24 Board, however, I will provide a short statement.
     
     
     

     
    7
     
     
     
    1 The statement is based on information contained in
     
    2 the petition and the petition exhibits.
     
    3 Cromwell-Phoenix produces
     
    4 corrosion inhibiting, or CI, packaging material at
     
    5 its facility in Alsip, Illinois. The CI packaging
     
    6 materials are used by the metal parts industry to
     
    7 keep their parts from corroding.
     
    8 The company produces CI packaging
     
    9 materials by impregnating kraft paper with corrosion
     
    10 inhibiting solutions. The carrier for the solutions
     
    11 is comprised of high molecular weight, VOM and
     
    12 water.
     
    13 The purpose of the carrier is to
     
    14 transport the CI compounds into the paper where they
     
    15 are retained and ultimately released to the
     
    16 customer's wrapped metal parts over a prolonged
     
    17 period of time. The VOM contents of the carrier
     
    18 solution are themselves corrosion inhibitors and
     
    19 also facilitate the gradual migration of other
     
    20 corrosion inhibiting solids present in the CI
     
    21 packaging products toward the surface of the
     
    22 customer's wrapped metal parts.
     
    23 Due to the stability and the low
     
    24 volatility of the impregnated CI components, the CI
     
     
     

     
    8
     
     
     
    1 packaging materials have a shelf life of up to five
     
    2 years.
     
    3 As a result of this basic product
     
    4 functionality, Cromwell-Phoenix has economic and
     
    5 product performance incentives to ensure that the
     
    6 VOM components are retained in the product and not
     
    7 emitted at the Alsip facility. In fact, the only
     
    8 regulating emissions from the production of the CI
     
    9 packaging materials at the Alsip facility are
     
    10 relatively low emissions of VOM. The VOM emissions
     
    11 are low by design. The company selects impregnation
     
    12 coating and carrier constituents based upon their
     
    13 ability to be retained in the CI product.
     
    14 The vapor pressures of the VOM
     
    15 components are very low, and therefore, their
     
    16 evaporation is minimal. The vast majority of the
     
    17 company's products are produced without using
     
    18 dryers. The finished CI packaging material is
     
    19 rewound on a cylindrical core immediately after the
     
    20 CI solutions are applied, thereby physically
     
    21 encapsulating the product and further impeding the
     
    22 volatilization of the VOM components.
     
    23 As a result, the actual annual VOM
     
    24 emissions at the Alsip facility are typically only
     
     
     

     
    9
     
     
     
    1 around five to six tons per year, and the maximum
     
    2 potential VOM emissions from the facility are less
     
    3 than 25 tons per year.
     
    4 Despite the low annual emissions
     
    5 of VOM, the as-applied VOM content, less water, of
     
    6 the CI solutions is greater than the limitation for
     
    7 paper coating located at 35 Ill. Admin. Code
     
    8 Part 218, Subpart F.
     
    9 Cromwell-Phoenix has attempted to
     
    10 develop a CI solution reformulation that would
     
    11 reduce the as-applied VOM content, less water, to
     
    12 the greatest practicable, while still providing
     
    13 sufficient solids dissolution, retention and
     
    14 migration.
     
    15 Reformulation, however, requires
     
    16 the substitution of the water for some of the VOM.
     
    17 Water is not conducive to the corrosion inhibiting
     
    18 properties of the CI packaging materials.
     
    19 First and foremost, the presence
     
    20 of residual water in the CI products promotes
     
    21 corrosion of the customer's metal parts. Excess
     
    22 water also causes unacceptable expansion of the
     
    23 paper fibers resulting in the CI paper product
     
    24 becoming wrinkled and welted, as well as the cut
     
     
     

     
    10
     
     
     
    1 sheets becoming curled. This makes the paper very
     
    2 difficult to handle and results in the inability to
     
    3 achieve a good wrap on the metal items that are
     
    4 being protected by the CI packaging material.
     
    5 Increased use of water in the CI
     
    6 solutions also leads to greater emissions. When CI
     
    7 solution formulations with greater amounts of water
     
    8 are used, infrared drying is required to drive off
     
    9 the excess water. Drying not only requires
     
    10 additional energy consumption, is also increases VOM
     
    11 emissions. The drying drives off VOM as well as
     
    12 water. As such, any attempts to meet the pound per
     
    13 gallon VOM content limit in 35 Ill. Admin. Code,
     
    14 Part 218.104(c) would result in greater VOM
     
    15 emissions from the Alsip facility, not fewer.
     
    16 Cromwell-Phoenix has estimated
     
    17 that its VOM emissions using compliant coatings, if
     
    18 such use were possible, would result in VOM
     
    19 emissions much greater than those associated with
     
    20 the current formulations raising actual annual
     
    21 emissions from approximately five to six tons per
     
    22 year to approximately 39 tons per year or more.
     
    23 Cromwell-Phoenix also investigated
     
    24 the feasibility of add-on controls. The 35 Ill.
     
     
     

     
    11
     
     
     
    1 Admin. Code, Part 218, Subpart F coating regulations
     
    2 require that either the VOM content of a coating be
     
    3 below certain levels or that add-on controls be
     
    4 applied.
     
    5 The only technically feasible
     
    6 control options that were identified by
     
    7 Environmental Resources Management, the company's
     
    8 outside consultant, were oxidation and a combination
     
    9 carbon adsorption/oxidation system. The cost per
     
    10 ton of VOM control for each of these options,
     
    11 however, is well above the level that would be
     
    12 considered reasonable under a conventional
     
    13 reasonably available control technology, or RACT,
     
    14 demonstration. These costs are outlined in the
     
    15 ERM report.
     
    16 As Mr. Houlihan's affidavit
     
    17 attests, Cromwell-Phoenix cannot afford the initial
     
    18 capital outlay or the annual operating costs
     
    19 associated with these add-on controls.
     
    20 Cromwell-Phoenix needs the requested adjusted
     
    21 standard in order to continue to manufacture CI
     
    22 packaging materials at the Alsip facility.
     
    23 The facility currently employs 31
     
    24 people. By the end of this year, Cromwell-Phoenix
     
     
     

     
    12
     
     
     
    1 hopes to conclude a merger with another company that
     
    2 would lead to additional CI packaging material
     
    3 business at the Alsip facility, as well as new jobs
     
    4 and increased revenues for the state.
     
    5 Cromwell-Phoenix believes it is the only
     
    6 manufacturer of CI packaging materials in Illinois.
     
    7 In summary, Cromwell-Phoenix finds
     
    8 itself in a classic Catch-22 situation. As the
     
    9 petition describes, the Board's paper coating
     
    10 limitation was based on coatings for which the VOM
     
    11 content is emitted during the application, drying
     
    12 and curing steps, not retained in the coated
     
    13 product.
     
    14 Cromwell-Phoenix cannot currently
     
    15 use coatings that comply with the paper coating
     
    16 limit of 35 Ill. Admin. Code, Part 218, Subpart F,
     
    17 and still make its corrosion inhibiting packaging
     
    18 materials. Using lower VOM materials would actually
     
    19 increase VOM emissions from the Alsip facility, not
     
    20 decrease them.
     
    21 In addition, the available control
     
    22 technologies will result in only nominal VOM
     
    23 reductions as a cost that is prohibitive. For all
     
    24 these reasons, as more fully outlined in
     
     
     

     
    13
     
     
     
    1 Petitioner's Exhibit 1, Cromwell-Phoenix
     
    2 respectfully states that an adjusted standard is
     
    3 warranted under the factors set forth in Section
     
    4 28.1 of the Act and asks the Board to grant its
     
    5 adjusted standard request.
     
    6 HEARING OFFICER HALLORAN: Thank you,
     
    7 Mr. Boyd.
     
    8 So you're going to ask for this
     
    9 Petitioner's Exhibit Number 1 to be put into
     
    10 evidence?
     
    11 MR. BOYD: Yes, I'll do that now.
     
    12 HEARING OFFICER HALLORAN: Any
     
    13 objection, Mr. Matoesian?
     
    14 MR. MATOESIAN: No objection.
     
    15 HEARING OFFICER HALLORAN: It's
     
    16 granted. Petitioner's Exhibit Number 1 is admitted
     
    17 into evidence.
     
    18 Mr. Matoesian?
     
    19 MR. MATOESIAN: Thank you, sir.
     
    20 Just briefly, Charles Matoesian
     
    21 for the Illinois EPA. We filed a recommendation on
     
    22 July 14th pursuant to 35 Ill. Admin. Code Section
     
    23 104.416. And in that recommendation we recommended
     
    24 that the Board grant the petition. We still stand
     
     
     

     
    14
     
     
     
    1 by that. And I would simply submit a copy of our
     
    2 recommendation into the record and stand on it.
     
    3 That's all.
     
    4 HEARING OFFICER HALLORAN: Any
     
    5 objection, Mr. Boyd?
     
    6 MR. BOYD: Not at all.
     
    7 HEARING OFFICER HALLORAN: I'll
     
    8 entitle it as Hearing Officer Exhibit 1, and it is
     
    9 admitted into evidence.
     
    10 MR. MATOESIAN: Thank you.
     
    11 HEARING OFFICER HALLORAN: Thank you.
     
    12 There's nothing further.
     
    13 Mr. Melas, do you have any
     
    14 questions yet or would you like Ms. Liu to ask
     
    15 hers?
     
    16 BOARD MEMBER MELAS: Nothing.
     
    17 HEARING OFFICER HALLORAN: And then
     
    18 these questions, again, are basically going to be
     
    19 read into the record so they can be addressed during
     
    20 posthearing briefs. However, Mr. Boyd is free to
     
    21 answer, if he's able, at this time.
     
    22 MS. LIU: Good afternoon, Mr. Boyd.
     
    23 We'd like to pose some questions
     
    24 to your Petitioner to help clarify the petition as
     
     
     

     
    15
     
     
     
    1 well as to make a complete record.
     
    2 MR. BOYD: Okay.
     
    3 MS. LIU: The Petitioner, on page 17,
     
    4 refers to some experiments that were conducted,
     
    5 reformulate CI coatings and installation of add-on
     
    6 controls. There's some detailed information
     
    7 concerning the evaluation of the add-on controls,
     
    8 but there is no data documenting the experiments
     
    9 that were conducted on the reformulated coatings.
     
    10 I was wondering if you could
     
    11 please provide some information on those experiments
     
    12 and the results of their testing?
     
    13 MR. BOYD: Ms. Liu, could you tell me
     
    14 exactly where on page 17 you're referring, just so
     
    15 I'm clear?
     
    16 MS. LIU: Looks like paragraph B.
     
    17 The sentence is, "The compliance
     
    18 alternatives investigated include experiments with
     
    19 reformulated CI coatings and the installation of
     
    20 add-on controls."
     
    21 MR. BOYD: I'm not sure whether
     
    22 there's an actual report based on those experiments
     
    23 or if it's just described in the petition, but I'll
     
    24 find out and let you know.
     
     
     

     
    16
     
     
     
    1 MS. LIU: Appreciate that.
     
    2 In the petition on page four,
     
    3 Cromwell mentions that it may be the only
     
    4 manufacturer of CI packaging material in Illinois.
     
    5 Could you please comment on
     
    6 whether or not Cromwell is aware of other CI
     
    7 packaging manufacturers in other states that are
     
    8 subject to similar VOM emission control
     
    9 requirements?
     
    10 MR. BOYD: I'm not able to at this
     
    11 time, but I will ask our consultant and our client
     
    12 and we'll address that in the posthearing brief.
     
    13 MS. LIU: And if so, could you follow
     
    14 up with whether or not Cromwell is aware of how
     
    15 those other facilities comply with those applicable
     
    16 VOM limitations that they have in their states?
     
    17 MR. BOYD: I will, if we're able to.
     
    18 MS. LIU: I understand.
     
    19 This is an easy one. The petition
     
    20 does not include a street number for Cromwell's
     
    21 Alsip facility. It refers to Ridgeway Avenue.
     
    22 Could you please provide a more precise address,
     
    23 please?
     
    24 MR. BOYD: Certainly.
     
     
     

     
    17
     
     
     
    1 MS. LIU: Also, on page four of the
     
    2 petition, it states that Cromwell started CI
     
    3 packaging operations in 2001.
     
    4 The building has been around since
     
    5 1965, and we were wondering if that same Alsip
     
    6 facility was being used for manufacturing CI
     
    7 products prior to Cromwell taking over operations?
     
    8 And if so, is Cromwell or the Agency aware of any
     
    9 information of the compliance status of the facility
     
    10 if it was doing that kind of operation before 2001?
     
    11 MR. BOYD: My understanding is that it
     
    12 was not used for CI material manufacturing, but I'll
     
    13 confirm that.
     
    14 MS. LIU: In the petition on page six,
     
    15 it states that Cromwell had performed gravimetric
     
    16 tests to determine the weight loss in emissions from
     
    17 CI packaging production processes.
     
    18 It was stated that the gravimetric
     
    19 demonstrated the overall VOM emissions are less than
     
    20 five percent of the weight of the CI solution
     
    21 applied, could you possibly provide the gravimetric
     
    22 test data, including the results, that demonstrates
     
    23 that five percent?
     
    24 MR. BOYD: Certainly.
     
     
     

     
    18
     
     
     
    1 That information was provided to
     
    2 the IEPA in a Clean Air Act permit program permit
     
    3 application. That was not submitted as part of the
     
    4 adjusted standard, but we can make it an exhibit and
     
    5 we'll provide it to the Board.
     
    6 MS. LIU: Thank you.
     
    7 Could you also, along those lines,
     
    8 provide some information on the amount of different
     
    9 types of CI coatings used on an annual basis along
     
    10 with their VOM content? If there are some trade
     
    11 secrets involved, perhaps just the gallons per year
     
    12 along with associated VOM content.
     
    13 MR. BOYD: I'm sure that information
     
    14 is in the application, and we'll provide -- we can
     
    15 provide both a trade secret and a non-trade secret
     
    16 copy for you. I don't think there will be a problem
     
    17 with that.
     
    18 MS. LIU: In Cromwell's motion for an
     
    19 expedited review, the Petitioner indicates that
     
    20 there's going to be a proposed merger with this
     
    21 other company and that that will result in an
     
    22 increase in production of CI packaging, and the
     
    23 motion states the facility will still be a minor
     
    24 source.
     
     
     

     
    19
     
     
     
    1 Given Cromwell's earlier
     
    2 pre-merger estimates of five to six tons of VOM per
     
    3 year from the CI process, could you please provide
     
    4 an estimate of the anticipated increase?
     
    5 MR. BOYD: We sure can. We don't
     
    6 really know at this point in time. That's one of
     
    7 the reasons it's not been provided to this date. So
     
    8 if it's possible by the time we submit our
     
    9 information, we'll let you know.
     
    10 On a related note, we're
     
    11 aware that the adjusted standard would be for
     
    12 Cromwell-Phoenix. We are not clear yet whether the
     
    13 merge entity will be Cromwell-Phoenix or another
     
    14 entity, so we are also aware that we'll have to go
     
    15 back to the Board and say, we'd like this new
     
    16 entity, if there is one, to be named the recipient
     
    17 of the adjusted standard. We aren't at that point
     
    18 yet. If we are, then I'll get you that information
     
    19 too.
     
    20 MS. LIU: Not being a lawyer, I was
     
    21 slightly confused about one portion of your
     
    22 petition.
     
    23 MR. BOYD: Okay.
     
    24 MS. LIU: On page two, Cromwell
     
     
     

     
    20
     
     
     
    1 notes that, "Because it prints on the majority of
     
    2 its products before applying the corrosion
     
    3 inhibiting solutions, it's printing/coating
     
    4 operations are regulated by 35 Illinois
     
    5 Administrative Code, Subpart H, 218.401."
     
    6 In the section from which Cromwell
     
    7 seeks the adjusted standard, which is 218.204(c),
     
    8 there is a note that says that the paper coating
     
    9 VOM limit does not apply to sources regulated under
     
    10 218.401, so I was wondering if you could clarify
     
    11 whether the requested relief from the adjusted
     
    12 standard pertains only to the CI packaging materials
     
    13 that you don't print on, or if you meant it to apply
     
    14 to all of your CI packaging materials whether you
     
    15 printed on them or not?
     
    16 MR. BOYD: I think I can clarify that
     
    17 now.
     
    18 MS. LIU: Okay.
     
    19 MR. BOYD: The adjusted standard
     
    20 applies to the CI packaging materials solutions. It
     
    21 does not apply to the printing that may go on the
     
    22 kraft paper prior to the use of the CI solutions.
     
    23 In other words, there are -- you
     
    24 know, there's a printing -- printing something on
     
     
     

     
    21
     
     
     
    1 the packaging materials before they are coated,
     
    2 before they're impregnated with this CI solution.
     
    3 To my knowledge, there is no
     
    4 problem meeting the requirements for the printing
     
    5 regulations of 35 Ill. Admin. Code, Subpart H,
     
    6 218.401. The only issue is the fact that the
     
    7 VOM content of the CI coating material is higher
     
    8 than the paper coating standard.
     
    9 MS. LIU: So you view them as separate
     
    10 processes, printing regulated by one set of the
     
    11 regulations and the coating by another?
     
    12 MR. BOYD: I don't have the rules in
     
    13 front of me, but my understanding is that note that
     
    14 you're referring to, in essence, suggests that if
     
    15 you're meeting the coating -- if you're really
     
    16 coating instead of printing and you're meeting the
     
    17 coating rules, then that Subpart H rule doesn't
     
    18 apply.
     
    19 We're not even arguing now that
     
    20 the printing they do on those is really coating. It
     
    21 is printing, and they're meeting the printing
     
    22 regulations.
     
    23 MS. LIU: If you don't mind, does the
     
    24 Agency agree with that interpretation?
     
     
     

     
    22
     
     
     
    1 MR. MATOESIAN: We'll respond to that
     
    2 in the brief.
     
    3 MS. LIU: Thank you.
     
    4 I was wondering if you could also
     
    5 explain the rationale for limiting the VOM content
     
    6 of the CI coatings to 8.3 pounds per gallon in your
     
    7 adjusted standard wording?
     
    8 MR. BOYD: Because that's what they're
     
    9 using now, so we don't want to have a backsliding or
     
    10 anything like that. We want to be clear what
     
    11 they're using now and that what we're using now is
     
    12 sufficient under the adjusted standard.
     
    13 MS. LIU: In the proposed language for
     
    14 the adjusted standard, it would require that
     
    15 Cromwell report all annual emissions to the Illinois
     
    16 Environmental Protection Agency, could you please
     
    17 clarify whether this requirement pertains to all
     
    18 emissions of VOM at the facility or all air
     
    19 emissions in general? It might be something that
     
    20 you might want to insert in the wording so that
     
    21 you're only gearing this adjusted standard to the
     
    22 VOM emissions rather than other emissions that your
     
    23 client might have that might be regulated.
     
    24 MR. BOYD: Well, if you look -- is it
     
     
     

     
    23
     
     
     
    1 paragraph seven that you're talking about where it
     
    2 says, Cromwell shall continue to report all annual
     
    3 emissions to the IEPA?
     
    4 MS. LIU: Yes.
     
    5 MR. BOYD: Well, that is a -- there's
     
    6 an obligation under the Board's rules and the
     
    7 Agency's rules to file annual emissions reports, and
     
    8 they'll continue to do that, in the annual emissions
     
    9 report, include information about VOM emissions from
     
    10 the facility. So I think the annual emissions
     
    11 reports you're talking about there are the currently
     
    12 required reports that -- they're not anything new or
     
    13 special in terms of an annual emissions report
     
    14 relating to this adjusted standard.
     
    15 If you'd like, you can clarify
     
    16 it by adding the section of the regulation which
     
    17 requires the annual emissions report.
     
    18 MS. LIU: I just didn't want, for some
     
    19 reason, this adjusted standard to become too
     
    20 onerous.
     
    21 MR. BOYD: Neither do we.
     
    22 MS. LIU: In the Agency's
     
    23 recommendation on pages five and six, the Agency
     
    24 proposes conditions to the adjusted standard very
     
     
     

     
    24
     
     
     
    1 similar to the one that Cromwell had crafted for
     
    2 itself, with the exception of one additional
     
    3 condition. The Agency proposed limiting the
     
    4 adjusted standard to equipment in emission sources
     
    5 that were in place as of July 14th of 2003 and which
     
    6 were identified in that Clear Air Act permit program
     
    7 application.
     
    8 Does Cromwell find this added
     
    9 condition acceptable given the proposed merger?
     
    10 MR. BOYD: Yes, it does.
     
    11 As I said, at this point in time,
     
    12 it certainly does.
     
    13 MS. LIU: So you won't be adding new
     
    14 equipment or --
     
    15 MR. BOYD: The current plan is not to
     
    16 do that.
     
    17 Let me just rephrase that.
     
    18 There are no current plans to do
     
    19 that, I should say. I'm not sure there is a
     
    20 current plan.
     
    21 MS. LIU: On page 14 of the petition,
     
    22 Cromwell states that if the requested relief is not
     
    23 granted, it will have to control 15.21 tons of VOM
     
    24 per year.
     
     
     

     
    25
     
     
     
    1 I was wondering if you could
     
    2 explain how the potential VOM reduction of 15.21
     
    3 tons per year was calculated?
     
    4 MR. BOYD: I think I can. And again,
     
    5 this is really clarified in the Title V permit
     
    6 application.
     
    7 My understanding is that the
     
    8 15.21 tons per year are the theoretical maximum
     
    9 emissions of VOM from the corrosion inhibiting
     
    10 products portion of this Alsip facility. So that
     
    11 the total potential emissions of VOM for that
     
    12 portion of the facility are 15.21 tons per year.
     
    13 That's, again, the potential emissions, not actually
     
    14 emissions, which are much lower.
     
    15 They used the 15.21 ton number for
     
    16 purposes of the RACT demonstration to show that even
     
    17 if we're emitting, you know, as much as it
     
    18 potentially could emit, the cost per ton of control
     
    19 for the oxidizer or the combined system addressed by
     
    20 ERM would still be cost prohibitive.
     
    21 MS. LIU: Thank you.
     
    22 Also on that page 14, Cromwell
     
    23 states that its operation is a "relatively small
     
    24 contribution to the local air shed when compared to
     
     
     

     
    26
     
     
     
    1 the hundreds of thousands of tons of VOM emitted
     
    2 each year in the Chicagoland non-attainment area."
     
    3 Could you please calculate the
     
    4 impact of those VOM emissions from the Alsip
     
    5 facility in terms of the overall emissions from the
     
    6 Chicago non-attainment area if the Board were to
     
    7 grant the relief?
     
    8 MR. BOYD: Well, we certainly could do
     
    9 that if the Board would like us to, but however, I'm
     
    10 sure it will be a fraction number, and it doesn't
     
    11 seem to make much sense to try to do that in this
     
    12 context because the overall point was a, you know,
     
    13 it might seem more argumentative than anything, it's
     
    14 just a very, very small facility, that the emissions
     
    15 are very small given the overall VOM emissions for
     
    16 the area.
     
    17 We can certainly try to calculate
     
    18 that if the Board would like us to.
     
    19 MS. LIU: I'm concerned the word small
     
    20 is kind of a subjective term --
     
    21 MR. BOYD: It is, and it was intended
     
    22 to be subjective.
     
    23 MS. LIU: It would be nice to see a
     
    24 number to demonstrate the environmental impact.
     
     
     

     
    27
     
     
     
    1 And that's it.
     
    2 HEARING OFFICER HALLORAN: I want to
     
    3 make the record clear that Mr. Boyd was not under
     
    4 oath, and I don't have any issues with his
     
    5 credibility, nor have I ever had any issues with his
     
    6 voracity, but I think the way I understand it, it
     
    7 was Mr. Boyd's intent to also address these
     
    8 questions posed here today supported with an
     
    9 affidavit in the posthearing brief.
     
    10 So with that said --
     
    11 MR. BOYD: That is my intent, and I'm
     
    12 glad you clarified that.
     
    13 HEARING OFFICER HALLORAN: Thank you.
     
    14 Ms. Antoniolli?
     
    15 MS. ANTONIOLLI: No, I have no further
     
    16 questions.
     
    17 HEARING OFFICER HALLORAN: Member
     
    18 Melas?
     
    19 BOARD MEMBER MELAS: No.
     
    20 HEARING OFFICER HALLORAN: Let's go
     
    21 off the record for a second and we'll talk
     
    22 posthearing briefing schedule.
     
    23 (Whereupon, a discussion
     
    24 was had off the record.)
     
     
     

     
    28
     
     
     
    1 HEARING OFFICER HALLORAN: We're back
     
    2 on the record. We've been discussing a few
     
    3 housekeeping matters.
     
    4 We've decided that the transcript
     
    5 will be available August 12th and be ready, and I
     
    6 might -- as an aside, the Board today granted
     
    7 Mr. Boyd's motion for expedited review and motion
     
    8 for expedited transcripts.
     
    9 So what will happen, the Board
     
    10 will order the expedited transcripts, and it's my
     
    11 understanding that the Petitioner will file or pay
     
    12 the difference between the regular transcript and
     
    13 the expedited transcript to be worked out later.
     
    14 With that said, the expedited
     
    15 transcript will be available August 12th. I'm going
     
    16 to set August 19th as the close of public comment;
     
    17 August 22nd, Petitioner's brief is due; August 29th,
     
    18 the Agency's brief is due; and the record closes
     
    19 August 29th. If need be, the Petitioner will ask
     
    20 for a leave to file a reply, but at this time, the
     
    21 record closes on August 29th.
     
    22 I think that's all I have, unless
     
    23 somebody else has any comments, issues, questions?
     
    24 All right. Thank you all very
     
     
     

     
    29
     
     
     
    1 much for coming here today and have a safe trip
     
    2 home.
     
    3 (Which were all the proceedings
     
    4 had in the above-entitled cause
     
    5 on this date.)
     
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    30
     
     
     
    1 STATE OF ILLINOIS )
    ) SS.
    2 COUNTY OF DUPAGE )
     
    3
     
    4 I, STACY L. LULIAS, CSR, do hereby
     
    5 state that I am a court reporter doing business in
     
    6 the City of Chicago, County of DuPage, and State of
     
    7 Illinois; that I reported by means of machine
     
    8 shorthand the proceedings held in the foregoing
     
    9 cause, and that the foregoing is a true and correct
     
    10 transcript of my shorthand notes so taken as
     
    11 aforesaid.
     
    12
     
    13
     
    14 _____________________
    Stacy L. Lulias, CSR
    15 Notary Public,
    DuPage County, Illinois
    16
     
    17 SUBSCRIBED AND SWORN TO
    before me this ___ day
    18 of ________, A.D., 2003.
     
    19
    _________________________
    20 Notary Public
     
    21
     
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    23
     
    24
     
     
     

     

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