r98-14.PDF

ILLINOIS POLLUTION CONTROL BOARD

September 17, 1998

IN THE MATTER OF:

PETITION OF PDV MIDWEST REFINING,

L.L.C. FOR A SITE-SPECIFIC

RULEMAKING AMENDMENT TO 35 ILL.

ADM. CODE 304.213

)

R98-14

(Rulemaking - Water)

Proposed Rule. Second Notice.

OPINION AND ORDER OF THE BOARD (by J. Yi):

On October 17, 1997, PDV Midwest Refining, L.L.C. (PDV) filed a petition (Pet.)

seeking to amend and renew a previously granted site specific rule codified at 35 Ill. Adm.

Code 304.123. See In the Matter of: Petition of UNO-VEN to Amend Regulations Pertaining

to Water Pollution: 35 Ill. Adm. Code 304.213 (December 16, 1993), R93-8. PDV is

requesting three changes to this rule: (1) that the Board’s effluent regulations be amended to

provide site-specific ammonia nitrogen effluent standards for PDV’s discharge to the Chicago

Sanitary and Ship Canal; (2) that the change in ownership from UNO-VEN to PDV be

reflected; and (3) that the expiration date of the rule be eliminated. The Board adopted an

order accepting the proposal for hearing on November 6, 1997, and adopted a first-notice

order on May 21, 1998. No comments were received by the Board during the first notice

period.

The Board’s responsibility in this matter arises from the Environmental Protection Act

(Act). 415 ILCS 5/1

et seq

. (1996). The Board is charged therein to “determine, define and

implement the environmental control standards applicable in the State of Illinois.” 415 ILCS

5/5(b). Today, the Board adopts the proposed amendments for second notice pursuant to the

Illinois Administrative Procedure Act (APA). 5 ILCS 100/1-1

et seq

. (1996). The

amendments adopted today are identical to those proposed for first notice.

BACKGROUND

PDV owns a petroleum refinery located in Will County near Lemont, Illinois. The

refinery operates under National Pollution Discharge Elimination System (NPDES) permit

number IL 0001589. This permit was issued by the Agency on September 1, 1994 and

expired on June 1, 1998. PDV submitted an application to renew its NPDES permit on

December 1, 1997, which is pending before the Agency. The September 1, 1994 permit

remains in effect until the Agency reaches a final decision on PDV’s application to renew its

permit. The refinery was formerly owned and operated by the Union Oil Company of

California (Union) and then operated by the UNO-VEN Company (UNO-VEN). The refinery

began operations in 1969. From October 1992 through July 1997, the maximum monthly

production rate observed at the Refinery was 162,219 barrels per day. Pet. at 5.

The refinery employs approximately 650 people, and produces products including

conventional and reformulated gasolines, turbine fuels, diesel fuels, furnace oils, petroleum

coke, and various specialty naphthas used to manufacture intermediate products. Pet. at 5.

The refinery draws influent from and discharges effluent to the Chicago Sanitary and

Ship Canal (Canal) which is a tributary to the Illinois River. The wastewater effluent contains

ammonia nitrogen. The ammonia nitrogen contained in the effluent is from two sources: that

derived from nitrogenous compounds present in crude oil that are removed by various refinery

operations, and that already present in the intake water from the Canal.

REGULATORY BACKGROUND

The Board has adopted Section 304.122 (35 Ill. Adm. Code 304.122) to control

ammonia discharge to the Illinois River System. Section 301.122(b) contains the provision

applicable to the PDV refinery, and limits ammonia nitrogen discharges to an effluent

discharge concentration of 3.0 mg/l. This standard applies to monthly average samples, as

specified at 35 Ill. Adm. Code 304.104(a)(1).

In 1987, the Board granted a site specific rule change to the refinery; see In the Matter

of: Proposal of Union Oil Company of California to Amend the Water Pollution Regulations:

35 Ill. Adm. Code 304.213 (March 19, 1987), R84-13. The Board amended and renewed this

rule in 1993; see In the Matter of: Petition of UNO-VEN to Amend Regulations Pertaining to

Water Pollution: 35 Ill. Adm. Code 304.213 (December 16, 1993), R93-8. In 1993, the

Board set effluent limits for ammonia nitrogen at 9.4 mg/l monthly average and 26.0 mg/l

daily maximum. The current site-specific rule will terminate on December 31, 1999.

In the instant petition, PDV requests that the discharge limits for ammonia nitrogen set

in 1993 be adopted in this rulemaking. PDV also requests that their change in name be

reflected and that the December 31, 1999 termination date be eliminated.

PROCEDURAL HISTORY

In the May 21, 1998 first-notice order, the Board found that PDV had presented

evidence warranting continued consideration of this matter, and that the record justified

adopting the proposal for first notice. First notice of the proposed rule was published at 22 Ill.

Reg. 9657 (June 12, 1998). As noted, no public comments were received during the first-

notice period.

Two hearings were held in this matter. A public hearing was held on March 6, 1998,

in Joliet, Illinois. PDV presented three witnesses: Claude Harmon, Manager Environmental

with PDV; James Huff of Huff & Huff, Inc.; and Robert M. Stein of AWARE

Environmental, Inc. The Agency prefiled the testimony of Charles W. Gunnarson, but did not

present any witnesses at the hearing. PDV filed a posthearing comment on April 6, 1998.

The Board also received comments on the proposal from the legislature’s Joint Committee on

Administrative Rules (JCAR).

An additional public hearing was held March 30, 1998, solely on the decision of the

Illinois Department of Commerce and Community Affairs (DCCA) not to conduct an

Economic Impact Study in connection with this rulemaking. No one testified at this hearing,

and the Board has not received any comments regarding an economic impact study concerning

this matter.

TESTIMONY

At the March 6, 1998 hearing, Mr. Harmon testified about the refinery’s efforts to

remove ammonia from its wastewater streams, and about the need for site-specific relief. Mr.

Harmon outlined a number of procedures impacting ammonia reduction that have been

initiated by PDV since 1992. Generally, these procedures include source control such as the

changes in the performance of sour water strippers, and the upgrade of existing facilities

occurring mainly in the waste water treatment plant. Tr. Exh. 1 at 2.

Mr. Stein testified that PDV has been unable to consistently meet the ammonia nitrogen

concentration standard of 3.0mg/l, but has consistently achieved compliance with the 9.4 mg/l

monthly average and 26.0 mg/l daily maximum effluent limitations set by the Board in the

site-specific rule change on December 16, 1993. Tr. Exh. 2 at 2. Mr. Stein testified that the

refinery has a state of the art wastewater treatment system which exceeds U.S. EPA Best

Available Technology Economically Achievable (BAT) criteria and allows the facility to

comply with all the United States Environmental Protection Agency (USEPA) refinery

discharge regulations. Tr. Exh. 2 at 2,3,10. Mr. Stein further testified that alternative add-

on, end of pipe treatment technology for additional ammonia removal has been evaluated and

would have an estimated annualized cost of $3,708,000, but would not guarantee the refinery’s

consistent compliance with the 3 mg/l ammonia nitrogen limitation. Tr. Exh. 2 at 10.

Mr. Huff’s testimony concerned the environmental impact of the ammonia in the

refinery’s discharge to the Chicago Sanitary & Ship Canal. Tr. Exh. 3 at 2. Mr. Huff

testified that the refinery has consistently achieved the BAT limits since 1987, and that site

specific relief is, thus, not required to achieve BAT limits, but rather for the Illinois River

Basin concentration limitations. Tr. Exh. 3 at 7. Mr. Huff further testified that the net

ammonia contribution from the refinery from 1992 to 1997 is 15 lbs/day, and that since 1996,

the refinery has extracted from the canal 13 pounds per day more ammonia than what it

discharged over that same period. Tr. Exh. 3 at 8; Tr. at 35. Mr. Huff stated that the

ammonia discharge from the refinery is not causing any water quality violations in the Illinois

River system, and that no environmental impacts from the requested site-specific relief have

been identified. Tr. at 37; Tr. Exh. 3 at 9.

The Agency did not present any witnesses at the March 6, 1998 hearing, but did submit

prefiled testimony on February 25, 1998. The prefiled testimony concerns only one issue.

The Agency does not object to PDV’s petition, but believes that the language of the proposed

site-specific rule change should be modified to include a termination or sunset provision to

References to any exhibit to the transcript of the March 6, 1998, hearing will be cited as “Tr.

Exh. _.” References to the Agency’s prefiled testimony will be cited as “Ag. Test.”

terminate the rule by its own terms on a date certain. Ag. Test. at 1. The Agency states that

such a provision will encourage PDV to continue to explore means to further reduce the

ammonia-nitrogen discharge to the Chicago Sanitary and Ship Canal, and that should new

technologies be developed that are technologically feasible and economically reasonable, they

may be considered in assessing the continuance or alteration of PDV’s site-specific relief. Ag.

Test. at 1.

DISCUSSION

The Agency believes that a ten year termination clause for the relief requested is

appropriate. Ag. Test. at 2. The Agency notes that the Board recently proposed and included

a similar termination provision in site-specific relief requests by a petroleum refinery

downstream of PDV’s facility. Ag. Test. at 2. See In the Matter of Site Specific Petition of

Mobil Oil Corporation for Relief from 35 Ill. Adm. Code 304.122, Ammonia Nitrogen

Effluent Standards, (January 22, 1998) R97-28.

PDV did not address the termination provision issue at the March 6, 1998 hearing, but

did so in a posthearing comment filed on April 6, 1998. PDV does not object to a 10 year

termination provision, provided that the site specific rule tracks the recently adopted rule for

Mobil’s Joliet refinery referenced by the Agency in its prefiled testimony. Post. Hrg. Br. at 7.

Specifically, PDV requests that if the termination provision is included, that subparagraph (d)

of the PDV proposal be deleted. Subparagraph (d) requires PDV to make continuing efforts to

reduce the concentration of ammonia nitrogen in its wastewaters.

The sole point of discord in this proposed rule is the inclusion of a sunset provision.

The Agency does not object to the petition, but feels a sunset provision should be included.

PDV is amenable to a sunset provision so long as the rule does not require them to make

continuing efforts to reduce the concentration of ammonia nitrogen in its wastewaters. The

Agency did not comment on PDV’s position on the sunset provision.

At first notice, the Board included a sunset provision in subparagraph (g) of the

proposal. In so doing, the Board stated that such a provision would encourage PDV to take

advantage of new technology and to continually explore methods of lowering its ammonia-

nitrogen discharge during the pendency of the site-specific rule. The Board also included a

provision in subparagraph (d) requiring PDV to make continued efforts to reduce the

ammonia-nitrogen concentration in its wastewaters.

CONCLUSION

Since no comments were received during the 45 day first notice period, the Board is

proposing the same rule as was proposed in the first-notice order. The Board believes that the

inclusion of a sunset provision and a provision requiring PDV to make continued efforts to

reduce the ammonia-nitrogen concentration in its wastewater is reasonable, and appropriately

included in this site-specific rule.

Based upon the record, the Board finds that adoption of the proposed rule for second

notice is warranted. The Board also finds that the proposed rule will not have an adverse

economic impact on the people of the State of Illinois. See 415 ILCS 5/27 (a),(b) (1998).

ORDER

The Board hereby proposes for second notice the following amendments to 35 Ill.

Adm. Code 304.213. The Clerk of the Board is directed to submit this proposed rule to the

Joint Committee on Administrative Rules.

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE C: WATER POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

PART 304

EFFLUENT STANDARDS

SUBPART A: GENERAL EFFLUENT STANDARDS

Section

304.101

Preamble

304.102

Dilution

304.103

Background Concentrations

304.104

Averaging

304.105

Violation of Water Quality Standards

304.106

Offensive Discharges

304.120

Deoxygenating Wastes

304.121

Bacteria

304.122

Total Ammonia Nitrogen (as N: STORET number 00610)

304.123

Phosphorus (STORET number 00665)

304.124

Additional Contaminants

304.125

304.126

Mercury

304.140

Delays in Upgrading (Repealed)

304.141

NPDES Effluent Standards

304.142

New Source Performance Standards (Repealed)

SUBPART B: SITE SPECIFIC RULES AND EXCEPTIONS NOT OF GENERAL

APPLICABILITY

Section

304.201

Wastewater Treatment Plant Discharges of the Metropolitan Water

Reclamation District of Greater Chicago

304.202

Chlor-alkali Mercury Discharges in St. Clair County

304.203

Copper Discharges by Olin Corporation

304.204

Schoenberger Creek: Groundwater Discharges

304.205

John Deere Foundry Discharges

304.206

Alton Water Company Treatment Plant Discharges

304.207

Galesburg Sanitary District Deoxygenating Wastes Discharges

304.208

City of Lockport Treatment Plant Discharges

304.209

Wood River Station Total Suspended Solids Discharges

304.210

Alton Wastewater Treatment Plant Discharges

304.211

Discharges From Borden Chemicals and Plastics Operating Limited

Partnership Into an Unnamed Tributary of Long Point Slough

304.212

Sanitary District of Decatur Discharges

304.213

UNO-VEN Refinery Ammonia Discharge

304.214

Mobil Oil Refinery Ammonia Discharge

304.215

City of Tuscola Wastewater Treatment Facility Discharges

304.216

Newton Station Suspended Solids Discharges

304.218

City of Pana Phosphorus Discharge

304.219

North Shore Sanitary District Phosphorus Discharges

304.220

East St. Louis Treatment Facility, Illinois-American Water Company

304.221

Ringwood Drive Manufacturing Facility in McHenry County

304.222

Intermittent Discharge of TRC

SUBPART C: TEMPORARY EFFLUENT STANDARDS

Section

304.301

Exception for Ammonia Nitrogen Water Quality Violations (Repealed)

304.302

City of Joliet East Side Wastewater Treatment Plant

304.303

Amerock Corporation, Rockford Facility

Appendix A

References to Previous Rules

AUTHORITY: Implementing Section 13 and authorized by Section 27 of the Environmental

Protection Act [415 ILCS 5/13 and 27].

SOURCE: Filed with the Secretary of State January 1, 1978; amended at 2 Ill. Reg. 30, p.

343, effective July 27, 1978; amended at 2 Ill. Reg. 44, p. 151, effective November 2, 1978;

amended at 3 Ill. Reg. 20, p. 95, effective May 17, 1979; amended at 3 Ill. Reg. 25, p. 190,

effective June 21, 1979; amended at 4 Ill. Reg. 20, p. 53 effective May 7, 1980; amended at 6

Ill. Reg. 563, effective December 24, 1981; codified at 6 Ill. Reg. 7818: amended at 6 Ill.

Reg. 11161, effective September 7, 1982; amended at 6 Ill. Reg. 13750, effective October 26,

1982; amended at 7 Ill. Reg. 3020, effective March 4, 1983; amended at 7 Ill. Reg. 8111,

effective June 23, 1983; amended at 7 Ill. Reg. 14515, effective October 14, 1983; amended

at 7 Ill. Reg. 14910, effective November 14, 1983; amended at 8 Ill. Reg. 1600, effective

January 18, 1984; amended at 8 Ill. Reg. 3687, effective March 14, 1984; amended at 8 Ill.

Reg. 8237, effective June 8, 1984; amended at 9 Ill. Reg. 1379, effective January 21, 1985;

amended at 9 Ill. Reg. 4510, effective March 22, 1985; peremptory amendment at 10 Ill. Reg.

456, effective December 23, 1985; amended at 11 Ill. Reg. 3117, effective January 28, 1987;

amended in R84-13 at 11 Ill. Reg. 7291 effective April 3, 1987; amended in R86-17(A) at 11

Ill. Reg. 14748, effective August 24, 1987; amended in R84-16 at 12 Ill. Reg. 2445, effective

January 15, 1988; amended in R83-23 at 12 Ill. Reg. 8658, effective May 10, 1988; amended

in R87-27 at 12 Ill. Reg. 9905, effective May 27, 1988; amended in R82-7 at 12 Ill. Reg.

10712, effective June 9, 1988; amended in R85-29 at 12 Ill. Reg. 12064, effective July 12,

1988; amended in R87-22 at 12 Ill. Reg. 13966, effective August 23, 1988; amended in R86-3

at 12 Ill. Reg. 20126, effective November 16, 1988; amended in R84-20 at 13 Ill. Reg. 851,

effective January 9, 1989; amended in R85-11 at 13 Ill. Reg. 2060, effective February 6,

1989; amended in R88-1 at 13 Ill. Reg. 5976, effective April 18, 1989; amended in R86-17B

at 13 Ill. Reg. 7754, effective May 4, 1989; amended in R88-22 at 13 Ill. Reg. 8880, effective

May 26, 1989; amended in R87-6 at 14 Ill. Reg. 6777, effective April 24, 1990; amended in

R87-36 at 14 Ill. Reg. 9437, effective May 31, 1990; amended in R 88-21(B) at 14 Ill. Reg.

12538, effective July 18, 1990; amended in R84-44 at 14 Ill. Reg. 20719, effective December

11, 1990; amended in R86-14 at 15 Ill. Reg. 241, effective December 18, 1990; amended in

R93-8 at 18 Ill. Reg. 267, effective December 23, 1993; amended in R87-33 at 18 Ill. Reg.

11574, effective July 7, 1994; effective July 7, 1994; amended in R95-14 at 20 Ill. Reg. 3528,

effective February 8, 1996; amended in R94-1(B) at 21 Ill. Reg. 364, effective December 23,

1996; expedited correction in R94-1(B) at 21 Ill. Reg. 6269, effective December 23, 1996;

amended in R97-25 at 22 Ill. Reg. 1351, effective December 24, 1997; amended in R97-28 at

22 Ill. Reg. 3512, effective February 3, 1998; amended in R98-14 at ___ Ill. Reg. _____,

effective ____________.

SUBPART B: SITE SPECIFIC RULES AND EXCEPTIONS NOT OF GENERAL

APPLICABILITY

Section 304.213 UNO-VEN Refinery Ammonia Discharge

a) This Section applies to discharges from UNO-VEN's the PDVMR Refinery,

located in Lemont into the Chicago Sanitary and Ship Canal.

b) The requirements of Section 304.122(b) shall not apply to the discharge.

Instead UNO-VEN PDVMR must meet applicable Best Available Technology

Economically Achievable (BAT) limitations pursuant to 40 CFR 419.23 (1992)

incorporated by reference in subsection (c). UNO-VEN PDVMR shall also

meet a monthly average limitation for ammonia nitrogen of 9.4 mg/l and a daily

maximum limitation of 26.0 mg/l.

c) The Board incorporates by reference 40 CFR 419.23 (1992) only as it relates to

ammonia nitrogen as N. This incorporation includes no subsequent amendments

or editions.

d) UNO-VEN PDVMR shall continue its efforts to reduce the concentration of

ammonia nitrogen in its wastewaters.

e) UNO-VEN PDVMR shall monitor the nitrogen concentration of its oil

feedstocks and report on an annual basis such concentrations to the Agency.

f) UNO-VEN PDVMR shall submit the reports described in subsection (e) no later

than 60 days after the end of a calendar year.

g) The provisions of this Section shall terminate on December 31, 19992008.

(Source: Amended at _____ Ill. Reg. _______, effective____________)

IT IS SO ORDERED.

Board Member K.M. Hennessey abstained.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, hereby certify that

the above opinion and order was adopted on the 17th day of September 1998 by a vote of 6-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board